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Unethical decisions result from an individuals choice rather than their work environment
Unethical decisions result from an individual’s choice rather than their work environment
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Institution
Introduction
Ethical dilemmas form common occurrences in workplaces irrespective of the type of business engagement. The modern business diversity created by the contemporary business environment offers a lot of challenges to organizational managers. Managers lacking innovative business management skills always face numerous problems that affect the decision-making process. The complexity in the present management practices challenges many people in making effective, and ethical decisions concerning a specific problem that requires a professional approach in the organization. Individuals end up making unethical decisions driven by individual’s choice and not the influence of work environment. Business ethics as an issue has gained more attention today. The main components of an ethical decision-making process include individual factors, organizational factors, opportunities, and business intensity (Ferrell, Fraedrich, & Ferrell, 2009). The following article discusses the element of management in terms of the major approaches to management, the main role of managers, and challenges facing businesses in the current environment.
Thesis statement
The workplace environment does not influence the unethical decisions made by managers but rather result from an individual’s choice.
Aims and objective
The following article aims at understanding challenges that face organizations in the contemporary business environment.
Management
Organizational challenges in the contemporary business environment
According to Kurtz, & Boone (2011), an infinite competitive market that changes at an alarming rate characterizes a contemporary business environment. This type of a business environment contributes creates many challenges faced by most organizations today because business owners lack developments and requirements that respond to the ever-changing business environment. Organizations face many challenges in the contemporary business environment. Every passing decade introduces a bigger challenge to the management of organizations. The influx of countless cultures and diversity in different regions leads to globalization of the world economies. In addition, the current recession contributes to the high rate of job cuts and change in operational practices as organizations try to maintain a manageable number of employees. The issues have complicated the work of a manager who must deal with a range of challenges presented to the organization by employees and other organizational stakeholders (Singh, & Dhawan, 2013).
Major approaches to management
Organizations should apply effective and more advanced management approaches in order to achieve business aims and objectives and win the global competition in the contemporary business environment. The Theory of Management provides an insight of how managers should approach management issues and challenges. Some of the recommendations are developing excellent organizational behaviors, making ethical decisions, understanding the nature of the organization, and help in coping with different changes experienced in the present business environment. Three major approaches to management are of importance to this article. These are the classical approach, the system approach, and the contingency approach to management.
The classical approach
The classical approach mainly concerns with the efficiency of employees and organizational activities. The economic efficiency of the organization is the main type of efficiencies analyzed by the classical approach. Managers should utilize universal management models that help in improving the productivity of employees through increased efficiency. The approach enables a manager search better ways of overcoming business challenges caused by poor decision making when it comes to delegating duties to employees. The classical approach to management is subdivided into the scientific approach and the bureaucracy approach (Salker, & Khan, 2013.
The scientific approach follows the theory of management in promoting efficiency in the organization through labor productivity. The theory concerns human resource managers in the organization who deal with labor relations. The human resource manager should carefully plan for labor forces in order to assign competent people into specific tasks. The nature of the working environment should govern the manager in making decisions on the type of employees to assign certain duties and responsibilities. On the other hand, the bureaucracy approach deals with professionals in an organization. A manager should understand the characteristics of people they deal with in the organization. This approach to management leads to proper coordination in the workplace and promotes interpersonal relations between employees and managers (Tripathi, Tripathi, & Reddy, 2008).
The system approach
The system approach characterizes the environment that the organization operates. Managers should understand the industry where their companies fall, and their operating environment. The system approach views the organization as a system in the environment. It promotes the interaction between the organizations and the environment and seeks ways of building a strong relationship between the two systems. An organizational management must understand the prevailing environment in order to adapt effectively. The type of business an environment available contributes to the type of decisions made by managers (Tripathi, Tripathi, & Reddy, 2008).
The contingency approach to management
The contingency approach differentiates between various systems of management and organization structure. The organizational management takes a contingency situation and decides the best structure and system to use in making the organization overcome global business management challenges. The approach weighs different goals and objectives of strategic plans presented by different managers, and select the plan that corresponds to the structure, goals and resources of the firm (Tripathi, Tripathi, & Reddy, 2008).
The following three major approaches to management give managers ideas on how to use ethics in managing organizations. Ethics management helps individuals in making decisions regarding certain aspects of the organization. A person may make an ethical or an unethical decision depending on the prevailing condition and the understanding of ethical management. For instance, a manager who implements classical approach to management technique develops a team of efficient workers. Efficiency in the workplace creates a prevailing work environment that makes managers make ethical decisions that offer solutions to problems encountered. Managers who lack knowledge on management approaches techniques make unethical decisions because they lack proper management skills. In addition, such managers when faced with challenges always blame employees.
Major functions of managers
Individuals holding management positions in the organization must make strategic decisions that lead the organization into achieving its goals. Succeeding in the contemporary business environment requires an understanding of the major functions of a manager. Managers cannot effectively lead an organization without knowing their basic roles and responsibilities. A manager holds numerous responsibilities that include leading, planning, organizing, coaching, solving issues, and making decisions for the company. A manager performs four major functions. The four major functions are organizing, leading, controlling, and planning (Lewis, 2007)
Planning
Planning forms the most critical function of a manager. Planning involves making comprehensive action plans that aim at achieving organizational goals. Organizations have many departments with different goals. Each of the department in an organization has a manager as a leader. The goals of each department must adhere to the main goals of the organization. For example, human resource manager aims a producing a team of effective employees through perfect recruitment and retention processes. The manager must take time in designing the major steps that employees must take in order to achieve the set goals. Planning entails making quality decisions that have a positive impact to the organization, and that achieves long-term organizational goals.
Organizing
The organizing role requires the manager to make decisions on how to distribute resources of the organization and organize workers in a strategic manner. Managers identify different roles and assign each employee a specific duty that fits their competence. In addition, organizing involves delegating authority, assigning work, and providing directions in order to form an effective team that works towards achieving organization goals.
Leading
The manager must be a leader. Managers lead the organization by personally connecting with all employees. The leadership function does not only involve managing tasks but also aspiring, communicating, encouraging, and motivating workers towards achieving higher production levels. People were not born as leaders, but the virtue of leadership is acquired through education and interaction with others. A manager must demonstrate characters of a good leader and effectively lead the organization through ethical decision-making processes not rooted from the individual’s choice.
Controlling
A manager controls all the functions of the organization and ensures perfection in all areas of production. After carefully designing a plan of production, the manager evaluates the results against goals. When a plan fails to meet the expected goals, the manager should take the necessary actions and control the factors that lead to the failure.
A manager who effectively implements the above-discussed functions does not have many challenges experienced by managers in the modern contemporary business environment.
Various challenges managers face in the current business environment.
Managers face many challenges in the contemporary business environment that interferes with personal productivity. The quick transforming business landscape seems to create a difficult breathing ground for manager because of the presence of different forms of management. Managers are challenged by the ever-changing technology and modern management practices because a strategy working today might not work tomorrow. Firstly, managers face the challenge of competing in the contemporary business environment. Globalization and advancement in technology has resulted into many businesses conducting similar operations. Competing in the international market forms a major challenge for managers who lack essential international management skills (Singh, & Dhawan, 2013).
Secondly, proper interactions with other employees challenge the management today. Managers are responsible for creating good inter-organizational relationship between employees. Coordinating different workers requires an understanding of business ethics that help in making ethical decisions concerning various issues. Finally, the problem of globalization challenges managers in the contemporary business environment. The expansion of information technology to many performing many business duties challenges managers who lack basic computer-based management process. IT introduces many changes in the world that require professionalism in management (Athanne, 2011).
Conclusion
The article has demonstrated that individual manager take responsibility of making ethical decisions depending on their choices and not the pressure from the workplace. Globalization is the main source of many challenges faced by organizations today. The current global business environment requires organizations to move with the changing world, and react fast to changes introduced by globalization. New skills and innovations form the main drivers to the changing business environment. Managers always find themselves in a state of confusion when it comes to making organization decisions regarding issues in the contemporary business environment. Four major approaches to management ensure managers do not make unethical decisions. The main challenges facing managers in the contemporary business environment are competition from other international organizations, poor interpersonal relations with other employees, and lack of modern management skills.
References
Athanne. (2011, October 5). The Challenges of Human Resources Management Today. Retrieved October 4, 2014, from http://businessreviewkenya.com/challenges-human-resources-management-today/
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2010). Business ethics: Ethical decision making and
cases : 2009 update. Mason, OH: South-Western Cengage Learning.
Kurtz, D. L., & Boone, L. E. (2011). Contemporary business. Hoboken, N.J: Wiley.
Lewis, P. S. (2007). Management: Challenges for tomorrow’s leaders. Mason, OH:
Thomson/South-Western.Salker, S. I., & Khan, M. R. A. (2013). Classical and neoclassical approaches of management:
An overview. IOSR Journal of Business and Management, 14(6), 1-5.
Signh, B. & Dhawan, S. (2013). Challenges faced by HR managers in the contemporary business
atmosphere. International Journal of Management and Business Studies, 3(2), 90-92.
Tripathi, P. C., Tripathi, P. C., & Reddy, P. N. (2008). Principles of management. New Delhi:
Tata McGraw-Hill Pub.
Unethical Business Research Conduct
Unethical Business Research Conduct
Business research is conducted for many reasons that are dependent on intended recipient of the research. For business marketers, research might include customer surveys of focus groups. When the research is for the development of a product, it can have a scientific basis and when it comes to stakeholders the research may include financial projections. This paper will therefore look at an article that focuses on some of the unethical business research conduct. The paper will clearly highlight some of the unethical research behavior that is involved and the people who are affected by these unethical research behaviors. The paper will further highlight how the unethical behavior has affected the organization, individuals and society at large. Finally a conclusion will be made on how the unethical behavior can be avoided or resolved.
The article The case of Neurontin; Skewed Research in service selling is an example of some unethical business research conduct that some pharmaceutical companies use when they intend to prove that their products are safe and effective. They therefore engage in practices that are suspect professionally and morally unethical. Neurontin, manufactured by Pfizer and Parker-Davis is a brand name for a drug gabapetin. its is a drug whose approved use is the treatment of epilepsy and post hepatic neuralgia though physicians prescribe Neurontin off-label for a wider range of conditions that include hot flashes, insomnia and certain types of tinnitus. The off-label uses have greatly increased and even supersede the approved uses. This is because, Pfizer was found to be urging the prescription of the drug by physicians for off-label uses which are very illegal. They are able to urge physicians due to some unethical research conduct that they apply. The pharmaceutical company’s interests vested in having FDA approve some of the off-label uses and hence they conduct this research to see if the drug works for some other conditions. Therefore if they manage to convince the federal regulators that there exists evidence that is sufficient that supports adequate safety and efficacy then the approval of the drug can be extended by FDA for these additional uses hence resulting to a broader market for the drug.
Even though the intention of some of these companies is not to submit studies to the FDA to extend the approved uses, the companies conduct research to publish the new benefits of drugs that they allege exist. Some of the unethical research behaviors that Pfizer is involved in include the delaying of reports that had found evidence of the efficacy of the drug, spinning or the interpreting negative data. They also bundle negative findings with positive studies to neutralize results. They would even go ahead to rewrite and recast the findings from legitimate researchers so that they make this results sound better than they look on the graphs. Recent studies that have been published indicate that when the documents were thoroughly analyzed found that the results that had been published of the randomized clinical trials on the off-label uses of Neurontin that were conducted by Pfizer and Parke –Davis were skewed to show the efficacy and the data was manipulated so that it could support the findings that they desired. This unethical behavior used two techniques; on-reporting of negative outcomes and the changing of outcomes of the trials in order for them to produce results that they desired. This unethical behavior entails the modification of the research purpose after it has been conducted. When the research protocols for Neurontin were examined by researches; they identified 20 clinical trials where only 12 were put into publication.8 among the published 12 showed that primary outcomes defined in the report were different from those in the original research protocol. Discrepancies included the introduction of new primary outcomes, failure to distinguish between primary and secondary outcome and the failure to report more primary outcomes. Some of the primary research outcomes were not reported at all while some were reported as secondary outcomes. Changes that were published were not neutral rather; they led to a more favorable presentation of Neurontin’s efficacy for the conditions that were unapproved.
The people who are injured from the unethical behavior by this pharmaceutical company are the patients who get the prescription of Neurontin.this especially occur when the prescription is on the off-label uses. This is because Neurontin may not be necessarily effective in some of this off-label uses that they are prescribed and may lead to more complication to the patients. These prescriptions may be ineffective and only worsen the current condition that the patient has and offer no recovery which is the intention of any drug that is prescribed.
The unethical behavior affected organization, individual and the general society in different ways. First the organization was affected in that it faced legal cases against Neurontin this led to the company parting with a lot of money when settling this case. The company has had to pay $430 million in criminal fines and civilian penalties even though this did not serve as a warning to the company pertaining Neurontin. When it comes it individuals this behaviors have effects such as the availability or prescription of this drug for conditions where the drugs are not effective. This may lead to complications on individuals who use Neurontin. When it comes to society, these practices may undermine the trust the society has placed on science and published studies and hence make a mockery of the systems that generate evidence for purposes of decision making.
Unethical behavior could be avoided by companies if they put u policies that are in support for the good to the community rather than mainly profit making. Relevant bodies that approve these drugs should also be strict when it comes to the publications that have been presented to them before they approve the drugs. They should clearly scrutinize this data to ensure that no unethical research conducts are found with the data.
Reference
Ramirez de Arellano, A.B. (2009). The Case of Neurontin: Skewed Research in the Service of Selling. Retrieved November 27, 2012 from http://www.citizen.org/Page.aspx?pid=2887
Unethical Accounting
Unethical Accounting
Introduction
There are many examples of unethical accounting found in organizations that are not easily recognized until a discrepancy occurs. Organizations establish Ethics to protect the public from deceitful accountants as well as exposing organizations that hide information. Ethical behavior is essential in preventing fraudulent activities in order to gain public trust (Brenda & Duska, 2011).
An example of unethical practice is a dishonest and greedy church accountant who is trusted to run all money errands in a church. The accountant takes part of a church donation for his personal financial gain and records the rest in the financial books. He misleads the financial analysis so that he can obtain personal gains and, Purposely provides erroneous information in regards to church expenses to cover up his steal. Later on the treasurers financial book and the church accountant’s coincidentally contradict and they happen to overlook the reason. The church hires an auditor to check on the problem and as to why the financial books were not balancing. The two are adhered from work until the problem is resolved. The auditor finds the problem and the accountant get fired.
Why the situation is unethical?
The situation above is unethical since it brought about financial analysis discrepancies and lying about the donations and the church expenses, expenses to hire an auditor and shame. Accountants are financial reporter and their objectives are to the public interest (Brenda & Duska, 2011). They should provide information that will guide in management of an organization. With the church organization, the accountant’s financial statement shows the church is losing money, and the money is being lost to the accountant.
How does this affect the financial results of a company?
Organizations with strong ethics tend to maintain satisfaction and, influences positively on the financial results of the company. However lack of personal and professional ethics may lead to negative financial results such as for the above church accountant. Unethical practices put an organization into a precarious situation. Therefore, for an organization economic performance to be positive ethical behavior must be guaranteed (Brenda & Duska, 2011).
Reference
Brenda, D., & Duska, R. (2011). Accounting Ethics: Foundations of Business Ethics. (2 ed.).
New York: John Wiley and Sons.
