You are a U.S. citizen currently on a three year assignment as the IT manager fo

Question

You are a U.S. citizen currently on a three year assignment as the IT manager for your company’s Armenian manufacturing plant. The company is a U.S. based fortune 10000 company and the Armenian plant employs 1,500 workers. The plant budgeted for 250 new computers and associated software to replace all computers over six years old. The cost of the software licenses is $125,000(USD). Unfortunately, the plant has been hit hard by the worldwide finiancial crised, and you have been told that your department must reduce its budget by $100,000. You have been focusing on two points. The first is not to purchase all the software licenses needed and instead make illegal copies of the existing software. The software piracy rate in Armenia is 90%. The second is to terminate the employment of IT employees. You have identified who would be terminated base on their recent job Performance and their relatively ow level of anticipated future work activity. What would you do.

Step 1: identify the issues surrounding the situation facts of the situation, moral, ethical issues, major stakeholders.

Step 2: state the alternative actions that could be taken and identify possible impacts on stakeholders. What other facts are needed or would be valuable in marketing a thorough analysis?

Step 3: apply one or more of the rules of ethical decision making to each of the alternatives. What are the potential consequences of each possible course of action? Rate the strength of each aurgment.

Step 4: state you course of action with detailed justification.

Explanation / Answer

Step 1 :- The issues surrounding the situation are that manufacturing plant in Armenia is under severe financial pressure. The plant needs to reduce its budget and take measures like saving costs on software resources and manpower. The facts are to save software costs at the plant, the manager will have to use illegally made copies of the software. Morally it is not an acceptable practice to do piracy and being US citizen it is against law. Ethically, the step is being taken by considering for business interests and in Armenia, piracy is common and is not considered illegal. Another step which manager at Armenia plants intends to take is to terminate employees based on their performance as a cost cutting measure.

Major stakeholders are the company management, managers, employees, customers and shareholders.

Step 2:- The alternative actions that could be taken are discussions regarding the concerns for ethical and moral violations with company management. As they are major stakeholders in a situation if any action is taken against illegal copies and software piracy. The manager needs to check with senior management on the actions planned at the Armenia plant for reducing the budget.

The possible impacts are the steps like software copying will be not allowed as it may be against the company policies. The manager can delay the changes like replacing the computer systems and software in face of the financial crisis. MOreover he can check with the senior management for deploying of staff at other locations rather than terminating their employment.

The other facts needed or would be valuable in marketing a thorough analysis is the code of ethics followed by the company and the advisable norm in such situations. The role of senior management and support given in such conditions for budgetary control is also required to be known for an analysis.

Step 3 : One of the rules of ethical decision making is Virtue of Ethics. It is the habit of doing the right thing than following rules and policies. In case of ethical dilemma, individuals opt for doing things as per the highest standards they consider or as per their convinience.

In this case, the manager wants to opt for software piracy and termination of low performing employees as he wants to prove his managerial skills of working within budgetary targets and taking steps which are within his control. Software piracy is common in Armenia so it is being considered. The consequences of this alternative can be going against the ethical policy of the company and violating the standards and creating a wrong example. Termination of employees should be avoided or should be done by giving proper compensation and notice. Cost saving can be done by finding other ways like delaying the change in infrastructure.

Step 4 : My course of action will be consulting the senior management at corporate office about the decision of saving costs by copying software and justifying the reasons for doing so. I would delay the process of changing infrastructure.

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