Below is a fictionalized case study that presents dilemma faced in real organization. And written by me is a recommended solution to the problem. This has been published in Business Manager HR Magazine July 2019 edition.
When perception differs !
It was not a good day for Vishnu, Asst. manager- Finance and Accounts, when external audit team while conducting audit of the last quarter, raised as many as 15 objections of various payments made to different employees in respect of different expenses incurred by them. Vishnu was looking after all payables of internal and external stakeholders. He was responsible to ensure that all expenses reimbursed to employees are as per co. policy. But in many cases he simply overlooked because expenses were related to higher officials and were approved by financial controller. Few Objections were related to toll expenses but were not supported by toll slips. Other expenses reimbursed were of few taxis going for different destinations by same person in the same dates.
Financial controller called Vishnu and expressed his dissatisfaction and annoyance that the payments were cleared by him without examining the veracity of expenses. Vishnu told him his inability to stop payments when the bills were cleared by senior officials, director or even by him. Whenever he tried to hold, he was thrashed by senior managers and humiliated and shown his status. He was told to the extent that it was not his duty to see the documents and once signed and approved, he should simply release the payment. Financial controller was speechless. He said, “Vishnu, even if you feel that something is not proper, he could bring to his notice”. Vishnu said he will do that in future. He also suggested that company should frame a policy about all such matters so that he is not humiliated and pressurised by the seniors for releasing the payment immediately.
Financial controller discussed the matter with auditors to resolve the objections. Somehow on the advice of auditors, he filled the gaps and regularised the payments. It was also decided that a comprehensive policy should be framed in respect of employees’ expenses especially in respect of outdoor expenses, guest expenses, and travel and other misc. expenses. Policy was framed and made applicable. Apart from certain points, it was specifically mentioned that liquor expenses on any one will not be permitted except it was approved by the director and financial controller in special cases with clear mention that it was done in deviation of policy in company interest. This power of moving away from policy was vested only in two authorities.
Vishnu was quite relaxed. He kept the copy of the policy with him. Vishnu was not generally liked by other managers and colleagues. He was perceived as too much legalistic and going by rule book. He was not very much go getter and friendly with peers. He was self centred and intrinsic. May be due to this reason, his annual performance feedback was not too good. He was appraised average or below average. After serving company for about 15 years, he was only elevated to Astt. Manager level last year with bare minimum increment. But his integrity was never questioned.
It was last Wednesday, when few foreign visitors came to visit the plant. They were potential buyers of Co. Products. Marketing head and his team were on looking after them well. They were taken to a sightseeing tour. Marketing head submitted all the bills of expenses. Vishnu examined them and raised the following queries:
1-The bills do not have details of guests with names.
2-Liquour expenses not permissible.
3-Mere Four Taxis bills were unable to justify the numbers of guests.
On getting informed by Vishnu, Marketing Head came to his seat. Vishnu returned the bunch of bills to him and advised that all the queries should be removed. Little discomfortable, marketing head said that he will get the covering page (Summary of expenses) of the bunch signed by the financial controller. After sometime marketing head returned back and pushed the bills bunch on his table. He asked authoritatively, “Now release the payment”.
Vishnu saw the bills and said,” sir, mere signature on summary of expenses will not suffice. You know the policy. All bills have to be approved with the note that “approved with policy deviation as special case”. Kindly get it done. Also mention the names of all the guests also, who were on sightseeing tour.”
Marketing Head felt bad about requisitioning the bills expenses. He uttered, “You are not bigger than your boss and director.” I am not going to get it signed again. Now it is your problem, go and get it done from anyone you want, but I want payment to be released by today evening. You are in habit of insulting everyone, do you think everybody in the company is dishonest and you are the only one holy cow here?” His tone was little loud.
Vishnu simply pushed the bills again towards marketing head, who was standing in front of his seat and said, sorry sir, it was not his job. If you want payment, kindly get it done.” Probably marketing head could not bear this. He roughed him up, hit at his legs by shoes and said in a loud voice, “how dare you to return the bills of a senior manager? Don’t forget you level. You are nothing, but a small clerk. How you can misbehave with me like this. I can show you the door just now.”
Vishnu lost the temper. He stood up, thrown the bills on his face and physically pushed him away. Seeing the situation, other staff sitting along, intervened, kept both aside and requested to both to keep the volume low and don’t low down to physical assault on each other. Whole atmosphere was charged. Marketing head went back. Vishnu continued shouting,” I know the reality of these bills. He is dishonest. That’s why he doesn’t have courage to get it signed on all pages. All are siphoning the money from company on false bills.”
After sometime, Vishnu was called by financial controller in his cabin. HR head was also sitting there. Matter was to be resolved. While going to FC cabin, everybody could see the shoe impression on his black pant. By evening, it was heard that Vishnu was suspended and disciplinary proceedings against him was under consideration.
Questions for Discussions and Solutions
1) How you assess the role and behaviour of both marketing head and Vishnu in this case? Who was at fault and why?
Vishnu being the introvert person that he is and going by the rule book all the time was justified in his actions. He tried to be act in a dignified and professional manner and befitting in a way that the company would expect him. Vishnu infact felt that now he had the support of the Financial Controller after resolving the issues raised by external auditors w.r.t. earlier bill payments and their one to one discussions and also subsequent framing of a revised policy wherein only two senior personnel were authorized to approve payments in deviation cases. Hence Vishnu was justified in his role and behavior and he had always maintained it that way even though it came at the cost of his PMS ratings, increment amount and career progression.
The marketing head probably being responsible to get new business by taking proper care of the company’s potential customers didn’t care for the rule book or company’s policies. He only wanted things to be done his way because he was getting business for the company. But it doesn’t work all the time. A company who is serious about its systems, processes and policies and knows that Finance has to be strictly monitored or controlled because that is the only way it can survive, sustain and grow will not allow such leeway expenses to be approved without proper justification or a business case related to it. The marketing head should have checked with his finance counterpart on the expense policies before embarking on lavish expenses for the company’s potential customers. A little bit of common sense on part of the marketing head could have avoided the entire situation.
2) Was marketing head justified in hitting at Vishnu’s legs in the wake of provocation given by Vishnu? How marketing head being senior could have handled the situation in a better way?
Absolutely not, physically abusing someone doesn’t justify the actions especially if you are in a senior most and leadership level position which in this case is the marketing head. People look up to you for command and respect as a leader but if the marketing head starts verbally abusing his subordinates trying to show them as to who’s the boss and even gets physical in certain scenario’s, then he is not fit to be a head for any position in any organisation. Leadership and people management skills matter at a certain seniority level and not just technical skills alone, no matter how good one maybe at it. Ability to get along with colleagues, work together with them and not just by authority and use of force do matter a lot in 21st century times. BOSS culture just does not work any longer.
3) Do you think that Vishnu being junior was right in arguing and becoming physical with marketing head and not heeding to his advice and instructions?
Yes, Vishnu was right to some extent. It’s not being junior or senior when it comes to following company’s rules, policies and processes. They are meant to be same for everyone. There can’t be two different yard sticks for measurement for two different people in the same organization. And Vishnu was ultimately responsible for all payables for all internal and external stakeholders. Vishnu was also liable to answer to external auditors for payments made by him to the stakeholders. Also Vishnu was comforted by the fact that he had the Financial Controller’s backing incase of deviations from policies for making payments & the fact that a revised policy had also been made to that effect.
However inspite of all this, the Marketing head wanted to have his way. He wanted to circumvent the rules in his favor as he was not used to following policies. When Vishnu pointed out what was right and what needed to be done, the marketing head did some patchy work to show compliance. Vishnu being the compliant person that he is didn’t accept it. This provoked the marketing head who tried to show him who’s the boss and that resulted in physical altercation between the two.
Ideally,Vishnu should have escalated the matter to his reporting authority i.e. the Financial Controller. He should have stopped there since it was getting out of his control and boundary. Retaliation although a natural human tendency can be controlled. Vishnu should have known that confronting his senior will not work in his favor as the odds were stacked against him. And Vishnu was not a popular person in the organization nor were his performances on paper that great even though he was sincere and loyal. Tactfully referring the payment matter to his superiors for resolution would have helped avoiding the confrontation.
4) Was the management’s action suspending Vishnu appropriate? Had you been in place of HR head, how would you have handled the matter?
No, the management’s action in suspending Vishnu is neither right nor appropriate. It sends out the wrong message to others in the organisation that superiority or seniority will have it’s way and that insubordination to them will not be tolerated.
As HR head, I would have first taken note of all the facts that led to this situation. I would have heard versions of both the parties. Also the HR policies would have served as a guide or reference book when it came to analyzing the situation and determining as to who is right and who is wrong. Arbitrarily suspending Vishnu just because he confronted the marketing head over a matter what he felt was right is not the correct thing to do. He should have been an opportunity to present his version of the case. Also the HR head can speak to his marketing colleague and counsel him as how to handle such situations as he is in a senior position. The HR Head could have also taken views of the Financial Controller before arriving at a final decision as ultimately the matter was related to Finance & Payment.
