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Management, Control and Leadership

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Introduction
It has been discovered that a section head within Bolt has been using the resources of the organisation for his own personal gain. This misappropriation of company assets by the middle-manager, who is the son-in-law of the General Manager, has resulted in a decrease in productivity and has led to considerable trust issues within the business. The purpose of this report is to define the issue of managerial ethics and analyse the individual management functions that are associated with the problem as well as suggest recommendations to amend the problem. The management functions of control and leadership will be extensively discussed and their significance to the issue will be evaluated. Management theories closely related to the business structure of Bolt will be assessed in order to identify potential solutions to the problem. Moreover, relevant recommendations regarding actions the company can take to overcome the issue will be considered.

Definition of Issue
An ethical issue is present in a situation when the actions of a person or organisation may harm or benefit others. (Jones, 1991) The problem that Bolt faces is that a section head has breached managerial ethics by using company assets for his own personal gain. This breach has resulted in the formation of an ethical issue as it has caused the corporate social responsibility of the business to be in disrepute. Corporate social responsibility refers to ‘the obligation of organisation management to make decisions and take actions that will enhance the welfare and interests of society as well as the organisation.’ (Samson and Daft, 2012) There is potential for a culture of theft and fraud to be created as well as a breakdown in the ethical structure of the company ...

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