Business Ethics: Sunday Ethics- Monday World

1. Business Ethics: Sunday Ethics- Monday World

2. Six Pillars of Character

3. Six Pillars of Character

4. The Three E Equation Efficiency + 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.

5. Socratic Model of Decision Making • Ask and answer a series of questions that lead to a logical conclusion. • Is this the right thing to do? • Would I want my mother to know what I am doing? • Would I want my name on it in the news? • Is it fair? • Am I following the Golden Rule?

6. Considerations • Personal views and beliefs. • Organizational views and beliefs. • Societal views and beliefs. • Legal issues. • Political issues. • Stakeholders.

7. Ethical Decision Making • Based on: Facts-Truth or Falsity Values-Worth or Rightness Policy-Action that Should be taken

8. 7 Step Guide for Ethical Decision Making • ID human consequences-who is helped/harmed. • ID economic consequences-who stands to gain/lose • ID laws, policies, or regulations-violated or not • ID list of alternative responses • Develop Christian Worldview analysis-WWJD • Conduct a secular ethical analysis • Select the best alaternative

9. How do you build a pyramid?

10. Mission Statement Goals Objectives Plans

11. Ethics in Hiring & Performance Appraisals Job Task Analysis • ID SKA’s • Screening 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) Appraisals • Recently error. • Halo error. • Country Club error. • Lumping error.

12. Ethical Performance Standards • More than “I expect a good days work for a good days pay.” • Goal setting. • Employee participation. • Flexibility. • Feedback. • Accountability. • Rewards.

13. 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.

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

15. Ethical Employee Performance Rehabilitation Action Plan

16. No. 1: Be Prepared before you take supervisory action.

17. Define the Issue or Problem • What 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.

18. Gravity of the Harm • Intensity – 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.

19. Compare Behaviors with the Rules or Expectations • Instances 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?

20. Measure against the 3 prong test: Employees fail because: • They don’t know to do. (They have not been given direction or an explanation of expectations; or • They cannot do. (They have not been given the training or resources or they are unsuited for the job; or • 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.

21. 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.

22. No. 2: Discuss the Issue with the Employee • In 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.

23. Discuss the Issue • Explain 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.

24. Discuss the Issue • An 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.

25. No. 3: Alternatives • Ask 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.

26. No. 4: Sanctions • Do 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.

27. No 5: Praise & Feedback • At 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.

28. No. 6: Follow Through • If 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?

29. Ethical Record Keeping • Don’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.

30. Ethical Conflic Negotiations

31. What is conflict negotiation • Communication designed to anticipate, contain, and resolve disputes so that the parties reach mutually acceptable solutions.

32. 5 key components • The parties involved • The interests involved • The relationship between the parties • The interactions throughout the process • The results achieved

33. Avoidance • You 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/or • You have little or no power to attain desired results.

34. Distributive negotiation • Parties 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.

35. Integrative negotiation • Parties educate each other about their needs and engage in problem solving to reach a resolution that will integrate their needs.

36. BATNA • Best Alternative to a Negotiated Agreement • To what do you aspire? • What would make you content? • What could you live with?

37. Interests v. Demands • Stated – 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.

38. Transaction costs • Money • Time • Reputation • Loss of productivity • Stress • Loss of free time • Loss of good will • Damage to relationships

39. Transaction costs • What 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.

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

41. Identify problem ownership Measure actual behaviors against acceptable and unacceptable behaviors. • Personal standards. • Policy and procedures. • Rights. • Norms. • Laws.

42. Research and reflect • Is the problem real or imagined? • Underlying reason for behavior? • Behavior causing the problem? • Motivations for behavior?

43. 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.

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

45. Meet to resolve the conflict • Schedule mutually convenient time. • Awareness of the problem in a supportive atmosphere. • Resolve the problem.

46. Follow through and follow-up • Turn short term into long term solutions.

47. Ethical Management Behaviors • Golden Rule • Modeling • Pygmalion effect • Equal Treatment

48. Mayo: The Hawthorne Studies • 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.

49. Theory X & Y • 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.

50. Self- Actualization Realize one’s full potential Use abilities to the fullest Esteem Feel good about oneself Promotions & recognition Belongingness Social interaction, love Interpersonal relations, parties Safety Security, stability Job security, health insurance Physiological Food, water, shelter Basic pay level to buy items Maslow: The Need Theory Need What it means Example