Dash Riprock is a cost analyst with Safe Insurance Company. Safe is applying standards to its claims payment operation. Claims payment is a repetitive operation that could be evaluated with standards. Dash used time and motion studies to identify an ideal standard of 36 claims processed per hour. The Claims Processing Department manager, Henry Tudor, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Henry and Dash were unable to agree, so they decided to discuss this matter openly at a joint meeting with the vice president of operations, who would arbitrate a final decision. Prior to the meeting, Dash wrote the following memo to the Vice President of Operations.

To: Anne Boleyn, Vice President of Operations

From: Dash Riprock

Re: Standards in the Claims Processing Department

As you know, Henry and I are scheduled to meet you to discuss our disagreement with respect to the appropriate standards for the Claims Processing Department. I have conducted time and motion studies and have determined that the ideal standard is 36 claims processed per hour. Henry argues that 30 claims processed per hour would be more appropriate. I believe he is trying to "pad" the budget with some slack. I'm not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet next week.

How do you recommend Dash and Henry reach an agreement concerning the appropriate claims processing standard? Which standard (if either) do you think is best and why? Do you think Dash was acting in an ethical manner by writing the memo to Anne Boleyn?