bachelor of business administration -------------------------- business management 3a
TRANSCRIPT
Bachelor of Business
Administration--------------------------
Business Management 3A
Chapters
Aims of This ModuleUpon completion of this module, the learner will be able to:
Apply skills in the management of conflict within the
workplace.
Apply the principles of business ethics in the workplace.
Discuss the role of corporate social responsibility in the
business environment.
Display knowledge of industrial relations and its impact on
human resources.
Describe the legislative framework in which a business
operates.
Analyse and evaluate how skills in managing conflict,
business ethics, corporate social responsibility, industrial
relations and the legislative environment enable effective
performance within a business context of transformation.
Section 1 - Introduction
Section 2 – Managing Conflict What is Conflict? “Make no mistake about it. Conflict is an unavoidable
aspect of modern life”
These definitions highlight some important characteristics of conflict:
Goal incompatibility: this takes various forms within organisations.
Interdependency: for there to be conflict, there needs to be some degree of interdependency between parties.
Interaction: for there to be conflict, it needs to be expressed whether overtly or covertly.
Perception: it is possible for conflict to be perceived, and therefore the sources of conflict can be real or imagined.
Functional and Dysfunctional Conflict
Types of Conflict Interpersonal Conflict: This occurs between individuals
within an organisation due to differences in their goals,
values or personality.
Intragroup Conflict: This arises within a department,
team or group, and relates to differences in goals,
values, perspectives and personality.
Intergroup Conflict: This refers to conflict between
groups, teams and departments.
Interorganisational Conflict: This conflict manifests
between two or more organisations.
Sources of Conflict
Goal Incompatibility
Mutually Exclusive Goals where the achievement of one
party’s goal is viewed as threatening to the achievement
of another party’s goal.
Insufficient Shared Resources where an organisation has
a limited number of resources (money, personnel and
equipment) to distribute across the departments, each
of which have different goals.
Different Time Orientations where the goals of different
departments have different time lines.
Structural Design The Nature of the Interdependence, where the nature of
the interdependence determines the potential for
conflict:
◦ Pooled interdependence
◦ Sequential interdependence
◦ Reciprocal interdependence
◦ Lack of Substitutability
◦ Power Differentials
Different Role Expectations Role Ambiguity, which occurs when the tasks and
behaviours expected from an individual holding a
particular role are not clear, as a result of vague
communication about the role.
Role Conflict occurs where expectations by the party
holding the role are different to expectations for other
parties (such as managers, fellow employees, clients,
etc.)
Role Overload occurs when “role expectations exceed a
party’s ability to respond effectively”
Degenerative Climate A degenerative climate is one which encourages
dysfunctional conflict and where win-lose attitudes are
prevalent .
Degenerative climates usually result when there is a
clash between values and expectations of individuals or
groups. Personal Differences
We have a natural affinity with certain people and an
immediate dislike of others. Personal differences often
lead to conflict due to contrasts in values, behaviours
and perspectives
Outcomes of Conflict Functional Conflict
◦ Functional conflict has positive results for an organisation in that it
stimulates innovation and production.
◦ Intragroup Benefits
◦ Intergroup Benefits
Dysfunctional Conflict
◦ Intergroup Problems
◦ Intragroup Problems
Conflict Management Styles Competing Style
This style is assertive and uncooperative, and is evident
where an individual or group seeks to satisfy their own
interests without regard for others
Collaborating Style
This style is assertive and cooperative. Parties to a
conflict seek a mutually beneficial outcome through
cooperation
Conflict Management Styles (cont.)
Avoiding Style This style is unassertive and uncooperative. People who
adopt this style do not pursue the goals of the other party, nor do they pursue their own.
Accommodating Style This style is unassertive and cooperative. People who
adopt this style seek to put the other parties‟ interest over their own
Accommodating Style This style is unassertive and cooperative. People who
adopt this style seek to put the other parties‟ interest over their own
Conflict Management Styles (cont.) Compromising Style
This style falls between assertive and cooperative
behaviours. People who demonstrate a compromising
style are prepared to “give something up” in the
interests of reaching a comprised outcome
Strategies for the Management of Conflict
Strategies for Reducing Dysfunctional Conflict
Superordinate Goals
“One of the most effective ways to reduce conflict is to
determine an overriding goal that requires the
cooperative effort of both conflicting parties…such a
goal must be unattainable by either party alone and of
sufficient importance to supersede all their other goals”
Increased Communication
Increasing communication provides a means to address
and correct misunderstandings, diminish the prevalence
of negative stereotypes and ultimately provide for the
development of positive feelings amongst parties
Strategies for Reducing Dysfunctional Conflict
Problem Solving
Problem solving is a formal means of bringing conflicting
parties together to discuss their differences and craft a
way forward.
Expansion of Resources
Scarce resources are frequently the source of conflict
within organisations. To address this, where possible,
organisations should expand the available resources.
Strategies for Reducing Dysfunctional Conflict
Third Party Judgement
A less time consuming and less expensive approach to
managing conflict than the problem solving strategy is the
strategy of third party judgement.
Changing Organisational Structure
Conflict could be a signal that the organisation’s structure
needs to be changed, bringing about new organisation to
tasks and groupings of staff as well as new levels of
integration.
Avoidance
At times conflicting parties can ignore the dysfunctional
situation in the hope that the conflict will resolve itself.
Section 3 – Business Ethics What are “Ethics”?
Ethics are related to morality. While morality
distinguishes between right and wrong, ethics are the
guidelines as to how morality is achieved. Morality (i.e.
what is right or wrong) is determined by the community
or society in which a business operates.
Therefore, different communities and societies will have
different beliefs as to what is right and wrong. Ethics are
relative to the morals of a particular society.
For example, in Spain abortion is regarded to be “wrong”
and is therefore prohibited, while in Japan, abortion is
considered to be “acceptable” and is frequently utilised
as a means of birth control.
The Importance of Ethics in Business Ethical behaviour is imperative in business, primarily
because unethical behaviour inflicts harm on others. The
pursuit of self interest with no consideration of the
societal interest results in disaster not only for the
individual but also for the entire society as scarce
resources are wasted and destroyed.
Unethical behaviour results in the loss of a manager’s
and/or organisation’s reputation. Customers and other
stakeholders will come to view the organisation with
suspicion and mistrust, which will ultimately be bad for
business.
Resolving Ethical Dilemmas Managers and employees are presented with a range of
ethical dilemmas in the workplace. The ethical dilemmas
could include:
◦ Price fixing
◦ Favouritism
◦ Advancing within the business by „stepping on others‟
◦ Failing to inform employees of key issues in the interests of
protecting management
◦ Failing to address discrimination
◦ Abusing privileges and perks
◦ Producing products and services which are harmful to the
environment
Ethical Models
Utilitarian Model “Utilitarianism means to act in such a way that the
greatest good is achieved for the greatest number…it
guides the decision maker to choose the alternative that
produces the greatest net social good when all the
stakeholders are considered”
When confronted with an ethical dilemma, the utilitarian
model should be used as follows:
◦ Identify alternative courses of action
◦ Determine both the benefits and harms of each alternative course of
action for all groups of stakeholders
◦ Select the alternative which provides for the most benefits and least
harm to the greatest number of stakeholders
Utilitarian Model (cont.) Organisational Goals: “providing the greatest good for
the greatest number in a competitive market system
means focusing on maximizing profits”. Profits should be
kept at an optimal level which ensures the
competitiveness of the organisation.
Efficiency: In pursuing the achievement of organisational
goals, managers and employees need to be efficient.
This entails minimising inputs and maximising outputs.
Conflicts of Interest: It is important that managers and
employees do not have personal interests which conflict
with the achievement of organisational goals.
Moral Rights Model Ethical decisions and behaviours within the moral rights
framework focus on the protection of the fundamental
rights and privileges of individuals. Any decision or
behaviour that violates the rights of an individual is
therefore wrong and unethical
◦ Life and Safety
◦ Truthfulness
◦ Privacy
◦ Freedom of Conscience
◦ Freedom of Speech
◦ Private Property
Justice Model
Distributive Justice Principle
Individuals need to be treated the same, unless they
differ in ways which are relevant to the situation.
Fairness Principle
This principle emphasises that both the organisation and
employees need to fulfill their responsibilities
Natural Duty Principle
This requires that employees and organisations engage
in behaviour as responsible members of society.
How to Improve an Organisation’s Ethical Climate
Role Models
Screen Potential Employees
Ethics Training
Reinforce Ethical Behaviour
Whistle Blowing
Develop a Meaningful Code of Ethics
Gender and Ethics Research shows that while men view moral problems
from a justice perspective, women tend to view them
from a care perspective. So while men focus on “the
rules of the game”, women focus on the dynamics of the
situation and the people involved.
Section 4 – Corporate Social Responsibility
What is “Social Responsibility”?
Nieman & Bennett (2006) expand on their definition and
identify that social responsibility includes:
Improving the quality of life of employees
Creating a social infrastructure which benefits the
community, particularly in terms of development and
educational opportunities
Fulfilling an obligation to create a better social,
ecological and aesthetic environment for the benefit of
employees, their families and the greater community
Levels of Social Responsibility
Social Obligation
Economic responsibility where the organisation is
responsible for maximising profits and providing goods
and services to the market at reasonable prices.
Legal responsibility where the organisation is required to
comply with the regulatory business framework and
labour legislation
Social Reaction
At this level it is argued that an organisation’s
maximisation of profits and provision of goods and
services does not amount to social responsibility. Rather,
focus should be given to societal, environmental and
ecological consequences of an organisation’s actions.
Socially responsible behaviour at this level therefore
involves the organisation’s voluntary participation in
projects that assist in solving societal and environmental
problems
Social Responsiveness
At this level, social responsibility involves the
organisation being proactive, and actively seeking to
prevent or find solutions to societal and environmental
problems.
At this level organisations also engage with the
government about legislation and anticipated social and
environmental problems.
Stakeholders to Whom Business is Responsible
Evaluating Corporate Social Performance
Broad performance criteria: Companies need to broaden
the focus of their organisational performance evaluation
to include a focus on social and environmental
initiatives.
Ethical norms: Companies need to advocate ethical
norms for the organisation, industry and business in
general.
Operating strategy: Organisations need to maintain and
improve current standards of the physical and social
environment.
Evaluating Corporate Social Performance (cont.)
Response to Social Pressure: Companies should
participate actively in solving existing problems.
Legislative and Political Activities: Organisations need to
work with external bodies, such as the government to
promote and facilitate the drafting of legislation and
regulations regarding the protection of the natural and
social environments in which they operate
Section 5 – Industrial Relations What is “Industrial Relations”?
Industrial relations “can be described as a complex
system of individual and collective actions as well as
formal and informal relationships existing between the
state, employers, employees and related institutions
concerning all aspects of the employment relationship”
Who are the Participants in Industrial Relations?
Labour Relations Act (Act 66 of 1995)
Unfair Dismissal
a worker intended to or did take part in or supported a protected strike or protest
a worker refused to do the work of a striking or locked out co-worker, unless his refusal will endanger life or health
a worker is forced to accept a demand a worker intended to or did take action against an
employer by - ◦ exercising a right
◦ taking part in proceedings
a worker is pregnant or intends to be pregnant an employer discriminated against a worker because of
race, gender, sex, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, political opinion, culture, language, marital status or family responsibility
an employer cannot prove - ◦ a worker‟s misconduct or inability
◦ that the employer‟s operational needs are valid
◦ that the dismissal procedure was fair
Promotion of Collective Bargaining and Worker Participation
Collective Agreements
Bargaining Councils
Statutory Councils
Workplace Forums
Dispute Resolution & Labour Peace
CCMA
Labour Court
Labour Appeal Court
Basic Conditions of Employment Act (No 75 of 1997)
The Act regulates the following employment conditions:
Work time and rules
Remuneration and deductions
Termination of employment
Administrative obligations
Prohibition of the employment of children
Variation of basic conditions of employment
Monitoring, enforcement and legal proceedings
Employment Equity Act (Act 55 of 1998)
Key aspects of the Act include:
The beneficiaries of the Act are known as the
“designated group”. The “designated group” includes
African, Indian and Coloured people as well as women
and people with disabilities.
Companies that are required to comply with the Act are
known as “designated employers” A designated
employer has a workforce of 50 employees or more
(RSA, 1998a).
The Act prohibits unfair discrimination and requires that
affirmative action measures be implemented.
Failure to comply with the Employment Equity Act will
result in organisations having to pay considerable fines.
Skills Development Act (Act 97 of 1998) and Skills Development Levies Act (No 9 of 1999)
The key aspects of these Acts include:
Companies pay 1% of their payroll to Sector Education
Training Authorities (also known as Setas) as a Skills
Development Levy (RSA, 1999)
Companies are able to claim back at least a portion of
their Skills Development Levy by engaging in annual
workplace skills planning and implementation.
Companies are able to claim back further money from
their Seta by engaging in strategic skills initiatives.
Occupational Health & Safety Act (No 85 of 1993)
Some of the duties of employers include:
Ensuring that the work systems, plant and equipment is
safe to use
Providing instruction and training on safety issues within
the workplace
Establishing what hazards are associated with a
particular job, and take precautionary measures
Informing all employees of the danger involved in their
work
Occupational Health & Safety Act (No 85 of 1993)
Some of the duties of employees include:
Taking care of one’s own health and safety, as well as
others who may be affected by one’s actions
Carrying out orders relating to health and safety rules
Unemployment Insurance Act (No 63 of 2001)
The Act provides for the following benefits and allowances:
Illness benefits
Maternity benefits
Adoption benefits
Dependant benefits
Unemployment benefits
Section 6 – The Legislative Framework
The Constitution
The Constitution is the highest level of law; it is the
supreme Act of the country and guides all other
legislation.
The Constitution enshrines the rights of all South
Africans and focuses on addressing historical inequalities
Broad Based Black Economic Empowerment Act (No 53 of 2006)
Categories of Black Ownership
BEE Industry Charters
BEE Scorecard A company will be assessed against the above criteria
and receive a score for each category, which will be weighted according to sector guidelines. The total score which an organisation receives will be interpreted as follows: ◦ 0 – 40: the organisation is seen to make a limited contribution to BEE
◦ 40 – 65: the organisation is seen to make an acceptable contribution to BEE
◦ 65 or more: the organisation is seen to make a good contribution to BEE
Broad Based Black Economic Empowerment Act (No 53 of 2006)
Relevance of Other Legislation to the BBBEEE Act
BEE & Competitive Advantage
Given the transformation of South Africa and the
changing consumer base, it is unlikely that organisations
that fail to transform in terms of BEE will be able to
maintain their competitive advantage or even survive.
Research shows that BEE compliant organisations are on
the increase and that they have a definite advantage
over those that are not compliant
Labour Legislation There are various pieces of labour legislation which
facilitate economic and social transformation within and
outside of the workplace.
These include:
The Labour Relations Act
The Basic Conditions of Employment Act
The Occupational Health and Safety Act
The Unemployment Insurance Act
The Employment Equity Act
The Skills Development Act
The Skills Development Levies Act
Other Legislation
Preferential Procurement Policy Framework Act
Competition Act
Promotion of Access to Information Act
Environmental Legislation
Industrial and Trade Regulations
Assignment Guidelines
1.1 Explain what Corporate Social Responsibility is and
evaluate MTN’s efforts in implementing its intended
Corporate Social Responsibility drive across the globe.
(20 Marks)
Essay question i.e. Intro, Body, Conclusion.
Keep all points/arguments in body.
Firstly, explain CSR.
Secondly, apply your definition and model to MTN.
Remember to reference correctly.
Assignment Guidelines
1.2 Discuss the concept of ethics in business and comment
on MTN’s business conduct.
(15 Marks)
Firstly, explain ethics in business.
Secondly, using this, comment on MTN’s business
conduct.
Remember to reference correctly.
Assignment Guidelines
2.1 List any 5 stakeholders of MTN. (5
Marks)
Simply list 5 stakeholders of MTN.
2.2 Discuss 5 criteria that should be considered in
evaluating MTN’s approach to Corporate Social
Responsibility. (10 Marks)
Identify and discuss fully the 5 criteria that SHOULD be
considered when evaluating a firm’s approach to CSR.
Remember to reference correctly.
Assignment Guidelines
Question 3 (20 Marks)
Discuss the rights and obligations of employees, unions,
employers and employer organisations with respect to
freedom of association, organisational rights, strikes and
lockouts.
Essay question.
Focus on the rights and obligations of employees,
unions, employers and employer organisations.
Explain in light of freedom of association, organisational
rights, strikes and lockouts.
Remember to reference correctly.
Assignment Guidelines
Question 4 (15 Marks)
Differentiate between functional and dysfunctional conflict
and show how conflict can be managed.
Firstly, differentiate between functional and
dysfunctional conflict.
Secondly, elaborate on ways conflict can be managed.
Remember to reference correctly.
Assignment Guidelines
Question 5 (15 Marks)
Explain the tripartite system in Labour Relations and
describe the role of each participant in the system.
A tripartite relationship contains three parties.
With regards to Labour Relations, describe fully, the roles
of each of the three parties involved.
Remember to reference correctly.
Email: [email protected]
031 300 7200 – Randhir Ramharack in academics
Examination Guidelines Your exam will be on 9th June 2011.
Your supp will be on 22nd July 2011.
You do not need to reference in the exam.
You will have three hours to answer an closed book
exam out of 100.
Typically, your exam will comprise of short question
attracting anywhere from 5 to 20 marks each.
You should also receive at least one case study
attracting between 15 and 50 marks.
You will receive further guidelines closer to the exam.