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Importance Of Ethics And Social Responsibility Business Essay

Ethics also known as moral is determined by the class of philosophy to addresses about morality i.e. concepts such as good vs. bad, right vs. wrong and matters of justice, love, peace and virtue. The term is used to indicate how individuals or organization choose to conduct themselves in relation to universal moral behavior and actions. Ethics involve choosing actions that are right and proper and just. The individual behavior can be right or wrong, proper or improper and the managerial or individual decisions can be fair or unfair.

Ethics are vital in businesses and all aspects of living. The foundation of society is built on Ethics. Without ethical principles a business/society is bound to be unsuccessful sooner or later. Business Ethics look at ethical philosophy, moral or ethical problems and deal with issues concerning the moral and ethical rights, duties and corporate authority between a corporation and its shareholders, workers, clients, media, government, provider and dealer. Ethics are connected to all discipline of organization including accounting information, human resource management, sales and marketing, fabrication, logical belongings information and talent, global business and financial system.

Social responsibility can be defined as the responsibility of the organisation to operate in ways that provides both its individual benefit like making a profit and also the benefit of its stakeholders- those people and groups who are affected in one way or another by the behavior of the organisation. For example, an industrial chemical plant has a responsibility not only towards its customers, but also towards the shareholders and the board of directors, and to those people who live in the surrounding area. This responsibility can be "negative", meaning there is exemption from blame or liability, or it can be "positive," meaning there is a responsibility to act beneficently. Let’s take an another Example, in corporate company a chief executive make expenditures on reducing pollution beyond the amount that is in the best interests of the corporation or that is required by law in order to contribute to the social objective of improving the environment. There are lot many benefits to any organisation of being social responsible. First and foremost benefit to organization is that to ensure the customers, suppliers and the local community knows what you are doing. Publicity like this can be a key part of using CSR to win contracts. People want to buy from businesses they respect. Through this way your business reputation will be growing day by day and it encourage customers to stay with you and do business with your company.

Compare and contrast the difference between “ethics” from a personal perspective to one established viewpoint of ethics from an organisational perspective.

Personal perspective view of ethics

People’s lives are built on moral foundation of personal ethics. They support in conclusion making, guides people to contribute measures that can help to meet their inner moral principles. Ethics are used by people in solving problems in everyday life and also help for determining correct versus incorrect. Ethics are not absolute rules but they are developed during life based on range of factors. Defining personal ethics is a difficult venture for many people as they think their inner voice is all the ethical guidance they require. Perception plays a great role in what one finds ethical. By organisation view, ethics plays a vital role that defines the way of representation, way of talking, body language, attitude etc. The lack of personal ethics gives a negative response in managerial processes. For example, if a company is launching the product with risk taking, then the manager should be fully ensured with correct way of personal ethics, as the product may be failed to attract customer if marketing manager lacks in personal ethics. So, it is clear that personal ethics makes a man to take a right managerial decision.

A standard way of understanding ethical decision-making is to understand the philosophical basis for making these decisions. People and organizations need each other. The written and unwritten codes of principles and morals that administer decisions and actions inside a business are known as Business Ethics. In the Corporate world, the organization’s traditional sets principles for determining the differentiation involving excellent and dreadful judgment making and manners.

Discuss four benefits and four disadvantages of social responsibility to an organisation.

Benefits of social responsibility

Providing good value for money

If the management and workers of the organization are well social responsible for internal and external environment of the organization then it would result in best productivity and obviously the good image of the organization. The biggest power of the any organization among all resources is the human resource that’s why if human resource is so well behaved with good ethical ways the value of any organization will be good enough.

Broadening the futuristic concept of business

If the organization is giving best output to the public demand satisfying their needs with latest trends and technology, it means that the business of the organization is good and as public response is excellent the organization would have better future aspects. This all happen due to the organizations social responsibility towards their employees and environment factors. Also workers stay longer if the business has high-quality status.

For example, MC Donald’s is giving best variety of food in hygienically manner, where all the perception of individual match such as price, food quality, taste etc. Their business is so good that we can find its outlet anywhere in the world. MC Donald’s is popular because they are socially responsible to the environment and for their work.

Good relationships with local authorities help doing business easier.

Disadvantages of social responsibility towards organisation

Everything has some prons and crons, similar to social responsibility where so many people argued on the benefits and disadvantages of social responsibility. First the most important is that the organization is running for profit maximization mostly, the social responsibility shows the fundamental misconception of the character and nature of a free economy. Business functions are moreover economic rather than social if come to the practical way and it is judged by economic criteria alone. This point of view comes to the employees mind most of the time leading to not to concentrate much in their work which automatically results in bad productivity.

The role of corporation is to make a profit and maximize social welfare through the efficiency of the employees. In some cases where employees are not much social responsible for the organization than it would be very difficult for the managers or corporation to do the best out of the work and lead the group, resulting in bad image of the organization and bad internal environment

There is the concern for the efficient use of national resources, because of social costs; profitability is not necessarily the best measure of effectiveness which affects the organization goal.

Lack of interest of the employees towards social responsible in their business also not good for the organization

Competency sometimes makes the stake holders to go beyond the limit forgetting their social responsibility that harm the nature and organization too. Being socially responsible costs organisations money, and sometimes the bill is huge. Therefore the organization think to do for profit maximizing rather than be social responsible.

Discuss social responsibility barriers that inhibit an organisation

Barriers that inhabit an organization

Social responsibility has certain costs. It's not the natural thing to be responsible. Greed and selfishness work against social responsibility. When greed and selfishness become higher values, social responsibility goes out the window. One of the problems with our culture is that we worship wealth. People who have a lot of money are heroes to us and we strive to emulate them. We see wealth and power as an indicator of merit and virtue. But people who are rich and want to be richer, and corporate and industrial leaders whose jobs are to put the prosperity of their companies at the top of their priorities, often trivialize social responsibility, and this sets the tone for the whole culture. In social responsibility every individual in the organisation is not social responsible towards the work, it depends upon the people behaviour and motivation level within the organisation. Today every people think about wealth rather than social responsibility that they possess towards the organisation. This is the barrier in the organisation.

For e.g.:- in an organisation if certain facility is lacking for the staff then staff will suffer and this management must be think which in reality they don’t. This lacking of facility may affect the work out going on within the organisation.

Flow of information in the organisation should be well enough to avoid any conflicts between the staff but it arises due to the problems that every employee are not social responsible. A vendor to the company first think towards the money he/she will get from doing particular kind of work.

REFERENCES:

Millar, S and Theunissen, CA. (2008).Managing organizations in New Zealand (3rd ed., pp.-61, 69).

N.Z.: Pearson Education. 

Jain,Rupal. Importance of Ethics in Business. Retrieved Nov 21, 2010 from http://ezinearticles.com/?Importance-of-Ethics-in-BusinessHYPERLINK "http://ezinearticles.com/?Importance-of-Ethics-in-Business&id=1212419.htm"&HYPERLINK "http://ezinearticles.com/?Importance-of-Ethics-in-Business&id=1212419.htm"id=1212419.htm

Corporate Social Responsibility. Retrieved Nov 24, 2010 from http://fs4b.wales.gov.uk/bdotg/action/detail?type=RESOURCESHYPERLINK "http://fs4b.wales.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075408491&lang=hpalypcao.htm"&HYPERLINK "http://fs4b.wales.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075408491&lang=hpalypcao.htm"itemId=1075408491HYPERLINK "http://fs4b.wales.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075408491&lang=hpalypcao.htm"&HYPERLINK "http://fs4b.wales.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075408491&lang=hpalypcao.htm"lang=hpalypcao.htm

Essay 2

Discuss the purpose of planning. Factors that should be included in your discussion must contain the following:-

Different levels of planning

Processes with respect to level

Objective setting

Barriers to planning

Planning in organization is the process of creating and maintaining a plan. It is a process of forecasting the developments with the preparation of scenarios of how to react to them is planning. In simple words planning is a primary stage of before doing any kind of work which starts by arising following questions in mind such as what to do? How to do? When to do? Who will do? And how the result would be evaluated.etc and this is the main concept of planning to identify the organization direction and future aspects.

Corporate level is the top most management which provides outline for all the other planning. The main

goal of this level is to consider which business and markets to go. It is a level to add value to the business

and to ensure that it is more than that of other companies in the same business.

Business unit level is the middle level management who indulge in planning process for 1-5yrs.The role

of the business unit level is to develop and maintain a competitive lead for the goods and services that

are produced. The strategy of the business level is to maintain the business against the competitors in

the market and also, ensuring that the business is ready to accommodate new technologies as well as the

new demands.

Functional level is the lower divisional level of hierarchy who indulge in Operational planning for

1 year only. Operational planning specifies the necessary activities and plans for each department

(such as manufacturing, marketing etc.) and for each individual in achieving strategic plans.

Planning is done at three levels of the organisation. The top level managers who are the CEOs of the company make most of the strategic planning for the organisation. These types of planning are long term and have a directional specificity. They are mostly for single use example budget plans etc. The middle level managers made both strategic and operational planning’s for the organisation. The front line managers make most of the operational planning. These types of planning are short term which is only for one or 2 years, have a specific direction or detailed direction. Operational plans are also standing plans which provides a guidance for the tasks performed for example policies, rules and procedures.

Objective setting is an important part of organistaion. It is also known as MBO i.e management by objectives. It is a process where managers specify the objectives and plans to the employees. It also involves the process of reviewing and appraising the performance.

Barriers to planning occur when the company faces constant change. It acts as a hindrance in measuring the performance against the goals. Bad relation between the employer and employee reduce the efficiency of the planning process. Strict defined rules and regulations also harm the planning

Discuss the purpose of control:-

The control cycle

The different types of control processes

Barriers of control

Control is one of the main functions of management. It is an important function because it helps managers to check the deviation from organisational standards and goals. Through the process of controlling, managers

Plan

The control

Cycle

Take action Measure

If appropriate Performance

Desired results with

Actual results

Compare

Can monitor the activities of the organization and can ensure that these activities are taking place according to the organizations preferred standards and goals

Planning process include

Monitor activities

Measuring performances.

Comparing performance with the organizational standards.

Analyzing deviations.

Correcting deviations.

Let’s take an example, Savior machines are installed in the organization for getting information of incoming and outgoing of staff so that there would be no productivity loss. Camera is put to keep a check on employees work etc.

Feed forward controls: This type of control takes place to ensure that production runs smoothly before it begins. They are known as preliminary controls. An example of a feed forward control can be seen in a shoe factory, where the uncut leather for shoes and boots would be checked to make sure there were no flaws in it. Only the good quality leather would be used in the production process. Another example shows us that human inputs, as well as material inputs, can be controlled prior to processing. A public swimming pool operated by a local council may employ only people who are trained in resuscitation.

Concurrent controls are used during the production process for e.g. a thermostat in a vat of hot oil turns off the heating element once the oil has risen to the right temperature. When the oil temperature drops, the thermostat automatically switches on the heat again. In this way, the oil is kept at a constant temperature perfect for cooking there food. Thus, this control system allows managers to correct the problem as soon as it arise i.e managers can see that a machine is becoming out of order and it is time to fix it.

Feedback controls

This is the final type of control provides fact information which managers can use in the future. Once production is complete the outputs are reviewed. A common example with which most students will be familiar is that of completing an evaluation of a training course one the course is completed. The feedback give n by students will be used to improve the content and the presentation of the next course.

Barriers of control

Multicultural employees: - Sometimes the employees don’t understand and thus donot work accordinginly. This happens because of language problem which leads to lose control on work and towards employees. Thus multicultural is a big barrier in control as the thinking between the employees differs.

Technology: - lack of technology is a barrier in control. For example: - if the camera in shop is not sufficient to capture all the part, then the employee or outsider may take the benefit of it.

Action orientation:- Planning without action is nothing, similar to that if the organisation wants to do the control he have to take action where late in action leads to disorder in the functioning of the organisation. Thus action sometimes becomes the barrier in controlling. For example, a person caught by doing something wrong in the company and management delayed in taking an action towards that employee, because of delayed in action the other employees started doing the same thing.

Therefore delay in action is also a barrier in control.

Discuss one type of planning and control that managers may apply in large organisation as compared to small organisations.

Organisations require plans that cover different time horizons. Planning and controlling in large organisation differ as compared to small ones because the large organisation has wider area and wider goal than small ones. Also the large organisation planning is for a long duration of time.For Example Strategic planning

Strategic plans are long-term needs and set comprehensive directions for an organization or sub unit. Top management planning of this scope involves determining objectives for the entire organization and then deciding on the actions and resource allocations to achieve them. A successful example, when many large businesses sought to diversify into unrelated areas. A successful oil firm might have acquired an office products company, or a successful cereal manufacturer might have acquired a clothing company. These decisions represent strategic choices regarding future directions for these companies and their use of scarce resources, instead of reinvesting in areas of core competency; they were spending available monies on unrelated and probably unfamiliar areas of business activity.

This type of planning is done in large organisation by the top managers whereas the area of small organisation is small as well as their fund.

Control is aimed at ensuring that plans are fulfilled and that performance targets are met. One of the controlling methods that managers used is inspection. Inspecting in regular interval of time is also a controlling process. For example in Feed forward control the managers has to keep an eye on workers to ensure that production runs smoothly before it begins which are also called as preliminary controls. An example of a feed forward control can be seen in a shoe factory, where the uncut leather for shoes and boots would be checked to make sure there were no flaws in it. Only the good-quality leather would be used in the production process. The key to feed forward control is that managers take the appropriate actions before the occurrence of a problem (such as poor-quality products, lost customers, lost revenue and so forth).

Reference

Data retrieved on 25/Nov 2010 from

http://www.1000ventures.com/business_guide/mgmt_setting_objectives.html

Millar, S and Theunissen, CA. (2008). Managing organizations in New Zealand. ( 3rd Edition, P -105)

N.Z.: Pearson Education. 

Stagg,ian, Coulter,mary, Bergman,rolf, Robbins,stephen.(2008) Management 5. ( P- 696) Australia: Pearson Education

Campling John, Poole David, Wiesner Retha, Sieng Eng, Bobbie Ang, Wee-Liang Tan Chan, Schermerhorn John, 3rd Asia-pacific Edition 2002

“Management” P-176

ESSAY 3

Identify and explain with appropriate business examples the stages of problem solving?

A problem occurs when a person perceives that the current situation is unacceptable, or predicts that an unacceptable situation may arise in the future if action is not taken.

Stages in problem solving:

To solve a problem solver, we should go through the following stages:

Identifying a problem 

Finding possible solutions

Evaluating the alternatives and selecting the

best

Implementing the solution.

Evaluate

Identifying the problem

Identifying the correct problem is most important. At this stage, it is necessary to collect relevant information about the problem. It should include both the symptoms and the causes. A symptom is a sign that a problem exists, whereas the cause of the problem is the reason for that problem

Finding possible solutions

In this phase, we have to think about some possible ways of solving the problem. For Finding probable solutions to a dilemma, identifying the optimistic and pessimistic aspects of each answer, choosing the preeminent solution based on these findings is must. A solution is a artificial resolution to a problem. Here are two familiar types of solutions:

An unsatisfactory solution: The solution is more costly than desired and it creates new problems, or it doesn't last long.

A satisfactory solution: The desired objective can be achieved within this and it last long.

Evaluate alternatives and choosing the best

We may have many different solutions to consider. These must now be evaluated. The evaluation process must include the following:

1. Impact of the solutions

2. Cost of those solutions

3. Ethnicity of solutions

4. Acceptance of those solutions within the organization

For example, while one solution may look great to people whereas others find it unworkable or too difficult to put into practice.

Implementing the solution

Implementing the solution require huge efforts and require very watchful planning. The plan describe the series of procedures needed to accomplish the goal, the timescale and the resources mandatory at each stage. The Ways have to be devised to reduce the risks involved and prevent mistakes along with information of taking necessary action if things go wrong should also incorporated.

The condition should be monitored to make sure that things are running efficiently, once the plan has been put into action. Any problems or probable problems have to be dealt with promptly. For example, the stress should be on defining and analyzing the problem, where there is expected to be very few solutions, to point out potential causes. At any step in solving a problem it may be essential to go back and adjust work done at a prior step.

Evaluate: In this stage the situation is evaluated so as to come to know that whether the problem is solved or not? Has the objective been achieved? If the answer is ‘yes’ then the process ends and if the answer is ‘no’, then it is necessary to revisit the earlier steps in the process.

Discuss how the problem solving model may be used by organizations to make decision under the following business conditions:

Complexity

Uncertainty

Risk

Limitations of time, money and information

Individual.

A fundamental part of a manager’s role is to make decisions; it is an essential component of all management functions. The way in which an organisation develops its strategies, achieves its business plans, allocates resources and maintains its flexibility depends on the decisions taken by managers at every level throughout the organisation. Good decision making is a vital part of being a good manager.

A decision is a choice made from available alternatives or options. However, making the choice is only a part of the process. ‘Decision making’ is the process of identifying and clarifying issues. It then involves making an appropriate choice according to the circumstances and constraints.

For e.g: A manager has to decide who to allow to take leave when too many staff have submitted the same leave dates.

Uncertainty is the situation where the managers know which goals to achieve but they are not sure of the ways, paths and alternatives to that goal. Also, the outcome is not sure enough. This can be solved by appraising the strengths and weaknesses of alternatives and choosing the best .The best alternative with high results can solve the uncertainity.

Ambiguity is the situation where the preferences and tastes effect the decisions. Everyone in the organization can jugde the decision in his or her own way. It can be handled through practice, sharing the decisions with others.

Level of risk means that the goals are clearly specified and all the alternatives and information for that is available but the outcomes of each alternative can be subject to change. To lower the levels of risk, the methods or alternatives used must be monitored to ensure that the result it produces is wishful and acceptable.

Limitations of time, money and information: Unless there would be time limit in completing one task, the managers can’t put their control on the employees to do the work, which might result in unsuccessful of planning and the solution they choose. Thus managers are putting all their efforts in solving a problem from money to time and collecting information regarding the same.

Suggest three techniques to aid decision making in an organisation.

Decision making is an essential component of all management functions The way the organisation allocates its resources, Solves its problems and accomplishes its goals all depends on the decisions of its managers. However, the types of decision and the circumstances in which decisions have to be made may vary significantly from day-to-day decisions within a well-structured operational framework to longer-term business or strategic decisions made in conditions of uncertainty, ambiguity and risk.

Three techniques to aid effective decision making in an organisation are as follows:-

Acting as entrepreneurial: In this entrepreneurial role, managers act as initiators, designers and encouragers of change and innovation. They constantly look for new ways to improve the unit’s performance. When one appears they evaluate its potential and, where appropriate, initiate action. This technique of being an entrepreneur helps the organisation in taking effective decision for the business.

Resource allocator: - It is the process of finding the correct way of allocating the resources and this could help the organisation in going right direction and obviously the way of taking decision would be simple and easy. In this major technique the manager distributes resources of all types, including time, funding and equipment as well as human resources. But, as in the disseminator role, the manager filters the allocation of resources, passing on only those that sections or staff is thought to require.

As negotiator: -The manager needs to represent the best interests in the organisation, customers or staff, dependent upon the situation. Since most work situations are dynamic, with constantly changing demands and pressures, it is hardly surprising that studies of managers indicate a considerable amount of time spent in negotiation with others. This technique of being a negotiator would really help the manager in making the best decision for the future of the business

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