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At Arnold Company, production workers in the Assembly Department are paid on the basis of productivity. The labor time standard for a unit of production
At Arnold Company, production workers in the Assembly Department are paid on the basis of productivity. The labor time standard for a unit of production is established through periodic time studies conducted by Douglas Management Consultants. In a time study, the actual time required to complete a specific task by a worker is observed. Allowances are then made for preparation time, rest periods, and cleanup time. Joe Allen is one of several veterans in the Assembly Department.
Joe is informed by Douglas that he will be used in the time study for the assembly of a new product. The findings will be the basis for establishing the labor time standard for the next months. During the test, Joe deliberately slows his normal work pace in an effort to obtain a labor time standard that will be easy to meet. Because it is a new product, the Douglas representative who conducted the test is unaware that Joe did not give the test his best effort..
Who was benefited and who was harmed by Joes actions?
Was Joe ethical in the way he performed the time study test?
What measures might the company take to obtain valid data for setting the labor time standard?
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