Introduction to Business organisations
Business organisations work with an aim to achieve a sustainable position in national and international markets. It is not essential that successful leaders take decisions with proper ethical considerations. Dorchester Hotel is renowned in luxury hospitality sector. This hotel has been ruling this market with its indulgence in historic art and heritage culture. Ethics are building blocks of any organisation's success. Decision making process is based on leader's thought process and perceptions regarding ethics. The concept of sustainable business is spreading like fire in business world. Ethics and effective leadership styles contribute to such business developments. Managers and leaders are basic representatives of hospitality organisations. Their decisions and actions play a crucial role in functioning of the company.
Hospitality sector is completely based on etiquettes and responsibilities of functioning human resource. Trending consumer demands and requirements often force business institutions to bring changes in their functioning styles. Hence, work related learning activities are regularly planned and inculcated in organisational structure. Dorchester hotel has been in the highlights due to increasing influence of such activities in its business operations. Training and development program is a common source of learning for employees (Blanchard & Peale, 2011). Academic skills are acquired by individuals during their student phase. Work based learning gives a practical experience of real time problems and techniques involved in solving them. Unlike the manufacturing sector, hospitality industry has to directly deal with customers. This also implies that no negligence can be caused on side of the company (Jones and et. al. 2016). Hence, regular training sessions are important for effective utilisation of human resource.
Workers have to develop themselves according to organisational requirements. They often face certain ethical dilemmas which have to be effectively dealt by managers and functioning leaders. Authenticity of working is preserved when ethical practises are considered. Learning processes that are devised for every particular section must be in consideration with ethics and morales of company and employees (Ford & Richardson, 2013). It gives a dimension to thinking process for a particular situation and improves decision making with regards to complete analysis of what is right or what is wrong. The Dorchester hotel maintains its prestigious reputation in global markets by adopting ethical practises. Certain ethical dilemmas faced by employees of the hotel are issues regarding accountability, integrity and trust.
Workers often consider certain improper activities as ethical due to low supervision. For example, when guests forget their belongings in hotel room, the housekeeping staff tend to keep these items with themselves. These members face a dilemma whether to take these belongings or not. Their perseverance to such minor acts is different when compared to a manager's point of view (Eon Rossouw & Van Vuuren, 2010). Housekeeping do not consider this act as stealing and they think that it would be a waste if left just like that. Hence, they get inclined over the option of taking leftovers with them. These actions can be contagious and critically bad for organisation's reputation. Staff members tend to indulge in stealing activities not only in absence of customers but also in their presence. Lack of supervision at ground level creates less accountability of culprits (Mayer, Kuenzi & Greenbaum, 2010). Employees develop a mindset of “no big deal” when they perform such activities of stealing guests belongings or food items from hotel pantry, etc. Managers have to teach their subordinates about ethical values and their importance for Dorchester.
Learning processes help in increasing productivity of human resource. Enhancement of skills and talents is just not sufficient for overall development. Employees must be capable enough to deal with all sorts of ethical dilemmas they get indulged in during their working tenure. A major example of ethical dilemma is stated above. Here, workers have to take appropriate decisions whether to take left overs with them or not. Managers play a vital role in taking decisions during this dilemma. Their governing styles and amount of discipline are major diverting factors (What Are Managerial Ethics?, 2017). Hence, the concept of managerial ethics has been dominant in hospitality organisations. Basically, a code of conduct is generated in every business organisations to deal with aforementioned situations and similar possibilities. It helps in maintaining organisational behaviour in accordance to ethics and morales.
Managerial ethics of Dorchester hotel are based on three fundamental theories which are deontology, utilitarianism and virtue ethics. Employees can take better decisions when such theories are applied to the organisational structure of Hotel. According to deontological theory for ethical practises, people follow set rules and regulations without giving any extra thinking (Vaughn, 2015). This theory is helpful in maintaining discipline within the organisation. Deontology helps in taking wiser decisions as greater relevance is given to duties and obligations. Positive atmosphere is initiated with application of this theory (Graham, 2010). In the above mentioned situation of ethical dilemma, deontology theory can play a positive role. Individuals will be aware about their duties and responsibilities. They will not take consumer belongings or hotel resources with them. Moreover, accountability of a person will be clearly defined through adoption of this theory. Conflicting obligations that arise during execution of duties is resolved efficiently with this approach. Managerial ethics are preserved with deontological ethics (De George, 2011).
Ethical dilemmas can also be handled by using utilitarianism theory of ethics. It is based on judging consequences or possible outcomes of an action. In Dorchester hotel, the housekeeping person is facing a dilemma of taking consumer assets with him or not. Before taking any decision, if the person weighs all possible outcomes and consequences related with these outcomes, then better decisions can be taken. Utilitarianism theory is based on this process. It helps the doer to judge situation with its proper knowledge of residues (Pies, Beckmann & Hielscher, 2010). Although taking belongings with themselves won't cause much chaos in hotel but the consequences can be brutal. When one person takes wrong decisions, then more employees will be engaged in the same situation. This will turn out to be a deteriorating culture for hotel. Hence, management has to enhance its learning sessions. Employees must be taught utilitarianism ethical theory. This will help them make better judgements and take correct decisions (Ciulla, 2014).
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Ethical concepts are included in governing structure of Dorchester hotel so that responsibilities at management level do not turn out to be a burden. Both deontology and utilitarianism theories indulge an individual for running its thought process. Continuous question and answer sessions lead to certain conclusions. The validity of these conclusions can be judged with help of consequences. The dilemma to steal things or not can be efficiently handled by housekeeper when he/she manages to judge all possible outcomes with adherence to his duties (Northouse, 2011). If the person is breaking certain rules or laws of hotel by taking things with him, then unethical decision is taken. Whereas, despite of collecting proper information about proposed outcomes, the person still carries same behaviour and attitude the, he/she is a misfit for the company. Ethical practises and learning systems help in overcoming these problems.
From both the described theoretical concepts, it is clearly communicated that sole responsibility regarding good and bad decisions is shared between employee and management. When leaders follow ethical paths and deliver morale values then maximum good happens (Cox, 2015). While on the other hand, ineffective leadership turns out to be a limiting agent in Hotel's success. Rights and duties both have to go hand in hand. A person with legitimate rights cannot practise dictatorship. There is a deep routed relationship between ethics, leadership and decision making. Their interconnection helps in defining business dynamics. Considering manager of Dorchester in a position where he has to take decisions regarding certain human resource policies. This judgement can only be effective if all groups who will be affected by decision will be satisfied along with better productivity of Hotel (Brown & Mitchell, 2010).
Ethics are like guidelines that help in devising a structure for behaviour and attitudes in a company. The Dorchester Hotel is renowned for its architecture and prestigious culture. If ethics are not valued then, the hotel will be subjected to corruption and unfair practises which will ruin this reputation. Leaders adhere to defined paths and roads which complete organisation has to follow (Ciulla, 2012). A good leader is a mutual product of ethical values and effective leadership. Employee will be satisfied by current working strategies if none of them is subjected to any sort of unfair judgement. This particular factor of a healthy working environment helps in increasing productivity levels to the highest. It brings in great public support for leaders.
However, decisions that are being taken by organisation head will have deep impact. Internal business environment is the building block of a company (Brownell, 2010). It consists of employees, shareholders, partners, suppliers, etc. imbalance in relationship with any these components can have adverse effects on company's performance standards. Hence, certain policies and regulations are formed to keep a balance. Leaders have to take care that authenticity of corporate culture of Dorchester is preserved. There are instances when a leader can take unethical decisions. When profit orientation is maximum and morale values diminish, then leaders tend to take such decisions. It leads to corruption within internal governance of hotel. On the contrary, wrong interpretations and personal benefits become a centralising factor for unethical decisions (Bishop, 2013). Hence, type of leadership and correct choice of ethics is basis of appropriate agreements.
Consumers are widely affected due to imbalance in all three components. Basically, ethics and leadership are two elements of decision making process. Good leaders who think about benefit of the organisation first always follow ethical path. They do not get tempted by personal benefits. Hence, this leads to better decision making process. Proper judgement regarding consequences has to be made by management. Ground staff follows instructions which are given by these management people. Ethical considerations are significant part of decision making (Lloyd & Mey, 2010). When a leader ignores possible consequences, then ethical issues may arise which can lead to ethical dilemmas. When comparing different leadership styles, transformational leadership is dominant for good decision making with ethical governance. It reduces the probability of losses.
Ethics are often confused by personal values or principles. This confusion also leads to incorrect decision making. Leaders must be aware about hairline difference between personal values and standards of ethics. Corporate governance can only be valid when all individuals working in an organisation are examined and monitored under equal circumstances (What Are Managerial Ethics?, 2017). Moreover, actions of leaders and managers are based on these set regulations which are devised with ethical considerations. Boundaries are made with help of ethics and leadership. Individuals are guided to follow certain path within the given boundaries which cannot be compromised. On the contrary, these boundaries can be barriers to individual success if not properly managed. Hence, balanced relationship between ethics and leadership leads to good decision making process.
Leaders are like path finders and developers for every organisation (Brooks, 2013). In case of Dorchester hotel, these can be mangers, senior management authorities or even owners of he hotel. Different levels require a different leader. It is not essential that managers may be good leaders. They are bound to instruct their subordinates with certain functions. This bondage can be changed into ethical responsibility when a leader comes into action. The results of decisions made by leaders define their coherence with industrial ethics and morales. Generally, it is not so easy to fight ethical dilemmas when weak leadership is functioning. According to Aristotle's ideas about business decisions, ethics justify managerial attributes and become a source of charity with generosity. Duties become a medium for ethical governance. Leaders adopt a variety of methods and techniques to justify their decisions with ethical standards (Ciulla, 2014).
Organisational decisions are based on various factorial evaluations. Several analytical judgements have to be formulated for taking an effective decisions. Firstly, complexity is measured regarding ethical choices. Employees working with and under a leader may or may not be satisfied with working atmosphere. Hence, it becomes necessary to acknowledge complex choices that arise with a situation or action. Leaders face this complexity with full integrity and adopt a calculative approach for the respective situation (Northouse, 2011). Organisation constitution which lays foundational ethics and law has to be followed by each and every functioning individual. It doesn't imply that daily routine activities are excluded from this governance. Sustainable development in business can only be attained when continuous and legitimate efforts are made. From minute to major actions; all have to be guided by ethics. Even conversation within the hotel must be abiding ethical laws and regulations. Leaders focus on providing equal respect and dignity through their decisions for Dorchester.
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Authenticity of a decision is lost when leaders allow excuses. Breach of law happens when excuses are generated frequently without any relevance to situation. The correctness of decision is no more valid when people find some other way to practise illegitimacy (Brown & Mitchell, 2010). Hence, it becomes viable for every leader to avoid exemption of individuals from meeting ethical expectations. In this way, strict and disciplinary environment will be created within Hotel. Even customers must not be given any freedom to break laws. Leaders make sure that all internal and external stakeholders are subjected to punishment in case of breach of law. Moreover, they also ensure monitoring of hotel activities for deep routed investigations. Opinions form a major part of decision making process. Current directions of strategy change when a new opinion is kept in-front of decision takers (Eon Rossouw & Van Vuuren, 2010). Leaders imbibe influential opinions or views when crucial steps are to be taken for benefit of organisation. Dorchester cannot afford any sort of negligence in decision making.
Employees are largely affected by interpersonal relations. Illegal trading practises ruin employee relationships. They tend to be influenced by negativity which results in brutal competition. Breach of trust is the worst outcome of such corporate cultures (Jones and et. al. 2016). Only ethical decisions help in restoring trust and integrity of Dorchester. In order to safeguard organisational decisions, leaders do not entertain negative culture in their working environment. This creates respect in eyes of other employees and manages implementation process of proposed judgement effectively. However, a demand of effective communication is felt to bridge gap of trust. When a person can deploy his/her viewpoints or sufferings to his senior authorities and that too without any hesitation then, effective communication is initiated. Dorchester and all other hospitality industry organisations must have good communication channels. This will ensure better productivity and employee relations within the organisation.
Verdict of a leader has to be strongly followed by his subordinates. Be it a team or entire organisation, ethical decisions cannot be disrespected (Brownell, 2010). In order to prove maximum coherence with ethics and morales, leaders make sure that all laws and policies are followed. In comparison with leader's beliefs and conduct, organisational rules are more important. When a leader's influence on consumers and other stakeholders is positive then they are said to be ethical (Ciulla, 2012). These can be observed by increasing consumer share or collection of positive feedbacks. Satisfaction levels of customers depicts a lot of information regarding leader's decisions. However, it is necessary for every organisation to celebrate ethical movements which are positively received by other members of th