Challenges Faced by Managers in Practicing Organisational Behaviour

FACULTY OF INFORMATION TECHNOLOGY & MULTIMEDIA COMMUNICATION MEI / 2012 BBGO4103 ORGANISATIONAL BEHAVIOUR MATRICULATION NO: 800201085406001 IDENTITY CARD NO. : 800201085406 TELEPHONE NO. : 0127252294 E-MAIL : [email protected] com LEARNING CENTRE: BANGI LEARNING CENTRE Content Page 1. Introduction and Description of the Selected Organisation2 2. Description of Roles of Managers Based on Mintzberg’s (1973) Model5 3. Challenges Faced By Managers in Practicing Organisational Behaviour12 4. Recommendations On How Managers Can Better Handle The Identified Challenges. 16 5. Summary24 6. Reference 27 7. Bibliography30
Introduction and Description of the Selected Organisation Manager, a term that is so ubiquitous that its definition is commonly assumed. But the need to seek a definition rises proportionally to the drive to increase the productivity and efficiency of business in an ever changing marketplace. Armed with the tools yielded by the science of organizational behaviour, a working definition of this common term can be rendered as well as an answer to, “What do managers do? ” This paper will distinguish the managerial roles practice base on the work of Henry Mintzberg and analyses managerial challenges faced by managers.
As a sample of case study I have chosen AirAsia Berhad as, one of the most leading airline companies in Malaysia. The company corporate data are as follows: Corporate Data Company Name:AirAsia Berhad Year Founded:1993 Year Incorporated:2001 Registered Office:AirAsia Berhad (Company No. 284669-W) 25-5, Block H, Jalan PJU 1/37 Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia Contact: (603) – 78809318 (T) / (603) – 78806318(F) Head office:LCC Terminal, Jalan KLIA S3 Southern Support Zone, KLIA 64000 Sepang, Selangor Darul Ehsan, Malaysia

Contact: (603) – 86604333 (T) / (603) – 87751100 (F) Website : www. airasia. com Stock Exchange Listing:Main Market of Bursa Malaysia Securities Berhad (Listed since 22 November 2004) (Stock code: 5099) Type of business:Transportation > Airline/Aviation (Provision of air transportation services). Company Overview AirAsia needs no introduction in ASEAN, where it is the leading Malaysian-based low-cost airline. AirAsia is Asia’s largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia, connecting people and places across 132 routes, 40 of which are offered by no other airline.
Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). In 2010, the Group, which includes affiliates AirAsia Thailand and AirAsia Indonesia, reinforced its leadership position with two remarkable milestones: flying its 100 millionth guest and breaking the RM1 billion profit barriers. Voted by over 18. 8 million airline passengers from 100 different nationalities, the World Airline Awards™ are the most prestigious quality recognition of front-line product and service standards for the world airline industry.
With 200 airlines featured, the awards measure customer satisfaction levels across 38 different items of airline front-line product and service, AirAsia won the Skytrax World’s best low-cost airline award in 2007, 2009, 2010 and 2011. It has the world’s lowest operating costs at USD 0. 035/seat-kilometre in 2010. It is also the first airline in the region to implement fully ticketless air travel. Company Vision To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Company Mission To be the best company to work for whereby employees are treated as part of a big family * Create a globally recognized ASEAN brand * To attain the lowest cost so that everyone can fly with AirAsia * Maintain the highest quality product, embracing technology to reduce cost and enhance service levels Type of Employees and Size According to the latest annual report (2011), AirAsia employees have reached about 5,137 staff at the year-end of 2011. This employment includes various levels of position which are Board of Directors, Senior Management, Manager, Head, Executive, and Non-Executive.
Exhibit 1: Supporting data for employee size retrieved from the Air Asia Annual Report 2011 Description of Roles of Managers Based on Mintzberg’s (1973) Model An appropriate starting point to explore the duties of a manager lies within the function of the management position. The origins of a functional description of management can be found in the works of Henry Fayol. Fayol, originally an engineer that turned to management in late-nineteenth century, he set the foundation for management theory by outlining five primary functions of the manager; planning, organizing, commanding, coordinating and controlling.
To fully understand the activities of the manager, it is necessary to delve beyond function to determine how it is expressed. For this, the work of Henry Mintzberg can be applied to illuminate how a manager performs these functions. In The Nature of Managerial Work (1973), Mintzberg proposed that a manager will utilize a combination of ten different roles to achieve their objectives. These roles can be grouped into three broader categories – informational, interpersonal and decisional. Exhibit 2: Mintzberg Managerial Roles Model and Relations Towards Information Handling. Interpersonal roles
Interpersonal roles arise directly from a manager’s formal authority and status, and shape relationships with people within and beyond the organisation. The interpersonal group links together the other groups by establishing and maintaining a framework and environment, both externally and internally, that dictates where and how that information is conveyed and to which objectives is it meant to fulfil. There are three types of interpersonal roles – figurehead, leader and liaison. A manager usually maintains a network of relationships, both inside and outside the organisation.
Dealing with people, formally and informally, up and down the hierarchy and sideways within it, is thus a major element of the manager’s role. A manager is often most visible when performing these interpersonal roles. In the figurehead role the managers are the symbol, representing the unit in legal and ceremonial duties such as greeting a visitor, sign legal documents, presenting retirement gifts or receiving a quality award. For example, the AirAsia Berhad Group Chief Executive Officer, Tan Sri Dr.
Tony Fernandes responsible in signing the company legal documents such as statement by directors for auditing purposes, receives “Value Airline of the Year” awards from ATW Annual Airline Industry Achievement Awards on behalf of AirAsia Berhad and spokesperson for press interviews by the Starbiz, The Star newspaper on Friday, June 15, 2012 with the headlines “Tony Fernandes speaks to StarBiz on AirAsia’s future plans”. The evidence of these responsibilities is as follows: Exhibit 3: Signing Legal Documents – retrieved from Airasia Berhad Annual Report 2011
Exhibit 4: The Group CEO on behalf of AirAsia receives Awards “Value Airline of the Year” The leader role defines the manager’s relationship with other people (not just subordinates), including motivating, communicating and developing their skills and confidence. As leaders, managers have to consider the needs of an organisation and those of the individuals they manage and work with. The leadership roles practice by the Group CEO meets the Mintzberg values as some commented: “(At AirAsia) there’s no such thing as a male of female pilot. Only good or great pilots. It’s thanks to people like Tan Sri Dr.
Tony Fernandes who advocate equal rights. ” Nadira Ramli, AirAsia Woman Pilot. “I ask him what is it that makes this company so different, so successful, and so passionate about everything it does, creating a culture that shows on the faces of every single person in the company. He says, “Our corporate culture is it. It’s what makes us. ” So what is this corporate culture that changes lives and makes this company one of the most successful airlines in the world? It asks the question, “Hierarchy, what hierarchy? ” Tony is a leader and a manager, but he is one of the team also.
So his office is smack at the heart of the company, with no walls and no doors. Everyone sees him and he sees everyone. He is Tony to everyone and he is in his polo shirt and with his famous baseball cap. His only vice is that he gets a special parking slot right next to the door of his building, for his two-door white Peugeot. ” Fadi Ghandour, Chairman of Wamda and Founder and CEO of Aramex. The liaison role focuses on contacts with people outside the immediate unit. Managers maintain a network in which they trade information and favours for mutual benefit with clients, government officials, customers and suppliers.
For some managers, particularly chief executives and sales managers, the liaison role takes a high proportion of their time and energy. From my observations, this role also has been practice in this company. For example, its Commercial Public Relations Executive, Ms Linda Foo Yan Yan, one of her job responsibilities is as liaison and point of contact with respective airports organizations, tourism bureaus and internal departments in order to gain support in promotion and marketing activities. Informational roles
Managers must collect, disseminate and transmit information and these activities have three corresponding informational roles: monitor, disseminator and spokesperson. In monitoring what goes on in the organisation, a manager will seek and receive information about both internal and external events and transmit it to others. This process of transmission is the dissemination role, passing on information. A manager has to give information concerning the organisation to staff and to outsiders, taking on the role of spokesperson to both the general public and those in positions of authority.
Managers need not collect or disseminate every item themselves, but must retain authority and integrity by ensuring the information they handle is correct. In AirAsia Berhad, this responsibility is hold by Head of Communications, Ms Sherliza Zaharudin. The position is actually similar as company spokesperson and representative. The company image and presentation lies on her hands as she responsible in producing press releases, answering interviews and other corporate affairs. For example, one of her job is writing a press release.
First, she must monitor and look up what is goes on in the company by obtaining the true source of the information or verified data from the immediate superior or resources. Then, before she disseminates the information, she needs to analyse and interprets and write up a report in the form of press release. Then, the press release will be submitted to media and press as an official document of announcement to be announced to the public. As a spokesperson, she also has to be alert at the company product and updates as she needs to promote and lobbying the entities. 4. 3. 3 Decisional roles
Mintzberg argues that making decisions is the most crucial part of any managerial activity. He identifies four roles which are based on different types of decisions; namely, entrepreneur, disturbance handler, resource allocator and negotiator. As entrepreneurs, managers make decisions about changing what is happening in an organisation. They may have to initiate change and take an active part in deciding exactly what is done – they are proactive. The board of directors of AirAsia Berhad have made many decisions towards being a proactive such as initiate new projects, spot opportunities and identify areas of business development.
For example, in October 31, 2003, AirAsia announces the setting up of a new hub in Senai, Johor Bahru, with direct flights to Kota Kinabalu, Kuching, Langkawi and Penang. The full listing of their successful entrepreneurships decision making can be seen in the company annual report 2011, page 5 in the 10 years of achievement section. However, it is very different from their role as disturbance handlers, which requires them to make decisions arising from events that are beyond their control and which are unpredictable.
The ability to react to events as well as to plan activities is an important aspect of management. Unfortunately, AirAsia Berhad has been tested in facing such disturbance. It was a first incident that happens to Malaysian aircraft that is most unbearable situation to handle and overcome. The incident was when an AirAsia Airbus A320-216 passenger jets, registered 9M-AHH, sustained substantial damage in a runway excursion accident at Kuching Airport (KCH), Malaysia. Exhibit 5: Cranes are used to remove the plane off the runway Tuesday
The airplane operated on flight AK5218 from Kuala Lumpur Subang International Airport (KUL) to Kuching Airport (KCH). The flight landed on Kuching’s runway 25 in heavy rain around but skidded to the right and went off the side of the runway. It came to rest in the grass with the nose gear dug in or collapsed. At the moment of the incident, there were 123 guests on board the flight. Four guests were sent for observation as a precautionary measure and were released shortly after. All other guests are safe and have been attended to accordingly.
The resource allocation role of a manager is central to much organisational analysis. A manager has to make decisions about the allocation of money, equipment, people, time and other resources. In so doing a manager is actually scheduling time, programming work and authorising actions. This role without a doubt, have been comply by managers in AirAsia Berhad, especially by the Board of Directors as mentioned in the Statement on Corporate Governance, Annual Report 2011 under the Roles and Responsibilities of the Board.
The negotiation role is important as a manager has to negotiate with others and in the process be able to make decisions about the commitment of organisational resources. Mintzberg found that managers don’t perform equally – or with equal frequency – all the roles he described. There may be a dominant role that will vary from job to job, and from time to time. It is important to note that many non-managers in organisations seem to have these sorts of interpersonal, informational and decisional roles. In contrast, the ituations managers deal with differ in the degree of routine, the size and scope and complexity of the activities in which they are involved, and the responsibilities associated with these activities. Challenges Faced By Managers in Practicing Organisational Behaviour The world is changing and as is the case with companies. Companies are no longer steadfast on the theory of recruiting workforce from the same geography for their work to be done. At the end of the day, the businesses especially the ones which have an unconventional business model believe in the work being done, it does not matter who does it.
In such a scenario, recruitment of workforce has become a global activity with at least 25-30% of a company’s workforce being made up of employees recruited offshore. It is quite natural for companies to boast of employees from a cross section of cultural backgrounds. With that comes the challenge of managing and practicing Organizational Behaviour in such companies Challenge of Globalisation One major challenge facing managers in the early 21st century arises from what many commentators have identified as an increasingly international or global business environment.
The following factors are frequently cited as potential explanatory factors underlying this trend: i. Communication – improvements in international communication facilities leading to an increased consciousness of differences in workplace attitudes and behaviour in other societies; ii. International competitive pressure – for example, the emergence of newly industrialised and/or free-market nations (the Far East region and former communist bloc countries are often viewed as examples of this phenomenon); iii.
The spread of production methods and other business processes across nations and regions; international business activity, for example: overseas franchising or licensing agreements; outsourcing of business units to other countries (call centres provide a topical example); direct foreign investment and the activities of multinational corporations which, by definition, operate outside national boundaries. In broad terms, globalisation refers to organisations integrating, operating and competing in a worldwide economy. The organisations’ activities are more independent across the world rather than confined nationally.
Globalisation will also impact on the nature of social responsibilities and business ethics. With globalisation, strategy and structure are inextricably linked. As organisations, and especially large business organisations, adopt a more global perspective this will have a significant effect on the broader context of management and organisational behaviour. Challenge of Workforce Diversity Workplace diversity exists when companies hire employees from various backgrounds and experiences. Many companies see workplace diversity as an investment toward building a better business.
Although workplace diversity provides many benefits, it also poses many challenges to employees and managers. To reap the benefits of workplace diversity, employees and managers must understand the challenges and know how to effectively deal with them. Taking full advantage of the benefits of diversity in the workplace is not without its challenges. Some of those challenges are: i. Communication – Perceptual, cultural and language barriers need to be overcome for diversity programs to succeed. Ineffective communication of key objectives results in confusion, lack of teamwork, and low morale. i. Resistance to change – There are always employees who will refuse to accept the fact that the social and cultural makeup of their workplace is changing. The “we’ve always done it this way” mentality silences new ideas and inhibits progress. iii. Implementation of diversity in the workplace policies – This can be the overriding challenge to all diversity advocates. Armed with the results of employee assessments and research data, they must build and implement a customized strategy to maximize the effects of diversity in the workplace for their particular organization. v. Successful Management of Diversity in the Workplace – Diversity training alone is not sufficient for the organization’s diversity management plan. A strategy must be created and implemented to create a culture of diversity that permeates every department and function of the organization. Challenge of Technology Change The major advances in technology that have emerged over the last several decades have had an impact on virtually every aspect of modern life, and the hospitality industry has also been affected by these changes.
While keyboards and microchips are probably among the last things guests want to think about as they dip into a creme brulee or lounge in a penthouse suite, hospitality industry insiders know that modern technology plays a big part in keeping things on track behind the scenes, from the back-of-the-house order management systems that help chefs keep their plates straight to the reservation systems that ensure that a soft bed will be waiting for a weary traveller at the end of a long day on the road. Just like all types of technology, the technology that helps power the hospitality industry is constantly evolving.
A brief stroll through the product exhibition hall at any industry conference will reveal just a slice of the hundreds of new styles of software, systems, gadgets, programs, and equipment that are released in the hospitality market each year. Sooner or later, it’s likely one organization will be faced with a challenge that can strike fear into the heart of even the most intrepid of managers: implementing new technology in the workplace. Whether it’s a POS program for the cafe or a reservation system for the bed and breakfast, the prospect of managing technology change can be daunting.
Challenge of Downsizing/Layoff Many companies are under intense economic pressure. Reorganizations, takeovers, mergers and downsizing are increasingly common as today’s companies try to grow, compete and survive. Downsizing presents new challenges and demands for everyone in the organization, from the CEO to the telephone receptionist. For managers, the challenge is even greater. Not only do managers have to cope with their own fears and frustrations, they have to support others who are emotionally distraught, even while remaining positive and productive.
There’s no doubt about it—it’s a tough time to be in business. Whether one owns the company, hold a position in senior management or work in human resources, there is a lot of pressure on him/her to ensure that the organization makes it through the recession with the fewest battle scars possible. Laying people off is easily one of the hardest roles that a manager faces, but it is almost inevitable that at some point in the career one will need to do it. Although it may sound odd, laying people off and retaining people actually go hand in hand.
How to conduct layoffs and how to deal with those who remain will directly impact the bottom line. Mishandle either of those two things and will be facing productivity and morale problems. Challenge of Managerial Ethics Ethics is difficult to define in a precise way. In a general sense, ethics is the code of moral principles and values that governs the behaviours of a person or group with respect to what is right or wrong. Ethics sets standards as to what is good or bad in conduct and decision making. An ethical issue is present in a situation when the actions of a person or organization may harm or benefit others.
Yet ethical issues can sometimes be exceedingly complex. People in organizations may hold widely divergent views about the most ethically appropriate or inappropriate actions related to a situation. Managers often face situations in which it is difficult to determine what is right. In addition, they might be torn between their misgivings and their sense of duty to their bosses and the organization. Sometimes, managers want to take a stand but don’t have the backbone to go against others, bring unfavourable attention to them, or risk their jobs.
Recommendations On How Managers Can Better Handle The Identified Challenges. There are new leadership and management challenges for the 21st Century, to be met against the backdrop of financial uncertainty, technological change and global economic downturn. The world we live and work in is vastly different from that we inhabited just a few decades ago and our approach to leadership and management must adapt to it. Here are the recommendations on how managers can better handle the identified challenges previously discussed: Managing Globalisation i. A cross-cultural approach to management
One rationale for taking a cross-cultural approach to management lies in the potential benefits to be gained in performance terms. In addition to practically based benefits in considering our own ‘home’ culture, there has been a long tradition of looking to other cultures for examples of ‘successful’ practice which could be transplanted into work organisations in different societies. Different models may be dominant at different times. ii. Managing people from different cultures a. Recognise the variations in workplace attitudes and behaviour between individuals and groups in different cultural contexts. b.
In examining the centrally important topic of motivation managers must develop organizational systems that are flexible enough to take into account the meaning of work and the relative value of rewards within the range of cultures where they operate. iii. Managing Workforce Diversity Recommended steps in managing workforce diversity in organizations are: a. Assessment of diversity in the workplace – Top companies make assessing and evaluating their diversity process an integral part of their management system. A customizable employee satisfaction survey can accomplish this assessment for the company efficiently and conveniently.
It can help the management team determine which challenges and obstacles to diversity are present in the workplace and which policies need to be added or eliminated. Reassessment can then determine the success of diversity in the workplace plan implementation. b. Development of diversity in the workplace plan – Choosing a survey provider that provides comprehensive reporting is a key decision. That report will be the beginning structure of the diversity in the workplace plan. The plan must be comprehensive, attainable and measurable. An organization must decide what changes need to be made and a timeline for that change to be attained. . Implementation of diversity in the workplace plan – The personal commitment of executive and managerial teams is a must. Leaders and managers within organizations must incorporate diversity policies into every aspect of the organization’s function and purpose. Attitudes toward diversity originate at the top and filter downward. Management cooperation and participation is required to create a culture conducive to the success of the organization’s plan. iv. Recommended diversity in the workplace solutions include: a. Ward off change resistance with inclusion. Involve every employee possible in formulating and executing diversity initiatives in the workplace. b. Foster an attitude of openness in the organization. – Encourage employees to express their ideas and opinions and attribute a sense of equal value to all. c. Promote diversity in leadership positions. – This practice provides visibility and realizes the benefits of diversity in the workplace. d. Utilize diversity training. – Use it as a tool to shape the diversity policy. e. Launch a customizable employee satisfaction survey that provides comprehensive reporting. Use the results to build and implement successful diversity in the workplace policies. Managing Technology Change Here are some recommendations on managing the technology change in an organisation: i. Provide as Much Advance Warning as Possible. Human beings are naturally resistant to change, but change that is sudden and unexpected is often most difficult to accept. As soon as one is certain that technology change is in his/her organization’s future, announce the news to the staff. This will give them more time to adapt mentally to the prospect of a future change.
If possible, begin training sessions that introduce the basic concepts of the new technology well before the actual date of implementation. ii. Recruit A Group of Staff Facilitators. Call on a few ambitious, interested, or tech-savvy employees to act as project leaders for the technology change. They can sit in on the planning and implementation meetings and convey new developments to the other employees in their departments. Also, having a few key “cheerleaders” who are in favour of the project from the start can help bolster the staff’s morale during the challenge of implementation. iii.
Begin System Training in a Low-Pressure Environment. The hospitality industry is famously fast-paced, so booting up a new POS system right before the dinner rush is probably not the best way to boost the team’s confidence in the new technology. If possible, set up the new equipment in a back room for several weeks of training before the full-scale implementation. Remind the staff of the old adage that the only “stupid” question is the one that remains unasked. iv. Have a Plan B…and Maybe Even a Plan C. Remind the self that a few snags and roadblocks are likely to arise during the first few weeks of using new technology.
Make sure that one has developed one or more contingency plans that the team can rely on if the new system becomes inoperable. v. Training Shouldn’t Stop after the New Equipment is up and Running. Don’t disband the technology committee after the new system has been installed successfully. Instead, plan on meeting every month or every quarter to discuss issues, concerns, or suggestions for future upgrades. One can task one or more of the staff with the responsibility of keeping up with new products from the manufacturer and new developments in the field.
With the rapid pace of technological change that’s occurring within the hospitality industry today, it’s probably more helpful to think of technology implementation as an on-going process, rather than a one-time project that ends with installation. Although the prospect of change is always unsettling, one can significantly increase the chances that the organization’s shift to a new technology will go smoothly by sticking to these simple strategies. Managing Downsizing/Layoff Here are some suggestions on how one should handle downsizing/layoff: i. Plan layoffs carefully.
If one find himself in a position where he need to let people go, don’t act indiscriminately. Take the time to ensure that the layoff plan and the business plan are in sync. Look at the current projects—particularly those that are critical to the business—and don’t forget to plan for the future. Make sure that one has a clear idea of the projects that will get underway once the crisis is over. The last thing one want is to suddenly realize that a mission-critical project is in jeopardy because of letting the wrong people go and now don’t have the talent and resources to proceed. ii.
Be prepared. One will make things easier both for oneself and the people he is laying off if one is well prepared. If one need to, write a script and practice it in front of a mirror until one can do it without sounding forced. Make a list of questions that might be asked and have answers ready. Be confident and get to the point—don’t make small talk. Keep in mind that much of what is said in a layoff meeting will not be retained, so have resources available for affected employees, such as information on benefits, separation terms, and important contacts and other written information.
Also, make sure one have fully planned the necessary post-layoff logistics. Will employees be allowed to say goodbye to colleagues? Will they be permitted some time to gather their belongings? Will you offer to pack up their things and have the boxes delivered to their home address? iii. Know the law. One thing one really don’t need—in a recession or at any time—is a costly court battle, so make sure one know the responsibilities as an employer. The law stipulates that employees must get either some notice prior to dismissal or be compensated instead, although the particulars vary depending on the province or territory.
There are also certain rules that apply when lying off groups of individuals, but again, the laws are different depending on the province. Speak to a lawyer or contact the provincial labour board to make sure that one are meeting the obligations in accordance with the law. iv. Treat people with dignity and respect. It is human nature to shy away from uncomfortable situations, but as a manager one don’t have that luxury. Distancing yourself because you feel bad won’t make anyone feel better. Remember, this is not one fault, and avoiding people will not minimize feelings of guilt or hurt. In fact, it will make them worse.
Be kind and compassionate. Losing one job can be a humiliating experience, so give people the respect they need. However, the recession will end eventually, but what one should do between now and then could have a direct impact on whether your business thrives—or nosedives. When the recession is finally over and business starts to return to normal, make sure that one and one’s employees are ready. Managing Ethical Decision Making Most ethical dilemmas involve a conflict between the needs of the part and the whole – the individual versus the organization or the organization versus society as a whole.
Sometimes ethical decisions entail a conflict between two groups. Managers faced with these kinds of tough ethical choices often benefit from a normative strategy—one based on norms and values—to guide their decision making. Normative ethics uses several approaches to describe values for guiding ethical decision making. Four of these approaches that are relevant to managers are the utilitarian approach, individualism approach, moral-rights approach, and justice approach. i. Utilitarian approach
Under this approach, a decision maker is expected to consider the effect of each decision alternative on all parties and select the one that optimizes the benefits for the greatest number of people. In organizations, because actual computations can be complex, simplifying them is considered appropriate. ii. Individualism Approach The individualism approach contends that acts are moral when they promote the individual’s best long-term interests. Individual self-direction is paramount, and external forces that restrict self-direction should be severely limited.
Individuals calculate the best long-term advantage to themselves as a measure of a decision’s goodness. The action that is intended to produce a greater ratio of good too bad for the individual compared with other alternatives is the right one to perform. Individualism is believed to lead to honesty and integrity because that works best in the long run. Lying and cheating for immediate self-interest just causes business associates to lie and cheat in return. Thus, individualism ultimately leads to behaviour toward others that fits standards of behaviour people want toward themselves. iii. Moral-Rights Approach
The moral-rights approach asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision. Thus, an ethically correct decision is one that best maintains the rights of those affected by it. iv. Justice Approach The justice approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. Three types of justice are of concern to managers which are: a. Distributive justice requires that different treatment of people not be based on arbitrary characteristics. Individuals who are similar in ways relevant to a decision should be treated similarly.
Thus, men and women should not receive different salaries if they are performing the same job. However, people who differ in a substantive way, such as job skills or job responsibility, can be treated differently in proportion to the differences in skills or responsibility among them. This difference should have a clear relationship to organizational goals and tasks. b. Procedural justice requires that rules be administered fairly. Rules should be clearly stated and consistently and impartially enforced. c. Compensatory justice argues that individuals should be compensated for the cost of their injuries by the party responsible.
Moreover, individuals should not be held responsible for matters over which they have no control. Summary Henry Mintzberg concluded that managers perform 10 different roles or behaviours. He classified them into three sets. One set is concerned with interpersonal relationships (figurehead, leader, and liaison). The second set is related to the transfer of information (monitor, disseminator, and spokesperson). The third set deals with decision making (entrepreneur, disturbance handler, resource allocator, and negotiator). This chart summarizes a manager’s ten Mintzberg’s Managerial Roles: Category| Role| Activity|
Informational| Monitor| Seek and acquire work-related information| | Disseminator| Communicate/ disseminate information to others within the organization| | Spokesperson| Communicate/transmit information to outsiders| Interpersonal| Figurehead| Perform social and legal duties, act as symbolic leader| | Leader| Direct and motivate subordinates, select and train employees| | Liaison| Establish and maintain contacts within and outside the organization| Decisional| Entrepreneur| Identify new ideas and initiate improvement projects| | Disturbance Handler| Deals with disputes or problems and takes corrective action| | Resource Allocator| Decide where to apply resources| | Negotiator| Defends business interests| Building an internationally competent workforce whose members know the business and are flexible and open-minded can take years. Multinational organizations can no longer rely on just a few managers with multicultural experience or a few experts on a particular country to succeed. In short, all employees must have some minimal level of international expertise and be able to recognize cultural differences that may affect daily business communications and working relationships.
As a result of the increasingly global business environment, many companies are building teams that cross-national borders and/or include members from different countries of origin. Although many of these teams are designed to pool resources and increase operational efficiencies, the cultural diversity of team members may create a longer learning curve for establishing effective processes than culturally homogeneous groups. This chart summarizes a manager’s challenges and recommendations in managing the challenges: Challenges| Description| Recommendation| Challenge of Globalisation| Organisations integrating, operating and competing in a worldwide economy| i. A cross-cultural approach to management ii.
Managing people from different cultures| Challenge of Workforce Diversity| Leading a diverse work force| i. Ward off change resistance with inclusion ii. Foster an attitude of openness in the organization iii. Promote diversity in leadership positions iv. Utilize diversity training v. Launch a customizable employee satisfaction survey that provides comprehensive reporting| Challenge of Technology Change| Advancing and implementing technological innovation in the workspace| i. Provide as Much Advance Warning as Possible. ii. Recruit A Group of Staff Facilitators. iii. Begin System Training in a Low-Pressure Environment. iv. Have a Plan B…and Maybe Even a Plan C. v.