Vignette 6.3 DEAD-END JOB

Following several reports of internal control problems in an insurance

company, an internal auditor interviewed several junior managers in the

claims department, The remarks Of an apparently bright man in his early

thirties were as follows:

"l came here 5 years ago believing all the hype about long-term career

opportunities and the corporate mission statement about building employee

loyalty. But I haven't seen any of it yet. Until recently, I worked hard

because I basically like the insurance business. But I get no recognition.

Our annual evaluations are a joke. My boss catches me in the hall and

asks that I sign the evaluation because it has to be in that afternoon. If I get

to see the evaluation at all, it's a glance through the form while he drinks

from the water fountain. Apart from one time when we went on a trip

together, he has never sat down with me and given me any feedback. Of

course, it's not altogether his fault. He has to attend all those meetings and

cope with mounds of paperwork.

"Last year we all received an across-the-board 3 percent raise. This year,

there were a few merit raises, but they went to the boss's friends. The final

blow came when a middle management position opened up in underwriting.

I applied for the position because I once worked in Traveler's underwriting

department, and I really thought I could do good job. But the company

brought in someone from a competing organization. I have nothing against

him, but he has less experience than I do. The announcement said that he

brought';refreshing new ideas to the company. Over the last 3 years, most

senior positions have been filled from outside.

"There's no future here. I've had my resume out for 4 months now, and I've

already received a couple of tempting offers. When the right offer comes,

I'm off. "It doesn't surprise me that there have been control problems here.

Nobody in the department is happy. Personally, I wouldn't do anything

wrong, although I suspect one or two people of deliberate violations. I just

goof off when no one is lookingwhich is most of the time."

Thought Questions:

1. If you were reviewing the results of the internal auditor's interview,

how would you address the problems the junior manager points out

in this vignette?

2. How can management improve morale and encourage excellence in

its employees?