Professional Documents
Culture Documents
institution or an association, that has a collective goal and is linked to an external environment. The
word is derived from the Greek word organon, itself derived from the better-known word ergon which
means "organ".
There are a variety of legal types of organisations, including corporations, governments, non-
governmental organizations, international organizations, armed forces, charities, not-for-profit
corporations, partnerships, cooperatives, universities, and various types of political organizations. A
hybrid organization is a body that operates in both the public sector and the private sector
simultaneously, fulfilling public duties and developing commercial market activities. A voluntary
association is an organization consisting of volunteers. Such organizations may be able to operate
without legal formalities, depending on jurisdiction, including informal clubs. Organizations may also
operate in secret and/or illegally in the case of secret societies, criminal organizations and resistance
movements.
Ans. Importance of Management: Personal management enables all persons in the enterprise to
contribute most effectively to its purpose in the performance of their duties. It promotes individual
development and encourages mutual confidence and under-standing between the employees and
employers. It thus attains personal and social satisfaction which tends naturally to seek within their
working environment.
It provides an invisible framework by which various individuals are fitted into an effective team. Personal
management is also concerned with assigning authority and responsibility to individuals with a view to
communicating between experts at various levels, and to enforcing accountability. It helps make
possible the large and effective aggregations of employees we know to day.
If personal management is to function correctly, the personal executive can reduce disagreements that
arise regarding his place on the company team but also can help instruct others on their logical personal
duties and relationships. Personal management is not confined to industries but it has also equal
importance in all types of offices laboratories, non profit institution and armed services.
In the words of An American expert in management "Management is the development of people and
not the direction of things". So personal management is generally concerned with the promotion and
simulation of every employee to make his fullest contribution to the attainment of the objectives of the
enterprise, that is why personal management has in modern times become the primary responsibility of
each and all managers, regardless of their areas of work.
None of the managerial functions would produce the ultimate results in the absence of all other
basic functions. Hence we can say that management is a continuous process.
2. Management as a discipline:
Since the boundaries of management are not exact as that of any other physical sciences, it may
not fit in very well for being addressed as discipline. However its status as a discipline increases
because it continuously discovers many aspects of business enterprises and also passes on the
verified knowledge to the practitioners of the managerial process.
3. Management as a career:
Hence, management is definitely a social science like economics or psychology and has the same
institutions which these and other social sciences have.
5. Universal Application:
6. Goal Oriented:
Management has the task of attaining certain objectives. The success or failure of the
management depends on how far it is able to attain the desired goals. It is judged by the extent to
which it achieves its targets.
7. Guidance:
The main task of the management is guidance in the utilization of material and human resources
in the best possible way. Through optimum utilization of resources it has to ensure that the
objectives are attained. The essential element of management is that it gets the work done by
coordinating the performance of those who actually perform diverse and specific jobs.
8. Divorced from proprietorship:
Management does not signify proprietorship. In earlier days, management and enterprise were
lumped into the same factor. It now refers to a specialized group of people who have acquired
the ability to carry out a project.
9. An activating factor:
Management is the factor which activates other factors of production. A manager's skill lies in
motivating his workers through guidance, training, incentives, rewards, status, security, control,
etc. So a mangers' ability lies in the fact that he is able to motivate others to apply their skill to
the best advantage of the enterprise in the accomplishment of its objectives.
Since the essence of management is to direct, guide and control, it has to have authority.
Authority is the power to compel others to work and behave in a particular manner. Management
cannot discharge its function without authority. It is the foundation of management. Since
management has authority it stands at a higher pedestal.
12. Leadership:
The management has to lead a team of workers. It must be capable of inspiring, motivating and
winning their confidence.
Examples of principles:
Theory is a contemplative and rational type of abstract or generalizing thinking, or the results of
such thinking. Depending on the context, the results might for example include generalized
explanations of how nature works. The word has its roots in ancient Greek, but in modern use it
has taken on several different related meanings. A theory is not the same as a hypothesis. A
theory provides an explanatory framework for some observation, and from the assumptions of
the explanation follows a number of possible hypotheses that can be tested in order to provide
support for, or challenge, the theory.
A theory can be normative (or prescriptive),[1] meaning a postulation about what ought to be. It
provides "goals, norms, and standards".[2] A theory can be a body of knowledge, which may or
may not be associated with particular explanatory models. To theorize is to develop this body of
knowledge.
Henry Mintzberg is probably the most well-known and prominent advocate of the school of
thought that management is an art. Mintzberg is an academic researcher whose work capturing
the actual daily tasks of real managers was ground breaking research for its time. Mintzberg,
through his observation of actual managers in their daily work, determined that managers did not
sit at their desks, thinking, evaluating, and deciding all day long, working for long, uninterrupted
time periods. Rather, Mintzberg determined that mangers engaged in very fragmented work, with
constant interruptions and rare opportunities to quietly consider managerial issues. Thus,
Mintzberg revolutionized thinking about managers at the time that his work was published,
challenging the prior notion that managers behaved rationally and methodically. This was in line
with the perspective of management as an art, because it indicated that managers did not
necessarily have routine behaviors throughout their days, but instead used their own social and
political skills to solve problems that arose throughout the course of work.
Ans. Management in business and organizations is the function that coordinates the efforts of people
to accomplish goals and objectives using available resources efficiently and effectively. Management
comprises planning, organizing, staffing, leading or directing, and controlling an organization to
accomplish the goal. Resourcing encompasses the deployment and manipulation of human resources,
financial resources, technological resources, and natural resources. Management is also an academic
discipline, a social science whose objective is to study social organizations.
Management operates through five basic functions: planning, organizing, coordinating,
commanding, and controlling.[13]
Planning: Deciding what needs to happen in the future and generating plans for
action(deciding in advance).
Organizing: Making sure the human and nonhuman resources are put into place
Coordinating: Creating a structure through which an organization's goals can be
accomplished.
Commanding: Determining what must be done in a situation and getting people to do it.
Controlling: Checking progress against plans.
Ans. Formal organization is a fixed set of rules of intra-organization procedures and structures.
As such, it is usually set out in writing, with a language of rules that ostensibly leave little
discretion for interpretation. In some societies and in some organizations, such rules may be
strictly followed; in others, they may be little more than an empty formalism.
The informal organization is the interlocking social structure that governs how people work
together in practice. It is the aggregate of, norms, personal and professional connections through
which work gets done and relationships are built among people who share a common
organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal
relationships, social networks, communities of common interest, and emotional sources of
motivation. The informal organization evolves, and the complex social dynamics of its members
also.
Again Formal rules are often adapted to subjective interests — social structures within an
enterprise and the personal goals, desires, sympathies and behaviors of the individual workers —
so that the practical everyday life of an organization becomes informal. Practical experience
shows no organization is ever completely rule-bound: instead, all real organizations represent
some mix of formal and informal. Consequently, when attempting to legislate for an organization
and to create a formal structure, it is necessary to recognize informal organization in order to
create workable structures. However, informal organization can fail, or, if already set in order,
can work against mismanagement.
Ans. Entrepreneurship is the process of starting a business or other organization. The entrepreneur
develops a business model, acquires the human and other required resources, and is fully responsible
for its success or failure. Entrepreneurship operates within an entrepreneurship ecosystem.
On the other hand intrapreneur, to mean "A person within a large corporation who takes direct
responsibility for turning an idea into a profitable finished product through assertive risk-taking and
innovation"[citation needed]. Intrapreneurship is now known as the practice of a corporate management style
that integrates risk-taking and innovation approaches, as well as the reward and motivational
techniques, that are more traditionally thought of as being the province of entrepreneurship.
A entrepreneur is a factor in microeconomics, and the study of entrepreneurship reaches back to the
work in the late 17th and early 18th centuries of Richard Cantillon and Adam Smith, which was
foundational to classical economics.
Entrepreneurial activities differ substantially depending on the type of organization and creativity
involved. Entrepreneurship ranges in scale from solo, part-time projects to large-scale undertakings that
create many jobs. Many "high value" entrepreneurial ventures seek venture capital or angel funding
(seed money) in order to raise capital for building the business.
On the other hand Intrapreneurship is an example of motivation through job design, either formally or
informally. (See also Corporate Social Entrepreneurship: intrapreneurship within the firm which is driven
to produce social capital in addition to economic capital.) Employees, such as marketing executives [6] or
perhaps those engaged in a special project within a larger firm, are encouraged to behave as
entrepreneurs, even though they have the resources, capabilities and security of the larger firm to draw
upon.
Q. define recruitment and selection?
Ans. Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates for jobs within an organisation, either permanent or temporary. Recruitment can also
refer to processes involved in choosing individuals for unpaid positions, such as voluntary roles
or training programmes.
The use of internet-based services and computer technologies to support all aspects of
recruitment activity and processes has become widespread.
In the context of evolution, certain traits or alleles of genes segregating within a population may be
subject to selection. Under selection, individuals with advantages or "adaptive" traits tend to be more
successful than their peers reproductively—meaning they contribute more offspring to the succeeding
generation than others do. When these traits have a genetic basis, selection can increase the prevalence
of those traits, because offspring will inherit those traits from their parents. When selection is intense
and persistent, adaptive traits become universal to the population or species, which may then be said to
have evolved.
Study and know about employment laws that affect the selection process. (Refer to the chapter
on Employment Laws for a brief description of various employment laws.)
Step 2
Conduct a position analysis. Learn everything possible about the job (processes, performance
factors, working conditions, etc.) to determine what the essential functions are and what is
required in terms of knowledge, skills and personal traits to perform the position's duties
satisfactorily. This step is critical, as it lays the groundwork for the following steps. (For
information on conducting a position analysis, refer to the chapter on The Position Description.)
Identify and prepare in detail the minimum qualifications required for the position.
Prepare a current position description for the vacant position or verify that the existing position
description is current. (Refer to The Position Description chapter for a list of what should be
included in a position description.)
Step 3
Prepare application screening criteria and issue a vacancy announcement. (Refer to The Vacancy
Announcement chapter.)
Step 4
Prepare questions and screening criteria for the selection interview. (Refer to The Interview
chapter and the Appropriate vs. Inappropriate Questioning page.)
Step 5
Screen applications and, if necessary, conduct initial screening interview, based on established
criteria in Step 4 above. Select the top-ranking individuals for interviewing.
Step 6
Conduct interviews based on established criteria in Step 5 above. (Refer to The Interview
chapter.)
Step 7
Make your selection decision, and conduct reference checks on your choice. (Refer to The
Selection Decision chapter, the Veterans' Preference chapter, and the Reference Checking
chapter for information.)
Step 8
Step 9
Ans. A job description is a list that a person might use for general tasks, or functions, and
responsibilities of a position. It may often include to whom the position reports, specifications
such as the qualifications or skills needed by the person in the job, or a salary range. Job
descriptions are usually narrative,[1] but some may instead comprise a simple list of
competencies; for instance, strategic human resource planning methodologies may be used to
develop a competency architecture for an organization, from which job descriptions are built as a
shortlist of competencies.
A job evaluation is a systematic way of determining the value/worth of a job in relation to other
jobs in an organization. It tries to make a systematic comparison between jobs to assess their
relative worth for the purpose of establishing a rational pay structure.
Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way of
gathering information about a job. Every job evaluation method requires at least some basic job
analysis in order to provide factual information about the jobs concerned. Thus, job evaluation
begins with job analysis and ends at that point where the worth of a job is ascertained for
achieving pay equity between jobs.
Nature of a job specification is a statement of knowledge, skills, and abilities needed to perform the job.
It are minimum acceptable qualifications to perform a particular job. It is the same job criteria. “Job
Specification – definition of knowledge, skills, and abilities and the associated education, training, and
experience required to successfully perform a job. These also constitute the minimum recruiting criteria
or minimum qualifications for the job”
job specification includes knowledge, skills, and abilities but in fact, It also includes job purpose, main
duties, compensation etc when it is used for job advertisement.
Businesses can use ethical decision making to secure their businesses by making decisions that
allow for government agencies to minimize their involvement with the corporation.[2] For
instance if a company follows the United States Environmental Protection Agency (EPA)
guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in
the community and address those concerns that the public might have; they would be less likely
to have the EPA investigate them for environmental concerns.[3] “A significant element of current
thinking about privacy, however, stresses "self-regulation" rather than market or government
mechanisms for protecting personal information”.[4] According to some experts, most rules and
regulations are formed due to public outcry, which threatens profit maximization and therefore
the well-being of the shareholder, and that if there is not outcry there often will be limited
regulation.[
Q. discuss the ways of promoting social reposibility?
There are actually two different types of corporate social responsibility to consider. The first one
consists of corporations providing funding and resources for worthwhile social causes, such as
donating money or employee time to charities. For many people, this is the definition used when
thinking about corporate responsibility. However, another type of CSR involves putting together
a real plan to produce products or provide services that are in the best interests of society. These
include things like using safe materials in design and manufacture, corporate environmental
initiatives, and other factors such as job creation and economic development.
The most successful corporate social responsibility programs integrate these two types of CSR
together to show a true commitment to a cause. For example, a company that uses sustainable
materials in their products, donates financial resources to environmental causes, and allows
employees to take paid time off for volunteering at environmental charities would be showing a
true commitment to the environment that goes beyond any single CSR initiative.
One of the reasons that corporations should have visible CSR campaigns is due to the importance
and prevalence of social media. Corporations that want to protect their brand understand that
social media is an integral part of public perception. When a corporation exercises social
responsibility in the form of fundraising or setting up employee giving programs, using social
media to promote these actions helps to create a positive branding environment and it is a great
way to engage with your audience on a deeper level that goes beyond your products or services.
Public relations is a potent tool for shaping consumer perception and building a company’s
image. Corporations that actively promote their social responsibility activities often take steps to
publicize these efforts through the media. Getting the word out about corporate donations,
employee volunteer programs, or other CSR initiatives is a powerful branding tool that can build
publicity for you in both online and print media.
Government Relations
Corporations that place an emphasis on corporate social responsibility typically have an easier
experience when dealing with politicians and government regulators. In contrast, businesses that
present a reckless disregard for social responsibility tend to find themselves fending off various
inquiries and probes, often brought on at the insistence of public service organizations. The more
positive the public perception is that a corporation takes social responsibility seriously, the less
likely it is that activist groups will launch public campaigns and demand government inquiries
against it.
Finally, one of the greatest benefits of promoting social responsibility in the workplace is the
positive environment you build for your employees. When employees and management feel they
are working for a company that has a true conscience, they will likely be more enthusiastic and
engaged in their jobs. This can build a sense of community and teamwork which brings everyone
together and leads to happier, more productive employees.
Q. resposibilty of a manager?
Staffing
It's up to the manager to have an exhaustive knowledge of the business's needs and how
to hire to meet those needs. For starters, recruitment and interview techniques must be
mastered to find the right people for the job. But it's also vital to know the proper amount
of staff. Too few or too many team members is counterproductive to production and
profitability, respectively.
Training
First and foremost, develop an efficient and effective training program. A uniform plan
needs to be in place for everyone to be on the same page. In a sense, this duty is never
done, as employee turnover is a undesired, yet inevitable fact of management life. Having
the proper training program in place softens the blow.
Scheduling
Effective scheduling is important on several fronts. Just like staffing, you need to be
dialed in to your company's needs and schedule the right amount of staff for any given
task. Previous trends, time of year and special events or projects are a few examples of
things to be mindful of. Another key component with scheduling involves
communication with your employees. Familiarize yourself with their availability and
anything in their nonwork lives that could affect their job.
Quality Control
Many companies have designated departments for this, but quality control always falls
under a manager's jurisdiction in some form. Employees' performance must be monitored
to ensure company standards are being met. The work done ultimately falls on you, for
better or worse. Consistent feedback and evaluations are two ways to keep the
communication lines open.
Customer/Client Satisfaction
As a manager, it's your responsibility to monitor your client's opinion of your business.
You must know if their needs are being met. You'll look for areas for improvement.
Customer service, especially in the face of a recent bad experience, is a learning
opportunity. Never make assumptions. Talk to your customers about how you can
improve their experience. This will allow you to better anticipate their needs in the future.
Ans Human Resource Development (HRD) is the framework for helping employees develop
their personal and organizational skills, knowledge, and abilities. Human Resource Development
includes such opportunities as employee training, employee career development, performance
management and development, coaching, mentoring, succession planning, key employee
identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the most superior
workforce so that the organization and individual employees can accomplish their work goals in
service to customers.
2)Increase in Productivity:
The batter education, improved skills, and provision of healthy atmosphere will result in proper and
most efficient use of resources (non-natural & natural) which will result in increase in economic
production.
4)Entrepreneurship Increase:
Education, clean environment, good health, investment on the human resource, will all have its positive
effects. Job opportunities would be created in the country. And even business environment will flourish
in the state which creates many job opportunities.
5)Social Revolution:
Because of Human Resource development the socio economic life of the peoples of a country changes
drastically. Over all look changes thinking phenomena changes, progressive thoughts are endorsed in to
the minds of peoples.
Sustaining Business
Through succession planning that human resources develops, the company identifies employees
with the promise and requisite capabilities to eventually transition into leadership roles with the
company. This is an important function as it can guarantee the organization's stability and future
success.
Corporate Image
Businesses want to be known as the "employer of choice." Employers of choice are the
companies that receive recognition for the way they treat employees; they are the companies for
whom people want to work. Becoming an employer of choice means human resources balances
recruiting the most qualified applicants, selecting the most suitable candidates and retaining the
most talented employees.
Steadfast Principles
Human resources ensures the workforce embraces the company's philosophy and business
principles. From the perspective of a small business, creating a cohesive work environment is
imperative. The first opportunity human resources has to accomplish this is through wise hiring
decisions that identify desirable professional traits, as well as orientation and on-boarding
programs.
• Stakeholders in the HRD intervention and in its evaluation share the same
agendas and outcomes
for the intervention and its evaluation; all parties share a similar view of “success”.
• Positive results will best serve all the agendas; positive results are more valuable
than negative or
mixed results.
• Outcomes of each of the Four Levels are related in a linear and direct manner;
positive reaction
leads to positive learning which leads to positive transfer which leads to positive
results.
• All four levels are necessary for effective HRD evaluation.
• Transfer (specific and immediate application on the job) is the only relevant
outcome of HRD
activities.
• Each “level” of outcomes is more meaningful and valuable.
• Relevant categories of outcomes (reaction, learning, etc.) are the same for all
interventions and
purposes.
• The quantitative and/or financial expression of outcomes is most effective and
most valuable.
• Self-report data is adequate.
Ans Comprehensiveness. This involves the proper management of all aspects of the people you are
working with bearing in mind that human resources is the most valuable resource your firm has. This
means that the financial, health, transportation, tools and anything employees need to work should be
well taken care of.
Cost-effectiveness. Companies should ensure that they remunerate their employees accordingly. The
employees reward system should be able to sustain the organization.
Control. Firms should be able to take charge of their employees and ensure that productivity and quality
is achieved and maintained. Control should be exercised carefully so that it does not seem like tyranny.
Coherence. All the steps taken by a firm in the management of human resources must be in line with the
mission and vision of the firm. Human Resources managers should direct their focus on what the
company needs and employee abilities.
Communication is very important in every organization. Through communication, firms can ensure there
is flow of information that is necessary for efficiency.
Creativity is key if a firm is to be efficient in human resources management. Firms should adopt new
ways of human resources management as long as it fits their companies.
Competence. It is an organizations responsibility to ensure that their employees are skilled to do their
duties. Because the competence of a firm depends on that of its employees, firms should do everything
to increase employee capabilities for example, by training them.
Credibility. Firms must ensure that they remain the best brand to most of their clients by maintaining
their credibility. They should put in place strategies that ensure all employees have a clear sense of
direction to a common goal.
Change is inevitable for businesses. The fastest business to embrace change in management of their
human resources is better placed to produce better results.
Commitment. Every organization has objectives which they intend to meet both for themselves and for
their clients. To meet these goals, firms need committed staff therefore it is the firms responsibility to
keep their employees motivated so as to ensure they are committed to the organizations course..
Ans. In interpersonal conflict, you are in conflict with other individuals. This is considered a major level
of conflict and can occur between co-workers, siblings, spouses, roommates and neighbors, reports
Lewicki, Barry, and Saunders, writing in "Essentials of Negotiation." This is the form of conflict most
people have in mind when they think about being in conflict.
In the other hand According to Lewicki, Barry, and Saunders, intrapersonal conflict is also called
intrapsychic conflict. It occurs within you. This conflict can develop out of your own thoughts, ideas,
emotions, values and predispositions, reports Lewicki, Barry, and Saunders. Intrapersonal conflict occurs
when you internally argue with yourself about something, such as when you want a new pair of shoes
but you know you should not spend the money on them.
Q. Distinguish between morale and motiuvation?discuss its impact on employee behavior.
Ans. Morale (also known as esprit de corps (French pronunciation: [ɛspʀi də kɔʀ])) is the capacity of a
group's members to maintain belief in an institution or goal, particularly in the face of opposition or
hardship. Morale is often referenced by authority figures as a generic value judgment of the willpower,
obedience, and self-discipline of a group tasked with performing duties assigned by a superior.
According to Alexander H. Leighton, "morale is the capacity of a group of people to pull together
persistently and consistently in pursuit of a common purpose". [1] Morale is important in the military,
because it improves unit cohesion. Without good morale, a force will be more likely to give up and
surrender. Morale is usually assessed at a collective, rather than an individual level. In wartime, civilian
morale is also important. Esprit de corps is considered to be an important part of a fighting unit.
Workplace environments influence employee morale.
Motivation is a theoretical construct, used to explain behavior. It is the scientific word used to represent
the reasons for our actions, our desires, our needs, etc. Motives are hypothetical constructs, used to
explain why people do what they do. A motive is what prompts a person to act in a certain way or at
least develop an inclination for specific behavior. [1] For example, when someone eats food to satisfy the
need of hunger, or when a student does his/her work in school because they want a good grade. Both
show a similar connection between what we do and why we do it. According to Maehr and Meyer,
"Motivation is a word that is part of the popular culture as few other psychological concepts are". [2]
Wikipedia readers will have a motive (or motives) for reading an article, even if such motives are
complex and difficult to pinpoint. At the other end of the range of complexity, hunger is frequently the
motive for seeking out and consuming food.
Clausewitz stresses the importance of morale and will for both the soldier and the commander.
The soldier's first requirement is moral and physical courage, both the acceptance of
responsibility and the suppression of fear. In order to survive the horror of combat [,]he must
have an invincible martial spirit, which can be attained only through military victory and
hardship. The soldier has but one purpose: "The end for which a soldier is recruited, clothed,
armed and trained, the whole object of his sleeping, eating, drinking, and marching is simply that
he should fight at the right place and the right time."[3]
"Military morale is in a large sense inseparable from civilian morale because each reacts upon
the other and both are in large measure based on fidelity to a cause. But there is a certain kind of
morale that is distinctly military. It begins with the soldier's attitude toward duty. It develops
with the soldier's command over himself. It is a spirit that becomes dominant in the individual
and also in the group. Whether the soldier has physical comforts or suffers physical hardships
may be a factor but is seldom the determining factor in making or unmaking his morale. A cause
known and believed in; knowledge that substantial justice governs discipline; the individual's
confidence and pride in himself, his comrades, his leaders; the unit's pride in its own will; these
basic things, supplemented by intelligent welfare and recreation measures and brought to life by
a spirit of mutual respect and co-operation, combine to weld a seasoned fighting force capable of
defending the nation.
A number of motivational theories emphasize the distinction between conscious and unconscious
motivations.
A conscious motivation is a form of motivation that people recognize and are aware of it
themselves.[6]
Unconscious motivation refers to hidden or unknown desires that makes people push themselves
to achieve their goal. In evolutionary psychology, the "ultimate", unconscious motivation may be
a cold evolutionary calculation, the conscious motivation could be more benign or even positive
emotions. For example, while it may be in the best interest of a male's genes to have multiple
partners and thus break up with or divorce one before moving onto the next, the conscious
rationalization could be, "I loved her at the time". [7]
Freud is associated with the idea that human beings have many unconscious motivations that
cause them to make important decisions because of these unconscious forces, such as choosing a
partner. According to Freud and his followers, majority of the how people in different
situations/environments are the result of desires, impulses, and memories that have been
imprinted into an individual unconscious state, however it would still influence their
performances or actions.[8]
Some psychologists believe that a significant portion of human behavior is energized and
directed by unconscious motives. According to Maslow, "Psychoanalysis has often demonstrated
that the relationship between a conscious desire and the ultimate unconscious aim that underlies
it need not be at all direct."
Ans. Business ethics (also corporate ethics) is a form of applied ethics or professional ethics
that examines ethical principles and moral or ethical problems that arise in a business
environment. It applies to all aspects of business conduct and is relevant to the conduct of
individuals and entire organizations.[1]
Business ethics has normative and descriptive dimensions. As a corporate practice and a career
specialization, the field is primarily normative. Academics attempting to understand business
behavior employ descriptive methods. The range and quantity of business ethical issues reflects
the interaction of profit-maximizing behavior with non-economic concerns. Interest in business
ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and
within academia. For example, most major corporations today promote their commitment to non-
economic values under headings such as ethics codes and social responsibility charters. Adam
Smith said, "People of the same trade seldom meet together, even for merriment and diversion,
but the conversation ends in a conspiracy against the public, or in some contrivance to raise
prices."[2] Governments use laws and regulations to point business behavior in what they perceive
to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie
beyond governmental control. The emergence of large corporations with limited relationships
and sensitivity to the communities in which they operate accelerated the development of formal
ethics regimes
Q what do you mean by Code of conduct?
Ans. A code of conduct is a set of rules outlining the responsibilities of, or proper practices for,
an individual, party or organization. Related concepts include ethical, honor and moral codes, as
well as halachic and religious laws.
In its 2007 International Good Practice Guidance, "Defining and Developing an Effective Code
of Conduct for Organizations", the International Federation of Accountants[1] provided the
following working definition:
"Principles, values, standards, or rules of behavior that guide the decisions, procedures and
systems of an organization in a way that (a) contributes to the welfare of its key stakeholders,
and (b) respects the rights of all constituents affected by its operations."
A common code of conduct is written for employees of a company, which protects the business
and informs the employees of the company's expectations. It is ideal for even the smallest of
companies to form a document containing important information on expectations for employees.
The document does not need to be complex or have elaborate policies, but the file needs a simple
basis of what the company expects from each employee.
Ans. There are so many that it is difficult to list them. Most of them involve proper accounting
procedures. There must be proper controles in place to make sure that everything is being recorded in
the proper period, and that it is being properly recorded. Also that there is no misappropriation,
kickbacks or other fraud. Make sure that there is proper segregation of duties, meaning that one person
does not have control over multiple money acceptance and recording functions because that would give
them opportunity to steal. Make sure that employees are taking vacations to make sure that they are
not running kiting scams, taking from one customer and replacing with another one's payment. Also set
the tone at the top by modeling good behavior for your employees. Remember to have a good
relationship with the employees so that they can talk to you. This will help to eliminate pressures that
they can't share, which might cause them to commit fraud. Look for where opportunities might exist,
and mitigate them. And emphasize management's commitment to ethical behavior and give examples of
unacceptable behavior so that there is less liklihood that employees will rationalize bad
bahavior.Leadership is the primary way companies foster proper ethical behavior. Leaders and executive
managers have a responsibility to set the tone for ethical behavior by conducting business in an ethical
and moral manner. If a leader fails to display a proper ethical behavior, workers may be unwilling to
accept the company's ethical guidelines.
Companies may use a pledge to ensure employees act ethically when dealing with different business
situations. These pledges, confirmed by an employee's signature, state a worker's willingness to agree
with and follow the company's ethical principles. Companies may also use these pledges to reinforce the
importance of business ethics and why employees must sign the pledge and follow these principles.
Ethics pledges also grant employees the freedom to report unethical business practices by managers or
other employees.
Q.short notes
A. principles of delegation of authority: The followings are some of the important principles of
delegation of authority:
(a) Authority should commensurate with responsibility- It is not correct to say that authority
should be equal to responsibility. Authority is the power to carryout an assignment and
responsibility is the obligation to accomplish them. It is logical to say that authority needed to do
a job should correspond to the responsibility. Though equalisation of authority and responsibility
is not possible, authority should be co-extensive or commensurate with responsibility.