Chapter Outline Enduring Characteristics: Personality Traits The Big Five Personality Traits Other Personality Traits that Affect Managerial Behavior Values, Attitudes, and Moods and Emotions Values: Terminal and Instrumental Attitudes Moods and Emotions Emotional Intelligence © Copyright McGraw-Hill. All rights reserved.

Chapter Outline (cont’d) Ethics and Stakeholders Which Behaviors Are Ethical Why Would Managers Behave Unethically Toward Other Stakeholders? Sources of an Organization’s Code of Ethics Organizational Culture How Managers Influence Organization Culture Ethical Organizational Cultures Social Responsibility Summary and Review © Copyright McGraw-Hill. All rights reserved.

Personality Traits Personality Traits Enduring tendencies to feel, think, and act in certain ways Characteristics that influence how people think, feel and behave on and off the job The personalities of managers account for the different approaches that managers adopt to management. Traits are viewed as a continuum (from high to low) along which individuals fall. © Copyright McGraw-Hill. All rights reserved.

The Big Five Personality Traits © Copyright McGraw-Hill. All rights reserved. Source: Figure 3.1

Other Personality Traits… Internal Locus of Control The 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 The 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. © Copyright McGraw-Hill. All rights reserved.

Other Personality Traits… (cont’d) Self-Esteem 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 The extent to which an individual has a strong desire to perform challenging tasks well and meet personal standards for excellence © Copyright McGraw-Hill. All rights reserved.

Other Personality Traits… (cont’d) Need for Affiliation 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 The extent to which an individual desires to control or influence others © Copyright McGraw-Hill. All rights reserved.

Values, Attitudes, and Moods and Emotions Describe what managers try to achieve through work and how they think they should behave Attitudes Capture managers’ thoughts and feelings about their specific jobs and organizations. Moods and Emotions Encompass how managers actually feel when they are managing © Copyright McGraw-Hill. All rights reserved.

Terminal and Instrumental Values Source: Rokeach, The Nature of Human Values (New York: Free Press, 1973). Figure 3.3 © Copyright McGraw-Hill. All rights reserved.

Emotional Intelligence 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. © Copyright McGraw-Hill. All rights reserved.

Ethics and Stakeholders Organizational Stakeholders 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. © Copyright McGraw-Hill. All rights reserved.

Ethics and Stakeholders (cont’d) Moral principles or beliefs about what is right or wrong Ethics guide managers in their dealings with stakeholders and others when the best course of action is unclear. Managers often experience an ethical dilemma in choosing between the conflicting interests of stakeholders. © Copyright McGraw-Hill. All rights reserved.

Ethical versus Unethical Decisions A decision that is reasonable or typical stakeholders would find acceptable because it aids stakeholders, the organization, or society. Unethical Decision A 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. © Copyright McGraw-Hill. All rights reserved.

Sources of An Organization’s Code of Ethics © Copyright McGraw-Hill. All rights reserved. Figure 3.7

Organizational Culture 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 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. © Copyright McGraw-Hill. All rights reserved.

Ethical Organizational Cultures Components of an Ethical Culture Ethical values and norms are a central component of the organizational culture A code of ethics guides decisions when ethical decisions arise. Managers serve as ethical role models Ethics Ombudsman An ethics officer who monitors an organization’s practices and procedures to ensure they are ethical. © Copyright McGraw-Hill. All rights reserved.

Social Responsibility A manager’s duty or obligation make decisions that promote the welfare and well-being of stakeholders and society as a whole. © Copyright McGraw-Hill. All rights reserved.

Approaches to Social Responsibility © Copyright McGraw-Hill. All rights reserved. Source: Figure 3.8