MGT 481 study guide for exam 2
MGT 481 study guide for exam 2 Management 481
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This 15 page Study Guide was uploaded by Briana Notetaker on Thursday March 31, 2016. The Study Guide belongs to Management 481 at Western Illinois University taught by Dr. Gordon P. Rands in Winter 2016. Since its upload, it has received 76 views. For similar materials see Management and Society: Ethics and Social Responsibility in Business, management at Western Illinois University.
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MGT 481 Exam 2 Study Guide Spring 2016 I have listed the topics as they appear in the schedule. See the appropriate chapters or partial chapters. Some of the questions listed may have been dealt with on the slides and in lecture, but not in the readings. Be sure to refer to the slides and your notes as you review for the exam. Ethics and Human Nature C1(1831), C2 (6264) 1. What are the four basic views of human nature discussed by Collins? Born with prior knowledge of right and wrong Born good Born with Inherited Sin/Morally Imperfect Born Morally Neutral 2. Why is Kohlberg's theory of moral development called a developmental theory? Which level and stage do most American adults seem to reason at? Because the theory progresses in stages and most adults reason at the conventional level 3. What is the focus of moral reasoning at each of the three levels, and the criteria guiding moral reasoning at each of the six stages? At the preconventional level, the individual is not perceived as being part of a broad community with rules and regulations. Instead, the right thing to do is that which generates personal pleasure and avoids pain. At the conventional level, societal roles and agreements matter a great deal to the individual. The right thing to do is to be a good role model and maintain societal order. At the post conventional level, the individual delves into the principles that govern societal roles and order. The right thing to do is to abide by abstract universal ethical principles, such as justice for everyone associated with the issue, that should be the basis of, but may conﬂict with, particular societal rules and regulations. The criteria guiding moral reasoning at each of the six stages: ObedienceandPunishment orientation. Right is determined by obeying rules from a superior authority and avoiding punishment. 1 Instrumental orientation. Right is determined by a selﬁsh desire to obtain rewards and beneﬁts from others. You should be nice to other people so that they will be nice to you. Good Boy–Nice Girl orientation. Right is determined by winning the approval, and avoiding the disapproval, of others. You should be concerned about the feelings of other people and keep loyalty and trust with partners. LawandOrder orientation. Right is being a dutiful citizen who follows societal rules and maintains social order. Social contract orientation. Right is determined by preserving mutually agreed upon human rights and changing unjust laws for the sake of community welfare. Individual freedom should be limited only when such freedom interferes with other people’s freedom. Universal ethical principles orientation. Right is determined by following abstract universal ethical principles (such as justice, the Golden Rule, equality, and respect for life). These principles represent a universal consciousness that all humanity should follow. 4. What are the four reasons that good people sometimes behave unethically? First, a good person may not have intended to generate the resultant unethical outcome. Second, a good person may choose one set of values over a competing set of values. Third, a good person may justify the unethical behavior based on a reason considered more compelling, such as organizational survival. Fourth, a good person may choose not to prevent an unethical behavior for compelling reasons, such as fear of being ﬁred or retaliation. 5. What are the different elements of the Optimal Ethics Systems Model? Business ethics scholars and consultants have also developed a variety of audits and surveys to help organizations account for ethical behaviors. Synthesizes these various approaches into a systematic best practices framework for reinforcing ethical behaviors, and reducing ethical risks, throughout the workplace. 2 Successful longterm organizational growth requires honesty, trust, integrity, and credibility, among other ethical values. Creating and sustaining a culture of trust can be achieved through the multiple support systems in the Optimal Ethics Systems Model. Hiring Ethical People C3 Key Words; Title VII of the Civil Rights Act of 1964; protected classes; Equal Employment Opportunity Commission (EEOC); disparate impact;; affirmative action;; integrity tests; conscientiousness; Organizational Citizenship Behavior; Social Dominance Orientation; realistic job preview; polygraphs 1. What are the six steps of an ethics jobscreening process? What is the basic purpose and what are the major activities in each stage? Ethics Screen Notice Inform potential job applicants about the organization’s ethics job screen. The ﬁrst step is a notiﬁcation that attracts ethical job candidates and discourages people who tend to behave unethically from applying The second step is a cautionary one, ensuring that any method used by the employer to determine ethics does not violate federal law. Legal Ground Rules Gather and use information in a way that does not discriminate against job candidates based on their race, color, religion, gender, national origin, age, or disability. Behavioral Information Review behavioral information from resumes, reference checks, background checks, and integrity tests. Behavioral information about a job candidate’s ethics is more reliable than attitudinal survey results or responses to hypothetical dilemmas. Personality Traits and Related Characteristics Obtain scores for personality traits and related characteristics such as conscientiousness, Organizational Citizenship Behavior, Social Dominance Orientation, and bullying. Personality tests, on the other hand, offer a much broader psychological understanding of the job candidate and can identify characteristics associated with ethical or unethical behaviors. Interview Questions Interview job ﬁnalists about their responses to ethical dilemmas experienced at previous workplaces and how they would respond to ethical dilemmas experienced by current employees. In addition, clarify inconsistencies and ambiguities that arose during the previous two steps. PostInterview Tests Where appropriate, conduct drug and polygraph tests. 2. Describe the importance of Title VII of the Civil Rights Act and how to determine if an organization’s jobscreening process results in disparate impacts. What are the four postures on affirmative action discussed in class and in the slides? 3 Title VII of the Civil Rights Act of 1964 prohibits businesses from discriminating among job applicants based on the person’s race, color, religion, gender, or national origin. Disparate Impacts occur when members of a protected class rarely make it through all the job screening filters, suggesting that one of the decision rules could be unintentionally discriminatory The four postures on affirmative action: Passive nondiscrimination Pure affirmative action Affirmative action with preferential hiring Hard quotas 3. What are four sources of behavioral information about a job candidate’s ethics? What are the strengths and weaknesses of each information source? Reference checks: (strength) Job candidates usually list references predisposed to sharing favorable information. (weakness) The reference check legal pendulum has swung from favoring a former employer’s right to share information to a former employee’s privacy rights. Resumes: (strength) typically, resumes contain valuable information about previous work experience and educational attainment, as well as committee responsibilities and community service activities. (weakness) People typically lie on their resume Background checks: (strength) Verifies a candidates academic accomplishments, prior work responsibilities, and other work related issues. (Weakness) other checks could include criminal records, credit checks, and Facebook use. Integrity test: (strength) typically gather information about the job candidate’s behaviors and attitudes toward unethical workplace activities, such as theft. (Weakness) The OTA report concluded that research neither proved nor disproved whether integrity tests measured an individual’s propensity to steal. 4. What four personality factors and related characteristics does Collins suggest are the most relevant for understanding a job candidate’s ethics? Have a basic familiarity with each of these. Personality factors: “Conscientiousness”—which measures responsibility, dependability, and work ethic— is the best predictor of ethics and job performance. Organizational Citizenship Behavior: work related helping behaviors that go beyond normal job requirements, such as aiding others with jobrelated problems Social Dominance Orientation (SDO) is the belief that an individual’s particular group membership (deﬁned in terms of race, gender, religion, or ethnicity) is superior to membership in other groups. 4 Bullying measures predict a propensity for racial and gender discrimination and can result in hostile work environments. . 5. What types of questions would you ask job candidates during an interview to understand their ethics? How would you know if the candidates are responding truthfully? Tell me about a time when you observed an employee or customer stealing product. How did you respond? Tell me about a time when you observed an employee sexually harassing another employee or customer. How did you respond? Tell me about a time when you observed anything at work, or did anything at work, that violated industry standards or the law. How did you respond? Body Tendencies and Verbal tendencies would determine if their lying. 6. What kinds of postinterview tests can be given? Under what conditions can a job candidate be given a polygraph test? Drug tests and polygraph tests. Polygraphs, also known as lie detectors, can be used as a job screen by federal, state, Codes of Ethics and Codes of Conduct C4 Key Words: Code of Ethics; Code of Conduct; bribe; facilitating payments; Caux Principle for Responsible Business; strategic planning; mission statement; vision statement; nosiness gratuity; ethical hypocrisy 1. What is the difference between a Code of Ethics and a Code of Conduct? A Code of Ethics brieﬂy describes broad ethical aspirations. A Code of Conduct more extensively describes acceptable behaviors for speciﬁc situations that are likely to arise 2. Why are Codes of Ethics and Conduct important? What purposes do they fulfill? These codes fulﬁll multiple purposes including the following: • Demonstrate managerial concern for ethics • Convey a particular set of values and obligations • Meet legal requirements and industry trends • Positively impact employee behaviors 3. What values are contained in most Codes of Ethics? Codes convey a set of values and obligations that clarify appropriate behaviors and provide employees with clear and consistent moral guidance. A clearly articulated Code of Ethics highlighting the importance of respecting all suppliers, 5 a Code of Conduct stating that an employee should not accept gifts from potential suppliers, Eliminates any doubt as to the appropriate response to this situation. 4. What is the Foreign Corrupt Practices Act and what does it require? making it illegal for U.S. businesses to directly pay bribes in other nations or through intermediaries, such as joint venture partners or agents.19 .In addition, under the FCPA, foreign corporations whose securities are listed in the United States must maintain accounting ledgers that reﬂect these transactions. 5. How should cultural and ethical differences across nations be handled? What is entailed in the perspectives of ethical/cultural imperialism, ethical/cultural relativism, and the two approaches to the “broad middle ground”? 6. What topics should be addressed in a Code of Conduct? Conflicts of Interest Corporate Opportunities Confidentiality Fair dealing Protection and proper use of assets Compliance with rules, laws, and regulations Encouraging the reporting of any illegal and unethical behavior 7. How would you implement an effective Code of Ethics and Code of Conduct communication strategy? Ethical Decision Making 1 (Model) C5 (135148) Key Words: Belief; Ethical sensitivity; ethical intuition; theory of planned behavior; moral intensity; ethical intention 1. What is the nature of the relationship between ethical beliefs, intents and actions? Ethical beliefs generate ethical intentions and result in ethical behaviors. 2. What are the different elements in the Ethical Behavior Model? Individual Characteristics Ethical beliefs and sensitivities Ethical intuitions Theory of planned behavior Issues Moral Intensity Organization Characteristics Ethical intentions Rational ethical decision making 6 Ethical behavior 3. Which individual characteristics impact ethical beliefs, sensitivities, intentions, and behaviors? more education more work experience religion reasoning at a higher level of moral development a higher score for deontology or idealism a lower score for relativism, teleology, economic orientation, or Machiavellianism. 4. How are ethical intuitions formed? How do the value sets of liberal and conservatives differ? Ethical intuition is a quick insight independent of any reasoning process about right and wrong. They found that liberals interpret the ethics of a situation based primarily on two value sets: harm/care and fairness/reciprocity. Liberals respond when someone frames an issue in terms of harms or fairness and favor outcomes that minimize harms or are determined to be the most fair. Conservatives, on the other hand, interpret the ethics of a situation based primarily on three different value sets: in group/loyalty, authority/respect, and purity/sanctity. Conservatives respond when someone frames an issue in terms of group loyalty, respect for authority, or moral purity/sanctity, and they favor outcomes that reinforce loyalty, authority, or moral purity/sanctity. 5. What are the factors that contribute to an issue’s moral intensity? What impact does moral intensity have on ethical behavior? Magnitude of consequences Social consensus Probability of effect Temporal immediacy Proximity Concentration 6. How does characteristics of the organization impact ethical behavior? Therefore, employees of organizations with a Code of Ethics, an ethical climate, and whose managers reward ethical behavior and punish unethical behaviors are more likely to make better ethical decisions. 7. Which seven questions are the bases for a systematic rational ethical decisionmaking framework: Which three questions point the decision making in the direction of the most moral decision? 5,6,7 point the decision making in the direction of the most moral decision Who are all the people affected by the action? [Stakeholder Analysis] Is the action beneﬁcial to me? [Egoism] 7 Is the action supported by my social group? [Social Group Relativism] Is the action supported by national laws? [Cultural Relativism] Is the action for the greatest good of the greatest number of people affected by it? [Utilitarianism] Does the action treat every stakeholder with respect and dignity, and is the act something that everyone should do? [Deontology] Is this how a virtuous person would act? [Virtue Ethics] 8. What is a heuristic or rule of thumb? Why can ethical tests (heuristics) be useful in making ethical decisions? A simple test that can be used as a guide to decision making 9. What are the meanings of the different ethical tests mentioned in the slides? How good do you think each of these are as guides to making ethical decisions, and why? The Rotary International’s FourWay Test provides a simple framework for analyzing the ethical dimension of a decision. Raytheon’s Ethics Quick Test provides employees with questions to consider when faced with an ethical dilemma 10. What are some of Laura Nash’s 12 ethical questions mentioned in the text? Which ones of these do you think are particularly useful? Have you defined the problem accurately? How would you define it from the other side? How did this situation occur in the first place? To whom do you give their loyalties? What is your intention in this decision? How does this compare with likely results? Whom could your decision or action injure? Can you discuss it with affected parties first? Can you disclose the decision without qualms? What symbolism will the action have? Under what conditions would you allow exceptions to you stand? Ethical Decision Making 2: Egoism & Relativism C5 (149152), W Key Words: egoism; social group relativism; cultural relativism 1. How should cultural and ethical differences across nations be handled? What is entailed in the perspectives of ethical/cultural imperialism, ethical/cultural relativism, and the two approaches to the “broad middle ground”? Ethical/cultural imperialism: the view that standards should be universal 8 based on the idea that absolute truths exists, or that certain standards have proven to be better than others and therefore should be adopted everywhere Ethical/cultural relativism: ethical behavior should be defined by various periods in time in history, a society’s traditions, the special circumstances of the moment, or personal opinion Broad middle ground: some combination of home and host country ethical standards Internationally derived ethical principles 2. What are the problems with ethical relativism? Why has relativism grown in popularity? There would be no universal ethical standards on which people around the globe could agree. Many managers do not want to break the law, even when doing so might personally beneﬁt them or their company. When problems arise, they review the law or ask company lawyers to provide a legal opinion. They want to do what is right in the eyes of the legal establishment. A cultural relativist is likely to implement a compliancebased ethics program to ensure that the organization does not violate the law, rather than an integritybased ethics program that aims at a standard superior to legal compliance. 3. What are the central criteria of egoism, social group relativism and cultural relativism? Egoism: How does the action relate to me? If the action furthers my interests, then it is right. If it conﬂicts with my interests, then it is wrong. Social group relativism: How does the action relate to my social group (peers, friends, etc.)? If the action conforms to the social group’s norms, then it is right. If it is contrary to the social group’s norms, then it is wrong. Cultural Relativism: How does the action relate to the national culture, particularly its laws? If the action conforms to the law, then it is right. If it is contrary to the law, then it is wrong. Ethical Decision Making 3: Utilitarianism C5 (153), W Key Words: utilitarianism 1. What is "consequentialism?" What are the two basic consequentialist theories, and how do they differ? Consequentialism focuses on ends of consequences the results of decisions and actions. Egoism: focuses on self Utilitarianism: takes the action that creates the greatest net benefit for society as a whole 9 2. What are the basic elements of utilitarianism? How does one go about applying utilitarianism to an ethical decision? Basic elements: Identify the optional courses of action Identify all the parties affected by the possible actions Identify and quantify the impacts (consequences) of each action on each stakeholder Total all the positive and negative impacts for each optional course of action Choose the option with the highest net benefit or lowest net harm 3. What are the strengths and weaknesses of utilitarianism? Strengths: Gets us to think about all parties affected and all the impacts Weaknesses: Overlooking some affected parties or impacts Difficulties in calculating benefits and harms Justifying horrible actions on the basis of positive consequences Ignoring the distribution of benefits and harms The greatest good for the greatest number ( the focus is on the greatest amount of good created by an option, NOT the greatest number of people benefitted by an option) 4. What is the notion of costbenefit analysis, and how is it related to utilitarianism? Cost beneﬁt analysis is based on utilitarian logic—determine a project’s total beneﬁts and total costs, and if the beneﬁts outweigh the costs the project receives a 5. On the whole, do you think utilitarianism is a good principle for ethical decisionmaking? Why or why not? 10 Ethical Decision Making 4: Deontology C5 (154), W Key Words: deontology; categorical imperative 1. What is "deontology?" What are the three main deontological approaches? Focuses on duties and obligations Religious Rights Justice 2. How significant a role do religiouslybased values play in ethical decision making in society today? What do you believe the appropriate role to be, and why? Many people base their ethics on religious beliefs 3. What is the difference between the terms "right" and "a right?" "A right "is an entitlement "Right": correct (either factually or morally) 4. What is the difference between moral rights and legal rights? Which of these do you believe is more important? Why? Moral rights: Ten Commandments Legal rights: something someone is entitled to (citizen of a state or nation, as a member of a certain group) 5. What is the difference between negative rights and positive rights? How do these relate to concepts in Carroll's four social responsibility categories? Which kind of right is more important? Why? Negative Rights: to refrain from hurting others No moral obligations exists to come to the aid of an individual 11 Is consistent with egoism and laissezfaire government; emphasizes freedom Positive rights: to do good Moral obligations exists to come to the aid of an individual Is consistent with altruism and activist government; emphasizes entitlement These concepts relate to Carrols philanthropic category 6. What are the basic elements of rights theory? How does one go about applying rights theory to an ethical decision? The basic elements of rights theory: Identify the rights held by all parties in the situation Identify how different possible actions uphold or violate different rights Identify which rights are most important Choose that course of action which violates the fewest rights, while upholding those rights that are most important 7. What are the strengths and weaknesses of rights theory? Strengths: requires us to think about each individual Treat everyone the same way Weaknesses: occasions where the consequences are huge, you may have to violate a right We aren’t all given a hierarchy of human rights 8. On the whole, do you think rights theory is a good principle for ethical decision making? Why or why not? 12 9. What is the central focus of justice? Fairness 10. What are the four different perspectives on what constitutes fairness? Which of these do you think is the dominant perspective in U.S. society? Are different perspectives dominant in different settings or situations in business and government? Constitutes of fairness: Egalitarianism: equality Socialism: need Capitalism: effort, merit, contribution Libertarianism: free choice 11. How do you feel about each of these perspectives on fairness? Which do you prefer, and why? 12. What are the different types of justice? How do these pertain to different aspects of the U.S. government and its responsibilities? How do these pertain to different aspects of organizational management? Distributive, allocating benefits& burdens: government programs and taxation, work assignments and compensation, corporate social benefits and harms Compensatory, compensation for past harm: civil damage awards, affirmative action Retributive, punishment for wrongdoing: criminal penalties, demotions and dismissals Procedural, governance process and procedures: rules of evidence and representation, legislative, regulatory rule making, campaign finance, grievance, hiring, firing, performance review, etc. procedures 13. What are the strengths and weaknesses of relying on justice as a principle for making ethical decisions? 13 Strengths: questions both sides of consequences and treats everyone fairly Weaknesses: leads people to argue from different perspectives/ lack of agreement on fair shares 14. What is the process for making an ethical decision using the principle of justice? Gather the facts Define the ethical issues Identify the affected parties Identify the options Identify the consequences Identify the obligations ( rights and justice) Consider your character and integrity Think creatively about other potential actions Check your gut Ethical Decision Making 5: Virtue and Conclusion C5 (155165), W Key Words: Virtue ethics 1. What are the basic elements of virtue ethics? How is this perspective different from other ethical principles? A character trait manifested in habitual action An acquired trait that is practices (acted upon) A state of character, not just a feeling or skill Virtues have been identified by the community What kind of person should you be? Moral character more important than right action Virtue permits successful, rewarding, good lives Assumption: virtuous character leads to right action 2. What are some examples of the virtues? What are its strengths and weaknesses? How useful do you feel this is as a guide to ethical decision making in personal life? In business? Why? Examples: Loyalty, Compassion, Courtesy, Integrity, Trustworthiness, Moderation 14 Strengths: May better describe how we actually think about decisions than traditional ethics theories Pays better attention to the importance of morality of personal relationships Some universal virtues appear to exist Weaknesses: no clear guidelines for resolving conflicts between virtues Downplays the reality of conflicting interests; not all situations seem amenable to cooperation Not everyone agrees on all virtues 3. What is the basic idea behind the composite approaches to ethical decision making presented by Collins in Exhibit 5.11 and by Trevino & Nelson in the slides? Reaching a moral conclusion 4. If you had to rely on only one ethical theory, which do you believe is the most appropriate approach to use in making ethical decisions? Why do you feel this way? 15
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