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Ethical MGR and Ethical Org How To Make Lecture 8

The document discusses how to build an ethical organization and become an ethical manager. It addresses several key points: 1) There are four types of managers categorized by competence and values that must be managed differently. The organization's structure, incentives, and leader's behavior are important to promote ethical conduct. 2) Becoming an ethical manager requires strong personal integrity, understanding one's own moral values and how they align with the company's, and having the perspective to make complex ethical decisions. 3) Leaders must walk the talk and be ethical examples for the organization. Developing self-awareness and convictions over time through experience is important for upholding one's values when pressures exist.

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ganesh gowtham
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52 views15 pages

Ethical MGR and Ethical Org How To Make Lecture 8

The document discusses how to build an ethical organization and become an ethical manager. It addresses several key points: 1) There are four types of managers categorized by competence and values that must be managed differently. The organization's structure, incentives, and leader's behavior are important to promote ethical conduct. 2) Becoming an ethical manager requires strong personal integrity, understanding one's own moral values and how they align with the company's, and having the perspective to make complex ethical decisions. 3) Leaders must walk the talk and be ethical examples for the organization. Developing self-awareness and convictions over time through experience is important for upholding one's values when pressures exist.

Uploaded by

ganesh gowtham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Building an Ethical Organisation

and
Becoming an Ethical Manager
• How can top management make a company ethically oriented is a
major topic of debate - is it possible at all ?
• There are many possibilities - boss may brutally ethical but his
reportees are unethical - how do you deal ?
• 4 types of managers - Competence and Values on X and Y axis
• Type 1 - Low values Low Competency - Show the Door
• Type 2 - Right values Low competency - Can be Trained - Retain
• Type 3 - Right vales and High Competency - Gems- hold on
• Type 4 How values but High Competency - Mark them- for Exit
• Type 4 perform by shortcuts and unethical means but highly
successful and meet all targets - they are like cancer
How do we make organisations ethical
• Then how can we make the entire organisation to follow ethical values -
it is only by setting up system and checks and balances where unethical
practices are detected and action taken.

• But more than that it is the leader who has to walk the talk and the
organisation is able to take action even leader behaves unethically -
this is possible if each employee acts as a custodian of values

• So ethical questions need to be reflected upon with different


perspectives , weigh pros and cons and decide
How do we make organisations ethical
• Building an ethical organisation

• Integrity is a must for managerial character said drucker

• How do you create one - is it possible at all - how do u do

• Real test is how organisations (mean managers) react to situations or situations they
create

• As hbs prof joseph badaracco says managers have to choose with multiple rights and
multiple wrongs. Personal values of managers come into play
How do we make organisations ethical
• Structure and incentives for ethical behaviour - explicit and implicit
guidelines and how implemented - is it only on paper - people watch
-target setting is a issue which creates unethical practices in many
cases - vidhushaks -- open voicing of issues,ethics committee, good
corp gov practices
• Create a ethical climate
• Leader plays the role of ethical leader
• Punitive measures for unacceptable unethical behavior
How do we make organisations ethical
• This can vary from individual to individual in a organisation

• So, there has to be over arching framework of values - many


companies have - tata, eg

• This will be evident when outsiders deal with the company managers -
he will see how they look at a certain issue -predictability will be there

• One can be built with following elements


How do we make organisations ethical
• Structure influences behaviour - rewards and punishment system can so far
but what is needed is people behave willingly in a ethical manner - this is
ideal that is why structure , rules are put in
• Thatha raja yetha praja is the basis - leaders has to be ethical first
• Top management has a critical role in creation of a ethical co
• Defining ethical values and standards
• Monitoring and compliance
• Institutionalise so that they get passed to next generation
• Leaders define their own standards not because it is profitable but because
it is the right thing to do
How do we make organisations ethical
• Best leaders are not those who become indispensable and decide and define
everything - systems should be institutionalised which can stand the test of time -
employees should understand why they follow value system and not merely
follow.

• How to become a ethical manager

• Personal integrity is the foundation of good governance

• Employees join companies to earn a living and they are not there to express their
personal values but to do a job
Foundation for becoming a ethical manager
• Different perspectives may lead to different outcomes and you have
to choose among them.

• How do you do that - who am I - what do I stand for - this comes over
a period of time as you mature which result in attitudes and belief
and value systems which ultimately culminates in development of
character
Foundation for becoming a ethical manager
• Understanding your moral sense is key
• He is lucky if his personal values matches with company values
• Many sacrifice their personal values but some may not be able to do -
either they quit or may loose sanity or may commit suicide too
• The key is
• What the role demands
• What is your value system
• What is the compatibility
Foundation for becoming a ethical manager
• Human beings moral sense is developed by circumstances or is
inherent
• Initial years as children you are fair, just and ethical
• Then they become competitive - fair and unfair
• Then they understand roles
• When they enter real life they realise the role demands what
• Then starts role conflicts
• This happens in a learning cycle
• Experiencing - Reflection /Internalisation/Questioning exisitng
beliefs/Form new set of beliefs
Foundation for becoming a ethical manager
• Knowing yourself and your true values is a key ingredient
• Leadership has ethics as key component
• Leader is not who leads in some direction but in right direction
• You need to know yourself first - this is easier said than done
• Self awareness is key to know yourself
• What is your core strength and weakness
• Can you stand up
• When are you comfortable and uncomfortable
• How strong are your convictions
Foundation for becoming a ethical manager
• This happens as you age and mature and other people know what they
can expect of you as they have a mental image
• This is where the development of your character
• May be you may have to quit if your personal values and organisational
values huge divergence is there
• To reach this state you need to have perspective
• It is the ability to see and understand many issues and their implications
all together and integrate them and get a holistic picture.
• This comes through broadening your mind and reading
• What you do outside work is more important than what you do in work
• Why people who are viewed as ethical fall from grace - many examples
Why people fall from grace

• Reasons are
• Corrupting influence of power
• Head not firm on the shoulders
• Sense of invincibility
• Ambition without purpose - what they want to have not what they want to
be
• Rationalisation of the action for suppressing guilt to believe that you have
done nothing wrong - reasoning proceeds from arguments to conclusion
but reationalisation starts from conclusion and finds arguments to justify
it. - this may start small but has the tendency to baloon to a big scandal -
Characters of People Who are Unethical

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