Ethics During Change
June 26, 2013
University of Phoenix
Introduction Organizational change is when companies are undergoing or have undergone a transformation to some degree. While implementing change into a business environment, many issues arise that test ethics and morals alike. In today’s world, organizations must introduce change in their business in order to advance and compete with the fast moving business world around that surrounds us. Companies must carefully introduce changes while at the same time considering the ethic implications of the changes introduced (Ramanathan, 2008). The list of changes that can be made within a company is endless and continually being added to.
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Individual organizations have to decide if the risk of spending money on training will surpass the profit of the new product. The organization may face resistance from employees that are stuck in their ways and do not believe the new product will be successful. If the new product does not do well on the market, shareholders are likely to withdraw their shareholding from these companies causing a possible collapse of the company (Sonenshein, 2009). Outsourcing business services to an external provider also poses ethical issues because employees may see this as the company being incompetent and unable to handle the task on their own (Bashir & Afzal, 2007). The biggest ethical implication from outsourcing is that employees within the organization who feel competent to perform the outsourced service will feel neglected and overlooked. Another fear is that shareholders may feel that some business services that have been outsourced can be performed by the same organization outsourcing the services. This may cause them to see it as funds that may as well be profits being transferred to other organizations. If a company begins to outsource services to other countries, there will be social implications such as unemployment as well as a reduction in economic output. In order to keep the moral up within organizations during and after times of change, Companies will try to introduce reward schemes or performance evaluation schemes. This is done as a