CEO ignores HR’s action on sexual harassment case

I’m the human resource (HR) manager of a small factory. Last week, I received separate verbal complaints of sexual harassment against a department manager. The complaints were raised by three female agency clerks who reported at least eight incidents in the recent past. The cases were against their 52-year-old boss who is a key executive in our operations. He has invented a key formula for our products and has kept it close to his chest. After hearing the complainants, I immediately informed the Chief Executive Officer (CEO) who told me to ignore the complaints and offer settlements to the complainants. The CEO also told me to request the manpower agency handling them to immediately transfer the two clerks to other companies. Personally, and being a woman, I don’t like the idea as it runs counter to my convictions. What can I do? — Pearly Shell.

Whether you’re a basketball fan or not, you may have heard of Larry Bird — the former basketball great of the Boston Celtics. During a retirement party for Bird, his former coach K.C. Jones told a story that began with Jones outlining a play during a timeout in a key game.

To everyone’s surprise, the coach was rebuffed by Bird, who told his team mates: “Get the ball to me and get out of my way.” The coach responded: “I’m the coach and I will call the play.” Then Jones turned to the players and said: “Get the ball to Larry and get out of his way.”

Can you do a Larry Bird act and rebuff your CEO? Can you convince your boss to allow you to pursue the case because of your convictions? How did the CEO to justify his actions? I hope it’s not management prerogative, which can’t be used to justify ignoring a valid, legitimate complaint.

Time and again, I’ve been hearing executives claim management prerogative whenever a certain policy is attacked by disgruntled employees. Many ignorant executives are addicted to that phrase, simply to get out of having an intelligent exchange of ideas. But that’s unwise, a bad strategy if you’re determined to maintain a dynamic employee relations program.

MORAL CONVICTION
If your management thinks that it has made a robust and reasonable decision, then ask for an explanation. If the CEO can explain it well, I don’t see why you and the complainants should not understand. It’s a tricky situation. The department manager has a key trade secret in his hands. If the CEO dismisses him, it could also spell the demise of the business as he appears to be the only one who knows the formula.

How indispensable he is is not clear in your question. But if that’s the case, then the settlement with the complainants and their eventual transfer to another company could be the best solution.

Clearly, there’s a clash between your views the CEO’s. Is there a way you can reconcile them? Try to understand the CEO’s position. It appears he has no choice given that terminating the manager could spell the demise of the business. The bigger issue here is the survival of the organization that relies on the formula of the inventor-manager.

If you agree with that, the only remaining challenge is how to convince the complainants to accept the settlement. Much may depend on the amount on offer. You need to consult a lawyer on how to go about this, even if the factory has no employer-employee relationship with the agency workers.

Your lawyer should be able to determine the legal approach. With or without my advice and that of the lawyer’s legal opinion, I’m advising you keep the matter in confidence and do the same thing with the complainants and the agency management.

MANAGEMENT COMMITTEE
If you’re successful in putting this issue to rest, find the time to introduce another executive layer before another difficult case reaches the CEO. That would be a key step so similar incidents in the future do not always fall on HR’s lap.

Wait at least six months before you make a recommendation to create a Management Committee (Mancom) to handle personnel matters, including promotions or transfers but also disciplinary cases, regardless of the personalities involved.

If your CEO asks you for the reasons behind your proposal, it’s best to say that it’s a common practice in many organizations, big or small, regardless of industry. Then admit that you’ve been thinking about it for some time, long before the sexual harassment case happened. The CEO may see through your motives, but generally, it could help you navigate a similar storm in the future.

It’s better to prepare answering those “why” questions instead of “what” and “how” because it opens up to a higher level of interaction with people. If you want to excel in HR and be respected by everyone, don’t take the easy way out by being a “yes” man or woman to your boss.

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