Outcome 4

Ethical Management and Leadership

Leadership

Management• is a function

• in which group of people manage

• business organizations and institutions.

Management

Management includes managing

Men,Money, Machinery, Materials, and Information.

Management

Art of getting things done by people.

Levels of Management

There are 3 levels of management.

1.First Level or Low Level or Front Line

2.Middle Level

3.Top Level

Leadership

• is the ability or quality of an individual

• to guide and direct others

• towards achievement of organizational goals.

Leader• is a person

• who influences, induces, and directs

• his followers.

Manager Vs. LeaderManager

• Manager imposes his order

• through planning, organizing, coordinating, etc.

Leader

• sets the tone, develops the vision, and shapes the behavior

• Through motivating and inspiring people.

Manager Vs. LeaderManager

• uses a formal method.

Leader

• encourages people (uses informal method).

Ethical Leadership / Ethical Management

Managers or leaders are the lens through which the employees view the company.

The leader/manager is the role-model of his team.

Qualities of an ethical leader/manager

• Treats people equally.

• Encourages his team to hold these qualities.

• Influences his team positively.

• Creates ethical work environment.

• Sets the standards for his team members through his behavior.

OOC boss gets 23 years jail term in graft case

• MUSCAT — The Court of First Instance in Muscat yesterday sentenced the CEO of Oman Oil Company (OOC) to 23 years in jail, a fine of RO 8 million and ordered him to be sacked from his post permanently in connection with the Sohar Aromatics case.

• The second accused in the case — who is a former adviser to the ministry of national economy — was awarded 10 years in jail, a fine of RO 4 million and deportation for a life-long after severing his term.

• The third accused — CEO of South Korea’s LGI Corporation — was sentenced to 10 years imprisonment and a fine of RO 4 million as well as deportation for a life-long after serving his jail term. The court also ordered the restoration of $8 million to the public treasury and that the defendants settle the litigation.

• Last December the Public Prosecution accused the CEO of Oman Oil Company with abuse of office, accepting bribes from LGI to facilitate a $1.6 billion pact for construction of the a petrochemical aromatics plant at Sohar industrial port for the Korean firm.

•The second defendant was convicted of taking bribes and the third — Korean national CEO of LGI Corporation — was found guilty of offering bribe to procure the contract.

Juma Al Hinai, the head of the tenders committee

at Petroleum Development Oman (PDO),• A public prosecutor at a Muscat court accused Juma Al

Hinai, the head of the tenders committee at Petroleum Development Oman (PDO), of receiving the bribe from two executives of Galfar Engineering and Contracting, a local firm.

• Hinai denied the charges. Mohammad Ali, managing director of Galfar, and Abdul Majeed Nusha are also on trial on charges of paying the bribe. They denied the accusation.

• The case appears to be part of a wider official probe into graft in the oil industry. At least one other senior executive is being separately investigated, according to a

senior industry official.

Ethical Leader/Manager

Ethical leader/manager is a person

1.who treats and leads his team in ethical ways,

2.takes right decisions, and

3.sets himself as a role model for others.

Characteristics of Ethical Leader

• Dignity and respectfulness

• Justice

• Honesty

• Serving others

• Community building

Honesty

• He should be loyal and honest.

Serving others

• He should serve others.

• He should place his followers’ interest ahead of his interst.

Community building

• Development of community should be a goal of him.

• He should work hard for the community goals.

Ethical Codes (or)Code of Ethics

• are the statements of specific standards, values and actions

• drafted and approved by management.

• are published and distributed to staff.

• Organizations, professionals, or employees should follow these codes.

• A public prosecutor at a Muscat court accused Juma Al Hinai, the head of the tenders committee at Petroleum Development Oman (PDO), of receiving the bribe from two executives of Galfar Engineering and Contracting, a local firm.

• Hinai denied the charges. Mohammad Ali, managing director of Galfar, and Abdul Majeed Nusha are also on trial on charges of paying the bribe. They denied the accusation.

• The case appears to be part of a wider official probe into graft in the oil industry. At least one other senior executive is being separately investigated, according to a senior industry official.

Types of Ethical Codes

1. Code of ethics for organizations (Corporate code of ethics)

2. Professional code of practice (Professional Ethics)

3. Code of conduct for employees (Employees’ ethics)

Ethical Codes

are the statements of

• specific standards,

• values, and

• Actions

drafted and approved by the management.

are published and distributed to the staff in the organizations.

Types of Ethical Codes

1. Corporate code of ethics

2. Professional ethics

3. Employees’ ethics

Ethical decision making

1. Identify relevant facts and issues.

2. Identify parties associated with the problem.

3. List out possible solutions.

4. Evaluate each possible solution.

5. Compare and assess consequences.

6. Decide on a solution.

7. Take action.

8. Evaluate the decision.

1. Identify relevant facts and issues.

2. Identify parties associated with the problem.

3. List out possible solutions.

4. Evaluate advantages & dis advantages each possible solution..

5. Decide on a solution.

Ethical Dilemma

• Moral dilemma, is a situation in which there are two choices to be made, neither of which resolves the situation in an ethically acceptable fashion.

Accepting Gifts or making personal gains is unethical

• Purchase manager may get influenced by the gift and will purchase only from that supplier for the supermarket.

• He may not care about the quality of the product

• Unethical

• Similar to bribe

Keep Confidentiality

• An employee should not share the Confidential information of the bank

• It is the duty of an employee• A bank should never share the account

information of a customer unless a legal issue occurs

• Cashier Aseela has to follow her obligation towards her job

• Personal relationships should not affect the official work.

Personal work should be kept separately

• Personal work should not be done using the company assets

• Software developed by the employee using the company assets should be the property of the company

• Commitment towards the work environment is much important than making profit for personal benefit.

Professional ethics

• Professional ethics of a teacher

• If teacher agrees to one student then what about the other students

• It is unethical for a teacher to be partial with a student

• It is injustice to all other students