Case Study:
Saud works for a XYZ company as an administrative officer. He has been working there for more than fifteen years. He is considered one of the most experienced employees of the company. Saud is a graduate and has not upgraded himself in his tenure. His performance is satisfactory in the routine work but has shown no interest and active participation in changing the existing environment.
Hussain Alghassani is a Chairman of Company. He is a kindhearted person and always has a soft corner for his employees. He has not fired a single employee from the company on the basis of poor performance. He gives a good raise in salaries to those employees who perform well and keep upgrading themselves. Saud is a middle-aged person having three school going children. He is a bread earner of his family and the survival totally depends on his salary. Due to his below average performance his salary has not been raised since the last few years. Hussain knows very well about Saud and his family.
Tarique has recently joined as a Director, HR and Administration Department. He has got a vast experience in HR departments of different well reputed universities. The meeting of the board of directors is held regarding annual increment in the employees salaries. Evaluating each employees performance is one of the meeting agenda. The meeting is chaired by chairman, Hussain. When the discussion comes to Saud, the board gives suggestions not to raise his salary due to his poor performance throughout the year. Tarique is against the board and its suggestions. He says that not raising any employees salary for many years is unethical and cannot be justified. He supports Saud by saying that he has given more than fifty percent of his professional life and he deserves promotion as well as increment. Tarique suggests the chairman, Hussain to fire Saud or promote him. Tarique strongly believes that not raising salaries is a demotivating factor and has a negative effect on employees behavior and performance. Tarique suggests Hussain to love or leave him.
Read the above case study and answer the following questions:
Identify the main problem and subproblems of the case?
Write all the information present in the case that would be helpful for decision. What other information should you gather, that would be helpful to know before making decision?Identify alternative choices for decision.
Weighing the alternatives [Marks 2]
Draw a decision tree based on the case study for decision making,
As chairman of the XYZ company, How will you manage this ethical dilemma? what will be your decision regarding Saud?
Write the conclusion and overall assessment.
Analyzing the Case Study
Main Problem and Subproblems:
The main problem in this case study revolves around Saud, an experienced employee who has not upgraded himself, leading to below-average performance and stagnant salary. The subproblems include Saud's lack of motivation for change, the ethical dilemma of not raising his salary for years, and the impact of this situation on employee morale and performance.
Information for Decision-making:
1. Saud is an experienced employee with satisfactory routine work performance.
2. Saud has not upgraded himself in his tenure.
3. Hussain, the Chairman, values loyalty and has not fired any employee for poor performance.
4. Tarique, the new HR Director, believes that not raising salaries is demotivating.
5. Saud is the sole breadwinner for his family with three children.
6. The board suggests not raising Saud's salary due to poor performance.
Additional Information to Gather:
1. Detailed performance evaluations of Saud over the years.
2. Feedback from Saud's colleagues and supervisors.
3. Saud's willingness to undergo training or professional development.
4. Market analysis of Saud's current salary compared to industry standards.
5. Impact assessment on company productivity due to Saud's performance.
Alternative Choices for Decision:
1. Provide Saud with a performance improvement plan and training opportunities.
2. Offer Saud a lateral move within the company to explore new challenges.
3. Initiate a transparent discussion with Saud regarding his career goals and motivation.
4. Consider a gradual salary increase tied to performance milestones.
Weighing the Alternatives:
- Performance Improvement Plan: Pros - Opportunity for growth, Cons - No immediate salary raise.
- Lateral Move: Pros - Fresh challenge, Cons - May not address core performance issues.
- Transparent Discussion: Pros - Understanding employee perspective, Cons - May not lead to desired outcome immediately.
- Gradual Salary Increase: Pros - Motivational factor, Cons - Performance improvement not guaranteed.
Decision Tree for Decision Making:
1. Evaluate Saud's Performance -> Identify Training Needs
a. Performance Improved? -> Yes: Offer Salary Raise, No: Provide Further Support
b. Employee Motivated for Change? -> Yes: Implement New Role, No: Discuss Career Path
Managing the Ethical Dilemma as Chairman:
As Chairman, it is crucial to balance loyalty with performance standards. In this case, I would opt for a comprehensive approach:
1. Engage in a candid conversation with Saud to understand his challenges and aspirations.
2. Offer professional development opportunities to enhance Saud's skills and motivation.
3. Set clear performance goals and a timeline for improvement.
4. Monitor progress closely and provide support where needed.
5. Consider a gradual salary increase linked to performance milestones.
Conclusion and Overall Assessment:
The case study highlights the importance of addressing performance issues while maintaining empathy towards employees' personal situations. By offering support, guidance, and opportunities for growth, companies can effectively manage underperforming employees like Saud. Balancing ethical considerations with organizational goals is key to fostering a positive work environment and driving employee motivation and performance.