Question

ash Riprock is a cost analyst with a Safe Insurance Company. Safe is applying standards to its claims payment operations. Claims payment is a repetitive operation that could be evaluated with standards. Dash used time and motion studies to identify an ideal standard of 36 claims processed per hour. The Claims Processing Department manager, Henry Tudor, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Henry and Dash were unable to agree, so they decided to discuss this matter openly at a joint meeting with the Vice President of Operations, who would make a final decision. Prior to the meeting, Dash wrote the following memo to the Vice President:

To:             Anne Boleyn, Vice President of Operations

From:       Dash Riprock

Re:             Standards in the Claims Processing Department

As you know, Henry and I are scheduled to meet with you to discuss our disagreement about the appropriate standards for the Claims Processing Department. I have conducted time and motion studies and have determined that the ideal standard is 36 claims processed per hour. Henry argues that 30 claims processed per hour would be more appropriate. I believe he is trying to "pad" the budget with some slack. I'm not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet with you next week.

Instructions

Discuss the ethical and professional issues in this situation.

Note: add citations when necessary.

Answer 1

The use of ideal standards is a legitimate concern for Henry. It is likely that such standards are too tight and do not include the necessary fatigue factors that are likely in this type of operation. It seems as though Henry is arguing for practical standards that can be attained if the operation is running well. Maybe some standard in between is warranted, but that is not the issue.

The issue is Dash's method of operation. Dash has effectively agreed to have this dispute arbitrated with a senior official. However, Dash is trying to seal the fate of the argument behind the scenes, before the issue is discussed openly, as agreed. Moreover, Dash is attributing poor motives to Henry behind his back. Dash may have short-term success with this method of operation, but in the long term he will likely alienate himself within the organization. He may create a distrustful environment that would eventually hamper his ability to provide open, honest feedback. People may eventually avoid him and hide the truth from him.