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Case
-
Reference no. E412-034-1
Spanish language
Authors:
Published in:
2012
Version:
September 2009
Length:
13 pages
Data source:
Field research

Abstract

This is part of a case series. Disenos Asociados, CA (DACA) is an engineering company which faces trouble when trying to undertake industrial construction projects without the appropriate human resources to execute them. This weakness led the company to produce low quality engineering documents and therefore, rework additional costs, construction delays and conflicts with the projects' owners. The man-hours incurred in rework resulted in a financial crisis that compelled the company's President to take a decision about using the company's employees pension savings (according to the Venezuelan Labor Law) to extend the company's life. The case is divided into two parts: A and B. Part A treats the President's ethical dilemma, in decision making - to use or not the employees' retirement savings - to save the company. Part B deals with the organisational climate following the decision, and its behavioural consequences. This case has been prepared for graduate students in business administration, in courses on organisational behaviour, specifically on topics related with organizational justice and climate, as well as in courses on ethics.

Topics

Organisational behaviour; Organisational justice; Management behaviour; Organisational conflicts; Ethics; Venezuela
Location:
Size:
300 employees
Other setting(s):
1993-1994

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