Bob Schein, vice president of human resources at Glenfair Electronics, sat at hi
ID: 2747003 • Letter: B
Question
Bob Schein, vice president of human resources at Glenfair Electronics, sat at his desk thinking about the meeting he had just had with Anwar Patel, an accountant. He had listened intently to Patel describe what had transpired in the finance department during the last few weeks. Patel joined Glenfair after completing his degree in accounting five years ago. For the past three years, he had been preparing Glenfair’s sales revenue reports. As a listed company, Glenfair was required by the Securities and Exchange Commission to issue public sales and profit forecasts. Glenfair Electronics had over 10,000 employees and a reputation for producing high-quality electronic components used in a number of manufacturing applications. The company had begun to experience a slowdown in product demand, and their share price had declined as well in the last year and a half. Patel had told Schein that he had been instructed to use a different and more aggressive accounting method for forecasting and calculating projected sales revenue for the coming year. He believed that such an approach could mislead shareholders about Glenfair’s likely future sales performance. The previous chief financial officer (CFO) had taken a rather conservative approach and did not stretch the boundaries of acceptable practices. Since the beginning of the year, however, Patel was working under a new CFO, John Beatty. Beatty had joined Glenfair earlier in the year after not obtaining a promotion to CFO at his previous company. Everyone perceived him to be smart and ambitious and it was clear that he was determined to make his mark at Glenfair. When Patel pointed out that the proposed accounting methods were very different from Glenfair’s traditional practices for reporting sales revenue, he told Schein that Beatty had said, “Well, I am the new CFO, and I have a different view and approach.” However, it was his next remark that disturbed Patel the most. According to Patel, Beatty went on to say, “Sales should turn around next quarter, and we are justified in reporting higher expected sales revenue in the coming months. Besides, Anwar, don’t you want your Glenfair stock to do well?” Projected higher sales revenue could indeed burnish Glenfair’s earnings outlook and probably help its stock price. When Patel persisted in questioning the accounting methods, Beatty allegedly told him to do his job as instructed. Since that conversation, Patel felt that Beatty had become hostile toward him, and they no longer had a friendly relationship. Despite his fears, Patel felt he had to come to Schein for advice. Schein could see that Patel was worried about Beatty finding out about their meeting. Schein was disturbed by what he had heard from Patel and sat at his desk thinking about what he should do as vice president of human resources.
Questions 1. If you were Schein, what would you do, if anything? Explain.
2. What should Schein do about Patel’s claim that Beatty has become hostile toward him?
3. What rights and protections do whistle-blowers have in the workplace today?
Explanation / Answer
Answer 1: As an HR, upholding ethical values of organization is prime responsibility of any HR personnel. The claims made by the employee needs to be ascertained before any further action is undertaken. Gathering and Examination of Facts is of utmost importance here keeping in mind the reputation of the organization and the designation of the individual involved. Any botched up investigation might lead to organization getting a bad name and loss of job for many.
It should be ensured that no one should be aware of such investigation as it may lead to a lot of unwanted questions and situations.
Investigation should not be limited to internal employees but facts like why Beatty left his previous job also needs to be examined. His reputation in the previous organization and initiatives that he has taken in same situation.
Every organzation has a department which deals with ethical issues. This should be highlighted to them and also the HR is required to submit all substantial proof that have been gathered to this department. Facts should have testimonies from other employees who should have noticed all what Patel has claimed.
It might also be a case that with his experience Beatty is trying to push for certain change that might not be acceptable due to comany's traditinal norms but not unetical.
If it is found out that ethics are being compromised to an extent that it damages the reputation, the final call lies with the CEO.
Answer 2: Patel needs to be asked to calm down and be assured that organization will stand up with him and ensure that nothing goes out of the HR room. He needs to be praised for the fact that he has noticed something bad happening and has shown the courage to stand up and highlight. Such situation are part of Boss and Subordinate relationships and need to be taken in positively.
Answer 3: In today's world of strong competition many organizations resort to unethical practices and manipulate records and data. They never think about the same even twice before indulging in such mal practices. There will always be employees who will have a special concern and connect for the work place and just cannot tolerate any unetical practice. These people will always try and highlight such practices. These are definately special bunch of people who need to be protected in case hell breaks loose. It should always be taken into consideration that any individual who has complained or even testified in any prceeding has done it in good faith. The whistleblower has complete right to be protected and the organization holds the responsibility to ensure that in all possible way the identity of the whistle blower is protected. They have the right to know what action has been taken on their complaint and what the organization is doing to ensure that such acts are not repeated. All legal help needs to be made available to the whistleblower.