OS ch. 2

28 flashcards · Other · by Daniel F.

1. Stakeholders

   People who have an interest, claim or stake in an organization, in what it does, and in how well it performs.

2. Inducements (incentive)

   Rewards such as money, power and organizational status

3. Contributions

   The skills, knowledge and expertise that organizations require of their members during task performance.

4. Inside stakeholders

   Inside stakeholders are people who are closest to an organization and have the strongest or most direct claim on organizational resources.

5. Shareholders

6. Managers

7. The workforce

8. Outside stakeholders

   Outside stakeholders are people who do not own the organization and are not employed by it, but they do have some claim of or interest in it.

9. Outside stakeholders list

   Customers, Suppliers, Government, Unions, Community, General public, Inducement to contribute

10. Authority

    The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.

11. Inside directors

    Directors who also hold offices in a company’s formal hierarchy; they are full-time employees of the company.

12. Outside directors

    Are not employees of the company; many are professional directors who hold positions on the board of many companies, or they are executives of other companies who sit on other companies’ boards.

13. Line role

    Managers who have direct responsibility for the production of goods and services.

14. Staff role

    Managers who are in charge of a specific organizational function such as sales or R&D

15. Top-management team

    A group of managers who report to the CEO and COO and help the company’s strategy and its long-term goals and objectives

16. Corporate managers

    The members of the top-management team whose responsibility is to set strategy for the corporation as a whole.

17. Agency problem

    A problem in determining managerial accountability that arises when delegating authority to managers. (managers seizing the means of production)

18. Self-dealing

    Managers who take advantage of their position in an organization to act in ways to further their own self-interest.

19. Governance mechanisms

    The forms of control that align the interests of principal and agent so both parties have the incentive to work together to maximize organizational effectiveness.

20. Ethical dilemma

    The quandary people experience when they must decide whether or not they should act in a way that benefits someone else, even if it harms others and isn’t in their own interest.

21. Ethics

    Moral principles or beliefs about what is right or wrong

22. Utilitarian model

    An ethical decision is one that produces the greatest good for the greatest number of people

23. Moral rights model

    An ethical decision is a decision that best maintains and protects the fundamental rights and privileges of the people affected by it.

24. Justice model

    An ethical decision is a decision that distributes benefits and harms among stakeholders in a fair, equitable or impartial way.

25. Societal ethics

26. Professional ethics

27. Individual

28. Why does unethical behaviour occur?

    Personal ethics, Self-interest, Outside pressure