Business Organization Questions Essay

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.....ethical dilemma you know of, and how it was dealt with by management.



Recently, Harvard Business School itself was involved in an ethical scandal when it turned out its dean might be involved in a gross case of conflict of interest (Galani, 2016). Conflicts of interest similar to this one at HBS happen often in organizations of all sizes. I was recently made aware of a case in which a local organization experienced an ethical dilemma involving a conflict of interest. One member of the board of directors had previously served on the city council, and still retained strong connections with the local community. Because the company was a real estate development company, the organization's leadership came under considerable pressure for what appeared to be a conflict of interest and corruption -- using the former councilman's political ties for facilitating development projects and accepting additional advice and contracts.



When the media broke the story, the organization had to contend with the additional public relations storm. The public relations department was unhappy about the situation and asked that senior management consider severing ties with the board member. Some members of senior management agreed with the public relations department head, but others did not. Eventually, the manager decided to let the former councilman off the board of directors but it turned out to be traumatic for the company in general. The former councilman's connections with the city council actually were facilitating company contracts, making the permit process easier than it should have been. It took the company a long time to recover and to adjust to a new time scale for their projects. After about a year, the company adjusted, and public relations department ensured that the loss of reputation was minimal. Conflicts of interest can be seriously damaging to the long-term reputation of the organization, which is what Galani (2016) discusses in an analysis of the current ethical dilemma in the Harvard Business School.



References



Galani, U. (2016). Harvard's business dean faces own ethical dilemma. Reuters. Retrieved online: http://www.reuters.com/article/us-tata-group-harvard-business-school-br-idUSKBN13C1ZP



Mosely, D.C., Mosely, D.C. & Pietri, P.H. (2015). Supervisory Management: The art of Inspiring, Empowering, and Developing People (9th edition) Cengage.



2. Discuss an example of how empowerment can help an organization, and an example of how "not empowering" a subordinate can also be appropriate.

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Empowerment is a strategy used by transformational leaders. However, empowerment is not always possible or even beneficial. As Goldsmith (2010) points out, "it isn't possible for a leader to 'empower' someone to be accountable and make good decisions," (p. 1). Empowerment happens over time, creating an organizational culture that supports its employees, refrains from micromanagement, and offers a combination of role clarity and flexibility that refrains from limiting the scope of each person's contributions to the organization. When employees are empowered, they can make decisions that fit in with the big picture of the organization, or at least the big picture of its department's goals.



One example of how empowerment can help an organization is when the organization is facing external pressures and strains. Forced to change or adapt to the situation, the organization can suddenly be thrust in to a position of turmoil in which it faces difficult decisions regarding the structure or culture of the company. In a situation like this, empowerment means entrusting the responsibility to manage successful change to each department or team. An empowerment strategy will "include the team in decision-making," so that decisions are multilateral and made with respect to multiple points-of-view and opinions ("How Successful Leaders Use Empowerment to Build Trust and Excellence," n.d.). Moreover, empowerment means listening to suggestions from all employees, and not just those in a supervisory role. Many employees might feel that they are not being listened to or that their opinions are not validated or valued. When employees are invited to participate in the decision-making process, their backgrounds, worldviews, and technical skills can contribute to the ongoing success of the organization.



One example of how "not empowering" a subordinate can be appropriate is in a situation where strong and decisive leadership is required immediately. For example, if the decision needs to be made immediately, the supervisor needs to take control and act: "empowering employees can slow down important processes, particularly during times of major change or instability," (Hamlin, n.d.). Also, empowerment of subordinates means necessarily broadening one's perspective and views -- which can create a situation in which competing value systems interfere with the decision-making process.


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