Criticizing Society Strategy - Assignment Example

Strategy criticizing society Profit in relation with motivation culture and strategy Ethical deliberations in the business world cannot reasonably avoid the basic principles of moral justification of business enterprise because moral philosophy is a part of political economy and political philosophy. The belief’s, values and assumptions considered at the macro level with respect to the appropriate role of business in the society offers a salient feature for ethical deliberations at the micro level. Profit or money is a factor that enthuses both business people and individuals and therefore various work cultures and business strategies are laid out to motivate employees to deliver a better performance that results in better profits for the organisation. Contrary to popular assumptions, scholars view business as a moral enterprise from the perspective of a society. Even the classic laissez-faire free market model of Adam Smith is based on the moral philosophy of enlightenment that also emphasised that virtuous interpersonal dealings is a prerequisite for effective economic transaction. However in a more fundamental basis, the justification of self interested pursuit of profits and free markets continues to be the assumption that, everyone benefits from such profits (Lefkowitz, J. 2003 p.280). Motivation is considered as a characteristic inculcated within a person. However, a person at work is a part of an organisational system and therefore employee motivation is an organisation level aspect that influences motivation at work. Some of the organisational practices that impact employee motivation are feedback, evaluation, involvement and reward systems. Further, organisational culture and workplace strategies and policies that include development opportunities, job security and diversity have a role in impacting employee motivation at workplace. Recent research has analysed the significance of employee behaviour in helping the organisation to achieve its strategic objectives. It is generally argued that the strategies of an organisation are achieved through individuals and their behaviour that is aligned along the organisation’s goals enables the organisation to improve the execution of business strategies. Strategically aligned action of individuals is therefore ensured through organisational level systems and factors aimed to motivate such behaviour. For example, incentive systems at organisational level like stock option grants and profit sharing, aids in fostering an employee behaviour that contributes to organisational strategy by relating employee rewards to the performance of the organisation (Kanfer, R., Chen, G. & Pritchard R.D. 2008 p.362). Different types of power are used by the management in an organisation to achieve its goals. Coercive power is exercised on employees through punishment and threats. Employees in such a work environment have negative attitude, are hostile and rejecting. A management uses utilitarian power by offering rewards to employees who follow the directive of the organisation under the notion that it is in the interest of the corporate strategies. Employees working under utilitarian power are calculative and undertake a rational approach to maximise personal gain. Normative power is used in professional organisations to influence members. Members influenced by normative power have a moral and are committed to the goals of the organisation. A management must exercise power in a subtle and sometime in a demanding manner through politicking to succeed and survive. Power holders use various standardised methods to achieve what they aim. Power tactics are used to influence events within a group and between groups. The influence can be either in a positive or negative manner. Positive use of power is expected to give beneficial outcomes (McKenna, E.F. 2000 p.396). The aspiration of an organisation to make ruthless profits may arise from the suggestions of its stakeholders. The opinion of stakeholders that require modification of business objectives for profit maximisation is mostly considered by organisations even when there are environmental concerns to achieve the ultimate objective of achieving success or optimising profits. If the organisation threatens the commitment or loyalty towards an important stakeholder, it may threaten to decrease the profits which are not in the best interests of the organisation. It is noted from instrumental stakeholder approach that stakeholders’ opinions guide organisational values and the organisation itself is unlikely to have inherent moral values except for surpassing the profit motive. From a normative perspective stakeholder theory considers business ethics from a Kantian view. Immanuel Kant emphasised the aspects of good will and duty in relationships and civic matters. Kant’s ethical philosophy also emphasises the aspect of respect for moral duty that people should have mutually in business deals and profit maximisation (Campbell, D.J. & Craig, T. 2005 p.41). Internal integrity is an easy aspect in small organisation by virtue of the size that promotes honest and direct communication. Good information flow keeps the employees informed of financial position that creates a personal obligation among employees to manage risk and work sincerely. This reduces the speculation among employees and managers about the position of the organisation and encourages employees to work together to come out with efficient solutions. In the case of hierarchical organisations, there is a work culture of intimidation that does not encourage effective communication. In large corporations employees are under pressure to keep superiors happy even by concealing truth about poor performance. When truths are uncovered the consequences are not very serious because large profitable corporations have the cash support to write off failures that come from internal dishonesty (Lennick, D. & Kiel, F. 2007 p.191). Executives of large corporations aim and achieve high profits but they can perform in a better manner if they follow the lesson of responsibility practiced by small organisations. This can be achieved by taking lateral assignments that offer extensive experience by deputing high potential managers to work in the small business world. The experience from small enterprises trains them to be disciplined financial mangers and learn to pay more attention, maintain support and time the withdrawal of a struggling business. The managers would then transform into more responsible leader in terms of using company’s resources and stay away from squandering the money of the company (Lennick, D. & Kiel, F. 2007 p.193) In a small enterprise people know each other better and no one is anonymous. It is similar to the interdependent tribal people who are closely knit for the sake of survival. Working in small group creates a culture for altruism. People take interest in workmates and create a bonding to them. There is an interconnection for the success of all and employees tend to help each other. Business judgement without the compassion factor can turn equally damaging as in the case of compassion without business obligations. The set of values in an organisation should be an efficiently interwoven one with moral and business values to avoid downturns and mistakes (Lennick, D. & Kiel, F. 2007 p.194). Free market and relation to motivation, culture and strategy Critics of free markets claim that human motivation is an economic arrangement that result in reinforcing the interests of the participants. People are required in an organisation to act according to the business interests of the management. Altruistic actions like sharing, charity and generosity are discouraged by the market. Free market critics also claim that business person aim to maximise profits and the basic intention of business is money. A business can make money when it competes with other businesses for lowest prices and best bargains. The self interest of a person is evident during wage and contracting negotiations. An employee seeks to optimise utility to gain high wages while the employer aims to maximise the utility of employees by engaging a person to work for lowest possible wage. It is noted that this kind of work environment inevitably paves way for a society of self interested people acting to maximise the utility and benefit of the self without concern for others (Santelli, A.J. & Sikkenga, J. 2002 p.116). Corporate culture is a concept that is catching up the imagination of researchers and executives in a similar manner. Corporate culture is an important tool for executives who are struggling to cope up organisational change. They believe that certain structural or strategic realignment cannot take place if it is not aided by the organisation’s behavioural norms or values. But culture has turned to be an intangible and subtle phenomenon which is pervasive though complex to influence or manage. Managers find that culture cannot be directly manipulated. Culture is understood in an intuitive manner by many. It is defined by Clyde Kluckhohn as a set of traditional and habitual ways of thinking, reacting and feeling that conform to the way a specific society reacts to a problem in a specific circumstance. Organisational culture simultaneously reflects and determines the belief’s, values and attitudes of members that fosters principles that influences the behaviour of employees. Most managers know the culture of their organisation but are not sure how it is transmitted, maintained or influenced. The motivation or reward system specifically is a powerful tool to influence an organisation’s culture. The core objective of culture is to control the attitude and behaviour of members. Reward system is a primary way to achieve control and defines the relationship between the individual members and the organisation by specifying the conditions and terms of exchange. The reward system specifies the contributions anticipated from employees and specifies the values and norms to be conformed in the organisation and the response which the employees can expect based on their performance. The reward system is an unequivocal account of the organisation’s beliefs and values and therefore reward system provides executives a basis for effective management in the long term cultural change which is further linked to corporate strategies (Kerr, J. & Slocum, Jr., J.W. 1987 pp.99-108). Free market economy is criticised for its inability to attain social goals set by the society. Inequality is one such issue that has evolved as a result of an efficient and growing economy. Good income is an incentive for individuals to invest, work and take risks. Organisations that favour free market wish to promote the same to alleviate poverty and objects large scale redistribution which is probable to remove the incentives of growth and thereby reduce the rate of economic growth. Opponents of free market argue that income distribution should be on the basis of need instead of distributing on the basis of the operations of the market. A socialist society envisions an equal society, though there is a socialists’ view that a nominal rate of inequality may be tolerated to offer incentives to substantiate functioning of the economy. The aspiration of the society for greater equality cannot be achieved if the economy is driven by a free market. Free market economy is not a phenomenon that can attain the macroeconomic goals of the society such as full employment, sustainable economic growth, a balance of international payments and stable prices (Winfield, P.W., Bishop, R. & Porter, K p.384). Free markets also pose a threat to the environment due to uncontrolled use of natural resources. If resources are finite, the extent of production that has to meet the demands of the global population may lead the worlds natural resources to reach a scarce position (Anderson, T.L. & Leal, D. 2001 p.1). Fiscal management reform is essential in a free market economy where money has a price and prices are free when resources are freely accessible. A monetary self regulatory order is required to plan costs and benefits in an organisation. Proper management of resources bring value for money for both the businesses and the consumers. The government of each nation must adopt a revised economic order even in a free market economy and put institutional practices and arrangements in place for efficient spending and to save substantial amounts of resources through improved debt and cash management and by enforcing transparent and competitive spending practices ( Le Houérou, P. & World Bank 1996 p.77). It is a known fact that financial markets are the basis for the boom and bust cycle in the economy. However it is not the sole source of economic instability. Capitalist finance in the pursuit for ruthless profits allocates economic resources in an imposing allocation as against planning that has resulted in an economic experiment (Barbera, R.J. 2009 p.55). The failure of markets to implement efficient allocation of resources is a failure to deliver a better outcome which is usually attributed to the impediments and restriction of free operation in the market. This situation is further worsened by deregulation which is considered as a policy solution to reach a better outcome. But deregulation has to be challenged because markets are institutions formed with cultural and social framework. Capitalism is necessarily and always an impure factor (Hodgson, G.M. Itô, M. & Yokokawa, N. 2001 p.2). It may be concluded that profits and free markets are part of the business strategies, culture and motivation in an organisation that aims to maximise the performance to improve the economic conditions in the society. However, ruthless profit making and uncontrolled market operations can pose a threat to the society by way of inequality and the exploitation of resources. Therefore a self regulated management is essential to control the work culture and strategies to bring out sustainable and reasonable economic growth that has considers the society as a whole. Reference Anderson, T.L. & Leal, D. 2001 Free market environmentalism New York: Palgrave Macmillan Barbera, R.J. 2009 The cost of capitalism: understanding market mayhem and stabilizing our economic future New York: McGraw Hill Professional, 2009 Campbell, D.J. & Craig, T. 2005 Organisations and the business environment Massachusetts: Butterworth-Heinemann, 2005 Hodgson, G.M. Itô, M. & Yokokawa, N. 2001 Capitalism in evolution: global contentions--East and West Glos: Edward Elgar Publishing Kanfer, R., Chen, G. & Pritchard R.D. 2008 Work Motivation: Past, Present, and Future New York: CRC Press Kerr, J. & Slocum,Jr,J.W. 1987 Managing Corporate Culture through Reward Systems, Academy of Management Executive Vol.1. No.2 pp.99-108 Available: http://www.jstor.org/pss/4164733 Accessed on April 15,2010. Lefkowitz, J. 2003 Ethics and values in industrial-organizational psychology New Jersey: Routledge  Le Houérou, P. & World Bank 1996 Fiscal management in Russia Washington D.C.: World Bank Publications Lennick, D. & Kiel, F. 2007 Moral Intelligence: Enhancing Business Performance and Leadership Success New Jersey: Wharton School Publishing McKenna, E.F. 2000 Business psychology and organisational behaviour: a students handbook East Sussex: Psychology Press Santelli, A.J. & Sikkenga, J. 2002 The free person and the free economy: a personalist view of market economics Maryland: Lexington Books Winfield, P.W., Bishop, R. & Porter, K. Core management for HR students and practitioners Massachusetts: Elsevier, 2004 Read More