MGMT 310 exam 2 Flashcards
Universalism
The ethical system stating that all people should uphold certain values that society needs to function
The ethical system stating that all people should uphold certain values that society needs to function
Universalism
Egoism
An ethical principle holding that individual self-interest is the actual motive of all conscious action
An ethical principle holding that individual self-interest is the actual motive of all conscious action
Egoism
Utilitarianism
An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers
An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers
Utilitarianism
Relativism
Philosophy that bases ethical behavior on the opinions and behaviors of relevant other people
Philosophy that bases ethical behavior on the opinions and behaviors of relevant other people
Relativism
Virtue ethics
Perspective that what is moral comes from what a mature person with “good” moral character would deem right
Perspective that what is moral comes from what a mature person with “good” moral character would deem right
Virtue ethics
Ethical systems are built on moral philosophy– the principles, rules, and values people use in deciding what is right or wrong. T/F
T
Sarbanes-Oxley act 2002
established strict accounting and reporting rules to make senior
established strict accounting and reporting rules to make senior
Sarbanes-Oxley act 2002
Ethical Intensity
the degree of concern people have about an ethical issue process for ethical decision making
the degree of concern people have about an ethical issue process for ethical decision making
Ethical Intensity
Strategic plans are created by ___ ____ and are between __-__ ____, and how detailed is it?
top management; 3-7 years; low
what is created by top management and is between 3-7 years
strategic plans
tactical plans are created by ___ ___ and are between __-__ ___, and how detailed is it?
middle management; 1-2 years; medium
what is created by middle management and is between 1-2 years
tactical plans
operational plans are created by ___ ___ and is less than ___ ___, and how detailed is it?
frontline management; 1 year; high
what is created by frontline management and is less than 1 year
operational plans
what does the S in SWOT stand for and mean?
strengths, and it is a combination of internal (within organization) and helpful (for your objective)
what does the W in SWOT stand for and mean?
Weaknesses, and it is a combination of internal (within organization) and harmful (for your objective)
what does the O in SWOT stand for and mean?
Opportunity, and it is a combination of external (within organization) and helpful (for your objective)
what does the T in SWOT stand for and mean?
Threats, and it is a combination of external (within organization) and harmful (for your objective)
what are the stars of the BCG matrix?
high market growth and strong relative competitive positions
what are the question marks/problem children of the BCG matrix?
high market growth and weak relative competitive positions
what are the cash cows of the BCG matrix?
low market growth and strong relative competitive positions
what are the dogs of the BCG matrix?
low market growth and weak relative competitive positions
A ___ ___ ___ is designed to support managers in evaluating the organization’s progress with its strategy and, when discrepancies exist, taking corrective action
strategic control system
strategic control system
designed to support managers in evaluating the organization’s progress with its strategy and, when discrepancies exist, taking corrective action
Maximizing
achieving best outcome that realizes greatest possible consequences, and least negative consequences, lowest price for the best outcome; NOT the first thing people come up with, it takes time and planning
achieving best outcome that realizes greatest possible consequences, and least negative consequences, lowest price for the best outcome; NOT the first thing people come up with, it takes time and planning
maximizing
Satisficing
choose first option that is minimally acceptable or adequate
choose first option that is minimally acceptable or adequate
Satisficing
Optimizing
achieving best possible balance between several goals
achieving best possible balance between several goals
Optimizing
An ethical issue is
a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong
a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong
Ethical issue
Kohlberg’s stages of moral development
Preconventional stage, Conventional stage, Principled stage
Preconventional stage -
make decisions based on immediate self-interest
Ex. you take a flash drive home from work because you need one and you don’t want to pay for it.
make decisions based on immediate self-interest
Ex. you take a flash drive home from work because you need one and you don’t want to pay for it.
preconventional stage
Conventional stage -
make decisions that conform to expectations of groups and institutions like family, peers, and society.
Ex. you think about taking the flash drive home, but decide not to because it wouldn’t be right
make decisions that conform to expectations of groups and institutions like family, peers, and society.
Ex. you think about taking the flash drive home, but decide not to because it wouldn’t be right
conventional stage
Principled stage -
make decisions based on self-chosen ethical principles
Ex. you do not consider taking the flash drive home from work because you believe that would be wrong
make decisions based on self-chosen ethical principles
Ex. you do not consider taking the flash drive home from work because you believe that would be wrong
principled stage
Ethical climate -
In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong
In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong
ethical climate
Danger signs of ethical climate include
- Excessive emphasis on short-term revenues over longer-term considerations
- Failure to establish a written code of ethics
- A desire for simple, “quick fix” solutions to ethical problems
- An unwillingness to take an ethical stand that may impose financial costs
- Consideration of ethics solely as a legal issue or a public relations tool
- Lack of clear procedures for handling ethical problems
- Responsiveness to the demands of shareholders at the expense of other constituencies
Compliance based ethics programs
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations
Compliance based ethics programs
Integrity based ethics programs
Company mechanisms designed to instill in people a personal responsibility for ethical behavior
Company mechanisms designed to instill in people a personal responsibility for ethical behavior
Integrity based ethics programs
Ethical Intensity
the degree of concern people have about an ethical issue process for ethical decision making
the degree of concern people have about an ethical issue process for ethical decision making
ethical intensity
The Business costs of Ethical Failure
Level 1 costs - paying fines are receiving penalties from the government
attract more executive attention even though costs are lower
Level 2 costs - spending time and money for audits and legal inquiries. Providing remedial education and taking corrective actions. Being subject to government oversight.
Level 3 costs - losing customers and reputation. Shrinking employee morale and higher turnover. Increasing regulation by the government.
Receive less executive attention despite the higher costs
Level 1 costs
paying fines are receiving penalties from the government
attract more executive attention even though costs are lower
paying fines are receiving penalties from the government
attract more executive attention even though costs are lower
level 1 costs
Level 2 costs
spending time and money for audits and legal inquiries. Providing remedial education and taking corrective actions. Being subject to government oversight.
spending time and money for audits and legal inquiries. Providing remedial education and taking corrective actions. Being subject to government oversight.
level 2 costs
Level 3 costs
losing customers and reputation. Shrinking employee morale and higher turnover. Increasing regulation by the government.
Receive less executive attention despite the higher costs
losing customers and reputation. Shrinking employee morale and higher turnover. Increasing regulation by the government.
Receive less executive attention despite the higher costs
level 3 costs
Corporate social responsibility
-CSR
-Philanthropic
-Ethical
-Legal
-Economic
-CSR
is the obligation toward society assumed by business
is the obligation toward society assumed by business
CSR
Philanthropic
Additional behaviors and activities that society finds desirable and that the values of the business support
Additional behaviors and activities that society finds desirable and that the values of the business support
philanthropic
Ethical
Meeting other social expectations, not written as law
Meeting other social expectations, not written as law
ethical
Legal
To obey local, state, federal, and relevant international laws
To obey local, state, federal, and relevant international laws
legal
Economic
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
economic
Shareholder Model
Managers act as agents for shareholders and are obligated to maximize the present value of the firm
Managers act as agents for shareholders and are obligated to maximize the present value of the firm
shareholder model
Stakeholder Model
Theory of corporate social responsibility that suggests that managers are obliged to look beyond profitability to help their organizations succeed by interacting with groups that have a stake in the organization
Theory of corporate social responsibility that suggests that managers are obliged to look beyond profitability to help their organizations succeed by interacting with groups that have a stake in the organization
stakeholder model
Formal planning steps:
- Situational analysis
- Alternative goals and plans
- Goal and plan evaluation
- Goal and plan selection
- Implementation
- Monitor and control
planning
Conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future
Conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future
planning
___-___ ___ can be just as effective as ___-___ ___
Manager-set goals ; self-set goals
Appropriate goals are
-Difficult, but not too difficult
-Specific
-Have high commitment
single use plans
Focuses on achieving non-repeating goals
ex. Kraft’s recent recall of 6.5 million macaroni and cheese boxes after consumers found metal in some of the boxes
Focuses on achieving non-repeating goals
ex. Kraft’s recent recall of 6.5 million macaroni and cheese boxes after consumers found metal in some of the boxes
single use plans
standing plan
Is designed to accomplish an enduring set of goals
ex. Beats by dr. dre dominates the premium headphones market through consistently strong marketing campaigns
Is designed to accomplish an enduring set of goals
ex. Beats by dr. dre dominates the premium headphones market through consistently strong marketing campaigns
standing plan
contingency plan
Specifies actions when initial plans fall or events in the external environment create sudden change
ex. California, due to several years of below average rainfall developed a drought plan
Specifies actions when initial plans fall or events in the external environment create sudden change
ex. California, due to several years of below average rainfall developed a drought plan
contingency plan
mission statement
definition of the company’s business, who it serves, what it does, its objectives, and its approach to reaching those objectives
definition of the company’s business, who it serves, what it does, its objectives, and its approach to reaching those objectives
mission statement
Vertical integration is a
business strategy that allows a company to control the supply chain from manufacturing to sales.
business strategy that allows a company to control the supply chain from manufacturing to sales.
vertical integration
Low cost (overall leadership) business strategy
strategy that an organization uses to build competitive advantage by being efficient and by offering a standard “no frills” product.
ex. Ikea furniture
strategy that an organization uses to build competitive advantage by being efficient and by offering a standard “no frills” product.
ex. Ikea furniture
low cost (overall leadership) business strategy
Differentiation business strategy
strategy that an organization uses to build competitive advantage by being unique in one or more dimensions
Ex. apple, own software, computers, phones, watches, tablets, earbuds, etc.
strategy that an organization uses to build competitive advantage by being unique in one or more dimensions
Ex. apple, own software, computers, phones, watches, tablets, earbuds, etc.
differentiation business strategy
Functional business strategy
strategy that an organization in ways of production in each different functional area of the organization
ex. Accounting develops its own strategy, HR develops its own strategy, IS develops its own strategy, etc.
strategy that an organization in ways of production in each different functional area of the organization
ex. Accounting develops its own strategy, HR develops its own strategy, IS develops its own strategy, etc.
functional business strategy
Programmed:
Problem is frequent, repetitive, and routine, with much certainty regarding cause-and-effect relationships.
Decision procedure depends on policies, rules, and definite procedures.
Ex. periodic reorders of inventory, procedure for admitting patients
Problem is frequent, repetitive, and routine, with much certainty regarding cause-and-effect relationships.
Decision procedure depends on policies, rules, and definite procedures.
Ex. periodic reorders of inventory, procedure for admitting patients
programmed
Nonprogrammed:
Problem is novel and unstructured, with much uncertainty regarding the cause-and-effect relationship
Decision procedure needs creativity, intuition, tolerance for ambiguity, and creative problem solving.
Ex. diversification into new products and markets; purchase of experimental equipment; reorganization of departments
Problem is novel and unstructured, with much uncertainty regarding the cause-and-effect relationship
Decision procedure needs creativity, intuition, tolerance for ambiguity, and creative problem solving.
Ex. diversification into new products and markets; purchase of experimental equipment; reorganization of departments
nonprogrammed
Discounting the future
weigh short term costs and benefits much heavier than our long term costs and benefits.
Should I spend 450 on car mods now or save up for a nicer stock car (that I will eventually mod too)?
weigh short term costs and benefits much heavier than our long term costs and benefits.
Should I spend 450 on car mods now or save up for a nicer stock car (that I will eventually mod too)?
discounting the future
using groups to make a decision is good and bad because…
good: more information is available
bad: could lead to groupthink to avoid disagreements
Constructive conflict -
Conflict that is task related and involves differing ideas and viewpoints is constructive. it’s good for decision making
Conflict that is task related and involves differing ideas and viewpoints is constructive. it’s good for decision making
constructive conflict
