1. Chapter Four Attitudes, Values and Ethics

2. Copyright © 2007 by Nelson, a division of Thomson Canada Limited2 Objectives After reading and studying this chapter, you should be able to: 1. Describe the importance of attitudes and emotions to behaviour in organizations. 2. Describe how organizational citizenship behaviour contributes to individual effectiveness. 3. Summarize why values are an important part of organizational behaviour. 4. Describe three ethical decision-making criteria, along with several explanations for the existence of ethical problems. 5. Describe what organizations can do to enhance ethical and socially responsible behaviour.

3. Copyright © 2007 by Nelson, a division of Thomson Canada Limited3 Attitudes An attitude is a predisposition to respond. An attitude is a predisposition to respond. Three components: Three components: Cognitive: knowledge of beliefs about the object Cognitive: knowledge of beliefs about the object Affective: emotions connected to the object Affective: emotions connected to the object Behavioural: how a person acts towards the object Behavioural: how a person acts towards the object

4. Copyright © 2007 by Nelson, a division of Thomson Canada Limited4 Cognitive Dissonance We desire consistency in attitudinal components. We desire consistency in attitudinal components. Inconsistency (e.g., acting in way that contradicts beliefs) creates internal conflict or dissonance. Inconsistency (e.g., acting in way that contradicts beliefs) creates internal conflict or dissonance. We search for ways to reduce the dissonance because it is uncomfortable. We search for ways to reduce the dissonance because it is uncomfortable.

5. Copyright © 2007 by Nelson, a division of Thomson Canada Limited5 Emotions in Workplace Emotion is a feeling underlying behaviour Emotion is a feeling underlying behaviour Emotions composed of: Emotions composed of: Internal physiological arousal Internal physiological arousal Cognitive appraisal Cognitive appraisal Expressive behaviour Expressive behaviour

6. Copyright © 2007 by Nelson, a division of Thomson Canada Limited6 Emotions in the Workplace Traditionally felt emotions had no place in workplace; rationality was all Traditionally felt emotions had no place in workplace; rationality was all Now recognize inevitable influence of emotions Now recognize inevitable influence of emotions Know positive emotions contribute to organizational health Know positive emotions contribute to organizational health

7. Copyright © 2007 by Nelson, a division of Thomson Canada Limited7 Emotions in the Workplace Management has challenge of dealing with emotions effectively: Management has challenge of dealing with emotions effectively: Creating friendly emotional climate Creating friendly emotional climate Using positive attitude as one of selection criteria Using positive attitude as one of selection criteria Managing own and others’ emotions Managing own and others’ emotions

8. Copyright © 2007 by Nelson, a division of Thomson Canada Limited8 Emotional Labour Process of regulating feelings and expressions to meet organizational goals Process of regulating feelings and expressions to meet organizational goals Surface acting Surface acting Deep acting Deep acting Work involved in “faking” emotions Work involved in “faking” emotions Mismatch between actual and expressed creates emotional dissonance Mismatch between actual and expressed creates emotional dissonance Associated with emotional exhaustion, dissatisfaction, cynicism Associated with emotional exhaustion, dissatisfaction, cynicism

9. Copyright © 2007 by Nelson, a division of Thomson Canada Limited9 Job Satisfaction Is the amount of pleasure or contentment associated with a job Is the amount of pleasure or contentment associated with a job Important attitude because of links to: Important attitude because of links to: Productivity (when job has people contact) Productivity (when job has people contact) Loyalty to company Loyalty to company Absenteeism, turnover Absenteeism, turnover Stress, burnout Stress, burnout Safety performance Safety performance Life satisfaction Life satisfaction

10. Copyright © 2007 by Nelson, a division of Thomson Canada Limited10 Exhibit 4-1: Issues that Influence Satisfaction Do I know what my boss expects of me? Do I know what my boss expects of me? Do I have what I need to do my work properly? Do I have what I need to do my work properly? Am I allowed to do what I do best every day? Am I allowed to do what I do best every day? Has anyone praised or recognized my work in the past week? Has anyone praised or recognized my work in the past week? Does anyone encourage my career growth? Does anyone encourage my career growth? Does my manager respect my opinion? Does my manager respect my opinion? Are my coworkers dedicated to producing quality work? Are my coworkers dedicated to producing quality work? Have I learned something new in the past year? Employees who answer “Yes” to all the questions are likely to stay with their firm for the long haul. Have I learned something new in the past year? Employees who answer “Yes” to all the questions are likely to stay with their firm for the long haul.

11. Copyright © 2007 by Nelson, a division of Thomson Canada Limited11 Organizational Citizenship Behaviour The willingness to work for the good of the company without the promise of a reward The willingness to work for the good of the company without the promise of a reward Composed of: Composed of: Conscientiousness Conscientiousness Altruism Altruism Civic virtue Civic virtue Courtesy Courtesy Sportsmanship Sportsmanship

12. Copyright © 2007 by Nelson, a division of Thomson Canada Limited12 Organizational Citizenship Behaviour (cont.) Affects: Affects: Extra-role behaviour Extra-role behaviour In-role behaviour In-role behaviour Voluntary turnover Voluntary turnover More likely: More likely: With certain personalities With certain personalities When organization seen as fair and just When organization seen as fair and just

13. Copyright © 2007 by Nelson, a division of Thomson Canada Limited13 Values Values refer to the importance attached to something Values refer to the importance attached to something Serve as guides to action Serve as guides to action Learned through modeling and communication from others Learned through modeling and communication from others Can be basis for conflict (e.g., issues re diversity) Can be basis for conflict (e.g., issues re diversity)

14. Copyright © 2007 by Nelson, a division of Thomson Canada Limited14 Exhibit 4-2:Value Stereotypes for Several Generations of Workers

15. Copyright © 2007 by Nelson, a division of Thomson Canada Limited15 Mesh between Individual and Organizational Values Performance likely to be higher if congruence between organizational and individual values Performance likely to be higher if congruence between organizational and individual values Person-role conflict is suffered when demands of organization clash with basic values of employee Person-role conflict is suffered when demands of organization clash with basic values of employee

16. Copyright © 2007 by Nelson, a division of Thomson Canada Limited16 Ethics Ethics are the set of moral choices based on beliefs of good/bad, right/wrong Ethics are the set of moral choices based on beliefs of good/bad, right/wrong Values converted into action Values converted into action

17. Copyright © 2007 by Nelson, a division of Thomson Canada Limited17 Ethical Decision-making Criteria Focus on consequences (utilitarianism) Focus on consequences (utilitarianism) Focus on duties, obligations & principles Focus on duties, obligations & principles Focus on integrity (virtue ethics) Focus on integrity (virtue ethics)

18. Copyright © 2007 by Nelson, a division of Thomson Canada Limited18 Major Causes of Ethical Problems Greed – desire to maximize self-gain at expense of others Greed – desire to maximize self-gain at expense of others Level of moral development: Level of moral development: Preconventional Preconventional Conventional Conventional Postconventional Postconventional Organizational atmosphere condoning unethical behaviour Organizational atmosphere condoning unethical behaviour

19. Copyright © 2007 by Nelson, a division of Thomson Canada Limited19 Major Causes of Ethical Problems (cont.) Pressure from higher management to achieve goals Pressure from higher management to achieve goals Strength of relationship Strength of relationship (more ethical towards each other in close relationship) (more ethical towards each other in close relationship)

20. Copyright © 2007 by Nelson, a division of Thomson Canada Limited20 Guide to Ethical Decision-making 1. Gather the facts 2. Define the ethical issues 3. Identify the affected parties 4. Identify the consequences 5. Identify the obligations 6. Consider your character & integrity 7. Think creatively about potential actions. 8. Check your intuition.

21. Copyright © 2007 by Nelson, a division of Thomson Canada Limited21 Social Responsibility Firms have an obligation to society beyond their economic obligations to owners and shareholders, and beyond those proscribed by law or contract Firms have an obligation to society beyond their economic obligations to owners and shareholders, and beyond those proscribed by law or contract

22. Copyright © 2007 by Nelson, a division of Thomson Canada Limited22 Organizational Approaches to Enhancing Ethical & Socially Responsible Behaviour Leadership by example Leadership by example Executives need to “walk the talk” Executives need to “walk the talk” Written codes of ethics Written codes of ethics Guidelines for behaviour Guidelines for behaviour Formal mechanisms Formal mechanisms Ethics committee Ethics committee

23. Copyright © 2007 by Nelson, a division of Thomson Canada Limited23 Organizational Approaches to Enhancing Ethical & Socially Responsible Behaviour (cont.) Accepting whistle blowers Accepting whistle blowers Those who disclose wrongdoing to those who can take action are often ostracized & humiliated Those who disclose wrongdoing to those who can take action are often ostracized & humiliated Need climate that accepts legitimate whistle blowing, careful follow-up and investigation Need climate that accepts legitimate whistle blowing, careful follow-up and investigation

24. Copyright © 2007 by Nelson, a division of Thomson Canada Limited24 Organizational Approaches to Enhancing Ethical & Socially Responsible Behaviour (cont.) Training Training Particularly important to train managerial workers about ethics Particularly important to train managerial workers about ethics Focus on ethical behaviour being morally right and good for business Focus on ethical behaviour being morally right and good for business Awareness of cross-cultural influences Awareness of cross-cultural influences E.g., bribes E.g., bribes

25. Copyright © 2007 by Nelson, a division of Thomson Canada Limited25 Relationship between Social Responsibility & Profits Works both ways: Works both ways: More profitable firms can better afford to invest in social responsibility initiatives More profitable firms can better afford to invest in social responsibility initiatives Social responsibility initiatives lead to more profit Social responsibility initiatives lead to more profit Virtuous circle Virtuous circle