Mgt 604 - Management Process and Organizational Theory

Oleg Yudes

Management Process and Organizational Theory MGT604-60

Reaction Paper # 1.Due February 9, 2011

Abstract

In this reaction paper I will discuss issues of ethical management, steps that might be helpful when dealing with moral dilemmas in the workplace and a concept of Corporate Social Responsibilities. Those are the issues that managers are facing in today's environment and those are the issues that, in the long run would separate successful businesses from the rest.

Never before in the history of business were managers faced with such multitude of issues that play significant role in conducting day to day operations. Executives in the yesteryears were not concern all that much with the public perception, with the role corporations plays in polluting environment or bringing disastrous ecological changes to different parts of the world. As long as they delivered financially the job security was guaranteed. The progress in the development of media and internet more sophisticated and educated consumers and shareholders, the changing world around us all have effect on how we conduct business today.

One of the biggest challenges that today's manager face are his or her ethical responsibilities. "Do I do what is right or what is more profitable?"

"Where did it go wrong?" That is one of the main questions on the minds of millions of ordinary people when they hear about yet another top executive changing his five thousand dollar custom tailored Italian suits to the more modest orange uniform of the federal correctional facility. What prompted someone who is making more money in one year than most Americans in their lifetime to choose path that landed them on the front pages of newspapers and not in the way they would like? With almost unequivocal certainty we can say that it all started with a breach of ethical principals. But how we define "Ethics"? The classical interpretation of ethics is a "system of moral principles", "the rules of conduct recognized in respect to a particular group, culture". It probably would be much easier for managers and organizations at large if we would have cut and dry set of "ethical" rules. But unfortunately, there are no absolute rules of what is ethical and what is not. The question then arises:"How we, as managers to deal with situations where ethical choice is not clear". The first step in analyzing moral issues is probably one of the hardest. Get all the facts. Sometimes we have a dilemma just because we do not have all the facts or we do not bother to check them for accuracy. But having the facts is not enough. It is at this stage where we start analyzing situation and trying to come up with the best possible solutions. Philosophers have identified five different approaches in resolving ethical issues:

1. The Utilitarian Approach: For the Greatest Good. In order to come to the ethical solution of the problem one has to take course of action that would produce greatest benefits and least harm.

2. The Rights approach. It's primarily focus is the right of individual to choose for himself or herself. Ethical actions based on the second approach would ask a question such as:" Does the action respect the rights of everyone?"

3. The Justice Approach: Respecting Impartial Standards of Fairness. This approach advocates that all equals should be treaded equally or if not equally, fairly based on some standard that is defensible. The basic moral question in this approach is: How fair is an action? Does it treat everyone in the same way, or does it show favoritism and discrimination? Even though, in today's environment the cases of discrimination are less and less common, workplace is full of examples of favoritism. In fact, according to 2004 survey of 1,200 people conducted by Watson Wyatt Worldwide as part of its ongoing WorkUSA Study,"62% of those who question management's integrity cite (hypocrisy and favoritism)" as the main issue, while only 8% cite unethical financial dealings. Why someone is got promoted? Is it because of person's skills and abilities or simply because he or she is more friendly with a manager, they share similar interests and background, go to lunches together? That is why the manager has to be able to establish clear boundaries of inter office communication with subordinates and not be perceived as being "too friendly" with anyone.

4. The Common - Good Approach. This approach assumes that individuals would make decisions that, in the long run, would benefit society as a whole. Recent developments, however, showed that in a lot of cases people tend to focus on the short term goals that in a lot of cases are not beneficial to other members of society