Scenario:

You are the HR Manager at Coffee Rite, a hot beverage (coffee, tea, hot chocolate, etc.) supplier to restaurants and stores. Last week your assistant brought you a letter that he received. The letter was unsigned. The letter reported that Bruce, one of the sales representatives has been selling Coffee Rite products at a flea market outside of town.

A picture was enclosed, and while you recognized Bruce, you couldn't clearly see Coffee Rite product or anything else. A few days later you and Barbara (Bruce's manager) met with him. You started with some general questions, but when it was going nowhere, you became more direct, telling him about the accusation made in the letter.

At first Bruce denied any involvement, but when you told him that you had a picture to prove it, he broke down. He stated that he only sold company product at the flea market on one occasion and stopped because he didn't make very much money. He said that he and his spouse had recently separated and he was having some financial problems, with the burden of support payments and setting up his own place. He had some of his old fitness equipment to sell, and at the last minute decided to bring along a few cases of coffee and tea that he had bought through the staff purchase program.

He mentioned that lots of the employees buy the maximum amount allowed each month through the staff purchase program, and then sell it to their friends and family, so that's how he got the idea to sell it at the flea market. He didn't think that what he did was any different. You and Barbara advised Bruce that he could continue to work, but he was suspended from the staff purchase program until further notice.

You also told him that you needed to consider the matter and decide whether he will be disciplined. In a separate conversation, Barbara made it clear to you that since joining 2 years ago, Bruce has been a valuable employee and she does not want him to be fired. Her opinion is that he now knows better so leave it alone and move on. Since that meeting you have gathered the following information: Bruce's staff purchase record shows that he stayed well within the $100 limit to purchase company product each month

There is no written statement confirming that company product is for the direct use of the employee only, although it is referred to in the new employee orientation presentation While your assistant is pretty sure that she would have raised the point in Bruce's orientation presentation, it was 2 years ago Bruce has a good performance record, and the company has not had any previous problems with him Given this scenario:

1. What is the key HR issue(s) of this case?

2. What action should you take with Bruce? Are there grounds to discipline Bruce? Why/why not?

3. Develop a detailed, comprehensive plan, outlining the HR policies/practices that should be implemented, in order to minimize the company's risk of another occurrence.

Explain the reasons for your recommendations. Submit response of no more than 1000 words, as a Word file.