Fred Maiorino Case Study
Overview
Fred Maiorino began his career at Schering-Plough in 1958 at the age of 28. He had been a successful sales representative till Jim Reed took over the position of General Sales Manager for South Jersey sales district in 1987. In 1988, Fred received his lowest ever performance evaluation of “Good” which was lower than any other sales representatives’ in the district. In fact, Fred’s salary increase at the end of the quarter was less than half of the average of other sales representatives who were at least 20 years younger to him.
When Reed first came to New Jersey sales district, he turned to Fred for help and leadership. He implemented a new performance evaluation measuring system which rated salesmen according to two different measures. This new system included evaluations based on product market share gains and critical incidents of effective and ineffective salesmen actions recorded during joint calls made by district managers and sales reps. Moreover, Reed began coaching his subordinates and providing them with medical journals to help improve sales pitches.
Unfortunately, even after working at Schering-Plough for over three decades as a highly successful salesman, Fred was terminated over coffee with Jim Reed at a local diner. This paper discusses why the different initiatives taken by Schering-Plough to motivate Fred Maiorino had failed. It also examines Reed’s role in the alleged breach of psychological contract and, contributions to the injustice and discrimination against Fred. Finally, this paper will provide recommendations for alternative coaching, goal-setting and leadership approaches that Schering-Plough could have adopted instead to ensure employee retention and loyalty.
Breach of Psychological Contract
At the beginning of their relationship, Jim Reed informed Fred that he would require Fred’s help in leadership. Although Reed may have made the remark in a casual manner, Fred took it seriously as he was able to recall the conversation
Fred Maiorino began his career at Schering-Plough in 1958 at the age of 28. He had been a successful sales representative till Jim Reed took over the position of General Sales Manager for South Jersey sales district in 1987. In 1988, Fred received his lowest ever performance evaluation of “Good” which was lower than any other sales representatives’ in the district. In fact, Fred’s salary increase at the end of the quarter was less than half of the average of other sales representatives who were at least 20 years younger to him.
When Reed first came to New Jersey sales district, he turned to Fred for help and leadership. He implemented a new performance evaluation measuring system which rated salesmen according to two different measures. This new system included evaluations based on product market share gains and critical incidents of effective and ineffective salesmen actions recorded during joint calls made by district managers and sales reps. Moreover, Reed began coaching his subordinates and providing them with medical journals to help improve sales pitches.
Unfortunately, even after working at Schering-Plough for over three decades as a highly successful salesman, Fred was terminated over coffee with Jim Reed at a local diner. This paper discusses why the different initiatives taken by Schering-Plough to motivate Fred Maiorino had failed. It also examines Reed’s role in the alleged breach of psychological contract and, contributions to the injustice and discrimination against Fred. Finally, this paper will provide recommendations for alternative coaching, goal-setting and leadership approaches that Schering-Plough could have adopted instead to ensure employee retention and loyalty.
Breach of Psychological Contract
At the beginning of their relationship, Jim Reed informed Fred that he would require Fred’s help in leadership. Although Reed may have made the remark in a casual manner, Fred took it seriously as he was able to recall the conversation
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