Management Exam 3

national culture

frameworks for classifying behavior patterns can help business people who work in different countries
- individualism vs collectivism
- power distance
- uncertainty avoidance
- tightness-looseness

individualism vs collectivism

assesses whether a culture values individual achievement and self-interest versus collective goals and harmony

power distance

the power inequality between superiors and subordinates

uncertainty avoidance

how members of a society respond to uncertainty or ambiguity

tightness vs looseness

degree to which a society enforces rules and punishes deviance

individualism

sense of self separate from others, value individual achievement, freedom, and competition

collectivism

self is interdependent with others, value group harmony, cohesiveness, consensus, and cooperation, avoid public confrontations

low power distance

expect managers to empower employees and draw on their expertise, social welfare programs reduce power gaps

high power distance

expect social inequality and that managers make decisions and tell employees what to do, large gap between rich and poor, respect for/fear of superiors

high uncertainty avoidance

need for structure and clear view, more formal rules, security is important

low uncertainty avoidance

comfortable with ambiguity, risks, and chaos, few rules, innovation and achievement are important

loose culture

characterized by flexibility, informal communication, and a relaxed approach to rules and procedures. It encourages creativity and adaptability among employees

tight culture

characterized by strict norms, formal communication, and a strong emphasis on rules and procedures. It prioritizes consistency and order in organizational behavior

ethical (or moral) relativism

there are no ethical standards that are absolutely true and that apply or should be applied to companies and people of all societies (when in Rome do as the Romans do)

lassez-faire economy

an economic system where transactions between private parties are free from government intervention, allowing for minimal regulation and control

John Maynard Keynes

free markets alone are not necessarily the most efficient means for coordinating the use of society’s resources

Adam Smith

the father of modern economics and a proponent of laissez-faire economics

socialism

wealth and power are shared and distributed evenly based on the amount of work expended in production

social democracy

allows private ownership of property and also features a large government

multinational corporations (MNCs)

public companies that operate on a global scale

ethical debates of multinational corporations

• transfer jobs overseas where wage rates are lower

• exploit natural resources

• exploit labor markets of host countries

• create unfair competition

United Nations global compact

a set of 10 principles that promote human rights, sustainability, and the eradication of corruption

global ethics issues

• bribery

• antitrust activity

• healthcare

• labor and right to work

• compensation

bribery

more acceptable in some countries, the Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act work to address bribery

antitrust activity

the anticompetitive practices create high barriers of entry for competitors, the Sherman Antitrust Act (1890) works to break this up

healthcare issues

factors such as access, patents, and global fraud are considered

labor and right to work issues

issues such as gender pay inequality and the right to join trade unions are considered

compensation issues

is the minimum wage a livable wage, what is executive compensation in comparison to workers?

leadership

the ability or authority to guide and direct others towards a goal

normative myopia

when managers overlook or stifle the importance of core values in their business decisions, results in ethical blindness

ethical blindness

propensity to rationalize an unethical action or turn a blind eye to it

ethical leadership influences

• situational influences

• individual characteristics

• moderating influences

situational influences

• role modeling

• ethical context

individual characteristics

• agreeableness

• conscientiousness

• neuroticism

• machiavellianism

• moral reasoning

• locus of control

moderating influences

• ethical context * moral intensity

• ethical context * self monitoring

• need for power * inhibition

• moral reasoning * moral utilization

benefits of ethical leadership

• positive impact on organizational culture

• higher employee satisfaction and commitment

• strong relationships with external stakeholders

• strong impact on long-term market firm valuation

psychology of power

• group participation and influence

• confidence and action

• social perception

• perspectives not taken

power

the influence leaders and managers have over the behavior and decisions of subordinates

power bases

• reward power

• coercive power

• legitimate power

• expert power

• referent power

power stratification and hierarchy

advantages:
- reduce conflict
- increase efficiency
- improve coordination

problems:
- emerge easily
- self-perpetuating
- justified by stereotypes

the peril of power without status

what makes a leader

emotional intelligence, twice as important as technical skills and cognitive abilities for jobs at all levels

emotional intelligence

the ability to manage oneself and one’s relationships with others, factors:
- self-awareness
- self-regulation
- motivation
- empathy
- social skills

self-awareness

having a deep understanding of one’s emotions, needs, strengths, weaknesses, values, and goals

self-regulation

ability to control or redirect disruptive impulses and moods

motivation

work for reasons beyond money or status, pursue goals with persistence

empathy

ability to understand the emotional make-up of people

social skills

proficiency in managing relationships and networks

leadership styles

• coercive

• authoritative/visionary

• affiliative

• democratic

• pacesetting

• coaching

contingency theory of leadership

a leader is effective when their leadership style fits the situation

coercive style

“do what I say”
leads by demanding immediate compliance
most effective in emergency situations
creates resonance by reducing ambiguity

authoritative (visionary) style

“come with me”
most effective when change requires a new vision
creates resonance by moving people towards a shared dream

affiliative style

“people come first”
most effective when healing broken organizations
creates resonance by connecting people to each other

democratic style

“what do you think”
leads through building consensus and participation
most effective when you need buy-in
creates resonance by valuing input and increasing participation

pacesetting style

“do as I do, now”
leads by setting high standards for performance
most effective when getting quick results from highly motivated and competent people
creates resonance meeting challenging and exciting goals

coaching style

“try this”
leads by developing people for the future
most effective when helping employees to improve performance and develop long-term strengths
creates resonance by developing others to fulfill individual and organization needs

leader-member exchange theory

leaders form unique relationships with followers through social interactions, leaders who have positive and respectful relationships with employees can increase job satisfaction and commitment to the firm

leader-follower congruence

When leaders and followers share the same vision, ethical expectations, and objectives for the company

ethical business conflicts

when there are two or more positions on a decision that conflicts with organizational goals

conflict management styles

• competing

• avoiding

• collaborating

• accommodating

• compromising

competing style

high assertiveness, low cooperativeness

avoiding style

low assertiveness, low cooperativeness

collaborating style

high assertiveness, high cooperativeness

accommodating style

low assertiveness, high cooperativeness

compromising style

medium assertiveness, medium cooperativeness

the RADAR model

recognize, avoid, discover, answer, and recover

recognize (RADAR)

recognize ethical issues

avoid (RADAR)

avoid misconduct when possible

discover (RADAR)

discover ethical risk areas

answer (RADAR)

answer stakeholders concerns when an ethical issue comes to light

recover (RADAR)

recover from a misconduct disaster

kakkar and sivanathan

individuals prefer dominant leaders rather than prestige leaders both locally (within towns and cities) and at the national level when faced with the situational threat of economic uncertainty

gender and leadership stereotypes

for women to emerge as leaders, they must display the traits commonly associated with leadership, however when women display the traits associated with leadership they suffer another set of consequences

technology disruption

when innovation replaces existing systems and habits

artificial intelligence

allows machines to learn and perform tasks that typically require human intelligence

AI benefits and risks

benefits:
- eliminates repetitive tasks

risks:
- unintended bias
- implementation issues
- data issues

big data

large volumes of structured and unstructured data that need to be transmitted at very fast speeds

big data benefits and risks

benefit: can inform business strategies

risk: concerns for consumer privacy

drones

unmanned aerial devices that can be used to take aerial images, make deliveries, and collect environmental data

drones benefits and risks

benefit: reduce risks to employee health and safety

risk: consumer privacy concerns

robotics

can be programmed to perform humanlike actions and carry out custom tasks

robotics benefits and risks

benefit: can protect employee well-being

risk: safety of the robotics and job loss

privacy issue

data protection, issues such as cookie use and employee privacy, acts like the General Data Protection Regulation (GDPR) work to address these issues

surveillance

tools include cameras, beacons, biometric technology (facial recognition), these tools have racial bias

intellectual property

intangible ideas and creative materials, protections include copyright, trademark, and patent protection

cybercrime

committing crimes via technology, include malware and fraud

the digital divide

the varying levels of access to technology across social, geographical, and geopolitical groups

manipulation of behavior

the use of information to manipulate behavior, online and offline, in a way that undermines autonomous rational choice

biotechnology price inequality

biotechnologies often cost too much to be beneficial to the masses (childhood genetic testing)

chief privacy officer (CPO)

an executive responsible for developing and implementing policies and procedures related to privacy protection, involves technology assessments