Free Essay

Drum Case

In: Business and Management

Submitted By jtkemp09
Words 651
Pages 3
Tyler Kemp
Brandon Kinard
Ethics 5:30 Tuesday
Professor Thomas Eden
4/8/2012

Drum Company Case
Key Facts
-The Northern California Plant had $25 million sales in last year
-The safety record is at 3.5 PIR, nearly double the company average
-Recently hired a new GM to: increase market share, expand market base, improve profit margin and reducing injury rate.
-Recently began a Total Quality effort to address productivity, quality, safety and moral issues.

Primary Problems
Business
-The Plant was not very profitable and usually only broke even.
-The safety record was nearly double of the company average.
-A high worker’s compensation is causing cost to increase for the company.
-The plant was having a problem with drug and alcohol abuse with employees on and off the job site.
-Having to comply with labor union laws.
Personal
-Is it ethically right to send someone undercover to expose employees’ wrong doings?
-Is this process a breach of one’s personal privacy?
-The personal difficulty facing management as well as career implications?-
Ethical Dilemma
-Could management discriminate between the sellers of hard drugs and the occasional marijuana and alcohol user?
-Once an employee has recovered should the company reinstate them and if so, should they be allowed to the same production line as others?
-Should the plant start doing random drug test to keep the employee honest?
Reasoning
The drug and alcohol program was not effective and needs to be modified by creating tougher consequences with more accountable rehab program. Also the relationship between management and Teamsters need to be more unified. Their decisions need to be more collectively agreed upon between with both sides. We rejected the idea of complete termination without a chance to go to rehab recovery program. The negative effects of the program are that it will be costly to the program. The company will also be down an employee during the recovery time. So if the company decides to hire a short time replacement they will be having to paying 2 employees salary. A positive outcome the program will you will be keeping seasoned employees and not waste time and money training a new employee. After an employee has completed the program he or she should become a more efficient worker because they will be healthier and have clearer mindset. The other major problem in this case is the issues between the union and management relations. The first step to resolving issues is that both sides need to be willing to compromise more to end the tension. They both need start over and forget about what has happened in the past and work for a better future. With a better understanding from each part they will be able to agree on more laws with less resistance from either side.

Decision
The decision we chose was to help create a better rehab and recovery program by allowing the employee to choose whether to complete the program or to be terminate if failing to comply with the programs standards.
Desired Results We think that the company ought to require its employees to do random drug screening monthly paid for by the company. Once it has been discovered that an employee has failed the drug test they will be given two options: termination or the ability for a rehabilitation class for 1paid month with an accountability partner. After completion they will be reinstated into the company and required to do random drug test twice a month for six months, paid by the employee. If a failure to complete the rehab process, the employee will be terminated. We hope that the completion of this program will make the employee more efficient by being more conscious of the safety regulations that are in place. With the employee being sober they will become healthier with a clear mind causing them not to be distracted in the work place and decreasing the PIR.

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