1 Leadership, Decision Making & Ethics in Management Assignment 3 Preparation Please look at the Assignment Marking Criteria (Resources) Definitions • ‘Organisational social responsibility refers to an organisation’s obligation to act to protect and improve society’s welfare as well as its own interests.’ (Bartol et al, 2011, p.106) • ‘Managerial ethics are the standards of conduct or moral judgement managers use in their work’ (Bartol et al, 2011, p.106) Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-2 LO6 – Four contingency leadership models Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 12-3 Situational theories Fiedler’s contingency model Normative Leadership model Hersey & Blanchard’s theory Path-goal theory Who should the organisation protect? Social Stake- holders Employees Customers Local community Society International community Shareholders Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-4 Of the organisations you know, who do they protect and why? Three major types of managerial ethics Immoral • Lacks ethical principles • Actively opposes ethical behaviour Amoral • Neither immoral nor moral • Ignores or not aware of ethical issues • Inattentive & Insensitive Moral • Follows ethical principles and precepts • Success through ethical behaviour Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-5 Ethics • As individuals we have some choice over how we want to behave. • Carroll (1987 in Bartol et al, 2011, p.116) notes that ‘managers are characterised by three major moral or ethical judgment levels: immoral management, amoral management and moral management’. • Which one are you? Immoral? Amoral? Moral? • Does your position change depending on the context or does it remain the same at all times? Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 14-6
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Leadership, Decision
Making & Ethics in Management
Assignment 3 Preparation
Please look at the Assignment
Marking Criteria (Resources)
Definitions
• ‘Organisational social responsibility refers to an
organisation’s obligation to act to protect and improve
society’s welfare as well as its own interests.’ (Bartol et al, 2011, p.106)
• ‘Managerial ethics are the standards of conduct or
moral judgement managers use in their work’
(Bartol et al, 2011, p.106)
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-2
LO6 – Four contingency leadership models
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 12-3
Situational theories
Fiedler’s contingency
model
Normative Leadership
model
Hersey & Blanchard’s
theory
Path-goal theory
Who should the organisation protect?
Social Stake-holders
Employees
Customers
Local community
Society
International community
Shareholders
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-4
Of the organisations you
know, who do they protect
and why?
Three major types of managerial ethics
Immoral
• Lacks ethical principles
• Actively opposes ethical behaviour
Amoral
• Neither immoral nor moral
• Ignores or not aware of ethical issues
• Inattentive & Insensitive
Moral
• Follows ethical principles and precepts
• Success through ethical behaviour
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-5
Ethics
• As individuals we have some choice over how we want
to behave.
• Carroll (1987 in Bartol et al, 2011, p.116) notes that
‘managers are characterised by three major moral or
• Does your position change depending on the context or does it remain the same at all times?
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 14-6
2
LO7 – Ethical guidelines and support for managers
Obey the law Tell the truthShow respect
to others
Treat others as you would like to be treated
Do no harm
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-7
What are the strengths and weaknesses of these guidelines?
Ethical Guidelines for Management
• Ethical standards vary by individuals, organisations,
cultures and nations.
• Setting guidelines about what is the correct ethical way
to behave means first deciding what ethical stance you
are going to take.
• O’Toole (1985) suggested that the following guidelines
might help individuals and organisations to think about
the ethical implications of their management decisions
and behaviours.
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 14-8
O’Toole’s Ethical Guidelines1) Obey the law both in your home and host country, since the
consequences of not doing so may be severe both for the
individual and the organisation.
2) Tell the truth, since this builds stakeholder trust. How truthful one feels one should be will probably be driven by what their
moral view point is and whether they believe that they should
respond to societal forces, laws or their own inner
conscience.
3) Show respect for people.
4) Stick to the Golden Rule i.e. treat others how you would like
to be treated.
5) Above all do no harm. Again this is can be an unclear area. What level of harm is acceptable and necessary. For example
if a company was in danger of bankruptcy but could save
itself by closing down one of its organisational parts with the
loss of thousands of jobs, should it do so?14-9
Ethical dilemmas
Your partner is sick
There is a drug
You can’t afford it
No one will do a deal with you
What do you do?
Is your behaviour ethical?
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-10
Look at the ethical
guidelines
Ethical Management Dilemma 1
• Let’s look at the Ford Pinto Case
• http://youtu.be/PAI5T8UecEY
• As we watch the video, please make note of the
following:
• What was Ford’s decision making process?
• Which ethical theory could be used to describe/justify
the decision that Ford made?
• What were the consequences of the decision made by the leaders at Ford?
• Are Ford’s leaders ethical in their decision? Analyse
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 14-11
Ethical Management Dilemma 2
• Let’s look at the Nike’s Sweatshop Controversy
• Take note of the video documentary ‘Behind the
Swoosh’ http://youtu.be/M5uYCWVfuPQ
• Please make note of the following:
• What was Nike’s decision making process?
• Which ethical theory could be used to describe/justify
the decision that Nike made?
• What were the consequences of the decision made by the leaders at Nike?
• Are Nike’s leaders ethical in their decision? Analyse
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 14-12
3
Ethical Management Dilemma 3
• Let’s look at the FoxConn Apple Factory Suicide Crisis
• As we watch the video http://youtu.be/Jk-xqPKOxl4 ,
please make note of the following:
• Which ethical theory could be used to describe/justify the decision that Apple/FoxConn made?
• What were the consequences of the decision made by
the leaders at Apple/FoxConn?
• Are Apple/FoxConn’s leaders ethical in their decision?
Analyse
• Further information here…
• http://youtu.be/jlTsaAqYMOw
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 14-13
LO8 – Describe the situation factors influencing ethical behaviour and how to manage them
You as a manager
Your moral level
Organisational culture
Moral intensity of issue
Individual values
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-14
Stages of Moral Development
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-15
An Ethical Decision Making Model
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-16
Moral Intensity
• All of these phases are impacted by the moral characteristics of the issue. Several characteristics have been identified:
a) The magnitude of the consequences i.e. How much harm or benefit will be done to those impacted by the moral act.
b) The social consensus i.e. What does the society in which the individual or organisation is working think about this type of moral act?
c) The probability of effect i.e. If this moral act happens, what is the likelihood that it will actually cause the harm or benefit predicted?
d) The temporal immediacy of the moral issue i.e. How long before the consequences of the moral act will be felt?
e) The proximity of the moral issue i.e. How much those deciding on the moral act feel close (socially, psychologically, culturally or physically) to those impacted by the moral act.
f) The concentration of effect i.e. How much the moral act will affect society generally.
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany 14-17
Individual Value Perspective
What is your value
system?
Practical
Moral
Gratifying
Economic
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-18
Do you think these value
perspectives change as
you age?
4
Preparing to make good ethical decisions
Anticipating ethical
conflicts
Assessing your own values & protecting yourself
Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Bartol et al, Management: A Pacific Rim Focus, 6e 4-19
How do you
do this?How do you
do this?
LO8 – Describe the situation factors influencing ethical behaviour and how to manage them