Organizational Behavior

Decision Sheet
Case 3: Wendy Peterson

Case Facts:
 AccountBack is an accounting software and services company.
 Founded in 1988 by Will Gleason (former accountant) and Travis Hardiman (software
engineer)
 The company provides back-office accounting software designed for small- and medium-
sized businesses.
 The software is easily adaptable when needs change/expand because of its modular
design and comprehensive suite of add-on options.
 Competitive advantage = Superior software + strong client relationships.
 Flat organizational structure and a collegial structure > minimize office politics, boost
morale and strengthen performance.
 The client renewal rate of the product was 25% above the industry average.
 Clients retained services for at least 4 years.
 2010 revenue = $100 million and employed > 400 employees.
 In the same year, the proliferation of inexpensive accounting software and a faltering
economy drove down revenues.
 Annual compensation of salespeople = 50% base component + 50% commission
component.
 When regional targets were met, every regional sales employee received a flat bonus of
$7000 (2010)
 Wendy Peterson -> vice president of sales for AccountBack's Plano, Texas, office.
 Fred Wu -> sales executive hired by Wendy Peterson to break into the Chinese market in
Plano.
 Wu has a successful entrepreneurial background and connections in the Chinese business
community.
 Wu closed a significant deal with a large client after 8 months, bringing in over $400,000
in annual fees.

Decision-maker/Protagonist:
Wendy Peterson, the Vice President of Sales for AccountBack's Plano office.

Problems:
1. Cross-cultural differences led to a communication breakdown between Wendy Peterson
and Fred Wu.
2. Lack of office presence.
3. Inconsistent updates to the vice president.
4. Unreasonable request for a personal sales assistant.
5. Violating company policy of receiving approval before providing add-on services to an
existing client.
Problem Statement:
Wendy Peterson needs to address Fred Wu's inconsistent performance and conduct issues
while fostering his potential and maintaining alignment with company values.

Decision Problem:
How can Wendy respond to Fred Wu’s demands for an assistant without jeopardizing the
organizational culture and employee morale?

Wu offered three additional

services to one of his clients
without confronting Wendy
about it. Wu is from China and
he
believes each situation is
different when looking the
contex
Wu offered three additional
services to one of his clients
without confronting Wendy
about it. Wu is from China and
he
believes each situation is
different when looking the
contex
Wu offered three additional
services to one of his clients
without confronting Wendy
about it. Wu is from China and
he
believes each situation is
different when looking the
contex
Wu offered three additional
services to one of his clients
without confronting Wendy
about it. Wu is from China and
he
believes each situation is
different when looking the
contex
Criteria for Evaluation of Alternatives:
1. Productivity
2. Cost
3. Diversity within the company
4. Existing client relationships
5. Negative impact on other sales employees

Alternatives:
1. Terminate Wu’s employment contract.
2. Assign a permanent assistant to help Wu with phone calls and administrative tasks.
3. Formalizing administrative support (create a centralized administrative support system
within the sales office. There can be a pool of administrative staff available instead of
personal sales assistants to assist all sales executives with routine tasks and administrative
work as needed)

Analysis of Alternatives:

Terminate Assign permanent Formalizing

employment assistant administrative
support

✔ ✔
Productivity ✘

✔ ✔
Cost ✘

✔ ✔
Diversity ✘

✔ ✔
Existing client ✘
relationships

✔ ✔
Impact on other ✘
colleagues

Recommendation:
Formalizing administrative support through a centralized system can improve productivity by
efficiently handling routine tasks for all sales executives, freeing up their time to focus on
core sales activities. While there might be some initial setup costs, this alternative can lead to
cost savings in the long run by optimizing administrative resources. A centralized support
system can positively impact client relationships by ensuring smoother communication and
client interactions.
Overall, Alternative 3 provides a balanced approach by positively addressing multiple criteria
while minimizing potential negative consequences.