MGMT 3000: Exam 2
105 Cards in this Set
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ethics
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set of moral principles or values that defines right and wrong or a person or group
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Managers can be tempted to be unethical in 4 areas:
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authority and power
handling information
influencing the behavior of others
setting goals
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Six Components of ethical intensity
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-Magnitude of consequences(harm or benefitrelated to person)
-Probability of effect(likelihood thisdecision will harm or benefit someone)
-Social consensus(amount of public agreementthis decision will be good/bad)
-Temporal Immediacy(time between making anddecision and when it’ll be kn…
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Ethical Intensity
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How concerned people are about an ethical issue
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Kohlber's Moral Stages of Development
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Pre-Conventional
Conventional
Post-Conventional
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Pre-conventional level of moral development
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the first level of moral development in which people make decisions based on selfish reasons
Stage 1: Punishment and obedience
Stage 2: Instrumental exchange
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Conventional level of Moral Development
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Second level of moral development; people make decisions that conform to societal expectations
Stage 3: Good boy, nice girl (do what other "good" kids are doing)
Stage 4: Law and order (do what the law permits)
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Post Conventional Level of Moral Development
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The third level of moral development, in which people make decisions based on internalized principles
Stage 5: Social Contract
Stage 6: Universal principle
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overt integrity tests
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estimate job applicants honesty by directly asking them what they think
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Personality based integrity tests
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Indirectly estimate job applicants honesty by measuring psychological traits such as dependability and conscientiousness
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The kew gardens principles
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need-when the need is greater, you have a greater responsibility to act
proximity- how close are you to the problem? It is not just physical. It can also apply to other areas, such as relationships.
capability- you can be expected to intervene only insofar as you are able to
last resor…
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social responsibility
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a business' obligation to pursue policies, make decisions, and take actions that benefit society
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Shareholder model
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Only social responsibility is to maximize profit
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stakeholder responsibility
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focuses on the obligations an organization has to those who can affect achievement of its objectives (customer, employees, supplies, and distributers)
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Primary Stakeholders
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Shareholders
Employees
Customers
Suppliers
Governments
Local Communities
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Secondary Stakeholders
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Media
Special Interest groups
Trade Associations
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Organizations are responsible FOR....
(pyramid)
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Economic- be profitable
Legal- obey laws and regulations
Ethical-abide by principles of right and wrong
Discretionary- must serve a social role
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Social Responsiveness
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A company's strategy to respond to stakeholders' economic, legal, ethical, or discretionary expectations concerning social responsibility.
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Four strategies for responding to social responsibility problems
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Reactive strategy
Defensive strategy
Accommodative strategy
Proactive strategy
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Social Responsiveness Reactive Strategy
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Will do less than what society expects. It may deny responsibility for a problem or fight any suggestions that it should solve a problem.
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Social Responsiveness Defensive Strategy
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Will admit responsibility for a problem but would do the least required to meet societal expectaions
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accommodative strategy
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acceptance of responsibility to society and taking effective steps to solve problems caused by activities
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Proactive strategy
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will anticipate responsibility for a problem before it occurs and do more then the expected to address the problem
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multinational corporations
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corporations owning businesses in 2 or more countries
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direct investment (foreign direct investment)
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when fims either aquire foreign firms or develop new facilities from the ground up in foreign countries
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trade barriers
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government-imposed regulations increasing costs and restricting number of imported goods
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Protectionism
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practice of the government putting limits on foreign trade to protect businesses at home
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tariffs
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taxes imposed on foreign goods imported into a country to increase the price compared to domestic goods
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non-tariff barriers
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nontax methods methods of increasing the cost or reducing volume of imported goods
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Quotas
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A limit on the amount of a good that can be imported during some period.
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voluntary export restraints
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illegally having an exporting country impose restraints
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Government Standards
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protect the health of the citizens but often used to restrict or ban imported goods
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government subsidies
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develop and protect companies in special industries
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customs valuation/classification
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items examined by customs agents determining which of 9000 categories they should classify a product
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GATT
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General Agreement on Tariffs and Trade was implemented to further regulate world trade to aide in the economic recovery following the war. GATT's main objective was to reduce the barriers of international trade through the reduction of tariffs, quotas and subsidies.
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WTO
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replaced GATT
HQ in Geneva
administers trade agreements, provides forum for negotiations, handles disputes, monitors trade policies, offers technical assistance and training
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Regional Trading Zones
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areas where tariff and nontariff barriers on trade between countries are reduced/eliminated for countries within the zone
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Maastricht Treaty
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established the European Monetary Union (Euro)
12 different economies/currencies into 1 economy with a common currency
27 member countries
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NAFTA
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North Atlantic Free Trade Agreement
Canada, Mexico, US
No tariffs
Allows companies to plan for 1 market
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CAFTA
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US, DR, and central America
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UNASUR
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South America trade agreement
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ASEAN
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asian trade agreement
market of 591 million people
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APEC
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Asian trade agreement (massive)
market of 2.75 billion people and representing 44% of global trade
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Global Consistency
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multinational companies in different countires use the same rules,guidelines, policies, and procedures to run all of those offices. It simplifies decisions.
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local adaptation
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modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, govenrments, and regulatory agencies
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Cooperative contracts
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a foreign business owner pays the company a fee for the right to conduct that business in his or her country. (Licensing. and franchising)
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Licensing
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Arrangement in which the owner of intellectual property grants a firm the right to use that property for a specified period of time in exchange for royalties or other compensation.
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franchising
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arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties or other compensation.
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strategic alliances
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companies combine key resources, costs, risk, technology, and people
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Joint venture
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Is a type of strategic alliance that involves the establishment of an independent corporate entity that is jointly owned and controlled by the two partners.
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wholly owned affiliates
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are 100% owned by the parent company
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global new venture
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new companies that are founded with an active global strategy and have sales, employees, and financing in different countries
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purchasing power
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the real goods and services that money can buy; determines the value of money
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political uncertainty
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the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events
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Policy Uncertainty
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the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business (most common and frustrating)
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Minimizing Political Risk (strategies)
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-Avoidance
-Control
-Cooperation
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Power distance
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assesses peoples tolerance for centralized power
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individualism
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is the degree to which societies believe that individuals should be self-sufficient. In individualistic societies, employees put loyalties to themselves first, and loyalties to their company and work group second.
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Uncertainty Avoidance
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The degree to which people prefer structured to unstructured situations
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adaptability screening
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assesses how well managers and their families are likely to adjust to foreign cultures
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organizational structure
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vertical and horizontal configuration of departments, authority, and jobs within a company
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functional departmentalization
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organizing work and workers into separate units responsible for particular business functions or areas of expertise
pro: work done by highly qualified specialists
con: cross-department coordination can be difficult (good ex. marketing/manufacturing)
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product departmentalization
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responsible for particular products/services
pro: allows people to specialize in 1 area
con: duplication and coordination across different departments
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Customer departmentalization
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responsible for particular kinds of customers
pro: focuses organization on customer needs and allows companies to specialize products/services to customer needs
con: duplication of resources and workers might please customers but hurt business
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geographic departmentalization
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particular geographic areas
pro: helps companies respond to different markets
con: duplication of resources and workers might please customers but hurt business
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Matrix departmentalization
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a hybrid organizational structure in which two forms of departmentalization are used together
pro: allows companies to efficiently manage large tasks and gives more diverse expertise and experience
con: requires a high level of duplication and more management skill
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unity of command
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the management principle that each person should report to only one manager
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Line authority
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managers on one level are in charge of those beneath them
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staff authority
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authority to advise people
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line function
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activity that contributes directly to creating/selling company's products
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Staff Function
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does not contribute directly to creating or selling the company�s products but instead supports line activities
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Delegation of authority
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the assignment and responsibility to a subordinate to complete tasks for which the manager is normally responsible
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Centralization of authority
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primary authority is held by upper management
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decentralization
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pushing decision making down the line and getting the lower-level personnel involved.
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standardization
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solving problems by consistently applying the same rules, procedures, and processes
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Job specialization
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narrow range of tasks, high degree of repetition, and supposedly greater efficiency
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Understand the three methods used to improve specialized jobs.
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- Job rotation = periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills
- Job enlargement = increasing the number of different tasks that a worker performs within one particular job
- Job enrichment = increas…
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Skill Variety
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variety of activities required in carrying out the work
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task identity
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extent in which you can identify with product/ project from beginning to end
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task significance
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the extent to which the job has an impact on the lives of other
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autonomy
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the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job
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Feedback
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provides information to the employee about their performance
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Vertical Loading
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Job enlargement. Job enrichment that employees are given more responsibility
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modular organizations
(with pros and cons)
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outsources noncore business activities to outside companies, suppliers, and consultants
pro: reduce costs
cons: loss of control, reduce competitive advantage, suppliers can become competitors
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virtual organizations
(with pros and cons)
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an organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services
pros: let companies share costs, fast and flexible, provide better products and s…
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Advantages of teams
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improve customer satisfaction
product/service quality
product development speed and efficiency
employee job satisfaction
decision making
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disadvantages of teams
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lead to initially high turnover
social loafing
groupthink
minority domination
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cross-functional teams
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employees from various functional departments who are responsible to meet as a team and resolve mutual problems
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Virtual teams
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members work together and solve problems through computer-based interactions
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project team
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a team created to complete specific, one-time projects ot tasks within a limited time
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team conflict
(two types)
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-cognitive: members disagree because of different experiences and expertise
-affective: results in hostility, anger, resentment, distrust, cynicism, apathy
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stages of team development
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Forming
Storming
Norming
Performing
De-norming
De-storming
De-forming
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Stretch goals
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designed to shift people away from mediocrity and toward greater achievement
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structural accommodation
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the ability to change org. structures, policies, and practices in order to meet stretch goals
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Bureaucratic immunity
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the ability to make changes without first getting approval from managers or other parts of the org.
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individualists
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give priority to own goals over group goals; personal attributes
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Collectivists
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those that value group goals & interdependence rather than individual goals and freedoms
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Team Compensation
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level of reward must match level of performance
skill-based pay
gainsharing
nonfinancial
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gainsharing
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companies share the financial value of performance gains with their workers
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human resource management
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process of finding, developing, and keeping the right people to form a qualified workforce
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labor laws
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regulate interaction between management and labor unions that represent groups of employees
guarantee employees the right to form and join unions of their own choosing
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Disparate treatment
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Intentional discrimination
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Adverse impact
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Unintentional discrimination
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Four-fifths rule
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Decision rate for a particular group is less than four fifths of the decision rate for a no protected group
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Specific ability tests (aptitude tests)
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Tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well
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MGMT 3000: EXAM 1