Presentation on theme: "1 Chapter 1 The Nature of Strategic Management. 2 Strategic management is the art and science of formulating, implementing, and evaluating cross-functional."— Presentation transcript:
2 Strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Strategic Management Defined
5 Hierarchy of Strategy Functional Strategy Business (Division Level) Strategy Corporate Strategy Manufacturing Finance Marketing Research and Development Human Resources Strategic Business Unit Strategic Business Unit Strategic Business Unit Corporate Headquarters
13 Business Ethics Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior. Ethical decision making deals with the moral evaluation of decisions based on commonly accepted principles of behavior; the evaluation results in an action being judged right or wrong.
14 Factors Affecting Ethical Decision Making Moral Values –deontology –teleology Opportunity –codes of ethics –policies –rewards/punishment Significant Others –management –peers
15 Suggestions for Improving Ethical Behavior Offer training programs which independently and explicitly address specific treatment of ethical issues. Limit the opportunity to engage in unethical behavior by providing a well- developed structure and system of checks and balances, including explicit penalties for unethical behavior. Let employees know what penalties the company imposes on those who engage in unethical behavior. Recognize how the behavior of co-workers and superiors can influence the behavior of other employees in the organization. Develop a code of ethics or ethical policies that are widely communicated and enforced. In larger organizations, develop an ethics committee to address new issues and help establish and evaluate existing codes and policies. Eliminate the “bad apples”. –Source: Ferrell, O.C. and Gareth Gardiner (1991), In Pursuit of Ethics, USA: Smith Collins.
16 Tough-Minded Management and Social/Ethical Responsibility Continuum of Managerial Authority The Tough-Minded Manager: –Accepts that risks must often be taken and that conflict is inevitable in making tough choices; –Understands that short-run losses may be inevitable and unavoidable to achieve long-run success; –Believes that the best long-run approach to business is integrity; –Is aware that ethical problems may arise in the workplace, and of how ethical decisions are usually made in the workplace; –Has reached a level of moral development where economic self-interest is not paramount, and where persona ethical values are important; –Has learned that trust is the glue that holds business relationships together; –Believes strongly that maintaining self-esteem and self-respect outweighs material gain. –Source: Ferrell, O.C. and Gareth Gardiner (1991), In Pursuit of Ethics, USA: Smith Collins.