Month: January 2022

Ethics are moral principles that guide a person’s behavior. These morals are shaped by social norms, cultural practices, and religious influences. Ethical decision making is the process of assessing the moral implications of a course of action. All decisions have an ethical or moral dimension for a simple reason they have an effect on others. Managers and leaders need to be aware of their own ethical and moral beliefs so they can draw on them when they face difficult decisions.

Ethical decisions can involve several determinations. The field of ethics, also known as moral philosophy, shows that there are various ways of systematizing, defending, and recommending concepts of right and wrong conduct. For example, from a consequentialist standpoint, a morally right action is one that produces a good outcome, or consequence. A utilitarian perspective takes the position that the proper course of action is one that maximizes overall happiness.

Most ethical decisions exist in a grey area where there is no clear-cut or obvious decision that can be determined solely through quantitative analysis or consideration of objective data or information. Ethical decision making requires judgment and interpretation, the application of a set of values to a set of perceptions and estimates of the consequences of an action. Sometimes ethical decisions involve choosing not between good and bad, but between good and better or between bad and worse.

Ethical management is the practice of being honest and virtuous in a role as a manager. Management training will help you with this and there are several responsibilities and obligations of an ethical manager, including setting a good example, holding everyone to the same standard, and making expectations clear. In order to do this, there are four main principles of ethical management you need to keep in mind at all times.

They are as follows:

Mutual respect: Your role as a manager involves making sure that your employees all treat each other respectfully as well. While they don’t all have to agree with each other, they should show proper respect for each other’s ideas and opinions. A team that doesn’t get along on a personal level will not work will together and will be less productive.

Respect for each employee: While it’s difficult at times, it is important to make sure you treat each of your employees or team members respectfully. Everyone you work with will have different religious and cultural beliefs and should be treated fairly.

Decision making transparency: It’s incredibly important for you to make sure your employees understand why you make the decisions you do. If they realise you aren’t making arbitrary choices based on personal beliefs, they’ll be more likely to accept your decisions and work together as a team.

Procedural fairness: You may not have control of the procedures your company expects you to follow but you do have control over the procedures you can implement within your team. It is important to make sure the procedures you implement are fair to all of your employees neither favouring nor neglecting one employee or another.

Ombudsman

An organizational ombudsman is a designated neutral or impartial dispute resolution practitioner whose major function is to provide independent, impartial, confidential and informal assistance to managers and employees, clients and/or other stakeholders of a corporation, university, non-governmental organization, governmental agency or other entity. As an independent and neutral employee, the organizational ombudsman ideally should have no other role or duties. This is in order to maintain independence and neutrality, and to prevent real or perceived conflicts of interest.

Using an alternative dispute resolution (ADR) sensibility, an organizational ombudsman provides options for people with concerns, including whistleblowers, who seek to bring their concerns forward safely and effectively. Additionally, an organizational ombudsman offers coaching on ethics and other management issues, provides mediation to facilitate conflict resolution, helps enable safe upward feedback, assists those who feel harassed and discriminated against. Overall, the organizational ombudsman helps employees and managers navigate bureaucracy and deal with concerns and complaints.

The concept has been widely implemented, and has been spread around the globe, with many corporations, universities, government and non-government entities establishing organizational ombudsman programs.

The organizational ombudsman role has evolved from at least two sources:

a) An evolution from the concept of the ‘classical’ ombudsman.

b) A spontaneous creation and re-invention of the idea of an internal, neutral conflict resolver often by senior managers who had never heard of the classical model.

Evolution from the classical model: the classical ombudsman appeared in Sweden in the early 19th century as an independent high-level public official responsible to the parliament or legislature and appointed by constitutional or legislative provisions to monitor the administrative activities of government. This model has been copied and also adapted in many ways in many countries and milieus.

The spontaneous creation model: the organizational ombudsman role has also been regularly “re-invented” by employers who did not know of the classical ombudsman but valued the importance of a senior manager who is a neutral, independent, confidential and informal problem-solver and systems change agent. Examples appeared in the 1920s in the US and probably appeared here and there in many cultures. In many organizations the organizational ombudsman is seen as part of a complaint system or link to a complaint system, but the office is intended to function, and to appear to function, independently from all regular line and staff management and to report to the CEO or Board of Directors.

Compliance system

A compliance management system is an integrated system comprised of written documents, functions, processes, controls, and tools that help an organization comply with legal requirements and minimize harm to consumers due to violations of law.

A compliance management system is woven into every functional area in your organization, from sales to advertising to operations and administration. A good compliance management system can proactively address the risks relevant to your organization while meeting multiple regulatory requirements.

Hot lines

A hotline is a point-to-point communications link in which a call is automatically directed to the preselected destination without any additional action by the user when the end instrument goes off-hook. An example would be a phone that automatically connects to emergency services on picking up the receiver. Therefore, dedicated hotline phones do not need a rotary dial or keypad. A hotline can also be called an automatic signalling, ringdown, or off-hook service.

For debating the essentials for small business success, but looking at the commonalities of successful businesses can help bring focus. While some businesses can achieve success on the strength of a product, lack of competition or cheap labour or materials, in most instances, a successful business requires a solid foundation built on a good product idea, sound business plan, adequate capital, good management and proper accounting.

1. Setting Objectives:

The setting up of business objectives is the first thing to be done by the management. One must know as to what is to be done. Only after deciding the objective, the ways and the means will be determined to achieve the objectives. If it is a producing business, the nature of product to be produced, whether to produce the whole product or part of it should be decided. In case of service business the nature and type of service to be provided should be decided. It is not only the management which should be conversant with the business objectives but every person in the concern should know the aims and goals of the business.

2. Planning:

After determining, the objectives, the work should be planned in all its perspectives. Planning involves forecasting and laying down the course of action. It involves planning for both present and future. What is to be achieved and how it is to be achieved is of primary significance for the present. Future is always uncertain and the estimation of future happenings is very difficult. In planning for the future, an effort is made to estimate the future uncertainties and determine the possible course of action for the coming period. Thus, planning also helps the management to prepare itself for facing the uncertainties of tomorrow.

3. Dynamic Organisation:

Organisation is an arrangement by which tasks are assigned to employees so that their individual efforts contribute effectively to the achievement of clearly defined purposes. The duties and responsibilities of all person’s arc defined and they should know what they arc to do.

An effective organisation system is essential for the success of a business. Firstly, a decision should be taken about the form of ownership, i.e., sole trade, partnership, Joint Stock Company. Then a suitable internal organisation should be developed. No work should be left unassigned. The supervisors and subordinates should know their roles in the business.

4. Financial Planning:

The requirements of finance and its possible sources should be decided at the time of starting the enterprise. The purpose of financial planning is to make sure that adequate funds are raised at the minimum of cost. The required capital should be made available at all times, otherwise, it will hamper the work. The scarcity of capital and too much of it both will be bad for the concern.

The availability of excess capital may tempt the management to spend more money on inventory and on fixed assets. A proper plan is necessary for providing funds for the present needs and future developmental plans.

A financial plan will determine:

(a) The needs of capital

(b) Sources for collecting funds

(c) Administration of capital structure

5. Location and Layout of Plant:

One of the important decisions to be made by the management at the time of starting a concern is regarding the location of the plant. The plant should be located at a place where all factors of production arc available at lowest costs. The aim of reaching an optimum point will be achieved only if the place of location of the businesses is suitable. Raw materials, labour, power and markets for the finished products should be available near the place of location.

After deciding about location, a decision is made about layout of the plant. The setting up of the machinery and equipment should be systematic so that the flow of production should be smooth and uninterrupted. The office building and warehouse etc., should be located near the factory. Proper layout will enable the economical use of available space. Proper location and layout of the business are necessary for the success of a business.

6. Marketing Environment:

The marketing aspects of a business are more important than even production. There is no use of producing a thing if it cannot be sold. Marketing management is essential for earning profits. Management should decide about the channels of distribution. Whether to sell directly to consumers or to sell through wholesalers? It should be decided after taking into consideration various aspects of goods.

7. Research Team:

In the changing technological world, it is essential to use latest devices for production and marketing of goods. Change is the essence of business. Every day, new production methods are found. Consumers’ needs and preferences should be taken into consideration in devising production and marketing policies. Research and development should be given due place in the business.

One can compete with changing business world only through research programmes. If attention is not given to research work then it will become difficult to stay in business for a large period. So, research activities are necessary for the success of an enterprise.

8. Dynamic leadership:

The success of an enterprise will depend upon the efficiency of its management. The task of management is to plan, organize, co-ordinate and direct various activities for achieving business objectives. This will be possible only if the leadership is dynamic. The operation managing the concern should have foresight, initiative, courage and aptitude for a change. These qualities are necessary in the leadership to take the concern on the road of progress.

A Government company is one in which not less than 51% of the paid-up share capital is held by the Central Government or a State Government or jointly by both.

A Government company may either by wholly owned by the Government, in which case 100% capital is provided by Government; or may be owned by the Government (holding minimum of 51% share-capital) and private concerns/individuals (holding maximum of 49% share capital).

Features of Government Companies

1. Government companies are governed by the provisions of the Companies Act, 1956.
2. The whole of the capital or 51% or more is owned by the government.
3. Its employees excluding those on deputation are not civil servants.
4. The Government Company employs its own staff, and they do not become the employees of the government
5. Its personnel policies are subject to its Articles of Association.
6. In case it is fully owned by the government, government provides the funding and it derives income from sales of its goods and services.
7. In case it is partly funded by the government, it derives funds from the government as well as its shareholders.
8. All or a majority of directors are appointed by the Government depending on the shareholding pattern.
9. It is a body corporate and can enter into contracts in its own name.
10. It can sue and be sued in its own name.
11. The Memorandum and Articles of Association lays down its objectives, scope of activities and rules of internal management. These are prepared by the Government, and once prepared they cannot be changed without proper permission from the Company Law authorities.
12. It is generally exempt from many of the accounts and audit laws. Constant parliamentary scrutiny, budgetary, administrative and legislative controls are absent.

Advantages of Government Company:

(i) Internal Autonomy:

A government company can manage its affairs independently. It is relatively free from ministerial control and political interference, in its day-to-day functioning.

(ii) Easy Formation:

A Government company can be easily formed under the Companies, Act, just by an executive decision of the government.

(iii) Private Participation:

Through Government company device, the government can avail of the management skills, technical know-how and expertise of the private sector and foreign countries. For example, the Hindustan Steel Limited has obtained technical and financial assistance from the U.S.S.R., West Germany and the U.K. for its steel plants at Bhilai, Rourkela and Durgapur.

(iv) Discipline:

The Government Company is subject to provisions of the Companies Act; which keeps the management of the company active, alert and disciplined.

(v) Easy to Alter:

Objectives and powers of the Government Company can be changed by simply altering the Memoranda of Associating of the company, without seeking the approval of the Parliament.

(vi) Professional Management:

A Government company can employ professionally qualified managers; because it has its own personnel policies.

(vii) Public Accountability:

The Annual Report of a Government company is presented to the Parliament/ State Legislature. These reports can be discussed and debated there.

Demerits:

• There is less freedom and flexibility. It cannot modify its business or change its policies and practices in tune with the changes in the environment.
• Lack of autonomy is a serious drawback of government companies. It is subject to the interference of the Minister and bureaucrats who run the department.
• There is no incentive for individual interest and initiative. Employees who run the company are paid a fixed salary. They are not going to benefit if the company does well nor is their pay and benefits affected if the company incurs losses. Therefore, employees do not display drive and enthusiasm to make the company successful.
• Due to red-tapism, decisions are delayed. It would not be able to capitalize on new opportunities. Sometimes decisions are de1ayed for fear of making mistakes.
• Since employees enjoy job security there is no serious attempt to increase efficiency of operations. Further, the top management might be transferred if a new government comes to power. Therefore, there is not much interest is putting in dedicated efforts.
• Government companies are free from parliamentary scrutiny, budgets audits etc. Therefore, there might be a tendency to conduct its business in an inefficient and reckless manner. This might eventually lead the company to losses.