Article prepared by C. Clint Bolte, C. Clint Bolte & Associates, Chambersburg, Pennsylvania. For additional information please call 717-263-5768, fax 717-263-8945, or e-mail to clint@clintbolte.com.

Purchasing Incentives Can Be Costly . . .

As wise printing managers are trimming overhead, key staff and line managers are making many decisions. These decisions range from work assignments and overtime approval to purchasing of supplies. Mistakes are inevitably made. But many printing company owners have expressed real pleasure in the initiative and growth of these employees that have been given additional responsibilities. The mistakes are normally inconsequential and are, in fact, learning experiences.

These new responsibilities carry with them to certain outsiders the new title of "Decision Maker". Mail advertisements come directly to these key people at work and even to their homes. An example of one that a number of the pressroom supervisors received reads something like this. "Try a drum of our new solvent, X-Flash. Not only will you be pleased with its performance, but we'll send you a pair of these name brand hunting boots for your trouble."

Your accounts payable clerk, who now purchases all office supplies, receives similar mailings. "Buy 200 of our pens and we'll send you absolutely free 7 gifts." And the rest of the mailing has more color photos of the 7 gifts than it does the pen options. And how about the frequent flyer promotions? Most salesmen for smaller firms make their own travel arrangements. Many hotels and airlines offer "bonus" points if a more expensive upgrade is selected.

Potential conflicts of interest are present and should not be ignored by top management even when the amount of money seems trivial. There are ways to support your employees in their efforts to be honest and to make decisions in the firm's best interests.

First, the company's employee manual should be very clear about the firm's policy concerning employees not accepting gifts from suppliers. Violation of this policy can result in dismissal.

Second, a letter signed by the President should be sent to all agents, suppliers, contractors, and others doing business with your firm. The following is an example:

More employees will consider this reinforcing approach a positive support step rather than an intrusion on their efforts to build a good working relationship with a vendor.

Such precautions won't make a dishonest person honest. But these sound management practices hopefully remove temptations so that conscientious employees can do a better job for you.

Article prepared by C. Clint Bolte, C. Clint Bolte & Associates, Chambersburg, Pennsylvania. For additional information please call 717-263-5768, fax 717-263-8945, or e-mail to clint@clintbolte.com.