Calvatrens Case

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Why Didn’t We Know? Galvatrens is consumer products company based in Houston whose core business is in home-health care and personal beauty. The top management comprises of the CEO and Chairman Chip Brownlee, the COO Harry Mart, the Senior VP of Sales Terry Samples, the Senior VP of Human Resources (HR) Dale Willis, the Lead Director Arch Carter, General Counsel Sydney Baydown, and the head of Audit committee Sheila Cruse. Chip’s predecessor was Walter Nikels, who was “authoritarian and hierarchical in his management and strategy style” (Hasson, 2007, p 2). As the company grew, Walter’s refusal to hire new talents into his executive team led to the exit of some of the best employees to competitors and the unattractiveness of Galvatrens to MBA …show more content…

2), Chip lured Harry from a competitor into Galvatrens as COO. Harry made notable changes to the supply chain, manufacturing efficiency and capacity. Chip also replaced the general counsel with Syd, a colleague in that capacity at Paloreq – where with her contributions, Paloreq was able to attract and retain talent. At Galvatrens, Syd advised that procedures for revealing and solving conflicts in the workplace be improved, modifications she had made too at Paloreq. With the CEO’s permission, Syd had a consulting firm review Galvatren’s existing system; the consultants’ advice brought about the institution of new policies. An open-door policy for raising workplace concerns was one of them; this policy required employees to meet with immediate supervisors or managers at any level about their concerns, and also included a ban on retaliation. Other additions include an ethics officer responsible for enforcing the code of conduct, the use of a toll-free 24-hour hotline in reporting violations to the code of conduct and the launch of an ethics awareness campaign. Essentially, Galvatrens aimed at being transparent and ethical. Even with these reforms, Galvatrens still faced the challenge of having a weak system of confidentially reporting misconduct. Hence, they found themselves in a lawsuit situation filed by Mike Fields, a former divisional sales manager at …show more content…

According to Trevino and Nelson (2014), “rewards and discipline are probably the most important influences on people’s behavior at work”. To prove this, HR should clarify to employees that Mike’s job termination was as a result of his performance slide and not because he uncovered a misconduct. Management should reward Mike by letting him return to his job, giving him a more flexible schedule to allow him manage his personal problems and attach monetary benefits. For Galvatrens, this would be the best recommendation because rewarding Mike would aid an out-of-court settlement and keep the reputation of Galvatrens

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