1. Explain the nature of managerial ethics (SM:002)
8.05 Recognize management’s role to understand its contribution to business success.
Explain the nature of managerial ethics (SM:002)

2. Explain how managers directly influence the ethical issues within an organization.
The way management handles a business code of ethics (how they apply it to themselves and all staff) directly impacts business ethics as a whole.
By definition, business ethics means examining specific principles and moral guidelines that impact the organization’s overall environment. Nearly every field of employment – legal, medical, clerical, etc. has numerous ethical questions facing them every day. Good management means having a leader who can apply the corporate philosophy and codes in a substantive way daily.
Ethics in leadership of a business is in high demand. The end user / consumer, and the public as a whole, is weary of unprincipled, immoral, unscrupulous and disreputable business practices. And even while many businesses do not operate to one extreme (highly unprincipled) or another (highly ethical), the marketplace wants to work with, and support, businesses and products they can trust. </P< p>
That means having leadership and management on which you can depend to implement positive workplace ethics and behaviors. It also means that as a business leader you need to ensure the culture in your business is focused on ethical practices and that all employees and stakeholders are aware of that commitment.

3. Describe ethical issues confronting management.
Perhaps too often, business ethics is portrayed as a matter of resolving conflicts in which one option appears to be the clear choice. For example, case studies are often presented in which an employee is faced with whether or not to lie, steal, cheat, abuse another, break terms of a contract, etc. However, ethical dilemmas faced by managers are often more real-to-life and highly complex with no clear guidelines, whether in law or often in religion.
Real-to-Life Examples of Complex Ethical Dilemmas
· "A customer (or client) asked for a product (or service) from us today. After telling him our price, he said he couldn't afford it. I know he could get it cheaper from a competitor. Should I tell him about the competitor -- or let him go without getting what he needs? What should I do?" · "Our company prides itself on its merit-based pay system. One of my employees has done a tremendous job all year, so he deserves strong recognition. However, he's already paid at the top of the salary range for his job grade and our company has too many people in the grade above him, so we can't promote him. What should I do?" · "Our company prides itself on hiring minorities. One Asian candidate fully fits the job requirements for our open position. However, we're concerned that our customers won't understand his limited command of the English language. What should I do?" · "My top software designer suddenly refused to use our system. He explained to me that, as a Christian, he could not use a product built by a company that provided benefits to the partners of homosexual employees. He'd basically cut himself off from our team, creating a major obstacle to our product development. What should I do?" · "My boss told me that one of my employees is among several others to be laid off soon, and that I'm not to tell my employee yet or he might tell the whole organization which would soon be in an uproar. Meanwhile, I heard from my employee that he plans to buy braces for his daughter and a new carpet for his house. What should I do?" · "My computer operator told me he'd noticed several personal letters printed from a computer that I was responsible to manage. While we had no specific policies then against personal use of company facilities, I was concerned. I approached the letter writer to discuss the situation. She told me she'd written the letters on her own time to practice using our word processor. What should I do?" · "A fellow employee told me that he plans to quit the company in two months and start a new job which has been guaranteed to him. Meanwhile, my boss told me that he wasn't going to give me a new opportunity in our company because he was going to give it to my fellow employee now. What should I do?"

4. Explain how a manager’s ethics impact those of employees.
As leaders and management begin to illustrate the corporate philosophy and code of conduct or ethics themselves, there's a trickle-down effect. Managerial ethics means making your values SHOW. This, in turn, motivates better behavior in others.
A recognition of leadership values and ethics also communicates a sense of regard and respect toward everyone in a company – no matter their position. That respect inspires people to do their best daily. And it also supports your staff in knowing what kind of decisions are supported by the business.
In most cases, workplace behavior ethics begins with simple psychology. Know your company, know yourself and know your people.
Have a solid vision for the future of your firm, inspire others to believe in that vision, and really walk the talk of managerial ethics. Leaders and managers whose actions follow their words enable a generally more positive and ethical workplace.

5. Discuss factors that should be considered in developing a managerial code of ethics
1. Review any values need to adhere to relevant laws and regulations; this ensures your organization is not (or is not near) breaking any of them. (If you are breaking any of them, you may be far better off to report this violation than to try hide the problem. Often, a reported violation generates more leniency than outside detection of an unreported violation, particularly per the new Federal Sentencing Guidelines.) Increase priority on values that will help your organization operate to avoid breaking these laws and to follow necessary regulations Review which values produce the top three or four traits of a highly ethical and successful product or service in your area, e.g., for accountants: objectivity, confidentiality, accuracy, etc. Identify which values produce behaviors that exhibit these traits Identify values needed to address current issues in your workplace. Appoint one or two key people to interview key staff to collect descriptions of major issues in the workplace. Collect descriptions of behaviors that produce the issues. Consider which of these issues is ethical in nature, e.g.., issues in regard to respect, fairness and honesty. Identify the behaviors needed to resolve these issues. Identify which values would generate those preferred behaviors. There may be values included here that some people would not deem as moral or ethical values, e.g., team-building and promptness, but for managers, these practical values may add more relevance and utility to a code of ethics Identify any values needed, based on findings during strategic planning. Review information from your SWOT analysis (identifying the organization's strengths, weaknesses, opportunities and threats). What behaviors are needed to build on strengths, shore up weaknesses, take advantage of opportunities and guard against threats? 5. Consider any top ethical values that might be prized by stakeholders. For example, consider expectations of employees, clients/customers, suppliers, funders, members of the local community, etc Collect from the above steps, the top five to ten ethical values which are high priorities in your organization (see item #7 below for examples). 7. Examples of ethical values might include a) Trustworthiness: honesty, integrity, promise-keeping, loyalty b) Respect: autonomy, privacy, dignity, courtesy, tolerance, acceptance c) Responsibility: accountability, pursuit of excellence d) Caring: compassion, consideration, giving, sharing, kindness, loving e) Justice and fairness: procedural fairness, impartiality, consistency, equity, equality, due process f) Civic virtue and citizenship: law abiding, community service, protection of environment 8. Compose your code of ethics; attempt to associate with each value, two example behaviors which reflect each value. Critics of codes of ethics assert that they seem vacuous because many only list ethical values and don't clarify these values by associating examples of behaviors Include wording that indicates all employees are expected to conform to the values stated in the code of ethics. Add wording that indicates where employees can go if they have any questions Obtain review from key members of the organization. Get input from as many members as possible Announce and distribute the new code of ethics (unless you are waiting to announce it along with any new codes of conduct and associated policies and procedures). Ensure each employee has a copy and post codes throughout the facility Update the code at least once a year. As stated several times in this document, the most important aspect of codes is developing them, not the code itself. Continued dialogue and reflection around ethical values produces ethical sensitivity and consensus. Therefore, revisit your codes at least once a year -- preferably two or three times a year (Note that you cannot include values and preferred behaviors for every possible ethical dilemma that might arise. Your goal is to focus on the top ethical values needed in your organization and to avoid potential ethical dilemmas that seem mostly likely to occur.)

6. Explain management theories and their applications (SM:030)
8.05 Recognize management’s role to understand its contribution to business success.
Explain management theories and their applications (SM:030)

7. Introduce topic of management theories to students.
Discuss the importance of management theory.
There are a wide variety of management theories in the world— often contradicting each other. The use of one theory might skyrocket a business to financial success, while the same theory sinks another company’s future. You’ll even find that no one theory fits all businesses under all circumstances. So, which one should you follow? A good starting point is to develop an understanding of what management theories exist.
Management theories aid in pinpointing the causes of business success or failure.
They help managers predict the outcomes of their actions under certain circumstances.
Management theories facilitate analysis of outcomes; i.e., if a management theory has been followed, but the action failed, managers can analyze the situation and fine-tune the theory so that better results are obtained next time.

8. Explain what management theories accomplish.
Management theories are used to sort and classify complex, confusing experiences so that their differences are showcased and better understood. Managers are then better able to make increasingly more accurate predictions about the outcomes of their actions.

9. Describe the nature of scientific management theory in classical management
Scientific management theory involves analyzing the relationship between human resources and the tasks they perform to increase the efficiency with which the tasks are done. This involves breaking tasks into subtasks, finding better ways of doing the tasks, and reorganizing the tasks so that the work is done most efficiently. This theory is usually associated with time-and-motion studies. Workers specialize in performing one small aspect of the total job. The emphasis is on maximum output from workers with minimal strain, waste, and inefficiency.

10. Identify problems associated with scientific management theory.
Workers often become bored with the small, very specific tasks that they are required to do.
The theory does not account for differences in people. In other words, what method is most efficient for one person, might not necessarily be most efficient for others.
Workers could purposely under-perform in order to set the bar lower for their performance and output.
Some people claim that scientific management theory led to the rise of labor unions.

11. Discuss the nature of administrative management theory in classical management.
Administrative management theory focuses on development of an organizational structure that is both highly efficient and effective.
An organizational structure is the system of tasks and authority relationships that controls how employees use resources to accomplish organizational goals. Key aspects associated with administrative management theory include having clearly identified lines of authority, adhering to set rules and procedures, having a system of task relationships, and providing fair rewards and compensation.
A system is a set of interacting or interrelated parts working as a whole.
Out of this management system came the term bureaucracy: a formal organizational system that ensures efficiency and effectiveness by holding employees accountable for their actions, promoting employees on the basis of their performance rather than their connections, telling employees what they are responsible for doing, clearly identifying lines of authority so that people know who to report to, and following rules and procedures so that business operations are clearly spelled out.

12. Describe the nature of behavioral management theory.
Behavioral management theory focuses on the way managers should personally behave to motivate and coordinate employees in order to encourage them to perform at peak levels. Managers endorsing behavioral management believed that understanding employee motivation, conflict, expectations, and group dynamics increased productivity. They felt that employees should be treated as individuals—not as machines. Their philosophy was that if employees are happy, they will perform well and support the business. Human resources management grew out of behavioral management theory.

13. Discuss the nature of management science theory.
Management science theory relies on the use of quantitative methods to guide managers’ decision-making. Managers use mathematics, statistics, modeling, linear programming, and other quantitative techniques to make their decisions. From management science theory have come operations management, total quality management (TQM), and management-information systems.

14. Describe the nature of organization-environment theory.
With organization-environment theory, managers believed that forces, conditions, and influences outside the organization must be considered when making business decisions. With organization- environment theory, managers’ perspective of business grew larger, recognizing that the business does not operate in isolation.

15. Explain the nature of the contingency theory of management in integrated perspectives of management.
The contingency theory of management recognizes that change is a constant that businesses will always be confronting. For businesses to succeed in a dynamic, changing world, they must be flexible and innovative. The supporters of this theory recognized that there was no one best way to structure a business and that businesses need to respond to variables, or contingencies, that they face at the time. This indicates that organizations that have different structures can both be successful and that departments within an organization may be influenced by different contingencies and may need to be structured differently. They indicated that a business’s size, the technology it uses, and its operating environment are the three factors that influence an organization’s structure.

16. Discuss the nature of the systems theory of management in integrated perspectives of management.
Systems theory recognizes management as a set of distinguishable, but interrelated and interdependent, parts operating together to achieve a goal. It recognized that when a change occurs in one part of a system, the other parts of the system are also affected. This theory combines scientific management with behavioral management. It is project-based, relying on the use of scheduling tools such as Gantt charts. Managers following a systems theory recognized that they could not make decisions without considering the impact on others.

17. Describe the nature of the chaos theory of management.
The chaos theory of management takes the view that events cannot be controlled or predicted; therefore, they can’t be planned with any degree of accuracy in the long term. Likewise, businesses can’t operate on the basis of rigid instructions and objectives. Instead, they need to function on the basis of shared values. Business systems in today’s workplace have become increasingly complex. This causes companies to seek stability by combining parts of a system or parts of another system. The business becomes more and more unwieldy until systems split apart or fail. Chaos leads to creativity and innovation.

18. Student Activity
Students are to conduct Internet research to develop an understanding of classical management theories, behavioral management theory, management science theory, and organization- environment theory.
Students should record their findings on the handout Manage This Theory (page 5-208).
Then, they should develop their own theory of management and record it on the same handout.