Business Ethics

Every Business has some Ethics in its roots , on the basis of which ,its path ahead is defined . It becomes the responsibility of HR to make sure that ethics thus created are made known to its people , are followed and also are implemented .Ethics consists of moral principles governing the right and wrongs of human conduct ;its about the principles of right & wrong accepted by individuals or social group . They are the principles and standards that define acceptable conduct in business whih eventually should underpin decision making .

Normally companies get a COC (Code of Conduct )signed by their employees and donot place a seperate business policy .It becomes the duty of HR to place a seperate Business Ethics Policy in the company if it doesnot exist .It should be made ,mandatory for every employee to sign and adhere to it .It helps to create a healthy and ethical environment in the Organisations .

The following points may be kept in mind while framing the policy ::

1) The policy shoudl clearly define what employees shud do and dont .
2) There should not be any clause which provides a chance to escape .
3) Outside Business interests shud require the prior approval of the company .
4) Any kind of Bribe , gift is strictly prohibited .
5) Employees must not make any cash payments to its customers .
6) No payments shud be made to secure preferential action .
7) There should be a proper legal action laid in policy or panel decided to take action , if any breach of action occurs .

HR should take responsibility that managers ensure that employees reporting to them are fully informed of te Business Ethics Policy and the supporting Practices are adopted for their unit .

Thus , Industry needs to unite together and come towards forming strong Business Ethics Policies and take it seriously .This will enable peace and harmony @ the work place .

MBO

MBO or Management by Objectives is one of the techniques which can be used to asess an employee's potential or to set future performance goals for him .It is basically a future oriented Technique used for performace appraisal of an employee .

Peter F Drucker gave the concept of MBO .MBO can be described in 4 steps ::

Step 1) To establish the goals each subordinate is to attain .Supervisors and subordinates may work together to establish such goals .Goals wud mean a desired outcome to be achieved . Such goals are then used to evaluate the employees .

Step 2) Involves setting the performance standard for the subordinates in a previously arranged time period .As subordinates perform they know what to do , what has been done and what remains to be done .

Step 3) In this step the actual level of goal attainment is compared with the goals agreed upon . The evaluator explores the reaons for the difference . This helps determine the possible training needs .

Step 4) This step involves establishing new goals and possibly new starategies for goals agreed upon .If subordinate has succeded the goal attainment he may be involved in goal setting process .

MBO Process is more useful and successful with managerial personnel and employees who have a fairly wide range of flexibility & self control in their jobs .Jobs with little or no flexibility , such as assembly line work are not very compatible with MBO .

Empowered Teams

Empowering refers to passing on authority and responsibility .Empowerment occurs when power goes to employees who then experience a sense of ownership and control over their jobs .Empowered individuals know that their jobs belong to them . Since they have a say on how things are done employees feel more responsible . When they feel responsible they show more initiative in their work and enjoy the work more .
Empowered Teams are also known as Self directed Teams .

The following are the features of Self Directed Teams (SDT)::

1) They take the responsibility for the quality of their products and services .
2) They may hire their own replacement or assume responsibility for disciplining their own areas .
3) They are responsible for acquiring any new training they might need .
4) They order materials , keep inventories and deal with suppliers .
5) They may prepare their own budgets and cordinate their work with other departments .
6) They often create their own schedules and review their performance as a group .
7) They set their own goals and inspect their own work .
8) They plan , control and improve their own work processes .
9) They are empowered to share various management and leadership functions .

Orgnisational structure for empowered teams is flat . Management plays a role of a coach or a facilitator.Leadership is shared with the team unlike in a traditional system where its is controled .Informaton flow in such teams is open and is shared among team members .Rewards are skill based or team based .Teams collectively plan , control and improvise the job process .

Many companies are enhancing the number of self directed teams in their organisations .In some companies the divitional heads run their divisions like MD's run their companies .

Quality Circles

QC consists of 7 -10 people from the same work area who meet regularly to define , analyse and solve quality and related problems in their area .The membership is strictly voluntary and meetings are held once a week for and hour or two . During the initial meetings the members are trained in problem solving techniques borrowed from group dynamics , industrial engeenering & Quality Control .Some of the techniques include brainstorming , Pareto analysis , cause & effect analysis histograms , control charts , stratification and scatter diagrams .

QC are credited with producing quick , concrete and impressive results when correctly implemented .the following are the advantages ::

1) Employees are involved in decision making .
2) Savings to costs ratios generally are higher than those achieved with other productivity -improvements programms .
3) QC members enhance their chances of promotion to supervisory positions .

To several workers , accustomed to thinking of work as a mindless routine , what happens on the shop floor (thru QC ) is a welcome relief .QC give added power to the individual worker .They are a way of motivating the workers and retaining them .

QC begin with a great deal of training in identifying work problems , appkying statistics to track and evaluate quality .For circles to succeed in the long run , the mangement needs to show its commitment , by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions .
Last and not the least they are an effective bridge between participative and non-participative management approaches .

Total Quality Management

TQM as it is called refers to deep commitment of an organisation to Quality .Quality of Products and services is an obsession and every process is subject to intense scrutinity to improve .Almost every issue is subject to exploration and process is a continuing one .Employees are provided by extensive training in problem solving , group decision making and statistical methods .

Why TQM is necessary in an organisation ???

1) To meet the customers requirement on time , the first time and 100 % of the time .
2) To strive to do error-free work .
3) To manage the work by prevention , and not by correction .
4) To measure the cost of Quality .

TQM comes under Participative method because every employee in the organisation is involved and is expected to take responsibility for improving quality ,everyday .It is a formal programme which involves direct participation by all the employees .Though the methods of participation may differ from company to company . TQM starts from the grassroot level and moves up since if the process is not improvised from the scratch , it will not result in enhancement of service . Thus all employees and the top management should contribute to uplift the quality of service to enhance a quality Product to customers .

Brainstorming --the right way !

Brainstorming is a v useful technique if used in the right way and doing it in a process .Brainstroming aids in motivation because it involves members of a team in bigger management issues, and it gets a team working together .For brainstorming activity to reap desired results it needs to be structured more than being random . following the Brainstoring process is crucial for it to create new ideas, solve problems, motivation and developing teams.

Using a Flip chart is v important while doing a brainstormings session This is crucial as Brainstorming needs to involve the team, which means that everyone must be able to see what's happening. Brainstorming places a significant burden on the facilitator to manage to manage the process, people's involvement and sensitivities, and then to manage the follow up actions. Effective Brainstorming session results in improving the organization's performance and developing the team.

The following 3 step process ensures an effective session ::

1) Planing and Agreeing to the Aim of Brainstorming

Ensure everyone participating in the brainstorm session understands and agrees the aim of the session (eg, to formulate a new job description for a customer services clerk; to formulate a series of new promotional activities for the next trading year; to suggest ways of improving cooperation between the sales and service departments; to identify costs saving opportunities that will not reduce performance or morale, etc). Keep the brainstorming objective simple. Allocate a time limit. This will enable you to keep the random brainstorming activity under control and on track.

2) Manging the Brainstorming Activity

Brainstorming enables people to suggest ideas at random. Your job as facilitator is to encourage everyone to participate, to dismiss nothing, and to prevent others from pouring scorn on the wilder suggestions (some of the best ideas are initially the daftest ones - added to which people won't participate if their suggestions are criticised). During the random collection of ideas the facilitator must record every suggestion on the flip-chart. Use Blu-Tack or sticky tape to hang the sheets around the walls. At the end of the time limit or when ideas have been exhausted, use different coloured pens to categorise, group, connect and link the random ideas. Refine the ideas by making new headings or lists. With the group, assess, evaluate and analyse the effects and validity of the ideas or the list. Develop and prioritise the ideas into a more finished list or set of actions or options.

3) Implementing the Actions Agreed

Agree what the next actions will be. Agree a timescale, who's responsible. After the session circulate notes, monitor and give feedback. It's crucial to develop a clear and positive outcome, so that people feel their effort and contribution was worthwhile. When people see that their efforts have resulted in action and change, they will be motivated and keen to help again.

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PEST Analysis --A Tool !!

The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings helps in reviewing a situation, and can also, like SWOT analysis be used to review a strategy or position, direction of a company, a marketing proposition, or idea.

Completing a PEST analysis is very simple, and is a good subject for workshop sessions. PEST analysis also works well in brainstorming meetings. Use PEST analysis for business and strategic planning, marketing planning, business and product development and research reports. One can also use PEST analysis exercises for team building games. PEST analysis is similar to SWOT analysis - it's simple, quick, and uses four key perspectives. As PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis (a SWOT analysis - Strengths, Weaknesses, Opportunities, Threats - is based broadly on half internal and half external factors).

PEST is also extended to seven or even more factors, by adding Ecological (or Environmental), Legislative (or Legal), and Industry Analysis, which produces the PESTELI model.STEEPLED is another interpretation which includes pretty well everything except the kitchen sink(this is just to make u laugh ) : Political, Economic, Social and Technological - plus Ecological or Environmental, Ethical, Demographic and Legal .

Political

ecological/environmental issues
current legislation home market
future legislation
international legislation
regulatory bodies and processes
government policies
government term and change
trading policies
funding, grants and initiatives
home market lobbying/pressure groups
international pressure groups
wars and conflicts

Economic

home economy situation
home economy trends
overseas economies and trends
general taxation issues
taxation specific to product/services
seasonality/weather issues
market and trade cycles
specific industry factors
market routes and distribution trends
customer/end-user drivers
interest and exchange rates
international trade/monetary issues

Social

lifestyle trends
demographics
consumer attitudes and opinions
media views
law changes affecting social factors
brand, company, technology image
consumer buying patterns
fashion and role models
major events and influences
buying access and trends
ethnic/religious factors
advertising and publicity

Technological

competing technology development
research funding
associated/dependent technologies
replacement technology/solutions
maturity of technology
manufacturing maturity and capacity
information and communications
consumer buying mechanisms/technology
technology legislation
innovation potential
technology access, licencing, patents
intellectual property issues
global communications
ethical issues

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