Kinicki/Williams, Management, 9e: Chapter 9 Human Resource Management: Getting the Right People for
Managerial Success
9–62
Lance Wells, CFO for Magma Games Inc., sat at this desk dreading the upcoming meeting with
John Kerlan, a general accountant with the company. He was preparing to terminate John from
Magma. He knew it would be a difficult meeting, but Wells felt the company had done
Kerlan had been hired by Magma two years earlier. At the time, Kerlan was 56 years old and had
come to Magma with considerable experience. When hired, Kerlan signed a written performance
agreement, a patent and confidentiality agreement, and a standard ethics letter. Magma used an
Kerlan’s tenure at Magma was marred by a number of poor performance appraisals and
demotions. In the first quarter after he started work, Kerlan received a poor performance rating
Due to reorganization shortly thereafter, Kerlan was assigned to a different division and
supervisor. His new supervisor, Bob Crane, had prepared a set of objectives for Kerlan. During a
mid–year review of Kerlan’s performance, Crane rated Kerlan’s performance as “needs
improvement.” The review he submitted contained substantive comments to support the rating
Subsequent papers in the file showed Kerlan’s performance did not improve or ever reach the
level expected of someone with his background and skill. In a last-ditch effort to manager
Kerlan, Wells met with Kerlan and gave him the option of being demoted to a general accountant
or being terminated. Kerlan accepted the second demotion with a decrease in salary from
$65,000 to $61,000. A set of new performance objectives were developed for him in his new