Tinikits, Inc. is the manufacturer of miniature models, especially of
automobiles with historical interest. The company is developing new
standard costs. Trent Roswell suggests that the new standards for
materials should not include any waste for liquid plastics that spill
out of the molds. "After all," he says, "we're trying to be a world
class company. When we build in waste, we tell the workers it's okay to
waste some." Betty Farrell, another manager, disagrees. "If we don't
allow for some normal human error," she says, "we'll have a mighty
unhappy work force. Also, I think that these kinds of perfection
standards exploit the workers. I certainly wouldn't want to be held up
to perfection every day—what could I do but fail?"
The argument continued. Finally, the standards were prepared. All
standards were prepared according to normal expected performance, except
that for materials, an ideal standard was used. Betty, still
maintaining the unfairness of the system, refused to hold her workers
accountable for materials quantity variances.
Do you think it's fair to use ideal standards to evaluate a department
or workers ? Is it unethical for Betty to refuse to support the
standards? Explain.
Click here for the solution: Tinikits, Inc. is the manufacturer of miniature models, especially of automobiles with historical interest
