Exam #3 Chapters 7-9 Flashcards
(45 cards)
corporate culture
the shared beliefs top managers in a company have about how they should manage themselves and other employees and how they should conduct their business
Sarbanes Oxley 404
compliance section, management assesses the effectiveness of the organizations internal controls and commission audits of these controls by an external auditor in conjunction with the audit of it’d financial statements, requires firms to adopt a set of values that forms a portion of the companies culture, mandates an evaluation of corporate culture to provide insight into the character of an organization, its ethics and transparency, the intent is to expose mismanagement, fraud, theft, etc
Two basic dimensions in an organizations culture
concern for people, concern for performance
concern for people
the organizations efforts to care for its employees well being
concerns for performance
the organizations efforts to focus on output and employee productivity
apathetic culture
minimal concern for people or performance, individuals focus on self-interest
caring culture
high concern for people but minimal concern for performance issues, it is difficult to find nationally recognizable companies that maintain little or no concern for performance
exacting culture
little concern for people but a high concern for performance, focuses on the interests of the organization
integrative culture
combines a high concern for people and performance
cultural audit
an assessment of an organizations values, conducted by outside consultants
compliance based
the accounting professional model, organized around risk, rules create a compliance culture, use a legalistic approach to ethics, codes of conduct are established, company revolves around risk management, good in short terms because it helps management, stakeholders, and legal agencies ensure laws, rules, and intent of compliance is fulfilled
values based
relies on an explicit mission statement that defines the core values of the firm and how customers and employees should be treated, BOD should add to value statements by formulating specific value statements for ts strategic business units, certain areas may have rules associated with stated values, enabling employees to understand the relationship between the two, focus is on trust & transparency
differential association
the idea that people learn ethical or unethical behavior while interacting with others who are part of their role sets or belong to intimate personal groups
CCFA
protects employees of publicly traded firms from retaliation if they report violations of any rule or regulation to the SEC
DODD Frank Act
additional incentives for whistleblowers who aid in saving > 1million = 10-30% of that amount
Sarbanes Oxley and the Federal Sentencing Guidelines for Organizations
if an employee provides info to the govt about a companies wrong doing under the federal false claims act the whistle blower is known as a qui tam relator and can receive between 15 to 25% of funds, illegal to discharge, demote, suspend, threaten, harass any whistleblower
reward power
a persons ability to influence the behavior of others by offering them something desirable
coercive power
the opposite of reward power, penalizes actions or behaviors and relies on fear to change behavior, more effective in short run than long run
legitimate power
stems from the belief that a certain person has the right to exert influence and certain others have an obligation to accept it
expert power
derived from a persons knowledge, stems from a superiors credibility
referent power
exists when one person perceives that his/her goals or objectives are similar to another with an attempt to influence the first to take actions that allows both to achieve their objectives
motivation
a force within that focuses behavior toward achieving a goal
job performance
a function of ability and motivation
relatedness needs
satisfied by social and interpersonal relationships
