Velasquez
Eighth edition
Chapter 8
Ethics and the Employee
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Learning Objectives
•
8.1 Describe the rational model of the business organization in terms of structure and the
obligations of employee and employer
•
8.2 Analyze the political model of the organization in terms of power and rights and justice
•
8.3 Explain informal power relationships in organizations from an ethical perspective
•
8.4 Evaluate the ethical characteristics of the caring organization
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Introduction: Ethics and the Employee
• Key Questions to be Explored:
– The traditional model of the organization is a rational structure the defines
employee–employer duties.
– The arguably more realistic model of the organization is a political structure defined
by employee rights and organizational politics.
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8.1: The Rational Organization (1 of 2)
• 8.1: Describe the rational model of the business organization in terms of structure and
the obligations of employee and employer
– In the rational model of an organization, employees and employers have
obligations to each other.
– The rational structure is hierarchical:
▪Top management
▪Middle managers
▪Operating layer
• 8.1.1: The Employee’s Obligations to the Employer
– The employee has ethical obligations to the employer.
– The employee has legal duties to the employer.
– Employees can encounter potential or actual, and subjective or objective conflicts
of interests.
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Figure 8.1: Organizational Chart
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Table 8.1: Apparent or Actual Conflict of
Interest
Conflict of Interest Situation
Suppose that I own a construction company that submits bids
for a construction job my employer, wants to have done. Also
I have no actual conflict of
suppose that I have nothing to do with choosing the
Interest.
construction company and have no influence whatsoever over
the choice.
Suppose that my employer chooses the construction company
that I own for a construction job without knowing it is my
company. Also suppose that other construction, companies
I have an apparent conflict of
find out that my company was chosen. Then, those other
Interest.
companies may come to believe that I unfairly influenced my
employer, and so they may come to believe because of this
conflict, the choice of my construction company was unfair.
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8.1: The Rational Organization (2 of 2)
• 8.1.2: The Employer’s Obligations to the Employee
– Employers’ obligations to employees.
– Difficulties with determining fair wages.
– Low wages in developing countries: Pros and Cons.
– Additional ethical obligations employers have to employees.
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8.2: The Political Organization (1 of 4)
• 8.2: Analyze the political model of the organization in terms of power and rights and
justice
– Analyzing the political model of a business organization.
▪Power
▪Rights
▪Justice
• 8.2.1: Where Is the Power?
– The structure of the political model of a business organization.
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Figure 8.2: A Company’s Political
Organization
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8.2: The Political Organization (2 of 4)
• 8.2.2: Employee Rights and the Similarity Argument
– The similarity argument of employee rights.
– Differences between a government and a business organization.
• 8.2.3: Employees’ Right to Privacy
– Employee privacy rights.
– Technology and vulnerable privacy rights.
– Types of privacy.
– Considerations when collecting employee information.
• 8.2.4: Employees’ Right to Freedom of Conscience
– Freedom of conscience and whistleblowing.
– Justifications of external whistleblowing.
– Obligations to become a whistleblower.
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8.2: The Political Organization (3 of 4)
• 8.2.5: Employees’ Right to Participate in Decisions That Affect Them
– Steps toward an organizational democracy in the political model of a business
organization.
– The participative management style process.
• 8.2.6: The Right to Due Process versus Employment at Will
– Work at will.
– Arguments in support of work at will.
– The right to due process opposes the work at will concept.
• 8.2.7: The Right to Work
– The right to work.
– Economic issues.
– Protecting workers’ moral rights.
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8.2: The Political Organization (4 of 4)
• 8.2.8: Employees’ Right to Organize
– Employees’ right to organize.
▪Free and equal.
▪Strike.
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8.3: Informal Power Relationships in
Organizations
• 8.3: Explain informal power relationships in organizations from an ethical perspective
– Informal power relationships.
• 8.3.1: Political Tactics
– Political tactics in a business organization.
• 8.3.2: The Ethical Dilemma of Organizational Politics
– Ethical considerations in organizational politics.
• 8.3.3: Ways to Look at the Ethics of Politics in Organizations
– Ethics of politics in an organization.
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Table 8.2: Different Kinds of Political
Tactics
Political Tactic Description
Minimizing one’s association with plans or results that are
failing or have failed and blaming one’s rivals for the failure or
Blaming or attacking others
“denigrating their accomplishments as unimportant, poorly
timed, sell-serving, or lucky.”
Withholding information detrimental to ones aims or distorting
Information “to create an impression by selective disclosure,
lnnuendo,* or overwhelming the subject with “objective” data
Controlling information
(graphs, formulas, tables, summations) designed to create an
impression of rationality or logic and to obscure important
details harmful to one’s interests.
Developing a base of support Getting others to understand and support one’s ideas before a
for one’s ideas meeting is called.
Creating the appearance of being thoughtful, honest, sensitive,
Image building
on the inside of important activities, well-liked, and confident.
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8.4: The Caring Organization
• 8.4: Evaluate the ethical characteristics of the caring organization
– The caring organization.
• 8.4.1: Characteristics of the Caring Organization
– Characteristics of a caring organization.
• 8.4.2: Key Ethical Issues of the Caring Organization
– Key ethical issues for the caring organization.
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Case Study 8.1: Death at Massey Energy
Company (1 of 2)
– The central ethical issue.
• Company Background
– Massey Energy
• Safety at Upper Big Branch Mine
– Previous citations
• Testimony of Miners and Families
– Testimony from miners and others.
• Criticisms of a Federal Agency
– Criticism of the MSHA.
• The Union Weighs In
– UMWA criticism of Massey Energy.
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Case Study 8.1: Death at Massey Energy
Company (2 of 2)
• Discovering the Cause and Experiencing the Aftermath
– Possible cause of the explosion.
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Case Study 8.2: Who Should Pay?
– Turner Construction, B&C Steel, and Gene Elliot.
• Lawsuit and Reverberations
– Each party’s claims.
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Summary: Ethics and the Employee
– Rational, political, and caring organization models and employee issues.
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