Scenario: A Hard Ethical Decision to Make
A&K Milling Co. is a family-owned grain milling company located in West Kansas. Though not a large company, A&K has been offering job opportunities with decent pay to people living in the surrounding areas for over 80 years. The owner attributes the success of the company to having loyal employees because most employees have worked for the company for many years and have developed strong bond with the company. Due to increased national competition, A&K leadership team has recently decided to launch a digital transformation (Dx) plan in the next 12 months by investing in modern technologies to help increase flour production. If this Dx plan is executed, it is estimated that about 500 skilled workers will lose their jobs and it’s not easy for them to find another job quickly that matches their skills and pay. Taking care of their employees is deeply embedded in the company’s culture but the company has to go digital if to survive. Tonny, as the company’s HR director responsible for training new employees and providing continued education to existing employees, is charged to look into different ways to minimize the Dx’s impact on these 500 skilled workers.

Examine the scenario below and list one or two ethical issues that you see may arise after A&K launches their Dx plan. Apply one of the ethical analysis frameworks/approaches discussed this week to rationalize your concern and offer an ethically sound solution.
A&K faces a challenge of modernization. On the one hand, what has made them the company that they are is their processes, procedures, their workforce and their culture. They are faced with a challenged of adopting a potentially more proficient process or procedure at the risk of undermining their culture and losing their workforce. This does not however mean that they should sacrifice the digital transformation for the sake of maintaining their culture and staff.
Culture isn’t just about the staff and the employees, but rather is a way of being and working. The culture of the company, regardless of the processes and procedures or even the workforce is a part of the leadership, the social connections with the surrounding environment, the benefits, the talents of the company, not just the number of personnel who might be a part of the company. Additionally, there is the sacrifice that A&K might be making if they do NOT move forward with a digital transformation. There is the risk that their competitors will gain market share and overtake their place in the market, or that by not transforming they could be left behind.
Blockbuster video store is a perfect example for what might happen to a company if they do not follow a path toward greater digital transformation or keeping up with technological changes. With a huge member list, an extremely young well known name, and a dominant place in their market, they were perfectly suited to offer their members a streaming platform that could have rivaled Netflix, or they could have found a way to merge with Netflix (Sloan, 2020). Instead Netflix found ways to move from movies through the mail to streaming and Blockbuster is gone. A&K could face the same challenge.
Technology has been a bogeyman regarding employees for many years, but technology innovation and digital transformation should instead be seen as a way to allow employees to find and do more, rather than a potential employee killer. Elevator operators no longer stand in elevators because of the innovation of push-button operation. The pony express is no longer riding mail across the west. Employees, just like organizations, have been forced to be more adaptable. Instead of slogging through a first-time, minimum wage job, employees can now begin with jobs where technology is king and work from a starting point that is more advantageous than employees before (Heater, 2017). Now, although we’ve lost switchboard operators and elevator operators we’ve gained IT administrators and social media influencers.
Tonny who is in charge of the HR aspect of this digital transformation might want to think about re-skilling some of the potentially affected employees into roles that will help the organization continue to grow and sell their products. Generally, I have found, that dedicated employees, especially those who come from organizations with a stable and deep, positive culture become wonderful brand ambassadors and can be involved in many more aspects of the company. We’ve all heard the adage: hire for attitude, not skill, and here Tonny has a pool of employees with a history with the organization, positive attitude and the opportunity to be retrained with skills that could help the organization in the future. If the new digital transformation yield more work, then these workers will be needed.
References
Heater, B. (2017, March 26). Technology is killing jobs, and only technology can save them. TechCrunch. https://techcrunch.com/2017/03/26/technology-is-killing-jobs-and-only-technology-can-save-them/
Sloan, M. (2020, June 1). Netflix vs blockbuster - the official case study. Drift. https://www.drift.com/blog/netflix-vs-blockbuster/