Kohl’s Department Store Case Study

Introduction

The story of firing three employees at Kohl’s Department Store for violating its coupon policy resulted in public outrage. To understand whether the company could have handled the situation better, one should consider the process and legal reasons for terminating employees. As Ma (2020) states, relational and political behavior significantly influences decision-making. This paper aims to take a closer look at the firing of three employees at Kohl’s Department Store and analyze if the situation was treated legally.

How could the store have better handled the termination? Should the three employees have been fired?

First, it is crucial to consider whether the employer handled the termination correctly. According to Aamodt (2010), apart from voluntary termination, four other reasons can result in an employee’s dismissal: “probationary period, violation of company rules, inability to perform, and an economically caused reduction in force” (p. 274). Accordingly, Kohl’s store reserved the right to terminate the employees who went against the internal policy; however, the situation could have been handled better. All three women claimed that the rule they violated was not adequately explained to them by the managers. This fact should have been considered before the dismissal was decided. Moreover, it is unacceptable that the store threatened the employees with reporting to the police and with arrest for embezzlement. The company should have offered an apology for the unprofessional treatment of the situation.

Considering the details of this policy violation, termination could have been avoided. It is up to the company to decide the method of settling the conflict. However, a full investigation should have been performed, and clear and safe communication ensured. The employer should have provided proof that an employee broke the rule (Aamodt, 2010). If employees had not been showing poor performance or policy violations, other disciplinary procedures could have been applied, such as issuing a formal warning (Falcone, 2017). Alternatively, a senior could have had an open conversation with the workers regarding the situation, which would have resulted in humane and fair treatment towards them. Kohl’s Department Store did not conduct a full investigation or study whether the management made sure the policy regarding coupons was explained correctly. Instead, the company pressured the employees to sign an agreement to not shop at the store for the following year. Kohl’s did not ensure a proper investigation and treatment of the situation, which means that the reason for terminating employees was not proven as legal.

What could Kohl’s have done to have prevented the situation in the first place?

In the first place, Kohl’s Department Store could have prevented the situation if it ensured the coupons’ policies were clear to the employees. As Aamodt (2010) states, it is the company’s responsibility to ensure that its workers are aware of the existing rules. In terms of legal regulation, this fact must be proved, which was not the case for Rikki Groves and her colleagues, who said the opposite. According to Kagan (2020), unlawful employer’s actions may lead to the employees’ entitlement to some form of compensation. Therefore, the company could have provided the proper training on coupon policies for its workers, avoiding the harsh treatment of the situation that followed.

What could the employees have done differently?

As for the employees’ actions, they could have shown different behavior in the situation. For instance, if Groves, Hagen, and Kombacher made sure their treatment of coupons was compliant with the company’s policy, the conflict would not have escalated. However, Kohl’s response to the violation was not adequate, and, in this regard, the employees could have appealed their dismissal. As per Aamodt (2010), “a rule against a particular behavior must actually exist” for it to result in termination, and the employer must ensure it is explained to the workers (p. 274). Therefore, if no statement that the women knew about the policy details was signed, the company’s decision would not be easily legally defensible.

To summarize, the case study of Kohl’s Department Store is an example of poor management of conflict resolution and employee termination. The company escalated the situation when its employees violated the coupon policy, which resulted in a community outrage and affected its reputation and customer trust. Therefore, lawful regulation of conflicts is crucial, especially in the case of terminating employees, which must be treated carefully and accurately.

References

Aamodt, M. G. (2010). Industrial/organizational psychology: An applied approach (6th ed.). Cengage Learning.

Falcone, P. (2017). 101 sample write-ups for documenting employee performance problems: A guide to progressive discipline and termination (3rd ed.). Amacom.

Kagan, J. (2020). Termination of employment. Investopedia. Web.

Ma, K. You’re fired! Toward a sociopolitical framework of employee termination [Abstract]. Academy of Management Proceedings, 2020(1), 21992.

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