Jared Farnsworth

How to Motivate Fred Maiorino

A Case Analysis
9/15/2014

How do you motivate Fred Maiorino? Here is a man that has worked for ScheringPlough for thirty-five years and it totally committed to this company and what he makes for a
living. He has no prior disciplinary action brought against him, nor has he been one of the lower
salesmen for the company. In fact he has been one of Schering-Ploughs top salesman for the
New Jersey area. So what takes a man from being one of the top salesmen to being let go in four
years time? Was it a breakdown in communication with his manager, or maybe some oversight
by the company? Was it a breach of psychological contract from his manager or the company?
Was it mismanagement as a whole where the managers personality and the employees just do
not work together? Was it just Fred did not like the changes and so he was not going to play by
their rules anymore? Or was it a combination of a few things like a lack of proper coaching by
his new manager and Fred getting older and not being able to put up the same sales numbers he
did when he was younger? During this case analysis we will look at all the aspects of what
happened to Fred and why all of the sudden he lacked the motivation to get the job done.

Relationships:
Fred career started at Schering-Plough in March of 1956. He was 28 year old when he
started with the company and was with them until he was fired thirty-five years later in July of
1991. Fred was a successful sales man for Schering-Plough and made his way up the ladder and
received many promotions until he landed in what Schering-Plough called the South Jersey Sales
district in January 1984.

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

In February of 1987 Fred met his new manager, Jim Reed. When Reed came to the sales
district he told Fred Youre one of the senior men here. Ill need your help (241). Along with
Jim Reed came his new grading system, which was different from the one the company used for
all its salespeople. Mr. Reeds had two parts, one that was based on sales and the other that was
based on behavioral benchmarks.
Inconsistencies:
One inconsistency is with the employee/employer relationship. If a company is happy
with the employee production, why would they offer an early retirement package to all
employees over the age of 55 and then hire people to replace those employees before the set
amount of people accepted the package? For instance the article stated that Schering-Plough
hired 70 to 80 employees to replace the 98 eligible early retirees and that only 29 decided to
retire early and accept the severance package offered by Schering-Plough, meaning the company
was still 40 to 50 employees over what they started with before offering the early retirement
package.
The inconsistency with Freds manager is with his evaluation of employees. Why does a
manager need a different grading system than the company? This shows that he does not exactly
know how he wants to evaluate his subordinates. Jim also does not clearly outline what he
expects from his subordinates or include what they do well and what they struggle with.
Data collection and Interpretation:
Fred Maiorino was a 35-year sales veteran for Schering-Plough. Fred was part of
Scherings Diamond 110 club six times. Fred was a top sales man for the company and received
his lowest rating ever at the company in 1988 after Jim had taken over as his regional manager.

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

Every salesman received a 12.7% raise and Fred received only 5%. All the other reps in his area
are twenty years younger or more than Fred.
Schering-Plough is a very profitable drug company. They are one of the leaders in
antihistamines and bronchodilators for asthma. In 1991 Schering-Ploughs sales were $3.616
billion, and its net income was $646 million, and it had 20,200 employees.
Jim Reed was in his sixties when he was named manager over Freds region. He oversaw
the production of 9-12 sales reps depending on the year.
Keep in mind, Schering-Plough also hired approximately 50 more people than needed
when they offered their early retirement incentive.
This data says that Fred was not just some lazy employee that wanted a handout. Here
was a 35-year employee who felt like the system was failing him all of the sudden. His company
was offering early retirement and hired too many younger sales reps and his manager was closer
to Freds age, probably thought they would have something in common and Jim was harder on
Fred than the other reps.
Critical issues:
One of the issues that was found when reading this article was the fact that Fred had been
a model employee and had never been given anything below a very good rating, until his
manager started the new rating system. He had been part of the companys top selling club six
times and was the top salesman in is area once. Fred knows all the nurses in his area and gets
into the doctors offices faster than most salesmen from rival companies. How does a man that
can do all that not receive a very good rating?

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

Lindbom stated coaching may be the most important job requirement in the role of a
manager. Jim focuses on Freds shortcomings instead of the showing him where he is falling
short and showing how to correct it. When I was a sergeant in the Army and I only told my
subordinates that they were wrong and did not tell them what exactly was expected of them I
would have been the one being reprimanded instead of them. Schering-Plough should be more
focused on the coaching aspect company wide. Lindbolm also stated coaching must become
part of the organizations identity by including it in core competencies and behavior
expectations.
Another issue is the fact that the company sends out a memo to all employees telling
them to be flexible with their scheduling and then Jim Reed checking on him periodically after
driving more than seventy miles out of the way to make sure that he was at work by eight
oclock in the morning. This is what micromanagement looks like. Sal Marino stated, They
manage by memorandum. To make matters worse when he did find him at home he did not ask
Fred what his reasoning for the late start or absence from work was about. Any good manager or
boss will ask why someone was missing or late to work. I know that if I do not call in to my
work as a teacher, the principal will call me and ask where I am and why I did not call in so they
could get me a substitute for the day. This misplay by me as an employee would certainly cost
me my job. Most of the time people have good reasons to be late or miss work. He could have
been sick or had a family emergency.
A violation of the psychological contract was breached. As the foundation of the
employee-organization relationship is a psychological contact is comprised of beliefs about
reciprocal obligations between two parties (Rousseau, 1989; Schein, 1965). Many employees

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

feel that their managers are not holding up their end of the bargain in this relationship and that
leads to a break down in trust. These perceptions, regardless of whether or no they are accurate,
have been found to reduce employees trust, job satisfaction, intention to remain with the
organization, sense of obligation, and in-role and extra-role performance (Robinson, 1996;
Robinson et.al., 1994; Robinson and Morrison, 1995). Without trust from both parties,
performance tends to slow and then nose dive. Why would someone want to work for a company
that says hey come work for us and we will take care of you, only to say on the first day of work,
welcome aboard you are on your own, good luck. I do not know of any people that would want
to work for a company like that. I would even venture out and say that this particular company
might not stay afloat; if this is how they treated their employees, just imagine how they treat their
customers.
Theory Application:
Ultimately I think that Fred was just lashing out. He feels that he was forgotten or passed
up by the company. He feels that he should have gotten a promotion like Jim did. He knew all
the right people to get in to see the doctors quicker, but Fred feels that the company does not
look at that as an accomplishment. I am no drug salesman, but I know there are few that can just
walk in and go straight back to see the doctor. Fred has never received a poor rating on his
evaluations, he has been faithful to the company for 35-years and has been one of their top
salesmen for the New Jersey area and thought that would get him recognized for something other
than continuing to be a salesman. Most people will not continue in a job that does not have some
sort of advancement, that is the only thing that drives people to continue to work when they do
not feel like they are accomplishing much.

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

Generating Solutions:
One solution is Fred should look for employment with a competitor. He obviously knows
the market, so who would not want the opportunity to pick him up with his knowledge and
camaraderie with the nurses and doctors. He could quit Schering-Plough and take his talents and
clients to another company, removing himself from what Fred sees as an unfavorable situation.
Another one is that he does whatever was asked of him. Do not worry about what
everyone else gets only worry about him. If Jim told him to read more journals and host more
meetings then do it. Many managers will see that they are at least trying to make an effort and
thats what most managers are looking for. Ask Jim what he does well and what needs to be
worked on in a constructive way. Ask his clients for feedback on what they like from him and
what they wish he would do better.
Course of Action and Plan for Implementation:
Before it escalated to the point of Fred being fired, Fred should have gone to his manager
and asked what exactly he was looking for and how to improve his sales numbers. Jim would
have told him to read more journal articles and host more dinners with clients. While at the
dinners with clients he should ask them what he does well and what they think he should work
on. Fred should also ask Jim for more constructive feedback so he can know where to make
improvements. Then Fred would have done exactly as Jim had said, showing Jim and the
company he was making the effort to improve his numbers and get back to being one of the top
salesman for the company. Many people will tell you their opinion regardless if you ask for it or
not, but it your asking for it, chances are that it will be more constructive than destructive in
nature.

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

Schering-Plough will implement a new coaching system where all managers will learn
how to properly coach their reps. It will include how to adapt training for older reps that have a
harder time changing old habits and learning new practices. The managers and sales reps will sit
down monthly to make sure that sales and objective goals are being met by both parties as well
as building trust between manager and rep and improving overall work satisfaction. Coaching
and goal setting should be implemented across the board for Schering-Plough as a way to better
the sales staff and managers. It will allow and permit cohesion amongst the managers and their
regional sales staff.
Conclusion:
Although Fred was fired and won a lawsuit that has still yet to pay, this all could have
been avoided. There was no reason that it had to get to that point, someone should have set clear
expectations. This does not fall just on Fred. Jim and Schering-Plough could have made that the
clear expectation long ago. Proper coaching, setting attainable goals as well as holding the sales
reps accountable for those goals, eliminates the majority of what happened to Fred. If Fred were
properly coached he would not have felt that the trust had been violated or that the psychological
contract had been voided. There is no room for Jim to mismanage Fred with proper coaching and
holding him accountable for his goals. This enables them to both see how effective and
attainable the goals are.
In closing, I do not blame this all on the mismanagement of Fred by his manager Jim or
the fact that Schering-Plough violated the psychological contract by hiring younger staff before
the older staff had time to decide if they were going to take the early retirement package or not.
Fred is in control of his success on the job. He could have asked where he stood as far as what he

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

does well for the company and what they would like for him to work on in the future, as well as
follow through and take steps to achieve it. Set better goals, read more journals about the
products he sells, and hold more client meetings so that he can get a better understanding of his
clients overall. With that being said Jim needs to work on his management skills as well. How
can you understand someone when all the communication is via memorandum? There is no trust
built because there is no face-to-face interaction, there is no inflection of voice or body language
to read. How does anyone read into what is on the paper without these things? Lastly, ScheringPlough needs to be more interactive with their employees. Make the managers accountable for
the shortcomings of the regional salesmen. This will make the managers more involved with
their team and will build some trust and camaraderie. I know that when I was in the military, this
is how I would build trust with my subordinates. They cannot know what is expected of them
unless they are held accountable.
This is how I would motivate Fred in each position. As far as the company, install across
the board coaching that results in better performance evaluations and understanding of actual
sales shortcomings. As the manager Jim, get more hands on with the development of regional
sales reps. Do less sending of memorandums and more joint observations of sales reps in actual
consultations with doctors. As Fred, take a more active approach in my work. Its not always
managements fault that I am underperforming, nor is it their job to make sure that I succeed. I am
ultimately the only one that can guarantee my success and any promotions that I think that I
deserve.

Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

9
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Jared Farnsworth
How to Motivate Fred Maiorino
A Case Analysis
9/15/2014

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