Case Study Edna Bumpkin

Case Study – Edna Bumpkin

Please review the FOI Organizational Chart at the end of the lesson. As you may recall, John Fallin is 41 and has been the G.M. of FOI since it opened 6 years ago. He has an M.B.A and 10 years former experience as an F & B director. He receives a year-end bonus based on job performance and occupancy rates. Edna Duncan is the part-time bookkeeper that Frank the owner asked John to hire after her husband, Frank’s friend, died.

There are several things going on in this case, but we are going to focus on the problem of Edna’s lack of productivity. The bookkeeping is not getting done. John is her supervisor and depends on her bookkeeping in order to be able to do his job.

Low productivity is a cost control issue. When an employee is not doing enough work in the allotted amount of time, it means that additional time must be spent which increases the labor cost. The additional labor cost comes out of profit. So, we have to decide what John should do. He can either do nothing about the Edna problem or try to resolve it.

About the worst thing that can happen if John tries to resolve the problem is that Edna could become very emotional, get mad, and she might even quit and tell Frank that John is mean, etc. It’s also possible that she could use this as a wake-up call and make an effort to improve.

John has done nothing in the past about Edna’s lack of productivity. To continue doing nothing is in itself a decision. On the following blank Ethics Analysis Form, analyze the decision for John to do nothing about Edna’s performance. Answer the following questions about each of the stakeholders and enter your answers on the form. Compare your analysis with the key only after you have completed yours.

Who are the stakeholders who could be affected by John’s decision and/or action? (John, Edna, FOI, Frank) Let’s analyze the consequences if John keeps his mouth shut and does nothing about Edna. Ethics Analysis Form

Decision Option: Stakeholders Principles Consequences Possible Consequences for John, G.M The consequences in this dilemma aren’t quite as dramatic as in some of the other dilemmas. If John continues to say nothing to Edna about her work, he can avoid a possible scene and Frank will never know there is a problem. How might continuing to say nothing affect John’s attitude toward Edna? His behavior?

Who is responsible for the financial success of FOI? Will John be held accountable even if the books are unfinished and disorganized? What message is John giving Edna about her work if he says nothing? Will other employees ever know that he doesn’t require Edna to do her job properly? Can this affect John’s ability to lead?

Possible Consequences for Edna, Bookkeeper If John continues to say nothing to Edna about her work, would she be aware that he is not pleased with her work? Would she feel his respect and gratitude for doing a good job?

As managers, we acknowledge our employees’ strengths so that they know we appreciate what they are doing. With support, they keep on doing it. The standards are set to assure the success of the operation. If an employee is not meeting the standard and we don’t notice or do anything about it, will they ever know they aren’t doing it right? And how can they improve? Are managers responsible for the work their employees do? John is allowing Edna to slide. What affect might this have on her grieving process? She has been grieving for quite awhile. If she is required to do her job, will she? Is this good for her?

Possible Consequences for Frank, Owner Frank was trying to do a caring thing for his best friend’s widow. Is it good for FOI? If Frank never discovers that Edna doesn’t do her work, he may feel very good about his kind act. Would he maybe do another kind act sometime involving the placement of staff at FOI? How will this make John feel? What effect could this have on John’s working relationship with Frank?

Possible Consequences for FOI If John allows Edna to continue doing her job improperly, how could this affect FOI? John is probably responsible for doing the budget and forecasting. Can he do this if Edna is not taking care of the books? Does he have time to do the books himself?

Ethical Principles John can either choose to do something about Edna’s poor punctuality and productivity or not. We have identified the consequences for the decision option doing nothing. Look at the list of Ethical Principles below and enter violated principles on the form. Honesty? Yes. By not correcting Edna, John misleads her, letting her think that her work is acceptable. Integrity? Maybe. It may be initially less painful to not say anything to Edna. But it is not the right thing to do. It is John’s responsibility to make sure that Edna is doing her job. Trustworthiness? Yes. The company needs to be able to trust that John is taking care of business. If John doesn’t, he can’t be trusted. Fairness? Yes. It isn’t fair to not say anything and then fire someone for something he or she may not have known. Concern & Respect For Others? Yes. Edna is suffering, but enabling her to go on suffering and neglecting her job may not be what is best for Edna. Leadership? Yes. Leaders help their employees to be their very best. Ignoring Edna’s poor performance allows it to continue. Commitment to Excellence? Yes. Management never looks the other way when a standard is not being met by an employee. Reputation & Morale? Yes. Everyone is to be on task and reasonably productive. When one isn’t, others notice and it can cause problems. Accountability? Yes. John is responsible for the entire facility. Edna, however, reports directly to John. He is her supervisor and is accountable.)

Other Decision Options Using the same form you just filled out, go through all the stakeholders and ask about the consequences if John does something about Edna’s performance. First ask: If John decides to do something about Edna’s performance, what sort of things could he do? Do we just fire someone who isn’t doing his or her job? (No. Only as a last resort after trying to get them back on track)

If John gets Edna on track, he will have the books done properly and in a timely manner. What if Edna quits instead of improving her work? Is that bad? (No. John is free to hire a competent bookkeeper. He will have to deal with Frank, though.)

If John confronts Edna, her feelings will most likely be hurt. She may be forced to do a better job, however, which will ultimately make her feel better and perhaps help her to get on with her life. It is probably kinder in the long run to risk hurting her feelings than to let her continue doing such a poor job.

Frank started this whole thing with his decision to try to help Edna with a position at the inn. Maybe we should be considering this initial decision. If Frank helped Edna in a different way, this would not have been a problem. He was showing concern for others (Edna) which is, of course, a very good thing. However, John was then put in the uncomfortable position of either having to play along or tell Frank that he didn’t want the grieving widow. In this situation, John went along but it turned out poorly.

What are some other options here? Frank could have thought about Edna’s state of mind and questioned whether she could really focus on the work. Maybe John could have thought about that in advance and questioned Frank. What do you think?

Is there a way that this problem could have been avoided? One of the ethical principles is Concern & Respect for Others. Who are we supposed to be concerned about? Edna? John? Frank? Who’s more important here? How do we choose? Is Concern & Respect for Others (Edna) more important than Accountability? And if we’re concerned about Edna, what is really best for her? We read in One-Minute Eggmeyer how John actually handled the situation and what happened to Edna Duncan.

You will probably be in our industry’s top positions in the next twenty-five years. You may even be owners or CEOs. You will make decisions that affect everyone in your organization. We know that when we make decisions that violate ethical principles, there are many negative consequences that, like ripples in a pond, can go on and on. This is why it is essential for you to think about these principles and how they apply in every decision you make.

In the Edna situation, Frank could have helped her in a way that didn’t involve FOI. Or he could have met with her and John and outlined the duties she would be responsible for and ensured that she understood what was expected. He could have asked whether or not she thought she could handle the position. She could have been informed in advance that she would be expected to perform to standards and held accountable in the same way all FOI employees are held accountable for their performance.

One unethical or thoughtless decision can lead to other distressing situations. This situation involved something similar to nepotism (favoritism shown to a relative in business). You may have personally experienced something along this line. When we are in management, we are responsible for reducing waste, theft, and any other problems that interfere with the business of making profit. Low productivity is a problem that interferes with the bottom line.

Freshwater Oasis Inn Management Organization

Owner Frank Stratton

General Mgr. Business Mgr. John Fallin Lex Lilly

Asst. Gen. Mgr. Bookkeeper Chief Engineer Executive Chef Heidi Bell E. Duncan/S. Eggmeyer Bill Gardner Eric Altman

Bar Mgr. Sous Chef Mike Scales Dardina Traylor

Dining Rm. Mgr. Tony Marziano

Front Desk Mgr. Gabe Deflores

Exec Housekeeper Kathy Lawhorn

Ethical Principles for Hospitality Managers

Honesty: Hospitality managers are honest and truthful. They do not mislead or deceive others by misrepresentations.

Integrity: Hospitality managers demonstrate the courage of their convictions by doing what they know is right even when there is pressure to do otherwise. Trustworthiness: Hospitality managers are trustworthy and candid in supplying information and in correcting misapprehensions of fact. They do not create justifications for escaping their promises and commitments.

Loyalty: Hospitality managers demonstrate loyalty to their companies in devotion to duty and loyalty to colleagues by friendship in adversity. They avoid conflicts of interest; do not use or disclose confidential information; and should they accept other employment, they respect the proprietary information of their former employer.

Fairness: Hospitality managers are fair and equitable in all dealings; they do not abuse power arbitrarily nor take undue advantage of another’s mistakes or difficulties. They treat all individuals with equality, with tolerance for and acceptance of diversity and with an open mind.

Concern and Respect for Others: Hospitality managers are concerned, respectful, compassionate and kind. They are sensitive to the personal concerns of their colleagues and live the “Golden Rule.” They respect the rights and interest of all those who have a stake in their decisions.

Commitment to Excellence: Hospitality managers pursue excellence in performing their duties and are willing to put more into their job than they can get out of it.

Leadership: Hospitality managers are conscious of the responsibility and opportunities of their position of leadership. They realize that the best way to instill ethical principles and ethical awareness in their organizations is by example. They walk their talk!

Reputation and Morale: Hospitality managers seek to protect and build the company’s reputation and the morale of its employees by engaging in conduct that builds respect and by taking whatever actions are necessary to correct or prevent inappropriate conduct of others.

Accountability: Hospitality managers are personally accountable for the ethical quality of their decisions as well as those of their subordinates.

KEY - Ethics Analysis Form Edna Bumpkin Decision Option: John keeps his mouth shut and does nothing about Edna. Stakeholders Principles Consequences John (G.M) Honesty  John can keep a part time employee and Trustworthiness not have to worry about the whole Fairness hiring process Concern & Respect  John keeps Frank and Edna happy. For Others  John’s frustration festers as Leadership bookkeeping work is neglected. The Commitment to frustration could lead to an outburst Excellence directed at Edna or some innocent Reputation & employee. Morale  The books stay unfinished and Accountability disorganized for which John is responsible.  John enables Edna to continue to do inferior work. Edna  Edna keeps her job but her work is not (Bookkeeper) respected.  Her inferior work is accepted so she never improves.  By not being held accountable for her work, her grieving process is perhaps slowed down because she doesn’t have to get on with her life. Frank (Owner)  Frank was trying to be helpful to his friend’s widow, but his action has created problems at FOI.  If John never says anything, Frank may think Edna is doing a good job and may help other friends with jobs. A wedge is created between Frank and John. FOI  FOI could loose money, time, and efficiency through incompetent bookkeeping. Budgeting or forecasting could be hampered.