Fosdick Case Study

1.How should Fosdick respond to the immediate situation?
Fosdick should respond to the immediate situation by contacting Robert Easter letting him known the situation and asking how he would like to handle the situation.

2.What controls, of the types discussed in this chapter, might have been used by Red Spot Markets to reduce or eliminate the problems discussed in the case? Red Spot can have the products to continuously move through the process to reduce or eliminate the problems discussed in this case.

If the packages are continuously moving through the process the package will not be sitting and the employees chances will be lessen for theft.

3.What longer-range steps should Fosdick take to control the operations of the Providence distribution center? Fosdick should try revamping the inventory control process by changing the process so the packages can continuously move in and out. He should also restructure the employee shifts and lunch schedules so there will be continuous operations throughout the day.

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4.What longer-range steps should Fosdick take to improve the Providence distribution center’s productivity? Long Range Steps:
•Implement a reward system that will provide the employees with a bonus (financial or time) to push more packages through the system
• Implement modern technology to gage and monitor employee performance by utilizing handheld devices
•Replacing current employees

5.What longer-range steps can Fosdick take to reduce the distribution center’s high rate of shrinkage? Reduce shrinkage
•Provide employees with a safe and secure way to report employee theft where they are able to remain anonymous.

•Placing a severe penalty program in place for theft or even attempted theft
•RFID tags
•Placing items up high that must remain in the warehouse overnight and locking the forklifts making the merchandise not easily accessible for pilfering.
•Placing seals on the merchandise and having each handler inspect the seal and document the status of the seal as it passes through each handler.

6.Assume that Fosdick decides that the practice of free lunches from the opened cases of goods must be stopped. Develop and present the arguments he should give in a meeting with the union shop steward. I have noticed the employees are opening some of the boxes and taking items to make their lunch. I do not believe this is in the best interest of the company and it is considered pilfering. I assume these employees have been doing this for quite some time since when I stumbled upon what they were doing, the remark I received was “this was a non-contract fringe benefit”. This should not be the case since this is a loss in inventory within the company. I believe there are other ways to compensate employees and this is not one of the ways.

7.(This is a continuation of Question 6.) Assume, instead, that you are the union shop steward. Develop and present your argument that the free lunches represent a long- standing employee benefit enjoyed by the distribution center’s employees and that management’s attempt to stop them is a breach of an unwritten contract and will be resisted. Mr. Fosdick, we understand your sincere concern for company productivity and success; however, we are unable to do anything about your request at this time. We allow our employees to free lunches on the company as it represents long term employee benefits and stopping them will be a breach of an unwritten contract and will be resisted. This is one of the small things we allow to occur as it leads to happy employees and good productivity.

8.Much of the situation described in the case seems to evolve around the personality of T. D. Bigelow. How should he be treated? Why? T.D Bigelow should be handled according to company policy. He should understand his role and operate in his role toward company success. This should be done as an example to the other employees since they are watching and will follow what they believe one person is allowed to do.