Moving Toward an Ethical Workplace

A multi-generational workforce can be challenging for managers to handle. The question becomes, what to do with the new talent coming-in, and also the experienced talent who is approaching retirement? The following Case Study allows you to make an ethical decision based upon your morals and values.

Case Assignment

Michael Kennedy is fairly new to Company XYZ. He was hired as the VP of HR and has many years of experience in the HR field. At Company XYZ, he quickly gains the respect of his peers because he follows all rules and regulations and does not make any exceptions. He is a baby boomer and has great recollections of the 70’s. From time to time, he shares his “interesting” stories with his close colleagues at work. He served in the US military and was a Sergeant in Vietnam. Michael has dealt with a lot of organizational changes throughout his tenure and has a unique philosophy that he strongly believes in—“one should be prepared for anything, but should expect nothing.”

The CEO of Company XYZ (John Smithson) has been trying to trim the fat at his organization so the company could hire some “fresh” new talent. John Smithson believes (without any documentation in their performance evaluations) that some of the “senior” employees are not as productive and do not bring much to the table. In fact, he shares with Michael that “the sooner they start with Project New Blood, the sooner Michael will get his well-deserved raise.” Michael devises a plan to lay off 10 “senior” employees and hire five “fresh” college graduates.

Michael believes he is an ethical individual and is happy to provide his employees with a notable severance package. He uses the following chart to discuss the savings with the CEO. His rationale is that if 10 “senior” employees are laid-off, then they can easily hire 5 “fresh” desperate college graduates to do twice the work at a lower salary.

Senior Employees Salary Years at Company XYZ New Hires Salary

Employee # 1 $100,000 20 Employee # 1 $70,000

Employee # 2 $120,000 22 Employee # 2 $65,000

Employee # 3 $110,000 21 Employee # 3 $72,000

Employee # 4 $100,000 20 Employee # 4 $68,000

Employee # 5 $120,000 22 Employee # 5 $70,000

Employee # 6 $110,000 21 — —

Employee # 7 $100,000 20 — —

Employee # 8 $120,000 22 — —

Employee # 9 $110,000 21 — —

Employee # 10 $115,000 21 — —

Total $1,105,000 210 years of experience Total $345,000

In his eyes, the plan will save Company XYZ approximately $700,000 per year. The CEO is satisfied with Michael’s plan and gives him the green light to start. The CEO reminds Michael of the “At-Will” employment clause in all employee contracts that is very helpful for the organization.

Assignment Expectations

After reading the Modular readings and conducting your own research, please answer the following questions in a 2page paper using APA:

Do you think it is ethical to lay off 10 of the “senior” employees, to hire five new college graduates, and to double the work of the new employees? Justify your response.

Is it worth laying off 10 senior employees for saving $700,000 per year? What are the pros and cons to the situation? Justify your response.

Is it ethical to pre-screen potential employees by using the internet (i.e., Facebook, LinkedIn, Twitter, Google, and YouTube)?

What are some solutions to this case study? What is the best solution for this case study? Justify your response.

Your paper should be double-spaced and in 12-point type size.

Your paper should have a separate cover page and a separate reference page containing the full citations corresponding to the in-text citations you choose to use in the body of your paper. So in addition to the 2- to 3-page body of your paper you will have a title page and a reference page. So overall, you will be submitting a 4- to 5-page document.

Use APA style, and proofread your paper.

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