The following case study has been making rounds on WA groups of HR. I have copied it here. Scroll down to read my analysis. For replies to your case studies, feel free to contact me.
Thanks,
Dinesh Divekar
Brief of the Case
Mr Sundaram is working as Marketing Head in one of the reputed FMCG Company at Mumbai. He had joined the company in March 2015.
Being Marketing Head, he is awarding many contracts to different vendors for various jobs. He has discontinued the old vendors and engaged new vendors.
Recently the company has received an anonymous mail stating that Mr Sundaram has given big contract to one of his relative. Also it was mentioned that Mr Sundaram is one of the Director of that company.
The company's Audit Team has checked the details of contract awarded by Sundaram.
The Audit Team has found that Sundaranm has given big contract to his own company wherein his wife is Director. Sundaram is also one of the Director. He has awarded the contract at inflated rate which is 3-4 times higher than the market rate.
Thus the company has paid an excess amount of Rs.35.5 Lacs to Sundaram's company. Thus Sundaram has misused his position to award the contract to his company.
MANAGEMENT OBJECTIVE
1. To recover the excess amount paid to Sundaram's company
2. To terminate the services of Sundaram immediately.
In view of the above, as a HR Head,
1. How would you recover Rs.35.5 Lacs from Sundaram. Except his salary, there are no dues payable to him.
2. Would you terminate the services of Sundaram?
3. What preventive measures should we take to prevent such incidences in our organisation?
All members are requested to kindly give your views on the above queries
Thanks,
Dinesh Divekar
Brief of the Case
Mr Sundaram is working as Marketing Head in one of the reputed FMCG Company at Mumbai. He had joined the company in March 2015.
Being Marketing Head, he is awarding many contracts to different vendors for various jobs. He has discontinued the old vendors and engaged new vendors.
Recently the company has received an anonymous mail stating that Mr Sundaram has given big contract to one of his relative. Also it was mentioned that Mr Sundaram is one of the Director of that company.
The company's Audit Team has checked the details of contract awarded by Sundaram.
The Audit Team has found that Sundaranm has given big contract to his own company wherein his wife is Director. Sundaram is also one of the Director. He has awarded the contract at inflated rate which is 3-4 times higher than the market rate.
Thus the company has paid an excess amount of Rs.35.5 Lacs to Sundaram's company. Thus Sundaram has misused his position to award the contract to his company.
MANAGEMENT OBJECTIVE
1. To recover the excess amount paid to Sundaram's company
2. To terminate the services of Sundaram immediately.
In view of the above, as a HR Head,
1. How would you recover Rs.35.5 Lacs from Sundaram. Except his salary, there are no dues payable to him.
2. Would you terminate the services of Sundaram?
3. What preventive measures should we take to prevent such incidences in our organisation?
All members are requested to kindly give your views on the above queries