Facing Unfounded Termination Threats: How Should This HR Head Respond?

Dear Team,

The shareholder's representative for our company, who is a foreigner, has sent an email to the Managing Director (MD) of our company threatening the termination of a female staff member who has been with the company for more than 5 years. The reason given is that he feels she has conspired against him, and this is the second time he believes she has done so. My questions are:

1. The email was sent to the MD, who has informed the female staff member, a senior member of the team, and she has refuted the allegation.
2. The MD is aware that the entire issue is based on unsubstantiated gossip.
3. How should the female staff member react? This situation is very alarming for her as her job and career are at stake.
4. The first incident occurred when she wrote about increments for the staff, and the shareholder's representative perceived her as bossy. This email was also not directed to her but to the MD, who discussed it with her before sending the email, as she is the HR head for the company.

I really need your help with this matter.

Handling Allegations and Gossip in the Workplace

The email was sent to the MD, who has informed the staff member, a senior member of the team, and she has refuted the allegation. The MD is aware that the whole issue is based on unsubstantial gossip.

How should the female staff member react?

This is very concerning for her as her job and career are at risk. What are the inputs based on the stakeholder's conclusion? We cannot make assumptions unless the stakeholder's viewpoint is clear to us.

Background of the Incident

The first instance occurred when she wrote about increments for staff, and the shareholder's representative felt that she was being bossy. This email was also not sent to her but to the MD, who discussed it with her. The email was sent only after discussion with the MD, as she is the HR head for the company.

Dear friend, if the company has shareholding from a foreigner, then it appears to be a big company. Secondly, if the lady in question, against whom the shareholder has complained, happens to be the HR Head, then she is expected to handle the matter on her own. Anyway, a second opinion always matters, and since you have raised the post on this forum, you deserve opinions from the experts.

If the complaint about the behavior of the HR Head has been made to the MD of the company and that too by a foreign shareholder, then it goes without saying that someone from the company has been complaining to him. This complaint could be because the person who leaks news could be doing so because he/she does not have trust in the local management. Of course, this may or may not be true.

Measures the MD Needs to Take

There are a couple of measures that the MD needs to take. One is to order an inquiry to ascertain facts. An impartial probe by an external inquiry officer will be better. Let the facts speak for themselves. The decision of the MD based on the inquiry could be communicated accordingly.

Improving Internal Communication

Next is to improve internal communication or upward communication in the company. There cannot be smoke without fire. Therefore, let the survey be conducted on how HR provides their services to all the departments. The loopholes can be plugged.

Empowering the HR Department

Next is to empower the HR department. Possibly HR might not be empowered enough, and ordinary staff could be considering that it is HR that is responsible.

Role of the Shareholder

Last but not least, the shareholder may be told that he is an investor and his role should be restricted to investment. I have seen MDs allowing investment from all quarters, but they were told firmly that they will not make any complaints about internal administration. They can only point out shortcomings, but more than that, nothing else. Generally, shareholders are committed to a certain percentage for their investment. Whichever way the administration is run, as long as they get their dues, they need not grumble. The matter should settle there.

By the way, are you that HR Head who has written the post anonymously?

Thanks,
Dinesh Divekar

Dear Mr. Divekar, there are major changes happening in the company since April, with a new person who has been brought in to replace the MD once his contract ends or whatever decision the shareholders' representative makes. The decisions of HR hold no weight in this company, as the rules are changed or bent as per the management, especially the new one. The representative wants to take an active role in the company's operations and has started interfering in the daily workings of the company.

Dear friend,

If your MD is a lame-duck MD, then there is not much that can be done. It may be better to start looking for a new job rather than continuing in a hostile environment. However, you could try to establish a direct connection with the foreign shareholder. If you can convince them of your potential and the contributions you have made in the past, you might be able to continue. The change of MD should not weigh too heavily on your mind.

Thanks,
Dinesh Divekar

Dear colleague, I believe the entire content of the post does not clarify how the foreign shareholder representative came into contact with the female staff. Furthermore, what are the details regarding the alleged incident involving the female HR head, for which the outsider is advocating her termination without a fair and proper inquiry, especially considering that the HR head has denied the accusations?

Without all the facts of the case being transparent, any advice given would be meaningless. At this point, let the female HR head demand a fair and thorough investigation, demonstrating her willingness to cooperate.

Regards, Vinayak Nagarkar HR Consultant

Team Dynamics and Shareholder Interaction

The team in the office consists of only 20 members. The shareholder is in contact with all staff as he feels everyone should report to him whenever he wants details. The lady member, as mentioned, was the first team member in the company. When the company started, there were only 5 members, and there was constant contact in terms of work for at least 10 days a month. The shareholder visits India every month for a minimum of 10 days.

Considering a Written Complaint

Should the lady give a written complaint to the Internal Committee? What would the consequences be?

Dear colleague,

It is an unusual and rather strange situation that any shareholder is meddling with day-to-day affairs of the business like the CEO. Is he the majority shareholder eyeing to become CEO? You have once again not provided the details of the incident, without which it is not possible to comment on whether it falls into the category of sexual harassment and whether you should approach the internal complaints committee.

Regards,
Vinayak Nagarkar
HR Consultant

Dear Mr. Nagarkar,

That is the problem. In the email sent to the MD, the shareholders' representative has said he heard rumors but has not given the name or instance of the same. He has mentioned that he will look into the matter at the end of January, and if proven true, he will terminate the job.

Dear Teresa,

This is vague. Keep calm and insist on a fair and proper inquiry whenever this issue arises in the future, ensuring that you are given a reasonable opportunity to explain your side.

Regards,
Vinayak Nagarkar
HR Consultant