B111 exam - modules 5, 7, 8, 9

social responsibility

• “a business’ obligation to pursue policies, make decisions, and take actions that benefit society” (85)

legal responsibility

• duty/obligation to follow laws and regulations

ethical responsibility

• = follow principles of right and wrong when conducting business

economic responsibility

• to make a profit by producing a valued good or service

social responsiveness

• reactive

• defensive

• accommodative

• proactive

• social responsiveness = “strategy to respond to stakeholders’ economic, legal, ethical, or discretionary expectations concerning social responsibility” (89)

  • reactive strategy = does less than society expects

  • defensive strategy = admits fault/responsibility, does minimum required to meet expectations

  • accommodative strategy = accepts responsibility, does everything expected to resolve issues

  • proactive strategy = anticipates problems and does more than expected to address them

discretionary responsibilities

• “the social roles that a company fulfils beyond its economic, legal and ethical responsibilities” (88)

organisation’s obligation — shareholders and stakeholders

• organisations obligation = “pursue policies, make decisions, take actions that benefit society” (slides) → shareholder vs stakeholder model

• shareholder = financial investment in the firm

• stakeholder = any legitimate interest in the firm

  • direct/regular financial relationship between stakeholder and company → primary stakeholder

shareholder model

• shareholder model = “a view of social responsibility that holds that an organization’s overriding goal should be profit maximization for the benefit of shareholders” (85)

  • accredited to Milton Friedman

stakeholder model

• primary

• secondary

• stakeholder model = “a theory of corporate responsibility that holds that management’s most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders” (85)

• stakeholders = “persons or groups with a stake, legitimate interest, in a company’s actions” (85)

  • primary stakeholders = those who the company depends on eg employees, suppliers, customers etc

  • secondary stakeholders = can influence or be influenced by the company eg media, special interest groups

  • organisations would not survive without their primary stakeholders BUT secondary stakeholders are still important — reputation

UN 3 pillars of sustainability

• environmental sustainability = preservation of natural resources, access to safe drinking water

• social sustainability = “improvement of daily life for the greatest number of people through improving fair income distribution; promoting gender equality; ensuring equal access to land ownership, employment and education; investing in basic health and education; and enlisting the participation of beneficiaries” (537)

• economic sustainability = current outcomes which foster long-term economic development

sustainability

• ability of current generations to meet today’s needs without compromising the ability of future generations to meet future needs

  • a business must meet all pillars to be truly sustainable

CSR

• “how businesses and institutions address environmental, social and economic sustainability” → self regulation

Mauri model of sustainability

• Mauri model of sustainability (kaitiakitanga) has four dimensions

  • environmental wellbeing (taiao mauri)

  • cultural wellbeing (hapū mauri)

  • social wellbeing (community mauri)

  • economic wellbeing (whanau mauri)

• Mauri-o-meter = assessment of the impact of policies on mauri

utilitarianism

• Most good for the most people

• Founded by John Stuart Mill

• Is results oriented but can we accurately predict future outcomes?

individualism

• Act to achieve self interests

• Can lead to misbehaviour ← motivated by greed

• For businesses: can lead to an exclusive focus on profit → not meeting social obligations

justice view

• types of justice

• Fair treatment based on laws and other standards

• How equitable a decision is for workplace justice?

  • Procedural justice = fair enforcement of rules

  • Distributive justice = equity based on individual characteristics eg ensuring men and women are paid the same

  • Interactional justice = treating all with respect, dignity

  • Commutative justice = fairness in exchanges, ensuring access to equal information

moral rights view

• Uphold fundamental human rights – refer to UDHR

• John Locke: all have right to fair treatment, liberty, life

cultural relativism

• ethical behaviour is determined by culture

moral absolutism

• there are absolute truths for ethics

ethical dilemma

• course of action required, decision must be made between options which may involve ethical transgressions

ways people justify unethical behaviour

• Not illegal

• Everyone’s best interests - look beyond ends justify the means

• No one will know - still wrong if not discovered

• Organisation will support - expectation that company is more loyal than it may actually be

• Lawrence Kohlberg: Levels of ethical decision making

1. Preconventional level = self centred, follows instructions

2. Conventional level = decisions based on social norms, meeting obligations and expectations

3. Postconventional/principled level = acts on principles and beliefs

types of managers re ethics

• Manager to act as role models, set moral tone for the organisation eg having confidential reporting processes

  • Immoral manager = chooses to act unethically

  • Amoral manager = not aware of ethics

  • Moral manager = acts on strong ethical framework

triple bottom line

• measures organisation based on financial, social and environmental results

3Ps of organisation performance

• profit, people, planet

ethics and values

• ethics = “code of moral principles that sets standards of good or bad, or right or wrong, in a person’s conduct”

• values = broad beliefs of how we should act

impacts on what managers consider ethical

• manager as a person — family/religion/personal standards etc

• employing organisation — policies, codes of conduct, organisational culture, behaviour of supervisors and peers

• external environment — government regulations, societal normal, ethical climate of the industry

koru of Māori ethics

group, work team, group formation

• group = common objectives, continual interaction

• work team = different skills, common mission, task-oriented

• group formation and development

  • official and assigned groups vs unofficial and emergent groups

  • diversity within groups can improve performance

  • mature groups are able to work together better

Tuckman’s five stages of group formation and development

1. Forming = not much agreement, unclear direction

2. Storming = power struggles, more clarity of purpose, conflict

3. Norming = consensus, clear roles, facilitation

4. Performing = clear vision, delegation, achieving goals

5. Adjourning = tasks are complete, recognition

• proposed additional stage = reforming ie going back to the beginning after a change

Gersick’s punctuated equilibrium model

• groups do not make progress in a linear way INSTEAD they have periods of stagnation with little progress followed by bursts of productivity

characteristics of a mature group or team

• clear purpose and mission

• well-understood norms and standards of conduct

  • leads to team altruism

• high level of group cohesion

  • influenced by time, size, prestige, external pressure, internal competition

• flexible status structure

  • status structure = how authority and tasks are distributed in the group

task and maintenance functions

• task functions = activities which contribute to completion of work eg identifying and finding solutions to problems

• maintenance functions = activities necessary for the group to continue working together well

  • maintaining interpersonal relationships → communication

benefits of work teams

• complicated tasks require teamwork, variety of skills and knowledge

• empowers workforce more than command and control style

• individual benefits of socialisation, connection and involvement

  • psychological intimacy = emotional closeness to colleagues

  • integrated involvement = closeness due to the process of completing the work

four aspects of group behaviour

• norms of behaviour = implicitly or explicitly inform how members act

  • morality norms matter more than competence norms

  • performance norms are most relevant in the firm’s view

• group cohesion = interpersonal component holding the group together

  • higher job satisfaction → higher productivity

  • better teamwork skills

• social loafing = one member relies on other members instead of making equal contributions

  • ie free riding = rational because its hard to observe individual efforts

  • decrease the group’s overall performance

  • counter though a self-evaluation system, dividing tasks more strictly

• loss of individuality = loss of self awareness, accountability for individual behaviour

  • behaviour of workers worsens

  • loss of ego can be positive for teamwork

factors that influence group effectiveness

• work team structure = goals, objectives, operating guidelines, measures for success ie how the team goes about doing the work

• work team process = managing cooperative and competitive behaviours

  • cooperative: open communication, integrity, positive interdependence, mutual support

  • competitive: fair play, reward structures

• diversity

  • roles of contributor (of information), collaborator, communicator and challenger, interrogator styles

  • structural diversity = structural holes, disconnection between team members → improved by diversity

    • more structural holes can allow for more creativity while few allows for efficiency

• creativity

empowerment and teams

• organisational culture empowers teams ← especially when they are self managed or remote

• empowerment skills: competence skills, process skills, cooperative and helping behaviours, communication skills

• allowing teams to self manage increases empowerment BUT managers still provide leadership and influence

upper echelon theory

• upper echelon = the top management team (TMT)

  • upper echelon theory: backgrounds of the TMT inform organisational values and culture

    • TMT’s experiences influence their reactions and decisions

    • TMT has power over whole organisation so is highly influential

role of diversity in teams

• diversity, presence of a devil’s advocate in the TMT can maintain high performance for longer

• diversity can increase uncertainty, complexity and miscommunication BUT provides more ideas so benefits organisations

organisational culture

 guiding beliefs shared by all within an organisation

4 types of organisational culture

• clan culture = internal focus, flexible values, lots of collaboration, less control and stability

• adhocracy culture = external focus, values flexibility, risk taking, constant change

• hierarchy culture = internal focus, values stability and control → formal and efficient

• market culture = external focus, values stability and control — importance of the external environment

three levels of organisational culture

• observable artefacts = physical signs of culture eg manner of dress, awards, behaviour

• espoused values = what is explicitly stated by the organisation

  • enacted values = what actually happens

• basic assumptions = the beliefs of workers regarding the organisation, not observable

how employees learn culture

• symbols = object/act/quality/event used to convey meaning

• stories = repeated narrative to emphasise a value

• heroes = somebody who embodies the organisation and its values

• rites and rituals = activities/ceremonies which celebrate the organisation at particular milestones

importance of organisational culture

• collective identity

• collective commitment

• social stability

• shapes behaviour (when employees make sense of their surrounding environment)

3 views on enhancing economic performance (profit and competitiveness)

• strength perspective = an organisational culture’s strength is based on the organisation’s long-term financial performance

  • strong culture = everyone buys into the values → more motivation → better performance

  • weak culture = values forced on people

  • weakness: success makes managers less likely to consider change

• fit perspective = success happens when culture fits context

  • better fit → better economic performance

• adaptation perspective = best cultures help organisations predict and adjust to changes in their environment

  • adaptability → better economic performance

process of cultural change

• formal statements eg mission statement

• slogans and sayings

• stories, legends, myths

• how leaders react to crises — sets tone for appropriate behaviour, how flexible values are

• role modelling, training, coaching

• physical design eg cubicle vs open plan office

• rewards, titles, promotions, bonuses

• organisational goals and performance criteria — challenging goals will encourage high performance

• measurable and controllable activities — tracking how well goals are being met

• organisational systems and procedures eg working remotely

• organisation

• organisational structure

• organisation chart

• organisation = two or more people consciously coordinating activities

• organisational structure = formal system for coordination involving who people report to and receive tasks from

  • shown by an organisation chart

    • vertical hierarchy = looking up and down shows who reports to whom

    • horizontal specialisation = looking side to side shows how areas of work are divided

common elements of organisations

• common purpose → unity

• coordinated effort ← acting on common purpose

• division of labour ← specialisation → greater efficiency

• hierarchy of authority (chain of command) → makes sure the right employee does the right work at the right time

span of control

• narrow/tall = less people

• wide/flat = more people

• depends on amount of hands on supervision required

• flat organisation = few levels with wide spans of control

• for efficiency: spans of control as wide as possible ← more action, less communication

authority, responsibility, delegation

• authority = rights inherent to a manager’s positions

• accountability = reporting back and having responsibility

• responsibility = obligation to complete tasks

• delegation = assigning tasks to others

• line position = managers make decisions and have people reporting to them

• staff position = staff personnel provide line managers with advice/recommendations/research

centralised vs decentralised authority

• centralised = important decisions made by higher level managers

• decentralised = important decisions made by middle-level and supervisory managers

organisational design

• aims to design optimal structures (accountability and responsibility) to execute strategies

4 main organisational structures (diagram)

simple structure

• small firms

  • authority in one person, flat hierarchy, little specialisation, not many rules

functional structure

• divided by specialties

  • very commonplace

divisional structure

• divided by purpose

  • small groups made of people with a wide range of specialties

  • based on same/similar products/services/customers/clients/regions

matrix structure

•  grid for chains of command (functional, divisional)

  • two structures shown by vertical and horizontal

horizontal design

• alternative: horizontal design = work on shared tasks, group members have different specialties ie diagonal lines

  • teams more likely to be temporary

  • seeks to improve collaboration

  • breaks down internal barriers

boundaryless organisation

• members connect online, collaborate on common tasks, a lot of contracting out

  • hollow structure (network structure) = central core makes decisions, main functions contracted out (cheaper/faster)

    • outsources processes

    • can also have different contractors in different countries — tax systems, labour laws etc

  • modular structure = firms obtain aspects of products from other firms ie some of the production is outsourced

    • outsources product

  • virtual structure = internet based collaboration for short term work, responds to exceptional market opportunities which are temporary

    • internet lowers (eliminates communication costs)

    • allows for quick responses → increases the amount of opportunities that can be realised

contingency design

• making the organisation best fit its environment

4 factors to consider when designing an organisation

• environment — mechanistic or organic

  • mechanistic = centralised authority, specific rules, close supervision, specialised tasks

  • organic = decentralised authority, few rules, shared tasks, respond quickly to unexpected tasks → adhocracies

• environment — differentiation or integration

  • differentiation = parts of the organisation disperse and fragment ← due to specialisation and division of labour — efficiency, EoS trade off

  • integration = tendency of parts to come together ← due to a common purpose

• stage in the life cycle of an organisation

  • birth stage = non-bureaucratic, few rules, few support staff

  • youth stage = pre-bureaucratic, growth and expansion, more support staff

  • midlife stage = bureaucratic, growth turns to stability, many rules, formalised structure

  • maturity stage = very bureaucratic, large, mechanistic, danger = lack of adaptability and innovation

• link between strategy and structure

  • structure should achieve goals ← strategy informs goals

resilience

•  ability to adapt to difficult experiences

  • mental, emotional, behavioural changes

  • develops when people can meet demands

• low resilience → fight/flight/freeze/fawn

• different levels of resilience → different responses to same working conditions

• resilience = capacity - load

  • managers can impact capacity and load → resources, delegation, prioritisation, realistic expectations

    • covid fatigue

values

• terminal

• instrumental

• convictions which determine an ideal way of being or means to achieve that way, preferable to the opposite way

  • tend to be relatively stable, can reflect personality, upbringing, identity

  • terminal values = describe preferred end state

  • instrumental values = ways of acting which help achieve terminal values

value system

• individual ranking of values based on their personal significance

personality-job fit theory

• match between personality type (1 of 6) and the job decides how much people like their job and how long they remain in it

person-organisation fit theory

• people and organisations need to have similar values

  • importance of online image showing this so that right people apply

• Hofstede’s framework for assessing cultures = 5 characteristics of cultures

• power distance — how much power is accepted and unequally distributed

  • high power distance = unequal distribution which is widely accepted

• individualism versus collectivism — whether people prefer to act alone or as groups

• masculinity vs femininity

  • high masculinity rating = distinct gender roles, favours masculine attributes eg control

  • high femininity rating = equality between genders

• uncertainty avoidance — how much a society tries to escape ambiguous and uncertain situations

• long term vs short term orientation

• implication: managers to consider values and personality when recruiting

components of moral compass

• values, convictions, ethical principles, religious beliefs, personal goals, self-related beliefs as well as behavioural scripts, societal laws, organizational rules such as school and work, and family behaviours.

  • sum of our experiences to date

whanaungatanga

• collectivism, sense of belonging

  • getting to know each other at work

  • overall strength of the team

manaakitanga

• caring for others’ mana, hospitality, integrity

  • acknowledging who and where stakeholders come from

  • kindness, coaching, active listening, walking the talk

rangatiratanga

• leadership, governance, self-determination

  • authority in an organisation

  • guardian stance toward resources used

  • providing staff agency when they do their work

kaitiakitanga

• guard taonga, includes sustainability, interconnectedness with environment

  • long term perspectives

  • environmental awareness

  • taking care of and building future generations’ assets

Māori values in business

• need to balance profit with stakeholder aspirations → achieve what Māori value ← derived from tikanga

  • tikanga in business context more fluid than formal/marae context

• more trust from better interpersonal relationships

• walking the talk in workplace = following tikanga → shows integrity

• whanaungatanga chooses collectivism over individualism

• manaakitanga: “On the marae it is demonstrated through each stage of the pōwhiri process - karanga, whaikōreo, hongi, hariru and kai.”

• arikitanga = highest mana/power

importance of values in an organisation

• individuals won’t necessarily buy in to an organisation’s values → organisations need to ensure individuals can express their values within the organisation’s values → connects individuals to the organisation more

wairuatanga

• spiritual well being

  • holistic view of a person

  • consider mihi whakatau, karakia

mōhiotanga

• sharing knowledge

māramatanga

• understanding

  • clarifying rules, procedures, tasks

tuakāna/tēina

• older/younger relationships

  • mentorships

tikanga

• what is correct

  • establishing rules and boundaries

  • reward adherence

hākari

celebratory feast

atuatanga

paying respect to the gods

mauri

•  life force, uniqueness

  • treating everything with respect

diversity and factors increasing it

• longer working life → more generational diversity AND more social change → greater differences between generations

  • boomers working longer → harder for gen x to get promotions

• more migration → more cultural diversity

  • most likely to be in service industries eg food preparation, maintenance, cleaning

• diversity = all the ways which make people different from one another

  • workforce diversity = workers have a broad range of qualities

diversity of perspective

• diversity of perspective = heterogenous team, members have different backgrounds and skills

inclusion

• inclusion = how much a team member feels valued and appreciated for their uniqueness

benefits of workplace diversity

• better use of employee talent

• better understanding of marketplace — employees reflect more customer segments

• more breadth of understanding in leadership positions ← no longer myopic

• greater quality of problem solving ← more perspectives

• less turnover → less associated costs

prejudice

• viewing differences as deficiencies

discrimination

• prejudice acted on, someone treated inequitably

stereotypes

• beliefs associated with particular groups, often negative, assume all group members have the same characteristics

stereotype threat

• shaken confidence as stereotypes about your group say you won’t succeed in said task

ethnocentrism

• one’s group is superior to others

monoculture

• only one way of doing things and one set of values is accepted

ethnorelativism

• all groups are equal

pluralism

environment accommodates various groups

glass ceiling

• unseen obstacle preventing women and minorities from achieving top management positions → ways for women/minorities to overcome (really??)

  • profit and loss experience (ie technical skills)

  • assertiveness

  • risk-taking

  • highlight achievements

opt out trend

•  voluntarily leaving the workforce — but how voluntary??

  • getting passed over for promotions → demotivation → leave workforce

  • Fortune survey of 103 women leaving executive jobs: main reason = corporate culture

female advantage

•  idea that women are more successful in leadership roles

  • women on average are more educated

  • better interpersonal skills ← which have become increasingly necessary

  • “research has found a correlation between balanced gender composition in companies…and higher organisational performance” p533

role of globalisation re diversity

• expatriates = those who live/work outside their own country

• MNCs: have to manage multiple cultures, learn norms in different countries

cultural competence + cycle

• effectively interacting with those in different cultures

1. Uncover diversity problems

2. Strengthen top management commitment

3. Choose solutions to fit a balanced strategy

4. Demand results and revisit goals

5. Maintain momentum to change the culture → back to step 1

• step 2: top management sets tone for whole organisation, allocate time and money to improving cultural competence

• step 3: factors to address education, enforcement and exposure

• step 4: likely to require qualitative and quantitative measures

• Responses to (improving/fostering) diversity

• enhancing structures and policies

  • about 60% of fortune 500 companies have chief diversity officers

• expanding recruitment efforts

  • targeted internship offers

  • affiliations with minority organisations

  • relationships with schools

• establishing mentor relationships

• increasing awareness of sexual harassment

• using multicultural teams

• good responses → better culture → more sustainable

• employees value proactive approach ← seems more genuine