Critical Thinking in Management

Organisational Misbehaviour
 Aims/Objectives (Both Sessions)
• To assess what is organisational and personal
misbehaviour.
• To review what tools are available for identifying the
problem solving process and assess different types of
problems.
• To understand the different stages of the problem solving
process, use problem solving techniques and apply it to a
business problem
• To show the connection between learning and problem
solving
• To reflect upon the influence of the group in problem
solving.
 Organisational Misbehaviour
So what is Organisational Misbehaviour ?

• Acts committed by companies to increases profits,

market share, gain competitive advantage,
influence etc.
eg breaking heath and safety laws/dumping waste to
avoid paying for proper disposal, not revealing
test results of product trials etc.

Harmful to others but not criminal?

 Organisational Misbehaviour

Often unclear of the victim, eg.

• Customers in general - false or misleading

claims in advertisements, faulty or dangerous
goods
• Employees - failure to employ health and safety
• Public - more subtle than harm to consumers eg
tax evasion at company level can lead to higher
public taxes.
 Organisational Ideologies and Principles

Need to start and identifying how organisations form

their identity

“The goals of the organisation may be

pursued in accordance with its underlying
ideology, or philosophy, based on beliefs,
values and attitudes”

Mullins 4e 1996
 Organisational guidelines and strategy
Eg:
The Walt Disney Company established the following
mission statement- in summary:

• sustain Walt Disney as the world’s finest

entertainment company
• maximise stockholder wealth
• maintain the integrity of the Company name
• preserve basic Disney values
 Ethical and Organisational foundations
The Company’s culture and ethos can be built on
two firm footings
Ethical:
• embodies the basic principles which govern the
external and internal relations of the organisation
Organisational or Operational:
• concerned with the structure, operation and
conduct of the actives of the organisation.
Brech,E.F.L. The Principles and Practice of Management
 Values in Organisations
Look at three approaches to value

1: Social responsibility
2: Business ethics
3: Corporate governance
 Social Responsibilities of Organisations
For the Consumer publics
Organisations play a major and increasingly
important role in the lives of us all?

For Organisations
The economic efficiency of organisations is effected
by governmental, social, technical and cultural
values..
Worthington & Britton, The Business Environment (1994)
Main areas of Social Responsibilities

• employees
• providers of finance
• consumers
• community and environment
• government
• other organisations or groups
Main areas of Social Responsibilities (1)

Employees

• extend beyond terms & conditions and

recognise employees as human beings
• design of work organisation
• job satisfaction
• job security
• minority group employment opportunities
Main areas of Social Responsibilities (2)

Providers of finance

• private share holders

• pension fund indirect provider
• insurance companies indirect providers
• funding from taxation and local rating
systems
Main areas of Social Responsibilities (3)

Consumers

• good value for money

• safety and durability of products /services
• standards of after sales
• prompt and courteous attention to queries
• long-term satisfaction
• fair standards in advertising and trading
• full and unambiguous information
 Main areas of Social Responsibilities (4)

Community and environment

• effect and potential dangers of pollution, noise, etc
• siting and appearance of new buildings
• transportation policy, eg heavy lorries through
narrow lanes by schools etc
• avoidance of excessive packaging, using more
“green” materials
 Main areas of Social Responsibilities (5)
Government - respect and obeying the law

Extent to which organisations voluntarily co-operate

and act. eg

• refrain from trading with certain overseas countries

• accept controls over imports/exports
• actions to stop inflation
• assist in social problem areas - tobacco advertising
 Corporate Social Responsibility
Sharplin’s Social Contract model

included obligations between organisations and

society

– obligations to individuals
– obligations to groups and to organisations
– obligations to government
– obligations to society
 Business Ethics

Activity:

Identify what is considered as falling into the business

ethics domain: eg

• insider dealing
• animal rights and research
• accounting practices.
• etc.etc
 Business Ethics

Three ethical standpoints;

• deontological - guided by a sense of duty or strong

principles.
• teleological- guided by the outcomes, “ the end
always justifies the means.”
• ethical or moral relativism - moral beliefs should be
those of the person being affected by the action.
Look at later in more depth in whistle blowing
 Corporate Governance

Origins:

Tricker, R. Corporate Governance (19840

Harvard Business School Review (1991)
The Cadbury Committee (1992)
safeguarding business integrity by creating processes
that reduce the likelihood of Organisational
Misbehaviour, thus increasing accountability for
all.
 Organisational Misbehaviour

So what goes wrong, or does it?

Companies have all the models, guidelines, social

responsibilities etc.

But still Organisational Misbehaviour/Corporate

Crime still occurs.