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Prepared by Argie Butler, Texas A&M University ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly.

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Presentation on theme: "Prepared by Argie Butler, Texas A&M University ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly."— Presentation transcript:

1 Prepared by Argie Butler, Texas A&M University ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 th Edition Don Hellriegel & John W. Slocum, Jr.

2 Prepared by Argie Butler, Texas A&M University ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2

3 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint Describe the stages of moral and ethical development 2.Explain and apply the core concepts used by individuals and organizations to make ethical decisions 3.Describe some ethics-based initiatives for fostering diversity in organizations 4.Explain the nature of stakeholder responsibility and its ethical basis

4 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.2 Learning Insights  Proactively transformed an ethics scandal  Emphasizes importance of transparency  Advanced and ensured outstanding ethics and governance practices

5 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.3  Stages through which individuals evolve, ranging from the lowest stage (obedience and punishment orientation) to the highest stage (universal ethical principles)  No assumption that everyone progresses through all stages

6 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.4 Obedience & Punishment Instrumental Interpersonal Law & Order Social Contract Universal Principles throughAdulthoodChildhood

7 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.5 The mental capacity to determine how universal human principles that cut across the globe should be applied to personal values, goals, and actions. The moral principles in moral intelligence include:  Integrity: acting consistently with principles, values, and belief, telling the truth; standing up for what is right; and keeping promises  Responsibility: taking responsibility for personal choices; admitting mistakes and failures; embracing responsibility for several others  Compassion: actively caring about others  Forgiveness: letting go of one’s own mistakes; and letting go of others’ mistakes

8 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.6 Learning Insights  Results are important, equally important are the means to achieve results  Ethical issues are serious  Employees have ethical obligations

9 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.7 Ethics-Based Principles Benefits and Costs Determination of Rights Concern for Affected Individuals Ethical Intensity

10 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.8 plus Social Consensus Concentration of Effect Proximity Temporal Immediacy plus Magnitude of Consequence plus Probability of Effect plus

11 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.9  Magnitude of Consequences: the harm or benefits accruing to individuals affected by a decision or behavior  Probability of Effect: the likelihood that if a decision is implemented it will lead to the harm or benefit predicted  Social Consensus: the amount of public agreement that a proposed decision is bad or good

12 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.10  Temporal Immediacy: the length of time that elapses between making a decision and when the consequences of that decision are known  Proximity: the sense of closeness (social, cultural, psychological, or physical) that the decision maker has for victims or beneficiaries of the decision  Concentration of effect: the inverse function of the number of people affected by a decision

13 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.11  Hedonist principle: Do whatever is in your own self- interest  Might-equals-right principle: Do whatever you are powerful enough to impose on others without respect to socially acceptable behaviors  Organization interests principle: Act on the basis of what is good for the organization

14 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.12  Means-end principle: Act on the basis of whether some overall good justifies any moral transgression  Utilitarian principle: Act on the basis of whether the harm from a decision is outweighed by the good in it— that is, the greatest good for the greatest number  Professional standards principle: Act on the basis of whether the decision can be explained before a group of your peers

15 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.13  Disclosure principle: Act on the basis of how the general public would likely respond to the disclosure of the rationale and facts related to the decision  Distributive justice principle: Act on the basis of treating an individual or group equitably rather than on arbitrarily defined characteristics (e.g., gender, race, age)  Golden rule principle: Act on the basis of placing yourself in the position of someone affected by the decision and try to determine how that person would feel

16 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.14 Our system of capitalism is built on investor trust— trust that corporate leaders and boards of directors will be good stewards of their investments and provide investors with a fair return. There is no doubt that some leaders of corporations have violated that trust. William George, Former Chairman and CEO, Medtronic, and Author, True North: Discover Your Authentic Leadership

17 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.15  Leaders must commit to and model ethical behaviors and decisions  Develop a code of ethics and follow it  Have procedures for organization members to report unethical behavior, such as whistle-blowing policy

18 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.16  Involve leaders and employees in identifying and solving ethical problems  Include ethics in performance appraisal  Publicize the organization’s ethical orientation

19 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.17  Benefits—whatever a party considers desirable  Costs—whatever a party considers undesirable  Requires a determination of the interests and values of those affected by the decision(s)  One party’s benefits in a decision may create or be perceived to create costs for one or more other parties  Conflicting assessments can lead to different interpretations of ethical responsibilities

20 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.18  Complex and continually changing  One dimension focuses on who is entitled to benefits or participation in decisions  Union-management negotiations frequently involve conflicts and dilemmas over management’s rights to hire, promote, fire, reassign union employees, and outsource work

21 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.19  Procedural justice: the perceived fairness of the rules, guidelines, and processes for making decisions  Interactional Justice: the quality of interpersonal treatment individuals receive during the use of organizational procedures

22 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.20  Managers should be given specific and clear instructions on procedures  Managers should be trained in how to administer the review  Results should be discussed with employees  Employee participation should be allowed in the review process (e.g., setting goals, providing input on performance)  The review should be developmental (e.g., indicate how to improve)

23 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.21

24 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.22  People with different perspectives and approaches need to be valued  Recognize both the learning opportunities and the challenges of a culturally diverse workforce  Create an expectation of high standards of performance and ethics from everyone  Stimulate personal development and support openness to ideas  Make workers feel valued

25 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.23  Mature: born from 1925 through 1944  Baby boomers: born from 1945 through 1964  Generation X: born from 1965 through 1981  Generation Y: born from 1982 through 2000

26 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.24  All generations attach importance to family, integrity, achievement, love, and competence  Everyone wants respect; they just define it differently  Trust matters  Leaders are wanted who are credible and trustworthy  Organizational politics are seen as a common problem  No one really likes change, unless it benefits them

27 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.25  Generation Y respondents think that 22 percent of their Gen Y coworkers as a group are ethical  Generation X respondents think that 28 percent of Gen Y coworkers as a group are ethical  Baby boomer respondents think that 16 percent of Gen Y coworkers as a group are ethical Is this due to small numbers bias: The tendency to view a few incidents, cases, or experiences with individuals as representative of a larger population

28 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.26  Harassment: verbal or physical conduct that denigrates or shows hostility or aversion toward an individual because of that person’s race, skin color, religion, gender, national origin, age, or disability  Impacts of Harassment Creates an intimidating, hostile, or offensive work environment Unreasonably interferes with an individual’s work performance Adversely affects an individual’s employment opportunities

29 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.27  Sexual harassment: unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature  Quid pro quo harassment: submission to harassment is used as the basis for employment decisions  Hostile work environment: occurs when an employee is subjected to comments of a sexual nature, offensive sexual materials, or unwelcome physical contact as a regular part of the work environment

30 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.28  Define harassment  Prohibition statement  Complaint procedure  Disciplinary measures  Protection against retaliation

31 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.29  Verbal harassment  Physical harassment  Visual harassment  Sexual favors

32 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.30  Understand and perhaps change key aspects of the organization’s culture  Understand and perhaps change key aspects of the ethical dimensions of the organization culture, leadership that models ethical behaviors, and formal policies and mechanisms to ensure ethical decisions  Portfolio of diversity initiatives, diversity policies, and supportive diversity practices

33 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.31 Learning Insights  Top leaders must set tone and expectations for ethical conduct and diversity  Diversity means embracing it as part of company culture, viewing it as integral to the business, and rewarding it  Develop diversity strategy with measurable components and feedback indicators

34 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.32  Stakeholder responsibility: leaders and other employees have obligations to identifiable groups that are affected by or can affect the achievement of an organization’s goals  Stakeholders: individuals or groups that have interests, rights, or ownership in an organization and its activities

35 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.33 EMPLOYEES  Pay and benefits  Safety and health  Rights at work/global labor standards  Fair/ethical treatment in hiring, reviews, promotion, and related areas SHAREHOLDERS  Demands for efficiency/profitability  Viability (sustainability)  Growth of investment  Ethical disclosure of financial information

36 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.34 CUSTOMERS  Competitive prices  Quality and safe products  Respect for customers’ privacy  Concern for environment  Truthful/ethical advertising and sales practices SUPPLIERS  Meet commitments  Repeat business  Fair trade practices/ethical treatment

37 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.35 Learning Insights  First responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services  Responsible to employees and communities  Responsible to stockholders

38 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.36  Pattern of resource use that strives to meet current human needs without compromising the ability of future generations to meet their own needs  United Nations Division for Sustainable Development identifies 96 core indicators of sustainable development within a framework that contains 14 themes

39 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.37  Disclosure  Communication and engagement  Proactive management  Creating shareholder value

40 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint Go to In the search box, type in “corporate governance guidelines.” Open the document titled “Corporate Governance Guidelines at Xerox.” Identify at least two of the specific ethical principles that are reflected in this document. What is a specific provision that illustrates each of the principles identified?www.xerox.com 2.Review the Learning from Experience feature on Anne Mulcahy, chairman and former CEO of Xerox, and other discussions of her leadership in this chapter. How would you evaluate her in relation to each of the six attributes of the diversity competency presented in Chapter 1? For each attribute on which Mulcahy is evaluated, identify the specific statement(s) about her that serve as a basis of your assessment.

41 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint Think of an organization in which you have been employed (or are currently employed). What are your assessments of the stage of moral development and moral intelligence of the manager for whom you worked? What specific examples of this manager’s behaviors and decisions serve as the basis for your assessments? 4.What are the similarities and differences between the organization interests principle and the utilitarian principle? 5.What are the similarities and differences between the professional standards principle and the distributive justice principle?

42 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint From your personal perspective, what is your assessment of the ethical intensity of the grading system and practices used by an instructor in a course that you have completed? Your assessment should include an assessment of each of the six components of ethical intensity. 7.What specific aspects of procedural justice are suggested in the Change Competency feature on James McNerney, CEO of Boeing? 8.How would you assess Generation Y individuals as a group with respect to their general pattern of ethical behaviors and decision making within the work environment? Explain. If a generalization is possible, what is your overall assessment? Explain.

43 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint How did (or does) an organization for which you have worked (or do work) compare with the policies, practices, and goals of Verizon’s workplace diversity as presented in the Diversity Competency feature? Give specific comparisons of similarities and/or differences. 10.What specific ethical principles for guiding decisions and actions are illustrated in the Ethics Competency feature titled “Johnson & Johnson’s Stakeholder Ethics and Principles”? You should relate specific statements in the code to specific ethical concepts. 11.Sustainable development is discussed as an application of stakeholder responsibility. Think of an organization for which you have worked (or currently work). In what ways did it implement or fail to implement sustainable development initiatives?

44 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.42  Ethical Incident #1 1.What ethical principle or principles reflect your decisions? 2.How would you assess the ethical intensity in this situation?  Ethical Incident #2 1.What ethical principle or principles reflect your decision? 2.How would you evaluate the ethical intensity in this situation?

45 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint 2.Chapter 2: PowerPoint 2.43  Ethical Incident #3 1.What ethical principle or principles reflect your decision? 2.How would you assess the ethical intensity in this situation?  Ethical Incident #4 1.What ethical principle or principles reflect your decision? 2.How would you assess the ethical intensity in this situation?

46 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint Critics of CRAs assert that they are too intrusive, ineffective, and unnecessary and that they can cause as many problems as they solve. Identify the specific reasons and examples that might justify these criticisms. 2.How would you assess the ethical intensity of CRAs from the perspective of the employer? From the perspective of the employees in a consensual relationship?

47 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: PowerPoint What specific ethical principles might be used to justify the use of CRAs? Explain. 4.What ethical principles might be used by employees in consensual relationships to oppose signing such an agreement? Explain. 5.Do you personally favor or oppose the use of CRAs in the workplace? Explain.


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