Question

As part of their job responsibilities, engineers often have to make decisions related to the financial well-being of their organization. This includes the process of downsizing: reducing their staff and subcontracting the work/jobs. Some of the reasons for downsizing include:

1. To reduce the cost of production/operations by shifting work to lower-cost wage regions (domestically or internationally).
2. To reduce the cost of production/operations by introducing advanced technologies (e.g. automation) that require fewer employees
3. To gain market share in other regions by setting up plans in new targeted markets. Some of these markets may require using local labor by creating "local" employment opportunities.
4. To lower production cost by taking advantage of incentives offered by another locale (i.e. another city, state, or country)

Discuss the ethical issues and responsibilities associated with downsizing and how they related to the engineering code of ethics.

Answer 1

Downsizing defines the strategy in which an organization improve its efficiency by restructuring in working process, reducing the workforce or need to change in the organization's system. It refers to the process of reducing in the operating cost and the overall size of an organization. Ethical issues and responsibilities associated with downsizing can be classified into the following manners:

Communication should be the ethical responsibility of an organization when it takes the decision of downsizing. Priority of employees privacy should give and communicate with them in personal. The organization should explain honest motive behind layoff and try to convey them in respecfully soften words.

At the time of downsizing decision, the organization should provide few weeks before layoff. The organization should check and prepare that the employees who are going to layoff if they have any remaining compensation or benefits with them.

The organization should be more responsive to its remaining employees and set a future goal to achieve for an organization. The organization should provide its realistic image to their employees and motivate them with more participative style in the organization decision. The organization should focus on some factors such as feedback, rewards, bonus, supports, individual recognition in an organization and provide right direction to the organization's goal in timely manner.

Engineering code of ethics refers to set of obligations and standards which applied on engineers on the basis of their working organization, organization employees, public interest, professionalism and their clients. In above downsizing decision, engineering code of ethics can be related to define the problem of the downsizing decision which has been taken by an organization. Engineering code of ethics can be related to identity the affected parties that will be affected due to this downsizing decision. It shoud respect for people's dignity & right, intergrity in the relationship, respect their colleague's profession and take responsibility for society. It can help to explore more optional solution to the organization where it can be affected less employees layoff by downsizing. It can be also said that it is the action where organization creates new opportunities in different location after downsizing.