BN205 Altex Corporation Case Study

Introduction

Altex Corporation was awarded a contract to deliver the R&D phase of the Advanced Tactical Missile Program (ATMP). The Army requires the organisation to deliver a formal project plan within 60 days. However, the new project manager at Altex is concerned over the lack of a risk management plan for the project. The sponsor argues that the risk management plan is unnecessary since the military does not require the document and developing the plan might make the company lose the contract based on its complexity. This report examines the ethical issues, breaches of the PMI code of ethics and professional conduct and the best decision the project manager can make guided by the PMI ethical decision-making framework. The report will also examine the potential impact of the ethical issues and ethical breaches concerning the PMI code of ethics and ethical decision-making framework by the PMI. 

Analysis of the Case Study

Ethical issues

The Altex Corporation case study raises some ethical concerns regarding the behaviour and perspective of the sponsor. The sponsor does not regard the ethical guidelines provided by the Project Management Institute which applies to him as an organisation that operates in the project management sector. One of the ethical includes breach of the PMI code of ethics concerning the responsibility of the company and the honesty in communication and sharing of information (Stackpole, 2013). The sponsor is irresponsible by accepting an assignment which he cannot deliver as required. He is also dishonest by failing to provide a risk management plan which would provide an in-depth analysis of the project with details on the challenges that might make the project a failure. However, the greed of the management proceeds with the project for financial gain despite lacking the qualification and experience to meet client needs.

The project manager faces an ethical dilemma/issue about reporting the sponsor to the relevant authority for unethical behaviours. According to the PMI code of ethics, a member of the PMI has the responsibility to report unethical or illegal conduct as stated in principle 2 sections 2 and subsection 2.32 (Stackpole, 2013). The manager can also report the sponsor for taking assignment he cannot deliver as promised to see that the proposal guaranteed 'over-expectation' delivery while the company illustrates its satisfaction with 60-70% success.

Potential Consequences

The stakeholders that stand to lose in this aggressive and risk-involved project include the project manager, Altex Corporation, and the Army. The project manager could destroy his career if he undertakes the project without considering the ethical concerns that might portray him as an individual operating without the knowledge of professionalism. On the other hand, the Army may not receive the expected results; may incur a high cost, or the project might fail due to its poor contract awarding system that focuses on the proposals without a background check of the company’s ability, qualification, and experience. The company might fail to achieve its objective leading to legal wars from the PMI and the customer