Monday, 15 August 2016

Strengths & Weaknesses of the Three Ethical Approaches to Managerial Behaviour

1. Utilitarian Approach.

Strengths
• Encourages efficiency and productivity.
• Consistent with profit maximization; is easiest for managers to understand.
• Encourages looking beyond the individual to assess impact of decision on all who might be affected.

Weaknesses
• Virtually impossible to quantify all the important variables.
• Can result in bias allocation of resources, particularly when some who are affected lack representation or voice.
• Can result in ignoring rights of some whoa are affected, to achieve utilitarian outcomes.


2. Moral Rights Approach

Strengths
• Protects the individual from injury; consistent with rights to freedom and privacy
• Consistent with accepted standards of social behaviour, independent of outcomes.

Weaknesses
• Can imply individualistic selfish behaviour, if misinterpreted may result in anarchy.
• Can foster personal liberties that may create obstacles to productivity and efficiency.


3. Justice Approach

Strengths
• Attempts to allocate resources and costs fairly
• Is the democratic approach
• Protects the interest of those affected who may be underrepresented or lack power

Weaknesses
• Can encourage a sense of entitlement that reduces risk, innovation and productivity.
• Can result in reducing rights of some in order to accommodate rules of justice.

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