HR : CASE STUDY

Managing Top Performer

Vitautas

Vitautas is the strongest performer of Lithuania small business team of a global company. He is both formal and informal leader of the Lithuania organization, and is well respected also by his colleagues in Baltics (Latvia and Estonia). He clearly knows his duties very well, is usually asked to help others and is looking for new challenges in his field of expertise.

Market is developing quite well and there is great demand for such managers on the market, and the staff is daily attacked by head-hunters who are looking for possible management candidates for other companies. Usually the salary offered is about 25-50% higher as the current one, as there is a common understanding on the market that the risk of leaving a company needs to be rewarded. Vitautas also has received an offer from competing company in Lithuania offering salary which is 25 % higher as he is getting now. The job offered will be a job like what he is doing now, so he will be relatively well-equipped for the new position.

Vitautas is not sure what to do and contacts his line manager, Kaspars. Line manager is from Latvia, so he is not quite up-to-date in Lithuania labor market. However, Kaspars is desperate to save the case. In a short meeting, knowing Vitautas overall career interests, he offers him international assignment in Marketing at the company office in Warsaw, which he has been longing for, based on the last career discussion with him. This will give not only a bigger salary (as Poland market is bigger and more competitive), but also address his career aspirations. Kaspars is not able to give detailed information yet, as Human Resources department in both countries need to prepare it (salary details, logistics, job description, new line manager etc.), so he fills in the gaps using his imagination and promises 25% salary increase upon move. He tells Vitautas that all will work out eventually, and there is nothing to worry about, and Vitautas can always come to him for encouragement if needed.

Vitautas is very excited about the move to Warsaw. He has never had working experience abroad and moving to a new with the same company is great opportunity. He confirms his willingness to move to Warsaw as soon as possible, although the details of the move are not clear yet, but he trusts his manager. He also finds buyer for his apartment in Vilnius, his girlfriend hands in termination notice at her job and they start making plans for their future in Poland.

Meanwhile, Human Resources team is working on the transfer details together with the management team in Warsaw. Soon it becomes clear that not everything will work out so smoothly. The new salary for Vitautas should be set according to Warsaw office compensation policy. The policy in Warsaw does not allow for making increases for more than 10%, so it is absolutely impossible to give the promised 25% increase on the spot.

The position in Marketing, which has been verbally promised to Vitautas by Kaspars, is still occupied by a lady who is pregnant and will go on maternity leave - 3 months from now. Until the position is available, Vitautas is welcome to come to Warsaw for handover and initial training on the new position (which is perfect from the business standpoint as there will be a long transition period). But for this period he will retain his Lithuanian salary, not the new one he has been promised. He will have to live in hotel in Warsaw, as due to the local law he is not allowed to rent apartment befo re he is employed by a Polish company. For this period, Company will pay his hotel expenses and daily allowance, but nothing more, also there will be no support for his girlfriend who has left her job to move to Warsaw together with Vitautas.

After 3 months, Vitautas will be given the Polish contract and max 10% increase, as well as Company will help him to find apartment and will cover 50% of the rent expenses for the next 2 years. Vitautas will have more exciting job in Marketing he was longing for, better business tools and boiling business environment to develop his skills and get on the fast track to successful career. The organization in Poland is huge, and the career opportunities, both horizontal and vertical, as well.

A meeting between Vitautas, Kaspars and Latvia HR Leader is organized, and Vitautas now hears the real details of the transfer. This is not what he was initially promised by Kaspars. He is obviously frustrated but says that he will think it over. In the evening, Vitautas calls the HR manager at home, saying that he has decided to leave the company.

Task: Please apply Situational Leadership theory at this case. 1) What is development level (D1-D4) of Vitautas? Please consider 2 tasks:

- His current job in Lithuania.

- Move to Warsaw.

2) What style leadership support (S1-S4) should be given to Vitautas to match his development level on these both tasks?

3) What kind of leadership style is Kaspars using?Is there any support at all?