CHAPTER 3

Ethics sets standards of good or bad, or right or wrong, in our conduct.Ethical Behavior is right or good in the context of governing moral code. Values- are broad beliefs about what is appropriate behaviorTerminal Values are preferences about desired end states.Instrumental Values are preferences regarding the means to desired ends.In the individualism view, ethical behavior advances long-term self interestsIn the justice view, ethical behavior treats people impartially and fairly.Procedural justice focuses on the fair application of policies and rulesDistributive justice focuses on treating people the same regardless of personal characteristics.Interactional justice is the degree to which others are treated with dignity and respectCommutative justice focuses on the fairness of exchanges or transactionsIn the moral rights view, ethical behavior respects and protects fundamental rights.Cultural relativism suggests there is no one right way to behave; cultural context determines ethical behavior.Moral absolutism suggests ethical standards apply universally across all culturesEthical imperialism is an attempt to impose ones ethical standards on other cultures.An ethical dilemma is a situation that, although offering potential benefit or gain, is also unethical.Ethical frameworks are well-thought-out personal rules and strategies for ethical decision making.Preconventional Self-Centered- Avoid harm or punishment Make deals for personal gainConventional Social-Centered- Act consistently with peers, Follow rules meet obligationsPost conventional Principle-Centered Act according, live up to societal expectations.Ethics training seeks to help people understand the ethical aspects of decision-making and to incorporate high ethical standards into their daily behaviorSpotlight questions highlight the risks from public disclosure of ones actionsWhistle blowers expose misconduct of organizations and their membersImmoral manager chooses to behave unethicallyAn amoral manager fails to consider the ethics of her or his behaviorA moral manager makes ethical behavior a personal goal.A code of ethics is a formal statement of values and ethical standardsStakeholders are people and institutions most directly affected by an organizations performance.Corporate Social responsibility is the obligation to serve its own interests and those of its stakeholders.The triple bottom line of organizational performance includes financial, social, and environmental criteria.The 3 Ps of organizational performance are profit, people, and planet.The classical view of CSR is that business should focus on the pursuit of profitsThe socioeconomic view of CSR is that business should focus on contributions to society, not just making profits.A virtuous circle exists when corporate social responsibility leads to improved financial performance that leads to more social responsibilityShared value approaches business decisions with understanding that economicand social progress are interconnected.Zone of Compliance- Economic Responsibility- Be profitable, Legal Responsibility-obey the law.Zone of Conviction- Ethical Responsibility- Do What is right, Discretionary- Contribute to community.A social responsibility audit measures and reports on an organizations performance in various areas of corporate social responsibilitySustainability is a goal that addresses the rights of present and future generations as co-stakeholders of present day natural resources.Sustainable business is where firms operate in ways that both meet the needs of customers and protect or advance the well-being of our natural environmentSustainable development is making use of natural resources to meet todays needs while also preserving and protecting the environment for us by future generationsEnvironmental capital or natural capital is the storehouse of natural resourcesatmosphere, land, water, and mineralsthat we use to sustain life and produce goods ISO 14001 is a global quality standard that certifies organizations set environmental objectives and targets, account for the environmental impact of their activitiesA social business is one in which the underlying business model directly addresses a social problemSocial entrepreneurs take business risks to find novel ways to solve pressing social problems.

CHAPTER 9

Organizational culture is a system of shared beliefs and values guiding behaviorStrong cultures are clear, well-defined, and widely shared among membersSocialization is the process through which new members learn the culture of an organizationThe observable culture is what you see and hear when walking around an organization and stories, heroes, symbols, and rites and rituals.The core culture is found in the underlying values of the organizationCore values are beliefs and values shared by organization membersValue based management actively develops, communicates, and enact shared valuesA symbolic leader uses language and symbols and actions to establish and maintain a desired organizational cultureWorkplace spirituality involves practice that creates meaning and shared community among organizational members.Innovation is the process of taking a new idea and putting it into practiceProcess innovations result in better ways of doing thingsProduct innovations result in new or improved goods or servicesBusiness model innovations result in ways for firms to make money.Green or sustainable innovation reduces carbon footprint of an organization or its productsSocial Innovation is business innovation driven by a social consciousSocial Entrepreneurship pursues innovative ways to solve pressing social problems. Commercializing innovation is the process of turning new ideas into salable products, Initial (Sharing), Feasibility (Testing), Final (Commercializing), Idea (Discovering)Skunkworks are special creative units set free from the normal structure for innovationHighly innovative Org- Strategy Includes innovation, culture values innovation, structures support innovation, management supports innovation, staffing for creativity and innovation.A change leader tries to change the behavior of another person or social system.Transformational change results in a major and comprehensive redirection of the org.Incremental change bends and adjusts existing ways to improve performanceGuidelines for Change- Establish form create empower celebrate build stayUnfreezing is the phase during which a situation is prepared for changeChanging is the phase where a planned change actually takes placeRefreezing is the phase at which the change is stabilized.A force-coercion strategy pursues change through formal authority and/or the use of rewards or punishmentsA rational persuasion strategy pursues change through empirical data and rational argumentA shared power strategy pursues change by participation in assessing change needs, values, and goals.Why people resist change- Fear of unknown, disrupted habits, loss of confidence, loss of control, poor timing, work overload, loss of face, lack of purpose.

CHAPTER 10

Human resource management is the process of attracting, developing, and maintaining a high-quality workforceHuman capital is the economic value of people with job-relevant abilitiesStrategic human resource management mobilizes human capital to implement organizational strategiesJob discrimination occurs when someone is denied a job or a job assignment for non-job-relevant reasonsEqual employment opportunity is the right to employment and advancement without regard to sex, race, or religionAffirmative action is an effort to give preference in employment to women and minority membersBona fide occupational qualifications are employment criteria justified by capacityEmployee privacy is the right to privacy on and off the jobAge discrimination penalizes an employee in job applicant for being over the age of 40Person-job fit is the match of individual skills, interests, and personal characteristicsPerson-organization fit is the match of individual values, interests, and behavior with the organizational culture.Recruitment is a set of activities designed to attracted a qualified pool of job applicants.Realistic job previews provide job candidates with all pertinent information about a job and organizationSelection is choosing whom to hire from a pool of qualified job applicantsReliability means that selection device gives consistent results over repeated mannersValidity means that scores on a selection device have demonstrated links with future job performanceAn assessment center examines how job candidates handle simulated work situationsWork sampling evaluates applicants as they perform actual work tasksSocialization systematically influences the expectations, behavior, and attitudes of new employeesOrientation familiarizes new employees with jobs, co-workers, and organizational policies and services.Coaching occurs as an experienced person offers performance advice to a less experienced personMentoring assigns early-career employees as protgs to more senior onesIn reverse mentoring, younger and newly hired employees mentor senior executives Performance appraisal is the process of formally evaluating performance and providing feedback to a job-holder. Measures and documentsA graphic rating scale uses a checklist of traits to evaluate performanceA behaviorally anchored rating scale uses specific descriptions of actual behaviors to rate various levels of performanceThe critical-incident technique keeps a log of ones effective and ineffective behaviors360 Degrees feedback includes superiors, subordinates, peers, and even customers in the appraisal processA multiperson comparison compares one persons performance with that of othersCareer Development is the process of managing how a person grows and progresses in a career.Career planning is the process of matching career goals and individual capabilities with opportunities for the fulfillmentWork-life balance involves balancing career demands with personal and family needsIndependent contractors are hired on temporary contracts and are not a part of workforceContingency workers work as needed and part-time, often on a longer-term basisMerit pay awards pay increases in proportion to performance contributions.Bonus pay plans provide one-time payments based on performance accomplishmentsProfit sharing distributes to employees a proportion of net profits earned by the org.Gain sharing allows employees to share in cost savings or productivity gains realized by their efforts.Stock options give the right to purchase shares at a fixed price in the futureFringe benefits are nonmonetary forms of compensation such as health insurance and retirement plansFamily-friendly benefits help employees achieve better work-life balanceFlexible benefits programs allow choice to personalize benefits within a set dollar allowance.Employee assistance programs help employees cope with personal stresses and problemsA labor union is an organization that deals with employers on the workers collective A labor contract is a formal agreement between a union and an employer about the terms Collective bargaining is the process of negotiating, administering, and interpretingTwo tier wage systems pay new hires less than workers already doing the same jobCHAPTER 11

Leadership is the process of inspiring others to work hard to accomplish important tasksPlanning-sets direction, Organizing-brings together, Leading-builds. Controlling-makesurPower is the ability to get someone else to do something you want doneReward power achieves influences by offering valueCoercive power achieves influence by punishmentLegitimate power achieves influence by formal authorityExpert power achieves influence by special knowledgeReferent power achieves influence by personal identificationA vision is a clear sense of the futureVisionary Leadership brings to the situation a clear sense of the future and an understanding of how to get thereTraits of Leaders- Drive, Self-confidence, creativity, cognitive ability, business knowledge, motivation, flexibility, honest and integrity.Laissez-Faire is least effectiveLeadership Style is the recurring pattern of behaviors exhibited by a leaderAn autocratic leader acts in unilateral command-and-control fashionA human relations leader emphasizes people over tasksA democratic leader encourages participation with an emphasisA laissez-faire leader is disengaged, showing low task and people concernsThe contingency leadership perspective suggests that what is successful as a leadership style varies according to the situation and people involvedHouses theory believes leaders move back and forthLeadership styles, Directive, Supportive, Achievement-orientated, participative leaderAuthority decision is made by the leader and then communicated to the groupA consultative decision is made by a leader after receiving information, advice or opinionA group decision is made by group members themselvesA charismatic leader develops special leader-follower relationships and inspires followersTransactional leadership directs the efforts of others through tasks and rewardsTransformational leadership is inspirational and arouses effort and performanceEmotional Intelligence is the ability to manage our emotions in leadership and social relationships, self-awareness, social awareness, self-management, relationship manageThe gender hypothesis holds that males and females have similar physiological makeupInteractive leadership is strong on communicating, participation, and dealing wit problemMoral leadership has integrity and appears to others as good or right by standards.Integrity in leadership is honesty, credibility, and consistency in putting values into actionServant leadership means serving others and helping them use their talents to helpEmpowerment gives people job freedom and power to influence affairs

CHAPTER 12

Perception is the process through which people receive and interpret information from the environment.A stereotype assigns attributes commonly associated with a group to an individualA halo effect uses one attribute to develop an overall impression of a person or situationSelective perception focuses attention on things consistent with existing beliefs, needs, or actions.Projection assigns personal attributes to other individualsAttribution is the process of creating explanations for events.The fundamental attribution error overestimates internal factors and underestimates external factors as influences on someones behavior.Self-serving bias underestimates internal factors and overestimates external factors as influences on someones behavior.Impression management tries to create desired perceptions in the eyes of others.Personality is the profile of characteristics making a person unique from others Big traits- Extraversion, agreeableness, conscientiousness, emotional stability, openness to experienceLocus of Control is the extent to which one believes what happens is within controlAuthoritarianism is the degree to which a person defers to authorityMachiavellianism is the degree to which someone uses power manipulativelySelf-monitoring is the degree to which someone is able to adjust behaviorStress is a state of tension experienced by individuals facing demands or constraintsType A personality is oriented toward extreme achievement, impatience, and perfectionConstructive stress is a positive influence on effort to workDestructive stress is a negative influence on ones performanceJob burnout is physical and mental exhaustion from work stressWorkplace rage is aggressive behavior toward co-workers or the work settingPersonal wellness is the pursuit of a personal health-promotion programAn attitude is a predisposition to act in a certain wayCognitive dissonance is discomfort felt when attitude and behavior are inconsistentJob satisfaction is the degree to which an individual feels positive about a job and work experience. The job itself, quality, co-workers, opportunities, pay, work conditions, securityWithdrawal behaviors include absenteeism and turnoverOrganizational citizenship behaviors are things people do to go far in their workEmployee engagement is a strong sense of belonging and connection with ones work and employerEmotional intelligence is an ability to understand emotions and manage relationships effectivelyEmotions are strong feelings towards someone or somethingMoods are generalized positive and negative feelings or states of mindMood contagion is the spillover of ones positive or negative moods

CHAPTER 14

A team is a collection of people who regularly interact to pursue common goalsTeamwork is the process of people actively working together to accomplish goalsSynergy is the creative of a whole greater than the sum of its individual partsSocial loafing is the tendency of some people to avoid responsibility by free-ridingA formal team is officially recognized and supported by the organizationAn informal group is artificial and emerges from relationships and shared interest among membersA committee is designated to work on a special task on continuing basisThe project team or task force is convened for a specific purpose and disbands after completing its taskA cross functional team operates with members who come from different functional units of an organizationAn employee involvement team mates are regular basis to help achieve continuous improvementA quality circle is a team of employees who meet periodically to discuss ways of improving work quality Members of a virtual team work together and solve problems through computer-based interactionsMembers of a self managing team have the authority to make decisions about how the share and complete their workAn effective team achieves high levels of task performance, membership satisfaction, and future viabilityMembership composition is the mix of abilities, skills, backgrounds, and experiences among team membersStages of development, forming, storming, norming, performing, adjourningTeam process is the way team members work together to accomplish tasksA norm is a behavior, rule, or standard expected to be followed by team membersThe performance norm defines effort in performance and contributions expected of team members, Act, reinforce, control, train, recruit, hold, use Cohesiveness is the degree to which members are attracted to and motivated to remain part of the teamA task activity is an action taken by a team member the directly contributes to the groups performance purposeA maintenance activity is an action taken by a team member that supports the emotional life of the groupDistributed leadership is one any and all members contribute helpful tasks and maintenance activities to the teamDisruptive behaviors are self-serving and cause problems for team effectivenessA decentralized communication network allows all members to communicate directly with one anotherIn a centralized communication network communication flows only between individual members and a hub or center pointSubgroups in a restrictive communication network contest one anothers positions and restricted interactions with one anotherTeambuilding involves activities together and analyze data on a Team and make changes to increase its effectivenessDecision-making is a process of making choices among alternative courses of actionConsensus is reached when all parties believe they have had their say and have been listened to, and agreed to support the groups final decisionGroupthink is a tendency for highly cohesive teams to lose her evaluative capabilitiesConflict is a disagreement over issues of substance and or an emotional antagonismSubstantive conflict involves disagreements over goals, resources, rewards, policies, procedures, and job assignmentsEmotional conflict results from feelings of anger, distrust, dislike, fear and resentment as well as from personality clashesAvoidance pretends that conflict doesnt really existAccommodation or smoothing plays down differences and highlights similarities to reduce conflictCompetition or authoritative command, uses force, superior skill, or domination to win a conflictCompromise occurs when each party to the conflict gives up something of value to the otherCollaboration, or problem-solving, involves working through conflict differences in solving problems so everyone winsConflict resolution is the removal of substantive and/or emotional reasons for conflict

CHAPTER 15

Social capital is a capacity to attract support and help from others in order to get things doneCommunication is a process of sending and receiving symbols with the meanings attachedIn effective communication the receiver fully understands the intended meaningEfficient communication occurs at minimum cost to the centerPersuasive communication presents a message in a manner that causes others to accept and support itCredible communication earns trust, respect, and integrity in the eyes of othersNoise is anything that interferes with the communication processA communication channel is a medium used to carry a messageChannel richness is a capacity of a communication channel to effectively carry informationNonverbal communication takes place through gestures, expressions, posture, and even use of interpersonal spaceA mixed message results when words communicate one message while actions, body language, where parents communicate something elseFiltering is the international distortion of information to make it more favorable to the recipientActive listening helps the source of a message say what you were she really meansFeedback is a process of telling someone else how you feel about something that person did or saidProxemics is the study of the way we use spaceCommunication transparency involves being honest and openly sharing accurate and complete informationIn open-book management managers provide employees with essential financial information about their employersThe electronic grapevine uses computer technologies to transmit information around informal networks inside and outside of organizationsEthnocentrism is the tendency to consider ones culture superior to any and all othersCultural etiquette is use of appropriate manners and behaviors and cross-cultural situations