MGT 623 Week 1 Assignment Essay example - 785 Words

Tiffin University Problem Solution Analysis Paper Submitted for Course Number MGT 623 Legal and Ethical Issues in Management Dr. Dave Ibarra By: Lauren M. Middleton October 26th, 2014 Milton Friedman advocates the classical theory of business, which essentially holds that businesses should be solely devoted to increasing profits as long as they engage in open and free competition devoid of fraud. Friedman was an advocate of free market forces, he would recommend that let the market forces operate freely and the executive compensation will reach the right levels. The high performing executives will command higher salaries and poor performing executives will receive lower salaries or simply become unemployed. If†¦show more content†¦A tenet of that theory is that enlightened egoists will recognize that socially responsible behavior will benefit them. Both psychological egoism and the classical theory can be defended by the utilitarian argument. Utilitarianism maintains that any action or system is good if it results in the greatest good for the greatest number of people. A utilitarian would commence by looking at the total utility or the happiness generated by the compensation paid to executives. Now if paying executive compensation by way of stock options leads to misguiding skyrocketing of profits figures and causes financial loss to several shareholders of the company, the utilitarian will propose that the executives should not be compensated by way of stock options. Moral worth lies in contribution to the overall utility. In summary, if, as Smith contended, self-interest is a chief motivator and the invisible hand really works, then as companies seek to maximize profits, the greatest public good will result for the greatest number. Critics of Smiths and Friedmans theories contend that they neglect the need for cooperation and teamwork in society, and that chaos can be avoided only with heavy policing of self-interested behavior. Proponents of the invisible hand counter that individuals will usually pursue cooperation and self-regulation because it is in their own interest. A deontological thinker would say that it is the duty of theShow MoreRelatedThe Implication of Hawthorne Study in 21st Century4408 Words   |  18 PagesAssignment The Implication of Hawthorne Study in 21st Century Ashab Anis Joy ID: 2012-1-10-255 Class: MGT Course Code: 101 Sec: 7 Semester: Fall East West University Bachelor of Business Administration East West University 20th November 2012 Introduction The Hawthorne Experiments were conducted between 1927 and 1932 at the works of the Western Electric Company in Chicago. Basically the aim of these experiments was to † attempt to reduce worker dissatisfaction and resist trade unionRead More THE IMPACT OF KNOWLEDGE MANAGEMENT PRACTICES IN IMPROVING STUDENT LEARNING OUTCOMES65118 Words   |  261 PagesAbstract Table of Contents List of Tables List of Figures iii iv iv v vi ix xii Chapter 1. Introduction Organisation of the Thesis Why Knowledge Management matters in Education? The possible impact of knowledge management practices on learning outcomes Measurement of quality knowledge through e-learning and student learning outcomes Purpose of the Study and Research Questions Organization of the Remainder of the Study 1 1 2 7 9 13 16 Chapter 2. Literature Review Part A: Introduction and Background of