Spotlight on ETHICS Job Design: Happy Workers or Higher Profits? A small manufac

Question

Spotlight on ETHICS Job Design: Happy Workers or Higher Profits? A small manufacturer of snowboards and skateboards faces a dilemma. His 15 employees work in loose production teams on cutting, layering, edging, pressing, drilling, painting, drying, mounting, and printing the boards. Job satisfaction is high and there is almost no turnover. But because of competition, the company had small profits for the last two years and he wants to change that. His choice is to ask his employees to accept a significant pay cut, switch to an assembly-line system, or, the most profitable solution, install an automated machine, which would require only 3 workers, making the remaining 12 redundant. All of his employees are married and have children and have been with him for 15 and more years. He feels a strong obligation toward them, but is convinced that a workflow change is necessary. Of what nature are his obligations toward his employees? What is the optimal solution for (a) His employees? (b) His company? (c) Himself?

Explanation / Answer

The solution for the employee issues is that the employees has been satisfied with their job and have been associated with company for so long. This is good thing for the company in long term as it is very difficult for even bigger MNC to retain good employee. The manufacturer shall try to retain all employees.

a)The solution for employee is to think and place them in some kind of useful work and not terminating their services. However if nothing is possible than the redundancy has to be followed.

b) The solution for the company is to adopt the automated machine which requires only 3 worker. However with more machinery in place like adding 4 more such automated machine would require the left 12 employee and would solve the problem so manufacturer can seek more investment.

c) The manufacturer if thinks in short term than adopting automated machine and termination remaining 12 employees holds good for him but in long term having 12 dedicated employees is more profitable.

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