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)