Quality Management and Ethics Lecture 5 ETHICS n

Quality Management and Ethics Lecture # 5

ETHICS n n Inquire into the nature and grounds of morality where morality is taken to mean moral judgments, Standards and rule of conduct. Ethics is the study of human behavior within a moral context Ethical behavior is that which falls within the limits prescribed by widely accepted moral values. Ethical questions are not always in black and white they often fall into gray area b/w the two extremes of clearly right and clearly wrong. This gray area is often clouded by personal experience, Self-interest and external pressure.

Guidelines for determining Ethical Behavior We call it Five P’s of Ethical power n Purpose: n ¨ Individual see themselves as ethical people who let their conscience be their guide and in all cases want to feel good about themselves. n Pride: ¨ Individuals apply internal guidelines and have sufficient self-esteem to make decisions that may not be popular with others.

Guidelines for determining Ethical Behavior 2 n Patience: ¨ Individuals believe right will prevail in the long run, and they are willing to wait when necessary. n Persistence: ¨ Individuals are willing to stay with an ethical course of action once it has been chosen and see it through to a positive conclusion. n Perspective: ¨ Individuals take the time to reflect and are guided by their own internal barometers when making ethical decisions.

n Factors that Influence the Ethical Behavior Ego Strength: ¨ It is the persons ability to undertake self-directed tasks and to cope with tense situation. n Machiavellianism: Cunning ¨ Is the extent to which a person will attempt to deceive and confuse others. n Locus of Control: ¨ Is the perspective of people concerning who or what controls their behavior. ¨ Two types ¨ Internal External ¨ Internal locus of control feel they control their own behavior. ¨ External locus of control feel their behavior is controlled by external factors (rules, regulations, and supervisors. )

Trust and Total Quality n Total quality cannot be successfully implemented in an organization that doesn't subscribe high standards of ethical behavior. This is because ethical behaviors builds trust, and the trust is essential ingredient in total quality.

Trust Is the lubrication that makes it possible for organization to work. n It implies n ¨ Accountability ¨ Predictability ¨ Reliability n People don’t trust other people that they don’t know. Without recognition, there can be no trust. ¨ How do you build trust with others? Simply by making promises.

Elements of Trust Communication n Interpersonal Relations n Conflict Management n Problem Solving n Teamwork n Employee involvement n Employee empowerment n Customer focus n

Managers Role in Ethics n Managers have three Responsibilities ¨ Responsible for setting an example of Ethical behavior ¨ They are responsible for helping employees make ethical choices ¨ They are responsible for helping employees to fallow the behavior after the appropriate choice has been made.

Approaches to Ethics n There are three different approaches. ¨ Best-Ration Approach ¨ Black-and-white ¨ Full-Potential Approach

Best-Ration Approach It is the approach that is based on beliefs that people are basically good and under the right circumstances they behave ethically. but they can be behave unethically under certain conditions. n It is the mangers responsibility to create condition that promote ethical behavior and try to maintain the best possible ration of good choices to bad choices and ethical behavior to unethical behavior. n

Black-and-white Approach n Under this approach ¨ Right is right, wrong is wrong and conditions are irrelevant n The managers job is to help employees to behave ethically regardless of circumstances. he should make fair and impartial choices regardless of the outcome and do the right thing.

Full-Potential Approach n Decisions are based on ¨ How they will affect the ability of those involved to achieve their full potential. People are responsible for realizing their full potential within the boundaries of morality. n Choices that can achieve this goal without infringing on the rights of others are considered ethical. n

Organization’s Role in ETHICS n Every organization have to establish a important role in promoting ethical behavior among employees. ¨ This is can be done through Creating an ethical environment n Setting an example n

Creating an Ethical Environment n Establishing policies and practices that ensure that all employees are treated ethically and also enforce those policies. Policies to protect employees regarding health and safety ¨ Policies to protect employees regarding race, Sex or other reasons. ¨ Policies to establish an environment that promotes, expect and rewards ethical behavior. ¨ n One effective way to create an ethical environment is to develop an ethical philosophy with specific guidelines to putting the philosophy into operations, in writing form and share with all employees.

Johnson & Johnson Example following code of ethics R Develop n To Customer : Quality and service at reasonable prices n To Suppliers : A Fair opportunity n To Employees : Respect, Equal opportunity, & a sense of job security n To Environment: Protection n To Share Holder: A fair return n

Setting an example n n n n Employees must be able to trust employees to conduct all external and internal dealings in an ethical manner. Companies that don't pay their bills on time companies that pollute companies that don't live up to advertised quality standards companies that don't stand behind their guarantees companies that are not good neighbors in their communities are not setting good ethical examples. Organizations must support managers who make ethically correct decisions But…………?