Principles and Practice of Management

Case (20 Marks)

 

Bob Ford was a management trainee in a large casualty insurance company. He had been hired 18 months previously and was only now in the latter stages of the program. His present assignment was in one of the large branches the company had in an urban Centre. Most of his work involved experience analysis of the many large policyholders serviced by this branch. John Crane, the branch manager, had mentioned the possibility of a permanent assignment to the branch when the training period was completed. Bob reacted favorably since he admired Crane and they got along well. During a recent review, Crane told him that he was the best trainee assigned to the branch since Crane had been manager. Naturally, Bob was pleased with his compliment and looked forward to the promised permanent assignment. An opening developed at the branch when one of the senior analysts was transferred to the company headquarters. Though Bob had not fully completed the training program, Crane offered him the position, thinking he was fully qualified for the opening. Bob accepted and was told by his boss that the formal request was going into the headquarters personnel department that day and that he should be ready to move into the job in two weeks when the incumbent’s transfer was to take place. Crane went to the company’s headquarters the next day for a meeting with his superior. In the course of the discussion, Crane was told about the company’s affirmative action plan, which they were required to file under fair employment practice legislation. Crane’s boss went on to say that the company had to promote more women to responsible positions, and since there was an opening in Crane’s branch they were going to promote a young woman in the management training program to fill the opening. This woman had only been with the company for 11 months and still had a considerable learning period to face. Crane was flabbergasted and told his

boss of the offer to Bob Ford and its acceptance. The boss refused to listen and said that adherence to the affirmative action plan was paramount since the company’s record was less than desirable in the area of equal employment opportunity. Crane asked what he was going to tell young Ford, and the boss replied, “Tell him not to worry; he’ll get the next opening”. “Why, all we are doing is practicing reverse discrimination and not paying much attention to qualifications either”, said Crane. “That’s about it”, the boss replied.

Answer the following question.

 

Q1. Should a company practice reverse discrimination to comply with civil rights legislation? Explain.

 

Q2. What can Mr. Crane tell Bob Ford?

 

Q3. What should Ford do?

 

Q4. What are the moral arguments pros and cons for affirmative action programs to reverse discrimination?

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