Ethics are involved in all facets of business from decision making to budgeting, from personnel issues to leadership. Today’s managers must be able to see the ethical issues in the choices they face, make decisions within an ethical framework, and build and maintain an ethical work environment. Managers must be particularly sensitive to ethical issues because of their key role as a bridge between upper management and operating employees. However, some managers believe acting ethically makes a business vulnerable and places it at competitive risk. But in fact, evidence suggests the reverse is true: Strong ethics equals high performance. This essay is an effort to understand the notion that to achieve organizational success, it is important for managers to operate in an ethical manner in organizations. However, when focusing on Functionalist and Radical Humanist view, there are several similarities and differences to managing ethics and power in organizations. Thus, the aim of this study is to investigate whether Functionalist and Radical Humanist approach differ in the extent to which they believe that ethical and socially responsible practices are important in relation to various aspects of organizational effectiveness such as quality, communication, profits, competitiveness, survival, efficiency, and stakeholder satisfaction. This essay will first highlight why it is important for managers to understand the importance of operating in an ethical manner in organizations along with current ethical issues and then it will compare and contrast the Functionalist and Radical humanist approach to managing ethics and power in organizations.
2.0 LITERATURE SEARCH:
Power can define an individual's status in an organization providing the individual to influence the decision of another so that task and activities are processed accordingly to the request. As defined by (Kahn, 1964; Jackson & Carter, 1991), power is a critical concept in organization and suggests that the concept of organization might not exist if it were not for relations of power. As an individual's gets more power this may grant for the individual to increase his ability to perform better due to high motivation. But as an individual gets more power depending on his status the individual may mistreat it. As said by (Barnes, 1988) power is something an entity or attribute which all manner of things, processes, or agents may have. Barnes (1988) identifies three key dimension of power which is; * The physical power residing in the human body
* The personal or charismatic power said to reside in a particular personalities * The power of office or posting which people possess or seek and follow identifies thee key dimension of power. * ETHICS
Ethics are principles of conduct or moral judgment mangers use to carry out their businesses. These standards are derived from the society's general norms and values from an individual's experience from in family, religion, education and other institutions also derived from interpersonal interactions (Martin.et.al.2003). In terms of ethical decision making there are three different kinds of criteria making ethical choices. The utilitarian decision criteria focus on for the greatest benefit for the larger number. The second is the rights for individuals. This approach suggests that every individual should have the freedom of speech, the right to practice religion … etc. The third approach for ethical decision making involves the individual to oblige and implement rules fairly and without bias so that there is a fair distribution of benefits and costs. (Millett. Et.al 2004) IMPORTANCE OF OPERATING IN AN ETHICAL MANNER AND CURRENT ETHICAL ISSUES: The modern business world is high in competition. Businesses try every aspect to gain an advantage which may enable to create opportunities to establish a competitive advantage. However, when carrying on...