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Day 8 Key Point of Management ethics and culture.
1. Management ethics.
1) Meaning of management ethics
‘Management Ethics’ is related to social responsiveness of a firm. It is the
discipline dealing with what is good and bad, or right and wrong, or
with moral duty and obligation. It is a standard of behaviour that guides
individual managers in their works. In short it is the set of moral
principles that governs the actions of an individual or a group.
2) The Importance of Business and Management Ethics
The system of moral and ethical beliefs that guides the values, behaviors,
and decisions of a business organization and the individuals within that
organization is known as business ethics. Some ethical requirements for
businesses are codified into law; environmental regulations, the minimum
wage, and restrictions against insider trading and collusion are all
examples of the government setting forth minimum standards for
business ethics.
Primarily it is the individual, the consumer, the employee or the human
social unit of the society who benefits from ethics.
①Satisfying Basic Human Needs: Being fair, honest and ethical is one the
basic human needs.
②Creating Credibility: An organization that is believed to be driven by
moral values is respected in the society
③Uniting People and Leadership: An organization driven by values is
revered by its employees also.
④Improving Decision Making: A man’s destiny is the sum total of all the
decisions that he/she takes in course of his life. Decisions are driven by
values.
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⑤Long Term Gains: Organizations guided by ethics and values are
profitable in the long run, though in the short run they may seem to
lose money.
⑥Securing the Society: Often, ethics take precedence over the law when
it comes to protecting society. Lawyers and public interest litigations may
not help a great deal but ethics can.
Ethics tries to create a sense of right and wrong in the organizations and
often when the law fails, it is the ethics that may stop organizations
from harming the society or environment.
2. Management culture.
1) Definition
Management culture is an organizational leadership practice that helps
define and maintain a business's overall work culture. A company's
culture can be one of its most influential aspects. Management culture
can outline how a business structures its work-flow, plans its goals and
hires its employees.
Usually shaping the understanding of the company, management culture
also influences employee behaviors. Not only does management culture
help define an organization's standards to employees, but it helps
identify its values to customers as well.
2) Factors that affect management culture are:
①Management values
②Use of hierarchy
③Objective orientation
④Urgency
⑤The levels of urgency
⑥Subcultures
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⑦Function emphasis
3) Importance of management culture
Management culture defines the organization's focus. It can attract
employees, make hiring easier, and can gain more customers.
4) Types of management culture
①Clan culture: It emphasizes friendly and informal interactions between
all members of the company and tries to place value on the individual
more than the overall organization.
②Adhocracy culture: It strives for innovation and flexibility, and seeks to
develop unique ideas in order to anticipate trends.
③Market culture: It strives for stability and rarely takes risks, and it
prioritizes profit, organizing each employee or department into specific
objectives that align with company goals.
④Hierarchy culture: It is similar to market cultures toward meeting
consistent goals with minimal risk. Hierarchy cultures are often stable,
opposed to risks and open to clear communication.
3. Business Rules and Their Importance
Business rules are directives that define (or constrain) business activities.
It is designed to help an organization achieve its goals. Effective business
rules help set expectations and provide guidelines on how work will be
conducted. In general, business rules define specific instructions or
constraints on how certain day-to-day actions should be performed.
When business rules are made right, they provide efficiency, consistency,
predictability, and benefits. They also ensure that work can continue to
move forward.
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4. Aesthetics. Dress culture.
Aesthetics are a philosophy of beauty, one that defines how a culture
understands beauty in art, and every culture has its own set of aesthetic
values. Aesthetics of the society can affect the attire of its members as a
whole, and it also affects the dress code in a business organization.
The dress culture differs according to the nature of the company's
business, but overall, it is a trend today to break away from the formal
aspect and change to a more practical attire. Steve Jobs is a good
example of that. It was almost impossible to see him in a suit.
5. Internal regulations of the enterprise and organization.
Internal Rules and Regulations mean the internal trading rules which
govern the access of members of the Board of Directors, members of
the Executive Management and other employees to trade, for their own
or a third party's account.
The Company’s Internal Rules & Regulations, (as amended from time to
time) approved and adopted by the Board of Directors, aim at
regulating the organization and functioning of the Company to secure.
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