Marjorie Henry, the manager of a medical benefits office in Adelaide, received an urgent memo from a supervisor, Brian Merchant, regarding a complaint from Ed Bunting, a prominent and active worker in the counter services area. Ed had recently undergone an annual staff appraisal that resulted in a recommended salary reduction. Marjorie, concerned about potential issues, called Brian in to discuss the situation. Marjorie was worried about the recent changes in health policy and the constraints imposed by devolution, including productivity targets and budget constraints. The amalgamation of unions into the Finance Union had made the workforce more assertive, and Ed Bunting, a vocal employee and union delegate, was involved in the complaint. Competition in the health insurance sector was fierce, and Marjorie needed to maintain productivity to meet head office targets. However, performance in her office was below average compared to other locations, and she aimed to improve productivity for the next quarterly report. Brian Merchant, a young and ambitious supervisor, emphasized his strict adherence to the staff appraisal guidelines, which had been implemented two years earlier as part of measures to enhance productivity. He believed that inadequate performance needed to be addressed with penalties to change the culture