Fred Maiorino Case Study Essay

OverviewFred Maiorino began his c beer at Schering-Plough in 1958 at the age of 28. He had been a successful gross gross sales representative till Jim reed instrument took over the position of General gross revenue Manager for S placeh Jersey sales district in 1987. In 1988, Fred received his lowest incessantly surgical process paygrade of Good which was dismay than any other sales representatives in the district. In fact, Freds salary increase at the end of the quarter was slight than half of the bonnie of other sales representatives who were at least 20 years jr. to him. When reed number one came to New Jersey sales district, he dark to Fred for inspection and repair and rifleing. He implemented a impudent surgical procedure evaluation measuring corpse which rated salesmen according to ii different measures. This new frame included evaluations based on product market piece of land gains and particular incidents of good and in rough-and-ready salesmen action s recorded during give voice calls made by district double-deckers and sales reps.Moreover, reed began coaching his subordinates and providing them with medical journals to help repair sales pitches. Unfortunately, even after working at Schering-Plough for over three decades as a highly successful salesman, Fred was terminated over coffee with Jim beating-reed instrument at a local diner. This report card discusses why the different initiatives taken by Schering-Plough to motivate Fred Maiorino had failed. It also examines Reeds role in the alleged breach of psychological contract and, contributions to the outrage and discrimination against Fred. Finally, this paper will provide recommendations for alternative coaching, goal-setting and wizership approaches that Schering-Plough could withstand adopted instead to ensure employee retention and consignment.Breach of Psychological ContractAt the outgrowth of their kind, Jim Reed informed Fred that he would require Freds he lp in attractership. Although Reed may shake off made the remark in a casual manner, Fred took it seriously as he was able to recall the conversation even after a few years. Older employees tend to racket collaborative tasks through social interactions a good deal than competitive tasks (Kanfer & Ackerman, 2004, p. 441). In fact, employees in their mid livelihoodrespond to a greater extent positively to managerial strategies that promote cooperation instead of competition (Kanfer & Ackerman, 2004). In this case, it is fairly logical to think that Fred may return false that he would be promoted or provided with a salary hike if he was successful in helping Reed design a leadership plan for the district. In fact, this particular conversation with Reed may have led him to believe that Reed would acknowledge his hard work and loyalty by actually taking Freds advice or exit him help with the new strategy thereby, creating a psychological contract between the two parties invo lved. A psychological contact emerges when an employee believes that a promise of future make head trend or return has been made in return for his contributions and, an obligation has been created for the employer (Robinson, Kraatz, & Rousseau, 1994).In other words, a psychological contract refers to the belief or cognizance of mutual obligations of an employee (Rousseau, 1989). Unfortunately, the assigned case does not indicate that Reed lived up to his promise of taking Freds help in motivating, mentoring and training new employees. According to Humphrey (2003) such acts plunder be deflating as the motivational benefits of bottom-up empowerment be forgone or lost. Moreover, violation of psychological contracts may lead to lower motivation and increased intentions to quit (Raja, Johns & Bilgrami, 2011). Thus, breach of such aflame contracts in the workplace may break a carriage rise to distrust, dissatisfaction and in intense cases dissolution of the relationship between an employee and his employer (Roehling, 1997). In fact, breach of the psychological contracts lead to bearings that undermine organizational effectiveness and efficiency (Lemire & Rouillard, 2005).Reeds behavior increased Freds state of vigilance to the hint where he began to actively monitor how well Schering-Plough was meeting the terms of their psychological contract. Moreover, in Freds eyes, Schering-Plough has breached the psychological contract with Fred. Fred had dedicated over 35 years of him life to the company only to find out it had made plans to make him recall early. Furtherto a greater extent, Fred began to lose his faith in Schering-Plough when he realized that younger salespersons were universe hired to replace long-term hard-working employees like him. In addition, Reed referred Freds last to decline the early retirement plan as a foolish act.According to Zagenczyk, Gibney, Kiewitz, and Restubog (2009), supervisors supportiveness/discouragement strengthens/weakens therelationship between employers and employees. A canvass that included 297 responses from 31 organizations confirmed a relationship between the earthly concern of psychological contract and employee commitment. In fact, those with relational psychological contract exhibited more commitment to the workplace than those with transactional contracts (Chiang, Liao, Klein & Jiang, 2012).Violation of Procedural JusticeReeds evaluation and spying on Fred resulted in the latter(prenominal) macrocosm suspend without pay for two days. This led to an increase in Freds feelings of injustice and violation. Additionally, Fred and Reed held different views of the measurement of Freds performance at work, flexibility, goal-setting and the object of coaching. In fact, Reeds communication of matching market share goals and what was expected of Fred was highly complex and ambiguous. Such behavior on Reeds part raised questions about procedural justice at Schering-Plough. Procedural justice is de termined on the basis of the quality of what is being communicated an employee. In other words, procedural justice is based on the cessation to which an employee feels whether his employer communicated crucial decisions in a sensitive and ethical manner (Harvey & Haines III, 2005). In other words, how a decision is made and communicated is what counts most (Harvey & Haines III, 2005). Unfortunately, Reeds behavior implied that he regarded Fred as someone worthy of respect.This was further attest when Reed felt that it was not principal(prenominal) to let Fred know the dates when he saw Freds company car parked in his crusade during work hours. Moreover, the new performance evaluation trunk implemented by Reed showed that Fred was doing very good. However, Reed decided to focus more on the least desirable component of Freds evaluation and give Fred and overall good. The results of the evaluation were humiliating for Fred as it was his lowest ever rating and was certainly lower t han all other new hires who were at least 20 years younger to him. The assigned case field of operations does not tell us how exactly Reed communicated his evaluations of Freds performance to Fred, but it does tell us that he evaluated Fred the very same way the second time. This time he sent Fred a memo letting him know that he was capable of doing better. The procedures involved in decision-making and the method of communication used affect employee behavior at work (Harvey & Haines III, 2005).Ineffective writ of execution Appraisals and Goal-Setting Systems Right after Reed informed Fred that he would need the latters help, he implemented a new appraisal system that evaluated employees based on new criteria. However, this new system seemed to worsen his relationship with Fred. Job carry ondness, formalization, reliability, open communication, trained appraisers, ease of use, employee accessibility and appeal procedures are among some of the characteristics of an effective appra isal system (Caruth & Humphreys, 2008). The newly implemented system barely met any of the above categories. General guidelines instead of comprehensive policies and write instructions were used by the company. It is important to use appraisal systems that go on breakment and are not regarded as threats to be feared by employees (Hammer, 2007).As such, performance evaluations should be followed by accurate description and diagnosis of the ratings so that employees are able to discuss, understand and prevent future problems (Lee, 2005). This was lacking in Reeds appraisal system. Moreover, recording and monitoring employee behavior during joint calls may have led Fred to be more cautious and sick during client interactions. According to Gray (2002) such systems do not kick upstairs competency or loyalty as they are distorted by evaluator bias. Fred never thought his performance rating was fair in fact, he resisted it because older workers are more likely to avoid situations tha t be sick them at a disadvantage when compared to younger employees (Kanfer & Ackerman, 2004). The following paragraphs discuss what Reed could and should have done better to ameliorate Freds situation and circumstances. modify Leadership StyleOne of the major issues that led to Freds decision to take Schering-Plough to court was Reeds uneffective leadership style. It is important for managers to know what behaviors promote achievement of results and what behaviors are plain ineffective (Lindbom, 2007). In fact, one of the most important job duties of a manager is to improve his pursuit performances. This meant, Reed should have communicated better with Fred. In fact, he should have asked Fred about his problems and listened to him instead of simply pushing him and sending him memos for poor performance. cease little feedback and dialog would have allowed Reed to understand Freds needs, strengths, and weaknesses better darn building a stronger bond with him.Once this bond was b uilt, it would have been much easier for Reed to alter Freds behavior according to the interest of the organization. An effective manager is attuned to someone pursual and takes the right field decision at the right time (Buzady, 2011). This allows the manager or leader to interact and alter workloads during sticky times. Transformational leaders focus on matching behaviors and communication instead of goals and skills (Humphreys & Einstein, 2004).Therefore, Reed could have improved Freds motivation and performance by communicating in a way that would have been easy for Fred to understand and relate to. Moreover, a leader must encourage and understand the ideals and values that his followers share. In order to come to a common ground with followers, an effective leader must think less about himself and more for others (Kerfoot, 2004). Congruency can only be reached when a leader looks beyond himself and more toward the opportunities for furtherance of his followers. Leaders sh ould ensure that challenging work that is valued is provided to subordinates while considering the followers ability. He should always consider the followers self-esteem and self-concept, communicate goals all the way and understand the relationship between paying attention to mortal followers and job satisfaction (Isaac, Zerbe & Pitt, 2011). Moreover, it is recommended that sales leaders employ a more active style of leadership in order to improve confederation and performance.Therefore, Reed should have considered adopting transformational leadership style (Bass, 1993). Transformational leaders are those who are able to develop the ability within their subordinates to look beyond their take in self interests and align their goals with that of the organization. Although transactional leadership style is more popular among sales managers and is believed to induce desired responses in employees, transformational leadership has been found to produce higher(prenominal) such results (Dubinsky, Yammarino, Jolson & Spanger, 2001). Transformational leader hold deep personal value systems that allow them to unite their followers while modifying their goals (Bass,1999). Moreover, transformational leader demonstrate individual consideration, charisma and inspirational motivation all of which were lacking in Reed from Freds point of view.Improving CoachingFurthermore, Reed needed to change his way of coaching his subordinates.Reeds concept of coaching included handing out manuals and writing memos that stated Fred was capable of doing better. Today, most organizations are determined to improve the ability of managers to coach their subordinates effectively. Many organizations shelve out millions of dollars to promote and advance a health coaching environment. In fact, coaching is considered a managers top priority in many companies. Therefore, Reed should have designed one-on-one monthly meetings with his subordinates where he could have discussed ways to improve i ndividual sales performance. Moreover, instead of punishing Fred for products that he was marketing less of, Reed should have first appreciated Freds top selling products. Subordinates look forward to reinforcement when they do the right things and welcome plastic criticism when they recognize their work needs improvement (Robinson & Rousseau, 1994).Improving bribe System. A sudden change in the reward systems is commonly not well accepted among employees who perform consistently. Therefore, it was critical for Reed to first speak to his subordinates regarding changes in Reed used a highly ineffective reward system where the company ended up awarding Fred less than his expected salary increase. Instead, Reed should have made every trial to determine what rewards his subordinates valued and how much effort they were willing to make to meet the rewardsperformance and work with them to improve on it. Constant coaching, mentoring and one-on-one monthly individual performance evalu ations would have given employees an idea of what rewards to expect from the new system. In fact, the unexpected and unprecedented reward might have actually de-motivated Fred to the point where he did not find it necessary to work on his weaknesses in selling the two major products of the company.ReferencesAvolio, B. J., Bass, B. M., & Jung, D. I. (1999). 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