Lecture notes Business management

Management ethics how management can impact ethics within an organization, and what is management ethics and social responsibility pdf free download
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Published Date:12-07-2017
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Lecture 7 Management ethics part 1 Purpose Management Ethics part I and II - An overview of management, identifying challenges, and possible ethical problems - Ethical problems can be related to individuals or organisation - More specific, within organisation: Culture (Pharma, Oil) Systems (financial crisis) Stakeholders (ignoring environment or customer) Goals (financial only, rigid) Strategies (copycat, non-existent) Organisation structure (not addressing goals) Contents What is an organisation? • Culture, mission, • Systems • Stakeholders • Goals and strategies • Physical organisation Views of the organisation 1. Milton Friedman: «the business of business is business» A business should only make money for owners. It should follow laws and regulations, but not be part of society. 2. Social democracy The business is part of society and may be regulated, or helped. The state may own businesses, partly or wholly. Cooperation between government, business and employee representatives common. 3. ISO 26000 An organisation is an assembly of people and facilities, «with an arrangement of responsibilities, authorities and relationships and identifiable objectives». Organisation is a generic concept. Organisation attributes: 1. Members, locations 2. Stakeholders 3. Culture, or cultures 4. Structure 5. Goals, strategies, purpose 6. Place in society, duties, entitlements 7. Ownership Organisation culture(s) Explicit or implicit assumptions that are organisation wide, or belong to part(s) of an organisation. May be implemented in policies, hierarchies, rules, computer programs, communication paths, logistics, project management etc. May influence: Planning Hiring, promotion Quality and service levels • Relationships • Reporting Success criteria Culture attributes Can be negative or positive (e.g. relative to sustainability) Difficult to change Have champions (and sometimes critics) Often invisible, and unconscious Goffee 1998: Cultures can change over time. If left alone, they normally deteriorate () Different cultures can serve different purposes All cultures have advantages and disadvantages. Goffee, Rob & Jones, Gareth. The Character of a Corporation. Harper Collins Business 1998. Four cultures Goffee 1998 1. Communal (shared, caring, cooperating) 2. Networked (more distance, less coordination) 3. Mercenary (goal oriented, competitive, egoistical) 4. Fragmented (separate, uncoordinated) Mission, vision Plan or statement regarding purpose and identity. “Together, let us explore the stars, conquer the deserts, eradicate disease, tap the ocean depths, and encourage the arts and commerce…let us join in creating an endeavor…a new world of law, where the strong are just and the weak secure and the peace preserved.” Launch Surveyor 1 J.F. Kennedy Stakeholders People, organisations, technology or environment that are influenced by a decision, or can influence it. Primary organisation stakeholders Revision stakeholders, Byrchall high school, UK Customers – clients – citizens Employees, including management Society Owners The enviroment Secondary stakeholders • Expertize • Politicians • Influential groups • Organisations targeting the issue • People that may be negatively affected • People that represent issues that are affected by the decision Stakeholders for ICT • Users of new application • Users of old application • Production • Service centre • Management EU Space exploration, built on collaboration • Outside expertize Toyota principles Liker 2004 A philosophical sense of purpose Generate value for customer, society and the economy A responsible attitude Systems theory A configuration of parts connected and joined together by a web of relationships Can be: A machine Several machines Biology An organisation A combination of the above Example: Large organisation with important ICT tools. System properties 1. The parts or components are connected together in an organized way 2. The parts or components are affected by being in the system (and are changed by leaving it) 3. The assembly does something 4. The assembly has been identified by a person as being of special interest Geoff Peters Systems Behaviour Open University Set Book 1987. A CyberOrganism Model for Awareness in Collaborative Communities on the Internet Lee Li-Jen Chen and Brian R. Gaines Knowledge Science Institute, University of Calgary, Calgary, Alberta, Canada T2N-1N4 Elements «Elements in a system are not free to do all the things which, unorganized, they might do...when organized they are enabled to do together what none of them could do alone, or, if unorganized, even together.» Systems enable cooperation, thus extend scope Closed systems Fixed inputs Fixed outputs Open systems Variable inputs Variable outputs Goals Implicit duties (for instance government) Stakeholder needs (like Universal Access) Business propositions (a better battery) Opportunities Constraints (a possible goal is to remove a constraint) - Money - Time - Resources - Space, weight or similar - Long term effects, sustainability Internal goals Better training (studies show good effect) Better planning New technology (ICT, logistics, robotics...) New components (nano, composites, non-polluting, more energy efficient...) Employee safety, motivation, participation www.ekornes.com February 2011

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