Read the “Employee Raiding” critical incident following the end of Chapter 3.
How would you prepare for the meeting? Provide a detailed explanation that demonstrates clear, insightful critical thinking.
What would you say at the meeting? What recommendations would you make? Provide a detailed explanation for your recommendations that demonstrates clear, insightful critical thinking.
Your initial response should be 200 to 300 words in length, include two academic resources that are properly cited (APA)
Employee Raiding
The Litson Cotton Yarn Manufacturing Company, located in Murray, New Jersey, decided, as a result of increasing labor costs, to relocate their plant in Fairlee, a southern community of 4,200. Plant construction was started, and a personnel office was opened in the State Employment Office, located in Fairlee.
Because of poor personnel practices in the other three textile mills located within a 50-mile radius of Fairlee, the Litson Company found it was receiving applications from some of the most highly skilled and best trained textile operators in the state. After receiving applications from approximately 500 people, employment was offered to 260 male and female applicants. It was decided that these employees would be placed immediately on the payroll with instructions to await final installation of machinery expected within the following six weeks.
The managers of the three other textile companies, faced with resignations from their most efficient and best-trained employees, approached the Litson managers with the complaint that their labor force was being "raided." They registered a strong protest to cease such practices and demanded an immediate cancellation of the employment of 260 people hired by Litson.
The Litson managers discussed the ethical and moral considerations involved in offering employment to the 260 people. It was clear that Litson faced a tight labor market in Fairlee, and the Litson management thought that if the 260 employees were discharged, the company faced cancellation of their plans and large construction losses. It was felt, in addition, that the Litson management was obligated to the 260 employees who had resigned their previous employment in favor of Litson.
The dilemma facing Litson managers was compounded when the manager of one community plant reminded Litson that his plant was part of a nationwide chain supplied with cotton yarn from Litson. It was inferred that attempts to continue operations in Fairlee by Litson could result in cancellation of orders and a possible loss to Litson of an approximate 18-percent market share. It was also suggested to Litson managers that action taken by the nationwide textile chain could result in cancellation of orders from other textile companies friendly to them. The Litson president held an urgent meeting of his top subordinates to: (1) decide what to do about the situation in Fairlee, (2) formulate a written policy statement indicating Litson's position regarding employee raiding, and (3) develop a plan for implementing the policy.