Management Issues in East Island Petrochemicals - Case Study Example

Engineering Management Name Course Name Instructor’s Name Date Abstract Managing engineers is an uphill task. They always presume that they know what they are doing and hence no body should tell or advice them on what to do. East Island Petrochemical Company is a firm that has it key goal of conducting research and thereafter manufacturing products that are aimed at solving problems facing the community. According to the Engineering Practice case study, the company has made advancement in technology, producing KCB32 a fuel additive that increases efficiency in fuel automotives. However, as already observed, managing engineers is a complex duty and hence East Island Petrochemicals is confronted with various management and ethical issues. This paper identifies these issues in the Engineering Practice Case study. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Management Issues in the Case Study 4 Project financing 5 Sexual harassment 6 Employee appraisal 6 Emphasis on Results 7 Protecting intellectual property 7 Ethical Issues in the Case Study 8 Lack of respect 9 Engaging irresponsibly with the community 9 Sabotaging company achievements 10 Not exercising good leadership 10 Conclusion and Recommendations 10 References 12 Introduction Engineering is sophisticated field to manage. Mangers in this profession attain their positions through their achievements in their technical works. Consequently, engineering managers are prone to criticism from their juniors who in most cases tend to believe that they know what they are doing and hence giving them instruction undermines their knowledge. The East Island Petrochemicals Company is a company that does research work and its main objective is to find solutions to various problems affecting the society. Companies are led by human beings and these individuals are prone to make mistakes that in one way or another undermines management ideals. Consequently, some actions result into vices or behaviours that are seen by the community to be unethical. The paper discusses the management and ethical issues as displayed in the Engineering practice case study. Management Issues in the Case Study Management problems are ultimately traced to different managers in different management departments. Management in the field of engineering is somehow complex given the fact the manager in his respect always is confronted with the desire to participate in extensive details of technical work (Das & Prabhudesai, 2004). For instance, he or she is not obliged to make decisions that are below or above his level in the organization; it is wrong to decide on matters that are below or above his level of management. Accordingly, engineers have phobia for criticism thus making supervising rather managing them an uphill task. Consequently, the fear of criticism hinders engineers to delegate some of their duties (Das & Prabhudesai, 2004). For engineering managers to be effective in delivering on their duties, they must not be afraid of criticism and must also review work performance of their juniors (Das & Prabhudesai, 2004). By so doing, they will develop their managerial skills and become vastly aware of human problems emanating from technical work. In this section, the paper will identify management issues in the Engineering practice case study. East Island Petrochemicals Company research division has projects that are geared towards uplifting the living standards of the community by producing products that will enhance efficiency particularly in automotives. The KBC32 is a fuel additive product that the company has invented; this product will increase the octane rating of normal fuel automotives. However, despite this initiative, the company management is ravaged with the following management issues that will in one way or another affect its performance in the long run. Project financing The East Island Petrochemical Company has at least forty research projects that they are currently undertaking. This, from the outlook shows that the company is dedicated towards finding working solutions to several problems affecting the society. However, in order for these projects to be fully successful, substantial amounts of funds is required to run them. As depicted from the case study, Walpole, the head of the division is involved in extensive money lobbying and at times approaching the senior management and even company directors in order to ensure that he secure funds enough for projects financing. Mangers in any company must have a financial budget that guides their financial expenditures (O’Connor, 2005). Following this understanding, it is essential for managers to pursue only those projects that the company has provided funds for. Anything outside this should not be funded until it is budgeted for. A good company with well established or comprehensive financial management department must budgeting systems that demands that all departments within the company budget for all their activities (Dhillon, 2002). For instance, budgets for specific projects should be formulated and funded within a definite time interval. Sexual harassment It is a management obligation to provide a conducive working environment for all its employees. Sexual harassment when encouraged within a company’s working environment it will definitely affect the final company output (Shrestha, 2008). According to the Engineering practice case study, the Head of The Division Mr. Walpole, has a womanizing character and on several occasions he has been implicated in sexual harassment suits. Furthermore, we see that with a slightest opportunity of being in company of a lady, he is prompted to harass her sexually. For example, we are told that on few occasions when he had to discuss work issues with Melisa in isolation, he tried to grope her. Sexual harassment in addition to being a management issue, it is a gross criminal offense. Employee appraisal Employee satisfaction is one of the key drivers of performance in any company. Employees in most cases derive their satisfaction from recognition, promotion, and getting rewards for meeting company and personal goals (Shrestha, 2008). Employee appraisal is a management issue at the East Island Petrochemicals; we find that despite of Mr. Brian Bunsen working for the company for the rest of his life as an Industrial Chemist, he has remained in the same position as a supervisor. His expectation of become the Division’s Head were shunned when Mr. Walpole was recruited for the position just five years ago. The gross impact of this is that, Mr. Brian decided to work at his minimum levels and not putting his efforts and expertise to effectively deliver. For instance, his relationship with Walpole is not good because he feels Walpole took a position that was rightly his. Emphasis on Results Productivity of any company is wholly derived from individual employee performance (Murray, Poole & Jones, 2006). Organizations that are aimed at increasing their productivity and efficiency must have regulations in place that will compel employees to work effectively and deliver results. For instance, employees should not be allowed to leave critical duties unattended to. At East Island Petrochemical company, Trudy, the technician and the one responsible in assisting the junior staff within the company is fond of mixing her family life with work. For instance, when she is stressed because of family matters, she sometimes leaves critical work unattended to thus compromising the overall performance of the division. Protecting intellectual property Company inventions are its valuables that must be protected at all costs. It is the duty of the company to ensure the invented new products are not reproduced by its competitors (Murray, Poole & Jones, 2006). Consequently, the product’s manufacturing technology should not be allowed to fall into the hands of the competitors or parties that can use the technology for malicious purposes (Murray, Poole & Jones, 2006). In this regard, we find that although East Island Petrochemicals have a confidentiality agreement that is signed by all its employees together with annual intellectual property protection seminars conducted every year, there is still much that ought to be done (Das & Prabhudesai, 2004). For instance, in the engineering practice case study we find that despite having the confidentiality agreement and intellectual property protection seminars, Rodger and Trudy can find their way out to still company’s precious technology and sell it to Milton Steiner, the head of Steiner Industries. Steiner Industries is a company that also deals in petrochemical research activities. Ethical Issues in the Case Study Engineering profession like any other profession demands engineering practitioners to use their knowledge and skills to uplift the well being of the community and above all come up with engineering solutions to further the well being of the society to a later end (Murray, Poole & Jones, 2006). Ethical issues in management arise as a result of fostering moral development, making decisions that are moral, and the role to ensure that social responsibility is adhered to (CSEP, 2012). Ethics is a philosophy that is concerned with human behaviour in a social context and is derived from values instead of facts. In this regard, individual and shared values are very important. It should be noted that, social and economic factors do not form part of ethical decisions; however, most of ethical decisions have social and/or economic implications. Ethical perspective with regard to moral rights dictates that respect for one’s innate rights and liberties are very important. For instance, rights to free consent, privacy, freedom of conscience, due process and life and safety must always be respected (CSEP, 2012). This section is dedicated towards identifying various ethical issues found in the Engineering practice case study. East Island Petrochemical Company as already discussed above, is a company with a aptitude of coming up with solutions to problems affecting the society through their research work. The KBC32 is a product that the company has invented and is aimed at solving inefficiencies in fuel automotives. Conversely, regardless of this sound achievement that will earn the company huge monetary benefits, the company’s employees have acts that leave many moral questions unanswered. In the engineering practice case study, the following ethical issues can evidently be identified. Lack of respect Treating people with courtesy regardless of their gender, race, religion, sexual orientation, marital or family status shows that you respect the dignity of that particular individual (CSEP, 2012). In this regard, knowledge and skills should be applied universally and without bias particularly to those that you are dealing with (Klikauer, 2012). Across, the engineering practice case study, we find that several employees of the East Island Petrochemical company lack respect for others. For example, Walpole has no respect for Melisa, he advances his inappropriate sexual behaviour to her despite the fact that she is working under him. Consequently, Brian engages himself in unhealthy arguments and rivalry with Walpole knowing very well that he is superior to him at management level. According to the Australian Institute of Engineering Code of Ethics, it is paramount for all engineers to respect others and treat them with dignity. Engaging irresponsibly with the community Employees of any company are required to conduct themselves with respect and dignity at any point and time in public places (Petrick & Quinn, 2000). This is a responsibility that uplifts the image of the company in the ayes of the public (Engineers Australia, 2009). The way and manner in which Rodger and Trudy conducted themselves at the drag meeting was completely unethical. As employees of East Island Petrochemical they were not supposed to expose their romantic relationship in public. Furthermore, Rodger ought to have acted better than that; Trudy is a divorced lady and associating with her paints a disturbing picture in the public eye. The Australian Institute of Engineering Code of Ethics demands that any engineer should conduct himself or herself with dignity in the community (Engineers Australia, 2009). Sabotaging company achievements Protection of company achievements like a new technology and new products is a duty that employees and managers alike must take at heart (Engineers Australia, 2009). It is adversely unethical for an employee to become a rogue employee and still such products and sell them competitors of the company. The means and method that Rodger and Trudy used to obtain and eventually sell the KBC32 to Steiner Industries was morally wrong. They not only sabotaged their reputation but also ruined East Island Petrochemical Company chances to earn the expected profits. Not exercising good leadership Any leader in engineering is entitled to upholding the reputation and trustworthiness of the engineering practice, he or ahs must communicate honestly and effectively, and taking into account the reliance of others in the engineering practice (Rothman, 1999). For instance, he/she should treat others the way he/she would want to be treated, not only the way he/she would like to be treated (Petrick & Quinn, 2000). In the case study, Trudy lied to and use Melisa acquired the 25ml of KCB32 that she and Rodger later sold to Steiner. Trudy used her position improperly thus not exercising good leadership. In this regard, Trudy acted contrary to the Australian Institute of Engineering Code of Ethics that foster good leadership in management. Conclusion and Recommendations When Melisa that indeed that what Rodger and Trudy had traded with Steiner was the company’s KBC32 she was to go meet with the three as they were trading. In this way, Melisa would evidently show Trudy and Rodger that what they were doing was wrong. Accordingly, she had to explain to them the consequences of their action and the gravity of harm they had done to East Island Petrochemical Company. In the same line of argument, she had to advice the two to return the money back to Steiner for him to give back the KCB32. With regard to Trudy and Rodger romantic involvement, Melisa had to advice them that their image in the public affects the company in many ways. For instance, she had to tell them that they should maintain their courtesy and dignity in the eyes of the public. This would on the other hand earn the company social responsibility credentials as a company that has well behaved employees. In future, Melisa should not allow herself to be used by other employees regardless of their position in the company. For instance, she must make sure that before signing for the release of any company product, she must have full knowledge or full consent that that product is going to be used in the right manner and in the benefit of the company and the community at large. References CSEP. (2012). Code of Ethics (2000). Retrieved on 7/5/2013, from; http://ethics.iit.edu/ecodes/node/5080 Das, K. D., and Prabhudesai, K. R. (2004). Chemical Engineering: Problems and solutions. New York: Kaplan AEC Engineering. Dhillon, B.S. (2002). Engineering and Technology Management. Tools and Applications. Washington: Artech House Engineers Australia. (2009). The Institute of Engineers, Australia: Code of Ethics. Retrieved on 7/5/2013, from; http://www.ipwea.com/Code%20of%20Ethics_Consultation%20Draft09.pdf Klikauer, T. (2012). Seven Management Moralities. Washington: Pagrave Macmillan. Murray, P., Poole, D. and Jones, G. (2006). Contemporary In Management and Organization Behaviour. New York: Cengage Learning O’Connor, P. (2005). The New Management of Engineering. London; Lulu Inc. Petrick, J.A, and Quinn, J.F. (2000). Management Ethics: Integrity at Work. New York: Sage Rothman, J. (1999). Successful Engineering Management: 7 Lessons Learned. Retrieved on 7/5/2013, from; http://www.jrothman.com/1999/01/successful-engineering-management-7-lessons-learned/ Shrestha, J. (2008). Moral and Social Dimension of Management. Retrieved on 7/5/2013, from; http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1366924 Read More