HR Functions: Problems, Solutions and Reward System Remedies

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Hi,

Interesting assignment! Let's take a closer look at this case scenario through discussion and research from various sources.

RESPONSE:

1. For which among these human resource management functions does the behavior of Richard Painter present a problem? Why?

Labor relations and rewarding systems seem to be most presenting problems.

Painter manipulated incentive and reward plans aimed at personal gains versus organizational gains, which yielded undesired results for the organization. Not too surprisingly, staff morale and trust began to deteriorate quite rapidly, and turnover in the department became a problem.

For example, personnel problems resulted from Painter's mismanagement and manipulation e.g. systematic understaffing and overstatement of project dollar savings. For example, Painter manipulated the internal risk assessment process to avoid disclosing the appropriate level of internal audit staff, resulting in manipulation of the reward system for personal gain. It was as suspected by the auditors, the CAE (Painter's) goals in the job description were directly linked to incentive bonus payments and salary raises. Even worse, Painter's performance bonus was dependent upon only two performance metrics: the extent to which he could cut costs from the baseline audit budget and the annual dollar amounts that internal auditing saved the other business units within the organization. Linking personal incentive bonus payments and salary raises to manipulated job description goals was negatively related to meeting the organizational goals (e.g. understaffed, over-worked, low morale, etc.). The executive who sacrifices the organization's reputation for personal gain lacks both, character and integrity, which in this case was Painter.

As mentioned in the article, staff manipulation in the form of pandering and "payoffs" can be a symptom of underlying dishonest activity. In these cases, the individuals who abuse their positions of power (Painter) might then buy acceptance by further manipulation of the rewards system. In this case, the person who seemed most unlikely to defraud ...