agency theory

• What is the definition of moral strain?

  Moral strain is pressure to obey conflicting orders.
• What is the second way to break down moral strain?

  Disengage from the principal
• What does Agency Theory primarily explain?

  Obedience in the principal-agent relationship
• What is the first way to break down moral strain?

  Re-evaluate the relationship
• What role does the principal play in Agency Theory?

  Commander or leader
• Who are the two main parties in Agency Theory?

  The principal and the agent
• What does moral strain force individuals to weigh against each other?

  Job security against personal integrity.
• What is the definition of agency?

  Ability to act independently and make choices
• What are the key roles of the principal and agent in Agency Theory?

  • Principal (company's owner): Hires and assigns work to the agent
  • Agent (executives & managers): Performs the work on behalf of the principal
• How does studying hard for an exam demonstrate agency?

  It shows a conscious choice for personal outcome
• Who is considered the agent in agency theory?

  Executive or manager
• What does agency theory explain?

  Obedience through two psychological states
• In which state does a soldier follow superior commands?

  Agentic state
• How does the agentic state affect personal morals?

  It can lead to obeying orders against morals
• What is the agentic state in agency theory?

  Transferring responsibility to an authority figure
• What is the definition of the autonomous state?

  Individuals feel personal responsibility for actions
• What are the two states in agency theory?

  • Autonomous state: Independent action and responsibility
  • Agentic state: Responsibility transferred to authority
• What is the difference between the autonomous state and the agentic state?

  Autonomous state has self-directed control
• What is the concept of the autonomous state?

  Individuals feel responsible and behave independently
• What is the agentic state?

  Obeying orders from legitimate authority
• What are the key components of the agentic state process?

  • Authority figure issues a command (trigger)
  • Individuals enter the agentic state
  • Factors like demands of authority influence entry
  • Leads to obedience despite moral conflict (moral strain)
• What is the autonomous state in agency theory?

  Acting independently and feeling responsible
• hiarachy is important for evolution and survival, social organisation leads to obedience
• nature gives you innate preparedness and nurture gives you socialisation, primary and secondary
• evaluation of agency theory

  • evidence milgrams study showed people become stressed suggesting moral strain, many obeyed because the experimenter demanded to displacement of responsibility, however it was mundane realism
  • applications- helps us understand the atrocities that ahve occured in the past nazi death camps, eichmen- education of blind obedience is important
  • strengths and short comings its less reductionist because it takes into account nature and nurture, individual difference in our socialisation and our evolution
  • social impact theory and explaining impact with out moral strain