| Term | Definition |
| The organization is defined as a structure of formal relationships, which are designed to achieve a goal efficiently. -The organizational chart, identifying the formal hierarchies of authority, explains the fundamental reality of the organization -Information is collected from the lower levels of the organization and rises through various levels till it reaches the top | Rational View |
| Top management makes policy decisions and issue commands that pass downwards -Contracts hold the organization together. Employee has a moral obligation to obey the employer and the employer a moral obligation to provide the employee with the economic support that it had promised | Rational View (II) |
| The employee | Employee Obligations |
| Objective versus Subjective Financial and non-financial -Potential versus Actual when a person discharges his or her duties in a manner prejudicial to the firm v when a person is merely tempted to do so -Apparent No actual conflict of interest, but people looking at the situation can wrongly believe there is | Types of Conflict of Interest |
| Remove yourself from the task that creates the conflict of interest -Eliminate the interest that you have in the outcome of the task -Make sure that your interest does not affect your obligation to exercise independent judgment on behalf of the employer | Eliminating conflict of interest |
| Employees have a contractual agreement to accept -a) only specific benefits in return for their services and b) to use the firm | Employee Theft & Computers |
| Future of the firm depends on it -Is owned by the firm -Explicitly secret -Secret keeping based on contract | Trade Secrets |
| Risks are sometimes unavoidable and acceptable, as long as employees are fully compensated for assuming them and they do so freely and knowingly. -However, if wages are not proportional to the risks, or the risk is accepted unknowingly or out of desperation, then the contract between employer and employee is not fair, and is therefore unethical. Employers must offer wages that reflect the dangers of high-risk jobs and provide employees with suitable health insurance programs | Firm |
| It does not look only at the formal lines of authority. Instead, it emphasizes the informal lines of influence and sees the organization as a system of competing power coalitions. -It focuses on the competitive nature of different factions within a firm -The goals of the firm are the goals established by the historically most powerful or dominant coalition | Political Model of organization |
| Similarities : Centralization of power, Legitimization of power, Authority over subordinates (citizens) ,Decisions for distribution .... Differences Consent v ownership Elected vs Selected Citizens vs contracted employees -Unions -Migration | Corporations & Government |
| If employees discover that their firm is doing something that harms society, they have few legal options available if internal management does nothing about it. -The company has the legal right to punish the employee who informs against the firm with firing or blacklisting him or her | Freedom of conscience |
| Whistle blowing is the attempt by an employee to disclose wrongdoing in an organization -It is internal if it is reported only to management within the organization -If it is reported to others (such as governmental agencies or the media), then it is external. | Whistle blowing |
| Ethics codes Ethics officers Ombudspersons Harassment Officer , Hotlines Ethics Committees Social / Environmental Audits Balanced Board of Directors | Internal Whistle blowing |
| Convincing evidence of serious wrong doing, not complaints -Internal whistle blowing has been tried and has failed -Reasonably certain that external whistle blowing prevents harm -The wrong is serious enough to justify the injuries/ harm that will be imposed on oneself, one | Conditions for external whistle blowing |
| Giving employees voice over their own work activities; this could then be extended to workplace and strategic decisions regarding the firm -Not very popular in North America, more prevalent in Europe, especially Germany | Participatory Management |
| Employee at will employers may dismiss their employees whenever they desire, for good or no cause, or even for morally wrong causes Problems: Did they freely seek employment? Reciprocal contribution Respect for free and equal individual The right to due process | Employment at will and due process |
| Reasons Low wages overseas- Lowering of trade and investment barriers- Technological improvements | Plant closings & downsizing |
| An organization can be seen as a network of connected individuals all concerned with each other. -The primary goal of the organization is not profit, but caring for those individuals who make up the organization -Very few organizations embody this approach -Main problems: Caring too much or caring too little | The Caring organization |
| Equal rights for workers and employers -Freedom of association -Balancing corporate power -Right to strike while not violating previous agreements This right to strike does not exist in | Unions |