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Business Ethics in Management

The document describes a case study of Hotel Prima and its three top-level managers, Lawrence, Alex, and Peter. The hotel employed 700 people and was profitable for years. The managers introduced a stock ownership plan that increased employee satisfaction and commitment. However, the managers ordered accountants to use an illegal double accounting system to avoid paying some taxes, believing the government mishandled tax revenue. While the managers provided benefits and inspiration, avoiding tax obligations indicates they failed to manage all aspects of the business lawfully and sustainably.

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Christine Ramirez
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4K views2 pages

Business Ethics in Management

The document describes a case study of Hotel Prima and its three top-level managers, Lawrence, Alex, and Peter. The hotel employed 700 people and was profitable for years. The managers introduced a stock ownership plan that increased employee satisfaction and commitment. However, the managers ordered accountants to use an illegal double accounting system to avoid paying some taxes, believing the government mishandled tax revenue. While the managers provided benefits and inspiration, avoiding tax obligations indicates they failed to manage all aspects of the business lawfully and sustainably.

Uploaded by

Christine Ramirez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Activity Sheet # 7– Organization Theories for effective business

ORGANIZING AS A MANAGEMENT FUNCTION

PUBLISHED ORGANIZING: CASE 8

Hotel Prima is a four-star hotel employing 700 people. Lawrence, and Alex are the major

owners/top-level managers, and it follows that they control the company. For several years, their hotel

made big profits, so they were inspired to introduce a scheme that allowed their employees to buy

stocks of their company which increased in value after years, and would continue to increase as the

years went by. Their employees, because of satisfaction for the way the three handled the hotel’s

finances, treated the company as their own and did their best in doing their respective jobs.

Although the hotel was doing well and the three major owners/top-level managers practiced

corporate social responsibility through the above-mentioned scheme, the company was not law-

abiding; this was because did it did not pay the correct taxes to the government. The company heads

ordered their accountants to practice the so-called double accounting system. Through this practice

they were able to save millions of pesos which they used to increase their capital and give additional

benefits to their employees.

Peter, Lawrence, and Alex had shared the belief that the government was not using taxpayer’s

money properly, so they agreed that their company should not pay some of its taxes.
LEARNING ASSESSMENT:

1. In your opinion, do you consider the three top-level managers of hotel Prima as ideal

managers? Explain your answer.

- All employees or organization needs a manager not only just manager but, an

ideal manager who serves as their strength in every situation happens in their organizations.

The ideal manager leads by example, sets goals with the team in mind, chooses the best style

to adopt in the right situation, creates the environment for his team to motivate themselves,

knows the best way to communicate with their team members, inspirational in the way they

deal with clients, suppliers, colleagues and their boss, knows specifically how to reward and

recognise every team members’ contribution to the team effort, and uses every chance to use

those reward mechanisms to inspire their team to greater achievements. Lastly, ideal manager

knows that personal development is the key to improving their managerial opportunities, so

they consistently and continually look out for ways to improve themselves. At the same time,

they model the way they feel their team members can drive their careers forward, sharing

examples of how others have inspired them. So in my opinion, based on the case written

above I can say that, yes the three top-level managers of Hotel Prima consider as ideal

managers especially in terms of how they handle their finances, how they build and

continuously growing their business and how they inspired their employees to do very well

their respective jobs in Hotel Prima but in terms of the problem outside their business such as

handling taxes of government they failed to be an ideal manager because the long-term

outcome of ignoring principles in order to buy short-term results is a failure of their own goals

for their business and I think that is the important thing that an ideal manager should to know

because as a manager they should handle the situation properly not just inside their business

but also in the outside of their business industry.

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