Please view the "Guest Lecturer" weblink presentation on Kohlberg's Stages of Moral Development. Then look at Case 2-7 at the end of chapter 2 in the text, Milton Manufacturing Company. Each individual student should select one of the 4 questions below and draft a short memo with their answer. •
QUESTION 1:
What state of Kohlberg’s Moral Development does Sammie Markowicz’ decision represent? •
QUESTION 2:
What alternative action could have Sammie Markowic taken? •
QUESTION 3:
How should management deal with the situation once all the facts are known? •
QUESTION 4:
What do you think is the single most important issue for the company arising out of this case? Question 1 Response Sammie Markowicz at first followed the strict policy of limiting the level of capital expenditures to the same levels experienced in 2013, the last year of an overall positive cash flow. He knew he needed to purchase 1,000 new motors to continue reliable operations at Long Island City, but still elected to wait. He was conflicted because he believed his primary responsibility was to ensure that the production process operated smoothly, the last thing the company needed was a stoppage of production because of machine failure. He later decided to purchase the 1,000 motors after considering the implications of his action and was able to convince the plant accountant to record the purchases as an operating expenditure. Markowicz’ decision is at Stage 3: Fairness to Others in Kohlberg’s Moral Development. This stage states an individual is not only motivated by rules, but seeks to do what is perceived the best interests of others. Markowicz’ does stop and thinks about the consequences that arise by not following policy, but his loyalty to the company and his responsibilities outweighs the punishment for him. In his view, this decision was necessary in order to avoid delays and equipment failure. This decision went against company policy, but the end justified the means for him, since he believed it would benefit the company overall by keeping operations ongoing.
