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Background

Herd Incorporated is a multi-divisional corporation that is headquartered in Racine, Minnesota. The corporate safety director has an immediate staff of one assistant safety director and an administrative assistant. The position is responsible for 6 plants across the United States. Each plant has a safety manager and a number of safety coordinators depending on the size of the plant and number of employees.

The new CEO of Herd, Mr. Donald Patterson, has taken over after turmoil and company merging. His strategic plan is to develop a nationally renowned reputation as a “green” and safe company. It seems that the issue before the merger was that the company was losing potential contracts due to lackluster safety and environmental compliance efforts. Potential customers were unsure that Herd Inc. could continue to deliver product in a timely manner without interruption and threat of regulatory fines, shutdowns, and turnover.

While searching for a new corporate safety director, two of the plant safety managers had been serving as interim corporate safety directors. Their efforts had shown some local success in injury reduction but little progress in environmental efforts such as energy conservation and recycling.

After a half hearted search for a new corporate safety director, Mr. Patterson contacted a former colleague that had held the position of general counsel and Vice President of Human Resources from a former company, Mr. Joseph Hill. Mr Hill did not have direct environmental or safety compliance management experience but had relied on qualified safety and environmental managers around him. Mr. Hill had served on many national organizations that allowed him to make important political friends in the human resource field, safety professional, and environmental management profession at both the regulatory and private sectors. His contributions to fund raising and awareness helped push several important state programs, federal funding initiatives, and volunteer partnerships.

Mr. Patterson hired Hill, without any approval or input from the current safety managers and offered him a salary of $125,000.00 per year. This was an increase from the old position of $20,000.00 per year. Mr. Patterson informed the executive board that the salary was necessary to attract Mr. Hill and that his expertise was to make contacts and form partnerships with local, State, and National organizations and companies in order to develop a respected reputation in regards to safety and environmental performance.

When Mr. Hill took over the position he appointed Drew Toth, a senior safety manager for Herd to the position of Assistant Corporate Safety Director. This was a nice salary increase for Toth. Toth was known to be the most capable safety manager for Herd, although he was not the senior safety manager. The most senior safety manager was Sara Gilbert from the Tacoma, Washington plant. Immediately Mr Hill created a new position of Assistant Corporate Environmental Director, and hired the former State Director of Environmental Protection for Kentucky, Ms. Helen Abbott. Ms. Abbott, had been instrumental in creating an environmental partnership initiative in Kentucky. She was well known nationally with State and Federal EPA administrators.

Hill and Abbott have been concentrating on forming alliances and partnerships to bolster Herd reputation.

Scenario

One morning around 0900 hours the administrative assistant, Carol Scholl, came in the office to here Mr. Hill, and Mr. Toth shouting at one another from behind Mr. Hill’s office.

Mr. Toth: Joe, you have rarely been seen around the office. I have been managing safety and environmental from corporate. I have implemented the active safety committees at our facilities, reorganized our reporting system, put together a metrics tracking initiative, found medical partners, and updated our emissions inventory reports. For the past 6 months, the success of these initiatives has been met with you getting all of the credit from the Executive Board and in the newspapers! In fact, your new assistant has been even less available! Where is she today?

Mr. Hill: Drew, we have been working on an initiative that will help our corporation get those elusive contracts. It may seem that we are not working and taking the credit, but there are things that you can’t see or have the ability to handle.

Mr. Toth: Joe, I am doing your job, her job, and managing it from corporate. Those contracts will come with performance.

Mr. Hill: Performance is only one aspect of the issue! We must correct what you guys messed up before. That requires work on our reputation!

Mr. Toth: If I do not get a raise for doing your job, then I will resign!

Mr. Toth then stormed out of the office and left for the day.

Later that afternoon, the Governor of Minnesota held a press announcement and recognized Herd Inc, Sara Abbott and Joseph Hill for forming a new environmental management partnership between the State Department of Environmental Compliance and private companies across the State of Minnesota.

Problem:

Use the above scenario to as a guide to identify the root problem of the situation. Using conflict resolution styles or modes, suggest a possible solution for the present situation with Mr. Toth and then propose a leadership solution that would have prevented the situation from developing.