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Does This Milkshake Taste Funny?


Andrea August

on 11 May 2016

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Transcript of Does This Milkshake Taste Funny?

Does This
Taste Funny?
Managerial Ethics
based on ethical decisions
guide manager's behaviours
not proper training process

employee's non positioning

unsanitary place
ethical dilemma
Managerial ethics
to better moral judgments,
Ethical Dilemma
Ethical dilemma
Managerial Ethics
focused on ethical decisions and guide the decisions and behaviors of managers with regard to whether they are right or wrong.

Value-based leadership
is explained from the relationship between a leader and employees that overall decision from the leader.
Managerial ethics
should focus on clear process
should increase to use legal requirements
& proper training
should concern damage of product
Value-based leadership
Relationship between leader &employees

control others with care

accept mistake & failure

let people communicate & active
Value-based leadership
focus on combining
George Stein, a college student

Eastern Dairy Company, ethical dilemma

 Makes milkshake mix

 Night Shift

Poor management and organizational structure

Filters for mix is clogged by maggots
George Stein
Highly adaptive to surroundings

Social person (Needs for friendship and belongingness)

Loves excitement and challenges

Loves “ROMANCE” (Needs for acceptance and acceptance)

Needs money for car and dating (Maslow’s Hierarchy of Needs)

Not a High-Achiever
Eastern Dairy Company
To be a pay leader

Great degree of autonomy to night shift employees

Sets target to night shift employees

Equity in the work environment

Formation of an employee union

Relying on OCCASIONAL visits by inspectors

Storage warehouse poorly maintained
“Lead Operator” self-proclaimed

Main aim is to produce specific production target

No sense of responsibility
Absence of visible management
a must to increase visibility
appointing a manager
responsible for work schedule
organizing resources
leading the team to complete task
controlling night productions to be met in a consistent manner
Set Goals
Keep the organization moving forward

Giving employees a direction

Set a standard for future reflection
Goals should be SMART
Quality Assurance and Inspection
Quality Assurance and Inspection
This individual would need to be trained in established health and safety standards for the industry, such as Hazard Analysis & Critical Control Points (HACCP). HACCP is a management system used in the food industry, for analyzing the safety of food from the procurement of the raw materials, storage and handling, to the manufacture, distribution and consumption of the finished product.
Eastern Dairy needs to have the warehouse inspected and implement strict guidelines

A quality assurance inspector

On each shift there should be someone appointed to inspect the raw material before it is processed and the finished product before it is packaged for distribution.

The quality assurance personnel would be required to submit their inspection reports to the respective manager in charge of operations at Eastern Dairy.
Introducing Code of Ethics
Unethical behavior is prevalent in Eastern Dairy

Code of Ethics would provide guidelines for managers and employees when they are faced with ethical problems

The Corporate Culture has to be changed
Thank you
Educational Advancement Program
tuition reimbursement

highly educated persons will make ethical decisions

lack of an education work force is hampering the operations of Eastern Dairy
Discussion Questions
1. What role did time play in this case?
Very significant because completing the night shift work on the time was the main focus.
Time plays a good role when it is rightly used and supervised.
Time, in this case, plays a negative impact for the lack of capacity of the employees which drives them to make bad and unethical decisions and forgetting about the consequences.
The company focused mainly on completing work on time and not on the quality of the finished products and because of that focus on time, they forget about the other important aspects.
2. In this plant, under the circumstances we read about, why would a choice be made to run the product without filters? What were the dynamics contributing to such a choice?
They lost a lot of time checking and cleaning out the maggots from the filters and had little time to complete production before their shift was over.
Paul said that the homogenization process with pulverize solid matters and the pasteurization process will kill any bacteria so in his mind, the filters could be taken out.
They needed to process 500 gallons of product before their shift was over and Paul wanted to go home on time.
3. If you were George, what would you do? What would be the likely consequences?
4. It is quite possible that management would never learn about this incident, but over time such practices are bound to lead to problems for the dairy. Using principles from the chapter, what should management do to prevent the occurrence of workers making similar choices?
In this position where George found himself, the best solution would certainly be to call a supervisor or somebody from the management department for assistance in that matter, since the nightshift doesn’t have a supervisor to make the call of either remove the filters or keep filters and produce the 500 gallons of the remaining vats.
Another alternative in this case will be to ask the rest of the co-workers what would be the ethical action to do and come to an agreement in which all of them will assume the consequences of whatever the management decide to do afterwards.

The consequences of this could be huge for the company and for the workers:

• Workers can be fired due to negligence
• The company can get sued by a large amount of money for
unethical action and lack of hygiene procedures
• The company can get temporarily or indefinitely closed
• They could lose their license to sell milkshakes and ice
creams so they will have to come up with a new product and
start all over again
• In the case that they don’t get closed and win the lawsuit
they will be forever labeled as the “anti-hygiene brand” of

Managers first should answer the following questions to come up with different alternatives for the problem:
• Where did it occur?
• How did it occur?
• To whom did it occur?
• What is the urgency of the problem?
• What is the interconnectedness of events?
• What result came from which activity?
In order to solve this problems, managers should assign a nightshift supervisor in the first place; secondly, they should have an inspector or maintenance engineer to check the machines, pipes, filters, and all the equipment before and after every shift.
Create a contingency plan for different types of emergencies such as this one, and have outsourcing companies to help in the case of an emergency so they can fully supply the customers’ demands of the day.
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