霜标水月孤c.Social responsiveness refers to the capacity of a firm to adapt to changing societal conditions. The idea of
social responsiveness stresses that managers make practical decisions about the societal actions in which
17
they engage. A socially responsive organization acts the way it does because of its desire to satisfy some popular social need. Social responsiveness is guided by social norms. The value of social norms is that they can provide managers with a meaningful guide for decision making.
(moderate)
125. In a short essay, explain the four approaches that organizations can take with respect to environmental issues.
Answer
The first approach simply is doing what is required legally: the legal approach. Under this approach, organizations exhibit little environmental sensitivity. They obey laws, rules, and regulations willingly and without legal challenge, and they may even try to use the law to their own advantage, but that’s the extent of their being green. This approach is a good illustration of social obligation: These organizations simply are following their legal obligations of pollution prevention and environmental protection. As an organization becomes more aware of and sensitive to environmental issues, it may adopt the market approach. In this approach, organizations respond to the environmental preferences of their customers. Whatever customers demand in terms of environmentally friendly products will be what the organization provides. Under the next approach, the stakeholder approach, the organization chooses to respond to multiple demands made by stakeholders. Under the stakeholder approach, the green organization will work to meet the environmental demands of groups such as employees, suppliers, or the community. Both the market approach and the stakeholder approach are good illustrations of social responsiveness. Finally, if an organization pursues an activist approach, it looks for ways to respect and preserve the earth and its natural resources. The activist approach exhibits the highest degree of environmental sensitivity and is a good illustration of social responsibility.
(moderate)
126. In a short essay, describe the four-stage model of an organization’s expanding social responsibility.
Answer
A Stage 1 manager will promote stockholde rs’ interests by seeking to minimize costs and maximize profits.
Although all laws and regulations will be followed, Stage managers do not feel obligated to satisfy other societal needs. This is consistent with Friedman’s classical view of social respons ibility. At Stage 2, managers will accept their responsibility to employees and focus on human resource concerns. Because they’ll want to recruit, keep, and motivate good employees, Stage 2 managers will improve working conditions, expand employee rights, increase job security, and the like. At Stage 3, managers expand their responsibilities to other stakeholders in the specific environment—that is, customers and suppliers. Social responsibility goals of Stage
3 managers include fair prices, high-quality products and services, safe products, good supplier relations, and
similar actions. Their philosophy is that they can meet their responsibilities to stockholders only by meeting the needs of their other constituents. Finally, Stage 4 characterizes the extreme socioeconomic definition of social responsibility. At this stage, managers feel a responsibility to society as a whole. Their business is seen as a public entity, and they feel a responsibility for advancing the public good. The acceptance of such responsibility means that managers actively promote social justice, preserve the environment, and support social and cultural activities. They take these stances even if such actions negatively affect profits.
(moderate)
127. In a short essay, discuss the four views of ethics. Include a discussion of the benefits and drawbacks related to each of the four views.
Answer
a.The utilitarian view of ethics says that ethical decisions are made solely on the basic of their outcomes or
consequences. Utilitarian theory uses a quantitative method for making ethical decisions by looking at how to provide the greatest good for the greatest number. Utilitarianism encourages efficiency and productivity and is consistent with the goal of profit maximization. However, it can result in biased allocations of resources, especially when some of those affected by the decision lack representation or a voice in the decision. Utilitarianism can also result in the rights of some stakeholders being ignored.
b.The rights view of ethics is concerned with respecting and protecting inpidual liberties and privileges
such as the rights to privacy, freedom of conscience, free speech, life and safety, and due process. This would include, for example, protecting the free speech rights of employees who report legal violations by their employers. The positive side of the rights perspective is that it protects inpiduals’ basic rights, but
18
it has a negative side for organizations. It can present obstacles to high productivity and efficiency by creating a work climate that is more concerned with protecting inpiduals’ rights than with getting the job done.
c.The next view is the theory of justice view of ethics. Under this approach, managers are to impose and
enforce rules fairly and impartially and do so by following all legal rules and regulations. A manager would be using the theory of justice perspective by deciding to provide the same rate of pay to inpiduals who are similar in their levels of skills, performance, or responsibility and not basing that decision on arbitrary differences such as gender, personality, race, or personal favorites. Using standards of justice also has pluses and minuses. It protects the interests of those stakeholders who may be underrepresented or lack power, but it can encourage a sense of entitlement that might make employees reduce risk taking, innovation, and productivity.
d.The final ethics perspective, the integrative social contracts theory, proposes that ethical decisions should
be based on empirical and normative factors. This view of ethics is based on the integration of two ―contracts‖: the general social contract that allows businesses to operate and defines the acceptable ground rules, and a more specific contract among members of a community that addresses acceptable ways of behaving. This view of business differs from the other three in that it suggests that managers need to look at existing ethical norms in industries and companies in order to determine what constitutes right and wrong decisions and actions.
(difficult)
Chapter 6 – Decision-Making: The Essence of the Manager’s Job
True/False Questions
4. The first step in the decision-making process is identifying a problem.
True (easy)
6. It is possible at the end of the decision-making process that you may be required to start the decision process over again.
True (easy)
10. Decision-making is synonymous with managing.
True (easy)
12. One assumption of rationality is that we cannot know all of the alternatives.
False (difficult)
13. Accepting solutions that are "good enough" is termed satisfying.
False (easy)
15. Managers regularly use their intuition in decision-making.
True (easy)
16. Rational analysis and intuitive decision-making are complementary.
True (moderate)
18. Programmed decisions tend to be repetitive and routine.
True (easy)
21. Most managerial decisions in the real world are fully nonprogrammed.
False (easy)
24. Risk is a situation in which a decision maker has neither certainty nor reasonable probability estimates.
False (difficult)
25. An optimistic manager will follow a maximin approach.
False (moderate)
Multiple Choice
THE DECISION-MAKING PROCESS
34. A series of eight steps that begins with identifying a problem and decision criteria and allocating weights to those criteria; moves to developing, analyzing, and selecting an alternative that can resolve the problem; implements the alternative; and concludes with evaluating the decision's effectiveness is the ______________.
a. decision-making process. (easy)
b. managerial process.
c. maximin style.
d. bounded rationality approach.
e. legalistic opportunism process.
19
36. "A discrepancy between an existing and a desired state of affairs" describes which of the steps in the decision-making process?
a. criteria weight allocation
b. analysis of alternatives
c. problem identification (difficult)
d. decision effectiveness evaluation
e. decision criteria identification
38. Which of the following must be present in order to initiate the decision-making process?
a. plenty of time
b. pressure to act (moderate)
c. a lack of authority
d. a lack of resources
e. environmental certainty
39. Managers aren't likely to characterize something as a problem if they perceive ______________.
a. they don't have authority to act. (difficult)
b. pressure to act.
c. a discrepancy.
d. they have sufficient resources.
e. they have budgetary authority.
44. Selecting an alternative in the decision-making process is accomplished by ______________.
a. choosing the alternative with the highest score. (easy)
b. choosing the one you like best.
c. selecting the alternative that has the lowest price.
d. selecting the alternative that is the most reliabl
e.
e. choosing the alternative you think your boss would prefer.
47. Which of the following is the final step in the decision-making process?
a. identifying the problem
b. evaluating the decision's effectiveness (easy)
