Mike reported illegal conduct by Greg at Galvatrens. In response, he was demoted and transferred. We would accept Mike's request for reinstatement for three reasons: 1. Reinstating Mike would reinforce the new culture Chip is trying to create where employees can freely raise concerns without fear of retaliation. Not reinstating him could demotivate other employees from reporting issues. 2. Mike's action was consistent with Galvatrens' policies. Reinstating him would boost other employees' faith in the organization and motivate further corrective actions. 3. Reinstating Mike may avoid a legal battle that could damage Galvatrens' reputation if the channel stuffing information were to

1. Group 1
Section B,
Q1. Analyze the case ‘Why Didn’t We Know” and take a decision on a request from Mike for
reinstatement. Give your decision and give three reasons for it.
Walter Nikels, the CEO of Galvatrens before Chip Brownlee took over, ran the organization in an
authoritarian and hierarchical fashion which led to high employee dissatisfaction and attrition amongst the
employees. After joning, Chip tried to change the company’s culture by announcing ambitious initiatives
to make Galvatrens an organization that excelled in listening to and learning from its employees and its
customers. But when Mike, one of the employees in sales department, reported that illegal conduct by
Greg, he was demoted and transferred.
Based on our analysis of the situation, we would accept Mike’s application for reinstatement based on the
following reasons:-
I. Chip is trying to create a culture where employees can come forward and raise their concerns
freely. Reinstating Mike, would reinforce the faith of the employees in this new culture in the
organization. On the other hand, if Mike is not reinstated employees might feel demotivated
and decide not to report any such unethical act in the future.
II.
III. and motivate them to take such corrective actions in the future as well. On the other hand,
IV. Mike’s action was in sync with Galvatrens’ systems and policies. By reinstating him, it would
reinforce the faith that the other employees had in the organization and motivate them to take
such corrective actions in the future.
V. Avoid Legal Battle: It might avoid a legal battle with Mike, which will prevent the information
about channel stuffing from leaking out of the organization, which would keep Galvatrens’
reputation intact. If not handled correctly, this allegation could hurt the company in terms of
employees, customers and shareholders.
VI. No Reason For Termination: Though Mike’s performance had declined in the past few months
but it is majorly due to nasty custody fight with his ex-wife. Otherwise he had been a solid
performer, which reflects his true capabilities and potential.
Moreover, Mike’s manager terry didn’t handle the situation correctly. Instead of helping and
supporting the Mike in this situation he reacted brutally contributing to Mike’s emotional stress.