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Ethics Exam No. 2

Chapters 7-12

The 4 dimensions of diversity are? permanent, evolving, personality and organizational.
Self-Categorization Theory people define themselves in relation to others based on a "self-identity" or "social-identity" characteristics (race, gender, and religion).
Workplace Discrimination Types: Gender women are sometimes discriminated based on physical and personality characteristics.
Workplace Discrimination Types: Pay Inequality & Equal Pay Act prohibits pay discrimination based solely on gender considerations. Men and women must receive equal pay for equal work.
Workplace Discrimination Types: Reverse Discrimination refers to discriminating against a dominant or majority group member, such as Caucasian males, in favor of a historically disadvantaged or minority group member.
Workplace Discrimination Types: Gender - Glass Ceiling Refers to situations in which the hierarchical advancement of a qualified woman or minority group member is prematurely stopped at a lower level because of gender, racial, or ethnic discrimination.
Workplace Discrimination Types: Racial and Ethnic Discrimination discrimination based on a person's birthplace, ancestry, culture, and native language.
Workplace Discrimination Types: Religious Discrimination refers to treating employees differently because of his/her religious beliefs.
Workplace Discrimination Types: Age Discrimination refers to treating employees differently because of his/her age.
Workplace Discrimination Types: Disability Discrimination ADA (Americans with Disabilities Act) prohibits discrimination against a qualified worker with a disability who can perform the job task with/without reasonable accommodation.
Workplace Discrimination Types: Sexual Orientation Discrimination ENDA (Employment Non-Discrimination Act), protects LGBT people from job discrimination.
Workplace Discrimination Types: Harassment, Sexual Harassment, Hostile Work Environment unwelcomed sexual behavior.
Retaliation for Discrimination Claim laws carry a stipulation that is is ILLEGAL to take retaliatory adverse action against someone who complains to an employer, manager, or law official about a discrimination issue. (ex: termination, demotion, promotion denial, increased surveillance, etc.)
Competitive Advantages of Diversity Management. What are they? to attract & retain diverse customers; to attract & retain diverse employees, to achieve cost reductions; to enhance decision making, problem solving, and creativity; to increase stakeholder goodwill
Best Operational Practices for Managing Diversity diversity officer/committee officer; recruiting & hiring; personnel policies; dispute resolution mechanisms; retention & promotions; performance appraisals; termination & downsizing
Implementing Diversity Initiative Creating an organizational culture that respects diversity requires planning and effort. (read 10-step process)
Diversity Training: Dominant Group refers to the diverse characteristic that is held in common by a large number of employees, typically Caucasian males.
Diversity Training: Subordinate Group refers to the diversity characteristics held by a small minority of organizational members.
Diversity Discussion & Training Exercises it takes time & effort to develop a safe & supportive work environment that respects diverse people. All employees need to be trained to appropriately interact with diverse populations of customer/coworkers.
2 important goals of Diversity Training are: eliminate values, stereotypes, & managerial practices that inhibit the personal/professional development of diverse employees; allow diverse employees to contribute their best efforts for achieving superior organizational performance.
Dominant Group Status members are often unaware of the special status they have over subordinate group members.
Implicit Attitude Test (IAT) helps employees understand unconscious prejudices they might hold toward people belonging to other groups. It is a 10-min. reaction test that uses computer images...
Experiences Being Prejudged Exercise describe how you have been stereotypes in a positive/negative way; what were your reactions when the negative incident occurred?; what were the overall consequences of the negative incident?
Dominant/Subordinate Group Dynamics Exhibit 7.5 (pages 224-225)
Individual Uniqueness & Commonalities helps employees understand how each of them id unique, and also how each shares some common traits with members of other diverse groups.
Sexual Harassment Types quid-pro-quo and hostile environment.
Communication Styles Own; Boss's; Subordinate's; Peer's
Employee Silence on Ethical Misconduct a manager's knowledge about how well the organization performs is generally limited to his/her immediate experiences and information sources, such as feedback from employees/customers.
Employee Silence refers to an employee who observes ethical misconduct at work but does not discuss the matter with the person engaged in the ethical misconduct or someone else in the organization with authority. (up to 37% of people who see misconduct fail to report it)
Unreported Observed Ethical Misconducts Exhibit 8.1 (page 241)
Reasons for Employee Silence Exhibit 8.2 (page 242)
Employee Empowerment refers to employees possessing the authority to make decisions affecting themselves and their work.
Ethically Approachable Managers an important managerial skill for helping employees overcome fears about discussing any workplace problem, including ethical misconduct.
How is someone approachable? beings with managerial honesty & transparency; frequent interactions with subordinates; open door policy; exhibits empathy, sympathy, compassion, justice, integrity, and kindness in a nonjudgmental manner.
Ethics & Compliance Officer (ECO) The ECO needs to work within the organization's tradition and work culture, gather the perspectives of multiple people associated with the issue, and then present a balanced perspective to the appropriate manager with suggested solutions.
What does an ECO do (duties and skills)? manage internal reporting systems; assess areas for ethical risks; offer guidance; monitor the organization's adherence to its Code of Ethics and Code of Conduct; oversee the ethics communication strategy; develop & interpret ethics policies...
What does an ECO do (duties and skills)? oversee the ethics training program; receive information about potential wrongdoings; collect & analyze relevant data; ensure that decisions are made and enforced; inform employees about outcomes
Internal Reporting System Exhibit 8.3 (page 249)
Ombudsperson job scope is narrower than that of an ECO; guarantees employee anonymity; develops a plan for gathering information without revealing the identity of the complainant; serves as a restraint against managerial abuse of power & other unethical activities.
Chaplains (usually in hospitals) members of a religious clergy trained in providing spiritual advice; on call 24 hours a day, 7 days a week; meetings are during non-work hours.
Assist Lines "ethics hotlines" - a method of obtaining information about situations that may be unethical/illegal. Assured anonymity.
Assist Lines - Types of Inquiries some employees call for assistance in solving a human resource issue...others consist of employees asking for ethics policy clarifications.
Whistle-blowing contacting someone outside the organization about potential or actual nontrivial misconduct inside the organization.
When to blow the whistle? serious harm is involved; the whistle-blower has already expressed his/her concerns to an immediate superior; the whistle-blower has exhausted other communication channels within the organization; the whistle-blower has convincing, documented evidence.
False Claims Act (passed in 1863 during the Civil War) the U.S. Department of Justice encourages whistle-blowing on fraud issues by offering financial rewards for information that leads to successful recovery of funds.
Whistle-blower Protection Laws fear of retaliation is one of the primary reasons why employees do not blow the whistle on illegal activities. (exhibit 8.6 on pages 258-259).
Sarbanes-Oxley Act of 202 (SOX) According to SOX, no publicly traded company/subcontractor of that company can discahrge, demote, suspend, threaten, harass, or in any manner discriminate against a whistle-blower. It established criminal penalties for retaliation against whistle-blowers
Managers as Ethical Role Models role modeling is very important; direct supervisors have the greatest impact on an employee's ethical performance.
Stages of Moral Development & Type of Manager - Stages 1 & 2: OPPORTUNIST strongly influenced by rewards and punishments.
Stages of Moral Development & Type of Manager - Stage 3: DIPLOMAT strongly influenced by social group norms and supports decisions agreed to by other managers. Want to be good team players, seek group consensus, and avoid group conflict.
Stages of Moral Development & Type of Manager - Stage 4: TECHNICIAN strongly influenced by technical logic and determines the right thing to do based on data and organizational interests. Arrange organizational pieces so that the job can be performed well.
Stages of Moral Development & Type of Manager - Stage 5: ACHIEVER goal oriented and strongly influenced by organizational success. Sets high personal goals and is oriented toward implementing the strategy with the highest likelihood of generating successful organizational outcomes.
Stages of Moral Development & Type of Manager - Stage 6: STRATEGIST AND MAGICIAN ... Strategist? a systems thinker who welcomes ambiguity and multiple perspectives, analyzes the strengths and differences of different approaches, and then applies one overarching organizing principle to generate the best solution.
Stages of Moral Development & Type of Manager - Stage 6: STRATEGIST AND MAGICIAN ... Magician? adds a commitment to personal, employee, and organizational transformation, and a willingness to change based on a vision of the good.
Personal Integrity essential component of successful leadership; the final proof of mgt's sincerity & seriousness is emphasis on integrity of character; it is character through which leadership is exercised, it is character that sets the example and is imitated.
Managerial Power: LEGITIMATE POWER power that is formally assigned to an individual, such as a title/position. ex) "the boss"
Managerial Power: REWARD POWER power obtained by being a person distributing rewards. ex) "I'm gonna do what I'm told b/c I want to get a bonus/promotion"
Managerial Power: COERCIVE POWER power obtained by enforcing punishments. ex) "I'm gonna do what I'm told b/c I don't wanna get fired"
Managerial Power: REFERENT POWER power obtained b/c people want to be like you. ex) "I'm gonna do what I'm told b/c I really admire that person"
Managerial Power: EXPERT POWER power obtained by being a source of desired knowledge/skills. ex) "I'm gonna do what I'm told b/c that person is an expert on the issue"
Managerial Power Some managers operate using ALL power bases!
Leadership Style: DIRECTING if an employee has low competence & high commitment (enthusiastic beginner), the manager needs to clearly direct the employee through one-way communication.
Leadership Style: COACHING if an employee has either low or some competence & lacks commitment (disillusioned learner), the managers needs to provide direction, guide the employee using two-way communication that stresses accountability & provide feedback.
Leadership Style: SUPPORTING if an employee has a moderate to high competence & variable commitment (capable but cautious performer), the managers needs to listen to the employee's concerns/suggestions & provide support/encouragement.
Leadership Style: DELEGATING if an employee has a high competence & high commitment (self-reliant achiever), the manager needs to delegate responsibilities, provide resources, and monitor progress.
Authoritarian and Participatory - THEORY X People are lazy, dislike work, avoid responsibilities, and do as little as possible unless induced by monetary incentives to provide their best effort.
Authoritarian and Participatory - THEORY Y People enjoy mental/physical activities, are self-directed, desire challenging/interesting work, and welcome additional work-related responsibilities.
Ethical Leadership (being a moral personal & manager) the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through 2-way communication, reinforcement, and decision-making.
Ethical Leadership Survey Exhibit 9.1 (page 275); 10 statements that describe attributes of being a moral person and a moral manager.
Virtue Ethics Survey Exhibit 9.2 (page 276); 19 statements that assess the extent to which each statement describes your manager (justice, fortitude, prudence, and temperance).
Servant Leadership achieving organizational results by humbly caring for and serving the needs of superiors, colleagues, and subordinates (characteristics: altruistic calling, emotional healing, wisdom, persuasive mapping, and organizational stewardship).
Holistic Organizational Goals managers focus on influencing employees to accomplish the twin goals of increasing productivity and profitability. Balanced Scorecard technique that measures organizational performance & Triple Bottom Line (performance).
Stretch Goals goals that challenge employees to perform at peak efficiency and effectiveness. It is one that appears to be just a little out of the employee's reach, thus the need to stretch to accomplish the goal.
Goal Setting Must be specific, but not too specific, and they must have a reasonable time span.
SMART Goals 5 attributes: Specific, Measurable, Aligned, Reachable, Time-Bound.
Stress Management stress can lead to employee health problems & low productivity. Organizations should help employees manage stress through Employee Assistance Programs.
Employee Performance Appraisal evaluates factors that are directly/indirectly related to achieving organizational and employee goals. Include an ethics component in employee's performance appraisals.
Collection & Evaluation Issues (read thoroughly) Conduct employee performance evaluations at least once a year. More frequent appraisals minimize damages b/c managers are aware of problems needing correction. Collect information from a wide range of people who interact with the employee being evaluated.
Performance Appraisal Feedback (read thoroughly) purpose is to praise an employee's good behaviors and accomplishments and develop strategies for improving weaknesses. Demonstrate respect.
Disciplining Work Rule Infractions: MAJOR INFRACTIONS any behavior punished harshly. ex) employee theft and drug/alcohol violations.
Disciplining Work Rule Infractions: MINOR INFRACTIONS many infractions are relatively minor. ex) being late for work, or playing solitaire on the PC during work time.
Disciplining Work Rule Infractions: FORGIVENESS uncovering phase; decision phase; work phase; outcome phase
Employee Engagement an emotional bond or attachment an employee has to the work task, organization, and its members.
Engaged employees... perform at high levels and are less likely to quit due to high levels of job satisfaction.
Human Needs (Abraham Maslow) 5 categories of needs every individual has: physiological, safety, social, self-esteem, and self-actualization
Maslow's: 5 Human Needs these 5 needs exist in the form of a hierarchy (first: physiological, last: self-actualization) - exhibit 10.1 on page 305.
Human Needs (David McClelland) complements Maslow s hierarchy of needs. He emphasizes the importance of employees experiencing a need for affiliation and a need for achievement. They have a need for power or authority. Not in the form of hierarchy!
Managers continue to assume that the best way to motivate employees is through financial rewards & threat of discipline True
Job Satisfaction Exhibit 10.2 on page 306
Organizational Justice employee engagement is more likely when employees perceive justice, or fairness, in decisions associated with organizational policies, procedures, and outcomes. Multidimensional (procedural, informational, interactional, and distributive)
Organizational Justice: PROCEDURAL JUSTICE Decision-making procedures are fair. Employees can provide input, procedures are unbiased and applied consistently.
Organizational Justice: INFORMATIONAL JUSTICE Information is conveyed fairly. Employees received relevant & accurate information in a timely manner.
Organizational Justice: INTERACTIONAL JUSTICE Employees treat each other fairly. Employees are treated with dignity by supervisors, peers, and subordinates.
Organizational Justice: DISTRIBUTIVE JUSTICE The distribution of outcomes is fair. Pay, benefits, promotions, and workloads reflect individual capabilities and efforts.
Unethical Bullies: BULLYING Repeated verbal abuse or abusive conduct that is threatening, humiliating, and intimidating and interferes with work.
Types of Bullying Behavior hostile, insulting remarks about appearance/lifestyle, hurtful jokes and pranks, taunting, excessive teasing/ridicule, continual false accusations, public criticism, and angry tantrums.
Bullying: Lack of Reporting behaviors often go unreported b/c bullies tend to be forma (if boss) or informal (if peer) leaders. Victims/witnesses remain silent b/c they fear being stigmatized as a squealer or retaliation from the bully.
Meaningful Work spending time at work to achieve something that is personally desirable. An employee passionately engages all his/her entire intellectual, physical, and emotional energies in the work that needs to be done b/c it is what he/she feels destined to do.
Meaningful Work: SERVING OTHERS making a difference in their lives and meeting the needs of humanity.
Meaningful Work: UNITY WITH OTHERS working together, sharing values, and having a sense of belonging.
Meaningful Work: DEVELOPING AND BECOMING SELF through moral development and personal growth, and by being true to self.
Meaningful Work: EXPRESSING ONE'S FULL POTENTIAL creating things, achieving tasks, and influencing others.
Measuring Employee Engagement - How do excellent managers treat employees? an excellent manager treated every employee as an individual, focused on an employee's strengths rather than weaknesses, and measured and rewarded outcomes.
Measuring Employee Engagement 12 core elements must be experienced at work to attract, engage, and retain employees. - Pay is not the most important motivational factor contributing to employee engagement productivity.
Employee Empowerment refers to giving employees decision-making authority, which can be further solidified with an ownership stake in the organization.
Employee Empowerment Exhibit 10.5 on page 313
Empowering through Teams: EFFECTIVE TEAMS Trust one another; engage in constructive conflict; personally commit to goal accomplishment; are accountable for their behaviors; focus on collectively achieving their assigned tasks.
Effective Teams: CONSTRUCTIVE CONFLICT employees who trust one another are psychologically safe to express differences of opinion.
Effective Teams: PINCH THEORY technique is a useful tool for preventing team conflicts from escalating. A situation where there is a difference b/w people regarding expectations, values, opinions, or goals.
Effective Teams: TEAM PROBLEM SOLVING PROCESS access each members' unique knowledge that of introverts as well as extroverts and helps generate solutions with the highest likelihood of achieving superior performance.
Open Book Management technique whereby managers share relevant financial and operational information with non-management employees so they can better understand the organization's financial situation & operational issues & make better informed decisions.
When is Open Book Management useful? particularly useful during recessionary periods or a slowdown in the business cycle.
Appreciate Inquiry a team based management technique that focuses on the strengths of both the employee and the organization.
Scanlon-type Gainsharing Plans empower employees by delegating institutional responsibility and accountability for improving operations to employee teams. Initially implemented in manufacturing facilities and have been extended to restaurants, hospitals, and government offices.
Profit Sharing providing employees with a share of company profits.
Stock Option & Stock Purchase Plans stock options give an employee the right to purchase a specific number of company shares at a fixed price by a particular future date.
Employee Stock Option Plan (ESOP) take stock options one-step further in empowering employees.
Cooperatives an alternative communal way to govern a business and raise capital.
Environmentally friendly organizations have adopted a Triple Bottom Line approach that assesses three performance factors: economic, social and environmental performance.
Environmental Trends organizations cause damage and they are trying to change and become more socially responsible.
Climate Change earth's temperature has increased since the Industrial Revolution. Global Warming.
Climate Change Impacts altered weather patterns have increased the frequency and severity of droughts and flooding.
Environmental Organizations the initial impetus to demand, or inspire, organizations to be more environmentally friendly came from citizens who possessed a strong environmental ethic.
Government and Market Responses: CLEAN AIR ACT amended clean air act of 1963 by establishing national air quality standards and statutory deadlines for compliance.
Government and Market Responses: ENVIRONMENTAL PROTECTION AGENCY federal agency established to protect human health and safeguard the natural environment
Government and Market Responses: NATIONAL ENVIRONMENTAL POLICY ACT required environmental impact studies for all federal government projects.
Government and Market Responses: CLEAN WATER ACT created a permit system to regulate water pollution point sources for industrial and agricultural facilities.
Government and Market Responses: ENDANGERED SPECIES ACT protected species at risk of extinction, and the ecosystems they depend on, due to economic growth and development.
International Agreements: KYOTO PROTOCOL a goal of reducing worldwide greenhouse gas emissions 5% below the 1990 level by 2012.
International Agreements: CAP AND TRADE CLIMATE EXCHANGES an emission trading system, is one of the most prominent ideas under consideration.
Competitive Advantages of Being Eco Friendly - COST SAVINGS reduction in escalating energy costs; lower insurance premiums for sustainable development initiatives; lower bank loan rates for acquisition due to less environmental risk.
Competitive Advantages of Being Eco Friendly - INNOVATIVE MARKET OPPORTUNITIES product differentiation through eco-labeling; new markets for green products & producing green technologies; customers with higher environmental expectations develop greater loyalty to products.
Competitive Advantages of Being Eco Friendly - EMPLOYEE RELATIONS BENEFITS many young professional consider environmental reputation when searching for jobs; employee are prouder to be associated with the organization; enhances employee commitment and performance.
Going Green Examples exhibit 11.5 on page 348
Green Mission Statement some organizations create an "environmental mission statement" that clearly articulates its relationship with the natural environment.
Green suppliers organizations receive inputs from the external environment and transform them into outputs released back into the external environment.
Environmental Management System (EMS) a document that describes how the organization conducts environmental policy development, environmental planning, environmental implementation, environmental monitoring and corrective actions, and management review.
Procedures for Environmental Management System Exhibit 11.10 on pages 357-358
Product Packaging and Design companies wanting to make product packaging more eco friendly. Less packaging.
Green Buildings operating in a green building (workplace).
Environmental Performance Indicators and Sustainability Reporting continuous environmental improvement entails creating historical benchmark measurements documenting previous environmental performance, measuring current environmental performance, and developing goals and targets for future environmental performance.
Global Reporting Initiative an international multi-stakeholder coalition, provides general guidelines for sustainability reporting that allow for some environmental performance comparisons between organizations.
tax avoidance legally not paying taxes
work-life balance achieving the appropriate balance between time spent working and one's personal life.
Double Standards Problem one set of behaviors that meets high expectations in the US and a different set of behaviors that meet low expectations in underdeveloped and developing nations.
UN Global Compact Principles the UN has developed guiding principles for conducting business anywhere in the world. (exhibit 12.1 on page 381)
Interpenertrating Systems Model segments human activities into 4 major subsystems: government, business, nonprofits, and personal-communal, each with its own purpose.
Stakeholder Dialogue companies can pursue 3 different strategies for managing stakeholders.
Stakeholder Dialogue: REACTIVE waits for problem to arise
Stakeholder Dialogue: PROACTIVE anticipates problems and implement plans before problem arises
Stakeholder Dialogue: INTERACTIVE engage with key stakeholders and jointly determines appropriate course of action
Philanthropy is the donation of money or property to assist a nonprofit organization or people in need.
Volunteerism is the donation of time for similar purposes.
What to give: money, products or services, skills, job opportunities
Social Entrepreneurship using business principles to directly meet basic human needs.
To Whom to Give 1st come 1st serve; outsource to organizations that chose recipients; develop partnerships w/ non-profits.
Reactive Giving versus Outsource Giving - REACTIVE GIVING giving resources to support local nonprofit organizations and causes that are meaningful to employees and community members.
Reactive Giving versus Outsource Giving - OUTSOURCE GIVING giving resources to support the local United Way or other highly credible intermediary organizations that select and monitor donation recipients.
Strategic Philanthropy partnering of a company and nonprofit organization to achieve a communal good that also benefits the company.
Community Involvement Management Process Exhibit 12.7 on page 398
Community Involvement as Employee Training provides an opportunity for team building, leadership training, and teaching project management, all of which directly impact a company's daily operations.
Networking provides many opportunities for networking with other businesses and community leaders.
Community Reputation Assessment ensures that an important intended benefit of community involvement, a better reputation-is being accomplished.
Social Performance Reporting education & training; philanthropy & charitable giving; community services & employee volunteering; total community expenditure; community engagement & dialogue.
Created by: kserrano005



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