Management
Management
12th Edition
ISBN: 9781305393462
Author: DAFT, Richard L.
Publisher: South-Western College Pub
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Chapter 16, Problem 2ED
Summary Introduction

Case Summary:

Federico Garcia is having a meeting with sales representatives informing them that the company will not be able to pay their bonuses as the companies deteriorating financial situation will trigger an external clause in their agreement.

Characters in the case:

Federico Garcia, Michael, CFO James Wilson.

Adequate Information:

Puget Building Materials will have to face the future repercussions of Sales representative demotivation.

To determine:

We are to instruct Federico to have a meeting with the sales representatives and infirm them that their contract is no longer valid and that they will not be able to pay the bonuses.

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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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