comm: exam 2
Purpose on the periphery
"doing good" is kept separate from core
Stakeholder theory
A firm should create value for all stakeholders, central in business ethics
Warren Buffet
CEO of Berkshire Hathaway (holding company); one of the most successful investors of all time; addressed confirmation bias - purposely has a partner who will go against him; annual reporting; willing to reverse course
Creating shared value
Create positive impact (Address societal needs/challenges), Profit focused, The more you do it and the better you do it, the more profit it generates, Expand the total pool of economic and social value
What makes teams effective?
Establish urgency, demanding performance standards, and direction; select members for their skill and skill potential, not for their personality; pay particular attention to first meetings and actions; emotional intelligence of teams; set clear rules of behavior; ground rules are important → areas such as attendance, discussion, confidentiality, project approach, and conflict ; set and seize upon a few immediate performance-oriented tasks and goals - important for ream confidence; challenge the group regularly with fresh facts and information; spend time together; exploit the power of positive feedback, recognition, and reward
Marlow case
Gomez fired because he was showing up late and wasn't getting better even with the bosses attempts; FAE plays a role because Gomez had an injured wife and a broken car; what was missing was psychological safety
Basic research
Innovation begins with discovery, Investing in labs, Encouraging researchers and engineers to go to conferences, Government funded research
Ethics case
Integrity, Fairness, Respect, Dignity, Privacy - relational view
Countering failure
Must break free from assumption that their worst enemy is paralysis, Do not change everything at once, Managers should respect companies heritage, Build on foundations but teach about the hallmarks
Traditional CSR
Reduce negative impact (Give back/harm less), Cost focused, The more you do and the better you do it, the more it costs. Redistribute the value created by firms, Periphery of business NOT related to the internal business
Mckinsey
Supported opioid issue, helping companies sell MORE
Dubious orders case study
Susan (intern) was asked by Moon (boss) to misrepresent herself and say she was an MBA student; dad, boyfriend, and previous employer all said different, could get in trouble now or later in career
Ethical dilemmas
Truth vs loyalty; Individual vs community; Short term vs long term; Justice vs mercy
Design thinking
Well-suited to sustaining innovation, Focus on users, Can be done in short periods or long periods, Meant to be iterative , EMPATHIZE
Equity theory
an employee will assess what he is getting from the job and what he is putting in and compare this ratio to what others are experiencing (in and outside the workplace)
Forming stage
begins with the introduction of team members; polite stage; enthusiastic
RIngling circus
closed in 2017; came back in 2023 - got rid of animals
Sunk costs
committed money that you are already losing
Hewlett packard
concerned with stakeholders, respected the people
Shareholder primacy
focus only on making your stock go up - much moe short-term
Team development process
forming → storming → norming → performing
Ways to address cognitive errors/biases
having people who will go against you; reporting on yourself; being willing to admit wrongness/change plans
The Intern video clip
he understands the boss' style
Environmental social governance
how to reduce negative impact on world, Non-financial metric, not required, demand from investors
Referent power
influence due to admiration
Whole foods
mission to sell healthier food - continued to follow this mission with long-term focus
Extrinsic motivation/rewards
money, promotions, etc
Distributive organizational justice
occurs when employees believe that outcomes are equitable
Innovation
often a new product, but it can also be a new way of doing something or even a new way of thinking
Empowerment (involvement or participative management)
recognition enhances motivation; employee empowerment involves delegated decision-making authority to employees at all levels
Real-time permission
recognizes when people engaged in conflict are becoming uncomfortable with the level of di
Groupthink
tendency to conform
Stakeholder mapping/analysis
the process of drawing a visual representation of the various people involved in or affected by the project
How to address inquiry through the equity theory?
Change their work habits (exert less effort); Change job benefits and incomes (ask for a raise); Distort their perception of themselves (I am smarter); Distort their perceptions of others (their position is less flexible than mine); Look at the situation from a different perspective (i still make more than __); Leave the situation (quit)
copiers/cell phones/printers
Companies produce massive copy machine to lease to companies - cost prohibitive for small businesses and individuals → companies made low-function copy machines for personal use, mobile phone camera → got much better over time and became a threat to real cameras later
Situational leadership Model
Employees need different levels of direction and support depending on their level of competence and commitment
costs/benefits of conflict
Encourages greater diversity of ideas; helps people understand opposing views; trust can develop
Volkswagen
Engineered diesel vehicles - rigged; higher level of emissions than allowed
Legal vs ethical
Ethical decision are NOT illegal vs legal
Disruptive innovation
Existing business focus on existing customer base, Results in the needs of some segments being exceeded or ignored, Disrupters appeal to low-end or unserved consumers and then migrate to the mainstream market
Informal power
Expert power (skills/expertise); referent power (relational - charismatic, get along with others); informational power (needed/wanted info - ex: access to salary) - temporary
Managing up case study
Grace has an idea for the company and her more experienced manager doesn't take the idea; side-steps landon and goes straight for his boss - sends multiple emails; big fight → needs to understand that she has no power, not viewing the situation from Landons POV, must understand preposition to authority, should engage in communication and be flexible
Formal power
Legitimate power (authority); Coercive power (power to punish); Reward power
Disruptive innovation
Listening to customers, investing in continuous improving and focusing on the bottom line can be bad, Companies are getting better and better at thighs people want less, Must innovate business model, Business model canvas and value proposition canvas
Internal reasons for failure
Managerial stubbornness, Incompetence, Active inertia
Sustaining innovation
Most innovation happens here , Seeking to get better at what we are already doing, Clear idea of the problem and the skill domains, Conventional strategies used
Paperclip exercise - goal setting theory
People usually do not go above and beyond their task (ex: those to name 4 uses of paperclips only named 4); Typically those with a difficult specific goal, perform better than an easy specific goal; Nonspeciifc goal will outperform an easy specific goal
Confirmation bias
Seeking out or paying attention to information that confirms or aligns with our decisions, beliefs, values, and assumptions and ignoring or downplaying other information
Hallmarks of active inertia
Strategic frames become blinder, Processes harden into routines, relationships become shackles, values harden into dogmas
Business case
Theft, Fraud, Harassment, Buse - transactional view
Blockbuster - innovation
Wanted to maintain physical store, Threatened by netflix (netflix started as DVD deliveries)
Reward power
ability to bestow gifts/benefits
Coercive power
ability to punish someone
Reciprocal interdependence
adjust as the situation changes (back and forth, lots of involvement) - highest level (ex: soccer team)
Goal setting theory
an individual's intention to work toward a goal is a primary source of motivation; specific and harder goals lead to higher levels of performance; feedback helps too
Stakeholders
any group or individual who can affect or is affected by an organization's actions
Legitimate power
authority inherent in a person's role
Counter-dependence
aversion/resistance to authority (grace)
Ways to innovate
back stage AND front stage
Chapter 11 vs 7 bankruptcy
bankruptcy before failing (chapter 11), bankruptcy and go under (chapter 7)
Reasons and rationalizations
barriers for pursuing a particular course of action; addressing these reduces their power - are the common arguments
Reinforcement theory
behavior is a function of its consequences → rewards increase behavior and punishments decrease
Overdependence
belief leader is all-knowing
Violin dilemmas
buy one from a yard sale that is worth a lot VERSUS a store owners selling a violin for too much
Greenwashing
carrying out superficial CSR efforts that merely cover up systematic ethics problems in an inauthentic way and acting simply for the sake of public relations
Five dimensions of power
coercive, reward, legitimate, expert, referent
Pooled interdependence
combined separate pieces (broken apart work) - lowest level (ex: gymnastics team)
External reasons for failure
competitors, stock market, pricing
Performing stage
completely self-directed and requires little management direction; confidence, pride, enthusiasm
Needs and wants/the tension when not met
creates motivation to fix this
Deep purpose
deep commitment to both economic and social benefits; "practical idealism"
Interdependence
degree to which team members need to rely on each other to accomplish the task
Exploration
discovery, research and development - high uncertainty, new ideas, venture capital
Types of organizational justice
distributive, procedural, interactional
Diversity in teamwork
diverse teams perform above standard
Why does goal setting sometimes fail?
easy goals or too hard of goals don't work
Integration thesis
ethics isn't just about avoiding criminal cases, it's about conducting ourselves and business in a way that benefits rather than harms other - Combination of relational and transactional view
Common arguments for reasons and rationalizations
expected vs standard practice; materiality (ambiguous/fraudulent); locus of responsibility (following orders vs you're at fault); locus of loyalty
Blockbuster - success/failure
failed because of too much focus on exploitation - thought physical location and new release sales would take them through
Southwest
failed because they never innovated and improved their systems
Toys R Us
failed due to inability to keep up with the environment, too much debt, amazon partnership, too pricey and bad customer service
Success trap
focus only on exploitation
Perpetual search trap
focus only on exploration
Interactional organizational justice
focuses on the way in which an individual is treated when decisions are made, individuals feel they are being treated fairly when employers provide explanations for decisions and treat employees with dignity, respect, and sensitivity
Components of triple bottom line
forces us to reconsider the very concept of the bottom line; three measures of the "bottom line" which are the economic, social and environmental impacts (people, planet, profit)
Motivation
forces within a person that affect intensity, direction, and persistence of voluntary behavior
Eron
fraud, loopholes (financial statements has no bearing on reality)
MGM resorts
gambling company trying to maximize profit while supporting CSR - gambling addictions go against this
Dyson
good job at exploit AND explore
Lego
good job at exploit AND explore, great innovation strategies, sustaining innovation
Key points of innovations
group effort and requires creativity, many decades of research and steady development
Self-fulfilling prophecy
he physical outcome of a situation being influenced by our thinking, either positively or negatively
Mutual adjustment coordination
high level
Things employees need to know about themselves
how they react to authority and how their actions influence their leader
Coordination
how you achieve interdependence - corresponds with levels above
Space junk/trash
huge problem and only getting bigger, working satellites at risk
Expert power
influence that comes from having special knowledge
Things employees need to know about boss
leader's work and decision-making style, leader's goals and challenges
Building an "exchange relationship
leaders have power that followers do not and employees need to leverage that power
Patterns of reasoning and levers
long and short term focus, wider purpose, competitive advantage, continuous improvement, add allie, point out addictive cycles, should do the right thing, counter commonly help perception about unethical behavior
Eastman chemical
long-term focus, developed chemicals and manufacturer sustainably, safe chemicals for user and environment - had a scnadal and fixed it
Standardization coordination
low level (ex: each person writes a page)
Wells Fargo
low level employees were squeezed tighter and tighter each year by sales goals that senior executives methodically raised, ignoring signs that they were unrealistic
Planning coordination
mid level (ex: time spent on each part)
Active inertia
organization's tendency to follow established patterns of behavior even in response to dramatic environmental shifts
Sequential interdependence
output becomes input (someone couldn't start on their part until one finished) (ex: relay race)
Active vs passive/Constructive vs destructive conflict
picture
Situational leadership model picture
picture
Corporate Social Responsibility
practice by which a business views itself within a broader context, as a member of society with certain implicit social obligations and environmental responsibilities
Wicked problems
problem that defies a straightforward solution - need to combine insights
Purpose as disguise
professed purpose covers up questionable actions
MRNA
research on mRNA way before covid issue which is why vaccines came out so fast
Impact of stock options on CEO/companies
right to buy companies stock in the future at the same price it is now - option to employees that motivates them to focus mainly on shareholders
Intrinsic motivation/rewards
satisfaction, pride, etc
Container Store
saving time and space at a consumer level; new business model; treats employees very well - very little turnover, women working, codes of ethics, taking care of vendors
Short vs long term focus - stakeholder
short-term stockholder vs long-term is stakeholder
Exploitation
something is working well - their goal becomes executing - low uncertainty, efficient, refining knowledge, steady returns
FTX
straight-up fraud
Luke's lobster
supportive and creative, take care of vendors, don't overfish
Shibumi shade - innovation
sustaining innovation
Norming stage
team is starting to work well together and buy-in to group goals; establishing and maintaining rules; willingness to share responsibility
Storming stage
team members begin vying for leadership and testing the group processes; win-lose stage; clashing
Mining
technique used to avoid conflict; require that one team member assume the role of the minor of conflict - someone who extracts buried disagreements within the team and sheds light on them
Self-serving bias
tendency to attribute our own successes to internal factors and our failures to external factors
Fundamental Attribution Error
tendency to overestimate internal causes of another person's poor behavior or performance and underemphasize external factors
Social loafing
tendency to put forth less effort when working in a group
Separation fallacy
tendency to separate the business case from the ethics case
Cognitive miser
tendency to use mental shortcuts in making judgements and drawing differences
Expectancy theory
the way we act depends on what we expect to happen and how much we want the outcome → effort vs performance, performance vs reward, reward vs personal needs
Theranos
took shortcuts to try to keep her company solvent and lied to keep investor money flowing; blood test company (elizabeth holmes); Defense: failure is not a crime
Xerox
tried computers and it never worked
Valence
value of the outcomes (O)
Breakthrough innovation
well-defined problem that's very hard to solve, Unconventional skill domains needed, Open innovation
Instrumentality
what outcome will come from performance (P)
Procedural organizational justice
when employees perceive that the processes that lead to important outcomes are fair and just
Escalation of commitment
when there is a fear that changing plans will result in a loss of sunk costs and embarrassment from admitting a mistake
Purpose as win-win
where economic and social benefits intersect (and only when they intersect) - rare
Expectancy
will putting in effort give success; do I have the skills, etc (E)
Detecting odors
with clams - simple innovation (breakthrough)