MGMT 5073 - Management and Ethical Leadership Exam 1
John and Jessica recently went to a local bank for borrowing money to purchase a home. If the bank offers them a 100-percent financing and are not required to provide proof of employment or income, it would classify as the _____ from the 2000s era in the United States.
Liar Loan
Informal Role Model
What employees observe of people in positions of authority
Hypocritical Leadership
When a person in a position of power talks about the importance of ethics, but then acts in an unethical manner
Alignment
When formal and informal systems are "pushing" employees in the same direction
TRUE/FALSE: Because mission statements always reflect the core values of an organization, it is safe to assume that because they are codified in writing, policies, and procedures, the organization will always behave ethically.
FALSE
TRUE/FALSE: Being accepting of failure shows weakness and invites incompetence. Ethical Role Models should never be accepting of failure.
FALSE
TRUE/FALSE: Climate and Culture are completely interchangeable in the context of organizational behavior
FALSE
TRUE/FALSE: Cost-benefit analysis is the best way to determine the right course of action, when ethical questions arise.
FALSE
TRUE/FALSE: Culture change occurs rapidly.
FALSE
TRUE/FALSE: Cultures where employees are free to question orders, or leaders, are toxic and should be avoided at all cost.
FALSE
TRUE/FALSE: Equal outcome for all is the true measure of whether an action is fair.
FALSE
TRUE/FALSE: Ethical organizational behavior starts at the bottom of an organization and works its way up to senior leadership.
FALSE
TRUE/FALSE: Internal audits (i.e. culture surveys) are ineffective ways to measure an organization's culture
FALSE
TRUE/FALSE: Reward systems for reporting problems are ineffective.
FALSE
TRUE/FALSE: Reward systems have little to no impact on the ethicality of organizational behavior.
FALSE
The type of language used when describing a situation does not affect moral awareness.
FALSE
There are major differences in levels of moral reasoning between men and women.
FALSE
Training, whether in groups, peer to peer, or using DVD to deliver the content, has been shown to be ineffective in helping employees become ethically aware.
FALSE
What two things should effective performance management systems do?
Focus on the mechanics, Marry the what with the how
The tendency to overemphasize personality‐based explanations for behaviors observed in others while under‐emphasizing the role and power of situational influences on the same behavior.
Fundamental Attribution Error
What is the first step in the sound ethical decision making in business?
Gather the Facts
____________ is a type of sexual harassment wherein a worker is made to feel uncomfortable because of unwelcome actions relating to sexuality.
Hostile Work Environment
Tendency to underestimate risks because of the belief that we are in charge of what happens.
Illusion of Control
Tendency to overestimate the likelihood of good future events.
Illusion of Optimism
Unconscious distortion of information in order to maintain a positive self-image.
Illusion of Superiority
Which of the following is true?
a. ***Cognitive biases are the result of trying to reduce uncertainty and simplify the world.*** b. Cognitive biases are an individual difference and do not affect all human beings in the same way. c. Business executives and students are generally reserved about their knowledge of the facts. d. People are generally good at thinking of the consequences of their decisions outside of their immediate family and friends.
Which of the following is true?
a. ***People's locus of control is relatively stable, but can change over time. *** b. People are born with a particular locus of control. c. People are either internal or external. Locus of control is not a continuum. d. People with high external locus of control believe their life is a product of their own efforts.
Which of the following is false?
a. Moral reasoning can be increased through training. b. A more-principled individual is less likely to cheat. c. When an organization's leader is characterized by high moral development, the entire ethical climate of the organization is stronger. d. ***Employee satisfaction and commitment are not related to the leader's moral development.***
The following helped lead to Jack Abramhoff's downfall:
a. Rationalization b. Overconfidence bias c. Framing d. Self-serving bias e. **All of the above**
Ethical behavior can be influenced by:
a. an individual's religion b. an organization's culture c. ethical training d. an individual's personality e. **all of the above**
Strong Organizational Culture
assumptions, values, beliefs widely shared
Sensemaking
creating awareness and understanding in situations that are complex or uncertain
47. Those with higher __________ are more likely to avoid pressure to violate social norms because _____________.
internal locus of control; they believe they are in charge of their own fate
TRUE/FALSE: A robust decision-making process is unneeded in the workplace, because the right and ethical answer should be simple common sense.
FALSE
TRUE/FALSE: Aligned systems are always ethical.
FALSE
TRUE/FALSE: An ethical manager never discusses the results of internal culture audits with their subordinates
FALSE
What is the title of Adam Smith's first book?
The Theory of Moral Sentiments
What was the name of the legislation that was passed by the U.S. Congress to rein in the most egregious practices in the financial industry?
Dodd-Frank
If you are asked to make hastily a decision that you believe raises potential ethical issues you should be a good team player and proceed with the decision.
FALSE
In Kohlberg's theory, adherence to any principle qualifies as "principled" thinking.
FALSE
It is good advice to always just go with your gut when faced with an ethical dilemma.
FALSE
It is unethical for managers to "control" employees' ethical behavior through direct management and the organization's formal and informal cultural systems.
FALSE
TRUE/FALSE: A fair role model should only listen to a select few of their most trusted advisers - the rank and file don't know what the company's needs really are.
FALSE
The 6 most common categories of rationalizations:
1. Denial of responsibility 2. Denial of injury 3. Denial of victim 4. Social Weighting 5. Appeal to higher loyalties 6. Metaphor of the ledger
What are the 4 perspectives for Ethical Role Models?
1. Interpersonal Behaviors 2. Fairness with Others 3. Ethical Action & Expectations for Self 4. Articulation of Ethical Standards
Ethically Neutral Leadership / "Silent" Leadership
A Leader Who Is Not A Strong Or Weak Ethical Leader, But Does Not Provide Clear Ethical Guidance People May Not Know The Leader's Ethical Beliefs Or Whether The Leader Cares
Culture
A body of learned beliefs, traditions, and guides for behavior shared among members of a society or group
Argument
A reason or set of reasons given with the aim of persuading others that an action or idea is right or wrong
Which is easier to change, climate or culture?
Climate
Tendency to search for and focus on information that endorses the decision we prefer.
Confirmation Bias
Ethical Climate - Fairness
Employees believe they are treated fairly in outcomes, processes, and interactions
Ethical Climate - Rule-Based
Employees follow both laws and organizational rules when making decisions.
Climate
Employees' shared perceptions of the organization in terms of policies, practices, expectations and outcomes
What has the single largest impact on the ethicality of organizational culture?
Executive Leadership
Formal Systems
Executive Leadership Selection System Policies/Codes Orientation/Training Performance Management Authority Structure Decision Processes
Organizational Culture
Expresses shared assumptions, values and beliefs, and is the social glue that holds the organization together. How we do things around here...
29. In business, concerning yourself with how your decision making affects stakeholders is useless given the number of stakeholders and their different interests.
FALSE
According to Lawrence Kohlberg, developer of a key theory of moral reasoning, role taking is useless as nothing is gained by putting yourself in the shoes of others.
FALSE
According to cognitive moral development theory, the actual moral decision is more important than the reasoning process used to arrive at it.
FALSE
According to research, one's ethics are fully formed and unchangeable by the time one is old enough to enter college or a job.
FALSE
According to the textbook, most people are guided by a strict internal moral compass and will not be swayed by organization factors.
FALSE
An employer cannot be held liable for an employee's sexual harassment activities.
FALSE
Despite the disclosure rule, making decisions in private to avoid negative reaction is generally best for a business as it safeguards your firm's reputation and keeps competitive information away from your competitors.
FALSE
Discarding the few "bad apples" will usually solve all of the ethical problems within an organization.
FALSE
Federal and state laws define what is ethical. Therefore, if it is not illegal, it is not unethical.
FALSE
Good character is the main factor determining whether an individual acts ethically within an organization.
FALSE
Formal Role Model
Mentoring socialization systmes
Ethical Climate - Self-Interest
People protect their own interest about all else.
_____________ is a type of sexual harassment wherein an individual believes that sexual favors are a requirement for advancement in the workplace.
Quid Pro Quo
Identify the three components that are used to define "fairness."
Reciprocity, Equity, and Impartiality
Unethical Leadership
Reputations as weak moral persons / weak moral managers
Informal Systems
Role Models/Heroes Norms Rituals Myths/Stories Language
Ethical Leadership
Strong moral person / strong moral manager
A challenge involved in using a strictly consequentialist approach is that it is often difficult to obtain the information required to evaluate all of the consequences for all stakeholders who may be directly or indirectly affected by an action or decision.
TRUE
A major challenge of taking a deontological approach to resolving an ethical dilemma is deciding which duty, obligation, right, or principle takes precedence because ethical dilemmas often pit these against each other.
TRUE
A virtue ethics approach is particularly useful for individuals who work within a professional community, such as the accounting profession, that has developed high standards of ethical conduct for community members.
TRUE
A virtue ethics perspective requires a moral actor to look to the community that will hold the moral actor to the highest ethical standard and support the moral actor's intention to be a virtuous person.
TRUE
An effective way to avoid decision-making weaknesses and biases is to become aware of them and to incorporate steps into decision-making that are explicitly aimed at reducing their impact.
TRUE
Business managers generally rely on the consequentialist approach.
TRUE
Ethical dilemmas represent conflicts in values.
TRUE
Managers must structure the work environment to support ethical conduct and this includes ensuring that reward systems are aligned with the ethics of the firm.
TRUE
One of the best things we can do to preserve our moral intent is to monitor our own rationalizations.
TRUE
Stage 1 of Kohlberg's Levels of Moral Reasoning is focused on avoiding punishment.
TRUE
TRUE/FALSE: A fair role model does not hesitate to explain decisions, especially when it is appropriate to do so.
TRUE
TRUE/FALSE: Accentuating the positive is a crucial interpersonal behavior for an ethical role model.
TRUE
TRUE/FALSE: Employees do not typically blow the whistle out of fear of retaliation, or being cast as a "rat" or "narc."
TRUE
TRUE/FALSE: Leaders who behave and exhibit ethical behavior are likely to have ethical followers, and vice-versa.
TRUE
TRUE/FALSE: Organizational culture can be strong or weak.
TRUE
TRUE/FALSE: Values Statements are more detailed/specific to certain tasks/behaviors than are Mission Statements.
TRUE
The human ability to rationalize is perhaps the single most important factor that enables good people to give themselves license to do bad things.
TRUE
The self-serving bias can cause us to selectively remember things that make us look good.
TRUE
You should guard your reputation as it is built slowly with countless actions, but it can be destroyed in an instant by one foolish mistake.
TRUE
Ethical Climate - Benevolence
The organization cares about multiple stakeholders
Culture (vs. Climate)
The underlying shared values and beliefs which lead to the experiences that influence the development of perceptions (climate)
In the textbook, the authors focus on _____________ factors because ____________:
organization; these factors can be directly controlled by managers
Weak Organizational Culture
subgroup norms more influential
Socialization
the process by which individuals internalize the values, beliefs, and norms of a given society and learn to function as members of that society (sensemaking and sensegiving)
Sensegiving
the process of influencing how others make sense of the organization, where they fit within it, and the larger purpose of their work