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The basic steps and factors that influence ethical decision making
Ethical business decisions
Ethical business decisions
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Purpose statement
The Purpose of this memo is to inform you of what we would like to do with our company, Chocoholics Anonymous, moving forward. We want to address the plan you proposed regarding firing one of our two managers as well as layout why we think this is not in the best interest of our company.
Your Concern
We understand that your main concern is that the profits of the company are too low, and that in order to fix that you believe we should fire a manager and hire part-time employees. We agree that this will lower costs increasing the profits of the company in the short-run, but we have been looking at the long run as well as our own ethics to come to the conclusion that we don’t want to fire a manager. Your guys believe reaffirms the shareholders’ ideology, which states that the main purpose of the business is to maximize profits (Williams, 2015, p. 80). This practice is not unusual in the business world. A recent example, provided by the New York Times, is when Harley-Davidson started firing its employees to cut down on costs. That helped them triple their profits in one year, proving that this method is effective (Schwartz, 2010). On the other hand, given the fact that only one manager will remain employed we will have to put a lot more work on the rest of our employees. This will make employees unhappy and create more problems for our company in the future. For example, we will have to spend money training new employees and give more compensation to employees for working longer days.
Employee Concerns
As owners we are in charge of the management responsibilities, we think that it’s important to acknowledge the concerns of the employees and look at the situation from their point of view. We have noticed that thei...
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...we will be retaining both of our managers, we will not be hiring any more part-time employees. We believe having more staff in the leader role will help motivate our employees to work harder and accomplish their tasks in the most effective way possible. We will be able to perform much more efficiently and communicate better with more organization. From an article about how to manage employee talent, it stated, “Success in business happens because of successful employees. That being said, strong managers are one of the most critical components of Employee Success” (Suleman, 2013). This shows us that we need the right people in charge to manage our staff to create as much profit as we can. We have seen progress in the last quarter and don’t feel it is ethical to base our decision, to let someone go, off of the results of a quarter during an economic downturn.
Gobias Industries is a company that is seeking to promote diversity amongst the organization and strives to be the best. However, it is seen that the company lacks certain criteria that may negatively impact them to the extent where they would need to shut down their facilities. The main issues Gobias Industries has faced is the harsh conditions employees have to work in that are most definitely safety hazards, Sexual harassment, and low retention rate. It is clear that Jim, Maria, Tracy and most of the employees are not satisfied with their experience with the company indicating that Gobias Industries must do something about it as soon as possible before they decide to leave as well. For this, we have analyzed the three main problems with
The next problem is poor morale. Morale is the job satisfaction, outlook, and feelings of an employee. Right now, employees do not feel secure within the business and are rebelling against it. They do not have a positive outlook for the future of the business and feel betrayed because of all of the people getting let go. The employees right now have a poor morale due to all these factors.
Under his leadership, companies like Scott Paper and Sunbeam-Oster benefited from massive layoffs designed to give the illusion of profitability. This is in stark contrast to what great leaders do during the inevitable downturn. According to Collins, great leaders are looking for way to find and keep great talent, especially during dips in earnings or productivity. The idea of employee-churn to great organizations is paramount to a failure in leadership. When hiring, great leaders “take the time to make rigorous A+ selections right up front” (GTG, p.75) Good to Great leaders take their time with important hiring decisions. It is more important to have the right people on the bus and in the right seats then to have a bus filled with people who do not belong. Letting people who do not belong on the bus comes down to two simple questions: 1. “If it were a hiring decision (rather than a “should this person be off the bus?” decision) would you hire the person again? 2. If the person came to you to tell you he or she is leaving to pursue an exciting new opportunity, would you feel terribly disappointed or secretly relieved?” (GTG,
Listen to your employees. A management team placing value on the concerns or suggestions from your front-line shows your commitment to them and their needs. When an employee feels their employer truly values them, they are happy and engaged. That excitement and enthusiasm is passed o...
The author has chosen companies which hide their flaws from investors. The author does mention about taking right people on the bus but he never mention the nature of these right people. How they are made and how they can be identified. And people need some motivation and money is a big motivator. Less salary can definitely built up regression and frustration in employees. So the author is wrong on this fact. The author should have compiled the book with some novel information and tips to build a great company. I believe the information was redundant and does not live up to the mark. People know discipline, right employees are all part of a successful company. The information in the book can set out much debate and the author might not have right answer to them. Overall the book is average and common on information.
...gree and believe that they could get real results if everyone would consistently apply the company’s principles. I have learned personally in the business world consistency means a lot, all employees should have the same consequences. By letting go employees, managers and executives shows that the rules apply to all levels. It will cause everyone involved to have more respect for the company even if they don’t agree with the decision.
Through out his tenure at Sunbeam,Al Dunlap’s advocated profit by firing many employees and shutting down many factories.If we look at it in the short term ,this approach seems very attractive as it brings in quick short term gains.In the long term ,however, such a decision would not ensure the sustainability of the company. Profitability and responsibility can and should be combined in an ideal world, however it is clear that they are at least partially contradictory. Shareholder pressure should not force a company to make short-term decisions that might be detrimental to the long-term profitability of the company.
Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of its hardest working employees without work. In the 1980’s, twenty-five percent of middle management was eliminated in the United States (Greenberg/Baron 582). In the 1990’s, one million managers of American corporations with salaries over $40,000 also lost their jobs (Greenberg/Baron 582). In total, Fortune 500 companies have eliminated 4.4 million positions since 1979 (Greenberg/Baron 627). Although this downsizing of companies can have many reasons behind it and cannot be avoided at times, there are simple measures a company can take to make the process easier on the laid-off employees and those who survive with the company.
So at first there may not be a huge difference. But this will free the company to focus on products that they know do well in the current market, and allow them to focus on getting that product out to market that are not currently held by them. Also the downsizing and regrouping will change the structure of executive staff, allowing for changes in compensation to be made. Though it is very important for current staff to feel important so they do not leave, the shareholders are important as well. By downsizing we can create a better budget around compensation so that it’s reflective around revenue. This will allow for a more fixed cost, when a company is able to control its compensation around the revenue they could be viewed as a better managed company, which should attract investors in the long run.
...hedule a group discussion or even an off site meeting so that the employees feel that they are in a more comfortable environment.
Learn how to be more supportive of these employees with this book. Tribe of
If the organization succeeds then the employees also succeeds. Employees must see the bigger picture and must feel that they are part of the organization and not just a one man show.
Moreover, the company has placed great significance on open and honest communications with the employees on many levels. Even more, leadership expected a plan that would utilize all human assets in a way that would support the organization’s attitude in servicing customers and employees. As such, they found it important to centralize the staffing initiative in order to maintain the unique corporate culture created in the beginning. Every one of these strategies would be focused on centralizing staffing, brining in the best possible employees, and retaining each on a high
Downsizing is a major issue within corporate America today. Almost daily another company is downsizing their staff. The interesting part about this is that downsizing as a word makes it appear that the company is actually getting smaller or losing business when in reality that has nothing to do with it (Lurie, http://www.geocities.com/WallStreet/Exchange/4280/ch3.htm). Downsizing today has become synonymous with layoff. Generally today when a company is downsizing it is simply getting rid of the people who work for the company while expecting the remaining employees to do more work for the same pay. Yet, when stockholders or potential stock purchasers hear of a publicly traded company downsizing, it's stock prices soar. This is what America has come to. We gain on other people's loss and we call it profit. We don't think about the man or woman who can't feed his or her children. We think about what we have personally gained. If this is acceptable to the American people then it's most definitely profitable and acceptable to businesses. In this way, business ethics are failing miserably against what used to be the American standard of taking care of our own. However, today companies are moving their businesses out of our country for profits (Lurie, http://www.geocities.com/WallStreet/Exchange/4280/ch3.htm). It does not matter that they are making a good living while helping hundreds or thousands of others to make a good living. The businesses want to make more and all of the thousands of those in this country losing jobs end up with nothing. This is one of the many ways that businesses act unethically relative to people. Profit almost always comes ahead of people.
In Today’s world, the composition and how work is done has massively changed and is still continuing to change. Work is now more complex, more team base, depends greatly on technological and social skills and lastly more mobile and does not depend on geography. Companies are also opting for ways to help their employees perform their duties effectively so that huge profits are realized in the long term .The changes in the workplaces include Reduction in the structure of the hierarchy ,breakdown in the organization boundaries , improved and better management tactics and perspectives and lastly better workplace condition and health to the employees. (Frank Ackerman, Neva R. Goodwin, Laurie Dougherty, Kevin Gallagher, 2001)