ENGR201 Professional Practice and Responsibility ©
Lesson 4 Transcript: Ethical Theories
Ethical theories.
In this course, we consider three major ethical theories. These theories provide a
means of analyzing choices that humans face by focusing on three aspects of human
behavior.
Any human behavior has three aspects that include agent, action, and result.
Agent focuses on the person who acts. The action focuses on the nature of the action,
while the result focuses on the consequence of the action.
Corresponding to each of these aspects, there are three theories to guide how we can
decide on choices.
Virtue theory focuses on the person making the choice. Deontological theory focuses on
the action itself, while consequentialism focuses on the consequences of inaction.
Click on each of these tabs to examine each of these theories in more detail.
Agent - Virtue Theory
Virtue Theory.
Virtue theory, commonly referred to as Aristotle's Virtue Theory suggests that a better
guide to ethical action is the character of the person performing it.
The theory assumes that all people seek to lead virtuous and balanced lives.
The important question to ask oneself when facing a decision is what kind of a person
will I become if I make this decision?
Will I be virtuous or not in making the decision? Character and virtue of model persons
are the immediate guides to decide what decision to make.
What would this model person do when faced with the same decision? Would they
make the same decision I'm making?
If not, then maybe I should think about the action some more.
Another aspect of virtue theory is that it suggests that virtue is best achieved through
moderation by avoiding extreme choices, following the golden mean, and avoiding
extremes of action is a way to make a virtuous decision.
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Action - Deontological Theory
Deontological Theory.
Deontological Theory focuses on the action itself in order to decide the ethical nature of
an action.
Actions are only as ethical as the nature of the action chosen. The ends or
consequences do not justify the means chosen to accomplish them.
In other words, however good the consequences may be, if the actions are wrong, they
do not justify the action.
The rightness or wrongness of an action arises from following rules, thus if you follow
rules in doing an action then this action is the most ethical action.
Morality is therefore created by following rules. A good example of Deontological Theory
is Immanuel Kant's Duty Ethics.
Immanuel Kant’s Duty Ethics
Duty ethics.
Duty ethics argues that moral actions are those that are governed by following one's
fundamental duties.
In other words, those duties that are generated by one's conscience. The command of
our conscience is a categorical imperative that directs a person to do a particular action
irrespective of what the consequences or other factors are.
The categorical imperative, or the clear command of one's conscience, tells us to do A
no matter what.
Immanuel Kant suggested that we should follow this clear command of our conscience
only if those actions follow universal principles.
For example, if our conscience says not to hurt someone, then that follows the universal
principle not to harm another human being.
A further criterion for any action should be those that increase respect for humanity.
If through our action, we reduce our respect for humanity or for fellow human beings,
then that action is not an ethical action.
There are some problems associated with the conscience focus of this theory. By
focusing on the individual conscience this theory does not develop a notion of a good
for society.
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So, while an action may be good for an individual's conscience, it may conflict with
group interests.
In such a situation duty theory does not provide any useful guides.
Result - Consequentialism
Consequentialism.
Consequentialism is the ethical theory that suggests that the ethical content of an action
depends on the consequences produced by that action.
The focus on the results is referred to in this theory as the hypothetical obligation.
In other words, if you want to decide on an action, you need to look at the hypothetical
results that will arise from the choices faced in the action.
For example, if you want result B, then do A, and only A. This theory also has its share
of problems.
An important problem is that all good or bad consequences of an action may not be
immediately knowable at the time of making the decision.
So how then does one make a choice? The choice is often made without knowing all
the consequences of an action.
Furthermore, there is the difficulty in characterizing what is good or bad in a situation.
An example of consequentialist theory is John Stuart Mill's Utilitarian Theory.
Mill’s Utilitarianism.
Utilitarianism.
Utilitarianism defines an ethical choice as one that produces the maximum benefit for
the greatest number of people.
The maximum benefit is understood here as the number of people affected. The
intensity of benefit in terms of the nature of benefit, trivial versus serious and the
duration of benefit in terms of the time period to see benefit.
A near benefit is more important than a distant benefit. If a decision offers the maximum
benefit, then that decision is the most ethical decision.
A good example of utilitarian thinking is cost-benefit analysis, where a decision is made
by weighing the costs and benefits associated with the decision and choosing the
decision that offers the highest ratio of benefit to cost.
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ENGR201 Professional Practice and Responsibility ©
Lesson 4 Podcast Transcript: Ethical Reasoning
In this podcast, we will discuss the basic aspects of ethical reasoning, such as reflecting
on choices, analyzing choices, and making a choice.
Ethical Reasoning
In this class, in order to reason in an ethical fashion, students will be expected to
become familiar with three dimensions. First, ethical reasoning requires individuals to
reflect on the nature of the choice one has to make. Second, after reflection one is
ready to analyze the nature of the choice that the person faces. Third, after analysis the
person is ready to make the choice. We will now examine each of these steps in detail.
Reflecting on Choices
In order to decide on the ethical nature of the choice we have to make, we need to first
reflect on the nature of the choice we face. In reflecting on choices, a key point to bear
in mind is that ethics provides a means to justify in a rational manner, the actions we
take in a professional (or personal) context. Each action is thus justified as ethical, if it is
made on the basis of some ethical rule. A good example of an ethical action could be —
“be fair in your dealings with others.” Now we can justify this ethical action through the
ethical rule of “treat yourself the same way as others”. Now this ethical rule becomes
valid, because it is based on a general ethical theory. For example, the ethical rule to
“treat yourself the same way as others” is itself based on the general ethical theory
called Deontological Theory. We will talk about Deontological Theory more in this same
module, but this theory basically suggests that an action is only as valid as the means
adopted to accomplish the action. If the means are not good, then the action that comes
about is not ethically good.
Analyzing Choices
As we have mentioned earlier, in the professional setting, an individual has to make
multiple choices. Each choice comes with different courses of action. Some of these
choices have major consequences for your career or the company you work for.
Therefore, it is important to take the time to analyze the choice carefully. From this
analysis, you should be able to present a clear reason to support the decision you
make. It is this clear justification that demonstrates to your colleagues, your company,
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1
and your clients that you have thought through the decision very carefully and then
arrived at the choice. As we will describe later in this module, we will present some
steps to help you analyze the nature of the choice we face.
Making the choice
Once you have analyzed the nature of the choice that you have to make, you are ready
to take the most optimal decision. At this point, it may be appropriate to think about the
action that you are about to take. Are you going to do something heroic? Would you be
committing a crime? Are you ready for the consequences? If you are a bit uneasy, this
might be the time to re-analyze the choice that you face. Now you must be wondering
why it is important to spend so much time on thinking about professional choices. The
answer is that the reputation that you have built up in your career is very fragile. You
want to create a reputation for yourself that is favorable. Any unethical actions could
undermine your reputation and severely damage your career and your personal life.
Thus, it is important to take professional decisions very seriously. Ethical reasoning
provides a means to do just that.
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ENGR201 Professional Practice and Responsibility ©
Lesson 4 Podcast Transcript: Ethical Reasoning
Ethical Analysis
In this podcast, we will discuss the different steps involved in analyzing choices.
Analyzing Choices
As we have mentioned earlier, in the professional setting, an individual has to make
multiple choices. Each choice comes with different courses of action. Some of these
choices have major consequences for your career or the company you work for.
Therefore, it is important to take the time to analyze the choice carefully. From this
analysis, you should be able to present a clear reason to support the decision you
make. It is this clear justification that demonstrates to your colleagues, your company,
and your clients that you have thought through the decision very carefully and then
arrived at the choice. Analyzing a decision requires five steps: Identify the relevant
moral values, clarify key concepts, obtain relevant information, consider a spectrum of
possible actions, and finally make a reasonable decision. We will describe each of these
steps here.
Step 1: Identify relevant moral values
First, identify the moral values that are connected to the dilemma that you face. Values,
such as honesty, social commitment, and responsibility, are common to many
professional dilemmas. Identifying the moral values is the first step to thinking about
what decision is most appropriate in the circumstances.
Step 2: Clarify values for the circumstances
The second step is to clarify the relevant values so that they fit the circumstances of
your decision. For example, if you decide that responsibility to your company is a key
value, you need to clarify what aspect of responsibility is relevant here. Does
responsibility mean thinking of the short-term benefits or of long-term benefits to your
company? Does responsibility mean listening to everything that your immediate
supervisor tells you or does it mean thinking about the benefit to the organization? This
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kind of clarification is very useful, because it makes it clear in your mind what kind of
value you feel is most important in your decision.
Step 3: Obtain relevant information
In this step, it is important to identify the facts associated with the choice you have to
make. It is important to understand how much information you have, what information
needs to collected through research, and what is the nature of uncertainty about the
information you currently have. Once you have thought about these aspects, you can
develop a strategy regarding what information you need to make each decision. If there
is a lot of uncertainty in all the choices you face, then your decision could be to say that
after examining the information, we need to do more research before we can arrive at a
conclusive judgment.
Step 4: Consider all options
After clarifying relevant values and gathering relevant information, we are now ready to
consider the nature of options we face in our decision. Here it is important to consider
all possible options that we can take. It is important to realize that we face an action
spectrum where there are not just two extreme options but many, many possible actions
that a person can make. Some of these actions could be something as simple as more
research is required, or that the provincial regulations need to be changed, or
something as extreme as exposing company’s actions to the media (an action called
whistleblowing). We will discuss whistleblowing later in the semester, but for now we
should bear in mind that multiple actions are possible.
Step 5: Reach a reasonable decision
Finally, after considering all the steps above, we should arrive at a reasonable decision.
The first thing for a decision to be considered reasonable is that the decision should
follow directly from the findings of the previous steps. Another aspect of a reasonable
decision is to adopt a decision that, although not your favorite, is under the conditions
most defendable and justifiable.
At the conclusion of the five steps of analysis, you should be ready with a preferred
decision for action. In addition, you should also have a developed a rationale for
defending the decision in your professional context. Without a proper defense of your
decision, your colleagues are not aware of the ethical reasoning that you undertook to
reach the decision.
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Chapter 9
Principles of Ethics and Justice
l·lr
J:'
Engineers and geoscientists are skilled in solving technical problems; however, many technical problems have ethical consequences. To ensure that
solutions are both technically correct and ethically right, you need a basic
knowledge of ethics and justice. In this chapter, we examine four ethical
theories that, for centuries, have been important guides for solving ethical
problems. These ethical theories do occasionally yield different results, so we
must apply them carefully. In addition, solutions that are ethically right in
theory may sometimes be unfair in practice; to ensure fairness, we must apply
basic principles of justice.
This chapter also discusses professional Codes of Ethics, which are practical guides to professional conduct. The chapter concludes by describing a
general strategy for solving ethical problems that readers usually find informative and useful. These ethics and justice concepts are applied to practical
case studies in later chapters.
9.1
i.
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ETHICS AND PROBLEM SOLVING
Engineers and geoscientists are problem solvers. When faced with a technical
problem, we solve it using well-known theorems and laws from mathematics
and science. It is reassuring to know that basic theories also exist to solve
ethical problems. These ethical theories--developed over the centuries-form
the basis of our laws, regulations, and Codes of Ethics. Let us begin this overview by defining our terms.1
Ethics is one of the four branches of philosophy (according to one system
in common use). Each branch investigates different fundamental questions.
The four branches are:
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•
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Ethics: The study of right and wrong. good and evil, obligations and
rights, justice, and social and political ideals.
Logic: The study of the rules of reasoning. For example, under what
conditions can an argument be proved true?
Epistemology: The study of knowledge Itself. What Is knowledge?
Can we know anything? What can we know? What are the sources of
knowledge?
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PART THREE • PROFESSIONAL ETHICS
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Metaphysics: The study of very basic ideas such as existence, appearance, reality and determinism. Metaphysics asks questions about the most
abstract and basic categories of thought: thing, person, property, relation,
event, space, time, action, possibility/actuality, and appearance versus
reality. 1
Ethics and logic have many practical applications in our lives. Ethics helps
us to distinguish right from wrong, an ability that signalled the dawn of dvilization. History traces ethical writing back over 3,000 years. In fact, many
ethical concepts that we commonly apply today are older than our basic
mathematical and sdentific disciplines (such as calculus, statics, dynamics,
stress analysis, and so forth), which originated in the 17th century. Logic is
also important to engineers and geosctentists, because it is the basis of mathematical derivation. By contrast, epistemology and metaphysics are highly
theoretical and rarely have practical applications.
-----------c
The difficulty of applying the utili•
calculating the "maximum benefit." 1
determine the maximum benefit: the r
sity of the benefit involved, and its dur
duration of the pain avoided). For ex<
legislation: All drivers and passengers er
they buckle up, whereas only a few peo
of injury or death when they are invoh
agree that the intensity and duration of
by relatively few people, is so severe thai
(buckling-up) endured by everyone else
In evaluating benefits, it is importar
•
•
9.2
FOUR IMPORTANT ETHICAL THEORIES
Many prominent philosophers have devoted their lives to developing ethical
theories, and a thorough discussion of their thought would fill a thousand
textbooks. We cannot hope to condense this treasury of philosophical thought
into a single chapter. However, we can discuss four key ethical theories that
apply directly to common ethics problems and are already the basis for many
of our customs, laws, and Codes of Ethics.
These four theories are well known. They differ significantly, and none of
them is universally superior to the others; even so, it is startling to see how
much they are in agreement when applied to certain ethical problems. Each
theory carries the name of its main proponent, even though earlier philosophers contributed to formulating the theories, and some modem philosophers have refined the applications. These theories are
•
•
•
•
Mill's utilitarianism,
Kant's formalism, or duty ethics,
Locke's rights ethics, and
Aristotle's virtue ethics.
Mill's Utilitarianism
John Stuart Mtll (1806-1873) was the major proponent of utilitarianism,
which states that, in any ethical problem, the best solution produces the
maximum benefit for the greatest number of people. 3 This theory is probably
the most common justification for ethical decisions in engineering, geoscience, and, indeed, in modern society. Democratic government itself is a form
of utilitarianism, since democracy permits control over government to benefit the maximum number of people (the majority of voters).
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•
The benefit to oneself must not have
the same benefit to anyone else.
No preference should be given to fr:l
should be awarded without regard
and so on.
Benefits must be distributed equal;
of action, an equal distribution of
distribution.
In summary, utilitarianism states t
ethical problem is the solution that pre
greatest number of people, with the b
people.
Utilitarianism is very valuable in t
tarian theory is easily understood; it
democracy; and in many cases, it is e
tax is easily justified by utilitarian thee
is imposed equally on all residents (as ;
an immense benefit to sodety, becaus
schools, and essential infrastructure. II
individuals would have to provide their
roads, and so forth-a virtually impossil
with the details, such as tax rates and
the maximum benefit to the greatest n1
fairly equally distributed.
Kant's Formalism, or Duty Ethics
The theory of duty ethics, or "formalism,
Kant (1724-1804), who proposed that 1
duty to act in a correct ethical manner. T
or observation that each person's conscical imperative" (or unconditional comrr
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·-- - - --·--very basic ideas such as existence, appearMetaphysics asks questions about the most
of thought: thing, person, property, relation,
?OSSibility/actuallty, and appearance versus
1.
actical applications in our lives. Ethics helps
g, an ability that signalled the dawn of clviriting back over 3,000 years. In fact, many
:mly apply today are older than our basic
iplines (such as calculus, statics, dynamics,
ich originated in the 17th century. Logic is
:eosctentists, because it is the basis of mathepistemology and metaphysics are highly
cal applications.
CHAPTER 9 • Principles of Ethics a~d Justi_c:!
The difficulty of applying the utilitarian principle lies in quantitatively
calculating the "maximum benefit." Mill proposed that three key factors
determine the maximum benefit: the number of people affected, the intensity of the benefit involved, and lts duration (or, conversely, the severity and
duration of the pain avoided). For example, consider automobile seat-belt
legislation: All drivers and passengers endure some brief Inconvenience when
they buckle up, whereas only a few people obtain the benefit (the avoidance
of injury or death when they are involved in accidents). However, we would
agree that the intensity and duration of the distress (injury or death), avoided
by relatively few people, is so severe that it outweighs the brief inconvenience
(buckling-up) endured by everyone else.
In evaluating benefits, it is important that we apply certain criteria:
•
•
'HICAL THEORIES
tVe devoted their lives to developing ethical
ion of their thought would fill a thousand
dense this treasury of philosophical thought
·e can discuss four key ethical theories that
noblems and are already the basis for many
lf Ethics.
lOWD. They differ significantly, and none of
te others; even so, it is startling to see how
n applied to certain ethical problems. Each
in proponent, even though earlier philoso~ the theories, and some modem philosolS. These theories are
cs,
ts the major proponent of utilitarianism,
problem, the best solution produces the
number of people.3 This theory is probably
lr ethical decisions in engineering, geosciety. Democratic government itself is a form
'permits control over government to benpie (the majority of voters).
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•
The benefit to oneself must not have any greater value or importance than
the same benefit to anyone else.
No preference should be given to friends or favoured groups. Ail benefits
should be awarded without regard to race, creed, colour, language, sex,
and so on.
Benefits must be distributed equally. That is, when selecting a course
of action, an equal distribution of benefits is preferable to an unequal
distribution.
In summary, utilitarianism states that the best course of action in an
ethical problem is the solution that produces the maximum benefit for the
greatest number of people, with the benefit equally divided among those
people.
Utilitarianism is very valuable in making ethical dedsions. The utilitarian theory is easily understood; it is consistent with the concept of
democracy; and in many cases, it is easy to apply. For example, income
tax is easily justified by utilitarian theory. A modest hardship (paying tax)
is imposed equally on all residents (as a percentage of income). This yields
an immense benefit to society, because the tax dollars support hospitals,
schools, and essential infrastructure. If we were to eliminate income tax,
individuals would have to proVide their own private health care, schooling,
roads, and so forth-a virtually impossible task. We may sometimes disagree
with the detalls, such as tax rates and exemptions, but income tax yields
the maximum benefit to the greatest number of people, with the hardship
fairly equally distributed.
Kant's Formalism, or Duty Ethics
The theory of duty ethics, or "formalism," is based on the work• of Immanuel
Kant (1724-1804), who proposed that every individual has a fundamental
duty to act in a correct ethical manner. This theory evolved from Kant's belief
or observation that each person's consdence imposes an absolute "categorical imperative" (or unconditional command) on that person to follow those
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THREE • PROFESSIONoU ETHICS
-PART
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CHAP
courses of action that would be acceptable as universal principles for everyone.
For example, everyone has a duty not to tell lies, because if we tolerated lying,
then no promises could be trusted, and our soCiety would be unstable. This
makes sense to most people; almost everyone has this innate sense of duty
and believes that rules of conduct should be rules that everyone should follow.
Kant believed that the most basic good was "good Will" or actively seeking
to follow the categorical imperative of one's conscience. This is in marked
contrast to Mill, who believed that universal happiness was the ultimate
good. In Kant's philosophy, happiness is the result of good wUl: the desire
and intention to do one's duty.
Kant emphasized that it was the intention to do one's duty that was
significant, not the actual results or consequences. One should always do
one's duty, even if the short-term consequences are unpleasant, since this
strengthens one's will. For example, even "white" lies should not be tolerated, since they weaken the resolve to follow one's conscience. The formalist
theory contends that, in solving an ethical dilemma, one has a duty to follow
rules that are generated from the conscience (the categorical imperative) and
that if a person strives to develop a good will, h appiness will result. Many of
the rules that support this universal concept are well known-"Be honest,"
"Be fair," "Do not hurt others," "Keep your promises," "Obey the law," and so
on-and not surprisingly, our happiness would certainly increase if everyone
followed them.
Kant also stated that a consequence of following the categorical imperative would be an increased respect for humanity. Life should always be treated
as an end or goal and never as a means of achieving some other goal. Kant's
formalism would condemn water or air pollution as unethical, along with
any activity that endangered life, regardless of the purpose of the activity. In
Kanti811 formalism, everyone (and each engineer or geoscientist, in particular)
has an individual duty to prevent harm to human life and to consider the
welfare of society to be paramount. As explained later in this chapter, this
axiom from Kant is the first rule in almost every Code of Ethics.
In sum, Kant's formalism emphasizes the importance of following universal rules, the importance of humanity, and the significance of the intention
of an act or rule rather than the actual outcome in a specific case. The only
problem with applying formalism relates to its inflexibility-duties based on
the categorical imperative never have exceptions. Fortunately, we can obtain
further guidance by considering the other ethical theories.
Locke's Rights Ethics
The rights-based ethical theory comes mainly from the thought and writings
of John Locke (1632-1704). 5 Rights-based theory states that every individual
has rights, simply by Virtue of his or her existence. The right to life and the
right to the maximum possible individual Uberty and human dignity are fundamental; all other rights flow out of them. Each individual's rights are basic;
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other people have a duty not to infringe o
Kant's duty-based ethical theory, which cor
the rights-based theory, duties are a conse(
Locke's writings had a powerful impact
1690s; they also motivated the French an
human rights are embedded in the Canadi.
and in the U.S. Constitution. The Chartet
following rights:
•
Fundamental freedom of conscience,
expression, peaceful assembly, and assc
• Democratic rights to vote in an electic
House of Commons or of a legislative <
• Mobility rights to enter, remain in, anc
• Legal rights to life, liberty, and security
be deprived of these rights except in ac
mental Justice (clause 7).
• Equality rights before and under the lav
protection of the law (clause 15).6
We must recognize that everyone ha!
must be respected. However, the Charter
should exist-just the fundamental rights
Parliament and In the courts of law over t:
have evolved from Locke's theory, and the
Some rights are still evolving. And, unfortt
as a cloak for selfishness. Examples of thes
•
Locke's theory suggests that everyone 1
ment that is free from sexual harassrr
right would appear to be common ·cou
it is generally included in provinCial la
smoke-free environment is not in the
provindallaws now guarantee it.
• Many people claim rights that are not
tion. These rights fall into grey areas, a:
For example, it would seem fair to h
Ii.ght to protection from loud noise, th
the Internet, and so on. These rights
Vidual Uberty, and we should respect 1
be proved that denying such rights sat
• Rights-based ethical theory does have
· income tax again. Even today, some peo·
tax, claiming that it infringes on the
property. Others insist that they have a
even though laws make such behaviow
Ir
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CHAPTER 9 • Principles of Ethics ond Justice
ptable as universal principles for everyone.
lt to tell lies, because if we tolerated lying,
and our society would be unstable. Titis
;t everyone has this innate sense of duty
.ould be rules that everyone should follow.
c good was "good will" or actively seeking
e of one's conscience. This is in marked
lt universal happiness was the ultimate
1ess is the result of good will: the desire
other people have a duty not to Infringe on those rights. Titis contrasts with
I<at1t's duty-based ethical theory, which contends that duty Is fundamental; in
the rights-based theory, duties are a consequence of personal rights.
Locke's writings had a powerful impact on British political thought In the
1690s; they also motivated the French and the American revolutions. Basic
human rights are embedded In the Canadian Charter of Rights and Freedoms
and in the U.S. Constitution. The Charter recognizes that everyone has the
following rights:
•
he intention to do one's duty that was
lr consequences. One should always do
consequences are unpleasant, since this
!, even "white" lies should not be tolerto follow one's conscience. The formalist
ethical dilemma, one has a duty to follow
nscience (the categorical imperative) and
good will, happiness will result. Many of
J concept are well .known-"Be honest,"
·p your promises," "Obey the law," and so
ness would certainly increase If everyone
!nee of following the categorical impera,r humanity. Life should always be treated
!ans of achieving some other goal. Kant's
•r air pollution as unethical, along with
gardless of the purpose of the activity. In
tch engineer or geoscientist, in particular)
1arm to human life and to consider the
. As explained later in this chapter, this
llmost every Code of Ethics.
.asizes the importance of following uninity, and the significance of the intention
ual outcome in a specific case. The only
!lates to its Inflexibility-duties based on
-e exceptions. Fortunately, we can obtain
other ethical theories.
mainly from the thought and writings
based theory states that every Individual
r her existence. The right to life and the
idualliberty and human dignity are funf them. Each individual's rights are basic;
!S
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•
•
•
•
Fundamental freedom of conscience, religion, thought, belief, opinion,
expression, peaceful assembly, and association (clause 2).
Democratic rights to vote in an election (or to stand for election) of the
House of Commons or of a legislative assembly (clause 3).
Mobility rights to enter, remain in, and leave Canada (clause 6).
Legal rights to life, liberty, and security of the person and the right not to
be deprived of these rights except in accordance with principles of fundamental justice (clause 7).
Equality rights before and under the law and the right to equal benefit at1d
protection of the law (clause 15).6
We must recognize that everyone has these basic rights and that they
must be respected. However, the Charter does not contain every right that
should exist- just the fundamental rights that have been hammered out in
Parliament and in the courts of law over the past two centuries. Other rights
have evolved from Locke's theory, and they are evident in other legislation.
Some rights are still evolving. And, unfortunately, some people claim "rights"
as a cloak for selfishness. Examples of these three types follow:
•
Locke's theory suggests that everyone has the right to a working environment that is free from sexual harassment or racial discrimination. This
right would appear to be common courtesy. Few would challenge It, and
it is generally included In provincial labour laws. Similarly, the right to a
smoke-free environment is not in the Charter, but many municipal and
provincial laws now guarantee it.
Many people claim rights that are not in the Charter or in other legislation. These rights fall into grey areas, and they may not apply universally.
For example, it would seem fair to have a right to private e-mail, the
right to protection from loud noise, the right to freedom from insults on
the Internet, at1d so on. These rights support human dignity and individual liberty, and we should respect them where possible (unless It can
be proved that denying such rights satisfies a greater good).
Rights-based ethical theory does have limits. As an example, consider
income tax again. Even today, some people challenge the concept of income
tax, claiming that it infringes on the individual's right to retain his or her
property. Others insist that they have a right to smoke in public buildings,
even though laws make such behaviour illegal In most Canadian cities.
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PART THREE • PROFESSIONAL ETHICS
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--------------·
Clearly, rights-based arguments cover a spectrum. Some rights are indisputable, and we usually embed them in law; other rights fall into a grey
area, suggesting that we should respect them where possible, but they are
not absolute. However, some people claim rights that are really selfishness in
disguise. In summary, rights-based ethics has an important place in resolving
ethical dilemmas, but the theory is not sufficient to deal with every situation.
Aristotle's VIrtue Ethics
Aristotle (384-322 Be) was one of many early Greek philosophers whose
thoughts are still relevant over two millennia later. Aristotle observed that
the quality or goodness of an act, object, or person depended on the function
or goal concerned. For example, a "good" chair is comfortable, and a "good"
knife cuts well.'
Similarly, happiness or goodness will result for humans once they allow
their specifically human qualities to function fully. Aristotle observed that
humans have the power of thought-the one sense that animals do not have.
Therefore, he postulated that humans would achieve true happiness by developing qualities of character using thought, reason, deduction, and logic. He
called these qualities of character "virtues," and he visualized every virtue as
a compromise between two extremes or vices.
His guide to achieving virtue was to select the "golden mean" between
the extremes of excess and deficiency. For example, modesty is the golden
mean between the excess of vanity and the deficiency of humility; courage is
the golden mean between foolhardiness and cowardice; and generosity is the
golden mean between wastefulness and stinginess.
Aristotle's virtue-based philosophy is admirable, and most people have
an innate ambition to lead a virtuous, balanced life. Although the concept of
virtue is subjective, open to interpretation, and not a universal rule, it still has
some obvious applications. In particular, Aristotle's concept of the golden mean
is extremely useful in solving ethical problems by considering the extremes
and seeking the compromise-the golden mean, or the "happy medium"between the extremes. This approach is often useful in ethical problems.
9.J AGREEMENT AND CONTRADICTION
IN ETHICAL THEORIES
The four theories described above have survived the test of centuries, and
all of them are useful in finding fair solutions to ethical problems. Table 9.1
offers a brief summary of the theories. Each theory has a wide range of applications, but none is superior in every situation. Philosophers have long been
seeking the universal principle at the root of all ethical thought, but a single
unifying concept has not yet emerged.
In many applications, all four theories are in complete agreement.
Sometimes, however, they contradict, and each theory yields its own unique
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CHAPTER 9 • Principles of Ethics ond Justice
:over a spectrum. Some rights are indis~m in law; other rights fall into a grey
pect them where possible, but they are
claim rights that are really selfishness in
:hies has an important place in resolving
ot sufficient to deal with every situation.
many early Greek philosophers whose
millennia later. Aristotle observed that
ect, or person depended on the function
ood" chalr is comfortable, and a "good"
Will result for humans once they allow
• function fully. Aristotle observed that
·the one sense that animals do not have.
; would achieve true happiness by develought, reason, deduction, and logic. He
rtues," and he visualized every virtue as
or vices.
s to select the "golden mean" between
:y. For example, modesty is the golden
1d the defidency of humility; courage is
ess and cowardice; and generosity is the
nd stinginess.
1y is admirable, and most people have
., balanced life. Although the concept of
.tion, and not a universal rule, it still has
ar, Aristotle's concept of the golden mean
problems by considering the extremes
)}den mean, or the "happy medium"is often useful in ethical problems.
TABLE 9.1 -
Summary of Four Key Ethical Theories
Mlll's
lltilltarlaulsm
Kant's Duty-Based
Ethics
Locke's RightsBased Ethics
Aristotle's VirtueBased Ethics
Statement
An action is ethically
correct if it produces
the greatest benefit for
the greatest number of
people. The duration,
intensity, and equality of
distribution of the benefits
should be considered.
Each person has a duty
to follow those courses
of action that would be
acceptable as universal
principles for everyone to
follow. Human life should
be respected, and people
should not be used as a
means to achieve some
other goal.
All individuals are free
and equal, and each has
a right to ure, health,
liberty, possessions, and
the products of his or her
labour.
Happiness Is achieved
by developing virtues,
or qualities of character,
through deduction and
reason. An act Is good if
it Is In accordance with
reason. This usually means
a course of action that is
the golden mean between
extremes of excess and
deficiency.
Conflict
A conflict of interest may
arise when evaluating
the benefits, or when
distributing them equally.
Benefits must not
favour special groups or
personal gain.
Conflicts arise when
following a unjversal
principle may cause
harm. For example,
telling a "whiteN lie Is not
acceptable, even if telling
the truth causes harm.
It is occasionally difficult
to determine when one
person's rights Infringe on
another person's rights.
Also, people occasionally
claim self-serving "rights."
The definition of virtue
Is occasionally vague
and difficult to apply in
specific cases. However,
the concept of seeking a
golden mean between two
extremes Is often useful In
ethics.
llADICTION
ave survived the test of centuries, and
solutions to ethical problems. Table 9.1
·· Each theory has a Wide range of applisituatlon. Philosophers have long been
root of all ethical thought, but a single
1.
theories are in complete agreement.
. and each theory yields its own unique
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answer to the same problem. We call this contradictory type of ethical
problem a "dilemma." A dilemma is an ethical problem that requites a person
to choose between two opposing courses of action. (Note: We often use the
term "dilemma" for problems With more than two possible outcomes.)
As an example of agreement between the theories, consider the Golden
Rule, "Do unto others as you would have others do unto you.'' This is a dear
statement of Kant's formalism: it imposes a duty on the individual to respect
human life as a goal rather than as a means to achieve some other goaL On
the other hand, it is also a utilitarian principle, since it brings the maximum
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211
212
PART THREE • PROFESSIONAL ETHICS
--· ·----------··-··--·-- ·------- --~
good to the maximum number of people. Any inconvenience to the Individual is balanced by an equal or greater benefit to the people with whom
that person comes into contact. The proponents of rights-based ethics would
agree with the Golden Rule but would claim that the duty of the individual to
act fairly comes from the rights of others to be treated fairly. Finally, Aristotle
would recognize "fairness" as a virtue. The four ethical theories are therefore consistent in identifying the Golden Rule as a good maxim for guiding
human behaviour, as we would expect.
Similarly, all four ethical theories support the precepts of most religions.
Consider the Ten Commandments from the Book of Exodus, which are the
ethical basis of Judeo-Christlan religions. Each of the commandments clearly
imposes a duty on the indiVidual and at the same time grants rights to others,
requires virtuous behaviour, and creates a stable environment that yields t.he
maximum benefit for all. An investigation of the basic precepts of all the great
religions would show similar agreement.
failure. The entire team is dismayed. Le;
continue to protect Smith as a friend <
use and suspected alcohol dependency?
9.4
Author's Analysis
In a real situation, you would have mu
are obvious: Faulty software could cat
delays. Even if the software will be full,
might slip through, and sloppy coding ·
us apply the ethical theories to the dUe
•
EXAMPLE OF AN ETHICAL DILEMMA
Ethical theories agree remarkably well in solving many ethical problems.
However, even when they contradict each other, they may assist in resolving
an ethical dilemma. For example, consider the following hypothetical case.
•
Background Information
Professional engineers Smith and Legault are both senior employees, with
over 10 years of experience. They are part of a 10-person team assigned to
develop and test a massive software control system for an electrical power
generating plant, which is under construction. They are good friends and
occasionally party together after work. Smith drinks heavily and often takes
illicit hard drugs. Legault suspects that Smith has an addiction or dependency
on alcohol. At times, Smith has wide mood and attitude swings. The project
manager cautioned Smith for absenteeism on a few occasions, but took no
disciplinary action. Legault occasionally conceals mlnor errors and "covers"
for Smith's absences.
As a friend, Legault is concerned that Smith's erratic behaviour will eventually result in discipline of some sort. Legault is also worried that Smith's
alcohol and drug abuse is affecting Smith's work and that the software may
be faulty. Legault has repeatedly tried to convince Smit h to seek treatment,
but Smith denies that any problem exists. Legault hesitates to take any further
action because of their close personal friendship.
the dependency and must not act o
statement implies that Legault has c
and Smith has refused assistance. 1
whose jobs may be jeopardized if th
to the public to ensure that the soft
efficiently, and does not contain hi4
every Code of Ethics states that tt
The duty-based theory overwhelmir
that Smith seek treatment, even if
management.
Rights theory: Conversely, the
Smith's health is a private matter. S
and Legault has no right to investig~
anyone.
Obviously, the duty-based and rigt
rules, but those rules contradict each otl
ries for further guidance. The utilitaria1
subjective judgment, so more informat
apply them. In this case, the degree of d
abuse or dependency, and Smith's willi1
factors.
•
Utilit:ari.anJ.sm: The utilitarian thE
project and to the public (if Legault
of harm to Smith's career (if Legault •
intensity of such harm is a factor. If
test, the project will be delayed, the
team may suffer, and Smith's bee
anyway. Legault's failure to act rna~
and made the outcome worse for ~
based on such meagre informationthe greatest good, for the greates1
potential loss.
Questions
Today, the control software failed a preliminary test. Legault has checked
the data dump, and it appears that Smith's coding is the likely cause of the
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Duty theory: As a friend, Legault
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failure. The entire team is dismayed. Legault faces a dilemma: Should Legault
continue to protect Smith as a friend or should Legault report Smith's drug
use and suspected alcohol dependency?
}ple. Any inconvenience to the indi.ter benefit to the people with whom
oponents of rights-based ethics would
·)aim that the duty of the individual to
rs to be treated fairly. Finally, Aristotle
·. The four ethical theories are therelen Rule as a good maxim for guiding
Author's Anal)'sls
In a real situation, you would have much more information, but a few facts
are obvious: Faulty software could cause safety concerns, extra costs, and
delays. Even if the software will be fully tested for safety before release, bugs
might slip through, and sloppy coding might cause inefficient operation. Let
us apply the ethical theories to the dilemma.
upport the precepts of most religions.
m the Book of Exodus, which are the
ts. Each of the commandments clearly
t the same time grants rights to others,
~s a stable environment that yields the
ton of the basic precepts of all the great
•
Lt.
L
DILE~MA
11 in solving many ethical problems.
ach other, they may assist in resolving
iider the following hypothetical case.
•
;ault are both senior employees, with
part of a 10-person team assigned to
:ontrol system for an electrical power
tstructlon. They are good friends and
. Smith drinks heavily and often takes
Smith has an addiction or dependency
mood and attitude swings. The project
eism on a few occasions, but took no
lly conceals minor errors and "covers"
Obviously, the duty-based and rights-based theories yield simple, clear
rules, but those rules contradict each other. We must examine the other theories for further guidance. The utilitarian and virtue-based theories require a
subjective judgment, so more information is usually needed before we can
apply them. In this case, the degree of danger to others, the seriousness of the
abuse or dependency, and Smith's willingness to seek treatment are relevant
factors.
•
1at Smith's erratic behaviour will even:t. Legault is also worried that Smith's
nith's work and that tlle software may
t to convince Smith to seek treatment,
sts. Legault hesitates to take any further
friendship.
preliminary test. Legault has checked
mlth's coding is the likely cause of the
,
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Duty theory: As a friend, Legault has a duty to help Smith overcome
the dependency and must not act on unproven allegations. The problem
statement implies that Legault has done this, but the abuse is entrenched
and Smith has refused assistance. Legault also has a duty to colleagues,
whose jobs may be jeopardized if the project falls. Legault also has a duty
to the public to ensure that the software is developed professionally, runs
efficiently, and does not contain hidden bugs. In fact (as discussed later)
every Code of Ethics states that the public interest should come first.
The duty-based theory overwhelmingly indicates that Legault must insist
that Smith seek treatment, even If it means reporting the problem to
management.
Rights theory: Conversely, the rights-based theory would say that
Smith's health is a private matter. Smith has a right to personal privacy,
and Legault has no right to investigate Smith's health or to discuss it with
anyone.
NEl
-
Utilitarianism: The utilitarian theory balances the risk of harm to the
project and to the public (if Legault does not intervene), against the risk
of harm to Smith's career (if Legault exposes the addiction). The estimated
intensity of such harm is a factor. If the software fails the final validation
test, the project will be delayed, the employer will suffer a loss, the whole
team may suffer, and Smith's health problems may become known
anyway. Legault's failure to act may simply have delayed the inevitable
and made the outcome worse for everyone. The utilitarian theory-even
based on such meagre information-would favour intervention, because
the greatest good, for the greatest number, would outweigh Smith's
potential loss.
214
PART THREE • PROFESS!~-~-~--~!~------·-··--------
•
Virtue: The virtue-based theory would recognize drug and alcohol dependency as extreme and undesirable. The golden mean between abstinence
and addiction is moderate use. The virtue-based theory would condemn
Smith's abuse, and therefore encourage action to alleviate it.
Suggested Decision
Even with the limited information provided, three of the four theories clearly
recommend intervention. However, while this may be the end of the ethical
discussion, it is not the end of the problem. Knowing the right course of
action, finding the courage to implement it, and doing so objectively are
equal challenges.
Ideally, the process must be fair, and must preserve Smith's dignity and
self-respect. Legault might still convince Smith to take sick leave and enter
a recovery program, thus salvaging Smith's career and finances. Since a large
corporation typically has an Employee Assistance Program (EAP) to help
employees with serious personal problems, contacting the EAP would be a
good start. Other help may be available. As a last resort, Smith should be
reported to the department manager. The role of Legault as a friend is not to
conceal the problem, nor is it to be a snitch; rather, it ts to apply the decision
fairly, with a minimum of personal chaos.
In summary, examining a dilemma using the four ethical theories usually
gives the right solution. When theories contradict, you must follow the most
appropriate theory. This requires a value judgment, and is therefore subjective. The good news is that when a decision follows an orderly process, is
consistent with a recognized ethical theory, and is fair, the decision maker
has a dear conscience. (The next section explores "fairness" in more detail.)
9.5
PRINCIPLES OF JUSTICE
When you face an ethical dilemma and your decision agrees with one or more
of the ethical theories above, it is probably right, but is it fair? Curiously, an
ethical decision may be unfair even if it agrees with ethical theories. To avoid
unfairness, you must seek justice. A legal dictionary gives the following definition of justice: "A state of affairs in which conduct or action Is both fair and
right, given the ctrcumstances."8
In other words, to be just, your decision must be both "right" (in agree-ment with the ethical theories) and "fair." Fairness ls hard to Identify, although
its opposite, "unfairness," is usually obvious and helps us to understand the
concept of justice. For our purposes, we can subdivide justice into the following four basic categories.9
1. Procedural Justice-Fairness In Decision M•klng
According to a well-known saying, "Justice must be done, but it must also be
seen to be done." That is, the decision-making process itself must be fair, and
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must treat those involved with dignity
an unfair process: a supervisor fires an er
rumours from coworkers, without discus
Even if the employee deserves to be fired,
process. ln other words, even if the decisi
Fortunately, fair procedures have evol
principles usually called "natural justice.
be heard, and the right to be judged by
ural" principles, because they are fundar
ln mathematics, they do not need any fl.
•
•
The right to be heard: This prin<
informed when the person's rights o
be pennitted to defend himself or her:
is habeas corpus, after the British Act p
people imprisoned without charge t·
personal right. lt is still a fundament.
Charter of Rights and Freedoms cites
The right to be judged by an
requires ethical decisions to be basE
Obviously, a judge or decision maker
personal interest or involvement in t
have a conflict of interest, and the
judge (or decision maker) has a confli
the conflict, step aside, and turn the
Over the years, courts have defined tJ
tice more specifically. For example, a peJ
now has the right to require the prosec
ments upon which the charge is based. '!'
to allow a proper defence.
Similarly, in professional discipline
a person who investigates an allegatim
sitting on the Discipline Committee th;
person who is already familiar with the
a faster decision), that person might alrt
exclude anyone with prior knowledge oJ
bias that would violate the principles of
2. Corrective Justice-Fairness In I
When someone harms a person or da
theories agree that the person has the ri
repair. (In other words, the person who
to rectify it.) This is corrective (or retrib1
tort law, and professional disciplinary J
corrective justice.
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ENGR201 Professional Practice and Responsibility ©
Lesson 5 Transcript: Types of Professional Relationships
Professional relationship.
A professional relationship is defined as the relation between a professional and a
client.
Although this relationship can differ according to the individuals involved, there are
some common characteristics that allow us to speak of some common models that
define how a professional interacts with their client.
Accordingly, two models are prevalent, an ideal type model and an invisible client
model.
Ideal Model
Ideal type model.
It is a model of professional relationship where the professional provides their skill and
judgment directly to the client.
It is common in those situations where a professional has an independent professional
practice and the client approaches the professional directly to identify and solve their
problem.
In this model, the client interacts with the professional alone, and therefore the need for
professional’s ethics and competence is exceptionally high.
Since the professional practices alone, they are quite autonomous in deciding when and
how to work.
In this context, the only form of quality and ethical control is exercised by professional
associations.
Invisible Client Model
Invisible client model.
This is another model of professional relationship that is common when professionals
are employed to provide services within an organizational setting like a company.
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1
The employer who employs professionals acts in place of the client and so the name
invisible client.
The professional does not usually interact directly with the client but has to follow the
directions of the employer in order to satisfy the needs of the client.
In the process, the employer dictates the standards, ethics, pay, work, etc, that govern
how a professional should work.
Some key aspects are that the professional is far less autonomous than the ideal type
model because their actions are governed on a daily basis by the organization where
they work.
This creates a pressure to abandon professional values in order to advance in the
organization.
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2
ENGR201 Professional Practice and Responsibility ©
Lesson 5 Transcript: Organizational Behaviour
Organizational Behavior.
Organizational behavior can be simply defined as the study of what people think, feel,
and do, in and around organizations.
In your readings, McShane and Von Glinnow define organizational behavior as the
study of individual, team, including interpersonal and organizational level
characteristics, that influence behavior within work settings.
Accordingly, organizational behavior can be differentiated into three kinds of influences,
individual influences, group influences, and organizational level influences.
Click on any of the three tabs to hear a more detailed description of each kind of
influence.
Individual Influences
Individual influence.
Individual influences on a person's behavior in an organization can be differentiated into
four: motivation, role perception, ability, and situational factors.
Click on each of the tabs for a more detailed explanation of each factor.
Motivation
Motivation.
Motivation could be defined as the force within a person that affects their direction,
intensity, or persistence of voluntary behavior.
Motivation drives behavior. It is the force behind an individual's decision to commit or
not commit certain acts or behaviors.
Situations and contexts cause some people to be motivated to do their work while other
people are unmotivated by those very circumstances.
What makes us do the things we do? Why the two individuals in similar circumstances
choose two different options?
The answer in part is motivation.
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1
Role Perception
Role perception.
Roles are positions that people occupy within organizations. These positions come with
specific tasks, and associated duties and consequences for which we are accountable
when we occupy these positions.
Roles help define the behaviors we should exhibit and those we should not when we do
an assigned task.
Roles are important because they help us communicate responsibilities associated with
a particular position and they set expectations for appropriate responses to or from
others.
So as an individual working in an organization, we fill a particular role and this role
shapes how we behave within that organization.
Ability
Ability.
Ability refers to the natural aptitude and/or learned capabilities that individuals possess
to accomplish assigned tasks.
Those with a natural ability to perform an assigned task often show a higher comfort
level with regards to accomplishing tasks and this affects how they respond and behave
with other co-workers.
Situational Factors
Situational factors.
Situational factors are factors that can be either internal or external to the organization
that affect how individuals function within the organization.
Internal factors could include time, budget, work facilities, etc. These factors influence
how an individual does their work and so their behavior in the organization.
Similarly, external factors such as the current economic situation or consumer
preferences affect the expectations from individuals and therefore, influences their
behavioral responses.
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2
Group Influences
Group influences.
Three aspects influence behavior while working in groups, leadership, power and
influence, and team dynamics.
Click on each tab to learn more about each of these aspects.
Leadership
Leadership.
Leadership is the process of guiding and directing the behavior of people in the work
environment.
It is important to distinguish between the leader and the manager. While a leader is an
advocate for change and new approaches to problem solving, a manager is an
advocate for stability and the status quo.
Leadership is of two kinds: formal and informal. Formal leadership is when the
organization bestows the authority to a person to guide and direct a group.
Informal leadership is accorded unofficially when a person is granted the power to guide
by others.
Power and Influence
Power and influence.
Power is the ability to influence someone else's behavior, while influence is the process
of affecting the thoughts and behavior of another person.
In an organization, power and influence is frequently exercised to get other people to do
something that is in the interests of the organization or in the interests of a person.
Authority is the right granted by the organization to influence another person. Another
common means of influencing other people is through politics.
Politics is especially useful in order to influence people who have authority over others.
Politics is the use of power and influence to further personal interest, some are
acceptable, while others are not.
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3
Team Dynamics
Working in teams.
A team can be defined as a group of people with complimentary skills who are
committed to a common mission, performance goals, and approach for which they hold
themselves mutually accountable.
The structure of teams exert important influences on how individuals behave when
working in them.
For example, structural aspects of teams such as goals and objectives, operational
guidelines, assessment measures, and role distribution for team leaders and members,
play an important role in influencing behavior.
Organizational Influences
Organizational influences.
Organizational level influences on behavior can happen through two aspects:
organizational structure, and organizational culture.
Click on the tabs to learn in detail about each of these aspects.
Organizational Structure
Organizational structure.
Organizational structure could be defined as the division of labor and patterns of
coordination, communication, workflow, and formal power, that direct organizational
activities.
A common representation of organizational structure is the organizational chart that
conveys in a visual diagram the relations between different roles people occupy in an
organization.
Several factors differentiate the structure of an organization.
These include the span of control, which refers to the number of people who report to
any person, the degree of centralization, decentralization, or the number of people with
decision making authority in an organization, and the degree of formalization, or the
standardization of rules and procedures in an organization.
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4
Types of Organizational Structure
Different organizational structures.
Differences in organizational structures reflect how structures are departmentalized.
In other words, it specifies how employees and their activities are grouped together.
It also establishes a chain for the flow of commands and for the coordination of
information.
Organizational and management studies distinguish at least five major types of
organizational structures.
Click on each of the tabs to learn more about different kinds of organizational structures.
Line Organization
Line organization.
The line organization is the most hierarchical structure. The only departments in the
organization are those that accomplish the mission of the organization.
There are only direct vertical relationships among the different operations or line
departments within a firm.
There is little horizontal communication across different departments.
Line & Staff Organization
Line and staff organization.
This structure creates a parallel chain of line and staff. The staff provides advisory or
support role to the line departments.
A good example is that accounting office that reports to the president, it also provides
financial advice and support to the production and marketing departments.
Functional Organization
Functional organization.
This organizational structure has a type of departmentalization that organizes
employees around specific knowledge or resources.
Projects are divided into segments and assigned to relevant functional areas and/or
groups within functional areas.
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5
A disadvantage of this organizational structure is that employees develop a narrow
understanding of business and this results in poor coordination across different
functions.
Divisional Organization
Divisional organization.
In this type of organizational structure, employees are grouped according to the primary
source of environmental uncertainty, depending upon whether the company is selling in
multiple places, or to different clients, or if different products are sold across a country.
In other words, the structure is grouped around geographic areas, products, or clients.
The problem with this structure is that it results in the duplication of structure, personnel
and resources.
Matrix Organization
Matrix organization.
A matrix organization tries to combine the qualities of a functional and divisional
organizational structure.
In a matrix organization, employees are assigned to cross functional teams working on
specific projects.
They also belong to permanent functional units from where they are distributed to
projects.
This allows for optimum use of resources and expertise. A disadvantage of this
structure is that employees are accountable to two managers and this can create
ambiguity and conflict.
Organizational Culture
Organizational culture.
Organizational culture is a set of values and assumptions shared within an organization.
While values reflect the belief about what should be or should not be assumptions, our
deeply held beliefs and mental models that guide behavior and tell members how to
think about things.
Organizational culture is made visible through practices symbols and physical structures
of the organization.
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6
In other words, through actions that everyone in an organization does without thinking
like for example, wishing the boss “Good Morning” our practices in symbols of
organizational culture.
Similarly, physical structures like the nature of rooms, organization of office space, and
decoration on the walls, all reveal the culture of an organization.
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7
ENGR201 Professional Practice and Responsibility ©
Lesson 5 Podcast Transcript: Ethics and Organization
Influences on Professional Loyalty in an Organization
In this podcast, we will describe how an organization influences the nature of loyalty of a
professional towards their organization or towards their profession.
When professionals work within an organizational setting their behavior is influenced by
individual, group, and organizational influences. Professional behavior is particularly
susceptible to group and organizational influences. A powerful group influence on
professional behavior is the nature of leadership and the style of leadership that is
prevalent within the organization. Another important influence is the structure of the
organization. Let us look at the influence of each of these forces on professional
behavior.
Leadership Style
Leadership, as we have noted, is related to guiding and directing the behavior of people
in the workplace. The objective of this guiding behavior is to deliberately shape the
outcomes of how co-workers perform at tasks and duties with the intention of achieving
organizational goals. Different leaders and managers possess different styles for
managing their subordinates. Leadership styles can be of the following types:
1. Autocratic style – leaders adopt directive or controlling actions to enforce rules and
activities. This style is particularly effective for tasks that need to be finished
urgently. However, long-term reliance on this style can affect the judgment and
autonomy of professionals.
2. Democratic style – leaders take collaborative, responsive, and interactive actions
with followers. This democratic style allows for the evolution of mutual respect
between professionals and co-workers. There is far less pressure to be influenced
by organizational priorities.
3. Laissez-faire style – leader who fails to take responsibility of position. As a result,
subordinates may have greater freedom, but there is little evolution of a coherent
© May not be copied or duplicated
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1
mission in the organization. In the short-term, professionals may face less
pressures, but in the long-run will feel under-valued and frustrated.
Organizational Structure
Organizational structure of an organization also plays a vital role in shaping the
behavior of professionals. This is because the nature of the structure shapes different
facets of how individuals are managed, how communication flows in the organization,
and how decisions are made. Some pressures that an organizational structure exerts on
the individual professional are the following:
1. Success within an organization arises from not just professional success, but also
from knowledge of how the organization is structured. The knowledge of how the
organization is structured is crucial for a professional to understand how information
and commands flow in an organization.
2. Another important aspect of organizational structure that influences a professional is
the decision-making process. Who makes decisions, and how formalized decisionmaking is in the organization affects how professionals can contribute to decisions.
© May not be copied or duplicated
without the permission of the owner.
2
[essentials]
STEVEN L. McSHANE
SECOND EDITION
I MARY ANN VON GUNOW
[26]
:part II II (Individual Behavior and Processes)
>MARS Model of Individual Behavior
and Performance
For most of the past century, experts in psychology, sociology, and more recently organizational behavior have investigated the direct predictors of individual behavior and
performance. 2 One frequently mentioned formula is performance = ability X motivation,
sometimes known as the "skill and will" model. This formula identifies two characteristics within the person that directly influence behavior and performance. Another
popular formula is performance = person X situation, where person includes individual
characteristics, and situation represents external influences on the individual's behavior.
Role perceptions, the fourth factor that directly predicts behavior and performance,
was not identified until the 1960s and continues to be overlooked in many studies on
individual behavior. 3
EJ.Chibit 2.1 illustrates the four factors that directly influence voluntary individual behavior and performance: motivation, ability, role perceptions, and situational factors. These
variables are easily remembered by the acronym "MARS."4 All four factors are important,
so behavior and performance would be low when any one of them is low. For example, enthusiastic salespeople (motivation) who understand their job duties (role perceptions) and
have sufficient resources (situational factors) will not perform their jobs as well if they
lack sufficient knowledge and sales skill (ability). Let's look at each of these four factors in
more detail.
Employee Motivation
MOTIVATION :
th e forces within a
person that a ffect
his or her direction,
intensity, and
persi st ence o f
voluntary bc h <~ vior
Motivation represents the forces within a person that affect his or her direction, intensity,
and persistence of voluntary bebavior.5 Direction refers to the path along which people
engage their effort. This sense of direction of effort reflects the fact that people have
choices about where they put their effort. In other words, motivation is goal-directed, not
random. People are motivated to arrive at work on time, finish a project a few hours early,
or aim for many other targets. The second element of motivation, called intensity, is the
amount of effort allocated to the goal. For example, two employees might be motivated to
finish their project a few hours early (direction), but only one of them puts forth enough
[Exhibit 2.1 ) MARS Model of Individual Behavior and Results
Individual Characteristics
MARS Model
:chapter 2 II (Individual Behavior, Personality, and Values)
[271
effort (intensity) to achieve this goal. In other words, intensity is all about how much you
push yourself to complete the task.
Finally, motivation involves varying levels of persiste11ce, that is, continuing the effort
for a certain amount of time. Employees sustain their effort until they reach their goal or
give up beforehand. To help remember these three elements of motivation, consider the
metaphor of driving a car in which the thrust of the engine is your effort. Direction refers
to where you steer the car, intensity is how much you put your foot down on the gas pedal,
and persistence is for how long you drive toward that destination.
Ability
Employee abilities also make a difference in behavior and task performance. Ability includes both the natural aptitudes and learned capabilities required to successfully complete
a task. Aptitudes are the natural talents that help employees learn specific tasks more
quickly and perform them better. For example, some people have a more natural ability
than others to manipulate small objects with their fingers (called finger dexterity). There
Training the Toyota Way
Poised to become the world's largest automaker, Toyota Motor Company is ramping up
its training programs around the world to maintain the company's quality standards.
Toyota's training methods make extensive use of visual and cognitive aptitudes that
require considerable practice and coaching. For example, trainees learn how to spot
defects on metal sheet panels where most ot us would see none. They also develop visual
gap measuring, such as determining how well the edge ofthe engine hood lines up with
the adjacent part ot the front grill. This photo shows Toyota production employee Ray
Howley (right) from South Africa learning from master trainer Kazuo Hyodo how to tighten
bolts so they are snu11 without being too tight6
AB ILI TY:
the natural
aptitudes and
learned capabilities
required to
successfully
compl ete a task
[28]
COMPETE NCIES:
skills, knowledge,
aptitudes, and
other p er sonal
cha racter is tics that
lead to superior
pertormance
:part II II Ondividual Behavior and Processes)
are many physical and mental aptitudes, and our ability to acquire skills is affected by these
aptitudes. Learned capabilities refer to the skills and lmowledge that you have actually
acquired. This includes the physical and mental skills you possess as well as the lmowledge
you acquire and store for later use.
Skills, lmowledge, aptitudes, and other personal characteristics that lead to superior per~
formance are bunched together into the concept of competencies. The challenge is to
match a person's competencies with what each job requires. One strategy is to select applicants whose existing competencies best fit the required tasks. This includes comparing
each applicant's competencies with the requirements of the job or work unit. A second
approach is to provide training so employees develop required skills and lmowledge. Re~
cent evidence suggests that training has a strong influence on organizational performance.'
The third way to mateh people with job requirements is to redesign the job so employees
are only given tasks within their capabilities.
Role Perceptions
Employees also require clear role perceptions to perform their job well. Employees have
clear role perceptions in three ways. First, they understand the specific tasks assigned to
them, meaning that they know the specific duties or consequences for which they are
accountable. Second, they understand the priority of their various tasks and performance
expectations. For example, employees would know that serving customers should take pri~
ority over stocking shelves if the two are required at the same time. This second characteristic of role perceptions also refers to understanding the priority of quality versus quantity
in performing the task. The third aspect of role perceptions is understanding the preferred
behaviors to accomplish the assigned tasks. This refers to situations where more than one
method could be followed to perform the work. Employees with clear role perceptions
know which of these methods is preferred by the organization.
Situational Factors
Employee behavior and performance also depends on how well the situation supports their
task goals. Situational factors include conditions beyond the employee's immediate control
that constrain or facilitate behavior and performance.8 Some situational characteristicssuch as consumer preferences and economic conditions--originate from the external environment and, consequently, are beyond the employee's and organization's control. However,
some situational factors-such as time, people, budget, and physical work facilities-are
controlled by others in the organization. Corporate leaders need to carefully arrange these
conditions so employees can achieve their performance potential.
Motivation, ability, role perceptions, and situational factors affect all voluntary workplace belu!-viors and their performance outcomes. In the remainder of this chapter, we introduce the most stable characteristics of individuals that impact their motivation, ability, and
role perceptions.
>leamingobjectives
After reading the next two sections, you should be able to:
2. Define personality and discuss what determines an individual's personality
characteristics.
3. Summarize the "big five" personality traits in the five-factor model and discuss their
influence on organizational behavior.
4. Describe self-concept in terms of self-enhancement, self-verificati on, and
self-evaluation.
5 . Explain how social identity theory relates
to a person 's self-concept.
[256]
:part IV II (Organizational Processes)
>Division of Labor and Coordination
All organizational structures include two fundamental requirements: the division of Labor
into distinct tasks and the coordination of that Labor so that employees are able to accomplish common goals. 5 Organizations are groups of people who work interdependently
toward some purpose. To efficiently accomplish their goals, these groups typically divide
the work into manageable chunks, particularly when there are many different tasks to
perform. They also introduce various coordinating mechanisms to ensure that everyone is
working effectively toward the same objectives.
Division of Labor
Division of Labor refers to the subdivision of work into separate jobs assigned to different
people. Subdivided work Leads to job specialization, because each job now includes a narrow subset of the tasks necessary to complete the product or service. To produce its first
electronic game, BioWare's cofounders divided the work among a dozen or more employees. Some people were responsible for programming; others completed the artwork; still
others developed the game's sound effects, and so forth. Today's computer games are so sophisticated that a project may require several dozen people with highly specialized expertise. As companies get Larger, this horizontal division of Labor is accompanied by vertical
division of Labor, where some people are assigned the task of managing employees.
Why do companies divide the work required to build a computer game into several jobs?
As we Learned earlier in this book, job specialization increases work efficiency.6 Job incumbents can master their tasks quickly because work cycles are very short. Less time is wasted
changing from one task to another. Training costs are reduced because employees require
fewer physical and mental skills to accomplish the assigned work. Finally, job specialization
makes it easier to match people with specific aptitudes or skills to the jobs for which they
are best suited. Although one person might be able to design a computer game alone, it
would take much Longer than a game designed by a team of specialists. Also, an individual
who produces superb animation might deliver only mediocre computer coding, whereas a
highly skilled team of people would have higher quality across all areas of work.
Coordinating Work Activities
As soon as people divide work among themselves, coordinating mechanisms are needed to
ensure that everyone works in concert. Coordination is so closely connected to division of
Labor that the degree of specialization is limited by the feasibility of coordinating that
work. Coordination tends to become more expensive and difficult as jobs become more
specialized, so companies specialize jobs only to the point where it isn't too costly or chalLenging to coordinate people in those specializedjobs.7
Every organization- from the two-person comer convenience store to the largest corporate entity-uses one or more of the following coordinating mechanisms:8 informal communication, formal hierarchy, and standardization. These forms of coordination align the
work of staff within the same department as well as across work units. Increasingly, they
are also recognized as a critical feature ofjoint ventures, humanitarian aid programs, and
other multiorganizational structures.9
Coordination through Informal Communication
Informal communication is a coordinating mechanism in all organizations. This includes
sharing information on mutual tasks as well as forming common mental models so
that employees synchronize work activities using the same mental road map. 10 Informal
:chapter ~ 2 II (Organizational Structure)
[257]
communication is vital in nonroutine and ambiguous situations because employees can exchange a large volume of information through face-to-face communication and other
media-rich channels.
Coordination through informal communication is easiest in small firms such as when
BioWare was a start-up finn, although information technologies have further leveraged
this coordinating mechanism in large organizations. 11 Companies employing thousands of
people also support informal communication by keeping each production site small. Global
auto-parts manufacturer Magna International is well known for keeping its plants to a maximum ·size of around 200 employees, because employees have difficulty remembering each
other's names in plants that are any larger. Toyota, Fuji Xerox, and many other companies
encourage informal communication as a coordinating mechanism during product development through concurrent engineering, in which specialists from design through to production are organized into a temporary cross-functional team, sometimes moving team
members into one large room. 12
Coordination through Formal Hierarchy
Informal communication is the most flexible form of coordination, but it can be timeconsuming. Consequently, as organizations grow, they develop a second coordinating mechanism: formal hierarchy. 13 Hierarchy assigns legitimate power to individuals, who then use this
p~r to direct work processes and allocate resources. In other words, work is coordinated
through direct supervision. Any organization with a formal structure coordinates work to
some extent through the formal hierarchy. For instance, project leaders at BioWare are responsible for ensuring that employees on their computer game project remain on schedule
and that their respective tasks are compatible with tasks completed by other team members.
The formal hierarchy also coordinates work among executives through the division of
organizational activities. If the organization is divided into geographic areas, the structure
gives those regional group leaders legitimate power over executives responsible for production, customer service, and other activities in those areas. If the organization is divided into
product groups, then the heads of those groups have the right to coordinate work across
regions. The formal hierarchy bas traditionally been applauded as the optimal coordinating
mechanism for large organizations. As we'll find out later in this chapter, however, formal
hierarchy is not as agile as other forms of coordination.
Coordination through Standardization
Standardization, the third means of coordination, involves creating routine patterns of
behavior or output. 'Ib.is coordinating mechanism takes three distinct forms:
• Standardized processes. Quality and consistency of a product or service can often be
improved by standardizing work activities through job descriptions and procedures. 14
This coordinating mechanism is feasible when the work is routine (such as mass
production) or simple (such as making pizzas), but is less effective in nonroutine and
complex work such as product design.
• Standardized outputs. This form of standardization involves ensuring that individuals
and work units have clearly defined goals and output measures (e.g., customer satisfaction, production efficiency). For instance, to coordinate the work of salespeople,
companies assign sales targets rather than specific behaviors.
• Standardized skills. When work activities are too complex to standardize through
processes or goals, companies often coordinate work effort by extensively training
employees or hiring people who have learned precise role behaviors from educational
programs. This form of coordination is used in hospital operating rooms. Surgeons,
nurses, and other operating room professionals coordinate their work more through
training than goals or company rules.
I
I
r
[258]
:part IV II (Organizational Processes)
Division of labor and coordination of work represent the two fundamental ingredients of all
organizations. But how work is divided, which coordinating mechanisms are emphasized, who
makes decisions, and other issues are related to the four elements of organizational structure.
>Elements of Organizational Structure
Every company is configured in terms of four basic elements of organizational structure.
This section introduces three of them: span of control, centralization, and formalization.
The fourth element-departmentalization- is presented in the next section.
Span of Control
SPAN OF
CONTROL:
the number of
people directly
reporting to the
next level in the
hierarchy
Span of control refers to the nwnber of people directly reporting to the next level in the hierarchy. A narrow span of control exists when very few people report directly to a manager,
whereas a wide span exists when a manager has many direct reports. A century ago, French
engineer and management scholar Henri Fayol strongly recommended a relatively narrow span
ofcontrol, typically no more than 20 employees per supervisor and 6 supervisors per manager.
Fayol championed formal hierarchy as the primary coordinating mechanism, so he believed
that supervisors should closely monitor and coach employees. His views were similar to those
of Napoleon and other military leaders, who declared that somewhere between three and ten
subordinates is the optimal span of control. These prescriptions were based on the belief that
managers simply cannot monitor and control any more subordinates closely enough. 1 ~
Today, we know better. The best performing manufacturing plants currently have an average of38 production employees per supervisor.16 What's the secret here? Did Fayol, Napoleon,
and others miscalculate the optimal span of control? The answer is that those sympathetic to
hierarchical control believed that employees should perform the physical tasks, whereas
supervisors and other management persormel should make the decisions and monitor employees to make sure they performed their tasks. In contrast, the best-performing manufacturing operations today rely on self-directed teams, so direct supervision (formal hierarchy) is
supplemented with other coordinating mechanisms. Self-directed teams coordinate mainly
informal communication and specialized knowledge, so formal hierarchy plays a minor role.
Similarly, hospital medical professionals coordinate their work mainly through standardized
skills, so the chief physician and head of nursing typically have many direct reports.
A second factor influencing the best span of control is whether employees perform routine
tasks. A wider span of control is possible when employees perform routine jobs, because
there is less need for direction or advice from supervisors. A narrow span ofcontrol is necessary
when employees perform novel or complex tasks, because these employees tend to require
more supervisory decisions and coaching. A third influence on span of control is the degree
of interdependence among employees within the department or team.17 Generally, a narrow
span of control is necessary where employees perform highly interdependent work with
others. More supervision is required for highly interdependent jobs becaUse employees tend
to experience more conflict with each other, which requires more of a manager's time to
resolve. Also, employees are less clear on their personal work performance in highly interdependent tasks, so supervisors spend more time providing coaching and feedback.
Tall and Flat Structures
Span of control is interconnected with organizational size (nwnber of employees) and the
number oflayers in the organizational hierarchy. Consider two companies with the same nwnber ofemployees. If company A has a wider span ofcontrol (more direct reports per manager)
than company B, then company A must have fewer layers of management (i.e., a flatter structure) than does company B. The reason for this relationship is that a company with a wider
:chapter 12 II
(Organizational Structure)
[2591
span of control necessarily bas more employees per supervisor, more supervisors for each
middle manager, and so on. This larger nwnber of direct reports, compared to a company with
a narrower span of control, is only possible by removing layers of management.
Also notice that as companies employ more people, they must widen the span of control,
build a taller hierarchy, or both. Most companies end up building taller structures because
they rely on direct supervision to some extent as a coordinating mechanism. Unfortunately,
increasing the size of the hierarchy creates problems. First, tall structures have higher overhead costs because most layers of hierarchy consist of managers rather than employees who
actually make the product or supply the service. Second, senior managers in tall structures often
receive lower-quality and less-timely information from the external environment because
information from front-line employees is transmitted slowly or not at all up the hierarchy.
Also, the more layers of management through which information must pass, the higher the
probability that managers will fllter out information that does not put them in a positive light.
Finally, tall hierarchies tend to undermine employee empowerment and engagement because
they focus power around managers rather than employees. 18
These problems have prompted leaders to "delayer''-remove one or more levels in the
organizational hierarchy. 19 Soon after Mark Hurd was hired as CEO ofHewlett-Packard, he
stripped the higb~tecbnology company's lllayers of hierarchy down to 8 layers. He argued
that this action reduced costs and would make HP more nimble. BASF's European Seal
Sands plant went even further when it was dramatically restructured around self~direct
teams. "Seven levels of management have been cut basically to two," says a BASF executive.20 Although many companies enjoy reduced costs and more-empowered employees
when they reduce layers of hierarchy, some organizational experts warn that cutting out too
much middle management may cause long-term problems. They point out that these managers serve a valuable function by controlling work activities and managing corporate
growth. Furthermore, companies will always need managers to make quick decisions and
represent a source of appeal over conflicts.21 The conclusion here is that flatter structures
offer several benefits, but cutting out too much management can offset these benefits.
~l. i
r
Centralization and Decentralization
Centralization and decentralization represents a second element of organizational design.
Centralization means that formal decision-making authority is held by a small group of
people, typically those at the top of the organizational hierarchy. Most organizations begin
with centralized structures, as the founder makes most of the decisions and tries to direct the
business toward his or her vision. But as organizations grow, they diversify and their envirorunents become more complex. Senior executives aren't able to process all the decisions
that significantly influence the business. Consequently, larger organizations tend to decentralize, that is, they disperse decision authority and power throughout the organization.
The optimal level of centralization or decentralization depends on several contingencies
that we will examine later in this chapter. However, we also need to keep in mind that
different degrees of decentralization can occur simultaneously in different parts of the
organization.22 Nestle, the Swiss-based food company, has decentralized marketing decisions to remain responsive to local markets, but has centralized production, logistics, and
supply chain management activities to improve cost efficiencies and avoid having too much
complexity across the organization.
Formalization
Formalization is the degree to which organizations standardize behavior through rules,
procedures, formal training, and related mechanisms. 23 In other words, companies become
more formalized as they increasingly coordinate work through standardization. McDonald's
CENTRALIZATION:
the degree to which
formal decision
autho rity is held
by a small group
of people, lypic Cl lly
those at the top of
the organizational
hierarchy
FORMALIZATION:
the de gree to which
organizati on s
standardize behavior
throu gh rules ,
procedures, formal
training , and
related
mech anisms
[260]
:pai11V II (Organizational Processes)
7-Eieven's Centralized-Decentralized Structure
7-8even has adopted what it calls a Ucentrally•decentralizedH structure,ltleverages buying power and
efficiencies by centralizing decisions about infonnation technology and supplier purchasing. At the same time,
the convenience store chain decentratizes local inventory decisions to store managers so they can adapt
quickly to changing circumstances at the local level. Along with ongoing producttraining and guidance from
regional consultants, store managers have the best infonmation about their customers and can respond
quickly to local market needs. "We could never predict a busload of football players on a Friday night, but the
store manager can.~ explains a 7-Eieven executive.24
restaurants and most other successful fast-food chains typically have a high degree of
fonnalization because they rely on standardization of work processes as a coordinating
mechanism. Employees have precisely defined roles, right down to how much mustard
should be dispensed, how many pickles should be applied, and how long each hamburger
should be cooked. Companies tend to become formalized as they get older and larger.
External influences, such as government safety legislation and strict accowtting rules, also
encourage formalization.
Formalization may increase efficiency and compliance, but it can also create problems. Rules and procedures reduce organizational flexibility, so employees follow prescribed behaviors even when the situation clearly calls for a customized response. High
levels of formalization tend to undermine organizational learning and creativity. Some
work rules become so convoluted that organizational efficiency would decline if they
were actually followed as prescribed. Formalization is also a source ofjob dissatisfaction
and work stress.15
MECHANISTIC
STRUCTURE:
an org;lrlizil t ional
structure with
a narrow sp an
of contro l and a
high d egree o f
formali zation and
centrali zation
Mechanistic versus Organic Structures
We discussed span of control, centralization, and formalization together because they
cluster around two broader organizational forms: mechanistic and organic structures. 26 A
mechanistic structure is characterized by a narrow span of control and high degree of
formalization and centralization. Mechanistic structures have many rules and procedures,
I'
:chapter 12 II (Organizational Structure)
limited decision making at lower levels, tall hierarchies of people in specialized roles, and
vertical rather than horizontal communication flows. Tasks are rigidly defined, and are
altered only when sanctioned by higher authorities . Companies with an organic structure
have the opposite characteristics. They operate with a wide span of control, decentralized
decision making, and little formalization. Tasks are fluid, adjusting to new situations and
organizational needs.
As a general rule, mechanistic structures operate better in stable environments because
they rely on efficiency and routine behaviors, whereas organic structures work better in
rapidly changing (i.e., dynamic) environments because they are more flexible and responsive to these changes. Organic structures are also more compatible with organizational
learning, high-performance workplaces, and quality management because they emphasize
information sharing and an empowered workforce rather than hierarchy and statusP However, the advantages of organic structures rather than mechanistic structures in dynamic
environments occur only when employees have developed well-established roles and
expertise. 28 Without these conditions, employees are unable to coordinate effectively with
each other, resulting in errors and gross inefficiencies. Start-up companies often face this
problem, known as the liability ofnewness. Newness makes start-up firms more organic,
but their employees often lack industry experience and their teams have not developed sufficiently for peak performance. As a result, the organic structures of new companies cannot
compensate for the poorer coordination and significantly lower efficiencies caused by this
lack of structure from past experience and team mental models.
After reading the next section, you should be able to:
5. Identify and evaluate the four pure types of departmentalization.
6. Describe three variations of divisional structure and explain which one should be
adopted in a particular situation.
7. Describe the features of team-based organizational structures.
8. Diagram the ma trix structure and discuss its advantages and disadvantages.
>Forms of Departmentalization
Span of control, centralization, and formalization are important elements of organizational
structure, but most people thlnk about organizational charts when the discussion of organizational structure arises. The organizational chart represents the fourth element in the
structuring of organizations, called departmentalization. Departmentalization specifies
how employees and their activities are grouped together. It is a fundamental strategy for
coordinating organizational activities because it influences organizational behavior in the
following ways.29
• Departmentalization establishes the chain of command; that is, the system of common supervision among positions and units within the organization. It frames the
membership of formal work teams and typically determines which positions and
units must share resources. Thus, departmentalization establishes interdependencies
among employees and subunits.
• Departmentalization focuses people around common mental models or ways of
thinking, such as serving clients, developing products, or supporting a particular skill
set. This focus is typically anchored around the common budgets and measures of
performance assigned to employees within each departmental unit.
[261]
ORGANIC
STRUCTURE:
an organizational
structu re with a
, w ide span of
control, little
formalization and
decentralized
decision making
leamingobjectives<
I
[262]
:part IV II (Organizational Processes)
• Departmentalization encourages coordination through infonnal communication
among people and subunits. With common supervision and resources, members
within each configuration typically work near each other, so they can use frequent
and informal interaction to get the work done.
There are almost as many organizational charts as there are businesses, but the four
most common pure types of departmentalization are functional, divisional, team-based,
and matrix.
Functional Structure
FUNCTIONAL
STRUCTURE:
a type of
departmen t alization
th a t orga nizes
employees a round
specific knowle dge
or other resources
A functional structure organizes employees around specific knowledge or other
resources. The opening vignette to this chapter described bow the cofounders of BioWare
contemplated the functional structure for the electronic games company. Specifically, they
considered the possibility of creating departments around the various specializations,
including art, progranuning, audio, quality assurance, and design. The functional structure
creates specialized pools of talent that typically serve everyone in the organization. This
provides more economies of scale than if functional specialists are spread over different
parts of the organization. It increases employee identity with that specialization or profession.
Direct supervision is easier in functional structures because managers oversee people with
common issues and expertise. 30
The functional structure also has limitations.3 t Grouping employees around their skills
tends to focus attention on those skills and related professional needs rather than on the
company's product/service or client needs. Unless people are transferred from one function
to the next, they might not develop a broader understanding of the business. Compared
with other structures, the functional structure usually produces higher dysfunctional conflict
and poorer coordination in serving clients or developing products. These problems occur
because employees need to work with co-workers in other departments to complete organizational tasks, yet they have different subgoals and mental models of ideal work. Together,
these problems require substantial formal controls and coordination when people are
organized around functions.
Divisional Structure
DIVISIONAL
STRUCTURE:
a ty pe of
departmentali za tion
tha t groups
employees mou n d
geograph ic ilreas,
outp uts (products/
services), or clients
The divisional structure (sometimes called the multidivisional or M-form structure)
groups employees around geographic areas, outputs (products/services), or clients. Exhibit 12.1
illustrates these three variations of divisional structure. The geographic structure
organizes employees around distinct regions of the country or globe. Exhibit 12.l(a) illustrates a geographic divisionalized structure recently adopted by Hanson PLC, one of the
world's largest building materials companies. The product/service structure organizes work
around distinct outputs. Exhibit 12.l(b) illustrates this type of structure at Philips. The
Dutch electronics company divides its workforce mainly into five product divisions, ranging
from conswner electronics to medical systems. The client structure represents the third
fonn of divisional structure, in which employees are organized around specific customer
groups. Exhibit 12.l(c) illustrates the customer-focused structure similar to one adopted by
the U.S. Internal Revenue Service.32
Which fonn of divisionalization should large organizations adopt? The answer depends
mainly on the primary source of environmental diversity or uncertainty. 33 Suppose an organization has one type of product sold to people across the country. If customer needs vary across
regions, or ifstate governments impose different regulations on the product, then a geographic
structure would be best to be more vigilant of this diversity. On the other hand, if the company
sells several types of products across the country and customer preferences and government
regulations are similar everywhere, then a product structure would likely work best.
:chapter 12 II (Organizational Structure)
[Exhibit 12.1] Three Types of Divisional Structure
(a) Geographic structure
Chief Executive
Officer
(b) Product/service structure
(c) Client structure
CommiPioner
(Chief Executive)
Coca-Cola, Nestle, and many other food and beverage companies are organized mainly
around geographic regions because consumer tastes and preferred marketing strategies
vary considerably around the world. Even though McDonald's makes the same Big Mac
around the planet, it has more fish products in Hong Kong and more vegetarian products in
India in line with traditional diets in those countries. Philips, on the other hand, is organized around products because consumer preferences around the world are similar within
each group. Hospitals from Geneva, Switzerland, to Santiago, Chile, purchase similar medical equipment from Philips, whereas manufacturing and marketing of these products are
quite different from Philips' consumer electronics business.
Many divisionalized companies are moving away from geographical structures.34 One
reason is that clients can purchase online and communicate with businesses from almost
anywhere in the world, so local representation is less critical. Reduced geographic variation
is another reason for the shift away from geographic structures; freer trade has reduced
government intervention for many products, and consumer preferences for many products
and services are becoming more similar (converging) around the world. The third reason is
that large companies increasingly have global business customers who demand one global
point of purchase, not one in every country or region.
Evaluating the Divisionalized Structure
The divisional form is a building block structure; it accommodates growth relatively easily
and focuses employee attention on products or customers rather than tasks. Different products,
services, or clients can be accommodated by sprouting new divisions. These advantages
are offset by a number of limitations. First, the divisionalized structure tends to duplicate
[263]
{264)
:part IV II (Organizational Processes)
resources, such as production equipment and engineering or information technology expertise. Also, unless the division is quite large, resources are not used as efficiently as in functional
structures where resources are pooled across the entire organization. The divisionalized
structure also creates silos of knowledge. Expertise is spread across several autonomous
business units, which reduces the ability and perhaps motivation of these people to share
their knowledge with counterparts in other divisions. In contrast, a functional structure
groups experts together, which supports knowledge sharing.
Team-Based Structure
TEAM-BASED
STRUCTURE:
a type of
departmentalization
built <Jround
self·directed teams
that complete an
entire piece of work
As an alternative to the functional structure, BioWare's cofoWlders considered a structure
based entirely around teams. As was mentioned in the opening vignette to this chapter, this
structure would have BioWare employees organized aroWld several projects, each with its own
autonomous team. A team-based structure is built around self-directed teams that complete
an entire piece of work, such as manufacturing a product or developing an electronic game.
This type of structure is highly organic. There is a wide span ofcontrol because teams operate
withminimal supervision. In extreme situations, there is no formal leader, just someone selected
by other team members to help coordinate the work and liaise
with top management. Team structures are highly decentralized
because almost all day-to-day decisions are made by team members rather than someone further up the organizational hierarchy.
Finally, many team-based structures have low formalization
because teams are given relatively few rules about how to organize their work. Instead, executives assign quality and quantity
output targets and often productivity improvement goals to each
team. Teams are then encouraged to use available resources and
their own initiative to achieve those objectives.
Team-based structures are usually found within the manufacturing operations of larger divisionalized structures. For
example, auto-parts giant TRW Automotive has a team-based
structure in many of its 200 plants, but these plants are linked
together within the company's divisionalized structure. However,
a small number of firms apply the team-based structure from
top to bottom. Perhaps the most famous example of this is
W. L. Gore & Associates, where almost all associates work on
teams and no one is the boss.
W. L Gore's Structural Fabric: Extreme Teams
W. L Gore & AssocilltBs Inc. has an extremoteam·based
organize1ional structllre that eliminates the traditional
hierarchy. Most emplovaes (or •associates.. as they are
known) at the Newark, Delaware-based manufacturer of
fabrics (Gore-Tax), electronics, industrial, and medical
products work atfour dozen self-sufficient manufacturing
and sales offices around tho world. Associates make
day-to-day decisions within 1heir expertise without
approval from anyone higher up. Bigger issues, such as
hiring and compensating steff, are decided by teams.
Each facility is deliberamly limited to about200 people so
they can coordinate more effectively through infonnal
communication. Within those units, new projects are
started throu gh individual initiative and support
from others.as
Evaluating the Team-Based Structure
The team-based organization represents an increasingly popular
structure because it is usually more responsive and flexible. 36
It tends to reduce costs because teams have less reliance on
formal hierarchy (direct supervision). A cross-functional team
structure improves communication and cooperation across
traditional boundaries. With greater autonomy, this structure
also allows quicker and more informed decision making. 37
Against these benefits, the team-based structure can be
costly to maintain due to the need for ongoing interpersonal
skills training. Teamwork potentially takes more time to coordinate
than formal hierarchy during the early stages of team development. Employees may experience more stress due to increased
ambiguity in their roles. Tham leaders also experience more stress
due to increased conflict, loss of functional power, and unclear
[265]
:chapter 12 II (Organizational StNCture)
career progression ladders. Also, team structures suffer from duplication of resources and
potential competition (and lack of resource sharing) across teams. 38
Matrix Structure
Throughout this chapter we have referred back to the dilemma that Ray Muzyka and Greg
Zeschuk faced regarding the best choice of an organizational structure for BioWare. The
company could adopt a functional structure, but this might not generate an optimal level of
teamwork or commitment to the final product. Alternatively, BioWare's employees could
be organized into a team-based structure. But having several teams would duplicate
resources, and possibly undermine resource sharing among people with the same expertise
across teams.
After carefully weighing the various organizational structure options, Muzyka and
Zescbuk adopted a matrix structure to gain the benefits of both a functional structure and
a project-based (team) structure. BioWare's matrix structure, which is similar to the diagram
in Exhibit 12.2, is organized around both functions (art, audio, programming, etc.) and
team-based game development projects. Employees are assigned to a cross-functional team
responsible for a specific.game project, yet they also belong to a permanent functional unit
from which they are redistributed when their work is completed on a particular project. 39
Muzyka and Zescbuk say the matrix structure encourages employees to think in terms of
the final product, yet keeps them organized around their expertise to encourage knowledge
sharing. "The matrix structure also supports our overall company culture where BioWare is
the team, and everyone is always willing to help each other whether they are on the same
project or not," they add. BioWare's matrix structure bas proven to be a good choice, particularly as the company has now grown to more than 300 employees working on more
than a half-dozen game projects.
BioWare's structure, in which project teams overlap with functional departments, is just
one form of matrix structure. Another variation, which is common in large global firms, is
MATRIX
STRUCTURE:
a type of
departmentalizatio n
that overl ays tw o
organiziltional
forms in o rder to
leverage the
benefits of both
I
I
•
[Exhibit 12.2] Project-Based Matrix Structure (similar to BloWare's structure)
I
0
BloWara employee
[266]
:part IV II (Organizational Processes)
to have geography on one axis and products/services or client groups on the other. Procter
& Gamble recently moved toward this type of global matrix structure with country managers (called market development organizations) on one axis and global business units representing global brands on the other axis. Previously, P&G had a geographic divisional
structure, which gave too much power to country managers and not enough power or priority to globalizing its major brands (e.g., Pantene, Tide, Pringles). P&G's leaders believe
that the new matrix structure will balance this power, thereby supporting its philosophy of
thinking globally and acting locally. 40
Evaluating the Matrix Structure
The matrix structure usually opthnizes the use of resources and expertise, making it ideal
for project-based organizations with fluctuating workloads. When properly managed, it
improves communication efficiency, project flexibility, and innovation compared to purely
functional or divisional designs. It focuses employees on serving clients or creating products, yet keeps expertise organized around their specialization so knowledge sharing
improves and resources are used more efficiently. The matrix structure is also a logical
choice when, as in the case of Procter & Gamble, two different dimensions (regions and
products) are equally important. Structures determine executive power and what is important;
the matrix structure works when two different dimensions deserve equal attention.
In spite of these advantages, the matrix structure has several well-known problems. 41
One concern is that it increases goal conflict and ambiguity. Employees working at the matrix level have two bosses and, consequently, two sets of priorities that aren't always aligned
with each other. Project leaders might squabble over specific employees who are assigned
to other projects. They may also disagree with employee decisions, but the employee's
functional leader has more say than the project leader as to the individual's technical
competence. Aware of these concerns, BioWare holds several synchronization meetings
each year involving all department directors (art, design, audio, etc.), producers (i.e., game
project leaders), and the hwnan resources manager. These meetings sort out differences
and ensure that staff members are properly assigned to each game project.
Another challenge is that the existence of two bosses can dilute accountability. In a
functional or divisionalized structure, one manager is responsible for everything, even the
most unexpected issues. But in a matrix structure, the Wlusual problems don't get resolved
because neither manager takes ownership of them.42 The result of conflict and ambiguity in
matrix structures is that some employees experience more stress, and some managers are
less satisfied with their work arrangements.
>learningobjectives
After reading the next section, you should be able to:
9. Identify four characteristics of external environments and discuss the preferred
organizational structure for each environment.
10. Summarize the influences of organizational size, technology, and s trategy on
organizational structure.
>Contingencies of Organizational Design
Most organizational behavior theories and concepts have contingencies- ideas that work
well in one situation might not work as well in another situation. This contingency approach is certainly relevant when choosing the most appropriate organizational structure. 43
In this section, we introduce four contingencies oforganizational design: external environment,
size, technology, and strategy. Before doing so, however, we need to warn you that this
[276]
:part IV II (Organizational Processes)
[Exhibit 13.1] Organi~ational Culture Assumptions, Values, and Artifacts
Artifacts
• Stories/legends
• Rituals/ceremonies
Visible
• Organizational language
• Physical structures/decor
!====~===--=j =======-:-·:. :=-=Shared values
• Conscious beliefs
• Evaluates what is good or bad,
right or wrong
••
Invisible
Shared assumptions
• Unconscious, taken·for-granted
perceptions or beliefs
• Mental models of Ideals
I:'
Source; Based on iofonnation in E. H. Schein, Orgdnizational Culture and Leadership: A Dynamic View (San Francisco:
Jossey-Bus, 1985).
organizational culture in the form of shared values, which are values that people within
the organization or work unit have in common and place near the top of their hierarchy of
values.5 Organizational culture also consists of shared assumptions-a deeper element that
some experts believe is really the essence of corporate culture. Shared assumptions are
unconscious taken-for-granted perceptions or beliefs that have worked so well in the past
that they are considered the correct way to think and act toward problems and opportunities.
Shared assumptions are so deeply ingrained that you probably wouldn't discover them by
surveying employees. Only by observing these employees, analyzing their decisions, and
debriefing them on their actions would these assumptions rise to the surface.
Content of Organizational Culture
Organizations differ in their cultural content; that is, the relative ordering of values. Dell's
culture places efficiency and competitiveness far above innovation and aesthetics, whereas
the culture at Apple Inc. gives innovation and style equal or higher priority to cost efficiency. Many experts have tried to classify corporate culture into a few easy-to-remember
groups. One of the most popular and respected models identifies seven corporate cultures
(see Exhibit 13.2). Another model identifies eight organizational cultures arranged around
a circle, indicating that some cultures are opposite to each other. A rules-oriented culture is
opposite to an innovation culture, an internally-focused culture is opposed to an externallyfocused culture, a controlling culture is opposite to a flexible culture, and a goal-oriented
culture is opposite to a supportive culture.6
These organizational culture models and surveys are popular with corporate leaders faced
with the messy business of diagnosing their company's culture and identifying what kind
of culture they want to develop. However, models that organize cultures into seven or eight
:chapter 13 II (Organizational Culture)
[Exhibit 13.2] Organizational Culture Profile Dimensions and Characteristics
Innovation
Expenmentrng, opportumty seekmg, risk taking, few rules. low cautrousness
Stability
Predictability, security, rule-oriented
Respect for peop'e
Fairness. tolerance
Outcome orientation
Action -oriented, high expectations, results-oriented
AttentiOn to deta1l
Precise. analytiC
Team orientation
Collaboration, p eople-oriented
Aggressiveness
Competitrve low emphasis or socral responsibility
Scurr:.: Based on information in C. A. O'Reilly III, I. Chatman, 8lld D. F. Caldwell, "People and O!ganizatioual Culnn: A Profile
Comparlsoo Approach to Assessing Petsoo-Organizalioo Fit," .A.cadf!lff)' ofMaP~agemlnt Jounta/34, oo. 3 (1991), pp. 487-SlB.
simple categories mask the reality that there are dozens ofindividual values, so there are likely
as many organizational values. Furthermore, organizational culture consists of assumptions
that are too deeply ingrained to be measured through surveys. Overall, organizational culture
surveys cannot replace a much more complete analysis of an organization's culture.
Organizational Subcultures
When discussing organizational culture, we are actually referring to the dominant culture,
that is, the themes shared most widely by the organization's members. However, organizations are also comprised of subcultures located throughout its various divisions, geographic
regions, and occupational groups. 7 Some subcultures enhance the dominant culture by
espousing parallel values and assumptions; other subcultures emphasize somewhat different
but not competing values; still others are called countercultrtres because they directly oppose
the organization's dominant values.
Subcultures, particularly countercultures, potentially create conflict and dissension
among employees, but they also serve two important functions. 8 First, they maintain the
organization's standards of performance and ethical behavior. Employees who hold countercultural values are an important source of surveillance and critique over the dominant order.
They encourage constructive conflict and more creative thinking about how the organization
should interact with its environment. Subcultures prevent employees from blindly following
one set of values and thereby help the organization to abide by society's ethical values.
The second function of subcultures is that they are the spawning grounds for emerging
values that keep the frrm aligned with the needs of customers, suppliers, society, and other
stakeholders. Companies eventually need to replace their dominant values with ones that are
more appropriate for the changing environment. If subcultures are suppressed, the organization may take longer to discover and adopt values aligned with the emerging environment.
>Deciphering Organizational Culture
through Artifacts
We can~t directly see an organization's cultural assumptions and values. Instead, as Exhibit 13.1
illustrated earlier, we decipher organizational culture indirectly through artifacts.
Artifacts are the observable symbols and signs of an organization's culture, such as the
way visitors are greeted, the organization's physical layout, and how employees are
lEARNING
OBJECTIVES
After reading this chapter, you should be able to do the following:
: 1. Define leadership and followership.
: 2. Discuss the differences between leadership and
management and between leaders and managers.
: 3. Evaluate the effectiveness of autocratic, democratic, and
laissez-faire leadership styles.
: 4. Explain initiating structure and consideration, leader
behaviors, and the Leadership Grid.
: 5. Evaluate the usefulness of Fiedler's contingency theory of
leadership.
: 6. Compare and contrast the path-goal theory, leader-member
exchange, and the Situational Leadership• model.
: 7. Distinguish among transformational, charismatic, and
authentic leaders.
: 8. Discuss the characteristics of effective and dynamic
followers.
273
274
Chapter 11 Leadership and Followership
THINKING AHEAD:: VIRGIN GROUP, LTD.
Richard Branson-Not Your Average Leader
Sir Richard Branson, head of Virgin Group, Ltd .• is a
lot like other corporate CEOs ... and yet nothing like
them at all. Like many corporate leaders, he starts
his day early, often at 4:30A.M. But unlike most of
them, he typically begins it lying in a hammock in his
swim trunks, thinking through the business of the
day, and jotting notes or writing letters in a small
black book. Like many other CEOs, Branson is comfortable discussing technology. having been invited
to speak at a recent Microsoft conference; unlike
most of them, he never uses a computer, preferring
to jot down e-mail messages, which he then dictates
to his administrative assistant. For urgent reminders.
he simply writes a note on the back of his hand.
Branson's eccentricities extend to other parts of
his life. He sports a costly Breitling watch, a gift from
its maker, which includes an emergency transm itter to summon a rescue helicopter; alas. the watch
shows the incorrect time, since the pin to change
the time is next to the pin for summoning help, and
: 1. Define leadership
and foflowership.
leadership
The process of guiding
and directing the behavior
of people in the work
environment
formal leadership
Offidally sanctioned leader·
ship based on the authority
of a formal position.
informal leadership
Unofficial leadership
accorded to a person by
other members of the
organization.
followershi p
The process of being guided
and directed by a leader in
the work environment
Branson can never remember which is which. More
than once, he has been caught without cash for a
cab fare or lunch, although his net worth is estimated to be more than $3.2 billion. 1 His preferred
briefcase is an athletic duffle bag.
Branson's unique personal style influences every
aspect of his companies. which have succeeded in a
diverse array of markets from bridal gowns to airlines. In each case, Richard Branson's peculiar perspective on life has helped shape the company's
unique and creative business strategies and the
way it competes against more traditional firms.2
Recently, Sir Branson scaled new heights in Britain's
"stiff upper lip" culture by setting up a nonprofit
blood bank to store umbilical cord blood samples to
be used in stem cell research. This move is seen by
many as a risky one as stem research has garnered a
lot of attention not only for the infinite promise it
offers in helping treat diseases such as Alzheimer's
and Parkinson's but also over its moral validity. 3
Leadership in organizations is the process of guiding and directing the
behavior of people in the work environment. The first section of the chapter
distinguishes leadership from management. Ff>rmal leadership occurs when an
organization officially bestows on a leader the authority to guide and direct
others in the organization. Informal leadership occurs when a person is unofficially accorded power by others in the organization and uses influence to
guide and direct their behavior. Leadership is among the most researched topics
in organizational behavior and one of the least understood social processes in
organizations.
Leadership has a long, rich history in organizational behavior. In this
chapter, we explore many of the theories and ideas thar have emerged along the
way in that history. To begin, we examine the differences between leaders and
managers. Next, we explore the earliest theories of leadership, the trait theories,
which try to identify a set of traits that leaders have in common. Following
the trait theories, behavioral theories were developed, proposing that leader
behaviors, not traits, are what counts. Contingency theories followed soon after.
These theories argue that appropriate leader behavior depends on the situation
and the followers. Next, we present some exciting contemporary theories of
leadership, known as the inspirational theories of leadership, followed by the
"hot" and exciting new issues that are arising in leadership. We end by discussing followership and providing you with some guidelines for using this leadership knowledge.
-
1
' [1
1
Chapter 11 Leadership and Followership
~
LEADERSHIP AND MANAGEMENT
John Kotter suggesrs that leadership and management are two distinct, yet
complementary systems of action in organiz.ations.4 Specifically, he believes that
effective leadership produces useful change in organizations and that good management controls complexity in the organization and its environment. Fred Smith,
who founded Federal Express (FedEx) in 1971, has been producing constant
change since the company's start. Fed.Ex began with primarily high-dollar medical and technology shipments. The company recently bought Kin.ko's to extend
its reach from the back office to the front.s Bill Gates has successfully controlled
complexity-Microsoft has grown exponentially from early rimes when his company's sole product was DOS. Healthy organizations need both effective leadership
and good management.
For Kotter, the management process involves (1) planning and budgeting,
(2) organizing and Staffing, and (3) controlling and problem solving. The management process reduces uncertainty and stabilizes an organization. Alfred P. Sloan's
integration and stabilization of General Motors after irs early growth years are an
example of good management.
In contrast, the leadership process involves (1) setting a direction for the
organization; (2) aligning people with that direction through communicarion; and
(3) motivating people to action, partly through empowerment and pardy through
basic need gratification. The leadership process creates uncertainty and change in
an organization. Donald Peterson's championing of a quality revolution at Ford
Moror Company is an example of effective leadership.
An advocate for stability and the status quo, Abraham Zaleznik proposes
thar leaders have distinct personalities that stand in concrast to the personalities
of a manager.6 Zaleznik suggests that both leaders and managers make a valuable
contribution to an organization and that each one's contribution is different.
Whereas leaden agitate for change and new approaches, managers advocate stability and the status quo. Sir Branson is a leader who constantly strives for change by
acquiring new busjness divisions and adopting unorthodox business moves. For
example, cabin crews of rival airline British Airways (BA) went on strike and BA
had to caned several flights. Sir Branson made a bold move by announcing free
first class train tickets on Virgin Trains for anyone with a BA ticket for the days
when flighrs were cancelled! This move caused BA much embarrassment among its
customer base, and it rushed ro make several accommodations for passengers who
were affecred by the cancellations.7 There is a dynamic tension between leaders
and managers that makes it difficult for each to understand the other. Leaders and
managers differ along four separate dimensions of personality: attitudes toward
goals, conceptions of work, relationships with ocher people, and sense of self. The
differences between these two personality types are summarized in Table 11.1.
Zaleznik's distinction between leaders and managers is similar to the distincrion
made between tranSactional and tranSformational leaders, or between leadership
and supervision. Transactional leaders use formal rewards and punishment to engage in deal making and contractual obligarions, which you will read about later
in this chapter.
It has been proposed that some people are strategic leaders who embody both
the srability of managers and the visionary abilities of leaders. Thus, strategic
275
I~
I
: 2. Discuss the differences between leadership and management
and between leaders
and managers.
~
I
:
I
:
j
leader
An advocate for change
and new approaches to
problems.
!
i
I
manager
An advocate for stability
and the status quo.
It .
276
Chapter 11 Leadership and Followership
TABLE 11.1
J
Leaders and Managers
·.
PERSONALITY
DIMENSION
Attitudes toward goals
Conceptions of work
Relationships
with others
Sense of self
MANAGER
LEADER
Has an impersonal, passive,
functional attitude; believes
goals arise out of necessity
and reality
Views work as an enabling
process that combines
,people, ideas, and things;
seeks moderate risk through
coordination and balance
Avoids solitary work activity,
preferring to work with
others; avoids close,
intense relationships;
avoids conflict
Is once born; makes a
straightforward life adjust·
ment; accepts life as it is
Has a personal and active
attitude; believes goals
arise from desire and
imagination
looks for fresh approaches
to old problems; seeks high·
risk positions, especially
with high payoffs
Is comfortable in solitary
work activity; encourages
close, intense working
relationships; is not
conflict averse
Is twice born; engages in
a struggle for a sense of
order in life; questions life
SOURCE: Reprinted by permission of Harvard Business Review. From • Managers and leaders: Are They Different?·
by A. Zaleznik (January 2004). Copyright © 2004 by the Harvard Business School Publishing Corporation; all rights
reserved.
leaders combine the best of both worlds in a synergistic way. The unprecedented
success of both Coca-Cola and Microsoft suggests that their leaders, the late
Robert Goizueta (of Coke) and Bill Gates, were strategic leaders.8
: 3. Evaluate the
effectiveness of autocratic, democratic, anc;l
laissez-faire leadership
styles.
: 4. Explain initiating
structure and
consideration, leader
behaviors, and the
Leadership Grid.
!.J EARLY TRAIT THEORIES
The first studies of leadership attempted to idemify what physical attributes,
personality characteristics, and abilities distinguished leaders from other members
of a group. 9 The physical attributes considered have been height, weight, physique,
energy, health, appearance, and even age. With regard to leader abilities, attention has been devoted to such constructs as social skills, intelligence, scholarship,
speech fluency, coop~rativ~ness, and insight. In this area, there is some evidence
that leaders are more intelligent, verbal, and cooperative and have a higher level
of scholarship than the average group member. This line of research yielded some
interesting findings. However, very few valid generalizations emerged from this
line of inquiry. The trait theories have had very limited success in being able to
identify the universal, distinguishing attributes of leaders.
!.J BEHAVIORAL THEORIES
Behavioral theories emerged as a response co the deficiencies of the trait theories.
Trait theories told us what leaders were like, but didn't address how leaders behaved.
Three theories are the foundations of many modern leadership theories: the Lewin,
Uppitt, and White studies; the Ohio State studies; and the Iv1ichigan studies.
Chapter 11 Leadership and Followership
The earliest research on leadership style, conducted by Kurt Lewin and his
students, identified three basic styles: autocratic, democratic, and laissez-faire. 10
Leaders with an autocratic style use rules and regulations to run the work environment. The leader with a democratic style is collaborative, responsive, and
interactive in relationships and emphasizes rules and regulations less than the
autocratic leader. The leader with a IAissez-faire style abdicates the authority
and responsibility of che position, and this style often results in chaos. The
second major behavioral leadership perspective stemmed from the leadership
research program at The Ohio State University. This research v.ith pilots and
their aircrews identified two major classes of leader behaviors known as initiating structure and consideration. 11 •12 Initiating structure is leader behavior aimed
at defining and organizing work relationships and roles, as well as establishing
clear patterns of organization, communication, and ways of getting things done.
umsideration is leader behavior aimed at nurturing friendly, warm working relationships, as well as encouraging mutual trust and interpersonal respect within
the work unit. These two leader behaviors are independent of each other. That
is, a leader may be high on both, low on both, or high on one while low on the
other. The Ohio State studies were intended to describe leader behavior, not to
evaluate or judge behavior. 13
Another approach to the study of leadership, developed at the University
of Michigan, suggests that the leader's style has very important implications
for the emotional atmosphere of the work environment and, therefore, for the
followers who work under that leader. Two styles ofleadership were identified:
employee oriented and production oriented. 14 A production-oriented style
leads to a work environment characterized by constant influence attempts on
the part of the leader, either through direct, close supervision or through the
use of many written and unwritten rules and regulations for behavior. The
focus is clearly on getting work done. In comparison, an employee-oriented
leadership style leads to a work environment that focuses on relationships. The
leader exhibits less direct or less close supervision and establishes fewer written or unwritten rules and regulations for behavior. Employee-oriented leaders
display concern for people and their needs. These three groups of studies (the
Lewin, Lippitt, and White studies; Ohio Srate studies; and Michigan studies)
taken together form the building blocks of many recent leadership theories.
What the studies have in common is chat two basic leadership styles were
identified, with one focusing on tasks {autocratic, production oriented, initi~
ating structure) and one focusing on people (democratic, employee oriented,
consideration). Use Challenge 11.1 to assess your supervisor's task- versus
people-oriented styles.
THE LEADERSHIP GRID:
ExtENSION
A
277
autocratic style
Astyle of leadership in
which the leader uses
strong. directive, controlling actions to enforce the
rules, regulations, activities, and relationships in
the work environment.
democratic style
A style of leadership in
which the leader takes
collaborative, responsive,
interactive actions with followers concerning the work
and WOlle environment.
laissez-faire style
A style of leadership in
which the leader fails to
accept the responsibilities
of the position.
initiating structure
Leader behavior aimed at
defining and organizing
work relationships and
roJes, as well as establishing dear patterns of
organization, communication, and ways of getting
things done.
consideration
leader behavior aimed at
nurturing friendly, warm
working relationships.
as well as encouraging
mutual trust and interpersonal respect within the
WOfk unit
CONTEMPORARY
Robert Blake and Jane Mouton's Leadership Grid, originally called the Managerial Grid, was developed with a focus on attitudes. 15 The two underlying dimensions of the grid are labeled Concern for Results and Concern for People. These
twO attitudinal dimensions are independent of each other and in different combinations fOrm various leadership styles. Blake and Mouton originally identified five
leadership Grid
An approach to understanding a leader's or
manager's concern for
results (production} and
concern for people.
Chapter 11 Leadership and Foffowership
High
9
1,9
9,9
279
1,9 Country Club Management:
Thoughtful attention to the needs of the
people for satisfying relationships leads to a
comfortable, friendly organization
atmosphere and work tempo.
8
9,9 Team Management:
Work accomplishment is from comm1tted
people; interdependence through a
"common stake" in organization purpose
leads to relationships of trust and respect
7
t
0
6
Gl
CL
...
.ec::
...
8c:
5,5
5
5,6 Middle-of-the-Road Management:
Adequate organization performance is
possible through balanc~ng the necessity
to get work out while maintaining morale
of people at a satisfactory level.
4
0
(.)
3
2
1
Low
1,1
1
Low
2
3
4
7
5
6
Concem for Results
In Opportunlsltlc Management,
people adapt and shift to any grid
styie needed to gain the maximum
advantage. Performance occurs
according to a system of selfish
gain. Effort Is given only for an
advantage for personaJ gain.
8
•
9 ®
High
1,1 lmpovwlahed Management:
Exertion of mrnlmum effort to get requrred
work done ts appropriate to sustain
orgalllzatlon memberShip.
9.1 Authority-Compliance Management:
Eff1C1ency m operattons results from
arrangmg cond1llons of work m such a way
that human elements 1ntertere to a
mrmmum degree
9+9: Paternalism/Maternalism
Management:
Reward and approval are bestowed
to people m return for loyalty and
obedience; failure to comply leads
to punishment.
SOURa: "The leadership GrieP• figure, Paternalism F"~gure and Opportunism from Leadership Di/emmas-(jJid
11.11
Solutions. by Robert R. Slake and Anne Adams McCanse (formerly the Managerial Grid by Robert R. Blake and Jane
FIGURE
S. Mouton). Houston: Gulf Pub~shing Company (Grid figure: p. 29; Paternalism Figure: p. 30; OpportiJI\ism Figure:
p. 31). Copyright l99l by Blake and Mouton, and Scientific Methods, Inc. Reproduced by permission of the owners.
The leadership Grid
distinct managerial styles, and further development of the grid has led ro the seven
distinct leadership styles shown in Figure 11.1.
The organization man 1n1tnager (5.5) is a middle-of-the-road leader who has
a medium concern for people and production. This leader attempts to balance a
concern for both people and production without a commitment to either.
organization man
manager (5,5)
A middle-of-the-road
leader.
280
Chapter 11 Leadership and followership
authority-compliance
manager (9, 1)
A leader who emphasizes
efficient production.
country club manager
(1,9)
A leader who creates a
happy, comfortable work
environment.
team manager (9,9)
A leader who builds a
highly productive team of
committed people.
impoverished
manager (1, 1)
A leader who exerts just
enough effort to get by.
paternalistic "father
knows best" manager
(9+9)
A leader who promises
reward and threatens
punishment.
opportunistic "what's
in it for me" manager
(Opp)
A leader whose style aims
to maximize self-benefit.
The authority-compliance rnan4ger (9,1) has great concern for production and
little concern for people. This leader desires tight control in order to get tasks done
efficiendy and considers creativity and human relations unnecessary. Authoritycompliance managers may become so focused on running an efficient organization
that they accually use tactics such as bullying. Some authority-compliance managers
may intimidate, verbally and mentally attack, and otherwise mistreat subordinates.
This form of abuse is quite common, with one in six U.S. workers reponing that
they have been bullied by a manager. 16 The country club manager (1,9) has great
concern for people and little concern for production, anempts to avoid conflict, and
seeks co be well liked. This leader's goal is to keep people happy through good interpersonal relations, which are more import.ant to him or her than the task (Thls style
is not a sound human relations approach but rather a soft Theory X approach.)
The team manager (9,9) is considered ideal and has great concern for both
people and production. This leader works to motivate employees to reach their
highest levels of accomplishment, is flexible, responsive to change, and understands the need for change. The impoverished manager (1,1) is often referred to as
a laissez-faire leader. This leader has little concern for people or production, avoids
taking sides, and stays out of conflicts; he or she does just enough to get by. Two
new leadership styles have been added to these five original leadership styles within
the grid. The paternalistic jather knows best" manager (9 + 9) promises reward
for compliance and threatens punishment for noncompliance. The opportunistic
"what's in it for me" matJagn- (Opp) uses the style that he or she feels will return
him or her the greatest self-benefits.
The Leadership Grid is distinguished from the original Ohio State research
in two important ways. First, it has attitudinal overtones that are not present in
the original research. Whereas the Ohio State researchers aimed to describe leader
behavior, the grid addresses both the behavior and the attitude of the leader. Second, the Ohio State approach is fundamentally descriptive and nonevaluative,
whereas the grid is normative and prescriptive. Specifically, the grid evaluates the
team manager (9,9) as the very best style of managerial behavior. This is the basis
on which the grid has been used for team building and leadership training in an
organization's development. & an organizational development method, the grid
aims to transform the leader in the organization to lead in the "one best way,"
which according to the grid is the team approach. The team style is one that combines optimal concern for people with optimal concern for results.
,-------~ think critically ~--~~~~-
What are the major limitations of the trait and behavioral approaches
to leadership?
!I CONTINGENCY THEORIES
Contingency theories involve the belief that leadership style must be appropriate for the particular situation. By their nature, contingency theories are "if-then"
theories: If the situation is _ _ , then the appropriate leadership behavior is _ _ .
We examine four such theories, including Fiedler's contingency theory, path-goal
theory, normative decision theory, and situational leadership theory.
ENCS6201 Professional Practice and Responsibility ©
Lesson 6 Transcript: Values in Professional Relationships
Introduction to Professional Values and Relations
Values in professional relationship.
In this class we will consider four values that are key to developing an ethical
professional relationship in your careers, especially in the Quebec context. These
values are trust, loyalty, dignity, and honesty.
Click on each of these tabs for more details about each value.
Trust
What is trust? It is a key value underlying a professional relationship. Trust is the ability
to rely confidently on people, objects or circumstances. If we have trust in someone or
something, we are more likely to rely on them while making a decision to do something.
For example, since we trust our computer to process our work and store it reliably, we
have come to rely on them. This process of reliance however, introduces risk in a
relationship of trust.
Why is Trust Important?
Why is trust important to a professional relationship? Trust is important for a
professional relationship because in a legal sense without trust, there can be no
professional relationship. In legal terms, a professional relationship is a fiduciary
relationship and a professional is a fiduciary.
A fiduciary is a person in whom another has placed utmost trust and confidence to
manage their property or money.
In personal lives, a good example of a fiduciary relationship is the relation between a
parent and a child where the parent is a fiduciary. A fiduciary relationship, therefore, is
one where the fiduciary has the obligation to act for the benefit of another. Violating trust
violates the nature of the relationship.
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1
Trust Building Obligations
Trust building obligations. For an engineer practicing in Quebec, the code of ethics for
engineers directs engineers to create a bond of trust between the professional and the
client or employer. A bond of trust suggests that the professional relationship between a
professional engineer and the client or employer should be based on trust.
According to the code of ethics, it is a binding obligation for all engineers to create a
bond of trust. In order to build the bond of trust, the engineer is expected to take several
measures. These measures include disclosure of limits, integrity, and transparency,
availability and diligence, independence and impartiality, confidentiality, and fees. While
these measures are mandated for all engineers, they're more relevant for the
independent engineer who practices alone, primarily because many of these measures
are inculcated by organizational policies for engineers employed in an organization.
Each of these aspects of trust building is described in detail below.
Disclosure of Limits
Disclosure of limits. Full disclosure to the client of the abilities and limitations of an
engineer is a basic building block for trust by responsibly disclosing the ability of the
engineer in terms of material resources, equipment, finances, space, or intellectual
resources, people skills, or time resources. The engineer is sending a clear message to
the client about their abilities, that the client does not overestimate the ability of the
engineer to deliver. While disclosing resources it is important for the engineer to do so
in a responsible fashion so that the engineer is not seen to be reckless, overestimates
their abilities, or a naysayer, underestimates their abilities.
Integrity & Transparency
Integrity and transparency. An engineer must act in a fashion that demonstrates
integrity and transparency in their professional work.
One means of demonstrating integrity and transparency is to inform the client at the
beginning of the terms of agreement in writing. Subsequently, the engineer should
ensure a document trail in all interactions between engineer and client. By documenting
all interactions, the engineer sends a clear message that they are acting in a
transparent fashion.
Integrity and transparency can be fostered by furnishing explanations as in when
requested by the client. When these explanations are provided, it is important to ensure
that contradictory explanations are not provided. Furthermore, when the client ignores
the engineer's advice, the engineer must inform the client in writing of the
consequences for ignoring their advice.
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2
Availability & Diligence
Availability and diligence. The engineer must demonstrate reasonable availability and
diligence in professional practice. A good way of demonstrating this is by making known
the engineer's working hours and contacts and then ensuring the client can reach the
engineer during these hours.
Similarly, the engineer must give advance notice if for some reason they wish to cease
working for the client. The engineer can only cease to work for the client for some
clearly defined grounds. These grounds are if the work involves illegal or fraudulent
acts, if the client ignores the engineer's advice, and if there is a conflict of interest. We
will describe what is meant by conflict of interest later.
Independence & Impartiality
Independence and impartiality. It is of utmost importance that the engineer ensure that
their professional independence and impartiality is maintained at all costs. In order to do
so, the engineer is required to take precautions to safeguard their independence and
impartiality. One key fashion to do so is to avoid situations of conflict of interest. Another
measure is to subordinate one's personal interest to the interest of the client.
Another means of ensuring impartiality is to ensure that the engineer does not receive
fees for services provided from anyone else other than the client or the clients
representative. These measures may seem minor but are important to ensure that the
engineer is not just impartial and independent in actions, but is also perceived to be so.
Confidentiality
Confidentiality. It is of utmost importance that the engineer safeguard the confidentiality
of the information provided by the client. In doing so, the engineer needs to remember
that they are not authorized to share any of the client’s information unless explicitly
released from secrecy by the client or requested to do so by a court of law.
In addition to not releasing the information engineer is expected to not use the client's
information in a way that will prejudice the client or accept another mandate that will
involve disclosing a previous client’s information.
Fees
Fees. An engineer is expected to charge fair and reasonable fees that correspond to the
services rendered. The expectation is that neither will an engineer overcharge the client,
nor will the engineer provide services for free. In fact, the engineer is forbidden from
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3
providing services for free. Accordingly, the client should be given a written explanation
for the fees that were charged.
Conflict of Interest
Conflict of interest. As we had mentioned earlier, a professional relationship with a client
or employer is considered a fiduciary relationship. Such a relationship creates a legal
obligation for the professional to always act in the positive interests of the client.
One of the factors that can compromise the fiduciary nature of this relationship is
conflict of interest. Conflict of interest can be defined as the existence of a parallel
interest that could threaten or appear to threaten the exercise of good judgment of the
typical professional.
A key point is that conflicts of interest affect the professional interest in judgment of a
professional.
Another vital aspect of a conflict of interest is that perception is very important. As a
professional, you may be confident that in a particular situation, you have not acted in
conflict of interest, or that your judgment has not been compromised. But if popular
perception is that a typical professional’s judgment could be affected in these
circumstances, then you are in conflict of interest, irrespective of your convictions.
Conflicts of interest come in several types. The most common type is when
professionals receive gifts, bribes or kickbacks in order to influence their decision.
Another type of conflict of interest is insider information for friends or relatives. For
example, if you are hiring someone for the company and your brother has applied for
the job, this situation exposes you to conflict of interest.
A third type of conflict of interest is the existence of interest in other companies. An
example of this would be when you as a professional are working as a designer for one
firm, while you have investment interests in a competing firm. As a professional, avoid
putting yourself in conflict of interest situations. If it is unavoidable, a professional’s only
safeguard is full disclosure of conflict of interest so that the conflict of interest stands
revealed.
Loyalty
Loyalty. loyalty is usually described as an attitude or character that is demonstrated by a
person through their actions. A clear demonstration of loyalty is when a person puts the
interests of a person or institution, such as a family, community or nation before
personal interests, even when such an action exposes the person to risk.
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4
In thinking about loyalty in the professional sphere, it is important to distinguish between
two kinds of loyalty, attitude loyalty and agency loyalty.
Attitude loyalty is loyalty that is considered an attitude or sentiment of a person. It is an
emotional or identity response that arises from group affiliation. A display of attitude
loyalty is considered a desirable quality, but usually not an obligation for members.
Another type of loyalty is agency loyalty that arises from fulfilling contractual duties. For
example, if you are hired to perform a task in an organization, you are required to be a
loyal agent as long as you work for the organization. Agency loyalty is a mandatory
obligation that is fulfilled by obeying legitimate authority of colleagues and superiors and
by following all policies and norms of the organization you work for.
Assessing the Moral Status of Loyalty
Assessing the moral status of loyalty. While loyalty is usually considered a positive
sentiment in personal lives, the requirement of loyalty in professional lives needs careful
evaluation. A sentimental consideration is unsuitable in the professional context. This is
because an emotional form of loyalty requires unquestioned or absolute loyalty. Such
an absolute response towards superiors or the organization would limit the possibility for
an individual to develop an appropriate ethical response to forms of immoral action by
the organization superiors or colleagues.
Instead, loyalty in the professional context requires use of judgment to develop and
practice loyalty. It requires individuals to think carefully about what loyalty means and
how much is owed in the professional context.
A good strategy is to critically evaluate the organization and how it treats employees in
order to assess the nature of loyalty that is owed by an employee. It is important to think
through questions like do I feel a sense of gratitude towards my employer? Is there a
sense of fairness in the workplace? Is this organization responsive to the needs and
concerns of its employees? Does this organization offer rewards and
acknowledgments? Am I proud of this organization?
Dignity
Professional dignity. Dignity is a feeling of respect or esteem that an individual holds
themselves in. Certain actions can cause damage to the positive sense of esteem about
a person. Causing damage to the positive feeling of esteem of a person could cause
grievous psychological harm to the individual.
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5
In a similar fashion, professional dignity is considered a positive sense of esteem that
the profession has collectively acquired as a result of positive contributions the
profession makes to society. But this dignity or honorable reputation of the profession is
fragile and can easily be compromised. Any member of the profession through their
irresponsible actions can cause damage to the dignity of the profession.
In Quebec, it is a mandatory duty of each individual engineer to safeguard the dignity of
the profession. This duty is prescribed in the province’s professional code and in the
code of ethics for engineers.
Honesty
Honesty. Honesty is a moral virtue that is widely accepted, but not very well understood.
Primarily because it is a practice relevant to many different facets of our existence in
society.
In such a situation, since we could encounter honesty in so many spheres of our life, we
do not often realize that we have been honest or dishonest in a particular aspect. In the
personal sphere. Honesty can be interpreted as truth telling. So an honest person is one
who can be relied on to tell the truth irrespective of circumstances. But in the
professional context, honesty is not limited to just speaking the truth. It also implies
representing oneself, our actions and our views openly and truthfully.
So in addition to honesty being an act of truth telling, it also means that to be honest in
the workplace implies the act of following scientific facts, the act of avoiding
inappropriate means and the act of showing respect to colleagues in a professional
relationship.
The difference between honesty as truth telling and honesty as correct representation of
actions can be distinguished by the difference between the act of commission and the
act of omission. While telling a deliberate lie would be an act of commission on the part
of the person speaking a lie. On the other hand, we lie by omission when we neglect to
mention a relevant event, information or circumstance to a person. Thus, honest
representation requires us to avoid both acts of commission and omission.
Duty to be Honest
Duty to be honest. Although not mentioned separately as a mandatory duty for
engineers, the duty to be honest, has considerable overlap with the trust building
obligations of engineers towards clients or employers and with their duty towards
humanity.
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6
But a few obligations indicate the duty to be honest. These are, the engineer shall
express their opinion on matters dealing with engineering only if such opinion is based
on sufficient knowledge and honest convictions. An engineer must be impartial in their
relations between client and contractor suppliers, etc. An engineer must safeguard their
independence at all times by avoiding situations of conflict of interest.
Whistleblowing
Whistleblowing. Whistleblowing is an act that follows directly from the requirement of
engineers to be honest and transparent in their actions and views. It has been defined
as an act by an employee of informing the public or higher management of unethical or
illegal behavior by an employer or supervisor.
As an engineer, if you come to know of the commission of unethical or illegal actions in
the workplace, your duty to be honest as an engineer demands that you approach either
the supervisor or the public to reveal the existence of such actions. Not doing so would
mean you have engaged in an act of omission.
Whistleblowing can be categorized into two types, internal or external, depending upon
whether the whistle is blown inside or outside the organization.
Internal whistleblowing would mean going over the head of an immediate supervisor,
who may be engaged in unethical action to a higher level of management.
External whistleblowing would mean going outside the company and report unethical or
illegal actions to the media or to law enforcement agencies directly.
In the context of professional engineering in Quebec, there are well instituted
procedures for whistleblowing. At the first level, when you encounter an illegal or
unethical action in your workplace, your action should be to bring it to the attention of
the company, first, verbally and then failing which clearly indicate in writing to the
company the consequences that may result from ignoring your advice. If after this, there
is no satisfactory resolution, as an engineer, your option, especially when certain works
are a danger to public safety must be to notify the order. For an engineer in Quebec
going public would imply approaching the OIQ rather than going to the media.
© May not be copied or duplicated
without the permission of the owner.
7
ENGR201 Professional Practice and Responsibility ©
Lesson 6 Podcast Transcript: Professional Loyalty and
Trust
Trust Building and Conflict of Interest
In this podcast, we will discuss trust building obligations for an engineer practicing in
Québec and introduce the concept of conflict of interest.
Trust-building Obligations
For an engineer practicing in Québec, the Code of Ethics for Engineers directs
engineers to create a bond of trust between the professional and the client (or
employer). A bond of trust suggests that the professional relationship between a
professional engineer and the client or employer should be based on trust. According to
the code of ethics, it is a binding obligation for all engineers to create a bond of trust. In
order to build the bond of trust, the engineer is expected to take several measures.
These measures include – disclosure of limits, integrity and transparency, availability
and diligence, independence and impartiality, confidentiality and fees. While these
measures are mandated for all engineers, they are more relevant for the independent
engineer who practices alone primarily because many of these measures are inculcated
by organizational policies for engineers employed in an organization. Each of these
aspects of trust-building is described in detail below:
Disclosure of Limits
Full disclosure to the client of the abilities and limitations of an engineer is a basic
building block for trust. By responsibly disclosing the ability of the engineer, in terms of
material resources (equipment, finances, space) or intellectual resources (people, skills)
or time resources, the engineer is sending a clear message to the client about their
abilities. Thus, the client does not overestimate the ability of the engineer to deliver.
While disclosing resources, it is important for the engineer to do so in a responsible
fashion, so that the engineer is not seen to be reckless (over estimates their abilities) or
a nay-sayer (under estimates their abilities).
© May not be copied or duplicated
without the permission of the owner.
1
Integrity and Transparency
An engineer must act in a fashion that demonstrates integrity and transparency in their
professional work. One means of demonstrating integrity and transparency is to inform
the client, at the beginning, of the terms of agreement in writing. Subsequently, the
engineer should ensure a document trail in all interactions between engineer and client.
By documenting all interactions, the engineer sends a clear message that they are
acting in a transparent manner. Integrity and transparency can also be fostered by
furnishing explanations as and when requested by the client. When these explanations
are provided, it is important to ensure that contradictory explanations are not provided.
Furthermore, when the client ignores the engineer’s advice, the engineer must inform
the client in writing the nature of consequences for ignoring their advice.
Availability and Diligence
The engineer must demonstrate reasonable availability and diligence in professional
practice. A good way of demonstrating this is by making known the engineer’s working
hours and contacts, and then ensuring the client can reach the engineer during these
hours. Similarly, the engineer must give advance notice, if for some reason they wish to
cease working for the client. The engineer can only cease to work for the client for some
clearly defined grounds. These grounds are if the work involves illegal or fraudulent
acts, if the client ignores the engineer’s advice, and if there is a conflict of interest. We
will describe what is meant by conflict of interest later in this podcast.
Independence and Impartiality
It is of utmost importance that the engineer ensure that their professional independence
and impartiality is maintained at all costs. In order to do so, the engineer is required to
take precautions to safeguard their independence and impartiality. One key fashion to
do so is to avoid situations of conflict of interest. Another measure is to subordinate
one’s personal interest to the interest of the client. Another means of ensuring
impartiality is to ensure that the engineer does not receive fees for services provided
from anyone else other than the client or the client’s representative. These measures
may seem minor but are important to ensure that the engineer is not just impartial and
independent in actions but is also perceived to be so.
Confidentiality
It is of utmost importance that the engineer safeguard the confidentiality of the
information provided by the client. In doing so, the engineer needs to remember that
they are not authorized to share any of the client’s information, unless explicitly released
© May not be copied or duplicated
without the permission of the owner.
2
from secrecy by the client or requested to do so by a court of law. In addition to not
releasing the information, the engineer is expected not to use the client’s information in
a way that will prejudice the client or accept another mandate that will involve disclosing
a previous client’s information.
Fees
An engineer is expected to charge fair and reasonable fees that correspond to the
services rendered. The expectation is that neither will an engineer overcharge the client,
nor will the engineer provide services for free. In fact, the engineer is forbidden from
providing services for free. Accordingly, the client should be given a written explanation
for the fees that were charged.
Conflict of Interest
As we had mentioned earlier, a professional relationship with a client or employer is
considered a fiduciary relationship. Such a relationship creates a legal obligation for the
professional to always act in the positive interests of the client. One of the factors that
can compromise the fiduciary nature of this relationship is conflict of interest. Conflict of
interest can be defined as the existence of a parallel interest that could threaten or
appear to threaten the exercise of good judgment of the typical professional. A key point
is that conflicts of interest affect the professional interest and judgment of a
professional. Another vital aspect of a conflict of interest is that perception is very
important. As a professional, you may be confident that in a particular situation you
have not acted in conflict of interest or that your judgment has not been compromised.
But if popular perception is that a typical professional’s judgment could be affected in
these circumstances, then you are in conflict of interest irrespective of your convictions.
Conflicts of interest come in several types.
•
The most common type is when the professional receives gifts, bribes, or kickbacks
in order to influence their decision.
•
Another type of conflict of interest is insider information for friends or relatives. For
example, if you are hiring someone for the company, and your brother has applied
for the job. This situation exposes you to conflict of interest.
•
A third type of conflict of interest is the existence of interests in other companies. An
example of this would be when you, as a professional, are working as a designer for
one firm, while you have investment interests in a competing firm.
© May not be copied or duplicated
without the permission of the owner.
3
As a professional, avoid putting yourself in conflict of interest situations. If it is
unavoidable, a professional’s only safeguard is full disclosure of conflict, so that the
conflict of interest stands revealed.
© May not be copied or duplicated
without the permission of the owner.
4
ENGR201 Professional Practice and Responsibility ©
Lesson 6 Podcast Transcript: Professional Loyalty and
Trust
Nature of Loyalty
In this podcast, we will discuss the nature of loyalty that professionals owe their
organizations.
Loyalty
Loyalty is usually described as an attitude or character that is demonstrated by a person
through their actions. A clear demonstration of loyalty is when a person puts the
interests of a person or institution (such as family, community, or nation) before
personal interests, even when such an action exposes the person to risk. In thinking
about loyalty in the professional sphere, it is important to distinguish between two kinds
of loyalty – attitude loyalty and agency loyalty.
•
Attitude loyalty is loyalty that is considered an attitude or sentiment of a person. It is
an emotional or identity response that arises from group affiliation. A display of
attitude loyalty is considered a desirable quality (but usually not an obligation) for
members.
•
Another type of loyalty is agency loyalty that arises from fulfilling contractual duties.
For example, if you are hired to perform a task in an organization, you are required
to be a loyal agent as long as you work for the organization. Agency loyalty is a
mandatory obligation that is fulfilled by obeying legitimate authority of colleagues
and superiors and by following all policies and norms of the organization you work
for.
Assessing the moral status of loyalty
While loyalty is usually considered a positive sentiment in personal lives, the
requirement of loyalty in professional lives needs careful evaluation. A sentimental
consideration is unsuitable in the professional context. This is because an emotional
form of loyalty requires unquestioned or absolute loyalty. Such an absolute response
towards superiors or the organization would limit the possibility for an individual to
© May not be copied or duplicated
without the permission of the owner.
1
develop an appropriate ethical response to forms of immoral action by the organization,
superiors or colleagues. Instead, loyalty in the professional context requires use of
judgment to develop and practice loyalty. It requires individuals to think carefully about
what loyalty means and how much is owed in the professional context. A good strategy
is to critically evaluate the organization and how it treats employees in order to assess
the nature of loyalty that is owed by an employee. It is important to think through
questions like:
•
Do I feel a sense of gratitude towards my employer?
•
Is there a sense of fairness in the workplace?
•
Is this organization responsive to the needs and concerns of its employees?
•
Does this organization offer rewards and acknowledgements?
•
Am I proud of this organization?
© May not be copied or duplicated
without the permission of the owner.
2
INTRODUCTION To
ENGINEERING ETHICS
SECOND EDITION
MIKE W. MARTIN • ROLAND SCHINZINGER
138
Introduction to
Engineering Ethics
contrast, in professional-conflicts of interest it is often physically
or economically possible to pursue all of the conflicting interests
but doing so would be morally problematic.
Because of the great variety of possible outside interests,
conflicts of interest can arise in innumerable ways, and with
many degrees of subtlety. We will sample only a few of the more
common situations involving (1) gifts, bribes, and kickbacks, (2}
interests in other companies, and (3) insider information.
Gifts, Bribes, and Klckbacfcs. A bribe is a substantial
amount of money or goods offered beyond a stated business
contract with the aim of winning an advantage in gaining or
keeping the contract, and where the advantage is illegal or
otherwise unethical.8 Substantial is a vague term, but it alludes
to amounts, beyond acceptable gratuities, that are sufficient
to distort the judgment of a typical person. Typically, although
not always, bribes are made in secret. Gifts are not bribes as
long as they are small gratuities offered in the normal conduct
of business. Prearranged payments made by contractors to
companies or their representatives in exchange for contracts
actually granted are called kickbacks. When suggested by the
granting party to the party bidding on the contract, the latter
often defends its participation in such an arrangement as having
been subjected to "extortion."
Often, companies give gifts to selected employees of government agencies or partners in trade. Many such gifts are unobjectionable, some are intended as bribes, and still others create
conflicts of interest that do not, strictly speaking, involve bribes.
What are the differences? In theory, these distinctions may seem
clear, but in practice they become blurry. Bribes are illegal or
immoral because they are substantial enough to threaten fairness in competitive situations, whereas gratuities are of smaller
amounts. Some gratuities play a legitimate role in the normal
conduct of business, whereas others can bias judgment like a
bribe does. Much depends on the context, and there are many
gray areas, which is why companies often develop elaborate
guidelines for their employees.
What about gifts in routine business contexts? Is it all right to
accept the occasional luncheon paid for by vendors giving sales
presentations, or a gift one believes is given in friendship rather
than for influence? Codes of ethics sometimes take a hard line
in forbidding all such gratuities, but many employers set forth
more flexible policies. Company policies generally ban any gra-
8 Cf. Michael 8. Pritchard, "Bribery: The Concept," Selena and Engineering
Ethics 4, no. 3 (1998): 281-86.
tuities that have more than nominal value or exceed widely and
openly accepted normal, business practice: An additional rule of
thumb is: "'f the offer or acceptance of a particular gift could have
embarrassing consequences for your company if made public,
then do not accept the gift."
Interests In Other Companies. Some conflicts of interest
consist in having an interest in a competitor's or a subcontractor's
business. One blatant example is actually working for the
competitor or subcontractor as an employee or consultant. Another
example is partial ownership or substantial stockholdings in the
competitor's business. Does holding a few shares of stock in a
company one has occasional dealings with constitute a conflict
of interest? Usually not, but as the number of shares of stock
increases, the issue becomes blurry. Again, is there a conflict
of interest if one's spouse works for a subcontractor to one's
company? Usually not, but a conflict of interest arises if one's job
involves granting contracts to that subcontractor.
Should there be a general prohibition on moonlighting, that
is, working in one's spare time for another company? That
would violate the rights to pursue one's legitimate self-interest.
Moonlighting usually creates con:tlicts of interest only in special
circumstances, such as working for competitors, suppliers, or
customers. Even then, in rare situations, an employer sometimes
gives permission for exceptions, as for example when the experi~
ence gained would greatly promote business interests. A special
kind of conflict of interest arises, however, when moonlighting
leaves one exhausted and thereby harms job performance. 9
Conflicts of interest arise in academic settings as well. For
example, a professor of electrical engineering at a . West Coast
university was found to have used $144,000 in grant funds to
purchase electronic equipment from a company he owned in
part. He had not revealed his ownership to the university, he had
priced the equipment much higher than market value, and some
of the purchased items were never received. The Supplier Information Form and Sole Source Justification Statements had been
submitted as required but with falsified content. In addition, the
professor had hired a brother and two sisters for several years,
concealing their relationship to him in violation of antinepotism
rules and paying them for research work they did not perform.
All told, he had defrauded the university of at least $500,000 in
research funds. Needless to say, the professor lost his university
1
George L. Reed, -Moonlighting and Profeesional Responsibility," JourruJl of
Professional Activities: Proceedings of tM ~rican Society of Civil Engineers 96
(September 1970): 19-23.
Workplace
Responsibilities
and Rights
139
140 _ _ _ __
Introduction to
EnglnHrlng Ethics
position and had to stand trial in civil court when an internal
audit and subsequent hearings revealed these irregularities.
lnalder Information. An especially sensitive conflict of interest
consists in using "inside" information to gain an advantage or set
up a business opportunity for oneself, one's family, or one's friends.
The information might concern one's own company or another
company with which one does business. For example, engineers
might tell their friends about the impending announcement of a
revolutionary invention, which they have been perfecting, or of
their corporation's plans for a merger that will greatly improve
the worth of another company's stock. In doing so, they give
those friends an edge on an investment promising high returns.
Owning stock in the company for which one works is of course not
objectionable, and this is often encouraged by employers. But that
ownership should be based on the same information available to
the general public.
Moral Status of Conflicts of Interest
What is wrong with employees having conflicts of interest? Most
of the answer is obvious from our definition: Employee conflicts
of interest occur when employees have interests that if pursued
could keep them from meeting their obligations to serve the
interests of the employer or client for whom they work. Such
conflicts of interest should be avoided because they threaten to
prevent one from fully meeting those obligations.
More needs to be said, however. Why should mere threats
of possible harm always be condemned? Suppose that substantial good might sometimes result from pursuing a conflict of
interest?
In fact, it is not always unethical to pursue conflicts of inter~
est. In practice, some conflicts are thought to be unavoidable, or
even acceptable. One illustration of this is that the government
allows employees of ain:raft manufacturers, such as Boeing or
McDonnell Douglas, to serve as government inspectors for the
Federal Aviation Agency (FAA). The FAA is charged with regulating airplane manufacturers and making objective safety and
quality inspections of the airplanes they build. Naturally the
dual roles-government inspector and employee of the manufacturer being inspected-could bias judgments. Yet with careful
screening of inspectors, the likelihood of such bias is said to be
outweighed by the practical necessities of airplane inspection.
The options would be to greatly increase the number of nonindustry government workers (at great expense to taxpayers) or
to do without government inspection altogether (putting public
safety at risk).
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Even when conflicts of interest are unavoidable or reason·
able, employees are still obligated to inform their employers and
obtain approval. This suggests a fuller answer to why conflicts of
interest are generally prohibited: (1) The professional obligation
to employers is very important in that it ovenides in the vast
majority of cases any appeal to self-interest on the job, and (2) the
professional obligation to employers is easily threatened by selfinterest (given human nature) in a way that warrants especially
strong safeguards to ensure that it is fulfilled by employees.
Many conflicts of interest violate trust, in addition to undermining specific obligations. Employed professionals are in fiduciary
(trust) relationships with their employers and clients. Allowing
side interests to distort one's judgment violates that trust. And
additional types of harm can arise as welL Many conflicts of
interest are especially objectionable in business affairs precisely
because they pose risks to free competition. In particular, bribes
and large gifts are objectionable because they lead to awarding
contracts for reasons other than the best work for the best price.
All a final point, we should note that even the appearance of
conflicts of interest, especially appearances of seeking a personal
profit at the expense of one's employer, is considered unethical
because the appearance of wrongdoing can harm a corporation as
much as any actual bias that might result from such practices.
Discussion Questions
1. Consider the following example:
Who owns your knowledge? Ken Is a process engineer for Stardust
Chemical Corp., and he has signed a secrecy ag~Jl$ment with the
firm that prohibits his divulging information that the company considers proprietary.
Stardust has developed an adaptation of a standard piece of
equipment that makes it highly efficient for coofing a viscous plastics
slurry. (Stardust decides not to patent the idea but to keep It as a
trade secret) Eventually, Ken leaves Stardust and goes to work for
a candy-processing company that Is not in any way In competition.
He soon realizes that a modification similar to Stardust's trade secret
could be applied to a different machine used for cooling fudge and,
at once, has the change made.10
Has Ken acted unethically?
10 Philip M. Kohn and Roy V. Hugh.eon, CJ>erplelting Problems in Engineering
Ethics," Clumical Engineerine 87 (May 5, 1980): 102. Quotationa used with
permission of McGraw-Hill Book Co.
Workplace
Responsibilities
and Rights
ENGR201 Professional Practice and Responsibility ©
Lesson 7 Podcast Transcript: Duties to the Profession
Professional Dignity
In this podcast, we will discuss what is meant by professional dignity.
Dignity is a feeling of respect or esteem that an individual holds themselves in. Certain
actions can cause damage to the positive sense of esteem about the person. Causing
damage to the positive feeling of esteem of a person could cause grievous
psychological harm to the individual.
In a similar fashion, professional dignity is considered a positive sense of esteem that
the profession has collectively acquired as a result of the positive contributions the
profession makes to society. But this dignity or honourable reputation of the profession
is fragile and can easily be compromised.
Any member of the profession, through their irresponsible actions can cause damage to
the dignity of the profession.
In Quebec, it is a mandatory duty of each individual engineer to safeguard the dignity of
the profession. This duty is prescribed in the province’s Professional Code and in the
Code of Ethics for Engineers.
The duty to maintain the dignity of the profession is understood through four aspects:
derogatory acts, relations with colleagues, contributing to advancing the profession, and
relations with the OIQ.
Derogatory Acts
Derogatory acts are specific actions that are considered so wrong that when an
engineer does any of these actions, its effect is to lower the dignity of the profession as
a whole.
Three actions are proscribed for all professionals practising in Quebec. These are:
1. Discrimination to provide services on the basis of race, colour, sex, age, religion,
nationality, ethnicity, or any other social attribute.
2. Claiming to be a specialist when you’re not.
3. Sexual misconduct.
In addition to these derogatory acts that are applicable to all professionals in Quebec,
there are some derogatory acts mentioned in the Code of Ethics for Engineers that
apply only to engineers practising in the province.
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These include:
1. Participating in the illegal practice of the profession. This happens, for example,
when you place your seal on a plan even though it has not been prepared by an
engineer.
2. If you use inducements—also called bribes—to market one’s professional
services.
3. Seeking legal action against a colleague on a professional matter without first
applying to the OIQ for permission to do so.
4. Refusing to comply with the directions of the OIQ.
5. Refusing to present yourself to the OIQ when requested to do so.
As we will talk about in the next podcast, the last two points above show that the OIQ
takes the relations between itself and the professional engineer very seriously. Refusing
to follow their directions can result in disciplinary action.
Relations with Colleagues
In maintaining the dignity of the profession, the nature of relations with colleagues is an
important aspect. The Code of Ethics for Engineers specifies several aspects on the
relations with colleagues, including:
1. No engineer shall refuse to collaborate with a colleague on the basis of race,
colour, sex, religion, ethnic or national origin.
2. An engineer shall not abuse a colleague’s good faith by willfully damaging his or
her reputation or induce him or her to commit an offence against laws that govern
the practice of the profession.
3. Proper notice must be given when replacing a colleague.
4. It is forbidden to take advantage of one’s position as employer to limit the
professional independence of another.
Contributing to the Advancement of the Profession
An engineer is expected to contribute to the development of their profession by sharing
their knowledge and expertise with colleagues and students and by their participation as
tutors for training courses.
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ENGR201 Professional Practice and Responsibility ©
Lesson 7 Podcast Transcript: Duties to the Profession
Relations with the Order of Engineers (Ordre des Ingenieurs)
In this podcast, we will discuss how to maintain proper relations with the Order.
Maintaining professional dignity requires the individual professional to demonstrate
adequate respect for the Order, and for the role the Order plays in ensuring engineers
are accountable to society. As a result, it is very important for the individual engineer to
take his or her relations with the Order very seriously. These relations are scrutinized
very strictly by the Order. One important requirement is for an engineer to comply with
any request from the Order to participate in the self-governance of the profession. The
engineer does not have a choice and must agree to contribute voluntarily to the Order.
Similarly, the engineer must reply to any correspondence or letter from the Order as
soon as possible. Delayed replies could form the basis for a disciplinary investigation.
Another vital point is that individuals are forbidden to interfere, or otherwise, obstruct a
professional inspection or investigation conducted by the Order. During such an
inspection or investigation, an engineer is required to submit all their professional
records (including their computers) for scrutiny. Not complying with such an order can
result in a disciplinary investigation.
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ENGR201 Professional Practice and Responsibility ©
Lesson 7 Podcast Transcript: Duties to the Profession
OIQ Controls Over its Members
In this podcast, we will discuss the nature of control OIQ exercises over their member
engineers.
The Order of Engineers Quebec (OIQ) exercises considerable control over its
members to ensure that the association as a whole is meeting its legislative mandate of
developing engineers, who remain accountable to society and who contribute positively
to public welfare. In order to do so, OIQ exerts control on key aspects – membership,
nature of practice, and social accountability. We will examine each of these aspects in
detail.
Membership
For an engineer, to be a member of the OIQ is crucial to practice the profession. This is
so because in Quebec a person can be designated an engineer in the workplace only if
they are a registered member of OIQ. A member of OIQ is required to hold a permit
issued by OIQ and their name be entered on OIQ’s roll. Thus, if for some reason they
lose their membership, it is not possible for the person to continue practicing the
engineering profession legally. Thus, it becomes vital for a member to constantly meet
membership conditions. Important membership conditions are as follows:
1. Ensure registration on the roll every year on April 1st.
2. Not be temporarily or permanently stricken off the roll of OIQ.
3. Ensure that your permit is not revoked by the disciplinary council.
4. Meet important membership conditions for member renewal. These conditions
include not having a criminal record outside the profession in Canada or in another
country. Another condition is to have completely paid any disciplinary penalties or
assessment during the year. It may also be required to meet physical/mental
competencies to continue active professional life.
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Nature of practice
A major function of OIQ is to ensure continuous monitoring of the practice of engineers
registered with it. OIQ employs different methods to monitor the professional practice. A
vital and ongoing responsibility is exercised through the process of professional
inspection. Professional inspection is conducted at OIQ by the Professional Inspection
Committee. The primary mission of the inspection committee is to ensure that their
membership meets minimum required standards for proper professional practice. In
order to evaluate standards of professional practice, inspectors can examine any
material aspect of practice, including records, books, registers, chemicals, products,
substances, apparatus, and equipment entrusted to the professional by a client or
employer. The Committee conducts general inspection according to a program
published in the PLAN (the professional magazine published by the OIQ). In addition to
the general inspection, the committee also conducts specialized inspection of a
member, if it is explicitly asked to do so as part of an investigation. If during the
inspection, the committee believes that the member is engaging in unethical practice, it
cannot take disciplinary action but it can inform the Syndic if there are reasonable
grounds that an offence has been committed.
Another major aspect of professional practice that is controlled by OIQ is discipline and
penalty. All members of OIQ (including retired members or junior engineers) can have
their professional practice investigated. Investigation is an internal process that aims to
examine if unethical or offending practice was undertaken by a member. Once the
process of investigation concludes that unethical practice was indeed conducted, the
member is liable for disciplinary actions or penalties. In Québec, the OIQ has exclusive
jurisdiction over any such investigations or disciplinary processes. In other words, these
investigations or disciplinary processes cannot be challenged in a regular civil or
criminal court. Investigations of malpractice are investigated by the Syndic. After
concluding the investigation, the Syndic makes their recommendation to the OIQ’s
disciplinary council. It is the disciplinary council that judges the complaint, hears the
member and makes a decision to award penalties. According to the gravity of the
offense committed by the engineer, the disciplinary council can recommend the
following penalties – an oral reprimand; removing the member temporarily or
permanently from the roll; a fine of $1,000-$12,500 with fines doubled for repeat
offences; an obligation to remit a sum of money to the entitled person; or restriction or
suspension to engage in professional activities.
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Social Accountability
A key means of ensuring that members remain accountable to society is through the
conciliation or arbitration process. The conciliation or arbitration process is a means
adopted by OIQ to serve society. Any resident of Québec, who is unhappy over the fees
they provided to an engineer and feels they were over-charged, can utilize OIQ’s
arbitration process to determine if they were actually over-charged. This procedure
applies only when the member is engaged in private practice and not employed by a
company. As part of the arbitration process, the OIQ can examine the quality of service
provided by the engineer to verify if the client was overcharged or not. If the
investigation reveals that the engineer did over-charge the client for their services,
OIQ’s council of arbitration will determine the amount of reimbursement the engineer
has to pay to the client.
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