Management 201 Chapter 3 Notes
Management 201 Chapter 3 Notes Management 201
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This 3 page Class Notes was uploaded by Eliza Barrett on Monday January 18, 2016. The Class Notes belongs to Management 201 at Clemson University taught by Katherine Clark in Fall 2015. Since its upload, it has received 57 views. For similar materials see Management 2010 in Business, management at Clemson University.
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Date Created: 01/18/16
Management Chapter 3 The Mangers Changing Work Environment and Ethical Responsibilities - Why do people excuse lying and cheating? • The “holier-than-thou” effect - People tend to be overly optimistic about their own abilities and fortunes • Motivated blindness: tendency to overlook information that works against our best interest • Dynamics behind cheating • cheating provides useful shortcuts • cheating arises out of resentment • cheating seeks to redress perceived unfairness • cheating is to avoid feeling like a chump - Triple bottom line • bottom line: the organization’s profit (or loss) • Triple bottom line: representing People, Planet, and Profit, measures an organization’s social, environmental, and financial performance. • Social audit: systematic assessment of a company’s performance in implementing socially responsible programs, often based on predefined goals - Internal and External Stakeholders • Stakeholders: the people whose interests are affected by an organization’s activities (figure 3.1 in textbook) •Internal stakeholders: employees, owners, and the board of directors -Owners: those who can claim legal property as their own in the company - BOD: members elected by the stockholders to see that the company is being run according to their interests -External Stakeholders: people or groups in the organization’s external environment that are affected by it- the task and general environment •task environment: consists of 11 groups that present you with daily task to handle (customers, competitors, suppliers, distributors, strategic allies, employee organizations, financial institutions, government regulators, special interest groups, and mass media). - distributor: a person or organization that helps another organization sell its goods and services to customers - strategic allies: describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone - local communities important to stakeholders, because when a big industry leaves, it sends the government officials scrambling to find another industry to replace it • clawbacks: rescinding the tax breaks when firms don't deliver promised jobs - financial institutions: banks, savings and loans, credit unions • crowdfunding: raising money for a project or venture by obtaining many small amounts of money from many people - government regulators: regulatory agencies that establish ground rules under which organizations may operate - special interest groups: members try to influence specific issues - General environment: (or macroenviorment) includes six forces: economic, technological, sociocultural, demographic, political-legal, and international • Economic forces: consist of the general economic conditions and trends- unemployment, inflation, interest rates, economic growth- that may affect an organizations performance • Technological forces: new developments in methods for transforming resources into goods or services • Sociocultural forces: influences and trends originating in a country’s, a society’s or a culture’s human relationships and values that may affect an organization • Demographic forces: influences on an organization arising from changes in the characteristics of a population, such as age, race, gender. • Political-legal forces: changes in the way politics shape laws and laws shape the opportunities for and threats to an organization • international: changes in the economic, political, legal, and technological global system that may affect an organization - Ethical dilemma: a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal • economic performance and social performance are what most ethical conflicts are about - Ethics: standards of right and wrong that influence behavior. They may vary among country and among cultures • Ethical behavior: behavior that is accepted as “right” as opposed to “wrong” according to those standards - Values: relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s behavior - Four approaches to Deciding Ethical Dilemmas • UtilitarianApproach: For the Greatest Good - Guided by what will result in the greatest good for the greatest number of people. • Managers often take this approach. • IndividualApproach: For you greatest self-interest long term, which will help others - guided by what will result in the individual’s best long-term interests, which ultimately are in everyone’s self interest. act ethically in the short run to avoid others harming you in the long run - The Moral RightsApproach: Respecting fundamental rights shared by everyone • guided by respect for the fundamental rights of human beings - The JusticeApproach: Respecting impartial standards of fairness • guided by respect for impartial standards of fairness and equity - White Collar Crime • Insider trading: illegal trading of a company’s stock by people using confidential company information • Ponzi scheme: using cash from newer investors to pay off older ones - Sarbanes-Oxley ReformAct • Established requirements for proper financial record keeping for public companies and penalties as much as 25 year in prison for noncompliance - Psychologist Laurence Kohlberg: Three levels of personal moral development • Level 1, preconventional -follows rules Level 2, conventional-follows expectations of others • • Level 3, postconventional: guided by internal values - How can organizations promote ethics • Creating a strong ethical climate - employee’s perceptions about the extent to which work environments support ethical behavior - screening prospective employees - instituting ethics codes and training programs • formal written set of ethical standards guiding an organization’s actions - Rewarding ethical behavior, protecting whistle blowers • an employee, or even and outside consultant, who reports organization misconduct to the public, such as health and safety matters, waste, corruption, or overcharging of customers - Social responsibility: a manager’s duty to take actions that will benefit the interests of society as well as the organizations • corporate social responsibility: notion that the corporations are expected to go above and beyond following the law and making a profit
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