MANAGERIAL ETHICS AND

ORGANIZATIONAL DESIGN

GROUP MEMEBERS: AREEBA SHAFIQUE AYESHA AFZAL KAMRAN SALAM MEHMOOD FIDYAN ANAS ZEESHAN

WHAT IS ETHICS? The code of moral principles and values that govern

the behaviors of a person or group with respect to what is right or wrong.

Three Views Of Ethics: UTILITARIAN VIEW:- ethical decisions are made on the

basis of their outcomes or consequences. RIGHTS VIEW: respects and protects individual liberties

and privileges. THEORY OF JUSTICE VIEW: managers impose and

enforce rules fairly and impartially.

CODE OF ETHICS:  Formal statement of an organization’s primary values

and ethical rules it expects employees to follow. Usually written. Must state in detail acceptable behaviors and actions.

MANAGERIAL ETHICS

WHAT IS MANAGERIAL ETHICS? Managerial ethics refers to the moral guidance a

supervisor provides his employees. It is a set of principles and rules dictated by upper management that define what is right and wrong in an organization.

ETHICAL LEADERSHIP: Managers must provide a good role model by: Being ethical and honest at all times. Telling the truth; don’t hide or manipulate

information. Admitting failure and not trying to cover it up. Communicating shared ethical values to

employees through symbols, stories, and slogans. Rewarding employees who behave ethically and

punish those who do not. Protecting employees who bring to light unethical

behaviors or raise ethical issues.

DECISION MAKING: Recognize an ethical issue or situation. Get the facts Evaluate alternative actions. Make a decision and test it. Act and reflect on the outcome .

MORAL DEVELOPMENT:•Is a measure of an individual’s independence as his/her moral judgment becomes less and less dependent on outside influences •Stages start with making a choice between right and wrong based on personal consequences .

VALUES:  Basic convictions about what is right and wrong. Influence ethical behavior. Values are developed in early years

ORGANIZATIONALFACTOR THAT AFFECT ETHICAL AND UNETHICAL BEHAVIOR:

MANAGERS IMPROVING ETHICAL BEHAVIOR:

 Hire individuals with high ethical standards. Establish codes of ethics and decision rules. Lead by example.  Delineate job goals and performance review

mechanisms. Provide ethics training. Conduct social audits. Provide support to individuals facing ethical

dilemmas

MANAGING ETHICS AT WORK PLACE:

Developing codes of Ethics. Resolving Ethical Dilemma

and making ethical decision. Assessing and cultivating

ethical culture. Ethics Training.

ORGANIZATIONAL DESIGN

WHAT IS ORGANIZATIONAL DESIGN? Organizational design is engaged when managers

develop or change an organization's structure. It is basically the process of constructing and adjusting an organization’s structure to achieve its goals.

Six Key Elements In Organizational Design:A process involving decisions about six key elements:

○ Work specialization○ Departmentalization○ Chain of command○ Span of control○ Centralization and decentralization○ Formalization

1-Work Specialization:The degree to which tasks in the organization are divided

into separate jobs with each step completed by a different person

2-Departmentalization: It is the process of grouping

activities into departments. Division of labor creates

specialists who need coordination.

This coordination is facilitated by grouping specialists together in departments

Departmentalization By Type: Functional :

Grouping jobs by functions performed. Product:

Grouping jobs by product line. Geographical:

Grouping jobs on the basis of territory or geography. Process :

Grouping jobs on the basis of product or customer flow. Customer:

Grouping jobs by type of customer and needs.

3-Chain Of Command:The continuous line of authority that extends from upper

levels of an organization to the lowest levels of the organization and clarifies who reports to whom.

4-Span Of Control:The number of employees who can be effectively and

efficiently supervised by a managerWidth of span is affected by:

1. Skills and abilities of the manager and the employees2. Characteristics of the work being done3. Similarity of tasks4. Complexity of tasks5. Physical proximity of subordinates6. Standardization of tasks7. Sophistication of the organization’s information system8. Strength of the organization’s culture9. Preferred style of the manager

5-Centralization And Decentralization: Centralization:

The degree to which decision making is concentrated at a single point in the organization○ Organizations in which top managers make all the

decisions and lower-level employees simply carry out those orders

Decentralization:The degree to which lower-level employees provide input or

actually make decisionsEmployee Empowerment

○ Increasing the decision-making discretion of employees

6-Formalization:The degree to which jobs within the

organization are standardized and the extent to which employee behavior is guided by rules and procedures○ Highly formalized jobs offer little

discretion over what is to be done○ Low formalization means fewer

constraints on how employees do their work

COMMON ORGANIZATIONAL DESIGNS: Two common types of organizational designs are: Traditional designs Contemporary designs

1-Traditional Designs:Simple Structure

○ Low departmentalization, wide spans of control, centralized authority, little formalization

Functional Structure○ Departmentalization by function

Operations, finance, human resources, and product research and development

Divisional Structure○ Composed of separate business units or divisions with limited

autonomy under the coordination and control of the parent corporation

2-Contemporary Designs:Team Structures

○ The entire organization is made up of work groups or self-managed teams of empowered employees

Matrix Structures○ Specialists for different functional departments are

assigned to work on projects led by project managers○ Matrix participants have two managers

Project Structures:○ Employees work continuously on projects, moving on to

another project as each project is completedBoundary less Organization:

○ A flexible and an unstructured organizational design that is intended to break down external barriers between the organization and its customers and suppliers