Dash Riprock is a cost analyst with Safe Insurance Company. Safe is applying standards to its claims payment operations. Claims payment is a repetitive operation that could be evaluated with standards. Dash used time and motion studies to identify an ideal standard of 36 claims processed per hour. The Claims Processing Department manager, Henry Tudor, has rejected this standard and has argued that the standard should be 30 claims processed per hour. Henry and Dash were unable to agree, so they decided to discuss this matter openly at a joint meeting with the Vice President of Operations, who would arbitrate a final decision. Prior to the meeting, Dash wrote the following memo to the Vice President:

As you know, Henry and I are scheduled to meet with you to discuss our disagreement with respect to the appropriate standards for the claims processing department. I have conducted time and motion studies and have determined that the ideal standard is 36 claims processed per hour. Henry argues that 30 claims processed per hour would be more appropriate. I believe he is trying to 'pad' the budget with some slack. I'm not sure what he is trying to get away with, but I believe a tight standard will drive efficiency up in his area. I hope you will agree when we meet with you next week.

Discuss the professionalism of the memo to the vice president. Is this deemed appropriate, why or why not? Should this have been worked out between the two employees? Between Dash and Henry, which side are you on? Support your thoughts and reasoning. How does ethics play a role in this situation? What about the discrepancy in the number of claims (30 versus 36)? Is there a problem there also?

Time and motion study is a method that was created to determine the normal time to complete a task with the objective of reducing wasteful time, money and maximising productivity

It is applied in industries that involve repetitive processes and work flows e.ginsurance claims processing. It is alright in discussing openly with the VP(Operations) due to the difference in the figure. Dash has done a thorough study and has figures in support while Henry has immense practical experience and can attuned to reality and on the job possibilities.

Having created a possibility to sort out their issue with a higher authority, it is unprofessional to attempt to voice personal views, during the absence of Henry as it should be raised in Henry's presence so that he can react or give explanations.

A scientific study is undertaken for the purpose of implementation. It follows that a thorough investigation of what is already done is very essential for knowing what can be implemented. A cost analyst and claims processing manager have to work hand in hand with one another in order to establish a meaningful and achievable standard. Standard cannot be too slack or too rigorous as it should allow for human discrepancies. Both Dash and Henry are correct . There can be some mid standard figure that are agreed between 30 and 36.

Business ethics is the maximisation of wealth by optimal utilisation of resources which includes men and machines. The reliance or giving of importance to only mathematical figures, without humanitarian considerations is lack of ethics.