Managing employees and relationships at work, is a challenging task. A lot of theories/strategies were

developed by psychologists, managers, and other professionals to effectively manage relationships at

work. You know most of these theories, and that is why this time you will help the company apply these

concepts to real life situations. You will adhere to the concepts of organizational behaviour and apply

decision-making and problem-solving techniques in formulating business policy.

It has been a long day at HRI enterprises, and you are preparing to go home. However, suddenly one

of your team leaders knocks your office door and asks for an emergency meeting. You agreed to

meet her and discuss the problem. Katie, the team leader, cited a problem that is recurring

repeatedly, which is employee lateness. It happened again, she said, and our clients were forced

to sit down and wait for our employees to arrive to their workplace. You realized that this is a

frustrating experience to clients and it could affect the corporate image negatively. Therefore, you

thanked her, and told her next day you will solve this problem.

On the way home, you were thinking about the key points, which you will need to solve this problem,

and you wrote these down below:

Employees are paid minimum wages and are not motivated.

Many employees work two jobs, and they are burned out.

The economy is improving, and profits are increasing, so you might be able to negotiate a raise

for the front-line employees.

It is easy to replace the employees, but each new recruit will require a week of training.

Next day you sit down and decide to figure out a solution for this problem. You are aware that you

should follow certain techniques that you learned in organizational behavior to formulate a successful

business policy in this regard. Therefore, you decide doing the following:

Identify, and analyze the factors, which could influence your perception in this case.

List the steps in the Prospect Theory and apply these to the problem on hand.

Formulate a business policy, based on your analysis.