Background of the Case
A large American company has chosen the decentralized form of organization and each manager is measured on the basis profit contribution, market penetration, and return on investment. If one fails to meet the objectives established, it is usually results in demotion or dismissal of center management. By means of anonymous survey, managers revealed that they felt pressured to compromise their personal ethical standards to achieve the objectives of the company.
Point of View
As a student, and with a subject of Business Ethics I can say that business without ethics, people will set their own moral standards, moral rules and moral principles and will result to a kind of subjective morality in which case, what is good for one may be bad for another and vice versa.
November 19, 2011
Statement of the Problems
Certain plant locations felt the pressure to reduce quality control to a level that could not ensure that all unsafe products would be rejected. •
Sales personnel were encouraged to use questionable sales tactics to obtain orders, including offering gifts and other incentives to purchasing agents.
Statement of Objectives
To develop ethical values in business without affecting the profit. •
To establish ethical values among upper and lower executives or managers.
Areas of Consideration
Strengths: Being in a decentralized organization, decision-making is not confined to a few top executives but rather is throughout the organization. Decision making authority often result in increased job satisfaction. Also, lower level mangers generally have more detailed and up to date information about local conditions that top managers. Therefore, the decisions of lower level management are often based on better information.
Weaknesses: Lower-level managers may have objectives that are different from the objectives of the entire organization. For example, some managers may be more interested...
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