Ethics and Performance Measures - Sparkling Automotive Company - Case Study Example

Ethics and Performance Measures Introduction In a company, ethics and performance measures are important because they dictate the direction in which the company takes. Everything that happens in the company needs to be accounted for because it shows how it is responsible in taking the company forwards (Shell, 2009). The top management in the company should bank the efforts in determining that the company runs on an integrated team work which should not be let to fall. The ethics of the employees help the focus of the company to be achieved, because when employees have their focus in employing the laid strategies in the company affairs, the goals set by the strategists are achieved with ease (Arveson, 2002). It is imperative to measure the extent to which ethics are applied, so that the company becomes resourceful to employees and the community at large. By doing so, it win the trust of consumers, as well as gaining more profits for the organization. When a company manages to have a greater profit margin, it has a better opportunity to expand and offer more opportunities for employees. The vices that are taken for granted in the company are the ones that draw back the efforts in the organization (Shell, 2009). Unethical Behavior As A Result of Wrong Performance Measures There are many things which lead to the unethical behaviors in an organization. There is a need for constant checking of the manner in which employees conduct themselves because, if they are left on their own, they end up making mistakes due to peer influence or greed. In Sparkling Automotive Company, the presidents need to ensure that there is the measurement of ethics and behaviors of the employees because failure to check on the behaviors can ruin a business that has been operational since 1930. The fact that there are no unethical behaviors exhibited by the employees does not mean that the employees are trustworthy (Arveson, 2002). Most of the employees harbor bad intentions or they get influenced by corrupt distributors or suppliers who access commodity from the company in wholesale. They may offers bribes to the respective employees for some under movements which will cause the company a lot of money. This ends up making the company undergo loss because the workers will out any money to be paid. Competitors use the gullible employees to carry out destructive missions, such as pirating the procedures used in manufacturing of the plugs; they result in production of counterfeit products which affect the results in the markets. Many workers who do not keep the secrets of the company line of production cause a dent to the company because they create unnecessary fracture to the production niche. When counterfeit products are in surplus in the market, it takes the market a hard time to realize, hence, it affects the turnover of the company (Arveson, 2002). Corrupt means of cost cutting in the company where the heads of the organization acquire bribe to give tenders affect the image of the company. All this needs to be checked because neglecting such issues only worsens the situation in the organization of Sparkling Automotive Company (SAC) (Shell, 2009). When performance measures are tied to compensations, it creates a workforce that is driven by the need to create more resources for the company. This propagates the encouragement of unethical behaviors due to compromised honesty. In Sparkling Automotive Company, performance measures fall into four categories, which are customer perspective, financial perspective, internal process perspective, and learning and growth perspective. All these categories need to be acted upon for the company to flourish in its manufacturing and sales of plugs in Sparkling Automotive Company. When all levels of employees in the company are not involved in the company activities pertaining production and selling of the plugs, there would be a lot of frauds that can choke the running of the organization. Delivering the plugs can counter a lot of hiccups which slow the pace at which the results are achieved. Due to the imbalance of distributing motivational kits to all the workers, some workers get compromised to sell the ideas of the company. This is unethical because it is against the conventions of the company (Shell, 2009). When delivering the plus, many workers record more than the order requires so that they can sell the excess in the terms they will set with other company’s employees. This happens because they are in cahoots with the other employees in a mission to revenge for an injustice or satisfy their greed. The accounts department can falsify the expense accounts, for instance, paddling the expense accounts. Workers cheat about the expense on the trips they make so as to receive more money than others (Arveson, 2002). Company Avoidance of Unethical Behaviors Sparkling Automotive Company needs to check the loopholes of the company’s plugs. The employees need to have a working human resource that will answer their woes when it comes to appraisal and other services they require from the company. The company is fond of rewarding the marketing team only and forgets to give a bonus to the other sectors of production to sales (Arveson, 2002). The company needs to check all levels of workers in the company. The employees need to be treated as equals so that they do not feel segregated bin the company. This helps to boost the spirit of teamwork which enhances the extrinsic motivation. Failure to encourage or motivate the employees results to cases of deception towards the consumers who suffer at the hands of the employees. The employees literary steal money from the customers by increasing the price of commodities or else selling factory rejects to the consumers. These unethical behaviors need to be checked because they affect the image of the company negatively. The company’s line mangers need to be very assertive because some of the employees need to check regularly. Failure to check, customers suffer from the disrespectful employees. They feel that they are revenging the inequalities practiced by the company management because they feel not recognized by the human resource department (Performance Appraisal Software, 2011). Giving incentives to the workers help them to feel as if they are stakeholders in the company, rather than instruments of achieving the goals set by the company strategists. They feel honored and cannot allow the carrying out of behaviors that compromise the state of the company. It is imperative to help workers to be responsible. It is unethical to blame coworkers for ones mistakes. This increases the blame game which, in return, causes rationalization (Arveson, 2002). The company management needs to give specific duties to specified employees who are endowed in the work they are assigned to. This helps them to employ their skills in dealing with the skills that are in their jurisdiction. It is unethical to blame others for their failures. When people are slotted in the duties they feel ready to act upon, they become responsible to complete their assignment, rather than leaving their work for others. This reduces the blame game and accountability is increased hence increased productivity (Performance Appraisal Software, 2011). The workers need to be motivated financially because they can result into using money meant for the company in their personal use. This translates into misappropriation of funds. It is unethical to use money that is not meant for personal use because it only increases the conflicts in the company. The company needs to have petty cash in the office which should be given to employees according to their needs. The employees need to be assessed and their needs responded according to the urgency and degree. Responding to the trivial need of the workers reduces increased levels of unethical behaviors (Arveson, 2002). Truancy is an unethical behavior which needs to be checked by use of duty rosters and duty forms. Every worker need to fill the duty form after coming for his shift or working hours. These checks of whether the truancy rate in the company is increased or decreased show the need to have an integrated approach to the concerns of the workers. If the workers are denied ban opportunity to vice their grievances, they feel neglected by the administration, hence, the need to have an open forum. Delegation is the most important way of working instead of having autocratic administration. Autocracy breeds authoritarianism, which makes employees be motivated by fear. If the employees cannot air their concerns, they result in truancy. They ought to be allowed to join labor unions that fight for their rights in the work (Performance Appraisal Software, 2011). Appropriate Performance Measures Tied to Compensation The measurement of performance in the company should be tied to the fundamentals of the organizations. There is need to assess the rate of productivity in the company. The measures need to be linked to the goals that are set in the company. Compensation should be done according to levels of promotion so as to encourage hierarchy in the company and well-structured administration. The manner in which the Sparkling Automotive Company gives incentives to the employees need to be directed to reduction of turnovers. This is because it is expensive to train new employees. The number of plugs in the company dictates the performance in the company in reference to the compensation. Increased compensation encourages more productivity (Shell, 2009). The management should focus in maintenance as the existing employees increase their level of productivity. The workers need to be given incentives that will help them in acquiring the best results in selling of plugs to other companies. This is achieved by ensuring that the number of produced plugs is recorded, as well as that of factory rejects. This helps the company from stooping the trading of illegal products. The managers need to be assertive in their work so that they do not allow negligence in the manner workers do their duties. This increases accountability in the working place (Arveson, 2002). Conclusion Unethical behaviors rise when they are not countered with the right strategies. The workers need to be treated as equals in the company. Promotions and compensations among other things in the company need to be done with transparency, because it shows the employees that the company is determined to respond to their needs (Shell, 2009). Hard work and accountability need to be rewarded for encouraging intrinsic motivation and reducing turnovers in the staff. The Sparkling Automotive Company should encourage a team work that works diligently to achieve the targets of the company where autonomy is appreciated in the company (Arveson, 2002). References Arveson, P. (2002). The Ethics Perspective. Retrieved on 19th December, 2011 from http://www.balancedscorecard.org/TheEthicsPerspective/tabid/127/Default.aspx Performance Appraisal Software. (2011). Compensation and Performance Measures. Retrieved on 19th December, 2011 from http://performance-appraisal-software.org/181/compensation-and-performance-measures/ Shell, R. (2009). Performance Measures and Compensation. 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