2. OUTLINE
The Rational Organization
Employee’s Obligations to Firm
The Firms Duties to the Employee
The Political Organization
Employee Rights
Organizational Policies
3. RATIONAL ORGANIZATION
A structure formal relationship design to achieve
some goals with maximum efficiency
Formal Hierarchies Of Authority
Operating layer
Middle management
Top management
4. ORGANIZATIONAL CHART
BOARD OF DIRECTORS
PRESIDENT
V.P RESEARCH V.P MANUFACTURING V.P MARKETING
PLANT PLANT PLANT
MANAGER MANAGER MANAGER
FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN
5. EMPLOYEE’S OBLIGATIONS TO THE FIRM
work towards the goal of the firm
obedience to superiors
avoidance of activities which
might be harmful to firm
Law of Agency : specifies the legal duties of
employees toward their employers
6. CONFLICT OF INTEREST
Occurs when an employee in company is carrying out
a task in which the he has a personal interest rather
then interest of the firm
7. TYPES OF CONFLICT OF INTEREST
Objective Conflict of Interest
Subjective Conflict of Interest
Potential Conflict of Interest
Actual Conflict of Interest
Apparent Conflict of Interest
8. COMMERCIAL BRIBES & EXTORTION
Bribe: When consideration given to employee to get
favor
Extortion: When the
employee demands
consideration to give favor
Gifts: When consideration given to employee without
expecting any favor.
9. EMPLOYEE THEFT
Computer Theft: Unauthorized
examination, use or copying of
computer information or programs
Trade Secrets: Non Public information
about activities, plans, policies,
records, & technologies of firm
10. FIRMS DUTIES TO ITS EMPLOYEES
The fairness of WAGE
The fairness of employee WORKING CONDITION
11. Continue…
WAGES:
Employees point of view
Employers point of view
Depends:
The firms Capabilities
The Nature of the Job
Local Cost of Living
Three Kind of Criticism To Developing Nation
Too low wage relative to the advance countries
Too low wage relative to the revenue of the company
too low relative to what the company need
12. Continue…
Response To The Wages:
Differ in the countries
Retail price should not be basis for setting the wage
Need of families influence the wage level
WORKING CONDITION
1. Health and safety
Studying and eliminating job risks
Compensating for Risk
Informing workers of known risk
Insuring workers against unknown risk
14. POLITICAL ORGANIZATION
Political Model
Competing powers
Clustered powerful relationship
Informal lines of influences
Cross-cross Communication channel
Goals are not given by rightful authority
15. POLITICAL MODEL OF ORGANIZATION
BOARD OF DIRECTORS
PRESIDENT
V.P RESEARCH V.P MANUFACTURING V.P MARKETING
PLANT PLANT PLANT
MANAGER MANAGER MANAGER
FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN FOREMAN
16. EMPLOYEE RIGHTS
Just as the power of government should respect the
civil rights of citizens, so the power of managers
must respect the moral rights of government.
Moral rights of employees are;
The right to privacy
The right to consent
The right to freedom of speech
17. RIGHT TO PRIVACY
It can be defined as the right people have to
determine what, to whom, and how much
information about themselves shall be disclosed to
others.
There are two types of Privacy;
Psychological privacy
Physical privacy
18. RELEVANCE
Employee have the right to know the person they are
employing and how is he performing.
The company’s reputation can be badly damaged by
the manager’s private activities or emotional
instability.
19. CONSENT
The employee should have the clear understanding
about the company or he can refuse the job.
Employees should know the culture, values of that
company and so has to follow these rules for the
company.
20. FREEDOM OF CONSCIENCE
An employee, who believe that this action is
wrong, should have right to tell to the internal
management.
Employees should have freedom of conscience, if he
think that this action is morally wrong.
Employee should not be forced to cooperate in
immoral activities.
21. WHISTLE BLOWING
An attempt by a member or former member of an
organization to disclose wrongdoing in or by the
organization
It can be internal or External;
If any wrong action is reported only to those higher
in the organization, it is internal whistle blowing.
if any wrong action is reported outside the
organization, such as, newspapers, government
agencies or any public interest groups, then it is
External whistle blowing.
22. RIGHT TO PARTICIPATE & PARTICIPATORY
MANAGEMENT
Right of individual to participate in decision making
Allowed to freely express criticism, recieve accurate
information about decisions that will affect them.
23. EMPLOYMENT AT WILL
The employer has the right to decide freely who will
work for the buisiness,
Employer has the right to hire, fire or promote
employees of the buisiness.
The employee has no right to criticise or object on
his decision.
24. EMPLOYEE RIGHTS AND PLANT CLOSINGS
Service Economy: This economy consists of
employees which consists largely on providing
services to others.
Examples of this economy is
Banking, restaurant, legal, educational, software
design, fashion design and medical industries.
Manufacturing Economy: An economy in which a
large portion of employees are engaged in work that
is aimed at producing manufactured products.
Examples of this economy is auto or steel industries
25. UNIONS AND THE RIGHT TO ORGANIZE
workers also have the right to establish and run
unions for achievement of their wants.
Right of all workers to be treated as a free and equal
person
26. ORGANIZATIONAL POLITICS
The aim of the organization politics is to advance the
interest of one individual or group.
There are following kind of tactics which affect the
person;
Blaming or attacking others
Controlling information
Developing a base of support for ones ideas
Image building
Ingratiation
Associating with the influential
Forming groups
Creating obligations
27. THE UTILITY OF GOALS
Utilitarian principle requires that managers pursue
those goals that are greatly beneficial for the
organization.
Utilitarianism implies that the individual manager
should avoid harming the organization.
28. THE CARING ORGANIZATION
Better economic performance
Trust flourish between the employees.
Lowers the costs of running an organization
Reduces cost of disciplinary actions
Creates customer value for the customers
29. CASE STUDY
GAP is a chain of retail stores have contract with
some 3000 supplier factories.
30. Paul Pressler president and chief executive officer of
gap inc, looked over draft of company’s forthcoming
social responsibility report 2004, described the
problems faced by the labor
31. The lawsuit had been filled on behalf of workers on jan
1991.Acc to lawsuit:
Saipan factories violated the human rights of their
workers
Label their clothes as MADE IN U.S.A
32. IN 1995 the New Times columnist reported on a factory in
EL Salvador that made clothes for gap. She said Judith
vireo is an 18 year old at a maquiladora plant. she was paid
56 cents an hour.
NLC (national labor committee) investigate on it. brought
her to U.S at press confrence.and she describes the reality
to the world that how they were being treated.
33. Gap pointed out it is the responsibility of ,mandarin
plant not there responsibility.
Finally acc to NLC demands they hire the third party
to monitor work conditions in the plant.
34. NlC and other human rights in front of gap stores
everywhere protested. generated enormous negative
publicity for Gap detailing various violations workers being
forced to work overtime without pay
workers not being denied access to bathrooms
use of child labor: 13 year old girls working 13 hour shifts
harassment of workers trying to organize
35. Saipan is the largest of 14 that together make up the
Commonwealth of the Northern Mariana Islands
(CNMI) The Saipan Suit against Gap and 17 other
retailers
36. The suits accusations
workers were hired under false pretenses and
bound to exploitative agreements
ads promised "well-paying jobs in the U.S.A.
had to pay recruitment fees of $5000 to be deducted from
their paychecks
had to agree not to marry, not to participate in political or
religious activities,, not to ask for salary increases
forced to live in "company towns"
overpriced at $200/month
with overcrowded and unsanitary conditions
forced unpaid overtime
37. widespread violations of U.S. health and safety
laws
deceptive advertising of the clothes as "Made in the
USA" which implied to consumers that the
garments were made in compliance with U.S. labor
laws and guidelines
38. Ap's response
added labor code previsions
safe and healthy working and living conditions for
foreign workers are to be maintained
foreign workers must be allowed to seek other
employment & to return home at will
all future contracts with Saipan factories to
require safe healthy working conditions
uphold workers' rights to marry and engage in
political, religious, & union activities
prohibit of recruitment fees
39. Gap commissions a public report to provide full details of
all the problems the company faced, the companies
attempts to deal with the plight or garment workers, and
detailed data on conditions in all factories supplying Gap
admitted "few factories, if any, are in full compliance [with
the Gap labor code] all of the time"
noted that 25-50 percent of its Central American suppliers
had been cited for paying below-minimum wages
made this troubling admission" "that [union rights] abuses
are difficult to discover and prove and even harder to
resolve ... violations of our code's freedom of association
requirement are rarely as straightforward as other
issues, such as health and safety problems"
40. Charles Kernaghan of the NLC's reservations: "In
economies that are paying poverty wages, when
people have no rights and no power, what you end up
monitoring are well-run prisons. Sure, factories will
be cleaned up.
42. Is a company like Gap morally responsible for the
way its suppliers treat their workers?
Yes they are morally responsible .
43. Should companies like Gap attempt to get their
suppliers to pay more than the local industries
standard when it is insufficient to live on ? Should
they pay wages in the third world that are equivalent
to U.S wages?
Yes. Employees must get the wages equivalent to U.S
standards.
44. In your view, is Gap's use of the labels "Made in the
USA" or "Made in Northern Mariana Islands (USA)"
deceptive? Explain.
Yes because it does not met the standards
45. In your view, and in the light of the fact that Gap's
own monitors had not reported the sweatshop
conditions and unpaid overtime in its Saipan
factories that these were in compliance with all
applicable worker health and safety laws, was it
right for Gap to settle the lawsuit? Should Gap
have settled the lawsuit? Explain.
Yes as it gives the bad image of the company
46. in light of the long history of labor problems that
Gap has had to contend with, what
recommendation or recommendations would you
make to Paul Pressler concerning what the
company should now do to deal with these and
future problems? Explain how your
recommendations will effectively solve these
problems for Gap.
47. I think they should have some permanents
employees whose duty is to monitor the activates of
the suppliers company.
48. in your judgment, how effective would you expect
the release of the company's Social Responsibility
Report 2004 to be? From an ethical point of
view, in in light of the company's responsibilities to
its various stakeholders, should the report have
been released?
This report must be released as it gives a view that
company want to bring a correct change and in
future will take serious action against unethical
actions
49. What other issues do you believe this case raises or
what else to you think it shows?
I think this case raises the issue of labor problems , it
shows how company exploit their employees.it also
shows how companies cheat their consumers
