You are the software development manager for Cheese-soft, a midsize company. One of your employees, Steve, works in a small co-ed group of 5 software developers. Because of the collaborative nature of software development and the need to work long and odd hours, the group spends a significant portion of their time working together. Steve regularly mentions how he is married, goes on and on about his kids, and would appear to be content with his home life. Steve makes it a habit of complementing his female teammates Stephanie and Sybil on their appearance. Stephanie generally ignores Steve and writes him off as just being old-fashioned and polite. Sybil has come to dread the daily compliments as they make her uncomfortable.

Does your department have a case of sexual harassment on their hands? If so, how would you characterize this harassment? What is the appropriate course of action for you to pursue and what policies should be put in place after the resolution of this issue?