Workplace Deviance
Ethical Behavior - conforms to a society’s
accepted principles of right and wrong.
Workplace Deviance - unethical behavior that
violates organizational norms about right and
wrong
Types of Workplace Deviance:
● Production Deviance
● Property Deviance
● Political Deviance
● Personal Aggression
Production Deviance:
- Leaving Early
- Taking Excessive Breaks
- Intentionally Working Slowly
- Wasting Resources
Property Deviance:
- Sabotaging Equipment
- Accepting Kickbacks
- Lying About Hours Worked
- Stealing From Company
Political Deviance:
- Showing Favoritism
- Gossiping About Coworkers
- Blaming Coworkers
- Competing Nonbeneficially
Personal Aggression:
- Sexual Harassment
- Verbal Abuse
- Stealing From Coworkers
- Endangering Coworkers
Compliance Program Steps:
● Establish
● Assign
● Delegate
● Encourage
● Train
● Enforce
● Improve
Influences on Ethical Decision Making:
- Ethical Intensity of the Decision
- Moral Development
- Principles of Ethical Decision Making
Ethical Intensity of the Decision:
● Magnitude of Consequences
- Total harm or benefit from an ethical
decision.
● Social Consensus
- Agreement on whether behavior is good
or bad.
● Probability of Effect
- Will it happen again?
● Temporal Immediacy
- Time between act and consequence.
● Proximity of Effect
- Distance between decision maker and
person affected.
● Concentration of Effect
- How the act affects the average person
Kohlberg’s Stages of
Moral Development
Moral development of the manager.
Phases:
● Preconventional level of moral
development
● Conventional level of moral
development
● Postconventional level of moral
development
Ethical Principles:
- Long-term Self-interest: should never
take any action that is not in your
organization’s long-term interest.
- Religious Injunctions - should never
take action unkind/harms a sense of
community.
- Government Requirements - law
represents the minimal moral standards
of society, so never violate law.
- Individual Rights - should never take
action that infringes on others agreed
upon rights.
- Personal Virtue - should never do
anything not honest, open, and truthful.
- Distributive Justice - should never take
action that harms the least fortunate
among us in some way.
- Utilitarian Benefits - should never take
action that does not result in greater
good of society.
Codes of Ethics - a company must
communicate its code inside and outside the
company.
Objectives of Ethics:
● Training Develop employees’ awareness
of ethics.
● Achieve credibility with employees.
● Teach employees a practical model of
ethical decision making.
1. Identify the Problem: what makes it an
ethical problem.
2. Identify the Constituents: who’s been
hurt?
3. Diagnose the Situation: how did it
happen in the first place?
4. Analyze your Opinion: imagine the
range of possibilities.
5. Make your Choice: what is your
intention in making this decision?
6. Act: do what you have to do.
Social Responsibility of Organizations:
● Economic Responsibility
● Legal Responsibility
● Ethical Responsibility
● Discretionary Responsibilities
Economic Responsibility - to make a profit by
producing a valued product or service.
Legal Responsibility - to obey society’s laws
and regulations.
Ethical Responsibility - to abide accepted
principles of right and wrong when conducting
business.
Discretionary Responsibilities - Social roles
that a company fulfill beyond its economic,
legal, and ethical responsibilities
Shareholder model - organization’s overriding
goal should be profit maximization for the
benefit of shareholders.
Stakeholder model - management’s most
important responsibility is long-term survival.
achieved by satisfying the interests of multiple
corporate stakeholders.
Responses to Demands for Social
Responsibility:
● Reactive Strategy
● Defensive Strategy
● Accommodative Strategy
● Proactive Strategy
Reactive Strategy - company does less than
society expects.
Defensive Strategy - company admits
responsibility for a problem but does the least
required to meet societal expectations.
Accommodative Strategy - company accepts
responsibility for a problem and does all that
society expects to solve that problem.
Proactive Strategy - company anticipates a
problem before it occurs and does more than
society’s expectations.
Planning and Decision Making
Planning:
- Choosing a goal
- Double-edged sword
- Developing a method or strategy to
achieve that goal
Benefits and Pitfalls of Planning:
(benefits)
- Employee efforts intensified
- Leads to persistence
- Provides direction
- Works for companies and individuals
(pitfalls)
- Impedes change
- Prevents or slows needed adaptation
- Detachment of planners
How to Make a Plan That Works:
1. Set Goals
2. Develop Commitment
3. Develop Effective Action Plans
4. Track Progress Toward Goal
Achievement
5. Maintain Flexibility
Setting Goals/S.M.A.R.T. Goals:
● Specific
● Measurable
● Attainable
● Realistic
● Timely
Goal commitment - is the determination to
achieve a goal.
Develop Effective Action Plans:
● Specific steps (how)
● People (who)
● Resources (what)
● Time period (when)
Tracking Progress - set proximal goals
(short-term) and distal goals (long-term).
Options-based Planning - keep options open
by making small simultaneous investments in
many alternative plans.
Slack Resources - a cushion of resources, like
extra time or money, that can be used to
address and adapt to unanticipated changes.
Satisficing - choosing a good-enough
alternative.
Structured Conflict - right kind of conflict can
lead to better group decision making.
C-type (Cognitive) Conflict:
- focuses on problem and issue-related
differences of opinion.
- willingness to examine, compare,
reconcile differences to produce the best
possible solution.
A-type (Affective) Conflict:
- focuses on individuals or personal
issues.
- emotional reaction that can occur when
disagreements become personal.
- hostility, anger, resentment, distrust,
cynicism, apathy.
Creating C-Type Conflict
● Devil’s advocacy
● Dialectical Inquiry - propose solution
(thesis), then generate an opposite
proposal (antithesis).
● Nominal Group Technique - begins
and ends by having group members
write down and evaluate ideas.
- shared with the group.
- improves group decision making
by decreasing a-type conflict.
● Delphi Technique
- don’t have to meet face-to-face.
● Brainstorming/Electronic
brainstorming - all anonymous.
- group members use computers
to build on each others’ ideas
- generate as many alternative
solutions as possible
Absolute comparisons - each decision
criterion is compared to a standard or ranked
on its own merits
Relative comparisons - each decision criterion
is compared directly with every other criterion

Organizational Strategy
Resources:
assets, capabilities, processes, employee
time, information, and knowledge that an
organization controls.
improve its effectiveness and efficiency.
Competitive advantage:
providing greater value for customers than
competitors can using resources.
Sustainable competitive advantage:
when other companies cannot duplicate the
value a firm is providing to customers.
Components of Sustainable Competitive
Advantage:
● Valuable Resource
● Rare Resource
● Imperfectly imitable Resource
● Nonsubstitutable Resource
Valuable Resource:
allows companies to improve efficiency and
effectiveness.
Rare Resource:
not controlled or possessed by many
competing firms
Imperfectly imitable Resource:
impossible or extremely difficult for other
firms to duplicate.
Nonsubstitutable Resource:
produces value and has no equivalent
substitutes.
Three Steps of the Strategy-Making Process:
1. Assess the need for strategic change.
2. Conduct a situational analysis.
3. Choosing Strategic Alternatives.
S.W.O.T:
● Strengths (internal)
● Weaknesses (internal)
● Opportunities (external)
● Threats (external)
Assess the need for strategic change:
difficult because there is a lot of uncertainty
in business.
Competitive Inertia - reluctance to change
strategies that were successful in the past.
Strategic Dissonance - discrepancy between a
company’s intended strategy.
Conduct a situational analysis:
Distinctive Competence - something that a
company can make, do, or perform better than
competitors.
Core Capabilities - less visible, internal
decision-making routines, and organizational
cultures that determine how efficiently inputs
can be turned into outputs.
Strategic Group - group of companies within
an industry that top managers choose to
compare, evaluate, and benchmark strategic
threats and opportunities.
Core firms - central companies in a strategic
group.
Secondary Firms - firms that use strategies
related to but somewhat different from those of
core firms.
Shadow-strategy Task Force - companies
actively seek their own weaknesses by thinking
like its competitors.
Choosing Strategic Alternatives:
decision is based on whether the company
falls above or below strategic reference points.
Risk-avoiding Strategy: usually used when
above or better than the reference points.
Risk-seeking Strategy: usually used when
below or worse.
Corporate-Level Strategies:
● Grand Strategy
● Growth Strategy
● Stability Strategy
● Retrenchment Strategy
Grand strategy:
helps an organization achieve its strategic
goals.
Growth strategy:
focuses on increasing profits, or the number
of places the company trades.
Stability strategy:
focuses on improving the way in which the
company sells the same products or services to
the same customers.
Retrenchment strategy:
focuses on turning around very poor
company performance.
- Cost reduction: closing stores, layoffs,
drop product lines.
- Recovery: strategic actions taken after
retrenchment to return to a growth
strategy
Industry-Level Strategies
● Five industry forces according to
Michael Porter
● Positioning Strategies (Michael Porter)
● Adaptive Strategies
Porter’s Five Industry Forces:
1. Character of Rivalry
2. Threats of New Entrants
3. Threats of Substitute Products or
Services
4. Bargaining Power of Suppliers
5. Bargaining Power of Buyers
Character of the Rivalry: measure of the
intensity of competitive behavior between
companies in an industry.
Threat of New Entrants: measure of the
degree to which barriers to entry make it
easy or difficult for new companies to get
started in an industry.
Threat of Substitute Products or Services:
measure of the ease with which customers
can find substitutes for an industry’s products
or services.
Bargaining Power of Suppliers: measure of
the influence that suppliers of parts,
materials, and services to firms in an industry
have on the prices of these inputs.
Bargaining Power of Buyers: Measure of the
influence that customers have on a firm’s
prices.

Positioning Strategies - Porter’s:

● Cost Leadership
● Differentiation
● Focus Strategy
Cost leadership:
producing a product of acceptable quality at
consistently lower production costs than
competitors.
Differentiation:
providing a product that is different from
competitors’ offerings that customers are willing
to pay a premium price for.
Focus strategy:
involves using cost leadership or
differentiation to produce a specialized product.

Firm-Level Strategies
Direct competition:
rivalry between two companies that offer
similar products and services.
Types of Firm-Level Strategies
● Attack
● Response
Attack:
competitive move designed to reduce a
rival’s market share or profits.
Response:
competitive countermove, prompted by a
rival’s attack.

Types of Strategies Undertaken by

Organizations:
● Corporate-level Strategy
● Industry-level Strategy
● Firm-level Strategy

THE END MGA BADING.

GOOD LUCK SA MIDTERM!!!