Since Marco signed the checks, he basically approved Sharon’s pay. Do you agree? Why or why not?
What role did Marco and Sharon’s individual differences play in this situation?
the case:
Marco owns a small business that manufactures several auto accessories. In business
for about five years, Marco has managed to keep the company afloat, though he’s still
waiting to pay himself a salary, opting instead to reinvest the revenues into advertising
and new product development. (He is able to do this because his wife has a job that
pays enough to support them.)
Recently, Marco hired a woman—recommended highly by a colleague and the two
references Marco called—to be his office/sales manager. Initially, he was impressed
with Sharon’s skill set and go-getter attitude. She not only tended to the administrative
tasks that Marco preferred not to do, but she also spent time trying to establish new
contacts and retailers to carry Marco’s products. The more they worked together, the
more Marco grew to trust her and her ability, and the more responsibility Marco gave
her. At some point, Sharon became the one responsible for calculating and printing
out her paycheck, which she did twice per month, and then gave it to Marco to sign.
Busy traveling to industry shows and meeting with reps responsible for selling his
products, Marco had little time or interest in double-checking Sharon’s calculations and
just signed her checks without asking for documentation that she conveniently didn’t
provide. Yet her pay seemed to rise with each paycheck. The amounts were noticeable
but not enough to cause great alarm at first. But over the seven months Sharon had been
working, the additional funds amounted to approximately $8,000 ….. about 50% more
than her salary. Marco, easy-going and understanding, needed to confront the more aggressive Sharon, but was afraid of losing his only employee and person capable of
“holding down the fort” during Marco’s increasingly frequent business trips. One day,
while checking the books, Marco noticed that Sharon had been paying herself overtime,
even though, in Marco’s mind, Sharon was clearly a salaried employee.
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