Assignment Help on Leadership and Managerial procedures
Leadership and managerial procedures are greatly influenced by ethical values, principles and competent decision making. Many organizations fail to attain their desired targets or create a bad reputation among the society or business counterparts, due to its unethical operations. In this essay we will discuss the consequences of poor leadership and unethical managerial practices. Highlighting the significance of leadership, Ethics and Decision making, we will refer the case of Foxconn Technology Group, operating in China. The company is being criticized for its involvement in immoral practices during the organizational procedures.
In the current era of globalization and continuously changing economies, competent leadership plays a major role for the successful organizational operations. Through leadership participation and involvement, there is greater possibility for the organization to develop, implement, and monitor the progress being made in the area of quality and performance improvement (Abiodun, 2010, p.64). Whereas ethic is a set of principles, decisions made in consent of these principles appears to be competent, reliable and aids in the progress of organization in the long run.
Through this essay we will be focusing on the ethical dilemma of Foxconn, analyzing its causes, consequences and how the current situation at Foxconn China City can be redressed. Further, we will analyze the ethical flaws at Foxconn, in compliance with ethical theories of Virtue, Kantianism and Utilitarianism.
Portraying leadership unethical attitude, employees issues will also be discussed. As quoted by Mohapatra & Lokhande (2014) that employees are the most important resource for any company, but they are the ones who are most difficult to manage. Employees are the most essential part of any organization. Competent leaders protecting the rights of their employees take different measures to motivate their employees persuading them to produce their best. A high performance organization operates in a way that brings out the best in people and produces sustainable high performance over time (Kelly, 2012 p.76). Unfortunately, in many cases leaders in desire of more profits either willingly or unwillingly ignoring employees due rights, takes undue advantage of their necessities. Fulfillment of employee needs, wants and expectations results in employee satisfaction and loyalty (Rao, 2011, p.316).
In the last section of conclusion, final analysis on immoral managerial practices and poor governance will be presented. Also measures that the leadership should adopt modifying the organizational culture into ethical culture will be suggested.
As quoted by Sicart (2009) that Ethics can be defined as a system or set of moral values, and the tools for analyzing these values. It is the combination of moral principles that influences an individual’s actions and decision making capabilities. Ethics is about what is beneficial for the individual, society or the persons associated with the individual. In successful business organization, ethics plays a significant role in overall organizational procedures. Generally the decisions made by organizational leaders or their actions are influenced by the organizational culture, and it should be implemented considering the interest of the employees, society and environment. If an organization has shared values and an ethical culture, employees should be highly engaged and motivated because of their trust in others (Ferrell, Fraedrich & Ferrell, 2015, p.199).
Foxconn’s Ethical Dilemma:
Foxconn is a Taiwan based company, having its manufacturing units in different regions across the border. Particularly in China it has the biggest setup of nine factories. With a huge number of workforces, it can be claimed as one of the biggest employer in China. Controversies are common when a significant number of employees are working together in a same factory premises, but such controversies may develop into quarrels or issues of higher level when the management or leadership is the reason behind such controversies. Employees at Foxconn’s Chinese Factories are the victim of their leader’s egotism. They are in a state of agitation due to unjustified decisions made by their leaders.
An ethical dilemma can be defined as a complex or perplexing situation involving human beings requiring a decision or action for which there are no clear, simple or desirable solutions (Grellier & Goerkep, 2007, p.69). The decisions and actions of Foxconn’s leaders in Chinese factories portrays their self interest, whereas the ignorance of employee’s due rights condemned Foxconn of ethical dilemma. Ethical dilemmas often occur because a person’s internal sense of right and wrong conflicts with a societal, cultural, professional, or organizational ethical norm or belief (Larimer, 2004, p.22).
Leadership of any organization with a huge number of employees and engaged in production of highly technical products must portray good governance in managing the internal as well as external challenges. In flatter organizational structures, leaders have a much wider span of control (i.e., they supervise a larger number of employees), and the impact of each leader’s behavior is much greater than in organizations with a great many levels (Jex & Britt, 2014, p.374).
In Chinese Foxconn city, a significant number of Chinese and Taiwanese employees are working together and due to the leader’s poor governance, many issues have been highlighted causing a bad impression on the company’s reputation. It seems like that the company has not formulated any code of conduct; also its management is performing in defiance of international ethical standards, thus creating a base for ethical dilemma. Job destitute employees at Foxconn city are compelled to work 11 – 13 hours without any overtime pay. Ignorance of ethical principles of ethic is clearly portrayed by the management’s attitude. Ethical violations occur when there is a conflict between employer and employee obligations (Reilly, Sirgy & Gorman, 2012, p.8).
Many employees coming from far away areas are provided lodging in the employees residential quarters, thousands of employees are availing the facility of employees quarters. Though all the basic amenities are made available in these quarters but the living standards are very poor and unhygienic, around 8 – 10 persons are forced to live in a single room. Moreover, employees are abided by military style restrictions in these quarters.
Another ethical dilemma occurs due to the bias attitude of the Foxconn leadership at Chinese factories, where local Chinese workers are maltreated by their Taiwanese coworkers. It is a common need of an employee that after his working hours, he should be free from all restrictions and pursue with his own private life. Unfortunately, at Foxconn city the case is opposite, even after the official working hours as the management has full control of their daily life schedule, even the management has interference among the employee’s personal matters.
As quoted by Day (2014) that ethical leaders care about their employees and would thus be more likely to create a positive work environment. But it is totally adverse in case of Foxconn factories in China. As due to the sub-standard working conditions, employees fell prey to different health problems. Many of them develop skin or respiratory problems, while eyesight and hearing abilities are also affected in some employees. Substandard working conditions arise when managers under-invest in working conditions, or pay employees below-market rates, in order to reduce their production costs (Hill & Jones, 2013, p.400).
Even Employees are exposed to hazardous materials without proper training or precautions. Due to unbearable strictness and regulations many employees quit their job. Companies must be able to provide minimum standards for employees, including a fair wage, safe working environment, consideration of health and welfare benefits, and freedom from harassment and discrimination (Mullerat & Brennan, 2011, p.139).
Treating employees in an ethical manner must be the top priority of any leadership. They deserve time-off and casual leaves so that they can perform with more enthusiasm but it is not the same at Foxconn city. Time-off or casual leaves are very rare, even to overcome the work load lunch breaks are also cancelled. Foxconn had also been involved in compelling young internees to work overtime and in night shifts against the company’s policies. In the ethical sense, a leader must respect and serve others; she/he must be fair and must demonstrate behaviors such as honesty and building community (Karadag, 2015, p.12).