Salary & Compensation Members: Goutam 25686, Sidra

Topic: Compensation/Discrimination

Subject: Salary&Compensation

Business: Family Business (75 Employees)

What are the Relevant Facts?

1. Baby June was the head of the payroll department and hired by Mr. Salman

(General Manager of R&S Electronic Service) to conserve the very firm and strict

confidentiality and off the record employee salaries and pay scales. Previous Payroll

head has also been fired for breaking the secrecy of employee salaries and pay scales.

2. Baby June found that Mr. Amir (Service Technician & Brother of General Manager

Mr. Salman) has generated more commission comparative to others and at that time

she thought that he might be highly qualified and she also heard admiration and

commendation from owner of R&S Electronic Service Company.

3. One day, she found that Mr. Salman has given separate stack of tickets to Mr. Amir

(Brother of Mr. Salman) and when she caught that/see them Mr.Salman said her if

you whistle blow that in organization you will be fired from this job.
What are Ethical Issues?

1. Conflict of Interest – Is Mr. Salman Victim of the conflict of interest in supervising

his brother Mr. Salman and govern and determine the responsibilities of Mr. Amir?

2. Is there any defined rules, procedure and obligations that ensure employees of R&S

Electronic Service Company are being treated fairly in compensation and other

monetary and non-monetary benefits? If yes, then who comes under that obligation or

upon who does that obligation fall?

3. Does baby June is morally or legally bound (Obligation) to tell all this to Mr

Allahwala (Owner)? Or does she has obligation that if she inform Mr. Allahwala she

could lost her job?

What are Primary Stakeholders?

1. Baby June (Head of Payroll Dpt.)

2. Mr Allahwala (Owner of R&S Electronics)

3. Mr Salman (General Manager)

4. Mr Amir ( Service Technician)

5. Other Technicians

6. All other employees

What are Possible Alternatives?

1. Baby June can ignore the problem and say nothing as she is new employee and

already on probation period so she can be passive and pretend like she don’t

know anything between Mr Amir and Mr Salman.

2. Baby June can speak to Mr Salman apropos to that issue in order to resolve

this according to obligation and rules.

3. Baby June can also inform Mr. Allahwala (Owner) regarding this all scenario

including a utter intentions of firing.

4. Jane can indirectly conspire and tell all this scenario to other technician and

slowly raise the voice against Mr. Salman & Mr. Amir

5. Jane can quit.

What are the Ethics of Alternatives?

 Utilitarian Perspective

1. She should opt that one alternative that creates least amount of harm to the

organization and overall employees (Holistic approach).

2. How could cost can be measured in this portray/vignette? What would be cost

of telling that directly to Mr Allahwala? What could be cost of whistle

blowing? How much value must be placed in a way that define right of equal

pay and equal opportunity?

3. Organization must opt alternative that creative positive work environment and

retain quality technicians for long term.

 Rights Perspective

1. Does each employee has right to expect the equitable treatment with respect to

commission and pay structure? As Mr Amir is brother of General Manager he

is earning more commission that is discrimination and creates negative effect

on service technician performance and retention.

2. If I be a service technician, I won’t be happy with the alternative that

discriminate our salary and commission structure.

 Justice Perspective

1. Which alternative will create more equitable in situation with respect to

benefits and burden in this vignette? Mr Allahwala should execute strong

policies against discrimination apropos to pay and commission.

2. What if Jane does nothing and which employees will be exposed to more

burdens?

3. Is it fair and ethical if all service technicians do not have the equitable and

same opportunities for commission? So Allahwala and Mr Salman should

consider these factors.

What are Practical Constraints?

1. Mr Salman should be aware of legal and moral constraints because he

threatened Baby June (Head of Payroll Department) and he is not applying

moral accepted principles and HR rules of equitable pay and commission.

2. Mr Allahwala being a friend to Mr Salman & Amir can ignore the situation.

3. It can create a lobbying and groups in an organization that can raise voice

against Mr Salman & Mr Amir.

4. Baby June’s immediate boss has threatened to fire her.

What Actions Should Be Taken?

1. What actions should Baby June Take? If we look at holistic perspective, she

can reach out and talk with Mr Salman in more clear way while discussing

proper equitable rules and regulations and if same issue persist again she can

reach out to Mr Allahwala as he is the owner he is the final boss to hire and

fire.

2. Which Alternative would you choose if you were at her place? If I would be at

that place I would choose alternatives of Utilitarian perspective because its

more focused towards goodness and less towards harm.

3. Why would you make that choice? As I am a new in R&S electronic if we look

this is not my issue, this one is issue of service technician with respect to

discriminatory commission and pay scale, I would love to solve this by

creating win-win situation and constructively solve it.

4. Which ethical theories make the most sense to you in current scenario? If we

talk about current scenario Utilitarian theory and Justice theory would be

considered to be best because we can fairly take the decision and can create

win-win situation for all.