Quality management & ethics

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  • 1. Quality Management & Ethics ETHICAL MANAGEMENT
  • 2. Major Topics
    • Ethics Defined
    • Trust and Total Quality
    • Values and Total Quality
    • Integrity and Total Quality
    • Responsibility and Total Quality
    • Manager’s Role in Ethics
    • Organization’s Role in Ethics
    • Handling Ethical Dilemmas
    • Ethics Training and Codes of Business Conduct
    • Models for Making Ethical Decisions
    • Beliefs versus Behavior: Why the Disparity ?
  • 3. Ethics Defined - 1
    • Ethics is the study of human behavior within a moral context.
    • Morality refers to the values that are subscribed to and fosters by society in general and by individuals within the society
    • Ethics attempts to - apply reason in determining rules of human behavior that translate morality into everyday behavior.
    • Ethical Behavior – It is that which falls within the limits prescribed by widely accepted moral values.
  • 4. Ethics Defined - 2
    • Guidelines for Determining Ethical Behavior
    • Distinguish the concepts of legal and ethical:
        • A person’s behavior can be well within the prescribed limits of the law and still be unethical.
      • Blanchard and Peale suggest the following 5 P’s which help managers and employees make ethical choices in the work place.
        • Purpose – Individuals see themselves as ethical people.
        • Pride – Individuals apply internal guidelines & have self-esteem.
        • Patience – Individuals believe right will prevail in the long run.
        • Persistence – Individuals are willing to stay with an ethical course of action.
        • Perspective – Individuals take the time to reflect and are guided by their own internal barometer to take ethical decisions.
  • 5. Ethics Defined - 3
    • Factors That Influence Ethical Behavior
      • Managers in a total quality setting need to understand the factors influencing a person’s behavior.
      • L.K.Trevino suggests 3 personality measures that can influence a person’s ethical behavior:
        • Ego strength – Ability to undertake self-directed tasks.
        • Machiavellianism – Extent to which a person will attempt to confuse others.
        • Locus of Control – The perspective of people concerning who or what controls their behavior.
  • 6. Trust and Total Quality
    • Total Quality approach cannot be achieved without ethical behavior.
      • Ethical Behavior builds trust and trust is an essential ingredient of total quality.
    • In attempting to build trust in the workplace, managers should take the initiative.
    Fig 1. Elements of Total Quality that depend on Trust
  • 7. Values and Total Quality
    • Values are those deeply held beliefs that form the very core of who we are.
      • A persons conscience or internal barometer is based on his or her values.
    • Ethical Behavior begins with Values.
      • Values that lead to ethical behavior are as follows:
        • Fairness
        • Dependability
        • Integrity
        • Honesty
        • Truthfulness
  • 8. Integrity and Total Quality
    • Integrity as a personal and organizational characteristic combines honesty and dependability.
    • When an individual or an organization has integrity, ethical behavior automatically follows.
    • People with integrity can be counted on to
      • Do the right thing
      • Do things correctly
      • Accomplish tasks thoroughly and completely
      • Finish work on time
      • Keep promises.
  • 9. Responsibility and Total Quality
    • Part of ethical behavior is to accept responsibility.
    • People generally want to blame others for their own short comings and failures – In a total Quality setting, people are responsible for their actions and accountable for their performance.
    • Accepting responsibility helps build trust, integrity, and all other elements of ethics.
  • 10. Manager’s Role in Ethics
    • Managers have 3 main responsibilities:
    • - For setting an example of ethical behavior.
    • - For helping employees make ethical choices.
    • - Helping employees follow ethical behavior.
    • Following are 3 approaches for managers to carry out their responsibilities:
      • Best Ratio Approach: People are basically good, hence create appropriate conditions.
      • Black-and-White Approach: Right is right, wrong is wrong, hence make ethical decisions and carry them out.
      • Full Potential Approach: People are responsible for realizing their full potential, hence decisions made should focus achieving this potential.
    Fig 2. Approaches to Ethics
  • 11. Organization’s Role in Ethics
    • Organizations have a critical role to play in promoting ethical behavior among their employees.
    • An Organizations tasks in ethics can be summarized as:
      • Creating an internal environment that promotes, expects and rewards ethical behavior.
        • This can be achieved by establishing policies and practices promoting the atmosphere.
      • Setting an example of ethical behavior in all external dealings.
        • Organizations should set an example for their employees.
        • This motivates them to be ethical.
  • 12. Handling Ethical Dilemmas
    • Managers response to ethical dilemma is very important.
    • Following are the guidelines, managers can use in such situations.
    Fig 3. Guidelines for handling ethical dilemmas
  • 13. Ethics Training & Codes of Business Conduct
    • Ethics Training:
      • Ethical behavior and the rationale for it can be taught.
      • In ethics training:
        • Stimulate discussion
        • Facilitate, don’t preach
        • Integrate ethics training
        • Highlight practical applications
      • Few examples of the topics that are widely addressed in corporate-sponsored ethics training programs are
        • Drug and alcohol abuse, Employee theft, Quality control etc.
    • Code of Business Conduct:
      • Written Codes of Business conduct encourage employees to do the right thing.
  • 14. Models for Making Ethical Decisions
    • Decision making models used for determining ethical behavior can differ just as the values of organizations do.
    • Most widely used models are:
      • Categorical Imperative Model – black-and-white model
      • Full Disclosure Model – functional criterion
      • Doctrine of Mean Model – Average between 2 extremes
      • Golden Rule Model – Do unto others as you would have them do unto you
      • Market-Ethic Model – Any legal action that promotes profitability-ethical
      • Organizational Ethic Model – Loyalty to organization
      • Equal Freedom Model – Organizations have freedom to behave
      • Proportionality Ethic Model – World is so complex, decisions are not clear
      • Professional Ethic Model – Principle of peer review
  • 15. Beliefs vs. Behavior
    • Ethics in workplace manifests itself through the application of values.
    • Most, but not all, people subscribe to these values.
    • Several Reasons explain the disparity like:
      • Self-Interest/Self-Protection
      • Conflicting Values
      • Tangible/Intangible – Immediate Deferred
      • Making Ethics Tangible and Immediate
  • 16. Questions/Queries