VALUES & ETHICS

UNIT - 1

VALUES

• Values are beliefs or convictions that guide an individual and explain him what is Wright and wrong.
• MILTON ROCKEACH – “There are beliefs that guide action and judgment across a Variety of situation.
• Therefore values are :-

1.) Common standard of behavior.

2.) Set of principles, cherished by people.

3.) Internal worth or goodness.

4.) They are social and ethical norms defined by cultures, societies and religious.

WHAT ARE VALUES COMPOSED OF?

VALUES

• Content Attributes – What the values are all about.

• Intensity Attributes – How much weight age can be given to those values.

FEATURES & CHARACTERISTICS OF VALUES

1.) Values provide standard of morality.

2.) Values are manifested (reflected) in thoughts, speech & actions of people.
3.) Values are inherent in all the cultures & in all the societies.
4.) Values are strong beliefs which act as guidelines for human conduct across variety of situations.
5.) Values are dynamic & may change culture to culture & time to time ( core values are rigid & don’t
change frequently, & secondary values are flexible & can change frequently).
6.) Values are consernt mainly with internal development of individuals as they aim at purifying mind &
soul.
7.) Values contain a judge mental elements ( helps in taking decisions).
8.) Hierarchy of values lead to formation of values system.

TYPES OF VALUES

CATEGORY -1 (By Graves)

1.) REACTIVE – Such an individual reacts to basic physiological, he is unaware of him self & others.

2.) TRIBALISTIC – They strongly influenced by tradition & the power of authority figure. They have a high degree of
dependence & want strong directive leadership.

3.) EGO – CENTRISM – They are selfish, always wish to satisfy their ego, usually aggressive, respond to power,
desire individual responsibility & love to work alone in an entrepreneurial style.

4.) CONFORMITY – They desire that other must accept their values, they have low tolerance for ambiguity, they
find difficulty in accepting people with varying ( divergent) values.

5.) MANIPULATIVE – These individuals try hard some, how to accomplish the goals by manipulating things &
people, they are materialistic, actively seek status, recognition.

6.) SOCIO – CENTRIC – They desired to be liked & loved by others, believe in happy social relationships, dislike
manipulation & can compromise on their value system to create their own social place.

7.) EXISTENTIAL – These are very out spoken, seek full expression of growth, self fulfillment of needs, they have
high taularence for ambiguity & for people with divergent values.

CATEGORY – 2 ( By Milton Rokeach)

1.) TERMINAL VALUES – The ultimate goals or aims of a person in life. These may include: comfortable life,
success, social recognition, freedom of thought & expression, etc.

2.) INSTRUMENTAL VALUES – It relates to the means for achieving the desired outcome or end results. In other
words, it’s a tool to attain a terminal values in life.

A combination of terminal & instrumental values form the total value system of an individual. To attain a
comfortable life (Terminal Values) one has to be hardworking & ambitious.

Similarly, to gain self respect in the later stage of life (Terminal Values), one has to be polite & courteous towards
others in the current stages of life.

TERMINAL VALUES v/s INSTRUMENTAL VALUES

TERMINAL VALUES INSTRUMENTAL VALUES

They are the end goals, an individual desires to achieve. They are those values an individual needs to follow to
attain terminal values.

They are the outcomes of instrumental values. They are the cause / reason for terminal values.

They are futuristic. They are more related to current state to affairs.

For example – comfortable life, success, social For example – if we have to attain comfortable life
recognition, freedom of thought & expression, etc. ahead, then one has to hardworking & ambitious in
early stage of his life.

CATEGORY – 3 ( By G.W. Allport, P.E. Vernon, G. Lindzey)

1.) THEORETICAL VALUES – Such people are interested in discovering of truth through reasoning & systematic
analysis of theories existing in different sources.

2.) ECONOMIC VALUES – Interested in practicality & focus mainly on accumulation of wealth.

3.) AESTHETIC VALUES – Interested in praising beauty & believe in artistic harmony.

4.) SOCIAL VALUES – Interested in people & human relationships governed by a strong element of love and
affection.

5.) POLITICAL VALUES – They reflect an interest in gaining of power & influencing others.

6.) RELIGIOUS VALUES – Interested in unity & understanding other religious & their teachings considering the
whole universe as one’s family. (“ VASUDHAIVA KUTUMBAKAM”)

FORMATION OF VALUES

Values formation is not a day’s process, it takes years to establish value system in society.

In our early childhood, our immediate family including our grandparents, parents & siblings helps us in shaping our
values system. When we grow, our values are exposed to variations because of the environment surrounding us.
To understand the formation of values we can always refer to Schein’s Model of value & culture formation
including 3 following elements:-
1.) Vague but strong Assumptions.

2.) Reinforced to become Beliefs.

3.) Visible prevalent as Artifacts.

The following steps are involved in creation & development of a value system in any institution:-

1.) ALTERNATIVE VALUES FORMATION – On the basis of the dreams, philosophy & vision of the founder, a cluster
of values is generated. These also have the combined impact of workers, employees, CEO’s, top managers, etc.

2.) VALUE SELECTION / CHOICE – The value alternatives created in the previous step, are analyzed & evaluated on
the basis of the purpose of the organization, vision & mission of the organization out of several alternatives, the
top rated & most suitable values are selected.

3.) VALUE ADOPTION – The values finally selected are to be adopted by the members of the organization. This
process of adoption is difficult & requires a lot of preparation at all levels.

4.) VALUE INSTITUTIONALIZATION – The values created & adopted are deeply institutionalized & are reflected in
the conduct of employees, ceremonies & artifacts of the company.

5.) VALUE MODIFICATION – After analyzing the benefits of the values implemented, the necessary modifications
are made if required based on the environmental factors & needs of the organization.

SOURCES OF VALUES

1.) VALUE FORMING INSTITUTIONS – Family, school, religion, geographical state or area; all these basic institutions
give us the ground or core values of life.

2.) SOCIAL FACTORS – The social circle of an individual at personal & professional fronts or levels including friends,
colleagues, neighbourers, etc.

3.) WORK & CAREER – These are the sources which give you, values on professional fronts & are related to the task
& responsibilities at work only. These include team spirit, honesty, dedication, emotional stability, fair dealing, etc.

4.) ORGANIZATIONAL FACTORS – Organizational culture, vision & mission of the owner, the structure of
relationships are the sources of this category.

5.) CULTURAL FACTORS – These include beliefs & patterns of behavior being taught by a specific culture or sub
culture an individual belongs to.

6.) PROFESSIONAL CODES – Professional bodies like AIMA, ICAI, IMA, Bar Council of India; frame a specific code of
conduct for professionals.
7.) SITUATIONAL FACTORS – People often change their values according to their needs of their situation.

VALUES OF INDIAN MANAGERS v/s WESTERN MANAGERS

GENERAL VALUES OF INDIAN MANAGERS

• Indian business & business styles are blessed with some positive inbuilt values which are its strengths. On
the same hand, there are some negative values seen in the Indian business scenario.

• According to the findings of the researcher, the following values are mainly dominating the value system
of Indian managers:-

POSITIVE NEGATIVE

Hardworking Selfish

Work is worship, emotional attachment Reluctant to change.

with work & its rewards. (SAKAM karma)

Ambitious Reactive rather than being proactive.

Give importance to social relations at work. Less pragmatic.

Respect for seniors. Laid back & lazy.

Greedy of powers & tendency to miss use

it.

Groupism & favoritism (biasedness).

• According to S.K. Chakraboraty “ The values of Indians are incurred in the trans- dental aspect of human
existence. He has suggested the following values which are more significant to the Indian socio- cultural
systems that are :-

1.) Respect for individuals.

 2.) Co- operation & interest.

3.) Greed

4.) Purification of mind.

5.) Work as worship.

6.) Ethical moral boundaries.

7.) Need to give.

• Some of the other research studies have identified the following set of values of Indian managers that are
:-

1.) In terms of works, Indian managers have been found to be money oriented during early days of career & later
shift to values like status & job satisfaction. Also they give high importance to obedience, loyalty & follow rules
strictly.

2.) Indian managers always crave for freedom from supervision. They are social & status oriented. They love to
exercise leadership over others & always dream of making good deal of money for a stable & secure future.

3.) Indian managers accept to implement unethical practices in form of bribes, gifts, personal favors, dishonesty in
customer dealings & unfair comparative practices.

• Ideal set of values for Indian managers:- With rapid transformation of Indian business, our values & ethics
are loosing their importance. These are deteriorating year after year from one generation to another.

Ideally, today the managers must follow the following values:-

1.) DEVELOP RIGHT ATTITUDE TOWARDS WORK – Indian managers must have to develop a visionary approach in
its work. They have to develop a sense of larger vision in their work for the common goods.

2.) OPTIMUM UTILIZATION OF RESOURCES – The first lesson in management science is to choose wisely & utilize
optimally the scarce resources to succeed in business.

3.) WORK COMMITMENT – Managers have to work with dedication & try focusing on work & its quality rather
than its results & rewards. For this, Lord Krishna rightly taught Arjuna about NISHKAM KARMA as the right attitude
towards work with main focus on commitment & dedication as major ingredients. (work as a Karma Yogi)

4.) PERSUE ETHICO- MORAL RIGHTEOUSNESS – Managers should conduct themselves an ethical & moral grounds
while doing business. This attitude should be manifested in their behavior with customers, outsiders & all other
stakeholders.
5.) DEVELOP LONG TERM VISION, WHICH IS PRACTICAL & DYNAMIC – They should try accomplishing the vision
through proper planning & strategy making. They should also strive to:-

➢ Aim at team building & teamwork.

➢ Effective communication, dedication & motivation.

➢ Cultivate art of leadership.

➢ Review performance continuously & take corrective actions whenever necessary.

Apart from these points the management guru’s like Lord Krishna, Swami Vivekananda, Peter Drucker, etc. the
Indian managers should develop & adopt the values like:-

1.) Move from the state of inertia to the state of righteous

action.
2.) Move from the state of faithlessness to the state of faith
& self confidence.
3.) Move from unethical actions to ethical actions.
4.) Move from self centeredness to a situation where you
are benefitting the society at large.
5.) Move from untruth to truth.
6.) No door of good ever ends in misery.
7.) Take the best from the western models of dynamisms &
excellence & tune them to Indian conditions.

VALUES OF WESTERN MANAGERS ( A comparison with the Indian managerial values.)

• The managers of the western countries are highly professional as is reflected by the following values they
possesses:-

➢ They are punctual & respect the value of others’ time.

 ➢ They follow a proper code of conduct in a formally structured atmosphere.

➢ They aim at professional efficiency & work discipline.

➢ They give priority to principles.

➢ They consider rules as convictions in their values system.

➢ In the west, managers do not let their personal relationships interfere their professional dealings.

➢ Dignity of labor is an important work value in the west.

➢ Managers in the west understand their responsibility towards society.

➢ Accountability of work is very important as a value for western managers.

• T.J. Peter & R. H. Waterman in their books “ In search of excellence” gave the following list of values of
Americans:-

➢ A belief in being the best.

➢ A belief in the importance of people as individuals.

➢ A belief in the importance of details of execution.

➢ A belief in superior quality & service.

➢ A belief in being an innovator.

➢ A belief that informal communication is important.

➢ A belief that economic growth & profits are very important.

VALUES INDIAN MANAGERS WESTERN

MANAGERS
Respect for time Low respect for High respect for
other’s time, low other’s time, high
 punctuality, deadlines level of punctuality,
are infrequently met. deadlines are usually
met.
Professionalism low High

Discipline Poor Good

Respect for rules & Its is binding, so, low Rules are essential,
regulations respect. so, high respect.
Accountability Low High

Dignity of labor Low High

Loyalty towards High Low

organization

CONCLUSION:-

If we compare the managers in India with those in the West, we find out that Indians are more oriented towards
personal relationships & emotional boundings even at work, while the western managers are more professional &
pragmatic.

EROSION & DETERIORATION OF INDIAN WORK VALUES

• In the present time their is a breakdown of Indian values which has resulted in a negative a rigid outlook of
Indian managers. The greed of maximizing profit is deviating the value based managers from the right
part.
 • There is a short term orientation, lack of good leaderships & blind greed of profits which is rapidly eroding
the Indian work values.

• The top management has a myopic view of their business & aims at short term profit earning only.

• There is a widespread discrimination in the distribution of salary & wages.

• There is an increasing tendency to cheat the customers & the interpersonal relations are based on
mistrust.

• Investors & shareholders are not given the right information.

As a result, all these unethical trends, the teachings of Indian Vedanta are completely getting damaged.

MEASURES TO IMPROVE INDIAN WORK VALUE SYSTEM

• Strong & effective leadership.

• Concern for everyone.
• Commitment to work.
• Excellence.
• Vision of righteousness.

Q:- Moral Righteousness v/s Targets

ETHICAL DECISION MAKING / HOLISTIC DECISION MAKING

• It is also know as holistic approach to decision making under which the corporate members work together
for the benefit of all.

• It is the process that follows the philosophy of “ VASUDHAIVA KUTUMBAKAM” considering the whole
world & society as a single family & managers takes decisions for the benefits of all.

• Ethical decision making involves dealing with ethical issues at all the stages of decision making,
implementing the “PLUS” approach.

• PLUS stands for:-

P – Policies, laid down by top management.

L – Legal or law, conformity to laws of society.

U – Universal, should follow universal principals of goodness.

S – Self, does the decision satisfy, the manager’s personal definition of right, good or fair.

• The PLUS approach assumes effective communication with all the employees to develop a common
understanding of all the acceptable values, policies & standards.

PROCESS OF ETHICAL DECISION MAKING (using / involving the plus approach)

1.) Defining the problem ( PLUS surface the ethical issues) – At the very first stage, the manager must define not
merely the problem but also the hidden ethical issues involved in it. Keeping all the PLUS considerations in mind.

2.) Identify alternative solutions (consider PLUS elements) – In this stage, all the decision makers find out all the
possible alternative solutions to the given problem with the help of top management, experts & his own past
experiences.

3.) Evaluate each available alternative ( PLUS assess their ethical impact) – In this stage, it is required for the
decision makers to judge all the alternatives on grounds of PLUS parameters.

4.) Make a final choice & implement the decision – The alternative solution which is closest to PLUS parameters
known to the managers after through judgment should be finally chosen & implement in the ethical way.

5.) Evaluate the decision & follow up ( PLUS tries to find out any new ethical issue arising) – All the people concern
must be giving an unbiased & value- laden feedback, so that the decision not only benefits everyone involved but
also follows an ethical path.
BUSINESS ETHICS

• Ethics comes from the Greek word “ETHOS” which means character, ideals or standards that are
applicable to a group, community or peoples in general.

• Ethics are those moral principals that teach us what ought to be or what not ought to be. They specify
what is good or bad, fair & unfair & right or wrong.

• In words of Dale S. Beach “ Ethics refers to a set of moral principals playing a significant role in guiding the
conduct of managers & employees in the operation of any enterprise”.

CONCEPT OF BUSINESS ETHICS

• It refers to a body of moral principals & values which should govern the business activities & corporate
decision making.

• For example:- ethics may teach managers to charge fair prices for the customers, give equitable treatment
to all the employees, pay right amount of tax to the government, etc.

• In short, ethics may teach the business to fulfill its ethico- moral responsibilities towards society &
stakeholders.

FEATURES OF BUSINESS ETHICS

• Business ethics is an umbrella term that covers a wide range of business activities.

• Business ethics is different from law & challenges it to lay down perfect rules for human & business
conduct.

• Ethics is pervasive.

• Ethics may change or vary from one society to another.

• Ethics creates self imposed discipline on business & managers.

• Ethics does not rest on the feelings of approval or dis- approval of anyone, rather it reflects the real truth.

• Business ethics aims at fair & reasonable treatment for all.

5 ‘P’ PRINCIPLES OF BUSINESS ETHICS

1.) PURPOSE – Represents the mission of the organization.

2.) PRIDE – A feeling of being proud of ourselves & our work & organization we are working with.

3.) PATIENCE – A belief that patiently follow your values, will lead you to success.

4.) PERSISTENCE – Commitment to line by ethical principal on a constant basis.

5.) PERSPECTIVE – Check & monitor where you are, evaluate where you are going & decide wisely how to get to
the desired future.

ETHICAL ISSUES IN BUSINESS

ETHICAL ISSUES UNETHICAL ISSUES

Fair dealings with customers. Cheating the customers.

Avoid unfair business practices Creating artificial scarcity of

like hoarding & black marketing. commodities to hike the prices.
Presenting right & true facts in Manipulating reports & playing
reports. with the figures.
Unbiased treatment for all. Offering or accepting bribes,
personal favors or gifts in
exchange of undue favors.
Avoid use of company assets for Using company assets & services
personal use. for personal use.
Giving due credit to others for Claiming credit for someone
their work. else’s work.
Charging right prices for the Over charging the customers for
customers for the right quality & making undue profits.
quantity of goods.

GENERAL PRINCIPALS OF BUSINESS ETHICS

• In an empirical study the institute of business ethics has suggested the following principals for
organizations :-

➢ Be respectful.

➢ Be trustful.

➢ Keep an open mind.

➢ Serve the community.

➢ Meet obligations.

➢ Have clear documents.

RELEVANCE & IMPORTANCE OF BUSINESS ETHICS

• The relevance of business ethics has been justified because of the following reasons :-

1.) ENVIRONMENTAL PRESSURE – As a part of overall economic system a business is forced by various economic
elements to behave & conduct itself ethically.

2.) TRADE UNIONS, GOVERNMENT & SOCIETY – Are major elements forcing a business to follow a desirable code
of ethics.

3.) ENLIGHTENED SELF INTEREST – Today’s business men have got the understanding that to survive in the long
run & sustain its goodwill it has to follow ethical practices.

4.) CONSCIOUS CUSTOMERS & EDUCATED SOCIETY – There is an awakening & mass awareness amongst the
customers & society about their rights & duties. As a result the business has to be ethical.

5.) MORAL CONSCIOUSNESS – Modern business houses are morally aware of the fact that they are responsible
towards society benefits & that good code of conduct is good citizenship.

6.) GOVERNMENT INTERVENTION – Unethical business firms invite severe government interference by way of laws
& regulations established by it.

PURPOSE / IMPORTANCE OF ETHICS & VALUES IN BUSINESS

 • It protects the interest of customer thereby, earning sustained loyalty from them.

• It promotes healthy & fair competition amongst the firms in the same industry. This lead to harmonious
industry relations.

• Following ethics & values protects the interest of investors. This will further attract more investors in
future.

• Ethics lays down a strong foundation for an overall prospering business society where all the stakeholders
enjoy benefits.

• Following ethics & values lead to creation of goodwill & sustained positive public image.

• They promote employment ethics resulting in fairness in hiring of people, promoting employees &
remunerating employees.

• Ethics & ethical conduct brings everlasting government support for the business.

• Ethics & values check the probability of frauds & criminal acts in business.

• They offer other benefits like good external relationships, respect for business & least government
interference.

ETHOS OF VEDANTA IN MANAGEMENT

CONCEPT

• Ethos is the Greek word which means personality, character & reputation. It has more to do with public
image.

• The oxford dictionary defines ethos as the spirit & beliefs of community & people & the way they react to
situations & problems of life.

• It refers to habitual character of a group or a community.

FEATURES OF INDIAN ETHOS

• Indian ethos are deep & unseen foundations supporting the structure of India. They promote a holistic
approach towards life that connects the worldly presence of an organism with the spiritual element. The
important features are as follows:-

1.) ‘ Individual is the focal, nucleus point’. Each individual is so powerful that everything revolves around them only
( positive & negative energy).
2.) Indian ethos emphasis on duties & responsibilities & not rights & privileges of an individual.

3.) ‘ Balance is the key note of Indian ethos’. Balance between materialism & spiritualism.

4.) Indian ethos prescribes values which are based on wisdom & character.

5.) According to Indian ethos ‘Dharma’ should be followed in every aspect of life & in the process of attaining the
goals in life.

6.) In an economic system governed by Indian traditional ethos, universal humanism must be followed for creating
& distributing ‘Artha’ (wealth) for common welfare.

BASIC PRINCIPLES OF INDIAN ETHOS

• Indian ethos are famous worldwide & are practiced by different managers to find out the most relevant
business solutions to a variety of problems.

• Indian ethos are based on the teachings of deep rooted Indian scriptures including the 4 Vedas, the
Upanishads, the Puravas & the holy books like the Gita.

• The following points explain unique principles of Indian ethos are:-

1.) ‘ Each soul is potentially divine’

“ Aham Brahmasmi, Tat Tvam Asi”

• The divinity of a human being should be respect because each soul has immense power to produce extra
ordinary result. Therefore, every manager must try to explore the infinite potential of self & of others.

• According to this principle it is believed : ‘ Aham Brahmasmi’ ( I have immense potential & I can turn the
impossible into possible.) & ‘ Tat Tvam Asi’ ( You are also supreme & you can make impossible, possible
too.)

2.) ‘ Holistic Management’

“ Atmano Mokshaya, Jagat Hitaye”

 “ OM” (AUM)

• Holistic view of ethics looks at the things in totality. Holistic principle demands a broader business view
arriving at the development of self & of others. In this direction it is said to follow “ Atmano Mokshaya,
Jagat Hitaye” ( For one’s own welfare & for the good of humanity.)

• Holistic management of Indian ethos also suggest believing in the power of “ OM” (AUM) whose sound is
the symbol of completeness.

• OM = BRAHMA + VISHNU + MAHESHA

3.) ‘ Principal of Cooperation V/S Competition’

“ Lok Sangrana & Nishkam Karma”

• According to Swami Vivekananda, “ Competitions are only momentary & unnecessary efforts, even when
all competition has vanished, this perfect nature behind will make you go forward”.

• So, competition is not necessary to progress, rather the principal of cooperation should be followed to
manage our ego.

• To attain egoless cooperation one must follow the principal of “ Lok Sangrana & Nishkam Karma”.

4.) ‘ Combining Subjective & Objective’

• Indian ethos prescribe to maintain a balance between both subjective & objective resources. Subjective
resources include ethical values & qualities like truth, purity, vision, etc which are related to our heart &
soul, & objective resources include values like money, wealth, materialism, etc.

• The lesson is to combine both of these sets for total development.

5.) ‘ Karma Yoga’

• The word ‘ Karma’ is derived from the Sanskrit word ‘Kri’, which means to do. All actions is ‘ Karma’ & it is
the ‘ Yoga’ of work which should be followed by Indian managers.

• One scriptures suggested that we should not work for desire alone, rather we should try to attain the
ultimate reality that’s ‘ Moksha’.

6.) ‘ Excellence of Work’

 • According to Indian ethos, “ Yoga Karmasu Kaushalam” that is concentration, dedication & meditation in
work will automatically bring excellence & expertise in your work.

SOURCES OF INDIAN ETHOS

I.) THE BHAGVAD GITA

• Bhagvad Gita has been an important source of knowledge & guidance for all communities. The lessons
from this holy book help the managers in the field of decision making, taking charge of our life, making a
right choice & self empowerment.

• The teachings of Gita which are relevant for the managers which are as follows :-

➢ Utilization of resources – Bhagvad Gita teaches managers about selecting & making the best use of
resources & that it’s the quality & not the quantity that matters.

➢ Attitude towards work – The Bhagvad Gita tells us about developing a visionary perspective in the work
we do. It tells us to develop strong commitment & truthfulness towards our work.

➢ Non attachments to the fruits of work – The Bhagvad Gita advices non attachments to fruits or results of
the actions performed on the parts of one’s duty. For this it emphasis the concept of ‘ Nish Kam Karma’ as
a right attitude towards work.

According to Lord Krishna, “ The work done with anticipation of results leads to anxieties, stress & agitation”.

➢ Cause & effect – This holy book focuses on the theory of cause & effect. According to which the doors of
the work is himself responsible for the consequences of his deeds. Apart from detaching yourself from the
expectation of fruits, an individual must remain accountable for his own work.

5 C’s OF BHAGVAD GITA

1.) CAPITAL – It simply means money, wealth & resources which should be used in an optimum combination for
personal & societal welfare.

The Bhagvad Gita teaches ‘ Nothing is lost in following one’s Dharma …….’ that is, you did not bring anything to
this world & you did not take anything when you die. So, just follow your Dharma, to attain the objective of your
life.
2.) CAPABILITIES – In simple words capability is the ability or skills of anyone to be competitive, to earn profits or
to establish strategies. The Bhagvad Gita says in this context that, “ The wise see action in the middle of inaction”.
That is the managers should be concious of their capability of locating possibility in something called impossible &
righteousness in the middle f something wrong.

It also refers to the capability of the managers of controlling the will. The Bhagvad Gita says, “ Reshape yourself to
the power of your will, never let yourself, be regarded by your self will”. This means your will is the only friend of
your self & is the only enemy of yourself

3.) CONNECTIONS – In simple words, connections refers to the physical links & personal networks, they are
important for analyzing the feedback of your actions. According to Bhagvad Gita, “ A manager or individual has to
connect himself with the supreme truth through ‘ Sadhana’.

In this direction it has recommended to follow ‘ OM TAT SAT’ in which OM is the road map or Sadhna that purifies
the mind & soul & connects the reality around us (TAT) with the supreme reality or truth (SAT). Truth & faith are
the basis of all works & work without faith means nothing & leads to nowhere.

4.) COMMUNICATION – It means providing right information to the right person & is the process through which
interconnectivities are maintained. Bhagvad Gita considers communication as ‘ Giving ……’ without thought of
return at proper time, in proper circumstances & to a worthy is ‘Sattvic’ giving.

Giving with regrets or in expectation of receiving some favor in returns in ‘Rajasic’.

Giving at an inappropriate time without affection & love to an unworthy person is ‘ Tamasic’.

5.) COMMITMENT – In general it means a promise of managers & owners to bring success to the business. The
Bhagvad Gita says …. “ For a man of honor, dis- honor is worse than death”. That is if a person has a self respect &
integrity, fails in a venture due to lack of commitment, his condition becomes miserable due to non performance.

II.) THE RAMAYANA

• Ramayana is a Hindu epic, set in the ‘Tretayug’. It is a table of good v/s evil & is concerned with right
actions & their consequences. Today, several companies & organizations are taking lessons from
Ramayana in context of effective leadership, good governance & welfare of the society. Many important
principles of management, Kaizen, Quality Circle, MBO, etc. have originated from the Ramayana only.

• Important lessons from this epic are divided into 2 parts that are :-
A.) LESSONS FOR LEADERS

• Ramayana clearly gave 4 fundamental characteristics of a leader these includes :-

1.) Character ( integrity & strength of character)

2.) Courage ( facing difficult time & taking difficult decisions )

3.) Compassion ( love for others)

4.) Valour ( courage to stand by your decisions)

• All these 4 characteristics are clearly reflected in Lord Ram as the leader. He was known to be having
strength, energy & passion & ability to discriminate between right & wrong.

B.) LESSONS FOR INDIVIDUALS TO LIVE A LIFE

• These includes the following virtues:-

1.) FORGIVENESS – Everyone should have a large heart to accept the mistakes of other & move on.

2.) COMPASSION – An individual should have love towards others & should be capable of touching the heart
through one’s compassion attitude.

3.) CONSISTANCY – All should have a firmness & consistency in action & decision making. Everyone should
maintain a strong mental proporsure to deal with the difficulties of life.

4.) EQUANIMITY – Their should be balanced to be maintained to remain calm in the good times as well as the bad
times.

• According to Ramayana in the battle field the horses & the wheels of the chariots should be strategically
used as weapons by a warriors. Similarly, the tools of forgiveness, courage, compassion, consistency, etc
are the weapons of a leader to win the battle of the business competition.

III.) THE MAHABHARATA

• It talks about 4 types of dealings with people these includes:-

➢ SAAM – Treating

➢ DAAM – Rewarding

➢ DAND – Punishment

➢ BHED – Discrimination
 • A manager has to rationally & intelligently use these methods in dealing with people. This epic gives the
following lessons for the modern days managers that are :-

1.) All managers should try to convert their weaknesses into strengths to compete in the market.

2.) Managers should engage in a fair game play rather than engaging in cut throught competition.

3.) Managers should make powerful relationships with the outside world to grow in their competitive global
market.

4.) Managers should share their responsibility rather than doing all the jobs entirely by themselves.

5.) The managers should focus on the team spirit, according to which all the functional areas & the people
involved should be treated as a team to create synergy & attain organizational goals effectively.

6.) In every organization there should be a complete subordination of individual goals with the organizational
goals.

7.) Managers should develop a sense of sharing & caring irrespective of class, background, religion, etc. everyone
should be treated equally without the element of biasedness.

IV.) THE VEDAS & UPANISHADS

The Vedas:-

The modern management is increasingly adopting several Vedic concepts to succeed. According to the Vedanta,
the managers should determine their goals, identify their capability & focus their actions upon goals.

The Upanishads :-

• They are section of knowledge that deal with different kinds of spiritual discussions. They are major texts
having in-depth coverage of various aspects of life such as :-

➢ DHARMA – ( Duty with righteousness)

➢ ARTHA – ( Wealth generation & money)

➢ KAMNA – ( Desires of all sorts)

➢ MOKSHA – ( Realization)

• The Upanishads mainly talk about the following 5 teachings that are :-

➢ Work is worship.

➢ Helping others.
 ➢ Entire universe is one family.

➢ Nishkam karma; that is its our duty to act but not the right to claim fruits from it.

➢ Self motivation & self development leads to excellence of work.

MANAGEMENT PROCESS AND ETHICS

In simple words, management is the process of getting the things done through others in a formally organized
groups of people working together to attain some pre- determined goals effectively & efficiently.

ETHICS IN MANAGEMENT

The science of ethics can be applied by a manager while performing all of his functions & roles in managing the
organization. Ethics can be used to teach the business managers the importance of ethical decisions & actions to
achieve the objectives of the enterprise. Therefore there is a deep connection between all the managerial
functions & ethics.

MANAGERIAL GENERAL MEANING ETHICAL MEANING

FUNCTIONS
1.) Planning Process of laying down Deciding & finalizing the
course of action to ethical goals meant to
reach to a future benefit all stakeholders,
desired state. choosing an ethical / right
path of action to attain
goals.

2.) Organizing Process of identifying, The structure of

grouping & dividing relationships should be
work, jobs & activities, based on ethical
establishing a structure principals of
of relationships with TRANSPARENCY, VALUES,
clear authority, EQUANIMITY in
responsibility & distributing authority &
accountability. defining rules from top to
(Hierarchy) bottom. There should be
transparent & unbiased
flow of communication.
3.) Staffing Process of hiring right Staffing functions should
people for right jobs at have objective
right time. Involves parameters of employee
recruitment, selection, selection &
training & remuneration, should not
development, be based on favoritism,
performance appraisal, the HR department must
remuneration & be responsible for
retention of human creating an ethical &
resources. value base culture by
giving relevant & suitable
training to people. There
should be justified
remuneration & reward
system prevailing in the
organization.
4.) Directing It is a broad function of Ethical managers should
managers that have to follow strict
involves:- motivation, principles of
leadership, supervision transparency,
& communication with righteousness, objectivity
subordinates. while dealing with their
subordinates & lending
them support in the
direction of ethical goal
attainment.

5.) Controlling It refers to comparing The ethical managers

the actual performance must always aim at
with the standards to setting, clear, unbiased &
local deviations in transparent performance
performance & take standard & must not
necessary corrective involve themselves in the
actions. fraudulent activity, such
as favoritism, hiding the
facts or misrepresenting
the figures.
CONCLUSION:-

• Managerial performance & functions co- exit with ethics in an ideal situation. They must be considered as
inseparable twins for every manager.

• To attain the results & goals the managerial actions must be directly or indirectly influenced by values &
ethics .

• Ethics must have an impact on the following elements related to managerial performance & functions are
:-

➢ Decision making.

➢ Establishing organizational culture.

➢ Laying down goals finding solutions to problems & disturbances.

➢ Doing general actions & performing routine functions.

VALUES & IMPACT ON MANAGERIAL BEHAVIOUR

• Values remain embedded in our minds since our childhood. As children we learn about what is good or
bad, right or wrong by our parents, educational institutions & social groups. These values become a part of
our behaviour & personality when we grow up & transmit to future generations. Similarly in the business
world every employee & his values impact & shape the culture of the organization. In the same manner
organizational culture & value system influence the attitudes, perceptions & motives of the employees
working in it.

IMPACT OF VALUES ON DIFFERENT BEHAVIOURAL ASPECTS OF MANAGERS

• Values are reflected in all the functions & tasks performed by managers. They influence decisions to be
taken by managers in different situations. Values have an impact on the following areas of a manager that
are :-

1.) Decision making process.

2.) Managerial functions of planning, organizing, staffing, directing & controlling.

3.) The perceptions of a manager about situation he faces.

4.) The conduct of a manager with his colleagues, seniors & subordinates.

5.) The way in which a manager interacts with the individuals outside the firm like customers, government, etc.
6.) The way a manager offers solutions to problems.

7.) The manner in which the managers implement vision & mission.

8.) Making rules & regulations.

CONCLUSION:-

Therefore, we can conclude that the aggregate of all the values of manager in an organization has a significant
impact on their behaviour which intern affect the present & future functioning of the organization.
EXTERNAL AGENCIES GOVERNMENT

EMPLOYEES VISION &

MISSION

VALUE SYSTEM BEHAVIOU

SUPPLI
OF R OF
ERS
MANAGERS MANAGER
S

INTERNAL POLICIES &

ENTITIES STRATEGIES

EXTERNAL ENTITIES CUSTOMERS

VALUES v/s ETHICS

VALUES ETHICS

They are beliefs that a person They are code of conduct that
holds about things & aspects of decide what is wrong & what is
life. right in a particular circumstance.
These are more personal. These are more societal.

These are based on an individual’s These are mainly based on

family or his own understanding obligation, virtues & right aspect.
of right & wrong.
They describe what is important They prescribe what is or is not
in a person’s life. considered appropriate &
desirable.
They may form a part of ethics. It is an independent science to
implement with righteousness
only.