Chapter 9 Management Ethics
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Wages
Two factors in determining the wage level:
The employee’s job performance
The fairness of the wage agreement terms
A living wage is supported by moral grounds:
Utilitarian element promoting human welfare
Kantian principle of respect for human dignity
Common sense view that some wages are so low as to be inherently exploitative
Critics of living-wage laws believe they cost jobs
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Reviewing the
2015 Bureau of Labor Statistics Study
76.0 million workers age 16 and older in the United States were paid at hourly rates
59 percent of all wage and salary workers (128.8 m).
1.3 million hourly workers earned exactly the prevailing min wage of $7.25 per hour (some states option for higher) (1.0%).
1.7 million workers earned less than the min. wage (1.3%).
3.04 million or 4% of hourly workers earned min wage or less.
62.8% were women of all workers earned the min wage or less.
37.2 % were men of all workers earned the min wage or less
What examples can you share that support this statement?
Chapter Nine: The Workplace – Today’s Challenges
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“This isn't your father's office environment”
Employee Time management:
Social media use
Motivation and Productivity Overwhelming workloads
Too many Ethical issues for top management to grapple with:
Gossip Bullying
Harassment Discrimination
Low motivation and job satisfaction
Globalization and changing demographics
Diversity Interpersonal conflict
Code of Ethics
Business Ethics
Poor job fit Performance
Keeping up with technology
Understanding customer needs and motivations
Work-connected smart devices
Handling Customers
Employee Interaction
Communication problems
Workforce changes
Freelance and remote workers
Information and choice available to the workforce
Generation conflicts
“This isn't your father's office environment”
Older well established companies:
The more traditional an organization the more they tend to rely on letting past success to dictate future success.
They do not see the urgency of people development and are not willing to put up the resources to help grow leaders and their team.
There is a lack of focus on leveraging the current technologies available for competitive advantage.
Today’s workplace has challenges indeed !
Introduction
According to the U.S. Supreme Court, privacy is “the right to be let alone.”
The Court considers privacy to be one of the most comprehensive and valued rights of citizens.
What moral issues arise in the workplace regarding privacy?
What are a company’s responsibilities regarding employee privacy?
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Organizational Influence in Private Lives
The importance of privacy – Our concern for privacy has three aspects:
We want to control intimate or personal information about ourselves and not permit it to be freely available to everyone.
We don’t want our private selves to be on public display.
We value being able to make certain personal decisions autonomously.
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Management Ethics
How important is privacy to you personally?
Describe a situation, work-related or otherwise, in which you felt your privacy was threatened.
Week 11 Chap 9 – The Workplace: Today’s Challenges (pg 457)
Obtaining Information
Businesses often obtain information about their employees through testing and/or monitoring.
Informed consent: Its presence or absence is the main ethical issue in testing and monitoring – it implies deliberation and free choice.
Deliberation: Employees must be provided all key facts concerning the information gathering procedure and understand its consequences.
Free choice: The decision to participate must be voluntary and un-coerced.
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Personality tests: One of the most popular, the Myers-Briggs Type Indicator, is used by eighty-nine of the Fortune 100 companies, and is taken by more than 2.5 million Americans every year.
Such tests help businesses both screen candidates and match individuals to appropriate jobs.
But they involve questionable psychological premises (that individuals fit into a small number of personality types), may invade privacy, and may reinforce conformity.
Obtaining Information
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Management Ethics
2. Have you ever experienced a conflict of interest, or been tempted to do something that you thought went against your job responsibilities? Describe a situation where your self-interest diverged from what you believed to be morally right.
Week 11 Chap 9 – The Workplace: Today’s Challenges (pg 457)
Working Conditions
Employers clearly have a moral obligation not to expose workers to needless risks or to negligently or recklessly endanger their lives or health.
Employers, however, are not morally responsible for all workplace accidents caused by coworkers’ negligence or failure to exercise due care.
In some circumstances or in certain occupations, an injured worker can reasonably be said to have voluntarily assumed the risk.
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What causes accidents? Accidents don’t just happen, but often result from poor job practices and environments that fail to prioritize safety.
OSHA: With the 1970 Occupational Safety and Health Act, regulation of working conditions passed from the states to the federal government.
The thrust of the act was to ensure safe and healthy working conditions and impose a duty on employers to provide those conditions.
Working Conditions
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Management styles: Nothing affects environment more than management style and quality.
In The Human Side of Enterprise, Douglas McGregor described two management styles:
Theory X managers believe that workers dislike work and try to avoid it.
Theory Y managers assume that employees basically like work and view it as something natural and potentially enjoyable.
Working Conditions
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Working Conditions
Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960.
McGregor's X-Y theory is a simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten.
McGregor's ideas suggest that there are two fundamental approaches to managing people “X & Y.”
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Working Conditions
1980, Japan
Dr. William Ouchi’s
Japanese Management
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Management Ethics 11-1 Tuesday
Theory “X”
Theory “X” has these basic premises
Most people are naturally lazy and don’t like to work
Most people lack ambition and need a club over their heads in order to make them work
Most people prefer to be told what to do, and they avoid responsibility
Most people resist change
Most people are gullible and not overly intelligent
Most people are motivated by money and status rewards
Theory “Y”
Theory “Y” has these basic premises
People do not dislike work, and may actively seek it
People do not need authoritarian leadership and prefer a participative kind of management
People prefer setting their own goals rather than have someone else set them
People do not shirk responsibility but rather seek it
People who understand and care about what they are doing can devise and improve their own methods of doing work
People constantly grow and are motivated at work by interesting and challenging tasks.
What is most important to understand about these two theories are that they relate to
how
** managers picture their employees **
not
** how the employees really are. **
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Theory X managers characteristics: Some or all of them
results-driven and deadline-driven, to the exclusion of everything else
intolerant
issues deadlines and ultimatums
distant and detached
aloof and arrogant
elitist
short temper
shouts
issues instructions, directions, edicts
issues threats to make people follow instructions
demands, never asks
does not participate
does not team-build
unconcerned about staff welfare, or morale
proud, sometimes to the point of self-destruction
one-way communicator
poor listener
fundamentally insecure and possibly neurotic
anti-social
vengeful and recriminatory
does not thank or praise
withholds rewards, and suppresses pay and remunerations levels
scrutinizes expenditure to the point of false economy
seeks culprits for failures or shortfalls
seeks to apportion blame instead of focusing on learning from the experience and preventing recurrence
does not invite or welcome suggestions
takes criticism badly and likely to retaliate if from below or peer group
poor at proper delegating - but believes they delegate well
thinks giving orders is delegating
holds on to responsibility but shifts accountability to subordinates
relatively unconcerned with investing in anything to gain future improvements
unhappy
Working Conditions – The X-Y theory
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Theory X managers coerce and bully workers into conformity with organizational objectives.
Theory Y managers believe that workers are motivated by pride and self-fulfillment as well as money and job security, not dodging responsibility but accepting it and even seeking it out.
Other management styles include Theory Z managers, who hold Japanese-style respect for workers.
Working Conditions
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One management style eschews a traditionally masculine approach (hierarchical, aggressive, winner-take-all) in favor of one more congenial to women (personal, empathetic, and collaborative).
Managers who operate with rigid assumptions about human nature, or who devote themselves to infighting and political maneuvering, may damage employees’ interests and lose their respect.
Working Conditions
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Business and child care: Some argue that offering child care as a fringe benefit, and dealing flexibly with employees’ family needs, can prove advantageous for most employers.
Such policies can be cost-effective in the narrower sense – decreasing absenteeism, boosting morale and loyalty, enhancing productivity, and attracting new recruits.
Working Conditions
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Management Ethics
3. Does business have a responsibility to provide employees with more satisfying work lives? Or to better accommodate their family needs?
Week 11 Chap 9 – The Workplace: Today’s Challenges (pg 457)
Three moral concerns:
Women have a right to compete on equal terrain with men, and paid leave can reinforce that right.
Development of potential capacities is a moral ideal, and perhaps a human right, so women should not be forced to choose between childbearing and pursuing careers.
The work world often reproduces the traditional male-female division of labor within the family.
Working Conditions
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Three moral concerns:
Women have a right to compete on equal terrain with men, and paid leave can reinforce that right.
Working Conditions
Women Will Likely Be Paid Less Than Men for Next 118 Years, Says World Economic Forum
Women are currently paid what their male counterparts earned in 2006
Time, 11-18-15
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Men and women across the globe will not receive equal salaries until 2133 based on current trends, according to the World Economic Forum (WEF) Global Gender Gap report.
Almost 250 million more women are in the global workforce today than 10 years ago, says the report, yet they are currently paid what their male counterparts earned in 2006. And while many countries have observed more women entering higher education — in several countries more so than men — this trend has not necessarily been reflected in the number of women occupying skilled roles or leadership positions.
Three moral concerns:
Women have a right to compete on equal terrain with men, and paid leave can reinforce that right.
Development of potential capacities is a moral ideal, and perhaps a human right, so women should not be forced to choose between childbearing and pursuing careers.
The work world often reproduces the traditional male-female division of labor within the family.
Working Conditions
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Sources of dissatisfaction: Studies since the 1970s have cited workers’ feelings of powerlessness, meaninglessness, isolation, and self-estrangement or depersonalization.
Factors affecting job satisfaction: Employees at all occupational levels value interesting work, enough support and information to accomplish the job, enough authority to carry out the work, good pay, the opportunity to develop special skills, job security, and a chance to see results of their work.
Redesigning Work
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Management Ethics 11-1 Tuesday
Importance of job satisfaction: The design of work materially affects the total well-being of workers.
Example: Studies show that job satisfaction is the strongest predictor of longevity.
Therefore, work content and job satisfaction are paramount moral concerns.
Satisfied workers are also more productive.
Business has an economic reason as well as a moral obligation to improve work quality.
Redesigning Work
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Quality of work life: For some firms, this means providing workers with less supervision and more autonomy.
For others, it means providing work opportunities to develop and refine skills.
For still others, it means providing for greater participation in the conception, design, and execution of their work – that is, with greater responsibility and a deeper sense of achievement.
Redesigning Work
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Redesigning Work
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Management Ethics 11-1 Tuesday