Auto Centers
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From the case of Sears Auto Centers, whether the corporation guilty of wrong doing in this case or is the wrong doing limited to the repair people? From this question, it seem like only Sears Auto Centers was doing wrong from this case. However, if we looking into detail, both parties having wrong, not only the corporate, but also its employees too.
First, from the case, it shows that the internal controls of the corporation are weak. This make their workers have the opportunities for doing fraud. The management department should always make sure that their employees always doing the right things for their duty but not always focus on their sales achieve goals. Besides that, operation manager also need to supervise their employees to make sure case of frauds will be reduce. In addition, Sears Auto Centers also can have segregation of duties in each department. Difference department have it own duty. This can avoid cheating in between the employees itself. For example, the person who checks the components of the automobile is separately with the person who repairs it. This can avoid repair worker overwork for their job.
Secondly, the biggest problem occur in the corporation is based on the compensation. Part of the worker compensation is based on the commission incentive. Which mean their worker needs to meet quotas for a certain number of parts and services in a fixed period of time. Even though this will give the motivation to their worker, but at the same time, it bring the issue of overcharge happening too. Workers may become dishonest to the clients who have less knowledge about accessory of the automobiles.
Lastly, it may be the hiring issue. Sears Auto Centers should be more seriously when hiring their employees. With a better strategies or tools are use when hiring their employees will