One of your co-op's assistant managers, John Johnston, has just approached you with some concerns that he has about the co-op's general manager, Eric Doolittle. John believes that Eric is not carrying out his managerial duties and responsibilities in a manner that is consistent with the best interests of the cooperative and its members. In particular, John brought up the following issues:

* Eric seems to be spending more and more time away from the office. He presumably is attending meetings on behalf of the cooperative, but John is not so sure. Eric is also calling in sick quite often. The amount of time that Eric is spending away from the office is in excess of what he is entitled to in terms of sick leave and vacation time. As an assistant manager, John feels like Eric is "dumping" more and more of his job on him. Eric has reportedly told John that he is simply delegating responsibilities to him that will better prepare him to move up into the managerial position some day.

* While in the office, Eric seems to be spending an inordinate amount of time reading newspapers (like The Wall Street Journal, USA Today, and The Des Moines Register) and magazines. Eric contends that he is just keeping up on current events so that he can better manage the co-op. Office morale seems low when Eric is around.

* John has expressed his disappointment about his salary to Eric on at least three or four different times over the past two years. Eric has told John that the co-op is doing the best it can for him during these difficult times. In particular, Eric has told John that he cannot pay him anymore without further board approval. John doubts whether or not Eric has really tried to get more salary for him from the board.

John has indicated to you that he may resign from his current position at the co-op if matters regarding the manager don't improve real soon. John believes that other employees may do the same. Although your board has not seriously discussed who the next manager of your co-op might be, you have always thought to yourself that John would be an excellent choice. Eric is scheduled to retire in about four or five years. In the recent past, there have been good working relations between your board and the manager (Eric). The board has generally been pleased with the overall economic performance of the cooperative.

Your board is to select a most preferred course of action from the list of alternatives below. In addition, your board may suggest another alternative.

1. Indicate to John that he needs to work things out himself on matters involving his manager. Explain to John that it is not the board's responsibility to resolve employee complaints. Point out to John that the board is mainly concerned about "the bottom line" performance of the cooperative and not these kind of details.

2. Tell John to stick it out for another few years. Let him know that there is a good chance that he will be hired as the new manager once Eric retires in a few years.

3. Bring John's concerns up for discussion with Eric at the next board meeting. There is a good chance that Eric will get very defensive and, possibly, upset with the board for interfering with his job.

4. Make plans to implement a more extensive and thorough managerial evaluation process whereby, among other things, the board will pay more attention to observing employees to get feedback from them on the manager's performance and, especially, the manager's working relationship with them. Eric may feel like the board is going behind his back if this is not handled properly and, even if it is, he once again may get upset with the board for getting involved in matters that he sees as his jurisdiction.