Schering-Plough was founded in 1971 through a merger. During World War II Schering's American assets were seized, when the war ended, the company's research department had developed numerous drugs, including Chlor-Trimeton, one of the first allergy medicines on the market. (Page Three of Case Study) The product line was not limited to only medications. They also produced cosmetics and consumer needs as well, such as Coppertone and Lotrimin AF.

Schrering-Plough normally employed 500 sales representatives who were assigned to different territories and manage all of the sales activities. The Sales

Managers report to the District Mangers who would oversee 9 to 12 territories, and they were overseen by the Regional Sales Managers. The number of territories would change frequently due to shifts of population. (Page Three of Case Study)

Fred Maiorino started his career as a salesman at the age of 28 with Schering-

Plough in 1956. Fred successfully climb the ladder within the company and in 1984 he was assigned to the South Jersey Sales District which promoted asthmatic products. Fred was well liked within the Medical community. Gerald Novick, a physician, stated, "Fred knows all the secretaries, all the nurses and he could get in and do his business and get out in minutes, while other sales reps would be sitting in the waiting room for hours."

Loren Southern, said "Fred was very effective, he knew what he was talking about and was a pleasure to deal with. If you needed, drug samples, or information on side effects, Fred would get it for you like that."
Not only was Fred making a good living, in 1986

he was earning $40,000 a year and $10,000 a year in commissions, he was providing excellent results for the company and obtained company recognition and performance awards. Fred had achieved Schering's Diamond 110 Club Membership six times. The award was given to sales representatives who sold at least 110% of the annual sales quotas. In 1987 of the nine representatives Fred was ranked at the top of the list.

All was going well for Fred until 1987. Due to changes within the company Fred

was assigned a new boss, Jim Reed. Although Fred was considered to be the top-rated salesman for the company, Reed did not feel this was an accurate assessment. When the six-month performance evaluation came out, Reed gave Fred a "Good" performance record, the lowest ever in Fred's career. It was also the lowest ranking with all of the sales representatives, who were at least 20 years younger than Fred and they received salary increases of 12.7% while Fred only received a 5% salary increase. (Page Two of Case Study). Reed had implemented…