Organizational Factors: Structure, Relationships, and Conflicts

1
Chapter 7

• Organizational Factors Structure, Relationships,
  and Conflicts

2
Key Influences on Ethical Behavior

• society
• corporate culture
• significant others
• strength of the individuals personal values
• opportunity
• exposure to others that behave (un)ethically
• informal relationships
• formal relationships

3
Responsibility of the Corporation as a Moral
Agent

• chartered as citizens of a state and nation,
  therefore have all the rights and
  responsibilities of individuals
• responsible to society for its decisions
• assigned to promote business ethics and social
  responsibility
• must require compliance with ethical policies
  representing the interests of all stakeholders

4
Variation in Employee Conduct

• 10will take advantage of situations to
  further their own personal interests
• 40will go along with the work group on most
  matters
• 40will try to follow company policies and
  rules and have a strong grasp of the corporate
  culture
• 10maintain formal standards that focus on
  rights, duties and rules

5
Socialization...

• the process through which a person learns the
  values and behavior patterns considered
  appropriate by an organization or group
• has a significant influence on ethical behavior
• ethical conflict arises when the values and
  norms of the individual conflict with those
  taught through socialization

6
Role-Sets...

• the total of all role relationships in which an
  individual is involved because of his or her
  position in an organization
• Role-sets may help predict ethical behavior.
• Persons in the same department are socialized
  similarly and share the
  same specialization and knowledge base.
• Members of an organization have more in
  common with one another than with members
  of other organizations.

7
Role Stress...

• strain, conflict, or disruption that results from
  a lack of agreement on certain job-related
  activities
• The role that an individual plays in the
  business, and the tasks associated with that
  role, can potentially create conflict that has a
  direct bearing on ethical decision-making
  behavior.

8
Differential Association...

• refers to the idea that people learn ethical or
  unethical behavior while interacting with others
  who are part of their role-sets or other intimate
  personal groups
• If interaction is with those who behave
  unethically, parallel behavior may be expected.
• Superiors have strong influence on the ethics of
  their subordinates.
• Differential association with peers and
  opportunity are better predictors of unethical
  behavior than is the persons own ethical belief
  system.

9
Whistle-Blowing...

• when unethical or illegal behavior occurs in the
  organization and individual interpersonal
  conflict occurs
• exposing an employers wrongdoing to outsiders
  such as the media or government regulatory
  agencies
• provides an in-house mechanism for employees to
  voice concerns
• usually anonymous

10
Questions to Ask Before Blowing the Whistle...

• Is this the only method to resolve my concern?
• Do I have the appropriate documentation or
  evidence to prove my case?
• What is my motivation?
• Am I prepared to deal with the personal and
  professional repercussions?
• Adapted from Paula Dwyer and Dan Carney (2002)
  Year of the Whistleblower, Business Week, Dec.
  16, p. 108.

11
Organizational Pressures...

• Success in organizations is determined through
  the achievement of organizational goals.
• Internal organizational pressure stemming from
  role-set relationships and differential
  association is a major predictor of unethical
  behavior.
• Top management and superiors play crucial roles
  in developing the environment that influences
  ethical behavior.

12
Opportunity Creates Ethical Dilemmas...

• Opportunity is a set of conditions that limits
  unfavorable behavior or rewards favorable
  behavior.
• Rewards may be internal (self-worth, enjoyment).
• Rewards may be external (raises, promotion).
• A person who behaves unethically and is
  rewarded is likely to continue the behavior
  punishment is a more suitable deterrent.

13
Opportunity Also Comes from Knowledge...

• A person with information, expertise or
  competitive knowledge has the opportunity to
  exploit this knowledge.
• Long-term employment with one company leads to
  gatekeepingsocializing newer employees regarding
  culture, tradition, rules, unwritten traditions,
  etc.
• Trainers and mentors influence new employees
  behavior.

14
Conflict Resolution...

• occurs when it is not clear which goals or values
  take precedencethose of the organization or a
  group within the organization
• personal-organizational conflict
• personal-societal conflict
• organizational-societal conflict

15
Types of Conflict...

• person-organizational
• occurs when a persons individual values and
  methods for reaching desired goals are different
  from the organization or work group
• person-societal
• when an individuals values deviate from those of
  society (societys values--laws and regulations)
• organizational-societal
• norms and values of business conflict with society

16
Improving Ethical Decision Making in Business...

• ethical behavior depends on
• the embedded organizational value system
  (corporate culture)
• significant others
• personal value preferences of the
  organizations groups and individual members