BUSINESS SECTION 2
ETHICAL AND LEGAL ISSUES
Privacy Violation
Ethical Responsibilities ETHICAL ISSUES
Impact on Users
Data Protection Laws
Consumer Protection LEGAL ISSUES
Criminal Activity
Money Laundering- disguising illegally obtained funds so that they appear legitimate.
IN THE ESTABLISMENT OF BUSINESSES
ensuring that capital is legally obtained.
The business must make payments to NIS and government taxes.
PRINCIPLES THAT MUST BE ADOPTED
an organization codes of ethics
policies on environmental issues
handling of personal information
CONSEQUENCES OF UNETHICAL PRACTICES
misleading Advertisement - Deceptive advertisement is both illegal & unethical, It violates the trust of customer.
Withholding tax- Cheat government of revenue
Unethical disposal of waste- pollution and diseases
Money Laundering- leads to distortion in the national economy.
INTERNAL ORGANIZATIONAL ENVIRONMENT
Manager- a leader who is responsible for efficiently organizing people, resources and finance. through the establishment of logical systems and procedures
Management- process of bringing factors of production together to ensure organizational goals are achieved.
FUNCTIONS OF MANAGEMENT
Planning: creating plans that set out short-term and long-term goals to achieve the overall goals of a business.
Organizing: this involves bringing together the factors of production to accomplish the goals of the business.
Directing: this involves getting people to perform duties efficiently and effectively.
Controlling: This involves setting standards to ensure goals are being achieved by monitoring employees and making necessary corrections.
Coordinating: this involves bringing together the various elements of a plan or an organizations resource in the business so that they work together harmoniously.
Delegating: Assigning tasks to subordinates
Motivating: Encouraging and influencing workers to be more productive in doing their work
RESPONIBLITIES OF MANAGEMENT TO
Owners& shareholders- to efficiently run the organization to create profits or surpluses
Employees- provide motivation and give clear direction
Managers- to give clear direction and motivation
Society- ensure laws are followed, practice fairness and support charity to fulfill social responsibility
Customers- quality goods and services at reasonable prices
Government- ensure government rules and laws are followed, on-time tax payments and deductions from employees’ salaries.
DEFINITION OF CONCEPTS
Line of authority- When roles and responsibilities of each person in an organization are defined.
Hierarchy- A system that ranks things according to power or importance.
Silo - when a business has a group of experts separated by departments, specialization or location.
Chain of command- reporting relationship between employees from bottom to top.
Span of control- # of subordinates or direct reports a supervisor is responsible for.
Tall Organization- when a business is broken down into several layers with executives on top and normal employees on bottom.
Flat Organization- there is no hierarchical levels between employees.
Organizational Chart- A visual depiction of the hierarchical structure of an organization
Leadership: The ability of an individual or group to influence and guide followers or members of an organization, society or team.
Character traits: the individual qualities that makes up a person’s overall character
CHARACTERISTICS OF LEADERSHIP
Honesty
Flexibility
Focus
Trustworthiness
ability to make intelligent decisions.
Leadership Styles
Democratic: A leader who seeks input and considers team feedback when making decisions often promotes greater employee engagement.
Autocratic: has individual control over all decisions with little input from group members
Charismatic: uses both verbal and non-verbal communication to charm, influence, and persuade others in achieving their goals.
Laissez-faire: takes a hands-off approach to leadership and gives others freedom to make decisions.
Transformational: inspires employees to strive beyond required expectations to work toward a shared vision
STAFF RELATIONS AND MANAGEMENT
Conflict- a disagreement between individuals, groups or organizations that has risen due to a difference in views and decisions made.
Internal Sources of Conflict
Poor working conditions
Competition among employees regarding performance and
promotion
Breakdown in communications leading to false information
Industrial relation issues such as Breach of Labour or Industry Law
Unfair treatment of employee
Unfair dismissal
Management or leadership issues
Strategies used by employers during conflict
Lock Out:Employees are told to stay home; organization closes its doors
Scab Labour:Employees replacing those on strike
Negotiation:The organization and union discuss and bargain to arrive at an
agreement
Strategies used by employees during conflict
Strike Action: Union permits employees to stop working.
Work to Rule: doing only what is officially required in the job description or employment contract this slows down production.
Go-Slow: workers work at a slow pace, taking them longer to complete a task
Picketing: a form of protest that is done by gathering outside of the workplace where an event is taking place aiming to discourage others from going inside or to get attention from the public.
Conflict Resolution: a process of managing and resolving disagreements or disputes between two or more parties.
Effective conflict resolution can lead to improved communication, stronger relationships and greater productivity.
CONFLICT RESOLUTION
RECONCILATION
Reconciliation, also termed compromise, involves both parties willingly sacrificing Some needs for a mutual agreement, avoiding escalation of the conflict.
It is suitable when achieving complete satisfaction for both sides is completely not feasible, serving as a temporary measure until a more permanent solution can be implemented.
AVOIDANCE
A conflict resolution method characterized by ignoring the Issue to sidestep engagement.
While it may be suitable in situations lacking clear solutions or when parties need time to cool down, avoidance can lead to unresolved conflicts and potential friction between disagreeing parties
TRADE UNIONS
A group of workers forming a trade union engages in collective bargaining to negotiate for improved wages, working conditioning and dispute resolution.
The Union, represented by a Shop Steward, advocates for members' interests at the union meetings, with members contributing through membership fees when difficulties arise in resolving disputes with management.
GRIEVANCE PROCEDURES.
A grievance exists when a labour law or work code has been violated, a worker is treated unfairly or if health and safety are threatened.
The grievance procedure is the process used to resolve the conflict involving the trade union representative if there is no agreement The following steps will take place:
Conciliation: third party will be present but will not give any solutions goal is to ensure good comm takes place
Mediation: Third party proposes solutions which are then considered- cant force parties to agree
Arbitration: Third party is asked to give a solution which they will both accept
Guidelines for establishing good relations between managers and employees:
Good communication with workers
Improve working conditions
Motivating workers
Practicing good leadership
Strategies for Motivating Employees
Financial – Increase in salary or bonuses.
Non-Financial (also called Fringe Benefits) – a company car, bursaries for children’s education, free or subsidized meals at work, use of a mobile phone.
What is teamwork?
Teamwork is a group of two or more people interacting and coordinating their work and ideas to accomplish a common goal or objective.
Advantages
The quality of decision making is improved by sharing ideas
Quantity and quality of output would be abundant and improved
Ensures continuity
They can motivate each other
Builds good human relationships
Disadvantages
Decision making is time consuming
Conflict may arise during decision making
The cost of trading might be high
ETHICAL AND LEGAL ISSUES
Privacy Violation
Ethical Responsibilities ETHICAL ISSUES
Impact on Users
Data Protection Laws
Consumer Protection LEGAL ISSUES
Criminal Activity
Money Laundering- disguising illegally obtained funds so that they appear legitimate.
IN THE ESTABLISMENT OF BUSINESSES
ensuring that capital is legally obtained.
The business must make payments to NIS and government taxes.
PRINCIPLES THAT MUST BE ADOPTED
an organization codes of ethics
policies on environmental issues
handling of personal information
CONSEQUENCES OF UNETHICAL PRACTICES
misleading Advertisement - Deceptive advertisement is both illegal & unethical, It violates the trust of customer.
Withholding tax- Cheat government of revenue
Unethical disposal of waste- pollution and diseases
Money Laundering- leads to distortion in the national economy.
INTERNAL ORGANIZATIONAL ENVIRONMENT
Manager- a leader who is responsible for efficiently organizing people, resources and finance. through the establishment of logical systems and procedures
Management- process of bringing factors of production together to ensure organizational goals are achieved.
FUNCTIONS OF MANAGEMENT
Planning: creating plans that set out short-term and long-term goals to achieve the overall goals of a business.
Organizing: this involves bringing together the factors of production to accomplish the goals of the business.
Directing: this involves getting people to perform duties efficiently and effectively.
Controlling: This involves setting standards to ensure goals are being achieved by monitoring employees and making necessary corrections.
Coordinating: this involves bringing together the various elements of a plan or an organizations resource in the business so that they work together harmoniously.
Delegating: Assigning tasks to subordinates
Motivating: Encouraging and influencing workers to be more productive in doing their work
RESPONIBLITIES OF MANAGEMENT TO
Owners& shareholders- to efficiently run the organization to create profits or surpluses
Employees- provide motivation and give clear direction
Managers- to give clear direction and motivation
Society- ensure laws are followed, practice fairness and support charity to fulfill social responsibility
Customers- quality goods and services at reasonable prices
Government- ensure government rules and laws are followed, on-time tax payments and deductions from employees’ salaries.
DEFINITION OF CONCEPTS
Line of authority- When roles and responsibilities of each person in an organization are defined.
Hierarchy- A system that ranks things according to power or importance.
Silo - when a business has a group of experts separated by departments, specialization or location.
Chain of command- reporting relationship between employees from bottom to top.
Span of control- # of subordinates or direct reports a supervisor is responsible for.
Tall Organization- when a business is broken down into several layers with executives on top and normal employees on bottom.
Flat Organization- there is no hierarchical levels between employees.
Organizational Chart- A visual depiction of the hierarchical structure of an organization
Leadership: The ability of an individual or group to influence and guide followers or members of an organization, society or team.
Character traits: the individual qualities that makes up a person’s overall character
CHARACTERISTICS OF LEADERSHIP
Honesty
Flexibility
Focus
Trustworthiness
ability to make intelligent decisions.
Leadership Styles
Democratic: A leader who seeks input and considers team feedback when making decisions often promotes greater employee engagement.
Autocratic: has individual control over all decisions with little input from group members
Charismatic: uses both verbal and non-verbal communication to charm, influence, and persuade others in achieving their goals.
Laissez-faire: takes a hands-off approach to leadership and gives others freedom to make decisions.
Transformational: inspires employees to strive beyond required expectations to work toward a shared vision
STAFF RELATIONS AND MANAGEMENT
Conflict- a disagreement between individuals, groups or organizations that has risen due to a difference in views and decisions made.
Internal Sources of Conflict
Poor working conditions
Competition among employees regarding performance and
promotion
Breakdown in communications leading to false information
Industrial relation issues such as Breach of Labour or Industry Law
Unfair treatment of employee
Unfair dismissal
Management or leadership issues
Strategies used by employers during conflict
Lock Out:Employees are told to stay home; organization closes its doors
Scab Labour:Employees replacing those on strike
Negotiation:The organization and union discuss and bargain to arrive at an
agreement
Strategies used by employees during conflict
Strike Action: Union permits employees to stop working.
Work to Rule: doing only what is officially required in the job description or employment contract this slows down production.
Go-Slow: workers work at a slow pace, taking them longer to complete a task
Picketing: a form of protest that is done by gathering outside of the workplace where an event is taking place aiming to discourage others from going inside or to get attention from the public.
Conflict Resolution: a process of managing and resolving disagreements or disputes between two or more parties.
Effective conflict resolution can lead to improved communication, stronger relationships and greater productivity.
CONFLICT RESOLUTION
RECONCILATION
Reconciliation, also termed compromise, involves both parties willingly sacrificing Some needs for a mutual agreement, avoiding escalation of the conflict.
It is suitable when achieving complete satisfaction for both sides is completely not feasible, serving as a temporary measure until a more permanent solution can be implemented.
AVOIDANCE
A conflict resolution method characterized by ignoring the Issue to sidestep engagement.
While it may be suitable in situations lacking clear solutions or when parties need time to cool down, avoidance can lead to unresolved conflicts and potential friction between disagreeing parties
TRADE UNIONS
A group of workers forming a trade union engages in collective bargaining to negotiate for improved wages, working conditioning and dispute resolution.
The Union, represented by a Shop Steward, advocates for members' interests at the union meetings, with members contributing through membership fees when difficulties arise in resolving disputes with management.
GRIEVANCE PROCEDURES.
A grievance exists when a labour law or work code has been violated, a worker is treated unfairly or if health and safety are threatened.
The grievance procedure is the process used to resolve the conflict involving the trade union representative if there is no agreement The following steps will take place:
Conciliation: third party will be present but will not give any solutions goal is to ensure good comm takes place
Mediation: Third party proposes solutions which are then considered- cant force parties to agree
Arbitration: Third party is asked to give a solution which they will both accept
Guidelines for establishing good relations between managers and employees:
Good communication with workers
Improve working conditions
Motivating workers
Practicing good leadership
Strategies for Motivating Employees
Financial – Increase in salary or bonuses.
Non-Financial (also called Fringe Benefits) – a company car, bursaries for children’s education, free or subsidized meals at work, use of a mobile phone.
What is teamwork?
Teamwork is a group of two or more people interacting and coordinating their work and ideas to accomplish a common goal or objective.
Advantages
The quality of decision making is improved by sharing ideas
Quantity and quality of output would be abundant and improved
Ensures continuity
They can motivate each other
Builds good human relationships
Disadvantages
Decision making is time consuming
Conflict may arise during decision making
The cost of trading might be high