“If you hear that someone is speaking ill of you, instead of trying to defend yourself you should say: “He obviously does not know me very well, since there are so many other faults he could have mentioned”

HOT-STOVE RULE

HOT-STOVE RULE

Disciplinary action against an employee is painful and generates resentment. Hot-stove rule is all about how to impose discipline to employees without generating resentment. Hot stove rule draws an analogy between touching a hot stove and undergoing discipline.

According to the Red Hot Stove rule, disciplinary action should have the following consequences:

(a) Burns immediately: If disciplinary action is to be taken, it must occur immediately so the individual will understand the reason for it. With the passage of time, people have the tendency to convince themselves that they are not at fault. As with the hot stove when we touch it, our hand burns immediately.

(b) Provides warning: It is very important to provide advance warning that punishment will follow unacceptable behavior. As you move closer to hot stove, you are warned by its heat that you will be burned if you touch it.

(c) Gives consistent punishment: Disciplinary action should also be consistent in that everyone who performs the same act will be punished accordingly. As with a hot stove, each person who touches it is burned the same.

(d) Burns impersonally: Disciplinary action should be impersonal. There are no favorites when this approach is followed. As with hot stove when we touch it, it burns everyone's hand without any bias.

This is the best approach to impose discipline to any employee because it is not biased.

ETHICAL ORGANISATION

ETHICAL ORGANIZATION

The Ethical Organization focuses on the extent to which it is possible for an organization to be ethical and the impact this has on its workforce. Ethical decision-making and leadership are the basis of ethical organizations.

Trust, Effective communication, Openness, Objectivity and fairness, Integrity, Transparency, Values are the characteristics of an ethical organization.

Strategy for an Ethical Organization

Few organizations considered ethics to be a lawful topic for enterprise planning and strategic thinking. Those at the top of an enterprise regularly spent time developing their organizational and functional strategic plans, their growth strategy, brand strategy, but ethics and regulatory compliance was merely an issue for the finance department, legal counsel, and possibly human resources.

Organizational ethical behavior requires serious attention, at both the board and executive level. Widespread organizational misbehavior and criminal activity have made the creation of a formal ethics strategy a high priority for all enterprises, irrespective of their size or structure. Many larger organizations have established a position for an Ethics Officer, and smaller organizations turn to consultants that specialize in ethical consultation.

Organizational outcomes and benefits from ethical leadership

 Organizational outcomes

More and more leaders of businesses and other organizations are now waking up to the reality of social responsibility and organizational ethics. Organizational behavior good and bad is more transparent than ever globally. Injustice anywhere in the world is becoming more visible, and less acceptable. Reaction to corporate irresponsibility, exploitation, dishonesty and negligence is becoming more and more organized and strong.

Employers, businesses and organizations of all sorts especially the big high profile ones are now recognizing that there are solid effects and outcomes driving organizational change. There are now real incentives for doing the right thing, and real discouragement for doing the wrong things. There are huge organizational advantages from behaving ethically, with humanity, compassion, and with proper consideration.

Benefits

Better staff attraction and retention - the best staff want to work for truly responsible and ethical employers. Failing to be a good employer means good staff leaves, and reduces the likelihood of attracting good new-starters. Aside from this, good organizations can't function without good people.

Investment – The investors will invest into the company and will get associated with the company for their ethical behavior. Few investors want to invest in organizations which lack integrity and responsibility, because they don't want the association. By this the performance will eventually decline. 

Reputation - It takes years to build organizational reputation but only one scandal to destroy it Ex: - Satyam company. Ethical responsible organizations are far less prone to scandals and disasters. And if one does occur, an ethical responsible organization will automatically know how to deal with it quickly and openly and honestly. People tend to forgive organizations who are genuinely trying to do the right thing. People do not forgive, and are actually deeply insulted by, organizations who fail  by not addressing the problem and the root cause. Arrogant leaders share this weird delusion that no-one can see what they're up to. Years ago maybe they could hide, but now there's absolutely no hiding place.