Ethics in Tactical Decision Making
In tactical decision making , ethical concerns revolve around the way in which decisions are implemented and the possible sacrifice of long-run objectives for short-run gain. Relevant costs are used in making tactical decisions-decisions that have an immediate view or limited objective in mind. However, decision makers should always maintain an ethical framework. Reaching objectives is important, but how you get there is perhaps more important. Unfortunately, many managers have the opposite view. Part of the reason for the problem is the extreme pressure to perform that many managers feel. Often the individual who is not a top performer may be laid off or demoted. Under such conditions, the temptation is often great to engage in questionable behavior today and let the future take care of itself.
For example, laying off employees to increase profits in the short run could loosely qualify as a tactical decision. However, if the only benefit is an increase in short-run profits and there is no evidence that the decision supports the longer-term strategic objectives of the firm, then the decision can be questioned. In fact, the workload may not decrease at all, but the number of people available to carry out the work has decreased. Pressure then may be exerted by managers on the remaining employees to work unreasonable amounts of overtime. Is this right?
All companies should have a clear mission and goals. For example, if marketing enthusiastically touts the product’s high quality and reliability, while engineering and production are busily reducing the quality of the materials and reliability of the design, problems are sure to surface. Customers will see this inconsistency as an ethical lapse.
Debates about what is right and what is wrong can be endless. As was pointed out in Chapter 1, ethical standards have been developed to provide guidance for individuals. Additionally, many companies are hiring full-time ethics officers. Often these officers set up hotlines so that employees can call and register complaints or ask about the propriety of certain actions. However, some ethical problems can be avoided simply by using common sense and hot focusing solely on the short term at the expense of the long term. Consider two examples of cost cutting at Ford Motor Company. Recently, Ford decided to delete the rubber molding on the side of the Sable, saving about $100 per car. Years earlier, Ford saved approximately $7 per car by installing thin-walled gas tanks on the Pinto. Which decision do you think has ethical ramifications?