Ethics Case Studies

Model Answer

1. Organizational Commitment

The PSU has a critical obligation to fulfill a high-priority defense project, which directly impacts national security and public welfare. While meeting this commitment is non-negotiable, the ethical issue lies in balancing this responsibility against the well-being of the workforce, who are critical contributors to the project.

Fact: The project has a tight deadline, and the PSU’s reputation as a reliable manufacturer is at stake. Failure to deliver on time could harm national interests and tarnish the organization’s credibility.

2. Employee Well-Being and Health

The current workload demands grueling 10-11 hour shifts six days a week, causing visible fatigue and demotivation among employees. Prolonging such conditions risks physical and mental health issues, creating an ethical dilemma about prioritizing productivity over people’s well-being.

Fact: Employees are already fatigued, and additional overtime could exacerbate burnout and health problems.

3. Organizational Reputation

While timely delivery is crucial, the neglect of employee well-being can lead to poor-quality output, mistakes, and long-term reputational damage for the PSU, which prides itself on efficiency and reliability.

Fact: Continued employee dissatisfaction may harm the PSU’s standing in the industry and affect future performance.

4. Work Culture and Motivation

An overworked and demotivated workforce reflects a lack of a supportive environment, raising ethical questions about the organization’s commitment to fostering employee morale and well-being.

Fact: Employees are showing clear signs of dissatisfaction, risking further disengagement.

5. Fair Compensation

Imposing additional work without adequate compensation undermines fairness and could demoralize employees, violating ethical standards of equitable treatment.

Fact: The suggestion to increase overtime has not included plans for fair overtime pay or additional incentives.

Conclusion

The ethical issues demand careful navigation to balance organizational obligations with the rights and well-being of the workforce, ensuring long-term sustainability and ethical integrity.

(b) Evaluate the options available to you. What course of action you will take to address the above issue?

1. Distributing Additional Work to Existing Employees

• Merits:
  • Meeting Project Deadline: Ensures timely delivery of the defense products, critical to national security.
  • Fact: This approach maximizes the use of the existing workforce to maintain the PSU’s reputation for timely delivery.
• De-Merits:
  • Employee Burnout: Prolonged overtime can worsen fatigue and demotivation, jeopardizing employee well-being.
  • Quality Concerns: Overworked employees are prone to errors, potentially compromising the quality of critical products.
  • Fact: Employees are already working 10–11 hour shifts, six days a week, showing visible signs of fatigue.

2. Reallocating Resources from Less Critical Projects

• Merits:
  • Project Completion: Prioritizes crucial defense products without overburdening employees.
  • Maximizing Efficiency: Allows for optimal use of existing resources.
  • Fact: This method focuses on the most critical deliverables for national security.
• De-Merits:
  • Impact on Other Projects: May delay or affect the quality of lower-priority projects.
  • Lack of Sustainability: This is a short-term solution that does not address systemic issues like resource shortages.

3. Negotiating Flexible Deadlines

• Merits:
  • Reduced Workforce Pressure: Provides employees with some relief, reducing risks of burnout and maintaining quality standards.
  • Enhanced Strategic Planning: Allows for better resource alignment with project requirements.
  • Fact: Flexible deadlines can improve overall efficiency without compromising employee health.
• De-Merits:
  • Strategic and Financial Risks: May undermine defense security or lead to financial penalties.
  • Ripple Effect: Could delay dependent projects and damage the PSU’s reputation for reliability.

Course of Action

1. Convene a Meeting with Employee Representatives:
   Explain the situation, constraints, and importance of the project to foster transparency and collaboration.
2. Prioritize Critical Deliverables:
   Focus efforts on the most essential defense products to ensure national security is not compromised.
3. Reallocate Resources Effectively:
   Divert resources from less critical projects to immediate priorities to meet deadlines without overburdening employees.
4. Support the Workforce:
   Recognize employees’ efforts, provide incentives or bonuses for additional work, and implement flexible schedules to manage fatigue.
5. Plan for Long-Term Sustainability:
   Introduce measures like stress management programs, recognition systems, and flexible work policies to address systemic issues and boost morale.

By combining resource reallocation, workforce support, and effective prioritization, this balanced approach ensures project deadlines are met while safeguarding employee well-being.

(c) Burn out is a critical factor resulting in demotivation of employees. What steps should the private companies and government take in this regard? 

Burnout is a critical issue affecting employee motivation, health, and productivity. To tackle this, private companies and governments must adopt a holistic approach prioritizing work-life balance, employee support, and realistic workloads.

1. Encourage Work-Life Balance

• Private Companies:
  • Implement flexible work schedules, remote work options, and paid time off.
  • Adjust job responsibilities to prevent overburdening employees.
  • Fact: Studies show employees with work-life balance are more productive and engaged.
• Government:
  • Promote policies encouraging shorter workweeks and mandatory breaks.
  • Fact: France’s 35-hour workweek law has improved employee satisfaction and productivity.

2. Establish Regulations and Policies

• Private Companies:
  • Align company policies with government labor laws to limit excessive working hours.
  • Fact: Overworking employees leads to burnout and higher attrition rates.
• Government:
  • Enforce regulations on maximum work hours and mandatory rest periods.
  • Fact: Countries like Germany enforce strict overtime limits, reducing burnout cases.

3. Foster Open Communication

• Private Companies:
  • Encourage employees to discuss workload concerns with managers openly.
  • Conduct regular surveys to assess workplace stress levels.
• Government:
  • Support platforms where employees can report workplace stress anonymously.
  • Fact: Organizations with open communication report 25% lower turnover rates.

4. Promote Wellness Programs

• Private Companies:
  • Offer wellness initiatives like yoga, meditation, and mental health workshops.
  • Fact: Companies that prioritize wellness programs see a 30% increase in productivity.
• Government:
  • Subsidize mental health programs and provide tax incentives for companies offering wellness services.

5. Provide Training and Support

• Private Companies:
  • Offer training in time management, resilience, and coping mechanisms.
  • Establish Employee Assistance Programs (EAP) with mental health counseling.
• Government:
  • Fund initiatives to train employees and employers on managing workplace stress.
  • Fact: Employee Assistance Programs can reduce workplace stress by up to 60%.

6. Set Realistic Workloads and Expectations

• Private Companies:
  • Prioritize tasks, ensure adequate resources, and set achievable deadlines.
  • Fact: Unrealistic expectations are a leading cause of burnout among professionals.
• Government:
  • Encourage industries to adopt workload standards based on employee capacity.

Conclusion

A collaborative effort between private companies and governments is essential to prevent burnout. By fostering healthier workplaces, both entities can sustain productivity, drive innovation, and enhance employee satisfaction, contributing to long-term organizational and economic growth.