MINDTAP F/UNDERSTANDING MGMT
MINDTAP F/UNDERSTANDING MGMT
10th Edition
ISBN: 9780357716915
Author: DAFT
Publisher: CENGAGE L
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Chapter 12, Problem 1ED
Summary Introduction

Case Summary:

The President; Federico Garcia is having a meeting with the sales representative entitled to a bonus. Has to explain to them that the company is in no financial position to pay them, and is legally not entitled to pay either.

Characters in the case:

Federico Garcia, Michael, CFO James Wilson

Adequate Information:

Puget Building Materials will have to make the difficult decision of either paying the representatives and facing the future financial repercussions or not giving them the bonus and betraying the representatives.

To determine:

We are to instruct Federico to inform the sales reps that their bonuses would be delayed until the company's financial future is clarified.

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You have recently been promoted to the position of president of the division from your current role as VP of accounting and finance. Many people thought that the VP of sales and marketing would get the position, but you and he had always been friendly, and you thought that things would go smoothly. After about six months in the new position, you notice that he has been fighting you in small and subtle ways. You recognize his value, so you decide to let things play out and even mention other possibilities for promotion within the organization that he could apply for and that you would be supportive. After 11 months, things have not improved, and you are considering letting your colleague go. You are hesitant, however, because your organization needs a strong sales and marketing department. What should you do? If this power struggle continues, how do you think it will affect the larger organization?
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