Question
Case: Rabi Wong Rabi Wong is a production manager of a company that manufactures car parts for a renowned car manufacturing company. Rabi joined
Case: Rabi Wong Rabi Wong is a production manager of a company that manufactures car parts for a renowned car manufacturing company. Rabi joined the company 7 years back and introduced a performance-based payment system in the company. A performance- based payment system is not very common in manufacturing industries in that locality. In this system employees are paid based on the number of units they produce, and the quality of the units produced. Employees are normally paid below-average hourly pay but high bonuses. Moreover, there are no health plans incorporated into this payment system. Therefore, efficient employees are earning above-average incomes. Employees with long-time experience receive salaries from $85,000 - $95,000. Most experienced employees like the system because they are earning very good compensation and they can personally influence their earnings. However, some employees do not like this system because they are not able to keep up with the intensive production methods. As a result, they are earning less compared to the experienced employees. Therefore, they want more payment security from their job. In addition, they are critical that there are no health plans incorporated into this payment system. However, as experienced employees like this payment system, and it is also beneficial to him, Rabi is not ready to modify the current payment system. Employees who do not like this system and who are unable to cope with the intensive production methods ultimately leave the company. Robert Zabo and three of his friends who joined the company two years back are very unhappy about this pay system because they are unable to cope with the intensive production methods and earning less compared to experienced employees. They feel that the pay system is unfair to them and are looking for another job. However, Andy Lee and his five friends who have worked for the company for the last 6 years like the system as they are earning very good salaries and are happy that their experiences and efficiencies are rewarded. Required: Part C: Applying theories of ethics (1,000 words max) You must undertake independent research into the theories of egoism, and utilitarianism. Now apply them as follows assuming that you are an expert in business ethics. 1. Analyse the ethical issues of Rabi Wong's case using the theory of egoism. 2. Analyse the ethical issues of Rabi Wong's case using the theory of utilitarianism. In each case, you must identify the key features of the theory being used and show how they apply/do not apply to the case. Conclude the section by explaining how a theoretical knowledge of ethics will help Rabi deal with ethical issues.
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