Chapter 5: Managerial Ethics & Corporate Social Responsibility

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Individual Differences:
Mental Functioning, Emotional
Intelligence, Personality Perception,
Attitudes, and Values
B = f (P,E)
(Behavior is a function
of the person and the
environment.)
Why is the study of
Individual Differences
of interest to managers?
Selection
 Placement
 Training
 Motivation
 Leadership

Mental Ability

General Intelligence (g factor)
» Correlates with most tests of specific ability
» Correlates with performance in most jobs

Specific Intelligences (s factors)
» e.g., memory verbal comprehension, numerical
ability, word comprehension, perceptual speed
» Correlate with Job Satisfaction in work utilizing
the specific ability in question
Cognitive Styles

How do we gather information?
» Sensing - Look at the facts, details.
» Intuiting - Brainstorm, get a general overview.

How do we choose between alternatives?
» Thinking - Analyze objectively, reason.
» Feeling - Consider the impact on people.
Cognitive Styles

Sensation / Thinking (ST) (e.g., technician)

Intuitive / Thinking (NT) (e.g., planner)

Sensation / Feeling (SF) (e.g., teacher)

Intuitive / Feeling (NF) (e.g., artist)
Myers-Briggs Test

Has 4 dimensions:
» Sensing vs. Intuiting
» Thinking vs. Feeling
» Extraversion vs. Introversion
» Judger vs. Perceiver
– (decisive vs. flexible)

Higher and lower positions in each of the
dimensions are used to classify people
into one of 16 different personality
categories.
Emotional Intelligence
Dimensions
1)
2)
3)
4)
Knowing one’s own emotions
Controlling one’s emotions
Recognizing others’ emotions (Empathy)
Influencing others’ emotions
Author Daniel Goleman says incompetence in
management occurs more often from lack
of EQ than lack of IQ
Personality

Nature of Personality
» Internal State
» Uniqueness
» Consistency
» Stability

Managers should be aware of
subordinates’ characteristics.

Managers should also be aware of
their own characteristics.
Personality Theories

Developmental Stage (Psychodynamic)
» (Freud, etc.)

Trait-Based (“Big Five”, etc.)
» e.g., Neurotic, Extraversion, Authoritarian (Eysenck)

Motive-Based
» e.g., Achievement, Affiliation, Power (McClelland)

Belief-Based
» e.g., Internal vs. External Locus of Control (Rotter)
Personality Theory:
The Big Five Traits:
Extraversion (vs. Introversion)
 Sociable, friendly.
Emotional Stability (vs. Neuroticism):
 Neurotics are often critical and feel angry
with others and themselves.
Agreeableness
 Likable, care about others.
Conscientiousness
 Careful, persevering.
Openness to Experience:
 Flexible, with broad interests.
Other Characteristics
»
Self-Monitoring: Tendency to manage
impressions others have of you
»
Risk taking and thrill seeking
»
Self-Esteem: Degree to which people feel good
about themselves and abilities.
Locus of Control

People who believe that they are in control of
their own lives are said to have an Internal
locus of control.

People who think that forces beyond their
control dictate what happens to them are said
to have an External locus of control.
Testing Intelligence and
Personality


When using in
selection and
placement: Back
up with validity
studies.
In General:
» Intelligence TestsModerate Validity
» Personality TestsLow Validity
Perception
“The link between the person and the
environment”
 Broadly defined, includes Social
Perception (impressions of people)

The Perception Process
Observing “data”
via the senses
Screening the
“data” and
selecting what to
process
Organizing the
selected “data” into
patterns for
interpretation and
response
Perception

Why are perceptions often distorted?
» Why do people not always perceive things as
they are?
» Why do people perceive things differently?
– Different people
– Same person at different times
Sources of Perceptual
Distortions

Selectivity (perceiving only part of envir.
or some parts more than others)
» External Factors (i.e., currently in physical
environment)
– Similarity, Size, Nearness, Motion
» Internal Factors
– Experience, Motivation

Closure (adding to your perception)
» Stereotyping
» Halo Effects
» Projection
General Perception Problems
 Selectivity
» Only notice stimuli which are
consistent with our values and
beliefs
 Closure
» Assume that what we don’t know is
consistent with what we do know
Values and Attitudes

Values (Basic Convictions – What is
right, good, desirable)
» General - Contain many attitudes
» e.g., Conservative, Liberal, etc.

Attitudes (Beliefs, Assumptions)
» Evaluative judgments focused on specific
objects, concepts
» e.g., Attitude toward welfare payments
Types of Values

Terminal Values
» Desired Goals
» e.g., World Peace, Happiness, Freedom, True
Friendship, Equality, Family Security

Instrumental Values
» Means of Achieving Terminal Values
» e.g., Ambition, Politeness, Self-Reliance,
Honesty, Cheerfulness, Open-Mindedness
Work Values Across Generations
Group Entered Workforce
Values
Veterans
1945-1964
Loyal to Organization
Conforming
Boomers
1965-1984
Loyal to Careers
Dislike Authority
Xers
1985-1999
Loyal to Relationships
Seek Work-Life Balance
Nexters
2000-Present
Loyal to Self & Relationships
Self-Reliant but
Team-oriented
Attitudes: The ABC Model
 Affect
» Feelings for an object
 Behavioral
Intentions
» Observed Behavior toward it
 Cognition
» Beliefs about it
Attitude Change Techniques
 Persuasion
» Cognition -> Behavior
 Conditioning
» Affective -> Cognition -> Behavior
 Cognitive Dissonance Production
» Behavior -> Cognition -> Affective
(Based on the assumption that people are motivated
to protect their self-concepts. This requires a
perceived consistency among the three
components.)
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