Ethical Decision-Making: A Project Management Case Study

This case study analyzes an ethical dilemma faced by a novice project manager, Jim Rains, who discovers that an experienced superintendent, Bob, is utilizing company carpenters for personal projects while they are being paid by the company. The ethical issue revolves around whether Jim should allow this practice to continue or take action, considering the potential impact on company finances and employee morale. The case explores the conflict between Jim's ethical concerns and Bob's long-standing practices, along with environmental constraints that limit the carpenters' utility on-site. The project manager decides to hire the carpenters on a contractual basis during the summer to address the issue, balancing cost savings with potential employee dissatisfaction. The study emphasizes the importance of ethical decision-making in project management, ensuring stakeholder satisfaction, resource optimization, and long-term sustainability. It also highlights the necessity of a code of ethics for project managers to build trust and maintain a professional reputation, ultimately contributing to the company's overall success and ethical policy.

ETHICAL ISSUE IN PROJECT
MANAGEMENT
Case Study of a Novice Project Manager

ETHICAL SITUATION
The Ethical scenario here
is whether Jim Rains
should allow Bob to
continue with his strategy
to utilize carpenters to
work for his personal
purpose while their salary
is being or lay off the
carpenters as company
can not sustain in long run
with the policy taken by
Bob although he is an old
and experienced
superintendant

ETHICAL ISSUE
 Ethical issue here is whether Bob is doing the right thing to
utilise the workforce for his personal benefits although the
salary of the carpenters is being paid by the company.
 On the other hand the carpenters can not be utilised by the
company due to environmental constraints. Which, led to
the labour dissatisfaction.
 It is a moral conflict between view points of Jim and Bob.
Although both want to contribute in well being of the
company but a moral conflict is there.

DECISION TO BE MADE
 The decision to be made here is whether Jim
should do what he finds ethical i.e.
Questioning the system followed by an old ,
experienced head superintendent Bob or
implement a strategy to utilize the workforce
in a alternative way efficiently. The decision
made should be for best interest of the
company.

PROBLEMS IT CREATES
It creates a problem of utilizing workforce. Due to
environmental constraints the carpenters do not have any
work at the construction site. Using the carpenters for
sweeping the floors are not feasible enough as it takes
very less time to do it and other time they just hang
around and still gets paid.

BENEFITS IN RESOLVING
 The benefits of resolving the issue is the company
will not have to pay extra wages.
 Bob was very reluctant to the whole problem leaving
Jim in dilemma regarding confronting one of the
company's most efficient superintendents who has
huge experience. Jim if reports and solves the
problem then he can contribute to company’s growth.

DECISION OF PM AND ANALYSIS
 The project manager (PM) decided to hire the
carpenters on contractual basis. He decided
to hire the carpenters only in the summer
and pay for the hours they worked.
 Strengths- the company will not have to pay
for the time the carpenters did not work. It
will save company’s money and prevent
unethical advantage taken by Bob
 Weakness- The carpenters may get
demotivated and not return to the company.
Employee retention will be difficult in future
due to this contractual service policy.

ALTERNATIVE STRATEGY AND
ANALYSIS
 The alternative strategy can be using less
number of carpenters during rainy season
and hire some contractual carpenters during
summer to carry out extra work efficiently.
 The strategy of using the carpenters for
sweeping is not fruitful because it takes only
2 hours for it but they earn payment for the
whole day.
 The contractual hiring policy may lead to the
carpenters being insecure about their job and
may not return to work in future(Beringer,
Jonas and Kock, 2013).

HOW IT CAN BE IMPLEMENTED IN
ETHICS POLICY
Ethics is often defined as the best possible decisions taken
by taking into grant all the stakeholders, resources and the
environmental constraints. Correct ethical choices lessen
risk, ensure positive outcomes, increase trust, determine
success in long run and build reputations as well.
In this case the ethical situation has been resolved
by both satisfying Bob and Jim. The steps taken will be
helpful for employee satisfaction

WHY CODE OF ETHICS IS IMPORTANT
FOR PM
 Bringing the job on time is not the only
quality of a good project manager. Ethical
behavior is must to build a reputation as a
trustworthy and highly professional and
efficient project manager.

HOW THIS CASE MAY INFLUENCE MY
TEAM’S ETHICAL POLICY
 This case shows that company’s
sustainability and efficiency should be the
common goal for all the concerned
employees . Here by the action taken by PM
all the four values that drive effective project
management has been maintained.