Situation Analysis and Problem Statement
Imagine being Chief Executive Officer of a Fortune 1000 company with projected annual earnings of $46 million dollars and revenues totaling in excess of one billion dollars. However, the company has operated from a status quo position for years, you find that your company sales revenue is quickly declining, profits are uneven, and the ability to retain staff is being negatively impacted. As Chief Executive Officer it is your duty to turn the company 's situation around so as to not loose any ground in the industry. This is precisely the situation that Riordan Manufacturing is currently facing. How would you go about resolving the myriad of problems at hand without losing anymore profits
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Stakeholder Perspectives/Ethical Dilemmas The employees and customers who depend on Riordan Manufacturing are the stakeholders who will be impacted the most, should the company not address the issues that are causing the decline in company 's profits. From the customer 's point of view, if Riordan Manufacturing is not serving their complete needs, there is no reason for the customers to purchase products and services from the company. Employees are the key to a successful company; therefore, if employees are concerned with their compensation and benefits he/she will not work up to his/her full potential.
This type of behavior will significantly impact the company 's ability to generate profits. Some ethical dilemmas that may arise can be a direct result of lack of proper focus, incentives and rewards. This issue can lead to personality conflicts between frontline employees and middle to upper management. This type of ethical dilemma can lead to a collapse of the staff driven infrastructures. From the customer 's perspective, if his or her sales needs are not being met appropriately it is likely that customer will turn to Riordan 's competitors for the same goods and or services. A reduction in staff and or lost of sales volume can severely impact the bottom line profits of the company, which will directly impact the profitability of the investors. Any person considering
The ethical dilemma happened because the leadership within the company
The issue of ethical decision making has become more important in recent years for a variety of reasons. An understanding of ethical decision making in organizations is more significant to the development of organizational science. Managers engage in decision-making behavior affecting the lives and well-being of others. The individual responds to an ethical dilemma with cognitions determined by his or her cognitive moral development stage.
Another limit to ethical behaviour at McDonald’s might be training and discipline within the company. For example, if an experienced employee was selected for a course or was offered a promotion, another employee might find it unfair and discriminative. Similar situation could possibly happen when it comes to discipline, for example a manager would treat employees making the same mistake differently and favour one person more than another. If any of the employees made an official complaint about any of those, it could lead to publicity’s hesitation and bad relations between employees within the company and its suppliers.
There are several stakeholders at Riordan Manufacturing to gather requirements from to provide a clear picture of the final project. The first stakeholder to gain input would come from the Chief Operations Officer, he was the requestor of the system upgrade, is responsible for the budget, which includes payroll. The Chief Legal Officer oversees the legal aspects of the human resources programs. The individual human resources managers within the individual facilities are the stakeholders who recruit and handle benefits for employees. Each facility has an accountant that oversees payroll and bonuses as well as the payroll specialist (Apollo, 2011).
Lowell answers legal questions from his personal knowledge or experience, or after consulting with attorneys Litteral and Finkel. The legal team is working on the directive to move the Hangzhou plant to Shanghai in five years. They need to procure a manufacturing plant, secure a shipping contract with a trucking company, and keep the current barge shipping company. Riordan needs to procure Legal permits from the government, offer relocation to the employees, and obtain a possible office for Litteral and Finkel for short term.
Riordan Manufacturing discovered some problems with their employees; such as an inability to motivate employees and how to reduce the high turnover rate within the company. This was discovered through the Riordan human resources department structure which does not allow employee empowerment and as a result is delaying potential growth due to the unbalanced profits, and reduction in sales.
“Unethical thinking is not just “bad business”; it is an invitation to disaster in business, however rarely (it may sometimes seem) unethical behavior is actually found out and punished” (Solomon, 1997:17) An ethical dilemma happens when an intricate circumstance which often originates from a struggle amongst the moral requirements of two persons.
Riordan Manufacturing is a leader in the plastics manufacturing industry. As a fortune 1000 company, this employer of over 500 employees has not only made an investment into the products that roll off the production lines but most importantly the employees who help produce these products (University of Phoenix, 2013). In addition to the annual salary or hourly compensation these employees receive, Riordan makes additional investments in employees to better their wellbeing inside and outside of work. The complete benefit package offered by Riordan is known as the total
Riordan Manufacturing Company promotes adherence to the compliance plan as a key element in the evaluation of performance of all the officers of the business entity. Employees of Riordan Manufacturing are bound to comply, in all official acts and obligations, with all applicable laws, rules, and regulations, standards of conduct within but not limited to laws and directives of the Federal Government and rules and policies of the company (Heider, 2006). All people seeking employment shall undergo reasonable and vital investigation process. There will be application of due care during recruitment practices to ensure that the individuals seeking to serve within the company have the required level of qualifications. The due care would look into the criminal records, prior employment, and credentials to enable the individuals succeed in their new positions. All recruits will obtain effective and efficient orientation in compliance with policies and procedures.
The ethical dilemma that concerns me the most would be leadership not listening to others and inspiring others in the strategic change process. According to Grand Canyon University (2015), should leadership approach issues that employees are valuable and can help in
(Panza & Potthast, n.d.) Ethics is very important to a company’s success. Ethical behavior can bring benefits to a business. They can attract customers, which can lead to a boost in sales and profits. It can attract the right employees and increase productivity. It can also attract investors and keep the company’s share price high. Unethical behavior on the other hand can damage a company’s reputation and make it less appealing to stakeholders. It could also result in lower profits.
Management constitute amongst major components of a company, organization or a business. As such, management oversees employees interactions with their supervisors and also control of people within a particular organization. Also, it includes critical and ethical decision-making process so as to address various ethical dilemmas experienced by employees while undertaking their respective assigned duties within the company. Ethical dilemmas are hereby to stay as issues usually arise now and then and place a variety of options that bear different repercussions. Therefore, it calls for ethical and critical decision-making skills so as to make the most appropriate option that bears more benefits in comparison to other options presented. While making ethical decisions, it 's substantially important to play heed to a certain ethical decision-making theory. This would enable an individual making the decision to ripe best possible consequences rather than living to regret. Moreover, ethical decision making is typically important in business as making a wrong decision may result not only in huge losses but also poor relationship amongst colleagues and miserable life for employee(s) working in a particular company or business in question.
Ethics involve an individual's moral judgments concerning what is right and/or wrong. Individuals or groups of people are responsible for making decisions in an organization (shaw, 2008). Decisions within the organization are always emanate from the company's culture. However, the decision to act ethically and morally requires an individual judgment. Thus, members of staff are obligated to make decisions that reflect their right course of action (shaw, 2008). This involves rejecting the option that could lead to the greatest short-term gain. The leadership of most organizations stresses the need to adopt ethical behaviors and corporate social responsibility. Ethical dealings can earn the organization various benefits. For instance, it may attract more clients to the business thus boosting sales; employees could be motivated to stay longer in the organization thereby reducing recruitment expenditures. Ethical behaviors could also earn the business a favorable reputation that could attract investors. Categorically, a lack of social responsibility or unethical behavior may hurt the firm's reputation and scare away investors. Sales and profits could fall in the process.
• Managers are sometimes faced with business choices that create tensions between ethics and profits, or between their private gain and the public good. Early 2000s Conditions of Ethical Dilemma • There are three conditions that must be present for a situation to be considered an ethical dilemma. • The first condition occurs in situations when an individual, called the
The ethical dilemma that I would like to focus in on in my business is the ethical dilemma of spouses that are supervisors over there wives. This is a very serious dilemma and should be addressed in yours or my business atmosphere. This problem is unhealthy for a striving growing business and should not be tolerated by any means. From another perspective it may not look as an ethical dilemma, but working in the middle of this atmosphere you can clearly see the unethical practice of it.