Business Ethics Of Project Manager

They include physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. Need Home Job Self-actualization education, religion, hobbies, personal growth raining, advancement, growth, creativity Esteem approval Of family, friends, community recognition, high status, responsibilities Belongingness family, friends, clubs teams, depth, coworkers, clients, supervisors, subordinates Safety freedom from war, poison, violence work safety, job security, health insurance Physiological Food, water, sex Heat, air, base salary 1. . 2. Theory X and Theory Y Two distinct sets of assumptions that managers, in general, have about their employees and which often turn out to be self-fulfilling prophesies. Theory-X assumptions: Most people dislike work and will avoid it to the extent possible, Hereford they must be continually coerced, controlled, and threatened with punishment to get the work done, and that they have little or no ambition, prefer to avoid responsibility, and choose security above everything else.

Theory-Y assumptions: physical and mental effort are natural and most people (depending on the work environment) find work to be a source of satisfaction, they generally, on their own motivation, exercise self-control, self-direction, creativity, and ingenuity in pursuit of individual and collective (company) goals, they either seek responsibility or learn to accept it willingly, ND that their full potential is not tapped in most organizations. These assumptions serve as powerful behavioral models reflected in the way an organization is structured.

Management that believes in theory-X assumptions, creates stick-and-carrot approach based firms with restrictive discipline and pervasive controls. Theory-Y believers create trust based firms with empowered employees. 1. 1 . 3. Reinforcement Theory Operant Conditioning is the term used by B. F. Skinner to describe the effects of the consequences of a particular behavior on the future occurrence of that behavior. There are four types of Operant Conditioning: Positive Reinforcement, Negative Reinforcement, Punishment, and Extinction.

Both Positive and Negative Reinforcement strengthen behavior while both Punishment and Extinction weaken behavior. Positive reinforcement: This is the process of getting goodies as a consequence of a behavior. You make a sale, you get a commission. You do a good job, you get a bonus & a promotion. Negative reinforcement: This is the process of having a stresses taken away as a consequence of a behavior. Long-term sanctions are removed from countries when their human rights records improve. Extinction: This is the process of getting no goodies when do a behavior.

So if person does extra effort, but gets no thanks for it, they stop doing it. Punishment: This is the process of getting a punishment as a consequence Of a behavior. Example: having your pay docked for lateness. 1. 2. Business ethics 1. 2. 1. What is business ethics The study of how personal moral norms apply to the activities and goals of commercial enterprise. It is not a separate moral standard, but the study of how the business context poses its own unique problems for the moral person who acts as an agent of this system.

Business ethics deals with three basic areas of managerial decision making: Choices about what the laws should be and whether to follow them. Choices about economic and social issues outside the domain of law. Choices about the priority of self-interest over the company’s interests. 1 . 2. 2. Utilitarianism theory An ethical philosophy in which the happiness of the greatest number of people in the society is considered the greatest good. According to this philosophy, an action is morally right if its consequences lead to happiness (absence of pain), and wrong if it ends in unhappiness (pain).

Since the link between actions and their happy or unhappy outcomes depends on the circumstances, no moral principle is absolute or necessary in itself under utilitarianism. There are 4 types of utilitarianism: Act utilitarianism: advises us to judge each individual action on its outcome/ results alone. If it is a choice between two courses of action we are morally obliged to take the one which yields the most happiness for the most people. Rule utilitarianism: is concerned the utility of a rule for action.

This means that we should judge an act like so: if everyone were to obey this rule, would he general happiness be maximized? For example: In the case Of the child laborer we can see that, as a general rule, it would not increase the general good if every manufacturer were to employ child laborers in order to increase profits. The same applies in reverse: sometimes more people would experience increased happiness/pleasure if were to give my money to charity rather than pay my taxes but if everyone were to do this the general good would suffer – there would be no money for roads, schools and social welfare.

Negative utilitarianism: is focused on promoting the least amount of vile (or harm) for the greatest number. Some view this as a more effective ethical theory because there are more ways to do harm than good and the greatest harms have more serious consequences than the greatest goods. Preference Utilitarianism: defines the good to be maximized as the fulfillment of people’s preferences. The right action remains that which produces the best consequences but the best consequences are those that satisfy personal preferences and can be a variety of goods/values besides pleasure. . 2. 3. Equity theory Suppose employee A gets a raise and employee B gets a 10% raise. Will OTOH be motivated as a result? Will A be twice as motivated? Will be B be negatively motivated? Equity theory says that it is not the actual reward that motivates, but the perception, and the perception is based not on the reward in isolation, but in comparison with the efforts that went into getting it, and the rewards and efforts of others. If everyone got a 5% raise, B is likely to feel quite pleased with her raise, even if she worked harder than everyone else.

But if A got an even higher raise, B perceives that she worked just as hard as A, she will be unhappy. In other words, people’s motivation results from a Asia of ratios: a person compares the ratio of reward to effort with the comparable ratio of reward to effort that they think others are getting. Of course, in terms of actually predicting how a person will react to a given motivator, this will get pretty complicated: People do not have complete information about how others are rewarded.

So they are going on perceptions, rumors, inference. Some people are more sensitive to equity issues than others Some people are willing to ignore short-term inequities as long as they expect things to work out in the long-term. 1. 3. Standard for international project managers Technical expertise Technical knowledge gives the project manager the creditability to provide leadership on a technically based project, the ability to understand important aspects of the project, and the ability to communicate in the language of the technicians.

Credibility The project manager is coming into an established organization and must have a reputation or presence of credibility to receive the respect and support of the client and team. Integrity As a project management professional, one Of our responsibilities is to ensure integrity of the project management process, the product, and our own personal conduct. Conflict of Interest Project managers are required to report to the stakeholders, customers, or others any actions or circumstances that could be construed as a conflict of interest.

Acting Professionally Project managers are required to behave in a professional manner in difficult situations. Also, they are required to coaching team members to conform to the standard of conduct expected by the organization they work for. Relationship with Customers, Clients and Employers Project managers are required to provide customers, clients and employers with fair, honest, complete and accurate information on the preparation of estimates concerning costs, services and expected results.

Also, they are required to fully and accurately disclose any professional or business-related conflicts or potential conflicts of interest in a timely manner. Confidentiality of Information Project managers are required to honor and maintain the confidentiality of privacy of customer, client, employer, and similar work information, including the confidentiality of customer, or client identities, assignments undertaken, and Other information obtained through the course of a professional relationship, unless: granted by permission by the customer, client or employer; or the maintenance of the confidentiality is otherwise unethical or unlawful.

They are also required to respect and protect intellectual property rights of others, and to properly disclose and recon size the professional, intellectual and research contributions of others. Taking Responsibility Of Your Own Actions Project managers are required to accept responsibility of their own actions. As a PM professional our concern for project and the organization should take precedence over our own feelings. Duty To The Project Team How comfortable are we in burning our project team, over and over again? Do we change our behavior?

Do we allow people to stand and differ from us on issues such as performance and safety? Respecting Differences In Diverse Cultures Project managers are required to interact with team and stakeholders in a professional and ethical manner by respecting personal, ethnic, and cultural differences in order to ensure a collaborative project management environment. Global competition requires awareness of cultural influences and customary practices of the country. Project managers’ need to be educated in the country’s cultural norms, business and management practices, also in regulations and legal contracting framework. 4. Social responsibilities The idea behind corporate social responsibility is that companies have multiple responsibilities to maintain. These responsibilities can be arranged in a pyramid, With basic responsibilities closer to the bottom. As a business meets lower-level responsibilities that obligate it to shareholders and the law, it can move on to the higher level responsibilities that benefit society. Economic Responsibilities A company’s first responsibility is its economic responsibility that is to say, a company needs to be primarily concerned with turning a profit.

This is for the impel fact that if a company does not make money, it won’t last, employees will lose jobs and the company won’t even be able to think about taking care of its social responsibilities. Before a company thinks about being a good corporate citizen, it first needs to make sure that it can be profitable. Legal Responsibilities A company’s legal responsibilities are the requirements that are placed on it by the law. Next to ensuring that company is profitable, ensuring that it obeys all laws is the most important responsibility, according to the theory of corporate social responsibility.

Legal responsibilities can range from securities regulations to labor law, environmental law and even criminal law. Ethical Economic and legal responsibilities are the two big obligations of a company. After a company has met these basic requirements, a company can concern itself with ethical responsibilities. Ethical responsibilities are responsibilities that a company puts on itself because its owners believe it’s the right thing to do not because they have an obligation to do so. Ethical responsibilities could include being environmentally friendly, paying fair wages or refusing to do equines with oppressive countries, for example.

Philanthropic If a company is able to meet all of its other responsibilities, it can begin meeting plinth ropier responsibilities. Philanthropic responsibilities are responsibilities that go above and beyond what is simply required or what the company believes is right. They involve making an effort to benefit society for example, by donating services to community organizations, engaging in projects to aid the environment or donating money to charitable causes. 2. Impact of environments 2. 1. Macro-environments 2. 1. . Cultural society Environment At times, rules and regulations may result from ancient traditions-?no consumption of alcoholic beverages in Islamic nations, no consumption of pork products in Israel, and avoiding the “A-OK” hand-sign in several South American countries, though the latter is not a rule or regulation. 2. 1. 2. Politics and Legal Environment On international projects, the PM can expect to deal with bureaucracy at several different levels (I. E. , local, regional, and national government functionaries).

Foreign governments are usually devoted to ensuring that local citizens are well-treated by invading companies, that national treasures re not disturbed, that employment for their nationals is maximized, that some profits are reinvested in the host country, that safety regulations are not violated, and that other unintended exploitations are prevented. For instance, a change in policy or the party in power, may have significant ramifications for what government does, what it funds and, just as importantly, what it decides not to continue funding.

From the regulations affecting intellectual property to the requirements of major pieces of anti- trust (US) or government procurement (EX.) legislation, legal pressures place n ever-increasing bureaucratic load on most aspects of economic activity. 2. 1. 3. Economy environment Another complication is knowing when a payment is coming. At the inflation rate of 25 percent per month during this period, even a week’s delay in payment by the government can turn a profitable project into a major loss. Thus, another invoice is commonly sent for “escalation” been the time the first invoice was submitted and the time of payment by the customer.

This invoice, of course, is also subject to inflation if payment is not forthcoming by the expected time! The project manager should be aware of the general level of business conditions in the nation hosting the project. While it is common for business cycles in economically developed countries generally to rise and fall together, they rarely match precisely. The depth of the cycle will be greater in one nation than another. The cycle will start or end in one country before it does in another. Occasionally, a cycle downturn may skip a country entirely.

Therefore, local perceptions about the level of prosperity or recession will differ from region to region. These different perceptions will be fleeted in positive or negative attitudes toward investment, and employment. The risks associated with a project will differ from country to country. Even notions about the proper timeshare for a project will be affected. 2. 1. 4. Technological Environment Changes in technology will challenge the viability of some projects and create the need for others, in addition to determining the way in which those projects are delivered. 2. 1. . Natural environment An assessment of environmental impact is mandated for many projects now as part of an emerging interest in corporate social responsibility. . 2. Micro- environments 2. 2. 1 . Competitors The level of competition also impacts your economic livelihood. In theory, more competitors means your share of dollars customers spend diminishes. However, a large number of competitors in an industry usually signifies lots of demand for the products or services provided. If an industry lacks competition, you might not find enough demand to succeed in the long run. . 22. Suppliers and distributor Sourcing goods used in production or resale and distributing your inventory to customers are important as well. Manufacturers rely on materials suppliers ND resale companies rely on manufacturers or wholesalers to transport goods. To operate profitably, you need to get good value on products and supplies and, in turn, offer good value to your customers with accessible solutions. 2. 2. 3. Customers Customers have the most direct microeconomic impact on a business.

The simple fact is that you can’t successfully operate a for-profit company without attracting targeted customers. Knowing your ideal customer types and developing and presenting effective marketing campaigns are integral to building a customer base and generating revenue streams. 22. . Public Your local community and media also affect your ongoing business image. Communities often support companies that provide jobs, pay taxes and operate with social and environmental responsibility. If you don’t do these things, you may run into negative public backlash.

Local media often help your story proliferate, for better or worse. 2. 2. 5. Enterprise Your workers produce, sell or service the goods and service that drive your business. The availability of qualified, motivated employees for your business type is vital to economic success. If you operate a highly technical business, or instance, you might have to pay more in salary to attract a limited number of available, specialized workers. 3. Project scope Clearly, project scope is the keystone interlocking all elements of a project plan.

To ensure that scope definition is complete, you may wish to use the following checklist: Project objective Deliverables Milestones Technical requirements Limits and exclusions Reviews with customer 3. 1. Project objective The first step of project scope definition is to define the overall objective to meet your customers need(s). For example, as a result of extensive market search a computer software company decides to develop a program that automatically translates verbal sentences in English to Russian.

The project should be completed within three years at a cost not to exceed $1. 5 million. The project objective answers the questions of what, when, and how much. 3. 2. Deliverables The next step is to define major deliverables-?the expected outputs over the life of the project. For example, deliverables in the early design phase of a project might be a list of specifications. In the second phase deliverables could be software coding and a technical manual. The next phase could be to est. prototypes. The final phase could be final tests and approved software. 3. 3.

Milestones A milestone is a significant event in a project that occurs at a point in time. The milestone schedule shows only major segments of work; it represents first, rough-cut estimates of time, cost, and resources for the project. The milestone schedule is built using the deliverables as a platform to identify major segments of work and an end date-?for example, testing complete and finished by July 1 of the same year. Milestones should be natural, important control points in the project. Milestones should be easy for all project artisans to recognize. 3. 4.

Technical requirements More frequently than not, a product or service will have technical requirements to ensure proper performance. For example, a technical requirement for a personal computer might be the ability to accept 120-volt alternating current or 240-volt direct current without any adapters or user switches. Another well-known example is the ability of 91 1 emergency systems to identify the caller’s phone number and location of the phone. Examples from information systems projects include speed and capacity of database systems and connectivity with alternative systems. . 5. Limits and exclusions The limits of scope should be defined. Failure to do so can lead to false expectations and to expending resources and time on the wrong problem. Examples of limits are: local air transportation to and from base camps will be outsourced; system maintenance and repair will be done only up to one month after final inspection; client will be billed for additional training beyond that prescribed in the contract. Exclusions further define the boundary of the project by stating what is not included.

Examples include: data will be collected by the client, not the contractor; a house will be built, but no indicating or security devices added; software will be installed, but no training given. 3. 6. Reviews with customer Completion of the scope checklist ends with a review with your customer-?internal or external. The main concern here is the understanding and agreement of expectations. Is the customer getting what he or she desires in deliverables? Does the project definition identify key accomplishments, budgets, timing and performance requirements?

Are questions of limits and exclusions covered? Clear communication in all these issues is imperative to avoid claims or misunderstanding. 4. Project organizations 4. 1 . The Project as part of the Functional Organization As one alternative for giving the project a “home,” we can make it a part of one of the functional divisions of the firm. There are advantages and disadvantages of using functional elements of the parent organization as the administrative home for a project, assuming that one has chosen an appropriate function.

The major advantages are: Maximum flexibility in the use of staff Experts can be utilized by many different projects Specialists can be grouped to share knowledge and experience Functional division serves as a base of technological continuity Functional division notations the normal path of advancement Just as there are advantages to housing the project in a functional area, there are also disadvantages: Client is not the focus of the activity Functional units tend to be oriented toward the activities of that particular function No individual is given full responsibility Response to client needs is slow and arduous Tendency to suboptimal the project Motivation tends to be weak A holistic approach to the project is not facilitated 4. 2. Pure Project Organization At the other end of the organizational spectrum is pure project organization. The project is separated from the rest of the parent system. It becomes a self- contained unit with its own technical staff, its own administration, tied to the parent firm by the tenuous strands of periodic progress reports and oversight. As with the functional organization, the pure project has its unique advantages and disadvantages.

The former are: Project manager has full authority All members report to the project manager Short lines of communication When there are similar projects, expertise can be retained Strong and separate identity Swift decisions Unity of command Structurally simple and flexible Supports a holistic approach.