Case Study Write Up

Alin NIRAMORN baptistery Study Methods Lori Ostlund 09/019/2012 Case Write-Up Summary of Case Situation In the case, Raleigh & Rosse, Simons and Mahoney (2011) report that in the commencement ceremony of year 2010, R&R is organism sued by its sales associates. The Federal evenhandedly Labor Standards Act (FLSA) states that R&R has continued breaking the state impartiality by encouraging employee to work moody the clock. R&R is a U. S. luxury good retailer push by family member.The ac family mission is to deal out their costumers with outstanding service. R&R exchange associates are expected to serve their costumer off the floor as a part of self-command Culture. Linda Watkins, a CEO of R&R who was recruited by Brian Rosse, has admitted that at first Bill Schwartz, a Senior Vice President for human race Resource had been questioning in whatever aspects of the Ownership Culture and particularly gross sales Per Hours (SPH) program. He also suggests Linda to apply diametr ical approach instance.However, Rosse believes that Ownership Culture and SPH is the core of the association to success. Moreover, the economic overpowerturn in years 2008 and 2009 has affected to luxury goods industry. R&R were also impacted by the economic crisis the revenue continue dropped down rapidly. Central Issue How Raleigh & Rosse pick up to handle with sales associates who sued the familiarity. Recommended Course of action at law Linda should make a decision how to serve to the lawsuit by gifting dorsum damages to on the whole employees. Basis for RecommendationR&R should wad up an make sense for one-time earnings system because it can help the company safe money and it is fair for every(prenominal) employee. The case R&R (Simons and Mahoney, 2011) states that the employee who is the complainant in the lawsuit is asking the company to break digest twin pith of non selling hourly wages. The count public opinion the company to pay in keep down of $200 mi llion consequently, this measuring rod lead affect the company financial. Therefore, R&R should offer an heart for pay stake the claims, and make an agreement with all employees.For example, in the case of Nightmare at Nordstrom (Solmon, 1990), Nordstrom had set up ranged of amount for each claims and move out the claim sheet to all employees. The employee has to fill-in the detailed to verify the amount of non-selling hours they worked. As a result, Nordstrom paid slight than $3 millions for the claims. In other word, on that point is high possibility for R&R to lose $200 million for the judgments, so settlement for payment would be cheaper for the company.Moreover, an Ownership Culture program was introduced in 1992, which operator there were a current employee and the aged(prenominal) employee. Thus, retroactive compensation is considered as a big factor for the company. Indeed, the amount for pay back claims should be different among the old and new employee. For exa mple, according to Solmon (1990) states that Nordstrom has send out a letter to sales associates by offering to pay back the damage from $250 up to $1,000, depending on how bulky their worked for the company.To put that differently, it is fair for all employees, which is the current sales associates who is seeking for damage, and the old employee who should be paid for their royalties. In conclusion, the huge amount that R&R need to pay for the court it might affect the company financial statues. Thus, by offering the amount for pay back the claims would help the company safe the money. In additional, the ranged of amount that set up for pay back the current and claims is sightly for all employees.