Intro to Business CH 8 , CH 9, CH 10

transformational leadership (282)

> > set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. > Some experts believe that change is such a vital organizational function that even successful firms need to change regularly to avoid becoming complacent and stagnant.

Substitutes and Neutralizers job factors (284)

> > structured/automated > highly controlled > intrinsically satisfying > embedded feedback

leadership (276)

> > the processes and behaviors used by someone, such as manager, to motivate, inspire, and influence the behaviors of others > often misused in everyday conversation

(Leadership/Management) distinctions between (277) (figure 9.1)

> >A manager can be a "manager", a "leader" or "both" or "neither" > Management duties: *planning, organizing, leading, controlling* > Leadership duties: *agenda setting. aligning, inspiring, monitoring*

non-programmed decision (290)

> Decision that is relatively unstructured and that occurs with low frequency > faced with this type of decision must treat each one as unique, investing enormous amounts of time, energy, and resources into exploring the situation from all perspectives

trait approach to leadership (278)

> Early researchers believed that notable leaders had some unique set of qualities or traits that distinguished them from their peers and endured throughout history. > This trait approach to leadership led researchers to focus on identifying the essential leadership traits, including intelligence, dominance, self-confidence, energy, activity (versus passivity), and knowledge about the job. > Unfortunately, the list of potential leadership traits quickly became so long that it lost any practical value.

expert power (278)

> Expert power is derived from information or expertise. > A manager who knows how to interact with an eccentric but important customer, a scientist who is capable of achieving an important technical breakthrough that no other company has dreamed of, and an administrative assistant who knows how to unravel bureaucratic red tape all have expert power over anyone who needs that information.

behavioral approach to leadership (279)

> In the late 1940s, most researchers began to shift away from the trait approach and to look at leadership as a set of actual behaviors. > The goal of the behavioral approach to leadership was to determine what behaviors were employed by effective leaders. >These researchers assumed that the behaviors of effective leaders differed somehow from the behaviors of less effective leaders, and that the behaviors of effective leaders would be the same across all situations.

strategic leadership (287)

> Strategic Leadership leader's ability to understand the complexities of both the organization and its environment and to lead change in the organization so as to enhance its competitiveness

virtual leadership (289)

> Virtual leadership is also emerging as an important issue for organizations. In previous times, leaders and their employees worked together in the same physical location and engaged in face-to-face interactions on a regular basis. But in today's world, both leaders and their employees may work in locations that are far from one another. Such arrangements might include people telecommuting from a home office one or two days a week to people actually living and working far from company headquarters.

Leaders as coaches (285-287)

> Whereas leaders were once expected to control situations, direct work, supervise people, closely monitor performance, make decisions, and structure activities, many leaders today are being asked to change how they manage people. Perhaps the best description of this new role is for the leader to become a coach instead of an "overseer".

charisma (282)

> a form of interpersonal attraction that inspires support and acceptance

intuition (294)

> an innate belief about something, often without conscious consideration. > Managers sometimes decide to do something because it "feels right" or they have a hunch. > This feeling is usually not arbitrary, however. Rather, it is based on years of experience and practice in making decisions in similar situations.

situational approach to leadership (280)

> assumes that appropriate leader behavior varies from 1 situation to another *1) path-goal theory; 2) decision tree approach; 3) leader-member exchange model*

decision making (289)

> choosing one alternative from among several options > can refer to either a specific act or a general process. > the act of choosing one alternative from among a set of alternatives.

programmed decision (289)

> decision that is relatively structured or recurs with some frequency (or both)

Cross-Cultural Leadership (285)

> effects of an individual's native culture on his or her approach to leadership when functioning in another culture

transactional leadership (282)

> essentially the same as management in that it involves routine, regimented activities. > Only a leader with tremendous influence can hope to perform both functions successfully. > Some experts believe that change is such a vital organizational function that even successful firms need to change regularly to avoid becoming complacent and stagnant; accordingly, leadership for change is extremely important.

collectivism (287)

> group before individual

individualism (287)

> individual before group

task-focused leader behavior (279)

> leader behavior focusing on how tasks should be performed in order to meet certain goals and to achieve certain performance standards

employee-focused leader behavior (279)

> leader behavior focusing on satisfaction, motivation, and well-being of employees

referent power (278)

> power is abstract; power based on identification, imitation, loyalty, or charisma > followers may react favorably because they identify in some way with a leader, who may be like them in personality, background, or attitudes

coercive power (278)

> power to force compliance by means of psychological, emotional, or physical threat

management (276-277)

> process of planning, organizing, leading, and controlling an organization's resources to achieve its goals

leader-member exchange (LMX) model (281)

> stresses the importance of variable relationships between supervisors and each of their subordinates. > Each superior-subordinate pair represents a "vertical dyad." > The model differs from previous approaches in that it focuses on the differential relationship leaders often establish with different subordinates.

power (277)

> the ability to affect the behavior of others In organizational settings, there are usually five kinds of power: legitimate, reward, coercive, referent, and expert power.

risk propensity (294)

> the extent to which a decision maker is willing to gamble when making a decision. Some managers are cautious about every decision they make. Others are extremely aggressive in making decisions and willing to take risks

path-goal theory (281)

> theory of leadership that is a direct extension of the expectancy theory of motivation; 4 kinds of behaviors: 1) directive leader behavior; 2) supportive leader behavior, 3) participative leader behavior, 4) achievement-oriented leader behavior > direct extension of the "expectancy theory of motivation" discussed in Chapter 8. The path-goal theory of leadership suggests that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment and valued rewards.

decision tree approach (281)

> this approach attempts to prescribe a leadership style appropriate to a given situation. It also assumes that the same leader may display different leadership styles.

escalation of commitment (294)

> to a chosen course of action. In particular, decision makers sometimes make decisions and then become so committed to the course of action suggested by that decision that they stay with it, even when it appears to have been wrong. Another important behavioral process that influences decision making is escalation of commitment to a chosen course of action. In particular, decision makers sometimes make decisions and then become so committed to the course of action suggested by that decision that they stay with it, even when it appears to have been wrong.

culture (287)

> used as a broad concept to encompass both international differences and diversity-based differences within one culture

state of risk (290)

> when the availability of each alternative and its potential payoffs and costs are all associated with probability estimates

state of certainty (290)

> when the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative

Behavior Approach to Leadership (279)

> 1) Task-Focused Leader Behavior 2) Employee-Focused Leader Behavior

sexual harassment (312)

> 2 types: Quid-Pro-Quo; Hostile Work Environment > making unwelcome sexual advances in the workplace > Sexual harassment is defined by the EEOC as unwelcome sexual advances in the work environment. If the conduct is indeed unwelcome and occurs with sufficient frequency to create an abusive work environment, the employer is responsible for changing the environment by warning, reprimanding, or firing the harasser.

Forecasting Internal & External Supplies (308)

> After managers comprehend the jobs to be performed within an organization, they can start planning for the organization's future HR needs. > The manager starts by assessing trends in past HR usage, future organizational plans, and general economic trends. Forecasting the supply of labor is really two tasks:

The Psychological Contract (Figure 8.2) (251)

> Contributions from the Individual > Inducements from the Organization (See each section for list)

adverse impact (310)

> Employment requirements such as test scores and other qualifications are legally defined as having an "adverse impact" on minorities and women when such individuals meet or pass the requirement at a rate less than 80 percent of the rate of majority group members. Criteria that have an adverse impact on protected groups can be used only when there is solid evidence that they effectively identify individuals who are better able than others to do the job.

Labor-Management Relations Act (Taft-Hartley Act) (311)

> Following a series of severe strikes in 1946, the Labor-Management Relations Act (also known as the Taft-Hartley Act) was passed in 1947 to limit union power. > The law increases management's rights during an organizing campaign. > The Taft-Hartley Act also contains the National Emergency Strike provision, which allows the president of the United States to prevent or end a strike that endangers national security. > Taken together, these laws balance union and management power. > Employees can be represented by a legally created and managed union, but the business can make non-employee-related business decisions without interference.

quid-pro quo harassment (312)

> In cases of quid pro quo harassment, the harasser offers to exchange something of value for sexual favors. > A male supervisor, for example, might tell or suggest to a female subordinate that he will recommend her for promotion or give her a raise in exchange for sexual favors.

Patriot Act (312)

> In response to the terrorist attacks of September 11, 2001, the U.S. government passed legislation that increases its powers to investigate and prosecute suspected terrorists. This legislation, known as the Patriot Act, has several key implications for HRM. > For instance, certain "restricted" individuals (including ex-convicts and aliens from countries deemed by the State Department to have "repeatedly provided support for acts of international terrorism") are ineligible to work with potentially dangerous biological agents. > More controversial are sections granting government investigators access to previously confidential personal and financial records.

Fair Labor Standard Act (310)

> Laws also regulate compensation and benefits. > The Fair Labor Standards Act, passed in 1938 and amended frequently since then, sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week. > Salaried professional, executive, and administrative employees are exempt from the minimum hourly wage and overtime provisions.

table 10-1 (309)

> Major Laws & Regulations Affecting Human Resource Management > A number of laws regulate various aspects of employee-employer relations, especially in the areas of equal employment opportunity, compensation and benefits, labor relations, and occupational safety and health.

Civil Rights Act of 1991 (310)

> More recently, the Civil Rights Act of 1991 amended the original Civil Rights Act as well as other related laws by both making it easier to bring discrimination lawsuits (which partially explains the aforementioned backlog of cases) while simultaneously limiting the amount of punitive damages that can be awarded in those lawsuits.

Equal Pay Act 1963 (310)

> Requires that men and women be paid the same amount for doing the same job. > Attempts to circumvent the law by having different job titles and pay rates for men and women who perform the same work are also illegal. > Basing an employee's pay on seniority or performance is legal, however, even if it means that a man and woman are paid different amounts for doing the same job.

Equal Employment Opportunity Commission (EEOC) (310)

> The Equal Employment Opportunity Commission (EEOC) is charged with enforcing Title VII as well as several other employment-related laws.

Employment at will (312)

> The concept of employment at will holds that both employer and employee have the mutual right to terminate an employment relationship at any time for any reason, with or without advance notice to the other. > Over the last two decades, however, terminated employees have challenged the employment-at-will doctrine by filing lawsuits against former employers on the grounds of wrongful discharge.

hostile work environment (312)

> The creation of a hostile work environment is a subtler form of sexual harassment. > A group of male employees who continually make off-color jokes and lewd comments and perhaps decorate the work environment with inappropriate photographs may create a hostile work environment for a female colleague, who may become uncomfortable working in that environment.

Cost Price Index (327)

> a government statistic that reflects changes in consumer purchasing power.

external recruiting (313)

> attracting persons outside the organization to apply for jobs acquiring new employees from outside the company

wage re-opener clause (327)

> clause allowing wage rates to be negotiable during the life of a labor contract > One solution is a wage reopener clause, which allows wage rates to be renegotiated at preset times during the life of the contract.

salary (314)

> compensation in the form of money paid for discharging the responsibilities of a job > A salary, on the other hand, is paid for performing a job. > A salaried executive earning $100,000 per year is paid to achieve results even if that means working 5 hours one day and 15 the next. Salaries are usually expressed as an amount paid per month or year.

wages (314)

> compensation in the form of money paid for time worked > Wages and salaries are the dollar amounts paid to employees for their labor. > Wages are paid for time worked. For example, if your job pays you $10 an hour, that is your wage.

employee information system (skills inventory) (308)

> computerized system containing information on each employee's education, skills, work experiences, and career aspirations > system can quickly locate every employee who is qualified to fill a position

internal recruiting (313)

> considering present employees as candidates for openings > promoting current employees from within company

job description (307)

> description of the duties and responsibilities of a job, its working conditions, and tools, materials, equipment, and information used to perform it

job specification (307)

> description of the skills, abilities and credentials and qualifications required by a job

contingent worker (323)

> employee hired on something other than a full-time basis to supplement an organization's permanent workforce > includes independent contractors, on-call workers, temporary employees, and contract and leased employees

knowledge workers (323)

> employees who are of value because of the knowledge they possess > Traditionally, employees added value to organizations because of what they did or because of their experience. In the information age, however, employees who add value because of what they know are usually called knowledge workers. Knowledge workers, which include computer scientists, engineers, physical scientists, and game developers, typically require extensive and highly specialized training. > Once they are on the job, retraining and training updates are critical to prevent their skills from becoming obsolete.

Employee Retirement Income Security Act (ERISA) of 1974 (311)

> ensures the financial security of pension funds by regulating how they can be invested > Certain benefits are mandatory, such as workers' compensation insurance for employees who are injured on the job. > Employers who provide a pension plan for their employees are regulated by the Employee Retirement Income Security Act (ERISA) of 1974.

National Labor Relations Board (NLRB) (311)

> established by the Wagner Act to enforce its provisions

Occupational Safety and Health Act (OSHA) of 1970 (311)

> federal law setting and enforcing guidelines for protecting workers from unsafe conditions and potential health hazards in the workplace > The Occupational Safety and Health Act (OSHA) of 1970 directly mandates the provision of safe working conditions. It requires that employers: 1) provide a place of employment that is free from hazards that may cause death or serious physical harm (2) obey the safety and health standards established by the Department of Labor. Safety standards are intended to prevent accidents, whereas occupational health standards are concerned with preventing occupational disease.

Title VII of the Civil Rights Act of 1964 (309)

> forbids discrimination in all areas of the employment relationship, such as hiring, opportunities for advancement, compensation increases, lay-offs, and terminations against members of certain protected classes based on factors such as race, color, gender, religious beliefs, or national origin.

profit-sharing plan (315)

> incentive plan for distributing bonuses to employees when company profits rise above a certain level > Some incentive programs apply to all the employees in a firm. Under profit-sharing plans, for example, profits earned above a certain level are distributed to employees.

gainsharing plan (315)

> incentive plan that rewards groups for productivity improvements > distribute bonuses to employees when a company's costs are reduced through greater work efficiency. > Pay-for-knowledge plans pay workers to learn new skills and to become proficient at different jobs.

pay for performance (or variable pay) (315)

> individual incentive that rewards a manager for especially productive output > A newer incentive plan is called pay for performance (or variable pay). > In essence, middle managers are rewarded for especially productive output with earnings that significantly exceed the cost of bonuses.

affirmative action (310)

> intentionally seeking & hiring employees from groups that are underrepresented in the organization > Several executive orders, however, require that employers holding government contracts engage in affirmative action, intentionally seeking and hiring employees from groups that are underrepresented in the organization. > These organizations must have a written affirmative action plan that spells out employment goals for underused groups and how those goals will be met. > These employers are also required to act affirmatively in hiring Vietnam-era veterans (as a result of the Vietnam Era Veterans Readjustment Assistance Act) and qualified handicapped individuals. > Finally, the Pregnancy Discrimination Act forbids discrimination against women who are pregnant.

strike (327)

> labor action in which employees temporarily walk off the job and refuse to work > Historically, one of the most common union tactics has been the strike, which occurs when employees temporarily walk off the job and refuse to work. > The number of major strikes in the United States has steadily declined over the past few decades. > From 1960 to 1980, example, an average of 281 strikes per year. > In the 1980s there was an average of 83 major strikes per year; in the 1990s this figure fell to an average of 35 per year. > Between 2000 and 2009 there was an average of 20 major strikes per year. > There were 19 major strikes in 2012.

picketing (327)

> labor action in which workers publicize their grievances at the entrance to an employer facility > workers march at the entrance to the employer's facility with signs explaining their reasons for striking

boycott (327)

> labor action in which workers refuse to buy the products of a targeted employer > occurs when union members agree not to buy products of a target employer > worker's may also urge consumers to boycott the firm's products

cost-of-living adjustment (COLA) (327)

> labor contract clause tying future raises to changes in consumer purchasing power > Compensation includes both current and future wages. One common tool for securing wage increases is a cost-of-living adjustment (COLA). > Most COLA clauses tie future raises to the Consumer Price Index (CPI), a government statistic that reflects changes in consumer purchasing power. > Almost half of all labor contracts today include COLA clauses. A union might be uncomfortable with a long-term contract based solely on COLA wage increases.

sickout (328)

> large numbers of numbers call in sick

Equal Employment Opportunity (310)

> legally mandated nondiscrimination in employment on the basis of race, creed, sex, or national origin > Employers are not required to seek out and hire minorities, but they must treat all who apply fairly.

replacement chart (308)

> list of each management position, who occupies it, how long that person will likely stay in the job, and who is qualified as a replacement

lockout (328)

> management tactic whereby workers are denied access to the employer's workplace > Lockouts occur when employers deny employees access to the workplace. > Lockouts are illegal if they are used as offensive weapons to give management a bargaining advantage. > However, they are legal if management has a legitimate business need (for instance, avoiding a buildup of perishable inventory).

arbitration (328)

> method of resolving a labor dispute in which both parties agree to submit to the judgment of a neutral party > agreed to let arbitrator *decide judgement* > *in some disputes, such as those between the government and public employees, "arbitration" is compulsory, or required by law*

mediator (328)

> neutral third party in mediation procedures that can *suggest* but not impose a settlement on the other parties

mediation (328)

> of resolving a labor dispute in which a 3rd party *suggests*, but does not impose, a settlement

National Labor Relations Act (311) (Wagner Act)

> passed in 1935, sets up a procedure for employees to vote on whether to have a union. > If they vote for a union, management is required to bargain collectively with the union.

age discrimination in employment act (310)

> passed in 1967, amended in 1978 and 1986, is an attempt to prevent organizations from discriminating against older workers. > In its current form, it outlaws discrimination against people older than 40 years. > Both the Age Discrimination in Employment Act and Title VII require passive non-discrimination, or equal employment opportunity.

collective bargaining (326)

> process by which labor and management negotiate conditions of employment for union-represented workers > The power of unions comes from collective action, forcing management to listen to the demands of all workers rather than to just the few who speak out. > Collective bargaining is the process by which labor and management negotiate conditions of employment for union-represented workers and draft a labor contract.

human capital (307)

> reflects the organization's investment in attracting, retaining, and motivating an effective workforce > The growing awareness of the strategic significance of HRM has even led to new terminology to reflect a firm's commitment to people. > Human capital reflects the organization's investment in attracting, retaining, and motivating an effective workforce. > Hence, just as the phrase financial capital is an indicator of a firm's financial resources and reserves, so, too, does "human capital" serve as a tangible indicator of the value of the people who comprise an organization.

Family and Medical Leave Act (FMLA) of 1993 (310)

> requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies.

human resource management (HRM) (306)

> set of organizational activities directed at attracting, developing & maintaining an effective workforce HRM (or "personnel," as it is sometimes called) was once relegated to second-class status in many organizations, but its importance has grown dramatically in the last two decades. > Its new importance stems from increased legal complexities, the recognition that HR are a valuable means for improving productivity, and the awareness of the costs associated with poor HRM.

job analysis (307)

> systematic analysis of jobs within an organization; > most firms have trained experts who handle these analysis results in 2 things: Job Descriptions; Job Specification

co-pay (327)

> the dollar amount a patient pays to the doctor; insurance then pays the remainder

Forecasting Internal Supply (308)

> the number & type of employees who will be in the firm at some future date

Forecasting External Supply (308)

> the number & type of people who will be available for hiring from the labor market at large

human resources (306)

> the people comprising an organization's workforce > Human resources (HR) are critical for effective organizational functioning.

workforce diversity (322)

> the range of workers' attitudes, value, beliefs, & behaviors than differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics > One extremely important set of HR challenges centers on workforce diversity, the range of workers' attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics. > In the past, organizations tended to work toward homogenizing their workforce's, getting everyone to think and behave in similar ways. Partly as a result of affirmative action efforts, however, many U.S. organizations are now creating more diverse workforce's than ever before.

talent management (307)

> the view that the people in an organization represent a portfolio of valuable talents that can be effectively managed and tapped in ways best targeted to organizational success

compensation system (314)

> total package of rewards that organizations provide to individuals in return for their labor > People who work for a business expect to be paid, and most workers today also expect certain benefits from their employers. Indeed, a major factor in retaining skilled workers is a company's compensation system, the total package of rewards that it offers employees in return for their labor.

strikebreaker (328)

> worker hired as a permanent or temporary replacement for a striking employee > A firm can also hire temporary or permanent replacements called strikebreakers. > However, the law forbids the permanent replacement of workers who strike because of unfair practices.

affirmative action plan (310)

> written statement of how the organization intends to actively recruit, hire and develop members of relevant protected classes > spells out employment goals for underused groups and how those goals will be met. > These employers are also required to act affirmatively in hiring Vietnam-era veterans (as a result of the Vietnam Era Veterans Readjustment Assistance Act) and qualified handicapped individuals. > Finally, the Pregnancy Discrimination Act forbids discrimination against women who are pregnant.

telecommuting (263)

A rapidly growing number of U.S. workers do a significant portion of their work via telecommuting, performing some or all of a job away from standard office settings. Working from a home office outfitted with a PC, high-speed Internet, and a company intranet connection, telecommuters can keep abreast of everything going on at the office.

2-factor theory (254)

According to Herzberg's two-factor theory, "hygiene" factors affect "motivation" and satisfaction" only if they are absent or fail to meet expectations. For example, workers will be "dissatisfied" if they believe they have poor working conditions. If working conditions are improved, however, they will not necessarily become "satisfied"; they will simply not be dissatisfied. If workers receive no recognition for successful work, they may be neither dissatisfied nor satisfied. If recognition is provided, they will likely become more satisfied.

Advantages & Disadvantages of Modified Schedules and Alternative Workplaces

Advantages - more satisfied, committed employees; reduced stress; improved productivity; less congestion Disadvantages - challenging to coordinate and manage; poor fit for some workers; lack of network and coworker contact; lack of management belief

attitudes (248)

Attitudes reflect our beliefs and feelings about specific ideas, situations, or other people. Attitudes are important because they are the mechanism through which we express our feelings.

4 general dimensions (246)

EI - Extraversion (vs) Introversion SN - Sensing (vs) Intuition TF - Thinking (vs) Feeling JP - Judging (vs) Perceiving

Establishing Client Relations (262)

Establishing client relationships means letting employees interact with customers. This approach increases job variety. It gives workers both a greater sense of control and more feedback about performance than they get when their jobs are not highly interactive.

EI - Extraversion (vs) Introversion (246)

Extraverts get their energy from being around other people, whereas introverts are worn out by others and need solitude to recharge their energy.

Maslow's Heirarchy of Human Needs (254)

Figure 8.3

2-Factor Theory of Motivation (255)

Figure 8.4

Flextime Programs (263)

Flextime programs allow people to choose their working hours by adjusting a standard work schedule on a daily or weekly basis. There are limits to flextime.

Hawthorne Effect (253)

In 1925, a group of Harvard researchers began a study at the Hawthorne Works of Western Electric outside Chicago. The researchers concluded that productivity rose in response to almost any management action that workers interpreted as special attention. This finding, known today as the Hawthorne effect, had a major influence on human relations theory, although in many cases it amounted simply to convincing managers that they should pay more attention to employees.

Leadership Neutralizers (285)

In other situations, even if a leader is present and attempts to engage in various leadership behaviors, those behaviors may be rendered ineffective—or neutralized—by various factors that can be called leadership neutralizers.

participative management and empowerment (261)

In participative management and empowerment, employees are given a voice in how they do their jobs and in how the company is managed; they become empowered to take greater responsibility for their own performance. Not surprisingly, participation and empowerment often makes employees feel more committed to organizational goals they have helped to shape.

job enrichment (262)

Job enrichment is designed to add one or more motivating factors to job activities. For example, job rotation programs expand growth opportunities by rotating employees through various positions in the same firm. Workers gain not only new skills but also broader overviews of their work and their organization.

job redesign (262)

Job redesign acknowledges that different people want different things from their jobs. By restructuring work to achieve a more satisfactory fit between workers and their jobs, job redesign can motivate individuals with strong needs for career growth or achievement. Job redesign is usually implemented in one of three ways: through combining tasks, forming natural work groups, or establishing client relationships.

work sharing (or job sharing) (263)

Job sharing usually benefits both employees and employers. Employees, for instance, tend to appreciate the organization's attention to their personal needs. At the same time, the company can reduce turnover and save on the cost of benefits.

Selecting Human Resources (313)

Once the recruiting process has attracted a pool of applicants, the next step is to select someone to hire. The intent of the selection process is to gather from applicants the information that will predict job success and then to hire the candidates likely to be most successful.

JP - Judging (vs) Perceiving (246)

People who are the judging type enjoy completion or being finished, whereas perceiving types enjoy the process and open-ended situations.

Forming Natural Work Groups (262)

People who do different jobs on the same projects are candidates for natural work groups. These groups are formed to help employees see the place and importance of their jobs in the total structure of the firm.

management by objectives (MBO) (259)

Performance goals are also commonly used to direct and motivate behavior. The most frequent method for setting performance goals is called management by objectives (MBO), which is a system of collaborative goal setting that extends from the top of an organization to the bottom.

Types of Decisions (289-290)

Programmed Decisions Non-programed Decision

risk propensity (248)

Risk propensity is the degree to which a person is willing to take chances and make risky decisions. A manager with a high risk propensity, for example, might experiment with new ideas and gamble on new products. Such a manager might also lead the organization in new and different directions.

performance behaviors (242)

Some employee behaviors that directly contribute to productivity and performance

Bargaining Zone (326)

The collective bargaining process begins when the union is recognized as the exclusive negotiator for its members, and union leaders meet with management representatives to agree on a contract. By law, both parties must sit down at the bargaining table and negotiate in good faith. Figure 10.5 shows what is called the "bargaining zone."

emotional intelligence (emotional quotient, EQ) (247)

The concept of emotional intelligence has been identified in recent years and also provides some interesting insights into personality. Emotional intelligence, or emotional quotient (EQ), refers to the extent to which people are "self-aware", can "manage their emotions", can motivate themselves, express empathy for others, and possess social skills.

Combining Tasks (262)

The job of combining tasks involves enlarging jobs and increasing their variety to make employees feel that their work is more meaningful. In turn, employees become more motivated.

SN - Sensing (vs) Intuition (246)

The sensing type prefers concrete things, whereas intuitives prefer abstract concepts.

TF - Thinking (vs) Feeling (246)

Thinking individuals base their decisions more on logic and reason, whereas feeling individuals base their decisions more on feelings and emotions.

Myers-Briggs Type Indicator (MBTI) (247)

This framework, based on the classical work of Carl Jung, differentiates people in terms of four general dimensions:

cognitive dissonance (249)

When two sets of cognitions or perceptions are contradictory or incongruent, a person experiences a level of conflict and anxiety called cognitive dissonance. Cognitive dissonance also occurs when people behave in a fashion that is inconsistent.

Agreeableness (245)

a person's ability to get along with others

motivating oneself (247)

a person's ability to remain optimistic and to continue striving in the face of setbacks, barriers, and failure

empathy (247)

a person's ability to understand how others are feeling even without being explicitly told.

self-efficacy (247)

a person's belief about his or her capabilities to perform a task

managing emotions (247)

a person's capacities to balance anxiety, fear, and anger so that they do not overly interfere with getting things accomplished.

self-awareness (247)

a person's capacity for being aware of how they are feeling. In general, more self-awareness allows people to more effectively guide their own lives and behaviors.

Extraversion (246)

a person's comfort level with relationships. "Extroverts" are sociable, talkative, assertive, and open to establishing new relationships. "Introverts" are much less sociable, talkative, and assertive, and more reluctant to begin new relationships.

need for achievement (255)

an individual's desire to accomplish a goal of task as effectively as possible

need for affiliation (256)

an individuals desire for human companionship

organizational commitment (250)

an individuals identification with the organization and its mission

turnover (244)

annual % of organization's workforce that leaves and must be replaced

cafeteria benefits plan (316)

benefit plan that sets limits on benefits per employees, each of whom may choose from a variety of alternative benefits

benefits (315)

compensation other than wages and salaries > Benefits, compensation other than wages and salaries and other incentives offered by a firm to its workers, account for an increasing percentage of most compensation budgets. Most companies are required by law to pay tax for Social Security retirement benefits and provide workers' compensation insurance, insurance for compensating workers injured on the job. Most businesses also provide health, life, and disability insurance for their workers, as well as paid time off for vacations and holidays.

job satisfaction (250)

degree of enjoyment that people derive from performing their jobs

punishment (259)

designed to change behavior by presenting people with unpleasant consequences if they exhibit undesired behaviors. Employees who are repeatedly late for work, for example, may be suspended or have their pay docked.

counterproductive behaviors (243)

detract from performance and actually cost the organization 1) Absenteeism; 2) Turnover; 3) Theft; 4) Sabotage; 5) Sexual Harassment; 6) Workforce Violence

performance appraisal (319)

evaluation of an employee's job performance to determine the degree to which the employee is performing effectively > The appraisal process begins when a manager defines performance standards for an employee. The manager then observes the employee's performance. For some jobs, a rating scale like the abbreviated one in Figure 10.2 is useful in providing a basis for comparison.

equity theory (257)

focuses on social comparisons, people evaluating their treatment by the organization relative to the treatment of others. This approach holds that people begin by analyzing inputs (what they contribute to their jobs in terms of time, effort, education, experience) relative to outputs (what they receive in return—salary, benefits, recognition, security). This comparison is similar to the psychological contract. (Figure 8.6)

Americans with Disabilities Act (310)

forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees > In 1990 Congress passed the Americans with Disabilities Act, which forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees.

labor union (325)

group of individuals working together to achieve shared job-related goals, such as higher pay, shorted working hours, more job security, greater benefits, or better working conditions

intention (249)

guides a person's behavior. If you like your instructor, you may intend to take another class from him or her next semester. Intentions are not always translated into actual behavior, however.

social skills (247)

help people get along with others and establish positive relationships.

affect (249)

his or her feelings toward something; In many ways, affect is similar to emotion; it is something over which we have little or no conscious control.

pay-for-knowledge plan (315)

incentive plan to encourage employees to learn new skills or become proficient at different jobs

merit salary system (315)

individual incentive linking compensation to performance in non-sales jobs

bonus (315)

individual performance incentive in the form of a special payment made over and above the employee's salary

Leadership Substitutes (284)

individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance. In other words, if certain factors are present, the employee will perform his or her job capably, without the direction of a leader.

work slowdown (328)

labor action in which worker's perform jobs at a slower than normal pace

social learning (259)

learning that occurs when people observe the behaviors of others, recognize their consequences, and alter their own behavior as a result

workers' compensation insurance (315)

legally required insurance for compensating workers injured on the job

arbitrator (328)

neutral third party that *dictates* a settlement between 2 sides which have agreed to submit to outside judgement

vestibule training (318)

off-the-job training conducted in a simulated environment > enables participants to focus on safety, learning, and feedback rather than on productivity

organizational citizenship (243)

other behaviors that provide positive benefits to the organization but in more indirect ways

360-degree feedback (320)

performance appraisal technique in which managers are evaluated by everyone around them-their boss, their peers & their subordinates managers are evaluated by everyone around them-their boss, their peers, and their subordinates > One interesting innovation in performance appraisal used in some organizations today is called 360-degree feedback, in which managers are evaluated by everyone around them—their boss, their peers, and their subordinates. > Such a complete and thorough approach provides people with a far richer array of information about their performance than does a conventional appraisal given by just the boss. > Of course, such a system also takes considerable time and must be handled so as not to breed fear and mistrust in the workplace.

individual differences (245)

personal attributes that vary one person to another

interviews (314)

poor selection device, although they are actually often a poor predictor of job sucess

recruiting (313)

process of attracting qualified persons to apply for job an organization is seeking to fill > When managers have determined that new employees are needed and understand the legal context in which they operate, they must then turn their attention to recruiting and hiring the right mix of people. This involves two processes: (1) acquiring new employees from outside the company and (2) promoting current employees from within. Both external and internal staffing, however, start with effective recruiting.

labor relations (325)

process of dealing with employees who are represented by a union

realistic job preview (RJP) (313)

providing the applicant with a real picture of what it would be like performing the job the organization is to fill

person-job fit (252)

refers to the extent to which a person's contributions and the organization's inducements match one another. A good person-job fit is one in which the employee's contributions match the inducements the organization offers. In theory, each employee has a specific set of needs that she wants fulfilled and a set of job-related behaviors and abilities to contribute.

Conscientiousness (246)

refers to the individual's persistence, dependableness, and orderliness. "Highly" conscientious people tend to focus on relatively few tasks at one time; as a result, they are likely to be organized, systematic, careful, thorough, responsible, and self-disciplined.

Openness (246)

reflects how open or rigid a person is in terms of his or her beliefs. People with "high levels" of openness are curious and willing to listen to new ideas and to change their own ideas, beliefs, and attitudes in response to new information. People with "low levels" of openness tend to be less receptive to new ideas and less willing to change their minds.

incentive program (315)

special compensation program designed to motivate high performance

employee behavior (242)

suggests that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance—or expectancy—of obtaining. A reward that seems out of reach is likely to be undesirable even if it is intrinsically positive. (Figure 8.5) (Individual Effort > Effort-Performance issue > Individual Performance > Performance-Reward Issue > Organizational Rewards > Rewards-Personal Goods Issue > Personal Goals)

Emotionality (246)

the degree to which people tend to be "positive" or "negative" in their outlook and behaviors toward others. People with "positive emotionality" are relatively poised, calm, resilient, and secure; people with "negative emotionality" are more excitable, insecure, reactive, and subject to mood swings.

need for power (256)

the desire to control one's environment, including financial, material, informational & human resources

self-esteem (248)

the extent to which a person believes that he or she is a worthwhile and deserving individual. A person with high self-esteem is more likely to seek higher-status jobs, be more confident in his or her ability to achieve higher levels of performance, and derive greater intrinsic satisfaction from his or her accomplishments.

authoritarianism (248)

the extent to which a person believes that power and status differences are appropriate within hierarchical social systems such as organizations

locus of control (247)

the extent to which people believe that their behavior has a real effect on what happens to them

cognition (249)

the knowledge a person presumes to have about something. You may believe you like a class because the textbook is excellent, the class meets at your favorite time, the instructor is outstanding, and the workload is light. This "knowledge" may be true, partially true, or totally false.

psychological contract (250)

the overall set of expectations held by employees and the organization regarding what employees will contribute to the organization and what the organization will provide in return. Unlike a business contract, a psychological contract is not written on paper, nor are all of its terms explicitly negotiated.

personality (245)

the relatively stable set of psychological attributes that distinguish one person from another >In recent years, researchers have identified five fundamental traits that are especially relevant to organizations. These are commonly called the "big five" personality traits.

motivation (252)

the set of forces that cause people to behave in certain ways. One worker may be motivated to work hard to produce as much as possible, whereas another may be motivated to do just enough to survive. Managers must understand these differences in behavior and the reasons for them.

Heirarchy of Human Needs Model (254)

theory of motivation describing five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs

expectancy theory (257)

theory of motivation holding that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance of obtaining

Theory Y (253-254) * Figure 8.1 Theory X & Theory Y

theory of motivation holding that people are naturally energetic, growth-oriented, self-motivated, and interested in being productive * People are Energetic * People are ambitious and seek responsibility * People can be self-less * People want to contribute to business growth & change * People are intelligent

Theory X (253) * Figure 8.1 Theory X & Theory Y

theory of motivation holding that people are naturally lazy and uncooperative * People are Lazy * People lack ambition & dislike responsibility * People are self-centered * People resist change * People are gullible & not bright

on-the-job training(318)

training, sometimes informal, conducted while an employee is at work

Machiavellianism (248)

used to describe behavior directed at gaining power and controlling the behavior of others

positive reinforcement (259)

used when a company or manager provides a reward when employees exhibit desired behaviors, such as working hard, helping others, and so forth. When rewards are tied directly to performance, they serve as positive reinforcement.

development (318)

usually refers to teaching managers and professionals the skills needed for both present and future jobs

training (318)

usually refers to teaching operational or technical employees how to do the job for which they were hired

absenteeism (243)

when an employee does not show up for work

classical theory of motivation (252)

workers are motivated solely by money. In his 1911 book, The Principles of Scientific Management, industrial engineer Frederick Taylor proposed a way for both companies and workers to benefit from this widely accepted view of life in the workplace. If workers are motivated by money, Taylor reasoned, paying them more should prompt them to produce more.

Contributions from the Individual (251)

* effort *ability * loyalty * skills * time * Competency

Inducements from the Organization (251)

* pay * benefits * job security * status * promotion opportunities * career opportunities

"big 5" personality traits (245)

1) Agreeableness; 2) Conscientiousness; 3)Emotionality; 4) Extraversion; 5) Openness

changing nature of leadership (285)

> 1. Leaders as Coaches 2. Gender and Leadership

Charasmatic Leaders

> 1> Charismatic leaders envision likely future trends and patterns, set high expectations for themselves and for others, and behave in ways that meet or exceed those expectations. 2> Charismatic leaders energize others by demonstrating personal excitement, personal confidence, and consistent patterns of success. 3> Charismatic leaders enable others by supporting them, empathizing with them, and expressing confidence in them.

rational decision making process (292)

> 1> Recognizing and defining the decision situation 2> Identifying alternatives 3> Evaluating alternatives 4> Selecting the best alternative 5> Implementing the chosen alternative 6> Following up and evaluating the results

Gender and Leadership (285-287)

> > Given that most leadership theories and research studies have focused on male leaders, developing a better understanding of how women lead is clearly an important next step. > Some early observers, for instance, predicted that (consistent with prevailing stereotypes) female leaders would be relatively warm, supportive, and nurturing as compared to their male counterparts. > But research suggests that female leaders are not necessarily more nurturing or supportive than male leaders. Likewise, male leaders are not systematically harsher, more controlling, or more task focused than female leaders.

state of uncertainty (291)

> > Most of the major decision making in contemporary organizations is done under a state of uncertainty. > The decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative. > This uncertainty stems from the complexity and dynamism of contemporary organizations and their environments.

charismatic leadership (282)

> > a type of influence based on the leader's charisma, a form of interpersonal attraction that inspires support and acceptance. > Charismatic leaders are likely to have a lot of confidence in their beliefs and ideals and a strong need to influence people. > They also tend to communicate high expectations about follower performance and to express confidence in their followers. > Many of the most influential leaders in history have been extremely charismatic, including entrepreneurs Mary Kay Ash, Steve Jobs, and Ted Turner; civil rights leader Martin Luther King, Jr.; and Pope John Paul II.

coalition (294)

> > an informal alliance of individuals or groups formed to achieve a common goal. > This common goal is often a preferred decision alternative. > For example, coalitions of stockholders frequently band together to force a board of directors to make a certain decision.

ethical leadership (288)

> > emerging as an important issue for organizations. In previous times, leaders and their employees worked together in the same physical location and engaged in face-to-face interactions on a regular basis > both leaders and their employees may work in locations that are far from one another. > Such arrangements might include people telecommuting from a home office one or two days a week to people actually living and working far from company headquarters.

Crucial Elements of Charismatic Leadership (282)

> > envision likely future trends and patterns, set high expectations for themselves and for others, and behave in ways that meet or exceed those expectations. > energize others by demonstrating personal excitement, personal confidence, and consistent patterns of success. > enable others by supporting them, empathizing with them, and expressing confidence in them.

Substitutes and Neutralizers organization factors (284)

> > explicit plans and goals > rigid rules and procedures > rigid reward system not tied to performance > physical distance between supervisor and subordinate

substitutes & Neutralizers group factors (284)

> > group performance norms > high level of group cohesiveness > group interdependence

Substitutes and Neutralizers Individual factors (284)

> > individual professionalism > individual ability, knowledge, and motivation > individual experience and training > indifference to rewards

legitimate power (277)

> > power granted through the organizational hierarchy > the power defined by organization to be accorded to people occupying a particular position

reward power (278)

> > power to give or withhold rewards > rewards that a manager may control include: salary increase, bonus, promotion recommendation, praise, recognition, and interesting job assignment

decision-making process (289)

> > recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice > One step of the process, for example, is that the person making the decision must both recognize that a decision is necessary and identify the set of feasible alternatives before selecting one. > includes recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice.