Management Theory and Practices | Essay
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Added on 2020-03-16
Management Theory and Practices | Essay
Added on 2020-03-16
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Running head: MANAGEMENT THEORY AND PRACTICESManagement Theory and PracticesName of the student:Name of the University:Author note
1MANAGEMENT THEORY AND PRACTICESIntroductionEvery individual on this planet have their own specific moral and ethical imperatives thatcompel them into acting in a specific and unique way. Dilemmas arise when conflict arisesamongst these varied individual opinions. Thus, an ethical dilemma might take place witherinside the kind of the person or among two or more individuals (Lo, 2012). Workplaces aredeemed as being a breeding ground of different ethical dilemmas among individuals as peoplefrom different socio-economic background and principles. Cases of ethical dilemmas happenedbetween the employer and the employees (Banks, 2012). This essay would be looking into thissubject of ethical dilemma in the context of organizations and then identify the existing dilemmain that workplace. Theoretical concepts from managerial ethics would be applied to the situationand the dilemma would be examines critically. Further, these theoretical concepts would beexamined and critically evaluated to see how they have an effect on managerial practices in theorganization. Based on the analysis, recommending steps would be discussed on how leadershipapproaches would be helpful in ensuring in making organizational decisions that are ethical innature. The selected organization in this case is 7-Eleven. 7-Eleven is the biggest conveniencestore chain in the world that has more than 60,000 stores in 18 countries under operations,franchising and licensing. The organization is focused on meeting the requirements ofconvenience-oriented customers by means of providing a wide selection of superior quality andfresh products and services by faster transactions, fair prices, and an environment-friendlyshopping environment (7-Eleven, 2017). However, the company is engaged in unethical conductand exploitation of their employees in Australia. The employees are getting paid half of the fixed$24.50 an hour award rate, at times even less. The 7-Eleven franchisees have even falsifiedreports to show their revenue and there has been instances of systematic non-compliance with the
2MANAGEMENT THEORY AND PRACTICESlocal federal workplace laws. Fairfax Media had published reports on how the company has thecapacity of forking up to $100 million in back pay for more than 2000 former and presentemployees. This scandal with 7-eleven is the biggest incident of wage fraud in the history ofAustralian companies (Ferguson & Danckert, 2016). To discuss the ethical dilemmas inside thisorganization, two theoretical concepts from managerial ethics can be applied - utilitarianism andjustice approach. The utilitarianism approach provides a comparatively direct method of decidingthe ethically correct course of action for any specific situation that one might themselves in. Thejustice approach to ethics says that every individual must be treated equally and fairly. These twoapproaches to managerial ethics would be used to examine the ethical dilemma inside 7-elevencritically and find out their influence on the managerial practices inside it (Shapiro & Stefkovich,2016). DiscussionIt is in the hands of an organization to espouse the highest standards of ethics, however, ifthose are not backed and imposed they are simply appealing looking nice statements. Theheadline news ate 7-eleven in Australia regarding the treatment of franchisees and their staffappalled the common public. For surviving and maintaining their high rate of profits several ofthe 7-eleven franchisees shifted towards the underpayment of staff by a standard of 50%. The TVexpose and press reportspoint out some multiple breaks of corporation law, employmentlegislation, occupational health and safety legislation, and taxation legislation (Terry-Armstrong,2016). Majority of the concentration at present is on those students who have become stuckinside the wages scam. The whole chain of 7-Eleven benefitted from this scam. Their head officeacquired huge amounts of profits, the franchisees were able to reduce their wages bill by up to50%, which is their primary cost under the franchise arrangements, and the students started
3MANAGEMENT THEORY AND PRACTICESreducing reduced payment. Whereas, in some cases there might have been some aspects ofcoercion that is put to use for keeping the students employed and engaged, all of them enteredthe deal voluntarily. Most of the losers in this scam were the people who have relied on theworkings of the law and have carried out their businesses honestly. The people of this groupfaced a major ethical dilemma, either they had to go out of business or they had to bend the lawaccordingly for surviving the completion with a chain that was designed for allowing extensivemalpractice (Ferguson, 2015). The major failing was not in terms of ethics at 7-eleven chain: the corrosion of the ethicalstandards are generally slow and stealthy. The main issue seems to be the different governmentagencies that have the responsibility of enforcing the law. Over many decades governmentdepartments have been consistently disrobed of resources and these days they only have theoption of properly responding to the main concerns – they have a compulsion of assumingethical behavior by majority of the people majority of the time and when they would receiveadvice regarding obvious breaches they would generally ignore the issue if that is considered assomething minor. One example of a regular breach confronted is of the Australian Competitionand ConsumerAct2010. One of the fundamental requirement of the Act is to display honesty inadvertisements, the advertised price of any products or services needs to be the minimum pricefor the customer to pay. Routinely, it has been observed that Google advertisementstargeted atthe market offer extra cheap prices. This strategy is implemented deliberately by some unethicalorganizations as the lower prices gets people to visit their website and inertia has the capacity ofkeeping them there so that they finally end up into making higher payments, more than what isactually necessary for anything equivalent. The practice is so extended, especially in case of
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