Introduction
Organizational strategies may differ from one organization to the next; however, ethical practices are universal. Ethics in Strategic Management is an important issue for most organizations as guided by firm-specific objectives. Ethics are moral principles that direct a person’s or group’s behavior. An organizational code of ethics guides its programs, policies, and business decisions. In addition, the ethical conduct displayed by senior leaders and managers encourages employees to abide by the same standards. Ethics in strategic management is becoming a fundamental issue for most organizations as guided by firm-specific objectives. Ethics is imperative in organizational success, making managers and leaders in organizations to align ethics to various strategic aims in strategic management.
Literature review
Corporate strategy is the design of choices in a company that reveals a company’s goals, objectives and purposes, and the principle policies used to achieve these goals. Other aspects inclusive of a business’s strategy include business ventures that the company hopes to pursue, the kind of organization it aspires to become and the type of contribution it hopes to make to its stakeholders. Strategy involves both formulation and implementation. Strategic management is ever-evolving and encompasses process, content, planning and action. The strategy is at times intentional and at other times, it is tactical for emerging situations. Considerations in strategic management originate from both within and outside the organization. Objectives are one of the most fundamental determinants of an organization, and strategies are formulated to align with a company’s objectives. Some of the external forces that influence a company’s strategy include competition, economic factors and technology. Strategic management integrates all the vital areas of a company which includes finance, marketing, accounting, operations, and human resources. Strategic management is aimed at the value creation for all the stake stakeholders of the organization.
Ethics in strategic management are determined by the amount of responsibility that people feel towards themselves and others. Strategy used to solve conflicts at the workplace is a reflection of an organization’s strategy. An organizational structure is linked to the organization’s ethics, and therefore can be used to determine what the members of an organization define as wrong or right. Tensions in the daily activities sometimes cause obstacles in adhering to ethics, and ethics in strategic management has become an important issue in the society today. Strategic management is perceived as an organization’s rational way for an organization to deal with challenges in the workplace.
A performance review is one of the commonly used measures by organizations to control strategy. A good example is when unit managers are expected to present a report on their performance before the top management. For the top management, this is a good strategy for these managers to measure performance. However, most unit managers admit that the performance reviews give rise to a culture of fear in the organization (Franck, 2012). The top management is oblivious to this fact, while the middle-level managers perceive the review process as a cross-examination. In other instances, the unit managers see the performance review as a way to push them to their best performance to satisfy their admiration for their CEO’s. For a third party, the performance reviews often come off as awkward.
Culture in most organizations as remained adamant to change with the CEO’s receiving awkward treatment from their subordinates. This is despite the fact that most CEO’s are uncomfortable with the respect that comes with the title. Most organizations are getting rid of the top-down management structure, but various factors have caused these changes to be ineffective (Franck, 2012). Most employees want organizations where dialogue is more common and are even taking the bottom floor to enhance this. However, business processes such as how meetings are carried out still indicate that progress is slow, as meetings are still issue driven in most organizations.
Another classic example is how organizations deal with bottom level performers and yet expect top level performers to maintain their good performance levels. The truth of the matter is that leadership in organizations paves the way for the organizational culture. CEO’s are hard on the middle-level managers, and the middle-level managers extend this pressure from the top management to their subordinates. The top management is keen on getting results and is pretty much disinterested as to how these results come about. In turn, poor performers are often laid off, and those who are left are expected to maintain top level performance despite the knowledge that they could be next in line (Franck, 2012). Subordinates are influenced by the behavior of their superiors and are in the need for a leader who can take stands on various issues. Subordinates also prefer a leader who sees things from their perspective and who acknowledges when a mistake has been done, and that it is human for subordinates to make mistakes.
Tension characterizes most organizations. This tension is caused by the rigid demands imposed on the members of the organizations which further leads to resistance to change. While these members are not in opposition to change, they are often anxious about change and the implications of these changes to their careers (Franck, 2012). Individuals also experience personal fears which result from strategies such as performance reviews. Changes such as recruitment of other employees at organization also result in insecurities among employees.
The social constructivist theory argues that the social phenomenon is a creation of human beings which leads to a certain set of social practices (Freeman & Edward, 2010). This is done through three social processes which are internalization, objectification, and externalization. Human beings are responsible for the set of social practices which guide their daily routines, and yet these individuals go through these practices as if they are pre-given and rigid. These constructions are often related to the various meanings that individuals give to events and experiences at their workplace.
The organizational is, however, subject to change, and the interpretation of the various processes at the workplace leads to the development of the organizational culture. This is referred to as the process perspective in which representations, explanations, and interpretations lead to the development of culture. Patterns are associated with behavior which forms implications on people, resources, behavior and aims (Freeman & Edward, 2010). According to this perspective, change is administered from a point of stability. Whatever brings an organization stability, is often adopted as the organization’s culture. This perspective perceives change as an ongoing process.
Discussion
The Sense-making theory is used to study the construction of identities in an organization. The theory discusses how ambiguity and sense making leads to action at organizations. Managers are expected to make both strategic and ethical decision, which are inclusive of otherness and are nonstop. There are three characteristics of identity that are continually exchanged which include self-continuity, personal relations with others and how one treats themselves as the other (Freeman & Edward, 2010). Identity work is often caused by external conditions and is not core. For individuals to maintain their morality there ought to be a balance between their identity, otherness and sameness. Social identity is used by individuals to acquire a sense of belonging with others in the society (Franck, 2012). This is often achieved through the nature of interactions that a person forms with those around them. The former and future self are great considerations for people who are looking to maintain their identity amidst the many demands made on them by their organizations. Sameness is an individual’s strife to maintain a certain level of commonness in their identity despite their roles.
The regulation of one’s identity is often used by organizations to monitor their performance within the organization and outside the organization. The management of the inside elements of an individual is more effective than managing their external conditions. Otherness in ethics dictates that an individual uses three levels to maintain their morality or ethics (Franck, 2012). The individual has to consider whom they wish to become in the future, their intentions with the group and the intended outcomes for the organization. When these three aspects are considered, the individual is able to change and still maintain their core identity, which often results in a good life. Corporate social responsibility is one of the ways through which CEO’s are able to maintain their ethical standards.
Conclusion
In conclusions, ethics and strategic aims are closely intertwined in strategic management. Managers are subjected to performance reviews which are often focused on results. The top management is intolerable to failure and as a result, middle-level managers are forced to come up with strategies to ensure good performance. Managers are forced to lay off low-level performers and in the process, most of these managers lose themselves to their management roles. An effective strategy should, however, consider others, which include their future self, the group as well as the organization. Such a strategy will ensure that the manager is able to assure themselves of a good life and that their self-worth and self-esteem is not lost.
References
Franck, H. (2012). Ethics in Strategic Management. Hanken School of Economics, 1-58.
Freeman, & Edward, R. (2010). Strategic management : a stakeholder approach. Cambridge: Cambridge University Press.
