Ethic Issues....how to solve it

Akram is an Account Manager for the newest restaurant chain group in Kuala Lumpur that operated since 3 month ago and has potential to become successful. This company currently has 2 restaurant outlet and just a matter of time to set up another two within the next few months. Both restaurants that currently operating is situated at the side walk of the same Shopping Complex but offers different concept and image.

At beginning, this company was established with the help of consultant which was hired by the two director of the company. The duty of this consultant is to assist the directors in determining the concept, staffing, procedures and administrative documentation. The director comprises of two individuals who came from different corporate world background. All the restaurant staffs were hired locally which majority at the age of 25 below which include a waiters, kitchen helpers, cashiers and of course the chef. The remuneration payment for the workers include OT, double paid, one day rest, allocation of rest day etc.

Because the directors are still new in this industry, consultant proposition and recommendations are systematically adopted without questioning. Even the salary scheme that is unfair from Akrams’ viewpoint due to mismatch between salary and job description of certain employees. Akram tried with vain to raise this issue many times but the management strongly believe that the consultant would be able to handle and overcome the problem.

Among the serious problems the company is facing that affects the performance of the business are high administrative expenses, absenteeism, missing during working hours, coming late to start operation, higher waste of stocks, too many staff and also poor sales. However, the staffs always complained working conditions and argue about their benefits, they tend to be very demanding. They requested repeatedly to start working at 8am instead of official opening time that is 6.30am. From Akram’s view the consultant is not doing the right job and would not be able to help the company overcoming these issues if there is no appropriate strategy driven by the company with proper control from the management.

The major crisis started in the fifth month of the operation when the sale collection was poor and there was not even sufficient income to pay the staff’s salary. The directors had to pay from their own money to support the shortfall and to the shock of Akram, they fired the consultants and blame them for the problem that arouse. Then, his directors admitted that they had big communication problem with the consultant earlier and had to put the trust on them after they had paid a consultant fee in advance. The directors has asked Akram to prepare the cost analysis of the company and were very disappointed when they were informed that the company won’t be able to continue the business and to close down the operation in the next 3-4 month if all the problems mentioned before are not quickly resolved.

After everything else seem too hard to knob, the directors have decided to terminate all 35 workers and replace them by foreign workers which can reduce the operation cost. Akram was instructed to implement this decision, but as an employee Akram was wondering about the company behaviour towards employees and also about the future of this company.