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7/23/2019 Assignment on Behavioural Issues in Strategic Implementation http://slidepdf.com/reader/full/assignment-on-behavioural-issues-in-strategic-implementation 1/19 ASSIGNMENT ON BEHAVIOURAL ISSUES IN STRATEGIC IMPLEMENTATION  COMPILED BY-  VARSHA PANDEY  CUJ/I/2010/IMBA/38

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Page 1: Assignment on Behavioural Issues in Strategic Implementation

7/23/2019 Assignment on Behavioural Issues in Strategic Implementation

http://slidepdf.com/reader/full/assignment-on-behavioural-issues-in-strategic-implementation 1/19

ASSIGNMENT ON

BEHAVIOURAL ISSUES IN

STRATEGIC

IMPLEMENTATION

  COMPILED BY-

  VARSHA PANDEY

  CUJ/I/2010/IMBA/38

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MATCHING CULTURE WITH STRATEGY

Culture is the set of beliefs that drie e!"lo#ee behaiors$ These %a& be thi&'s eer#bod# i&

the %o!"a&# (&o)s a&d shares* as )ell as u&s"o(e& rules$ The ra&'e of a%%e"table e!"lo#ee

 behaiors is based o& these u&derl#i&' beliefs$ So!eti!es these behaiors ali'& )ell )ith the busi&ess strate'#* but this is&+t a 'ie&$

,or e-a!"le* so!e or'a&i.atio&s hae a strate'i% fo%us o& i&&oatio&/ The# )a&t e!"lo#ees

to thi&( %reatiel# a&d share &e) ideas$ If the %ulture is ali'&ed )ith i&&oatio&* e!"lo#ees

are re)arded )he& their &e) ideas hit the 0a%("ot* a&d the# are&+t "e&ali.ed for %o&stru%tie

failures$ Goo'le a&d A""le are t)o %o!"a&ies that "ro!ote this (i&d of %ulture$

Ho)eer* that+s &ot the (i&d of %ulture #ou )ould )a&t for a& or'a&i.atio& li(e 1al2Mart that

%o!"etes usi&' a strate'# that+s hi'hl# fo%used o& effi%ie&%#$ I& 1al2Mart3s %ase* it+s

i!"orta&t to hae %learl# defi&ed 0ob roles a&d for eer#o&e to (&o) their !ar%hi&' orders$

1al!art* A""le a&d Goo'le are all tre!e&dousl# su%%essful %o!"a&ies* but hae er#

differe&t %ultures$ That+s )h# )e sa# there+s &o su%h thi&' as a 'ood or bad %ulture* 0ust a&

effe%tie or i&effe%tie o&e$ Ulti!atel#* effe%tie&ess de"e&ds lar'el# o& ho) )ell the %ultureali'&s )ith the busi&ess strate'#$

Cor"orate %ulture a&d strate'# are li&(ed to'ether i&se"arabl#* i& t)o i!"orta&t )a#s/

4$ Establishi&' strate'# is the eas# "art5 the hard "art is %reati&' %larit# a&d ali'&!e&t

)ithi& d#&a!i%* faster2!oi&'* 'lobal* dierse )or(for%es$ Culture is the )heel base

a&d 'rease of #our strate'# 6the %ar !oes faster a&d better )he& ali'&ed a&d

o"ti!i.ed$

7$ Most busi&esses are i& a state of %o&ti&uous %ha&'e a&d 'reater u&%ertai&t#$ Cor"orate

%ulture be%o!es a& i&ter&al bra&d to foster a u&ified se&se of 8order a&d stabilit#*9

a&d ali'& "eo"le to)ard si!"ler* easier )a#s of )or(i&' that are frie&dl# to %ha&'e$

Wha W! D"-

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Cor"orate Culture Pros "roides 7 de%ades of e-"erie&%e fa%ilitati&' a&d %oa%hi&' e-e%uties

to ali'& or'a&i.atio&al strate'#* leadershi" a&d %or"orate %ulture to su""ort 'ro)th*

i&&oatio&* a&d ROI duri&' %ha&'es i& strate'#* su%h as a !er'er or &e) leadershi" tea!$

• Ali'&i&' these ele!e&ts of busi&ess "erfor!a&%e is &ot eas# 6 if it )ere* eer#o&e

)ould hae it ri'ht b# &o): There is &o shorta'e of effort5 billions of dollars are

s"e&t ea%h #ear o& %ha&'e !a&a'e!e&t$• Ali'&i&' %or"orate %ulture )ith %lear strate'# is the se%ret sau%e of %o!"a&ies )ith

the bi''est 'ro)th a&d effe%tie* hi'h2"erfor!i&' )or("la%es$ Less is !ore 6 it3s &ot

about %ha&'i&' %or"orate %ulture at the fu&da!e&tal leel 6 that ta(es !a&#* !a&#

#ears a&d ofte& fails$

• The "o)er of ta""i&' %or"orate %ulture to a%%elerate strate'# is the (e# to s"eedi&' u"

a&d %o!"eti&' effe%tiel#$

• 1he& #ou sho) e-e%uties that %ulture ali'&!e&t ;ersus true %ultural %ha&'e< is the

'oal 6 t#i&' %ulture a%tio&s dire%tl# to busi&ess "erfor!a&%e 6 this hel"s the e-e%utie

tea! see %ulture as a& i!"eratie* rather tha& a &i%e2to2hae$

R!#$%# Y"$ Ca& E'(!)-

As a result of our Strate'#2Culture Ali'&!e&t "ro%ess* #ou )ill see isible a&d !easurable

deelo"!e&t i& the or'a&i.atio&3s %a"abilit# i& four areas of !aster#/

4$ Ali'&!e&t of the or'a&i.atio& a&d its resour%es to)ard a %lear* %o!"elli&' !issio&*

 busi&ess %ase for %ulture %ha&'e* a&d behaioural alues$

7$ E&suri&' a bias for a%tio& throu'h %larif#i&' de%isio& ri'hts a&d 8"ushi&' the!

do)&$9

=$ ,osteri&' %ultural %ha&'e to)ard i&&oatio& b# brea(i&' do)& silos a&d sho)i&'

e-e%uties ho) to su""ort effe%tie %ross2fu&%tio&al tea!)or($

>$ ?eelo"i&' leaders )ho are a%%ou&table to busi&ess results AN? )ho u&dersta&d the

e!otio&al a&d !otiatio& territor# of leadi&' %ha&'e$Co!"a&ies )ho 8'et %ulture ri'ht9 are lear&i&' that it differe&tiates the! i& their %usto!ers

!i&ds* %usto!ers* s"eeds u" e-e%utio&* !a(es the! !ore %o!"etitie for to" tale&t$

• 8A& or'a&i.atio&3s %a"a%it# to e-e%ute its strate'# de"e&ds o& its 8hard9

i&frastru%ture22its or'a&i.atio& stru%ture a&d s#ste!s22a&d o& its 8soft9 i&frastru%ture22

its %ulture a&d &or!s$9

B$*%+*&, a Sa!,.-S$(("*! C"("a! C$%$!-

• 1here ?oes Cor"orate Culture Co!e ,ro!@

• Culture a&d Strate'# E-e%utio&

• T#"es of Cultures

• Creati&' a ,it Bet)ee& Strate'# a&d Culture

• Establishi&' Ethi%al Sta&dards• Buildi&' a S"irit of Hi'h Perfor!a&%e

E'!*&, Sa!,*) L!a+!#h*(-

• Sta#i&' o& To" of Ho) 1ell Thi&'s are Goi&'

• Establishi&' a Strate'#2Su""ortie Culture

• ee"i&' I&ter&al Or'a&i.atio& I&&oatie

• E-er%isi&' Ethi%s Leadershi"

• Ma(i&' Corre%tie Ad0ust!e&ts

Wha Ma!# U( a C"(a&.# C$%$!-

• Beliefs about ho) busi&ess ou'ht to be %o&du%ted

• Values a&d "ri&%i"les of !a&a'e!e&t

• 1or( %li!ate a&d at!os"here• Patter&s of 8ho) )e do thi&'s arou&d here9

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• Oft2told stories illustrati&' %o!"a&#3s alues

• Taboos a&d "oliti%al do&3ts

• Traditio&s a&d Ethi%al sta&dards

Wh!! D"!# C"("a! C$%$! C"! 4"

• ,ou&der or earl# leader 

• I&flue&tial i&diidual or )or( 'rou"• Poli%ies* isio&* or strate'ies

• Traditio&s* su"erisor# "ra%ti%es* e!"lo#ee attitudes

• Or'a&i.atio&al "oliti%s

• Relatio&shi"s )ith sta(eholders a&d I&ter&al so%iolo'i%al for%es

C$%$! a&+ Sa!,. E'!)$*"&-

Culture %a& %o&tribute to 22 or hinder 22 su%%essful strate'# e-e%utio&$

• Reuire!e&ts for su%%essful strate'# e-e%utio& !a# 22 or may not 22 be %o!"atible

)ith %ulture$

• A  close match  bet)ee& %ulture a&d strate'# "ro!otes effe%tie strate'#

e-e%utio&

• 1h# Culture Matters/ Be&efits of a Good Culture2Strate'# ,itStrate'#2su""ortie %ultures

• Sha"e !ood a&d te!"era!e&t of the )or( for%e*  positively affecting 

organizational energy, work habits, a&d operating practices 

• Proide standards, values, informal rules a&d peer pressures that nurture and 

motivate  "eo"le to do their 0obs i& )a#s that "ro!ote

'ood strate'# e-e%utio&

• Strengthen employee identification )ith the %o!"a&#* its "erfor!a&%e tar'ets*

a&d strate'#

Sa!,.-S$(("*! )$%$!#-

• Stimulate people to ta(e o& the %halle&'e of reali.i&' the %o!"a&#3s isio&* do their 

 0obs %o!"ete&tl# a&d )ith e&thusias!* a&d %ollaborate )ith others to e-e%ute the

strate'#

• Optimal condition:  A )or( e&iro&!e&t that Pro!otes can do attitudes, Accepts

%ha&'e* Breeds &eeded capabilities.

4")!# a&+ 4a)"# Ca$#*&, C$%$! " E"%!-

• I&ter&al %rises

• Reolutio&ar# te%h&olo'ies

•  Ne) %halle&'es

• Arrial of &e) leaders

• Tur&oer of (e# e!"lo#ees

?iersifi%atio& i&to &e) busi&esses• E-"a&sio& i&to differe&t 'eo'ra"hi% areas

• Ra"id 'ro)th addi&' &e) e!"lo#ees

• Mer'er )ith or a%uisitio& of a&other %o!"a&#

• Globali.atio&

C!a*&, a S"&, 4* 5!6!!& Sa!,. a&+ C$%$!-

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HUMAN SIDE O4 MERGER AND AC7UISITION

Rise i& !er'ers a&d a%uisitio&s ;MA<* a%uisitie fir!s are shar"e&i&' their "e&%ils for 

)a#s to e-"a&d !ar(et share a&d es%alate their e&tra&%es i&to &e) 'eo'ra"hi% re'io&s$ Ofte&

a& afterthou'ht i& 'ro)th strate'ies is the %reatio& of a %lear "la& for !a&a'i&' the effe%ts of 

ra"id e-"a&sio& o& eer# %o!"a&#3s No$ 4 resour%e (!"(%!9

Ta(i&' a "roa%tie sta&%e o& "eo"le issues is %ru%ial/

D ?o%u!e&t esse&tial "ro%esses a&d be ho&est about )hat is (&o)& a&d u&(&o)&$

I&for!atio& shari&' %a& be a si'&ifi%a&t "roble!$ 1hether based o& a& u&%o&s%ious desire to

 "rote%t turf a&d !a(e o&e i&dis"e&sable* or rooted i& a& ho&est la%( of (&o)led'e a&d

e-isti&' do%u!e&tatio&* 'etti&' i&for!atio& out of "eo"le %a& be diffi%ult$ It is ee& !ore

%halle&'i&' i& a !er'er of eual tra&sa%tio&* )here both "arties !a# be %o!"eti&' for 

lo&'er2ter! roles a&d therefore be less )illi&' to e&'a'e$ Si!ilarl#* i& a& a%uisitio&e&iro&!e&t* the a%uired e&tit# !a# feel sli'hted* a&d the a%uiri&' e&tit# !a# be "er%eied

as a%ti&' i!"eriousl# or )ithout re'ard to the full set of %or"orate &eeds$ No&e of these

 behaiors dries o"e& a&d ho&est i&for!atio& e-%ha&'e* so it is %riti%al to build a&

e&iro&!e&t of %ollaboratio&$ ?o%u!e&t (e# "ro%esses to e&sure %lear des%ri"tio&s e-ist that

a&#o&e %a& follo)$ The i&te'rated %o!"a&# should &ot fi&d itself de"e&de&t u"o& resour%es

)ho 8hae it all i& their heads$9 ,o%usi&' o& "ro%ess do%u!e&tatio& seres as a& i&sura&%e

 "oli%# a'ai&st u&e-"e%ted tra&sitio&s$ A side be&efit of these "roa%tie efforts is u&%oeri&'

o""ortu&ities for effi%ie&%# 'ai&s throu'h "ro%ess i!"roe!e&t a&d %o!"aratie role

assess!e&ts as i&te'ratio& efforts "ro'ress$

D Ma" (e# "erso&&el i&to the &e) or'a&i.atio&* a&d deelo" a& i&diidual "la& to attra%t a&d

retai& those resour%es$ Build differe&t !otiators i&to sele%t i&te'ratio& )or(strea!s*i&%ludi&' 0ob o""ortu&ities* isibilit#* i&ole!e&t i& i&te'ratio& a%tiities* a&d rete&tio& a&d

 "erfor!a&%e bo&uses$ Share the fa%t that these i&%e&ties e-ist* a&d %reate a %ulture of )a&t

i&stead of fear b# !a(i&' it %lear that o""ortu&ities e-ist to be%o!e i&te'ral to the

or'a&i.atio&3s future su%%ess$ ?eelo" a&d e-e%ute a %o!!u&i%atio& "la& that i&%ludes

!ulti"le !ethods for %o&e#i&' the o""ortu&ities a&d i&%e&ties to a broad audie&%e )ithi&

 both or'a&i.atio&s i&oled i& the !er'er or a%uisitio&$

D Pla& for the u&e-"e%ted$ ?es"ite rete&tio& bo&uses* e&'a'e!e&t "ro'ra!s* a&d s"e%ifi%

fo%us o& i&diiduals %o&sidered to be i&dis"e&sable* "eo"le 1ILL leae$ Ma&a'e!e&t3s

ha&dli&' of su%h tra&sitio& )ill sa# a 'reat deal about the e!otio&al !aturit# of the %o!"a&#*

a&d %o&tribute to other resour%es3 de%isio&s to sta# or 'o$ It is i!"eratie to %reate su%%essio&

 "la&s belo) the e-e%utie leel$ Ofte& o&l# the !ost se&ior "eo"le hae )ell2deelo"edtra&sitio& "la&s$ I& ti!es of 'reat %ha&'e* it is "arti%ularl# i!"orta&t that or'a&i.atio&s hae

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these sa!e su%%essio& "la&s i& "la%e for all %riti%al roles a%ross the or'a&i.atio& to e&sure that

(e# fu&%tio&s )ill &ot fa%e ris($

D Trai& !a&a'ers a%ross the board o& drii&' rete&tio& a&d e!"lo#ee e&'a'e!e&t$ To&e is

i!"orta&t &ot 0ust fro! the to"* but throu'hout the or'a&i.atio&$ ?e!o&strate i&terest* %are*

a&d su""ort of the tra&sitio& at all leels$ Re!e!ber that "eo"le !a&a'e!e&t is* at its heart* a

series of i&diidual hu!a& relatio&shi"s$ Studies sho) that i&diiduals are !ore a"t to sta# at 0obs lo&'er if the# li(e a&d trust the !a&a'ers the# dire%tl# re"ort to$ Therefore* to&e at the

!iddle be%o!es a defi&i&' ta%ti% for holdi&' o& to esse&tial e!"lo#ees$

D Pa# atte&tio& to the little thi&'s$ ears a'o* a !a0or soft)are %o!"a&# bou'ht a&other !a0or 

soft)are %o!"a&# after a& e-te&ded battle for %o&trol that %reated 'reat fears o& both sides$

The a%uiri&' %o!"a&# a&&ou&%ed "la&s to shutter a lo%al offi%e* but &eer "roided

dire%tio&s for the &e) offi%e lo%atio&$ O& da# o&e* se%urit# at the &e) HF ;a""are&tl# also

&ot i&for!ed of the deal< )as sur"rised to fi&d a""ro-i!atel# 4 &e) fa%es loo(i&' for their 

%ubes* e-"e%ti&' bad'es* a&d !illi&' about the lobb#$ Nothi&' !ali%ious )as i&te&ded* a&d

all )as )or(ed out* but "erso&&el )o&dered u&&e%essaril# about )hether this !isste" )as the

first shot i& a& u&i&te&ded )ar$

Peo"le are the least "redi%table %o!"o&e&t )he& setti&' u" a& a%uisitio& strate'#$ The# %a&!a(e or brea( a )ell2!at%hed !er'er$ To su%%eed )ith the hu!a& di!e&sio& of i&te'ratio&*

it is i!"eratie that or'a&i.atio&s u&dersta&d a&d "la& for the "eo"le ris(s that are %reated

duri&' the life %#%le of !er'ers a&d a%uisitio&s$

I##$!# Tha )a& 5! ha&+%!+ 5. HR-Ma&a,!#-

• U&deresti!atio& of the diffi%ulties of !er'i&' t)o %ultures$

• U&deresti!atio& of the "roble!s of s(ill tra&sfer$

• ?e2!otiatio& of e!"lo#ees of a%uired %o!"a&#$

• ?e"arture of (e# "eo"le i& a%uired %o!"a&#$

• Too !u%h e&er'# deoted to doi&' the deal3* &ot e&ou'h to "ost2a%uisitio& "la&&i&'

a&d i&te'ratio&$• ?e%isio&2!a(i&' dela#ed b# u&%lear res"o&sibilities a&d "ost2a%uisitio& %o&fli%ts$

•  Ne'le%ti&' e!"lo#ee )elfares of e-isti&' busi&ess due to the a!ou&t of atte&tio&

'oi&' i&to the a%uired %o!"a&#$

I(a) ": M;A "& E(%".!!#-

A)*"&# :" HR-

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I: (!"(%! *##$!# a! #" )**)a%< 6h. a! h!. &!,%!)!+ P"##*5%! !a#"&# *&)%$+!-

E-e%uties beliee that the# are too 8soft9 a&d* therefore* too hard to !a&a'e$

• So%ial %osts a&d be&efits are re'arded as se%o&dar#$• There is a la%( of a)are&ess or %o&se&sus that "eo"le issues are %riti%al$

• There is &o s"o(es"erso& to arti%ulate these issues$

• There is &o !odel or fra!e)or( that %a& sere as a tool for us s#ste!ati%all# to

u&dersta&d a&d !a&a'e the "eo"le issues$

• Therefore* the fo%us of atte&tio& i& MA a%tiit# is o& other busi&ess as"e%ts su%h as

fi&a&%e* a%%ou&ti&'* strate'#* a&d !a&ufa%turi&'$

I##$!# " 5! ha&+%!+ 5. HRM-

• Pre"aratio& of ?ue ?ili'e&%e Re"ort$2 re%ruit!e&t* trai&i&'* "erfor!a&%e a""raisal*

%o!"e&satio&* labor relatio&s le'al %o!"lia&%e$• Creatio& of Ma&"o)er Pla&2deli&eate roles re"orti&' relatio&shi"s$

• Co!!u&i%atio&

• Rete&tio& Strate'#2 Rete&tio& Bo&us Pla&s$

• HR I&te'ratio& 6HR S#ste!s* Poli%ies Pra%ti%es

• Cultural I&te'ratio&$

E=AMPLE-

19Sa.a A)>$*#**"& 5. T!)h Mah*&+a-

• Te%h Mahi&dra27=* e!"lo#ees$

• Sat#a! 6 >* e!"lo#ees$

• HR2?e"art!e&t fa%ed %halle&'e to retai& the E!"lo#ees their Clie&ts$  2Sales Reboot Ca!"ai'&$

  2S"e%ial I&du%tio& Pro'ra!!es$

  2Re%o'&itio& Re)ard S%he!es$

  2Co!!u&i%atio& Cha&&el$

 

29TCS- Taa I&:"T!)h M!,!-

Co&sideratio& of "rior e-"erie&%e$

?esi'&atio&* fit!e&t "a# s%ales$

 Joi&i&' dates$

Le'al issues* "ro!otio&s "oli%ies$

I&du%tio& Pro0e%t Allo%atio&$

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LEADERSHIP< POWER AND POLITICS

4"%%"6!#h*( a# a C"("&!& ": L!a+!#h*(-Althou'h so!e leaders do &ot li(e to thi&( of 

the!seles as follo)ers usuall# be%ause bei&' a follo)er %a& hae a %o&&otatio& for "assie*

sub!issie or )ea( ;Chaleff* 4KK<$ Ho)eer* all leaders are follo)ers re'ardless of their 

leadershi" "ositio& or "o)er$ Ee& the "reside&t of the U&ited States is a follo)er a&d has arelatio&shi" of follo)ershi" )ith !e!bers of his "oliti%al "art#* Co&'ress a&d the A!eri%a&

 "eo"le$

A %o!"o&e&t of leadershi" defi&itio& is the leader2follo)er relatio&shi"$ ,ollo)ershi"

as a dis%i"li&e of !a&a'e!e&t a&d leadershi" has bee& studied as far ba%( as 4K==* but !ore

a&d !ore s%holars be'a& tal(i&' a %loser loo( at follo)ershi" duri&' !ore re%e&t #ears*

althou'h there is still a la%( of relea&t e!"iri%al resear%h o& follo)ershi"* i& %o&trast to

leadershi"* )here the leadershi" to follo)ershi" boo( ratio has bee& of 47/4 boo(s

;B0u'stad* 7<$ ,ollo)ershi" is referred to as the %a"a%it# or )illi&'&ess to a leader b#

the Merria!21ebster O&li&e ?i%tio&ar# ;,ollo)ershi"* 744< or 8as the abilit# to effe%tiel#

follo) the dire%ties a&d su""ort the efforts of a leader to !a-i!i.e a stru%tured

or'a&i.atio&9 ;B0u'stad* 7* "$ =><$ A%%ordi&' to follo)ershi" !odel deelo"ed b#elle# ;4KK<* there are t)o di!e&sio&s to follo)ershi"$ These are/ 4< the e-te&t follo)er3s

sho) si'&s of %riti%al thi&(i&' a&d i&de"e&de&t de%isio& !a(i&'* a&d 7< the follo)er3s

 "assiit# s$ a%tiit# i& or'a&i.atio&al %o!!it!e&ts$ As "oi&ted before* &o !atter the

 "ositio& the e!"lo#ee holds* heshe is still a follo)er i& the or'a&i.atio&al stru%ture* ee& if 

the# are leaders )ithi& their or'a&i.atio&s ;Mo&tesi&o* 7=<$

Po)er as a Path to I&flue&%e

Po)er* a%%ordi&' to ul( ;7<* %a& be used for u&dersta&di&' a&d deali&' )ith

 "eo"le* as a )a# to i&flue&%e the! a&d rea%h or'a&i.atio&al 'oals$ It i&oles a& a'e&t of 

 "o)er* i$e$/ a !a&a'er* leaders* or'a&i.atio&* 'rou"* a&d the tar'et "art# to be i&flue&%ed* i$e$/

 "eo"le* thi&'s* attitudes* behaiors$ Po)er %a& also be des%ribed i& ter!s of ho) !u%h

i&flue&%e a& a'e&t %a& hae o& the tar'et;s<$ Po)er affe%ts leadershi" a&d its %o!"o&e&t of 

follo)ershi"* as i&diiduals hae a te&de&%# to follo) those )ith "o)er$ But leaders3 sour%es

of "o)er %o!e fro! differe&t !ea&s$ So!e hae "o)er be%ause the# !a# hae the abilit# to

'ie out raises* fire so!eo&e* or assi'&ed )or(5 )hile others hae "o)er be%ause the# are

sub0e%t !atters e-"erts i& a field* or are ad!ired b# their follo)ers$

The "o)er ta-o&o!# deelo"ed b# ,re&%h a&d Rae& ;4KK< hi'hli'hts fie sour%es

of i&diidual "o)er ;ul(* 7<$ These are/

• Le'iti!ate "o)er/ This sour%e of "o)er %o!es fro! a for!al "ositio&* )here others

%o!"l# si!"l# be%ause the# a%%e"t the le'iti!a%# of the "ositio& the !a&a'er has$

• Re)ard "o)er/ The tar'et %o!"lies as a )a# to 'et re)ards fro! the a'e&t$

• Coer%ie "o)er/ Co!"lia&%e is rea%hed i& order to aoid "u&ish!e&ts b# the a'e&t$• E-"ert Po)er/ Based o& a& i&diidual3s leel of (&o)led'e* e-"ertise a&d i&for!atio& i&

a "arti%ular field$

• Refere&t "o)er/ The tar'et "erso& %o!"lies be%ause the# ad!ire a&d li(e the a'e&t*

ide&tif# the!seles )ith the a'e&t* or )a&t the a'e&t3s a""roal$

o More re%e&tl#* others sour%es of "o)er hae bee& dis%ussed b# resear%hers ;Bal*

Ca!"bell* Steed Meddi&'s* 7<$ These i&%lude/

• Charis!a "o)er/ This is the i&flue&%ed 'e&erated b# the a'e&t3s st#le or "erso&a$

• Relatio&shi"s "o)er/ I& )hi%h the a'e&t3s i&flue&%e is 'ai& throu'h their for!al a&d

i&for!al &et)or(s i& a&d out of their or'a&i.atio&s$

• I&for!atio& "o)er/ This is the %o&trol that is 'e&erated b# usi&' fa%tual eide&%e to !a(ear'u!e&ts$

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• Positio& "o)er/ The for!al authorit#* %o&trol* oer re)ards* "u&ish!e&ts* i&for!atio&*

a&d e%olo'i%al %o&trol$ This o&e is a %o!bi&atio& of le'iti!ate* re)ard a&d %oer%ie

 "o)ers$

• Perso&al "o)er/ This o&e %o!bi&es e-"ertise* frie&dshi"* lo#alt# a&d %haris!a$

• Politi%al "o)er/ E&tails the %o&trol oer de%isio&s "ro%esses* %oalitio&* a&d

i&stitutio&ali.atio&s$

It is i!"orta&t to &ote that sour%es of "o)er li(e le'iti!ate* re)ard* a&d %oer%ie are all "art

of the "ositio& "o)ers* )hi%h i& 'e&eral ter!s all !a&a'ers hold$ 1hile e-"ert* refere&t*

relatio&shi"s* a&d %haris!a "o)ers are "erso&al "o)ers a&d %a& be "ossessed b# both leaders

a&d follo)ers$ Po)er %o&ditio&s %a& ar# a&d %ha&'e oer ti!e* a&d or'a&i.atio&al leaders

%a& either )i& or lose "o)er based o& i&diidual a&d or'a&i.atio&al %o&ditio&s affe%ted b#

i&ter&al a&d e-ter&al sour%es ;ul(* 7<$

Th! 4"%%"6!#h*( a&+ P"6! R!%a*"&#h*( a&+ *# E::!)# "& L!a+!#h*(-The "ote&tial

relatio&shi" bet)ee& "o)er a&d follo)ershi" hae to do )ith ho) the i&diidual sour%es of 

 "o)ers %a& be "ut to use i& the i&flue&%e "ro%ess of leadershi"$ Thus* as e-"lai&ed aboe*

 "ositio& "o)er is 'e&erall# retai&ed b# !a&a'er5 follo)er %a& also use "erso&al "o)er to

i&flue&%e de%isio& !a(ers a&d sha"e "oli%ies* a&d &or!s i& or'a&i.atio&s$ All sour%es of 

 "o)ers %a& be used b# !a&a'ers a&d follo)ers to i&flue&%e their or'a&i.atio&s$ As far as that

sour%e of "o)er has the !ost i&flue&%e5 I )ill hae to sa# that as a follo)er* it )ill de"e&d of 

the leel of e-"ertise the follo)er has i& hisher field* ho) li(ed heshe !a# be li(ed b#

su"erisors* "eers* a&d subordi&ates* a&d the &et)or(i&' heshe has a%uired )hile at the

or'a&i.atio&$ ,or leaders* all of these )ould a""l#5 ho)eer* )here the# !a&a'ers are i& their 

%hai& of %o!!a&d )ould hae a 'reater i!"a%t o& the "o)er a&d abilit# to i&flue&%e de%isio&

i& their or'a&i.atio&s* !ore so* tha& the leel of %haris!a* or "erso&al "o)er the# hae$

,urther!ore* "oliti%al "o)er %ould be the fou&datio& that %a& bri&' a !a&a'er a 'reater deal

of i&flue&%e fro! )ithi& the or'a&i.atio&$I& %o&%lusio&* the esse&%e of leadershi" is i&flue&%e oer follo)ers a&d follo)ershi"

%a& is a "art of leadershi"$ Leaders use "o)er as a !ethod to affe%t the effe%tie&ess of 

follo)ershi"* as "o)er* for!al or i&for!al* a&d its relatio&shi" to leadershi" a&d

follo)ershi"* is the e&'i&e the leaders use to i&flue&%e others$ Moreoer* "o)er is &ot

e-%lusie to leaders a&d !a&a'ers* a&d follo)ers %a& also hae also use differe&t sour%es of 

 "o)er to e-ert leadershi"* ee& i& a follo)er %a"a%it#$

 No) %or"orate "oliti%s* it is also (&o)& as or'a&i.atio&al "oliti%s$ all %or"orate %ulture

i&%lude a "oliti%al %o!"o&e&t a&d* therefore all or'a&i.atio& are "oliti%al i&

&ature$or'a&isatio&al !e!bers bri&' )ith the! their li(es*disli(es*ie)s a&d o"i&io&s*

 "re0udi%es a&d i&%li&atio&s )he& the# e&ter or'a&i.atio&s$ Ma&a'erial behaior %a& &ot be

 "urel# ratio&al a&d a& u&dersta&di&' is to be a%uired of ho) %or"orate "oliti%s )or( a&d useof "o)er is to be !ade for effe%tie strate'i% !a&a'e!e&t$

U&+!#a&+*&, P"%**)# a&+ U#! ": P"6!-

• Re)ard Po)er 

• Coer%ie Po)er

• Le'iti!ate Po)er

• Refere&%e Po)er 

• E-"ert Po)er 

Sa!,*) $#! ": ("6! a&+ ("%**)#-

Strate'i% use of "o)er a&d "oliti%s !a# i&ole o&e or !ore of the ta%ti%s )hi%h are !e&tio&

here$• A%%e"t the i&eitabilit# of "oliti%s bei&' there i& the or'a&i.atio&

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• U&dersta&di&' the "o)er stru%ture

• Lead strate'#

• Be se&sitie a&d alert to "oliti%al si'&als

• Re)ard or'a&i.atio&al %o!!it!e&t

Use o"e&&ess a&d ho&est#The "rese&%e of "oliti%s a&d use of "o)er are* "erha"s* !ore isible tha& i& other %ulture$

This is due to first t)o fa%tors$

• These !ea&s that )hile or'a&i.atio& i& I&dia hae ado"ted bureau%ra%#* the "erso&2

orie&ted &ature of I&dia& so%iet# su''ests a& e!"hasi.es o& "arti%ularisti% rather tha&

u&iersalisti% treat!e&t of e!"lo#ees* leadi&'

• To relia&%e o& "erso&al %hara%teristi%s i& hiri&'* "ro!oti&' a&d re)ardi&' e!"lo#ee$

• E&ious&ess/ a feeli&' of 'rud'i&' ad!iratio& a&d desire to hae so!ethi&' that is

 "osses b# a&other$

• Perasie/ eer#)here$

• I& the or'a&i.atio& !a&a'ers do &ot hae to deal )ith

P"6!< P"%**)# a&+ I&:%$!&)! 6*h*& O,a&*?a*"&#-

The use of "o)er a&d "oliti%s %reati&' i&flue&%e is a& i&te'ral "art of hu!a& i&tera%tio&$ The

use of arious strate'ies %a& be dated ba%( to as earl# as 7 BC )ithi& both I&dia& a&d

Chi&ese so%iet#$ The use of reli'io& has histori%all# bee& the l#&%h "i& i& 'e&erati&'

obedie&%e usi&' all for!s of "o)er throu'h %o!!u&i%atio& )ith Gods* to e&sure )ishes

)ere !et$ All so%ieties i& e-iste&%e !ust therefore be a%(&o)led'ed as bei&' fou&ded o& the

utili.i&' of "o)er* "oliti%s a&d i&flue&%e i& order to sha"e the %ulture as i&te&ded b# the

i&'3 fi'ure$ The ra"id e-"a&sio& of su%h so%ieties* %o!bi&ed )ith te%h&olo'ies leadi&' to

ee&ts su%h as the i&dustrial reolutio& has &o) see& "o)er strate'ies !ore deelo"ed$ The

 "ur"ose of this "a"er is to reie) the %ulture of busi&ess i& order to e-a!i&e the "ro'ressio&a&d use of "o)er* "oliti%s a&d i&flue&%e as used i& the )or("la%e$ Multi"le theories )ill be

e-a!i&ed as "er the a%ade!i% sta&dards "ro"osed b# !ulti"le e-"erts$ I& order to 'au'e the

feasibilit# of the theories* a situatio&al a&al#sis of S"e%ialt# Cereals )ill be used to hi'hli'ht

a&# dis%re"a&%ies bet)ee& the "ro"osed a&d a%tual use of "o)er i& all for!s$ The %o&trast

dra)& is belieed to i&di%ate the "ote&tial !isuse or d#sfu&%tio&al )or("la%e a%tiities*

allo)i&' for re%o!!e&datio&s to be !ade "roidi&' solutio&s i&to better adised

!a&a'ere!"lo#ee relatio&s$

W"(%a)! E'a(%!-

Gie& the ie) that "o)er a&d "oliti%s are %o&sidered b# !ost theorists as 8a held of 'ro)i&'

alue a&d relea&%e for u&dersta&di&' !a&a'erial "ro%esses$9It is &e%essar# to a&al#.e a

)or( e&iro&!e&t )hi%h "roides a aried a&d e-te&sie e-a!"le of "o)er a&d "oliti%s$ The%hose& busi&ess is food !a&ufa%turer S"e%ialt# Cereals a ello'' Co!"a&# subsidiar#* based

;"rior to %losi&' i& Mar%h 74=< )ithi& S#d&e#3s Norther& Bea%hes$ The busi&ess "roides

i&si'ht i&to the i&&er )or(i&'s of %ross %ultures* %o!bi&i&' !ulti"le %lass t#"es a&d aried

roles$ ,o%us )ill be "la%ed o& three differe&t leels )hi%h are e!"lo#ees* su"erisors a&d

!a&a'e!e&t i& order to establish as )ider u&dersta&di&' of "o)er a&d "oliti%s as "ossible$

Po)er is a& i!"orta&t d#&a!i% ;%o&%e"t or ariable< i& or'a&i.atio&al behaior$

POWER- 

Ma' W!5!/ The "robabilit# that o&e a%tor )ithi& a so%ial relatio&shi" )ill be i& a "ositio& to

%arr# out his o)& )ill des"ite resista&%e$

P:!::! The "ote&tial abilit# to i&flue&%e behaior* to %ha&'e the %ourse of ee&ts* to oer%o!e

resista&%e* a&d to 'et "eo"le to do thi&'s that the# )ould &ot other)ise do$ The %o&%e"t of "o)er&eeds to be disti&'uished fro! authorit# a&d i&flue&%e$

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 Authorit# is the ri'ht to dire%t others a&d as( the! to do thi&'s )hi%h the# )ould &ot other)ise

do* but it is le'iti!ate a&d is e-er%ised i& the )or(i&' of or'a&i.atio&s$ I&flue&%e is %o&%eied as

 broader a&d it is the abilit# to alter a%tio&s of other "eo"le i& 'e&eral )a#s b# %ha&'i&' their 

satisfa%tio& %riteria a&d thus i!"roe their "erfor!a&%e$ Authorit# is differe&t fro! "o)er be%ause

of its le'iti!a%# a&d a%%e"ta&%e i& a& or'a&i.atio&al %o&te-t a&d leadershi" is broader tha& "o)er 

a&d i&di%ates a )illi&'&ess o& the "art of the follo)er to follo) i& the abse&%e of authorit#$Lutha&s re!ar(ed that o"eratio&al defi&itio& of "o)er is still la%(i&'$

Th! )%a##*:*)a*"&# ": P"6!-Ps#%holo'ists Joh& ,re&%h a&d Bertra! Rae& "roided fie

%ate'ories

4$ Re)ard "o)er 

7$ Coer%ie "o)er ;"u&ish!e&t "o)er<

=$ Le'iti!ate "o)er 

>$ Refere&t "o)er 

$ E-"ert "o)er 

P:!::! @181 +!:*&!+ ",a&*?a*"&a% ("%**)# a# 8a%tiities ta(e& )ithi& or'a&i.atio&s toa%uire* deelo"* a&d use "o)er a&d other resour%es to obtai& o&e s "referred out%o!es i& a‟

situatio& i& )hi%h there is u&%ertai&t# or dis2se&sus about %hoi%es9

$)h&!-Ha6*&# a&+ M*%%! @200 )"&#*+!!+ ",a&*?a*"&a% ("%**)# as a& e-er%ise

of "o)er a&d i&flue&%e that "ri!aril# o%%urs outside of for!al or'a&i.atio&al "ro%esses a&d

 "ro%edures$ Politi%al behaiors %o&sist of i&flue&%e ta%ti%s desi'&ed to further self a&dor

or'a&i.atio&al i&terests* a&d its basi% ai! is to re%o&%ile a&d effe%tiel# !a&a'e su%h

 "ote&tiall# %o!"eti&' i&terests

Politi%s i& or'a&i.atio& a&d its "er%e"tio& )ithi& or'a&i.atio&

 

EMPLOYEE MORALE

O&e %o&sta&t a&d &eer2e&di&' battle fa%ed b# seeral !a&a'ers a&d bosses is that of (ee"i&'

their e!"lo#ees ha""#* &ot o&l# )ith %ash 'ra&ts but also )ith "roidi&' the ri'ht )or(i&'

e&iro&!e&t for the! to feel ha""# )he& %o!i&' to )or($

It is useless to de&# that the u&e!"lo#ed "erso& deelo"s a feeli&' of "o)erless&ess that

 be%o!es a fier%er foe as ti!e )ears o&$ The feeli&' be'i&s )he& o&e loses a 0ob$ O&e+s

e!otio&al a&d !aterial "o)er base has bee& re!oed$ After all* !o&e# is "o)er$ Hai&' a

reaso& to 'et u" a&d 'o out the door is "o)er$ Bei&' i& a "ositio& i& )hi%h "eo"le are

de"e&de&t o& the seri%es o&e re&ders is "o)er$

Sudde&l#* o&e+s i&%o!e* !otiatio& a&d i&flue&%e are all 'o&e$ ,urther!ore* o&e dis%oersthat the feeli&' of "o)erless&ess is %o!"ou&ded )he& o&e has to %o&for! to the de!a&ds

a&d s%hedules of "ossible e!"lo#ers$ The "ressure of a )or(2orie&ted so%iet# %o!bi&ed )ith

the relatio&al d#&a!i%s of feeli&'s of re0e%tio& a&d "o)erless&ess "ose a real da&'er to the

e!otio&al health of all u&e!"lo#ed "eo"le$

Ma&# %o!"a&ies thi&( that the best )a# to sole !orale "roble!s is to offer e!"lo#ees !ore

!o&e#$ Ho)eer* this is &ot all it ta(es be%ause !orale "roble!s are seldo! related to

!o&e#$,i&a&%ial !otiatio& %a& ta(e the for! of bo&uses* salar# hi(es a&d oerti!e or 

i&%reased be&efits a&d "er(s$

The !ai& reaso& )h# e!"lo#ees leae a& or'a&i.atio& or be%o!e disillusio&ed o& the 0ob is

related to the )a# the# are treated o& a da#2to2da# basis at their )or("la%e$ The best 0ob o&e

%a& eer hae i& his life ;a&d o&e )hi%h is al!ost i!"ossible to hae< is o&e )here #ou (&o)ho) #ou hae "erfor!ed ea%h da# a&d feel a""re%iated for #our a%%o!"lish!e&ts that da#$

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The %o!"a&# that (&o)s a&d (ee"s a re%ord of the a%%o!"lish!e&ts of ea%h of its e!"lo#ees

a&d 'ie so!e for! of a""re%iatio& for the! )ill &ot o&l# (ee" its e!"lo#ees ha""# a&d

satisfied i& the )or("la%e* but )ill out"erfor! their %o!"etitors )ho do &ot hae this

a""roa%h to)ards their staff$

It !ust be re!e!bered that a%%o!"lish!e&ts do &ot &eed to be re)arded )ith laish 'ifts or 

 "er(s$ 1hat the# &eed to be re)arded )ith is a for! of re%o'&itio& that the %o!"a&#a""re%iates )hat the s"e%ifi% e!"lo#ee did for it that da#$

1hile o&e e!"lo#ee !a# relish ti%(ets to a %o&%ert or to the %i&e!a* others !a# disli(e these

thi&'s a&d "refer )ee(e&d brea(s or dis%ou&t %ards$ Ta(i&' the ti!e to (&o) #our e!"lo#ees+

li(es a&d disli(es is "robabl# the best se%ret to "roidi&' the ri'ht "ositie rei&for%e!e&t at

the ri'ht ti!e$ Sho)i&' #our e!"lo#ees that #ou a""re%iate the! is a er# i!"orta&t a&d

effe%tie tool to (ee" #our e!"lo#ees ha""#$

Re)ards %ould ar# fro! "erso& to "erso&$ ,or so!e it !a# be a fresh bouuet of flo)ers$

,or others it !a# be !ore ti!e off )or( or bei&' ta(e& out for lu&%h$ These thi&'s are useful

to rei&for%e e!"lo#ees a&d a%(&o)led'e the! for %o&tributi&' to the su%%ess of the %o!"a&#$

These for!s of rei&for%e!e&t are !orale boosters but the# should be a%%o!"a&ied b#

 "ositie rei&for%e!e&t that is deliered o& a dail# basis$ 1hile !o&e# alo&e )ill &ot sole "roble!s* delieri&' da#2to2da# "ositie rei&for%e!e&t )ill$ This dail# rei&for%e!e&t %a&

ta(e the for! of erbal %o!!e&ts* ha&d2)ritte& &otes or "eer2to2"eer i&tera%tio& that lets

fello) )or(ers (&o) the# are alued !e!bers of the or'a&i.atio&$

Must #ou be a &aturall# 'ifted leader to i&s"ire #our e!"lo#ees to 'ie their !a-i!u! o& the

 0ob@ Trul# i&s"ired )or(ers )ill do that re'ardless of ho) !u%h %har! the !a&a'er has$ The

 bad &e)s is that if e!"lo#ees do &ot 'ie their 4 "er %e&t o& the 0ob* the busi&ess is losi&'

!o&e#$

Busi&esses "a# a hi'h "ri%e if as !u%h as = "er %e&t of a& u&i&s"ired e!"lo#ee+s "ote&tial

e&er'# is left o& the table* u&ta""ed$

 Ne'atiit# at the )or("la%e !a# be the result of seeral fa%tors$ Perha"s the or'a&i.atio&

!ade a de%isio& that adersel# affe%ted the )or(ers or "erha"s the !a&a'er held a staff 

!eeti&' a&d 'ae the i!"ressio& that he )as &ot i&terested i& the staff+s i&"ut$ These are all

thi&'s that %reate a &e'atie feeli&' i& the )or("la%e a&d e!"lo#ees )ill lose i&terest i&

'ii&' their !a-i!u! to the or'a&i.atio&$

O&e thi&' is %ertai&/ )hateer the %ause of this &e'atiit#* it is i& the i&terest of the !a&a'ers

of the or'a&i.atio& 2 a&d ee&* to a& e-te&t* the staff 2 to i!!ediatel# address the issues

)hi%h see! to be %ausi&' the "roble!s$ Other)ise* li(e !a&# other thi&'s i& life* the

 "roble! )ill 'ro) to rese!ble a dor!a&t ol%a&o 2 the e!"lo#ees )ill be boili&' be&eath the

surfa%e a&d all of a sudde& this )ill eru"t* %ausi&' fresh "roble!s )hi%h add u" to the o&es

)hi%h alread# e-ist:

There is a )ides"read assu!"tio& that !a&# u&e!"lo#ed "eo"le are aoidi&' e!"lo#!e&t*a&d that a& oer2'e&erous be&efit s#ste! e&%oura'es this$ This !a# )ell be true$ Ho)eer*

there is also the realit# that a &u!ber of u&e!"lo#ed "eo"le i& Malta are reall# tr#i&' to loo( 

for a de%e&t 0ob )ith )hi%h the# %a& loo( after their fa!ilies$

1hat is re!ar(able is that if o&e had to stud# the attitudes of u&e!"lo#ed "eo"le* the# )ould

!ost "robabl# rea%h the o""osite %o&%lusio& 2 the ast !a0orit# of u&e!"lo#ed "eo"le

des"eratel# )a&t 0obs* a&d are doi&' eer#thi&' the# %a& to 'et the!$

If o&e had to loo( at the e-te&t to )hi%h u&e!"lo#ed "eo"le are* b# their attitudes a&d

 behaior* res"o&sible for their u&e!"lo#!e&t* )hat )ould the result be@ This %a& be

dis%ussed i& detail a&d o"i&io& )ill surel# differ$ But the !ost %o!!o& result is that for the

'reater "art of the u&e!"lo#ed* u&e!"lo#!e&t !otiatio& or the fle-ibilit# of attitudes )he&

it %o!es to 0ob sear%h affe%ts the ti!e that it ta(es "eo"le to fi&d )or( a'ai&$

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It !a# be also i&teresti&' to loo( at )hether u&e!"lo#ed "eo"le do i& fa%t be%o!e

de!otiated oer ti!e a&d therefore reuire added i&%e&ties to loo( for )or($ The

stereot#"ed +!otiatio& "roble!+ is also refuted b# i&ter&atio&al resear%h$

I("! E(%".!! M"a%!-

,a%tors that %a& %o&tribute to "ositie e!"lo#ee !orale i&%lude* but are &ot li!ited* to

these$ Al!ost a&#thi&' #ou do that %o&tributes to a "ositie )or( e&iro&!e&t for 

e!"lo#ees hel"s to build e!"lo#ee !orale$ 1he& #ou ta(e %are of fa%tors su%h as these*

e!"lo#ee !orale %a& re!ai& hi'h ee& i& turbule&t* u&%ertai& ti!es$

• treati&' e!"lo#ees )ith res"e%t*

•  "roidi&' re'ular e!"lo#ee re%o'&itio&*

• e!"o)eri&' e!"lo#ees*

• offeri&' o"e& a&d re'ular %o!!u&i%atio& about fa%tors i!"orta&t to e!"lo#ees*

• "roidi&' feedba%( a&d %oa%hi&'*

• offeri&' aboe i&dustr#2aera'e be&efits a&d %o!"e&satio&*

•  "roidi&' e!"lo#ee "er(s a&d %o!"a&# a%tiities* a&d

• Positiel# !a&a'i&' e!"lo#ees )ithi& a su%%ess fra!e)or( of 'oals* !easure!e&ts*

a&d %lear e-"e%tatio&s$

ou %a& !easure #our or'a&i.atio&+s su%%ess i& deelo"i&' a&d fosteri&' "ositie e!"lo#ee

!orale b# usi&' the !ethods des%ribed i& !easuri&' e!"lo#ee satisfa%tio&$ Buildi&' "ositie

e!"lo#ee !orale is &ot diffi%ult* but it ta(es desire* %o!!it!e&t* a&d atte&tio& o& the "art of 

!a&a'e!e&t a&d the or'a&i.atio&$

PERSONAL VALUES AND BUSINESS ETHICSValues a&d ethi%s are %e&tral to a&# or'a&i.atio&5 those o"erati&' i& the &atio&al se%urit#

are&a are &o e-%e"tio&$ 1hat e-a%tl# do )e !ea& b# alues a&d ethi%s@ Both are e-tre!el#

 broad ter!s* a&d )e &eed to fo%us i& o& the as"e%ts !ost relea&t for strate'i% leaders a&d

de%isio& !a(ers$ 1hat )e )ill first dis%uss is the disti&%tie &ature of ethi%s for "ubli%

offi%ials5 se%o&d* the for%es )hi%h i&flue&%e the ethi%al behaiour of i&diiduals i&

or'a&i.atio&s5 a&d third* e-"lore the a%tio&s strate'i% leaders %a& ta(e to build ethi%al

%li!ates i& their or'a&i.atio&s$

THE CHARACTER O4 VALUES AND ETHICS

Va%$!# %a& be defi&ed as those thi&'s that are i!"orta&t to or alued b# so!eo&e$ That

so!eo&e %a& be a& i&diidual or* %olle%tiel#* a& or'a&i.atio&$ O&e "la%e )here alues are

i!"orta&t is i& relatio& to isio&$ O&e of the i!"eraties for or'a&i.atio&al isio& is that it

!ust be based o& a&d %o&siste&t )ith the or'a&i.atio&+s %ore alues$ I& o&e e-a!"le of a

isio& state!e&t )e+ll loo( at later* the or'a&i.atio&+s %ore alues 2 i& this %ase* *&!,*.<

(":!##*"&a%*#< )a*&,< !a6"< a&+ #!6a+#h*(2 )ere dee!ed i!"orta&t e&ou'h to

 be i&%luded )ith the state!e&t of the or'a&i.atio&+s isio&$ ?r$ Joh& Joh&s* i& a& arti%le

e&titled The Ethi%al ?i!e&sio&s of Natio&al Se%urit#* !e&tio&s ho&est# a&d lo#alt# as

alues that are the i&'redie&ts of i&te'rit#$ 1he& alues are shared b# all !e!bers of a&

or'a&i.atio&* the# are e-traordi&aril# i!"orta&t tools for !a(i&' 0ud'!e&ts* assessi&'

 "robable out%o!es of %o&te!"lated a%tio&s* a&d %hoosi&' a!o&' alter&aties$ Perha"s !ore

i!"orta&t* the# "ut all !e!bers o& the sa!e sheet of !usi% )ith re'ard to )hat all

!e!bers as a bod# %o&sider i!"orta&t$

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The Ar!#* i& 4K* had as the the!e for the #ear alues* a&d listed four 

or'a&i.atio&al values2lo#alt#* dut#* selfless seri%e* a&d i&te'rit#2a&d four i&diidual values2

%o!!it!e&t* %o!"ete&%e* %a&dour* a&d %oura'e$ A ?e"art!e&t of the Ar!# "a!"hlet

e&titled alues: !he Bedrock of Our "rofession s"e&t so!e ti!e tal(i&' about the i!"orta&%e

of values* a&d i&%luded this defi&itio&/

Values are )hat )e* as a "rofessio&* 0ud'e to be ri'ht$ The# are !ore tha& )ords2the# are the!oral* ethi%al* a&d "rofessio&al attributes of %hara%ter $ $ $ there are %ertai& %ore alues that

!ust be i&stilled i& !e!bers of the U$S$ Ar!#2%iilia& a&d u&ifor!ed soldier ali(e$ These

are &ot the o&l# alues that should deter!i&e our %hara%ter* but the# are o&es that are %e&tral

to our "rofessio& a&d should 'uide our lies as )e sere our Natio&$

Va%$!# are the e!bodi!e&t of )hat a& or'a&i.atio& sta&ds for* a&d should be the basis for the

 behaior of its !e!bers$ Ho)eer* )hat if !e!bers of the or'a&i.atio& do &ot share a&d

hae &ot i&ter&ali.ed the or'a&i.atio&+s alues@ Obiousl#* a dis%o&&e%t bet)ee& individual 

and organizational  values )ill be d#sfu&%tio&al$ Additio&all#* a& or'a&i.atio& !a# "ublish

o&e set of alues* "erha"s i& a& effort to "ush for)ard a "ositie i!a'e* )hile the alues that

reall# 'uide or'a&i.atio&al behaiour are er# differe&t$ 1he& there is a dis%o&&e%t

 bet)ee& stated and operating values* it !a# be diffi%ult to deter!i&e )hat is a%%e"table$,or e-a!"le* t)o of the Ar!#+s or'a&i.atio&al alues i&%lude %a&dour a&d %oura'e$ O&e

!i'ht i&fer that offi%ers are e&%oura'ed to hae the %oura'e of their %o&i%tio&s a&d s"ea( 

their disa'ree!e&ts o"e&l#$ I& so!e %ases* this does )or(5 i& others it does &ot$

The sa!e thi&' )or(s at the leel of the so%iet#$ The "ri&%i"les b# )hi%h the so%iet#

fu&%tio&s do &ot &e%essaril# %o&for! to the "ri&%i"les stated$ Those i& "o)er !a# %oertl#

allo) the use of for%e to su""ress debate i& order to re!ai& i& "o)er$ ;death suads are a&

e-a!"le$< I& so!e or'a&i.atio&s* disse&t !a# be re)arded b# ter!i&atio&2the or'a&i.atio&al

euiale&t of death suad a%tio&$ I& others* a 'rou" !e!ber !a# be ostra%i.ed or e-"elled$

Grou" !e!bers ui%(l# lear& the operating  values* or the# do&+t surie for lo&'$ To the

e-te&t the# differ fro! stated  values* the or'a&i.atio& )ill &ot o&l# suffer fro! doi&' thi&'s

less effe%tiel#* but also fro! the %#&i%is! of its !e!bers* )ho hae #et a&other reaso& for 

!istrusti&' the leadershi"* or doubti&' its )isdo!$

THE PUBLIC TRUST-

If ethi%s a&d !oralit# are i!"orta&t for 'rou"s a&d or'a&i.atio&s* the# should also be

i!"orta&t for "ubli% offi%ials* a&d for er# !u%h the sa!e reaso&s$ or( 1illber&* i& a&

arti%le e&titled T#"es a&d Leels of Publi% Moralit#* ar'ues for si- t#"es or leels of 

!oralit# ;or ethi%s< for "ubli% offi%ials$ B# "ubli% offi%ials* he !ea&s those )ho are i& "oli%#

!a(i&' "ositio&s i& "ubli% i&stitutio&s5 i& other )ords* strate'i% de%isio& !a(ers i& the

'oer&!e&t* i&%ludi&' the &atio&al se%urit# are&a$ The si- leels he differe&tiates are/ basi%

ho&est# a&d %o&for!it# to la)5 %o&fli%ts of i&terest5 seri%e orie&tatio& a&d "ro%edural

fair&ess5 the ethi% of de!o%rati% res"o&sibilit#5 the ethi% of "ubli% "oli%# deter!i&atio&5 a&dthe ethi% of %o!"ro!ise a&d so%ial i&te'ratio&$

WILLBERNS LEVEL O4 PUBLIC MORALITY-

• ETHIC O, COMPROMISE AN? SOCIAL INTEGRATION

• ETHIC O, PUBLIC POLIC ?ETERMINATION

• ETHIC O, ?EMOCRATIC RESPONSIBILIT

• SERVICE ORIENTATION AN? PROCE?URAL ,AIRNESS

• CON,LICT O, INTEREST

• BASIC HONEST AN? CON,ORMIT TO LA1

BASIC HONESTY AND CON4ORMITY TO LAW-The "ubli% sera&t is !orall# bou&d*

 0ust as are other "erso&s* to tell the truth* to (ee" "ro!ises* to res"e%t the "erso& a&d the

 "ro"ert# of others* a&d to abide b# the reuire!e&ts of the la) ;1illber&<$ I& !a&# )a#s*this leel o&l# des%ribes the basi% adhere&%e to !oral %odes that is e-"e%ted of all !e!bers

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of a 'rou" or so%iet#$ There are so!e basi%s of behaiour that are e-"e%ted of all if a so%iet#

is to fu&%tio& for the %olle%tie 'ood$ ,or "ubli% offi%ials* there is a& additio&al reaso& )h# it

is i!"orta&t to adhere to these basi% !oral %odes a&d la)s/ the# hae !ore "o)er tha& the

aera'e !e!ber of the so%iet#* a&d he&%e !ore o""ortu&it# for iolatio& of those %odes or 

la)s$ There also is the &e'atie e-a!"le that !is%o&du%t b# "ubli% offi%ials "roides$

CON4LICT O4 INTEREST-This relates to "ubli% offi%ials* be%ause it deals )ith the%o&fli%t bet)ee& ada&%i&' the "ubli% i&terest* )hi%h a "ubli% offi%ial is %har'ed to do* a&d

ada&%i&' o&e+s self2i&terest$ The dut# here is to e&sure that the "ubli% i&terest %o!es first*

a&d that o&e does &ot ada&%e his o)& "erso&al i&terest at the e-"e&se of the "ubli%$

1illber& uses e!be..le!e&t of "ubli% fu&ds* briber#* a&d %o&tra%t (i%(ba%(s as e-a!"les of 

 "ursui&' "erso&al i&terests at the e-"e&se of those of the "ubli%$ The reuire!e&ts for "ubli%

offi%ials to diest the!seles of i&est!e&ts that !i'ht be i&flue&%ed b# the "erfor!a&%e of 

their duties ;or "ut the! i& trust< a&d to re%ues the!seles i& situatio&s )here the# hae a

 "erso&al i&terest are desi'&ed to hel" "ubli% offi%ials aoid %o&fli%ts of i&terest$ Ulti!atel#* it

still %o!es do)& to the i&diidual !a(i&' a& ethi%al de%isio&$

Aoida&%e of %o&fli%t of i&terest is ofte& diffi%ult be%ause it is ofte& hard to se"arate "erso&al

a&d "ubli% i&terests* a&d be%ause i&diiduals as "riate %iti.e&s are e&%oura'ed to "ursue "riate i&terests throu'h a&# le'al !ea&s$ O&e of the areas )here there is the 'reatest

 "ote&tial for %o&fli%ts of i&terest is )here "ubli% offi%ials deal )ith "riate or'a&i.atio&s

)hi%h are "ursui&' their "riate i&terests* a&d )here a&# de%isio& b# a "ubli% offi%ial o&

allo%atio& of resour%es )ill faour so!e "riate i&terest$ The fields of 'oer&!e&t

%o&tra%ti&' a&d a%uisitio& are t)o areas )here the "ossibilit# of %o&fli%ts of i&terest is hi'h$

CAUSES O4 UNETHICAL BEHAVIOR-

IN?IVI?UAL

• COMPLEIT O, STRATEGIC ISSUES OBSCURES ETHICS

• COMPETITION ,OR SCARCE RESOURCES PO1ERPOSITION

• CON,LICTING LOALTIES

GROUP

• GROUPTHIN 

• PRESENCE O, I?EALOGUES

•  NEGATIVE ORGANIQATIONAL RESPONSE TO ?ISSENT

ETHICS IN PRACTICE-

e&&eth R$ A&dre)s* i& Ethi%s i& Pra%ti%e* %o&te&ds that there are three as"e%ts to ethi%al

 behaiour i& or'a&i.atio&s/ the deelo"!e&t of the i&diidual as a& ethi%al "erso&* the effe%t

of the or'a&i.atio& as a& ethi%al or u&ethi%al e&iro&!e&t* a&d the a%tio&s or "ro%edures

deelo"ed b# the or'a&i.atio& to e&%oura'e ethi%al behaiour a&d dis%oura'e u&ethi%al

 behaiour$

IN4LUENCES ON ETHICAL BEHAVIOR-• PRIOR ?EVELOPMENT O, IN?IVI?UAL AS ETHICAL PERSON$

• THE ORGANIQATION AS AN ETHICAL ENVIRONMENT$

• PROCE?URES THAT ENCOURAGE ETHICAL BEHAVIOR$

Most of a& i&diidual+s ethi%al deelo"!e&t o%%urs before e&teri&' a& or'a&i.atio&$ The

i&flue&%e of fa!il#* %hur%h* %o!!u&it#* a&d s%hool )ill deter!i&e i&diidual alues$ The

or'a&i.atio&* to a lar'e e-te&t* is deali&' )ith i&diiduals )hose alue base has bee&

established$ This !i'ht i!"l# that ethi%al or'a&i.atio&s are those fortu&ate e&ou'h to bri&' i&

ethi%al i&diiduals* )hile u&ethi%al or'a&i.atio&s brou'ht i& u&ethi%al "eo"le$ But it is &ot

that si!"le$ 1hile the i&ter&ali.ed alues of i&diiduals are i!"orta&t* the or'a&i.atio& has a

!a0or i!"a%t o& the behaiour of its !e!bers* a&d %a& hae a "ositie or &e'atie i&flue&%e

o& their alues$ O&e e-a!"le of the deelo"!e&t of ethi%al i&diiduals is the seri%ea%ade!ies$ I& their ad!issio&s "ro%esses* the a%ade!ies atte!"t to 'et i&diiduals of 'ood

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%hara%ter )ith the alues i&te'ral to the !ilitar# "rofessio&$ Ho)eer* the a%ade!ies also

re%o'&i.e that their %ore alues !a# be differe&t tha& those "reale&t i& so%iet#* a&d the#

deote %o&siderable effort to the deelo"!e&t a&d i&ter&ali.atio& of their %ore alues$ As is

eide&t fro! "eriodi% brea%hes of i&te'rit# at the a%ade!ies* e$'$* %heati&' s%a&dals* these

atte!"ts to i&stil %ore alues do &ot al)a#s su%%eed$

There are three ualities i&diiduals !ust "ossess to !a(e ethi%al de%isio&s$ The first is theabilit# to re%o'&i.e ethi%al issues a&d to reaso& throu'h the ethi%al %o&seue&%es of 

de%isio&s$ The abilit# to see se%o&d a&d third order effe%ts* o&e of the ele!e&ts of strate'i%

thi&(i&'* is er# i!"orta&t$ The se%o&d is the abilit# to loo( at alter&atie "oi&ts of ie)*

de%idi&' )hat is ri'ht i& a "arti%ular set of %ir%u!sta&%es$ This is si!ilar to the abilit# to

refra!e$ A&d the third is the abilit# to deal )ith a!bi'uit# a&d u&%ertai&t#5 !a(i&' a de%isio&

o& the best i&for!atio& aailable$

ATTRIBUTES 4OR ETHICAL DECISIONS-

• SEEING SECON?2 AN? THIR?2OR?ER CONSEFUENCES21ARGAMING

ETHICAL CONSEFUENCES O, ?ECISIONS

• SEEING ALTERNATIVE POINTS O, VIE12RE,RAMING

• ?EALING 1ITH AMBIGUIT AN? UNCERTAINT2MAING ?ECISIONS1ITH BEST IN,ORMATION AVAILABLE

As i!"orta&t as these i&diidual %hara%teristi%s are* the i&flue&%e of the or'a&i.atio& is

euall# i!"orta&t$ The ethi%al sta&dards that o&e obseres i& the or'a&i.atio& )ill hae a

si'&ifi%a&t effe%t o& i&diidual behaiour$ Peo"le )ill do )hat the# are re)arded for doi&'

;A&dre)s<$ The or'a&i.atio& has its 'reatest i!"a%t i& the sta&dards it establishes for ethi%al

a&d u&ethi%al %o&du%t i& its for!al re)ard s#ste!s$ I&for!al &or!s also hae a stro&'

i&flue&%e o& i&diiduals+ behaiour as do the a%tio&s of the leaders of the or'a&i.atio&$

Strate'i% leaders !ust u&dersta&d that their a%tio&s* !ore tha& )ords alo&e* )ill deter!i&e

the o"erati&' alues i& the or'a&i.atio&$

The i&flue&%e of the or'a&i.atio&al %o&te-t is u&ders%ored i& 1h# Be Ho&est If Ho&est#

?oes&+t Pa#@ I& this arti%le* Bhide a&d Stee&so& &ote that there ofte& are &o e%o&o!i% or 

other i&%e&ties to e&%oura'e ethi%al behaiour a&d dis%oura'e u&ethi%al behaiour$ The#

%o&te&d that it !ost ofte& is the disho&est i&diidual )ho 'ets ahead* a&d that %ases )here

u&ethi%al behaiour )as "u&ished are far out)ei'hed b# those i& )hi%h there either )ere &o

%o&seue&%es or u&ethi%al behaiour )as re)arded$ The Gordo& Ghe((os of the )orld ;the

u&ethi%al %or"orate e-e%utie "la#ed b# Mi%hael ?ou'las i& the !oie 1all Street< ofte&

'et ahead* be%ause the# rarel# are held to a%%ou&t for their a%tio&s$

1hile these obseratio&s !i'ht lead o&e to a %#&i%al ie) of ethi%s i& or'a&i.atio&s* Bhide

a&d Stee&so& %o!e to a differe&t %o&%lusio&$ The# see roo! for o"ti!is! des"ite the la%( 

of fi&a&%ial 'ai& for ethi%al behaiour* or the abse&%e of &e'atie %o&seue&%es for u&ethi%al

 behaiour$ Their reaso&i&' is based i& the fa%t that so !a&# "eo"le do behae ethi%all#* i&s"ite of the a""are&t la%( of 'ai&$ Ethi%al behaiour !ust be i&tri&si%all# re)ardi&'5 a&d !ost

 "eo"le behae ethi%all# be%ause it+s the ri'ht thi&' to do$ Peo"le are 'uided b# their "erso&al

alue s#ste!s$ The# ofte& %hoose the harder ri'ht i&stead of the easier )ro&' s"e%ifi%all#

 be%ause of their i&tri&si% alues of )hat is ri'ht$

Bhide a&d Stee&so& !a(e this %aeat/

1e should re!e!ber* ho)eer* that this$$$)or(s o&l# as lo&' as !ost of us lie b# a&

ho&ourable !oral %o!"ass$ Si&%e our trust is&+t 'rou&ded i& self2i&terest* it is fra'ile$ A&d*

i&deed* )e all (&o) of or'a&i.atio&s* i&dustries* a&d ee& )hole so%ieties i& )hi%h trust has

'ie& )a# either to a destru%tie free2for2all or to i&fle-ible rules a&d bureau%ra%#$ O&l# our 

i&diidual )ills* our deter!i&atio& to do )hat is ri'ht* )hether or &ot it is "rofitable* sae us

fro! %hoosi&' bet)ee& %haos a&d sta'&atio&$ETHICAL RESPONSES-

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Ethi%al Res"o&ses/ Ho) to I&flue&%e O&e+s Or'a&i.atio&* asserts that or'a&i.atio&

!e!bers hae o&l# three %hoi%es )he& %o&fro&ted )ith u&ethi%al behaiour/ e-it* oi%e* or 

lo#alt#$

E'* is the !ost dire%t res"o&se/ if #ou %a&+t lie )ith behaiour that does &ot !eet #our o)&

ethi%al sta&dards* leae$ Ho)eer* e-it is &ot o&l# a dire%t res"o&se* it is a fi&al o&e* so the

 "erso&al a&d or'a&i.atio&al %o&seue&%es !ust be %o&sidered$ The !ost i!"orta&t "erso&al%o&seue&%es are the %osts$ 1here do #ou 'o fro! there@ 1hat other o"tio&s are aailable@

Ho) !ar(etable are #ou@ Ca& #ou afford the fi&a&%ial loss@

There are s"e%ifi% or'a&i.atio&al %o&seue&%es as )ell$ 1ill the ethi%s of the or'a&i.atio&+s

leaders %ha&'e@ 1ill the# do busi&ess )ith so!eo&e else )ho does&+t hae the hi'h sta&dards

#ou do@ I& leai&'* o&e 'ies u" the abilit# to i&flue&%e the or'a&i.atio& dire%tl#$ 1he&

%o&sideri&' e-it* o&e !ust as(* Could I hae had !ore of a& i!"a%t b# re!ai&i&' i& the

or'a&i.atio& a&d tr#i&' to %ha&'e it fro! )ithi&@

V"*)! . This !ea&s e-"ressi&' dis%o!fort )ith a&d o""ositio& to the obsered u&ethi%al

 behaiour$ To )ho! do #ou oi%e #our ob0e%tio&s@ The obious %hoi%e is #our su"erisor$

But )hat if #our su"erisor %o&do&es the u&ethi%al behaiour* or )orse* is its sour%e@ ou

!a# be 0eo"ardi.i&' #our "ositio&* a&d !a#be #our !e!bershi" i& the or'a&i.atio&$ Ase%o&d %hoi%e is to 'o to se&ior !a&a'e!e&t$ This also has "ote&tial ris($ The se&ior 

leadershi" !a# be %o&do&i&' or ee& dire%ti&' the u&ethi%al behaiour$ This a%tio& !a#

 bri&' #our lo#alt# i&to uestio&$ If so* #our ob0e%tio&s !a# be %oered u" or i'&ored* a&d #ou

!a# e&d u" bei&' for%ed out of the or'a&i.atio&$

O& the other ha&d* it !a# be that the se&ior leadershi" is u&a)are of the u&ethi%al behaiour*

a&d #ou !a# hae i&itiated a& or'a&i.atio&al res"o&se eli!i&ati&' u&ethi%al behaiour a&d

restori&' ethi%al sta&dards$ A third o"tio& is to 'o "ubli%* to e&'a'e i& )histle blo)i&'$

This is also ris(#* be%ause it %a& lead to re"risals )ith &e'atie %o&seue&%es$ The leel of 

ris( de"e&ds o& the %o!!it!e&t of the or'a&i.atio& to hi'h ethi%al sta&dards a&d o& its

)illi&'&ess to e&%oura'e )histle blo)i&' i& its o)& best i&terests$ Ma&# or'a&i.atio&s hae

sho)& %o!!it!e&t to ferreti&' out u&ethi%al i&diiduals a&d !ai&tai&i&' hi'h ethi%al

sta&dards b# establishi&' "ro%edures for a&o&#!ous re"orti&' of ethi%al brea%hes a&d

safe'uards to "rote%t )histleblo)ers$

E-it a&d oi%e !a# be %o!bi&ed$ A& i&diidual resi'&s i& "rotest a&d 'oes "ubli% )ith his or 

her reaso&s for leai&'$ This leaes the i&diidual ul&erable to the label of a& e!"lo#ee )ho

uit before bei&' fired* but it also %a& lead to i&%reased %redibilit# as so!eo&e a%ti&' o&

%o&i%tio& i& s"ite of "erso&al %ost$ E-it %o!bi&ed )ith oi%e is !ost effe%tie if ta(e& b#

so!eo&e at the u""er leels of the or'a&i.atio&$ A& or'a&i.atio& %a& !ore easil# i'&ore the

e-it oi%e of a lo)er leel e!"lo#ee tha& it %a& the resi'&atio& of a strate'i% leader*

follo)ed i!!ediatel# b# a "ress %o&fere&%e$ The )idel# "ubli%i.ed resi'&atio& of for!er 

Preside&t Bush fro! the Natio&al Rifle Asso%iatio& oer )hat he ie)ed as e-tre!e a%tio&sis a& e-a!"le of e-it %o!bi&ed )ith oi%e$ It u&doubtedl# had a !u%h 'reater effe%t o& the

 NRA tha& the resi'&atio& of so!eo&e less )ell (&o)& a&d res"e%ted$ The resi'&atio& of 

Ja!es 1ebb as Se%retar# of the Na# is a&other e-a!"le of effe%tie e-it %o!bi&ed )ith

oi%e$

L".a%. . The fi&al res"o&se to u&ethi%al behaiour i& a& or'a&i.atio& is lo#alt#$ This is the

alter&atie to e-it$ I&stead of leai&'* the i&diidual re!ai&s a&d tries to %ha&'e the

or'a&i.atio& fro! )ithi&$ Lo#alt# thus dis%oura'es or dela#s e-it$ Lo#alt# also !a#

dis%oura'e "ubli% oi%e* si&%e bei&' lo#al to the or'a&i.atio& !ea&s tr#i&' to sole "roble!s

fro! )ithi& )ithout %ausi&' "ubli% e!barrass!e&t or da!a'e$ Lo#alt# %a& also e&%oura'e

u&ethi%al behaiour* "arti%ularl# i& or'a&i.atio&s )hi%h "ro!ote lo#alt# aboe all$ These

or'a&i.atio&s dis%oura'e e-it a&d oi%e* a&d basi%all# )a&t their !e!bers to 'o alo&' )ith

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or'a&i.atio&al "ra%ti%es$ A& i&teresti&' uestio& is* Ca& a& i&diidual be lo#al to a&

or'a&i.atio& b# e&'a'i&' i& e-it or oi%e as a res"o&se to u&ethi%al behaiour@

Chalou"(a !ai&tai&s that both e-it a&d oi%e !ust e-ist for %o&ti&ued or'a&i.atio&al

effe%tie&ess$ Additio&all#* a& or'a&i.atio& %a&&ot !ai&tai& hi'h ethi%al sta&dards )ithout

!e%ha&is!s for eli!i&ati&' u&ethi%al behaiour$ Also* lo#alt# is &ot al)a#s a irtue$ Lo#alt#

should be "redi%ated o& the or'a&i.atio&+s ethi%al de!o&stratio& that it is )orth# of lo#alt#$ If the or'a&i.atio& %o&do&es u&ethi%al behaiour* it reliees the i&diidual of a&# res"o&sibilit#

to be lo#al$

BUILDING AN ETHICAL CLIMATE-

Ho) %a& the strate'i% leaders of a& or'a&i.atio& build a& ethi%al %li!ate@ A&dre)s su''ests a

&u!ber of ste"s that foster %or"orate ethi%s$ ,irst are the a%tio&s of the strate'i% leadershi"

a&d the )a# the# deal )ith ethi%al issues$ The "atter& of to" leaders+ behaiour deter!i&es

or'a&i.atio&al alues$ A se%o&d ste" is to !a(e e-"li%it ethi%s "oli%ies$ Ethi%al %odes are o&e

%o!!o& e-a!"le$ The &e-t ste" is to i&%rease a)are&ess of ho) to a""l# those ethi%al %odes$

Trai&i&' o& ho) to deal )ith situatio&s )ith a& ethi%al di!e&sio&* a&d ho) to a&ti%i"ate

situatio&s that i&ole ethi%al %hoi%es* %a& 'o a lo&' )a# to)ard ethi%al i&stitutio&al

 "ra%ti%es$A&other ste" to i&%rease the salie&%e of ethi%s is to e-"a&d the i&for!atio& s#ste! to fo%us o&

areas )here ethi%s !a# %o!e i&to "la#$ &o)i&' )hat a%tuall# is 'oi&' o& i& the

or'a&i.atio& is esse&tial to u&dersta&di&' the ethi%al "ri&%i"les )hi%h 'oer& behaiour$ The

i&for!atio& s#ste! should also su""ort ethi%al behaiour* a&d allo) the strate'i% leader to

(&o) )he& or )here there are "ote&tial ethi%al brea%hes so that %orre%tie a%tio& %a& be

ta(e&$ The real da&'er is that )he& u&ethi%al behaiour is u&&oti%ed* or &ot "u&ished*

!e!bers )ill assu!e it is %o&do&ed b# the or'a&i.atio&+s leadershi"$

ULTIMATEL* THE FUEST ,OR ORGANIQATIONAL TRANS,ORMATION MUST

BEGIN 1ITH A PERSONAL COMMITMENT 1ITHIN EACH IN?IVI?UAL TO

PURSUE MORAL ECELLENCE$

O+BRIEN

E&%oura'i&' leaders to "ursue their o)& !oral deelo"!e&t is %riti%al at hi'her leels

 be%ause strate'i% leaders set the !oral %li!ate for the or'a&i.atio&$ O+Brie& beliees that

!oral deelo"!e&t is ee& !ore i!"orta&t tha& "rofessio&al deelo"!e&t$ Creati&' a

%ulture based o& !oral e-%elle&%e reuires a %o!!it!e&t a!o&' !a&a'ers to e!bod# a&d

deelo" t)o ualities i& their leadershi"/ irtue a&d )isdo!$ Ethi%s is based o& a set of 

!oral a&d ethi%al alues$ These alues !ust be absolute 2 that is* #ou !ust ta(e the!

seriousl# e&ou'h to oerride a&# hu!a& ratio&ali.atio&* )ea(&ess* e'o* or "erso&al faults$

1he& all else fails* #ou )ill al)a#s loo( ba%( to these %ore alues to 'uide #ou$

U&fortu&atel#* life is &ot that eas# a&d there+s al)a#s disa'ree!e&t about )hat alues should

rei'& su"re!e$Lu%(il#* i& the )orld of busi&ess ethi%s* #our e!"lo#er hel"s #ou$ I& a &utshell* their alues

are #our alues ;i& the %o&te-t of )or(<$ our freedo! to %hoose #our o)& ethi%al alues is

so!e)hat li!ited$ Co&sideri&' the rash of %or"orate s%a&dals these da#s* the thou'ht of 

follo)i&' the %or"oratio&+s alues !i'ht &ot be too %o!forti&'$ Proble!/ 1hose or )hat

alues %a& #ou trust@ Loo( behi&d su%%essful* ho&est busi&esses a&d #ou )ill see a set of 

alues that hae stood the test of ti!e$ Thi&( about ho) these alues are %o!!u&i%ated i&

#our or'a&i.atio& a&d )hat #ou %a& do to su""ort the!

H"&!#.-The old ada'e* ho&est# is the best "oli%# is true toda# !ore tha& eer$ It+s &ot 0ust

li" seri%e$ E!"lo#ee !a&uals fro! !ost s%a&dali.ed %or"oratio&s are li(el# to %o&tai&

slo'a&s touti&' its %o!!it!e&t to ho&est#$ Clai!i&' to be ho&est i& a& e!"lo#ee !a&ual is

 "ass$ ou+re either ho&est or &ot$ Ee& if #ou hae&+t 'ot %au'ht #et* !ost "eo"le (&o) )hois a&d )ho is&+t$

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I&!,*.2 I&te'rit# %o&&otes stre&'th a&d stabilit#$ It !ea&s ta(i&' the hi'h road b#

 "ra%ti%i&' the hi'hest ethi%al sta&dards$ ?e!o&strati&' i&te'rit# sho)s %o!"lete&ess a&d

sou&d&ess i& #our %hara%ter a&d i& #our or'a&i.atio&$

R!#("&#*5*%*.2Bla!i&' others* %lai!i&' i%ti!hood* or "assi&' the bu%( !a# sole short2

ter! %rises* but refusal to ta(e res"o&sibilit# erodes res"e%t a&d %ohesio& i& a& or'a&i.atio&$

Ethi%al "eo"le ta(e res"o&sibilit# for their a%tio&s$ Li(e)ise* a%tio&s sho) the abilit# to beres"o&sible both i& the little a&d bi' thi&'s$

7$a%*.-Fualit# should be !ore tha& !a(i&' the best "rodu%t* but should e-te&d to eer#

as"e%t of #our )or($ A "erso& )ho re%o'&i.es ualit# a&d stries for it dail# has a "rofou&d

se&se of self2res"e%t* "ride i& a%%o!"lish!e&t* a&d atte&tie&ess that affe%ts eer#thi&'$

,ro! #our !e!os to #our "rese&tatio&s* eer#thi&' #ou tou%h should %o!!u&i%ate

 "rofessio&alis! a&d ualit#$

T$#- There+s &o free ride$ Trust is hard to ear& a&d ee& harder to 'et ba%( after #ou+e lost

it$ Eer#o&e )ho %o!es i& %o&ta%t )ith #ou or #our %o!"a&# !ust hae trust a&d %o&fide&%e

i& ho) #ou do busi&ess$

R!#(!)-Res"e%t is !ore tha& a feeli&'* but a de!o&stratio& of ho&our* alue* a&d reere&%e

for so!ethi&' or so!eo&e$ 1e res"e%t the la)s* the "eo"le )e )or( )ith* the %o!"a&# a&dits assets* a&d ourseles$

T!a6"-T)o or !ore e!"lo#ees to'ether !a(e a tea!$ It is a busi&ess &e%essit# to )or( 

o"e&l# a&d su""ortiel# i& tea!s )hether for!al or i&for!al$

L!a+!#h*(2Ho) !a&# hard)or(i&'* ho&est e!"lo#ees hae bee& tai&ted a&d led astra# b#

%or"orate leadershi" faili&'s@ Ma&a'ers a&d e-e%uties should u"hold the ethi%al sta&dards

for the e&tire or'a&i.atio&$ A leader is out fro&t "roidi&' a& e-a!"le that others )ill follo)$

C"("a! C**?!&#h*(-A fou&datio&al "ri&%i"le for eer# %o!"a&# should be to "roide a

safe )or("la%e* to "rote%t the e&iro&!e&t* a&d to be%o!e 'ood %iti.e&s i& the %o!!u&it#$

Sha!h"%+! Va%$!-1ithout "rofitabilit#* there is &o %o!"a&#$ Eer# e!"lo#ee should

u&dersta&d ho) he or she fits i&to the "rofitabilit# "i%ture$ Eer#o&e+s %o!!o& 'oal should

 be to build a stro&'* "rofitable %o!"a&# that )ill last$

The real test of these alues %o!es fro! the resulti&' a%tio&$ It ta(es a %o&%erted* %o!"a&#2

)ide effort* be#o&d i&serti&' these )ords i& a& e!"lo#ee !a&ual* to !a(e it ha""e&$

,irst* !a&a'e!e&t !ust lead b# e-a!"le$ Good ethi%s should be !ost &oti%eable at the to"$

Eer# e!"lo#ee !ust be a%%ou&table to the sa!e rules$ Se%o&d* a %or"orate alues or ethi%s

i&itiatie !ust be sold a&d !ar(eted a''ressiel# throu'hout a %o!"a&#$ Eer# foru!

a&d !ediu! should be used to s"read the 'ood !essa'e$ Of %ourse* it )ill o&l# be %redible if 

the %o!"a&# is "ra%ti%i&' )hat it "rea%hes$ Third* trai&i&' !ust be "roided to 'et eer#o&e

o& the sa!e "a'e$ It+s eas# to i'&ore a !otiatio&al s"ee%h or "ass b# a "oster* but s"e&di&'

ti!e lear&i&' about the issues )ill hae a lasti&' i!"a%t$

,ourth* both #ou a&d the %o!"a&# !ust be i& it for the lo&' haul$ The ethi%s ferour shoulde-te&d to the &e-t 'e&eratio& of e!"lo#ees$ The lo&'er it lasts* the !ore i&'rai&ed the

 "ri&%i"les )ill be%o!e$ ?es"ite faili&'s of so!e* there are "le&t# of roo! at the table for 

'ood ethi%s a&d "rofitable busi&ess to reside$ To'ether the# %a& la# the %or&ersto&e for a

se%ure a&d "ros"erous so%iet#$ These te& alues #ou %a& "ut i& the e!"lo#ee !a&ual a&d

!ea& it$