In order to run a profitable business, maximize shareholder value, and incorporate an ethical framework, management style is very important. Management includes using a firms resources in order to conduct various tactics to achieve the firms overall strategy. Each tactic carried out within a firm needs to have a ethics framework enforced through management to provide the stakeholders with an effective business developed through conscious and sincere decision making. An ethical management style is one that incorporates community building, respect for one another and instilling the firm’s values into the employees in order to empower them. Unfortunately at Foxconn, this isn’t always practiced by the management team. The management team recruits individuals through false advertising techniques explaining how it’s a rewarding career, one that is high paying with excellent working conditions. In reality, these people are worked to the point of exhaustion. The managers use the stakeholders (employees) to do what they want in order to maximize profits, and ultimately use them as resources to generate bottom line benefits.[i]
The workers at Foxconn are mislead into a stressful, high pressure work environment with zero support available. Management lacks the necessary communication skills required to effectively lead and inspire their workers. They embrace micromanagement techniques instead of inspirational leadership as result of their inefficient communication skills. Managers mimic a dictatorship type of role, where they raise their voices at the employees in order to get them to do what they want, giving the employees zero opportunity to success, leaving them depressed and desensitized.
Douglas MacGregor developed a theory based on how employees approached work. Theory X is one which applies to the Foxconn case, where it assumes people dislike work and have to be coerced into doing it.[ii] Managers at Foxconn...
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