MPH5281 Management Theory and Practice : Marketing Department
Apply at least two theoretical concepts from managerial ethics to examine this dilemma critically.
Go on to examine and critically evaluate how these theoretical concepts influence managerial practices in the chosen organisation.
In conclusion, reflect critically on how leaders may ensure organisational decisions are made ethically.
Academic and professional communication skills: You must follow an essay structure that is at a minimum an introduction; a main body that outlines the argument, analyses the material you have researched and assesses this according to the guidelines above; and a conclusion.
Answer:
Introduction:
Business organizations while running their wings in the market have to follow a particular value, belief or principle in order to maintain the organizational image and reputation. Business ethics can be considered as a part of professional principles with the help of which business experts tend to make distinguish between right or wrong. With the competitive business environment the needs and demands of the customers are changing gradually. In order to satisfy the customers’ needs and demands the business organizations have to maintain ethical believes and principles in gaining brand identity. It has been observed in last five years that large number of companies belonging to the retail sectors has faced innumerable issues due to their ethical dilemmas. The customers after showing the ethical dilemmas have showed their intense reluctance in using the products and services from the organizations due to ethical issues. On the other hand, the existing staffs have refused to provide their best endeavor in services due to the ethical dilemmas happening at the workplace. In this kind of situation the business experts are facing innumerable difficulties in running their entire process of the business successfully.
Woolworths is primarily known as one of the most prestigious companies occupying a predominant place in the realm retail industry. After starting their journey from Australian retail market, this particular organization has expanded their entire business process in the market of New Zealand as well. Woolworths is possessed with more than 30 stores all over Australia by involving large number of employees at the workplace (woolworths.com.au, 2017). This particular company after increasing their entire business reputation in the realm of retail sector has to deal with 28 million customers in every day. However, in last two years Woolworths is facing some of the major ethical issues due to which the customer service executives are facing difficulties in maintaining their business recognition. After the departure of Tony Phillip, the chief marker of Woolworths, the entire marketing and promotional activities of the company has been demolished.
Due to the sudden entrance of new MD of food and liquor the marketing strategies and policies formed by Phillips has been driven away. In this kind of situation, Phillips being the chief of marketing sector has decided to leave the organization (Jones & Jones, 2017). However, after the departure of this individual, the marketing department of Woolworths has faced innumerable difficulties in drawing the customers’ attention by providing attractive campaigns and advertisements. As a result, the business experts intended to accuse the marketing executives due to their lack of performance. It is undeniable that the departure of Phillip left a major impact on the overall performance level of marketing executives. The employees lost an efficient leader. Fahie (2014) stated that the absence of Phillip caused lack of performance, lack of communication, lack of proper behavioral approach and so many. Automatically, the customers are facing difficulties in receiving the services at proper time. As a result, the entire process of business has lost its systematic and rhythmic flow.
Among most of the ethical theories the theory of utilitarian is the most prominent. As per the concept of this particular theory, utilitarianism is the consequence of an action. To a utilitarian, the choice that yields the greatest benefit to the most people is the one that is ethically correct. Weiss (2014) opined that the primary objective of utilitarian is to increasing the amount of happiness by minimizing the sufferings around the human beings. Human beings are possessed with innumerable potentialities. Therefore, as per the belief of the utilitarian, the human being and their potentiality should be utilized. In the current business scenario of Woolworths it has been observed that the business managers are focusing on organizational profits rather than the sentiments of organizational employees. In order to gain brand identity and image the business managers of Woolworths intended to impose their own decision on the employees. As emphasized by Collis and Hussey (2013), after the departure of Tony Phillip, the marketing executives could not share their own decision with the managers regarding the success of business process. The managers even did not intend to interact with the employees properly in order to know their problems that they are facing at the workplace. As a result, the marketing executives have faced innumerable difficulties in providing good services for the business organization and to achieve business success. On the other hand, in order to increase the revenue growth of Woolworths, the managers did not focus on providing necessary facilities and benefits to the employees. Thiel et al., (2012) stated that extreme level of work pressure de-motivated the organizational employees effectively. Therefore, the theory of Utilitarian believes that human potentiality can be utilized only when the individual has the scope of spontaneous reaction. Extreme level of work pressure and formal attitude towards the employees demolish the entire performance level of the employees. By implementing the theory of utilitarianism the employees’ potential resources should be used by motivating them towards the service process.
Ford and Richardson (2013) opined that the theory of deontology implies that people should be judged based on morality rather than its professional outlooks only. People belonging to different geographical markets are associated with a particular business organization. Woolworths is not exceptional to that. This particular organization has hired large number of employees who are from different cultures and religious backgrounds. At the very initial stage, the human resource managers have to provide an effective training to those employees for developing their communication skill as well as professional competency. In last two years it has been observed that the human resource managers tend to show their reluctance in communicating with the new employees properly. In addition, they are not provided appropriate training process based on which employees can develop their communication skill along with professional outlook. However, in this kind of situation, those employees after being appointed within the business process fail to communicate with the managers properly. Shaw and Barry (2015) stated that automatically performance level of the employees gets decreased. As per the theory of deontology the business managers should treat the employees with sympathetic outlook for receiving good performances. Only professional approach is not suitable for receiving best endeavor from the employees.
As per the report, it has been observed that the business managers of Woolworths are not interacting with the employees properly. As a result, the managers do not have any update regarding the needs and demands of employees. In this kind of situation, the performance level of the existing workers is decreasing rapidly. Ardichvili et al., (2012) stated that as per the theory of deontology, it is highly evident that good communication, co-operative outlook, good rapport with the team members is the key pillar of success. By implementing participative leadership style, the business managers can receive necessary feedback from the employees regarding customers’ needs and demands. In last few years the business managers of Woolworths intended to use autocratic style of leadership sometimes. With the help of this particular form of leadership style employees got least opportunities to share their own opinion regarding the organizational success. However, while performing within the organization employees wish to share their own views as well for rendering the business success. Giacalone and Promislo (2013) stated that the business managers on the other hand, can get the scope to make a collective decision after receiving feedback from the employees. However, this particular form of leadership style decreases the performance level of employees. However, after facing these kinds of issues Woolworths should take an immediate step for reducing the ethical dilemmas.
Morris and McDonald (2013) stated that as per managerial ethics business organizations have to be a specific value; culture and belief for maintain organizational behavior. In order to maintain positive climate among the stakeholders some of the major behavioral approaches have to be used. Maintaining effective communication with the employees is one of the most significant behavioral approaches that every manager of Woolworths should maintain. Hoffman, Frederick and Schwartz (2014) opined that human resource managers of this organization have recruited large number of business employees within the organization who are belonging to different cultural as well as religious backgrounds. Automatically, the employees fail to provide an effective interaction with the managers. On the other hand, the business managers as well do not interact with them properly. However, the lack of communication has become a major cause of ethical dilemma happening at the workplace of Woolworths. In order to overcome this situation, the business manager can arrange an interpersonal communication session.
As emphasized by Loi, Lam and Chan (2012), with the help of interpersonal communication session the business managers can directly communicate with the employees in order to get a direct feedback from the business employees about their problems facing at the workplace. Business managers of Woolworths before making organizational strategies and policies can use democratic form of leadership style at the workplace. With the help of democratic form of leadership style both the managers and employees would equally participate within the teamwork. As a result, the employees would like to show their courageous outlook for perforating well towards the success of business organization. On the other hand, democratic form of leadership style is very much effective for taking collective decision. However, the entire form of business performance would become failure due to the lack of cooperation between the business managers and employees.
On the other hand, in order to show the positive approach on the stakeholders at workplace the business managers have to give equal priority and response to every individual stakeholders belonging to different cultural backgrounds. After implementing diversity management, the HR managers of Woolworths have appointed the employees as per their skill and competency level rather than their religious backgrounds. Simha and Cullen (2012) stated that after appointing within the business process those employees have to face immense challenges in communicating with the other colleagues. However, in this particular study, the business managers can be advised in treating every individual employee with equal respect and dignity. Like the same way, the customers belonging from different geographical boundaries should be treated equally as well. As a result, customers from various cultural backgrounds would not have to face trouble in purchasing the products and services. Therefore, the performance level of stakeholders is entirely dependent on the behavioral approach of organizational managers. Any kind of ethical dilemmas happening at the workplace may cause a serious harm for rendering the success of business. Therefore, the business experts of Woolworths should overcome those ethical dilemmas that the organization has faced already.
Ciulla (2014) opined that gaining back organizational image and reputation of Woolworths is highly important for maintaining sustainability. In order to render positive behavioral climate towards the organizational stakeholders the business managers of Woolworths can use some of the major strategies and policies. Treating every single employee with equal respect and dignity is one of the most effective factors based on which Woolworths can avoid ethical dilemmas. Like the same way, the service providers of Woolworths should give equal priority to both low cost customers as well as premium customers while providing organizational services. The employees who have joined within the organization recently should get an effective training process. By getting an effective training employees would be able to maintain their professional outlook at the workplace. In addition, the business managers should maintain an effective communication skill and technological skill to help their team members when it is necessary. As stated by Giacalone and Promislo (2013), the business managers should be flexible with non-verbal communication style as well. With the help of non-verbal communication style the managers would be able to communicate with those individuals who are having communication problem. On the other hand, Woolworths has faced a major issue in last few years regarding their product quality. The vegetable that the suppliers are producing to the organization is immature. As a result, the customers have showed their dissatisfaction after using the product. In this kind of situation it is undeniable that maintaining superior quality of products along with services is highly important based on which Woolworths would be able to gain the impression of customers.
Leadership and the organizational performance have a profound relationship that has been explored in previous researches. Leaders are required to understand the significance of the influential leaderships and the job satisfaction and performance of the employees. The leaders tend to control both the material and interpersonal punishments and rewards within the work place which mostly contributes in shaping the behavior of the employees and tends to influence the motivational extent, performance and attitude of the employees (Ford & Richardson, 2013). The leadership styles can largely affect the self portrayal of the employees that results into the a positive way if the leader is fair, supportive and encouraging, however at the same time this can turn into a negative way if the leader has an inconsistent, unsupportive and critical way of treating the employees. In the retail store chain like Woolworths, the leaders are to deal with several challenges that may affect the employee performances in a significant way (Fernie & Sparks, 2014). The leadership styles contribute in influencing the overall performance of the organization along with the individual performance of the employees. The impacts of different leadership styles are discussed below:
Autocratic leadership style
This leadership style refers to the distinct division of the employees and the leaders. The autocratic leaders tend to make their own decisions without any kind of involvement and input from the employees. These leaders tend to portray their confidence and they take the entire responsibility in the decision making process and strategic planning of the company. However Schramm-Klein, Morschett & Swoboda, (2015) has identified that even though the autocratic leaders tend to display lesser creativity than the other leadership styles, the autocratic leaders work best while it comes to taking fast decisions without any kind of involvement from the employees. However employees feel more disconnected if the leaders are following this style. However within the work environment of Woolworths the leaders need to ensure that they do not become rigid, rather they require allowing a certain extent of ownership for the employees.
Participative Leadership
This leadership style focuses more on the employees and emphasizes that the management of the retail chain have the provision of offering guidance to the departments and the team while they accept the individual inputs from the employees (Yawar & Seuring, 2015). Even though the leaders tend to make the final decision on their own they encourage suggestions and feedbacks from the employees. In Woolworths the leaders are mostly seen to follow this leadership style so that each of the employees has input to the decision making.
Delegative Leadership
This leadership style is considered to be having a stark contrast with the other leadership styles as the delegative leaders hardly make decisions on their own and they mostly leave all the decisions to the employees and the trusted team members (Fahie, 2014). However this leadership style can carry several ethical dilemmas with it as it may give rise to the conflict of interests between the team members and they may make confusing and blurred decisions. There may be a lack of positivity and motivation within the work environment.
Therefore it can be understood that the different leadership styles may have varied impacts on the employee performance and a negative leadership style can enhance more ethical dilemmas within the work environment. Therefore Woolworths need to adapt a leadership style that does not have any negative or derogatory impact on the overall performance of the organization.
The business world is a pragmatic one. It is possible within the huge business organizations such as Woolworths to have a difference in opinion followed by a ethical dilemma within the organization. Weiss (2014) indicate that there are two distinctive perspectives on the work place ethics, on one hand the employers may treat their employees as a mean of producing great productivity and a harmony within the work place, however on the other hand the employers may treat the employees in a way that is regardless of any interest of productivity. In the recent time there are several cases of irregularities and scandals within Woolworths, therefore the organization requires to have the ethical guidelines in order to build and maintain the ethical work place guidelines that each of the employees, irrespective of their position within the organization, should adhere to. The leaders of the organization should have some common workplace ethics such as being responsible and punctual for the assigned work, dressing in a professional way; have the team spirit to work within the team, having a positive attitude towards work etc (Morris & McDonald, 2013). However, there may be some employees who would have issues with the ethical guidelines of the organization. Therefore Woolworths may have the professional ways for training the employees to act ethical in their professional realm. Therefore the company can adapt few methods to create a workable environment without the ethical dilemmas within the organization, such as,
A written code of conduct
The primary purpose of having a written code of conduct is to make the employees know the acceptable and unacceptable things within the organization,
Ethics Training Program
All the employees should be trained for a ethical training program that are led by the top management. These initiatives may help the employees to cultivate the ethical codes of the employees.
Conclusion
In conclusion it can be said that all the theoretical concepts indicates towards having an ethical framework for forcing the methodical review of the actions of the employees against the long term perspective of the stakeholders who may be affected or influenced by the actions of the employees. The behavioral science indicates that the distinct failure of adhering to the ethical framework may not point out towards a moral flaw but it may be a serious failure of the contingency. Therefore Woolworths needs to have an ethical framework that can act as a role model for the employees. The senior management also has a serious role to play in having a work place free from any kind of ethical dilemma as senior employees behaving ethically can be an instance for the junior employees to emulate. However there should be proper communication between the employees and the management as well, so that the entire organization can grow by adapting suitable ethical decisions.
Reference List:
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