Human Capital of Sundale Club Case Study Example | Topics and Well Written Essays - 750 words

Human Capital of Sundale Club - Case Study Example The problem at Sundale started when Ted Ellis hired Chuck Johnson to become the Club’s men’s activity manager. Mr. Johnson happened to be a gay person in the closet. His behavior was a bit unprofessional at times apparently and some of the club members complain that he made advances to them. The staff did not like or respect Mr. Johnson. They visualized him as a troublemaker that was harassing the customers. Frank Havens wanted to do something about the impending issues. The problem was that the company did not have a corporate culture that encouraged open communication. Also, the hiring of Chuck Johnson did not follow normal protocols. He was given his position based on his personal friendship with Mr. Ellis. In the business world, there is no room for favoritism. Favoritism causes internal problems because the employees of a company lose respect for the business entity when such behavior occurs. The general perception when these types of things occur within an organiz ation is that hard work does not pay off and there is no opportunity for professional growth for the employees of the company. It is important for companies to encourage open communication between the employees of a firm. A good manager is able to captivate its subordinates by supporting them and leading by example. When employees trust their boss they open up to them and provide them with helpful insight on how to improve the operations.