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
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: Saud's Performance Dilemma at XYZ Company
Thesis Statement
Saud's stagnant performance and lack of professional development pose a significant challenge for the management at XYZ Company. The ethical dilemma of whether to raise his salary, promote him, or consider termination requires a careful assessment of the situation and consideration of various alternatives.
Main Problem and Subproblems
- Main Problem: Saud's below-average performance and lack of advancement over the years.
- Subproblems:- Saud's reluctance to upgrade his skills and adapt to the changing work environment.
- Company's policy of not terminating employees based on performance, leading to stagnation in growth.
- Ethical dilemma regarding Saud's salary increment and promotion due to his long tenure and family circumstances.
Information for Decision-Making
- Saud's tenure of over fifteen years with satisfactory routine work performance.
- Chairman Hussain's leniency towards employees, reluctance to terminate based on performance, and rewarding high performers.
- Tarique's perspective on the ethical implications of not raising Saud's salary for several years.
- Saud's family situation as the primary breadwinner with three school-going children.
Additional Information Needed
- Saud's past performance reviews and feedback from supervisors.
- Available opportunities for professional development within the company.
- Comparative analysis of Saud's performance with industry benchmarks.
- Input from Saud regarding his career aspirations and challenges faced in the role.
Alternative Choices for Decision
1. Provide Saud with opportunities for skill development and training to enhance his performance.
2. Consider a lateral move for Saud within the company to leverage his experience in a different role.
3. Conduct a performance improvement plan with specific goals and timelines for Saud to meet.
4. Terminate Saud's employment due to continued underperformance.
5. Promote Saud to a higher position based on his long-term commitment and experience.
Weighing the Alternatives
- Option 1 and 3 focus on improving Saud's performance through development and support.
- Option 2 offers a chance for Saud to excel in a different capacity within the company.
- Option 4 addresses the issue of underperformance decisively but may impact Saud's family.
- Option 5 recognizes Saud's loyalty but may not address the performance concerns effectively.
Decision Tree for Decision-Making
1. Develop Saud's Skills
- If successful, monitor performance improvement.
- If unsuccessful, consider alternative actions.
2. Lateral Move for Saud
- Assess suitability in new role.
- Monitor performance in the new position.
3. Performance Improvement Plan
- Set clear goals and timelines.
- Review progress and outcomes.
4. Termination
- Evaluate impact on Saud and his family.
- Consider legal and ethical implications.
5. Promotion
- Determine readiness for higher role.
- Address performance concerns in the new position.
Chairman's Ethical Management
As the Chairman of XYZ Company, managing this ethical dilemma requires a balanced approach. I would:
- Initiate a dialogue with Saud to understand his career goals and challenges.
- Offer support for skill development and provide opportunities for growth.
- Implement a performance improvement plan with measurable targets.
- Monitor progress closely and provide feedback and guidance.
- Consider promotion based on demonstrated improvements or explore a lateral move within the company.
Conclusion and Overall Assessment
In conclusion, Saud's case at XYZ Company highlights the challenges of managing long-term employees' performance and growth. By addressing the ethical dilemma with empathy, clear communication, and strategic decision-making, the company can navigate the situation effectively. Balancing Saud's loyalty, family circumstances, and performance expectations is key to fostering a positive work environment while maintaining standards of excellence.