When Suzanne Lebeau, human resources manager, received a call from Bert Wilkes, financial controller of Farley Glass Works, she expected to receive good news to share with the wage and bonus committee. She had already seen numbers to indicate that the year-end bonus plan, which was instituted by her committee in lieu of the traditional guaranteed rises of the past, was going to exceed expectations. It was a relief to her, because the plan, devised by a committee representing all levels of the workforce, had taken 11 months to complete. It had also been a boost to morale at a low point in the companys history. Workers at the glass shower production plant were bringing new effort and energy to their jobs, and Lebeau wanted to see them rewarded. She was shocked to see Wilkes face so grim when she arrived for her meeting. We have a serious problem, Suzanne, Wilkes said to open the meeting. We ran the numbers from our third quarter to project our end-of-year figures and discovered that the executive bonus objectives, which are based on net operating profit, would not be met if we paid out the employee bonuses first. The executive bonuses are a major source of their income. We cant ask them to do without their salary to ensure a bonus for the workers. Lebeau felt her temper rising. After all their hard work, she was not going to sit by and watch the employees be disappointed because the accounting department had not structured the employee bonus plan to work with the executive plan. She was afraid they would undo all the good that the bonus plan had done in motivating the plant workers. They had kept their end of the bargain, and the companys high profits were common knowledge in the plant. SOURCE: Samson, D., Donnet, T. & Daft, R. L. (2018). Management (6th Asia Pacific Ed.). South Melbourne, Vic: Cengage Learning Australia. P695. Based on Wallace, D. (JulyAugust 1993). Promises to Keep, What Would You Do? Business Ethics, II, 1112. Reprinted with permission from Business Ethics, Minneapolis, MN Case Questions:

Please answer these two questions. Please use relevant examples from this case in your responses to these questions where possible. Use approximately 300 words for each question. Please use appropriate theory to support your answers and use APA referencing to cite academic material used. The APA referencing is not included in the word count.

A1. Identify two (2) significant issues that Suzanne faces. Explain why these are issues. What would you recommend that Suzanne do to address these two (2) issues? (10 Marks)

A2. Referring to the management functions (ie. Planning, Organising, Leading and Controlling), in which management function(s) did the system fail? Please explain how that particular management function(s) you selected had resulted in the financial problem in Farley Glass Works. (10 Marks)