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
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),
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