Ford Pinto safety decision and the Ulrich case

Personnel Management

The faulty tank

The decision made by the managerial team at Ford Motors has nothing ethical about it. It is a clear case of corporate profits outweighing human life. There is of course the possibility of passing the savings made by Ford to the customers, in the form of a lower retail price, the offering of complementary products and services, the payment of damages produced in Pinto accidents or many other such situations, but this would not have represented a truly ethical decision. It would have been done to ease the conscience of the Ford executives, who initially ruled in favor of profits.

It could be said that the majority of the customers benefited from Ford's decision as they were able to purchase their vehicles quicker and at a lower retail price. Additionally, they were able to be the proud owners of a Ford vehicle, enjoying the "Made in the U.S.A." brand. Still, all these are insignificant arguments in the face of the true reason which prompted the decision in favor of the initial unsafe design. And this true reason was the corporate desire of Ford to introduce its product onto the market and beat the foreign competitors. The underlying decision was that of making money, and this is supported by the cost-benefit analysis, which resulted in the conclusion that net gains in the amount of $88 million were more important that human lives.

Completing a car acquisition is often a long and costly process. And in a context of limited financial resources, it is only natural for the buyer to look for the most effective solution. Yet, it is unlikely to assume that any rational customer would prefer to save $11 and, in exchange for it, endanger his and his family's lives. Still, if the company considered that such a possibility is a viable one, they should have communicated their decision and the risks involved to the prospective customers.

Ye, they did not do this because the costs would have been too high. Consumers would have not only refused to purchase the Pinto, but would have changed their entire perception of Ford. In such a scenario, the American automobile manufacturer would have lost market share to foreign competitors, and would have as such been presented with financial losses.

All in all, the circumstances were critical and Ford made an unethical decision by favoring money over people's lives. The situation is even more dramatic and clear and cut than the issue of making airbags optional.

Employee self-esteem

It is common knowledge that a satisfied employee will be more dedicated and loyal to the organization and will enhance his efforts to sustain the company in reaching its overall goals. Yet, the traditional incentives may prove insufficient in building the self-esteem of workers. This goal can be attained throughout the following:

(a) The organizational culture

The company should create an organizational culture focused on the tremendous part played by customers in the overall organizational success. Today, most economic agents place emphasis on the role of customers, but as the popularity of service deliverers exponentially increases, organizational triumph is pegged to employee task quality.

In such a context, it is necessary for modern day managers to comprehend the true value of staff members and create an adequate culture centered on a pleasant and dynamic working environment. Employees should feel cherished and respected while on the job.

(b) Employee empowerment

The second thing to do is that of empowering employees by allowing them to make decisions. In order to still safeguard the interests of the company and reduce the chances of risks and mistakes, the initial decisions to be made by employees should be less important ones. As the employee proves his worth, the importance of the decisions would increase.

Employee empowerment does not necessarily refer to a situation in which the organizational staff member is trusted to make a decision by himself, but more so he is included in the decision making process. Allowing the employee to participate in the decision making process makes him feel important within the company and makes his input look valuable. The outcome will then be that of an employee more convinced of his powers and role, more self-confident and more determined to prove his worth and support those who put him in the position.

(c) Employee training

The general perception of training is that it creates employees who are better able to perform their tasks and as such create efficiencies for the organization. What is however often overlooked is that training programs are not only a means of creating organizational efficiencies and profits, but they in fact also represent employee incentives.

At the end of a training session, the employee emerges as a better skilled and capable organizational asset. This automatically propels him to a superior position within the organization. Even if a promotion is not immediate, the trained employee will possess more knowledge and will be better valued by his colleagues, subalterns and supervisors. All these will become combined to form a worker with higher levels of self-esteem.

A final means in which training generates self-esteem is that of ensuring future stability. Training adds more value to an employee and allows him to better perform his tasks. This means that he would find it easier to get a new job, in case the current one should no longer be viable.

6. Maslow's hierarchy of needs

Abraham Maslow constructed a pyramid of five levels, each level presenting the types of needs that motivate people. At the bottom level sit the physiological needs, followed by needs of safety, needs of loving, being loved and belonging to a community. At the fourth level sit the needs of esteem, followed by the needs of self-actualization. In order to maintain an organizational staff member motivated and satisfied on the job, it is necessary for the leadership team to strive and manage to satisfy as many of these needs as possible. Below are some pointers as to how the desiderate could be achieved:

Physiological needs -- the first thing is that of remunerating the employee in a means that allows him to exchange the salary for the purchase of primary commodities and services. The second thing is that of ensuring that the employee is able to attend to is physiological needs while on the job -- he should be able to eat, drink, breathe clean air, enjoy daily breaks or recuperate between work days and work weeks.

Safety needs -- these are virtually satisfied in the same manner as the physiological needs. As such, it is necessary for the employer to offer a salary that can be exchanged for safety products and services; he is also required to ensure elements of safety within the workplace. In this same line of thoughts, it is necessary to provide a working environment that protects not only the physical, but also the mental and moral being of the individuals.

Sense of belonging -- this would be ensured through the creation and implementation of a corporate culture focused on employee well-being and the treatment of the staff members as the most important organizational assets. Managers should stimulate employees to work in self-supporting groups and they should even organize out-of-the-office events that stimulate employee socialization.

Esteem -- this could be created through processes of training, the creation of an organizational culture focused on employee role or the empowerment of the staff members.

Self-actualization -- this category of people could be motivated by allowing them to further enhance their skills. Aside training, this could be achieved by the inclusion of the employees in novel projects which imply learning processes.