Reading notes: Peter Drucker's "Understanding Management" Chapter 22 Responsibility Ethics

1. Overview of Chapter Contents

Individual managers, even CEOs of giant corporations, have in the twentieth century become as anonymous and unassuming as other employees. However, the management groups of various organizations such as enterprises, schools, hospitals, and government agencies have also become the leadership group of modern organizational society. They also need to have corresponding ethics and morals, fulfill their commitments, and abide by standards. The rule developed by the earliest professional leadership group (doctors) more than 2,000 years ago - "never do something knowingly knowing the harm" - is a standard and ethics that meets the requirements.

2. Chapter Question Set

Question 1:Why do managers’ different identities as individuals and collectives bring about ethical issues?

The different identities of managers as individuals and as a collective may bring about ethical issues for the following reasons:

1. Role Conflict: Managers have role conflicts between individuals and the group. As individuals they may pursue their own interests, whereas as part of a collective they need to serve the interests of the organization. This conflict can lead managers to face ethical dilemmas when making decisions, such as choosing between personal and collective interests.
2. Responsibilities and Powers: Managers have certain powers and responsibilities. They need to make decisions and be responsible for the consequences of those decisions. Abuse of power can lead to unethical behavior, such as using power for personal gain or favoring subordinates. At the same time, managers also need to bear responsibility for decision-making failures, which can cause inner stress and moral dilemmas.
3. Conflicts of interest: Managers’ decisions may affect the organization’s stakeholders, such as shareholders, employees, customers, and society. There may be conflicts between the interests of different stakeholders, such as the balance between the pursuit of profits and the protection of employee rights. Managers need to weigh these interests and make decisions that are in the best interest of the organization.
4. Ethical Values: A manager's moral values ​​may influence their decision-making. If their values ​​are inconsistent with those of the organization, unethical behavior may result. For example, if managers excessively pursue personal interests, they may damage the interests and image of the organization.

To avoid ethical issues, managers need to be clear about their roles and responsibilities and follow the organization's ethical guidelines. At the same time, organizations should establish sound ethical norms and supervision mechanisms to ensure that managers' behavior complies with ethical standards.

Question 2:Why can the Hippocratic Oath be appropriately applied to managers?

The Hippocratic Oath can be appropriately applied to managers because it emphasizes the ethical principles and responsibilities of managers. Managers need to deal with personnel issues at work, which requires them to adhere to the principle of justice and have an honest and upright character. At the same time, managers also need analytical skills to make correct decisions in setting goals, organizing work, and developing people. The ethical principles emphasized by the Hippocratic Oath can help managers better perform their responsibilities and improve organizational efficiency and performance.

The core content of the Hippocratic Oath is to respect patients, seek benefits for patients, and be responsible for patients. These principles also apply to managers. Managers need to respect the members of the organization, pay attention to their interests, and provide them with a good working environment and career development opportunities. At the same time, managers also need to be responsible for the organization and society, and improve the organization's performance and contribution through effective management and leadership.

Therefore, the Hippocratic Oath can be appropriately applied to managers because it emphasizes the ethical principles and responsibilities of managers. These principles can help managers better perform their duties and improve the efficiency and performance of the organization.

Question 3:In which areas are today’s managers most likely to violate“Never know the harm? And for it”criteria?

In today’s society, managers may violate“never do it knowingly the harm” There are many areas of guidelines, here are a few possible situations:

1. Environmental protection: In the course of business operations, managers may be faced with some choices that may have a negative impact on the environment. For example, the discharge of pollutants during the production process, over-exploitation of natural resources, etc. These behaviors may cause irreversible damage to the environment, but managers may choose these behaviors because of economic interests, knowing that they are harmful to the environment, but still carry out them.
2. Product quality: During product development, production, and sales, managers may face pressure to reduce costs, increase output, and increase profits. This may lead managers to lower product quality standards, such as using cheaper materials and reducing quality control links. These behaviors may cause harm to the interests of consumers and society, but managers may choose these behaviors because of economic interests.
3. Market competition: In market competition, managers may face pressure from unfair competition. For example, obtaining competitors’ trade secrets through improper means, using improper means for advertising, etc. These behaviors may cause damage to competitors, but managers may choose these behaviors because of pressures from market competition.
4. Employee Rights: Managers may be faced with choices that may harm employee rights. For example, violations of labor laws, forced overtime, unfair dismissal, etc. These behaviors may cause damage to the rights and interests of employees, but managers may choose these behaviors because of the interests of the company.

The above areas are only part of them. Managers may face various choices at work, and these choices may cause damage to the interests of society, the rights and interests of employees, and the long-term development of the enterprise. Therefore, managers should always follow ethical and legal norms and avoid actions that they know are harmful.

Question 4:Why does inflation contribute to the common perception of rising income inequality?

Inflation contributes to the common perception of rising income inequality for several reasons:

1. Rising prices: Inflation leads to a general increase in prices, including food, rent, wages, etc. This means that the purchasing power of low-income people has declined, while the purchasing power of high-income people has increased relatively. Low-income people are often unable to keep up with rising prices, leading to lower living standards, reinforcing perceptions of rising income inequality.
2. The gap between rich and poor widens: During inflation, high-income people are often better able to protect their property and investments, while low-income people find it difficult to avoid the shrinkage of wealth. This growing gap between rich and poor will exacerbate perceptions of rising income inequality.
3. Falling real incomes: Inflation causes the purchasing power of money to fall, which means people's real incomes generally fall. For those reliant on fixed incomes, this could lead to lower living standards, reinforcing perceptions of rising income inequality.
4. Inequality of opportunity: Inflation can also lead to inequality of opportunity between different groups of people. For example, people who own property may be better able to protect their wealth, while people who do not own property may face greater financial stress. This inequality of opportunity can also fuel perceptions of rising income inequality.

In summary, inflation leads to higher prices, wider gaps between rich and poor, lower real incomes, and unequal opportunities, which together contribute to the common perception of rising income inequality.

Question 5:Why can it be said that the annual income of 50 million US dollars is more of a reflection of the function Status rather than income?

Annual income50The function of US$10,000 is more about status than income. It can be explained from the following aspects:

1. Reference groups: People's identity and status are often determined based on the reference groups they belong to. In some social groups, such as wealthy people, entrepreneurs, etc., an annual income of $500,000 may only be considered a middle-class level, while in other groups, this income level may already be very high. Therefore, different reference groups will lead to differences in people's views on this income.
2. Social values: Social values ​​have an important impact on people's identity and status. In some societies, people may value material wealth and status more, so an annual income of $500,000 may be seen as a status symbol. In other societies, people may value other aspects of value more, such as knowledge, culture, morality, etc., so this income level may not be particularly valued.
3. Personal experience and background: Personal experience and background can also influence how people think about making $500,000 a year. If a person grew up in a wealthy family environment, then they may have higher expectations and a deeper understanding of high income, so this income level may not be regarded as a status symbol. On the contrary, if a person grew up in a relatively poor environment, then they may have a stronger desire and higher value for high income, so this income level may be regarded as a status symbol.
4. Spending Behavior and Habits: People’s spending behavior and habits also influence their perception of making $500,000 a year. If a person spends a lot of time and money pursuing material comforts, such as buying luxury goods, traveling, etc., then they may be more inclined to think that high income is a status symbol. On the contrary, if a person pays more attention to spiritual enjoyment, such as reading, learning, etc., then they may not particularly value the status symbolism of high income.

To sum up, the annual income of 50 million US dollars is more about status than income, which depends on the individual. factors such as reference groups, social values, personal experience and background, and consumer behavior and habits.

Question 6:“Golden Legs”One What is your intention?your intention“golden legs ”Harmful?

“Golden shackles” means that the company uses high salaries and bonuses to motivate employees and make them Feeling like you are tied to a specific position and unable to leave freely. This approach may have negative impacts on the organization for the following reasons:

1. Limiting employees’ career growth: When employees feel they are trapped by “golden shackles,” they may be reluctant to try new career opportunities that could cost them existing high-paying positions and bonuses. This limits employees’ career development and prevents them from pursuing their true interests and talents.
2. Reduced employee loyalty: When employees feel that their career advancement is limited, they may lose loyalty to the organization. They may become less engaged in their work and less concerned about the success of the organization. This loss of loyalty can lead to increased employee turnover.
3. Increased costs for the organization: In order to maintain high levels of employee performance and loyalty, organizations need to pay higher costs to maintain this "golden shackles" system. This includes paying employees high salaries, bonuses, and providing other benefits, the costs of which may exceed the actual productivity of the employees.
4. Damage to the organization's image: When an organization is perceived to be using "golden shackles" to control employees, this can damage the organization's image and reputation. This may create a negative impression of the organization by potential customers, partners, and investors, thereby impacting the organization's business and financial performance.

Therefore,"golden shackles" to the organization is harmful and organizations should look for other more effective ways to motivate employees rather than controlling employees by restricting their freedom and career development.

Question 7:Why talk about "Profit motive" Will mislead people’s understanding of the true function of profit margin?

Talk“Profit motive” can mislead people about The reason for understanding the true function of profit rate is that it overemphasizes the importance of profit and ignores the true function of profit rate. The profit motive emphasizes the individual's motivation to obtain profits, but ignores that profits are the result of corporate decisions and a test of corporate effectiveness. Even if a company's decisions are not directly related to profits, companies must pay attention to profit margins, because this is an important indicator of the effectiveness of a company's economic activities. In addition, profits are also an important source for enterprises to provide capital for more and better jobs in the future, as well as to pay for social economic and service needs (such as medical insurance, national defense, education, etc.). Therefore, talking about"profit motive" may mislead people about the importance of profit and The real function of profit margin, thus affecting the economic and social benefits of enterprises.