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Business Ethics Chapter 7
Terms in this set (21)
What does Differential Association refer to?
Differential association refers to the idea that people learn ethical or unethical be havior while interacting with others who are part of their role-sets or belong to other intimate personal groups
What are the 5 power bases that allow a person to influence another?
(1) reward power,
(2) coercive power,
(3) legitimate power,
(4) expert power, and
(5) referent power.
These five bases of power can be used to motivate individuals either ethically or unethically.
Describe Reward Power?
Reward power refers to a person's ability to influence the behavior of others by offering them something desirable. Typical rewards might be money, status, or promotion.
Describe COERCIVE POWER
Coercive power is essentially the opposite of reward power. Instead of rewarding a person for doing something, coercive power penalizes actions or behavior.
Describe Legitimate power
Legitimate power stems from the belief that a certain person has the right to exert influence and that certain others have an obligation to accept it.
Describe Expert power
Expert power is derived from a person's knowledge (or the perception that the person possesses knowledge). Expert power usually stems from a superior's credibility with subordinates.
Describe Referent power
Referent power may exist when one person perceives that his or her goals or objectives are similar to another's. The second person may attempt to influence the first to take actions that will lead both to achieve their objectives.
What makes a Centralized Organization
In a centralized organization, decision-making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels. Responsibility, both internal and external, rests with top-level managers. This structure is especially suited for organizations that make high-risk decisions and whose lower-level managers are not highly skilled in decision making.
What makes a Decentralized Organization
In a decentralized organization, decision-making authority is delegated as far down the chain of command as possible. Such organizations have relatively few formal rules, and coordination and control are usually informal and personal. They focus in stead on increasing the flow of information. As a result, one of the main strengths of decentralized organizations is their adaptability and early recognition of external change
What are the two main types of Groups?
Two main categories of groups affect ethical behavior in business. A formal group is defined as an assembly of individuals that has an organized structure accepted explicitly by the group. An informal group is defined as two or more individuals with a common interest but without an explicit organizational structure.
What are Group Norms?
Group norms are standards of behavior that groups expect of their members. Just as corporate culture establishes behavior guidelines for an organization's members, so group norms help define acceptable and unacceptable behavior within a group. In particular, group norms define the limit allowed on deviations from group expectations.
1. Decentralized organizations tend to put the blame for unethical behavior on lower-level personnel.
YES or NO
No. That's more likely to occur in centralized organizations.
2. Decentralized organizations give employees extensive decision-making autonomy.
YES or NO
Yes. This is known as empowerment.
3. Corporate culture provides rules for behaving within the organization.
YES or NO
Yes. Corporate Values, Corporate beliefs, Corporate customs, and ceremonies represent what is acceptable and unacceptable in the organization.
4. An integrative culture shows high concern for performance and little concern for people.
YES or NO
No. That's an exacting culture. An integrative culture combines high concern for people and production.
5. Coercive power works in the same manner as reward power.
YES or NO
No. Coercive power is the opposite of reward power. One offers rewards and the other punishment to encourage appropriate behavior
What are the 4 organizational cultures
Define a Apathetic Organizational Culture
The apathetic culture shows minimal concern for either people or performance. In this culture, individuals focus on their own self interests. Apathetic tendencies can occur in almost any organization
Define a Caring Organizational Culture
The caring culture exhibits high concern for people but minimal concern for performance issues. From an ethical standpoint, the caring culture seems to be very appealing
Define a Exacting Organizational Culture
The exacting culture shows little concern for people but a high concern for performance; it focuses on the interests of the organization
Define a Integrative Organizational Culture
The integrative culture combines high concern for people and for performance. An organization becomes integrative when superiors recognize that employees are more than interchangeable parts—that employees have an ineffable quality that helps the firm meet its performance criteria.
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