Leading Organizational Change

Running head: LEADING ORGANIZATIONAL CHANGE 1

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Institution

LEADING ORGANIZATIONAL CHANGE 2

Leading Organizational Change

The dilemma faced by Thomas is that, once he terminates the contract with the

organization that he outsources to manufacture one of his firm’s parts, the organization will close

down. All people in this region depend on this only organization for a living. Its closure will

mean that these people will lose their only source of livelihood. They will be homeless as well as

face starvation. If Thomas decides to carry on with the contract, the organization that he uses to

outsource manufacturing one of his company’s parts will continue overworking its employers

and give them poor pay. In this regard, Thomas should carry on with outsourcing the

manufacturing of these parts to this organization.

According to the utilitarianism approach, the decision to carry on with outsourcing

manufacturing of the parts from the organization is justifiable. The theory of utilitarianism lays

focus on the ends as opposed to the means required to attaining those ends. It takes into

consideration the current and prospective profits and problems that occur or will occur to

anybody that gets affected by the act. This is inclusive of items that are hard to assess correctly

(Schumann, 2001). Using the utilitarianism approach to continue with the contract will ensure

that Thomas’s company is able to meet its needs. Workers who work in the organization will

earn a living and be in a position to cater for their present and future needs. Through the

utilitarianism approach, if Thomas makes a decision to cancel the contract with the organization,

workers in the organization will lose their livelihoods. Thus, by carrying on with the contract the

utilitarianism approach will help to prevent this eventuality.

The utilitarian moral principle argues that an act is ethical if it yields the greatest

outcomes for the benefit of the society in its entirety. According to utilitarianism, the wellbeing

of one individual is no more or less significant than the wellbeing of another individual.

LEADING ORGANIZATIONAL CHANGE 3

Nevertheless, it does not make an assumption that everybody has to be treated in the same

manner. The principle advocates for uneven treatment of individuals so long as the wellbeing of

the majority of the population is achieved (Barlett, 2003). If Thomas decides to continue with the

contract with the manufacturing organization, he will be exercising the utilitarianism approach.

By taking this approach, he will consider that by carrying on with contract many people will

benefit. His company is able to obtain manufactured parts for his company from the

manufacturing organization. On the other hand, the manufacturing organization will continue its

operations as it is serving the needs of Thomas’s company. In addition, employers in the

manufacturing organization are able to earn a livelihood. More to this, their families are able to

feed as well as get shelter. Through the utilitarianism approach, while some people are being

treated unfairly, majority of the people affected by the operations of the manufacturing

organization will benefit.

Another option to terminating this contract will be to demand that the company treats its

employees fairly by paying them overtime once they work extra hours, increase their wage, as

well as allow them to have time off from work. Failure to do this, Thomas will threaten to sue

the company. Such an approach will be based on a rights ethic point of view. This type of ethics

stipulates that everybody has the right to live and ought to be treated with dignity and respect.

This is to say that, ethics play a huge part in guiding the manner in which people are to treat

others as morality dictates that people have to treat one another fairly in a bid to achieve their

objectives (Duska, 2002). Hence, a demand by Thomas to the manufacturing company to

improve the working conditions of its employees will mean that he takes into consideration the

conditions under which people working in the manufacturing organization work in. Having done

this, Thomas will be considerate of the rights that the workers of the manufacturing organization

LEADING ORGANIZATIONAL CHANGE 4

have. This is to be treated fairly despite the fact that their employer is the only employer in the

region. A threat issued by Thomas to the manufacturing organization that he will sue company if

it does not improve the living conditions means that he is being guided by his morals to exercise

fairness in the way workers in the manufacturing organization are treated, for him to attain his

goals. The main goal of Thomas is to ensure that the manufacturing organization is able to meet

his demands of manufactured parts for his company. However, he is aware that he should not

achieve this goal at the expense of the other people’s welfare.

In the end, utilitarian principle considers the wellbeing of the many as opposed to just one

or few individuals who will be influenced by a certain activity. As for Thomas, it will be prudent

if he extends the contract for the benefit of all stakeholders in the both businesses, who are

involved either directly or indirectly.

LEADING ORGANIZATIONAL CHANGE 5

References

Barlett, D. (2003). Management and Business Ethics: A Critique and Integration of Ethical

Decision-Making Models. British Journal of Management, 14, 223-235

Duska, R. (2002). The Ethics of Reward Systems in the Financial Services Industry. Business

and Society Review, 104(1), 34-41.

Schumann, P. (2001). A Moral Principles Framework for Human Resource Management Ethics.

Human Resource Management Review, 11, 93-111.

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