Transcript Business Ethics: Sunday Ethics

Business Ethics: Sunday EthicsMonday World
Six Pillars of Character
Trustworthiness
Respect
Responsibility
• Honesty, Integrity,
Reliability, Loyalty
• Civility, Courtesy, Dignity,
Tolerance, Acceptance
• Accountability, Diligence,
Perseverance, Improvement
Six Pillars of Character
Fairness
Caring
• Process, Impartial, Equity
• Concerned with the welfare
of others
Citizenship • Civic virtues and duties
The Three E Equation
Efficiency + Effectiveness + Ethics = Profits + Long-Term
Stability.
Is the drive and hunger for stronger bottom lines
incompatible with the Christian view of ethics?
Christian business leaders can avoid cognitive
dissonance by establishing a business ethics
framework and belief system.
Socratic Model of Decision Making
 Ask and answer a series of questions that lead to a
logical conclusion.
1. Is this the right thing to do?
2. Would I want my mother to know what I am doing?
3. Would I want my name on it in the news?
4. Is it fair?
5. Am I following the Golden Rule?
Considerations
 Personal views and beliefs.
 Organizational views and beliefs.
 Societal views and beliefs.
 Legal issues.
 Political issues.
 Stakeholders.
Ethical Decision Making
 Based on:
Facts-Truth or Falsity
Values-Worth or Rightness
Policy-Action that Should be taken
7 Step Guide for Ethical Decision
Making
1.
2.
3.
4.
5.
6.
7.
ID human consequences-who is helped/harmed.
ID economic consequences-who stands to gain/lose
ID laws, policies, or regulations-violated or not
ID list of alternative responses
Develop Christian Worldview analysis-WWJD
Conduct a secular ethical analysis
Select the best alaternative
How do you build a pyramid?
Mission Statement
Goals
Objectives
Plans
Ethics in Hiring & Performance
Appraisals
Job Task Analysis
 ID SKA’s
 Screening Devices-reliable (measure what they are
designed to measure) and consistent (if the measure
similar behaviors, you get the same outcomes. 2 + 2 will
always equal 4)
Appraisals
 Recently error.
 Halo error.
 Country Club error.
 Lumping error.
Ethical Performance Standards
 More than “I expect a good days work for a good days
pay.”
 Goal setting.
 Employee participation.
 Flexibility.
 Feedback.
 Accountability.
 Rewards.
Empowering v. Dumping
“I can not define pornography, but I know it when I see
it.”
 Clear expectations.
 Hovering v. True delegation.
 Authority.
 Resources.
 Accountability and Credit.
Why do employees fail?
 They don’t know to do.
 They can’t do.
 They won’t do.
Ethical Employee Performance
Rehabilitation Action Plan
No. 1: Be Prepared before you take
supervisory action.
Define the Issue or Problem
 What is the offending behavior? Answer the who,
what, when & where.
 What if I do nothing? Is there harm? Damage?
None?
 List harm or damage caused. Articulate the gravity
of the harm.
 Is there a rule or expectation that relates to this
situation? List the rules or expectations. Assume
that the rule is in place to prevent the listed harm
or to facilitate a desired outcome.
 Know and understand the reason for and purpose
of the rule or expectation.
Gravity of the Harm
 Intensity – strength of the pain caused.
 Duration – how long it lasts.
 Certainty – how sure we are of outcome.
 Propinquity – how soon the pain started.
 Fecundity – probability the pain will be followed
by more pain.
 Purity – probability the pain caused will not turn
out to be a good thing.
 Extent – the number of people effected.
Compare Behaviors with the Rules or
Expectations
 Instances of compliance? Suggests that the person
knows of and is capable of following the rule.
 How often is there noncompliance?
 Gray areas regarding the meaning of the rules or
expectations?
 Have I committed similar behaviors? If so, you
better get another supervisor to proceed from here.
 Have others committed similar behaviors? What
happened with them?
Measure against the 3 prong test:
Employees fail because:
1. They don’t know to do. (They have not been
given direction or an explanation of
expectations; or
2. They cannot do. (They have not been given the
training or resources or they are unsuited for the
job; or
3. They won’t do. (They choose to do their own
thing).
If 1 or 2 above, then its our fault & we should correct
it, but 3 is on the employee.
Pre-interview Prep.
You must be in a position of strength.
 You know the behavior, you know and understand
why the behavior needs to change, you know the
employee has had the proper training and
direction.
 You understand any union or labor agreement
requirements.
 You have your superiors on board.
 You have discussed justifiable sanctions with your
superiors.
 You have possible alternative solutions ready.
No. 2: Discuss the Issue with the Employee
 In person (Don’t leave notes or Email).
 If appropriate give the employee notice of the
meeting and some time to prepare.
 Meet in private (remember that old rule, praise in
public, criticize in private).
 Maintain respect for the employee and remain
professional.
 Build rapport, but do not start out by praising the
employee’s worth to the company. You will end up
having to use the “but” word and the employee will
feel zapped, ambushed, and patronized.
Discuss the Issue
 Explain the purpose of the meeting. Get to the
point without being terse.
 Describe the undesired behaviors, explain the
rules & expectations, the purpose of the rules &
expectations. (Stick to behaviors not personalities)
 Try to get the employee to agree with the purpose
of the expectations and rules.
 Try to get the employee to agree that the offending
behavior is unacceptable.
Discuss the Issue
 An employee who refuses to agree that the rules &
expectations should be followed & that the offending
behavior is unacceptable, is not likely salvageable &
the action plan is not likely to produce desired results.
 You may be left with progressive discipline or
termination.
No. 3: Alternatives
 Ask the employee for suggestions for improvement.
 Listen, then offer your own suggestions.
 Make a list of alternative of which you both agree.
 Agree to a time-table to implement them.
 Agree on how progress is to be measured.
 Agree on feedback.
No. 4: Sanctions
 Do not threaten.
 Inform employee of consequences for failing to correct
the behavior. (Because you have thought this out and
have your superiors on board, you are confident that
sanctions, if needed will be implemented.)
 Let the employee know that should he have difficulty
meeting the agreement, to let you know. Other
alternatives may exist.
No 5: Praise & Feedback
 At the conclusion of the interview now praise: “I
believe in you, you have demonstrated that you can
solve any problem once you put your mind to it.”
 Let the employee know how he is doing.
 Reward good results.
 Don’t be picky, but don’t let the employee slide without
an offer to help.
No. 6: Follow Through
 If the employee succeeds, Great!
 If the employee fails, follow through with
appropriate sanctions.
 Remember, you should not have mentioned
sanctions that you knew you could not deliver. If
you do not follow through, your effectiveness as a
supervisor will greatly suffer.
 There is no silver bullet: Are you willing to keep an
unsatisfactory employee in the workplace?
Ethical Record Keeping
 Don’t keep book.
 Timely.
 Accurate.
 Concrete language, avoid connotations and
exaggerations (bad, always, never, et cet.).
 Document both good and unsatisfactory behavior.
 Employee should know what is in their fact file.
Ethical Conflic Negotiations
What is conflict negotiation
 Communication designed to anticipate, contain, and
resolve disputes so that the parties reach mutually
acceptable solutions.
5 key components
 The parties involved
 The interests involved
 The relationship between the parties
 The interactions throughout the process
 The results achieved
Avoidance
 You neither address the interests of yourself or the
other party.
 Most appropriate when there are trivial issues;
 Potential harm in facing the issue outweighs the
benefits; and/or
 You have little or no power to attain desired results.
Distributive negotiation
 Parties view the potential outcome as limited to a fixed
pie with only so many slices that may distributed. A
win for one party is a loss for the other.
Integrative negotiation
 Parties educate each other about their needs and
engage in problem solving to reach a resolution that
will integrate their needs.
BATNA
 Best Alternative to a Negotiated Agreement
 To what do you aspire?
 What would make you content?
 What could you live with?
Interests v. Demands
 Stated – usually in the form of a demand.
 Patent – not necessarily stated as a demand but
discernable from the circumstances.
 Latent – hidden and must be flushed out.
Transaction costs
 Money
 Time
 Reputation
 Loss of productivity
 Stress
 Loss of free time
 Loss of good will
 Damage to relationships
Transaction costs
 What I achieve (settlement or judgment) minus
transaction costs equal outcome.
 As each side’s transaction cost increase, their interests
start to move toward each other.
 Find a way to move your interests toward each other
without raising the transaction costs.
Conflict resolution through
supportive confrontation
 Identify problem ownership.
 Research and reflect.
 Select alternative.
 Rehearse.
 Meet to resolve conflict.
 Follow-up and follow through.
Identify problem ownership
Measure actual behaviors against acceptable and
unacceptable behaviors.
 Personal standards.
 Policy and procedures.
 Rights.
 Norms.
 Laws.
Research and reflect
 Is the problem real or imagined?
 Underlying reason for behavior?
 Behavior causing the problem?
 Motivations for behavior?
Select alternative
 Three alternatives rule:
 Change your attitude – move the behavior from your
unacceptable window into the acceptable arena.
 Change your environment – remove yourself from
offending behavior.
 Confront the person about the offending behavior –
awareness and persuasion.
Rehearse
 Before confronting the person, rehearse.
 Practice talking and listening skills.
 Experience possible emotional reactions.
Meet to resolve the conflict
 Schedule mutually convenient time.
 Awareness of the problem in a supportive atmosphere.
 Resolve the problem.
Follow through and follow-up
 Turn short term into long term solutions.
Ethical Management Behaviors
 Golden Rule
 Modeling
 Pygmalion effect
 Equal Treatment
Mayo: The Hawthorne Studies
Study of worker efficiency at the Hawthorne
Works of the Western Electric Co. during
1924-1932.
Worker productivity was measured at
various levels of light illumination.
Researchers found that regardless of
whether the light levels were raised or
lowered, productivity rose.
Actually, it appears that the workers enjoyed
the attention they received as part of the study
and were more productive.
Theory X & Y
Douglas McGregor proposed the two different sets
of worker assumptions.
Theory X: Assumes the average worker is lazy,
dislikes work and will do as little as possible.
Managers must closely supervise and control
through reward and punishment.
Theory Y: Assumes workers are not lazy, want to
do a good job and the job itself will determine if
the worker likes the work.
Managers should allow the worker great
latitude, and create an organization to
stimulate the worker.
Maslow: The Need Theory
SelfActualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
& recognition
Social
Interpersonal
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Need
What it means
Belongingness interaction, love relations, parties
Example
Herzberg: Motivation-Hygiene Theory
Focuses on outcomes that can lead to high motivation,
job satisfaction, & those that can prevent dissatisfaction.
Motivator needs: related to nature of the work and
how challenging it is.
Outcomes are autonomy, responsibility,
interesting work.
Hygiene needs: relate to the physical & psychological
context of the work.
Refers to a good work environment, pay, job
security.
When hygiene needs not met, workers are
dissatisfied. Note: when met, they will NOT lead
to higher motivation, just will prevent low
motivation.
Equity Theory
Condition
Equity
Underpayment
Equity
Overpayment
Equity
Person
Outcomes
Inputs
Referent
= Outcomes
Inputs
Example
Worker contributes
more inputs but also
gets more outputs
than referent
Worker contributes
Outcomes < Outcomes more inputs but also
Inputs
Inputs
gets the same outputs
as referent
Outcomes > Outcomes
Inputs
Inputs
Worker contributes
same inputs but also
gets more outputs
than referent