The story is set in a factory manufacturing cleansing productslike soap bars. This factory is part of a large company where the headquarters are in a geographically and culturally faraway place. A majority of the 500-workforce works on the factory floor.
The workers in the factory have a practice of bringing back the products that they have produced for their own use. To them, it is perfectly normal because everybody does it. There is no malice or ill intent behind the action, and they don’t perceive their action as illegal.
Recently, the headquarter (HQ) management has decided to implement an ERP system in the factory to improve the efficiency of the processes, in addition to enhancing governance and accountability. The headquarter management has long been aware of the issue where workers brought back products for their own use. With the Enterprise Resource Planning (ERP)system, the shortfall in the stock produced will easily come to light. The management realised that the local team in the factory may therefore resist the implementation of the ERP system as it would mean that they could no longer have the liberty to consume those stocks.
Therefore, the management wanted to have a plan to address this possible resistance before the ERP system was implemented. However, they were also aware of the cultural sensitivities around the issue.
Questions:
1. What will you do if you were in the shoes of the headquarter management?
2. How would you use the MARS Model to solve the problem?
3. Based on previous lectures, identify the unethical behaviourof the employees.
The story is set in a factory manufacturing cleansing productslike soap bars. This factory is part of a large company where the headquarters are in a geographically and culturally faraway place. A majority of the 500-workforce works on the factory floor.
The workers in the factory have a practice of bringing back the products that they have produced for their own use. To them, it is perfectly normal because everybody does it. There is no malice or ill intent behind the action, and they don’t perceive their action as illegal.
Recently, the headquarter (HQ) management has decided to implement an ERP system in the factory to improve the efficiency of the processes, in addition to enhancing governance and accountability. The headquarter management has long been aware of the issue where workers brought back products for their own use. With the Enterprise Resource Planning (ERP)system, the shortfall in the stock produced will easily come to light. The management realised that the local team in the factory may therefore resist the implementation of the ERP system as it would mean that they could no longer have the liberty to consume those stocks.
Therefore, the management wanted to have a plan to address this possible resistance before the ERP system was implemented. However, they were also aware of the cultural sensitivities around the issue.
Questions:
1. What will you do if you were in the shoes of the headquarter management?
2. How would you use the MARS Model to solve the problem?
3. Based on previous lectures, identify the unethical behaviourof the employees.
Related questions
The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Dats on sales and expenses for the past quarter follow:
| Total | Dirt Bikes | Mountain Bikes | Racing Bikes |
| Sales | $ 928,000 | $ 269,000 | $ 407,000 | $ 252,000 |
| Variable manufacturing and selling expenses | 467,000 | 120,000 | 195,000 | 152,000 |
| Contribution margin | 461,000 | 149,000 | 212,000 | 100,000 |
| Fixed expenses: | ||||
| Advertising, traceable | 69,500 | 8,500 | 40,100 | 20,900 |
| Depreciation of special equipment | 42,900 | 20,300 | 7,500 | 15,100 |
| Salaries of product-lime managers | 115,600 | 40,300 | 38,300 | 37,000 |
| Allocated common fixed expenses* | 185,600 | 53,800 | 81,400 | 50,400 |
| Total fixed expenses | 413,600 | 122,900 | 167,300 | 123,400 |
| Net operating income (loss) | $ 47,400 | $ 26,100 | $ 44,700 | $ (23,400) |
