Business Ethics: Sunday Ethics- Monday World

Six Pillars of Character

Six Pillars of Character

The Three E EquationEfficiency + Effectiveness + Ethics = Profits +

Long-Term Stability.Is the drive and hunger for stronger bottom

lines incompatible with the Christian view of ethics?

Christian business leaders can avoid cognitive dissonance by establishing a business ethics framework and belief system.

Socratic Model of Decision MakingAsk and answer a series of questions that

lead to a logical conclusion.1.Is this the right thing to do?2.Would I want my mother to know what I am

doing?3.Would I want my name on it in the news?4.Is it fair?5.Am I following the Golden Rule?

ConsiderationsPersonal views and beliefs.Organizational views and beliefs.Societal views and beliefs.Legal issues.Political issues.Stakeholders.

Ethical Decision MakingBased on:Facts-Truth or FalsityValues-Worth or RightnessPolicy-Action that Should be taken

7 Step Guide for Ethical Decision Making1. ID human consequences-who is helped/harmed.2. ID economic consequences-who stands to

gain/lose3. ID laws, policies, or regulations-violated or not4. ID list of alternative responses5. Develop Christian Worldview analysis-WWJD6. Conduct a secular ethical analysis7. Select the best alaternative

How do you build a pyramid?

Mission Statement

Goals

Objectives

Plans

Ethics in Hiring & Performance AppraisalsJob Task AnalysisID SKA’sScreening Devices-reliable (measure what they

are designed to measure) and consistent (if the measure similar behaviors, you get the same outcomes. 2 + 2 will always equal 4)

AppraisalsRecently error.Halo error.Country Club error.Lumping error.

Ethical Performance StandardsMore than “I expect a good days work for a

good days pay.”Goal setting.Employee participation.Flexibility.Feedback.Accountability.Rewards.

Empowering v. Dumping“I can not define pornography, but I know it

when I see it.” Clear expectations.Hovering v. True delegation.Authority.Resources.Accountability and Credit.

Why do employees fail?They don’t know to do.They can’t do.They won’t do.

Ethical Employee Performance Rehabilitation Action Plan

Define the Issue or ProblemWhat is the offending behavior? Answer

the who, what, when & where.What if I do nothing? Is there harm?

Damage? None? List harm or damage caused. Articulate

the gravity of the harm.Is there a rule or expectation that relates

to this situation? List the rules or expectations. Assume that the rule is in place to prevent the listed harm or to facilitate a desired outcome.

Know and understand the reason for and purpose of the rule or expectation.

Gravity of the HarmIntensity – strength of the pain caused.Duration – how long it lasts.Certainty – how sure we are of outcome.Propinquity – how soon the pain started.Fecundity – probability the pain will be

followed by more pain.Purity – probability the pain caused will

not turn out to be a good thing.Extent – the number of people effected.

Compare Behaviors with the Rules or ExpectationsInstances of compliance? Suggests that

the person knows of and is capable of following the rule.

How often is there noncompliance?Gray areas regarding the meaning of the

rules or expectations?Have I committed similar behaviors? If

so, you better get another supervisor to proceed from here.

Have others committed similar behaviors? What happened with them?

Measure against the 3 prong test:Employees fail because:

1. They don’t know to do. (They have not been given direction or an explanation of expectations; or

2. They cannot do. (They have not been given the training or resources or they are unsuited for the job; or

3. They won’t do. (They choose to do their own thing).If 1 or 2 above, then its our fault & we

should correct it, but 3 is on the employee.

Pre-interview Prep.You must be in a position of strength.

You know the behavior, you know and understand why the behavior needs to change, you know the employee has had the proper training and direction.

You understand any union or labor agreement requirements.

You have your superiors on board.You have discussed justifiable sanctions

with your superiors.You have possible alternative solutions

ready.

No. 2: Discuss the Issue with the EmployeeIn person (Don’t leave notes or Email).If appropriate give the employee notice of

the meeting and some time to prepare.Meet in private (remember that old rule,

praise in public, criticize in private).Maintain respect for the employee and

remain professional.Build rapport, but do not start out by

praising the employee’s worth to the company. You will end up having to use the “but” word and the employee will feel zapped, ambushed, and patronized.

Discuss the IssueExplain the purpose of the meeting. Get

to the point without being terse.Describe the undesired behaviors, explain

the rules & expectations, the purpose of the rules & expectations. (Stick to behaviors not personalities)

Try to get the employee to agree with the purpose of the expectations and rules.

Try to get the employee to agree that the offending behavior is unacceptable.

Discuss the IssueAn employee who refuses to agree that the

rules & expectations should be followed & that the offending behavior is unacceptable, is not likely salvageable & the action plan is not likely to produce desired results.

You may be left with progressive discipline or termination.

No. 3: AlternativesAsk the employee for suggestions for

improvement.Listen, then offer your own suggestions.Make a list of alternative of which you both

agree.Agree to a time-table to implement them.Agree on how progress is to be measured.Agree on feedback.

No. 4: SanctionsDo not threaten.Inform employee of consequences for failing

to correct the behavior. (Because you have thought this out and have your superiors on board, you are confident that sanctions, if needed will be implemented.)

Let the employee know that should he have difficulty meeting the agreement, to let you know. Other alternatives may exist.

No 5: Praise & FeedbackAt the conclusion of the interview now praise:

“I believe in you, you have demonstrated that you can solve any problem once you put your mind to it.”

Let the employee know how he is doing.Reward good results.Don’t be picky, but don’t let the employee

slide without an offer to help.

No. 6: Follow ThroughIf the employee succeeds, Great!If the employee fails, follow through with

appropriate sanctions.Remember, you should not have mentioned

sanctions that you knew you could not deliver. If you do not follow through, your effectiveness as a supervisor will greatly suffer.

There is no silver bullet: Are you willing to keep an unsatisfactory employee in the workplace?

Ethical Record KeepingDon’t keep book.Timely.Accurate.Concrete language, avoid connotations and

exaggerations (bad, always, never, et cet.).Document both good and unsatisfactory

behavior.Employee should know what is in their fact

file.

Ethical Conflic Negotiations

What is conflict negotiationCommunication designed to anticipate,

contain, and resolve disputes so that the parties reach mutually acceptable solutions.

5 key componentsThe parties involvedThe interests involvedThe relationship between the partiesThe interactions throughout the processThe results achieved

AvoidanceYou neither address the interests of yourself

or the other party.Most appropriate when there are trivial

issues;Potential harm in facing the issue outweighs

the benefits; and/orYou have little or no power to attain desired

results.

Distributive negotiationParties view the potential outcome as limited

to a fixed pie with only so many slices that may distributed. A win for one party is a loss for the other.

Integrative negotiationParties educate each other about their needs

and engage in problem solving to reach a resolution that will integrate their needs.

BATNABest Alternative to a Negotiated Agreement

To what do you aspire?What would make you content?What could you live with?

Interests v. DemandsStated – usually in the form of a demand.Patent – not necessarily stated as a demand

but discernable from the circumstances.Latent – hidden and must be flushed out.

Transaction costsMoneyTimeReputationLoss of productivityStressLoss of free timeLoss of good willDamage to relationships

Transaction costsWhat I achieve (settlement or judgment)

minus transaction costs equal outcome.As each side’s transaction cost increase, their

interests start to move toward each other.Find a way to move your interests toward

each other without raising the transaction costs.

Conflict resolution through supportive confrontationIdentify problem ownership.Research and reflect.Select alternative.Rehearse.Meet to resolve conflict.Follow-up and follow through.

Identify problem ownershipMeasure actual behaviors against acceptable

and unacceptable behaviors.Personal standards.Policy and procedures.Rights.Norms.Laws.

Research and reflectIs the problem real or imagined?Underlying reason for behavior?Behavior causing the problem?Motivations for behavior?

Select alternative

Three alternatives rule:Change your attitude – move the behavior

from your unacceptable window into the acceptable arena.

Change your environment – remove yourself from offending behavior.

Confront the person about the offending behavior – awareness and persuasion.

Rehearse Before confronting the person, rehearse.Practice talking and listening skills.Experience possible emotional reactions.

Meet to resolve the conflictSchedule mutually convenient time.Awareness of the problem in a supportive

atmosphere.Resolve the problem.

Follow through and follow-upTurn short term into long term solutions.

Ethical Management BehaviorsGolden RuleModelingPygmalion effectEqual Treatment

Study of worker efficiency at the Hawthorne Works of the Western Electric Co. during 1924-1932.

Worker productivity was measured at various levels of light illumination.Researchers found that regardless of whether the light levels were raised or lowered, productivity rose.

Actually, it appears that the workers enjoyed the attention they received as part of the study and were more productive.

Douglas McGregor proposed the two different sets of worker assumptions.

Theory X: Assumes the average worker is lazy, dislikes work and will do as little as possible.

Managers must closely supervise and control through reward and punishment.

Theory Y: Assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.

Managers should allow the worker great latitude, and create an organization to stimulate the worker.

Self-Actualization

Self-Actualization

Realize one’s full potential

Realize one’s full potential

Use abilities to the fullest

Use abilities to the fullest

EsteemEsteem Feel good about oneself

Feel good about oneself

Promotions & recognition

Promotions & recognition

BelongingnessBelongingness Social interaction, love

Social interaction, love

Interpersonal relations, parties

Interpersonal relations, parties

SafetySafety Security, stabilitySecurity, stability Job security, health insurance

Job security, health insurance

PhysiologicalPhysiological Food, water, shelter

Food, water, shelter

Basic pay level to buy items

Basic pay level to buy items

Need What it means Example

Focuses on outcomes that can lead to high motivation, job satisfaction, & those that can prevent dissatisfaction.

Motivator needs: related to nature of the work and how challenging it is.

Outcomes are autonomy, responsibility, interesting work.

Hygiene needs: relate to the physical & psychological context of the work.

Refers to a good work environment, pay, job security.When hygiene needs not met, workers are dissatisfied. Note: when met, they will NOT lead to higher motivation, just will prevent low motivation.

ConditionCondition Person ReferentPerson Referent ExampleExample

EquityEquity Outcomes = OutcomesInputs Inputs

Outcomes = OutcomesInputs Inputs

Worker contributesmore inputs but also

gets more outputsthan referent

Worker contributesmore inputs but also

gets more outputsthan referent

UnderpaymentEquity

UnderpaymentEquity

Outcomes < OutcomesInputs Inputs

Outcomes < OutcomesInputs Inputs

Worker contributesmore inputs but alsogets the same outputs

as referent

Worker contributesmore inputs but alsogets the same outputs

as referent

OverpaymentEquity

OverpaymentEquity

Outcomes > OutcomesInputs Inputs

Outcomes > OutcomesInputs Inputs

Worker contributessame inputs but also

gets more outputsthan referent

Worker contributessame inputs but also

gets more outputsthan referent