1.Case 1---Scenario: KlipperKuik, Inc. KlipperKuik, Inc.

sells sail boats to upper crust clients who live in the Chesapeake Bay area, particularly, Annapolis, Maryland. The company has been in existence only a short time, but sales are up and business is booming. Sara Tonin, the CEO, got the company off to a good start with her patented sail design. She discovered a way to make smaller sails which could catch more wind, even when there is no wind. She guarantees smooth sailing in any weather condition. This has made the boats very attractive to weekend sailors. Sara says, "Lets capitalize on this while the gettings good." As she puts it, "get'em in, sell'em, and clip'em quick before they get away." However, her husband Jibb, who she assigned to supervise the sales staff, has had problems getting his salespersons motivated to do their job. Some seem to want no supervision while others want to know exactly what it is they are supposed to do. A couple of them insist on being managers themselves. Jibb is confused about how to organize and lead the staff. Should he develop teams, supervise them individually, or just leave them alone? Since Jibb's only work experience was as a weekend life-guard before he met Sara, he is floundering, as he puts it, "rudderless in a turbulent sea." He wants you, an expert HR specialist consultant, to help steer him back on course. Therefore, he has contracted you at $1000 a day, to develop a Problem solving plan for KlipperKuik, Inc. The contract specifies that you will: 1.Decide on what decisions to implement. 2.Develop a plan to train managers if necessary (this means an extended contract for you) 3.Use sound reasoning to justify why your plan will work for his company 4.Have it in "ship shape" and ready to sail by the agreed upon deadline. 5.Make sure it will fly with Sara since she's the Captain of this ship 2.The Case of the Mangled Data Sagar, program manager in the County Executive's Office, listened intently as a member of the County Board of Supervisors responded to a question from the public during the hearings on the county budget. The data quoted by the board member was accurate but was being completely misrepresented. The data, which was being quoted to demonstrate that the county had gotten costs under control in one specific area, was incomplete. Sagar knew that the complete data, which had also been given to the full board, indicated costs had actually risen.

What was his responsibility, Sagar wondered, to correct the answer being given by the board member to the public? Sagar was not sure whether the misrepresentation by the board member was accidental or deliberate. Sagar knew the supervisor had promised the year before to get costs under control and now was under pressure to show progress.

1. Should Sagar speak up publicly in the meeting?

2. Should he pass a note to the board member suggesting that he correct the
impression he had given? 3. Should Sagar give the correct numbers to another supervisor? To a reporter after the session? 4. What was his responsibility, as a county employee, to make sure the public got the correct information?

3.Case Study: The Magical $100,000 On a weekday morning in 1975, there was an anonymous phone call to a cash teller at one of the nation's largest national banks. The anonymous caller stated that an employee had just stolen $$100,000 from an electronics supply subsidiary of the bank. The Financial VP of the bank was notified; he called in one of the internal auditors and assigned him to solve the case. The auditor, working in conjunction with a retired FBI agent, employed a secretary and immediately set up an office at the electronics supply plant. An analysis of the accounting records showed that the theft involved inventory. The first step was to interview many of the 100 employees of the plant including all plant officers. None of the employees knew anything about the inventory. Second, an analysis of the Accounts Receivable records showed that a major building construction firm only owed $9.54, though its supply trucks were always picking up large amounts of electronic inventory. He immediately became unavailable for questioning! Several days later the auditor was contacted by an attorney representing the building construction firm for an appointment for his client and himself. When the auditor arrived, the attorney stated, "I want you to know that my client has done absolutely nothing wrong! But here is some information you might like to know." The attorney then explained how the 30-year-old son of the president of the electronics supply plant would sell inventory at one-half price if the construction firm made out the checks to the son personally. They had, in effect, purchased $200,000 of inventory for only $100,000. This information of the theft was immediately supplied to the Financial VP and the bank's attorneys. Within 48 hours, the president of the electronics supply plant retired. His son had fled the state and $100,000 in cash was returned to the bank. Questions: 1. Did the employees know of the lost inventory? 2. If they did, why didn't they tell more? 3. Were the president of the construction firm and his employees honest? 4. Had they done anything wrong? 5. Could they be sued? 6. Why did the father retire?

7. What was his responsibility? 8. Should the bank's corporate officers go to the police?