Ethics is an individual and an organizational matter
• Forces
• Personal ethics
• Organizational culture
• Organizational system
• External stakeholder
Personal ethics:
Ø Ethical framework:
Ø Utilitarian theory
Ø Personal liberty
Ø Distributive justice
Organizational culture
Ø Business practice
Ø Powerful impact on individual ethics
Organizational system
Ø Basic architecture of the organization
Ø Formal ethics programs
External stakeholders
Ø Government agencies
Ø Customers
Ø Special- interest groups
The ethic committee
Chef ethic officer
The most significant corporate ethic programs embraced by organization:
Ø Workshops
Ø Conferences
Ø Seminars
Ø Educations
· Code of Ethics- a formal statement of the company`s values concerning ethics and social responsibility.
· Ethical values set standards as to what is good or bad in behavior and decision making
· Ethical decisions are influenced by
Management`s personal background
Organizational structure
Organizational system
Rule of law
• Codified principles and regulations
• General accepted in society, enforceable in courts
Ethical standard
• Apply to behaviors not covered by law by moral judgment
• Widespread for unethical
7 Principles of Admirable Business Ethics:
1. Be trustful
2. Keep an open mind
3. Meet obligations
4. Have clear documents
5. Become community Involved
6. Maintain Accounting control
7. Be respectful
Organizational culture and ethics in global environment
Employees from different countries:
• Different attitudes and beliefs
• Difficult to establish a sense of community and cohesiveness based on organizational structure
A set of rules outlining the responsibilities of a proper practices for individual or organization
Code of conduct is closely related to ethics
How Leadership Shape Culture and Ethics
• Signal and apply values
• Culture consistent with strategy and the environment
Unit 10. Innovation and diversity
Management innovation – a difference in the form, quantity, or state over time of the management activities in an organization where the changes is a novel or unprecedented departure from the past
Companies that challenge some of the old management believes and dogmas and desired for innovations (G. Hamel):
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• Gain the competitive edge
• Be more successful in the future
• Innovation in management will produce long lasting advantages
Innovative Organizational Structures:
-Flat organizations with limited bureaucracy
-Generalist division of labor
-Coordinate with cross functional teams
-Informal with decentralized authority
-Create separate systems for innovative groups
-Attract and retain creative employees
-Reward innovation and creativity
Diversity
-The degree of differences among members of a group or an organization.
Race/ethnicity, religion, gender, age, ability
Diversity in all forms is increasing in general population and the workforce
-Incorporation diversity opens up a large labor pool of skilled workers from which to recruit
-Diversity is a legal requirement, an ethical obligation, and a competitive advantage
Valuing diversity
-Emphasizing training employees of different races and ethnicity, religions, genders, ages, and abilities and with other differences to function together effectively.
Managing diversity
-Emphasizes fully utilizing human resources through organizational actions that meet all employees` needs.
Management focus on being:
• More adaptable
• More innovative
• More creative
• More engaging
• More transparent
• More collaborative
• More trusting
• Relationships is a key
Management new model:
• Management is for everyone
• Management is for learners
• Management is based on communication
• Management is about changes
• Management is broad based
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