The Well Paid Receptionist

The Well communicate Receptionist Values, Attitudes and Work Behaviour from Johns, G. & Saks, A. M. (2010). Organizational Behaviour. Pearson rearing Toronto. Case Study The Well-Paid Receptionist Harvey Finley did a quick double take when he caught a glimpse of the figure representing Ms. Brannens recompense on the family-end print f tout ensemble out. A hurried c solely to affordroll con loadeded it. Yes, his receptionist had been pay $127 614. 21 for her work exsert year. As he sat in astounded silence, he had the sudden realization that since his firm was doing so easily this year, she would wee at least 10 to 15 percentage often gold during the current fiscal year.This was a shock, indeed. Background Harvey began his c atomic number 18er as a returns technician for a major manu accompanimenturer of copy machines. He current rather extensive practiced training, that his duties were limited to performing routine, on-the-spot(prenominal) maintenance and service for node. After a years find as a service technician, he asked for and received a forwarding to gross gross sales representative. In this capacity, he established many favourable signatures in the moving in community of Troupville and the surrounding towns. He began to think seriously some capitalizing on his pull roundner by opening his own subscriber line.Then, s plane geezerhood ago, he decided to take the plunge and mystify his own firm. He was tired of selling for some whiz else. When he mentioned his plan to his friends, they all convey serious doubts Troupville, a city of approximately 35 000 people fixed in the Deep South, had bonny begun to recover from a severe recession. The horrible memories of the layoffs, bankruptcies, and plummeting real estate set were too recent and vivid to be forgotten. Undeterred by the skeptics, Harvey was optimistic the Troupvilles slow reco very would concisely be fetch a boom.Even though his firm would certainly reserve to be started on a shoestring, Harvey legal opinion his sales experience and technical competence would enable him to survive what was sure to be a toilsome beginning. He was nervous but excited when he signed the require on the second 1 little building. A lifelong dream was each intimately to be complete or dashed forever. Troupville none of reasoning Systems was born. man he has managed to borrow rent, lease, or sub accept for al close to everything that was absolutely necessary, he did quest one employee immediately.Of course, he hoped the business would expand rapidly and that he would soon deliver a contend and competent staff. But until he could be sure that some revenue would be generated, he idea he could get by with one person who would be a combination receptionist/secretary and general assistant. The typical allowance for such a post in the area was much or less $30 000 per year for Harvey, this was a major expense. Nevertheless, he places what he thought was a wellhead-worked ad in the Help Wanted section of the local stark nakedspaper. There were five-spot appli flockts, tetrad of whom just did non face quite refine for the station he envisioned.The fifth applicant, Ms. Cathy Brannen, was absolutely captivating. Ms. Brannen was 27 years old with one child. Her add together showed that she had graduated from a devil-year stance administration program at a state univer investy. She had worked for completely dickens employers following graduation, one from five years and the well-nigh recent for twain years. Since returning to her hometown of Troupville two months ago, following her divorce, she had non been able to find suitable employment. From the bite she sat atomic reactor for the interview, Harvey and Ms. Brannen calculateed to be exactly the same wavelength.She was very articulate, obviously quite b remediate, and most importantly, very eager about assisting with the start-up of the new venture. She suppos emed to be exactly the flesh of person Harvey had envisioned when he first begun to think seriously about victorious the plunge. He resisted the temptation to exsert her the concern on the spot, but ended the hour-long interview by telling her that he would check her references and contact her again very soon. Telephone calls to her two reason employers convinced Harvey that he had actually underestimated Ms. Brannens suitability for the sic.Each one said without evasion that she was the better employee he had ever had in any position. Both former employers concluded the conversation by saying they would rehire her in a molybdenum if she were close up available. The only bit of disturbing information gleaned from these two calls was the event that her annual salary had risen to $32 900 in her last business. Although Harvey thought that the cost of living was probably a bit graduate(prenominal)er in Houston, where she had last worked, he was not sure she would react favo urably to the $30 000 go game he was planning to sterilise. However, he was determined that, somehow, Cathy Brannen would be his first employee.Ms. Brannen perkmed quite pleased when Harvey telephoned her at home that same evening. She said she would be delighted to meet him at the king the next morning to berate about the position more(prenominal) fully. Cathy Brannen was obviously very enthusiastic about the craft as outlined in the morning. She asked all the right questions, responded quickly and eloquently to every query posed to her, and seemed ready to accept the position even before the quip was extended. When Harvey finally got around to mentioning the salary, thither was a sharp change in Cathys eager expression.She stiffened. Since Harvey realized that salary powerfulness be a problem, he decided to offer Cathy an incentive of sorts in rundown to the $30 000 annual salary. He told her that he realized his salary offer was lower than the kernel she has earned on her last job. And he told her he understood that a definite disadvantage of working for a new firm was the complete absence of financial security. Although he was exceedingly reluctant to guarantee a larger salary because of his own misgiving regarding the future, he offered her a sales override in the amount of two percent of sales.He explained that she would largely determine the success or stroke of the firm. She pick uped to represent the firm in the finest possible manner to voltage customers who telephoned and to those who walked in the front door. For this reason, the sales override seemed to be an appropriate addition to her straight salary. It would provide her with incentive to take an active interest in the firm. Cathy accepted the offer immediately. Even though she was transporting a salary offer of $32 500, she hoped the sales override might make up the difference. Who knows, she thought, two percent of sales may amount to big silver someday. It did not, ho wever, seem very likely at the clip. Troupville Business Systems began as a very small distributer of copy machines. The original business plan was just to sell copy machines and provide routine, on-the-spot(prenominal) service. More extensive on-site service and repairs requiring that a machine be re die hardd from a customers premises were to be provided by a regional distributor located in a major city approximately light speed miles from Troupville.Troupville Business Systems did well from the start. some(prenominal)(prenominal) important changes were make in the services the firm offered during the first year. Harvey soon found that there was a great demand for the leasing of copy machines, particularly the large expensive models that he originally planned to sell. He also soon discovered that his customers wanted to be able to contract directly with his firm for all their service needs. provided guaranteeing that he could get the machines serviced was not sufficient in the eyes of potentiality customers.In proveing to accommodate the market, he developed a complete service facility and began to offer leasing options on all models. These changes in the business all occurred during the first year. Growth during that year was steady, but not spectacular. While sales act to grow steadily the second year, it was early in the threesome year that Harvey made what turned out to be his outgo decision. He entered the computer business. Harvey had purchased a ad hominem computer soon aft(prenominal) Troupville Business Systems was founded.The machine and its capabilities fascinated him, although he knew virtually nothing about computers. He was soon a member of a local users club, was subscribing to all the magazines, and was victorious evening computer courses at the local university- in short, he became a computer buff. Harvey recognized the business potential of the rapidly growing personal computer market, but he did not mean that his original business was sufficiently stable to introduce a new convergence line just yet. During his third year of operations, he decided the while was right to enter the computer business.He added to his product line a issuing of personal computers popular with a small business in the area. This pick out decision caused a virtual explosion in the growth of his firm. Several key positions were added, including that of a comptroller. By the fourth year of operations, computers produced by several separate manufacturers had been added to Harveys product line, and he had developed the capability of providing complete service for all products carried. His computer enterprise was not limited to business customers, because he quickly developed a significant walk-in retail trade. Rapid growth continued unabated.During the first septenary years of the phoners existence, Cathy Brannen had proved truly indispensable. Her mental process exceeded Harveys highest expectations. Although her official position expected that of secretary/receptionist, she took it on herself to learn about each new product or service. During the early years, Harvey often thought that she did a better job than he did whenever a potential customer called in his absence. Even after he acquired a qualified sales staff, Harvey had no concerns when Cathy had to field questions from a potential customer because a regular salesperson was not available.The customer never realized that the professional young lady capably discussion all inquiries was only the receptionist. Cathy began performing fewer sales functions because of the increased publication of professional salespersons, but her secretarial duties had expanded tremendously. She was still Harveys secretary, and she continued to answer virtually every telephone call coming into the business. Since her office was in an open area, she still was the first to greet many visitors. Cathy took a word-processing course at a local business school in shor t after joining the firm.As she began working with Harveys first personal computer, she, too developed into a computer aficionado and became the best computer wheeler dealer in the firm. The Current Situation Harvey was shaken by the realization that Cathy Brannen had been paid over $127 000 last year. As he wondered what, if anything, should be through about her earnings, he began to reflect on the previous seven years. achiever had come almost overnight. It seemed as though Troupville Business Systems could do nothing wrong. The work force had grown at a rate of approximately 15 percent per year since the third year of operations.Seventeen people were now busy by the firm. While Harveys dad acknowledged that some of this success was due to being in the right place at the right time, he also had reason to be proud of the choices he had made. sequence had be that all his major decisions had been correct. He also could not overappraisal Cathys contribution to the success of the firm. Yes, certainly, one of the most important eld in the life of the firm was the day when Cathy responded to his ad in the newspaper. Success had brought with it the ever-increasing demands on his time.He had never worked so hard, but the rewards were certainly forthcoming. First, there was the new Jaguar, then the new home on Country parliamentary law Drive, the vacation home on the coast, the European tripsYes, success was wonderful. During these years Cathy, too, had prospered. Harvey had not thought much about it, but he did remember do a joking comment the first day she drove her new Mercedes to work. He also remembered commenting on her mink coat at the club banquet last December, Cathy had been dazzling. Now that Harvey realized what he was paying(a) Cathy, he was greatly disturbed.She was fashioning almost twice as much money as anyone else in the firm with the exception of himself. The best salesman had earned an amount in the low nineties last year. His top handle rs were paid salaries ranging from the high sixties to the mid-seventies. The average salary in the area for executive secretaries was no probably between $30 000 and $35 000 per year. A intelligent receptionist could be hired for under $28 000, and yet Cathy had been paid $127 614. 21 last year. The sales override had certainly enabled Cathy o share in the firms success. Yes, indeed. As Harvey thought more and more about the situation, he kept returning to the same conclusion. He felt something had to be done about her salary. It was just too far out of line with separate salaries in the firm. Although Harvey was drawing over $200 000 per year in salary and had built an equity in the business of more than $1 million, these facts did not seem relevant as he pondered what to do. It seemed likely that a number of other employees did know about Cathys wages level.Harvey wondered why no one ever mentioned it. Even the comptroller never mentioned Cathys compensation. This did seem qu ite odd to Harvey, as the comptroller, Frank Bain, knew that Harvey did not even attempt to keep up with the financial details. He relied on Frank to perplex important matters to his attention. With no idea of how to turn up this problem, Harvey decided to begin by making a list of alternatives. He got out a military man of paper and, as he stared at the blank lines, overheard Cathys gay exchange with a customer in the next room.The Well Paid ReceptionistAnalysis of The Well Paid Receptionist Harvey Finley is in quite the predicament. He his familys net profit should be approximately $107, 614. 21 greater than he expected for this year. The problem is that his secretary/receptionist is making six to seven times the amount of an average good secretary/receptionist in the local market and has been for a few years. Theres a few ways this issue can be intercommunicate. One way would be to talk to Ms.Brannen and advice her that there has been an oversight in her salary over the ol d few years and for the upcoming year the oversight testament be corrected and her salary depart be adjusted to $25,000 per year with no percent of sales bonus. another(prenominal) way to address the issue is to go off the manager who should have reported this oversight to Finley and promote Ms Brannen to his position while adjusting her salary to $55,000 per year and explaining the oversight to her as well. One more solution to this issue would be to let things be the way they are since the union has been doing great and growing the way things currently are.The two most important value drivers to consider in establishing the Value Over time maximization are individual employee values and owner values. lets start identifying the specific aspects of the first value driver, the individual employee values. The facts remain that the reason Finley hired Ms. Brannen was mainly based on her individual values and performance at her two previous jobs. She held a two year office administ ration degree, she was very articulate, bright and most of all she was enthusiastic about assisting in launching this start-up company with Finley.She also had two super electropositive feed coverts from her previous employers that said they would rehire her in a minute if she were still available. The problems lie with her not being satisfied with the initial salary offer for this position. Salary was the only issue with Ms. Brannen other than that she was perfect for this new position at Troupville Business Systems. A few potential problems with Ms. Brannen would be that she only moved from Houston was because she was going through a divorce. What would happen if she were to get back together with her husband? Another potential problem ith her would be the fact that she has a small child. If the child is sick then she go forth not be able to come into work. This would be an issue since at the moment she would be the only other employee. Also Ms. Brannen has two very good refer ences and if she accepts this position and continues to look for another position elsewhere that may pay better and she can potentially leave Troupville Business Systems. The potential positive preserves on Value Over Time for Ms. Brannen is that she allow continue to shine and prosper as a great striving employee the company go out grow.She is the front line and the first person the customer sees or speaks to when they make the first contact to Troupville Business Systems. She has already proven herself since the launch of this company as being a key actor in the success of this start-up company. A few potential disallow impacts mayhap that Ms. Brannen gets comfortable at the salary she is at and realizes that in her hiring package the wrong and agreement were that she was to receive $14,000 salary plus 2% of sales. There was no clause to when this would be removed and she can just put herself on cruise control and still make six figures.I expect her effect to be a positive one over time since this is the person Ms. Brannen is. You can tell a lot by looking for at a persons past performance level and we know she is a person who not only strives to be the best at her job position but also picks up on other job position duties and can perform them just as well if not better than others. We know she is able to handle sales calls if no sales person is available and the client/customer has never noticed. There are ways to turn something oppose into something neutral or even better into a positive effect.In the event that Ms. Brannen was offered a better paying position with another firm, Finley would be able to appreciate her for the time that she was working for him to see if she is worth the difference in salary. He would have also had time to make some sales and see how the potential sales market is doing and instead of offering her 2% in sales which obviously we now know was a bad strategy, can offer her more upfront in salary. A person that likes t he job they are doing will not leave for one or two thousand dollars more.So Finley can be true to her and make a counter offer in hopes that she would accept and stay. As for the other negative aspect of her getting back together with her husband in Houston and move back there, Finley would either have to offer her a significant more salary or find her husband a position at Troupville Business Systems. The other important value driver to consider in establishing the Value Over Time maximization is owner values. As the owner Finleys main concern is to keep his business running. Another concern is to make more and more profit each year.Owners need to worry about reputation risk as well and the well being of each of their employees. Some problems Finley is facing with his company, Troupville Business Systems, is that he is paying his secretary more than double what his highest paid manager is making. The problem Finley is facing is not knowing what should be done about this or how to approach the issue. The potential problems that may arise if the current situation is not addressed is that it will cause an up roar with the manager & salesman to find out that a secretary/receptionist is making much more than they are.Managers as well as other employees not knowing her hiring benefits will demand a raise. Another potential problem is that rumors will most likely be started that they are having relations and thats why a secretary is making six figures. A potential positive impact would be that other employees will see that being a hard worker and gummy through the highs and lows of a business really pays off. This may motivate all other employees to be outstanding or above average performers. The employees have witnessed the value over time with Ms.Brannen and have seen the long-term effects on her salary. A negative impact would be that employees who have already been at Troupville Business Systems and have not seen the value over time in the bonus or benefits w ill demand a raise or quit. Salary is always a delicate situation to deal with and this is why it is not considered acceptable talk in the office. Another negative impact is over time if the company grows and does not have an increase in sales then Ms. Brannen will still be making more than Finley since he has more overhead to pay for.There are travel that can be taken to negate a potential negative effect. First of all no one should be discussing compensation at all inside or outside the office. Second in contingency it does get out then there should be a one on one sit down with each employee to discuss their performance, not Ms. Brannens. Finley does not need to justify his actions to his employees he only needs to conduct them fairly. Now lets evaluate the case where the companys expense gets higher and the sales stay the same and Ms.Brannen is making more than Finley. In this case Finley will have to renegotiate Ms. Brannens contract to reflect expenses as well if he does no t decided to give her a base salary and no bonus that is. I believe the interactive effect these value drivers will have over time will be positive. During the maturity of Troupville Business Systems we can seen that Finley is a in(predicate) leader and Ms. Brannen is an outstanding employee who goes above and beyond her expected duties. These two make a good successful team.Over the years you can see that she has proven herself and should be promoted to a higher ranked position. She deserves the 2% sales bonus because she was with this company from the start and has stuck through the toughest times thus far. The best alternative solution for both effects would be for both Finley and Ms. Brannen sit down and review her contract, salary and bonus and come to an agreement on a fair salary and a possible promotion since she and proven her loyalty and performance to Troupville Business Systems. Im sure Ms. Brannen realized that this day would come.And as long as the compensation is fai r she will not leave since she is so invested in the company. In conclusion I would consider the best course of action would be to offer Ms. Brannen a managerial position within Troupville Business Systems. This will make her capable to get a respectable and long overdue promotion as well as a fair competitive salary of $60,000 a year with no percent bonus in sales. And if she is more propel by a percent in sales then offer her $50,000 plus 1% of sales with a minimum of $5,000 annual or $20,000 maximum cap.This is fair for both value drivers for Finley as the owner and Ms. Brannen as the Individual employee. If I were Finley the first step would be for me to evaluate her performance and hard work since the start of Troupville Business Systems. I would bring her into my office and have a one on one with her. I would start off by saying how much off an asset she is to the company and how much appreciate her hard work is and has paid off in the success of the company. Then I would pr oceed by offering her a managerial position within the company.I would advise her that she will need to be trained for managerial duties and will be on an valuation period as a manager for 3 months. Depending on the decisions made by her and how well she can manage a team she will be offered the permanent position. After she is given the formal offer she will have to decide whether she prefers being a secretary/receptionist or taking on new exciting role as a manager with Troupville Business Systems. Now the difficult part, this is where Finley should bring up the current compensation and offer Ms.Brannen a new compensation package. Advise her that the old compensation will be reduced to an above average rate for a secretary/receptionist and that this new opportunity will be a much better move for her career path. He will need to talk her up a bit like saying that she is management somatic and how good this is for her career path. Most likely she has been expecting this day to com e and will choose to be a manger rather than go with a different company as a secretary. Its a win/win move on parts of both parties.