MAN3025 Week 2 Notes
MAN3025 Week 2 Notes MAN3025
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This 10 page Class Notes was uploaded by Andi Notetaker on Monday January 25, 2016. The Class Notes belongs to MAN3025 at University of Florida taught by Lindy Archambeau in Summer 2015. Since its upload, it has received 67 views. For similar materials see Principles of Management in Business at University of Florida.
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Date Created: 01/25/16
12016 Class Notes Role of Stakeholders Who are companies responsible towards Managers operate in two organizational environments 0 Internal Board of Directors Owners Employees 0 External Everyone who is affected by the organization Stakeholder Analysis 0 Who are the stakeholders Who is impacted by the decisions managers make Realize what a manager s power and in uence is Who will they interact with 0 Understand who the most important stakeholders are and plan accordingly 0 Stakeholder Map how to communicate with each stakeholder The Community of Stakeholders Inside an Organization 0 Owners Those who claim the organization as their legal property 0 Board of Directors Eected by stockholders to make sure the company is being run according to the interest of the owners People are typically nominated those who are already a big part of the company and know the direction the company wants to go President reports to the BOD making sure they are doing the right thing 0 Employees Everyone who works for an organization Reationship with employees is very important when making sure your talent will keep working for the company Task Environment 0 Tasks Things that have an impact on a manager s daily activity 0 Customers Pay the fee to usebuy an organization s goods or services EX Costco annual fee paid to enter Competitors Companies that compete mportant to differentiate what you offer from the competition EX Costco Retail stores big box stores grocery stores Suppliers The G Peopecompany who provide the raw materials service labor for the nal products EX Costco Sony Apple Goodyear Tires Distributors Organization that helps other organizations sell its goods and services to customers EX Costco doesn t deal with distributors at the moment Strategic Allies Reationship between organizations who work together to achieve advantages for both parties neither could preform as well alone EX Costco Selling cars by teaming up with car companies to get great deals for their members Employee Organizations Unions and Associations Local Communities Where your customers and employees come from Panningzoning rights for building a new structure Company s try to give back to form a strong communal relationship sponsorships Financial Institutions Government Regulators Provide group rules in which the organizations needs to operate OSHA Occupationa Safety and Hazard Act work place is free of hazards Special Interest Groups Group where members try to in uence speci c issues environmental groups issue groups etc Managers must pay special attention to them because they can make quota lot of noisequot about what your company is doing right and wrong PETA MADD NRA Mass Media TV print Internet social media eneral Environment Economic Forces Unemployment in ation economy growth rate interest rate etc a may affect an organization s performance Technological Forces Keep up with the new developments for transforming resources to make new goods and services EX Music industry Sociocultural Forces In uences or trends that come from a country or society s human relationships and values EX Problem with obesity in America 0 Demographic Forces Characteristics of a particular population mpact what the labor force looks like and what the buying pattern is going to look like EX Age gender ethnic origin PoliticalLegal Forces Trends that shape laws and how aws shape opportunities what organizations can and can not do 0 International Forces Managerial Ethics 0 Ethics Code of moral principles and values that govern the behavior or right and wrong Not black and white changes based on many factors People and organizations have different views or what is right and wrong which is why ethical issues are so complex 0 Values are permanent and deeply held beliefs and attitudes that help determine a person s behavior 0 Examples of Unethical Behaviors Discrimination Lying Deceptive Practices Four Approaches to Deciding Ethical Dilemmas Utilitarian Determine outcome based on what will result in the greatest good for the greatest number of people 0 Individual If everyone behaved in a way that betters their longterm interest then the world would be better off EX Everyone reducing their carbon footprint 0 MoralRights Guided by respect for the fundamental rights of human beings Justice Guided by respect for impartial standards of fairness and equity Don t care about the consequences Values and Ethics 0 Two value systems that con ict with each other One stressing nancial performance One stressing cohesion in employee relationships How Do People Learn Ethics PreConventional Folow rules to avoid punishment EX Children ConvenUonal Moving beyond your selfinterest towards what society wants you to do Live up to the expectations of other people upholding laws EX Pretend to enjoy sharing toys as a kid to have other kids want to play with you PostConventional Do something because you know it s right Folow principles of your own value system Balance own positions while understanding other people s positions These stages determine an individuals leadership style PreConventional Manager gives employees a task and expect it done Conventional Build foundation on collaboration and teamwork PostConventional Focus on transforming help others do better delegation of decision making How Organizations Can Promote Ethics Create a strong ethical climate Companies can implement their own moral development value system to guide their employees behavior Present a mission statement and vision statement Top managers must lead by example in addition to the written guidelines given to employees Screening perspective employees Choose employees that match the environment Make sure employees have the same value and belief system or one that does not con ict as the organization Utilizing ethics codes and training programs Reward good behavior and protect the whistleblowers Whistebowers the ones that point out unethical behavior Ethics and Social Re5ponsibilitv Social Responsibility Manager s duty to take actions that will bene t the interests of society as well as the organization Social media and corporate social responsibility Creating a world of radical transparencyquot 0 Anyone can get access to lots of information Companies need to be more socially responsible to deal with this We live in the quotAge of Damagequot o If you as a business or leader doesn t behave in the right way social media has made it possible for people to exploit businesses for their issues and create a mass movement 0 quotIf you want to do well you have to do goodquot Perfection is not the ultimate goal but trying transparency is most important Stakeholders are pushing more accountability for ethical issues Connection between ethics and nancial performance is frequently debated Carroll s Global Corporate Social Responsibility Pyramid Bottom to Top What Economic Responsibility Do what is required in order to succeed Be pro table Legal Responsibility Obey the laws Stakehoders require this to stay out of trouble Ethical Responsibility Do what is expected by global stakeholders not just what is required Philanthropic Responsibility Do what is necessary to be a good global company Do what is desired to better society is Corporate Governance Corporate Governance System by which corporations are directed and controlled lf organizations didn t behave badly we wouldn t need corporate governance Oversight to make sure corporations are acting in a way that follows the laws ethics and social responsibility ideas Provides a framework to deal with the disconnect between the owners of the organizations and its managers and employees Good corporate governance Framework to protect stakeholders Framework ensures equitable treatment for all shareholders Stakehoders should be involved in corporate governance Board of directors should also be monitored and held accountable for what guidance gives us Agency Theory Desires or goals of the principal and agent con ict and it is difficult or expensive for the principal to verify Overdiversi cation is the typical agency theory ncreased product diversi cation leads to lower employment risk for managers and greater compensation Solutions to mitigate the agency problem Engage in incentivebased performance contracts Monitoring mechanisms Board of Directors Enforcement mechanisms managerial labor market White Collar Crime SarbOx and Ethical Training SarbanesOxley 2002 Response to the unethical and illegal behavior among organizational CEO s Developed more provisions that held these people more accountable for their actions De ned corporate governance and how it is supposed to work Companies like Enron Tyco WorldCom cost shareholders billions and shake con dence in nation s securities market CHAPTER 3 SMARTBOOK NOTES Triple Bottom Line Representing people planet and pro t the 3 P s measures an organization s social environmental and nancial performance Social Audit Measures the success of the quot3 P squot through a systematic assessment of a company s performance in implementing socially responsible programs often based on prede ned goals Internal and External Stakeholders Stakeholders People who s interests are affected by an organization s activities Internal Stakeholders Employees owners and the Board of Directors if any Emp0yees Considered quotthe talentquot and most important resource of an organization 0wners All those who can claim the organization as their legal property Board ofDirectors Group of individuals who are elected by the stockholders to see that the company is being run according to their interests 0 Responsible for hiring for the company 0 Also called board of trustees or board ofregents for nonpro t organizations 0 Very important in setting the organization s overall strategic goals and approving them major decisions and salaries of top management 0 Not all rms have 0 Made up of inside directors and outside directors External Stakeholders People or groups in the organization s external environment that are affected by it The Task Environment Customers Those who pay to use an organization s goods or services Competitors People or organizations that compete for customers and resources Every organization has to be actively aware of its competitors EX Talented employees or raw materials Suppliers Person or organization that provides supplies raw materials services equipment labor or energy to other organizations Distributors Person or organization that helps another organization sell its goods or services to customers Strategic Allies Relationship of two organizations who join forces to achieve advantages neither can preform as well alone Employee Organizations Unions and Associations Unions tend to represent hourly workers Professional Associations tend to represent salaried workers Local Communities Companies follow the trends of their customers Cawbacks Rescinding the tax breaks when rms don t deliver provides jobs Financial Institutions Banks savings and loans and credit unions Cr0wdfunding crowdsourcing New kind of nancing where money is raised for a project or venture by obtaining many small amounts of money from many people quotthe crowdquot Government Regulators Regulatory agencies that establish ground rules under which organizations operate SpecialInterest Groups Groups that try to in uence speci c issues some of which may affect your organization EX PETA Mother s Against Drunk Driving Mass Media The G Print radio TV Internet Can t ignore the power of mass media to rapidly and widely disseminate news both bad and good eneral Environment Macroenvironment Economic Forces General economic conditions unemployment in ation interest rates economic growth that may affect an organization s performance Organization really has no control over these forces EX Great Recession Technological Forces New developments in methods for transforming resources into goods and services Sociocultural Forces ln uences 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 ln uences on an organization arising from changes in the characteristics of a population such as age gender or ethnic origin PoliticalLegal Forces Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization Some countries have more fully developed legal systems than others International Forces Changes in the economic political legal and technological global system that may affect an organization Ethical Dilemma Situation in which you have to decide whether to pursue a course of action that may bene t you or your organization but that is unethical or even illegal Ethics The standards of right and wrong that in uence behavior May vary among countries and among cultures Ethica Behavior Behavior that is accepted as quotrightquot 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 Ethica dilemmas often take place because of an organization s value system pattern of values within an organization Four Approaches to Deciding Ethical Dilemmas The Utilitarian Approach Guided by what will result in the greatest good for the greatest number of people Managers often take this approach using nancial performance ef ciency and pro t as the best de nition of what constitutes quotgreatest good for greatest numberquot Drawback May result in damage to workforce morale and the loss of employees with experience and skills Individual Approach Guided by what will result in the individual s best longterm interests which ultimately are in everyone s selfinterest Act ethically in the short run to avoid others harming you in the long run Drawback One person s shortterm selfgain may not be good for everyone in the long term MoralRights Approach Guided by respect for the fundamental rights of human beings Drawback When rights are in con ict EX Employer and employee rights Justice Approach Guided by respect for impartial standards of fairness and equity WhiteCollar Crime SarbOx and Ethical Training Insider Trading ega trading of a company s stock by people using con dential company information Ponzi Scheme Using cash from newer investors to pay off older ones SarbanesOxley Act of 2002 Established requirements for proper nancial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance Kohlberg s Theory of How People Learn Ethics PreConventional Foow rules and obey authority to avoid unpleasant consequences Managers at this level tend to expect employees to be obedient for obedience s sake Conven onal Folow the expectations of others in their lives Managers at this level lead by encouragement and cooperation and are more group and team oriented most common level for managers PostConventional Farthest along in moral development Guided by internal values Managers at this level are independent souls who follow their own values and standards focusing on the needs of their employees and trying to lead by empowering those working for them 15 of American managers reach this level How Organizations Can Promote Ethics Creating a Strong Ethical Climate Empoyee s perceptions about the extent to which work environments support ethical behavior Managers can promote ethical climates through the policies procedures and practices that are used on a daily basis Screening Prospective Employees Make sure the companies39 values match or at least don t con ict the values of the potential employer Institute Ethics Codes and Training Programs C0de ofEthics Consists of a formal written set of ethical standards guiding an organization s actions Rewarding Ethical Behavior Protecting WhistleBlowers Whistebower Employee or even outside consultant who reports organizational misconduct to the public mportant to reward good ethical behavior and encourage or at least not discourage whistleblowers Social Responsibility Manager s duty to take actions that will bene t the interests of society as well as of the organization Corporate Social Responsibility CSR social responsibility beyond the individual to the organization Notion that corporations are expected to go above and beyond following the law and making a pro t Climate Change Major changes in temperature precipitation wind patterns and similar matters occurring over several decades Global Warming The rise in global average temperature near the Earth s surface caused mostly by increasing concentrations in the atmosphere of greenhouse gases such as carbon emissions from fossil fuels Natural Capital Value of natural resources such as topsoil air water and genetic diversity which humans depend on Corporate Governance System of governing a company so that the interests of corporate owners and other stakeholders are protected
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