Dilemma at Devil’s Den

A Case Study

Misti Walker

Dilemma at Devil’s Den

A Case Study

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The managers at Devil’s Den seem unaware there is a problem with theft. In doing so,
they take the unconcerned or nonissue approach in regards to unethical conduct. While
managers do some damage control, most of the time they look the other way. Susan is
having a dilemma because she is a moral, ethical person who feels uncomfortable with
the current “anything goes” work environment. While she did mention some of the
problems with theft to one of her student managers, Mack, she feels that he
halfheartedly yielded her complaints. Mack is taking the damage control approach to
managing ethics by keeping the storage locked more often without ever confronting any
employees. Bill, on the other hand, would stare down employees to signal his
disapproval when items weren’t rung up. He too, though, chose not to confront
employees in such circumstances. Although these occurrences continually upset
Susan, she does not want to press the issue for fear of retaliation and possible job loss.
Most of the student managers fall into the immoral manager category. These managers
are out for what they can get. The day manager is unintentionally amoral, simply
getting the job done. For, it is easier to ignore the unsavory happenings than to fire
offenders and have to search for their replacements. The flagrant misconduct,
however, also has long-term effects on the business.

Aside from the monetary losses, brazen theft is also affecting employees - causing high
turnover, lost productivity, and difficulty retaining talent. The corporate culture at the
Devil’s Den seems to condone unethical behavior. However, CFS, the private company
that manages this and other college snack bars faces a larger threat. Poor performance
in one location can damage the reputation of the company and impact the bottom line.

First, the company must recruit and retain quality employees. Engaged, happy
employees offer a competitive advantage and can lead to improved efficiencies and
higher profits. Aside from the unsavory aspects of the work environment, management
is also having trouble retaining quality employees due to the following reasons:
• Inadequate training
• High turnover
• Low wages
• Decreased morale
• Nonexistent controls
• Shady corporate culture
• Inconsistent punishment
• Lack of written policies and procedures

Many of the issues facing the snack bar are a result of less than exemplary working
conditions. The day manager at CFS cannot afford to be picky when hiring staff for
these low-paying, odd-hour jobs. Investing in a solid management team and, in turn a
strong workforce will offset many of the intangible costs the company is now
experiencing. To realize these benefits, CFS must not only pay a decent wage but also
continue to invest in the growth of its employees. For example, a student should
undergo thorough training before becoming a manager. In addition, the company
should provide written policies and procedures to incoming managers in order to avoid
confusion and to aid in the cohesiveness of the work unit. Managers should display

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ethical behavior at all times and use punishment and rewards more consistently and
effectively.

If she wants to remain at the Den and one day become a student manager, Susan must
continue to seek a solution to the problem. Since Susan has already spoken to Mack
about her concerns, to no avail, it is now time for Susan to have a discussion with the
day manager. Susan is a finance major, and as such could produce a cost/benefits
analysis of retaining talented, dedicated, and ethical employees as opposed to the
current way of doing business.