Personnel Management the Faulty Tank

Personnel Management

The faulty tank

The decision made by the managerial team at Ford Motors has nothing ethical about it. It is a clear case of corporate profits outweighing human life. There is of course the possibility of passing the savings made by Ford to the customers, in the form of a lower retail price, the offering of complementary products and services, the payment of damages produced in Pinto accidents or many other such situations, but this would not have represented a truly ethical decision. It would have been done to ease the conscience of the Ford executives, who initially ruled in favor of profits.

It could be said that the majority of the customers benefited from Ford's decision as they were able to purchase their vehicles quicker and at a lower retail price. Additionally, they were able to be the proud owners of a Ford vehicle, enjoying the "Made in the U.S.A." brand. Still, all these are insignificant arguments in the face of the true reason which prompted the decision in favor of the initial unsafe design. And this true reason was the corporate desire of Ford to introduce its product onto the market and beat the foreign competitors. The underlying decision was that of making money, and this is supported by the cost-benefit analysis, which resulted in the conclusion that net gains in the amount of $88 million were more important that human lives.

Completing a car acquisition is often a long and costly process. And in a context of limited financial resources, it is only natural for the buyer to look for the most effective solution. Yet, it is unlikely to assume that any rational customer would prefer to save $11 and, in exchange for it, endanger his and his family's lives. Still, if the company considered that such a possibility is a viable one, they should have communicated their decision and the risks involved to the prospective customers.

Ye, they did not do this because the costs would have been too high. Consumers would have not only refused to purchase the Pinto, but would have changed their entire perception of Ford. In such a scenario, the American automobile manufacturer would have lost market share to foreign competitors, and would have as such been presented with financial losses.

All in all, the circumstances were critical and Ford made an unethical decision by favoring money over people's lives. The situation is even more dramatic and clear and cut than the issue of making airbags optional.

2. The Ulrich case

The Ulrich case trialed the implication of Ford in the death of three adolescents, as the Pinto they were driving got hit from behind and instantly exploded. The decision of the jury was that of acquitting Ford. The controversy related to the case was fairly large, with some arguing in favor of the decision, whilst others pointing out to Ford as the culprit for the deaths.

The final stand taken by each individual is subjective and depends on the personal feelings and perceptions of each single person. From this writer's point-of-view however, the decision to acquit Ford was the wrong one and the company should have been found guilty for the death of the three teenagers -- and many more as well, since hundreds of people were believed to have died because of the faulty gas tank in the Pinto vehicles.

There are numerous reasons as to why condemning Ford would have been the better ruling. At the very core lies the decision of producing and selling not just a poor quality product, but one that endangered the lives of the users; the argument that the company's decision was not based on lack of information, but on the simplistic desire of making more money should have been a clear indicator that Ford is more interested in profits than in driver and passenger safety. The ethics of the decision should not have constituted grounds for conviction, but should have offered information on the moral grounds of Ford.

The second reason in favor of a condemning ruling would have been that of the treatment of the decision made. Since Ford assumed that the decision to keep the original tank designs was the right one, they should have at least informed their customers of the verdict of their process of thoughts. Yet, they concealed this piece of information and knowingly sold vehicles that endangered the lives of people, and eventually killed Judy, Lynn and Donna Ulrich.

A final argument refers to the outcome of a ruling against Ford. Such an outcome would have sent a clear statement that the lives of individuals are more important than financial gains and market share. It would have transmitted a warning signal to all companies that treasure money over people, and could have as such saved lives lost due to corporate greed.

The ruling created mass dissatisfaction and enhanced the grief of the Ulrich family. And despite the ruling, it proved that the individuals had the ability to sue the corporations which did not deliver safe products.

4.

Employee self-esteem

It is common knowledge that a satisfied employee will be more dedicated and loyal to the organization and will enhance his efforts to sustain the company in reaching its overall goals. Yet, the traditional incentives may prove insufficient in building the self-esteem of workers. This goal can be attained throughout the following:

(a) The organizational culture

The company should create an organizational culture focused on the tremendous part played by customers in the overall organizational success. Today, most economic agents place emphasis on the role of customers, but as the popularity of service deliverers exponentially increases, organizational triumph is pegged to employee task quality.

In such a context, it is necessary for modern day managers to comprehend the true value of staff members and create an adequate culture centered on a pleasant and dynamic working environment. Employees should feel cherished and respected while on the job.

(b) Employee empowerment

The second thing to do is that of empowering employees by allowing them to make decisions. In order to still safeguard the interests of the company and reduce the chances of risks and mistakes, the initial decisions to be made by employees should be less important ones. As the employee proves his worth, the importance of the decisions would increase.

Employee empowerment does not necessarily refer to a situation in which the organizational staff member is trusted to make a decision by himself, but more so he is included in the decision making process. Allowing the employee to participate in the decision making process makes him feel important within the company and makes his input look valuable. The outcome will then be that of an employee more convinced of his powers and role, more self-confident and more determined to prove his worth and support those who put him in the position.

(c) Employee training

The general perception of training is that it creates employees who are better able to perform their tasks and as such create efficiencies for the organization. What is however often overlooked is that training programs are not only a means of creating organizational efficiencies and profits, but they in fact also represent employee incentives.

At the end of a training session, the employee emerges as a better skilled and capable organizational asset. This automatically propels him to a superior position within the organization. Even if a promotion is not immediate, the trained employee will possess more knowledge and will be better valued by his colleagues, subalterns and supervisors. All these will become combined to form a worker with higher levels of self-esteem.

A final means in which training generates self-esteem is that of ensuring future stability. Training adds more value to an employee and allows him to better perform his tasks. This means that he would find it easier to get a new job, in case the current one should no longer be viable.

6. Maslow's hierarchy of needs

Abraham Maslow constructed a pyramid of five levels, each level presenting the types of needs that motivate people. At the bottom level sit the physiological needs, followed by needs of safety, needs of loving, being loved and belonging to a community. At the fourth level sit the needs of esteem, followed by the needs of self-actualization. In order to maintain an organizational staff member motivated and satisfied on the job, it is necessary for the leadership team to strive and manage to satisfy as many of these needs as possible. Below are some pointers as to how the desiderate could be achieved: