Chapter 3 Managers

8/8/2019 Chapter 3 Managers

1/16

CHAPTER 3CHAPTER 3

ETHICS, VALUES AND THEETHICS, VALUES AND THE

MANAGERMANAGER


2/16

OVERVIEWOVERVIEW

y

THE MANAGER AS AN INDIVIDUALy THE MANAGER AS AN AGENT

y THE MANAGER AS A MORAL

LEADER


3/16

THE MANAGER AS ANTHE MANAGER AS AN

INDIVIDUALINDIVIDUAL

THE MANAGER

AS AN

INDIVIDUAL

ConscienceConscience IntegrityIntegrity

Self InterestSelf Interest


4/16



Conscience

the moral compass of a human being provides the inner voice, which senses right and

wrong actions and activates the alarm when an

action is on the wrong track

it is an 'obstacle' against questionable conduct

a manager must be guided by his orher

conscience


5/16


INDIVIDUALINDIVIDUALSelf-interest

Self-interest is the sense of wanting to do or accomplish

something that is advantageous and of interestto own selfonly

In economics or businesses, self-interest serves as a

source of motivation to decide on a particular course of

action (Adam Smith)

Acting to maximize self-interest is considered rational in

the sphere of economics and business especially if it is in

the long-term interest ofthe individual firm or person -

enlightened self-interest.


6/16



Integrity

What is integrity? Ordinarily, integrity has been

associated with sincerity, trustworthiness, and honesty

Integrity is the culmination ofthe development of

intellectual and moral virtues in a person

A person is considered to have a good character when all

virtues are integrated in his personality or what some

philosophers call unity of virtues

Integrity has two traits, namely humility and courage


7/16



In business, values such as honesty, quality,

profitability, sensitivity, sincerity, and high

ethical and moral standards, are very important.

Every individual in an organization should know

how to integrate this set of corporate values into

day to day practices aligned with corporateprinciples. By so doing, they can accomplish

integrity in their own selves, whichthen leads to

the integrity ofthe corporation as a whole.


8/16

THE MANAGER AS AN AGENTTHE MANAGER AS AN AGENT

THE MANAGER AS

AN AGENTRolesRoles

AgencyAgency

ProblemProblem


9/16


Agency in the context of managerial roles refers

to managers as economic agents ofthe

organizations they represent

Two basic roles of managers include:

member of a family, as a father or a mother, and as a

husband or a wife, who is bound by economic,

religious and cultural values, and

member of a group, who is expected to share and

contribute to achieving the organization's goals.


10/16


Agency roles:

Planning, organizing, and budgeting, Decision-making,

Managing people,

Informational tasks, Taking care of employees' welfare, and

Leading and building performing teams.


11/16


Agency Problem

Agency relationship can be defined as a contract

between principals (owners/shareholders) of a

firm and an agent (manager)

Agency problems arise when there is a conflict

between a firm's managers and its shareholderssuchthatthe goals ofthe principals are not

among the agents' priorities


12/16


Examples of Agency Problems

Communication breakdowns between the management and owners,

Conflicting principles and ethical values between the managementand owners

Conflicts between company and personal values

How to handle?

implementing the share option scheme, which gives a share of ownership to the managers,

introducing performance bonuses, and

monitoring managers' performances, for instance, by constantly

auditing their records


13/16

THE MANAGER AS A MORALTHE MANAGER AS A MORAL

LEADERLEADER

THE MANAGER

AS A MORAL

LEADER

LeadershipLeadership

QualitiesQualities

Core PurposeCore Purpose

and Values inand Values in

OrganizationalOrganizational

LeadershipLeadership


14/16


LEADERLEADER

The features of leadership are:

power, value-laden,

followers and leaders,

changes toward betterment, and mutual goals and purpose.


15/16


LEADERLEADER

Amongst the leadership qualities are:

integrity, prudence, sharing of core values and purposes,

inspiring others, including followers and associates through stories ofidentity,

encouraging communication and providing mechanisms for voicing

opinions,

defining, planning and carrying out business strategies effectively in

line with core purposes, willing to take risks,

having long term goals and visions, and

encouraging others to not give up and learn from mistakes.


16/16


LEADERLEADER

The core purpose of an organization is the

reason for its being orthe reason forthe

organization's existence

The core values of organizations are the

things that make the organizations what

they are and these values define the scope

ofthe organizations' goals

Chapter 3 Managers

Documents

Transcript of Chapter 3 Managers