BA 350 Randel Final Exam

Mechanistic Model:

"synonymous with Bureaucracy" A structure characterized by: • Extensive departmentalization • High formalization • Limited information network (Clear chain of command) • Centralization • High Specialization • Narrow spans of control

Contingency theories:

(A leader + a situation): Fiedler model, situational leadership theory, leader participation model, leader-member exchange theory, path-goal theory

Perception:

- Perception: A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. • Behaviors are based on perceptions of reality, not reality itself! • The world as it is perceived is the world that is behaviorally important

What happens to employee performance after organizational change:

-performance goes up and then comes back down (hawthorne effect) -steadily goes up from change -goes down at first then steadily up

Individual resistance to Org. Change:

-security -fear of the unknown -selective info processing -habit -economic factors

Organizational Resistance to Org. Change:

-threat to expertise -group inertia -limited focus of change -structural inertia -threat to established resource allocations -threat to established power relationships

Action research:

A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicates. Benefits: • Problem-focused rather than solution centered • Heavy employee involvement reduces resistance • 5 process Steps: 1. Diagnosis 2. Analysis 3. Feedback 4. Action 5. Evaluation

Organizational Development (OD):

A collection of planned-change interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well being. • Values: 1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation techniques: • Intergroup Development: OD efforts to change attitudes, stereotypes, and perceptions that groups have of each other • Team Building: High interaction among team members to increase trust and openness.

Situational leadership theory (SLT):

A contingency theory that focuses on follower's readiness • Follower Readiness: ability & willingness (both must be in place) • Leader: decreasing need for support and supervision if ability and willingness are in place for follower readiness • If followers are unable and unwilling to do a task the leader needs to give clear and specific directions. • Unable and willing requires high task orientation and high relationship orientation (Directive). • Able and unwilling requires supportive. • Able and willing the leader should just use participative style

Strong Culture:

A culture in which the core values are intensely held and widely shared. • If an org has a strong culture, the management does not need to be so concerned with formalization; it is internalized by employees • Examples: Southwest(Good), NYPD (bad) advantages: Improves performance by: • Rallying employees around a set of meaningful, united goals • Guides employee behavior (in place of formalization) • Conveys sense of identity for its members • Facilitates commitment to something larger than self-interest disadvantages: • Barrier to diversity • Blinds firm decision makers to changes in the environment • Potential for ethical transgressions (NYPD ex)

Weak Culture:

A culture in which the opinions about the organization's mission and values vary widely amongst group members • Usually a higher turnover rate, and less agreement w/in Management

Graphic Rating Scales:

A method in which the evaluator rates the performance factors on an incremental scale.

Job characteristics model (JCM):

A model that proposes that any job can be described in terms of five core job dimensions: skill variety, task identity, task significance, autonomy, and feedback

Power Distance:

A national culture attribute that describes the extent to which a society accepts that power in institutions and organizations is distributed unequally.

Uncertainty Avoidance:

A national culture attribute that describes the extent to which a society feels threatened by uncertainty and ambiguous situations and tries to avoid them.

Job satisfaction:

A positive feeling about one's job resulting from an evaluation of its characteristics. It depends in part on perceived fairness.

Virtual Organization:

A small, core organization that outsources major business functions; highly centralized, little or no departmentalization; Concepts: o Provides maximum flexibility while concentrating on what the organization does best. o Disadvantage is reduced control over key activities and assets of the business.

Simple structure:

A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization

Matrix structure:

A structure that creates dual lines of authority and combines functional and product departmentalization • Gains advantages of functional and product departmentalization while avoiding their weaknesses. • Facilitates coordination of complex and interdependent activities. • Breaks down unity-of-command concept, functional and departmental managers: "Who do I report to?"

Unity of Command:

A subordinate should have only one superior to whom he or she is directly responsible

Two-factor theory:

A theory by Frederick Herzberg that relates intrinsic factors to job satisfaction and associate extrinsic factors with dissatisfaction. **Elements that reduce dissatisfaction can only just do that...reduce dissatisfaction, but not contribute to job satisfaction; Also, called motivation- hygiene theory Theory that relates intrinsic factors to job satisfaction and associate extrinsic factors with dissatisfaction. • Opposite of "satisfaction" is "no satisfaction" → focus on satisfaction areas to improve motivation • Opposite of "dissatisfaction" is "no dissatisfaction"→ not as important for motivation • Hygiene Factors: factors that when adequate in a job, placate workers. When these factors are adequate, people will not be dissatisfied. • There is an assumed relationship between satisfaction and productivity (not always present in real life)

Equity theory:

A theory that says that individuals compare their job outcomes and inputs with those of others and then respond to eliminate any inequities. • Individuals take the ratio of their outcomes over their inputs and compare their ratio to others (usually someone similar) • If we believe our ratio to be equal to those with whom we compare ourselves, a state of equity exists (fairness) employees who percieve inequality will make one of six bad choices: 1. Change inputs (exert less effort if underpaid, more effort if overpaid) 2. Change outcomes (individuals paid on a piece-rate basis can increase pay by increasing # produced) 3. Distort perceptions of Self 4. Distort perceptions of others 5. Choosing a different referent 6. Leave the field (Quit)

Expectancy theory:

A theory that says that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. steps: • Effort (1)→ Performance (2)→ Rewards (3)→ Needs/Goals • 1. Effort-Performance Relationship: The probability perceived by the individual that exerting a given amount of effort will lead to performance • 2. Performance-Reward Relationship: The degree to which the individual believes performing at a particular level will lead to the attainment of some desired outcome • 3. Rewards-Goals Relationship: The degree to which organizational rewards satisfy an individual's personal goals or needs and the attractiveness of those potential rewards for the individual

Vision:

A vision is an idealized goal about the future that most leaders should explain to their followers. Charismatic leaders just do an especially good job explaining/articulating their vision. o McDonald's founder (Ray Kroc) used the following as his vision "Quality, service, cleanliness, and value" and kept repeating it to employees for the rest of his life. o Visions are inspiring, future-oriented, easily understood, and represent broad goals.

Hierarchy of Needs:

Abraham Maslow's hierarchy of five needs- physiological, safety, social, esteem and self-actualization - in which, as each need is substantially satisfied the next need becomes dominant. (physiological, safety, social)→ lower order needs, (esteem and self-actualization)→ higher order needs, as each need is substantially satisfied the next need becomes dominant; a lower level need must be satisfied before the next level higher can be motivating**.

Learning organizations:

An Organization that has developed the continuous capacity to adapt and change; Characteristics: • Holds a shared vision • Discards old ways of thinking. • Views organization as a system of relationships. • Communicates openly. • Works together to achieve shared vision.

Attribution theory:

An attempt to determine whether an individual's behavior is internally (individual's fault) or externally (due to situation) caused. Determination depends on 3 factors: • Distinctiveness: does the person show different behaviors in different situations. • Consensus: Is the person's response the same as others to the same situation. • Consistency: Is the person likely to respond in the same way over time.

Group-order Ranking:

An evaluation method that places employees into a particular classification, such as quartiles.

Boundary-less organization:

An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams; T-form Concepts: o -Eliminate vertical (hierarchical- minimize status and rank) and horizontal (departmental- replace functional with cross-functional teams ) internal boundaries. o -When fully operational, breaks down geographic barriers o -Breakdown external barriers to customers and suppliers through strategic alliances

Planned Change:

Change activities that are intentional and goal oriented. goals: o Improving the ability of the organization to adapt to changes in its environment. o Changing the behavior of individuals and groups in the organization

Double-Loop Learning:

Errors are corrected by modifying the organization's objectives, policies, and standard routines.

Single-Loop Learning:

Errors are corrected using past routines and present policies.

Charismatic leadership:

Followers make attributions of heroic or extraordinary leadership abilities when they observe certain (charismatic) behaviors. o →Max Weber: Character, heroism key characteristics: • Vision and articulation • Personal risk • Sensitivity to follower needs • Unconventional behavior

Resistance to change:

Forms of Resistance to Change: o Overt and Immediate • Voicing complaints, engaging in job actions (easy to see) o Implicit and Deferred • Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism (harder to catch early on)

Motivational theories

Hierarchy of Needs, two-factor theory, equity theory, and expectancy theory

Team Building:

High interaction among team members to increase trust and openness; Team Building Activities: o Goal and priority setting o Developing interpersonal relations o Role Analysis to each member's role and responsibilities o Team Process Analysis

Organizational Structure:

How Job tasks are formally divided, grouped, and coordinated. elements: work specialization departmentalization chain of command, span of control, formalization, centralization and decentralization

Environment:

Institutions or forces outside an organization that potentially affect the organization's performance. (Dynamic environments [Organic Model] create more uncertainty than static environments [Mechanistic Model]) dimensions: Capacity (degree to which environment can support growth) • Volatility (degree on instability in environment) • Complexity (degree of heterogeneity and concentration among environmental elements)

Leader-member exchange theory (LMX):

Leaders create in-groups and out-groups and subordinates with in-group status will have higher performance ratings, less turnover, and greater satisfaction with their superior. The following contribute to subordinates gaining "in-group" status: • Personal Compatibility • Subordinate Competence • Extroverted Personality

Lewin's Three-step model:

Lewin's Three-step model: • (1) Unfreezing the Status Quo: Changing to overcome the pressures of both individual and group resistance; o Restraining Forces (push downwards towards eq.): Forces that hinder movement from the equilibrium (DOWN) o Driving Forces (push upwards towards eq.): Forces that direct behavior away from the Status Quo (UP) • (2) Movement to a desired end state: A change process that transforms the organization from the status quo→desire state • (3) Refreezing the new change to make it permanent: Stabilizing a change by balancing driving and restraining forces. Change is short-lived if not refrozen

Approaches to Managing Organizational Change:

Lewin's three-step model, Kotter's 8 step plan for implementing change, action research, organizational development

Least Preferred Coworker Questionnaire

Measures whether a person is task or relationship oriented.

Intergroup Development:

OD efforts to change attitudes, stereotypes, and perceptions that groups have of each other; Intergroup Problem Solving: o Groups independently develop lists of perceptions. o Share and discuss lists. o Look for causes of misperceptions. o Work to develop integrative solutions.

Size:

Organizations that have more than 2,000 employees generally are more specialized, and more departmentalization (More people=more mechanistic)

Change Management Consulting: Organizational Change in Practice

Overview of the steps: 1) Evaluate Strengths and Weaknesses 2) Make recommendations for intervention. The recommendation should be very specific so they could be implemented without requiring further explanation 3) Types of resistance you could encounter 4) What strategies might be effective in overcoming each type of resistance?

Change agents:

Persons who act as catalysts and assume the responsibility for managing change activities.

Performance evaluation:

Purposes: o Making general human resource decisions. • Promotions, transfers, and terminations of employees o Identifying training and development needs within an organization o Validating selection and development programs effectiveness o Providing feedback to employees. o Supplying the basis for rewards allocation decisions (bonuses) o People often do what is rewarded, while not doing what is not rewarded.

Organic Model:

Similar to a Boundaryless organization; A structure characterized by: • Using cross-hierarchical and cross-functional teams • Flat (Decentralization) • Wide spans of control • Low formalization • Possesses comprehensive information network (free flow of info.) • Relies on participative decision making

Kotter's 8 step plan for implementing change:

Steps 1-4 relate to Unfreezing, 5-7 relate to Movement, and 8 relates to Refreezing: 1. Establish Sense of Urgency by creating a compelling reason for why change is needed. 2. Create a guiding Coalition with enough power to lead the change. 3. Create a new vision to direct the change and strategies for achieving the vision. 4. Communicate a the vision throughout the organization 5. Empower others to act on the vision by removing barriers to change and encouraging risk-taking. 6. Plan for, create, and reward short-term "wins" that move the organization toward the new vision. 7. Consolidate improvements, reassess changes, and make necessary adjustments to new programs. 8. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

Dependency Postulate:

The Greater number of B's dependent on A, the greater power A has over B

Behaviorally Anchored Rating Scales (BARS):

The appraiser rates employees based on items along a continuum, but the points are examples of actual behavior on the job rather than general descriptions or traits.

Departmentalization:

The basis by which jobs are grouped together; Grouping Activities by: • Function • Product • Geography • Process • Customer

Job involvement:

The degree to which a person identifies with a job, actively participates in it, and considers performance important to self-worth.

Organizational commitment:

The degree to which an employee identifies with a particular organization and its goals, and wishes to maintain membership in the organization.

Centralization:

The degree to which decision-making is concentrated at a single point in the organization.

Decentralization:

The degree to which decision-making is spread out to all levels of an organization.o

Formalization:

The degree to which jobs within the organization are standardized.

Self-serving bias:

The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors

Fundamental attribution error:

The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behaviors of others.

Fiedler model:

The theory that effective groups depend on a proper match between a leader's style of interacting with subordinates and the degree to which the situation gives control and influence to the leader. • *Least Preferred Coworker Questionnaire- measures whether a person is task or relationship oriented. • The 2 leader styles that are looked at as fixed: Task oriented or Relationship oriented. • 3 situational Variables: • Leader member relations: degree of trust and confidence subordinates have in leader • Task structure: degree to which job assignments are processed and thought out • Position power: influence to tell to stay late, fire, hire, discipline etc. • *Task oriented leaders do better in situations that are very favorable/unfavorable. • *Relationship oriented leaders do better in moderate situations

Chain of command:

The unbroken line of authority that extends from the top of an organization to the lowest echelon and clarifies who reports to whom.

Technology:

The way in which an organization transfers its inputs into outputs (every company has at least one technology they use) • Routine technologies are associated with tall, departmentalized structures and formalization in organizations • Non-routine technologies are associated with delegated decision authority.

The organizational change class activity and related material/discussion covered in class that day:

Volunteers helped make up teams, in which a leader had to influence Organizational Change within. We were looking at managing organizational change (consulting) in practice. There were cups with Gummy worms and yogurt.

teams(types):

Work team: A group whose individual efforts result in performance that is greater than the sum of the individual inputs. o Problem solving team: Groups of 5 to 12 employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment. o Self-managed work team: Groups of 10 to 15 people who take on responsibilities of their former supervisors. o Cross-functional teams: Employees from about the same hierarchical level, but from different work areas, who come together to accomplish a task. o Virtual teams: Teams that use computer technology to tie together physically dispersed members in order to achieve a common goal.

Path-Goal Theory:

a theory that states that it is the leader's job to assist followers in maintaining their goals and to provide the necessary direction and or support to ensure that their goals are compatible with the overall objectives of the group or organization; leaders can adapt behaviors unlike fielder's model aspects: • Leader Behaviors: Directive; Participative; Achievement Oriented; or Supportive • Subordinate Contingency Factors: Locus of control; Experience; Perceived ability • Environmental Contingency Factors: Task structure; formal authority system; work group • Outcomes: Performance; Satisfaction • Directive leadership yields greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out • Supportive leadership results in high performance and satisfaction when employees are performing structured tasks. • Directive leadership is likely to be perceived as redundant among employees with high ability or considerable experience, therefore use participative leadership • Achievement Oriented leadership for unstructured tasks to make it more enticing to achieve small goals

Bureaucracy:

characterized by: • High Specialization • High Formalization • Centralized Authority • Decision-Making follows chain of command • Usually departmentalization by function • Narrow spans of control *A way of trying to take politics out of an org.* strengths: o Minimum duplication of equipment and personnel o Enhanced communication o Centralized decision making o Standardization! weaknesses: o Subunit disagreements/inefficiencies o "Red Tape"- Too many steps/hoops to get end result o Obsessive concern with following the rules

Individual Resistance Types:

habit, security, economic factors, fear of the unknown, selective information processing

360-Degree Evaluations:

looking at an employee from all the different perceptions of the employees they work with, MGT can get a clear picture of employees and evaluate their performance.

Training and development Programs:

o Basic Literacy o Technical Skills o Interpersonal Skills o Problem Solving

Dependency as the key to power:

o Dependency and what creates it: B's relationship to A when person A has something Person B needs. o General Dependency Postulate: The Greater number of B's dependent on A, the greater power A has over B o Dependency is created by: • Importance of the resource to the organization • Scarcity of the resource • Non-substitutability of the resource

Tactics for dealing with resistance to change:

o Education and communication o Participation o Building support & commitment o Implementing changes fairly o Manipulation and cooptation o Coercion

Feedback(when providing it):

o Focus on specific behaviors o Keep feedback impersonal o Keep feedback goal-oriented o Make feedback well-timed o Ensure understanding o Direct negative feedback toward behavior that the recipient can control

Hofstede's Five value Dimensions framework of National Culture:

o In late 1970s Geert Hofstede analyzed variations in cultures and found that managers and employees vary on 5 value dimensions of national culture: o Power Distance: A national culture attribute that describes the extent to which a society accepts that power in institutions and organizations is distributed unequally. o Individualism vs Collectivism • Individualism: A national culture attribute that describes the degree to which people prefer to act as individuals rather than members of groups. • Collectivism: A national culture attribute that describes a tight social framework in which people expect others in groups of which they are a part to look after them and protect them. o Masculinity vs Femininity • Masculinity: A national culture attribute that describes the extent to which the culture favors traditional masculine work roles of achievement, power, and control. Societal views are characterized by assertiveness and materialism. • Femininity: A national culture attribute that indicates little difference between male and female roles; a high rating indicates that women are treated as the equals of men in all aspects of the society

The Strategy-Structure Relationship

o Innovation strategy: A strategy that emphasizes the introduction of major new products and services (Structure: Organic [loose structure, low specialization, low formalization, decentralized]) o Cost-minimization Strategy: A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expense, and price cutting (Structure: Mechanistic [Tight control, extensive work specialization, high formalization, high centralization]) o Imitation Strategy: A strategy that seeks to move into new products or new markets only after their viability has been proven (Structure: Both, mix of loose and tight properties.

Selection practices(HR):

o Interviews o Written Tests o Performance-Simulation Tests

Change(forces for it):

o Nature of the Workforce o Technology o Economic Shocks o Competition o Social Trends o World Politics

Five-stage group-development model

o Stages 1-5 : • Forming-The first stage in-group development, characterized by much uncertainty. • Storming- the second stage in-group development, characterized by intragroup conflict. • Norming stage- the third stage in-group development, characterized by close relationships and cohesiveness. • Performing Stage- The fourth stage in-group development, during which the group is functional. • Adjourning stage- the final stage in-group development temporary groups, characterized by concern with wrapping up activities rather than task performance.

Organizational Resistance Types:

structural inertia, limited focus of change, threat to expertise, threat to power relationships, threat to resource allocations

Organizational culture:

system of shared meaning held by members that distinguishes the organization from other organizations o Shared beliefs and values o "It's the way we do things around here" o A pattern of assumptions o Common perceptions held by Organization members o A sense of continuity that tells us who we are o "Social glue" o It is different than corporate image characteristics: 1) Innovation and Risk Taking 2) Attention to Detail 3) Outcome orientation 4) People orientation 5) Team Orientation 6) Aggressiveness within organizations 7) Stability of organization/culture

Task significance:

the degree to which a job affects the lives or work of other people

Autonomy:

the degree to which a job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.

Skill variety:

the degree to which a job requires a variety of different activities the worker can use specialized skills and talents.

Task identity:

the degree to which a job requires completion of a whole and identifiable piece of work

Feedback:

the degree to which carrying out work activities generates direct and clear information about your own performance

Stages of group development:

the five distinct stages groups go: forming, storming, norming, performing and adjourning.

personality attributes influencing organizational behavior:

• Personality Determinants: Heredity, Environment, Situation o Personality Traits: Enduring characteristics that describe an individual's behavior. • Extraversion: A personality dimension describing someone who is sociable, gregarious, and assertive. • Agreeableness: A personality dimension that describes some one who is good-natured, cooperative, and trusting. • Conscientiousness: A personality dimension that describes someone who is responsible, dependable, persistent, and organized.(***best predictor of job performance) • Emotional Stability: A personality dimension that characterizes someone as calm, self-confident, secure vs. nervous, depressed, and insecure. • Openness to Experience: A personality dimension that characterizes someone in terms of imagination, sensitivity, and curiosity. - How does personality relate to being an effective worker? o Conscientiousness → Performance/Org. Citizenship o Extraversion → Performance for Managers and Sales o Openness to Experience → Training Proficiency o Extraverted (E) Vs. Introverted (I): Extraverted individuals are outgoing, sociable, and assertive while introverts are quiet and shy. o Sensing (S) Vs.: Sensing types are practical and prefer routine and order, focusing on details. Intuitive (N): Intuitive types rely on unconscious processes and look at the "big picture". o Thinking (T) Vs.: Thinking types use reason and logic to handle problems. Feeling (F): Feeling types rely on their personal values and emotions. o Judging (J) Vs.: Judging types want control and prefer order and structure. Perceiving (P): Perceiving types are flexible and spontaneous. o Machiavellianism (Mach): The degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. o Narcissism: The tendency to be arrogant, have a grandiose sense of self-importance, require excessive admiration, and have a sense of entitlement. o Psychopathy: The tendency for a lack of concern for others and a lack of guilt or remorse when actions cause harm. o Terminal Values (ends): Desirable end-states of existence; the goals a person would like to achieve during their lifetime o Instrumental Values (means): Preferable modes of behavior or means of achieving one's terminal values. o Realistic: prefers physical activities requiring skill, strength, and coordination o Investigative: Prefers activities that involve thinking, organizing, and understanding o Social: Prefers activities that involve helping and developing others o Conventional: Prefers rule-regulated, orderly, and ambiguous activities o Enterprising: Prefers verbal activities in which there are opportunities to influence others and attain power o Artistic: Prefers ambiguous and unsystematic activities that allow creative expression o Power Distance: A national culture attribute that describes the extent to which a society accepts that power in institutions and organizations is distributed unequally. o Individualism vs Collectivism • Individualism: A national culture attribute that describes the degree to which people prefer to act as individuals rather than members of groups. • Collectivism: A national culture attribute that describes a tight social framework in which people expect others in groups of which they are a part to look after them and protect them. o Masculinity vs Femininity • Masculinity: A national culture attribute that describes the extent to which the culture favors traditional masculine work roles of achievement, power, and control. Societal views are characterized by assertiveness and materialism. • Femininity: A national culture attribute that indicates little difference between male and female roles; a high rating indicates that women are treated as the equals of men in all aspects of the society o Uncertainty Avoidance: A national culture attribute that describes the extent to which a society feels threatened by uncertainty and ambiguous situations and tries to avoid them. • Long-term orientation: A national culture attribute that emphasizes the future, thrift, and persistence. • Short term orientation: A national culture attribute that emphasizes the past and present, respect for tradition, and fulfillment of social obligations

Maslow's hierarchy of five needs:

• Physiological: Includes hunger, thirst, shelter, sex, and other bodily needs. • Safety: Security and protection from physical danger and emotional harm • Social: Affection, belongingness, acceptance, and friendship • Esteem: Internal factors such as self-respect, autonomy, and achievement; external factors such as status, recognition, and attention • Self-actualization: Drive to become what we are capable of becoming; growth, self-fulfillment

Written Tests:

• Renewed employer interest in using written tests for selection • Tests must show validated connection to job-related performance requirements.

Dependency is created by:

• importance of the resource to the organization • Scarcity of the resource • Non-substitutability of the resource

Interviews:

• →Are the most frequently used selection tool. • Should be structured to ensure against distortion due to interviewers' biases. • Are best for assessing conscientiousness, interpersonal skills, and person-organization fit of the applicant.