BBM3000 Study Guide
BBM3000 Study Guide
BBM3000 Study Guide
Sciences
Managing tomorrow
BBM3000/EBM3012
MANAGEMENT 3
Staff and students affiliated to the Department Management Practice at the NMU
pledge to be guided in their actions and behaviours by the following Six Core Values:
Ubuntu - means respecting fellow human beings, treat them fairly, disagree
honestly, enjoy their fellowship and work together for a common goal and help each
other achieve it. We commit ourselves to the tenets of ubuntu by recognising that
“we are, because others are”. We therefore treat one another with dignity and
respect, and do not entertain harassment, discrimination or incivility of any sort. We
will interact with our fellow students and with our staff in a timely, professional and
responsible manner. We expect the same supportive conduct from staff in their
relations with students and colleagues, both in the classroom and in any other area
of interaction.
Excellence - means an individual's highest level of quality and his will to win, his
personal excellence. We commit ourselves to excellence in our academic work by
fulfilling and exceeding course requirements. We will make the time commitment
necessary to prepare properly, make meaningful contributions and participate in
group and class activities with thoroughness and dedication. We will be on time for all
classes and formal activities, and will turn all work in on time. We realise that the
programmes involve teamwork and accept the responsibilities associated with team
membership. We recognise that we are quantitatively judged by grades and minimum
requirements. We commit ourselves to consistently demonstrate excellence
throughout our academic studies, and to take the personal initiative to show
comprehensive development by graduation.
BBM3000/EBM3000
Integrity - means doing the right thing, even if nobody is watching, having courage to
say no and courage to face the truth. We commit ourselves to academic integrity in
all our work, respecting the specific policies of the NMU and the broad concept of
academic honesty. Our work, whether done individually or through group activities,
will be accomplished through honest means. We therefore will not partake in
plagiarism, wilful misrepresentation of sources, and unethical assistance or input
from unapproved parties. We will not rob ourselves, or past, present and future
graduates of the honour and integrity that we all subscribe to. We support students
and staff who fulfil their duty by alerting the department and the School as well as the
faculty to incidences of academic dishonesty.
Social justice and equality - means being dedicated to the realisation of a socially
just, democratic society that promotes equality for all irrespective of race, gender,
sex, pregnancy, marital status, ethnic or social origin, sexual orientation, age,
physical and learning abilities, national origins, religion, conscience, belief, culture
and language. By cultivate living, learning and work environments that enable
students and staff to realise their full potential, without fear of discrimination or
harassment. And by developing our graduates as globally competent citizens who
generate, apply and transfer knowledge to contribute actively to advancing social
justice, inclusion and equality.
BBM3000/EBM3000
DIPLOMA: MANAGEMENT
This qualification is intended for persons who can function mainly as tactical
(functional) managers in any enterprise. The qualifying learner will be competent in
applying selected management principles and techniques in supporting and
implementing strategies, policies and procedures and will be able to deal effectively
with contemporary issues on a tactical (functional) level.
On completion of the learning programme students will have acquired the necessary
skills and competencies to demonstrate the Exit Level Learning Outcomes (ELOs) as
outlined below:
SECTION 1
TOPIC PAGE NO
1. INTRODUCTION 4
2. PURPOSE OF THE MODULE 4
3. MODULE LEARNING OUTCOMES 5
4. CRITICAL CROSSFIELD OUTCOMES 5
5. LECTURER CONTACT DETAILS AND CONSULTATION TIMES 7
6. MODULE METHODOLOGY AND PRESCRIBED MATERIALS 9
7. ACADEMIC JOURNALS 10
8. ASSESSMENTS AND GRADING 10
9. STUDENT EXPECTED BEHAVIOUR 12
10. RE-ADMISSION CRITERIA 12
11. CREDIT MAP AND NOTIONAL HOURS 14
12. SYLLABUS GUIDE 16
SECTION 2
PART 1 PAGE NO
STUDY UNIT 1 17
STUDY UNIT 2 18
STUDY UNIT 3 19
STUDY UNIT 4 20
STUDY UNIT 5 21
STUDY UNIT 6 22
STUDY UNIT 7 23
STUDY UNIT 8 24
STUDY UNIT 9 25
STUDY UNIT 10 26
STUDY UNIT 11 28
STUDY UNIT 12 29
PART 2 PAGE NO
STUDY UNIT 1 31
STUDY UNIT 2 32
STUDY UNIT 3 33
STUDY UNIT 4 34
STUDY UNIT 5 35
STUDY UNIT 6 36
STUDY UNIT 7 37
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STUDY UNIT 8 38
STUDY UNIT 9 39
STUDY UNIT 10 40
STUDY UNIT 11 41
STUDY UNIT 12 42
STUDY UNIT 13 43
TOPIC PAGE NO
1. INFORMATION ON PLAGIARISM 44
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SECTION 1
1 INTRODUCTION
This module undertakes to apply the theoretical leadership concepts in the second
year of study, and to apply these to the African environment. The module highlights
and provides guidance on the application of the leadership theory in a vastly different
from Western culture, African context. At the same time, the module makes use of
African researchers and theorists in bringing to the fore African leadership theories
useful for leading African organisations.
This study guide will assist you prepare for lectures, tests and examinations.
Important information regarding this module, such as the purpose of the module,
units of learning dealt with in the module, your lecturer’s contact details, prescribed
materials, useful academic journals that can be consulted in the field of business
management will be provided. The criteria for assessments are also provided and to
enable you plan your studying effectively for this module, a course programme is also
provided in this study guide.
To prepare learners to understand the intricacies and complex interfaces that exist in
the theory, practice and principles of Management, with specific reference to making
the transitions from front-line management to functional management areas. This
module will equip learners with a basic understanding of the role of ethics in
business, as well develop a framework which can be used to make ethical decisions
and govern ethical performance.
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After completing this module the learner will be able to understand the process of
making the transition from front-line management to more functional management
perspectives. That the strength of the functional management perspective lies in the
fact that it deals with management concepts such as leading within an African
environment and Business Ethics.
In addition to the specific module learning outcomes, students are expected to exhibit
the following graduate attributes:
a) understand and state the essential content by naming and/or explaining the
relevant content (where possible with the aid of diagrammatic representations);
b) identify the meaning reflected in the content by indicating the most acceptable or
correct possibility from various given alternatives (for example by answering
multiple-choice statements and identifying the meaning of key terms);
c) demonstrate the capability of establishing direct relationships, for example
between theory and practice, inter alia, by completing worksheets and finding
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The activities indicated for each study unit are intended to cover the above
outcomes. Note that the bold-typed verbs, i.e., so-called capability verbs, reflect a
hierarchy in the learning process. Therefore, stating essential content represents the
most basic or most simple required performance and generating solutions to the
most advanced or most complex performance (See also Table 1).
Adapted from Quick Flip Questions for the Revised Bloom’s Taxonomy
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Email : michael.delange@mandela.ac.za
Email: lourens.venter@mandela.ac.za
Should you require any assistance or additional information, please speak to your
lecturer. Make sure you know the name of your lecturer for the module(s) in question
and his/her relevant consultation hours. All emails will be answered within a 24 hour
period.
ACADEMIC ADVISOR :
Mr J. Slabbert
Email: jordin.slabbert@mandela.ac.za
Mr Slabbert will put you into contact with resources, such as workshops and tutorials,
that are designed to help you reach your educational and / or career goals. He is also
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able to offer advice regarding procedures and policies to follow should you wish to
make academic changes.
First check to find out when the academic advisor is available for consultation, then
check your timetable to see when you are available and choose a timeslot when you
are both available. To book an appointment, contact Mr Slabbert via email. His email
address is jordin.slabbert@mandela.ac.za
Advisor Responsibilities:
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The credits and NQF level for this module are as follows:
Credits: 30
NQF level: 6
Part 1- Semester 1
Part 2- Semester 2
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3. Geel, F.C. & Gray, B.A. 2010. Scientific assignment and report writing. Port
Elizabeth: Lectern.
ISBN no.: 9781920176730
7 ACADEMIC JOURNALS
Five semester tests will be written for this module. All semester tests are
compulsory for all students. It is thus compulsory for every student to write five
semester tests for EBM3000.
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The following rules are applicable in cases where a student does not write a test:
If valid documentation is submitted by the due date (within three working days
of missing the test), that is, medical certificate/organised sport
letterhead/religious objection:
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10 RE-ADMISSION CRITERIA
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Lectures- 20
Assignment and other assessments 30
Private study and pre-reading – 2.5 hours per week 100
TOTAL NOTIONAL LEARNING HOURS 150
A team approach
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Tutorials
Any scheduled tutorial session is for us to catch up on core content, revision and
some assessments.
Private study
According to the current course structure it is advisable that you allocate at least 1
Hour of your private study time per day to preparing for your next
Microeconomics lecture. This preparation could include checking the course outline
to see what topic will be dealt with in the upcoming lecture and to then complete the
relevant reading related to that topic. Furthermore, it would be advisable to review
the notes that you had made during the previous lecture. You are further advised to
spend at least 2 hours after each lecture reviewing your lecture notes.
Cooperative studying
Learning can be enhanced by sharing ideas and views with other students, both in
the classroom and outside it. For instance, a good way to understand a topic better is
to explain it in as clear a way as possible. This can help reveal any gaps in your
knowledge and understanding of the topic. Furthermore, by exchanging ideas with
students who have heterogeneous backgrounds, qualifications, and future
aspirations, you can see things from a variety of perspectives, allowing you to
develop a broader, more detailed understanding of the subject. Teamwork skills are
also developed through cooperative studying. Such skills are highly valued by
employers.
We thus encourage you to:
• try to find a classmate who can assist you if you are having problems
understanding a problem or reading material, and provide help to others if
you are able; and
• ask and answer questions in the classroom if you need any clarity in any
concept, you might not be sure of.
SECTION 2
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UNITS OF LEARNING
UNIT 1
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INTRODUCTION :
Leadership skills can be used in the most difficult circumstances by respecting the
local culture, and identifying and building on the shared values that underpin the
culture, while bringing about change. The profile also identifies some of the critical
issues for leaders in the contemporary world, including the importance of having a
clear vision that inspires and motivates others, the importance of cultural sensitivity,
and a willingness to be determined and consistent so that trust develops. It also
illustrates that you do not have to be born to leadership, and you do not need to head
a large organisation or be well educated to bring about change. Leadership happens
in a wide range of contexts and everyone who wants to
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Explain the significance of leadership in Africa in the 21st century
Describe a framework for understanding leadership as a process
Explore leadership roles in a range of different contexts
Explore the major challenges confronting leaders in Africa
UNIT 2
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INTRODUCTION :
This chapter begins with a discussion on the origin of management and leadership,
defines leadership and management and goes on to explain the differences between
management and leadership. African management and leadership will then be
discussed. A focus will be on the changing African context, the African cultural value
system and the differences between African, Western and European leadership and
management approaches. A few suggestions on how African leaders can manage
and lead will also be given.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
The origin of management and leadership
Defining the difference between leadership and management
Specific differences between management and leadership
African leadership and management
The difference between African and Western and European leadership and
management approaches
A few suggestions on how African managers can manage / lead.
UNIT 3
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INTRODUCTION :
Leadership skills can be used in the most difficult of circumstances by understanding
local conditions and using these to bring about change. The profile also identifies
some of the critical issues for leaders trying to bring about change in Africa : the need
for a clear and compelling vision that can benefit others; the importance of local
knowledge and understanding; and a passion and determination to succeed without
compromising values.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Understand the nature of sub-Saharan African geography, history and
demography
Articulate the myths and realities associated with contemporary Africa
Identify the tasks confronting leaders in Africa in the 21st century.
UNIT 4
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INTRODUCTION :
Because of historical events, myths build up about different ethnic groups, and it is
important that these myths are replaced with a real understanding of culture and how
it affects behaviour and leadership.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Define culture
Identify the factors that impact upon global and international leadership
Discuss Trompenaars and Hampden-Turner’s cultural dimensions
Lead more effectively in multicultural situations
UNIT 5
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INTRODUCTION :
In this chapter, the focus is on recognising self-control systems as an important basis
for self-leadership. The importance of developing self-leadership skills in Africa is
explored by discussing a theory of self-leadership, defining self-leadership, and
considering the relationship between self-leadership and personality. Finally, self-
leadership in practice, leadership development through experience, education and
mentoring, is examined.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Explain the importance of developing self-leadership skills in Africa
Explain the importance of self-control systems
Explain the theory of self-leadership
Explain the relationship between self-leadership and personality
Recognise the advantages of applying self-leadership in the African context
and the development of leaders
Understand leadership development through education, experience and
mentoring.
1. Which self-leadership strategy that you are currently using offers the
most benefits for you? Why?
2. At which self-leadership strategy do you think you are the least
skilled? Explain.
3. What do you think is the most difficult aspect of being a self-leader?
UNIT 6
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LEADERSHIP TRAITS
INTRODUCTION :
This chapter begins with a discussion of leadership traits which may be associated
with success. Then general and task-related personality traits of effective leaders will
be discussed. Leadership motives and cognitive factors of leaders are associated
with personality traits and will be discussed, followed by Level 5 leadership traits as
well as gender and race differences with regard to leadership traits and
characteristics.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Identify general as well as task-related personality traits of effective leaders
Describe leadership traits associated with failure
Explain motives and leadership traits
Describe cognitive factors and leadership traits
Discuss Level 5 leadership traits
Discuss differences in gender, race and leadership traits
Discuss strengths and limitations in utilising the trait approach to predict
effective leaders
Describe African viewpoints on traits, motives and characteristics of leaders.
1. Identify any African leader whom you think is highly effective. Explain
the traits, motives and characteristics contributing to his or her
success.
2. What do you think is the most important leadership trait should you
wish to be successful in Africa?
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UNIT 7
CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP
INTRODUCTION :
Charismatic and transformational leaders transform the values and priorities of
followers, and motivate them to perform beyond their expectations. Such leadership
styles affect the self-concept of followers, help build identification with the mission
and goals of the organisation, and enhance, for instance, feelings of involvement,
cohesiveness and commitment (Shamir et al 1993:585)
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Understand what is meant by charisma
Understand the effect of charismatic leaders on their followers
Explain the meaning of and types of charismatic leaders
Identify charismatic leadership characteristics
Understand the principles of transformational leadership
Identify the qualities of transformational leadership
Understand how transformational leadership is practised
Explain the strengths and criticisms of transformational leadership
Understand the need for transformational leadership within the African context
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UNIT 8
EMOTIONAL INTELLIGENCE AND LEADERSHIP
INTRODUCTION :
This chapter reflects upon the context of the study of emotional intelligence to enable
the student to understand the difference between IQ and EQ, and the
interrelationship between the two in terms of the holistic context of intelligence.
To relate EQ to leadership, the focus is on historic and modern works that define the
principles of good leadership or behaviour.
Emotional intelligence is then explained in a more applied approach, based upon the
BAR-ONE model to relate it to the context of good leadership behaviour. The chapter
also relates to the African culture paradigm, and contains various practical exercises
to help the student build his/her emotional intelligence and also to relate it to the
context of leadership behaviour.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Describe the most prominent definitions of emotional intelligence
Describe the difference between IQ and EQ
Explore the context of good leadership principles
Have a contextual understanding of the emotional intelligence building blocks
Understand the leadership characteristics/traits as defined by writers in
ancient times, some well-known African leaders and various other writers
Understand the relationship between leadership traits and emotional
intelligence
Understand the dark side of emotional intelligence
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UNIT 9
SERVANT LEADERSHIP: FINDING FULFILMENT IN SERVING HUMANITY
INTRODUCTION :
Many perspectives about leading and leadership tend to suggest that the leader is
the person in charge, with authority, holding a position of power over others
(Northouse, 2007). One of the definitions of leadership that allows for different
perspectives suggests, “leadership is a process whereby one individual influences a
group of individuals to achieve a common goal” (Northouse, 2007:3). That is, rather
than thinking in terms of position, leadership as influence suggests that the person
playing the leadership role may or may not be in a position over others – that is,
he/she may not be the manager, supervisor, director – yet may still influence others
toward achieving a goal.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Understand the meaning of servant leadership
Explain the characteristics of servant leadership
Describe how servant leadership is enacted in the African context
Explain the relationship between servant leadership and the Ubuntu worldview
Explain the linkages between Ubuntu and peace leadership
Apply the lessons of servant leadership to your own leadership praxis
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UNIT 10
LEADERSHIP POWER AND INFLUENCE
INTRODUCTION :
This chapter begins by discussing leadership power and influence within the African
context, after which the concepts of power and influence are defined. This is followed
by a discussion on the different types of power that leaders can exercise in pursuit of
their goals. The relationship between different leadership models and power are
explored through a comparison of the application of different sources of power in
different leadership models. Thereafter, we explore the concept of influence by
discussing different influencing techniques. The application of influence in different
types of relationship is explored through superior-, subordinate-, and peer-influence
models. The unit closes with an overview of a model explaining how leaders integrate
power and influence most effectively.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Discuss leadership power and influence within the African context
Define power and influence
Describe the application of power in leadership
Describe the different outcomes of applied power sources
Identify the sources of power
Describe the relationship between power and leadership models
Define the relationship between power and influence
List and define various tactics in influencing behaviour
Explain the effectiveness and sequencing of influencing tactics in different
relationships
Understand the application of power and influence by women leaders
Understand the impact of power and influence tactics on the new generation
Reflect on a model for the integrative application of power and influence for
organisational effectiveness.
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UNIT 11
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ENTREPRENEURIAL LEADERSHIP
INTRODUCTION :
The chapter commences with an overview of entrepreneurship and defines
entrepreneurial leadership and related theories such as visionary leadership,
strategic leadership and intrapreneurial leadership. The characteristics and
competencies required for entrepreneurial leadership are listed and explained at
length, making reference to various inherent abilities and traits, and how these
contribute to the making of an entrepreneurial leader.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Describe the context of entrepreneurial leadership in Africa
Discuss the entrepreneurial and leadership challenges of the 21st century in
Africa
Define entrepreneurship and entrepreneurial leadership
Understand visionary leadership, innovation leadership and strategic
leadership in the context of entrepreneurial leadership
Explain intrapreneurial leadership and its application in corporate business
List and define various competencies and characteristics related to
entrepreneurial leadership
Explain the intra-personal challenges that entrepreneurial leaders have to face
Reflect on the challenges faced by women entrepreneurial leaders in Africa.
UNIT 12
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INTRODUCTION :
Change is an integral part of our society. For business organisations, change often
comes so rapidly that they have scarcely adjusted before even more change takes
place. Change is also evident in the developing world. In Africa, a strong movement
towards liberalisation and democratisation of countries has occurred during the past
decade.
The challenge for leaders is to recognise when change is necessary and even more
important, the ability to make changes and lead the change process when it is
necessary to do so. This implies that change is not only something that a leader
should react to, but that leaders could and should anticipate when change is
essential, and then implement proactive or planned changes.
LEARNING OUTCOMES :
After studying this chapter, the learner should be able to –
Define the concept of change
Explain the forces of change, the types of change and the different change
process types
Understand the impact of changes in the global world of work
Define, explain and be able to apply different change leadership concepts
Describe a linear approach, a systems approach, a social change approach,
and a practical step-by-step approach to change leadership
Understand how humans respond to change
Be able to apply practical guidelines for leading organisations through change
Be able to assess organisational readiness for change.
Read the case study on page 437 in your textbook, AFRICA-THE BRIGHT
CONTINENT, then answer the questions that follow on page 438.
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UNITS OF LEARNING
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INTRODUCTION
In order to talk meaningfully about business ethics there are a number of concepts
and distinctions that one needs to understand. In this unit we will discuss some of the
key concepts and distinctions in the field of business ethics.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Define the term BUSINESS ETHICS
Understand the three central concepts pertinent to ETHICS
Differentiate between right, wrong and dilemmas
Understand the relationship between ethics and the law
Understand the relationship between ethics and values
Define the term INTEGRITY
Understand the difference between personal and organisational ethics
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INTRODUCTION
In this chapter, various categories of responsibilities that businesses have to, or
might opt to take on, will be systematically unpacked. We will start with the most
basic economic expectations that societies have of companies and then move onto
the mandatory requirements that companies are expected to comply with. Then we
will discuss the social and ethical expectations of society, look at the discretionary
domain, where companies can decide how much they want to give back to society,
and finally we will explore the civic duties of companies as corporate citizens.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Understand the economic responsibilities of companies
Understand the mandatory responsibilities of companies
Define the expectations of society
Define the term DISCRETIONARY CONTRIBUTIONS and provide reasons for
these contributions
Define the term CORPORATE CITIZENSHIP
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INTRODUCTION
While ethical policies and practices of governments and corporations across the
globe provide the content for analysing business ethics at a macro-level of ethical
enquiry, it is often what happens within the corporation that determines their ethical
impact on the physical, economical and social environment. The modern business
organisation is often perceived as an entity that practices amoral management. Such
an entity would display little of the intrinsic ethical obligation it may have towards
society.
In this chapter an intra-organisational perspective of ethics is presented. It will be
shown that ethics cannot be divorced from business activity.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Understand what is a business without ethics
Discuss the ethical dimension of an organisation
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INTRODUCTION
The following are six myths that drive a wedge between business and ethics –
Dog eat dog
Survival of the fittest
Nice guys / girls come second
Unethical conduct is not serious
When in Rome, do as the Romans do
All that matters is the bottom line
Each of these myths will be challenged to see whether they make business or
rational sense. As we go through them, the case for ethics in business will
simultaneously emerge.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Challenge the myth – dog eat dog
Challenge the myth – survival of the fittest
Challenge the myth – nice guys / girls come second
Challenge the myth – unethical conduct is not serious
Challenge the myth – when in Rome, do as the Romans do
Challenge the myth – all that matters is the bottom line
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INTRODUCTION
If one accepts that unethical behaviour may cause high reputational risk to an
organisation, it is of strategic importance that organisations avoid the cost associated
with unethical behaviour. Although there are many dimensions that contribute to the
perceived reputation of a business, the ethical dimension of corporate reputation has
become as important, and inextricably linked to, other dimensions that constitute
reputation, such as product quality and financial performance. In this sense a
reputation for ethical behaviour has become a business imperative. Ethics is even
perceived by some organisations as being the source of competitive advantage.
In this chapter, the nature of corporate ethical reputation is explored. Thereafter, the
interface between ethical reputation and the potential perceptions of a number of
organisational stakeholders are analysed.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Discuss organisational reputation at a country as well as corporate level
Discuss the impact of reputation associated with the various stakeholders of
the business
Discuss the impact of reputation on the financial performance of business
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INTRODUCTION
If people are perceived to be assets, and are perceived to be an organisation’s
competitive edge, the business case for investing in, nurturing and developing human
talent is clear. Organisations that do not do this may survive, and may even achieve
success in the short run. Their long term sustainability may, however, be at risk. The
way that organisations think about their people, and what they choose to do in
unlocking their human potential, determines their future sustainability.
In this chapter we will analyse the role that ethics can play in unlocking human
potential. The discussion commences with the notion of ethical neglect as the
phenomenon whereby some organisations disregard their workforce as an asset.
The use of ethics in the unlocking of human potential in organisations is then
suggested as a remedy for ethical neglect. The chapter is concluded with a number
of ethics-based strategies that may be useful in unlocking human potential.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Discuss the term ETHICAL NEGLECT within the context of the organisation
Explain how ethics can be used as the key to unlock human potential
Identify some people-related outcomes of organisational mindsets
Discuss ethics-based facilitators as a means for unlocking human potential
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INTRODUCTION
A state of distrust is a disturbing condition since trust is a precondition for the
functioning of any social system. Without a basic level of trust it becomes almost
impossible to cooperate and negotiate with other people.
The purpose of this chapter is to explore the role that ethics can play in building trust
in business. We will start by examining reasons why trust has become an issue of
concern to business. Then we will look at the nature of trust and also make a
distinction between trust and trustworthiness. Finally, we will look at the relationship
between trust and ethics and the role that ethics can play in cultivating trust in
business.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Discuss the loss of trust in business
Understand why business requires trust
Define the term TRUST
Discuss the ethical dimension of trust
Explain the role of ethics in building trust
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INTRODUCTION
The unit is structured as follows – first, we define fraud and distinguish it from other
forms of economic crime, for instance theft and corruption. The drivers or enabling
conditions of fraud are explained and the so-called ‘profile of a fraudster” discussed.
Thereafter, the elements of a comprehensive fraud risk management strategy for
organisations are explained, and finally, the role that ethics can play in preventing
fraud is outlined, including efforts to combat moral disengagement, and initiatives to
create an ethical organisational culture.
The guiding assumption in this unit is that people are not naturally inclined towards
what is unethical. Instead, most people want to be ethical, and given the right
conditions within organisations, our moral capacity can be leveraged to prevent
fraud.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Define the term FRAUD
Identify the drivers of fraud
Identify some fraud risk management programmes
Discuss ethics and fraud prevention
Discuss ethics management and fraud prevention
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INTRODUCTION
The following questions should be asked to judge the moral soundness of a decision:
Is it legal?
Does it meet company standards?
Is it fair to all stakeholders?
Can it be disclosed?
In this unit, each of these criteria will be discussed in more detail. In applying these
criteria, you do not first have to complete a business decision and only then start to
apply the criteria for ethical business decisions. On the contrary, it is preferable that
the criteria form a constant mindset that is infused in the normal business decision-
making process. It should thus become almost second nature to keep these criteria
in mind when making business decisions.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Discern whether a situation is legal or illegal.
Discern whether a situation meets the company standards or not.
Discern whether a situation is fair to all stakeholders or not.
Discern whether a situation is able to be disclosed or not.
39
BBM3000/EBM3000
INTRODUCTION
In this unit we will introduce the Rational Interaction for Moral Sensitivity (RIMS)
strategy for resolving moral dilemmas. We will first explain why the RIMS strategy is
appropriate for a situation marked by moral dissensus. Against this backdrop the
strategy itself will be described along with some objections that might be raised
against it.
The RIMS approach is designed as a dilemma-resolving strategy that can be used
for both social and personal ethical dilemmas in the workplace. Social dilemmas
arise when different people make conflicting judgements on what is considered to be
morally right with regard to a specific situation. Personal dilemmas occur when a
person has conflicting moral views about what the most appropriate moral decision
should be in a specific situation. The purpose of the RIMS strategy is to structure a
process of rational interaction between the rival points of view in a moral dispute that
will result in morally sensitive decisions. Before outlining the strategy in detail, we will
first explain the phenomenon of moral dissensus in order to gain a better
understanding of the nature of moral dilemmas.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Discuss MORAL DISSENSUS
Explain the assumptions behind the RIMS theory
Explain the RIMS strategy
Identify some objections to the RIMS strategy
40
BBM3000/EBM3000
INTRODUCTION
In this unit, we explore the relationship between ethics and corporate governance.
We start by distinguishing between various approaches to corporate governance and
their ethical dimensions. We then investigate why corporate governance has become
so prominent in recent years. We look at the ethics dimension of King IV and discuss
the requirement for social and ethics committees introduced by the Companies Act of
South Africa (2008). Finally, we introduce a comprehensive framework for the
governance and maintenance of ethics.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Discuss corporate governance – its perceptions and approaches
The prominence of corporate governance
Discuss corporate governance in South Africa
Provide a framework for the governance of ethics
41
BBM3000/EBM3000
INTRODUCTION
In this unit, we will explore the roles and responsibilities played by the organisational
governance structures in building and maintaining an ethical culture in organisations.
In this regard we will look specifically at the roles and responsibilities of the governing
body and the subcommittee responsible for the governance of ethics.
LEARNING CONTENT
After studying this chapter, the student should be able to –
Explain the role and responsibilities of the governing body
Explain the role and responsibilities of the ethics committee
42
BBM3000/EBM3000
INTRODUCTION
This unit is divided into four sections –
Reporting by the ethics office to the ethics committee
Independent assessment of ethics performance
Reporting by the ethics and audit committees to the governing body
Reporting to external stakeholders
LEARNING CONTENT
After studying this chapter, the student should be able to –
Explain the reporting to be completed by the ethics office to the ethics
committee
Provide a practical guide to performing an independent assessment of ethics
performance
43
BBM3000/EBM3000
Explain reporting by the ethics and audit committees to the governing body
Define the types of reports one would send to the external stakeholders
44
BBM3000/EBM3000
SECTION 3
1 INFORMATION ON PLAGIARISM
The following extract on plagiarism is taken directly from the official NMU Copyright
services website from an article entitled Copyright and Plagiarism: Short guide for
students. Students must familiarise themselves with this document:
WHAT IS PLAGIARISM?
Plagiarism is similar to copyright infringement in that one is unlawfully using the work of
another person. Plagiarism occurs when an individual uses the words or ideas of another
person as if it were his/her own and without giving acknowledgement of the actual
source. Even if the source is mentioned it must be made clear when the work is being
quoted and what your own contribution is. The work that was plagiarised does not even
need to be a copyright protected work to amount to plagiarism.
45