Milton Friedman's View on Leadership and Organizational Creativity

First Assignment 

Q1. Theories of Motivation 

Need For Achievement, Affiliation, and Power Theory 

Charlotte’s behavior depicts the need for accomplishment, association, and authority. This theory argues that an employee is motivated by the need for achievement, satisfaction of his affiliation needs and acquisition of power (Griffin, 2013). Her performance records before joining Kings-Conductor Company was excellent, and she has maintained this performance. Secondly, she is new in the United States, and thus she needs affiliation or a sense of belonging, which she perceives that she can access through a good life. Finally, Charlotte is exercising power; her performance is outstanding and to do better she uses her bargaining power to influence her salary.

Reinforcement Theory and Equity Theory 

The employees’ responses can be explained by an application of the reinforcement theory and equity theory. Reinforcement theory postulates that a behavior will be repeated if a motivational factor was awarded at the first performance (Tibbetts & Hemmens, 2009). For example, if an employee receives praise or a gift for a good work he is likely to repeat the act so or even do better in order to receive another praise and gift.

The employees at King Conductors are debating over the lack of reinforcement for employees who have been with king-con for a long time than Charlotte. They see that her work has received more reinforcement than others who have contributed to the success of the company and feel that they too should be rewarded. A lack of reinforcement on the part of the other employees will eventually lead to a stalemate, go-slow, or some employees quitting the firm for other lucrative working conditions and compensation. Equity theory on the hand postulates that workers will work better if they are treated equally ( Miner, J. B. (2015 ). The employees at king-con perceive that they are not treated that Charlotte is treated as special or as a royal and thus they are raising their complaints and expressing dissatisfaction.

Q2 . Options to Solve Charlottes Demand For a High Pay Rise 

Charlotte's request for a high pay rise is a serious issue to the progress of the company. Her actions are already influencing other employees, and soon others will come up with a push for salary increment. Therefore, her request must be taken seriously. Some of the options that can be considered include:

Offering an Alternative to the Pay Rise 

The management can consider offering her other options that do not need a salary increment. This may include flexible working hours and better working conditions. These options, even though are not directly connected to salary increment, they will help her spend more time in other things that would satisfy her need for affiliation and power. She will feel in control of her job.

Promotion 

Charlotte is requesting for a salary increment at the same job position. A promotion would be considered to ensure that the pay rise is proportional to the work that she is performing at the company. Establishing another branch or docket to meet her qualifications would be a creative way to capitalize on her expertise and expansion of the company as well.

Provide Her with the Salary Increment 

Her demand for a salary increment can also be met to retain her with king constructor. However, this choice may result in further consequences for the company such as more demands coming up for salary increment and go-slows.

Solution 

Offering a job promotion to match the salary increment is the best option for this scenario. Alternatives such as flexible working hours and working conditions will result in more accusations and dissatisfaction of her royal treatment from the other employees. Offering the increment will even worsen the situation, as employees that have served longer will ask for a pay rise. The job promotion will solve these dilemmas because everyone is aware that she is experienced and has done better than others have over the past period that she joined the company. The salary will be proportional to more commitments that she will be required to serve. This will also meet her need for power.

Q3. Solving The Employee’s Morale 

The main problem that the team faces relates to promotion and salary increment. Charlotte is just a factor that has catalyzed the discussions among the team members. Otherwise, it should be recognized as a problem that has always existed. However, it was never recognized, or no one dared to bring it up. Doris Ann Riley has an understanding of the employee's point of weakness that she can employ as her point of strength. It is essential to promote and remunerate other employees who have performed for the company longer than Charlotte. Riley can promote some of these employees or increase their payment. In increased salary for a few and promotion will satisfy the psychological needs of the team. Besides, Riley should use charlotte's presence as a stepping-stone to improve the company's performance. By putting her at the head of a team and setting goals for the teams to improve their performance, the company will earn more. From the increased income, the company can organize for motivational packages such as awards, increased salary, and treats. Finally, a meeting with the team will help to solve the situation and bring understanding. The team is divided and an initiative to unite the team, share problems and goals, will go a long way in restoring understanding and unity in the team ranks.

Second Assignment 

Q-1 Milton Friedman's View 

The shareholder theory proposed by Friedman identifies the obligation to shareholders as the main reason for the existence of business. Therefore, the business has a responsibility to make more returns to its owners (Fernando, 2010). This concept has several ethical injustices; Fernando (2010) notes that only one group benefits from an entire business organization. Businesses cannot exist alone without other players or the stakeholders. Assuming that the shareholders should gain preeminence in the business takes way the esteem of others as means for reaching an end.

Symbiotic Association 

There is a symbiotic association between the business and the society. Stakeholders hold an important role in the supply chain cycle. Suppliers provide raw materials to the business, which uses them to generate services or products. The products and services are delivered to the consumers who acquire them at rates that ensure profit for the producers or service providers. This cycle portrays a symbiotic association where each player in the chain benefits from the other. If the supplier and the consumer were removed from the chain, then the business would collapse. If a competitor is introduced into a market monopolized by another, the market share will fall, and losses will be incurred to the shareholder. It is impossible to conduct business without the consumers and suppliers who are stakeholders. The goal involves the vast enrichment of a few at the expense of many and the exploitation continues until the shareholder has more control.

Sustainable Business Operation 

A complete pursuit of the theory will result in the establishment of unsustainable business practice. A sustainable business practice refers to operations that protect environmental, stakeholders and shareholders interest (Wells, 2013). The shareholder theory establishes a system of greed and selfishness. A one-sided focus, as proposed by the theory, would imply that the environment and the stakeholders are ignored. As already stated, the shareholders will exploit both the environment and stakeholders for resources and labor, respectively, to meet their end goal.

The sustainable business operation model holds that businesses have a moral responsibility to consider the welfare of the stakeholders through activities like community services, development of educational and research programs and cultural preservation (Jones et al., 2004). In the wake of global warming, the environment should be exploited sparingly, and alternatives such as renewable processes and clean energy should be adopted. These pure goals can only be achieved under sustainable business operations. A healthy consumer and environment are important to the development of the business. Shareholder responsibility to the stakeholders increases their loyalty and improves the business’ brand image (Kubacki, 2016). Without this, any business would fail and society too.

Q-2 Uber and Kohlberg's Theory of Moral Development 

Kohlberg's model provides three primary levels to the development of moral character: these are pre-conventional, conventional, and post-convention stages of moral development (Gibbs, 2013). As one progresses into each subsequent stage, moral identity is strengthened. At the pre-conventional stage, an individual lacks the moral compass and other people have to guide him/her. At this stage, morality is associated with rearwards or punishment. The second stage, conventional, morality begins to take shape and morality is defined by the set of expectations set by society and the satisfaction one draws from staying in line with the set rules. The final stage, post-conventional, an individual develops a personal perception of what is moral (Gibbs, 2013). There fewer people that advances to this final stage. The three stages are further subdivided at each level. Uber’s case presents a situation of weak moral development. A lack of guidance and self-will to do that that is good for one’s self and others.

Moral choices have consequences; the company’s practices have resulted in harm to its workers, consumers of its services and the company (Richard, 2011). Some of the legal questions presented in the case include:

Discrimination 

Discrimination can be understood to mean the act of treating people differently based on their differences or features that are deemed weak such as race, sex, and age (Dipboye & Colella, 2013). Discrimination at workplaces is an illegal practice, and the constitution protects every worker against such acts. The company has discriminated its workers, which is a violation of the constitution. According to Kohlberg's theory, rating this act of discrimination and failure to obey the law can fall either below at the pre-conventional stage where moral senses are not yet developed or at the post-conventional stage where one act independently in understanding what is moral in their perspective. The latter seems to be the case. Arguing that the management was not aware of the law and its punishment is unrealistic given the growth stage of the parties involved. Neither did the management act to please the public according to the requirements of the conventional stage. On the contrary, the management has violated the law by acting on its principles. Although the act occurs through a self-established law, its results do not accrue to the common good of all or the highest interest but can best be viewed as a misuse of power and position.

Other offenses 

Besides discrimination, the company has also fallen liable to the exploitation of its workers, conduction of surveillance without the consent of the affected, and sexual harassment. These acts compound the moral question of the company. The company has exploited its position and influence in the life of its stakeholders; its moral development and the image are very weak. A disregard of the law and the people is not a virtue to be ascribed but a misuse of the third stage; ability to think and act independently from the set norms in the society.

References

Adetunbi Richard, O. (2011). Moral Choices: An Introduction to Ethics–By Scott B. Rae.  Reviews in Religion & Theology, 18 (4), 589-591.

Dipboye, R. L., & Colella, A. (Eds.). (2013).  Discrimination at work: The psychological and organizational bases. Psychology Press.

Fernando, A. C. (2010).  Business ethics and corporate governance. Pearson Education India.

Gibbs, J. C. (2013).  Moral development and reality: Beyond the theories of Kohlberg, Hoffman, and Haidt. Oxford University Press.

Griffin, R. W. (2013).  Fundamentals of management. Cengage Learning.

Jones, A., Linguistic, M., González III, J. L., Tongzon, J. L., Nakamaru, S., Frank, W., & Cajiga, J. F. (2004). Corporate social responsibility in the promotion of social development: experiences from Asia and Latin America. Inter-American Development Bank.

Kubacki, K. (2016).  Ideas in Marketing: Finding the New and Polishing the Old. Springer International Pu.

Miner, J. B. (2015).  Organizational behavior 4: From theory to practice. Routledge.

Tibbetts, S. G., & Hemmens, C. (2009).  Criminological theory: A text/reader . Sage.

Wells, G. (Ed.). (2013).  Sustainable business: Theory and practice of business under sustainability principles. Edward Elgar Publishing.