A Case of Sexual Harassment
NANCY'S PROMOTION

by
M. Quinn

Nancy Collins is twenty-seven years old, and has a B.S. Degree in Marketing. She has worked four years as a Commercial Lending Specialist for a local bank (18-21 branches) headquartered in Anaheim, California. Her office is in the Headquarters building. Her boss is Bill Masters, who heads up the Commercial Loan Program.

Nancy is single, attractive, dates a lot, has lived with one young man for six months, and has dated two young men with the bank. From time to time she has had drinks after work with some of the Headquarters' gang at the favorite hangout called Richies.

Her career is progressing very nicely with the bank, and she is considered a bright young comer. Her forte is pressing loan applicants, in a nice way, for back-up information, thus enabling her to build a very sound spread-sheet upon which to base a loan decision. This thoroughness has resulted in Nancy's having a very low loan loss ratio with only one unjustified loan loss. This good loan loss record has resulted in Nancy's receiving above average or outstanding ratings from her boss Bill, and therefore receiving relatively large raises. She is now a Grade 22 and is close to the top of the range at $47,000. Unknown to Nancy, Bill is retiring in two months.

Nancy has a beautiful condo in a beach city which unfortunately costs $1500 a month with mortgage, taxes and insurance, leaving $1000 a month for food, clothes, car payments, and incidentals. Nancy doesn't like to think about the car payments, $400 a month for a new Acura. "Darn it all," Nancy thought, "I struggled to put myself through college doing bookkeeping and waitressing 20 to 30 hours a week for years, and I deserve some rewards for being the first member of my family to get a college degree. However, the cash flow is tight --very tight, and since I'm near the top of my pay range, I can't get much more in the way of raises unless I get promoted or can get Bill to increase the grade of my job."

Sam Weatherby, Bill's boss, stops by Nancy's office to chat.

Sam is 39 and Vice President - Loans. He has an MBA and is considered top management material. He is single (divorced), and dates a lot. Top management considers Sam to be very promotable and a potential President or Chairman - C.E.O. His assignments have been carefully chosen to provide Sam with strong developmental opportunities. It is considered a good bet that Sam will be President within the next five years or so. His performance evaluations have been consistently outstanding. His job grade is a 29.

Sam has to choose Bill's successor, and is pleased with the fact that he will make the choice and not have a person thrust upon him by the President which is the usual practice within the bank. Sam rightfully considers this prerogative as a sign of his political strength with the higher ups. He feels he has earned this privilege by in part working very hard, by being suitably deferential, and by not making attention-getting mistakes.

Sam has had his eye on Nancy as a potential successor to Bill. She has a good performance record and is highly regarded by Bill. Sam also appreciates women and has noticed Nancy as a potential date. He has considered asking her for a date in the past but is concerned with appearances.

Sam settles into a chair in Nancy's office and tells her that off the record Bill is retiring in two months and that a replacement has to be found in the near future. Sam said that he wants to replace Bill with someone who will mesh with his working style and personality and who will be absolutely loyal. He said he is sure that Nancy could meet the technical requirements of the job, but he would like to explore their potential for working well together.

Therefore, since they are both going to the bank off-site meeting for officers on Saturday, October the 19th in Coronado, Sam told Nancy that he had made room reservations in a hotel in La Jolla for Friday the 18th, and dinner reservations at the hotel for that evening. Sam and Nancy could drive down to La Jolla together Friday and explore their potential for working together without the distractions of the other people who will be staying the night in Coronado. "Our staying at La Jolla should be confidential since some people might assume that I have already decided to appoint you to Bill's job. Therefore don't tell anyone about the plans for Friday, O.K.?"

Nancy said yes, but she might not be able to go down to San Diego Friday because of a loan meeting scheduled for 3 p.m. that Friday.

Sam said, "No problem, I excuse you from that meeting. So it's agreed, I'll pick you up about noon that Friday and we'll drive down. See you later, I have a meeting to attend."

Nancy sat in her office trying to sort the situation out--was the drive to La Jolla and dinner that night a legitimate attempt to explore her suitableness for being promoted to Bill's job, or was she being hit on--or both. She decided to think the situation over carefully since the promotion to Bill's job was consistent with her career plan and was something she had worked hard for.

She called her friend Louise in Job Evaluation and was told off the record that Bill's job is a Grade 26. Next she checked her Officer Pay Card and saw that the range for a Grade 26 is $52,000 to $64,000.

She thought to herself "If I got the promotion, I would get an instant pay increase to at least $52,000 a year which would help the cash flow situation."

Nancy called Bill and asked him if she could discuss an urgent problem with him. He said, "Sure, come on in."

Bill Masters is 62 years old and has been with the bank for 42 years, working up from Teller to Manager of Commercial Loans, a job he has held for the last five years. Bill is married, and is planning to retire in two months, although at Sam's request the announcement has not been made. Bill is a solid citizen, friendly and outgoing, but cautious. He progressed as the area grew from orange groves and cattle farms to light industry, shopping centers and crowded suburbs.

He is considered an astute politician, and believes that to get along - you go along - don't make waves. He demands loyalty from his subordinates and considers Nancy to be both loyal and an outstanding producer.

Nancy told Bill what was on her mind--that Sam said Bill was retiring in six months and that Sam was pressuring her to drive down to San Diego with him, go to dinner with him at a hotel in La Jolla, and stay that night at the same hotel in order to explore the potential of their working well together. She felt that if she does not meet this request she will not be considered for promotion to Bill's job.

Bill said, "Wait a minute - this meeting didn't happen - my leaving is not to be made public now - that's what Sam wants - I didn't hear you say that." Nancy says, "O.K., but I had to talk to you because I need advice from someone I trust because Sam's behavior could be interpreted as sexual harassment." Bill said - "Wait a minute, that is a very serious statement - I didn't hear that - I must tell you to watch your step. I didn't get where I've gotten in the bank by making waves or picking fights and you better not either. If you do take my job, you will be expected to handle problems without making a mess and be loyal to your boss, not fight him."

That evening Nancy had dinner with Elaine, one of her girlfriends.

Elaine is 32, single, and a real estate broker. She is a person Nancy can talk to about job problems because Elaine doesn't gossip and she is a good listener. Over dinner Nancy told Elaine about Sam's proposal. Elaine laughed and said that Sam is pretty transparent. She asked Nancy to describe Sam, his qualifications, his looks, his prospects and the likelihood of making a commitment.

Nancy told Elaine that he is an attractive, charming man.

Elaine said, "Of course you could deflect his proposal by dreaming up a prior commitment." Nancy said, "Yes--that's a good idea, I'll just tell him that I can't go to San Diego that Friday since I have a family get together" (which she had earlier decided not to attend).

At 8:05 the next morning, Nancy left a message with Sam's secretary, Marge, saying that she must attend a family get together Friday the 19th, and therefore would have to drive down to San Diego on Saturday. Nancy then left to spend the rest of the day calling on customers.

When she returned to her office at 5:30 that evening she found a note from Sam which said, "Urgent, call me."

She called Sam. He said "Nancy, since we can't get together in Coronado it is essential that you meet me for dinner at Tambolini's Restaurant in Beverly Hills tonight at 7:00." Nancy agreed to this.

Dinner was very pleasant, and there was no talk about the possibility of Nancy's being offered Bill's job. After Sam paid the waitress, he said, "Let's get some dessert at a great little ice cream parlor in my neighborhood; and we'll discuss Bill's job."



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