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If you made miscalculations in an offer to a customer. Can the company force you pay the difference? Is it ethical?

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Question added by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed
Date Posted: 2014/11/02
Ted S
by Ted S , Mitarbeiter , Großes Logistiks Unternehmen

  • - Is it one time offer?
  • How big is the difference -absolute amount and and as a percentage
  • How big is a deal/offer?
  • Is it the first time happening?
  • What is your overall performance in the department?
  • What kind of business are you in?
  • How this difference was brought up/communicated to the department?

All these issues and perhaps a few more have  to be considered when a decision of forcing or not forcing to pay the difference. Overall larger amounts equal larger responsibility and  lesser tolerance.

padmakumar pathiyil
by padmakumar pathiyil , Marketing Consultant , Management Consultancy

No. It is not at all ethical for a company to make its employee pay for a mistake commitment by him. The company should immediately arrange for a detailed inquiry and if found that a particular employee is responsible for the mistake, then the company can punish him according to the stipulated company rules & regulations..

Salauddin Mohammad
by Salauddin Mohammad , Sr. Manager, Software Development , Aspen Technology Inc

No, it's unethical to force employee to pay the difference for the mistake s/he made. It happens, people do make mistakes. Company can put this remark in his/her performance appraisal and can be a reason for no increment in salary or promotion..

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

No. However it can punish me after going through disciplinary procedure and impose a fine.

Where is the sales governance in this scenario?  Yes...  The salesperson is the leader, the person on point to deliver the revenue required to sustain the business.  There should be other people involved in the process though.  And ABSOLUTELY NOT!  The company should never look to charge you the difference in price.  The management team should be signing off on every offer that is capable of acceptance.  The only caveat is if the company is very small in which case the sales process needs to be simplified.  If the company is medium or large, the management should step up and take accountability for not focussing on the client and making sure an offer capable of acceptance was checked.  In short, it is incompetence within the ORGANISATION and not the individual.  

Mohamed Badawy  CIA CISA CFE CRMA CCSA CertIFR
by Mohamed Badawy CIA CISA CFE CRMA CCSA CertIFR , Internal Audit Manager , Communications Solutions Company, Lafana Group.

In my Opinion, it’s not ethical or even legal to deduct the variance, if the followings are secured:-  

A. Unintentional act from the salesman,

B. There were not an official policy organize the sales offer process (i.e. sales offer creation, approvals, the related preventive controls, etc.).

C. There were not an official commitment (i.e. undertaking letter) signed by the salesman that he has the sole responsibility of any losses resulted from the inaccurate offers delivered to the customers, etc.

 

However the company could apply other kind of punitive action ((i.e. warning letter, deductions, promotion delay, etc.), if the staff negligence was properly investigated and confirmed.

 

Error in calculating the offeris not necessarily a big problem. Can happen, the speed, careless..

Problem occurs when you have not done anything to fix it when it was " hot " ! If it has been a few days and you didn't say anything about this.....it is possible to pay !

Ashish Sharma
by Ashish Sharma , Store MAnager , Splash Landmark Group of Companies

Yes I should pay as it is unethical to not to know my calculations and explain incorrectly to the customer.

Sasa Stavric
by Sasa Stavric , Engineer Techinician , Kombinat

Depends of miscalculations  and company what is ethical and honest.

LABIB KOOLI
by LABIB KOOLI , Director of the Sectoral Center for Training in Hotel Technologies at Southern Hammamet , Tunisian Vocational Training Agency (ATFP)

In so many cases it's not too late to redone the offer , 

the best issue for this bad situation should be discussed broadly with the customer until resolved.

Otherwise; 

If a confident relationship is yet built between you & your boss, it is ethical that the boss should accept the earning lost.

Saleem Khatri
by Saleem Khatri , Head of Finance , Berger Paints International

In a calendar year:

1st,2nd and3rd mistake - It will not be ethical for the company to force employee pay the difference.

4th,5th up to10th mistake - It will be ok for the company to force employee pay the difference.

11th Mistake - The company should replace the employee.

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