Managerial Ethics 1

[impeller1]

Good People,

So my boss, or I should say one of my bosses, who is the senior mechanical engineer, was in charge of a job a few months ago. It was to modify a balance line on a pump we have onsite. (Keep in mind this pump is critical to plant operations.) A quotation was submitted by a contractor to do the works and then, a few days after, they submitted a change increase in price of approximately $1,100 US. My boss received VERBAL approval on accepting this change and the job was carried out successfully. Last week, management re-examined the issue and decided that they were not going to pay the additional 1100 dollars and that my boss did not get written approval and that he had to pay this money out of his own pocket. I mean yes my boss did not submit the written approval in time but he did get a verbal..he got the job done quickly as every second this particular pump is offline, revenue is lost and he is still being made to do this?! What are your opinions? I think its wrong..

 

[MacGyverS2000]

Your boss was wrong in not getting it in writing (company policy, I assume?), but the company cannot make him pay for it out of his own packet.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[PEDARRIN2]

They can deduct it from his paycheck - which amounts to the same thing as paying out of his own pocket.

 

[MacGyverS2000]

I think the company will run into legal issues deducting things like that from someone's paycheck...

Dan - Owner

http://www.Hi-TecDesigns.com

 

[TheTick]

This goes beyond ethics and into law. The company is almost certainly acting illegaly.

 

[JLSeagull]

I was involved in a similar situation in about 1984. Someone in higher management approved the change - and nothing was taken from the project manager's paycheck. Someone at a higher level can approve the change. These type situations cause sufficient anger for one to quit without notice - in better times.

 

[TheFeds]

Sounds very unethical and illegal.

If the manager is entitled to make contracts on behalf of the company (and this is implied, since the company apparently knew what was going on with the critical process equipment), then barring any fraudulent conduct, the company is solely on the hook for nonpayment. The contractor is not entitled to recover anything from the manager himself (because the contract was not made on his own behalf). So, if they don't get their money, they sue the company. The company can sue its own manager, afterwards, if it wants the money back that badly.

But generally, barring some very strange (and probably unenforceable) contract of employment between the manager and the company, they're out of luck with regard to directly deducting it from his payroll, or billing him for it. (That's a good way for the company to get itself sued for breach of contract for failing to pay wages.)

And now that they've made that empty threat, if they instead exercise their recourse to fire him, they've also conveniently provided him with a rationale for a wrongful termination suit.

Any way you look at it, the company is screwed now. The best plan is to eat the expense, and admonish the manager for not following the required procedure. Anything else will end up costing more in legal fees. The worst-case scenario would be a court order to pay the contractor or have the machinery seized—a court probably wouldn't go that far, unless there was serious bad faith, and no other prospect for recovering the money.

 

[impeller1]

Well at the moment he's considering simply walking out..but i dont think he will as he has a family to care for..

 

[Eleceng01]

....but I bet he will begin 'polishing' his resume tonight when he gets home. I would!

If this is your companies mentality, then I might begin looking too before something similar happens to you.

 

[Eleceng01]

also, isn't "managerial ethics" an oxymoron?! LOL!

 

[ImminentCollapse]

Don't know what size your company is or revenue numbers or net income etc., but to do this over $1,100 means something else is at play.

Has this happened several times and managment has drawn a line? Is this a "problem" employee they are trying to get rid of? Office politics? Company financial problems?

It just seems like for $1,100, good employee, first offense it would be a slap on the wrist, and a "don't do it again" admonishment.

 

[ARenko]

Where is the guy who gave the verbal approval in all this?

 

[patprimmer]

If he cannot find another job and leave, I think he should at least allow the plant to shut down until he has clear written authority next time the plant needs work done on it.

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

http://eng-tips.com/market.cfm

for site rules

 

[GregLocock]

I'd say your boss has nothing to worry about, unless there is an explicit policy that he was aware of that said verbal contracts are not OK. Where I work there is a very tedious training course on this and similar commitements, so I imagine if I had done this they could slap my wrist/terminate me with extreme prejudice.

Cheers

Greg Locock

SIGlease see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[SNORGY]

"A quotation was submitted by a contractor to do the works and then, a few days after, they submitted a change increase in price of approximately $1,100 US. My boss received VERBAL approval on accepting this change and the job was carried out successfully. Last week, management re-examined the issue and decided that they were not going to pay the additional 1100 dollars and that my boss did not get written approval and that he had to pay this money out of his own pocket."

I find it difficult to believe that this stuff actually happens. What kind of place does this? Probably a place run by MBAs.



Regards,

SNORGY.

 

[desertfox]

Hi impeller1

Who did your boss get verbal approval off and where is this person now?

desertfox

 

[Ron]

managerial ethics? That's an oxymoron.

 

[impeller1]

The General Manager gave the guy approval..and yes, the company is a private owned company, owned by a single person so we're subjected to whatever he "feels" like doing at the point in time. Its utter rubbish..I am currently looking for another job as although the work itself is not bad, the company is not a good place to work as what i described above is an example of the sort of nonsense that takes place here

 

[jmw]

Ron, you and I were beaten to Oxymoron by Eleceng01!

Managers are supposed to be authorised to make deals but in reality they usually have to follow the rule book.

But you have to assume the guy has authority to spend $1100 on paper clips, or sandwiches and soft drinks at lunch time meetings all year long if he chooses and so why not on customer good will? Heck, they probably spend that in a week on dining out with clients and the top boss could probably spend that on a single "business lunch" at the golf club.

So yes, $1100 seems chicken feed over which to either beat up on the manager or create a fuss with the client; its a hell of small amount over which to lose a customer.

So is there some thing behind all this as ImminentCollapse suggests?

Which brings us back to oxymoron; top management are, as usual, behaving in their usual devious unscrupulous ways whichever scenario is true.

By the way, please don't say this is a family run company.





JMW

http://www.ViscoAnalyser.com

 

[impeller1]

Yes it is a family run company ..there is a board of directors but they couldnt care less and would not question the CEO anyway and well my boss and the CEO have not always seen eye to eye..but still..i think it's a harsh thing to do.