Reference no: EM132787018

Jay and Jay was a medium sized company manufacturing electronic components in Japan. It was the policy of the company to provide reserved parking spaces to the twenty executives closer to their offices. Wooden boards with the name and designation of these executive were placed in their respective places.

Quite often complaints were received by the personnel director from the executives that the employees were parking in their assigned spaces thinking that executives were away or on leave. The personnel director was tired of these complaints and sent a memo to all employees strictly warning them not to park in the executives' parking lots. Even weeks after the memo, some employees continued to park in the assigned parking spaces. There was no choice for the personnel director but to fine the offenders at the rate of ten dollars for the first offense, twenty for the second, and an increase of ten dollars for each subsequent offense.

The word got around and the employees were upset about the attitude of the management in imposing fines on some of their colleagues. They expressed their feelings in wide variety of ways ranging from punching holes on bulletin boards to absenting themselves form work.

The Personnel Director was summoned by the Managing director who wanted to know how much such a silly matter got to the point of destroying morale in the company and affecting productivity. The Managing Director wanted the situation to be brought under control.

Q1. Did the Personnel Director handle the situation well from the beginning?

Q2. In your opinion how should be the situation have been handled?

Q3. Recommend a plan of action to get the Personnel Director out of this problem?