1:Read “Application Case 2-1: Gen Y Rocks the Business World” and answer the following questions.What will organizations have to do to adapt to the influx of needed Generation Y individuals?Is Generation Y really that different from previous generations that entered the workforce in large numbers? Explain.Will Generation Y individuals have to make adjustments in their style, preferences, and interests to be successful in their careers? Explain.2:Read “Application Case 3-1: Sexual Harassment Cases are Becoming More Complex” and answer the following questions.https://prezi.com/m/1ymmm36zskym/background/Should the president of Caritas Christi Health Care be fired? Why?Why is the handling of sexual harassment cases considered complicated?Explain why consistency in handling sexual harassment claims is important.3:Discuss how the use of technology (such as an HRIS) has helped to facilitate the evolution of HR from an administrative function to one that is more strategic. Provide examples from a managerial perspective. Select an era and discuss what HR did during that time and how it would be different today with the use of technology.4:What are some ways that technology can help companies and leaders to manage compensation, benefits plans, and associated costs? How does managing employee compensation relate to overall business goals? Provide examples from a managerial perspective. Select an HRIS and discuss the ways that this system could be utilized to manage compensation and benefits.5:Read “Application Case 13-1: Dunkin’ Donuts and Domino’s Pizza: Training for Quality and Hustle” and answer the following questions.What are the strengths and shortcomings of a decentralized approach to training managers and hourly employees? Discuss.Develop a plan for determining the training needs of the hourly paid staff of a Domino’s pizza franchise. In your opinion, why was the turnover rate among management trainees in Dunkin’ Donuts’ centralized program so high?6:Review “Application Case 16-1: The High Cost of Theft and Fraud” and answer the following questions.How do internal controls such as separation of duties, redundancy, and centralized processes discourage employees from committing fraudulent acts?Why are some small businesses more susceptible to employee fraud and theft? Explain.Given that the ACFE “2010 Global Fraud Study” reported that employee tips were the most common way that fraudulent acts are discovered, how can an organization encourage honest employees to report fraudulent behavior committed by co-workers, supervisors, clients, or vendors?How important is it for an organization to have a code of conduct that defines fraudulent behavior, and what happens to those individuals who commit such acts?7:Integrity is one of the core values at Saint Leo University. Read “Case 3: Real Sales or Wishful Thinking?” (click here to download) and discuss your thoughts. Is there an ethical issue in this situation that relates to integrity? If so, what is the issue, and how should it be addressed?
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Case 3: Real Sales or Wishful Thinking?
Robert sells shipping supplies for a warehouse supply wholesaler in Denver. He has
been with Warehouse Supply for almost a year, hired fresh out of Collegiate U with
a degree in marketing. Robert says it is his dream job. He always wanted to be in
sales, and he loves the organized chaos of a warehouse as trucks and freight move in
and out. He has a real understanding of warehousing, learned while he was working
summers and part time as an order picker in a club store warehouse. He worked
there until his junior year at Collegiate, when he had the accident on Highway 17
that left him a paraplegic. After the accident, he spent months in rehabilitation
and had to take some time off from school. Then, because he was in a wheelchair,
he could not go back to his job as order picker in the warehouse. He still got his
marketing degree, though. It just took him a little longer.
“I really like sales,” Robert says, “It gets me out and about, and I enjoy working
with the customers. I was afraid my wheelchair would put people off, and I’d be
stuck behind a desk for the rest of my life. I’d hate that. I’m thankful that I have
the accessible van and can drive my own route. I know I’m a little slower than some
of the guys, but I think I’ve earned their respect, and I like the challenge. I don’t
always make the numbers, but people need to know that there is a lot more that a
paraplegic can do than what he can’t do.”
Unfortunately, sales have been down for Warehouse Supply for the last two quarters.
When consumers buy less merchandise like toys, clothes, gadgets, etc., there are
fewer shipments in and out of warehouses and less demand for warehouse supplies.
Like most other sales organizations, Warehouse Supply compensates its sales staff
with commission and bonuses in addition to base salary. Besides the sales staff,
management-level employees also receive bonuses based on sales numbers. When
sales shrink, everybody feels the pinch.
Marty is the sales manager for Robert’s district. When Marty interviewed Robert for
the job, he was impressed with Robert’s knowledge of warehousing, his enthusiasm
for sales and his outgoing personality. He’d never hired anyone in a wheelchair
before, but he thought, “What the heck, I think this guy can do the job, and we
should give him a try.” Robert learned fast, and once the customers got used to the
idea of a guy in a wheelchair in the warehouse, things seemed to be fine, although
Marty had to admit that Robert’s sales numbers were never outstanding. Most
months, Robert’s sales are at or near the bottom of the pack. “He’s just a little
slower,” Marty said. “By the time he gets that van parked and gets his chair in and
out, he just can’t get around to as many customers in a day as the other guys. But he
does all right, and he makes a lot of calls from the office. Can’t say he’s not on top of
his customers needs. He takes good care of them.”
12 © 2010 Society for Human Resource Management. Myrna L. Gusdorf, MBA, SPHR
With sales down, Marty is getting pressure from Frank Bishoff, Warehouse Supply’s
vice president of sales at the home office in Phoenix, Ariz. Frank is always a little
edgy when bonuses are due, but this time he is really on Marty. He called again this
morning. “Hey Marty, what’s going on out there? All I see is inventory stacking
up and your sales numbers going down! I know everybody’s sliding a little in this
economy, but your second quarter numbers are terrible. You’ve got to move some
product, and move it now! I’m getting pressure from the guys upstairs. You know
that everybody’s bonus is riding on this, and we’re nearly at the end of the quarter.
I’ll be in Denver at the end of the month. We’re taking a closer look at your numbers
and your people. You’d better tell anybody who’s not up to speed that it has got to
change—or they’re going to be gone. Whatever it takes, Marty, get those numbers
in now!”
Marty has three weeks before Frank comes to Denver. “Heck, if they’ll just take it
easy until the next quarter, we’d be fine,” thinks Marty. “I know our numbers are
a little flat right now, but we’ll have big orders next quarter, when Quality Retail
buys for their anniversary sale. I just wish we had those numbers now; then Frank
and his cronies would leave us alone. I think I’ll give Robert a call. Quality Retail is
his account. If he’d just write up their anniversary sale orders today and get them in
the system, we’d all be off the hook. Why not? Frank said whatever it takes. We can
always back the numbers out at the end of the quarter if need be, and Robert can
square up the account with Quality later. Besides, he might just save his own job.
Why should I take the heat alone? It’s time he knew Frank has always thought it was
a lousy idea to hire a guy in a wheelchair. Maybe Robert does belong in a desk job.”
Warehouse Supply’s HR department is located at the home office in Phoenix, and
Marty has never had anything to do with HR. A representative from Phoenix comes
to Denver occasionally to do some training—usually sexual harassment—and Marty
knows there is an employee handbook, but he’s never read it beyond the statement
he signed concerning employment-at-will. Considering the pressure he is under from
Frank, he believes the focus for sales at Warehouse Supply is on making the numbers
and not much else.
“There’s no harm in getting the orders in early,” Marty muses. “Besides, we can
always back the numbers out later if we need to. And this way everyone gets their
bonuses. Isn’t that what they really want anyway?”
Is there an ethical issue here? If so, what is the issue and how should it be addressed?
© 2010 Society for Human Resource Management. Myrna L. Gusdorf, MBA, SPHR 13
Gen Y Rocks the Business World
Nearly every businessperson over 35 has done it: sat in her office after a staff meeting and—reflecting
upon the 25-year-old colleague with two tattoos, a piercing, a near addiction to checking his Facebook
account with his smart phone, no watch, and a shameless propensity for chatting up the boss—
wondered, What is with that guy!
At once a hipster and a climber, he is all nonchalance and expectation. He is new, he is annoying, and he
and his female counterparts are invading corporate offices across America.
Generation Y: Its members are different in many respects, from their upbringing to their politics. But it
might be their effect on the workplace that makes them truly noteworthy— more so than other
generations of twentysomethings that writers have been collectively profiling since time immemorial.
They’re ambitious, they’re demanding in terms of the boss’s time, and they question everything, so if
there isn’t a good reason for that long commute or late night, don’t expect them to do it. When it comes
to loyalty, the companies they work for are last on their list— behind their families, their friends, their
co-workers and, of course, themselves.
But there are millions of them. And as the baby boomers begin to retire, triggering a well-publicized and
feared worker shortage, businesses are realizing that they may have no choice but to accommodate
these curious Gen Y creatures. Especially because if they don’t, the creatures will simply go home to
their parents, who in all likelihood will welcome them back.
Some 64 million skilled workers will be able to retire by the end of this decade, according to the Co n
ference Board, and companies will need to go the extra mile to replace them, even if it means putting up
with some outsized expectations. There is a precedent for this: In April 1969, Fortune wrote, “Because
the demand for their services so greatly exceeds the supply, young graduates are in a strong position to
dictate terms to their prospective employers. Young employees are demanding that they be given
productive tasks to do from the first day of work, and that the people they work for notice and react to
their performance.”
Those were the early baby boomers, and—with their 1960s sensibility and navelgazing— they left their
mark on just about every institution they passed through. Now come their children, to confound them.
The kids—self-absorbed, gregarious, multitasking, loud, optimistic, pierced—are exactly what the
boomers raised them to be, and now they’re being themselves all over the business world.
The workworld will be different.
“This is the most high-maintenance workforce in the history of the world,” says Bruce Tulgan , the
founder of leading generational -research firm RainmakerThinking . “The good news is they’re also going
to be the most high-performing workforce in the history of the world. They walk in with more
information in their heads, more information at their fingertips—and, sure, they have high expectations,
but they have the highest expectations first and foremost for themselves.”
There is likely to be a cultural clash between the different generations in the workplace. The Generation
Y tribe is offering some startling examples of changes at work. A Beverly Hills psychiatrist’s office is an
unlikely triage center for the mash-up of generations in the workforce. But Dr. Charles Sophy is seeing
the casualties firsthand. Last year, when a 24-year-old salesman at a car dealership didn’t get his yearly
bonus because of poor performance, both of his parents showed up at the company’s regional
headquarters and sat outside the CEO’s office, refusing to leave until they got a meeting. “Security had
to come and escort them out,” Sophy says.
A 22-year-old pharmaceutical employee learned that he was not getting the promotion he had been
eyeing. His boss told him he needed to work on his weaknesses first. The Harvard grad had excelled at
everything he had ever done, so he was crushed by the news. He told his parents about the
performance review, and they were convinced there was some misunderstanding, some way they could
fix it, as they’d been able to fix everything before. His mother called the human resources department
the next day. Seventeen times. She left increasingly frustrated messages: “You’re purposely ignoring us”;
“you fudged the evaluation”; “you have it in for my son.” She demanded a mediation session with her,
her son, his boss, and HR—and got it. At one point, the 22-year-old reprimanded the HR rep for being
“rude to my mom.”
The patients on Sophy’s couch aren’t the twentysomethings dealing with their first taste of failure. Nor
are they the “helicopter parents.” They’re the traumatized bosses, as well as the 47-year-old woman
from HR who has been hassled time and again by her youngest workers and their parents. Now the
pharmaceutical company that employs her has her in therapy, and she’s on six-month stress leave.
And she’s going to have plenty of company. Managers and their companies will have to
deal with the 76 million children of baby boomers, born after 1978, who have started pouring
into offices across the land. Four generations are being asked to coexist at once: traditionalists
(born before 1945), boomers (born 1946–1964), Generation X (1965–1977), and
Gen Ys. Managers will be challenged to minimize the friction and maximize the assets of
four distinct sets of work values and styles simultaneously.
The generation Ys are disruptive not only because of their size but because of their
attitudes. Speak to enough intergenerational experts who study such things (and we spoke
to more than a dozen of them), and you begin to get the picture: Generation Ys aren’t interested
in the financial success that drove the boo m ers or the independence that has marked
the Gen Xs , but in careers that are personalized. They want educational opportunities in
China and a chance to work in their companies’ R&D departments for six months. “They
have no expectation that the first place they work will at all be related to their career, so
they’re willing to move around until they find a place that suits them,” says Dan Rasmus ,
who runs a workplace think tank for Microsoft. Thanks to their overinvolved boomer parents,
this cohort has been coddled and pumped up to believe they can achieve anything.
Immersion in PCs, video games, e-mail, the Internet, and cell phones for most of their lives
has changed their thought patterns and may also have a c tually changed how their brains
developed physiologically. These folks want feedback daily, not annually. And in case it’s
not obvious, Gen Ys are fearless and blunt. If they think they know a better way, they’ll
tell you, regardless of your title.
Meet any of the Generation Ys now embarking on their careers, and this picture comes to life.
Impatience with anything that doesn’t lead to learning and advancement? “Nothing infuriates us more
than busywork,” says 24-year-old Katie Day, an assistant editor at Berkley Publishing, a division of
Penguin Group USA. Fearlessness? “I don’t have time to be intimidated,” says Anna Stassen , a 26-yearold cop y writer at the advertising agency Fallon Worldwide who treats her bosses like “the guys.” “It’s
not that I’m disrespectful; it’s just a waste of energy to be fearful.” Permanently plugged in and juggling?
“I’m constantly playing video games, on a call, doing work, and the thing is, all of it gets done, and it gets
done well,” says Beth Trippie , 26, a senior scheduling specialist, aptly enough, at Best Buy’s corporate
offices who’s also finishing her MBA. “If the results aren’t great, then fine; but if not, who cares how it
gets done?”
Can some of this be chalked up to simple naïveté and brio , hallmarks of every generation in its youth?
Sure. But experts believe that this won’t wash away with age. “It’s not a case of when they grow up,
they’ll see the world differently,” says Joseph Gibbons, research director at the FutureWork Institute.
“These values don’t change over time.” So if companies want to attract, retain, manage, and motivate
the next generation of workers, they’re going to have to adapt.
What will organizations have to do to adapt to the influx of needed Generation Y individuals?
The High Cost of Theft and Fraud
Owners and managers want to believe that their employees are honest, hardworking, and have only the
company’s best interests at heart. And most employees do fit that description. There are some,
however, who feel that they are entitled to an occasional box of pens or can run off unlimited copies
from the company machine. These sorts of unintentional perks may go unnoticed by management, but
they do add up. And the reality is that few companies recognize the deep bite that employee theft—big
or small—can take out of a company’s profit margin. That is, until a major incident makes headlines or
cuts into the company’s bottom line.
Take a nationally known beverage retailer, for example. This Pacific Northwest business found success
with premium coffee and expanded rapidly—so rapidly that it perhaps outgrew its internal controls.
Managers no doubt kept an eye on employees to make sure they did not pass out free beverages to
their friends. But despite internal controls, in 2001 an employee created a fictitious consulting firm,
submitted invoices to the beverage retailer, and arranged for the retailer to send payments to a special
post office box. In less than a year, this employee embezzled $3.7 million, using the money to buy a
collection of automobiles, motorcycles, a yacht, real estate, three grand pianos, and a variety of other
luxury goods.
That same year, a leading boat manufacturer filed suit against its former CFO, accusing him of
embezzling $14 million in company funds over 16 years to finance his own stock purchases, to run three
businesses, and to pay off personal credit card expenses. In 2005, a national office supply retailer began
the year by firing four employees who were believed to have fabricated documentation for $3.3 million
in invoices to the company. This fraud was uncovered only when a vendor complained that kickbacks
were being demanded and that bills were being falsified. Fast-forward to 2009 when a mind-boggling
case of embezzlement hit a family-owned business in Milwaukee. A well-respected senior employee was
indicated for embezzling $31.5 million over a five-year period. The firm’s credit card company, American
Express, was the first to identify the unauthorized transactions because it noticed that the employee
was withdrawing large sums of company funds to pay off her personal credit card account.
Are these isolated incidents? Not according to the Association of Certified Fraud Examiners (ACFE). In its
“2010 Global Fraud Study,” the ACFE investigated fraud cases in the United States and in over 100 other
countries and reported that organizations lose 5 percent of their annual revenues (or, approximately
$2.9 trillion) to fraud.
The ACFE study notes that fraud can happen at any level of a company, from the mailroom employee to
the account executive to the senior executive. While fraud is more prevalent at lower levels, the damage
is usually more substantial when high-level executives are involved. The ACFE found that the median
loss when owners/executives are involved ($723,000) was more than six times the median loss caused
by managers ($200,000) and more than nine times that involving lower-level employees ($80,000).
Despite the examples cited above, losses are not limited to major corporations. Small businesses are
often the hardest hit by employee fraud. Almost half of the fraud cases studied by the ACFE involved
small businesses, with the median loss pegged at almost $100,000, a difficult amount for any company
to lose, let alone a small business with limited resources.
An effective control is to have a separation of duties whenever employees handle money. For instance,
if one employee reviews invoices and authorizes payment, then a second employee should write and
send the check, and yet another employee should reconcile the bank statements.
In addition to a separation of duties, redundancy is also a powerful control. This means having more
than one person look at the same transaction. For example, checks should be cosigned rather than
authorized by only one person, and multiple employees should have responsibility for overseeing
specific bank accounts preventing one employee from “lapping” or moving funds from account to
account ahead of any audit so that no irregularities are detected.
Centralized processes also allow tighter control. When procurement is centralized, employees in
satellite offices are not able to buy more than needed and then resell or return items for cash. When
inventory is centralized, employees know that the company’s assets are tracked and monitored.
Internal controls should also be used to detect fictitious vendors. In addition, processes should be in
place to verify that vendors exist, that they are performing their duties for the company, and that
payment is in line with the services provided.
While internal controls are vital, they are not the only way to detect and to discourage employee fraud.
In fact, today more fraud is found by accident than through the strength of internal controls. However,
neither tops the list of how fraud is detected. The ACFE found that almost 40 percent of fraud is
discovered through tips, the majority of which come from employees. Customers, vendors, and
anonymous callers are also good sources.
Another mechanism for controlling employee fraud is to institute careful hiring practices, although this
approach is less effective than strong internal controls or a forum for tips. Unicru, a company that
specializes in helping other companies recruit and hire employees, has found that 70 percent of
“internal shri …
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