People and Organizations

This document discusses the impact of cultural dimensions on organizations and the theories of change management. It explores Hofstede's model and the drivers of change in organizations. The document also provides practical applications of these theories in international business communication and negotiation. Additionally, it discusses the steps and stages of organization development and highlights the changes and development in Argo's, a retail company.

Running head: PEOPLE AND ORGANIZATIONS
People and organizations
Name of the student
Name of the university
Author Note:

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Table of Contents

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Section 1
Hofstede’s Model
The world has become a global village where technology has brought people of different
nationalities much closer together. This implies that people of different cultural inclinations are
now working together more and more, associating and communicating on a daily basis. While
this may be exciting and interesting, and offering an organisation’s customers broader and better
perspectives on learning and life, it may be challenging, frustrating and uncertain. Challenges
emanate from uncertainty on how one should relate to a person of another culture; what one
should say when coming across someone along the corridor first time and thereafter; whether
there are cultural taboos that determine what one should say or do to a person of another culture,
and so on.
With access to people working for the same organisation () in over 40 countries of the world, Dr
Geert Hofstede identified certain distinct cultural dimensions that accounted for differences
between the cultures of different individuals from different countries which organizational
management and employees must handle well in order to peacefully co-exist within the
organisation (). From an analysis of employees at IBM, Hofstede concluded that organisations
are culturally-bounded and identified five workrelated cultural dimensions that have an impact
on work-related cultural values in different countries. These five cultural dimensions regard five
anthropological problem areas that different societies deal with in different ways and determine
the behaviour and relations of employees of different cultural backgrounds in an organisation.
According to (), these dimensions represent different ways different national societies.

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According to the Hofstede website www.geert-hofstede.com, power distance refers to the degree
of existing and acceptable inequality among those employees with and those without power, that
is, the leaders and the led. A high employee power distance is an indication that unequal
distribution of power is acceptable in that society and that those without power clearly
understand their actual place in the system (Hofstede, 2003). On the other hand, if employees’
power distance is low, it implies equitable sharing and dispersion of power, that is, members of
that society view themselves as equals. Nationalities with low power distance means supervisors
and supervisees regard each other as equal and only separated by chance, opportunity, and luck
and so on. They habour such thoughts as “tomorrow it will be me; life is a wheel; what goes
round comes round”. Societies associated with high power distance have these characteristics
(www.geert-hofstede.com): • Big gaps in remuneration, authority and respect; • Centralised
organisations; and • Strong power hierarchies. There is a clear dividing line between managers
and subordinates. Societies associated with low power distance possess the following
characteristics: • Flatter organisations • Equality between leaders and subordinates
Individualism
This refers to the strength of connections people have to members of their community. Hofstede
(2003) argues that a high individualism score indicates a loose connection with people or lack of
interpersonal connection and little sharing of responsibility among members of society.
Socialisation is only with family and a few close friends. There is high value for people’s
freedom, that is, people in this society prefer to be left alone. Members of a society high on
individualism have high enjoyment of challenges and high expectation of rewards for hard

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individual work. In societies low on individualism, nationalities emphasise more on harmony
than honesty and in order to create harmony, people prefer to work with others for the
organisational rather than individual good. Such people prefer closer supervision and interaction
between supervisor and supervisees. There is high preference for lighter individual tasks and
team assignments where team effort is recognised and rewarded.
Uncertainty avoidance
This is the extent society members feel insecure when confronted with the uncertain or the
unknown (www.geert.hofstede.com). High uncertainty avoidance society fears the unknown and
therefore avoid ambiguity where possible. They are governed by rules and order and they seek a
collective ‘truth’. On the other hand, low uncertainty avoidance society enjoys the unknown and
values differences. There are very few rules and people are encouraged to discover their own
truth.
Long Term Orientation
This refers to the extent society is concerned with future benefits versus benefits, that is, what is
in it for us now versus what is in it for us or our children years to come. Society with high long
term orientation regard family as the basis of society. Such society view parents and men as
having more authority than theng people and women. Such members have a strong work ethic
and place high value on education and training. On the other hand, societies with low long term
orientation promote equality, treat others as they would want to be treated and seek self-
actualisation.
Masculinity

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This is the extent society values and maintains traditional male and female roles. High
masculinity means men are tough and are the provider to the family. They are assertive and have
unquestionable authority over women. Low masculinity means roles are blurred, that is, they are
not obvious since men and women perform equal tasks.
The importance of Hofstede’s cultural dimensions Hofstede’s theory of cultural dimensions
exposes the impact of a society’s culture on the values, norms and behaviours of its members and
the theory has been extensively used in many fields as a model for research particularly in the
fields of cross-cultural psychology, international management, and cross-cultural business
communication (www.geerthofstede.nl). He developed his theory through a world-wide survey
of employee values at IBM by examining and observing cultural differences among the
organisation’s employees from all over the world. Hofstede (2003) argues that if not properly
understood, culture is more often a source of conflict than synergy and cultural differences are a
nuisance and often a disaster (www.geert-hofstede.com). He further posits that despite glaring
evidence that people from different cultural backgrounds behave differently, we tend to tend to
pretend that all people are the same. Due to this lack of cultural awareness there is a tendency to
minimize cultural differences, leading to misunderstandings and misinterpretations between
people from different countries. Despite the convergence phenomenon resulting from the global
village culture, cultural differences and diversity are still prevalent and awareness of these
differences is therefore important in order to have respectful crosscultural relations. Awareness
of these cultural differences prepares people for what to expect from associates from different
cultures and how to behave towards them. 2.3 Practical applications of the theory According to
Hofstede (2003), when it comes particularly to international business, promoting cultural

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sensitivity will assist employees to work more effectively and more harmoniously even if they
come from different countries. More specifically, Hofstede’s theory is applicable though the
following in the following: • International communication Wardrobe (2005) argues that
employees in a multicultural organisation are usually professionals from different countries who
interact on a daily basis and cross-cultural communication becomes vital whereby employees
become aware of cultural differences since what may be well acceptable and normal in one
culture may be totally unacceptable and even offensive in a different country. Hofstede’s cultural
dimensions affect all levels in communication, that is, verbal (words and language), non-verbal
(body language, gestures, symbols) and etiquette dos and donts (dress, dining, protocol,
customs), and also written communication (Wardrobe, 2005). • International negotiation
According to LeBaron (2003), understanding of cultural dimensions can increase success in the
negotiation process and reduce frustration and conflicts if properly applied since in international
negotiation communication style, expectation, issue ranking, and goals will change depending on
one’s culture. For example, American negotiators may want to reach an agreement quickly and
sign a contract because time is money, whereas Chinese and Japanese negotiators spend time on
preliminaries (non-business activities) such as small talks, hospitality and drinking coffee and so
on with preferences to protocol and form in order to establish a solid relationship first (LeBaron,
2003). When negotiating in western countries, the aim is to work out a mutual understanding and
agreement (sign a contract) and then shake hands to signal the conclusion of the agreement and
the starting of working together (www.geert-hofstede.com).

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Section 2
Theories of Change and Change Management
Drivers of Change in Organization
This is the key essential driver of the organizational change. Companies which do not
maintain their financial standards or required to reevaluate their objectives and process. When a
new opponent gives an enter in to the market with a new technology which is advanced or with
labor at low cost then the company which had officially enjoyed profits will experience fall in
the share value of their market . A company which as faced a failure to preserve its position in
the competitive presents can experience pressure on its resources and compel to face the second
thought on the cost of capital and deployment of the resources.
Strategic change in the objectives:-
This is the primary driver of the organizational change. When a company changes its center of
attention to a customer oriented service from a product oriented service then new process comes
in the existence to assist this reorientation, which results in the unemployment to the active staff
or processes which are manufacturing.
End of the product development:-
A product reaches of its development life cycle when companies are strained stop its production
to reduce the operating cost which helps them to survive in the existing market. At the end of the
life cycle of the product development many of the companies sell out are combined with its
competitors in the existing market. This makes the company to face the structural changes in its
trade processes to either sustain profitability or concentrate on evolving opportunities.

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New technology:-
New technology can be addresses ad major driver of the organizational change. For an instance
internet dominating on the old style print media companies. The browsing levels of internet is
increasing day by day worldwide, which as forcing companies to acclimatize their active
operations to the changing preferences of the consumers . Companies which ignore to follow the
upcoming trends will experience the fall in share value will compare to its opponents who adapt
the rising technologies to address the demands of their customers.
Fusions and acquisition:-
When companies unite their operations then cost cutting on a significant level and the
reengineering takes place unemployment remodeling to lineup with the objectives of the
management steer the organizational change. Fusion of a fusion of a few companies can create
the large considerable aims to modernize their operations and join existing operation into a
centralized model.
BURECRATIC ORGANIZATION:-
Burecratic organization is a kind of government which is created by the assembly of unelected
workers administrators and managers, who follow rules shaped by the nominated and designated
authorities of the department.
Typical Steps and Stages
Organization Development is an effort planned, organization-wide, and managed from the top, to
increase organization effectiveness and health through planned interventions in the
organization’s ‘processes,’ using behavioral-science knowledge.”

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-Beck hard, “Organization development: Strategies and Models”, Reading, MA: Addison-
Wesley, 1969, p. 9.
“Today’s organizations operate in a rapidly changing environment. Consequently, one of the
most important assets for an organization is the ability to manage change and for people to
remain healthy and authentic.”
It is defined as a continuous process which is implemented by all the organizations. Organization
development makes its people who are only operational into talented to gain better results which
helps in the expansion and increase in its production by various plans to gain returns.
Development in the product range expanse business.
Changes and development of Argo’s:-
Argo’s as experienced changes in the life increasing in the variety of different goods. Because of
the vary traditions in the United Kingdom. Each and every product in the Argo’s catalog or
grouped according tools type for example computer peripherals, jewellary, toys for kids etc.
Argo’s owned some of the brand and rebranded them as their own brand. Customers for made
convenient by introducing new technologies this also helped the company to face the increasing
competition in market. For an instance, customers are made convenient by introducing the self
check machines which helps them to check the availability of the desired products from the bulk
varieties and categories present in the store. Introduction of these type of new technologies not
only made the customer to feel convenient but also it helped to be in the top position in the
competitive market. Argo’s is also attracting the customers by reducing the prices of the product
introducing deals with discounts for the customers to make them feel that they gain something

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profitable from the offers. Introducing of these type of discounts and deals increases the sales of
the company and existence of the company for long terms in the market which is competitive.
Development required for the Argo’s:-
The infrastructure of the company should be improved drastically. Argo’s should update its new
technologies like embedding the two different technologies which made the company unique in
the market for example self checkout machines which are introducing by the Argo’s to provide
quality service tools customers should be embedded with paying machines. This reduces the
queue’s at the cash counters which makes the customers feel comfortable. Introduction of new
products according to the developing generations should be made available in the company for
example multimedia products, automotive products and products with nano technology should be
made available in the Argo’s store. Security inside the store should be increased drastically,
which makes the customer feel safe and secure. Introduction of multinational and multi cultural
products attracts the different kind of customers. Covering the entire region by dividing into
small parts and establishing the stores in according to the divided regions. This makes the Argo’s
company to reach all the customers in the United Kingdom. Availability of online shopping
should be increased.
Step by step process of the analyzing the stakeholder analysis:-
Categorizing stakeholders:-
It is the first step in the stakeholder analysis this stage things about who thes stakeholders are and
all the people who are pretentious by the work and who can influence are have cover on over it,
or show interest in its successful or unsuccessful conclusion.

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Prioritize stakeholder:-
After identifying the stakeholders of company there will be long list of people and organizations
who are influenced by our work. Some of people this people and organizations can have a power
to block it or advance it and some of them may be interested in what we are doing
Understanding the important stakeholder:-
In this stage we need to know more about our stakeholders. It is essential to know about their
view and reactions there project. It is also essential to know how to engage them in the project
and how to communicate with them.
Benefits of Stakeholder Analysis
With the help of the stakeholder analysis a project can identified
 Possible issues which disorders the project
 Methods to minimize the possible negative force and to manage the negative
stakeholders.
 Important people for distributing the information during the execution face
 Benefits of the all the stakeholders who may be affected or affect the project.
 Planning of the communication and strategy of managing the stakeholders during
planning face of the product
 Groups that should get encouragement to take part in various stages of the project.

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 Engaging all the stakeholders throughout the life cycle of the project is a vital key for the
success of the project. Management of the stakeholder expectations and guaranteeing
their active involvement is key essential to project as
 It is necessary for maintenance of the project and completing the project successfully.
 It gives the chance the individuals or groups to articulate their thoughts, problems, and
concerns over the project.
It gives a logic of liability and develops responsibility.
It facilitates effectual threat identification and planning of the response.
It also opens up and outstanding learning opportunity for both the stakeholders and the project
team.
The basic objective of study was to mould the dealings between organizational culture and
change defining the ways in which a privileged knowledge of organizational culture affects the
process of executing change, and identifying the different stages of the change process at which
the communication between organizational culture and change executing methods holds
significance of the functions. Many of the present models and structures of the organization
change admit the pressure of implicit proportion of organizational life at one or more different
stages of the change process. These models replicate contradictory levels of granularity which
respect to the process of completing organizational change and each recognizes typical stages of
change execution. The model and structure of the organizational change in cultural circumstance

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establish in this article was urbanized to reflect different stages in the process of implementing
the change where organizational culture apply differential influence.
Business development driven change:-
Business development potentially consist of everything which is concerned with the excellence
of the business are the organization. Business development planning firstly needs establishment
of the aims for the development of the business and then originating in a strategy for business
development, which would include some or all the following methods of development. The steps
are as follows,
 Trade development
 New product development
 New market development
 Shape of the business organization
 Structure and process development
 Logistics and supply chain development
 Management and communication development
 Strategic development
 Distribution development
 International development

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New product development (NPD):-
NPD is the term which explains the whole process of bringing a new product or service in to the
existence to the market. Marketing according to its nature involve innovative ideas different
functions of the organizations. Innovative ideas are essential for reacting to varying demand by
the market which is targeted and the exerted pressure by the opponents. These changes are
obvious in decision making in all marketing which includes the development of a new product.
New product development process include 8 stages they are idea generation, idea screening,
concept development and testing the concept, business analysis, product development, market
development, market testing and product launch.
Process development:-
Process development is defined as developing a manufacturing process to accommodate
Logistics:-
Logistics is defined as a business planning structure for the management of material, facility,
data and capital flows. It includes the increasingly complicated information, communication and
control systems required in today’s business environment.
SUPPLY CHAIN MANAGEMENT:-
A supply chain is the process of moving goods from the customer order through the raw
materials stage. All organizations have supply chains of varying degrees, depending upon the
size of the organization and the type of product manufactured. These networks obtain supplies
and components, change these materials into finished products and then distribute them to the
customer. Managing the chains of events in this process is what is known as supply chain

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management. Effective management must take into account coordination all the different pieces
of this chain as quickly as possible without losing any of the quality or customer satisfaction.
Acquisitions and disposals:-
General form of the business development is partly subjective, partly scientific with the base of a
thoughts and requirements of the business owners or chief executive officers. There are different
methods and processes to expand the business which accomplish the growth and improvement
and hardly ever is just one of these a single best solution. Business development is also called as
black art i.e. it is difficult to analyze and difficult to apply a replicable process.
Process models:-
Process models of change authorize the series of events which are necessary to effect
organizational change concentrating more on required basic steps of implementation than on
conceptual task required. All process models tolerate homage to lewins1947 classic three stage
model of change, defining the necessary succession through the phases of unfreeze, refreeze and
change. Following process models which outline the series of events which are to be elaborated
to varying degrees upon these necessary basic stages of change in his recent retaliation,
burk2008 highlighted the role of the leadership at each stage adding a prelaunch stage focused on
preparing an organization for the troubles some effects and change
Process models change have been differentiated with respect to the underlying philosophical
perspectives and definitions they symbolize, major underlying statements and types of sense
making that describe each approach. All though the number of categories and labels in each
differentiation scheme varies. There have five different process models have been classified.

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Section 3
HRM Practice
Four major models have been identified on human resource management and all these serve as
many purposes.
1. They provide an analytical framework for studying Human resource management (for
example, situational factors, stakeholders, strategic choice levels, competence)
2. They legitimize certain HRM practices; a key issue here being the distinctiveness of HRM
practices: “It is not the presence of selection or training but a distinctive approach to selection or
training that matters”.
3. They provide a characterization of human resource management that establishes variables and
relationship to be researched.
4. They serve as a heuristic device-something to help us discover and understand the world for
explaining the nature and significance of key HR practices.
The four HRM models are: (i) The Fombrun, (ii) The Harvard, (iii) The Guest, and (iv)
The Warwick.
The Fombrun, Tichy and Devanna Model
Being the first model (dates back to 1984), this emphasizes just four functions and their
interrelatedness. The four functions are: selection, appraisal, development and rewards. These
four constituent components of human resource management and are expected to contribute to
organizational effectiveness.

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The Fombrun model is incomplete as it focuses on only four functions of HRM and ignores all
environmental and contingency factors that impact HR functions.
The Harvard Model
The Harvard model claims to be comprehensive in as much as it seeks to comprise six critical
components of HRM. The dimensions included in the model are: stakeholders, interests,
situational factors, HRM policy choices, HR outcomes, long-term consequences and a feedback
loop through. The outputs flow directly into the organization and the stakeholders

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The Guest Model
Yet another human resource management model was developed by David Guest in 1997 and
claims to be much superior to other models. The details will justify the claim. This model claims
that the HR manager has specific strategies to begin with, which demand certain practices and
when executed, will result in outcomes. These outcomes include behavioral, performance related
and financial rewards.
The model emphasizes the logical sequence of six components: HR strategy, HR practices, HR
outcomes, behavioral outcomes, performance results and financial consequences. Looking
inversely, financial results depend on employee performance, which in turn is the result of action
oriented employee behaviors. Behavioral outcomes are the result of employee commitment,
quality and flexibility, which, in turn are impacted by HR practices. HR practices need to be in
tune with HR strategies which are invariably aligned with organizational strategies.
The claim of the Guest model that it is superior to others is partly justified in the sense that it
clearly maps out the field of HRM and delineates the inputs and outcomes. But the dynamics of
people management are so complex that no model (including the Guest model) can capture them
comprehensively.
The Warwick Model
This model was developed by two researchers, Hendry and Pettigrew of University of Warwick
(hence the name Warwick model). Like other human resource management models, the Warwick
proposition centers around five elements
 Outer context (macro environmental forces)
 Inner context (firm specific or micro environmental forces)
 Business strategy content

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 HRM context
 HRM content
The Warwick model takes cognisance of business strategy and HR practices (as in the
Guest model), the external and internal context (unlike the Guest model) in which these activities
take place, and the process by which such changes take place, including interactions between
changes in both context and content. The strength of the model is that it identifies and classifies
important environmental influences on HRM. It maps the connection between the external and
environmental factors and explores how human resource management adapts to changes in the
context. Obviously, those organizations achieving an alignment between the external and internal
contexts will achieve performance and growth.
HRM and Legislation
HR policies and importance
HR policies are a written description of rights and responsibilities of employers and
employees. There are certain HR policies that are required by law and others that it would be
wise to have. Both should be in written form. If a policy is well developed and clearly written, it
helps communication with employees, clarifies expectations and makes sure that everyone is
treated in a consistent and fair way. These are all important factors for creating a desirable
culture for the organisation, and they minimise the exposure to legal risk.
Organisations introduce HR policies for very different reasons. These can include:
 needing to comply with existing or new legislation, including European directives and
case law
 wishing to develop a more formal and consistent approach to meet their needs as they
grow and develop, for example, on flexible working hours

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 supporting their general management strategy and Vision, Mission and Values
 following the latest developments in effective people management
 dealing with internal change
 keeping up with competitors – for example, policies may be reviewed in order to attract
or retain employees
As well as having the minimum legally required HR policies (see the list below), each
organisation will need policies that are adapted to suit their own purpose and to fit with their
sector, culture and structure.
A small organisation is likely to need just a few HR policies and procedures. As the organisation
grows, or the environment in which it operates alters, the requirement for HR policies will
change. The policies and procedures will need to be reviewed and, perhaps, new ones introduced.
It is important to remember that however well the policies and procedures are written and
communicated, it is the implementation that is crucial for them to be effective.
Policies of Recruit
There are certain legal requirements to fulfil before the can employ anyone. The should
familiarise theself with these because they summarise the main UK laws that affect employment
– from employee basic rights to employers’ liability insurance.
Employing staff for the first time
There are 6 things the need to do when employing staff for the first time.

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1. Decide how much to pay someone – the must pay the employee at least the National
Minimum Wage.
2. Check if someone has the legal right to work in the UK. The may have to do other
employment checks as well.
3. Apply for a DBS check (formerly known as a CRB check) if the work in a field that
requires one, eg with vulnerable people or security.
4. Get employment insurance – the need employers’ liability insurance as soon as the
become an employer.
5. Send details of the job (including terms and conditions) in writing to the employee. The
need to give the employee a written statement of employment if the is employing
someone for more than 1 month.
6. Tell HM Revenue and Customs (HMRC) by registering as an employer – the can do this
up to 4 weeks before the pay the new staff.
Human resource polices need
Depending on the size of the organisation, the will need to comply with the minimal legal
requirements – for example, a written health and safety policy is required for any organisation
with five or more employees.
Currently, the are legally required to have policies on;
 Bullying and harassment
 Discipline/dismissal and grievance (this must be in writing)
 Equality and diversity

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 Health and Safety (if the have more than five employees; in writing)
 Maternity / paternity / adoption
 Pay
 Redundancy
 Smoking, drugs and alcohol
 Whistleblowing / protected disclosure
 Working time and time off
 Data Protection Act 2018 (1998) and General Data Protection Resolution 2018
Depending on the size and business, it is good practice to have other written HR policies in
place; for example, a policy on the use of company facilities (email, internet and phone use).
Having clear policies and procedures means that everyone knows how to ‘behave’ and what to
expect. This means that there should be fewer problems with and between employees, and the
team will work more effectively.
Additional policies the might consider having (which are not legal requirements) include:
 Confidentiality of information
 Patents and copyrights
 Rewards, benefits and expenses
 Right to search
 Use of company facilities (phone, email, internet, etc.)
 Training and development
 Working for another employer

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Writing of HR policies
The can either approach a reputable HR companyfor one-off support with writing the policies.
There are also a number of other sources of information – some organisations make their policy
manuals available on the Internet. These are a good starting point, but the reliability of the source
(country of origin, date of production, size of organisation, culture, etc) should be assessed.
Many commercial organisations offer ready-made solutions, usually for a fee, which can be
tailored to suit the. But again, check the reliability of the source.
The main things to consider are:
1. What policies the are legally required to have in place
2. What additional policies suit the specific needs of the business
It is important for policies to be:
 linked to business strategy, with a definite purpose for their creation
 complementary – working together to reinforce the company image and values
 flexible – able to adapt to changes in strategy and direction
 open and transparent
 suited in tone to the culture of the organisation
 developed through the involvement of employees and interested stakeholders (for
example, trade
 unions)
 communicated to all employees
 easily understood, user-friendly, written in plain English and containing no jargon

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 accessible – in a format employees will use
 practical and enforceable – with logical implementation
 supported by managers
It should be clear who is responsible for answering queries about the content and who is
responsible for updating and reviewing them.
Six stages of producing and reviewing HR policies
The six stages of producing and reviewing HR policies are as follows:
1. Collect information and consider the options
2. Develop policies to suit the particular organisation
3. Communicate the policies to employees
4. Provide any necessary training
5. Implement the policies
6. Review the policies regularly to make sure they are being used correctly and not
damaging the business
HR policy communication
Having the right policies and procedures in place is vital but they will not work properly unless
they are introduced and used in the right spirit. Employees should be aware that the policies
exist. Discuss them in the induction process with a new staff member and make sure they have
access to the policies.

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If the have to change a policy, the must check whether or not the changes will affect any
contracts the have in place. If so, there will be a consultation procedure to follow to get
employee approval of the changes. If the fail to do this, employees may be entitled to sue the for
breach of contract or they may resign and claim for constructive dismissal.
Things to look out for with HR policies
 The presence of workers, under the age of 18, there are stricter rules on breaks and risks.
This also applies to anyone doing work experience with the. Check the regulations!
 Make sure the have contracts, conditions of employment and policies for any part time,
temporary or fixed term employees.
 If the use any temporary agency staff, do not use the same person for any length of time
because legally they can be seen as the employee and will start to accrue employment
rights.
 Check the rights of all employees to work in the UK, take up references and check
qualifications (where applicable) before they start working for the.
 Keep the personnel files confidential and stored securely, making sure they comply with
the Data Protection Act 2018 (1998) and General Data Protection Resolution 2018.

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Section 4
Ethical Leadership
In many ways, ethics may feel like a soft subject, a conversation that can wait when compared
to other more seemingly pressing issues (a process for operations, hiring the right workers,
and meeting company goals). However, putting ethics on the backburner can spell trouble for
any organization. Much like the process of businesses creating the company mission, vision,
and principles; the topic of ethics has to enter the conversation. Ethics is far more than
someone doing the right thing; it is many times tied to legal procedures and policies that if
breached can put an organization in the midst of trouble.
There are five sources of ethical standards:
 Utilitarian
This one is all about balance, and this approach tries to produce the greatest good with the
least amount of harm to those involved. It deals with consequences and practitioners who use
this method are trying to find the best ethical approach for the most people.
 Rights
Leaders who decide to go with a “rights approach” are looking to protect and respect the
rights and morals of anyone who could be impacted by ethical decisions. The intent is for
people to be treated fairly and with dignity and not as a means to an end.
 Fairness
This one touches on the fact that everyone should be treated equally regardless of their
position or influence in a company.

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 Common Good
Leaders should strive to protect the well-being of those around them. This ethical standard
puts a lot of emphasis on relationships, and how compassion for the fellow man should drive
people to do good by others.
 Virtue
A virtue approach requires leaders to base ethical standards on universal virtues such
as honesty, courage, compassion, tolerance, and many others. Principles that are chosen
should cause people to strive to be their better selves and wonder if an inappropriate action
will negatively impact their inherent desire to be kind to others.
1. Regulations in Other Industries
Regulations and standards that other companies have established can be a good starting
point for developing ethical strategies. Leaders should take a look at how they handle
specific issues that have come their way. It might also be helpful to take a look at the mistakes
the leader’s company and other organizations have made and learn from them. Everyone does
not always get it right 100 percent of the time. Therefore, it is essential to see the good and
bad side to become even more informed about a decision that should be made.
2. Decide on a Decision
After consulting others and doing a bit of extra research, it is time for a final decision .
Since the choice will likely impact many it is a good idea to create a proposal of what the
issue is and how leaders plan to work with the team to solve it. If the problem is more
personal and involves harassment of some kind, it is more appropriate to only deal with those

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involved and establish a plan of action to handle that particular situation. However, for
widespread ethical issues that have become a problem in the workplace, it is a good practice
to bring decisions to the team at large.
3. Implement and Evaluate
4. This is where talk meets action. It is easy for people to research and create solutions to a
problem, but when dealing with morality and ethics, it can be challenging to put it into
action finally. No one benefits from a plan that is not put into practice, so at some point,
leaders need to facilitate the implementation of the ethical decision. Also, the application is
not enough. Evaluation allows everyone to see how the approach is working out, and if there
were some unintended consequences leaders did not foresee. Is the problem finally fixed? Did
things get better or worse? Analysis of this issue can help those involved figure out if the
implementation was the appropriate response.
Organizational sustainability is often misunderstood to mean primarily financial
sustainability. That misconception occurs because, when an organization becomes
unsustainable, the symptoms of that problem show up in the finances. However,
organizational sustainability -- or the surviving or even thriving of an organization -- depends
on much more than effectively managing the organization's finances. Just like the
sustainability of individuals and families, there are many complex and dynamic dimensions
that must be sustainable in organizations, as well. However, in an organization, there are some
primary dimensions that, if they are managed well, will ensure the sustainability of the
organization.

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The terms “sustainable” and “sustainability” have become so ubiquitous that it should be easy
to believe that senior management teams have a good understanding of the issue and are well
under way in their efforts to build truly sustainable organizations. Unfortunately, for most
organizations, this is but a superficial first-impression, as the facts around claims of
“improved sustainability” point to quite a different conclusion.
One major problem with the concept of sustainability is that it has become “plastic” – joining
words such as “improved,” “partner,” and “high-quality, and other such terms in the language
of “MBA-ese.” Such words can mean anything, depending on the eye or ear of either the
speaker or the listener.
To examine and arrive at a real understanding of the concept of sustainability, it is best to start
by returning to look at its generally accepted definition – itself something that still needs to be
clarified. This article will attempt to arrive at a definition that accurately describes the truly
sustainable organization.