Chapter 3

Contemporary Management: Attitudes, Values, Ethics, and Culture: The Manager as a Person
After studying this chapter, you should be able to:

Chapter Outline
•Enduring Characteristics: Personality Traits
  • ØThe Big Five Personality Traits
  • ØOther Personality Traits that Affect Managerial Behavior
•Values, Attitudes, and Moods and Emotions
  • ØValues: Terminal and Instrumental
  • ØAttitudes
  • ØMoods and Emotions
  • ØEmotional Intelligence
•Ethics and Stakeholders
  • ØWhich Behaviors Are Ethical
  • ØWhy Would Managers Behave Unethically Toward Other Stakeholders?
  • ØSources of an Organization’s Code of Ethics
•Organizational Culture
  • ØHow Managers Influence Organization Culture
  • ØEthical Organizational Cultures
  • ØSocial Responsibility
•Summary and Review
 

 

Personality Traits
•Personality Traits
  • ØEnduring tendencies to feel, think, and act in certain ways
  • ØCharacteristics that influence how people think, feel and behave on and off the job
  • ØThe personalities of managers account for the different approaches that managers adopt to management.
  • ØTraits are viewed as a continuum (from high to low) along which individuals fall.
 

 

 

The Big Five Personality Traits  fig 3-1

 

Other Personality Traits…
•Internal Locus of Control
  • ØThe tendency to locate responsibility for one’s own fate within oneself
•         People believe they are responsible for their fate and see their actions as important to achieving goals.

 

•External Locus of Control
  • ØThe tendency to locate responsibility for one’s fate within outside forces and to believe that one’s own behavior has little impact on outcomes
•        People believe external forces decide their fate and their actions make little difference.

 

•Self-Esteem
Ø      The degree to which people feel good about themselves and their abilities
  • •High self-esteem causes a person to feel competent, and capable.
  • •Persons with low self-esteem have poor opinions of themselves and their abilities.
•Need for Achievement
Ø      The extent to which an individual has a strong desire to perform challenging tasks well and meet personal standards for excellence
 
•Need for Affiliation
Ø      The extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having other people get along
•

Need for Power

Ø      The extent to which an individual desires to control or influence others
 

 

 

 

Values, Attitudes, and
Moods and Emotions
  • •Values
Ø       Ø Describe what managers try to achieve through work and how they think they should behave
  • •Attitudes
Ø        Ø  Capture managers’ thoughts and feelings about their specific jobs and organizations.
  • •Moods and Emotions
Ø        Ø   Encompass how managers actually feel when they are managing
 

 

 

Terminal and Instrumental Values fig 3-3

 

Emotional Intelligence
•

 

Emotional Intelligence

Ø     Ø   The ability to understand and manage one’s own moods and emotions and the moods and emotions of other people.
  • •Assists managers in coping with their own emotions.
  • •Helps managers carry out their interpersonal roles of figurehead, leader, and liaison.
 

 

 

Ethics and Stakeholders
•

 

Organizational Stakeholders

Ø     Ø    Shareholders,  employees, customers, suppliers, and others who have an interest, claim, or stake in an organization and in what it does
  • •Each group of stakeholders wants a different outcome and managers must work to satisfy as many as possible.
  • •Managers have the responsibility to decide which goals an organization should pursue to most benefit stakeholders—decisions that benefit some stakeholder groups at the expense of others.
•Ethics
  • ØMoral principles or beliefs about what is right or wrong
  • ØEthics guide managers in their dealings with stakeholders and others when the best course of action is unclear.
  • ØManagers often experience an ethical dilemma in choosing between the conflicting interests of stakeholders.
 

 

 

Ethical versus Unethical Decisions
•Ethical Decision
  • ØA decision that is reasonable or typical stakeholders would find acceptable because it aids stakeholders, the organization, or society.
•Unethical Decision
  • ØA decision that a manager would prefer to disguise or hide from other people because it enables the company or a particular individual to gain at the expense of society or other stakeholders.
 

 

 

Sources of An Organization’s Code of Ethics  fig 3-7

 

 

Organizational Culture
•Organizational Culture
Ø     Ø   The set of shared values, norms, standards for behavior, and shared expectations that influence the way in which individuals, groups, and teams interact with each other and cooperate to achieve organizational goals.
•

Attraction-Selection-Attrition Framework

Ø    Ø    A model that explains how personality may influence organizational culture.
  • •Founders of firms tend to hire employees whose personalities that are to their own, which may or may not benefit the organization over the long-term.
 

 

 

 

Ethical Organizational Cultures
•Components of an Ethical Culture
  • ØEthical values and norms are a central component of the organizational culture
  • ØA code of ethics guides decisions when ethical decisions arise.
  • ØManagers serve as ethical role models
•Ethics Ombudsman
  • ØAn ethics officer who monitors an organization’s practices and procedures to ensure they are ethical.

 

 

 

Social Responsibility
•Social Responsibility
  • ØA manager’s duty or obligation  make decisions that promote the welfare and well-being of stakeholders and society as a whole.
 

 

Approaches to Social Responsibility

fig 3-8

 

 

Web Links

 
Medtronic
 
( http://www.medtronic.com )
Values of the Overseas Chinese
 
( http://chineseculture.about.com )
American Express
 
( http://www.americanexpress.com )
Firestone
 
( http://www.bridgestone-firestone.com )
Ford
 
( http://www.ford.com )
Southwest Airlines
 
( http://www.southwest.com )
Johnson & Johnson
 
( http://www.jj.com )
Merck & Co.
 
( http://www.merck.com )
Abbott Laboratories, Inc.
 
( http://www.abbott.com )
Public Citizen--national non-profit public interest organization
 
( http://www.citizen.org )
Occupational Outlook Quarterly
 
( http://stats.bls.gov/opub/ooq/ooqhome.htm )

 

Chapter Quiz             

Key Term Flashcards

PowerPoint Presentation Chapter 3 (317.0K)           Our Server

Chapter Outline

  1. Enduring Characteristics: Personality Traits


      Personality traits are tendencies to feel, think, and act in certain ways.
       

    1. The Big Five Personality Traits
      1. Extraversion - the tendency to experience positive emotions and moods and to feel good about oneself.
      2. Negative affectivity - the tendency to experience negative emotions and moods.
      3. Agreeableness - the tendency to get along well with others.
      4. Conscientiousness - the tendency to be careful and persevering.
      5. Openness to experience - the tendency to be original and to take risks.
    2. Other personality traits that affect managerial behavior
      1. Locus of control
        1. Internal locus - people who believe that they are responsible for their own fate
        2. External locus - people who believe that outside forces are responsible for what happens to them
      2. Self-esteem - the degree to which the person feels good about himself and his abilities
      3. Need for achievement - the desire to perform challenging tasks well
      4. Need for affiliation - concern for good interpersonal relations and being liked
      5. Need for power - desire to control others


     

  2. Values, Attitudes, and Moods and Emotions
     
    1. Values: Terminal and Instrumental
      1. Terminal value - a personal conviction about lifelong goals
      2. Instrumental value - a personal conviction about desired ways to behave
    2. Attitudes - a collection of feelings and beliefs
      1. Job satisfaction - feelings and beliefs that managers have about their current jobs
      2. Organizational commitment - feelings and beliefs managers have about their organization
    3. Moods and emotions
      1. Mood - a feeling or state of mind
      2. Emotions - more intense feelings linked to whatever caused the feelings
      3. Emotional intelligence - the ability to understand one's own emotions and the emotions of others


     

  3. Ethics and Stakeholders


      Ethics are moral principles about what is right or wrong. Stakeholders include shareholders, managers, customers, suppliers that have an interest in the organization.
       

    1. What behaviors are ethical?
    2. Why should managers behave ethically?
    3. Sources of an organization's code of ethics
      1. Societal ethics - standards that govern how people in a society deal with one another
      2. Professional ethics - standards that govern the members of a profession in terms of how they should behave
      3. Individual ethics - personal values and attitudes that govern how individuals interact with others
  4. Organizational culture - the shared values, norms, standards of behavior, and expectations that influence the ways in which people interact with each other.
    1. How managers influence organizational culture
    2. Schneider's attraction-selection-attrition framework - founders of new companies tend to hire employees with similar personalities
    3. Ethical organizational cultures
    4. Social responsibility

Chapter Summary

PERSONALITY TRAITS Personality traits are enduring tendencies to feel, think, and act in certain ways. The Big Five general traits are extraversion, negative affectivity, agreeableness, conscientiousness, and openness to experience. Other personality traits that affect managerial behavior are locus of control, self-esteem, and the needs for achievement, affiliation, and power.

VALUES, ATTITUDES, AND MOODS AND EMOTIONS A terminal value is a personal conviction about lifelong goals or objectives; an instrumental value is a personal conviction about modes of conduct. Terminal and instrumental values have an impact on what managers try to achieve in their organization and the kinds of behaviors they engage in. An attitude is a collection of feelings and beliefs. Two attitudes important for understanding managerial behaviors include job satisfaction (the collection of feelings and beliefs that managers have about their jobs) and organizational commitment (the collection of feelings and beliefs that managers have about their organization). A mood is a feeling or state of mind; emotions are more intense feelings. Managers' moods, or how they feel at work on a day-to-day basis, have the potential to impact not only their own behavior and effectiveness but also their subordinates. Emotional intelligence is ability to understand and manage one's own and other people's moods and emotions.

ETHICS AND STAKEHOLDERS Ethics are moral principles or beliefs about what is right or wrong. These beliefs guide people in their dealings with other individuals and groups (stakeholders) and provide a basis for deciding whether behavior is right and proper. Many organizations have a formal code of ethics derived primarily from societal ethics, professional ethics, and the individual ethics of the organization's top managers. Managers can apply ethical standards to help themselves decide on the proper way to behave toward organizational stakeholders.

ORGANIZATIONAL CULTURE Organizational culture is the set of values, norms, standards for behavior, and shared expectations that influence the ways in which individuals, groups, and teams interact with each other and cooperate to achieve organizational goals. Founders of new organizations and managers play an important role in creating and maintaining organizational cultures. Ethical organizational cultures are those in which ethical values and norms are emphasized. Ethical organizational cultures can help organizations and their members behave in a socially responsible manner.

Explore the World Wide...
Find the website of a company that is undertaking initiatives to enhance levels of job satisfaction or organizational commitment among employees. What are those initiatives? Do you think they will be successful in promoting job satisfaction or organizational commitment? Why or why not?