Case study: A Friendship Gone Sour

Tracey and Prisha are best friends and both work as school inspectors for the Department of Basic Education. They are entitled to a R500 allowance if they spend a day out in the field at one of the depots, provided they submit a receipt with their claim. They had an arrangement with a local shop owner, who would issue them with a R500 receipt, even though they spent less than that on food and beverages. They also get R25 back for every 1 litre of petrol that they drive out with their own cars which earns them a "profit". They know that nobody in the finance department verifies their claimed kilometres driven and always adds a few extra kilometres without raising suspicion. They continued this practice for three years.

Eventually Prisha was promoted and became Tracey's supervisor. When Tracey submitted her claims, Prisha told her that she could not accept her claims, as she knew she was not spending the full amount she was claiming and was also driving extra kilometres. Tracey was very upset and argued that Prisha had done exactly the same thing and therefore had to sign her claim form. Tracey felt that, because Prisha's new job made her office-bound and she could not claim extra money every week, she was jealous of her. Prisha still refused to sign Tracey's claims.

Tracey is furious and then threatens to tell Mrs Vermaak (her boss) about what they had been doing if Prisha did not sign her claims. Both of them would then face a disciplinary hearing, and Prisha could be demoted. Prisha does not know what to do!

QUESTION 1

1.1 Explain the ethical problems involved in this situation in your own words.

QUESTION 2 [35 MARKS]

2.1 Tracey and Prisha ask a friend of theirs who studies law to help them settle their dispute. Cadence acts as the negotiator between the two friends. Let us assume you

are Cadence in this question. Explain the types of conflict that exist.

2.2 Explain the three possible outcomes of conflict strategies and indicate what you foresee as the outcome of this ethical dilemma. Justify your answer.

2.3 Discuss the negotiating skills that would help Tracey and Prisha to get to an amicable solution.

QUESTION 3

Prisha was recently appointed to her position as supervisor. When she was appointed many of the staff were unhappy with the change as they felt that Prisha got her position not because she was excellent at her job, but only because she was the boss's favourite staff member as they had worked together before at another organisation.

Explain to Mrs Vermaak why people resist change (as in the case of Prisha's appointment) and discuss how she could ensure that the staff accept change (overcome resistance to change). This question will require additional research.