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Assignment 2- Chapter Review (Case Study)

Organizational Behavior (Universiti Teknologi MARA)

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FACULTY OF BUSINESS MANAGEMENT

ORGANIZATIONAL BEHAVIOUR (MGT534)

ASSIGNMENT TITLE:
INDIVIDUAL ASSIGNMENT 2 – CHAPTER REVIEW

PREPARED BY:
MAIZATUL AKMAL BINTI MOHAMAD (2016315435)

GROUP:
NBS6A

PREPARED FOR:
MS HAIRUNNISA BINTI MA MOR

DATE OF SUBMISSION:
7TH JUNE, 2020

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TABLE OF CONTENTS

CHAPTER TITLE PAGE

TABLE OF CONTENTS i

1 CASE STUDY 1: SNC-LAVALIN GROUP INC 1-4

2 CASE STUDY 2: HY DAIRIES, INC 5-6

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1 CASE STUDY 1: SNC-LAVALIN GROUP INC.

1. Use the MARS model to discuss the main direct predictors of wrongdoing at SNC-

Lavalin.

MARS model is a model of individual behavior and performance that is identified

by four key variables or direct predictors– motivation, ability, role perceptions and

situational factors. All these four variables are critical influences on individual’s

voluntary behavior and performance.

Motivation represents the forces within oneself that affect their direction,

intensity and persistence of voluntary behavior. Ability on the other hand includes both

the natural aptitudes and the learned capabilities required to successfully complete a task.

Role perceptions are the extent to which people understand the job duties assigned to

them or expected of them. Situational factors are conditions beyond the employee’s

immediate control that constrain or facilitate his or her behavior and performance.

Each predictor can be well-associated to the behavior(s) of the particular SNC-Lavalin

personnel, in which later led to the wrongdoing at the firm.

 Motivation: The bribes done by the firm’s personnel were majorly influenced by

the particular personnel’s motivation in getting their work done – in those cases

were to secure the contracts the firm was bidding on.

 Ability: As the unethical acts of bribing numbers of official were successful, the

persons making the bribes are considered to acquire the ability, both natural

aptitudes and learned capability, to influence and sway the opposite parties to

agree and nod to whatever were being offered in which could be considered to

benefit both the most.

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 Role perceptions: The personnel involved had perceived that it was their job to

make sure the contracts were secured regardless the ethicality of the courses of

action they took. The personnel might have felt the sense of accountability – to

follow whatever instructions given by their bosses or to do whatever it takes to

ensure their bosses’ expectations towards their behavior and performance were

met.

 Situational factors: The corporate culture at SNC-Lavalin of doing whatever

necessary in order to get jobs done might have led certain employees to

unwillingly abide or engage in illegal activities. The pressure of being told to do

so or else they would never meet the bosses’ expectations were a driving force to

commit unethical behavior. Although complaints regarding these were made to

SNCL’s board, many times the board simply shrugged their shoulders,

downplaying the complaints as similar to some random letter with no credibility.

2. Explain how moral sensitivity and moral intensity apply to the unethical behavior

among several SNC-Lavalin executives and other staff.

Moral intensity is the degree to which an issue demands the application of ethical

principles meanwhile moral sensitivity is a person’s ability to recognize the presence of

an ethical issue and determine its relative importance.

The moral intensity of the unethical behavior is considered lower particularly

within the SNC-Lavalin. This is proven with a statement made by one of the firm’s

executives in which the firm had a corporate culture where it was a common practice to

do whatever it takes to ensure their goals could be attained, regardless the methods’

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ethicality. Moral intensity consists of several components which include social

consensus. Social consensus is referred to the extent to which society would agree that

the act is either good or bad. Although generally bribing is viewed as unethical behavior,

as long as the culture and the firm approve the practice of such behavior, conducting such

behavior is considered a norm and permissible.

While the moral intensity is associated to moral issues, moral sensitivity on the

other hand is a characteristic of a person. Since bribes werecommon major issues among

several SNC-Lavalin personnel, it is fair to say that these particular personnel

undoubtedly were moral insensitive. People’s moral sensitivity is greatly influenced by a

number of factors. For instance, it is influenced by how they define and viewthemselves

(self-concept). Theoretically, persons who strongly define themselves by their moral

characters are in the spectrum of higher moral sensitivity as they exert more energy into

maintaining ethical behavior. Unfortunately the statement is invalid for these people as

they were apparent with their unethical behavior – bribing officials, laundering money

etc.

3. What steps should SNC-Lavalin and other companies in this situation take to

minimize these types of corporate wrongdoing?

In order to minimize these types of corporate wrongdoing, a number of steps or

actions should be taken by organizations and the steps include the most fundamental

action of creating a code of ethical conduct. It is basically a statement about desired

activities, rules of conduct and philosophy about the organization’s relationship to its

stakeholders and the environment. As critics may suggest the basic step would only effect

a little, organizations could also implement a strategy of training and regularly evaluating

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their employees about their knowledge of proper ethical conduct. Another effective way

to consider is by providing ethics telephone hotline and website where employees are free

to anonymously complaint or report any suspicious behavior or even apparent

misconducts. Ethic audits can be regularly conducted and the audits should not only

concentrate on evaluating corporate social responsibility practices.

All the suggested actions however are not comparable to being as powerful as

having a set of shared values reinforced ethical behavior across organizations. It is

ultimately effective when the ethical culture is being supported and manifested by the

conduct and vigilance of corporate leaders.

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2 CASE STUDY 2: HY DAIRIES, INC.

1. Apply your knowledge of stereotyping and social identity theory to explain what

went wrong here.

Stereotyping is a process of assigning characteristics to an identifiable group and

then automatically transfers those features to anyone we believe is a member of the

group. Meanwhile social identity theory states that people define themselves by the

groups to which they belong or have an emotional attachment. From the case study, it can

be commented that Rochelle Beauport has mistakenly judged her employer, Syd

Gilman’s intention of offering her a position of marketing research coordinator. A bitter

experience from her previous employer may have shaped the stereotype she has for her

current employer, given the position being offered, she has the impression of being

sidelined away. Beauport, being a woman of color, sees herself as a part of the minority

where discrimination towards them is something ought to happen from time to time. This

is greatly due to her past experience with her previous employer or organization where

women and/or people in color are not much valued or needed in top managements.

Instead they will be sent to lower positions.

2. What other perceptual errors are apparent in this case study?

An apparent perceptual error identified is false-consensus effect, sometimes called

similar-to-me error. This kind of error happens when people overestimate the extent to

which others have similar beliefs or behaviors to their own. Syd Gilman takes Beauport’s

response to his offer as similar to what he felt when he first being offered to the position,

i.e. being thrilled. Gilman always think the marketing research coordinator will open

opportunity doors to whomever takes the position, looking back to how the position

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benefits him. Gilman unfortunately has misperceived Beauport’s reaction as being

excited when the fact that she on the other end feels she has been sidelined by her

employer.

Another apparent perceptual error is halo effect. The halo effect occurs when

ones’ general impression of a person, usually based on one prominent characteristic,

distorts ones’ perception of other characteristics of that person. For instance, soon as she

learns the news of being offered a vacant position that sounds far removed from the

company’s bottom-line position, Beauport feels Gilman’s action is similar to what is

considered as prejudice towards minority groups and hers especially.

3. What can organizations do to minimize misconception in these types of situation?

In order to minimize misconception in these kinds of situation within the

organizations, the organizations should consider conducting training or awareness

programs involving their personnel. The programs should highlight the importance of

being aware the diverse cultural and demographic groups that exist among them. It is

important to ensure these groups are acknowledged and respected simply because they

exist. A more successful way to minimize such error is by emphasizing self-awareness

improvement among each personnel. The method is more effective as it permits people to

become more open-minded and nonjudgmental towards others. Another effective way is

by conducting meaningful interactions between the organization members specifically. A

meaningful interaction is a powerful approach to improve ones’ self-awareness and

understanding about matters though they are trivial. It is beneficial in eliminating any

misunderstanding or misconception ones have against others.

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