Description
The PPT explains about Personal Values and Business Decisions.
Personal values and business decisions
Values
• A principle, standard, or quality considered worthwhile or desirable. • Values are a major motivating force for people because they categorise how people attach meaning, worth and importance to things. • When a person's values are matched, they feel complete and satisfied. If values are not met, there is a sense of dissatisfaction, unease or incongruity.
Decision
• A decision is a judgment or conclusion reached or given. • This definition emphasizes the choice, the selection of a single option based on a variety of factors. • Once there are a number of options, the values inherent in the options will influence the decision-maker's selection. • The more the options vary, the greater will be the role of those values
Decision-Making
•Moral Dilemmas •Conflict – personal values & organisation norms •Religious Belief •Ethical Decision – Making
• If managers were robots, their personal values would not matter. • They would process the facts of a situation and their responsibilities in exactly the same way and make the same decisions. • But values differ from manager to manager, sometimes greatly.
Two important questions• One is empirical: How do managers’ values influence their work and their efforts to meet their responsibilities? • The other is ethical: How should a manager’s values influence his or her work?
The Ideal World
• “Alignment” -Managers should believe strongly in the missions of their organizations and be deeply committed to meeting their professional responsibilities. • This mechanistic term underplays the passion, commitment, and intensity of successful leaders. • The work of successful leaders expresses who they are and what they care deeply about. • Their responsibilities and commitments are central to their identities.
• In Peter Drucker’s words, “Leadership is not rank or privileges, titles or money. Leadership is responsibility.” • A high ethical ideal asks managers to commit themselves personally to common values • These common values include honesty, respect, and hard work, and to whatever specific values, such as creativity, service to customers, or attention to detail, reinforce their firm’s strategy.
The Real World
• There are at least four obstacles that can keep managers from working and living by their personal values. ?Sustaining commitment. ?Unbridled self-interest. ?Right-versus-right conflicts. ?Right-versus-wrong situations.
Solutions
• Sustaining commitment- a vacation or as complex as a new assignment or a new job. • excessive self-interest or a right-versus-right conflict ?personal reflection ?careful attention to one’s responsibilities ?conversations with mentors, trusted colleagues, and friends.
When there is strong pressure to do something wrong…
• Exit • Loyalty • Voice
A detailed process to avoid conflict..
• A strategy of eliminating the chance for this conflict is simple communication. The leader should talk with their immediate subordinates or middle level managers and find out their opinions about the personal value and see if it is a conflict of interest. • The middle managers should then ask their subordinates about the issue without disclosing the decision that is to be made.
• With that information the leader can make the decision with a firm belief that it is ethical and the personal value is not reflected in it. • If a person bases their life on personal values, then it is imperative that he uses a system of checks and balances to make sure those values do not conflict with the ethics of the company or organization.
Core Values Important for the success to the organisation or individual
• • • • • • • Honesty Respect Responsibility Fairness Compassion Perseverance Courage
• Honesty - Being straightforward, sincere, truthful, free of fraud, deception or misrepresentation.
• Transparency - To be open, honest and available, to provide clear, accurate, and understandable information (e.g. in the context of financial disclosures). Some ethicists have argued that ethical business practices are best measured by a company's character and commitment to transparency than by their social vision or rhetoric (e.g. Jon Entine)
• Richard Sears — founder of Sears Roebuck and Company—started the modern mail order industry, supplying a burgeoning nation with innovative products and building a business that gave employment to hundreds of thousands of people. In his zeal to sell merchandise, Sears occasionally would get carried away with catalogue descriptions, praising products far beyond the literal truth. This in turn led to returned merchandise and reduced profits. But Sears learned his lesson. In later years, he was fond of saying, "Honesty is the best policy. I know because I've tried it both ways.” - from Integrity
at Work, ed. By Ken Shelton.
Values – Respect
• Respect: To give particular attention to, show consideration for, or hold in high or special regard (Merriam-Webster's Online
Dictionary, 10th Edition)
• Should respect be given or must respect be earned?
Values- Respect
“Every man is to be respected as an absolute end in himself; and it is a crime against the dignity that belongs to him as a human being, to use him as a mere means for some external purpose.” - Immanuel Kant, Prussian geographer and
philosopher (1724-1804)
Values - Compassion
• Compassion: “sympathetic consciousness of another's distress together with a desire to alleviate it" , fellow feeling , the emotion of caring concern; the opposite of cruelty
Values - Responsibility
• “I am only one, but still, I am one. I cannot do everything but I can do something. And, because I cannot do everything, I will not refuse to do what I can.” - Edward Everett Hale,
American clergyman and writer (1822-1909)
• “The question for each man to settle is not what he would do if he had the means, time, influence and educational advantages, but what he will do with the things he has.” Hamilton W right Mabee
Values - Fairness
• Justice: demonstrating fairness, equity, impartiality, righteous action, • To some, justice is about conformity to truth. To others, its about conformity to law • But law and justice are 2 different concepts.
– “The law is something we must live with. Justice is somewhat harder to come by.” - Sherlock Holmes, in The Case of the Red Circle.
Values - Perseverance
• Perseverance or atitude - steadfast determination to continue on despite adversity usually over a long period of time.
• “Nothing in the world can take the place of perseverance. Talent will not; nothing is more common than unsuccessful men with talent. Education will not; the world is full of educated derelicts. Genius will not; unrewarded genius is almost a proverb. Persistence and determination alone are omnipotent.” - Calvin Coolidge
Values - Courage
• The first place to start is for every individual to become aware of their core values and to have the courage and discipline to live out of them in all aspects of their lives. • This is one of the most important core value.
Tata Iron & Steel Co. Ltd.
Code of conduct - 1998
• Ethics counsellor at senior management level • Plus , one person in every department - ethics coordinators • Execution at 3 levels: • Employees • Suppliers & dealers • Families of employees
Code of Conduct
• • • • • National interest Financial reporting and records Competition (support for open market economy) Equal-opportunities employer Gifts and donations (employees shall neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits which are intended to or perceived to obtain business or uncompetitive favours for the conduct of its business) • Government agencies (Not to offer or give any company funds or property as donation to any government agencies or their representatives….) • Political non-alignment
Code of Conduct
• Health, safety, and environment • Quality of products and services • Corporate citizenship (compliance of all relevant laws…and actively assisting in the improvement of the quality of life.) • Cooperation of Tata companies • Public representation of the company and the group • Third party representation • Use of the Tata brand • Group policies • Shareholders • Ethical conduct • Regulatory compliance
Code of Conduct
• • • • • • • Concurrent employment Conflict of interest Securities transactions and confidential information Protecting company assets Citizenship Integrity of data furnished Reporting concerns
Code of Conduct- how they did it
• • • • Workshops Linked with the performance management system However following the code was not a matter of discretion Any proven violation was viewed seriously
Effects
• • • • • • • Proactive ethical behaviour Adherence to code in external dealings, thus gaining respect Sense of pride in associating with the company Enhanced commitment Better performance Even retired employees respect the company Positive stakeholder response – lower transaction costs
doc_637313103.ppt
The PPT explains about Personal Values and Business Decisions.
Personal values and business decisions
Values
• A principle, standard, or quality considered worthwhile or desirable. • Values are a major motivating force for people because they categorise how people attach meaning, worth and importance to things. • When a person's values are matched, they feel complete and satisfied. If values are not met, there is a sense of dissatisfaction, unease or incongruity.
Decision
• A decision is a judgment or conclusion reached or given. • This definition emphasizes the choice, the selection of a single option based on a variety of factors. • Once there are a number of options, the values inherent in the options will influence the decision-maker's selection. • The more the options vary, the greater will be the role of those values
Decision-Making
•Moral Dilemmas •Conflict – personal values & organisation norms •Religious Belief •Ethical Decision – Making
• If managers were robots, their personal values would not matter. • They would process the facts of a situation and their responsibilities in exactly the same way and make the same decisions. • But values differ from manager to manager, sometimes greatly.
Two important questions• One is empirical: How do managers’ values influence their work and their efforts to meet their responsibilities? • The other is ethical: How should a manager’s values influence his or her work?
The Ideal World
• “Alignment” -Managers should believe strongly in the missions of their organizations and be deeply committed to meeting their professional responsibilities. • This mechanistic term underplays the passion, commitment, and intensity of successful leaders. • The work of successful leaders expresses who they are and what they care deeply about. • Their responsibilities and commitments are central to their identities.
• In Peter Drucker’s words, “Leadership is not rank or privileges, titles or money. Leadership is responsibility.” • A high ethical ideal asks managers to commit themselves personally to common values • These common values include honesty, respect, and hard work, and to whatever specific values, such as creativity, service to customers, or attention to detail, reinforce their firm’s strategy.
The Real World
• There are at least four obstacles that can keep managers from working and living by their personal values. ?Sustaining commitment. ?Unbridled self-interest. ?Right-versus-right conflicts. ?Right-versus-wrong situations.
Solutions
• Sustaining commitment- a vacation or as complex as a new assignment or a new job. • excessive self-interest or a right-versus-right conflict ?personal reflection ?careful attention to one’s responsibilities ?conversations with mentors, trusted colleagues, and friends.
When there is strong pressure to do something wrong…
• Exit • Loyalty • Voice
A detailed process to avoid conflict..
• A strategy of eliminating the chance for this conflict is simple communication. The leader should talk with their immediate subordinates or middle level managers and find out their opinions about the personal value and see if it is a conflict of interest. • The middle managers should then ask their subordinates about the issue without disclosing the decision that is to be made.
• With that information the leader can make the decision with a firm belief that it is ethical and the personal value is not reflected in it. • If a person bases their life on personal values, then it is imperative that he uses a system of checks and balances to make sure those values do not conflict with the ethics of the company or organization.
Core Values Important for the success to the organisation or individual
• • • • • • • Honesty Respect Responsibility Fairness Compassion Perseverance Courage
• Honesty - Being straightforward, sincere, truthful, free of fraud, deception or misrepresentation.
• Transparency - To be open, honest and available, to provide clear, accurate, and understandable information (e.g. in the context of financial disclosures). Some ethicists have argued that ethical business practices are best measured by a company's character and commitment to transparency than by their social vision or rhetoric (e.g. Jon Entine)
• Richard Sears — founder of Sears Roebuck and Company—started the modern mail order industry, supplying a burgeoning nation with innovative products and building a business that gave employment to hundreds of thousands of people. In his zeal to sell merchandise, Sears occasionally would get carried away with catalogue descriptions, praising products far beyond the literal truth. This in turn led to returned merchandise and reduced profits. But Sears learned his lesson. In later years, he was fond of saying, "Honesty is the best policy. I know because I've tried it both ways.” - from Integrity
at Work, ed. By Ken Shelton.
Values – Respect
• Respect: To give particular attention to, show consideration for, or hold in high or special regard (Merriam-Webster's Online
Dictionary, 10th Edition)
• Should respect be given or must respect be earned?
Values- Respect
“Every man is to be respected as an absolute end in himself; and it is a crime against the dignity that belongs to him as a human being, to use him as a mere means for some external purpose.” - Immanuel Kant, Prussian geographer and
philosopher (1724-1804)
Values - Compassion
• Compassion: “sympathetic consciousness of another's distress together with a desire to alleviate it" , fellow feeling , the emotion of caring concern; the opposite of cruelty
Values - Responsibility
• “I am only one, but still, I am one. I cannot do everything but I can do something. And, because I cannot do everything, I will not refuse to do what I can.” - Edward Everett Hale,
American clergyman and writer (1822-1909)
• “The question for each man to settle is not what he would do if he had the means, time, influence and educational advantages, but what he will do with the things he has.” Hamilton W right Mabee
Values - Fairness
• Justice: demonstrating fairness, equity, impartiality, righteous action, • To some, justice is about conformity to truth. To others, its about conformity to law • But law and justice are 2 different concepts.
– “The law is something we must live with. Justice is somewhat harder to come by.” - Sherlock Holmes, in The Case of the Red Circle.
Values - Perseverance
• Perseverance or atitude - steadfast determination to continue on despite adversity usually over a long period of time.
• “Nothing in the world can take the place of perseverance. Talent will not; nothing is more common than unsuccessful men with talent. Education will not; the world is full of educated derelicts. Genius will not; unrewarded genius is almost a proverb. Persistence and determination alone are omnipotent.” - Calvin Coolidge
Values - Courage
• The first place to start is for every individual to become aware of their core values and to have the courage and discipline to live out of them in all aspects of their lives. • This is one of the most important core value.
Tata Iron & Steel Co. Ltd.
Code of conduct - 1998
• Ethics counsellor at senior management level • Plus , one person in every department - ethics coordinators • Execution at 3 levels: • Employees • Suppliers & dealers • Families of employees
Code of Conduct
• • • • • National interest Financial reporting and records Competition (support for open market economy) Equal-opportunities employer Gifts and donations (employees shall neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits which are intended to or perceived to obtain business or uncompetitive favours for the conduct of its business) • Government agencies (Not to offer or give any company funds or property as donation to any government agencies or their representatives….) • Political non-alignment
Code of Conduct
• Health, safety, and environment • Quality of products and services • Corporate citizenship (compliance of all relevant laws…and actively assisting in the improvement of the quality of life.) • Cooperation of Tata companies • Public representation of the company and the group • Third party representation • Use of the Tata brand • Group policies • Shareholders • Ethical conduct • Regulatory compliance
Code of Conduct
• • • • • • • Concurrent employment Conflict of interest Securities transactions and confidential information Protecting company assets Citizenship Integrity of data furnished Reporting concerns
Code of Conduct- how they did it
• • • • Workshops Linked with the performance management system However following the code was not a matter of discretion Any proven violation was viewed seriously
Effects
• • • • • • • Proactive ethical behaviour Adherence to code in external dealings, thus gaining respect Sense of pride in associating with the company Enhanced commitment Better performance Even retired employees respect the company Positive stakeholder response – lower transaction costs
doc_637313103.ppt