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Edited by Paul F.Buller, Gonzaga University, and Randall S. Schuler, Rutgers University
Managing Organizations and People A R~c;oufP for (ases In Marage nent, Orga izat n and Human Resource Management
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Fred Maiorino had been one of Schering-Plough's top sales representatives, but he was now 63 years old and had refused his company's "early out" package. Early in his career, he settled in his sales territory of Southern New Jersey, which included its capital of'Tren- ton, while making a good living and winning many performance prizes. More recently. however, under the guidance of the sales district's new sales manager, Jim Reed, a new per- sonnel evaluation system has determined that Fred's performance has slipped badly. Jim tries to help Fred but to little effect. The breaking point between the two comes when Tun discovers that Fred has been submitting false activity reports over timc spent making his rounds of doctors' offices and pharmacies.
Reed puts him on a six-month probation while stating specific sales goals that must be met. At the end of the probationary period, Fred had failed to ar..ain the marketsbare gains set for him. Fred was given another six-month probation to give him the berefit of the doubt, given his long service with Schering-Plough, but he tailed again. Later, he was publicly fired in a restaurant he frequented with Reed and his company car and sales ma- terials were oonfiscated.
Suffering hurt feelings, and feeling that he had been fired because of his age, fred filed an age discrimination suit against his former employer. During the trial. it was found that the marketshare increase system for evaluating sales representatives favored the com- pany's new, young sales reps while discriminating against its more senior ones. After eight days of testimony, the jury made a judgment of $8.44 million against Schering-Ploogh- the largest award in New Jersey's history.
How to Motivate Fred Maiorin:? L....I.. .... t.
After working for 35 years as one of Sehering-Plough's top salespeople, Fred Maiorino stood in his suburban home's driveway on July 15,1991 withoutajob, his car, or his pride. Just minutes before. he bad been fired by his boss Jim Reed over coffee in Mastori's Diner and Restaurant in Bordentown. New Jersey. Reed had simply handed Fred a dismissal
• This casewas prepared by Professor Joseph Wolfe, University of Tulsa, and Joann Babiak, Romine Be Pickering PC, as a basis for classroom discussion rather than to illustrate either effective or ineffective handling of an administra- tive situation. Copyright @ 1998 by South-Western College Publishing.
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