Fred Maiorino Case Study Essay

2718 Words Feb 25th, 2015 11 Pages
Fred Maiorino began his career at Schering-Plough in 1958 at the age of 28. He had been a successful sales representative till Jim Reed took over the position of General Sales Manager for South Jersey sales district in 1987. In 1988, Fred received his lowest ever performance evaluation of “Good” which was lower than any other sales representatives’ in the district. In fact, Fred’s salary increase at the end of the quarter was less than half of the average of other sales representatives who were at least 20 years younger to him.
When Reed first came to New Jersey sales district, he turned to Fred for help and leadership. He implemented a new performance evaluation measuring system which rated salesmen according to two different
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Moreover, in Fred’s eyes, Schering-Plough has breached the psychological contract with Fred. Fred had dedicated over 35 years of him life to the company only to find out it had made plans to make him retire early. Furthermore, Fred began to lose his faith in Schering-Plough when he realized that younger salespersons were being hired to replace long-term hard-working employees like him. In addition, Reed referred Fred’s decision to decline the early retirement plan as a foolish act. According to Zagenczyk, Gibney, Kiewitz, and Restubog (2009), supervisors’ supportiveness/discouragement strengthens/weakens the relationship between employers and employees. A study that included 297 responses from 31 organizations confirmed a relationship between the existence of psychological contract and employee commitment. In fact, those with relational psychological contract exhibited more commitment to the workplace than those with transactional contracts (Chiang, Liao, Klein & Jiang, 2012).
Violation of Procedural Justice Reed’s evaluation and spying on Fred resulted in the latter being suspended without pay for two days. This led to an increase in Fred’s feelings of injustice and violation. Additionally, Fred and Reed held different views of the measurement of Fred’s performance at work, flexibility, goal-setting and the purpose of coaching. In fact, Reed’s communication of matching market share goals and what was expected of

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