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Chapter 10 - Employee Separation and Retention
Additional Activities
Twitter Focus
Datotel is a St. Louis company that provides IT services and storage for its client companies.
Founder David Brown believes in making sure employees know how much the company
appreciates them, even as everyone scrambles to keep up with the demands of this expanding
small business. When a manager notes that an employee has done something extraordinary,
Brown asks one of the other managers—in addition to the employee’s direct supervisor—to
thank the employee in person. The company also conducts business based on its core values:
passion, integrity, fun, teamwork, “superior business value,” and “improving the community
in which we work.”
Question:
Have you ever been personally thanked by your employer?
Manager’s Hot Seat Exercise: Whistleblowing: Code Red or Red Ink? -Please refer to
the Asset Gallery on the OLC for Hot Seat videos and notes.
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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 10 - Employee Separation and Retention
I. Introduction
This scenario depicts a perceived ethical dilemma for an employee who has discovered
information about a client that could be putting human lives in danger. His management
wants to delay any action on the matter until future investor funding is secured. This scenario
may be used for instructors teaching Management because it presents a challenging problem
for a middle manager in an ethical bind and caught between two opposing points of view from
the levels above and below her.
II. Learning Objectives
1. To assess student’ understanding of the role of the middle manager when faced with
difficult ethical dilemmas.
2. To analyze Whistleblower statutes and understand their purpose and value for
employees and managers.
III. Scenario Description:
Overview: An employee at a hospital management company files a report with his
supervisor on patient injury and death caused by staff errors. There is an investor
meeting scheduled for one month following receipt of the report and our manager has
been told by her superiors not to release the report until after that meeting. The
employee who created the report disagrees with this decision, puts up a fight, and
threatens to leak the report directly to the media.
Profile:
Susan Novrotsky is a Senior Account Executive managing up to 15 accounts
per quarter and supervising a team of six people. Susan’s main functions
include new account development, client management, and managing the
planning processes for hospital restructuring.
Daniel Yoshi has been working with Woodland Management Services for five
years within Susan’s department. His functions include research and analysis
of hospital structure, general competency, cost-efficiency, human resource
assessment, and liability issues. Daniel’s research reports are used as the basis
for the Woodland’s restructuring plan and capital allocation.
References: The references included in the DVD are:
Concepts in Whistleblowing (PPT 5-5)
The Whistleblowers’ Protection Act (PPT 5-7)
Whistleblower Provisions of Sarbanes-Oxley (PPT 5-8 to 5-10)
United States Protection Policies (PPT 5-11)
Back History: Novrosky and Yoshi have been working at Woodland for over five
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Chapter 10 - Employee Separation and Retention
years. Novrosky is managing a new account for Hillshire Hospital. The current
objectives are to analyze the efficiency of the staff and the organization as a whole and
generate a restructuring plan. Yoshi was directed to research these issues and generate
a status report.
Yoshi sent Novrosky a progress email with his findings, highlighting his concern over
the exorbitant number of accidents, injuries and unnecessary deaths that have occurred
at the hospital over the past four years. The numbers greatly exceed the national rate
of accidental harm to patients. Yoshi strongly believes that immediate action is
necessary. [Artifact 1 – Yoshi email]
Novrosky forwards the email to her supervisor, Walsh. Novrosky has never come
across such severe findings and is unsure how to proceed. [Artifact 2- Novrosky
email]
Walsh responds via email, instructing Novrosky and Yoshi to hold off on sharing the
research. Hillshire Hospital has an investor meeting in exactly one month, and if the
meeting goes poorly, which it would should this report circulate, there would be no
funding for a restructuring project. Walsh agrees that this is a serious issue, but insists
it would be foolish and more detrimental to act on it immediately. [Artifact3-
president email]
Novrosky leaves a voicemail with Yoshi relaying Walsh’s instruction –Artifact 4
–Novrosky’s voicemail recording]
Scene Set-up: Yoshi is agitated by the voicemail and barges into Novrosky’s office.
Scene Location: Novrosky’s Office, Woodland Management Services; lunch time
The Meeting - Summary: Daniel Yoshi approaches Susan in her office clearly
agitated about the email and voicemails he received indicating that no action will be
taken on his research findings until after the investor’s meeting in one month. Susan
tries to convince Daniel that no action should be taken at this point because that would
prevent further funding that is required to restructure the hospital. Daniel contends
that taking action now would save lives. Susan reminds Daniel of what the business
goals are and to stay focused on that. Daniel’s conscience will not let him accept
Susan’s position and he threatens to go to the media if Woodland Management
Services does not notify the public and shareholders of Hillshire Hospital’s problem.
The scenario ends with Daniel’s ultimatum.
Afterthoughts – Summary: Susan believes that Daniel is so emotionally involved
with his work that he can’t see the bigger picture and what consequences his actions
would really have. She indicates that Daniel needs to feel valued and that his work is
important so that he doesn’t go to the media. Although Susan admits she can’t prevent
Daniel from going to the media, she let others in the organization know about his
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McGraw-Hill Education.
Chapter 10 - Employee Separation and Retention
intentions. She feels she needs to balance her obligation to Daniel to reach his career
goals with the needs of the organization which is to get the funding.
Dossier: The specific artifacts included in the DVD are:
1. Yoshi’s email to Novrosky detailing the research findings, and calling for
immediate action.
2. Novrosky’s email to Walsh forwarding Yoshi’s email, and asking for advice
on managing the situation.
3. Walsh’s email to Novrosky replying with instructions to hold back the info.
4. Novrosky’s voicemail to Yoshi instructing him to hold the report until after
the investor meeting.
IV. Discussion Questions:
The References and related Discussion Questions may be found in PowerPoint slides 5-1 to
5-11 on the instructor’s side of the text’s Website.
Learning Objective #1: To assess student’ understanding of the role of the middle manager
when faced with difficult ethical dilemmas
1. What competing organizational goals are present in this scenario?
The organization clearly has a goal of receiving funding so it can continue
2. What could the organization do to guide managers and employees in handling
situations like this one?
The organization should have clearly defined mission and vision statements.
In addition, well-communicated values would serve to guide employee
1. Susan’s strategy seems to be to:
A. Minimize problem
B. Re-assign research
C. Commiserate
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Chapter 10 - Employee Separation and Retention
3. Daniel was clearly not satisfied with Susan’s explanation. What could Susan have
done differently to convince Daniel to wait?
Susan should probably have used a strategy based on reasons that Daniel
would appreciate and understand. For example, she could have pointed to
Daniel was upset because he didn’t feel his work was valued. Therefore,
2. Primary reason for communication failure:
A. Danny’s not listening
B. Susan’s not listening
C. A misunderstanding
3. What is Susan’s key reason for “holding off’?
A. Incomplete research
B. Funding at risk
C. No need for disclosure
Susan’s motives are unclear. From her email, she initially seemed to agree
Learning Objective #2: To analyze Whistleblower statutes and understand their purpose and
value for employees and managers.
1. If Daniel went to authorities with his information, would he be making a “good faith
allegation”? Refer to “Concepts in Whistleblowing” (PPT 5-5) for your answer.
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Chapter 10 - Employee Separation and Retention
2. Susan states that there is nothing she could do to stop Daniel from “blowing the
whistle.” Do you agree there is nothing she can do to stop Daniel? Why or why not?
While she can’t physically restrain him or threaten him in any way, Susan
4. Why does Susan focus on goals?
A. Establish “big picture”
B. Distract Daniel
C. Outline Daniel’s job
3. Susan does indicate that she would tell others in the organization of Daniel’s intentions
to blow the whistle. What are the pro’s and con’s of this action?
Pro’s - others should know that bad press or a public relations disaster could
occur and be prepared for it.
5. Susan’s response should be:
A. Acquiesce to demand
B. Fire Daniel
C. Call Walsh
4. Given what you saw in this scenario, if an adverse action was taken toward Daniel in
retaliation, would Daniel be protected under the Whistleblowers’ Protection Act (see
PPT 5-7)? Why or why not?
It would be illegal for the company to take an adverse action against Daniel
because he alleges a problem that could affect one’ health and safety.
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Chapter 10 - Employee Separation and Retention
Teaching Suggestions
There are many interesting topics related to job satisfaction and job withdrawal. Some of
these topics are suggested for class debate, discussion, and brainstorming. Several articles that
are suggested provide additional information on the specific topics. Also, a case is given that
can be used as a role-play dealing with absenteeism.
1. The results of several studies examining the attitudes of workers are included in the
following article. Students could be assigned to read the article and comment on their
agreement or disagreement with the results. "What Do Workers Want?” INC,
November 1992' pp. 101-102. Some of the other results reported in the article are as
follows: How important is each of the following characteristics to you? How satisfied
are you with it in your current job?
Percent of Workers Who
Ranked It as Said They
Very Important Were Satisfied
Good health insurance and other benefits 81% 27%
Interesting work -8 41
Job security -8 35
Opportunity to learn new skills 68 31
Having a week or more of vacation 66 35
Being able to work independently 64 42
Recognition from co-workers 62 24
Regular hours (no weekends, no nights) 58 40
Having a job in which you can help others 58 34
Limiting Job stress 58 17
High income 56 13
Working close to home 55 46
Work that is important to society 53 35
Chances for promotion 53 20
Contact with a lot of people 52 45
Flexible hours 49 39
Source: Gallup Poll, 1991.
Which one of the following would most give you the feeling of success in your life?
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Chapter 10 - Employee Separation and Retention
Percent Choosing Each Factor
Happy family life 62
Ability to do some good in the world 15
Earning lots of money 10
Position and prestige in your work 6
Involvement in some creative activity 4
Fame 1
Don't know/no answer 2
Source: The Chivas Regal Report on Working Americans, 1989.
1. "Stressed Out at work: Chin Up, You Can Blame It on the Boss." (Source: article in
Star Tribune, October 12, 1992. written by Jill Hodges.)
If you are stressed out at work, you may well have a lousy boss. Sure, you've known
this all along, but now there is a study that shows it: Poor supervisors are one of the
chief sources of workplace stress, according to a recent survey by St. Paul Fire and
Marine Insurance Company, the nation's largest medical liability insurer.
Friction with supervisors can lower productivity, diminish quality, and increase
absenteeism, according to Stacey Kohler, the psychologist who supervised the survey
of 215 companies. Of the employees who said they had a bad supervisor, 76 percent
said coworkers talk about leaving the company, 68 percent said they are tired during
the workday, and 65 percent said their productivity could be improved.
The survey revealed that one in three workers has neutral or negative feelings about
his or her boss. The survey also showed that problems with supervisors are likely to
carry over into employees' home lives, straining their relationships and driving them to
substance abuse problems. The study showed that problems at work are more likely
than personal problems to have a negative effect both at work and at home.
The survey showed that employees are looking for a few basic qualities in a manager:
someone who sets clear and reasonable goals, someone who is not overly critical, and
someone who listens to employees and involves them in decisions that affect them.
VIC Inc. of Bloomington, one of the companies that participated in the study, found
that its 220 employees largely were satisfied with their managers. But half the
employees at the semiconductor manufacturer indicated that their performance
evaluations did not help them improve.
How should performance evaluations be conducted in order to actually help
employees improve? The performance evaluation process consists of measures of
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Chapter 10 - Employee Separation and Retention
performance as well as the process of communication of performance information to
employees.
3. There are several written stress tests that you could give to students. One test is known
as the Glazer Stresscontrol Life-Style Questionnaire, which helps students determine if
they are Type A or Type B personalities. This test can be found in Business Week's
Executive Health, (McGraw-Hill, Inc., 1987). Another written test is called the Social
Readjustment Rating Scale, which measures the amount of change in one's life and
equates that to stress. This scale can be found in T. H. Holmes and R. H. Rahne, "The
Social Readjustment Rating Scale," Journal of Psychosomatic Research ll, (1967) pp.
213-18.
4. One interesting article dealing with whistleblowing is "Blowing the Whistle without
Paying the Piper," Business Week, June 3, 1991, pp. 138-139. Students could be asked
to read this article and also find other articles on the topic and write a report on the
topic.
5. One classroom activity is to have students list or brainstorm the characteristics that
they want an employer to have. In other words, what makes a company a good place
to work? To supplement this discussion compare the class's list with the six criteria
(pay/benefits, opportunities, job security. pride in work/company, openness/fairness,
and camaraderie/friendliness) listed in the article “The Work Place 100,” USA
Weekend, January 22-24, 1993, pp. 4-6. This article also lists the 100 best companies
to work for in America.
6. Do you have to be a workaholic to succeed in the business world? Students could
debate this issue. One article that sheds some interesting ideas on the subject is "You
Don't Have to Be a Workaholic, Fortune, August 9. 1993, pp. 65-69.
7. Humor is often suggested as a great stress reliever. Have students discuss and
brainstorm how a company can use humor in the workplace and identify the
issues/problems involved with humor in the workplace. An interesting article on the
subject is "Building Fun in Your Organization" by David J. Abramis, Personnel
Administrator, October 1989, pp. 68-72.
8. The following case can also be used as a role-play:
The Absenteeism Problem
Melissa has been an absenteeism problem ever since she was hired two years ago. She
has been on probation twice and has been able to improve her attendance enough to
get off probation, but the problems seem to be recurring. As Melissa's supervisor, you
are aware that Melissa has health problems, and she is a single parent with a young
child that also has health problems. You believe her absences to be related to these
health problems; however, co-workers are complaining about having to cover for
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Chapter 10 - Employee Separation and Retention
Melissa when she is out, and one customer has complained about not receiving
information that Melissa was supposed to have sent last week. Melissa has just
returned from being absent for five days due to a recurring illness. She has missed
over 12 days in the last three months. You are getting pressure from your boss to
terminate Melissa if her attendance does not dramatically improve. You have
scheduled a meeting with Melissa for this afternoon.
9. Library Assignment: Have students report on the Job Absence and Turnover rate for
U.S. companies and the trend of this data. The Bureau of National Affairs publishes
this data on a monthly basis by industry. From the BNA report on the first quarter of
1993, absence rates rose from a year earlier in almost all size, industry, and geographic
categories, with the sharpest increases occurring among larger companies. The BNA
also reported that the long period of decline in employee turnover may be at an end,
but separation rates remain at the low levels of the past two years. Also, have students
research how job absence rates and turnover rates are calculated.
10. “It Finally Happened: The Cyberfiring, Brought to You by
AT&T.” In September, 1995, 8,500 AT&T employees were
told they had been made redundant through a company-wide
e-mail message. (Source: People Trends, September 1995,
p. 10). Have students discuss the advantages and
disadvantages of using e-mail for such announcements,
from the perspective of employers and of employees.
HRM Failures
Top
1 Case 10: When Terminated Workers Are Entitled to Disability Benefits
Employers who terminate workers, for any reason, should exercise care. Claire Cole, a
After her heart attack, Cole was unable to work. Furthermore, her application for accidental
Cole never returned to work after her heart attack and later died. In 2006, the Contributory
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Chapter 10 - Employee Separation and Retention
Because Cole died before receiving her benefits, the high court awarded the benefits to her
Question
How might an HR professional have handled this situation differently?
Possible answers
Carefully consider all the facts of the case: the employee’s heart attack occurred
The employee accrued 25 years of service before her job was eliminated. Her
Case: Retirement Board of Salem v. Contributory Retirement Appeal Board, SJC-10215,
February 24, 2009.
Source: Roberto Ceniceros, “Disability Award Upheld for Heart Attack Victim,” Workforce
Management, March 2, 2009, http://www.workforce.com.
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