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Paper Topic:

magrec inc

Magrec Incorporated

Summary of the Case

Magrec Incorporated manufactures tape heads . One of its customers is Partco . One day , Dinah , a secretary of the Sales Manager , discovered a memo showing that nine years ago , Magrec Incorporated fraudulently sold low-life heads to Partco instead of the ed long-life heads . The upper management took little note of the memo stating that there were no complaints received during that time . Overall , nobody was harmed by the low-life heads . Thus they told Dinah and the Sales Manager to let go of the issue


, Dinah refused to settle down . She called Partco herself and told them about the memo . Partco 's vice-president went over the matter The end result was that Partco took away 40 of its business with Magrec Incorporated and was able to get lower prices for s . Then a domino effect occurred causing all other customers to ask lowered prices too This caused Magrec Inc 's sales to go down and for Magrec Inc . incur great losses

Because of this devastating incident , the Sales Manager was told to fire Dinah for her conduct and also because her presence in the company damps on company morale . The Sales Manager , however , is morally burdened over firing Dinah because there is no valid ground for her termination Moreover , Dinah has accomplishments in the company and is a valuable asset and is a close friend

1 . Place yourself in the role of the manager . What should you do now After considering what happened , would you change any of your behaviors

I will fire Dinah . An objective perspective about things will show us that it was her act of disclosing the memo which caused the company its losses . She started a snowball which hit the company with so huge an impact that the closure of business became a real possibility . For her part , she may feel that she was just doing the right thing . However what she did was in direct violation of a superior 's . She was told to let go of the matter since nobody was harmed over the incident yet she persisted on making her moral stand ' about the matter . Her conduct shows a defiant frame of mind . It would do the company good to let her go . Her conduct also shows that she has no loyalty to the company . She weighed her loyalty against an antiquated memo with no bearing to anything and she found out that the memo was more weighty Her level of loyalty is so disheartening . It would do good the company if she would be let go . Moreover , her presence makes the company morale go down . Her co-workers are infuriated by her very presence . Nobody wants to work with her anymore . Morale is a dangerous thing . So is the lack of it . She should be fired

2 . Do you think Dinah was right ? Why or why not ? If you were she and you had it to do all over again , would you do anything differently ? If so...

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