Margaret Dawson supervises a team of six salespeople within Smith & Yardley, Inc., and she’s been with the company for five years. As her team was assembled, Margaret worked assertively to make sure everyone was clear on how to complete the sometimes complicated expense report forms. Since her sales force was on the road for approximately 60 percent of the time, filling out expense reports completely was essential. The sales people were dependent on getting reimbursements quickly for living expenses and the extensive mileage accrued; the accounting team needed to process the forms quickly in order to avoid a critical back-log of debt. Margaret’s team consistently submits their reports on time, a fact that pleases both Margaret and her boss. The team receives their reimbursements promptly, which meets their needs.

For her entire time with Smith & Yardley, Inc., Margaret has used a rounding system to make the numbers reconcile more easily when inputted into the excel spreadsheet expense report. She has consistently shared this procedure with her salespeople as a method of reconciliation that also quickens the process. Margaret is also aware that when her subordinates complete their reports this way, they often get a little extra money in their reimbursement check. Since that’s the procedure Margaret was taught when she was new to the company, she feels comfortable passing that information on.

At the last managers’ meeting, Margaret’s supervisor, Henry, reviewed the correct procedures for completing expense reports. She learned that the rounding system that she was taught and has consequently taught to her sales force isn’t exactly the way the company would like outstanding expenses reconciled. The way in which Margaret and her team complete their reports isn’t specifically wrong, but it does err in favor of awarding the employees extra money. Margaret has to decide if she should gather her team and inform them that expense reports have to be completed in a new, more time-consuming manner, or if she should simply allow the team to keep submitting the forms in the way in which they’ve all become accustomed.

Questions

1. Using consequential, rule-based, and character theories, evaluate Margaret’s options.

2. What should Margaret do? Why?