Homework answers / question archive / Business 270 Managerial Discipline of Employees 1

Business 270 Managerial Discipline of Employees 1

Writing

Share With

Business 270 Managerial Discipline of Employees 1. Article: A Quick Guide to Employee discipline- What Every Manager Should Know https://wheniwork.com/blog/employee-discipline/ Case Study: Using Ex-Cons to Teach Business Ethics Using Ex-Cons to Teach Business Ethics After the Enron scandal of 2001 and the WorldCom, Tyco, and Adelphia debacles that followed a couple of years later, the business ethics industry really started to take off. Business ethics consulting and training became a booming field of expertise and those business schools that had not yet started teaching business ethics quickly created new courses to take advantage of the newly energized topic. Business schools that had ethics courses already in their curricula ramped up the number of offerings per year and started looking for innovative and interesting ways to attract students to the courses. The early wave of ethics scandals brought about two major events that became driving forces in corporate and educational change. First, the Sarbanes–Oxley Act was passed by Congress in 2002. SOX elevated the interest in and incentives for stronger financial controls and compliance, and this led to related initiatives in the realm of business ethics. Second, the Federal Sentencing Guidelines were revised in 2004. The U.S. Sentencing Commission revised its guidelines and created a new ruling that rewarded companies for developing ethics programs and offering ethics training. The Commission passed a ruling that among the different factors to be taken into consideration when a company was accused of wrongdoing was whether or not company management had provided ethics training for its employees. If the company had not offered ethics training as part of an ethics program, the company could be more severely disciplined than if it had offered its employees such training. On both the business school and corporate fronts, as a result, the demand for ethics training and education quickly grew in importance. In partial response to this new demand, a new category of ethics education arrived on the scene—the use of excons to teach business ethics via presentations in business schools and companies. Walt Pavlo: An Early Case Study Walter A. Pavlo, Jr., had achieved many things by the time he was 40 years old. He had graduated from business school with a master’s degree, worked as a manager at MCI, devised a $6 million money laundering scheme, and served two years in federal prison. Along the way he became divorced and unemployed, and had to move back in with his parents. As Business-Week reported, it was “a story that should scare any MBA straight.” Walt Pavlo, the convicted white collar criminal, has been called by ABC News the “Visiting Fellow of Fraud” for his appearances on many campuses. At an appearance for a business school lecture, Pavlo claimed he was once a God-fearing student who played hard and straight. He told ABC’s Nightline that he was taught the catechism and Ten Commandments as a child and was taught not to steal, cheat, or curse. He was taught to be honest and truthful in all that he did. Upon completion of his MBA, he got a position at MCI, the communications giant, and started working in the collections department. He became very competitive and began fretting that the next guy might be outperforming him, so he ratcheted up his efforts. Pavlo eventually became a senior manager at MCI. He was responsible for the billing and collection of almost $1 billion in monthly revenue for MCI’s carrier finance division. He had a meritorious employment history. In March 1996, Pavlo, a member of his staff, and an outside business associate began to carry out a fraud involving several of MCI’s customers. When completed, the scheme had involved seven customers who were defrauded of $6 million over a six-month period. The money was stashed away in a Grand Cayman bank account. In explaining his going astray, Pavlo detailed how much pressure he had been under and how he was having a difficult time meeting the targets and goals that had been set for him. He told a colleague about his struggle, and the colleague said that “everybody was cheating” because “that’s the way you make it.” This became a pivotal moment in Pavlo’s life, he reported, and that started him down the path to white collar crime. After stealing the $6 million, he began to live according to his newfound means—an expensive new car, hand-tailored Italian suits, and frequent holidays often to the Cayman Islands. Six months into the fraud, auditors at MCI realized what he was doing and he was forced to resign. He thought the company would just write off the loss as bad debt to avoid adverse publicity, but his prayers were not answered. MCI brought in the FBI. Knowing he could not withstand a trial, Pavlo made a full confession and was sentenced to three years and five months in prison. He was required to pay recompense from any subsequent earnings for the next 27 years. Pavlo served his time in prison, and after getting out, learned that his wife had filed for divorce. Penniless and homeless, he returned home to live with his parents but found no success in looking for work. Pavlo’s Second Career At the end of one of his unsuccessful job interviews, Pavlo was told he did not get the job but was asked whether he could return to the company and speak to the employees about white collar crime. This was the beginning of his second career. Over the next couple of years, he spoke to the FBI, some of the nation’s top accounting firms, professional societies, and numerous business schools. He is now a finance and ethics professor in the MBA program at Ithaca College and a contributor to Forbes Magazine. He is described as a “poster boy for white collar crime.” Pavlo was asked by ABC’s Nightline: “You are a convicted felon and an accomplished liar. Why should anybody listen to you?” Pavlo responded: Before I was a criminal or committed a criminal act, I was someone. I was someone who was on the fast track and did a lot of things right in my life. I’ve paid a significant price for what I’ve done, and I tell people that, and I educate people with a cautionary tale about what’s going on out there. I’m trying to make a difference, and it’s a chance for me to move on with my life and I feel good about my career, for once. For once in my life, I enjoy my work. The Pros & the Cons The Pros & The Cons, a Web-based company offering up an array of speakers on the subjects of white collar crime, fraud, and business ethics, demonstrates how the use of ex-cons in teaching business ethics has become a profitable enterprise. In addition to Walt Pavlo, the company features several other speakers whose expertise grew out of their having spent time behind bars. Scott London was a big-4 regional audit partner who was arrested for insider trading. Chuck Gallagher embezzled his clients’ trust funds, served time in prison, and is now on the lecture circuit. Mark Morze committed an infamous fraud when he bilked banks and investors of $100 million before getting caught and serving time. Nick Wallace served six years in federal prison for bankrupting 69 savings and loan associations. Now, each of these speakers is ready and willing, for a price, to come to your business school or place of employment and share with you the secrets they learned “from behind bars.” These speakers earn thousands of dollars per talk to speak to groups. Some convicted business people have gone out on their own and written books about their experiences and also lecture to business schools, companies and government. Perhaps most famous is the story of Frank William Abagnale, who wrote over $2.5 million in fraudulent checks and successfully posed as an airline pilot, doctor, lawyer, and college professor. His story was made into a film, “Catch Me If You Can,” directed by Steven Spielberg and starring Leonardo DiCaprio in his character. He now runs a successful fraud consulting company. Aaron Beam, one of the cofounders and first Chief Financial Officers of HealthSouth, one of America’s most successful health-care companies, is another prime example. Beam tells the story of his role in helping to perpetrate one of the biggest frauds in history. After prison time, Beam gives talks on business ethics and how to prevent corporate fraud, but also has to operate a one-man lawn care business to make a living. Beam thinks there are still those who think he is still wealthy, but he denies it. He observes “Trust me—if you can—I would not be mowing lawns in the South Alabama summer heat if it was not necessary.” Opponents to Using Ex-Cons Not everyone is satisfied with the idea of using ex-cons to speak to business students. Business ethicist, Professor John C. Knapp has said, “I’m disturbed that so many professors seem to be willing to invite Pavlo and other convicted felons into the classroom without verifying that their stories are true. Paying the ex-cons is rewarding them for committing a crime.” A reader of BusinessWeek chimed in: “Too bad they don’t pay $2,500 to honest people who never embezzled a penny to tell students that they shouldn’t be crooks.” Similar outrage has taken place when ex-Enron offender Andy Fastow is invited to speak at different venues. Fastow spent six years in prison for securities fraud. At a recent engagement where he was speaking on the topic of Jewish Ethics, the rabbi who introduced Fastow mentioned that she had received numerous complaints for including Fastow in the program. In defending the invitation, she noted, “The wisest person learns from somebody else.” Questions for Discussion 1. What are the ethical issues in this case? 2. What are the advantages and disadvantages of hiring ex-cons to speak to college students on the subject of business ethics? Is it appropriate for colleges and universities to pay felons to be guest speakers? 3. What do you think you could learn from an ex-con speaking on business ethics? 4. Successful business executives who speak to students on the subject of business ethics typically do not get paid. They do this as a service. Is it wrong to pay ex-cons to speak on their illicit motives and activities? Chapter : Cases Case 6: Using Ex-Cons to Teach Business Ethics Book Title: Business & Society: Ethics, Sustainability, and Stakeholder Management Printed By: Shawna Freeman (sfreeman@highline.edu) © 2018 Cengage Learning, Cengage Learning © 2021 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means - graphic, electronic, or mechanical, or in any other manner without the written permission of the copyright holder. BUSN 270: DISCIPLINE MODEL Write up the following steps of the discipline model on the blank Discipline Model Worksheet included in this assignment. This is a different discipline situation than "too any files out" but it provides good examples of things you can say when completing the blank worksheet. Feel free to use any of the ideas here, modified to fit the file situation, when completing your worksheet. Step 1: Refer to past feedback. Begin the interview by refreshing the employee's memory. You have talked to employee about this before... Be specific about the actions " I noticed you had 5 file on your desk yesterday..." Prior Coaching Example Statement (different situation) - "Two days ago when we talked you told me that you would use your legs, rather than your back, to lift boxes. Why are you still using your back?" Rule violation-"Why are you breaking the safety rule and using your back, rather than your legs, to lift the box?" Step 2: Ask why the undesired behavior was used. Giving the employee a chance to explain the behavior is part of getting all the necessary facts before you discipline. If you used prior coaching and the employee committed to changing the behavior, ask why the behavior did not change. If the behavior had changed, discipline would not be needed. Again, be sure to describe specific critical incidents to support your contention that behavior has not changed at all or has not changed enough to be at standard. Explain the problems caused by having too many files on your desk at one time. Step 3: Give the discipline. Assume there is no good reason for the undesirable behavior & give the discipline. The discipline in this case will be a "verbal warning". For example: Prior coaching - "Because you have not changed your behavior, I'm giving you a "verbal warning." ACTION: Show employee the Written Warning Form and make it clear that future violations of the file rule will result in a written warning being put in the employee's personnel file (a very serious action) Step 4: Get a commitment to change and develop a plan. Example: "I need to hear from you now that you will do your best to work with only one file at a time on your desk going forward. Can you agree to that?" Tell the employee that you will be taking special care to notice the number of files he/she has on their desk at one time. Advise the worker that you will be checking in with them a couple of times a week to see how things are going. Step 5: Summarize what has just happened and what you have told the employee at this discipline session and make it clear that you believe the employee can successfully follow the office file use rules in the future, but that you will be watching and the next violation will result in a written warning followed by suspension and dismissal if the problem continues. End DISCIPLINE MODEL WORKSHEET Name: BUSN 270 Complete the following worksheet using ideas from the instruction sheet as well as your own ideas. The Role Play: Find a family member, significant other or your pet and practice disciplining them for having too many files out at a time, using this completed discipline worksheet as a guide. If you can't find a volunteer or a pet, just use your imaginary friend and discipline him/her. When finished with discipline role play submit this completed worksheet in Canvas Step 1: Refer to past feedback. Begin the interview by refreshing the employee's memory. Step 2: Ask why the undesired behavior was used. Give the employee a chance to explain. Step 3: Give the discipline. Assume there is no good reason for the undesirable behavior & give the discipline. The discipline in this case will be an "oral warning". Step 4: Get a commitment to change and develop a plan of action going forward. Step 5: Summarize what has just happened and what you have told the employee at this discipline session. End Read this article on discipline first (be patient, it may take a while to load) Managerial Discipline of Employees.docx No write-up is needed on this article, but it will help you complete the discipline role play. Next, click the following links to see our Discipline Role Play Assignment: The discipline situation, explaining why you need to discipline this employee, is presented in the following link: Situation Requiring Discipline.docx Click the following link to see instructions about how to complete the discipline worksheet. NOTE: these instructions refer to a different discipline situation but the instructions can be used for file folder violation discipline too. Discipline Model Instruction Sheet.docx Now use the following worksheet to write up your Discipline Model:Discipline Model Blank Worksheet.docx You must download this worksheet doc if you want to type on it. Now for the fun part, The Role Play: Find a family member, significant other or your pet and practice disciplining them for having too many files out at a time using your discipline worksheet as a guide. If you can't find a volunteer or a pet, just use your imaginary friend and discipline him/her. Then submit your completed discipline worksheet here in Canvas and tell me if you think this discipline model could be useful. Why/why not?