This situation would be influenced by information
power. Information power is derived from possessing knowledge that others want
or need (Northouse, 2016, p. 10). The other employees may suspect that
something is going on but it is important that a manager with the correct
information meet with them and relay this information.
The Customer Service team needs to understand that
their goodwill effort to save the Director of Customer Service’s job may cause
some tension because it is such a personal and possibly life-changing decision.
As people struggle with their personal finances, some may question whether they
can afford to help others. Peer pressure can also play into a person’s decision
whether to take a pay cut (Ailworth, 2009). Since the Director of Customer
Service is being terminated, it now becomes the VP of Marketing’s job to
caution and counsel these employees so that they make the best decision for
their situation. Obviously, you would have to tell the employees that you would
have to check with upper management first to get approval for employees to take
such a pay cut. Will this pay cut also mean a reduction in job
responsibilities? Are there any legal ramifications involved in this decision regarding
their employment? There are many factors that must be explored before an answer
can be given. You would also have to determine your own situation before giving
them an answer as to whether you would take a pay cut as well. This is not a
decision that should be rushed into because it can have some long-lasting
impacts.
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