human resource management

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Name______________________ ID _____________ Section:

HRM200-300 ORGANIZATIONAL BEHAVIOR

Spring 2020

TAP 2 – 15%

Ethical Dilemmas (20 points each – TOTAL 100) Read each ethical dilemma and answer the questions that follow.

1. You’re about ready to sign a big new client to a contract worth over 50,000KD. Your boss is under a lot of

pressure to increase sales. He calls you into his office and tells you his job is on the line, and he asks you to include the revenue for your contract in the sales figures for the quarter that ends tomorrow. You know the contract is a sure thing but the client is out of town and cannot possibly sign by tomorrow. What do you do? What would be ethical and unethical action? ANSWER: Ethical: Unethical:

2. The manufacturing cost of the widgets your company makes has dropped by 50%. One of your customers, Sam, tells you he knows this because he is best friends with your company’s VP of production and asks you for a discount on his order. Your boss okays the discount. Your other customer, Sue (who is one of your best friends and knows nothing about the drop in manufacturing costs), places the exact same order for widgets as Sam. Do you offer her a similar discount? Do you tell her about the drop in manufacturing costs? What would be ethical and unethical action? ANSWER: Ethical: Unethical:

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3. Your best friend is the VP of one of the companies with which your firm does business. You take her out for lunch just to catch up on personal stuff, and you pick up the check. Do you declare this a “business lunch” and submit the receipt for reimbursement? What would be ethical and unethical action? ANSWER: Ethical: Unethical:

4. While in the restroom, you overhear your boss telling a colleague that Bob is going to be laid off at the end of the quarter in about two weeks’ time. Bob is a good friend of yours. Do you tell him? What would be ethical and unethical action? ANSWER: Ethical: Unethical:

5. One of the newest salespeople in your division is a real goof-off, never showing up for work on time, distracting other people with his antics and so on. You complain about him to your boss, who tells you the kid is the son of the company president. Your boss instructs you not only to leave the new guy alone but also to make his sales numbers look good by throwing him some no-brainer accounts. Is behavior of your boss ethical? ANSWER: What should he do instead? ANSWER: What do you do? ANSWER: BONUS (10 points) Explain the difference between trust, justice and ethics.