50 Case Studies for Management and Supervisory Training

50 Case Studies for Management and Supervisory Training

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Case 37 (continued)

Case Discussion:

Bad News in Budgets

Summary

Nancy Johnson had been managing the Budget Department for First State Financial Services, Inc.

Because the work experienced gained here was so helpful, much of the budget analysis work

done in the department was performed by a group of management trainees. The trainees tended to

be recent college graduates who were ambitious; they expected the budget work experience to be

the pathway into the more prestigious Auditing Department.

Nancy managed under the assumption that by keeping her office door open, her employees

would bring any problems to her attention. As a result, she stayed in her office and seldom met

with the trainees. Instead, she would glance over the budget reports they submitted and return

them through her secretary without comment.

The reports often contained many errors, which the trainees would be expected to make but

which Nancy’s quick review did not catch. The department heads throughout First State who

received the erroneous reports would complain directly to the trainee who prepared it. Over time,

relations between the department heads and the trainees deteriorated.

The trainees, who worked the same office area, easily shared their frustrations about the work and

about Nancy. These “bitch sessions” became more common and openly contemptuous of Nancy.

Once these “bitch sessions” became a common practice, the situation became adversarial: us (the

trainees) vs. them (Nancy). And since she made no effort to hear from them, they made no effort to

speak. Likewise, dissatisfaction with Nancy’s department spread among department managers.

The pressures of poor budget work and disgruntled employees continued to build until

Nancy’s boss talked to her one day, demanding to know what had gone wrong. Nancy, shaken by

the news and unable to answer the questions, wondered what she should do now.

Answers to Case Questions

1. Describe how Nancy’s assumption about employee problems affected her management

practices.

Nancy’s assumption that employees, either subordinate or otherwise, will bring her informa-

tion allows her to operate passively. She does not seek out information, especially in regard to

what her employees are thinking or doing. She also assumes that written feedback is sufficient.

In general, these assumptions lead her to manage others in a hands-off and depersonalize

d

manner.

2. Nancy’s job required her to wear two hats: that of producer and that of trainer. Describe

her methods for managing both of these responsibilities.

She used the work of the trainees to meet the production goals of her department. While this

practice was condoned and understood by management, she did not have sufficient controls in

place for quality control over the production, nor did she undertake adequate training to

improve performance levels.