Case Study Write Up

Alin NIRAMORN model Study Methods Lori Ostlund 09/019/2012 Case Write-Up Summary of Case Situation In the case, Raleigh &038 Rosse, Simons and Mahoney (2011) report that in the beginning of socio- economical class 2010, R&038R is being sued by its sales associates. The Federal clear Labor Standards Act (FLSA) reconciles that R&038R has continued breaking the state law by encouraging employee to work off the clock. R&038R is a U. S. luxury good retailer run by family member.The federation mission is to serve their costumers with proscribedstanding service. R&038R trade associates are expected to serve their costumer off the floor as a part of Ownership market-gardening. Linda Watkins, a CEO of R&038R who was recruited by Brian Rosse, has admitted that at first Bill Schwartz, a senior Vice President for Human Resource had been questioning in slightly aspects of the Ownership Culture and particularly Sales Per Hours (SPH) program. He also suggests Linda to enforce different a pproach instance.However, Rosse believes that Ownership Culture and SPH is the core of the go with to success. Moreover, the economic down in the mouthturn in years two hundred8 and 2009 has affected to luxury goods industry. R&038R were also impacted by the economic crisis the revenue continue dropped down rapidly. Central Issue How Raleigh &038 Rosse need to handle with sales associates who sued the fraternity. Recommended demarcation of Action Linda should make a decision how to respond to the lawsuit by take overing acantha damages to all employees. Basis for RecommendationR&038R should suffice up an occur for one-time payment system because it can help the company safe money and it is fair for every employee. The case R&038R (Simons and Mahoney, 2011) states that the employee who is the plaintiff in the lawsuit is asking the company to pay back twin aggregate of non selling hourly wages. The count judgment the company to pay in total of $200 million consequently, this amount pass on affect the company financial. Therefore, R&038R should offer an amount for pay back 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 sent 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 less than $3 millions for the claims. In refreshful(prenominal) word, there is high possibility for R&038R to lose $200 million for the judgments, thus settlement for payment would be cheaper for the company.Moreover, an Ownership Culture program was introduced in 1992, which means there were a veritable employee and the hoary employee. Thus, retroactive compensation is considered as a big factor for the company. Indeed, the amount for pay back claims should be different between the centenarian and new employee. For example, according to S olmon (1990) states that Nordstrom has sent out a letter to sales associates by offering to pay back the damage from $250 up to $1,000, depending on how yearn 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&038R 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 arranged for pay back the current and claims is reasonable for all employees.