Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
Ask students to address the following questions: Would open book management work in your
current or previous place of employment, or organization membership? Why or why not? How
would other employees react to this opportunity?
APPRECIATIVE INQUIRY
• A key task for managers is to empower employees by aligning employee strengths with
the organization’s mission so that employee weaknesses become irrelevant.
APPRECIATIVE INQURY WORKSHOP
• An appreciative inquiry workshop can be designed to empower employees to achieve
superior customer service based on organizational strengths.
Step 1: Individually reflect on superior customer service (discover).
Step 2: On a small team, determine the essential elements of superior customer service.
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
Step 8: Have management follow up (destiny).
DISCUSSION ACTIVITY
Have students experience an appreciative inquiry workshop based on improving customer
service for an organization they share in common, such as the college or business school. Begin
by having students independently answer the questions below and then follow the eight-step
appreciative inquiry workshop format.
1. Describe a situation when, and explain why, you received superior customer service from
the school.
END OF DAY PERFORMANCE HUDDLES
• Set aside 10 to 15 minutes at the end of every day for teams to process the events that
occurred during the day and make preparations for managing any ongoing problems the
following day.
• Organize daily reflections where each employee shares the information below about the
work day. Have one employee address all five issues and then the next employee does
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
CHAPTER QUESTION 5: EXPLAIN HOW FIVE GROUP-BASED FINANCIAL
INCENTIVE SYSTEMS—SCANLON-TYPE GAINSHARING PLANS, PROFIT
SHARING, STOCK OPTION AND STOCK PURCHANGE PLANS, ESOPS, AND
WORKER-OWNED COOPERATIVES—OPERATE AND EMPOWER EMPLOYEES.
• Employees can also be empowered to behave as managers and owners by providing
financial incentives that reward them as if they were managers and owners.
• Scanlon-type gainsharing plans empower employees by delegating institutional
responsibility and accountability for improving operations to employee teams.
o Work unit teams elicit, evaluate, and implement continuous improvement
DISCUSSION ACTIVITY
Have students design a gainsharing plan for the college, business school, or employer to reduce
energy consumption. As part of the plan, include answers to the following questions:
1. Who should be the gainsharing coordinator?
PROFIT SHARING
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
• Providing employees with a share of company profits is also very ethical, motivating, and
empowering.
• Researchers report that profit sharing has positive impacts on employee cooperation,
turnover, productivity, costs, and profits.
• Profit-sharing companies set aside a percentage of profits beyond a targeted amount into
a bonus pool.
o Some companies distribute profits as a percentage of compensation, under the
assumption that higher-paid employees contribute more to the financial outcome.
• Employees can borrow money against their profit-sharing account.
• According to the Employee Retirement Security Act (ERISA), employer contributions
cannot exceed an average of 15 percent of an employee’s salary during any 2-year period.
• Employers can deduct profit sharing as a business expense.
STOCK OPTION AND STOCK PURCHASE PLANS
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
• Stock options, historically reserved for executives, are now offered by many public and
private companies to all employees.
• Some privately held companies, whose stocks are not sold on the open market, offer
employees phantom stock.
o The phantom stock value of privately owned companies is annually determined by an
independent appraiser.
• An employee stock purchase plan is slightly different from a stock option plan.
o Under an employee stock purchase plan, employees request to have deductions taken
out of their pay and put into an account to purchase stock at a discount, usually 15
percent, by a specified date.
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
o Some companies will match a certain percentage of the employee deduction. If an
employee decides to not purchase the company’s stock by the expiration date, the
employee gets his or her pay deductions back.
DISCUSSION ACTIVITY
Ask students if they were a CEO, would they limit profit sharing plans to executives or make
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
Chapter 11 QUESTIONS ANSWERED
Chapter Question 1: How engaged are American workers and what are the benefits of
employee engagement?
o Employee engagement is an emotional bond or attachment an employee has to the work
task, organization, and its members. For engaged employees, work is a meaningful
Chapter Question 2: As a manager, how can you ethically engage employees with their
work tasks?
• Respecting others requires that managers recognize and address fundamental human
needs at the workplace.
Individuals are influenced by four innate subconscious drives, according to Paul Lawrence:
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
Developmental psychologist Abraham Maslow differentiated five categories of needs every
individual has: physiological, safety, social, self-esteem, and self-actualization.
Level 1: Physiological needs—lunch breaks, rest breaks, living wage
David McClelland noted that individuals have three types of needs: (1) a need for affiliation, (2)
a need for achievement, and (3) a need for power or authority.
• Job satisfaction
• Meaningful work is typically defined as spending time at work to achieve something
that is personally desirable.
o Figure 11.2, Sources of Meaningful Work, provides a broad conceptualization of
what makes work meaningful using a 2 x 2 matrix.
o According to Lips-Wiersma and Morris, four sources of meaningful work are:
1. Serving others by making a difference in their lives and meeting the needs of
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
MEASURING EMPLOYEE ENGAGEMENT
• The Gallup Organization researchers found that pay is not among the most important
motivational factors contributing to employee engagement and productivity.
Chapter Question 3: Describe different techniques for managing go-getters, fence-sitters,
and adversarials.
• Many organizations have three types of employees in terms of workplace attitudes and
behaviors:
1. Go-getters, who are fully engaged with the work experience
• Table 11.2, Workplace Attitudes and Behaviors, summarizes these three types of
employees.
• Go-getters are task-oriented employees with a “can–do” attitude. They enjoy working,
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
• Fence-sitters meet managerial expectations and go no further. They consider a job as a
necessary burden to pay expenses. Fence-sitters put in a solid work effort and meet
• Adversarial employees do not like work and possess negative attitudes toward others,
particularly managers and go-getters, often slack off when not under managerial
observation and encourage fence-sitters to do likewise, view manager as the enemy and
criticize managers whenever possible.
o Do not empower adversarial employees.
o Instead, confront and discipline adversarial employees. Otherwise, they will not
o Require that adversarial employees receive counseling through the organization’s
EAP program to get at the root of their negative work attitude, which may be
grounded in childhood experiences.
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
Chapter Question 4: How would you facilitate a team problem-solving process? What are
its advantages?
EMPOWERING EFFECTIVE TEAMS
• Every work unit is a team or small community.
• According to Patrick Lencioni, ineffective teams suffer from five dysfunctions: (1)
• The team problem-solving process below helps access each member’s unique
knowledge—introverts as well as extroverts—and generate solutions with the highest
likelihood of achieving superior performance.
1. Present the problem.
2. Define individual solutions.
OTHER STRATEGIES
• Open book management is a technique where managers share relevant financial and
operational information with nonmanagement employees so they can better understand
the organization’s financial situation and operational issues, and make better informed
decisions.
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
• Appreciative inquiry is a team-based management technique that focuses on the
Chapter Question 5: Explain how five group-based financial incentive systems—Scanlon-
type gainsharing plans, profit sharing, stock option and stock purchase plans, ESOPs, and
worker-owned cooperatives—operate and empower employees.
SCANLON-TYPE GAINSARING PLANS
• Scanlon-type gainsharing plans empower employees by delegating institutional
responsibility and accountability for improving operations to employee teams.
o Work unit teams elicit, evaluate, and implement continuous improvement
• The five elements of a Scanlon-type gainsharing plan are:
1. Gainsharing coordinator
PROFIT SHARING
• Profit-sharing companies set aside a percentage of profits beyond a targeted amount into
a bonus pool.
o Some companies distribute profits as a percentage of compensation, under the
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
STOCK OPTION AND STOCK PURCHASE PLANS
• Stock options give an employee the right to purchase a specific number of company
shares at a fixed price by a particular future date, typically 10 years.
o The number of stock options an employee receives is based on a formula, usually
determined as percentage of compensation to total payroll and performance
• Some privately held companies, whose stocks are not sold on the open market, offer
employees phantom stock.
• Under an employee stock purchase plan, employees request to have deductions taken
CHAPTER 11 ANALYSIS FOR “WHAT WOULD YOU DO?” OPENING DILEMMA
CHAPTER 11: Unproductive Senior Manager
Summary
• You manage a team of consultants working on government contract.
• All hours worked must be charged to the appropriate client and audited annually.
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
Table 6.3 Systematic Rational Ethical Decision-Making Process
1. Who are all the people affected by the action?
2. What option benefits me the most (egoism)? Why?
3. What option does my social group support (social group relativism)? Why?
4. What option is legal (cultural relativism)? Why?
5. What option is the greatest good for the greatest number of people affected (utilitarianism)?
Why?
6. What option is based on truthfulness and respect/integrity toward each stakeholder
(deontology)? Why?
Neither: Holding Bill accountable for assigned work respects Bill (Option A), but
7. What option would a virtuous person do (virtue ethics)? Why?
Hold Bill accountable for assigned work (Option A): Moral character is strengthened by
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
holding Bill accountable. He has been assigned to your team and you’ve been directed to
charge his hours to the client. Continue to provide Bill additional training when working on
your team.
Note
• If answers to Questions 2 through 7 are all the same option, then do that option.
• If answers to Questions 2 through 7 are mixed, then:
Option
Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
A: Hold Bill
accountable for
This is legal in that you are
charging the client for Bill’s
Bill continues to perform lower
quality work.
B: Delegate Bill’s
work to other,
Delegating the work ensures that
your team performs high-quality
Team members are already
overextended and this adds to their
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
allocations.
C: Other?
Option Chosen
Option A: Hold Bill accountable for assigned work.
Chosen Because
This is based on cultural relativism and virtue ethics. You are obeying the
How Will You
Manage Chosen
Client is being charged for, and receiving, substandard work from Bill.
You will have to put in time to make up for Bill’s lower quality work.
CHAPTER 11 ANALYSIS FOR UP FOR DEBATE
Up for Debate: Employee Motivation
You manage 20 employees, 17 professionals and 3 support staff, at a company that pays average market wage rates.
Your department has performed better than expected this year, and the company provides you with an
unanticipated one-time $40,000 discretionary fund. The money can only be spent on bonuses or an extensive
meaningful work intervention known to increase employee engagement and performance. The $40,000 is enough
money to make a worthwhile impact in one of these areas but not both. You must decide how to allocate the money.
1. How would you allocate the money?
a. $2,000 bonus for every employee
Instructor Resource
Collins, Business Ethics 3e
SAGE Publishing, 2022
Up for Debate: Should you allocate the bonus equally for everyone?
Yes
• The equal bonus distribution would
benefit everyone (utilitarianism).