Quality Management & Ethics

ETHICAL MANAGEMENT

Major Topics

Ethics DefinedTrust and Total QualityValues and Total QualityIntegrity and Total QualityResponsibility and Total QualityManager’s Role in EthicsOrganization’s Role in EthicsHandling Ethical DilemmasEthics Training and Codes of Business ConductModels for Making Ethical DecisionsBeliefs versus Behavior: Why the Disparity?

Ethics Defined - 1

Ethics is the study of human behavior within a moral context.

Morality refers to the values that are subscribed to and fosters by society in general and by individuals within the society

Ethics attempts to - apply reason in determining rules of human behavior that translate morality into everyday behavior.

Ethical Behavior – It is that which falls within the limits prescribed by widely accepted moral values.

Ethics Defined - 2

Guidelines for Determining Ethical Behavior

Distinguish the concepts of legal and ethical: A person’s behavior can be well within the prescribed limits of

the law and still be unethical.

Blanchard and Peale suggest the following 5 P’s which help managers and employees make ethical choices in the work place.

Purpose – Individuals see themselves as ethical people. Pride – Individuals apply internal guidelines & have self-

esteem. Patience – Individuals believe right will prevail in the long run. Persistence – Individuals are willing to stay with an ethical

course of action. Perspective – Individuals take the time to reflect and are guided

by their own internal barometer to take ethical decisions.

Ethics Defined - 3

Factors That Influence Ethical Behavior

Managers in a total quality setting need to understand the factors influencing a person’s behavior.

L.K.Trevino suggests 3 personality measures that can influence a person’s ethical behavior:

Ego strength – Ability to undertake self-directed tasks. Machiavellianism – Extent to which a person will attempt to confuse

others. Locus of Control – The perspective of people concerning who or

what controls their behavior.

Trust and Total Quality

Total Quality approach cannot be achieved without ethical behavior. Ethical Behavior builds

trust and trust is an essential ingredient of total quality.

In attempting to build trust in the workplace, managers should take the initiative.

Fig 1. Elements of Total Quality that depend on Trust

Values and Total Quality

Values are those deeply held beliefs that form the very core of who we are. A persons conscience or internal barometer is based on his or

her values.

Ethical Behavior begins with Values. Values that lead to ethical behavior are as follows:

Fairness Dependability Integrity Honesty Truthfulness

Integrity and Total Quality

Integrity as a personal and organizational characteristic combines honesty and dependability.

When an individual or an organization has integrity, ethical behavior automatically follows.

People with integrity can be counted on to

Do the right thing Do things correctly Accomplish tasks thoroughly and completely Finish work on time Keep promises.

Responsibility and Total Quality

Part of ethical behavior is to accept responsibility.

People generally want to blame others for their own short comings and failures – In a total Quality setting, people are responsible for their actions and accountable for their performance.

Accepting responsibility helps build trust, integrity, and all other elements of ethics.

Manager’s Role in Ethics

Managers have 3 main responsibilities:

- For setting an example of ethical behavior.

- For helping employees make ethical choices.

- Helping employees follow ethical behavior.

Following are 3 approaches for managers to carry out their responsibilities: Best Ratio Approach: People are basically

good, hence create appropriate conditions. Black-and-White Approach: Right is right,

wrong is wrong, hence make ethical decisions and carry them out.

Full Potential Approach: People are responsible for realizing their full potential, hence decisions made should focus achieving this potential.

Fig 2. Approaches to Ethics

Organization’s Role in Ethics

Organizations have a critical role to play in promoting ethical behavior among their employees.

An Organizations tasks in ethics can be summarized as: Creating an internal environment that promotes, expects and

rewards ethical behavior. This can be achieved by establishing policies and practices

promoting the atmosphere. Setting an example of ethical behavior in all external dealings.

Organizations should set an example for their employees. This motivates them to be ethical.

Handling Ethical Dilemmas

Managers response to ethical dilemma is very important.

Following are the guidelines, managers can use in such situations.

Fig 3. Guidelines for handling ethical dilemmas

Ethics Training & Codes of Business Conduct

Ethics Training: Ethical behavior and the rationale for it can be taught. In ethics training:

Stimulate discussion Facilitate, don’t preach Integrate ethics training Highlight practical applications

Few examples of the topics that are widely addressed in corporate-sponsored ethics training programs are

Drug and alcohol abuse, Employee theft, Quality control etc.

Code of Business Conduct: Written Codes of Business conduct encourage employees to do

the right thing.

Models for Making Ethical Decisions

Decision making models used for determining ethical behavior can differ just as the values of organizations do.

Most widely used models are: Categorical Imperative Model – black-and-white model Full Disclosure Model – functional criterion Doctrine of Mean Model – Average between 2 extremes Golden Rule Model – Do unto others as you would have them do unto you Market-Ethic Model – Any legal action that promotes profitability-ethical Organizational Ethic Model – Loyalty to organization Equal Freedom Model – Organizations have freedom to behave Proportionality Ethic Model – World is so complex, decisions are not clear Professional Ethic Model – Principle of peer review

Beliefs vs. Behavior

Ethics in workplace manifests itself through the application of values.

Most, but not all, people subscribe to these values.

Several Reasons explain the disparity like: Self-Interest/Self-Protection Conflicting Values Tangible/Intangible – Immediate Deferred Making Ethics Tangible and Immediate

Questions/Queries