RESOLVING ETHICAL BUSINESS CHALLENGES David Hannigan had come far since he start
ID: 357596 • Letter: R
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RESOLVING ETHICAL BUSINESS CHALLENGES David Hannigan had come far since he started working at a subsidiary of Emper Corp., a manufacturer of auto- mobile parts. He began as a line manager after graduat- ing from UCLA four years ago. His skills at maintaining effici accounting and cost information to justify the decision. If they see good, sound reasoning for the action, they'll be less likely to resist and cause trouble. We all need to main tain productivity and efficiency until the new equipment is here. I want the accountants to work o d his repartee with the factor summarv soo and the town news the lowest factory workers seemed to respect David for his that shows why automation is a good idea." caring attitude and his ability to empathize with employ ees. While he made it clear he expected hard work, David you. The net present value and other analyses I did earlier had the ability to make every member of the factory show this plant would benefit from staying the way it is." floor feel like their contributions mattered. He shot up through the ranks and was recently promoted to Director the analyses, you said yourself that the benefits of auto- of Personnel of this subsidiary when the previous direc mation are hard to identify and assign numbers to. You tor retired. In the entire history of the firm, nobody had had to make several assumptions in order to do those moved through the ranks so quickly. David even received analyses. If you change some of your assumptions, you a letter of congratulations from the CEO of Emper Corp. can make the numbers look better. Try a longer useful after his promotion was announced. David was confident life for the new equipment, or change some of the pro- that within a few more years, he would be able to secure high-level job at the corporate headquarters in Chicago.numbers, bring them to me to look at." Jane spoke up once more. "But Stan, I already told Stan countered, "Jane, when you were working on ew He stood up and addressed each member at the table and said, "Remember, if you can pull this off, your yearly bonuses will triple your annual salaries." Stan A few months into his new position, David had lunch with a few key personnel from the company. One of them included Vice President Stanley Martin. Stan began the lunch meeting by praising all of them for their success. Later into his talk, he said, "You all know Emper Corp. wants to increase revenues and give big bonuses to as many employ walked out of the room. David felt uncomfortable about the ould not understand why one of the com He ees as possible, but we need to become more efficient. That ers wO said, corporate decided the amount mation in some num ma our factories, namely this one, needs to be increased: 1 go d. He remembered Wo hearing a rumor that Stan was Newton from the accounting department replied, But the cost and accounting analyses we sent to headquar ters showed it wouldn't be profitable to make changes like ate headquarters. He wondered if Stan was trying to gain favor with those at corporate. Then again, this was n his part. What David really worried that in this particular plant. Why did they pick this one?'" ec obots and all the high-tech gadgets about was what he was going t f they increase product quality and pay for them selves. They think that in the long run, stockholders will t from automation. Anyway, the decision has bee re going to have to sell the work force and the community on the decision." David knew what this meant. He replied, "That won't be easy. Hundreds of people are going to lose their jobs, largest source of employment for this town. Stan's reply was pleasant, yet forceful. "Some of the if they get additional made, and it's our job to make it work. We' mpare an the leadership cha f Stan and David. than implementing Stan's orders. ductivity, what might be some other consequences of 2. Discuss whether David has any alternatives other 3. Even if the automati Stan's decision that could negatively impact the firm? factory people will be able to sta raining, vwe can convii e workers and the people inThis case is strictly hypothetical; any resemblance to real persons, town that the decision was necessary, if we can show them companies, or situations is coincidental.Explanation / Answer
1.Leadership characteristics of Stan and David
David is more of a people oriented leader. He is more concerned with his needs of employees . Search leader influence and inspire their follower by being a role model and displaying character and triats of serving the mankind through his work.
Where I stan is a task oriented leader. He is more concerned with the profitability of company and task that would lead to overall organisational growth.
2. Other than implementing stan order david can discuss the matter with CEO of Emper Corp and discuss why implementing automation will not result in profitability and can also hamper the reputation of company is workers fight back for justice and compensation for lost of jobs due to automation. And also the net present value analysis showed that implementing automation would not benefit the company in future.
3. Even if automation is successful in increasing the productivity. some of the other consequences would be over dependence on automation for profitablily. The worker who lost their jobs will spread a bad word of mouth among the population resulting in depreciation of brand value and goodwill of stakeholders.
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