Business Ethnics Final Chapter 7

Corporate Culture

A set of values, norms, and artifacts, including ways of solving problems shared by organizational members. The shared beliefs top managers have about how they should manage themselves and other employees and how they should conduct their business, and Gi

Sarbanes Oxley 404

Includes assessment of effectiveness of controls by management and external auditors, Forces firms to adopt a set of values that make up part of the culture, Compliance with 404 requires cultural change, not only accounting changes.

Two dimensions of organizational culture

Concern for people and concern for performance

Concern for people

The organization's efforts to care for its employees well

Concern for performance

The organization's efforts to focus on output and employee productivity

Apathetic Culture

Shows minimal concern for either people or performance

Caring Culture

Exhibits high concern for people but minimal concern for performance issues.

Exacting Culture

Shows little concern for people but a high concern for performance; it focuses on the interests of the organization.

Integrative Culture

Combines a high concern for people and performance

Cultural Audit

An assessment of an organization's values

Compliance-based culture

Use a legalistic approach to ethics

Value- Based cluture

Rely on mission statements that define the core values of the firm and stakeholder relations and how customers and employee should be treated

Differential Association

The idea that people learn ethical or unethical behavior while interacting with others who are part of their role sets or being to their intimate personal groups.

Whistle-blowing

Exposing an employer's wrongdoing to outsiders such as the media or government regulatory agencies.

Qui Tam Relator

If an employee provides information to the government about a company's wrongdoing under the Federal False Claims Act, the whistle-blower is known as this.

Reward Power

Refers to a person's ability to influence the behavior of others by offering them something desirable.

Coercive Power

Penalizing negative behavior

Legitimate Power

Stems from the belief that a certain person has the right to exert influence and certain others have an obligation to accept it.

Expert Power

Derived from a person's knowledge and credibility with subordinates

Referent Power

May exist when one person perceives that his or her goals or objections are similar to another.

Motivation

A force within the individual that forces his or her behavior toward achieving a goal

Job Performance

Considered to be a function of ability and motivation and can be represented by the equation.

Relatedness Needs

Satisfied by social and interpersonal relationships

Growth Needs

Stisfied by creative or productive activities

Centralized Organization

Decision making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels.

Decentralized Organization

Decision making authority is delegated as far down the chain of command as possible

Formal Group

An assembly of individuals with an organized structure that is explicitly accepted by the group. Committees, work groups, and teams.

Informal Group

Two or more individuals with a common interest but without an explicit organizational structure. The grapevine.

Group Norms

Standards of behavior groups expect of their members and define acceptable and unacceptable behavior within the group.