Understanding The Ethical Organization Management Models Commerce Essay

Understanding The Ethical Organization Management Models Commerce raiseThis report mainly focuses on developing an good approach to manage brass instruments. This essay critically identifies and evaluate about ethics and how ethics helps an brass section to put wiz across good findings. This report is prep atomic number 18d by referring to various journals, way books, websites and relevant current articles.Ethics is very important for an organization. This essay will book an stem about what is ethics? And what is un respectable? Ethics helps to identify an organization by differentiating from each other. This report mainly relies on discussing about theories, models and prototypes and much concentrating on fore humanist paradigm.The purpose of this assignment is to provide base for understanding respectable conclusion qualification in an organization and providing one real world guinea pig managing organization ethically and three real world examples for the organiz ations disaster by managing the organization wrongly.In this report we critically analysis on commercial enterprise ethical decision making by an individual or group of shapeing people in the organization. Our report focus on individual moral, honesty, frankness and equity while pickings vexation decision in an organization. Our approach would be by understanding the organizational value and working people ethical discipline course is necessary for saveing them from engraining any unethical conduct.EthicsEthics in an organization means the business conduct of that organization to run the business more effectively and efficiently. In an organization people are working together with different values and sources. Managing the business ethics of an organization more effectively call for to setup common norms and standard and also it need to be communicated and enforced among the working people. Ethical principle provides the base for modern business concept in an organization. The leadership of the organization and the ethical decision-making are the basic for an ethical organization. Ethical values and principles of an organization guide the working people and corporate from the common business motive of profit and shareholders enhancement. The modern ethical organization follows corporate social responsibility, fair trade, sustainability, globalization taking into consideration ifs negative effects.Ethical organization management modelThe modern ethical management of an organization in the 21st century illustrate by four Ps as permit off as follows for the success for any modern business ventures. (Refer appendix 3) Traditionally the organization main aim is to make profit and methods for achieving it. The modern organization performance, fiddleivities and standards are assailable globally and the lenders of the organization are accountable globally.Purpose of the organizationPurpose of the organization is to making fair profit for the shareholders and in case of public function delivery of cost effective service. Personality of a good ethical organization has to consider people needs and mindset with proper consideration disposed to the world it molds.People to whom the organization operatePeople comprise the organization staffs, guests, suppliers, local communities, stakeholders who has interest in the organization.Planet where the organization operateOrganization should give due consideration for environment, neural recourses, fair-trade and sustainability.Principles of the organizationPrinciple of the organization comprises honesty, truth, and integrity. Principles of the organization has to be matched with other conflicting aims in between purpose of the organization, people to whom it operates and the major planet where the organization operate in order to arrive at sustainable organization success.Need to manage the organization ethicallyIn the modern environment organization ethics should be actively manage and it is necessary to understand the main ethical value through an organization ethic program. There are quintuplet components in organization management ethic program.Commitment -Leaders and senior management should cede commitment to the program.Assessment -There should be active assessment of organization ethical value and effectiveness.Codify -Develop a code of ethics and communicate with each other,Formalize -Formulate ethical structures and systems, ethics training and ethics communicationIntegrate -Build an ethical culture and conduct in the organization.Need to develop ethical leadership in an organizationIn the modern world ethics and values are in front of executives, managers and leaders who spend much of their time for developing organizational culture. The leadership of the organization should take responsibility and carryout the business in conformism to the management ethics program. The ethical leadership should take steps the senior management and executives including board of directors to follow and respect organization values. Carryout organization ethics program to achieve ethic program goals. Appointing senior person to coordinate the program and determine the ethics function which needs initiative.Unethical policies, activities and behaviors in an organizationThe sideline organization activities are not necessarily unlawful which are commonly considered as unethical.Dishonesty, manipulating the facts and hiding information.Manipulating and misleading advertisement, positioning and communicationsExploiting peoples feeling.Fooling and taking profit of people weaknessGreed and making inordinate profitAnything harming or endangering peopleBreaking boldness of the organizationNot accepting the blame and compensable lot of amounts for the wrong doingPreventing to notify people any significant changesLack of transparenceHarming environment or earthPreventable waste or excessive consumptionRaiding anyones privacyMisusing authority, power and r eputation.More preference giving in appointing family membersPreferential treatment or decision-making based on secret motive or dealsUnfriendliness association with people or group of peopleConflict of interest, disloyalty of trust and breach of confidentiality informationNeglecting the duty of care of an organizationFail to prevent wrong report within his authorityUnfairness and unkindnessMarketing ethic issues and stakeholdersThe organization activities are affected directly or indirectly by the internal and external stakeholders. Internal stakeholders are includes board of directors, managers, employees, and other functional departments. External stakeholders include consumers, other interest groups, competitors, advertising agencies and regulatory bodies. (Miller and Lewis, 1991).Stakeholders ethical values are subject to various business issues such as sales practices, consumers privileges, environmental and product safety, disclosure of information about the products. (Maigna n and Ferrell 2004)Various stakeholders are maybe exercise pressure on organization to achieve their individual ethical values and norms.(Annexure 1) Hence the organization values and norms are affected by oddly by primary stakeholders since they are in good position to influence the organization ethical values.Paradigm.In the modern business environment strategy-setting in the business organization is vital for its survival. The organization should consider crucial roll in the organization by setting ethical strategy. The organization has to take into note whether the organization is doing the right thing. In order implement ethical strategy for an organization we should bring different paradigm into the risk debate.Functionalist paradigmThis paradigm has been the primary one for organizational studies. This approach is mainly rely on human affairs and believes by possible action testing. It deeply rooted in sociological factors. Through Functionalist paradigm can understand and measure via science. It is influence by idealist and Marxist and assumes there are external rules and regulations to secure the external world. (Ardalan, 2003,p.202)This functionalist paradigm basically explain about classical management theory, sysytem theory and contigency theory.it makes assumption how organisation is always in control mange people in a proper way.(morgan,2006morgan,1980)Radical humanitarianism a crucial approach for a ethical organizationThis approach has been emerged from the radical humanist paradigm (Morgan 1995,Burrell 2000) This approach argues dehumanization of the employee and the workplace. Individuals generally seen as machines and work as a technical process (Robbins and Barnwell 2006 pp 21-22) In the humanist approach that focus on placing human first rather than the organization.The basic assumptions of this paradigm are according to Morgan (1995), Ideological traps Tunnel vision is based on our previous experience becoming the blueprint for inte rpreting our current experience (we often let myths and our past experience becomes our reality). We are unable to interpret reality without prejudice. Power dimension The right to define reality or the right of some to have power over others overt use of power. Power is also used in a subtle or covert way (soft domination) and its use and outcry is often unquestioned. Eg. How is power distributed in organisations? We discuss empowerment and participation but we rarely see this happening in organisations. Ethical dimension Organisations need to act in an ethical manner. How do the actions of managers and organisations impact on employees and society? People first Work is the problemOrganizational ethical decision makingIn organization marketing ethical activities we should understand how people make ethical decisions. (Refer appendix 3) explains how the ethical decisions are taken in the normal organizational environment. The burden of the decisions is evaluated by the interna l and external stakeholders. The roll of the individual and values has the great impact on any business decision making. Determining ethical decision is the primary factor in an organization (Ferrell 2005)Ethical decision making RyanairThe current CEO Mr.Michael OLeary took the ethical business decision to operate the Ryanair airline as budget airline business model in the European market. It was very success taking such decision in the past and now approximately successful airline in the European market and most of the airline travelers prefer to travel by Ryanair. The following are the benefit by taking such decisionLow cost-low frills concept94% of the booking through Internet reduced operating costAll Boeing 737-800 aircraft reduce training and maintenance costEnvironmentally friendly Boeing 737-800 aircraftCustomer satisfaction Low cost and high service performanceUnethical decision making Enron, Daewoo, ToyotaMany gather failures over the past decade are due to fraud and financial manipulation.Enron The Enron disaster is exhalent example for organizational unethical decision making. On May 25, 2006 US Huston jury found guilty the Enron CEO Mr Ken Lay and Mr Jeff Skilling for hiding financial status of the organization in 2000 and 2001 The group executives manipulate their earnings by illegal inside trading went on to liquidation. Due to the organization failure many investors lost their money and many employees lost their job. The group failed due to unethical and illegal business decision.Daewoo Kim Woo Choong founder of Daewoo Group found guilty and convicted 10 years in prison and forfeited US $ 22 billion. afterward the business failure in South Korea. The group has grown with debt-funded acquisitions. The Asian financial crisis exposed the group weakness and the total group went into bankruptcy in 1999.The following are some of the points for the failure of the organization by operating unethically.Dishonesty and manipulating the facts and hi ding information.Manipulating and misleading the investorsBreaking the trust of the organizationLack of transparencyMisusing the authority and powerNeglecting duty of care of the organizationUnfairness towards investors and employeesFail to prevent wrong report within his authorityThe ethical problem to operate the business organization is not only due to financial misinterpretation and manipulation. Toyotas recent troubles have been an example of a companys failure to understand the ethics of the customer relationship. Turning a blind eye to ethical consideration can undermine the wider economy and in time, cause irreparable damage.Toyota The organization recall millions of vetches change to customers with suspected defects as on the specific engineering problem on the breaking systems. The following are the some of the examples that the organizations ethical responsibility failure.Breaking the trust of the organizationNeglecting duty of care of the organizationAnything harming or endangering customersUnfairness towards customers and investors.ConclusionIn modern organization ethics play a major spot in taking effective decision making. Because for the success of an organization mainly rely on ethics. This report mainly focuses on theories, models and paradigms which helped to a proper decision in an organization.In this report I explained about functionalist paradigm and radical humanist paradigm. Functionalist focus only on organizational behavior through hypothesis testing but radical humanist paradigm explained about the current approach of an organization and their impact on society. According to paradigms which are not an tripping task it heavily teaches about ethics to the people.In this report I explained about ethical approach and how it controls in making an effective decision making in an organization and describing about what are the unethical approaches which rely on taking ineffective decision making.At last, to conclude my report, I would sa y organizations have started to focus on ethics. However, they did not lose the focus on organizational structure. Also there are many differences between paradigms in managing ethics.