You are a U.S. citizen currently on a three-year assignment as the IT manager fo
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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 1000 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 financial crises, and you have been told that your department must reduce its budget by $100,000. You been focusing on two options. The first is not to purchase all the software licenses needed and instead make illegal copies of existing software. The software piracy rate in Armenia is 90%. The second is to terminate the employment of IT employee. You have identified who would be terminated based on their recent job performance and their relatively low level of anticipated future work activity. What would you do?
Consider answering the following questions in evaluating an ethical dilemma:
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 making 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 argument.
Step 4: State your course of action with detailed justification.
Explanation / Answer
1. Identification of issues:
Facts of the case: IT manager currently occupied the three year contractual based relation with organization. American plant employs 1500 workers for the organization. Plant planning to purchase 250 computers and replace the existing software whih costs one lakh Dollars. The company faing financial crisis, so it suggested to reduce the expenditure level.
To tackle this situation company wants to execute two facts.
a) Not to purchase the new software
b)Terminate the employment of IT Manager.
Moral/ethical issues: In this case if the company faces financial crisis, its is suggestable not to purchase new computers. Company should not ready to make illegal copies of software. For maintaing good standards company has to take decisions in ethical way even there is 90% piracy rate executes in America.
Terminating IT employee is not suggestable. They must train the employees according to the requirements of organization.
Major stakeholders are employees, customers, workers and society
2. Alternative actions: Either company mobilize financial resources for future sustainability or they must try to accept credit facility arised through government.
Other facts relevant to the case are Company must be ready to provide greatest good to the greatest number of peole which is known as utilitarian theory in ethics. At the same time it must think to deal with practical situations.
3. Rules of ethical decision making:
Potential consequences of action is removing IT manager is not the right one. Company must provide required level training for assuming future consequences. It is nothing but reation of forecasting capacity.
4.Course of action:
First of company try to procure amounts from other financial resources. Also change their budgeting proces by reducing number of computers. The practices followed by the company need to change about applicability of software. If it also follows the piracy, where is the ethicality in practices of the concern.
It must follow procedural justice which is nothing but use of fair procedures to determine and distribute outcomes to organizational memebrs which is also known as procedural justice.
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