2.

1 FUNCTIONS AND EVOLUTION OF HUMAN RESOURCE MANGAMENT

Definitions
Human resource management – the strategic approach to the effective management of an organization’s workers so that they
help the business achieve its objectives and gain a competitive advantages
Human resource planning – analyzing and forecasting the numbers of workers and the skills of those workers that will be
required by the organization to achieve its objectives
Workforce audit – a check on the skills and qualifications of all existing employees
Labor turnover – Measures the rate at which employees are leaving an organization (usually a year) and is an indicator of how
stable the business is.
- Labor turnover = (number of staff leaving over a year/average number of staff employed in a year) x 100
Occupational mobility of labor – extent to which workers are willing and able to move to different jobs requiring different skills
Geographical mobility of labor – extent to which workers are willing and able to move geographical region to take up new jobs
Recruitment – the process of identifying the need for new employees, defining the job to be filled and the type of person
needed to fill it, attracting suitable candidates for the job and selecting the best one
Job description – a detailed list of the key points about the job to be filled, stating the key tasks and responsibilities of it
Person specification – a detailed list of qualities, skills and qualifications that a successful applicant will need to have
Behavioral skills training – designed to improve an individual’s ability to communicate and interact with others both inside and
external to the organization
Cognitive training – exercises designed to improve a person’s ability to understand and learn information
Outsourcing is using a third party to complete some parts of work so that the organization can concentrate on its core activities
Offshoring is outsourcing from another country
Re-shoring is the process of bringing back these activities into the home country (undo offshoring and bring the work back to
the country)

Human resource planning

Human resource management – the strategic approach to the effective management of an organization’s workers so that they
help the business achieve its objectives and gain a competitive advantage
Human resource planning – analyzing and forecasting the numbers of workers and the skills of those workers that will be
required by the organization to achieve its objectives
Workforce audit – a check on the skills and qualifications of all existing employees

HR planning includes two main stages:

1. Forecasting the number of employees required, this depends on several factors:

- Forecasting demand for the firm’s product – influenced by market conditions, seasonal factors, competitors’ actions
and trends
- The productivity levels of staff – if productivity is forecast to increase, fewer staff will be needed to produce the same
level of output
- The objectives of the business – if the business desire to expand it will require more staff.
- Changes in law regarding workers’ rights
- Labor turnover and absenteeism rate – the higher labor turnover, the more employees must be forecasted

2. Forecasting the skills required, this depends on several factors

- The pace of technological change in industry
- The need for flexible or multi-skilled staff

Labor turnover
“Measures the rate at which employees are leaving an organization (usually a year) and is an indicator of how stable the
business is.”
- Labor turnover = (number of staff leaving over a year/average number of staff employed in a year) x 100

High labour turnover is more likely in areas of low unemployment too, as there may be many better- paid and more attractive
jobs available in the local area. It is also true that some industries typically have higher labour turnover rates than others.

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Disadvantages of high labor turnover
- Cost of recruiting, selecting and training new staff
- Difficult to establish team spirit and stable work groups demotivation
- Difficult to establish loyalty and regular familiar contact with customers
Advantages of high labor turnover
- Low-skilled and less-productive staff may be leaving so they can be replaced with more qualified staff
- New ideas and practices are brought into the organization
- If the business wants to reduce staff, this is not necessary with a high labor turnover

Internal and external factors that influence human resource planning- demographic change

Example of demographic change Opportunities Constraints

Natural population growth or decline - May be easier to recruit effective - Increased birth rates may take
employees as the working years before they impact on the
population increases working population
Net migration - May be easier to recruit effective - “brain drain” of qualified and
employees from other countries at experienced staff to other
lower rates of pay countries will reduce
- Highly qualified employees might competitiveness
be recruited from other countries - Immigrants may need more
training e.g. in language and
cultural issues
Ageing population - It is often claimed that older - Older employees may be less
employees are more loyal and flexible and adaptable
reliable than younger workers
- Older employees may have more
experience and skills

Changes in labor mobility

Occupational mobility of labor – extent to which workers are willing and able to move to different jobs requiring different
skills

High occupational mobility of labour helps a country achieve economic efficiency. A mobile workforce means that if jobs are
lost in one industry or region, workers are willing and able to move to other jobs and/or other occupations.This helps to keep
structural unemployment low.

Labor tends to be relatively immobile in developed economies because

- High levels of home ownership
- High-skill levels in one occupation may mean that workers are not equipped to deal with other skills
Mobility tends to be higher in emerging market countries due to
- Low home ownership
- Low skill levels mean that workers can undertake low-skilled jobs in many different industries

Geographical mobility of labor – extent to which workers are willing and able to move geographical region to take up new
jobs

High degree of geographical mobility of labor can lead to overcrowding and very poor living conditions

Many governments pursue policies to attempt to increase labour mobility.These include:

 Relocation grants for key public sector workers

 Job centers and other government offices to advertise job vacancies nationally
 Training and retraining programs for unemployed

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 Recruitment

Recruitment – the process of identifying the need for new employees, defining the job to be filled and the type of person
needed to fill it, attracting suitable candidates for the job and selecting the best one

Job description – a detailed list of the key points about the job to be filled, stating the key tasks and responsibilities of it

Person specification - a detailed list of the qualities, skills and qualifications that a successful applicant will need to have

Recruitment process
1. Establish the exact nature of the job vacancy and draw up a job description. Job description includes
 Job title
 Details of the tasks to be preformed
 Responsibilities involved
 Place in the hierarchical structure
 Working condition
 How the job will be assessed, and performance measured
2. Draw up a person specification
 a detailed list of qualities, skills and qualifications that a successful applicant will need to have

3. Prepare a job advertisement reflecting the requirements of the job and the personal qualities looked for
4. Draw up a shortlist of applicants
5. Conduct interviews

Internal recruitment External recruitment

Applicants already know the selection team and the External applicants bring new ideas and practices (helps
business (internal methods, no need for induction training) keep existing staff focused on the future)
Quicker to recruit internally Wider choice of applicants
Gives internal staff a career structure or a chance to
progress
Cheaper to recruit internally (training, ad, agencies etc.) Standard of applicants could be higher if limited to internal
staff applicants

Training

Training - work-related education to increase workforce skills and efficiency

1. On the job-training
 instructions at the place of work on how a job should be carried out
 watching or working closely with existing experienced members of staff
 cheaper than sending recruits on external courses and the content is controlled by the business
itself
 induction training - introductory training programme to familiarize new recruits with the system
used in the business and the layout of the business site

2. Off the job training

 all training undertaken away from the business
 could be a specialist training center belonging to the firm itself or a course organized by an
outside body (University/computer manufacturer) to introduce ideas that no-one in the firm
currently has knowledge of
o can be expensive

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 3. Cognitive training
 Exercises designed to improve a person’s ability to understand and learn information
 Improve performance in attention, thinking before acting, visual and auditory processing of
information, listening and reading
 “Brain exercises”

4. Behavioral skills training

 designed to improve a person’s ability to communicate and interact with others both inside and
outside the organization
 communication skills, presentation skills, interview skills etc.

Training evaluation

- expensive.
- leads to well-qualified staff leaving for a better-paid job once they have gained qualifications from a business with a
good training structure  poaching’  discourages some businesses from setting up expensive training
programmes.
- Training and a sense of achievement can lead to what were identified by both Maslow and Herzberg as important
motivators.

If there’s no training

- Untrained staff will be less productive, less able to do a variety of tasks (inflexible) and will give less satisfactory
customer service  boredom and demotivation.
- accidents are likely to result from staff untrained on safety matters.

Appraisal of employees

Employee appraisal – the process of assessing the effectiveness of an employee judges against preset objectives (often
undertaken annually)
- allows future performance of the worker to be linked to the objectives of the business
- feature of Herzberg’s motivators

Types of appraisals
1. Formative appraisal
 formal and informal assessments employed by supervision to monitor employee’s progress and
support and provide guidance for improvements
 involves qualitative feedback  details of performance and ways to improve It

2. Summative appraisal
 measuring the level of employee’s success against the predetermined targets
 targets are discussed and agreed with employee before
 The outcomes influence employee’s pay grade, annual bonus, internal promotion

3. 360 – degree
 feedback on an employee from everyone involved in the business who come in contact with the
employee
 (supervisors, customers, subordinates)
 Assesses training and development needs to provide competence-related information for succession
planning

4. Self-appraisal
 employees evaluate their own performance
 supervisor asks the employee to complete an evaluation form (used as a basis for discussion during
annual performance review form) and discuss the results, negotiating final evaluations based on
manager’s and employee’s perceptions

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  predefined annual objectives and performance standards

Benefits of appraisals for employees Benefits of appraisals for the business

Can be motivating Can help to review new initiatives
Can help employees progress along their career path Can act as a check on performance
Can be instructive – learn from mistakes Can be useful to record and document performance

Dismissal/ Redundancies of employees

contract of employment - a legal document that sets out the terms and conditions governing a worker’s job

Dismissal – being removed from a job due to incompetence or breach of discipline

Unfair dismissal – ending a worker’s employment contract for a reason that the law regards as being unfair

Dismissal withdraws a worker’s immediate means of financial support and social status

Before dismissal can happen, the HR department must be seen to have done all that it can to help the employee reach the
required standard or stay within the conditions of employment.

Redundancy – when a job is no longer required so the employee doing this job becomes redundant through no fault of their
own
- no longer required due to a fall in demand, cutting budgets or a change in technology, the person doing the job
cannot be re-employed
- announcements of redundancies can cause loss of job security

Employment patterns and practices

Traditional work patterns and practices:

 Full-time employment contracts
 Permanent employment contracts for most workers
 Regular working hours each week
 Working at the employer’s place of work

Today’s work patterns and practices

 Part-time and temporary employment contracts
 Teleworking from home – staff working from home but keeping contact with the office by means of modern IT
communication
 Flexible hours contacts
 Portfolio working – the working pattern of following several simultaneous employments at any one time

The main reason for these changes?

 Focus on competitiveness, driven by competitive pressures from globalization, by cutting overhead labor costs
(cutting salaries)
 Need for greater labor flexibility with the rapid pace of technological change
 Greater opportunities for outsourcing, especially in low-wage economies

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  Changing social and demographics patterns  increasing number of single parents
for whom – full time employment might be difficult to fit in with their lifestyles

Outsourcing - using another business (a ‘third party’) to undertake a part of the production
process rather than doing it within the business using the firm’s own employees

Consequences of changing work patterns and practices

flexi-time contract - employment contract that allows staff to be called in at times most convenient to employers and
employees, e.g. at busy times of day

temporary employment contract - employment contract that lasts for a fixed time period, e.g. six months

part-time employment contract - employment contract that is for less than the normal full working week of, say, 40 hours,
e.g. eight hours per week

Advantages of the part-time and flexible contracts for the firm

 Staff can be required to work at particularly busy periods of the day but not during the slack times  reduction of
overhead costs to a business  competitive advantage (good customer service without substantial cost increases)
 More staff are available to be called upon should there be sickness or other causes of absenteeism
 The efficiency of staff can be measured before they are offered a full-time contract
 By using teleworking from home for some group of workers, can save overhead costs through means such as
reduction in office building areas etc.
Disadvantages for the firm
 Communication problems, more staff to manage, less motivation, lower productivity, difficult to establish a teamwork
culture

Advantages for the workers:

 This contract could be ideal for certain types of workers, e.g., students, parents with young children
 They may be able to combine two jobs with different firms
 Teleworking allows workers to organize their own working day at home
Disadvantages for the workers:
 Less money
 Paid at lower rate
 Less job security
 Less social contact with fellow workers

Offering temporary employment contracts helps reduce the overhead costs of employing staff.

particularly important to seasonal business activities, such as fruit picking.

Peripheral workers – not part of the central core of full-time employees

Outsourcing and offshoring as HR strategies

Offshoring - the relocation of a business process done in one country to the same or another company in another country

re-shoring (in-shoring) - reversal of offshoring; the transfer of a business process or operation back to its country of origin

The core activities should be left ‘in-house’ and the non-core activities can be considered for outsourcing.

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The functions being outsourced may include
 Finance and accounting (salary, income tax, payroll management)
 Legal issues
 Recruitment
 Employee training
 Legal advice
 Health and safety administration
Which core activities should not be outsourced?
 Cultural change programs
 Recruitment and selection of key jobs
 Succession planning
 Termination of employment/redundancies
 Specialized training
 Strategic HR planning

advantages for outsourcing

 Reduce costs (on HR salaries and administration costs)
 Provide greater expertise
 Free up internal resources to be used in other areas (space, workers, equipment)
 Improved company focus on main aims tasks of the business
Disadvantages for outsourcing
 Loss of jobs withing the business
 Quality issues
 Customer resistance (some customers may not want an offshore product)
 Security (outsourcing forces the company to give private details to another firm)
 Ethical concerns (offshore – cultural issues)
 Costly
 Outside specialists may not get an insight into organisation’s culture and attitudes  inappropriate advice or decision

Advantages for offshoring

- Cost savings if HR functions are undertaken by outsourced business that employs workers in low-wage countries

Disadvantages for offshoring

- Distance and different languages create communication problems
- Will the offshore business employ workers who are familiar with local laws/cultures?

How business’ innovation, ethical considerations and cultural differences influence human resource practices and strategies:

Innovation
 Innovation IN HR
o Team-working, appraisals, job enrichment
o HR managers achieve higher productivity, higher employee retention
o A business will not be successfully innovative unless it recruits and retains the right people – It affects the
HR practices and strategies by having them recruit innovative people
 Innovation TRHOUGH HR
o Matrix organizational structure
o Delegation
o Training
o appraisals

Ethical considerations
 HR plans are based on relationships, which are reflected in the way the business treats its employees
 Lack of cultural awareness, bribery, pay (relative pay levels differ with countries)

Cultural differences

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HRM strategies can be influenced in two main ways by cultural differences:
1. Culture of the organization:
 Hard HRM is an approach to manage staff that focuses on cutting costs (temporary/part-time
employment contracts)
 Soft HRM is an approach that focuses on developing staff so that they reach self-fulfillment and
are motivated to work hard and stay with the business
Limitations of soft HRM
- Fully developed and trained workers by an organization can easily gain employment at higher pay levels in other
business
- Low-cost operations are a way to stay competitive, labor costs can eb cut by employing labor on flexible contracts

Limitation of hard HRM

- Bad publicity regarding treatment of workers  negative consumer and pressure groups actions
- Demotivated workers with little job security - unproductive decreased efficiency and profitability

2. National culture
 HRM needs to adapt to suit national conditions and culture

2.2 ORGANIZATIONAL CULTURE

Levels of hierarchy – Levels of responsibility and seniority in an organization, from the most “senior” to the most “junior”
Chain of command – the formal route through authority is passed down an organization
Span of control – the number of subordinates reporting directly to a manager
Delegation – when a manager gives authority for a particular decision to someone else, yet still holds responsibility for the
outcome (passing authority down the organizational hierarchy)
Centralization – Decisions are made by a small group in a senior position (when decisions are centralized.. small group in
senior positions are making the decisions)
Decentralization – Decisions are made by managers throughout the organization (though senior managers retain control
of key strategic decisions)
Bureaucracy – An organizational system with standardized rules and procedures
De-layering – removing layers of (middle) managers reducing the levels of hierarchy
Accountability – obligation of an individual to take responsibility for his or her activities and to disclose results in a
transparent way
Organizational structure: the internal, formal framework of a business that shows in which management is organized and
linked together and authority is passed through the organization

organisational structure: the internal, formal framework of a

business that shows the way in which management is organised
and linked together and how authority is passed through the
organisation

Organizational charts
 The most common form of presenting the structure of
an organization is through an organizational chart – a
diagram that outlines
- The formal roles of each individual employee
- The responsibilities of employees
- Reporting lines (who they need to report to when taking decisions etc. / superior person)
- Who has the overall responsibility for decision-making
- Formal channels of communication

Key principles of organizational structure

Levels of hierarchy – a stage of the organizational structure at which the personnel on it have equal status and authority

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Span of control – the number of subordinates reporting directly to a manager

Chain of command – the route through which the authority is passed down the organization, from the chief executive and the
board of directors

Types of organizational charts:

 Tall organizational structure:
“One with many levels of hierarchy and, usually narrow spans of control”
- Many levels of hierarchy
- Narrow spans of control (CEO have control of ex. 2 people,
the further down results in increased span of control)
- Centralized decision making
- Long chains of command
- Autocratic leadership – one person controls all the decisions
and takes very little inputs from other group members
- Limited delegation
Disadvantages:
- Communication through the organization can become slow
with messages becoming distorted or “filtered”
- Span of control are likely to be narrow
- There is likely to be greater sense of remoteness among those one lower levels from the decision-making power
at the top

 Flat organizational structure

“One with few levels of hierarchy and wide spans of control”
- Few levels of hierarchy
- Wider spans of control
- Decentralized decision making
- Shorter chains of command
- Democratic leadership
- Increased delegation
Advantages:
- Communication between top and bottom of the pyramid due to the few
levels of hierarchy  short chain of command
- Encourages managers and supervisor to delegate more extensively (delegate to more people)

Delegation and accountability

Delegation- passing authority down the organizational hierarchy
Advantages of delegation
- Gives senior managers more time to focus on important strategic roles
- Shows trust in subordinates  can motivate and challenge them
- Encourages staff to be accountable for their work-based activities
Disadvantages of delegation
- Lose control of the outcome
- Managers may only delegate boring jobs  decrease of motivation
- The delegation will be unsuccessful if the authority given to a subordinate is insufficient
- If the task is not defines or inadequate training is given the delegation won’t succeed

Accountability – the obligation of an individual to account for his or her activities and to disclose results in a transparent way

Delayering
Delayering- removal of one or more of the levels of hierarchy from an organizational structure
Advantages of delayering
- Reduces costs
- Shortens the chain of command and improves communication

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 - Increases workers’ motivation due to less remoteness from top management and chances of having more
responsibility
Disadvantages of delayering
- Make managers redundant which could be costly with redundancy payment
- Increased workloads for managers who remain  stress and increased workloads
- Fear of redundancies reduces the sense of security  one of Maslow’s needs

Bureaucracy
Bureaucracy – an organizational system with centralized procedures and rules

Centralisation and decentralisation

Centralization – keeping all of the important decision-making powers within head office or the centre of the organization
- In the case of multinational business’ the decisions are made within the head quarter
Advantages of centralization
- The business has consistent policies throughout the organization. This prevents conflict (One person will decide
all the policies  these policies apply for everyone)
- Senior managers are experienced decision makers
- A fixed set of rules and little discussion will lead to fast decision-making

Decentralization – decision-making powers are passed down the organization to empower subordinates and regional/product
managers
Advantages of decentralization
- More local decisions can be made which reflect different conditions (closer contact with consumers)
- Junior managers can develop new skills  prepares them to move to challenging roles
- Delegation and empowerment have positive effects on motivation

Different types of organizational structures

 The hierarchal structure

“a structure in which power and responsibility are clearly specified and allocated to individuals according to their standing or
position in the hierarchy, can be organized by product, function or region”
By product

Advantages of a hierarchal structure

- Having a senior executive makes it more likely the division will receive the resources it needs from the company
- Product division can work well because they allow a team to focus on a single product or service
- Allows to build common culture contributing to morale and better knowledge of division’s range of products
Disadvantages of a hierarchal structure
- Divisions may compete with each other for available financial resources
- Can result in lack of coordination

By function
- The traditional form of organizational structure (see above, tall and flat)
Advantages
- Grouping employees by functional skills can improve efficiency
- Socialists are cluster together which promotes collaboration and opportunity for further development

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Disadvantages
- One way communication is the norm
- Lack of coordination between departments
- Inflexible and leads to change resistance, managers tend to defend their position and importance o their
department

By region

Advantages
- Communication between representatives can be direct and personal rather than establishing working
relationships on the other side of the world
- Grouping employees into regional sections can encourage the formation of collaborative teams that work
effectively together
- Recruiting local managers offers companies the advantage of having leaders who are familiar with local business
environment, culture
Disadvantages
- There may be conflict and unhealthy competition between different areas
- It could be more difficult to be consistent in core company beliefs
- Inconsistent company strategies in different regions due to poor coordination between regional offices

Factors influencing organizational structure

 The size of the business and the number of employees
 The style of leadership culture of management
o Autocratic  narrow span of control
o Democratic  few levels of hierarchy, extensive delegation
 Economic recession or increased competition might lead to delayering to reduce overhead costs
 Corporate objectives
 New technologies, especially IT can lead to reduced need for certain employee types

Changes in organizational structure:

There are alternative organizational structures other than the hierarchical type

Project based organization / matrix structure - an organisational structure that creates project teams that cut across
traditional functional departments

 More flexible structure and responsive to market demands

 Project managers run teams of employees focusing on individual projects
 After the project is completed, the team is split up and reassembled to begin another project
 Many teams operate at once, but do not interact because they are focused on completing their own projects
 Each team borrows members of different departments to complete the project such as accountants, operations
managers and marketing specialists
Advantages
- Allows communication between all members of the team
- Less chance of people focusing on just what is good for their department
- The crossover of ideas between people with specialist knowledge in different areas tends to create more
successful solutions

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 - Teams can be created quickly  system is designed to respond to changing markets or technological conditions
Disadvantages
- less control from the top as teams may be asked to undertake and complete a project. This puts on pressure on
junior management that is not as experienced
- reduced bureaucratic control
Horizontally linked structure
“Usually found in tech, employees are grouped by function into planning, building and running”

Changes in organizational structure

Shamrock organization
- Charles Handy
- Businesses can reduce costs, gain a competitive advantage and increase response
time by trimming their workforce to retain only a multiskilled core, non-central
functions are outsourced

1. Core employees  managers, technicians, and employees essential to the business

(full-time, permanent contracts)  expensive, so numbers are reduced
2. Outsourced work  Contractual fringe, these workers provide specific services that do not have to be kept within the
core (catering, transport, IT)
3. Flexible workforce made up of part time, temporary and seasonal workers  likely to lose jobs in economic
downturn

Communication in an organization

effective communication: the exchange of information between people or groups, with feedback

features of effective communication

- Sender
- Clear message
- Appropriate messenger
- Receiver
- Feedback

Feedback – the response to a

message by a receiver
“Successful businesses
communicate effectively with
both their internal and their
external stakeholders”

Importance of effective communication

What businesses may consider when communicating:

- Stakeholder group (who is the receiver – level of formality)
- Specific nature of the message

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 - Medium / channel (where are you going to communicate this through)
- The context
- High vs low context cultures (what is the culture of the receiver)

Impact of effective communication

- Employee’s motivation and labor productivity
- Employee’s ideas can help problem solving
- Speed of decision making
- Speed of response to market changes
- Reduces risk of errors
- Effective coordination between different departments

Main communication issues that most businesses must focus on

- Cultural differences (cultural bias)
- The challenge of multinational communication

Cross-cultural communication

“One of the main issues that most businesses must focus on is the impact of different cultures on communication – cross -
cultural communication”

 Low context cultures

- Messages are explicit, direct, easily understandable by anyone
- The use of non-verbal communication is limited (body language etc.)
- Written communication is common and relied on, contracts tend to be long and extremely detailed
- Decisions are made after evaluation of facts and data
- Rules and procedures are followed closely
- Learning occurs by following clear instructions and explanations of others
- Speed, efficiency and goal-oriented values
German, Canadian, Australian, English

 High context cultures

- Messages are implicit and indirect: context is more valuable than words
- The use of non-verbal communication (voice, gestures, etc.) is significant
- Reliance on written communication is low: knowledge of “unwritten” rules tends to be assumed
- Decisions are based on feelings and emotional factors
- Rules and procedures are somewhat flexible. Relationships are the priority
- Learning occurs by observing first and then replicating
- Accuracy and thoroughness are valued
Japanese, Chinese, Indian, Spanish, Asian, Slav

Sequential cultures
- Germany, UK, Sweden
- Business people give full attention to one agenda item after another

Synchronic cultures
- Asia, South America
- Past, present and future are interrelated

Using technology in communication

Advantages
- Can communicate without being physically with another employee
- Fast communication
- Allows collaboration between workers on report, programming and document production
- Cloud computing allows multinationals to operate globally without sacrificing security or limiting user access
Disadvantages
- May require staff to be trained

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 - Can reduce social contact  sense of isolation
- Security issues (important to have hard copies)
- Information overload (too many messages are received to identify and prioritize them)

2.3 LEADERSHIP AND MANAGEMENT

Manager: Responsible for setting objectives, organizing resources and motivating staff so that the organization’s aims are met.
- Managers get things done not by doing all jobs themselves but by working with and delegating to other people.

Theories of management:
Henri Fayol suggested the following functions of management
- Setting objectives and planning
- Organizing resources to meet the objectives (delegate tasks correctly so the staff meet the objectives)
- Directing and motivating staff
- Coordinating activities
- Controlling measuring performance against targets (team, workers, etc.)

Henry Mintzberg identified 10 roles common to work of all managers. These are divided into three groups:
- Interpersonal roles – dealing with and motivating staff at all levels of the organization
- Informational roles – acting as a source, receiver, and transmitter of information
- Decisional roles- taking decisions and allocating resources to meet the organizational objectives

The differences between management and leadership

Leadership - the art of motivating a group of people towards achieving the common objective (communicate the vision)

Management – set of processes that keep the organization functioning

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What makes a good leader
- Motivates and inspires
- Multitalented
- Desire to succeed
- Anility to thing beyond the obvious
- Innovated and encourages people to change
- Believes in doing the right thing (ethics, corporate social responsibility)
- Is respected and trusted by followers

Leadership styles
Autocratic
“A style of leadership that keeps all decision-making at the center of the organization”
- absolute power
- leaders set objectives themselves, issue instructions and check to ensure they have been carried out
- gives little information to staff
- supervises workers closely
- only one way communication (leader communicates to managers and subordinates, but they do not communicate
back, top to bottom)
Drawbacks:
- demotivates staff who wants to contribute and accept responsibility
- workers depend on leaders for guidance and won’t show initiative  essential supervision
- Employees do not participate in decision-making
Possible applications:
- Defense forces and police the quick decisions are needed
- In times of crisis when decisive action might be needed

Paternalistic
A type of fatherly style typically used by dominant males where their power is used to control and protect subordinate
employees who are expected to be loyal and obedient
- Strong father like figure takes key decisions but in interests of employees
- Feedback and consultation encourage but not taking part in decision-making
Drawbacks:
- Low staff motivation (not taking part in decision making)
- Dependency of employees on the leader
Possible applications
- In a family business where leaders want to take decisions themselves but value employee loyalty
- In a business with a formal and hierarchal structure

Democratic
“A leadership style that promotes the active participation of workers in taking decision”
- Participation encouraged (better final decisions, staff offers work experience)
- Two-way communication
- Workers are given information about the business to encourage involvement

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 - Easily adaptable to technological change
Drawbacks
- Time consuming
- Decision making is slower
- Level of involvement – some issues may be sensitive
Possible applications
- Businesses that expect their workers to contribute fully
- Businesses that have an experienced and flexible workforce

Laissez-faire
“A leadership style that leaves much of the business decision-making to the workforce”
- Managers delegate all authority and decision-making powers
Drawbacks
- Workers may not like the lack of structure and direction new line like feedback may be demotivating  workers are
never sure if what they do is right  lack of confidence, poor decisions
- Lack of feedback
Possible applications
- When managers are too busy or too lazy
- In research institutions where experts will arrive to solutions on their own

Situational leader
“effective leadership varies with the task in hand and situational leaders adapt their leadership style to each situation”
- Style of leadership will depend on the nature of the task and the work group skills
Drawbacks
- Varying the style of leadership may be difficult for some workers to accept
Possible applications
- By allowing flexibility of leadership style different approaches can be used in different situations with different groups
of people

Effectiveness of leadership styles

The style used will depend on many factors, including:

 the training and experience of the workforce and the degree of responsibility that they are prepared to take on
 the amount of time available for consultation and participation
 personality of managers
 the importance of the issue
 management culture

Ethical considerations and leadership styles

ethical leadership: leading by knowing and doing what is ‘right’

act and make decision ethically + lead ethically

Indicators of ethical leadership

- The ability to ignore personal interests for the sake of the organization
- A willingness to encourage and consider feedback
- Encouragement of leadership in others
- Making the consideration of ethics and ethical questions part of the culture of the organization
- Understanding importance of leadership and sharing it

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 Cultural considerations and leadership
The style of leadership or management that an individual adopts will be influenced by
- Their own culture
- The cultures of the people they lead or manage

According to Hofstede, cultural influences relevant to business have several dimensions:

Employees from cultures with great power distance prefer

organizations with autocratic leaders
Employees from countries or cultures with low power index might
resent an autocratic leadership and would probably perform better
under democratic leadership

Individualistic  strong, self-motivated managers who act to

maximize their personal gain, distancing themselves from employees,
autocratic and beurocratic styles
Collectivistic  managers act to help the community/business, less
autocratic

2.4 MOTIVATION

Definitions
Intrinsic motivation: motivation which comes from the satisfaction of carrying out a particular activity

Extrinsic motivation: motivation derived from external factors such as money

Introduction:
What is motivation?

motivation: the intrinsic and extrinsic factors that stimulate people to take actions that lead to achieving a goal
 The desire to achieve a certain result or outcome
 The more an individual desires an outcome, the harder they will work, the more motivated they will be

How to detect demotivated staff

1. Absenteeism
2. Lateness
3. Poor performance
4. Accidents
5. Labor turnover
6. Grievances
7. Poor response rate
Motivational theories

Taylor – scientific management (to reduce level of inefficiency)

How to improve worker productivity

1. Select workers to perform a task
2. Observe them performing the task and note the key elements of it
3. Record the time taken to do each part of the task
4. Identify the quickest method recorded
5. Train all workers in the quickest method and do not allow them to make any changes to it
6. Supervise the workers to ensure that this method is the best way to use and that the time it should take is not
exceeded
7. Pay the workers on the basis of the results (economic man – humans are motivated by money alone)

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Evaluation of how relevant Taylor’s views and methods are today

Approach Relevance to modern industry Limitations

Some managers believe it is the only way Money is not the only way, workers have
Economic man
to motivate a wide range of needs
Still careful staff selection in every Requires an appropriate selection
Select the right people for each job
business procedure
Observe and record the performance of Widely adopted, it is employed as a Workers saw it as the way of making
staff technique but with involvement of staff them only work harder
Piece rate payment system Limited relevance Quality may be sacrificed, rush

Maslow’s hierarchy of human needs

 Psychologist Abraham Maslow put forward his
theory of what motivates human beings
 All human beings have similar needs, and these
needs have an order of priority
 Reversion is possible
 Work fulfills an important role in satisfying human
needs
 Once a need has been satisfied, it will no longer
motivate the employee

Physiological:
 Work helps us satisfy these needs by providing
money to buy food, water, shelter etc.
Safety:
 We seek the safety needs of security, employment, of resources, of health and property
 Work helps to satisfy these needs by providing money to buy security
Love and belonging:
 Work creates an environment where people can interact, talk and share a purpose
 Workers communicate and feel involved
Self-esteem:
 Self-esteem grows when you feel good about yourself, proud of something you have done
 Recognition of work done well- status, advancements and responsibility
Self-actualization:
 Refers to people’s need to fulfill their potential  it is the ultimate sense of achievement
 Not everyone achieves this, however work provides a platform for trying such.

Maslow’s model has great potential appeal in the business world. The message is clear – if management can find out which
level employee had reached, then they can decide on suitable rewards
Limitations
 Not everyone has the same needs
 It can be hard to identify where an employee is
 Jobs must continually offer challenges and opportunities for fulfillment  Self-actualization is never permanently
achieved

Herzberg and the “two factor theory”

Believes in hygiene factors and motivator factors

Hygiene factors (job dissatisfaction) – aspects of worker’s job that have the potential to cause dissatisfaction

 Company policy and administration

 Wages, salaries and financial rewards
 Quality of supervision
 The quality of interpersonal relations – relations with other employees

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  Working conditions
 Job security

Motivator factors (job satisfaction) – aspects of a worker’s job that can lead to positive job satisfaction

 Status, job title, responsibility

 Opportunity for advancement (training, acquiring new skills, moving up the hierarchy)
 Gaining recognition
 Challenging / stimulation work
 Sense of personal achievement

Consequences

 Pay and working conditions can be improved and these will remove dissatisfaction about work + motivators
 Motivation can be provided by Job enrichment (aims to use full capabilities of workers by giving them the opportunity
to do more challenging and fulfilling work)
 Offer higher pay, improved conditions and less heavy handled supervision of work

Adam’s equity theory

 Calls for a fair balance to be struck between an employee’s inputs (hard work, skills, loyalty, commitment, trust) and
outputs (salary, benefits, recognition, achievement)
 Similar to Taylor and Maslow as the manager would need to identify which factors are wanted by the employee in
order to ensure motivation takes place

Pink intrinsic motivation

3 elements

 Autonomy (people want to feel trusted, responsible, can have a say, give feedback, take decisions)  higher job
satisfaction
 Mastery (sense of achievement, progress, success)
 Purpose (helps get the highest level of motivation, psychological purpose)

Financial methods of motivation

Salary:
“annual income that is usually paid on a monthly basis”
Advantages of salary system
 Salary gives security of income
 It is suitable for jobs where output is not measurable
 It aids in costing – the salary will not vary for one year
 Gives status
Disadvantages of salary
 Income is not related to efficiency or productivity
 Regular appraisal may be needed to assess whether an individual should move up a salary band

Time-based wage rate

Wages:
“payment to a worker made for each hour worked”
Advantages
 security
Disadvantages
 Speed of work is not rewarded
 Can have employees stretch the work out unproductively

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Piece rate
“a payment to a worker for each unit produced”
Advantages
 Encourages greater effort and faster working
 The labor cost for each unit is determined in advance and helps to set a price for the product
Disadvantages
 May lead to falling quality and safety levels  workers rush to complete units
 Little payment security
 Workers settle for a certain pay level and will not be motivated to produce more than the certain level

Commission
“a payment to a salesperson for each sale made”.
Advantages of commission
 Motivates staff to sell the products
Disadvantages of commission
 Pressure of sales can lead to a bad impression of the company -> staff tries hard to convince the customer to buy a
product or a service

Performance related pay:

“a bonus scheme to reward staff for above average performance”
- Bonus payable in addition to basic salary
Requires
- Target setting
- Annual appraisals
- Paying workers bonuses
Advantages of PRP
 Staff are motivated to improve performance if they are seeking increases in financial rewards
 Target setting can help to give purpose and direction to the work of an individual
Disadvantages of PRP:
 It can fail to motivate if staff are not driven by the need to earn additional financial rewards
 Team spirit can be damaged by the rivalry generated by the competitive nature of PRP
 Claims of manager favourism can harm manager-subordinate employee

Profit-related pay:
“a bonus for staff based on the profits of the business – usually paid as a proportion of basic salary”
Advantages
 Employees will feel committed to the success of the business and strive to achieve higher
performance and cost savings
 As the bonuses are paid out of profits, the scheme does not add to business costs
Disadvantages
 It is believed that those who take a financial risk should profit for the success of a business
 Profit that are paid at the end of the year will not motivate the staff throughout the year

Employee share ownership plan:

“the company offers shares in the company to its employees, usually at no cost”
- Establish the workers as a part-owners and managers
Advantages
 Employees will feel committed to the success of the business and strive to achieve higher performance and cost
savings
 As the bonuses are paid out of profits, the scheme does not add to business costs
 Business likely to attract better recruits
 Potential conflicts between owners and workers is reduced as everyone has an interest in higher profits
Disadvantages

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  Profit that are paid at the end of the year will not motivate the staff throughout the year
 Schemes are costly to set up and operate
 Reduces profits available to be paid to owners (reducing dividends)

Fringe payments:
“are extras that are offered to employees on top of their wage or salary”.
- Company cars, health insurance, educational assistance, childcare
- Used in order to give status to higher-level employees and to recruit and retain best staff

Advantages
- Gives employees added benefits, as fringe benefits are not taxed
Disadvantages
- Difficult to assess the impact of these benefits on productivity

Non-financial methods of motivation

Job enrichment
“Attempting to motivate employees by giving them opportunities to use full range of abilities”
- Involves slackening of direct supervision  workers take more responsibility for their own work and are allowed
some degree of decision-making
- Introducing job enrichment  job redesign (restricting the job – usually with employee’s involvement and agreement
to make work more interesting, satisfying and challenging)
Advantages
 Allows employees to better their skills
 Two-way communication
 Allows employees to test out new work tasks
 Complete units of work so that the contribution of the worker can be identified, and more challenging work offered
(cell production)
Disadvantages
 Not likely to give long-term job satisfaction

Job enlargement
Attempting to increase the scope of a job by broadening or deepening the tasks undertaken, may include job enrichment and
job rotation
- Includes job rotation and enrichment
Disadvantages
- Unlikely to lead to long-term job satisfaction

Job rotation
The practice of moving employees between different tasks to promote experience and variety
- Widespread in businesses that have production process where different jobs – of similar degrees of difficulty and
challenge exist
Advantages
- Workers are less likely to become bored
- Increases variety and number of skills workers are required to use
Disadvantages
- Does not offer true challenge or enrichment from the work experience

Team working
Production is organized so that groups of workers undertake complete units of work
Advantages
 Workers are likely to be more motivated as esteem needs are more likely to be met (Maslow) +job enrichment can be
achieved (Herzberg)
 Increased motivation results in less labor turnover  reduces business costs
 Can reduce management costs as fewer middle managers will be required  delayering

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Disadvantages
 Not everyone is a team player  some are more efficient working alone  those who are not used to work
collaboratively might need to be trained
 Teams can develop values and attitudes that are in conflict with those of the organization itself
 Team working will incur training cost

Delegation and empowerment

“passing authority down the hierarchy”
- Workers are allowed some degree of control over how the task is undertaken and resources needed

Evaluation of financial and non-financial motivational methods

Factors influencing the degree of emphasis on pay and non-pay related factors
- Leadership style
- Culture of the organization
o Workers are lazy and cannot be trusted  piece rate or payment by results
o Views workers as partners  production will give workers chance to accept responsibility and participation
(monthly salary payment)

Cultural differences and financial rewards

These cultural differences seem to have the most impact on the reward system used
 Performance orientation – to which extent performance improvement, innovation and striving for excellence is
encouraged (UK, Germany, China)
Performance-related pay, bonus, share purchase schemes
 Future orientation – whether individuals are focused on delaying immediate reward for investing in the future
 Institutional collectivism – the degree to which organisations reward or encourage the distribution of resources to
groups

Cultural differences and non-financial rewards

 Individualism vs. collectivism
individualism – recognition for your own work may be appreciated
collectivism – recognition for your own work may not be appreciated as people emphasize team spirit. Hard work as a part of
team

2.5 Organizational (corporate) culture

Organizational culture – The shared values, attitudes and beliefs of employees in an organization that control the way they
interact internally and with external stakeholder groups. (may differ with departments)

Introduction:
 The culture of an organization gives it a sense of identity and is based on the values, attitudes and beliefs of
the people who work in it.
 The organizational culture defines what is normal within an organization.

Elements of organizational culture

Indications of the culture of an organization can be gained through:
 Mission and vision statements
 The record of senior staff, e.g., in handling ethical issues
 The organization’s ethical code of conduct (The dos and don’ts that must be observed by staff)
 Strategies on social and environmental issues
 The example set by senior managers (How they treat subordinates and make decisions)
 The industry and country the business operates in

Types of organizational culture

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Power culture - concentrating power among a few people
- Decision making is centralized around the CEO or managers
- Autocratic leadership style.
- Hierarchical structure
 Quick decision making and responds quickly to issues or changes  few people are involved.
 Decision making is not discussed.
 Reliance on financial incentives to motivate employees  risky and inappropriate decisions

Role culture - each member of staff has a clearly defined job title and role
- Decision making is based on a small number of senior management positions
- Bureaucratic leadership style.
- Staff operate within rules and show little creativity
- Tall hierarchical structure
 Clear lines of authority, less confusion and conflict
 Decision making is slow and lacks flexibility

Task culture - based on cooperation and teamwork

- Decision making is decentralized
- Groups are formed to solve particular problems, empowered to make decisions
- Matrix organization structure (employees report to two or more managers rather than one)
 Unity of effort towards mutually agreed goals
 Team members are encouraged to be creative, strong team spirit  motivating environment
 Importance of highly skilled employees in key positions

Person culture - when individuals are given the freedom to express themselves and make decisions
- Decision making decentralized with specific individuals
- Found in scientific environment, professional partnerships
 Individuals have a great deal of power
 Little control for organizations and difficult to manage
 No emphasis on teamwork, no creativity

Entrepreneurial culture - encourages management and workers to take risks, to come up with new ideas and test out new
business ventures
- Decision making is made by individuals with entrepreneurial characteristics
- Success is rewarded, failure is not criticized
- Flexile organizational structure
 High rewards
 High motivating levels among those who enjoy challenges and risk taking
 High risk

Reasons and consequences of cultural clashes

 A business grows rapidly and there is conflict between established employees and new managers or new
employees who are recruited
 A business merges or acquired another business with a different culture
 New leaders with different values and beliefs

Key elements in effective cultural change:

 Concentrate on positive aspects of the business and how it currently operates and enlarge on these
 Obtain the full commitment of all key personnel. If they cannot or will not change, it is better to replace
them
 Establish new objectives and mission statements
 Encourage bottom-up participation (feedback) of workers when defining existing problems or new
solutions.

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  Train staff in new procedures and ways of working
 Change the staff reward system

How organizational culture influences individuals

 Behavioral control – helps prevent conflict, ensure ethical code is observed, present a united business.
 Encourages stability – High level of stability of understanding of the business operations
 Sources of identify – Defines the people working for the organization with the culture of the organization

Evaluating the importance of organizational culture

 The values of a business establish the norms of behavior of staff
 The way managers and workers treat each other
 Support brand image and relationship with customers
 Determines the strategic decisions made
 Improved economic performance and long-term success of organizations

2.6 Industrial/employee relations

The role and responsibility of employee and employer representatives

Employee representatives - trade unions

Trade union – an organization of working people with the objective of improving the pay and working conditions of its
members and providing them with support and legal services
 Power through solidarity  collective bargaining
 Individual industrial action  measures taken by the workforce or trade union to put pressure on
management to settle an industrial dispute in favor for employees
 officials of these unions act as representatives of workers’ interests during negotiations with employers
 provide legal support (unfair dismissal, poor conditions)
 trade unions negotiation teams are generalists who develop expertise, have legal training for drafting
language in agreements (can eb specialist)
 union recognition – when an employer formally agrees to conduct negotiations on pay and working
conditions with a trade union rather than bargaining individually with each worker
 additional channel of communication with the workers

Employer representatives
The trade union or employee representative may negotiate:
 Single employer - Representing a company's shareholders or form a group of businesses to reach an
industry wide agreement
 Represent the arguments for or against a particular form of viewpoint of shareholders/owners
 Want to achieve lowest cost agreement possible, mutually satisfactory, motivational for
employees
 Collective employers’ associations

Collective bargaining - The negotiations between employee’s representatives (trade unions) and employers and their
representatives on issue of common interest such as pay or condition of work

Actions taken by employees and employers

Union
Leaders such as trade unions can use a number of measures to “encourage” employees to accept their demands for improving
pay and conditions:
 Negotiation
 Strike action - employees withdraw their labor for a period of time
 Overtime bans – employees refuse to work more than contracted number of the employment contract
 go slow – employees working at a minimum pace as demanded by their contract of employment
 Work to rule – employees refuse to do any work outside the precise terms of the employment contract

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 Employers
Settling disputes with the unions can increase the long-term profits of the business, this can be reached through:
 Negotiations
 Public relations (media) – gain public support for employer’s position, puts pressure on the union to settle
for a compromised solution
 Threats of redundancies – poor publicity, sacrificing ethicality
 Changes of contract
 Closure
 Lockouts - short term closer off the factory or business to prevent workers from getting paid

Strength of unions and employers

Union/employee power will be strong when: Employee power will be strong when:
 Most workers belong to one union  Unemployment is high  alternative
workers to take
 All workers agree to take the industrial  The employer takes action
action decided
 Inflation is high  Profits are low and threats of closure is
taken seriously
 Labour costs are a low proportion of total  Threats of relocation to low-cost countries
costs are taken seriously

Sources of conflict in the workplace

Conflict often arises between employers and employees and labor:
Potential clashes between these two groups:

Cause of
Common management view Common employee view
conflict
Business
job losses, retraining in new skills that causes uncertainty over
change, e.g. Change is necessary to remain
ability to cope. Demands for increased ‘flexibility’ from staff
relocation or competitive and profitable.
may reduce job security.
new technology
Business needs to cut
Rationalisation
overheads and be flexible and Cost cuts and rationalisation always seem to fall on employees
and
adaptable to deal with – not the senior managers or owners of the business. Reduced
organisational
‘globalised’ low-cost job security will damage employee motivation.
change
competition.
The market determines what
the appropriate pay level should
Pay levels and If profits are rising and managers’ bonuses too, then
be. An increase in pay or costly
working employees deserve pay increases – at least in line with inflation
improvements in working
conditions to maintain the real value of incomes.
conditions might make the
business uncompetitive.

However, conflict can also occur between employees or between groups of employees. Reasons why potentially damaging
conflict might exist in the workplace:
 poor communication
 difference in personalities
 different values
 competition

Approaches to conflict resolution

Single-union agreement - An employer recognized just one union for purposes of collective bargaining
- inter-union disputes
- just one union may not effectively represent the range of skilled staff and their needs at work

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No-strike agreements – unions sign an agreement with employers not to strike in exchange for greater involvement in
decisions that affect the workforce
There are two main reasons as to why giving up most effective form of industrial action
 it improves the image of the union to encourage employees to become members
 these deals are often agreed to in exchange for greater union involvement in both decision making and
representing employees in important negotiations.

Conciliation and arbitration

A conciliator – the use of a third party in industrial disputes to encourage both employer and union to discuss an acceptable
compromise solution

Arbitration - resolving an industrial dispute by using an independent third party to judge and recommend an appropriate
solution
 Binding arbitration – both parties agree to accept arbitrator’s view
 Pendulum arbitration - both sides must accept the decision of the arbitrator and the arbitrator Is forced to
accept either the union’s pay claim or the employees’ pay offer because no compromises is allowed.

Employee participation and industrial democracy

Participation at work by employees can take different forms:
 Industrial democracy - The workers control over the industry
 Employee or trade union directors represent the workers approach to major company issues at the highest
decision-making level
 Works councils - discussing issues in the business, major organizational changes and health and safety
 Autonomous work groups and quality circles led to implement employee participation in decision making ,
avoiding the “us and them” environment

Employee resistance to change

The managers and the workforce of a business may resent and resist strategic change for any of the following reasons:
 Interpretation of circumstances – uncertainty of one's job or the future of the business leads to increased
anxiety resulting in resistance
 Fear of failure - required change skills and abilities that despite training may be beyond the workers
capabilities
 Self-interest - workers could lose status or job security as a result of change
 Misinformation - false beliefs about the need to change
 Lack of trust
 Inertia - reluctance to change and try to maintain the status quo

Strategies for implementing managing and controlling change

1. Understand what change means - change management requires firms to be able to cope with
dramatic one-off changes as well as more gradual evolutionary change
 Change management – planning, implementing, controlling and reviewing the movement of an
organization from current state to a new one
 Incremental (slow)/ dramatic (fast, causes problems)

2. Recognize the major cause of change – technological innovation, macroeconomic changes, legal
changes, competitors’ actions

3. Understand the stages of the change process - a checklist with essential points that managers should
consider when attempting to introduce significant change in an organization is vital to complete, this can
include new visions and objectives, plan the timing of the change, communicate, focus on training.

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 4. Lead change, not just manage it
 manage - new objectives, resources, appropriate action taken.
 Lead - having dynamic leader, motivating staff, ensuring acceptance of change is part of the
culture of the organization, visible support of all senior managers who will help the change
process to be accepted at all levels and within all the departments of the building.

5. Use project champions – a person (from within organization) assigned to support and drive a project
forward and who explains the benefits of change and assists and supports the team putting changes into practice

6. Use project groups or team – created by an organization to address a problem that requires input from
different specialists
 Problem solving through team building
 created by an organization when a difficult problem arises regarding a major change in the
business strategy or structure

Planning and promoting change

Introducing big changes too quickly in response to crisis within business will lead to great resistance then change with his plan
for an explain a good time to all stakeholders.

Gaining acceptance of change by both the workforce and other stakeholders will be more likely to lead to a positive outcome
than imposing change on unwilling groups.

Best way to promote organizational change

 establish sense of urgency
 create effective project team to lead the change
 develop a vision and strategy for change
 communicate the changed vision
 empower people to take action
 generate short term gains from change that benefit many people
 consolidate these gains and produce more changes
 build change into the culture of the organization

Employer employee relations and innovation

Product and process innovation can lead to conflict between employees and employers.
- Product innovation  requires workers to acquire new skills
- Process innovation  result in significant changes in working methods and practices (can be resisted by employees)

Employer - employee relations and cultural differences

The ways in which employer employee relations are organized is different in different countries (how employees and
employers relate to each other and how they attempt to solve disputes)
- Japan  high value on family relations and responsibilities  model carried over into workplace, employers -parents
 unity  collectivism  low levels of conflict
- Saudi Arabia  no trade unions/strikes/collective bargaining according to the law
- Germany  collective bargaining, factory-based relations  high productivity and willingness to accept change,
rational organized culture  respect for employee right and preference for talking and participating rather than open
conflict

Employer-employee relations and ethical considerations

Even when the law does not govern ethical issues, employers and employees (through representatives) – may be influenced in
their actions or decisions regarding their relations by ethical considerations.

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