Question

In: Finance

Jessica, a marketing manager of a firm, has a stellar employment record with the firm. When...

Jessica, a marketing manager of a firm, has a stellar employment record with the firm. When her name came up for promotion, the committee responsible for promotions felt that clients would not respond well to a female head, so they gave her a salary hike instead. Can Jessica sue the firm in this case? Explain.

Solutions

Expert Solution

Jessica cannot sue the firm in this case because decision regarding promotion of any employee lie in the hand of management or in the hand of committee. So management or committee can take dest decision for promoting any employee, which is favourable for the firm.

In other words we can say that committee responsible for promotion of the employee hence committee will take such decision of promotion which will maximize overall wealth of the firm or will minimize the conflict amongst the employees of the firm.

Thus as per information of the question, it is given that if Jessica is promoted then subordinates will not respond well hence for overcoming such situation, committee of promotion can deny for promoting Jessica although committee is giving proper salary hike to Jessica which means Jessica has been offerred fair consideration for her services that is why committee have right to promoting any employee who is most suitable for position of head because head play major role and if subordinates do not follow the order of head then firm will not achieve its goals that is why Jessica can not sue the firm for such case.


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