Organizational Behavior: Justice & Ethics PDF

ORGANIZATIONAL BEHAVIOR Justice & Ethics L. Jeff Seaton, PhD. Murray State University Organizational Justice - the perception of individuals in an organization regarding fairness. Four types of organizational justice: Distributive Justice...

ORGANIZATIONAL BEHAVIOR Justice & Ethics L. Jeff Seaton, PhD. Murray State University Organizational Justice - the perception of individuals in an organization regarding fairness. Four types of organizational justice: Distributive Justice Procedural Justice Interpersonal Justice Informational Justice SLIDE # 1  ORGANIZATIONAL JUSTICE Distributive Justice – individual’s perceptions of the fairness of the outcomes of a decision. Procedural Justice– individual’s perceptions of the fairness of the procedures used to make a decision. Interpersonal Justice - individual’s perceptions of the degree of fairness in how they are being treated by others in the organization. SLIDE # 2 Informational Justice - individual’s perceptions of the  The Nature of Ethics Ethics – The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the “right” or appropriate way to behave. SLIDE #3  Causes of Rational Differences Levels of Moral Development: 1. Pre-conventional Self-interest motivates behavior to meet ones’ own needs to gain rewards while following rules and being obedient to authority to avoid punishment. “I lie to customers to sell more products and get higher commission checks.” 2. Conventional Living up to expectations of acceptable behavior defined by others; motivates behavior to fulfill duties and obligations. It is common for followers to copy the behavior of their leaders and group. “If the group lies, cheats, steals when dealing with the customers, then the individual will also do so, however, if these behaviors are not done or accepted by the group, then the individual will not do them either. 3. Post-conventional Behavior is motivated by universal principles of right and wrong, regardless of the expectations of the leader or group. One seeks to balance the concerns for self with those of others and the common good. Will follow ethical principles even if they violate the law, cause social rejection, economic loss or physical punishment. “I believe deception or lying is wrong in any form, therefore, even though I am a salesman for this company, I will not say things I don’t believe in order to sell the company’s product.” Slide #4  Sources of Ethics SLIDE #5  Societal Ethics Societal Ethics – Standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual People behave ethically because they have internalized certain values, beliefs, and norms SLIDE #6  Occupational Ethics Occupational Ethics – Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities – Medical & legal ethics SLIDE #7  Organizational Ethics Organizational Ethics – Guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders – Top managers play a crucial role in determining a company’s ethics SLIDE #8  Individual Ethics Individual Ethics – Personal standards and values that determine how people view their responsibilities to other people and groups – How they should act in situations when their own self-interests are at stake SLIDE #9  Trust and Reputation Trust willingness of one person or group to have faith or confidence in the goodwill of another Reputation person esteem or high repute that individuals or organizations gain when they behave SLIDE #10 ethically  Types of Company Stakeholders SLIDE #11  Managers Responsible for using a company’s financial capital and human resources to increase its performance Are held accountable by the stockholders for providing a good return or reward by investing their human capital to improve a company’s performance Must act and lead in an ethical manner Frequently juggle multiple interests and must resist acting in his own best interests rather than those of the principal. (Agency Theory) SLIDE #12  Ethics Ombudsman Responsible for communicating ethical standards to all employees Designing systems to monitor employees conformity to those standards Teaching managers and employees at all levels of the organization how to appropriately respond to ethical dilemmas SLIDE #13  Social Responsibility Social Responsibility – Way a company views its duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole SLIDE #14  Approaches to Social Responsibility SLIDE #15  Approaches to Social Responsibility Obstructionist approach – Companies choose not to behave in a social responsible way and behave unethically and illegality SLIDE #16  Approaches to Social Responsibility Defensive approach – Companies and managers stay within the law and abide strictly with legal requirements but make no attempt to exercise social responsibility beyond that level. SLIDE #17  Approaches to Social Responsibility Accommodative approach – Companies behave legally and ethically and try to balance the interests of different stakeholders against one another so that the claims of stockholders are seen in relation to the claims of other stakeholders SLIDE #18  Approaches to Social Responsibility Proactive approach – Companies actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and utilizing organizational resources to promote the interests of all stakeholders SLIDE #19  Why Be Socially Responsible? 1. Demonstrating its social responsibility helps a company build a good reputation 2. If all companies in a society act socially, the quality of life as a whole increases SLIDE #20  The Nature of Ethics Ethical Dilemma – A quandary people find themselves in when they have to decide if they should act in one way or another. – There are no absolute or indisputable rules or principles that can be developed to decide if an action is ethical or unethical Other’s Interest vs. Self Interest One Person or Group vs. Another Person or Group SLIDE #21  Ethical Decision Making SLIDE #22