Scenario and Events - Essay Example

“Midfield Textile” is a private organization dealing with the production of clothes and cloth-related products. The industry currently employs more than 1500 employees either working part-time or full-time. Since the launching of this industry in 2001, the company has seen tremendous growth in both profits, production capabilities, and expansion of the workforce. However, since the beginning of the year 2010, the company reduced its bonus and cut of pay for some of the employees while those that had served for long have been forced to retire due to economic strain which it has experienced since. Consequently, the industry has lost some of the experienced workforces to the organization's competitors’ further reducing leading to general poor performance. Besides, workers have been subjected to long hours of work (as compared to previous years and other competitors). Because of these, employees seem to be too lax and no longer interested in what they are doing such that, when asked most confessed to be working because they have no other option. While the industry seems to be on the verge of collapse, the CEO of the company is adamant about the situation transpiring within and outside this organization. When asked about his plans concerning the situation, his answer suggests that it all originates from employees' laziness in which he promises to fire one after another if any of them would ask about a reduction in pay.

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Applying Concepts to the Scenario

The CEO of the industry fails in many ways in addressing the challenges that are being encountered by the organization. First, the issue of reducing bonuses and cutting off payments demotivates employees. The CEO fails to understand that demotivation or poor motivation results in low workforce engagement translating to reduced productivity. Although the company faced difficult economic situations in 2010, cutting wages and salaries were not the best option, instead, the management could have reduced the number of employees without discrimination. Besides, he fails also to uphold ethical standards by discriminating against old individuals by forcing them to retire. By these steps taken by the CEO, younger employees learned that loyalty will never be repaid even after serving for those early years when the organization saw immense success. Laxity that is seen in the young and energetic employees is linked with learning that while working for the organization, loyalty, and efforts which the CEO does not understand. To him, work must be accomplished in whatever means possible without wavering. The greatest challenge to the CEO is failing to value his relationship with his workers.

Having been employed as a production supervisor I could tell the major problem facing this industry is employees’ motivation and unethical issues that its senior management does not follow. The industry CEO allows the subjection of workers to long working hours in addition to reduced pay. Despite his knowledge of these abuses, he goes ahead to fire those who question his decision about payment and other matters. By doing these, employees tend to work in fear of being fired anytime hence concentrating more on searching for alternative jobs instead of delivering hence putting the industry at more risk. The consequence of the CEO failing to realize the behavioral concept of management may result in the collapse of the company, loss of a strong workforce, and workers may end up demonstrating.

The doings by the CEO of this organization are unethical and equally illegal. I trust that by advising him on how to relate a different situation with outcomes will be important to see that workers are motivated leading to the flourishing of the industry again. To begin with, I will let him know the situation facing his employees including their motivation, pay, and laxity. By this, I would ensure that all sides of the blade are addressed concerning decisions he made since assuming the position and the possible quick resolutions to the matter. Additionally, I would provide him with the basics of business ethics and the consequences associated with failing to adhere to such. Afterward, I would provide him with a timeframe to which he should have restored all the changes he had made. Because I trust that with the advice he will adhere to the same, I would ask him to compensate the affected individuals. However, if the CEO would decline to follow the stipulated guidelines, such as observing fair labor, I would take the initiative to report to the International Labor Organization (ILO) and use appropriate enforcement means to address the same. With that, I believe that the CEO will be handled appropriately by the law but the situation at “Midfield Textile” would be better. I hope that employees will be paid as required gain their motivation, fair labor practices will be addressed, and the company will again prosper. However, I fear that my relationship with the CEO would collapse for the greater good. Reflecting on the steps made between saving my subordinates and betraying my senior, I am confident that it is the best but hard decision I ever made.