Department managers in the housewares

Reference no: EM13527000

Suzy Cole and Joe Lane are department managers in the housewares and shoe departments, respectively, for Newmans, a large department store. Joe has observed Suzy taking inventory fro her own department home, apparently without paying for it. He hesitates confronting Suzy because he is due to be promoted, and needs Suzy's recommendation. He also does not want to notify company management directly, because he doesn't want an ethics investigation on his record, believing that it will give him a "goody-goody" image. This week Suzy tried on several pairs of expensive running shoes in his department before finding a pair that suited her. She did not, however, buy them. That very pair was missing this morning.

Newmans recently replaced its old periodic inventory system with a perpetual inventory system using scanners and bar codes. In addition, the annual inventory is to be replaced by a monthly inventory conducted by an independent firm. On hearing the news of the changes, Joe relaxes, "The system will catch Suzy now," he says to himself.

Required:

1. Is Joe's attitude justified? Why or why not?

2. What, if any, action should Joe take now?

Reference no: EM13527000

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