Section A. Question no 2.

. Explain manager as a person and the nature of ethics and how importance is ethics practiced in any organization? What will happen if there is no proper planning, organizing, leading and controlling application in organization? Nature of ethics Managers sometimes make the mistake of assuming they are acting in an ethical manner as long as they are not breaking any laws. However, just because a specific act is legal, it may not necessarily be ethical. Ethics can be based on a variety of subjective factors, including laws, religious views and individual feelings. However, the key to recognizing whether a specific behavior is ethical is to ask yourself if it violates another person's rights in any way. Common ethical traits needed in management are integrity, honesty, fairness, objectivity and transparency. Managers are held to these standards because they directly affect the livelihood of employees. These traits may be found in the organization's mission or values statement. Managers should care about ethics for a variety of reasons. Of course, there are the obvious reasons such as keeping one's job and staying out of jail. However, ethical managers can also have a huge positive impact on the organization's bottom line. For example, the ethical management of an organization can lead to an increase in employee engagement and productivity. It is tied closely to the pursuit of worker motivation, value acquisition and learning principles. To increase ethics in management, managers can nurture and foster their teams and workers by improving performance through the use of learning and value acquisition tools such as seminars, tuition reimbursement for outside courses relating to work and job performance, and encouraging workers to gain transferable skills which will benefit their careers. Ethical managers do not practice negative power and realize that educating a workforce can only help meet the company's objectives and goals. Importance of ethics in an organization Ethics is important not only in business but in all aspects of life because it is the vital part and the foundation on which the society is build. A business that lacks ethical principles is bound to fail sooner or later. Ethics refers to a code of conduct that guides an individual in dealing with others. Business Ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in business environment. It deals with issues regarding the moral and ethical rights, duties and corporate governance between a company and its shareholders, employees, customers, media, government, suppliers and dealers. The ethical issues in business have become more complicated because of the global and diversified nature of many large corporation and because of the complexity of economic, social, global, natural, political, legal and government regulations and environment, hence the company must decide whether to adhere to constant ethical principles or to adjust to domestic standards and culture.

Ethics is essential as its: Protecting Fundamental Rights When companies and workers think of workplace ethics, they typically think about protection against immoral behavior and illegal activity on the job. But workplace ethics also provide protection of basic human rights in the office worldwide. According to Go Pinoy, employers in the Philippines forced children as young as 17 to work until they were exhausted, and those who were disabled once had no choice but to live in poverty. Protecting Company Assets Workplace ethical standards protect the company from employees stealing property and falsifying documents, such as expense reports. Ethics also protect an organization from employees taking sick/medical leave for vacation days, taking extended breaks or using office equipment for personal usage. The key to protecting company assets is to value employee contributions and treat workers fairly, decently and with dignity and respect. Employees who are proud of what they do for the company and feel their jobs are important to accomplishing the organization's mission are less likely to steal from their employers. Provides Emotional Security Workplace ethics provide emotional security because employees can go to work knowing other workers won't harass them, their supervisors will respect both them and their work and their co-workers will reap disciplinary measures if they steal supplies or equipment or falsify company records. Ultimately, either disciplined employees will learn from their mistakes and upgrade their ethical standards or the company will dismiss them. Such disciplinary practices foster a working environment of upstanding workers. Promotes Teamwork Organizations typically find a "gap" between the values they want their employees to emulate and the behaviors they actually reflect, says the Free Management Library. Consequently, workplace ethics programs align behaviors of workers with the values of their employers. This "meeting of the minds" fosters an atmosphere of openness, trust and partnership, all of which are critical for team building. And when employees understand their supervisors' expectations, they feel strongly motivated to excel at their jobs. Fosters a Positive Public Image Work ethics radiate in the public eye. This is particularly true for high-profile companies or for non-profit organizations that rely on government grants or private donations, because such donors need to know how you plan to use their money. High ethical standards in your workplace let such "outsiders" know that you will use their money as you've stipulated and that they will see the end results of their contributions. 2

Managers in an organization have to remember that leading by example is the first step in fostering a culture of ethical behavior in the companies as rightly said by Robert Noyce, "If ethics are poor at the top, that behavior is copied down through the organization", however the other methods can be creating a common interest by favorable corporate culture, setting high standards, norms, framing attitudes for acceptable behavior, making written code of ethics applicable at all levels from top to bottom, deciding the policies for recruiting, selecting, training, induction, promotion, monetary / non-monetary motivation, remuneration and retention of employees. "Price is what you pay. Value is what you get" - Warren Buffet Thus, a manager should treat his employees, customers, shareholders, government, media and society in an honest and fair way by knowing the difference between right or wrong and choosing what is right, this is the foundation of ethical decision making. REMEMBER: GOOD ETHICS IS GOOD BUSINESS. "Non-corporation with the evil is as much a duty as is co-operation with good" - Mahatma Gandhi. What is P-O-L-C ? (Planning, organizing, leading and controlling) What is Planning? Planning is the function of management that involves setting objectives and determining a course of action for achieving these objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. It also requires that managers be good decision makers. Planning is a process consisting of several steps. The process begins with environmental scanning. The act of analyzing the critical external contingencies facing an organization in terms of economic conditions, competitors, and customers, which simply means that planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors, and their customers. Planners must then attempt to forecast future conditions. These forecasts form the basis for planning. Planners must establish objectives, which are statements of what needs to be achieved and when. Planners must then identify alternative courses of action for achieving objectives. After evaluating the various alternatives, planners must make decisions about the best courses of action for achieving objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planners must constantly evaluate the success of their plans and take corrective action when necessary. What is organizing? Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as organizational design. The matching of organizational form, such as structure, reporting relationships, and information technology, with the organizations strategy decisions. Organizing also involves the design of individual jobs within the organization. Decisions must be made about the duties and responsibilities of individual jobs, as well as the manner in which the duties should be carried out. 3

What is Leading? Leading involves the social and informal sources of influence that you use to inspire action taken by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort toward the attainment of organizational objectives.

What is Controlling? Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include establishing performance standards, comparing actual performance against standards, and taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits, but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service. The measurement of performance can be done in several ways, depending on the performance standards, including financial statements, sales reports, production results, customer satisfaction, and formal performance appraisals. Managers at all levels engage in the managerial function of controlling to some degree. The managerial function of controlling should not be confused with control in the behavioral or manipulative sense. This function does not imply that managers should attempt to control or manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function of management concerns the managers role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives. What will happen if there is no proper P-O-L-C application in organization? The short answer is, regardless of the industry, failure is the result. The most common reasons for business to underperform (low productivity, low profits) or fail (bankrupt, cease being) are as follows: Poor cash flow management. Absence of performance monitoring. Lack of understanding or use of performance monitoring information. Poor debtor management. A combination of not paying your debtor on time and not coordinating payments with incoming cash flows. Over borrowings. The company is overleveraged and debt is not being reduced. Over reliance on a few key customers. Poor market research leading to an inaccurate understanding of the target customers wants and needs. Lack of financial skills and planning. Failure to innovate. Poor inventory management. Poor communications throughout the organization. 4

Failure to recognize your own strengths and weaknesses. Trying to go it alone. Trying to do everything yourself and not seeking external help. Whether this external help be as simple as hiring additional staff or going to professional services such as a lawyer, accountant, banker or business coach. Younger companies are more likely to go bankrupt because of shortcomings in managerial knowledge and financial management abilities. In contrast, older firms are more likely to fail because of an inability to adapt to environmental change. These are the conclusions of a new research paper that examines factors underlying corporate bankruptcies, and compares the main causes of failure between young and old firms.

The main reason for failure is inexperienced management. Managers of bankrupt firms do not have the experience, knowledge, or vision to run their businesses. They failed to plan, organized, lead and control. Even as the firm's age and management experience increases, knowledge and vision remain critical deficiencies that contribute to failure.