Finance Ethics Case

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Ethics Case: BYP 22-6 Name Institution Instructor Timmons Manufacturing Company pays their painting department based on productivity. Periodically, the company has time studies done by DeVito Management Consultants in order to see if they need to adjust the amount they pay the painting department. Don, who is a seasoned veteran in the painting department, is informed he will be evaluated for the productivity assessment. Unaware to the DeVito representative, Don deliberately slows his normal work pace during the assessment in order to obtain a labor standard that will be easy to meet (Kimmel, Weygandt & Kieso, 2011). According to McGhee Productivity Solutions (2012), “developing an optimal productivity solution begins with an accurate analysis” (home page). McGhee’s website states their productivity analysis enables them to, Identify the level of individual and team effectiveness within a division or team; propose productivity solutions to increase performance, and to clarify methods for measuring results of the engagement. (productivity assessments) Based on this information the following questions will be addressed: who was benefited and who was harmed by Don’s actions? Was Don ethical in the way he performed the time study test? What measure(s) might the company take to obtain valid data for setting the labor time standard? (Kimmel, Weygandt & Kieso, 2011) By Don slowing his normal work pace and not doing his best during the evaluation he set a lower standard for the other employees in the department. Although his actions benefited the employees, it could hurt the company. Now the company could be paying the employees for less work. Also, this will hurt the company’s production. Slower workers, means less product getting sent out of the company, which in turn means less money coming in for the company. A company has to keep up with

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