Case 11.3 Executive Compensation

On the same day in March that a large manufacturer warned that the sequester could lead to thousands of employee furloughs and layoffs, the nations largest federal contractor disclosed that it had just boosted the compensation of its former CEO by more than $2 million, according to Securities and Exchange Commission (SEC) forms. You work in the organizations human resources department and will be designated as the person people may contact if they have questions. Since the release of the CEOs compensation was made, your voice mail and e-mail boxes have been filled by disgruntled employees wanting explanations. You share some of their same concerns, but are conflicted with the role that you have been asked to play in the organization.

Directions

Read Case 11.3 "Executive Compensation" . After reading, answer the following questions:

1. Explain how you would respond to your colleagues and management.
2. Using the materials you learned in this chapter, explain the methods you would use in trying to deal with the conflict.
3. Discuss ways to prevent and reduce this type of conflict from occuring.