Case Study: Frank In The Tank - 3
Jorge is angry because Frank the owner sits at his bar all day, every day, drinking banana
daiquiris, and making Jorge play cribbage with him. Then Frank stiffs him. He also calls
him "amigo," which Jorge finds insulting. Have you worked someplace where there was
an owner or owners who didn't manage the operation but who used to come in - - like in
this situation? What did they do? How did they behave? What did you think about them?
Was it a problem? Did your manager do anything about it if it was indeed a problem?
What did he or she do?
Jorge had been angry and upset for quite awhile. Frank was taking up space at his bar
since it opened. John knew nothing about this. Who is Jorge's manager? Do you think
Jorge talked to his manager about this? Why or why not? And, what might have
happened if he did? (He might have thought it was useless to say anything, or he might
have told Mike and nothing happened. The pool bar is not really connected to the main
facilities, so perhaps communication is affected. Is this a problem?)
Freshwater Oasis Inn
Management Organization
Owner
Frank Stratton
General Mgr.
John Fallin
Asst. Gen. Mgr.
Heidi Bell
Bookkeeper
Edna Duncan
Bar Mgr.
Mike Scales
Dining Rm. Mgr.
Tony Marziano
Front Desk Mgr.
Gabe Deflores
Exec Housekeeper
Kathy Lawhorn
Chief Engineer
Bill Gardner
Business Mgr.
Lex Lilly
Executive Chef
Eric Altman
Sous Chef
Dardina Traylor
Frank was taking advantage of Jorge - - whether he meant to or not - - and that was
harmful to Jorge. So, what should Jorge have done? (Told his manager, Mike, and Mike
should have told John, and John should have done something.) If Jorge chose not to tell
Mike, should Mike have known anyway? (Yes) How could he know if Jorge didn't tell
him? (Mike should be noticing. He should be aware of Frank sitting there constantly,
making Jorge play cribbage, noticing that Jorge was not delighted, etc., regardless of the
far-flung location of the pool bar. As bar manager, he should still have a presence.) And
John should have noticed too. As management, we are accountable for everything that is
going on. We need to know what is going on, and we can only do that by keeping our
eyes and ears open.
Now that John knows what is happening at Jorge's bar, what should he do? Let's first
state precisely what the problem is. Who has the problem? (Jorge) What is it? (Frank isn't
tipping Jorge and takes up his time and limited space at his bar.) John is he decision
maker, Jorge and Frank are Stakeholders.
The first decision option for John would be to do nothing. Enter the decision option and
the 3 main stakeholders on the following blank form. Analyze the possible consequences
to John, Jorge, and Frank if John decides to do nothing about the Jorge/Frank situation.
Identify any principles that are violated if John decides to do nothing, and write them on
the form. Please do this on your own and check the Key below to make sure you are on
the right track.
Ethics Analysis Form
Decision Option:
Stakeholders
Principles
Consequences
Other Decision Options
John obviously has to do something since Jorge told him that Frank is taking up space at
his bar, taking him away from other customers to play cribbage, and then not tipping him.
So, what are some other decision options? (John could tell Frank that calling Jorge
"amigo" could be considered harassment and open FOI to a lawsuit. He could also tell
Frank that Jorge is not making any money since Frank takes up all his time and space and
doesn't tip him. Frank most likely is not trying to hurt Jorge and, in fact, probably likes
him. He may simply need to know the problem he’s unwittingly creating and will either
stop sitting at Jorge's bar or start adequately tipping him for his time and service.
The best solution may be appealing to Frank’s profit motive by pointing out that he needs
to sign for his drinks in order to get them written off for tax purposes, and he can write
the automatic tip off too! We can look at possible consequences of this decision using an
Ethic Analysis Form. What will Frank probably think? Feel? Do? How will this affect
Jorge? John? And so forth.
Conclusion
This whole ethics curriculum is divided into departments of a case study hotel. Reality,
however, is never quite so neat. Within a series of facility management case studies we
had to address technology and human resource issues along with facility management
issues. We saw that the "fecal accident" situation created an employee situation, which
led to a situation with Frank, the owner of FOI.
We have to be prepared to recognize ethical and/or other management issues everywhere
they occur. We have to be able to consider the various decision options and analyze them
as to how each might affect stakeholders, so that we can make the best decision for all
parties involved. Decision options that violate any of the ethical principles tend to result
in negative consequences. It is in our best interests, as managers, to think about what we
do BEFORE we do it so we can avoid negative consequences.
KEY - Ethics Analysis Form
Decision Option: John does nothing about the Jorge/Frank Situation
Stakeholders
Principles
Consequences
Jorge, Bartender
 If John does nothing about the situation
after Jorge finally tells him, Jorge could
feel that John doesn't care. This could
negatively affect Jorge's attitude, his
level of cooperation, and his job
satisfaction.
 Jorge might look for another job.
 Jorge could complain to other workers
whose attitudes might be influenced by
Jorge.
 Jorge could ask to be transferred to the
inside bar. A new pool bartender would
face the same problem though.
Frank, Owner
 Jorge feels taken advantage of by Frank
and likes him less as a result. Jorge
basically has no respect for the owner.
 Other employees could find out that
Jorge is getting stiffed by Frank and
lose respect for Frank. Employee
attitudes towards Frank could become
negative. This could affect their
behavior towards the owner, and their
willingness to work for him.
 Frank is not only stiffing Jorge, but
he’s not signing for his comped drinks
and that affects the bottom line.
John, G.M.
Integrity
 If John does nothing, Jorge will become
(Decision
Trustworthiness
increasingly dissatisfied and could
Maker)
Loyalty
leave FOI.
Fairness
 Jorge could tell other employees,
Concern & Respect
friends, and family about the owner of
for Others
FOI and how the G.M. would do
Leadership
nothing about the problem he was
Reputation &
creating. Morale could go down.
Morale
 FOI's reputation as a good place to
work could be tarnished.


John could lose the respect of
employees. They could become less
cooperative and turnover could
increase.
Liquor costs are affected by Frank not
signing for his drinks.