Case Study Write Up

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Alin NIRAMORN
Case Study Methods
Lori Ostlund
09/019/2012

Case Write-Up
Summary of Case Situation
In the case, Raleigh & Rosse, Simons and Mahoney (2011) report that in the beginning of year 2010, R&R is being sued by its sales associates. The Federal Fair Labor Standards Act (FLSA) states that R&R has continued breaking the state law by encouraging employee to work “off the clock”. R&R is a U.S. luxury good retailer run by family member. The company mission is to serve their costumers with outstanding service. R&R Sale associates are expected to serve their costumer ”off the floor” as a part of “Ownership Culture”. Linda Watkins, a CEO of R&R who was recruited by Brian Rosse, has admitted that at first Bill Schwartz, a Senior Vice President for Human Resource had been questioning in some aspects of the Ownership Culture and particularly Sales Per Hours (SPH) program. He also suggests Linda to apply different approach instance. However, Rosse believes that Ownership Culture and SPH is the core of the company to success. Moreover, the economic downturn in years 2008 and 2009 has affected to luxury goods industry. R&R were also impacted by the economic crisis; the revenue continue dropped down rapidly.

Central Issue
How Raleigh & Rosse need to handle with sales associates who sued the company. Recommended Course of Action
Linda should make a decision how to respond to the lawsuit by paying back damages to all employees. Basis for Recommendation
R&R should set up an amount for one-time payment system because it can help the company safe money and it is fair for every employee. The case R&R (Simons and Mahoney, 2011) states that the employee who is the plaintiff in the lawsuit is asking the company to pay back twin amount of “non selling” hourly wages. The count judgment the company to pay in total of $200 million; consequently, this amount will affect the company financial. Therefore, R&R should offer an amount for...
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