MG 401 Exam 2 Study Guide - UAB

Performance management methods

BARS - Behaviorally Anchored Rating Scales

Follower reactions to authority

Counterdependent: people who resent authority and being told what to do Overdependent: compliant and give in all of the time Interdependent: depending on one another to get things done in the group and organization

Performance management

The process of ensuring that employees' activities and outputs match the organization's goals

Equity theory

focuses on distributive justice (what people receive as a result of their knowledge, skills, and effort on the job). It suggests that people may become demotivated or put forth less effort when they feel that what they give and what they get is not in balance.

Schedules of reinforcement

how often a reward (or punishment) is applied also predicts learning and motivation - The first schedule is continuous (a specified behavior is rewarded or punished every time it occurs) - useful during the learning period - Fixed-interval schedules are those where the first response is rewarded only after a specified amount of time has elapsed - Variable-interval schedules occur when a response is rewarded after an unpredictable amount of time has passed - Fixed-ratio schedules are those where a response is reinforced only after a specific number or responses - Variable-ratio schedules occur when a response is reinforced after an unpredictable number of responses The second schedule is partial schedules (the variable-ratio schedule of partial reinforcement produces the most persistent, long-term effects on behavior; receiving rewards in a random fashion tends to increase effort until the reward is received) - Fixed-interval: reinforced after a certain amount of time - Variable-interval: reinforced after an average amount of time has passed - Fixed-ratio: reinforced after a certain number or responses have occurred - Variable-ratio: reinforced after an average number of responses have occurred

Designing work to be motivational

Work redesign: the basic idea is to load jobs with more of the core job characteristics that have been shown to motivate; may be horizontal (adding different tasks at the same level) or vertical (adding decision-making responsibility) Job enrichment: Job rotation (involves cross-training or allowing workers to do different jobs) and combining tasks

Self-determination theory

a theory of motivation that is concerned with the beneficial effects of intrinsic motivation and the harmful effects of extrinsic motivation; AKA cognitive evaluation theory

Reinforcement theory

based upon the law of effect, which states that past actions that led to positive outcomes tend to be repeated, whereas past actions that led to negative outcomes will diminish; AKA operant conditioning

Punishment

decreases behavior by two ways: 1) Punishment by application is the presentation of an unpleasant event or outcome to weaken the response it follows (writing a letter to an employee's file for failing to meet a deadline) 2) Punishment by removal (also called extinction) is when a pleasant event or outcome is removed after a behavior occurs (withholding praise when an employee does not perform well)

Pay dispersion

differences in pay levels between individuals within or across jobs or organization levels

Job crafting

extent to which individuals can demonstrate initiative in designing their own work "team crafting" - to capture the actions employees take to shape, mold, and redefine their jobs

Problems with performance reviews

- Perceptions of bias in the process - Fear of punishment - Time consumed by the process - Employees don't like negative feedback - Employees may tune out the boss once the rating is known

Differences between managers and leaders

- The manager administers; the leader innovates - The manager is a copy; the leader is an original - The manager maintains; the leader develops - The manager focuses on systems and structure; the leader focuses on people. - The manager relies on control; the leader inspires trust - The manager has a short-range view; the leader has a long-range perspective - The manager asks how and when; the leader asks what and why - The manager has his or her eye always on the bottom line; the leader's eye is on the horizon - The manager imitates; the leader originates - The manager accepts the status quo; the leader challenges it - The manager is the classic good soldier; the leader is his or her own person - The manager does things right; the leader does the right thing

What is leadership?

- The process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives (In short, a process of social influence, which maximizes the efforts of others, towards the achievement of a goal) - Stems from social influence - Requires others - No mention of personality traits, attributes, or even a title - It includes a goal

Forces driving organizational change

1) Workforce Diversity: sex, race/ethnicity, cultural differences, age/generation 2) The Economy: recession, government policy, rising health care costs 3) Technology: mobile devices, social media, internet security, robotics 4) Globalization: multinational corporations, political instability, fair trade, sustainability, outsourcing, emerging markets 5) Competition: global competition, mergers and acquisitions, customer standards, time to market

Expectancy theory

3 basic principles: 1) Employees decide to put forth effort when they believe that their effort will lead to good performance. 2) The employee's performance will be evaluated accurately and will lead to rewards (pay raises, bonuses) 3) Th employees value the rewards offered by the organization.

Repairing broken trust

3 important questions to ask after a trust violation has occurred: 1) Is the trustee innocent or guilty of committing the transgression? 2) If the trustee is guilty of the transgression, should this be attributed to the situation or to the person? 3) If the transgression is attributed at least in part to the person, is the personal shortcoming fixable or is it an enduring characteristic of the trustee? These questions are important because they offer guidance for repairing trust.

Leader-member exchange development

3 steps: 1) Role-taking: the boss tests the commitment of the follower by offering extra work. Through this testing and responses, the boss forms an overall assessment of whether the follower in in-group or out-group. 2) Role-making: mutual expectations of the working relationship are established and the follower's role is clearer. 3) Role-routinization: once roles are made, they become stable since the leader and follower both know what to expect.

Sources of performance management ratings

360 degree performance appraisal: the input from a number of these sources is included to provide a more comprehensive view of an employee's performance

Ethical leadership

4 components: 1) Moral sensitivity involves recognizing that our behavior impacts others 2) Moral judgment involves determining the right direction 3) Moral motivation is having the need to do the right thing 4) Moral action Has been found to be negatively related to work group-level ethical behavior and relationship conflict among coworkers

Job characteristics theory

5 core job dimensions for motivating potential at work: 1) Skill variety: the extent to which people use different skills and abilities at work. The employee is not doing the same repetitive tasks over and over. 2) Task identity: the task is one that people experience from beginning to end. In other words, they identify with an entire work product. 3) Task significance: the degree to which the job is seen as having an impact on others. The work does something good for society. 4) Autonomy: the employee has the freedom to plan and perform his or her own work. The employees have discretion about their work and are not intensely supervised. 5) Feedback: the job provides information on how effective the employee's work is. Just doing the work itself provides performance feedback.

Organizational development

A collection of social psychology methods employed to improve organizational effectiveness and employee well-being Examples of interventions: - Survey feedback - Workout - Process consultation - Team building - Appreciative inquiry (AI)

Planned organizational change

A deliberate attempt by managers and employees to improve the functioning of teams, departments, divisions, or an entire organization in some important way. Reactive/Incremental: Put out small fires (Solve problems on a day-to-day basis. Quick fixes to short-term concerns.) Reactive/Radical: Stop the bleeding (Crisis management. Industry shakeups, economic turmoil, financial shocks.) Proactive/Incremental: Tweaking (Anticipate and plan. Improve current ways of doing things. Fine tune. Guided evolution.) Proactive/Radical: Transformation (Do things fundamentally different. Change basic assumptions. Revolution.)

The importance of trust

Defined as "the willingness to be vulnerable" It is fundamental to the development of effective working relationships with bosses (and others) Calculated-based trust (CBT): a form of trust based upon keeping records of what another person does for you and what you do for them. "Arm's length" form of trust in which neither party really becomes that vulnerable to the behavior of the other person Knowledge-based trust (KBT): is grounded in how predictable the other person is. Over time, through interactions where benefits are exchanged between two parties, people come to expect the other person to come through for them. Identification-based trust (IBT): characterized by the leader and follower sharing the same goals and objectives

Resistance to change

Employees fight the change and try to undermine it People resist change for personal reasons (habit, security, economics, and fear of the unknown) and organizational reasons (structural inertia, group inertia, threats to expertise, and threats to established power relationships Overcome resistance to change by: - Education and communication - Participation - Building support and commitment - Implementing changes fairly - Selecting people who accept change - Manipulation and cooptation - Coercion

Developing a fair reputation

Fairness is a necessary (but not sufficient) condition for effective leadership. The ability to develop high-quality relationships depends upon following norms of procedural justice and ensuring that outcomes are fairly distributed.

Leading change

Lewin's 3 step model: 1) Unfreezing: challenges the status quo by shaking up assumptions 2) Changing: movement toward a new desired state 3) Refreezing: reinforcing and restructuring to make the changes permanent Kotter's 8 step model: 1) Create urgency 2) Form a powerful coalition 3) Create a vision for change 4) Communicate the vision 5) Empower action 6) Create quick wins 7) Build on the change 8) Make it stick

The meaning of money

Money has a symbolic meaning for employees, and it represents nonmonetary aspects of life such as achievement, success, competence, autonomy, security, and power. Some people feel that money may even bring many friends.

Role stress

Role ambiguity: occurs where there is a lack of specificity or predictability about what a person's role is Role conflict: occurs when there are incompatible demands regarding what a person's role is Role overload: caused by too much work, time pressure, and deadlines that a person feels unable to meet

Goal setting

SMART goals: - Specific - Measurable - Attainable - Relevant - Time based The role of leaders in goal setting: - Discuss and document commitments of all employees - Revisit and refresh commitments over time - Agree to success metrics for each commitment - Align commitments across the company - Drive management team calibration discussions so interdependencies and metrics are vetted across individuals

Servant and authentic leadership

Servant leader: The servant-leader is servant first...It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions. Authentic leader: involves knowing oneself and behaving in a way that is consistent with what is intuitively right. Authentic leadership has four dimensions: 1) Self-awareness: seeks feedback to improve interactions with others 2) Relational transparency: says exactly what he or she means 3) Internalized moral perspective: demonstrates beliefs that are consistent with actions 4) Balanced processing: solicits views that challenge his or her deeply held positions

The importance of fairness

The need for fairness is a universal motive. Employees feel like they should be compensated for their performance.

Full-range leadership development

Transactional leadership: behaviors that motivate followers through rewards and corrective actions. Transactional leader behaviors are (from worst to best): - Nonleadership/laissez-faire leadership: "near-avoidance of leadership"; the least active and the least effective - Management by exception: Active (MBE-A) - the leader looks for the follower to make errors and then corrects them. Passive (MBE-P) - the leader does not actively look for errors or deviations from work standards, but when noticed, they take corrective action - Contingent reward: promising or delivering rewards to followers contingent on their performance Transformational leadership: behaviors that mobilize extra effort from followers through emphasis on change through articulating a new vision for the organization The 4 I's: - Idealized influence: being admired and respected by followers is the core of this leadership component. They are seen as change agents in the organization. - Inspirational motivation: leaders inspire others to work hard toward organizational goals by providing challenges. They are positive and upbeat and get others to feel optimistic. - Intellectual stimulation: transformational leaders encourage innovation and new ideas. They listen to followers openly and don't criticize novel solutions to problems. - Individualized consideration: transformational leaders treat each follower as a unique person. They get to know people one-on-one and mentor them.

Reinforcers

increases behavior by two ways: 1) Positive reinforcement is a favorable event or outcome presented after the behavior (praise or bonus) 2) Negative reinforcement is the removal of an unpleasant event or outcome after the display of a behavior (ending the daily criticism when an employee shows up for work on time)

Path-Goal Theory (including adapting to the situation)

leaders increase the quality and number of payoffs from reaching goals and then make the path to the goals clear by removing obstacles 4 different motivating leadership behaviors: 1) Directive leadership: giving followers specific instructions about their tasks, providing deadlines, setting standards for performance, and explaining rules 2) Supportive leadership: showing consideration, being friendly and approachable, and paying attention to the well-being of followers 3) Participative leadership: allowing followers to have a voice in decisions that affect them, sharing information, inviting followers' ideas and opinions 4) Achievement-oriented leadership: challenging followers to perform at high levels, setting standards for excellence, showing confidence in followers' ability to reach goals The leader should be flexible and adapt their leadership behavior to followers and the situation.

Organizational justice

the "members" sense of the moral propriety of how they are treated - Distributive justice: what people receive as a result of their knowledge, skills, and effort on the job - Procedural justice: the perception of how fair the process was in making decisions that affect employees - Interpersonal justice: how employees are treated by their leaders including respect and propriety - Informational justice: the perceived fairness of the communications made by leaders during a process

Pygmalion effect

the high expectations of performance by leaders actually create conditions in which followers succeed 4 ways leaders can communicate high expectations: 1) Create a warmer emotional climate 2) Teach more and increasingly challenging 3) Invited followers to ask questions of clarification 4) Provide feedback on performance

Leader-Member exchange (LMX)

the quality of the working relationship that is developed with each follower In-group members: go above and beyond and take on extra work (high LMX) Out-group member: do not go above and beyond and will not take on extra work (low LMX)

Organizational behavior modification

the systematic application of operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors A-B-C Analysis: A) Antecedents B) Behavior C) Consequences

Social learning theory

the theory that we learn social behavior by observing and imitating and by being rewarded or punished The modeling process: 1) Attention: to learn, a person has to be paying attention to another's behavior. People pay attention to things that are either interesting or new 2) Retention: The information must be stored for access in the future. This is important to observational learning since a person must remember what they have observed. 3) Reproduction: One information is noted and retained, the next step is that the person imitates the behavior that they recall. Repeating the behavior leads to improved performance. 4) Motivation: For observational learning to work, the person needs motivation to imitate. Thus, social learning theory discusses the roles of reinforcement and punishment. (For example, if you see another student rewarded with extra credit points for participating in class every day, you might begin to do the same)