Rajwant Engineering: Survival or Ethical Values?

CASE ANALYSIS SUMMARY FORM – OL485

Case Title: Rajwant Engineering: Survival Or Ethical Values?

Name: Joseph Slaisu

Summary Analysis:

Who (names and positions):

Sokhi: the owner of Rajwant Engineering Pvt. Ltd.(REPL)

R. K. Gupta: new procurement manager at ClientCo, REPL’s most important client

What are the issues:

The issues are that Gupta is asking for a bribe from Sokhi, so that REPL can get their contract. Sokhi has high ethical values and doesn’t want give in to the bribe. If he doesn’t give his he loses 35% of his business which can lead to bankruptcy. They were too dependent on three clients. They were facing difficult business conditions as they were having financial issues with many loans and payables with high interests. They had very few projects which means enough revenues isn’t flowing. Sokhi prioritized some task and improvements over others.  They failed at being technologically advanced as their IT system were obsolete.

Why have the issues arisen:

The issues arisen because REPLs most important client has a new manager and he takes bribes in exchange for contracts. There was an increase in competition. Also this is type of behavior is an ongoing trend that other possible clients do in the industry. Competition acted unethically which made clients want REPL to compromise their values. Financial issues started when REPL wanted to expand its operations to compete more effectively. There was no strategic planning during their expansion phase.

When is a decision due?

The decision should be made within the week.

(Slightly) More In-depth Analysis:

Leadership Issues

Management issues as supervisor were is constant discourse with employees. As Leaders buck passing is unacceptable and common in the workplace, they were. The leadership would postpone important tasks that would later hurt the company. Leadership knew about alot of things that could improve REPL but they never took action. Leaders stand by their values and are consistent and that is one thing that REPL’s leadership is good at. But with the explanation above its leadership can be seen to be dysfunctional. Sohki cared too much about how his employees would feel compare to impoving the company.

Organizational Issues:

This organization passed possible ethical issues, and as a for profit organization you could face possible fines, scrutiny, and jail time. If REPL were to act unethical they would be creating at atmosphere they are viewed in that type of behavior. Although it helps with the ClientCo contract it could hinder other present and future clients; also damaging your credibility.

There was a lack of cohesion with the employees. Supervisors and employees relationships were toxic which could result to horribly effecting performance, contracts and clients. Lack of Focus in strategy, during there expansion they failed to address to quality of their internal and information technology systems.

They cultures is oriented to be family-like. Although there is no correct organizational culture but some cultures promote specific behaviors. For the direction that REPL want to go they need Market and Hierarchy cultures so that their focus is on competition, efficiency and stability.

Decision Criteria (Any course of action, I suggest must…)

1. Superiority and Employee Cohesiveness
2. Ease of Implementation
3. Consistent Values
4. Culture is directed toward goals
5. Technological Modernization

Alternative courses of action:  

1. Profit organizations have strict procedure so trying work the contract out with another person in the company would not seem likely. So First Sohki should go back to the new manager and ClientCo and be honest to him/ Tell him you don’t want to compromise your ethical values and inform him about the illegality of the action and the possible scrutiny.  If he still persists decline the contract and begin to look for other potential clients. Also, you will need a change in business as there are other problem that are hindering your growth. First you need to train all management and employees with team bonding, learning English and computer. Also an internal systems and procedures needs to be improved and modernized. With this being said Sohki must realize there will be cutback and he will have to fire some of his employees. His goals should be focused on being better competitors, stability, and efficiency. A change in business structure and culture is needed to focus more on hierarchies.
2. Profit organizations have strict procedure so trying work the contract out with another person in the company would not seem likely. So First Sohki should go back to the new manager and ClientCo and be honest to him/ Tell him you don’t want to compromise your ethical values and inform him about the illegality of the action and the possible scrutiny.  Give an alternative option that works best for both of you and is not unethical like reducing prices. Whether or not he accepts you will still need to change the business as there are other problem that are hindering your growth. First you need to train all management and employees with team bonding, learning English and computer. Also an internal systems and procedures needs to be improved and modernized. With this being said Sohki must realize there will be cutback and he will have to fire some of his employees. His goals should be focused on being better competitors, stability, and efficiency. A change in business structure and culture is needed to focus more on hierarchies.
3. Sohki should edit the letter so that it is more professional and your concerns are presented. Also relay what exactly happened with the new manager and tell them that you and your company doesn’t align with those type of values. Next you will need a change in business ass there are other problem that are hindering your growth. First you need to train all management and employees with team bonding, learning English and computer. Also an internal systems and procedures needs to be improved and modernized. With this being said Sohki must realize there will be cutback and he will have to fire some of his employees. His goals should be focused on being better competitors, stability, and efficiency. A change in business structure and culture is needed to focus more on hierarchies.

The alternative that best meets my decision criteria: I believe alternative three is the best solution because it best meets my decision criteria. ClientCo has transitioned into the unethical type of business, so cutting off ties with them asap is necessary and will make your business look good. This allow for REPL to shift its focus and strategize.

Key steps in recommended plan of action (including the leadership approach that should be taken)

Key steps are for Sohki to edit the letter and send it. Then begin to restructure the company so it is a functional organization. This will allow for a change in the culture and behavior of the organization while keeping its values intact. The best Leadership approach that would work best is Transformational leadership. With this Sohki’s vision to transform the performance of the organization, he must appeal to values of the organization’s people to make it happen. Along with being a charismatic leader the approach will be beneficial for followers to have a strong sense of purpose for the mission and vision that Sohki has. Also through effective training and companywide modernization they will closer to success.