Chapter 6-Professionalism and Ethics

Citizenship Roles

Rights and Responsibilities

Organisational culture and ethical behaviour

• organisation culture = common perception amongst employees about what’s right vs. wrong and acceptable vs. unacceptable

  • common understanding created when business states their expectations regarding behaviour etc.

  • guides relationships within the business and stakeholders outside the business; enforcing the right culture and punishing anyone who goes again it is important

• how is a culture of ethical behaviour established in the business?

  • first step is to recruit people who will behave in an ethical manner

  • management should lead by example = value-based leadership

  • formal policies and ethical codes should constantly be reminded to employees through training sessions, informal conversations, and stories shared among employees

Ethics in Marketing

• ethical vs. legal:

  • (legal but unethical) = selling bread and medicine for cheap, but you exploit the poor in the process and make unreasonable profits

  • (illegal but ethical) = selling petrol bellow the government’s stipulated price which helps consumers

• unethical behaviour in marketing:

  • materialism = false needs created e.g. advertising alcohol to rehabilitated alcoholics

  • naming products deceptively e.g. calling pizza a “slimming meal”

  • deceiving customers by selling second-hand goods as new items

  • competitive advertising is illegal and also unethical in SA

  • using unacceptable language, discriminating against people in any way etc.

Contracts and contractual obligations

• contract = written document or verbal agreement that is legally binding between two or more parties

→ two parties = person making offer & person accepting the contract

• legally binding = court forces parties to honour agreements stated in the contract

  • elements that make the contract legally binding:

    - Contractual capacity: legal age to enter contract is 18 in SA

    - Sound mind: person entering contract shouldn’t be under any substance influence or suffer from mental illness

    - Reasonable: conditions have to be reasonable and fair

    - Legal: duties carried out as part of contract must be legal

    - Possible: activities that are part of the contract must be possible to achieve

• a breach in contract occurs when:

  • any of the above requirements aren’t met

  • either party fails to fulfil requirements of the contract

  • false or misleading information that forms part of the contract

  • someone is forced to or tricked into signing the contract

  • requirements of contract were unclear to one of the parties

    NB!! “not knowing” is not an excuse in the eyes of the law

Employment Contracts

=an agreement between an employer and employee where:

• the employee undertakes to perform certain duties and to meet certain deadlines

• employer promises to remunerate employee for work done

• contract has to be in line with BCEA (Basic Conditions of Employment Act) which includes:

  • name and address of both parties

  • job title

  • job description and responsibilities

  • remuneration structure (salary scale)

  • leave details

  • notice period

  • code of conduct

Insurance Contract

• entered into between two parties, namely the insurer and the insured

  • insurer is company that carries risk and promises to protect insured again possibility of loss, provided the insured meets certain conditions

  • insured is the person who wants assets protected, makes monthly payments (premium) to insurer to transfer the risk to them

Lease Agreement

• entered into between the lessor and the lessee

  • lessor is the owner of the goods

  • lessee uses goods for an agreed upon (usually monthly) fee, but goods never become property of the lessee

    e.g. furniture, machinery, and tools

Instalment sale/Hire Purchase Agreements

• contract exists when a seller allows a buyer to:

  • pay a deposit

  • immediately take possession of the goods

  • pay the goods off in monthly instalments

• ownership is only transferred to buyer when last instalment is settled

• seller usually adds interest to amount being paid off by the buyer

• instalment sale agreement is seen as a credit transaction, National Credit Act (NCA) must be applied

  • NCA helps protect rights of both parties that enter instalment sale contract

Rental Agreements

• contract between landlord and tenant, tenant rents property from landlord

  • tenant pays a monthly amount agreed upon by both parties

  • property being rented never becomes property of tenant

• rental amount is usually reviewed yearly

• Rental Housing Act (RHA) looks after rights of both parties involved in agreement

Franchising

• legal contract between:

  • franchisor (original owner of business concept)

  • franchisee (person who pays to use business concept to generate income)

• agreement signed by both parties, stipulates relationship, rights, and responsibilities of both parties

• franchisor promises to provide ongoing training, support, and allow franchisee to use brand (business concept)

• franchisee promises to pay a once off lump sum and monthly/quarterly/yearly fee for use of business concept

Self-management in a business context

• very important the manager realises the role that their performance plays in the overall success or failure of the business

  • if manager is effective in their role, business will benefit as a whole

  • if manger is ineffective, their inefficiencies = poor performance = poorly motivated employees, lack of teamwork, unhappy clients

• knowing personal strengths and weaknesses and how they can impact business is an important part of being an effective manager

  • manager that knows skills they lack in can use insight to surround themselves with people who compensate for that lack

  • thus it’s important that manager can take control of their own learning and development

  • manager should work on weaknesses and use strengths to create success for the business

Personal Development

• before knowing one’s personal development goals, one has to do a self-assessment to understand:

  • who you are as an individual (skills, knowledge, thinking process and developmental ability)

  • the effect (positive and/or negative) that you have on people around you and your working environment

• personal development = process of “reconstruction” where one improves themselves by learning new knowledge and skills through different experiences to perform better in unfamiliar situations

• if manager realises that they are only human and can’t handle all tasks, they can use that insight to surround themselves with people who compensate for potential weaknesses in certain tasks

• JOHARI Window = tool that can be used to help someone understand themselves better

(1) Open/Free Area:

• information that person knows about themselves and is known by other people

(2) Blind Area:

• area that is completed by team members → listing perceptions regarding team member’s knowledge, skills, and value

• clarifies issues that person doesn’t know about themselves

(3) Hidden Area:

• highlights what other people don’t know about you

• in order to achieve success in the team (business), people have to know what each is capable of (or not)

(4) Unknown Area:

• refers to information (such as hidden potential, emotions and fears) that is unknown to individual and others

• goal is to minimise info that could fall under this area (by getting to know yourself) because experience in a similar situation has taught you how you’ll react

• SWOT Analysis = tool used to gain information about oneself

Personal strengths = skills, experience, and/or knowledge

Personal weaknesses = disabilities, deficiencies, lack of skills and/or lack of knowledge

Opportunities = available resources, new development (technology), diversity etc.

Threats = result of constraints (time, money), competitors, changes in legislation, unmotivated friends/colleagues etc.

Skills Development

• Time Management

• it’s important to learn to manage time productively by planning activities and tasks to ensure enough attention is given to each task

• equally important that role of manager isn’t compromised due to poor time management

• examples of time wasters: meetings not starting on time, meetings not being effectively managed, unpleasant tasks being left till last, poor prioritising of tasks, poor delegation

• Delegation

• being able to delegate without micromanaging is an important skill that managers need to master

• manager has to identify skills and abilities of each employee so that work is delegated effectively

• delegation can be used to motivate and empower team members; manager has to explain to workers that responsibilities require accountability for one’s actions

• when delegating, manager should keep the following principles in mind:

  • know your own abilities

  • understand the abilities of others

  • understand different job roles

  • trust your employees

  • communicate effectively

  • empower your employees

  • feedback and control

• Workload and Stress

• hard for managers to plan their own days due to unplanned interruptions which adds stress to manager

• stress is a natural part of daily life, could have a positive or negative and destructive outcome depending on how it is managed

• factors that lead to stress include change, workload, too much responsibility, poor working conditions, job insecurity, and financial insecurity

• first step is to recognise symptoms of stress which include low self-esteem, anxiety, irritability, trouble concentrating, medical issues (high blood pressure, depression, etc.)

• manager should learn to cope with own stress and identify stressors that may have a negative effect on the productivity of employees, and help them manage the stress

• techniques to handle stress:

  • know what causes stress in your life

  • establish boundaries and learn to say no to certain things

  • plan activities and deadlines (DON’T PROCRASTINATE!)

  • learn to relax and take a break

  • learn to ask for help, but don’t transfer responsibility to someone else

  • eat well and get enough sleep

• Communication

• communication includes a variety of formats, such as:

  • verbal communication (talking face-to-face or on Zoom)

  • written communication (emails, letters, memos, SMS)

  • body language

• body language is important during face-to-face communication as body language also projects a message

• to become a good communicator a manager has to work on their communication skills which include:

  • good speaker

  • sound use of electric communication

  • good listener

  • interpreting non-verbal messages

  • confident over the telephone

• Assertiveness

• middle ground between aggression and passivity

• being assertive while remaining calm means person can voice their views without emotion confusing the meaning of the message

• Technological skills

• technology is becoming an important element that supports role of manager

• has potential to simplify processes but if manager is unfamiliar with technology, it may make the task more difficult and less productive

Balanced Work-Life

= balance between time and effort put into work situation vs. time and effort invested in one’s private life

• difficult to maintain a balance because managers are expected to take unfinished work home, answer calls and emails 24/7 etc.

• research shows that employees with a work-life balance are more productive; they are less stressed, more motivated, and productive

• BCEA (Basic Conditions of Employment Act) prescribes working hours (daily and weekly) to protect employees from being exploited

  • also prescribes annual leave, sick leave, and family responsibility leave that workers are entitled to

• businesses focus on helping employees achieve a balance by:

  • allowing flexible working hours and/or working from home

  • provide support to employees during crisis e.g. burst geyser, sick child etc.

Ethics

= difference between right and wrong

• i’s important that manager is seen to be ethical in their talk and actions

• managers make decisions based on skills, knowledge, and experiences

  • manager should keep vision, mission, and values of business in mind when making decisions AND ensure the decisions have a positive impact on the stakeholders of the business

  • legal requirement have to be adhered to, for example the CPA (Consumers Protection Act) advises how, when, and where to advertise the product or service

• it’s difficult to please everybody which is why manager has to gather all information about the topic before a final decision is made

• consistency is crucial to ensure fairness to all employees and other stakeholders

• following principles should be kept in mind when making business decisions:

  • be guided by pre-existing rules

  • develop a sense of justice and fairness

  • allow for input from others

  • choose the way which is most beneficial to the needs of most employees

  • follow your gut

  • develop an understanding of values and core identity of the business

  • ensure that you don’t act out of self-interest

Professional Image

• managers need to be aware of image they project in the working environment

• professional image will improve level of respect from different stakeholders

• professional image refers to:

  • dress appropriately for the job

  • ways of interaction with people

  • manner in which work is completed

  • the way you conduct yourself around people

  • the type of decisions you make

  • your footprint on social media

• resources used to improve a manager’s professional image include websites, books, courses, life coaches, image consultants etc.

Personal Goals

= a statement regarding what a person would like to achieve

• people’s goals direct their learning (skills, knowledge, and experience) and daily actions; personal goals are a critical component of professional development

• personal goals act as motivational tools to help individual maintain high level of performance

• goals must be SMART: Specific, Manageable, Achievable, Realistic, and Time-based

Self-Knowledge, Self-Confidence, and Adaptability

• self-knowledge = knowing oneself and understanding what drives personal motivation

  • knowing oneself assists with a strong level of self-confidence

• self-confidence = level of trust one places on one’s ability to perform a particular task or job

  • accepting oneself with all of your flaws

  • core competency of successful people; belief one has in oneself to perform at a particular level

  • self-confident people focus on their strengths which help them approach new tasks assuredly

• adaptability = a person being flexible around different situations and tasks

  • people who are adaptable are more likely to accept change

  • research shows that people who are more willing to adapt = more likely to take risks = self-confidence = better chance of success