THE INDIVIDUAL IN THE
   ORGANIZATION
OUTLINE

 The Rational Organization
 Employee’s Obligations to Firm
 The Firms Duties to the Employee
 The Political Organization
 Employee Rights
 Organizational Policies
RATIONAL ORGANIZATION

 A structure formal relationship design to achieve
 some goals with maximum efficiency

 Formal Hierarchies Of Authority
   Operating layer

   Middle management

   Top management
ORGANIZATIONAL CHART

                    BOARD OF DIRECTORS




                         PRESIDENT



    V.P RESEARCH    V.P MANUFACTURING    V.P MARKETING


      PLANT                PLANT              PLANT
     MANAGER              MANAGER            MANAGER



FOREMAN   FOREMAN    FOREMAN   FOREMAN   FOREMAN   FOREMAN
EMPLOYEE’S OBLIGATIONS TO THE FIRM

 work towards the goal of the firm
 obedience to superiors
 avoidance of activities which
  might be harmful to firm



 Law of Agency : specifies the legal duties of
 employees toward their employers
CONFLICT OF INTEREST

 Occurs when an employee in company is carrying out
 a task in which the he has a personal interest rather
 then interest of the firm
TYPES OF CONFLICT OF INTEREST


 Objective Conflict of Interest
 Subjective Conflict of Interest
 Potential Conflict of Interest
 Actual Conflict of Interest
 Apparent Conflict of Interest
COMMERCIAL BRIBES & EXTORTION

 Bribe: When consideration given to employee to get
   favor

 Extortion: When the
   employee demands
   consideration to give favor

 Gifts: When consideration given to employee without
   expecting any favor.
EMPLOYEE THEFT


 Computer    Theft:   Unauthorized
 examination, use or copying of
 computer information or programs

 Trade Secrets: Non Public information
 about activities, plans, policies,
 records, & technologies of firm
FIRMS DUTIES TO ITS EMPLOYEES


 The fairness of WAGE
 The fairness of employee WORKING CONDITION
Continue…

 WAGES:
   Employees point of view
   Employers point of view

 Depends:
   The firms Capabilities

   The Nature of the Job

   Local Cost of Living

 Three Kind of Criticism To Developing Nation
   Too low wage relative to the advance countries

   Too low wage relative to the revenue of the company

   too low relative to what the company need
Continue…

 Response To The Wages:
        Differ in the countries
        Retail price should not be basis for setting the wage
        Need of families influence the wage level


 WORKING CONDITION
1.       Health and safety
        Studying and eliminating job risks
        Compensating for Risk
        Informing workers of known risk
        Insuring workers against unknown risk
Continue…

2. Job satisfaction
 Depends Upon:
   Experienced Meaningfulness

   Experienced Responsibilities

   Knowledge of Results

 Increased by:
   Skill Varity

   Task Identity

   Task Significant

   Autonomy

   Feedback
POLITICAL ORGANIZATION


 Political Model
   Competing powers

   Clustered powerful relationship

   Informal lines of influences

   Cross-cross Communication channel

   Goals are not given by rightful authority
POLITICAL MODEL OF ORGANIZATION

                    BOARD OF DIRECTORS




                         PRESIDENT



    V.P RESEARCH    V.P MANUFACTURING    V.P MARKETING


      PLANT                PLANT              PLANT
     MANAGER              MANAGER            MANAGER



FOREMAN   FOREMAN    FOREMAN   FOREMAN   FOREMAN    FOREMAN
EMPLOYEE RIGHTS

 Just as the power of government should respect the
  civil rights of citizens, so the power of managers
  must respect the moral rights of government.
  Moral rights of employees are;
 The right to privacy
 The right to consent
 The right to freedom of speech
RIGHT TO PRIVACY

 It can be defined as the right people have to
  determine what, to whom, and how much
  information about themselves shall be disclosed to
  others.
 There are two types of Privacy;
 Psychological privacy
 Physical privacy
RELEVANCE

 Employee have the right to know the person they are
 employing and how is he performing.

 The company’s reputation can be badly damaged by
 the manager’s private activities or emotional
 instability.
CONSENT

 The employee should have the clear understanding
  about the company or he can refuse the job.
 Employees should know the culture, values of that
  company and so has to follow these rules for the
  company.
FREEDOM OF CONSCIENCE

 An employee, who believe that this action is
  wrong, should have right to tell to the internal
  management.
 Employees should have freedom of conscience, if he
  think that this action is morally wrong.
 Employee should not be forced to cooperate in
  immoral activities.
WHISTLE BLOWING

 An attempt by a member or former member of an
  organization to disclose wrongdoing in or by the
  organization
 It can be internal or External;
 If any wrong action is reported only to those higher
  in the organization, it is internal whistle blowing.
 if any wrong action is reported outside the
  organization, such as, newspapers, government
  agencies or any public interest groups, then it is
  External whistle blowing.
RIGHT TO PARTICIPATE & PARTICIPATORY
             MANAGEMENT

 Right of individual to participate in decision making




 Allowed to freely express criticism, recieve accurate
 information about decisions that will affect them.
EMPLOYMENT AT WILL

 The employer has the right to decide freely who will
  work for the buisiness,
 Employer has the right to hire, fire or promote
  employees of the buisiness.
 The employee has no right to criticise or object on
  his decision.
EMPLOYEE RIGHTS AND PLANT CLOSINGS

 Service Economy: This economy consists of
  employees which consists largely on providing
  services to others.
 Examples of this economy is
  Banking, restaurant, legal, educational, software
  design, fashion design and medical industries.
 Manufacturing Economy: An economy in which a
  large portion of employees are engaged in work that
  is aimed at producing manufactured products.
 Examples of this economy is auto or steel industries
UNIONS AND THE RIGHT TO ORGANIZE

 workers also have the right to establish and run
 unions for achievement of their wants.



 Right of all workers to be treated as a free and equal
 person
ORGANIZATIONAL POLITICS

 The aim of the organization politics is to advance the
    interest of one individual or group.
     There are following kind of tactics which affect the
    person;
   Blaming or attacking others
   Controlling information
   Developing a base of support for ones ideas
   Image building
   Ingratiation
   Associating with the influential
   Forming groups
   Creating obligations
THE UTILITY OF GOALS

 Utilitarian principle requires that managers pursue
 those goals that are greatly beneficial for the
 organization.



 Utilitarianism implies that the individual manager
 should avoid harming the organization.
THE CARING ORGANIZATION

 Better economic performance
 Trust flourish between the employees.
 Lowers the costs of running an organization
 Reduces cost of disciplinary actions
 Creates customer value for the customers
CASE STUDY

 GAP is a chain of retail stores have contract with
 some 3000 supplier factories.
 Paul Pressler president and chief executive officer of
 gap inc, looked over draft of company’s forthcoming
 social responsibility report 2004, described the
 problems faced by the labor
The lawsuit had been filled on behalf of workers on jan
  1991.Acc to lawsuit:
 Saipan factories violated the human rights of their
  workers
 Label their clothes as MADE IN U.S.A
 IN 1995 the New Times columnist reported on a factory in
  EL Salvador that made clothes for gap. She said Judith
  vireo is an 18 year old at a maquiladora plant. she was paid
  56 cents an hour.

 NLC (national labor committee) investigate on it. brought
  her to U.S at press confrence.and she describes the reality
  to the world that how they were being treated.
 Gap pointed out it is the responsibility of ,mandarin
 plant not there responsibility.

 Finally acc to NLC demands they hire the third party
 to monitor work conditions in the plant.
 NlC and other human rights in front of gap stores
  everywhere protested. generated enormous negative
  publicity for Gap detailing various violations workers being
  forced to work overtime without pay
 workers not being denied access to bathrooms
 use of child labor: 13 year old girls working 13 hour shifts
 harassment of workers trying to organize
 Saipan is the largest of 14 that together make up the
 Commonwealth of the Northern Mariana Islands
 (CNMI) The Saipan Suit against Gap and 17 other
 retailers
 The suits accusations
 workers were hired under false pretenses and
  bound to exploitative agreements
   ads promised "well-paying jobs in the U.S.A.
   had to pay recruitment fees of $5000 to be deducted from
    their paychecks
   had to agree not to marry, not to participate in political or
    religious activities,, not to ask for salary increases
   forced to live in "company towns"
   overpriced at $200/month
   with overcrowded and unsanitary conditions
 forced unpaid overtime
 widespread violations of U.S. health and safety
  laws
 deceptive advertising of the clothes as "Made in the
  USA" which implied to consumers that the
  garments were made in compliance with U.S. labor
  laws and guidelines
 Ap's response
 added labor code previsions
   safe and healthy working and living conditions for
    foreign workers are to be maintained
   foreign workers must be allowed to seek other
    employment & to return home at will
 all future contracts with Saipan factories to
   require safe healthy working conditions
   uphold workers' rights to marry and engage in
    political, religious, & union activities
   prohibit of recruitment fees
 Gap commissions a public report to provide full details of
  all the problems the company faced, the companies
  attempts to deal with the plight or garment workers, and
  detailed data on conditions in all factories supplying Gap
 admitted "few factories, if any, are in full compliance [with
  the Gap labor code] all of the time"
 noted that 25-50 percent of its Central American suppliers
  had been cited for paying below-minimum wages
 made this troubling admission" "that [union rights] abuses
  are difficult to discover and prove and even harder to
  resolve ... violations of our code's freedom of association
  requirement are rarely as straightforward as other
  issues, such as health and safety problems"
 Charles Kernaghan of the NLC's reservations: "In
 economies that are paying poverty wages, when
 people have no rights and no power, what you end up
 monitoring are well-run prisons. Sure, factories will
 be cleaned up.
QUESTION
  AND
ANSWERS
 Is a company like Gap morally responsible for the
  way its suppliers treat their workers?
 Yes they are morally responsible .
 Should companies like Gap attempt to get their
  suppliers to pay more than the local industries
  standard when it is insufficient to live on ? Should
  they pay wages in the third world that are equivalent
  to U.S wages?
 Yes. Employees must get the wages equivalent to U.S
  standards.
 In your view, is Gap's use of the labels "Made in the
 USA" or "Made in Northern Mariana Islands (USA)"
 deceptive? Explain.

 Yes because it does not met the standards
 In your view, and in the light of the fact that Gap's
  own monitors had not reported the sweatshop
  conditions and unpaid overtime in its Saipan
  factories that these were in compliance with all
  applicable worker health and safety laws, was it
  right for Gap to settle the lawsuit? Should Gap
  have settled the lawsuit? Explain.
 Yes as it gives the bad image of the company
 in light of the long history of labor problems that
 Gap has had to contend with, what
 recommendation or recommendations would you
 make to Paul Pressler concerning what the
 company should now do to deal with these and
 future problems? Explain how your
 recommendations will effectively solve these
 problems for Gap.
 I think they should have some permanents
 employees whose duty is to monitor the activates of
 the suppliers company.
 in your judgment, how effective would you expect
  the release of the company's Social Responsibility
  Report 2004 to be? From an ethical point of
  view, in in light of the company's responsibilities to
  its various stakeholders, should the report have
  been released?
 This report must be released as it gives a view that
  company want to bring a correct change and in
  future will take serious action against unethical
  actions
 What other issues do you believe this case raises or
 what else to you think it shows?

 I think this case raises the issue of labor problems , it
 shows how company exploit their employees.it also
 shows how companies cheat their consumers

The individual in the organization

  • 1.
    THE INDIVIDUAL INTHE ORGANIZATION
  • 2.
    OUTLINE  The RationalOrganization  Employee’s Obligations to Firm  The Firms Duties to the Employee  The Political Organization  Employee Rights  Organizational Policies
  • 3.
    RATIONAL ORGANIZATION  Astructure formal relationship design to achieve some goals with maximum efficiency  Formal Hierarchies Of Authority  Operating layer  Middle management  Top management
  • 4.
    ORGANIZATIONAL CHART BOARD OF DIRECTORS PRESIDENT V.P RESEARCH V.P MANUFACTURING V.P MARKETING PLANT PLANT PLANT MANAGER MANAGER MANAGER FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN
  • 5.
    EMPLOYEE’S OBLIGATIONS TOTHE FIRM  work towards the goal of the firm  obedience to superiors  avoidance of activities which might be harmful to firm  Law of Agency : specifies the legal duties of employees toward their employers
  • 6.
    CONFLICT OF INTEREST Occurs when an employee in company is carrying out a task in which the he has a personal interest rather then interest of the firm
  • 7.
    TYPES OF CONFLICTOF INTEREST  Objective Conflict of Interest  Subjective Conflict of Interest  Potential Conflict of Interest  Actual Conflict of Interest  Apparent Conflict of Interest
  • 8.
    COMMERCIAL BRIBES &EXTORTION  Bribe: When consideration given to employee to get favor  Extortion: When the employee demands consideration to give favor  Gifts: When consideration given to employee without expecting any favor.
  • 9.
    EMPLOYEE THEFT  Computer Theft: Unauthorized examination, use or copying of computer information or programs  Trade Secrets: Non Public information about activities, plans, policies, records, & technologies of firm
  • 10.
    FIRMS DUTIES TOITS EMPLOYEES  The fairness of WAGE  The fairness of employee WORKING CONDITION
  • 11.
    Continue…  WAGES:  Employees point of view  Employers point of view  Depends:  The firms Capabilities  The Nature of the Job  Local Cost of Living  Three Kind of Criticism To Developing Nation  Too low wage relative to the advance countries  Too low wage relative to the revenue of the company  too low relative to what the company need
  • 12.
    Continue…  Response ToThe Wages:  Differ in the countries  Retail price should not be basis for setting the wage  Need of families influence the wage level  WORKING CONDITION 1. Health and safety  Studying and eliminating job risks  Compensating for Risk  Informing workers of known risk  Insuring workers against unknown risk
  • 13.
    Continue… 2. Job satisfaction Depends Upon:  Experienced Meaningfulness  Experienced Responsibilities  Knowledge of Results  Increased by:  Skill Varity  Task Identity  Task Significant  Autonomy  Feedback
  • 14.
    POLITICAL ORGANIZATION  PoliticalModel  Competing powers  Clustered powerful relationship  Informal lines of influences  Cross-cross Communication channel  Goals are not given by rightful authority
  • 15.
    POLITICAL MODEL OFORGANIZATION BOARD OF DIRECTORS PRESIDENT V.P RESEARCH V.P MANUFACTURING V.P MARKETING PLANT PLANT PLANT MANAGER MANAGER MANAGER FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN
  • 16.
    EMPLOYEE RIGHTS  Justas the power of government should respect the civil rights of citizens, so the power of managers must respect the moral rights of government. Moral rights of employees are;  The right to privacy  The right to consent  The right to freedom of speech
  • 17.
    RIGHT TO PRIVACY It can be defined as the right people have to determine what, to whom, and how much information about themselves shall be disclosed to others.  There are two types of Privacy;  Psychological privacy  Physical privacy
  • 18.
    RELEVANCE  Employee havethe right to know the person they are employing and how is he performing.  The company’s reputation can be badly damaged by the manager’s private activities or emotional instability.
  • 19.
    CONSENT  The employeeshould have the clear understanding about the company or he can refuse the job.  Employees should know the culture, values of that company and so has to follow these rules for the company.
  • 20.
    FREEDOM OF CONSCIENCE An employee, who believe that this action is wrong, should have right to tell to the internal management.  Employees should have freedom of conscience, if he think that this action is morally wrong.  Employee should not be forced to cooperate in immoral activities.
  • 21.
    WHISTLE BLOWING  Anattempt by a member or former member of an organization to disclose wrongdoing in or by the organization  It can be internal or External;  If any wrong action is reported only to those higher in the organization, it is internal whistle blowing.  if any wrong action is reported outside the organization, such as, newspapers, government agencies or any public interest groups, then it is External whistle blowing.
  • 22.
    RIGHT TO PARTICIPATE& PARTICIPATORY MANAGEMENT  Right of individual to participate in decision making  Allowed to freely express criticism, recieve accurate information about decisions that will affect them.
  • 23.
    EMPLOYMENT AT WILL The employer has the right to decide freely who will work for the buisiness,  Employer has the right to hire, fire or promote employees of the buisiness.  The employee has no right to criticise or object on his decision.
  • 24.
    EMPLOYEE RIGHTS ANDPLANT CLOSINGS  Service Economy: This economy consists of employees which consists largely on providing services to others.  Examples of this economy is Banking, restaurant, legal, educational, software design, fashion design and medical industries.  Manufacturing Economy: An economy in which a large portion of employees are engaged in work that is aimed at producing manufactured products.  Examples of this economy is auto or steel industries
  • 25.
    UNIONS AND THERIGHT TO ORGANIZE  workers also have the right to establish and run unions for achievement of their wants.  Right of all workers to be treated as a free and equal person
  • 26.
    ORGANIZATIONAL POLITICS  Theaim of the organization politics is to advance the interest of one individual or group. There are following kind of tactics which affect the person;  Blaming or attacking others  Controlling information  Developing a base of support for ones ideas  Image building  Ingratiation  Associating with the influential  Forming groups  Creating obligations
  • 27.
    THE UTILITY OFGOALS  Utilitarian principle requires that managers pursue those goals that are greatly beneficial for the organization.  Utilitarianism implies that the individual manager should avoid harming the organization.
  • 28.
    THE CARING ORGANIZATION Better economic performance  Trust flourish between the employees.  Lowers the costs of running an organization  Reduces cost of disciplinary actions  Creates customer value for the customers
  • 29.
    CASE STUDY  GAPis a chain of retail stores have contract with some 3000 supplier factories.
  • 30.
     Paul Presslerpresident and chief executive officer of gap inc, looked over draft of company’s forthcoming social responsibility report 2004, described the problems faced by the labor
  • 31.
    The lawsuit hadbeen filled on behalf of workers on jan 1991.Acc to lawsuit:  Saipan factories violated the human rights of their workers  Label their clothes as MADE IN U.S.A
  • 32.
     IN 1995the New Times columnist reported on a factory in EL Salvador that made clothes for gap. She said Judith vireo is an 18 year old at a maquiladora plant. she was paid 56 cents an hour.  NLC (national labor committee) investigate on it. brought her to U.S at press confrence.and she describes the reality to the world that how they were being treated.
  • 33.
     Gap pointedout it is the responsibility of ,mandarin plant not there responsibility.  Finally acc to NLC demands they hire the third party to monitor work conditions in the plant.
  • 34.
     NlC andother human rights in front of gap stores everywhere protested. generated enormous negative publicity for Gap detailing various violations workers being forced to work overtime without pay  workers not being denied access to bathrooms  use of child labor: 13 year old girls working 13 hour shifts  harassment of workers trying to organize
  • 35.
     Saipan isthe largest of 14 that together make up the Commonwealth of the Northern Mariana Islands (CNMI) The Saipan Suit against Gap and 17 other retailers
  • 36.
     The suitsaccusations  workers were hired under false pretenses and bound to exploitative agreements  ads promised "well-paying jobs in the U.S.A.  had to pay recruitment fees of $5000 to be deducted from their paychecks  had to agree not to marry, not to participate in political or religious activities,, not to ask for salary increases  forced to live in "company towns"  overpriced at $200/month  with overcrowded and unsanitary conditions  forced unpaid overtime
  • 37.
     widespread violationsof U.S. health and safety laws  deceptive advertising of the clothes as "Made in the USA" which implied to consumers that the garments were made in compliance with U.S. labor laws and guidelines
  • 38.
     Ap's response added labor code previsions  safe and healthy working and living conditions for foreign workers are to be maintained  foreign workers must be allowed to seek other employment & to return home at will  all future contracts with Saipan factories to  require safe healthy working conditions  uphold workers' rights to marry and engage in political, religious, & union activities  prohibit of recruitment fees
  • 39.
     Gap commissionsa public report to provide full details of all the problems the company faced, the companies attempts to deal with the plight or garment workers, and detailed data on conditions in all factories supplying Gap  admitted "few factories, if any, are in full compliance [with the Gap labor code] all of the time"  noted that 25-50 percent of its Central American suppliers had been cited for paying below-minimum wages  made this troubling admission" "that [union rights] abuses are difficult to discover and prove and even harder to resolve ... violations of our code's freedom of association requirement are rarely as straightforward as other issues, such as health and safety problems"
  • 40.
     Charles Kernaghanof the NLC's reservations: "In economies that are paying poverty wages, when people have no rights and no power, what you end up monitoring are well-run prisons. Sure, factories will be cleaned up.
  • 41.
  • 42.
     Is acompany like Gap morally responsible for the way its suppliers treat their workers?  Yes they are morally responsible .
  • 43.
     Should companieslike Gap attempt to get their suppliers to pay more than the local industries standard when it is insufficient to live on ? Should they pay wages in the third world that are equivalent to U.S wages?  Yes. Employees must get the wages equivalent to U.S standards.
  • 44.
     In yourview, is Gap's use of the labels "Made in the USA" or "Made in Northern Mariana Islands (USA)" deceptive? Explain.  Yes because it does not met the standards
  • 45.
     In yourview, and in the light of the fact that Gap's own monitors had not reported the sweatshop conditions and unpaid overtime in its Saipan factories that these were in compliance with all applicable worker health and safety laws, was it right for Gap to settle the lawsuit? Should Gap have settled the lawsuit? Explain.  Yes as it gives the bad image of the company
  • 46.
     in lightof the long history of labor problems that Gap has had to contend with, what recommendation or recommendations would you make to Paul Pressler concerning what the company should now do to deal with these and future problems? Explain how your recommendations will effectively solve these problems for Gap.
  • 47.
     I thinkthey should have some permanents employees whose duty is to monitor the activates of the suppliers company.
  • 48.
     in yourjudgment, how effective would you expect the release of the company's Social Responsibility Report 2004 to be? From an ethical point of view, in in light of the company's responsibilities to its various stakeholders, should the report have been released?  This report must be released as it gives a view that company want to bring a correct change and in future will take serious action against unethical actions
  • 49.
     What otherissues do you believe this case raises or what else to you think it shows?  I think this case raises the issue of labor problems , it shows how company exploit their employees.it also shows how companies cheat their consumers