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Exam 1 - Essay Example

However, ineffective management control can lead to a lot of serious business problems. For instance, in the case of food manufacturing companies, a weak production controll can lead to the outbreak of salmonella food poisoning (Bateman & Snell, 2012, p. 21). Eventually, this can lead to a significant reduction in sales and possible legal problems. To ensure that the rest of employees are able to understand the need for proper control of the company’s resources, the top executive should not only strive hard to become an effective leader but also communicate the rationale why each employee should actively participate in the implementation of organizational controls (Bateman & Snell, 2012, p. 23). Anybody can be a member of the top executive but not all are able to become effective leaders. In line with this, effective leadership is important not only in terms of persuading the rest of employees to support the need to implement proper controls but also in terms of establishing a strong working relationship with the low-ranking employees and winning their trust. On the other hand, effective two-way communication is necessary so that the top executives could gather honest and direct feedback from the group of workers. By listening to the main concerns of each employee, the top executives will have better idea whether or not the rest of employees have developed a clear understanding about the importance of proper control. To make sure that the implementation of proper control is successful and

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that each employee is complying with the established controls, the top executives should conduct internal management audits on a regular basis (Bateman & Snell, 2002, pp. 122 – 123). By setting-up a standard with regards to their expected work performance, the top executives can have a benchmark when assessing each employee’s work performance (Bateman & Snell, 2002, p. 124). Based on the expected target goals, the top executives will be able to effectively monitor the levels of each employee’s work performance. QUESTION #2: Other than personal greed, what do you think has led to the ethical breakdowns in many high profile organizations? Bazerman and Tenbrunsel (2011) revealed that personal greed is one of the main reasons behind the development of a top-down corruption practices. Other than personal greed, other factors that can lead to ethical breakdown include having a “weak board of directors”, exerting too much pressure on sales and financial goals, and the inability of the top executive managers to point-out or detect factors that may lead to unethical work behaviors (Bazerman & Tenbrunsel, 2011; Carroll, 2006). The board of directors plays a significant role in establishing and implementing ethical leadership within a business organization. In fact, Carroll (2006) explained that the process of establishing a strong business and work-related ethics should first starts from the top management officials. With this in mind, the process of having a weak board of directors can somehow indirectly increase the risks wherein unethical work behaviour will become a norm or habitual practices within a business organization. According to Carroll (2006), exerting too much pressure on sales and financial goals can lead to the development of unethical business practices. Because of excessive pressure placed on the sales
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Management Student ID Number & Code Date Total Number of Words: 750 QUESTION #1: As a top executive, how would you insure the group understood the necessity of proper controls and how would you insure the implementation and compliance to the established controls?…
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