Course Code: MGN313

Course Title: Management Practices and Organizational Behavior

Course Instructor: Anil Kumar

Academic Task No.: 2 Academic Task Title: Organization Change

Date of Allotment: 04-10-2018 Date of submission: 16-10-18

Student’s Roll no: 30 Student’s Reg. no: 11508283

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 Management Practices and Organizational Behavior

CASE STUDY

To apply logical reasoning in the application of

Organizational Behavior concept on Topic

Organization Ethics
Submitted by

Tanmay Thaware 11505210

Programme Name: B.tech-MBA CSE Integrated

Submitted to
MR ANIL KUMAR

School of Computer Science & Engineering

Lovely Professional University, Phagwara
ORGANIZATIONAL ETHICS
Introduction
Organizational Ethics is the ethics of an organization and it is how an organization ethically
responds to an internal or external stimulus. Organizational ethics is interdependent with the
organizational culture. Although, it is akin to both organizational behavior (OB) and business
ethics on the micro and macro levels, organizational ethics is neither OB, nor is it solely
business ethics (which includes corporate governance and corporate ethics). Organizational
ethics express the values of an organization to its employees and/or other entities irrespective
of governmental and/or regulatory laws.

Workplace Spirituality
It refers to the recognition that people have an inner life that nourishes and is nourished by
meaningful work that takes place in the context of the community.

Characteristics of a Spiritual Workplace: Suggestions for a Model

1. Emphasizes Sustainability

A systemic view of work and contribution in the world promotes links between sustainability
and an awareness of limited resources. This approach to design, production, and commerce is
being increasingly associated with spirituality because it seeks to contribute to the greater good
in the world. It also has the potential to actually increase market value and attract investors.

An understanding of sustainable growth and development includes a well-thought-out strategy

that identifies potential long-term impacts or implications of actions that could have an eventual
negative impact on business. This systemic view of global business means that a company will
constantly reassess the long view of risks and rewards associated with doing business in the
long run, including a careful ongoing review of potentially negative and unintended
consequences of business decisions on individuals, societies, or the environment.

2. Values Contribution

More than providing excellent service for customers, global service indicates a larger sense of
responsibility to contribute to the betterment of the world. While the local family business may
not provide products and services that will improve the quality of life in third world countries,
American companies historically have fundamentally understood that part of their role is to
make the world a better place through the products or services that they sell. Today’s spiritual
organization is deliberate in implementing a vision that is built around contributions to the
betterment of mankind. It promotes work outside of the organization that contributes to and
“gives back” to society through community and volunteer service. Spiritually aware managers
and businesses consider themselves servants of employees, customers, and the community.
3. Prizes Creativity

Creativity is a necessary part of the business cycle. When technology, markets shifts, and
demographic changes force organizations to rethink products and services, creativity is the key
to successfully navigating those changes. The artistic industries have long recognized the
spiritual nature of individual and group creative processes, and many educators understand the
importance of seamless, daily incorporation of creativity in helping their students learn. The
spiritual workplace recognizes that being creative is not necessarily reserved for a special few,
but that all people have creative capacities. A spiritual workplace provides resources to help
people to uncover their creative potential and to practice creativity within the organization.

4. Cultivates Inclusion

Businesses are increasingly becoming core sources of community for people in societies. The
spiritual organization respects and values individuals’ life experiences and the lessons learned
from them. Such an organization is intentional in its efforts to include individuals who bring
appropriate skill sets to a particular job, but who may have been excluded historically from
participating in a professional community of practice due to circumstances they did not choose.
Such historic exclusion from the workplace has included people with physical disabilities,
people whose skin color or ethnic origin differs from those of the majority population, and
those who have been discriminated against due to gender or sexual orientation. Increasingly,
corporations are seeing the value of their employees working together in community toward a
commonly held vision. They have a sense that the concepts of love and acceptance within a
cultural context of care builds a sense of community that supports the work of the company
and that has a direct impact on the bottom line.

5. Develops Principles

Organizations have begun to realize the benefits of treating the whole person by actively
supporting the formulation of ethical principles that promote personal growth, long-term
character development, and personal connections of faith and work development. Assisting
employees in integrating personal growth, learning, and faith with job performance benefits
the organization. This type of principled emphasis includes providing resources that help
employees better understand themselves, develop successful professional and personal
relationships, and enhance personal management skills. Employees are encouraged to develop
an accurate and realistic sense of the impact that other people have on them and the impact that
they have on others.

6. Promotes Vocation

Organizations have long been aware of the benefits of shared ownership of corporate values by
every member of the organization. By acknowledging that one’s general search for spiritual
growth and fulfillment need not be separate from one’s work, organizations lay the groundwork
for spiritual development to assist in engendering understanding among employees. Companies
that understand workplace spirituality go beyond being supportive of learning and development
by helping employees develop a sense of “calling” or identification of passion about their lives
and their work. Such companies emphasize the discovery and appropriate utilization of
individual giftedness and encourage employees to use their unique skills within the
organization. Grounded religious faith development is recognized as an important and deeply
personal part of growth for many people, one that can help them more easily recognize their
vocations.

Overview of the Field

The Foreign Corrupt Practices Act (FCPA) restricts U.S. firms from engaging in bribery and
other illegal practices internationally. There are laws that have the same type of prohibition for
European companies. These laws create a disadvantage competitively for both European and
U.S. firms. Such laws are not a restricting element to organizations that have highly elevated
ethical behavior as part of their values. Organizations that do not have an outlook for positive
ethical practices as part of their cultures, usually lead to their own demise, such as, Enron and
WorldCom by their questionable accounting practices. The converse is generally true,
organizations that have integrity and encouraging ethical practices as part of their culture are
viewed with respect by their employees, community and corresponding industries. Thereby,
the positive ethical outlook of an organization results in a solid financial bottom-line, because
of greater sales along with their ability to retain and attract new and talented personnel. More
importantly, an ethical organization will have the ability to retain employees that are
experienced and knowledgeable (generally referred to as human capital). This human capital
results in less employee turnover and less time to train new employees, which in turn allows
for greater output of services (or production of goods).

Basic Elements of an Ethical Organization

There are at least four elements which exist in organizations that make ethical behavior
conducive within an organization. The four elements necessary to quantify an organization's
ethics are:

(1) Written code of ethics and standards.

(2) Ethics training to executives, managers and employees.

(3) Availability for advice on ethical situations (i.e, advice lines or offices)

(4) Systems for confidential reporting.

Good leaders strive to create a better and more ethical organization. Restoring an ethical
climate in organization is critical, as it is a key component in solving the many other
organizational development and ethical behavior issues facing the organization.
Intrinsic and Extrinsic
The intrinsic and extrinsic rewards of an ethical organization are tethered to the
organizational culture and business ethics of an organization. Based upon the reliability and
support structure of each of the four areas needed for ethical behavior, then the organizational
ethics will be evident throughout the organization. The organization, the employees and other
entities will receive intrinsic and extrinsic rewards. Actions of employees can range from
whistle blowing (intrinsic) to the extraordinary actions of an hourly employee buying all the
peanut butter (as produced by his employer), because the labels were not centered and he knew
that his employer (extrinsic) would reimburse him in full..

Above and Beyond

Above and beyond is a standard part of the operational and strategic plans for organizations
that have positive organizational ethics. Above and beyond the quarterly or yearly income
statements, an entity will plan for its employees by offering "wellness programs" along with
general health coverage and/or a viable stable retirement plan. Further, an organization will
allow for paid maternity leave, or even paid time off for new parents after an adoption. Other
perks may include, "on-site" childcare, flextime for work hours, employee education
reimbursement and even telecommuting for various days during a week. All the above are just
a few examples of employee benefits that quality organizations offer to their employees. These
benefits are not mandates by law and they represent only a few of benefits that best known
corporations and firms offer to their employees throughout the world.

Leadership and Theory for Ethics in an Organization

There area to include the are many theories and organizational studies that are coarsely
related to "organizational ethics", but "organizations" and "ethics" are wide and varied in
application and scope. These theories and studies can range from individual(s), team(s),
stakeholder, management, leadership, human resources, group(s) interaction(s), as well as, the
psychological framework behind each distribution of job tasks within various types of
organizations. As among these areas, it is the influence of leadership in any organization that
cannot go unexamined, because they must have a clear understanding of the direction of the
organization's vision, goals (to include immediate and long term strategic plans) and values. It
is the leadership that sets the tone for organizational impression management (strategic actions
taken by an organization to create a positive image to both internal and external publics). In
turn, leadership directly influences the organizational symbolism (which reflects the culture,
the language of the members, any meaningful objects, representations and/or how someone
may act or think within an organization). The values and ideals within an organization are
generally center upon "values for business" as the theoretical approach that most leaders select
to present to their "co-members" (which in truth maybe subordinates). In fact, an examination
of business methodology reveals that most leaders approach the ethical theory from the
perspective of values for business. Importantly, as transverse alongside of presenting the vision,
values and goals of the organization, the leadership should infuse a spirit of empowerment to
its members. In particular, leadership using this management style of empowerment for their
sub-ordinates is based upon view of: "Achieving organizational ownership of company values
is a continuous process of communication, discussion and debate throughout all areas of the
organization".

Stakeholder and Other Theories

Whether it is a team, small group, or a large international entity, the ability for any
organization to reason, act rationally and respond ethically is paramount. Leadership must have
the ability to recognize the needs of its members (or called "stakeholders" in some theories or
models), especially, the very basics of a person's desire to belong and fit into the organization.
It is the stakeholder theory that implies that all stakeholders (or individuals) must be treated
equally regardless of the fact that some people will obviously contribute more than others to
an organization. Leadership has to not only place aside each of their individual (or personal)
ambitions (along with any prejudice) in order to present the goals of the organization, but they
have to also have the stakeholders engaged for the benefit of the organization. Further, it is
leadership that has to be able to influence the stakeholders by presenting the strong minority
voice in order to move the organization's members towards ethical behavior. Importantly, the
leadership (or stakeholder management) has to have the desire, will and the skills to ensure that
the other stakeholders' voices are respected within the organization and leadership has to ensure
that those other voices are not expressing views (or needs as in respects to Maslow's Hierarchy
of Needs) that are not shared by the larger majority of the members (or stakeholders).
Therefore, stakeholder management, as well as, any other leadership of organizations have to
take upon themselves the arduous task of ensuring an "ethics system" for their own
management styles, personalities, systems, performances, plans, policies, strategies,
productivity, openness and even risk(s) within their cultures or industries.

Ethical System Implementation and Consideration

The function of developing and the implantation of an "ethics system" is difficult, because
there is no clear, nor any singular decisive way that is able to be presented as a standard across
the board for any organization - as due to each organization's own culture. Also, the
implementation should be done accordingly to the entire areas of operations within the
organization. If it is not implemented pragmatically and with empathic caution for the needs,
desires and personalities (consider the Big Five personality traits) of the stakeholders, or the
culture, then unethical views may be taken by the stakeholders, or even unethical behavior
throughout the organization. Therefore, although, it may require a great deal of time,
stakeholder management should consider the Rational Decision-Making Model for
implementation of various aspects of an ethical system to the stakeholders. If implantation is
done successfully, then all stakeholders (not just the leadership) have accepted the task of
benchmarking not only the implantation of an "ethics system", but each stakeholder feels
empowered for the moment to moment daily decisions that are ethically positive for the
organization. When executed timely and with care, then all stakeholders (including leadership)
will have at the very less a positive and functional success as the basis for continuous
improvement (or kaizen) to present as the norm for its organizational ethics.
References
 Wikipedia.org
 Aboutleaders.com
 Entrepreneurship.org