The Son-In-Law Jim Martin walked into his father’s office and threw his resignat

Question

The Son-In-Law

Jim Martin walked into his father’s office and threw his resignation on the desk. Age 34 and general manager of the retail division of his family’s furniture business, Jim had been with
the company for 10 years. Before that, he had worked in the banking industry for three years and had earned his MBA. In his early years at Martin’s Inc., he had been energetic, ambitious,
and effective. But now he is burned out. He thinks his future looks grim. He feels unrewarded and unacknowledged.

Eric, Jim’s brother-in-law, is sales manager of Jim’s division. Eric, a high-school graduate who has also been with Martin’s for 10 years, has an informal style. Highly sociable, he tends to
take long lunch hours and work 9 to 5, in contrast to Jim’s 12-hour days. Although sales have remained steady, Jim resents Eric’s abbreviated hours and easygoing ways.
The fact that his father, CEO Ed Martin, will not make it clear who is to succeed him also gnaws at Jim.

Ed has adopted a hands-off approach, hoping the successor will emerge or that Eric and Jim will work it out between them. To make matters worse, Ed has just announced he intends to divide the company stock equally—as his father had done before him—between his two children, Jim and daughter Sarah. Never invited into the business herself, Sarah pushed for her husband, Eric, to be involved. According to Ed’s plan, Eric and Jim will continue to receive identical compensation packages.

Jim just cannot accept the idea that his hard work and better education will not be rewarded with what he considers appropriate remuneration and ownership.

Question 1: What specific actions should Ed take regarding Jim’s resignation?
Provide support via course material and external sources. (Note: You may have more than three actions.)

Ed Action #1 (Put the name of the first action Ed should take here)
• Put your reasoning for Action #1 with justification/support here
• Use more bullets if you have additional justification/support
Ed Action #2 (Put the name of the second action Ed should take here)
• Put your reasoning for Action #2 with justification/support here
• Use more bullets if you have additional justification/support
Ed Action #3 (Put the name of the third action Ed should take here)
• Put your reasoning for Action #3 with justification/support here
• Use more bullets if you have additional justification/support

Question #2: Is Jim being treated fairly? Provide multiple reasons for your response.
Provide support via course material and external sources. (Note: You may have more than three reasons.)

Reason #1 (Put the name of the first reason here)
• Put your reasoning for Reason #1 with justification/support here
• Use more bullets if you have additional justification/support
Reason #2 (Put the name of the second reason here)
• Put your reasoning for Reason #2 with justification/support here
• Use more bullets if you have additional justification/support
Reason #3 (Put the name of the third reason here)
• Put your reasoning for Reason #3 with justification/support here
• Use more bullets if you have additional justification/support

Explanation / Answer

We suggest that following actions can be taken by Ed on resignation of his son Jim

1. Ed should conduct a meeting to understand the various reasons that has let to the resignation

- This will help to understand the grievances that Jim must be having with his father and the company.

- Understanding the points of grievances will help to carve the future course of action to retain Jim

2. Ed should conduct a meeting with Eric to understand his plans for the future

- Though Eric might be more social and have informal style, can be a future CEO due to his inherent talent.

- Ed should try to understand whether he is willing to take this reasonability in the future.

3. Ed should make some rules regarding general discipline and code of conduct.

- Any company should have a basic code of conduct. Ed should made some rules regarding timings, working pattern, etc so that there are no grievances or conflicts in the future regarding these aspects.

Yes Jim is treated fairly

1. Ed wants to divide the shares of the company into two parts between his two children.

- Jim is getting 50% is completely Fair on the part of Ed as he is equally dividing the wealth between child.

- The criteria of Jim being more educated and son in law, Eric being less educated can't be a parameter to divide the wealth.

2. Jim and Ed are treated equally and Jim is not getting extra benefit of his education is fair

- Because the sales are steady.

- The company is to make sales and profit. Though Eric is having only high school degree, he is able to manage the sales. This is good enough for the company.

- The way how he is bringing the business is not important.

3. Jim's father Ed is the CEO of the company. He can choose Jim for CEO

- Ed has yet not made any decision regarding the future CEO.

- There are fair chances that he will select Jim over Eric for the CEO post, giving preference to his education.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.