Introduction: Management and organizational concepts of management and organization- Nature and Importance

of Management, Functions of Management, System approach to Management - Taylor’s Scientific

Management Theory, Fayol’s Principles of Management, Leadership Styles, Social responsibilities of
Management. Designing Organizational Structures: Basic concepts related to Organization - Departmentation
and Decentralization, MBO, Process and concepts.
UNIT-I

HISTORY OF MANAGEMENT

Introduction:

Companies of the same industry are being affected by the same environmental factors. Some
companies attract a number of customers while some other companies repel them. Employees refer
to be identified with some companies while they prefer to be unemployed in case of some other
companies. Why do companies perform differently when they operate under the same environmental
conditions, serve the same customer, and use the same raw material and technology and employ the
people with similar skills? The answer for this question, invariably, is management practices. Thus
‗Management‘ makes remarkable difference between the companies regarding their performance in
terms of productivity, products, sales, profitability, service to the customer, employee welfare etc.
Definition of management: - Mary Parker defines the term management as ―the art of getting
things done through others.
Ivancerich, Donnelly and Gibson, defines the term management as ―the process undertaken by one
or more persons to coordinate the activities of other persons to achieve results not attainable by any
one person acting alone.
John A. Pearce and Richard B. Robinson included all kinds of resources in their definition on
management. According to them, ―Management is the process of optimizing human, material
and financial contribution for the achievement of organizational goals.
The analysis of the above definitions provides the following aspects of management.
The purpose of management is to formulate effective (right) organizational strategies and to achieve
them efficiently (productively) based on the missions objectives and goals.
 Management functions include: planning, organizing, directing and controlling.
 Managers should possess varied skills in order to play a variety of roles.
 It applies to managers at all levels in an organization.
 Management vs. Administration.
 Management is an art and a science in order to create a surplus.
 Management need to be a profession to achieve goals continuously with an
 Incremental efficiency.
Management deals with internal and external environment

External

Social Internal Technical

Human

Management
Material Machines &
ofBusiness/
resource Technology
Non-business

Financial
resource

Environment
Political
Economic

Environment :
Management: A Science or an art? We should know what is science and what is a before discussing
whether management is a science or an art?
What is science? Science is a body of knowledge developed systematically, based on observation,
measurement, and experimentation and drawing inferences based on data. The knowledge can be
verified through cause- effect relationship. The knowledge provides principles, theory and laws.
Management satisfies the characteristics of science like.
What is an art? Art understands how a particular activity can be done. Art can be acquired by conscious
effort and practice. Management is getting things done by and through other people. They have to
continuously analyze the environment and formulate the plans and strategies. They have to modify the
strategies based on environmental changes. The principles of management cannot be implemented as learn,
in the real world. They are to be applied after making necessary modifications based on the real life
situations.
Nature of Management :
The study and application of management techniques in managing the affairs of the organization have
changed its nature over the period of time.
Multidisciplinary: Management is basically multidisciplinary. This implies that, although management
 has been developed as a separate discipline, it draws knowledge and concepts from various disciplines.
It draws freely ideas and concepts from such disciplines as psychology, sociology, anthropology,
economics, ecology, statistics, operations research, etc. Management integrates the ideas and concepts
taken from these disciplines and present newer concepts which can be put into practice for managing the
organization.
Dynamic nature of principle: Based on integration and supported by practical evidences, management h
a s formed certain principle . However, these principles are flexible in nature and change with the
changes in the environment in which an organization exists.
Relative, not absolute principles: Management principles are relative, not absolute, and they should be
applied according to the need of the organization. Each organization may be different from others.
The difference may exist because of time, place, socio-cultural factors, etc.
Management - Science or Art: There is a controversy whether management is science or art. However,
management is both a science and art.
Management as profession: Management has been regarded as profession by many while many have
suggested that it has not achieved the status of a profession.

NATURE OF
MANAGEMENT

Management as a Continuous Process Management as a Discipline

Management as a Career Art as well as Science

Goal Oriented Guidance

Management is a Human Activity Management Signifies Authority

Management is Universal Co-ordination is the soul of Management

Management is essentially
Management is Dynamic Leadership Activity

Management is Decision Making Management is Profession

Scope of Management

Activity Point of View Functional Areas of Management

Management is an Inter-Disciplinary Universality of Management

Modern Management is anAgent of Change

Essential of Management

Principles of Management

1. Principles of Management are Universal

 Management principles are applicable to all kinds of organizations - business & non business.
 They are applicable to all levels of management.
 Every organization must make best possible use by the use of management principles.
 Therefore, they are universal or all pervasive.
2. Principles of Management are Flexible
 Management principles are dynamic guidelines and not static rules.
 There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of
the situation.
 Modification & improvement is a continuous phenomenon in case of principles of management.
3. Principles of Management have a Cause & Effect Relationship
 Principles of management indicate cause and effect relationship between related variables.
 They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the
other can be traced.
4. Principles of Management - Aims at Influencing Human Behavior
 Human behavior is complex and unpredictable.
 Management principles are directed towards regulating human behavior so that people can give their
best to the organization.
 Management is concerned with integrating efforts and harmonizing them towards a goal.
 But in certain situations even these principles fail to understand human behavior.
5. Principles of Management are of Equal Importance
 All management principles are equally important.
 No particular principle has greater importance than the other.
 They are all required together for the achievement of organizational goals.

Characteristics of Management:
Management is an activity concerned with guiding human and physical resources such that
 organizational goals can be achieved. Nature of management can be highlighted as: -
1. Management is Goal-Oriented: The success of any management activity is assessed by its
achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool
which helps use of human & physical resources to fulfill the pre- determined goals. For example, the
goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable
prices. This can be achieved by employing efficient persons and making better use of scarce resources.
2. Management integrates Human, Physical and Financial Resources: In an organization, human
beings work with non-human resources like machines. Materials, financial assets, buildings etc.
Management integrates human efforts to those resources. It brings harmony among the human, physical
and financial resources.
3. Management is Continuous: Management is an ongoing process. It involves continuous
handling of problems and issues. It is concerned with identifying the problem and taking appropriate
steps to solve it. E.g. the target of a company is maximum production. For achieving this target various
policies have to be framed but this is not the end. Marketing and Advertising is also to be done. For this
policies have to be again framed. Hence this is an ongoing process.
4. Management is all Pervasive: Management is required in all types of organizations whether it is
political, social, cultural or business because it helps and directs various efforts towards a definite
purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require
management. When ever more than one person is engaged in working for a common goal, management
is necessary. Whether it is a small business firm which may be engaged in trading or a large firm like
Tata Iron & Steel, management is required everywhere irrespective of size or type of activity.
5. Management is a Group Activity: Management is very much less concerned with individual’s
efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined
goal of management of ABC & Co. is good refers to a group of persons managing the enterprise.

Functions of management
As indicated earlier, management is the process of planning, organizing, staffing, directing and
controlling the efforts of organization members in utilizing all resources to achieve organizational
goals, objectives and mission. Management is a process as it operates the activities systematically.

The management process:

Planning Organizing

Staffing

Directing Controlling

OR

Planning:

 Planning consists of the activities involved in choosing courses of action to achieve

 organizational objectives.
 It is deciding in advance what to do, when to do, how to do and who will do it, in order to achieve
these objectives.
 Both long- term and short- term plans are necessary to achieve goals.

Organizing:

 Organizing involves the grouping of jobs into framework for coordination and direction.
 Formal organizations may be portrayed by use of an organization chart.
 Organizations are structured based on product, function, geography, customer and project.
 The matrix structure has evolved as a result of complex environments, markets and technology.
Staffing:
 Staffing is planning, organizing, directing and controlling of procurement, development,
compensation, integration and maintenance of people for the purpose of contributing to individual,
organizational and social goals.
 This process requires the performance of the functions like job analysis, human resources planning,
recruitment, selection, induction, placement, training, execute development, wage and salary
administration, leadership, teamwork, motivation, grievance procedure, disciplinary procedure act.
Directing:
 The important function of management at any level is directing the people by motivating,
commanding, leading and activating them.
 The willing and effective cooperation of employees for the attainment of organizational goals is
possible through direction.
 Tapping the maximum potentialities of the people is possible through and command.

 Thus, direction is an important managerial function in securing employee‘s contribution.

Controlling:

1. After planning, organizing, staffing and directing the various activities, the performance is to be
verified in order to know whether the activities are performed in conformity with the plans and
objectives or not.
2. Controlling also involves checking, verifying and comparing of actual performance with the plans,
identification of deviations, if any and correcting of identified deviations.
3. Thus, actions and operations are adjusted to predetermined plans and standards through control.
4. The purpose of control is to ensure the effective operation of an organization by focusing on
all resources- human, material, finance and machines.
Management levels

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate
source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and
coordinating functions.
The role of the top management can be summarized as follows -
a.Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
c.It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e.It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the performance of
the enterprise.
2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top
management for the functioning of their department. They devote more time to organizational and
directional functions. In small organization, there is only one layer of middle level of management but in big
enterprises, there may be senior and junior middle level management. Their role can be emphasized as –
They execute the plans of the organization in accordance with the policies and directives of the top
 management.
a.They make plans for the sub-units of the organization.
b. They participate in employment & training of lower level management.
c.They interpret and explain policies from top level management to lower level.
d. They are responsible for coordinating the activities within the division or department.
e.It also sends important reports and other important data to top level management.
f. They evaluate performance of junior managers.
g. They are also responsible for inspiring lower level managers towards better
performance.
3. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman,
section officers, superintendent etc. According to R.C. Davis, ―Supervisory management refers to those
executives whose work has to be largely with personal oversight and direction of operative employees‖. In
other words, they are concerned with direction and controlling function of management. Their activities
include -
a.Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c.They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the
organization.
e.They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level
and higher level goals and objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the workers.
Administrative Theory
In the last century, organizations already had to deal with management in practice. In the early 1900s,
large organizations, such as production factories, had to be managed too. At the time there were only
few (external) tools, models and methods available. Thanks to scientists like Henri Fayol (1841-1925)
the first foundations were laid for modern management.
These first concepts, also called principles are the underlying factors for successful management. Henri
Fayol explored this comprehensively and, as a result, he synthesized the 14 principles of management.
Henri Fayol ‘s principles of management and research were published in the book ‘General and
Industrial Management’ (1916).
Fayal’s principles of management: - In addition, Fayola listed out fourteen principles of
management. They are:

1. Division of labor: - The more people specialize, the more efficiently they can perform their work.
This principle is epitomized by the modern assembly line.
2. Authority: - Managers must give orders so that they can get things done. While their formal authority
gives them the right to command, managers will not always compel obedience unless they have
personal authority (such as relevant expertise) as well.
3. Discipline: - Members in an organization need to respect the rules and agreements that govern the
organization. To Fayola, discipline results from good leadership at all levels of the organization, fair
agreements.
4. Unity of command: - Each employee must receive instructions from only one person. Fayola belied
that when an employee reported to more than one manager, conflicts in instructions and confusion of
authority would ultimately result.
5. Unity of direction: - Those operations within the organization that have the same objective should be
directed by only one manager using one plan.
6. Subordination of individual interest to the common goal: - In any undertaking, the interests of
employees should not take precedence over the interests of the organization. As a whole.
7. Remuneration: - Compensation for work done should be fair to both employees and employers.

8. Centralization: - Decreasing the role of subordinates in decision making is centralization, increasing

their roles is decentralization.
9. The hierarchy: - The lines of authority in an organization are often represented today by the neat
boxes and lines of the organization chart that runs in order of rank from the top management to the
lowest level of the enterprise.
10. Order: - Materials and people should be in the right place at the right time. People in particular,
should be in the jobs or positions in which they are most suited.
11. Equity: - Manager should be both friendly and fair to their subordinates.
12. Stability of staff: - A high employee turnover rate undermines the efficient functioning
of an organization.
13. Initiative: - Subordinates should be given the freedom to conceive and carry out their plans,
even though some mistakes may result.
14. Esprit de corps:-Promoting team spirit will give the organizational sense of unity.

Classical theory of Management

Taylor’s scientific management

The concept of scientific management was introduced by Fredric Winslow Taylor in USA in the beginning
Of 20 Century. ―Scientific management is concerned with knowing exactly what you want men to do
and Then see in that they do it in the best and cheapest way.
Scientific management theory is important because its approach to management is found in almost
every industrial business operation across the world. Its influence is also felt in general business
practices such planning, process design, quality control, cost accounting, and ergonomics. Your
knowledge of the theory will give you a better understanding of industrial management. You'll also
understand how a manager can use quantitative analysis, an examination of numbers and other
measurable data, in management to improve the efficiency and effectiveness of business operations.
Elements and tools of scientific management

1. Separation of planning and doing: - Taylor emphasized the separation of planning aspect
from actual doing of the work. Before Taylor‘s scientific management, a work used to plan about how
he had to work and what instruments were necessary for that. The worker was put under the
supervision of a supervisor commonly known as gang boss.
2. Functional foremanship: - Separation of planning from doing resulted into development
of supervision system which could take planning work adequately besides keeping supervisions on
workers.
3. Job analysis: - Job analysis is undertaken to find out the one best way of doing the thing.
The best way of doing a job is one which requires the last movements, consequently less time and
cost. The best way of doing the thing can be determined by taking up time- motion fatigue studies.
4. Standardization:- As far as possible, standardization should be maintained in respect of
instruments and tools, period of work, amount of work, work conditions, cost of production cet.
5. Scientific selection & Training of workers: - Taylor has suggested that workers should
be selected on scientific basis taking into account their education, work experience, aptitude, physical
strength.
6. Financial incentives: - Financial incentives can motivate workers to put in their maximum
efforts. If provisions exist to earn higher wages by putting in extra effort, workers will be motivated to
earn more.
6. Economy: - While applying scientific management, not only scientific & technical aspects should be
considered but adequate consideration should be given to economy & profit. For this purpose,
techniquesof cost estimates and control should be adopted.
Max Weber bureaucratic theory
Principles of bureaucratic theory
1) Job specialization: – Jobs are divided into simple, routine and fixed category based on competence
and functional specialization.
2) Authority hierarchy: – Officers are organized in a n hierarchy in which higher officer controls
lower position holders i.e. superior controls subordinates and their performance of subordinates and
lower staff could be controlled.
3) Formal selection: – All organizational members are to be selected on the basis of technical
qualifications and competence demonstrated by training, education or formal examination.
4) Formal rules and regulations: – To ensure uniformity and to regulate actions of employees,
managers must depend heavily upon formal organizational rules and regulations. Thus, rules of law lead
to impersonality in interpersonal relations.
5) Impersonality: – Rules and controls are applied uniformly, avoiding involvement with personalities
and preferences of employees. Nepotism and favoritism are not preferred.
Limitations of bureaucratic theory
1) Informal relationship is not considered: – It does not consider the informal relationships between
individuals working in the organizations.
2) Outdated system: – Its system of control and authority are outdated which can’t work in such a
changed environment.
3) Inadequate means: – Bureaucratic theory does not possess adequate means resolving differences
and conflicts arising between functional groups.

TYPES OF LEADERSHIPS:

The total pattern of leaders’ actions as perceived by their employees is called leadership style. It
represents the leaders’ philosophy, skills and attitudes in practice.
1. Autocratic or Authoritarian leadership
An autocratic leader centralizes power and decision-making in himself. He gives orders, assigns tasks and duties
without consulting the employees. The leader takes full authority and assumes full responsibility.
Autocratic leadership is negative, based on threats and punishment. Subordinates act as he directs. He neither
cares for their opinions nor permits them to influence the decision. He believes that because of his authority
he alone can decide what is best in a given situation. Autocratic leadership is based upon close supervision,
clear-cut direction and commanding order of the superior. It facilitates quick decisions, prompt action and
unity of direction. It depends on a lesser degree of delegation. But too much use of authority might result in
strikes and industrial disputes. It is likely to produce frustration and retard the growth of the capacity of
employees. The employees work as hard as is necessary to avoid punishment. They will thus produce the
minimum which will escape punishment.
This leadership style is less likely to be effective because (i) the new generation is more independent and less
submissive and not amenable to rigid control; (ii) people look for ego satisfactions from their jobs and (iii)
revolution of rising expectations changed the attitude of the people.
2. Democratic or Participative leadership
Participative or democratic leaders decentralise authority. It is characterised by consultation with the
subordinates and their participation in the formulation of plans and policies. He encourages participation in
decision-making.
He leads the subordinates mainly through persuasion and example rather than fear and force. Sometimes the
leader serves as a moderator of the ideas and suggestions from his group. McGregor labels this style as
Theory Y.
Taylor’s scientific management was based on the inability of the ordinary employees to make effective
decisions about their work. Hence the decision-making power was vested with the management. But
recent studies indicate the need for participation by subordinates. The modern trend favours sharing the
responsibility with the employees.
This will foster enthusiasm in them. The employees feel that management is interested in them as well as in their
ideas and suggestions. They will, therefore, place their suggestions for improvement.
Advantages for democratic leadership are as follows: (i) higher motivation and improved morale; (ii)
increased co- operation with the management; (iii) improved job performance; (iv) reduction of
grievances and (v) reduction of absenteeism and employee turnover.
3. The Laissez-faire or Free-rein leadership
Free-rein leaders avoid power and responsibility. The laissez-faire or non-interfering type of leader passes
on the responsibility for decision-making to his subordinates and takes a minimum of initiative in
administration. He gives no direction and allows the group to establish its own goals and work out its own
problems.
The leader plays only a minor role. His idea is that each member of the group when left to himself will put forth
his best effort and the maximum results can be achieved in this way. The leader acts as an umpire. But as no
direction or control is exercised over the people, the organisation is likely to flounder.
An experiment conducted among Boy Scout Clubs of the USA in 1940 shows autocratic leadership is likely to
rouse antagonism in the group and produce hostility towards the leader. In democratic groups, the absence of
the leader made little difference, while in autocratic groups productive work dropped to a minimum, when the
leader was out of the room.
Democratic leadership is more likely to win the loyalty of the group. The laissez-faire groups also developed
friendly approaches to the leader as in the democratic group. But suggestions from the groups were very low
and they were also less productive.
4. Paternalistic leadership
Under this management style the leader assumes that his function is fatherly or paternal. Paternalism means
papa knows best. The relationship between the leader and his group is the same as the relationship between
the head of the family and the members of the family. The leader guides and protects his subordinates as
members of his family.
As the head of the family he provides his subordinates with good working conditions and fringe benefits. It is
assumed that workers will work harder out of gratitude. This leadership style was admirably successful in
Japan with her peculiar social background.
This leadership style has still been widely prevalent in small firms in India. However, this paternalistic
approach is unlikely to work with mature adult employees, many of whom do not like their interests to be
looked after by a “godfather.” Instead of gratitude, it might generate antagonism and resentment in the
subordinates.
MODERN APPROACH
1. System Approach to Management: Features of Systems Approach:
(i) A system consists of interacting elements. It is set of inter-related and inter-dependent parts arranged
in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter-relationships rather, than in isolation from
each other.
(iii) An organisational system has a boundary that determines which parts are internal and which are
external.
(iv) A system does not exist in a vacuum. It receives information, material and energy from other
systems as inputs. These inputs undergo a transformation process within a system and leave the system
as output to other systems.
(v) An organisation is a dynamic system as it is responsive to its environment. It is vulnerable to change
in its environment.

Contingency Approach of Management A contingency approach to management is based on the theory

that management effectiveness is contingent, or dependent, upon the interplay between the application
of management behaviors and specific situations. In other words, the way you manage should change
depending on the circumstances. One size does not fit all.

Features of Contingency Theory:

 Management is situational in nature. The technique of management depends on complexity of the
situation.
 Management principles are not universal in nature as there is no best style of management.
Management is situational and managerial actions depend upon the environmental circumstances.
 It helps in understanding the complex organisations as it focuses on multivariate nature of
organisations. It helps an organisation to operate under different environmental conditions.
Rather than having a specific solution to solve problems, it provides a framework where every
solution depends upon the environmental conditions. Same problem can have different solutions
at different points of time and different problems can have same solution at the same point of
time.
 It provides insight into organisation’s adaptability to both internal and external environment. It is
a matter of fitting the internal environment to its external environment.
 Ethics in Management: Different Approaches, Types and Benefits
Exploring Ethics in Management
Ethics in management refers to a company’s social responsiveness. It is ‘the discipline that deals with what
is good and evil, or right and wrong, or moral responsibility and duty.’
In other words, ethics in management can be defined as a set of moral principles. Principles that govern the
actions of a person or a group. It is a norm of behaviour that guides leaders and managers in their day-to-day
actions. Company core values shape business ethics. And the establishment of an ethical culture relies on
leadership. It is particularly true of leaders who display integrity, unity, and respect.
Example: The late Bill Gore, the founder of W.L. Gore Associates, spent all his time visiting small groups
of workers. He explained his organisational philosophy to them.

The corporation had four guiding ethical standards in place of rules:

1. Strive to be fair with all associates, vendors, and clients.

2. Assist and urge all stakeholders to develop their abilities, skills, and responsibility.
3.Make and keep commitments.
4. Consult others in the decision-making process.

According to the study in management of Barry Posner and Warren Schmidt highlights the following:

 A manager’s primary goal is to make their organisation effective. Boosting profits and the interests of
stakeholders were not their core priorities.
 Attending clients was seen as necessary.
 The quality most highly valued by managers at all levels was integrity.
 The pressure to stick to organisational expectations is seen to be high.
 In helping their mates cope with ethical dilemmas, spouses are essential.
 In ethical confusion, most managers seek the counsel of others.

10 Ethical Behaviours
Ethical behaviour is simply a major grouping of other behaviours

Here are 10 behaviours that outline ethics in management:

1. Honesty- In all their dealings, ethical executives are honest and truthful. They do not purposely mislead or
deceive others by partial truths, selective omissions, or any other means.
2. Integrity- Ethical executives show personal honesty and courage. They are principled, trustworthy and
upright. They fight for what is correct. Lastly, they will not betray morality or be duplicates.
3. Trustworthiness- Ethical executives are worthy of faith. They make every fair effort to fulfil the letter and
spirit of their promises and commitments.
4. Fairness- Ethical people show a commitment to fairness. They treat people equally with tolerance and
acceptance of diversity.
5. Kindness- Ethical executives are loving, compassionate, generous and kind. They help those in need and aim
to meet their business goals with the least damage.
6. Respect- They treat all people, regardless of sex, race or national origin, with equal respect and dignity.
7. Lawful- Ethical managers follow rules and regulations in their company operations.
8. Excellence- In conducting their duties, ethical employees seek excellence. They are well-educated and trained.
They actively aspire to improve their competence in all areas.
9. Leadership- Ethical employees strive to be positive role models as leaders. They help to build an atmosphere
in which they are highly respected for principled thinking.
10. Responsible - They consider and accept responsibility for their choices and actions.
Approaches To Ethics In Management
Basically, there are 3 approaches to ethics in management. Each of them is discussed in the points below:

1. Consequence-Based Approach

Managers check their decisions through this approach. Here, the emphasis is on the action and not the reason
behind the action. It measures positive and negative outcomes. If the positive effects outweigh the negatives,
company decisions are justified.

In this approach, managers analyse the potential options before taking a specific action.

For example, a manager might receive more revenue from fees or company donations from bringing on a certain
event in a city. It can be an adventure programme such as boxing, but it will have a harmful effect on a number
of residents.
They might fear noise pollution or harm from competitors or loss of property during the programme.
Here, the manager would look at this event from a cost-benefit viewpoint. He will conclude that most people in
the group would appreciate this activity. And that the company would make more money from providing the
programme. The manager will also ignore the neighbours concerned about potential damage and noise.
It will bring more money to the organisation. But the disappointed residents could sue for property damage.
Moreover, it might lead to an expensive case for the organisation.

2. Moral Rights Approach

In this strategy, managers adopt a moral code that takes care of natural and moral rights. It includes the
right to speech, life, and protection, as to express emotions, etc.
Managers reveal all the necessary details in the annual reports. When disclosing information, its time and
validity are taken into account.
The moral rights approach includes helping coworkers with challenges they may have

 
For example, a manager may see that it is difficult for some of the workers to engage in official training. It might
be because they lack the necessary skills. Or, they might have a different challenge in participation. Some might
even have a financial crisis.
Managers with the moral rights approach should determine specific responsibilities. They should help group
members who are facing issues. They should check whether specific duties are required.
One clear advantage of this approach is supporting the disadvantaged person. The manager can make some
reasonable settings for the same. The downside is that it may put the disadvantaged in the limelight. It will make
them feel unjust.
3. Social Justice Approach
Managers who take the social justice approach look for equality and fairness. No one is discriminated against
based on caste, religion, race, or gender. But differences are justified based on skills or performance.
For example, workers belonging to any gender, with the same abilities are equal. But treating employees who
produce better than those who make less is justified.
This approach has two principal theories – the liberty principle and the difference principle.
The Liberty Principle
Every person has some fundamental freedom. Those should be consistent with other people’s equal freedoms.
The Difference Principle
It stands for resolving social and economic bias. It supports the equal distribution of goods and services.
Types of Workplace Ethics
want to maximise profits. Archie B. Carroll has identified three types of management ethics or standards of
conduct. They are as follows:
1. Immoral Management
It suggests a lack of ethical standards that managers adopt. Even if it is harmful to ethical requirements or
employee concerns, managers
2. Moral Management
In this, managers strive to increase profits, considering ethics. They adhere to standards of conduct that are
ethical and legal. The core principle here is, ‘Is this action fair to us and all parties involved?’
3. Amoral Management
It falls between moral and unethical management ethics. Managers only react to personal and legal ethics
if they are expected to do so. Otherwise, there is a lack of ethical interpretation.