Business Ethics 300 Repair quotas
Repair quotas When your job conflicts with the custo'mers' best interests As the repairs manager at a franchised but independently owned auto repair shop, you have been given a monthly volume quota by the owner of the shop. For each 30-day period that you meet the quota, you are rewarded with a bonus that amounts to 20 percent of your -vivtore fortnightly salaiof $2,000. This is an important opportunity for you now that you have two daughters and a mortgage. In addition, you tend to view the quota as a test of your sal:— giving you a chance to exceed your base salary on a regular basis. If y6u faitto meet the quota for three consecutive months, however, the owner has made it clear that he would consider hiring a new manager and either letting you go or demoting you to a lesser position with a smaller salary and no bonuses.
For the first four months of your job at the shop, you had no problem meeting the quota. Since it was summer and vacation season, many people brought in their cars for maintenance and repairs prior to leaving on their holidays. Now, in autumn, however, business has started to taper off, and you have barely made your quota for the last two months.
As business continues to decline, it becomes clear that you will have to sell the customers on repairs and parts that are desirable but not urgent. This troubles you as candour and honesty shave always been among your highest values. You are also concerned that losing your job or taking a cut in salary may force you to look for, a new job. Recently, even the mechanics have pressured you to "give the customers the old hard sell" so there would be more work. The mechanics want to put in some overtime, and have even been 'coaching" you on how to encourage customers to spring for additional repairs "as a safety precaution." The mechanics also have mentioned that their livelihoods depend on your drumming up some business. You still, feel squeamish about trying to preskire customers, and so far you haven't tried very hard to sell optional repairs as if they were more needed and more urgent than they are.
When you talk to the owner about your doubts, he says not to worry. "With a little practice, you will become a pro!" (pforass.C(wict-4,
34 13111 "After all," he explains, "the repairs are, in. reality, .r-\r - e t nce. They'll save the customers money in the long run by helping them avoid costly breakdowns with heavy towing fees." He reminds you that his quota policy is non-negotiable, and that failing to.meet it will necessitate evaluating your future at his shop.
Your talks with other employees have convinced you that this policy is the creation of this shop owner. It is not part of the general policy of the corporation that sells the franchise. In addition, you are aware that the company retains considerable control over its franchises, although each is a privately owned shop. From what you gather, a call to the nearest franchise representative might get the company involved and lead to the elimination of the quotas, or even the cancellation of the franchise. However,, you are unsure of the company position on such issues, and hesitate to risk your boss's becoming aware of your meddling. If he found out about your e o to restra'n his approach to employees and customers, you might lose your job, whe er you meet the quotas or not. ith-htirtq Source: Pfeiffer, RS & Forsberg, RP 2005, Ethics on the job: cases and strategies 3rd edn, Thompson, Southbank.
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