05 organization & business ethics
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Transcript of 05 organization & business ethics
Organization & Business Ethics
Lesson 05
Lesson's Objectives◦Identify ethics with organizational
structures◦Identify corporate culture with ethics◦Leadership practices to ethical
conduct of business
Structure & Business Ethics
◦Organizational structure is the typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. In centralized organizations In decentralized organizations
◦Each structure has a unique influence on ethical decision making & behavior.
Centralized Organizations◦ in centralized organizations, decision-
making authority is concentrated in the hands of top level managers & little authority is delegated to lower levels.
◦Stress formal rules, policies & procedures supported with systematic control systems
◦Codes of ethics may specify the techniques for decision makers
◦Tend to be very bureaucratic◦The division of labor is well defined
Ethical Issues◦Blame-shifting transferring blame for
ones' actions to others◦Specialization limits the ability of the
individual to understand how their actions affect the overall organization
◦Because of minimal upward communication, top level managers may not be aware of problems
Decentralized Organizations
◦In decentralized organizations, decision making authority is delegated as far down the chain of command as possible
◦Have few formal rules, and coordination and control are usually informal and personal
◦Are adaptable and are very aware of external change.
◦Managers can react quickly to changes in the external and internal environment
Ethical Issues◦Difficulty in responding quickly to
change in policy & procedures established by top management
◦Employees have extensive decision making authority
◦Some occasions consider only human side instead of owner's profit
Corporate Culture in Ethical Business
◦Organizational culture is the values and behaviors that contribute to the unique social and psychological environment of an organization
◦Culture gives members of an organization meaning & provides them with rules for behaving within the organization
◦A company's history & unwritten rules are a part of its culture
◦Some cultures are so strong they dictate the character of the entire organization to outsider
Corporate Culture in Ethical Business
◦It may be explicit statements of values, beliefs, and customs coming through memos, codes, handbooks, manuals, forms & ceremonies.
◦It may be expressed informally through direct & indirect comments that convey management's wishes: dress codes, promotions, legends, extracurricular activities.
Corporate Culture in Ethical Business
◦A failure to monitor & manage corporate culture may lead to questionable behavior
◦Rewards & punishment need to be consistent with the corporate culture
◦It concern for people - the organizations' efforts to care for its employees well being
◦It concern for performance-the organizations' efforts to focus on output and employee productivity
Corporate Culture in Ethical Business
◦Four Different Cultures Can Emerge Apathetic - shows minimal concern for
people or performance
Caring - exhibits high concern for people, but minimal concern for performance
Exacting - shows little concern for people, but high concern for performance
Integrative - high concern for people and performance
Leadership with Culture◦A leader must respect followers and
provide a standard of ethical conduct◦Managers can use rewards &
punishment to encourage employees in behaviors that support the organization's goals An individual's hierarchy of needs may
influence motivation & ethical behavior Stick or Carrot approach to motivation Reinforcement theory
Leadership with Culture◦They can use (RCELR)to arouse
employees towards ethics or goal achievement Reward power Coercive power Expert power Legitimate power Referent power
Ethic Vs. Stress◦Stress is your mind and body's response
or reaction to a rear or imagined threat, event or change
◦Eustress or positive stress occurs when your level of stress is high enough to motivate you to move into action to get things accomplished.
◦Distress or negative stress occurs when your level of stress is either too high or too low and your body and/or mind begin to respond negatively to the stressors.
◦ Is it ethical
Leaders Arouse StressPerformance(Physical & mental)High
Medium
Low
Low (under load) High (overload)Medium
Inactive Panic, anger, or violence
Best (Optimum)
performance
Stress zone
AnxiousLaid back
Ethic Vs Conflict◦A conflict is a situation in which
someone believes that his or her own needs have been denied.
◦Conflict is a state of discord caused by the actual or perceived opposition of need, values and interests.
◦Today managers create conflicts within the organization to arouse the high performance of the organization
◦Is it ethical
Ethic Vs. Conflict◦Interpersonal Conflict
Conflict between individuals due to differences in their goals or values.
◦Intragroup Conflict Conflict within a group or team
◦Intergroup Conflict Conflict between two or more teams or
groups. Managers play a key role in resolution of this
conflict
◦Interorganizational Conflict Conflict that arises across organizations.
High
Low
Low HighLevel of conflict
Optimum level of conflict leads to effective decision making and high performance.
Too little conflict causes performance to Suffer
Too much conflict causes performance to Suffer
A
B
C
Lev
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per
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Ethic Vs. Informal Management
◦Leaders have aware about the value of informal behaviors than formal behaviors
◦Higher consideration is given to Informal communication Informal group Sub culture behaviors
Definition
Style
Intentional Message
Intentional Setting
SpeechPublicationE-mail blast
Informal Communication
Random messageRelational Setting
ConversationPersonal note
Overheard comment
Informal Communication
Thank you