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– Nelson Mandela

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Reflection (R5)

Reflection (R5)

Q Case 5.5 1. What temptations did the employee compensation system present? 2. If you had been a service advisor, would you have felt comfortable recommending repairs that were not immediately necessary but would be eventually? 3. A public relations expert has said of the Sears debacle: “Don’t make the Sears mistake. When responding to a crisis, tell the public what happened and why. Apologize with no crossed fingers. Then say what you’re going to do to make sure it doesn’t happen again.” What are the ethical standards in this public relations formula? 4. What do you believe creates Sears’ culture? 5. Sears’ stock price and earnings fell. What lesson is there in these consequences? 6. Compute the total costs of the bankruptcy cases to Sears. 7. Are there principles for a credo for, as an example, the mechanics at the auto centers? What about the lawyers who worked for Sears on the bankruptcy issues?

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The number of hours worked by the employees at Sears had been the basis on which Sears used to pay its employees. This was the trend for the organization to pay its employees with such a compensation system based on working hours in the past just before the year of 1990 (Jennings, 2014). Therefore, before the year of 1990, the number of automotive repairs done by the employees had not been made the basis on which Sears would pay its employees. The temptation for the employees of Sears before the year of 1990 was to ensure that they would not spend less time but as much time as possible in order to do a particular repair appropriately and technically.