Government Regulations
As is the case when a social harm is identified, the federal government will step in and design regulations that will prevent further damage by unethical companies. Currently the government protects consumers from unethical companies in several ways. The Federal Trade Commission FTC monitors advertising to ensure that companies are not misleading the public with false advertising. The goal is to stamp out deceptive practices. Another government agency, the Food and Drug Administration FDA ,...
Monitoring Complaints And Encouraging Feedback
Companies can deal with ethical violations by monitoring complaints and encouraging feedback. Companies monitor complaints against the company made by customers, shareholders, and employees. Many companies also encourage feedback by having toll-free telephone lines for customers to call or by providing suggestion boxes for employees. This system of feedback makes customers, employees, and shareholders feel as though the executives are hearing their voices. Organizations that have hotlines set...
Common Misconceptions About Negotiation
Many people are afraid to negotiate because of all the stereotypes associated with negotiation. Although business owners spend up to half their time at work negotiating, many still feel uncomfortable with the process. Some fear that they may come across to the other party as impolite, pushy, unfair, or even cheap. One common misconception about negotiation is that good negotiators use tactics similar to the stereotypical deceitful, conniving used car salesman. Being a good negotiator does not...
Process Controls
Once effective methods have been determined for solving organizational problems, managers sometimes institutionalize them in order to prevent the problem from recurring. These types of controls are called process controls and are a way of regulating how specific tasks are conducted. Three types of process controls are 1 policies, procedures, and rules 2 formalization and standardization and 3 total quality management controls. Policies, Procedures, and Rules. These are often used in the absence...
Consequences Of Poor Ethical Decisions
Enron illustrates how large-scale ethics violations can cause the downfall of a company and legal entanglements for executives. Enron filed for Chapter 11 bankruptcy and sold off many of its holdings. Several executives face trial. The ethics violations did not stop with Enron, but spread to its accounting firm, Arthur Andersen, whose reputation was also irreparably tarnished for covering up Enron's accounting wrongdoings. Despite the attention that has been given to ethics abuse by large...
Steven Stralser PhD
Steve Stralser is a unique talent. It is unusual to meet people who are both highly professional as well as generous with their knowledge. Not only is Professor Stralser's advice invaluable for business professionals, but those in the arts who are more focused on their creative endeavors would benefit from reading MBA In A Day to help strengthen their business skills. Bobi Leonard, CEO, Arcara Enterprises, Inc. Steve's book is a valuable asset to anyone needing to avoid the pitfalls of...
Be a Good Listener
Active listening skills are crucial if you want to be a skilled negotiator. Being a good listener is challenging because you may feel stressed during the negotiation. Additionally, listening requires concentration and patience. Although you may want to interrupt with your comments, try to be patient and concentrate on what is being said. Many people find it difficult to concentrate because they are too busy preparing what they will say next in reaction to what was said. If you do your research,...
Organizational Behavior And Design
Modern organizational structures are currently undergoing changes in response to new trends in the global business environment. One of the more prevalent trends is the increase in the network organization. A network organization is one that consists of a group of independent firms communicating via the latest advances in information technology. It can include suppliers, customers, and even competitors. These firms operate as an alliance in order to share skills, costs, and access to each...
Five Structural Factors
In essence, the primary goal of an organizational structure is to coordinate and allocate a firm's resources so that the firm can carry out its plans and achieve its goals and objectives. The fundamentals of organizational structure revolve around five factors the division of labor, departmentalization, the nature of the managerial hierarchy, the managerial span of control, and the amount of centralization or decentralization in the organization. Division of Labor. The division of labor...
Determine Your BATNA
In order to negotiate better, you must determine what your BATNA is prior to negotiating. BATNA, first coined by Fisher and Ury, stands for best alternative to a negotiated agreement. If you are unable to reach an agreement with the other party, what is your next best option Knowing your BATNA helps you to decide at what point the deal the other side is offering you is no longer beneficial to you. Remember, the whole point of negotiating with someone is to get something better than what you...
Equitable Treatment
An important trend in leadership is the equitable treatment of employees. This does not mean that each employee will be treated the same it means that every employee will be given the amount of individual attention they require, and it will involve leadership knowing his or her employees. A good leader will get to know employees well enough to give them what they need in order to best perform. For some employees that may mean more structure for others it may mean more freedom. Some employees...
Enron
An example of a company that committed serious ethical violations was Enron, the energy trading company. In 15 years Enron grew to be one of the largest companies in the United States, with more than 20,000 employees in over 40 countries. But by December of 2001 it became clear that Enron was involved in a huge accounting scandal, the ramifications of which were the largest Chapter 11 bankruptcy filings in U.S. history and subsequent government hearings were conducted to evaluate just how...
HighPerformance Organizations
The goal of the high-performance organization is to effectively and efficiently utilize intellectual capital. High-performance organizations focus on employee involvement, teamwork, organizational learning, total quality management TQM , and integrated production techniques. Employee involvement is accomplished through worker empowerment or participative management. Teamwork is accomplished though self-directed groups. Organizational learning involves gathering, communicating, and storing...
Whistleblowing
A common method for detection of occupational fraud is employee tips. While many employees choose to handle fraud accusations internally by reporting wrongdoings to executives, whistle-blowing is the employee's disclosure to the media or government of a company's unethical activities. Before employees step forward with information, there are several factors that they must consider. Can the ethical problems that a company is having be better handled internally Is it worth staying with a company...
Autocratic Leadership
This style of leadership is both directive and controlling. The leader will make all decisions without consulting employees and will also dictate employee roles. Micromanaging is a form of autocratic leadership in which upper management controls even the smallest tasks undertaken by subordinates. The autocratic style of leadership limits employee freedom of expression and participation in the decision-making process. It may result in alienating employees from leadership and will not serve to...
Line and Staff Organizations
The factors related to organizational structures also help describe different positions for individuals within a firm. Two examples of this are line positions and staff positions. Organizational structures often involve the interrelation between these two types of positions. Line positions are directly related to the production of goods and services. They are common in firms that involve production, manufacturing, or providing financial services. Staff positions are supportive in nature,...
Areas for Corporate Social Responsibility
CSR covers a wide range of issues, including, but not limited to the following areas Unfair Business Practices. Firms will adhere to fair selling tactics, produce quality products, and price their products fairly. They will obey laws regarding business practices. Workplace and Employee Issues. This includes upholding the rights of employees' individual freedoms, equal opportunity employment, and protecting employees from sexual harassment. It also involves paying employees fair wages, adhering...
Establishing Team Norms
The project norms are an informal standard of conduct that guides the behavior of team members. This stage involves defining team roles, rights, and responsibilities. It is important to establish these norms at the beginning of the team-building process in order to avoid problems along the way. In addition to allocating responsibilities, it may also be necessary to allocate the risk that is to be undertaken by each team member. Each member of the team should have a sense of ownership of the...
Employee Involvement Programs
Employee involvement programs seek to motivate employees by increasing their responsibilities or getting them more involved in decision-making processes. There are several types of employee involvement programs the more basic programs include job enlargement, job rotation, and teamwork. More ambitious programs include open-book management and worker empowerment. Job Enlargement. Job enlargement is a direct way to increase job responsibility. It involves expanding a position and giving an...
General Mills
In 2003 Business Ethics magazine ranked the 100 Best Corporate Citizens. General Mills, the Minnesota-based producer of cereals and other food products, ranked number one on the list. So what is this company doing that sets it apart from other companies At General Mills, the corporate culture is based on business ethics and corporate social responsibility. Employees are successful at being ethical because they follow their own standards and adhere to their core values. Employees are supplied...
Transformational and Transactional Leadership
Two additional styles of leadership worth exploring are transformational and transactional. Both have strong ethical components and philosophical underpinnings. Transformational Leadership. Leaders who have a clear vision and are able to articulate it effectively to others often characterize this style of leadership. Transformational leaders look beyond themselves in order to work for the greater good of everyone. This type of leader will bring others into the decision-making process and will...
Leadership And Motivation
An important role for a leader is motivating employees to do the best job possible. There are many ways a leader can motivate employees, and many of them do not require additional monetary compensation. Sometimes motivation is brought about through creative means. The Container Store, a Dallas-based retailer, offers its employees free yoga classes, a personalized online nutrition diary, and a free monthly chair massage. These techniques help relieve employee stress and make workers feel...
Planning
The very essence of leadership is that you have to have vision. You can't blow an uncertain trumpet. Planning is the process of determining a course of action for future conditions and events with the goal of achieving the company's objectives. Effective planning is necessary for any business or organization that wants to avoid costly mistakes. There are four different types of planning that are associated with management strategic, tactical, operational, and contingency planning. Strategic...
LaissezFaire Leadership
Delegating work works, provided the one delegating works, too. This free-rein form of leadership, if it is to be successful, requires extensive communication by management with employees. It is the style of leadership that makes employees responsible for most of the decisions that are made, and in which they are minimally supervised. Employees are responsible for motivating and managing themselves on a daily basis under this leadership style. Laissez-faire leadership may best be used when...
Informal Organizations
A formal organizational structure, represented by an organizational chart or written job descriptions, is not the only structure that exists within an organization. Between different departments and levels of hierarchy, various informal organizations exist within an organizational structure. An informal organization consists of a network of channels of communication based on informal relationships between individuals within a firm. These networks are often based on friendships and social...
Mechanistic and Organic Organizational Structures
The five structural factors just discussed give rise to numerous organizational possibilities. Mechanistic and organic structures are two possibilities at opposite ends of the organizational spectrum. They give shape to the concept of the factors of organizational structure. A mechanistic organization is characterized by the following structural factors Degree of work specialization is high. Departmentalization is rigid. Managerial hierarchy has many layers. Decision making is centralized....