In a Corporation Hotel, there were increasing problems between the hotel management and staff. To begin with, thefts were occurring in the rooms of those staying in the hotel. Loose change, jewelry, clothes, and other items were disappearing from rooms. After consulting with hotel security, management determined that the cleaning staff was the only group that could possibly be perpetuating the thefts. At the same time, it was noted that employees were taking longer and longer breaks, without noting this on time cards. In addition, mysterious long-distance phone charges were appearing on office telephones after business hours. After some thought, it was decided that cameras would be installed on the premises of the hotel. These cameras would be installed in hotel hallways, offices, elevators, break rooms, and employee locker rooms, where employees changed before going on and off their shifts. Employees recognised that management needed to protect the assets of its guests as well as the hotel’s assets in terms of lost work time and long-distance phone bills. However, they were very upset about the installation of cameras in their changing rooms and went on strike. The management played tough with the striking employees and terminated some of the ring leaders. But the employees continued with the strike much to the financial loss of the corporation and now the management started feeling the pressure from the government to settle the strike.

(A) What are the ethical & managerial issues involved in the above case?

(B) What advice will you provide to the management to help them settle the issue amicably and put the hotel operations back on track?