Management and Ethics: Key Concepts and Theories

Accountability

Being held responsible by someone above you for your performance and results

Controlling (management function)

Measuring actual performance against targets/goals and taking corrective action

Planning (management function)

Setting objectives and deciding how to achieve them, including targets and deadlines

Networking

Building and maintaining good working relationships with people who can help implement your work agendas

Katz's Technical Skills

Job-specific knowledge/skills needed to perform tasks; most important for first-line managers

Katz's Human Skills

Ability to work well with people; important at all management levels

Katz's Conceptual Skills

Ability to see the organization as a whole and understand how parts relate; most emphasized by top managers

Effective Manager

Someone who helps others achieve high levels of BOTH performance and satisfaction

Corporate Governance

Active oversight by the board of directors of top management decisions (strategy, financial reporting)

Discrimination

Actively denying a qualified person's rights based on group membership (race, gender, etc.) rather than merit

Global Sourcing

Contracting out work/materials to different countries to get the best possible deal

Intellectual Capital Equation

Intellectual Capital = Competency x Commitment

Command and Control (trend away from)

Traditional top-down management style; today's trend is moving toward coaching and facilitating

Upside-Down Pyramid

View where managers provide SUPPORT so operating workers can directly serve CUSTOMERS

Mintzberg's Findings on Managerial Work

Managers work at a fast pace, in short bursts, and constantly live with performance pressure

Emotional Intelligence

Ability to manage yourself and your relationships effectively

Self-Regulation (EI)

Ability to think before acting and control potentially disruptive emotions/actions

CEO Responsibility

Aligning the company with changes in the external environment (big-picture, long-term focus)

Scientific Management (Taylor)

Studying jobs carefully, training workers in efficient motions, and tying pay to performance

Hawthorne Studies

Research showing human/social factors (attention, group dynamics) influence productivity

Hawthorne Effect

People perform better when they know they are being observed/studied

Theory X (McGregor)

Assumption that people are lazy and irresponsible, need control

Theory Y (McGregor)

Assumption that people are self-motivated and enjoy work

Self-Fulfilling Prophecy (negative)

When negative assumptions about people (Theory X) cause them to act that way

Subsystem

A smaller system operating within a larger complex system (e.g., a department within a bank)

Contingency Thinking

The idea that management approach should fit the specific situation or individual, not one-size-fits-all

Weber's Bureaucracy

Ideal organization type featuring hierarchy, formal rules, impersonality, and promotion by merit

Unity of Command

Principle that a person should receive orders from only one boss

Hawthorne Conclusion on Groups

Groups can restrict/limit the productivity of their members through social pressure

Fayol's Administrative Principles

Managers should be trained to better plan, organize, lead, and control

Argyris's Theory

Mature adults treated immaturely at work (not treated as adults) leads to poor performance

Modern Management Approach

Views people and organizational systems as complex and ever-changing

Analytics

Using math and computing power to examine 'big data' for business insights

Maslow's Hierarchy of Needs (order)

Physiological, Safety, Social, Esteem, Self-Actualization (highest)

Transformation Process (open systems)

The stage where inputs are turned into outputs

Evidence-Based Management

Making decisions based on solid facts and data rather than assumption

Utilitarian Approach

Ethical reasoning based on the greatest good for the greatest number

Individualism Approach (ethics)

Ethical reasoning based on acting in one's own long-term self-interest

Moral Rights Approach

Ethical reasoning based on respecting and protecting the fundamental rights of all people

Justice Approach (ethics)

Ethical reasoning based on fair and equitable treatment of people

Distributive Justice

Fairness in how outcomes, rewards, and rules are distributed/applied across people

Procedural Justice

Fairness in the policies and procedures used to make decisions

Interactional Justice

Fairness in how people are treated interpersonally, including explanations given for decisions

Whistleblower

A person who exposes the unethical or illegal acts of others within an organization

Ethical Imperialism

Criticism aimed at moral absolutism for imposing one culture's ethics on all others

Kohlberg's Preconventional Level

Moral development stage driven by self-interest and avoiding punishment

Kohlberg's Conventional Level

Moral development stage where a person follows group norms, meets obligations, and follows social rules

Kohlberg's Postconventional Level

Moral development stage based on internalized ethical principles beyond laws/norms

Terminal Values

Values about desired end-states or goals in life (e.g., comfortable life, family security)

Instrumental Values

Values about desired modes of behavior/means (e.g., honesty, hard work)

Classical View of CSR

The view that a business's primary responsibility is to maximize profit

Triple Bottom Line

Measuring organizational performance across financial, social, and environmental dimensions

Amoral Manager

A manager who acts unethically without intending to, due to failing to consider ethics

Discretionary Social Responsibility

The highest level of CSR commitment; voluntary contribution to the community

Sustainable Development Stakeholder

Future generations are the key stakeholder considered in sustainability discussions

Cultural Relativism

The view that ethical standards are determined by and specific to a particular culture

Moral Absolutism

The view that universal ethical standards apply to all people, regardless of culture

Prejudice vs Discrimination

Prejudice is a negative ATTITUDE toward a group; discrimination is the ACTION of denying rights based on that attitude

Free-Agent Economy

A career trend where people work independently on a project/contract basis rather than in traditional long-term jobs

POLC

The four management functions: Planning, Organizing, Leading, Controlling