Structural Causes Of Unethical Behavior Within An Organization

geomorphologic Causes Of wrong Behavior Within An OrganizationTradition totallyy, arrangements function at heart a definite influence of dielines and protocols that inherently form a structure in an governing. Pugh defines an plaqueal structure as a ranked concept of subordination of entities that work and contribute to serve maven common aim. Activities much(prenominal) as lying-in allocation, coordination and supervision ar carried reveal to achieve governingal goals.Organizations atomic number 18 ballock entities that distribute tasks done specialization and create a timeworn piece of processes to create an efficient and effective workplace environment to increase productivity speckle saving cost. Standard run procedure protocols, instruction protocols and standard set of rules and orders ar implemented throughout the government activity to ensure all employees perform their tasks as they are supposed to in the proper way. For instance, in a car a ssembly line, factory workers and engineers pass water to follow a certain set of guidelines to ensure the superior of the cars. Testing for safety and caliber are standardized in every manufacturing branch not but throughout the country but internationally. Similarly, McDonalds provide standard operating procedures for every franchise throughout the globe in order to maintain quality and the phoners reputation (Griffin, 2012).Although formal brass sections provide a set of guidelines and standard procedures, in a situation where respectable ratiocination-making takes place, these standard codes go against to provide a clear cut solution to the dilemma, thus re uncluttering in wrong dispense which are caused by the structure of the organization. Organizations do provide codes of consider and honorable code doctrines to employees prior to their hiring but implementing those codes are entirely up to the employees and their spry supervisors. Even the chief executive of ficer of a broad(prenominal) society potty denounce unethical conclusivenesss to his accept discretion contempt being bound to the ethical codes of conduct of the corporation in which he serves. Moreover, considering he is the man in point of the entire corporation, it is purge more likely that he impart not be held responsible for his unethical decisions.When the organization structure fail to balk unethical carriage, ultimately the profitability and sustainability of a corporation ordain be affected. This is where strict corpo point governance needs to be put in place in order to minimize unethical behavior inwardly an organization. In order to solve unethical behavior and improve organization structure, we must first understand how a structure basin fail to prevent unethical behavior. Furthermore, we must reveal the fibers of unethical behavior that can arise in ethical situations where an organizations structure is ineffective. Finally, we leave alone besides elucidate on previous researches to identify ways to minimize unethical behavior at heart an organization by, among other things, improving the structure of the organization.1.2.1 capital of Massachusetts Consulting conventionFounded by Bruce D. Henderson in 1963, The Boston Consulting stem (BCG) is a global heed consulting firm that has successfully appeared in the top 15 of Fortunes Best Companies To roleplay For septenary social classs in a row. As oftentimes as it was a subsidiary of The Boston caller-up, BCG currently has 77 offices of its own in 42 countries all across the macrocosm.In attempts of trying to understand the reputation of pricing in a manufacturing pains and as a result of work done for a semiconductor manufacturer, The Boston Consulting convocation came up with its first breakthrough don as the experience curve in 1966. The experience curve states that the whole of measurement of measurement of measurement cost of a product little by little dec reases as cumulated volume and production experience increases. Ultimately, the supposition stresses that it is crucial and Copernican to enter youngly introduced fields and take hold of as much securities industry share as possible. By doing this, an organization will be able to gain advantage over other late-arriving organizations in the corresponding field and thus, eliminating any sort of competition. (Refer to Appendix C)The Boston Consulting collection ground substance (BCG inter cellular substance) alike known as the harvesting-share hyaloplasm was introduced in 1968. The mannikin of the BCG ground substance consists of a box with four quadrants that is jibeed use terms such(prenominal) as change cows, dogs, question marks and stars. The terms of the framework represent harvest rate, grocery share and negative and positive flow of notes. The main goal of the framework is to achieve a balance between bills cows, question marks and stars and to sell off the d ogs. As soon as the theory was introduced, the terms of the framework fastly became fixtures in the world of duty. In the homogeneous year, BCG was released as a subsidiary from The Boston partnership. (Refer to Appendix D) contempt the departure of a a few(prenominal) prominent and top individuals, The Boston Consulting Group became an in regardent phoner in 1975. BCG was one of the first few companies to perform the Employee Retirement Income Security Act as the alliance recognized its benefits and was quick to take advantage of the act. Through this act, The Boston Consulting Group was allowed to establish an employee shop ownership program. The establishment of the program made way for the process of acquire BCG from The Boston connection to begin. By 1979, the buyout was completed five years onwards of the original schedule. (Refer to Appendix E)The year 1985 paved way for or so study changes at top level management for The Boston Consulting Group as its founder a nd then Chief Executive Officer (CEO), Bruce D. Henderson retired. He was succeeded by John Clarkeson who assumed the position of CEO and Alan Zakon who took on the position of head of the societys maturate. In 1992, Henderson died at age 77. Few people have had as much impact on international avocation in the arcminute half of the twentieth century as the founder of The Boston Consulting Group, eulogized the fiscal Times upon Hendersons death. (Refer to Appendix E)In 2003, Hans-Paul Burkener was elected the fifth President and CEO of The Boston Consulting Group by the caller-outs partners. As of the year 2011, The Boston Consulting Group was ranked second on Fortunes 100 Best Companies To Work For, mug its sixth consecutive year on such a esteemed list. BCG continues to explore distinguished topics that have significant effects around the World as the company aims to provide better and more quality helping in helping organizations to combat the battle of ever changing lan dscapes in the management of smorgasbord (Refer to Appendix F).1.2.2 customary electricalIn 1890, doubting Thomas Edison established his own company and named as Edison habitual galvanic company by bringing his incompatible affaires to raiseher. Two years later, Edison General electric Company incorporated with Thomson-Houston Company and, then they named the impudent organization as General electric automobile Company. The hot organization the General electrical Company is a diversified technology and financial services company. General electric car Company has different font of products and services. They main product and service is householder appliances and General Electric Company is one of the badst manufacturers of study appliances in the world. besides that, General Electric Company also has other different type of products and services such as aviation, consumer electronics, customer training, electrical distribution, energy, finance- billet, healthcare, o il gas, water, lighting, software product services, rail, and other.In the early 1890s, the first General Electric appliances electric fans were produced, and a full line of heating and cooking devices were genuine in the year 1907. A few years later, General Electric Company developed the first air programmee engine booster for the fledgling U.S. aviation exertion. similarly that, the plastic filaments for light bulbs were created in 1930, and led to the first General Electric Plastics department.Through the years, General Electrics leaders have built a portfolio for the diversity of management and leading communication channel organisationes. Thats made the General Electric Company render a most success company that drives growth and swerves the production costs increase financial fortissimo and Controllership that allow it to capitalize on opportwholeies through numerous cycles. And, they have a set of common determine that allows it to grammatical case any environmen t or situation with confidence. In 1971, the General Electric Company with the helped from McKinsey developed a General Electric/McKinsey Matrix.The General Electric/McKinsey Matrix was developed in year 1971, with the helped from McKinsey and consulting firms. And, General Electric Company used it to measure or decides which Strategies Business Units (SBU) should invest, retain, or bare. The GE intercellular substance/McKinsey ground substance is one that cans helps to improve the companys channeles building block speciality and helps to increase tradees whole draw. Besides that, this matrix is measure the blood unit through the duty units attractor and business strength. When the business units attractiveness and strength is exalted, the company should time lag invest for gain more profit. On the other turn over, when the business units attractiveness and strength is medium, the company should retain or selectively invest. But, when the business units attractiveness and strength is low, it is the time for the company to exit that business unit or stop invests in that business unit.The aim of this portfolio digest isTo decide the company should invest more or divest.To helps the new product or business unit to develop a growth strategies.To decide which business unit should retain or not.2.0 Literature Review2.1 Unethical Behavior Resulting from ill luck of Organizational StructureMany researchers were found to focus on unhomogeneous aspects that management fails to prevent different types of unethical behavior within a corporation. Some of the unethical behavior that is being studied includes conflict of affair, faux advertising, discrimination, insider trading, and harassment among others.For instance, Sherry, Shilbury and Wood (2007) found that as sport generates a fully-fledged business, at that place is an increased complexity of ethical douses within sports management and conflict of interest presents similar structural elements as traditional businesses. Practices such as providing benefits, want and obligation are magnified, as on that point are also social expectations and values emphasized in sport and sporting organizations. To illustrate the issue of conflict of interest arising from structural failing in this matter, five of the seven board members of the Californian Horse Racing Board actively own or breed racehorses and at least six acknowledge that they guess at the track (Sherry, Shilbury, Wood, 2007). This clearly is a conflict of between the board members personal interest and the interest of the corporation. Conflict of interest issues are normally not clearly outlined within the corporation, especial(a)ly for people in top management and on that point is no obvious way to identify a person who has a conflict of interest because a hierarchical organization does not normally scrutinize an employees personal life. In this case, the single of the sport will be compromised, as society wil l not look with favor on the races for fear of them being cheated out of their bets.Furthermore, despite laws and regulation outlawing discrimination while hiring, there is serene a impregnable informal form of discrimination in the workplace towards different races or genders. As found by Pompper (2011) after interviewing 36 spirit aged, middle income women of African-American, Asian-American and Hispanic ethnicity in the communications industry, glass ceilings in communication organization remains impenetrable especially for women of these ethnicities. The research found that there is a amplyer level of financial uncertainty for middle aged, middle-income women of color within media organizations. None of the participants of the research reported having equal salary or spot with male colleagues that do comparable work. While there have been strides to reduce employment discrimination in many countries, informal forms of discrimination that are not specifically outlined in cor porate policies will still occur, especially in a society or country that inherently, in their refinement, practice discrimination against gender or race.2.2.1 Boston Consulting GroupIn a publication titled Strategic Business Models, Frederick Betz discusses the six different kinds of generic business models that can be used in operating a company. One of the generic business models that he highlights is The Boston Consulting Group Matrix (BCG Matrix).Betz defines a business model as a strategical technique of how ones company now operates and how it should change to operate in the future. Also, he describes a business model as an abstraction of business identifying how that business profitably sop ups money.Besides that, he identifies a business model as abstracts intimately how inputs to an organization are transformed to value-adding sidings. The transformation of input resources into output products or services is performed by the processes and operations of the business. F urthermore, he mentions that a strategic business model is a systematic list of policies that will guide the future specification of inputs, outputs, processes and values of the complete operations of the business of the corporation.In a publication titled Kiechels History of Corporate Strategy, Robert J. Allio and Robert M. Randall interviewed Walter Kiechel III about his book titled The Lords of Strategy The Secret Intellectual History of the refreshed Corporate World (Harvard Business Press, 2010). In his book, Kiechel chronicles the rise and stumbles of a repress of leading consultancies primarily Bain, Boston Consulting Group and Mc Kinsey after having interviewed originators of the outcome ideas behind strategy and strategic movement and executives at the companies where it was first practiced.In his book, Walter Kiechel III regards The Boston Consulting Group as the Lords of Strategy. He explains that the pioneering consulting efforts of the organization has helped educa te a sense of empiricism that is a fundamental key in competing. He defines empiricism as the ability to identify and recognize facts that are essential in gaining advantage over other late-arriving organizations in the same field. Also, the concepts developed by The Boston Consulting Group are made up of easy-to-understand and familiar patterns that make the task of interpreting the data less difficult. This indirectly enables one to figure out what needs to be done.Besides that, Kiechel did not fail to draw attention to the opinions of critics and his personal opinion about The Boston Consulting Group Matrix (BCG Matrix) in his book. Critics pointed out that a certain organization can define and characterize the shares and size of a targeted merchandise. However, it is impractical and virtually impossible for the same organization to predict the exact growth of the food market. Kiechel powerfully believes that an organization should associate with the hidden message of the BCG Matrix. An organization should take the green light to identify and accurately comprehend the competitive situation that it faces, the data for rationality the business that it is involved in and the potential that the organization possess. Otherwise, you are odd at the mercy of every business units manager telling you that next year is going to be different This baby is really set to take off. (Kiechel, 2010).2.2.2 General ElectricNowadays, General Electric can be more successful. If should related to the McKinsey and Company consulting firm. Because General Electric Company get the help from McKinsey and Company consulting firm, and developed a more complicated matrix (Figure 2.1). Through the internet research, the General Electric Company used GE matrix/McKinsey matrix as their think system for management of diversity. From my common knowledge about the GE matrix/McKinsey matrix, it is a strategic that will separate from the mother company into many little business units and keep an eye on which business unit should invest more, retain, or divest.From Strategic Management theory and case study, by Tunchalong Rungwitoo, the General Electric / McKinsey Matrix, is a nine cell matrix from two dimensions, which is industry attractiveness and business strength. For the use of General Electric/McKinsey Matrix, they use the GE matrix/McKinsey matrix to identify whether the weakened business units should invest, retain, or divest. Besides that, it also can fits perfectly to the companys strengths and helps to work out the most attractive industries or markets.Besides that, General Electric Company can see the status of their business units and suggest the strategy the business fell in which categories through the General Electric/McKinsey Matrix (Figure 2.2). The erect axis of the General Electric/McKinsey matrix is industry attractiveness, which is larnd by the factors such as market growth rate, market size, demand variability, industry profitability, industry rivalry, global opportunities, and others. And, the horizontal axis of the General Electric/McKinsey matrix is the strength of the business unit. Some factors that can be used to determine business unit strength include market share, growth in market share, brand equity, distribution channel access, production capacity, and profit margins carnal knowledge to competitors.From International Journal of Humanities and Social science, the General Electric/McKinsey Matrix contains the identification and assessment of both external and internal factors, which are industry attractiveness and business strength on a nine-cell grid. To grow, to hold, or to glean are the categories used to classify both attractiveness and strength (Figure 2.2). When that is high attractiveness and high business strength (Leader), the company should seek control and maximize investment. When that is medium attractiveness and medium business strength (Proceed with care), the company should specializ e and invest selectively. And, when that is low attractiveness and low business strength (Withdrawal), the company should attack rivals and time exit.3.0 Data Analysis and Discussion3.1.1 Structural Causes and How to Solve ThemAn organization can have a change or a alter structure. A centralized organization refers to an organization in which important decision-making tasks and power are given and carried out by few leaders. As express by Vitez (2012), centralized organization depends on a single person to give direction and make decisions for the corporation. A decentralized organization, on the other hand, give autonomy to individuals in middle and refuse management levels to make critical decisions and usually carry out decisions as part of a team (Vitez, 2012). The hierarchy of the organization also tends to be much more flat compared to centralized organizations.In a centralized organization, ethical conduct is often disseminated in the form of ethical codes of conduct an d corporate policies. It is easier to control and minimize unethical behavior within an organization with a central structure as employees have clearly pen guidelines to follow in the corporation and if they fail to do so, they will be reprimanded for it. However, an employees own personal ethical standards whitethorn conflict with what is expected of him as a member of the organization and its corporate culture (Ferrell, Fraedrich, Ferrell, 2012). Centralized organization also creates a groupthink environment in which in an organization culture where unethical behavior is prevalent, employees knowingly commit unethical acts or fail unethical acts with full knowledge that these behaviors are morally wrong. As stated by Sims (2003), the presence or absence of ethical behavior in organizational members actions is both influenced by the prevailing culture (ethical climate) and, in turn, partially determines the cultures view of ethical issues (Sims, 2003).Furthermore, central code s of ethics are created out of place setting of ethical dilemmas and whitethorn not be suited for delicate situations with no clear-cut solution. While having an ethical code may inhibit major ethical problems such as physical and sexual harassments that are clearly morally wrong and unethical to begin with, subtle ethical problems may not be outlined in the ethical code of the company such as alienating co-workers of other races.Conversely, a decentralized organization gives more freedom to employees to make decisions and top management usually destine decision making to middle and low management. In this type of structure, there is more flexibility to each unit of business to carry out tasks and make decisions. According to Gitman and McDaniel (2008), decentralized organizations benefit by quicker decision making, increased level of innovation and creativity, greater organizational flexibility, faster study of lower-level managers, and increased level of job satisfaction and e mployee commitment (Gitman McDaniel, 2008).Despite this, there is also a risk of unethical practices and behavior occurring in a decentralized organization. As employees are given more power to make decisions, they are now more susceptible to moral hazards in which an employee will have a higher tendency to take risks. As decentralized organizations have fewer internal controls such as corporate policies and code of ethics, these organizations rely on shared values (Ferrell, Fraedrich, Ferrell, 2012). Therefore, it is harder to control employee behavior especially if they do not believe in the shared values of the organization.To solve these structural problems, an organization must first acknowledge the possibility of unethical behavior occurring within its framework. An organization must realize the flaws that each type of structure presents and ways to combat these flaws to minimize risky and unethical behavior among its employees. In this sense, organizations should look into allocating resources to study and research the structural problems and implement the solutions into the organizational structure. Organizational change is nearlywhat harder and more costly to implement in a centralized organization because it involves changing all policies from top to arsehole within the organization as compared to a decentralized organization, which is more fluid, and set to change quickly. New rules, values and organizational culture to minimize unethical behavior must always be monitored to gauge the success of these new policies.Furthermore, an organization must tailor its ethical standards to the type of structure that it uses. For instance, in a centralized organization there should be more way to maneuver ethical dilemmas that does not strictly coincide with corporate policies. Moreover, centralized organizations should provide a form of outlet for employees to air grievances about ethical dilemmas and adopt a situational approach to ethical decision makin g in the corporation.On the other hand, in a decentralized organization, top management should constantly portray ethical values outwardly through their actions so that it empowers employees to follow their stride and perform ethically as well. Leading by example is one of the approaches to keep employees from committing unethical acts in this type of organizational structure. There should also be some form of central codes of conduct, even in a decentralized organization to keep employees in concord and to maintain the reputation of the corporation.Other solutions to prevent unethical behavior are to set up a committee that will look into employees indiscretions in the company and evaluate whether these indiscretions are justified in the given circumstances. or else of penalizing the employee by suspending them and creating resentment, the employees should be sent to ethics classes to help them rehabilitate their behavior. ethics classes are a good way to disseminate ethical val ues within an organization but having classes in which the instructor tells the employees the rules, there should be a more interactive environment where employees get to try their hand in solving ethical dilemmas in the workplace. Ethics classes and training should also be given to new hires as part of their training in the corporation. Additionally, the organization can provide motivational training for employees to get them invested in the interest of the company and the companys bottom line that is the customers. A motivated employee is a hardworking and productive employee and an employee that is less likely to make unethical decisions that may jeopardize the company and its customers.3.2.1 Boston Consulting Group Planning System puffy companies that have diversified its business into other strategic business units usually face challenges in allocating resources among its units. The Boston Consulting Group Matrix Growth-Share Matrix (BCG Growth-Share Matrix) is a planning model for managing portfolio of different business units that is based on combinations of market growth rate and relative market share. The market growth rate represents industry attractiveness and relative market share represents the strength of a company within the industry relative to its competitors. Thus, the position of a company on the BCG Growth-Share Matrix indicates uptake of gold needed to diversify into a particular business and generation of immediate payment through that particular business.The portfolio planning model of the BCG Growth-Share Matrix is divided into four grids that are represented using four symbols cash cow, dog, question mark and star. Cash cows are used to represent a business unit in a mature industry that has a large market share. It generates more cash than it consumes which in return can be used to invest in other business units. Business units that are categorized as cash cows should be milked in order to gain profits while investing as little cas h as possible into that particular business unit. Besides that, dogs are used to represent a business unit in a mature industry that has a small market share and a low growth rate. It does not require high cash consumption nor does it result in high cash generation. Even so, business units that are categorized as dogs are cash traps because the cash invested is tied up in a business unit that has little possibility. Instead, the cash invested into that particular business unit can be deployed into other more rewarding business units. (Refer to Appendix A)In accessory to that, question marks are used to represent a business unit that has a small market share in a high growth market. Due to this, it consumes more cash than it generates. However, business units that are categorized as question marks have the potential to become stars and eventually cash cows if high investments and resources to grow market shares are fueled into that particular business unit. Nevertheless, it is still a questionable decision as it is unknown if it will succeed and become stars and cash cows. Furthermore, stars are used to represent a business unit that has a large market share in a high growth market. It requires high cash consumption but at the same time, it results in high cash generation. Thus, the flow of cash in each direction is evened out. If successful, business units that are categorized as stars will eventually become cash cows when its industry matures. (Refer to Appendix A)Despite its many advantages, the BCG Growth-Share Matrix has its disadvantages as well. The main limitation that has been identified is the questionable link between market share and profitability. This is due to the fact that an increasing market share can be very expensive and may not result in high cash generation as predicted. On top of that, the matrix overlooks many factors that contribute to the profitability of a business unit. For example, market growth rate is only one of the many factors that represent industry attractiveness. Also, there are additional factors that represent the strength of a company within the industry relative to its competitors besides relative market share. (Refer to Appendix B)Moreover, the framework of the matrix assumes that each business unit is independent and does not depend on other business units run by the company. However, in some large companies, this is most certainly not the case. For instance, business units that are categorized as dogs which do not require high cash consumption nor does it result in high cash generation may have been formed in order to strategically help other business units run by a particular company. (Refer to Appendix B)3.2.2 General Electric Planning SystemOn the other hand, the General Electric also had own portfolio analysis for the diversity of management or Strategies Business Units (SBU), which is General Electric/McKinsey Matrix. General Electric/McKinsey Matrix is a business portfolio analysis on Str ategies Business Units (SBU) that based on the business unit strength and the market attractiveness. The business unit strength is determined by some factors such as the market share, growth in market share, and others. And, the market attractiveness is determined by the factors such as market growth rate, market size, and others. Thus, the General Electric will invest the business unit through the markets strength and the markets attractiveness.The General Electric/McKinsey Matrix is nine-cell portfolio matrix which will measure the business unit strength and attractiveness, and let the company know whether they should invest, retain, or divest that business unit. The advantages of this matrix are telling the company their business unit strength and attractiveness and what decision should them make. When the company should invest, retain, or divest the business unit? When the business unit falls into the categories A, B or D (Figure 2.3) is the time for company to invest. Because a t that time, the business unit has a quite strong strength and market attractiveness, so the company should invest for growth or to maintain that business unit at that kind of category. On the other hand, when the business unit falls into the categories C, E, or G (Figure 2.3) is the time for company to retain the business unit. This is because the business unit does not have quite strong business strength and market attractiveness. But, the company also can try to invest that business unit for get more earning. And, when the business unit falls into the categories F, H, or I (Figure 2.3) is the time for company to divest that business unit or plan to exit that business unit because the business unit has weak business strength and market attractiveness.Although the General Electric/McKinsey Matrix has many advantages such as it will looks through all the business unit sides such as market size, market growth rate, market share, and what decision should them make depend on the busine ss units strength and attractiveness, it has forgot about the other competitors and the new business unit. This matrix totally forgot about other competitors and the new business unit, we should look at other competitors strength and attractiveness too. This is because other competitors may affect own companys strength and attractiveness and the growth rate too. And, for the new business unit, what can the new business unit should do, to invest, retain, or divest?4.0 Conclusion4.1 Organization Structure and EthicsOrganizations face many challenges when operating, one of which is the moral problems that can potentially occur within its structure. Organizations play an important rol