Million Dollar Mills is a textile manufacturing firm located in the southern Uni
ID: 2712817 • Letter: M
Question
Million Dollar Mills is a textile manufacturing firm located in the southern United States. The company carefully prepares all financial statements in accordance with GAAP, and gives a copy of all financial statements to each department. In addition, the company keeps records on quality control, safety, and environmental pollution by the company. It then prepares "scorecards" for each department indicating their performance. Recently, the financial impact of the second set of information was added, and the information has been used in the evaluation of employees for merit pay and promotions.
At the most recent employee meeting, Tyler Hanes, marketing manager, expressed his discomfort with the system. He said there was no guarantee that the second set of information was fair, since there were no generally accepted principles for this kind of information. He also said that it was kind of like keeping two sets of books—one following all legal requirements, and the other one actually used by the company.
Is it ethical to evaluate managers in the way described? Explain briefly. Name at least two safeguards the company could build into its system to ensure the ethical treatment of employees. Describe how non-financial factors are used (or should be used)
Explanation / Answer
Yes its fsir to evaluate employees based on the ethics, rukes and regulations.Each employee needs to follow policies, guidelines and rules in all the business activities and this myst be included in their performance appraisals in addition to their actual work.
These policies and processes improve the credibility of the organization in the msrket and helps imprive its revenues.
Also the rating of the firm.
There must be periodic trainings for the employees regarding ethics, policies and processes.The managers must be strick in these evaluations, this in turn increases overall credibility.