The Roller Coaster Ride: The Resignation of a Star

Case Analysis submission by Manas Parihar

The Roller Coaster Ride: The Resignation of a Star’ is a case study that tries to
highlight informal source of power and dependence within an organization
Stephen Connor is the head of global technology research at RSH and one of his star
analysts Peter Thompson has decided to resign. Stephan is taken back by this as
Peter is one of the most recognized analysts with RSH. He is an integral part of the
ongoing Power Chip deal that is very important for the company. Stephen had had a
word with Peter 2 months earlier when he heard that Peter was looking for
opportunities elsewhere and Peter had assured Stephen then that he had no such
intention. Stephen has come to know that the reason for Peter’s resignation is better
salary being offered by competitor. Stephen is speculative that Peter will take his
entire team with him while joining the new the firm. To tackle the situation Stephen
comes up with two alternatives: give a counteroffer to Peter or find his replacement.
Giving a counteroffer will be synonymous to giving in to black mail. Many senior
analysts in the industry have recently changed their firms due to which finding a
replacement for Peter will be.
Rina Shea is Peter’s junior and has been assisting him since he hired her three years
ago & Stephen comes to know that Rina is also leaving with Peter. Stephen offers
her promotion to senior analyst role and a chance of enrolling for a prestigious 13
week course and a considerable salary hike.
Stephen is inclined towards offering a promotion and other benefits to Rina as
opposed to giving into Peter’s demands but he is doubtful about the reactions of
investors and other channel partners on Peter’s exit. Rina is quite excited about
Stephen’s offer but her loyalty towards Peter is holding her back. Peter is looking
for a way to take control of the situation. He wants Stephen to make him a
counteroffer.
Suggestions:
Rina Shea
It is suggested that she should accept Stephen’s offer. Reasons for the same are as
follows:
•It is one of the best opportunities available in the industry for a person with her
experience. She will be a senior analyst heading a team of her own.
•She will get an opportunity to be a part of special 13 week course on how to become
Institutional Investor
• One of the major drivers for her to change job was higher compensation Stephen
is offering her $ 300, 000 which is much higher than what she will get if she joins
the other firm.
Stephen Connor should not make counter offer to Peter Thompson. He has made an
intelligent move by making a counter offer to Rina.