About ProTech, Inc.

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Freshman (College 1st year) ・Business ・MLA

In his position as vice president of ProTech's Control Systems Division, Scott Clifford faces an ethical dilemma. He is unable to notify workers and consumers of the significant consideration of the removal of the product line of the control systems. The leaks of such details can be devastating for the company as workers are searching for alternative jobs immediately, while clients such as Exxon are looking for the products of other providers. In case of eventual abolition of the production line in short term, the preservation of such information would detrimental to employees' and customers' unpreparedness. Clifford should be honest with the employees and inform them of the imminent closure of the product line. The fact that the control systems product line’s plant manager, Joanne Lembert, noticed inventory cutbacks for the product line shows that she sensed less commitment by the corporate towards the product. Honesty in an organization builds trust and respect which facilitate good working relationships and success. Clifford should, therefore, overcome the difficulty involved in breaking bad news and tell the control systems team the truth. He should deliver the message inclusive of all the details leading to the closure with clarity and request for employees’ feedback. The team’s input may include ideas that shorten the expected break-even point of the business.

Clifford should hold the truth from the customers until there is certainty of their inability to deliver the product. The continued search for a strategic business partner portrays ProTech’s optimism in the long-term operations of the control systems product line. The Control Systems Division should utilize the limited resources available to complete the work in progress. Customers that had already contracted ProTech should receive their products regardless of the inventory cutbacks. The potential customers such as Exxon should be informed of the closure after it happens and prior engagement with such customers should be commitment-free. Withdrawal of the bid to supply Exxon with a control systems product should be done and communicated by Clifford considering the unfavorable conditions of delivering the product.

Conclusively, Clifford should embrace honesty and tell the employees the truth since they are part of the organization. The customers, however, should be kept from the truth until the management makes a final decision to close the control systems business. This approach promotes both employees’ and customers’ loyalty in case there is a turnaround in fortune.

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