Locus of control

Unethical decision

‐ A decision a manager would prefer to disguise or hide from other people because it enables a company or a particular individual to gain at the expense of society or other stakeholders

Ethical decision

‐ A decision that reasonable/typical stakeholders, given their attitudes and values would find acceptable as it aids stakeholders, company or society

Instrumental value

‐ A personal conviction about desired modes of conduct or ways of behaving

Terminal value

‐ A personal conviction about lifelong goals or objectives

Why should managers behave ethically?

‐ Because of the harm unethical behaviour inflicts on others ‐ Prevention of the loss of reputation ‐ Set an example to employees

Why Managers behave unethically towards other stakeholders

‐ Because they put their personal interests above the interests of other organisational stakeholders or choose to ignore the harm that they are inflicting on others. ‐ Bribery, overcharging customers ‐ Feeling pressured for company to perform well and succeed ‐ Copying others "if he can do it, we can do it too"

External locus of control

‐ Believe that outside forces are responsible for what happens to and around them ‐ Don't think that their own actions make a difference

Internal locus of control

‐ Believe that they themselves are responsible for their own fate - ‐ Sees actions & behaviours as important and decisive determinants of important outcomes such as levels of job performance or being turned down for a choice job assignment

Emotional intelligence

‐ The ability to understand and manage one's own and other people's moods and emotions ‐ Can help managers perform their important roles such as their interpersonal roles ‐ Categorized into 4 components o Self awareness o Self regulation o Motivation o Social skill

Ethical dilemma

‐ Where a person may find themselves in a pickle when they have to decide if they act in a way to help a person or do the right thing. o E.g. Suppliers provide a company with its inputs and expect to be paid within a reasonable amount of time. Some managers however consistently delay payment to make the most use of their organisation's money.

Organisational stakeholders

-‐ Individual and groups include shareholders, managers, employees, customers, suppliers, and citizens of the country the company operates