CHAPTER 3

Ethics sets standards of good or bad, or right or wrong, in our conduct.

Ethical Behavior is right or good in the context of governing moral code.
Values- are broad beliefs about what is appropriate behavior
Terminal Values are preferences about desired end states.
Instrumental Values are preferences regarding the means to desired ends.
In the individualism view, ethical behavior advances long-term self interests
In the justice view, ethical behavior treats people impartially and fairly.
Procedural justice focuses on the fair application of policies and rules
Distributive justice focuses on treating people the same regardless of personal
characteristics.
Interactional justice is the degree to which others are treated with dignity and respect
Commutative justice focuses on the fairness of exchanges or transactions
In the moral rights view, ethical behavior respects and protects fundamental rights.
Cultural relativism suggests there is no one right way to behave; cultural context
determines ethical behavior.
Moral absolutism suggests ethical standards apply universally across all cultures
Ethical imperialism is an attempt to impose ones ethical standards on other
cultures.
An ethical dilemma is a situation that, although offering potential benefit or gain, is also
unethical.
Ethical frameworks are well-thought-out personal rules and strategies for ethical
decision making.
Preconventional Self-Centered- Avoid harm or punishment Make deals for personal gain
Conventional Social-Centered- Act consistently with peers, Follow rules meet obligations
Post conventional Principle-Centered Act according, live up to societal expectations.
Ethics training seeks to help people understand the ethical aspects of decision-making
and to incorporate high ethical standards into their daily behavior
Spotlight questions highlight the risks from public disclosure of ones actions
Whistle blowers expose misconduct of organizations and their members
Immoral manager chooses to behave unethically
An amoral manager fails to consider the ethics of her or his behavior
A moral manager makes ethical behavior a personal goal.
A code of ethics is a formal statement of values and ethical standards
Stakeholders are people and institutions most directly affected by an organizations
performance.
Corporate Social responsibility is the obligation to serve its own interests and those of its
stakeholders.
The triple bottom line of organizational performance includes financial, social, and
environmental criteria.
The 3 Ps of organizational performance are profit, people, and planet.
The classical view of CSR is that business should focus on the pursuit of profits
The socioeconomic view of CSR is that business should focus on contributions to society,
not just making profits.

A virtuous circle exists when corporate social responsibility leads to improved

financial performance that leads to more social responsibility
Shared value approaches business decisions with understanding that economic
and social progress are interconnected.
Zone of Compliance- Economic Responsibility- Be profitable, Legal Responsibility-obey
the law.
Zone of Conviction- Ethical Responsibility- Do What is right, Discretionary- Contribute
to community.
A social responsibility audit measures and reports on an organizations
performance in various areas of corporate social responsibility
Sustainability is a goal that addresses the rights of present and future generations as costakeholders of present day natural resources.
Sustainable business is where firms operate in ways that both meet the needs of
customers and protect or advance the well-being of our natural environment
Sustainable development is making use of natural resources to meet todays needs while
also preserving and protecting the environment for us by future generations
Environmental capital or natural capital is the storehouse of natural resources
atmosphere, land, water, and mineralsthat we use to sustain life and produce goods
ISO 14001 is a global quality standard that certifies organizations set environmental
objectives and targets, account for the environmental impact of their activities
A social business is one in which the underlying business model directly
addresses a social problem
Social entrepreneurs take business risks to find novel ways to solve pressing social
problems.
CHAPTER 9
Organizational culture is a system of shared beliefs and values guiding behavior
Strong cultures are clear, well-defined, and widely shared among members
Socialization is the process through which new members learn the culture of an
organization
The observable culture is what you see and hear when walking around an organization
and stories, heroes, symbols, and rites and rituals.
The core culture is found in the underlying values of the organization
Core values are beliefs and values shared by organization members
Value based management actively develops, communicates, and enact shared values
A symbolic leader uses language and symbols and actions to establish and maintain a
desired organizational culture
Workplace spirituality involves practice that creates meaning and shared community
among organizational members.
Innovation is the process of taking a new idea and putting it into practice
Process innovations result in better ways of doing things
Product innovations result in new or improved goods or services
Business model innovations result in ways for firms to make money.
Green or sustainable innovation reduces carbon footprint of an organization or its
products

Social Innovation is business innovation driven by a social conscious

Social Entrepreneurship pursues innovative ways to solve pressing social problems.
Commercializing innovation is the process of turning new ideas into salable products,
Initial (Sharing), Feasibility (Testing), Final (Commercializing), Idea (Discovering)
Skunkworks are special creative units set free from the normal structure for innovation
Highly innovative Org- Strategy Includes innovation, culture values innovation,
structures support innovation, management supports innovation, staffing for creativity
and innovation.
A change leader tries to change the behavior of another person or social system.
Transformational change results in a major and comprehensive redirection of the org.
Incremental change bends and adjusts existing ways to improve performance
Guidelines for Change- Establish form create empower celebrate build stay
Unfreezing is the phase during which a situation is prepared for change
Changing is the phase where a planned change actually takes place
Refreezing is the phase at which the change is stabilized.
A force-coercion strategy pursues change through formal authority and/or the use of
rewards or punishments
A rational persuasion strategy pursues change through empirical data and rational
argument
A shared power strategy pursues change by participation in assessing change needs,
values, and goals.
Why people resist change- Fear of unknown, disrupted habits, loss of confidence, loss of
control, poor timing, work overload, loss of face, lack of purpose.
CHAPTER 10
Human resource management is the process of attracting, developing, and maintaining a
high-quality workforce
Human capital is the economic value of people with job-relevant abilities
Strategic human resource management mobilizes human capital to implement
organizational strategies
Job discrimination occurs when someone is denied a job or a job assignment for non-jobrelevant reasons
Equal employment opportunity is the right to employment and advancement without
regard to sex, race, or religion
Affirmative action is an effort to give preference in employment to women and minority
members
Bona fide occupational qualifications are employment criteria justified by capacity
Employee privacy is the right to privacy on and off the job
Age discrimination penalizes an employee in job applicant for being over the age of 40
Person-job fit is the match of individual skills, interests, and personal characteristics
Person-organization fit is the match of individual values, interests, and behavior with the
organizational culture.
Recruitment is a set of activities designed to attracted a qualified pool of job applicants.
Realistic job previews provide job candidates with all pertinent information about a job
and organization

Selection is choosing whom to hire from a pool of qualified job applicants

Reliability means that selection device gives consistent results over repeated manners
Validity means that scores on a selection device have demonstrated links with future job
performance
An assessment center examines how job candidates handle simulated work situations
Work sampling evaluates applicants as they perform actual work tasks
Socialization systematically influences the expectations, behavior, and attitudes of new
employees
Orientation familiarizes new employees with jobs, co-workers, and organizational
policies and services.
Coaching occurs as an experienced person offers performance advice to a less
experienced person
Mentoring assigns early-career employees as protgs to more senior ones
In reverse mentoring, younger and newly hired employees mentor senior executives
Performance appraisal is the process of formally evaluating performance and providing
feedback to a job-holder. Measures and documents
A graphic rating scale uses a checklist of traits to evaluate performance
A behaviorally anchored rating scale uses specific descriptions of actual behaviors to rate
various levels of performance
The critical-incident technique keeps a log of ones effective and ineffective behaviors
360 Degrees feedback includes superiors, subordinates, peers, and even customers in the
appraisal process
A multiperson comparison compares one persons performance with that of others
Career Development is the process of managing how a person grows and progresses in a
career.
Career planning is the process of matching career goals and individual capabilities with
opportunities for the fulfillment
Work-life balance involves balancing career demands with personal and family needs
Independent contractors are hired on temporary contracts and are not a part of workforce
Contingency workers work as needed and part-time, often on a longer-term basis
Merit pay awards pay increases in proportion to performance contributions.
Bonus pay plans provide one-time payments based on performance accomplishments
Profit sharing distributes to employees a proportion of net profits earned by the org.
Gain sharing allows employees to share in cost savings or productivity gains realized by
their efforts.
Stock options give the right to purchase shares at a fixed price in the future
Fringe benefits are nonmonetary forms of compensation such as health insurance and
retirement plans
Family-friendly benefits help employees achieve better work-life balance
Flexible benefits programs allow choice to personalize benefits within a set dollar
allowance.
Employee assistance programs help employees cope with personal stresses and problems
A labor union is an organization that deals with employers on the workers collective
A labor contract is a formal agreement between a union and an employer about the terms
Collective bargaining is the process of negotiating, administering, and interpreting
Two tier wage systems pay new hires less than workers already doing the same job

CHAPTER 11
Leadership is the process of inspiring others to work hard to accomplish important tasks
Planning-sets direction, Organizing-brings together, Leading-builds. Controlling-makesur
Power is the ability to get someone else to do something you want done
Reward power achieves influences by offering value
Coercive power achieves influence by punishment
Legitimate power achieves influence by formal authority
Expert power achieves influence by special knowledge
Referent power achieves influence by personal identification
A vision is a clear sense of the future
Visionary Leadership brings to the situation a clear sense of the future and an
understanding of how to get there
Traits of Leaders- Drive, Self-confidence, creativity, cognitive ability, business
knowledge, motivation, flexibility, honest and integrity.
Laissez-Faire is least effective
Leadership Style is the recurring pattern of behaviors exhibited by a leader
An autocratic leader acts in unilateral command-and-control fashion
A human relations leader emphasizes people over tasks
A democratic leader encourages participation with an emphasis
A laissez-faire leader is disengaged, showing low task and people concerns
The contingency leadership perspective suggests that what is successful as a leadership
style varies according to the situation and people involved
Houses theory believes leaders move back and forth
Leadership styles, Directive, Supportive, Achievement-orientated, participative leader
Authority decision is made by the leader and then communicated to the group
A consultative decision is made by a leader after receiving information, advice or opinion
A group decision is made by group members themselves
A charismatic leader develops special leader-follower relationships and inspires followers
Transactional leadership directs the efforts of others through tasks and rewards
Transformational leadership is inspirational and arouses effort and performance
Emotional Intelligence is the ability to manage our emotions in leadership and social
relationships, self-awareness, social awareness, self-management, relationship manage
The gender hypothesis holds that males and females have similar physiological makeup
Interactive leadership is strong on communicating, participation, and dealing wit problem
Moral leadership has integrity and appears to others as good or right by standards.
Integrity in leadership is honesty, credibility, and consistency in putting values into action
Servant leadership means serving others and helping them use their talents to help
Empowerment gives people job freedom and power to influence affairs
CHAPTER 12
Perception is the process through which people receive and interpret information from the
environment.
A stereotype assigns attributes commonly associated with a group to an individual
A halo effect uses one attribute to develop an overall impression of a person or situation

Selective perception focuses attention on things consistent with existing beliefs, needs, or
actions.
Projection assigns personal attributes to other individuals
Attribution is the process of creating explanations for events.
The fundamental attribution error overestimates internal factors and underestimates
external factors as influences on someones behavior.
Self-serving bias underestimates internal factors and overestimates external factors as
influences on someones behavior.
Impression management tries to create desired perceptions in the eyes of others.
Personality is the profile of characteristics making a person unique from others
Big traits- Extraversion, agreeableness, conscientiousness, emotional stability, openness
to experience
Locus of Control is the extent to which one believes what happens is within control
Authoritarianism is the degree to which a person defers to authority
Machiavellianism is the degree to which someone uses power manipulatively
Self-monitoring is the degree to which someone is able to adjust behavior
Stress is a state of tension experienced by individuals facing demands or constraints
Type A personality is oriented toward extreme achievement, impatience, and perfection
Constructive stress is a positive influence on effort to work
Destructive stress is a negative influence on ones performance
Job burnout is physical and mental exhaustion from work stress
Workplace rage is aggressive behavior toward co-workers or the work setting
Personal wellness is the pursuit of a personal health-promotion program
An attitude is a predisposition to act in a certain way
Cognitive dissonance is discomfort felt when attitude and behavior are inconsistent
Job satisfaction is the degree to which an individual feels positive about a job and work
experience. The job itself, quality, co-workers, opportunities, pay, work conditions,
security
Withdrawal behaviors include absenteeism and turnover
Organizational citizenship behaviors are things people do to go far in their work
Employee engagement is a strong sense of belonging and connection with ones work and
employer
Emotional intelligence is an ability to understand emotions and manage relationships
effectively
Emotions are strong feelings towards someone or something
Moods are generalized positive and negative feelings or states of mind
Mood contagion is the spillover of ones positive or negative moods
CHAPTER 14
A team is a collection of people who regularly interact to pursue common goals
Teamwork is the process of people actively working together to accomplish goals
Synergy is the creative of a whole greater than the sum of its individual parts
Social loafing is the tendency of some people to avoid responsibility by free-riding
A formal team is officially recognized and supported by the organization

An informal group is artificial and emerges from relationships and shared interest among
members
A committee is designated to work on a special task on continuing basis
The project team or task force is convened for a specific purpose and disbands after
completing its task
A cross functional team operates with members who come from different functional units
of an organization
An employee involvement team mates are regular basis to help achieve continuous
improvement
A quality circle is a team of employees who meet periodically to discuss ways of
improving work quality
Members of a virtual team work together and solve problems through computer-based
interactions
Members of a self managing team have the authority to make decisions about how the
share and complete their work
An effective team achieves high levels of task performance, membership satisfaction, and
future viability
Membership composition is the mix of abilities, skills, backgrounds, and experiences
among team members
Stages of development, forming, storming, norming, performing, adjourning
Team process is the way team members work together to accomplish tasks
A norm is a behavior, rule, or standard expected to be followed by team members
The performance norm defines effort in performance and contributions expected of team
members, Act, reinforce, control, train, recruit, hold, use
Cohesiveness is the degree to which members are attracted to and motivated to remain
part of the team
A task activity is an action taken by a team member the directly contributes to the groups
performance purpose
A maintenance activity is an action taken by a team member that supports the emotional
life of the group
Distributed leadership is one any and all members contribute helpful tasks and
maintenance activities to the team
Disruptive behaviors are self-serving and cause problems for team effectiveness
A decentralized communication network allows all members to communicate directly
with one another
In a centralized communication network communication flows only between individual
members and a hub or center point
Subgroups in a restrictive communication network contest one anothers positions and
restricted interactions with one another
Teambuilding involves activities together and analyze data on a Team and make changes
to increase its effectiveness
Decision-making is a process of making choices among alternative courses of action
Consensus is reached when all parties believe they have had their say and have been
listened to, and agreed to support the groups final decision
Groupthink is a tendency for highly cohesive teams to lose her evaluative capabilities
Conflict is a disagreement over issues of substance and or an emotional antagonism

Substantive conflict involves disagreements over goals, resources, rewards, policies,

procedures, and job assignments
Emotional conflict results from feelings of anger, distrust, dislike, fear and resentment as
well as from personality clashes
Avoidance pretends that conflict doesnt really exist
Accommodation or smoothing plays down differences and highlights similarities to
reduce conflict
Competition or authoritative command, uses force, superior skill, or domination to win a
conflict
Compromise occurs when each party to the conflict gives up something of value to the
other
Collaboration, or problem-solving, involves working through conflict differences in
solving problems so everyone wins
Conflict resolution is the removal of substantive and/or emotional reasons for conflict
CHAPTER 15
Social capital is a capacity to attract support and help from others in order to get things
done
Communication is a process of sending and receiving symbols with the meanings
attached
In effective communication the receiver fully understands the intended meaning
Efficient communication occurs at minimum cost to the center
Persuasive communication presents a message in a manner that causes others to accept
and support it
Credible communication earns trust, respect, and integrity in the eyes of others
Noise is anything that interferes with the communication process
A communication channel is a medium used to carry a message
Channel richness is a capacity of a communication channel to effectively carry
information
Nonverbal communication takes place through gestures, expressions, posture, and even
use of interpersonal space
A mixed message results when words communicate one message while actions, body
language, where parents communicate something else
Filtering is the international distortion of information to make it more favorable to the
recipient
Active listening helps the source of a message say what you were she really means
Feedback is a process of telling someone else how you feel about something that person
did or said
Proxemics is the study of the way we use space
Communication transparency involves being honest and openly sharing accurate and
complete information
In open-book management managers provide employees with essential financial
information about their employers
The electronic grapevine uses computer technologies to transmit information around
informal networks inside and outside of organizations

Ethnocentrism is the tendency to consider ones culture superior to any and all others
Cultural etiquette is use of appropriate manners and behaviors and cross-cultural
situations