Here is the Situation:Donna works as a consultant and finds that she is required to account for all her hours. She was told that time reporting is important because the firm bids a fixed price for all their consulting jobs. The consultants time is a major component of the cost of any given consulting job.Donna is faced with a dilemma. Although she has never considered herself a slow worker she has consistently taken more time than the budget for her first three assignments. Donnas manager told her she needs to be more efficient in the use of her time.Donna is unsure of what to do next so she decided to meet a couple of friends for lunch who used to work for this firm. The lunch was quite enlightening. Her friends tell her that time budgets at that firm are completely unreasonable because everyone underreports their hours or cuts corners. In order to meet the time budgets, many people (below the manager level) work on the weekends, nights and lunch hours but do not report those hours. In fact, her friends tell her that one of the best ways to get noticed as a super star is to beat the budget times. One of the quickest ways to get fired is to take more time than the budget.Down the hall from Donnas cubicle, Jerry, one of the firms managers, is sitting in his office getting ready to prepare the performance evaluations for the five people who work for him. He is fully aware that there is a lot of underreporting of time worked on tasks but his is unsure of how to deal with that issue. The firm has been able to win some bids for consulting work based on projecting costs based on unrealistic time estimates. Jerry is also very concerned that some employees may be cutting corners to complete their tasks quickly resulting lower quality service to your clients. In the long term, Jerry thinks that cannot be good for the business. Question One: Question Two: What advice would you give Jerry? Are there any ethical implications if he goes along with the current way the business is run?
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