Problem
You are a leader at a pharmaceutical firm that supplies both prescription drugs (e.g., for depression, diabetes, and migraine headaches) and over-the-counter drugs (e.g., for acid reflux, allergies, and antibacterial ointments). Seven months ago a routine FDA inspection of a company drug manufacturing plant found a series of quality control problems. FDA advised your company to investigate and fix the problems promptly. The plant employs 900 people making 20 different types of drugs for the US market.
Two days ago an express package arrived at your office from a woman named Cheryl Smith, a Manager of Quality Assurance at your company. You are meeting with other corporate leaders to discuss Smith's report. In her letter and accompanying documents, Smith reports the following: At the instruction of the Vice-President of Quality she led a team of investigators to the plant. She states that the problems were much more serious and widespread than the FDA investigators had discovered.
Among the problems she identifies are the following:
• antibacterial ointment routinely contaminated with bacteria;
• water used to make tablets routinely contaminated by bacteria;
• erroneous drug dosing mix-ups (e.g., 20 mg doses put into 10 mg pills and vice versa);
• nine different examples of regular, erroneous drug packaging mix-ups (e.g., prescription drugs packaged with over-the-counter drugs, two different drugs mixed together in the same bottles, 25 mg doses with 10 mg labels). Production line errors make these mistakes repeatedly and they are still being shipped to customers.
Smith reports that Chris Brown, the Vice-President of Quality, is aware of these findings and has declined to stop production to address the problems and has not informed the FDA of the nature and extent of her findings. Smith strongly recommends that her findings be reported to the FDA, the plant shut down, and products recalled.
The meeting is called to order and Brown is asked to explain what is going on. He reports the following: (i) The company is aware of issues at the plant and has been working to resolve them quietly and with little or no disruption to production. (ii) The fact that Smith went over Brown's head and contacted the others is insubordination. (iii) According to Brown, Smith is overwrought and emotional and an ideal candidate for being laid off given the reduction in workforce resulting from a recent acquisition. Brown recommends letting Smith go and assures everyone that the problems at the plant are being brought under control. You have met Smith before, and while you agree that she is a sensitive and caring person, you disagree that she is "overwrought." You also believe that she is good at her job.
Task
• Is Smith a disloyal employee for going over Brown's head? Should she be criticized or praised, or something else, for going over Brown's head? Explain.
• What advice would you give your colleagues regarding how to handle Smith's complaints? Do you agree that Smith should be laid off? What, specifically, would you recommend happen next? Explain.
• Should the firm be concerned about what Smith might do if she is laid off? Why, or why not? Explain.