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New Recruits Perfunctory Perceptions: The Managers Apathy

New Recruits Perfunctory Perceptions:


The Managers Apathy
Right perception is very important for an individual as ones reactions to things, people and
happenings are based on ones perception. In organisations, it is important for the employees to
have a positive perception of their jobs and managers to have the right perception about the
employees. At times managers will have to make judgments about their subordinates. The judgment
has to be unbiased or else both the individual and the organisation may become victims of their
prejudices. And if the manager doesnt give much importance to the facts, he would easily fall
prey to his misjudgements. The head of the Hermes-Nakata Finance Company (HNFC) had to
judge his new recruits.

The Perceivers Paradigm


Damodar Dhoot (Dhoot) was quite happy when he heard from his secretary, on the fine morning
of January 13th 2009, that four new recruits were hired for his Delhi office. All were from prominent
management institutions, and two of them had 1-year work experience each. It was great news for
him. Once his work was over in South India, he would go back and join them. He was sure that he
would make the consumer finance division the best in the companys portfolio with the help of the
new recruits. In consumer finance, knowing the pulse of the customer is very important .To achieve
his plans, he was keen in finding the right mix of new employees for his organisation. He believed
that only if the employees personal value set matched with that of the organisations values, would
there be benefits for both the parties.
Dhoot had completed his MBA in 1986 from one of the global elite business schools, when a
masters degree in management was considered a good qualification for employment. He was from
a middle class family, worked hard and dreamed big. Though he got opportunities in foreign countries,
he wanted to work in India. In the initial years of his career, he worked in the sales department of

This case study was written by Vivek M. and Vara Vasanthi, under the guidance of Dr. Nagendra V. Chowdary, IBSCDC. It is intended
to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
The case was written from generalised experiences.
2009, IBSCDC.
No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever
without the permission of the copyright owner.

Background Reading: Chapter 5, Perception and Individual Decision


Making, Organizational Behavior, Stephen P. Robbins, et al., (12th edition)

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New Recruits Perfunctory Perceptions: The Managers Apathy

Fortune Art (FA), a finance company based in Delhi. With his positive attitude towards work and
colleagues, Dhoot became very popular in the company. His straightforward nature was acclaimed
by his senior colleagues and soon he was promoted to a managerial position.
When Dhoot was working as the senior manager in FA, he got an opportunity to work at HNFC.
HNFC is a multinational company, which was formed when the Japanese conglomerate, Nakata and
Company had come to India in 1999, after its merger with German Banking major, Hermes. To
establish their Consumer Finance division, HNFC was looking for efficient people with enough
exposure in Consumer Finance industry. HNFC did not have to think twice about selecting Dhoot for
their Consumer Finance division in India. He was appointed as a senior manager and in 2007, he took
over as the head of that division.
In 2009, when new managerial candidates were interviewed, selected and given the induction
programme in Delhi, Dhoot was in Tamil Nadu as a part of the companys expansion plans to the
South Indian states. He was sure it would take a minimum of 4 months to set things up there. In his
absence, senior divisional manager Arun Srivastav (Srivastav) had assured him that he will take the
new recruits through the induction programme and by the time Dhoot returns, they would be ready
to work with him. Dhoot was more than happy and asked Srivastav to convey his best wishes to the
new recruits. However, he wondered whether the new employees would fit in the organisation.
All the four candidates Regan Immanuel (Regan), Mohammed Basheer (Basheer), Manohar
Kamath (Manohar), Biju Ganeshan (Biju) were interviewed by Srivastav. As per Dhoots instructions,
he had tried to evaluate each interviewee based on three things communication, leadership skills,
and ability to adapt to new situations. Srivastav found only four candidates fitting to the criteria, and
all the four were asked to join the company in a week.
Regan is from a conservative Christian family and strongly believed that only if he gets a good job
he could improve his familys financial status. He had completed his education after facing a lot of
financial troubles. He had struggled to get an educational loan to complete his higher education in
management from one of the topmost institutes in India and topped his class in the final examination.
He revered his work, believed in treating people with dignity and respect and worked to develop a
positive attitude towards things around him. HNFC was his first employer. Though he had an experience
of 4 months with one of the insurance majors in India, it was negligible and he believed he did not
learn much from there.
Basheer was from a rich family. After completing his graduation, he was sent abroad to do his
higher studies in management. He did not put much effort in his studies, but somehow passed out and
came back to India. His father had even secured a job for him in one of his friends organisation,
which happened to be a franchise of a multinational mobile company. Being from an elite background,
Basheer had superiority complex. He believed that no one can match him and treated people with
indifference. He considered even his senior colleagues inferior to him. He had decided to change his
job and find one, where he could get enough time to nurture his personal business, which he started
the previous year. HNFC seemed the right place for him. He did not know that if he had not left the
earlier job, he wouldve been forced to resign.

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Manohar was from a business family and was very ambitious. He could have joined the family
business, but was more interested in developing a career outside it. He believed that if his colleagues
do well he would be considered a low performer, only through outperforming others one can achieve
success. In his 6 months summer internship programme with one of the automobiles majors, he had
surpassed the target set for him. Though he was highly competitive, he was unpopular among his
colleagues due to his negative attitude towards them. He was never friendly or easily approachable
to his colleagues. He joined HNFC so that he could still keep in touch with his bosom friends and
enjoy his high profile party life.
Biju was from a well-educated family and he treated people with respect and empathy and could
view things from others perspective easily. He had completed his MBA from an eminent international
business school and had worked as a marketing executive with a well known pharmaceutical company
in India. Because of the pharmaceutical industrys nature (a marketing executive in the pharmaceutical
industry has to be very friendly and polite in his dealings) and his efforts, he could easily make
friends. His colleagues and superiors were also happy with his performance. As he specialised in
finance during his MBA, he wanted to build his career in financial services sector and chose HNFC
as it was well known for its employee-centred approach. In HNFC, promotions were based on
performance (not on the seniority) and deserving candidates were promoted in a short span of time.
The only common thing one could find in all four was that they were extremely happy about their
selection in HNFC, but for different reasons. Their training was carried out by a very experienced
person,Vikrant, who had been with the company right from the start. Srivastav had introduced him
as a veteran in the consumer finance field. However, Basheer and Manohar got annoyed when they
came to know that Vikrant was there to assist them, and that he was not a manager. They thought it
was unnecessary to talk or listen to one who does not hold a managerial position. The fact was that
Vikrant had trained a lot of managers every year and knew the intricacies of the managers job very
well. Regan and Biju patiently listened to Vikrants explanation about the procedures of loan sanctioning,
the process and functions of the manager. Basheer and Manohar, on the other hand, preferred to
ignore the insights provided by Vikrant. They both believed that achieving targets is the only thing
they had to take seriously.
The training session was not the only thing that demotivated the new recruits. The work profile at
HNFC was not what they had expected it to be. The marketing managers had to work closely with
the low profile loan boys, who actually sit in the dealers shop and woo the customers to purchase
goods on loan, and the roaming executives, who verified the personal data of people who apply for
loans and increased the number of dealers. Only if the manager maintained good relations with these
people, would he be able to achieve the targets and further his career.
When it was time for assigning responsibilities, Biju and Regan were made in-charges for business
in North and South Delhi respectively. Basheer was in-charge of the Eastern region (Delhi) and
Manohar that of Western region (Delhi) (Exhibit I). They were asked to visit all the dealers in their
respective regions, talk to the loan boys and direct them to increase the business. They were given
a list, which contained the names and phone numbers of the dealers and loan boys as well as the
sales figures for the past month. The targets for the managers were set according to the number of
shops in the region, but only after consulting them. The working time of the office was from 9:00 am
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to 5:00 pm. Managers were supposed to report in the office first and then proceed to their respective
regions and by 10:00 am, they were supposed to be in the field. They were also expected to take
additional effort in order to achieve the goals.

Exhibit I
Manager

Region

No. of Shops

No. of Loan Boys

No. of Roaming Executives

Basheer

East

100

100

20

Regan

South

90

90

18

Manohar

West

90

90

18

Biju

North

80

80

16

Regan started visiting the shops from morning and interacted with his team members very well.
The members found him quite good in understanding and assured that his guidelines and suggestions
would be followed. He also talked to the dealers and tried to instil confidence in them. He covered 26
shops in his region and tried to contact some of the roaming executives too. He asked them which
shops gave maximum customers and tried to analyse who were the profitable dealers. By the time
he finished it all, the time was 8:00 pm. He didnt feel that he has over worked and felt rather happy
about accomplishing the task given to him. He called Srivastav and explained about the progress
being made.
Manohar, on the other hand, did not find it interesting or important to be friendly with the loan
boys. He went to the shops, spoke to the dealers and asked about the performance of the loan boys.
Whenever he received a not-so-satisfactory feedback, he shouted at them and threatened to remove
them from the job if they did not perform well. Neither did he give them tips to increase sales nor did
he treat them well. By 6:00 pm, he covered 17 shops in his region. He did not try to meet any of the
roaming executives but called some over phone and instructed them to do well. He called Srivastav
and informed that he has visited a few shops and complained that his team members were not
competent enough. Then, he went back home, freshened up and rushed to the party that he was
getting late to.
Basheer had enough leisure time in his previous organisation and he expected the same from his
new organisation. He talked to the dealers and spent more time in each shop chatting about business
and boasting about his family and his accomplishments. He did not care about the loan boys and did
not talk to any of them, as he did not think they were important. On the contrary, he asked the dealers
to make more sales through their loan facility and offered them commission if they do so, to which in
fact the company wouldnt agree. He neither met any of the roaming executives nor tried to talk to
them over phone. He stopped his work exactly at 5:00 pm, but called Srivastav at 6:30 pm telling him
that he has completed the days work. He could finish visiting 18 shops only. As he had his personal
business to manage, he was attending phone calls even while talking with the dealers. Many of the
dealers did not like his behaviour.

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Biju went to places where shops were clustered and talked to the loan boys as well as the dealers.
Since he had an experience in pharmaceutical marketing, he knew how to please people. He also
appreciated those loan boys who achieved higher sales and thanked the dealers for their contribution.
He gave tips to the team members to increase sales and attract customers. He also requested the
dealers to direct more sales to the loan option as it would be beneficial for them. Dealers found him
convincing and the team members too were happy. By 6:30 pm, he covered 30 shops in the list and
immediately called Srivastav to inform the developments of the day. Srivastav felt happy after receiving
calls from the new recruits, they all have worked to his expectation. Or so he thought!

Being Judgmental
It took another 3 months for Dhoot to come back from South India. He had successfully completed
his mission of expanding HNFC to South India. Though some of the most experienced people were
selected as the heads of each state, Dhoot had taken additional care in selecting the managerial
candidates. He had looked for the right attitude in the candidates. After appointing new teams in the
main cities of South India, Dhoot had been travelling all over the region to evaluate the new recruits
performance. He was happy that all the new recruits were passionate about their job, wanted to
build a career in the sector, and were time conscious and honest. He wanted to make sure that the
employees fit into the organisation. Dhoot always believed that honesty and timeliness are the twin
requirements to be successful. He insisted and obsessively checked whether the employees are on
time at work and frequently asked them work related questions to ensure that they were honest. He
was a man of high values. He had never tried any unethical practices for personal or organisational
gains. He treated everyone with respect and courtesy. But he never allowed anyone to underestimate
him. He took strict action against people who mistreated their subordinates and involved in unethical
practices.
It was in the beginning of May that Dhoot returned to Delhi. He had a lot of expectations about
the new recruits in Delhi, as he found their South Indian counterparts highly competitive. But he was
also worried about the fit of the new recruits in the organisation. This was the first selection procedure
he had ever missed and that had already made him a bit uneasy about the new recruits. As soon as
he reached Delhi, Dhoot called up Srivastav asked him to arrange a meeting with the new recruits
and told that he needs to talk to Srivastav before the meeting.
By that time, most of the recruits more or less were able to achieve their monthly targets. Only
Basheer had a problem in achieving the targets. He had achieved the monthly target only once in 5
months. Only Regan and Manohar had achieved their targets in the first month. Biju had reached
near the target missing it only by a small number. But Basheer had complained to Srivastav that he
is unable to achieve the targets because he had more stores to manage. Srivastav had tried his best
to convince Basheer that the target given to him was low and that he can easily achieve them next
time, to which he had hesitantly agreed. Srivastav also informed Dhoot that some of Manohars
team members had left the job. He told that for the months of February, March and April, all the
three recruits Regan, Manohar and Biju had achieved the targets and two of them Biju and
Manohar had surpassed the targets. Dhoot seemed happy about the performance but remained
silent, listening to the details carefully.
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As Dhoot spoke to the new recruits in the meeting that followed, he made all his expectations
clear. He wanted his people to be punctual as time once lost, can never be gained back. He told them
about the importance of achieving targets and treating people well. He believed that the loan boys
are the face of the company and they should be treated and guided well. While talking to the new
recruits, Dhoot asked them about the developments and the following conversation took place.
Manohar: So far, we have done well. You can see the results.
Dhoot:

Manohar, I am not saying that you have not achieved the targets. But I dont believe
in the end justifies the means theory. When it is finance, when we deal with money,
the means too are equally important.

Manohar: My team members are not that competitive. I have to shout at them to get work done.
Dhoot:

There are better ways Manohar! If you do not know, I shall explain to you.

Manohar: I have learnt team management well. I can deal with this.
Dhoot:

Good then!

Biju:

They are good enough; all they need is a bit of grooming.

Regan:

I too think so.

Dhoot:

And how do we do that?

Biju:

Every time you meet them, give them some tips. Tell them how to treat customers,
etc. That should do.

Dhoot:

I hope each one of you are doing that. Any other issues?

Basheer: Some of us have to work more than others as the number of stores is more in the
region.
Manohar: Everyone knows you are the one. But you get a minimum of target. Dont complain
like children.
Dhoot:

All right gentlemen, lets stop arguing over simple things and get back to work! You
shall call me in the evening once you complete your work. Thank you.

After the meeting, Basheer felt that he was ignored even when he had been managing more
shops than others. He also felt that Manohar was trying to insult him. Manohar did not think of any
better ways of treating the team members and he was happy that he could tease Basheer in front of
others and the head. But he was annoyed about the treatment of his team members and thought
Dhoot is considering him incompetent. .
In his previous job, Basheer had done the same. He never adhered to the companys time
guidelines, but achieved targets. Though the achievements were because of the good brand image of
the company, Basheer had associated his success to his managerial abilities. Manohar too, during his
summer internship programme, was not given strict guidelines about maintaining time schedules to
the work. He worked whenever he liked, but made it a point that he achieved his targets by whatever

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means. Regan and Biju simply continued what they were doing. But Biju grew conscious and felt
that he should strictly adhere to the rules and remain punctual. His manager in the previous organisation
had also given him similar ideas and guidelines about the work. Regan remained calm, as he did not
have any previous work experience. He believed that he was doing his work well and was punctual
to his work.
Dhoot was not so happy with the new recruits in the first meeting. He found that the new recruits
lacked certain qualities, which he found in those teams that he appointed personally in South India.
There, the new teams were performing extremely well and did not raise complaints over silly things.
However, being optimistic, he thought that things would get better here too. But he decided to check
on the performance of the new recruits.
Dhoot had asked the loan boys to keep a timetable in which they should note the time of their
managers arrival to the store and asked them to give their feedback on the managers. He decided
to speak to each of the new recruits separately. He also asked the new recruits to call him directly
to report once they finish their job everyday.
Dhoot called Basheer the next day and asked him to meet him after completing his work by 6:30
pm. Basheer was irritated at the request. He had agreed to meet some of the clients of his personal
business in the evening that day. He didnt know how long it would take. He asked Dhoot if he could
come the next day and meet him. Dhoot was not happy with this plea and asked Basheer to meet
him on the same day. Basheer cut short his work, went to meet the clients in the afternoon and by
evening finished his work. He did not try to contact any of the dealers or loan boys. By 6:45 pm, he
was there in front of Dhoot.
Dhoot:

Good evening, Basheer.

Basheer: Good evening, Dhoot.


Dhoot:

Did I disturb you by asking you to meet me this evening? I have some concerns and
really needed to talk to you.

Basheer: I had to meet some of my friends today. But I have called them up and postponed it.
Dhoot:

My concern is that being from such a great background, why are you, unable to
achieve the simple targets, which in fact were agreed upon by you?

Basheer: I understand, but the number of shops in my region is more. How am I supposed to
manage all the shops and achieve the targets?
Dhoot:

But others with lesser shops are achieving more than you. How do you justify it?

Basheer: They are doing it because of their luck. Even I have achieved the targets twice, but I
really worked hard to do it. It was no accident.

Dhoot:

Are you saying that now you are not putting in much effort?

Basher:

No, I am working really hard. And I am sure I will achieve the targets this month.

Dhoot:

How do you find your loan boys?

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New Recruits Perfunctory Perceptions: The Managers Apathy

Basheer: I dont think they are important in the business. If we develop a good rapport with the
dealers, we will get more business. We are wasting money on them. We can give
enough commissions to the dealers so that they give us more business.
Dhoot:

We will think of that later, Basheer. Do you think punctuality has got something to do
with a manager?

Basher:

Yes, yes, we have to be punctual in everything we do.

Dhoot:

How do you find your colleagues, Basheer? Are they cooperative?

Basheer: They may be good, but not in the business. They are all bigheaded and I have no
interest in talking to such colleagues. Ive got my degrees from the best colleges, and
I know I am the best. But because of my bad luck, I am unable to achieve my targets.
Dhoot:

Good. Basheer, all the best. You may leave now.

Basher:

Thank you. Dhoot.

After the meeting, Dhoot felt that Basheer has no interest in developing a career in the field and
is simply hanging on to the job. He also found a negative attitude towards work, as Basheer complained
about the number of shops and tried to tarnish the efforts of his colleagues by telling that they
achieved the targets by sheer accident. Basheer had found the meeting highly unnecessary as there
was nothing really important to discuss. Those things could have been talked over a phone, he rued.
After the meeting with Basheer, Dhoot was highly dissatisfied and his doubts that the new team
wouldnt fit in the organisation strengthened. In any case, he had decided to talk to the others too.
The next day, Dhoot called Regan and asked him to meet him by 7:00 pm. Regan readily agreed
and promptly reached the place by 7:00. Regan was upset for the past few days about his mothers
prolonged illness. He appeared gloomy and lacked enthusiasm.
Dhoot: Good evening, Regan.
Regan: Good evening, sir.
Dhoot: How are things going? Is everything fine? How do you find your first job?
Regan: Everything is fine, sir. The job is very good.
Dhoot: How do you find your loan boys?
Regan: They are good, sir.
Dhoot: How do you think we can improve the business?
Regan: By doing our job sincerely.
Dhoot: That may help to sustain the business, but to improve?
Regan remained silent.
Dhoot: Ok, Regan, how are your colleagues? Are they cooperative?
Regan: Yes, sir.

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Dhoot: Right, Regan, you may leave now.


Regan did not understand why he was called by Dhoot. He was confused. Dhoot had considered
Regan highly incompetent by his way of answering and the gloomy appearance. He felt that what
Basheer told about accident might have been true. However, he would finish talking to the other two
before coming to a conclusion.
The next day, it was Manohar who had to meet Dhoot. Manohar had already planned to go for a
movie with his friends and was irritated by the call. However, he went to meet Dhoot. But he was 15
minutes late to the meeting and this made Dhoot a bit angry.
Dhoot:

Good evening, Manohar.

Manohar: Good evening, Dhoot.


Dhoot:

How are things going? Is everything fine?

Manohar: Everything is fine, Dhoot. I have been continuously crossing the targets in months.
And I am sure in the following months too, I will do that.
Dhoot:

Good, Manohar. How do you find your loan boys?

Manohar: They are not good enough. They dont know how to behave and how to treat their
superiors. I have tried telling them in a good way but I find the other way more
effective. Only if you treat people in the right way, will they achieve the desired
results. Loan boys are a highly incompetent class. The only way to get the work
done is to threaten them that theyll lose the jobs.
Dhoot:

Many of the loan boys have resigned from your territory. Do you know why?

Manohar: Should we worry about some low-grade employees leaving the organisation? We
would get hundreds of them around us. I am least bothered if someone of that kind
resigns.
Dhoot:

How do you think we can improve the business?

Manohar: Hire the right people. Pay them well and demand results. Replace good ones with
better.
Dhoot:

Ok, Manohar, how are your colleagues? Are they cooperative?

Manohar: I dont know. I rarely talk to them. I concentrate only on my targets.


Dhoot:

Do you think punctuality is a necessary for good managers?

Manohar: I dont think so. The numbers are important. You should achieve the targets at any
cost. If you can do that you need not worry about punctuality.
By then, Dhoot got a phone call from the chief of HNFC and he moved to the next cabin.
Manohar was getting late and growing impatient. After waiting for 15 minutes, he left the room
quietly and went to the movie. He did not inform that he was leaving. Dhoot was disturbed when he
found that Manohar had left the office without informing him. Though he felt angry, he did not call
him or talk to him. But he felt that Manohar is highly discourteous, impolite and arrogant. Dhoot had
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told in the first meeting that timeliness is very important and Manohar had openly challenged him
now. He understood that even after his advice, Manohar had not changed his attitude towards his
subordinates. Now he would talk to the final one and decide whether to keep them in house or send
them out!
It was Bijus turn the next day. He turned up exactly at the mentioned time, which made Dhoot
happy.
Dhoot: Good evening, Biju.
Biju:

Good evening, Dhoot.

Dhoot: How are things going, Biju? How do you find your new job?
Biju:

Things are going well, Dhoot. My team is performing very well. And I hope we would
improve our performance each month.

Dhoot: Good to hear. Biju, how are your team members?


Biju:

They are doing extremely well. And I keep giving them tips about how to treat customers
and maintain good relations with the dealers. Some of them had troubles initially, but I
have helped them out and now they too are doing well.

Dhoot: How do you think we can improve the business, Biju?


Biju:

I think we should keep trying to increase the number of shops that have a tie up with us.
I have tried to interact with some more dealers in my region and I hope in a week or
two, things will fall in track. Once the number of shops increases, I feel the business will
naturally improve.

Dhoot: Good. Do you think punctuality is a necessary quality for a manager?


Biju:

I believe in being punctual. Punctuality is important, especially in business. If you give


an appointment to a client and later dont turn up for the meeting, there goes your
business. One has to be extremely careful about proper time management and punctuality
if he wants to grow up in his career.

Dhoot: Right, Biju. How do you find your colleagues? Are they cooperative?
Biju:

They should be. Though I have not interacted with them much, I find them friendly,
good-natured and cooperative.

Dhoot: Thank you, Biju. You may leave now.


In Biju, Dhoot saw himself in his youth. He was very much impressed by Biju. Compared to the
other three, he felt that Biju matched with the organisation well. He had achieved his targets and had
the right attitude towards his job and colleagues. However, he was not sure about what to do with
others.
Dhoot had asked questions about punctuality to everyone because he had considered it as a vital
value for any employee. Dhoot was very strict when it came to maintaining time schedules for work.
He had informed to all the teams in South India that being at the work in time is the main challenge
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that employees in India face. He also believed that even if there is a serious matter that needs
employees attention, then he should inform the in-charge and then leave; not simply leave the job in
the middle and go. He was highly dissatisfied with the answer of Manohar and he did not believe that
Basheer or Regan were following the time schedule properly. Only to check it out, he asked the loan
boys to maintain the time schedule of each manager.
After a month, when each one of them called Dhoot after the days work, he asked them
which were the first and last shops visited by them on that day. Regan was on his way to the
hospital when he called, as his mother was not well. He had thought of taking leave but later
changed his decision. Biju and Manohar immediately answered the question but Basheer had to
think. He had completed his work by 5:05 pm and was resting at home. He took the list of shops,
went through it and then told the answer. Dhoot immediately called the shops and enquired about
their time of arrival and departure (Exhibit II)

Exhibit II
Entry and Exit Time
Employee

First shop (am)

Last shop (pm)

Regan

10:50

5:30

Basheer

10:45

5:05

Manohar

11:05

4:55

Biju

09:45

6:30

He had been making enquiries about the new recruits in order to evaluate them. There was news
that some of the new recruits were late to work. He received the reports from east and west and by
the next day, three of the new recruits Basheer, Manohar and Regan received termination letters
from HNFC.
Is Dhoot correct in his judgments about the new recruits? Did he commit a mistake? Did Regan
deserve termination? Did Dhoot forget to consider any factor and get into a hasty judgment?

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