3Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Attitudes, Values, Ethics, and.

33Chapter

PowerPoint Presentation by Charlie Cook© Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved.

Attitudes, Values, Ethics, Attitudes, Values, Ethics, and Culture:and Culture:

The Manager as a PersonThe Manager as a Person

© Copyright McGraw-Hill. All rights reserved. 3–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• After studying the chapter, you should be able to:After studying the chapter, you should be able to:Describe the various personality traits that affect Describe the various personality traits that affect

how managers think, feel, and behave.how managers think, feel, and behave.Explain what values, attitudes, and moods and Explain what values, attitudes, and moods and

emotions are and describe their impact on emotions are and describe their impact on managerial action.managerial action.

Illustrate how ethics hilp managers determine the Illustrate how ethics hilp managers determine the right or proper way to behave when dealing with right or proper way to behave when dealing with different stakeholder groups.different stakeholder groups.

Define organizational culture and explain the role Define organizational culture and explain the role managers play in creating it.managers play in creating it.

Explain why managers should strive to create Explain why managers should strive to create ethical organizational cultures.ethical organizational cultures.


Chapter OutlineChapter OutlineChapter OutlineChapter Outline

• Enduring Characteristics: Personality TraitsEnduring Characteristics: Personality TraitsThe Big Five Personality TraitsThe Big Five Personality TraitsOther Personality Traits that Affect Other Personality Traits that Affect

Managerial BehaviorManagerial Behavior

• Values, Attitudes, and Moods and EmotionsValues, Attitudes, and Moods and EmotionsValues: Terminal and InstrumentalValues: Terminal and InstrumentalAttitudesAttitudesMoods and EmotionsMoods and EmotionsEmotional IntelligenceEmotional Intelligence


Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)

• Ethics and StakeholdersEthics and StakeholdersWhich Behaviors Are EthicalWhich Behaviors Are EthicalWhy Would Managers Behave Unethically Why Would Managers Behave Unethically

Toward Other Stakeholders?Toward Other Stakeholders?Sources of an Organization’s Code of EthicsSources of an Organization’s Code of Ethics

• Organizational CultureOrganizational CultureHow Managers Influence Organization CultureHow Managers Influence Organization CultureEthical Organizational CulturesEthical Organizational CulturesSocial ResponsibilitySocial Responsibility

• Summary and ReviewSummary and Review


Personality TraitsPersonality TraitsPersonality TraitsPersonality Traits

• Personality TraitsPersonality TraitsEnduring tendencies to feel, think, and act in Enduring tendencies to feel, think, and act in

certain wayscertain waysCharacteristics that influence how people Characteristics that influence how people

think, feel and behave on and off the jobthink, feel and behave on and off the jobThe personalities of managers account for The personalities of managers account for

the different approaches that managers the different approaches that managers adopt to management.adopt to management.

Traits are viewed as a continuum (from high Traits are viewed as a continuum (from high to low) along which individuals fall.to low) along which individuals fall.


The Big Five The Big Five Personality Personality

TraitsTraits

The Big Five The Big Five Personality Personality

TraitsTraits

Figure 3.1Source:


The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)

• ExtroversionExtroversionThe tendency to experience positive The tendency to experience positive

emotions and moods and to feel good about emotions and moods and to feel good about oneself and the rest of the worldoneself and the rest of the world

• Managers high on this trait are sociable and friendly.Managers high on this trait are sociable and friendly.

• Negative AffectivityNegative AffectivityThe tendency to experience negative The tendency to experience negative

emotions and moods, to feel distressed, and emotions and moods, to feel distressed, and to be critical of oneself and othersto be critical of oneself and others

• Managers high on this trait are often critical and feel Managers high on this trait are often critical and feel angry with others and themselves. angry with others and themselves.


A Measure of A Measure of Negative Negative AffectivityAffectivity

A Measure of A Measure of Negative Negative AffectivityAffectivity

Figure 3.2

Source: Tellegen, Brief Manual for the Differential Personality Questionnaire (unpublished manuscript, University of Minnesota, 1982).


The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)

• AgreeablenessAgreeablenessThe tendency to get along well with other The tendency to get along well with other

peoplepeople• Managers high on this trait are likable, and care about Managers high on this trait are likable, and care about

others.others.

• ConscientiousnessConscientiousnessThe tendency to be careful, scrupulous, and The tendency to be careful, scrupulous, and

perseveringpersevering

• Openness to ExperienceOpenness to ExperienceThe tendency to be original, have broad The tendency to be original, have broad

interests, to be open to a wide range of stimuli, interests, to be open to a wide range of stimuli, be daring, and take risksbe daring, and take risks


Traits and ManagersTraits and ManagersTraits and ManagersTraits and Managers

• Successful managers vary widely on the “Big Successful managers vary widely on the “Big Five”. Five”. It is important to understand these traits It is important to understand these traits

since it helps explain a manager’s approach since it helps explain a manager’s approach to planning, leading, organizing, etc.to planning, leading, organizing, etc.

Managers should also be aware of their own Managers should also be aware of their own style and try to tone down problem areas.style and try to tone down problem areas.


Other Personality Traits…Other Personality Traits…Other Personality Traits…Other Personality Traits…

• Internal Locus of ControlInternal Locus of ControlThe tendency to locate responsibility for The tendency to locate responsibility for

one’s own fate within oneselfone’s own fate within oneself• People believe they are responsible for their fate and People believe they are responsible for their fate and

see their actions as important to achieving goals.see their actions as important to achieving goals.

• External Locus of ControlExternal Locus of ControlThe tendency to locate responsibility for The tendency to locate responsibility for

one’s fate within outside forces and to one’s fate within outside forces and to believe that one’s own behavior has little believe that one’s own behavior has little impact on outcomesimpact on outcomes

• People believe external forces decide their fate and People believe external forces decide their fate and their actions make little difference.their actions make little difference.


Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)

• Self-EsteemSelf-EsteemThe degree to which people feel good about The degree to which people feel good about

themselves and their abilitiesthemselves and their abilities• High self-esteem causes a person to feel competent, High self-esteem causes a person to feel competent,

and capable.and capable.

• Persons with low self-esteem have poor opinions of Persons with low self-esteem have poor opinions of themselves and their abilities.themselves and their abilities.

• Need for AchievementNeed for AchievementThe extent to which an individual has a The extent to which an individual has a

strong desire to perform challenging tasks strong desire to perform challenging tasks well and meet personal standards for well and meet personal standards for excellenceexcellence


Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)

• Need for AffiliationNeed for AffiliationThe extent to which an individual is The extent to which an individual is

concerned about establishing and concerned about establishing and maintaining good interpersonal relations, maintaining good interpersonal relations, being liked, and having other people get being liked, and having other people get alongalong

• Need for PowerNeed for PowerThe extent to which an individual desires to The extent to which an individual desires to

control or influence otherscontrol or influence others


Values, Attitudes, andValues, Attitudes, andMoods and EmotionsMoods and Emotions

Values, Attitudes, andValues, Attitudes, andMoods and EmotionsMoods and Emotions

• ValuesValuesDescribe what managers try to achieve Describe what managers try to achieve

through work and how they think they should through work and how they think they should behavebehave

• AttitudesAttitudesCapture managers’ thoughts and feelings Capture managers’ thoughts and feelings

about their specific jobs and organizations.about their specific jobs and organizations.

• Moods and EmotionsMoods and EmotionsEncompass how managers actually feel when Encompass how managers actually feel when

they are managingthey are managing


ValuesValuesValuesValues

• Terminal ValuesTerminal ValuesA personal conviction about life-long goalsA personal conviction about life-long goals

• A sense of accomplishment, equality, and self-respect.A sense of accomplishment, equality, and self-respect.

• Instrumental ValuesInstrumental ValuesA personal conviction about desired modes of A personal conviction about desired modes of

conduct or ways of behavingconduct or ways of behaving• Being hard-working, broadminded, capable.Being hard-working, broadminded, capable.

• Value SystemValue SystemThe terminal and instrumental values that are The terminal and instrumental values that are

the guiding principles in an individual’s life.the guiding principles in an individual’s life.


Terminal and Terminal and Instrumental Instrumental

ValuesValues

Terminal and Terminal and Instrumental Instrumental

ValuesValues

Figure 3.3

Source: Rokeach, The Nature of Human Values (New York: Free Press, 1973).


AttitudesAttitudesAttitudesAttitudes

• AttitudesAttitudesA collection of feelings and beliefs.A collection of feelings and beliefs.

• Job SatisfactionJob SatisfactionA collection of feelings and beliefs that A collection of feelings and beliefs that

managers have about their current jobs.managers have about their current jobs.• Managers high on job satisfaction have a positive Managers high on job satisfaction have a positive

view of their jobs. view of their jobs.

• Levels of job satisfaction tend increase as managers Levels of job satisfaction tend increase as managers move up in the hierarchy in an organization.move up in the hierarchy in an organization.


Sample Items Sample Items from Two from Two

Measures of Measures of SatisfactionSatisfaction

Sample Items Sample Items from Two from Two

Measures of Measures of SatisfactionSatisfaction

Figure 3.4

Source: R.B. Dunham and J. B. Herman, “ Development of a Female Face Scale for Measuring Job Satisfaction.” Journal of Applied Psychology 60 (1975): 629–31.


Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)

• Organizational Citizenship BehaviorsOrganizational Citizenship BehaviorsBehaviors that are not required of Behaviors that are not required of

organizational members but that help the organizational members but that help the firm in gaining a competitive advantage.firm in gaining a competitive advantage.

• Managers with high satisfaction are more likely Managers with high satisfaction are more likely perform these “above and beyond the call of duty” perform these “above and beyond the call of duty” behaviors.behaviors.

• Managers who are satisfied with their jobs are less Managers who are satisfied with their jobs are less likely to quit.likely to quit.


Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)

• Organizational CommitmentOrganizational CommitmentThe collection of feelings and beliefs that The collection of feelings and beliefs that

managers have about their organization as a managers have about their organization as a wholewhole

• Committed managers are loyal to and are proud of Committed managers are loyal to and are proud of their firms.their firms.

• Commitment can lead to a strong organizational Commitment can lead to a strong organizational culture.culture.

• Commitment helps managers perform their Commitment helps managers perform their figurehead and spokesperson roles.figurehead and spokesperson roles.

• The commitment of international managers is affected The commitment of international managers is affected by job security and personal mobility.by job security and personal mobility.


A Measure of A Measure of OrganizationaOrganizationa

l l CommitmentCommitment

A Measure of A Measure of OrganizationaOrganizationa

l l CommitmentCommitment

Figure 3.5

Source: L. W. Porter and F. J. Smith, “Organizational Commitment Questionnaire,” in J. D. Cook, S. J. Hepworth, T. D. Wall, and P. B. Warr, eds., The Experience of Work: A Compendium and Review of 249 Measures and Their Use (New York: Academic Press, 1981), 84–86.


Moods and EmotionsMoods and EmotionsMoods and EmotionsMoods and Emotions

• MoodMoodA feeling or state of mindA feeling or state of mind

• Positive moods provide excitement, elation, and Positive moods provide excitement, elation, and enthusiasm.enthusiasm.

• Negative moods lead to fear, distress, and Negative moods lead to fear, distress, and nervousness.nervousness.

• Current situations and a person's basic outlook affect Current situations and a person's basic outlook affect a person’s current mood.a person’s current mood.

A manager’s mood affects their treatment of A manager’s mood affects their treatment of others and how others respond to them.others and how others respond to them.

• Subordinates perform better and relate better to Subordinates perform better and relate better to managers who are in a positive mood.managers who are in a positive mood.


A Measure of Positive and Negative Mood at WorkA Measure of Positive and Negative Mood at WorkA Measure of Positive and Negative Mood at WorkA Measure of Positive and Negative Mood at Work

Figure 3.6Source: A. P. Brief, M. J. Burke, J. M. George, B. Robinson, and J. Webster, “ Should Negative Affectivity Remain an Unmeasured Variable in the Study of Job Stress?” Journal of Applied Psychology 73 (1988): 193–98.


Emotional IntelligenceEmotional IntelligenceEmotional IntelligenceEmotional Intelligence

• Emotional IntelligenceEmotional IntelligenceThe ability to understand and manage one’s The ability to understand and manage one’s

own moods and emotions and the moods and own moods and emotions and the moods and emotions of other people.emotions of other people.

• Assists managers in coping with their own emotions.Assists managers in coping with their own emotions.

• Helps managers carry out their interpersonal roles of Helps managers carry out their interpersonal roles of figurehead, leader, and liaison.figurehead, leader, and liaison.


Ethics and StakeholdersEthics and StakeholdersEthics and StakeholdersEthics and Stakeholders

• Organizational StakeholdersOrganizational StakeholdersShareholders, employees, customers, Shareholders, employees, customers,

suppliers, and others who have an interest, suppliers, and others who have an interest, claim, or stake in an organization and in what claim, or stake in an organization and in what it doesit does

• Each group of stakeholders wants a different Each group of stakeholders wants a different outcome and managers must work to satisfy as many outcome and managers must work to satisfy as many as possible.as possible.

• Managers have the responsibility to decide which Managers have the responsibility to decide which goals an organization should pursue to most benefit goals an organization should pursue to most benefit stakeholdersstakeholders—decisions that benefit some —decisions that benefit some stakeholder groups at the expense of others.stakeholder groups at the expense of others.


Ethics and Stakeholders (cont’d)Ethics and Stakeholders (cont’d)Ethics and Stakeholders (cont’d)Ethics and Stakeholders (cont’d)

• EthicsEthicsMoral principles or beliefs about what is right Moral principles or beliefs about what is right

or wrongor wrongEthics guide managers in their dealings with Ethics guide managers in their dealings with

stakeholders and others when the best stakeholders and others when the best course of action is unclear.course of action is unclear.

Managers often experience an ethical Managers often experience an ethical dilemma in choosing between the conflicting dilemma in choosing between the conflicting interests of stakeholders.interests of stakeholders.


Ethical Decision ModelsEthical Decision ModelsEthical Decision ModelsEthical Decision Models

• Utilitarian ModelUtilitarian ModelAn ethical decision is one that produces the An ethical decision is one that produces the

greatest good for the greatest number of greatest good for the greatest number of people.people.

• Moral Rights ModelMoral Rights ModelAn ethical decision is one that best maintains An ethical decision is one that best maintains

and protects the fundamental rights and and protects the fundamental rights and privileges of the people affected by it.privileges of the people affected by it.

• Justice ModelJustice ModelAn ethical decision is one that distributes An ethical decision is one that distributes

benefits and harms among stakeholders in a benefits and harms among stakeholders in a fair, equitable, or impartial way.fair, equitable, or impartial way.


Practical Guide to Ethical DecisionsPractical Guide to Ethical DecisionsPractical Guide to Ethical DecisionsPractical Guide to Ethical Decisions

• Does the manager’s decision fall within usual Does the manager’s decision fall within usual and accepted standards?and accepted standards?

• Is the manager willing to personally and Is the manager willing to personally and openly communicate the decision to all openly communicate the decision to all affected stakeholders? affected stakeholders?

• Does the manager believe that his friends Does the manager believe that his friends would approve?would approve?

• If the answer is “Yes” to all of the above, the If the answer is “Yes” to all of the above, the decision is probably an ethical decision.decision is probably an ethical decision.


Ethical versus Unethical DecisionsEthical versus Unethical DecisionsEthical versus Unethical DecisionsEthical versus Unethical Decisions

• Ethical DecisionEthical DecisionA decision that is reasonable or typical A decision that is reasonable or typical

stakeholders would find acceptable because stakeholders would find acceptable because it aids stakeholders, the organization, or it aids stakeholders, the organization, or society.society.

• Unethical DecisionUnethical DecisionA decision that a manager would prefer to A decision that a manager would prefer to

disguise or hide from other people because it disguise or hide from other people because it enables the company or a particular enables the company or a particular individual to gain at the expense of society or individual to gain at the expense of society or other stakeholders.other stakeholders.


Sources of An Sources of An Organization’s Organization’s Code of EthicsCode of Ethics

Sources of An Sources of An Organization’s Organization’s Code of EthicsCode of Ethics

Figure 3.7


Sources of EthicsSources of EthicsSources of EthicsSources of Ethics

• Societal EthicsSocietal EthicsStandards that govern how members of a society Standards that govern how members of a society

are to deal with each other on ethical issuesare to deal with each other on ethical issues• Based on values and standards found in society’s legal Based on values and standards found in society’s legal

rules, norm, and moresrules, norm, and mores

• Codified in the form of laws and societal customsCodified in the form of laws and societal customs

• Ethical norms dictate how people should behave.Ethical norms dictate how people should behave.

• Societal ethics vary among societies.Societal ethics vary among societies.Strong beliefs in one country may differ Strong beliefs in one country may differ

elsewhere.elsewhere.• Payment of bribes, an illegal act in the U. S., is an Payment of bribes, an illegal act in the U. S., is an

accepted business practice in many countries.accepted business practice in many countries.


Sources of EthicsSources of EthicsSources of EthicsSources of Ethics

• Professional ethicsProfessional ethicsStandards that govern how members of a Standards that govern how members of a

profession are to make decision when the profession are to make decision when the way they should behave is not clear-cutway they should behave is not clear-cut

• Physicians and lawyers have professional Physicians and lawyers have professional associations that enforce these.associations that enforce these.

• Individual ethicsIndividual ethicsPersonal standards that govern how Personal standards that govern how

individuals are to interact with other peopleindividuals are to interact with other people• Influenced by family, upbringing in general, and life Influenced by family, upbringing in general, and life

experiencesexperiences


Ethical Decisions and DilemmasEthical Decisions and DilemmasEthical Decisions and DilemmasEthical Decisions and Dilemmas

• A key ethical issue is how to disperse harm and A key ethical issue is how to disperse harm and benefits among stakeholders.benefits among stakeholders.If a firm has been very profitable for two years, If a firm has been very profitable for two years,

who should receive the profits? Employees, who should receive the profits? Employees, managers and stockholders all will want a managers and stockholders all will want a share.share.

Should the firm keep the cash for future Should the firm keep the cash for future slowdowns? What is the ethical decision?slowdowns? What is the ethical decision?

What about the reverse, when firms must What about the reverse, when firms must layoff workers?layoff workers?

If stockholders are the legal owners of the firm, If stockholders are the legal owners of the firm, shouldn’t they alone decide these questions?shouldn’t they alone decide these questions?


Ethical Decisions and Dilemmas Ethical Decisions and Dilemmas (cont’d)(cont’d)

Ethical Decisions and Dilemmas Ethical Decisions and Dilemmas (cont’d)(cont’d)

• Some other issues managers must consider.Some other issues managers must consider.Should a firm withhold payment to suppliers Should a firm withhold payment to suppliers

as long as possible to benefit the firm?as long as possible to benefit the firm?• This will harm its supplier who is a stakeholder.This will harm its supplier who is a stakeholder.

Should a firm provide severance pay to its Should a firm provide severance pay to its laid off workers?laid off workers?

• This will decrease the owners’ (the stockholders This will decrease the owners’ (the stockholders return.return.

Should goods be bought from overseas firms Should goods be bought from overseas firms that employ children?that employ children?

• If they aren’t bought, the children might not earn If they aren’t bought, the children might not earn enough money to eat.enough money to eat.


Why Behave Ethically?Why Behave Ethically?Why Behave Ethically?Why Behave Ethically?

• Managers should behave ethically to avoid Managers should behave ethically to avoid harming others.harming others.Managers are responsible for protecting and Managers are responsible for protecting and

nurturing resources of the firmnurturing resources of the firm

• Unethical managers run the risk for loss of Unethical managers run the risk for loss of reputation.reputation.This is a valuable asset to any manager; This is a valuable asset to any manager;

reputation is critical to long term reputation is critical to long term management success.management success.


Organizational CultureOrganizational CultureOrganizational CultureOrganizational Culture

• Organizational CultureOrganizational CultureThe set of shared values, norms, standards for The set of shared values, norms, standards for

behavior, and shared expectations that behavior, and shared expectations that influence the way in which individuals, groups, influence the way in which individuals, groups, and teams interact with each other and and teams interact with each other and cooperate to achieve organizational goals.cooperate to achieve organizational goals.

• Attraction-Selection-Attrition FrameworkAttraction-Selection-Attrition FrameworkA model that explains how personality may A model that explains how personality may

influence organizational culture.influence organizational culture.• Founders of firms tend to hire employees whose Founders of firms tend to hire employees whose

personalities that are to their own, which may or may personalities that are to their own, which may or may not benefit the organization over the long-term.not benefit the organization over the long-term.


Ethical Organizational CulturesEthical Organizational CulturesEthical Organizational CulturesEthical Organizational Cultures

• Components of an Ethical CultureComponents of an Ethical CultureEthical values and norms are a central Ethical values and norms are a central

component of the organizational culturecomponent of the organizational cultureA code of ethics guides decisions when A code of ethics guides decisions when

ethical decisions arise.ethical decisions arise.Managers serve as ethical role modelsManagers serve as ethical role models

• Ethics OmbudsmanEthics OmbudsmanAn ethics officer who monitors an An ethics officer who monitors an

organization’s practices and procedures to organization’s practices and procedures to ensure they are ethical.ensure they are ethical.


Social ResponsibilitySocial ResponsibilitySocial ResponsibilitySocial Responsibility

• Social ResponsibilitySocial ResponsibilityA manager’s duty or obligation make A manager’s duty or obligation make

decisions that promote the welfare and well-decisions that promote the welfare and well-being of stakeholders and society as a whole.being of stakeholders and society as a whole.


Approaches to Social ResponsibilityApproaches to Social ResponsibilityApproaches to Social ResponsibilityApproaches to Social Responsibility

Figure 3.8Source:


Approaches to Social Responsibility Approaches to Social Responsibility (cont’d)(cont’d)


• Obstructionist responseObstructionist responseManagers choose not to be socially Managers choose not to be socially

responsible. responsible. They behave illegally and unethically; hiding They behave illegally and unethically; hiding

and covering up problems.and covering up problems.




• Defensive responseDefensive responseManagers stay within the law but make no Managers stay within the law but make no

attempt to exercise additional social attempt to exercise additional social responsibility.responsibility.

Managers place shareholder interests above Managers place shareholder interests above those of all other stakeholders.those of all other stakeholders.

Managers argue that society should pass Managers argue that society should pass laws and create rules if change is needed.laws and create rules if change is needed.




• Accommodative responseAccommodative responseManagers acknowledge the need to support Managers acknowledge the need to support

social responsibility and try to balance the social responsibility and try to balance the interests of different stakeholders against one interests of different stakeholders against one another.another.

• Proactive responseProactive responseManagers actively embrace the need to behave in Managers actively embrace the need to behave in

socially responsible ways and go out of their way socially responsible ways and go out of their way to learn about needs of different stakeholders.to learn about needs of different stakeholders.

They are willing to utilize organizational They are willing to utilize organizational resources for both stockholders and stakeholders.resources for both stockholders and stakeholders.


Johnson & Johnson & Johnson CredoJohnson Credo

Johnson & Johnson & Johnson CredoJohnson Credo

Figure 3.9Source: Johnson & Johnson Annual Report.

3Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Attitudes, Values, Ethics, and.

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