Factors Influencing the Ethical Behavior of Staff at Iran Insurance Company Chahar Mahal and...

Euro-Asian Journal of Economics and Finance http://www.absronline.org/journals ISSN: 2310-0184 (print)

ISSN: 2310-4929 (online) Volume: 2, Issue: 2(April 2014), Pages: 166-175 © Academy of Business & Scientific Research

*Corresponding author:Ameneh Malmir Department of management, Malayer Branch, Islamic Azad University, Malayer, Iran

E-Mail: [email protected]

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Factors Influencing the Ethical Behavior of Staff at Iran Insurance Company Chahar Mahal and Bakhtiari Based on AHP

Ameneh Malmir1*, and Kumarth Fatollahpoor2

1. Department of management, Malayer Branch, Islamic Azad University, Malayer, Iran.

2. Department of management, Malayer Branch, Islamic Azad University, Malayer, Iran.

The importance of ethics by individuals and employees of certain organizations that have more clients than any other organization are not hidden from anyone. Among the factors causing abnormalities in employee behavior that is common it refer to the collapse of moral standards in the organization. In this research, we will attempt to identify the factors influencing ethical behavior in a study, a library, a ranking model for these factors in the target population (the insurer Iran Chahar Mahal and Bakhtiari) and due to the dependence of factors is used to identify the analytic network process between agents and measuring their dependence may develop evaluation models. The study has been identified as the lowest and highest impact factors of culture factors on ethical behavior of employees. In the end, it's necessary to pay special attention to the factors that have the highest ranking in terms of human resources planning and management. Keywords: Ethical behavior, analytic hierarchy process, factors influencing ethical behavior.

INTRODUCTION

Bureaucratic system of management efforts to achieve greater performance while retaining the hierarchical pyramid. So there is a shallow and unreliable relations between individuals. But the system of democratic values and human relations among people, there is a true and reliable. In such an environment, the organization and its members are given the opportunity to go as far as possible. Accordingly, there is an increasing attention to citizens in a democratic value system. Now that the importance of citizens as one of the most important resources of the organization is perceived, their behavior can be very important. This study investigated the behavior of individuals in organizations, organizational ethical behavior is known, seems to be very

important and necessary. Moral good and evil, the first issues of human thought and aspiration "to be moral community" has always been regarded as one of the major thinkers of different ages. As such, it has always been reflected in the books and historical documents, and ethical issues in different ways (Nasr Abadi et al, 2010). Morality is a personal belief about what is right or wrong, good or bad. Today, moral and ethical management, one of the most important issues in management. Work ethic exists as a concept in all cultures, but can not seem to find consistency across cultures in terms of values and special features (geren, 2011). A series of human morality and inner psychological characteristics that define the actions and behavior of inner mood is due to

Euro-Asian j. econ. financ. ISSN: 2310-0184 (print); 2310-4929 (online) Volume: 2, Issue: 2, Pages: 166-175

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human (Qramlky, 2008). Ethics is a code of ethics and rules of professional conduct has the basic jobs within the organization.

faghihi and Rezaimanesh have presented four means for the moral:

1. Ethics is a collection of advice.

2. ethics as an ongoing tradition common in the society, however, can be ethics in schools and communities Iranian morality, ethics slamic, Christian morality, ethics, Japanese, Buddhist ethics and ...

3. Morality, ethics is meant to scientific research in a number of ethical concerns because of the emotions. Here it is possible ethics studies in psychology, sociology, biology, anthropology, medicine, and try to find answers.

4. Ethics, Moral Philosophy, which is meant to be a branch of philosophy that deals with the nature of the good and the right to discuss and explore and research (faghihi and Rezai Manesh, 2005).

Ethics is about human morality will discuss the technical, ethical, vegetable, animal and human resources related to him (Tabatabai, 1995). Indeed, how life has two branches: Branch of how to behave and how the branch. (Motahari, 1990). Organization for Economic Cooperation and Development (OECD) in its member countries has often design a moral infrastructure is actually one of the most effective models of management morality.

In this model, a lot of environmental and organizational factors are combined, the most important of these factors include:

Commitment leaders, politicians and administrators to adhere to the ethical issues

Strategies, policies and detailed regulations and ethical requirements

Organization of environment

Systems and incentive mechanisms to encourage ethical behavior.

Efficient, effective training programs

Effective and efficient monitoring and evaluation systems within organizational sub

The reasons for accepting moral reasoning and wisdom-friendly enough

Job Opportunities

Personal Needs

Active civil society(faghihi and Rezai Manesh, 2005).

Corporate ethics is considered as one of the fields of knowledge management (ashdari,2000).

Current situation does not conform to certain moral standards, has caused great concern in the public and private sectors. Falling standards of behavior in the public sector, researchers are forced to search for a theoretical basis for this relationship. To achieve these goals is the first step in understanding the concept of morality identify factors influencing ethical behavior of employees in the organization to be on the next steps necessary consideration of these factors (Tavalaee, 2011). Whatever goes higher socioeconomic status, level comes down to work ethic (Maiyd Farr, 2003). There is a significant relationship between work ethic and belief in religious values , cultural, political and economic (Ebadollah, 2010). Empirical testing shows that the Islamic work ethic, there is a positive effect on job satisfaction and organizational commitment (wahibur, 2010).

The present study is that the ranking of the factors influencing ethical behavior of employees in organizations, given the importance of influencing behavior, the most important factors that managers take steps to improve the success of your organization.

MATERIALS AND METHODS

The Main research question

What is the ranking of the factors influencing ethical behavior?

Secondary research question:

Which obtains the highest score from among the factors?

Which obtains the lowest score from among the factors?

Factors influencing the ethical behavior of staff Malmir & Fatollahpoor

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Daft has provided its analysis of the forces affecting ethical management "model factors influencing management ethics" (Zahedi, 2000).

Daft influential factors in the model include:

Personal Ethics (beliefs and values)

Organizational culture (ceremonies and celebrations, stories and heroes, models, etc.)

External stakeholders (government regulations, customers, community groups)

Enterprise systems (structures, policies, and ...)

It can be concluded that the health bureaucracy and moral currency growth in its value is affected by three factors inside and outside the organization (Sheikhi, 2011).

factors influencing the ethical behavior of employees can be placed into three general categories:

A) macro-level: the factors that exist in the external environment of the organization. These factors are not generally under the control of and are imposed by the system, they are more affluent.

B) Intermediate level: refers to the organizational level factors. Organizations are usually good maneuverability on the facts, and most of them are controlled by the policies and programs of the organization.

C) Micro level: refers to the individual level factors. These factors are in place within the organization and the organization can influence by changing the middle-level factors on some level factors (Tavalaee, 2011).

TABLE 1 HERE

Stages of decision-making method AHP

Professor hour in 1996 Develop an approach that has been known to approach the analytic network process and criteria take into consideration the dependence between shit thing Advantage(Ihsan&mauno , 2007).

Decision flowchart of the method according to the time we did the following steps:

* Determine the effectiveness criteria in deciding * Build a network

It should be clearly stated to be a logical parsing form a network. The structure can be achieved by means of decision-makers and via methods such as brainstorming sessions or other appropriate methods (Mead&Sarkis , 1999).

Super-matrix concept is similar to the Markov chain. Super matrix can restrict the coefficients to calculate the aggregate effect of all priorities and elements interact with other elements (haghighat monfared, 2011).

Aim of the research The purpose of the research study, by ranking the factors influencing ethical behavior in a case study.

The analysis hierarchical process was used to prioritize and evaluate the performance of the model parameters based on the employee's insurance company va Bakhtiari, Iran. This library was identified based on the factors influencing ethical behavior of employees in the organization. Compare and was prepared to do the dread criteria identified by network analysis, a questionnaire is divided into four sections:

• Part I: Paired comparisons between the main factors • Part II: Paired comparisons between the macro-level factors • Part III: Paired comparisons between the intermediate level of • Part IV: Paired comparisons between the micro-level factors

Numbers table corresponding verbal scales

Paired comparisons of the main criteria In this part of the investigation of a pair of matrices, each level is given as an example. After the initial calculation to determine the weighting factors were used to model the super decision software. A paired comparison table between the main factors influencing ethical behavior

Table normalized main factors influencing ethical behavior


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As the results show measure the micro level and the macro level, the highest importance is the least important. Before weighting, inconsistency rate was calculated, If this rate is higher than 1, the matrix is inconsistent. Compliance rate was calculated and shows the consistency of response personnel is 0.403. This method is based on the weight of each criterion third level network structure matrix is obtained as follows.

Under the weight of the macro-level factors

RESULTS

According to the results of the paired comparisons of macro-level factors with respect to its impact on ethical behavior, culture with0. 353 points, Has been the most important factor in influencing ethical behavior by law 0.095, Least important in influencing ethical behavior. Similarly, middle and micro level factors on the rankings table below presents.

Ranking below middle level of ethical behavior

CONCLUSION

Factors at the time of the hiring manager can order of preference with respect to the Pareto law, they can be given special attention include: Culture, plans, beliefs, attitudes, behavioral principles, values, beliefs, self-power, demographic.

Significant factors at the time of employment, the manager may need to be considered include: the economy, reward systems, organizational culture, behavior management, organizational objectives, level of moral development, parental influence, law, technology, political environment, resources, people, reference, climate performance evaluation, control, field dependence, competition, job characteristics authority.

Then, according to the functional nature of this paper, it is proposed the following recommendations:

1. plan to promote ethical behavior and ethical organization is provided for using the proposed framework, after its review of the test study.

2. According to the ranking criteria and prioritization factors, this study suggested that managers: These priorities are used in the

planning and management of human resources in the future.

3. The attention to the factors that have the highest ranking, Seems to be necessary in terms of planning and management of human resources.

REFERENCES

Ajdari, A. (2010), human resource management and ethics associated with the sun.

Ebadollah Chnzanq, H. and Nejat, J. (2010), values and work ethics (case study teachers Rasht), University of Guilan.

Faghihi, AH and Rezaei Manesh, B. (2005), Business Ethics, Computer Research Center of Islamic Sciences.

Geren,Brenda(2011),The work ethic: is it universal? , Journal of International Business and Cultural Studies, New York Institute of Technology.

Haghoghat monfard, SJ, and Rezaie, A. (2011), business intelligence, performance evaluation model based on fuzzy analytic network process, beyond , Year IV, No. 16.

Ihsan Yu¨ksel, Metin Dagdeviren(2007) "Using the analytic network process (ANP) in a SWOTanalysis-A case study for a textile firm" .Information Sciences, Vol. 20.

Mayd Far, S. (2003), examining the ethics and social factors influencing Tehran, the Supreme Council of Cultural Revolution.

Meade, L.M., &Sarkis, J. (1999).Analyzing organizational project alternatives for agile manufacturing processes :An analytical network approach. International Journal of production Research.

Morteza Motahari (1990), Instrumental - Spirituality - practical wisdom, pure breeze Online Library.

Mourhd and Griffin (1995), Organizational Behavior, Translation: Syed Mehdi Alvani and G. Memarzade, publications Pearl.

Nasr Abadi, Hassan Ali Bakhtiar and Heydari, MH and Behravan, H. (2010), critical


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rationality with social ethics, quarterly strategy twentieth year, No. 59.

Qaramaleki, Ahdframrz (2009), organizational ethics, the preeminent publisher.

Sheikh Muhammad Hussein (2011), factors affecting health, administrative and moral development of its Islamic Research, First year, second edition.

Tavalaee, R. (2011), Factors influencing the ethical behavior of employees in organizations, Journal of Human Development and the Police, Sixth Year, Number 25.

Wahibur Rokhman(2010), The Effect of Islamic Work Ethics on Work Outcomes, Electronic Journal of Business Ethics and Organization Studies.

Ying, H. & Chang, L.J., (2009), "A Fuzzy-AHP Based Innovation Ability Evaluation System for Small and Medium Sized Enterprise Clusters", International Conference of Information Management, Innovation Management and Industrial Engineering.

Zahedi, Shams al-Sadat (2000), Management of transnational and global, comparative perspective, Tehran, SAMT publications.


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APPENDIX

Table 1

Factors influencing the ethical behavior of employees

Factors influencing ethical behavior and offer them

The macro level

Culture: to culture at large, thrive while the ethnicity of people closely.

Economy: The economic conditions (such as finance) would be unethical behavior in organizations.

Political environment: unstable political conditions could affect the ethical behavior.

Technology: Technology can increase unethical behavior in organizations affect. Like intercepted conversations, capture email ...

Religion: religious sentiment of the people who are important regulators of moral.

Law: Sometimes laws are vague. A lot of times people think that because their is no legal problem, then morality. But the legality and morality are not necessarily with the same meaning.

The Middle level

Competition: Competition actions may Modulator moral decisions moral behavior.

Reward systems: financial and non-financial rewards to promote immoral behavior.

Principles of behavior: the ethical policies to substantially reduce unethical decisions.

Job Profile: The job is more focused, more likely to make ethical decisions.

Resource: scarcity of resources and pressure from shareholders may be a breach of ethical behavior within the organization.

Organizational culture: a culture that could create collective norms that guide behavior.

Goals: the main objective is to define the rate of return on investment, ethical practice is a secondary objective.

Behavior Management: Senior management should promote ethical behavior. However, ethical behavior should be upgraded and strengthened the company and industry.

Climate: climate or the environment, based on a common understanding of the psychological aspects of the work environment.

Position: senior management positions lower than employees are aware of ethical problems.

Performance evaluation: Police and pressure led to unethical behavior is


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unreasonable.

Reference Person: Awareness of the partners has a great influence on ethical behavior.

The Micro-level

Attitude: To what extent are the people engaging in a particular behavior as good or bad. The odd behavior is more desirable to evaluate their behavior tend to run the show.

Intent: If decision makers have the ability to act in an ethical manner, there is no guarantee that any way to act unless they have to act ethically.

Power of Soul: People who have a high degree of self-power most meet ethics

Control: People with less external control responsibility to accept the consequences of your actions.

The field dependence: the dependence of the field, most of the foreign public authorities can use to guide their behavior.

Demographic: Older people tend to give lower scores to the moral argument as the education level increases tend to give higher scores to more ethical arguments. Differences in gender roles, religious beliefs, age, work experience factors that may affect ethical decisions.

Parents influence: the development of moral behavior can be influenced by adults and especially parents.

Level of moral development: Moral development levels will affect the work of right and wrong.

Beliefs: beliefs also have a significant impact on ethical decisions.

.Values: Values of individual decision affects his decision

factor Micro-level Middle level Macro level

Micro-level 1 3 6

Middle level

0.330 1 4

Macro level 0.167 0.25 1

sum 0.497 4.25 11

factor Micro-level Middle level Macro level

Micro-level 0.67 0.70 0.55

Middle level

0.22 0.27 0.36

Macro level 0.11 0.06 0.09


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factor Weight

Micro-level 0.64

Middle level 0.27

Macro level 0.09

Numbers table corresponding verbal scales

Score Answer (degree of importance)

Same 1

Slightly more 3

More important 5

Much more 7

Strongly more important 9

Intermediate 8/6/4/2

Factors Culture Economy Political

Environment

Technology Religion Law

Culture 1 5 7 9 1 4

Economy 0.2 1 3 5 4 1

Political

Environment

0.14 0.33 1 3 0.33 0.2

Technology 0.11 0.2 0.33 1 0.2 6

Religion 1 0.25 3 5 1 7

Law 0.25 1 5 0.17 0.14 1

sum 2.8 7.78 19.33 23.17 6.67 19.2

Normalized table below macro-level factors influencing ethical behavior

Factors Culture Economy Political

Environment

Technology Religion Law

Culture 0.37 0.67 0.36 0.39 0.15 0.21

Economy 0.07 0.13 0.16 0.22 0.6 0.05

Political

Environment

0.05 0.04 0.05 0.13 0.05 0.01

Technology 0.04 0.03 0.02 0.04 0.03 0.31

Religion 0.37 0.03 0.15 0.21 0.15 0.37

Law 0.1 0.13 0.26 0.01 0.02 0.05


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Ranking the macro level of ethical behavior

Factors Weight

Culture 0.353

Economy 0.205

Political Environment 0.055

Technology 0.078

Religion 0.214

Law 0.095

Factors Rank

Competition 0.140

Reward system 0.204

Behavioral principles 0.140

Job Characteristics 0.010

Resources 0.330

Organizational Culture 0.174

Organizational goals 0.162

Behavior Management 0.171

Climate 0.260

Authority 0.010

Performance Evaluation 0.250.

People Reference 0.310

Ranking the micro level of ethical behavior

Factors Rank

Attitude 0.154

Intent 0.246

Power of Soul 0.580

Control Center 0.210

The field dependence 0.190

Demography 0.130

Parental influence 0.101

Level of moral development 0.130

Values 0.134

Beliefs 0.124

Weight factors using super decision software to order of preference

Factors Weight matrix Degree of importance (Rank)

Culture 0.353 1

Intent 0.246 2

Religion 0.214 3

Economy 0.205 4

Reward system 0.204 5

Organizational Culture 0.174 6

Behavior Management 0.171 7

Organizational goals 0.162 8

Attitude 0.153 9

Behavioral principles 0.140 10

Values 0.134 11


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Level of moral development 0.130 12

Beliefs 0.124 13

Parental influence 0.101 14

Law 0.095 15

Technology 0.078 16

Power of Soul 0.058 17

Political Environment 0.055 18

Resources 0.033 19

People Reference 0.031 20

Climate 0.026 21

Performance Evaluation 0.025 22

Control Center 0.021 23

The field dependence 0.019 24

Competition 0.014 25

Demography 0.013 26

Job Characteristics 0.010 27

Authority 0.010 28

Micro-level 11 0.134 Values

Micro-level 12 0.130 Level of moral development

Micro-level 13 0.124 Beliefs

Micro-level 14 0.101 Parental influence

Factors Weight matrix Degree of importance (Rank)

Level of factor

Culture

0.353 1 Macro level

Intent

0.246 2 Micro-level

Religion 0.214 3 Macro level Economy 0.205 4 Macro level Reward system 0.204 5 Middle level Organizational Culture 0.174. 6 Middle level Behavior Management 0.171 7 Middle level Organizational goals 0.162. 8 Middle level Attitude 0.153 9 Micro-level Behavioral principles 0.140 10 Middle level

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