MGMT 5032: Week 1 (Chapters 1-2)

Benefits of diversity

- Higher creativity in decision making - Better understanding and service of customers - More satisfied workforce - Higher stock prices - Lower litigation expenses - Higher company performance

Role of Ethics in Business: Cognitive Biases (Blind Spots)

Blind spots are cognitive biases that prevent us from seeing unethical behavior. Leaders are unaware of unethical behaviors in their organizations, these are called "blind spots" 1. Ill-conceived goals 2. Motivated biases 3. Indirect blindness 4. The Slippery Slope 5. Overvaluing Outcomes

Mario is a delivery driver who delivers packages in the West Houston area. He has a goal of delivering 300 packages per day (30 steps per hour). When he starts falling behind due to traffic, he tends to compensate by speeding through residential areas and carelessly dropping packages at their destinations, rather than delivering them. This is an example of

Ill-conceived goals

Michelle quit her job because she felt it was boring. This would be diagnosed as a(n) __level problem

Individual

Indulgence: Indulgent vs. Restrained

Indulgence - stands for a society that allows relatively free gratification of needs and regulates it by means of strict social norms Restrained - stands for a society that suppresses gratification of needs and regulates it by means of strict social norms

Importance of OB

It is important in all facets of school and work because it helps us understand and manage people. It matters because organizations care about OB.

Emily is part of a team working on a project. Veronica's role on the team is to update and present status reports to management. Emily knows that Veronica's reports do not show the delays that have occurred, but she doesn't say anything because she does not want upper management more involved. Which of the following is Emily demonstrating?

Motivated Biases

Long-Term Orientation: Normative vs. Pragmatic

Normative cultures - they prefer to maintain time-honored traditions and norms while viewing societal change with suspicion Pragmatic - those within a culture that scores high on this dimension, which means that they take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future

Dina quit her job because she felt that her department's reward system favored men. This would be diagnosed as a(n)__

Organizational level problem

Hofstede's Dimensions of Culture

Power-Distance Individualism Masculinity Uncertainty Avoidance Long-Term Orientation Indulgence

Role of Ethics in Business: Sustainability

Sustainable business practices are those that meet the present needs without compromising the needs of future generations.

Ethnocentrism

The belief that one's own culture is superior to other cultures one comes across

Cognitive Biases (Blind Spots): The Slippery Slope

The slippery slope mutes our awareness when unethical behavior develops gradually; Be alert for even trivial ethical infractions and address them immediately. Investigate whether a change in behavior has occurred.

Cognitive Biases (Blind Spots): Overvaluing Outcomes

We give a pass to unethical behavior if the outcome is good; Examine both "good" and "bad" decisions for their ethical implications. Reward solid decision processes, not just good outcomes.

Cognitive Biases (Blind Spots): Indirect Blindness

We hold others less accountable for unethical behavior when its carried out through third parties; When handing off or outsourcing work, ask whether the assignment might invite unethical behavior and take ownership of the implications.

Cognitive Biases (Blind Spots): Motivated Biases

We overlook the unethical behavior of another when its in our interest to remain ignorant; Root of conflicts of interest. Simply being aware of them doesn't necessarily reduce their negative effect on decision making.

Cognitive Biases (Blind Spots): Ill-conceived goals

We set goals and incentives to promote desired behavior, but they encourage a negative one; Brainstorm unintended consequences when devising goals and incentives. Consider alternative goals that may be more important to reward.

Individualistic culture

cultures in which people define themselves as an individual and form looser ties with their groups

Collectivistic culture

cultures where people have stronger bonds to their groups and group membership forms a person's self-identity

Levels of Organizational Behavior

individual, group, organization

Similarity-attraction phenomenon

refers to the tendency to be attracted to similar individuals

Hofstede's Dimensions of Culture: Individualism

the degree of interdependence a society maintains among its members. "I" instead of "we". -- collectivistic vs. individualistic --

Hofstede's Dimensions of Culture: Power Distance

the degree to which a society accepts and expects power inequalities. -- Egalitarian vs. embraces hierarchy --

Hofstede's Dimensions of Culture: Long-term Orientation

the degree to which a society focuses on and prepares for the future, encourages savings, invests in modern education -- traditional/ normative vs. futuristic/pragmatic --

Hofstede's Dimensions of Culture: Masculinity

the degree to which a society is driven by competition and success over caring for others -- feministic/nurturing vs. masculine/ competitive -- - Feminine cultures value maintaining good relationships, caring for the weak and vulnerable and emphasizing quality of life

Hofstede's Dimensions of Culture: Uncertainty avoidance

the extent to which a society feels threatened by the unknown and have created beliefs/ institutions to try to avoid it. People feel threatened by ambiguous, risky or unstructured situations. -- tolerates uncertainty vs. avoid uncertainty --

Hofstede's Dimensions of Culture: Indulgence

the extent to which people try to control their desires and impulses, based on the way they were raised -- restrained vs. indulgent --