Chapter
3
Attitudes, Values, Ethics,
and Culture:
The Manager as a Person
PowerPoint Presentation by Charlie Cook
© Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved.
Learning Objectives
• After studying the chapter, you should be able to:
Describe the various personality traits that affect how
managers think, feel, and behave.
Explain what values, attitudes, and moods and emotions
are and describe their impact on managerial action.
Illustrate how ethics hilp managers determine the right
or proper way to behave when dealing with different
stakeholder groups.
Define organizational culture and explain the role
managers play in creating it.
Explain why managers should strive to create ethical
organizational cultures.
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3–2
Chapter Outline
• Enduring Characteristics: Personality Traits
The Big Five Personality Traits
Other Personality Traits that Affect Managerial
Behavior
• Values, Attitudes, and Moods and Emotions
Values: Terminal and Instrumental
Attitudes
Moods and Emotions
Emotional Intelligence
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3–3
Chapter Outline (cont’d)
• Ethics and Stakeholders
Which Behaviors Are Ethical
Why Would Managers Behave Unethically Toward
Other Stakeholders?
Sources of an Organization’s Code of Ethics
• Organizational Culture
How Managers Influence Organization Culture
Ethical Organizational Cultures
Social Responsibility
• Summary and Review
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Personality Traits
• Personality Traits
Enduring tendencies to feel, think, and act in
certain ways
Characteristics that influence how people think, feel
and behave on and off the job
The personalities of managers account for the
different approaches that managers adopt to
management.
Traits are viewed as a continuum (from high to low)
along which individuals fall.
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3–5
The Big Five
Personality
Traits
Source:
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Figure 3.1
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The Big Five Personality Traits (cont’d)
• Extroversion
The tendency to experience positive emotions and
moods and to feel good about oneself and the rest
of the world
• Managers high on this trait are sociable and friendly.
• Negative Affectivity
The tendency to experience negative emotions and
moods, to feel distressed, and to be critical of
oneself and others
• Managers high on this trait are often critical and feel
angry with others and themselves.
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A Measure of
Negative
Affectivity
Source: Tellegen, Brief Manual for the
Differential Personality Questionnaire
(unpublished manuscript, University of
Minnesota, 1982).
Figure 3.2
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3–8
The Big Five Personality Traits (cont’d)
• Agreeableness
The tendency to get along well with other people
• Managers high on this trait are likable, and care
about others.
• Conscientiousness
The tendency to be careful, scrupulous, and
persevering
• Openness to Experience
The tendency to be original, have broad interests,
to be open to a wide range of stimuli, be daring,
and take risks
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Traits and Managers
• Successful managers vary widely on the “Big
Five”.
It is important to understand these traits since it
helps explain a manager’s approach to planning,
leading, organizing, etc.
Managers should also be aware of their own style
and try to tone down problem areas.
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Other Personality Traits…
• Internal Locus of Control
The tendency to locate responsibility for one’s own
fate within oneself
• People believe they are responsible for their fate and
see their actions as important to achieving goals.
• External Locus of Control
The tendency to locate responsibility for one’s fate
within outside forces and to believe that one’s own
behavior has little impact on outcomes
• People believe external forces decide their fate and
their actions make little difference.
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Other Personality Traits… (cont’d)
• Self-Esteem
The degree to which people feel good about
themselves and their abilities
• High self-esteem causes a person to feel competent,
and capable.
• Persons with low self-esteem have poor opinions of
themselves and their abilities.
• Need for Achievement
The extent to which an individual has a strong
desire to perform challenging tasks well and meet
personal standards for excellence
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Other Personality Traits… (cont’d)
• Need for Affiliation
The extent to which an individual is concerned
about establishing and maintaining good
interpersonal relations, being liked, and having
other people get along
• Need for Power
The extent to which an individual desires to control
or influence others
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Values, Attitudes, and
Moods and Emotions
• Values
Describe what managers try to achieve through
work and how they think they should behave
• Attitudes
Capture managers’ thoughts and feelings about
their specific jobs and organizations.
• Moods and Emotions
Encompass how managers actually feel when they
are managing
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3–14
Values
• Terminal Values
A personal conviction about life-long goals
• A sense of accomplishment, equality, and selfrespect.
• Instrumental Values
A personal conviction about desired modes of
conduct or ways of behaving
• Being hard-working, broadminded, capable.
• Value System
The terminal and instrumental values that are the
guiding principles in an individual’s life.
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Terminal and
Instrumental
Values
Source: Rokeach,
The Nature of Human
Values (New York:
Free Press, 1973).
Figure 3.3
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3–16
Attitudes
• Attitudes
A collection of feelings and beliefs.
• Job Satisfaction
A collection of feelings and beliefs that managers
have about their current jobs.
• Managers high on job satisfaction have a positive
view of their jobs.
• Levels of job satisfaction tend increase as managers
move up in the hierarchy in an organization.
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Sample Items
from Two
Measures of
Satisfaction
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.
Figure 3.4
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Attitudes (cont’d)
• Organizational Citizenship Behaviors
Behaviors that are not required of organizational
members but that help the firm in gaining a
competitive advantage.
• Managers with high satisfaction are more likely
perform these “above and beyond the call of duty”
behaviors.
• Managers who are satisfied with their jobs are less
likely to quit.
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Attitudes (cont’d)
• Organizational Commitment
The collection of feelings and beliefs that managers
have about their organization as a whole
• Committed managers are loyal to and are proud of
their firms.
• Commitment can lead to a strong organizational
culture.
• Commitment helps managers perform their
figurehead and spokesperson roles.
• The commitment of international managers is affected
by job security and personal mobility.
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A Measure of
Organizational
Commitment
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.
Figure 3.5
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Moods and Emotions
• Mood
A feeling or state of mind
• Positive moods provide excitement, elation, and
enthusiasm.
• Negative moods lead to fear, distress, and
nervousness.
• Current situations and a person's basic outlook affect
a person’s current mood.
A manager’s mood affects their treatment of others
and how others respond to them.
• Subordinates perform better and relate better to
managers who are in a positive mood.
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A Measure of Positive and Negative Mood at Work
Source: 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.
© Copyright McGraw-Hill. All rights reserved.
Figure 3.6
3–23
Emotional Intelligence
• Emotional Intelligence
The ability to understand and manage one’s own
moods and emotions and the moods and emotions
of other people.
• Assists managers in coping with their own emotions.
• Helps managers carry out their interpersonal roles of
figurehead, leader, and liaison.
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Ethics and Stakeholders
• Organizational Stakeholders
Shareholders, employees, customers, suppliers,
and others who have an interest, claim, or stake in
an organization and in what it does
• Each group of stakeholders wants a different
outcome and managers must work to satisfy as many
as possible.
• Managers have the responsibility to decide which
goals an organization should pursue to most benefit
stakeholders—decisions that benefit some
stakeholder groups at the expense of others.
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Ethics and Stakeholders (cont’d)
• Ethics
Moral principles or beliefs about what is right or
wrong
Ethics guide managers in their dealings with
stakeholders and others when the best course of
action is unclear.
Managers often experience an ethical dilemma in
choosing between the conflicting interests of
stakeholders.
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Ethical Decision Models
• Utilitarian Model
An ethical decision is one that produces the
greatest good for the greatest number of people.
• Moral Rights Model
An ethical decision is one that best maintains and
protects the fundamental rights and privileges of
the people affected by it.
• Justice Model
An ethical decision is one that distributes benefits
and harms among stakeholders in a fair, equitable,
or impartial way.
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Practical Guide to Ethical Decisions
• Does the manager’s decision fall within usual
and accepted standards?
• Is the manager willing to personally and
openly communicate the decision to all
affected stakeholders?
• Does the manager believe that his friends
would approve?
• If the answer is “Yes” to all of the above, the
decision is probably an ethical decision.
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Ethical versus Unethical Decisions
• Ethical Decision
A decision that is reasonable or typical stakeholders
would find acceptable because it aids stakeholders,
the organization, or society.
• Unethical Decision
A decision that a manager would prefer to disguise
or hide from other people because it enables the
company or a particular individual to gain at the
expense of society or other stakeholders.
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Sources of An
Organization’s
Code of Ethics
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Figure 3.7
3–30
Sources of Ethics
• Societal Ethics
Standards that govern how members of a society
are to deal with each other on ethical issues
• Based on values and standards found in society’s
legal rules, norm, and mores
• Codified in the form of laws and societal customs
• Ethical norms dictate how people should behave.
• Societal ethics vary among societies.
Strong beliefs in one country may differ elsewhere.
• Payment of bribes, an illegal act in the U. S., is an
accepted business practice in many countries.
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Sources of Ethics
• Professional ethics
Standards that govern how members of a
profession are to make decision when the way they
should behave is not clear-cut
• Physicians and lawyers have professional
associations that enforce these.
• Individual ethics
Personal standards that govern how individuals are
to interact with other people
• Influenced by family, upbringing in general, and life
experiences
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Ethical Decisions and Dilemmas
• A key ethical issue is how to disperse harm
and benefits among stakeholders.
If a firm has been very profitable for two years,
who should receive the profits? Employees,
managers and stockholders all will want a share.
Should the firm keep the cash for future
slowdowns? What is the ethical decision?
What about the reverse, when firms must layoff
workers?
If stockholders are the legal owners of the firm,
shouldn’t they alone decide these questions?
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Ethical Decisions and Dilemmas (cont’d)
• Some other issues managers must consider.
Should a firm withhold payment to suppliers as long
as possible to benefit the firm?
• This will harm its supplier who is a stakeholder.
Should a firm provide severance pay to its laid off
workers?
• This will decrease the owners’ (the stockholders
return.
Should goods be bought from overseas firms that
employ children?
• If they aren’t bought, the children might not earn
enough money to eat.
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Why Behave Ethically?
• Managers should behave ethically to avoid
harming others.
Managers are responsible for protecting and
nurturing resources of the firm
• Unethical managers run the risk for loss of
reputation.
This is a valuable asset to any manager; reputation
is critical to long term management success.
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Organizational Culture
• Organizational Culture
The set of shared values, norms, standards for
behavior, and shared expectations that influence
the way in which individuals, groups, and teams
interact with each other and cooperate to achieve
organizational goals.
• Attraction-Selection-Attrition Framework
A model that explains how personality may
influence organizational culture.
• Founders of firms tend to hire employees whose
personalities that are to their own, which may or may
not benefit the organization over the long-term.
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Ethical Organizational Cultures
• Components of an Ethical Culture
Ethical values and norms are a central component
of the organizational culture
A code of ethics guides decisions when ethical
decisions arise.
Managers serve as ethical role models
• Ethics Ombudsman
An ethics officer who monitors an organization’s
practices and procedures to ensure they are ethical.
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Social Responsibility
• Social Responsibility
A manager’s duty or obligation make decisions that
promote the welfare and well-being of stakeholders
and society as a whole.
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Approaches to Social Responsibility
Source:
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Figure 3.8
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Approaches to Social Responsibility (cont’d)
• Obstructionist response
Managers choose not to be socially responsible.
They behave illegally and unethically; hiding and
covering up problems.
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Approaches to Social Responsibility (cont’d)
• Defensive response
Managers stay within the law but make no attempt
to exercise additional social responsibility.
Managers place shareholder interests above those
of all other stakeholders.
Managers argue that society should pass laws and
create rules if change is needed.
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Approaches to Social Responsibility (cont’d)
• Accommodative response
Managers acknowledge the need to support social
responsibility and try to balance the interests of
different stakeholders against one another.
• Proactive response
Managers actively embrace the need to behave in
socially responsible ways and go out of their way to
learn about needs of different stakeholders.
They are willing to utilize organizational resources
for both stockholders and stakeholders.
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Johnson & Johnson
Credo
Source: Johnson & Johnson Annual Report.
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Figure 3.9
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