comm exam 2

toys r us reasons for failure

1. competition from big box retailers (target and walmart) 2. amazon deal 3. store experience 4. online experience 5. debt from leveraged buyout 6. failure to innovate

tuckman stages

1. forming 2. storming 3. norming 4. performing

components of goal setting theory

1. specific goals lead to higher performance 2. more difficult goals lead to better performance 3. feedback on progress enhances performance

four categories of ethical dillemmas

1. truth vs loyalty 2. individual vs community 3. short term vs long term 4. justice vs mercy

marlow construction case

Gomez (worker) had potential but was always late/didn't care (just had other things going on that boss wasn't aware of), boss didn't properly motivate in ways that mattered to Gomez

situational leadership II model

S1, S2, S2, S4

reward power

ability to bestow positive benefits on employees

self fulfilling prophecy

an expectation that causes you to act in ways that make that expectation come true

escalation of commitment

an increased commitment to a previous decision despite evidence it may be wrong

ethical

can form the basis of new laws and policies

what types of things do people do to address inequity

change work habits, change job benefits/income, distort perception of themselves, distort perception of others, look at situation from diff perspective, leave situation

instrinsic motivation

comes from individual

extrinsic motivation

comes from outside individual

rewards

encourage behavior

most effective dimensions of power

expert and referent

want

gap between what is and what is desired

mutual adjustment

high level coordination

goal setting theory

individual's intentions to work toward a goal is primary source of motivation

referent power

influence because of admiration (personal)

legal

minimum standard, how not to behave, evolves over time

benefits of teams

more/better ideas and solutions, more learning/greater retention, important life and career skills, create personal connections

equity theory

people compare ratio of what you're getting from job vs putting in to others both inside and outside of the workplace

3 types of interdependence

reciprocal, sequential, pooled

corporate social responsibility (CSR)

reduce negative impact, cost focused, redistribute value created by firms

ethics case

relational view

strategic frames

the set of assumptions that determine how managers view the business (blinders)

values

the set of shared beliefs that determine corporate culture (dogmas)

relationships

the ties to employees, customers, suppliers, distributors, and shareholders (shackles)

paperclip exercise

those with a difficult specific goal outperform those with an easy specific goal and those with a nonspecific goal

theranos

took shortcuts to keep her company solvent and lied to keep investor money flowing

violion dilemmas

yard sale vs music stores; involve information asymmetry

expected/standard practice

"everyone does this"

locus of loyalty

"i don't want to hurt the people i'm loyal to"

locus of responsibility

"it's not my responsibility, i'm just following orders"

enron

"legal fraud", found loopholes that made financial statements completely hide the economic reality

materiality

"this won't hurt anyone, there's no significant impact"

practices that make teams effective

1. common commitment and purpose 2. specific performance goals 3. comlementary skills 4. commitment to how the work gets done 5. mutual accountability

MGM resorts internation case

They were losing revenue because market shifted away from gambling and towards hotels, covid, gambling addictions

confirmation bias

a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence

coercive power

ability to punish someone who doesn't comply

greenwashing

acting simply for the sake of public relations

reciprocal

adjust as the situation changes (basketball team, research teams)

current events: super bowl ads

aimed to make viewers feel good

stakeholders

any group or individual who can affect or is affected by the organization's strategies, major transactions, and activities

counter dependence

aversion/resistance to authority

managing up case takeaways

awareness of self is critical to managing up, it's primarily employee's responsibility to understand the boss's expectations

ways to counter the reasons good companies go bad

balancing exploration and exploitation

overdependence

belief that leader is all knowing

current events: biden

biden used first veto on anti-esg bill

interdependent relationship between leader and follower

boss generally has more power but relationship is characterized by mutual dependence

4 types of innovation

breakthrough innovation, sustaining innovation, basic research, disruptive innovation

long term

broad focus, take hits now to better company in future, shareholders will do better if sensitive to stakeholders

impact of stock options on ceos and companies

ceos are more motivated to care about short term/stock prices to benefit themselves financially

S2

coaching (let's talk, i'll decide), D2 (low/some competence, low commitment)

five dimensions of power

coercive, reward, legitimate, expert, referent

pooled

combining separate parts (gymnastics team, cashier/bagger, sales team)

storming

conflict occurs as personal agendas come to light, members assert themselves and start questioning decisions

legitimate power

connected to the authority inherent in a person's role

exploitation

continuous improvements in quality and manufacturing

disruptive innovation examples

copy machines, mobile phone cameras, 3D printing

shareholder theory

corporation's purpose is to make as much money as possible for its shareholders (increase stock prices)

stakeholder theory

corporations purpose is for CEO to make decisions regarding stakeholders

sunk costs

costs that have already been incurred and cannot be recovered

creating shared value (CSV)

create positive impact, profit focused, expand total pool of economic and social value

ed freeman

darden professor (stakeholder theory)

Deep purpose

deep commitment to both economic and social benefits (practical idealism) (gotham greens)

volkswagen

defeat device that could detect when car was being tested and change performance to improve results

S4

delegating (you decide), D4 (high competence, high commitment)

empowerment (aka involvement or participative management)

delegating decision-making authority to employees at all levels of the organization, trusting employees to make the right decision

S1

directing (i'll decide), D1 (low competence, high commitment)

internal attribution response

disciplinary response, may trigger downward performance spiral and lead to self-fulfilling prophecy

punishments

discourage behavior

netflix innovation

disruptive

types of organizational justice

distributive, procedural, interactional

teamwork and diversity

diverse teams = more innovative and successful

Purpose on the periphery

doing good is kept separate from the core business/doing well

triple bottom line

economic, social, and environmental results of their actions

design thinking

empathize, define, ideate, prototype, test

ESG

environmental (conservation of the natural world), social (consideration of people and relationships), and governance (standards for running a company)

integration thesis

ethics isn't just avoiding illegal actions, but conducting ourselves and business in a way that benefits rather than harms other (look at long term view of relationship)

current events: wells fargo

exec faces prison/fines over fake accounts scandal

expectancy theory components

expectancy, instrumentality, valence (E->P->O)

four most common arguments in values conflicts

expected/standard practice, materiality, locus of responsibility, locus of loyalty

norming

find ways of resolving conflict and begin to emerge as cohesive unit, constructive feedback given

success trap

focusing on only exploitation

perpetual search trap

focusing on only exploration

motivation

forces within a person that affect intensity, direction, and persistence of voluntary behavior

FTX

fraud

need

gap between what is and what is required

cognitive miser

general tendency of all people to use mental shortcuts in making judgments and drawing inferences

managing up case

grace had new idea, landon said no, grace kept pushing (talked to other workers, talked to higher boss at social event, emailed him on weekend, landon got mad, etc)

exploration

industry-shaping innovations like hybrid engines

expert power

influence that comes from having special knowledge (personal)

luke's lobsters

let employees have more freedom, sustainable seafodd, self regulation

standardization

low level coordination

planning

mid level coordination

external attribution response

more effort to fix or address situation in constructive way, get help for employee, clarifying role/procedures

short term

narrow focus (buy back stocks)

sequential

output becomes input (relay race, chipotle)

reinforcement theory

people do things because they know certain consequences

interactional justice

perceived degree that respect is given

distributive justice

perceived fairness of outcome

procedural justice

perceived fairness of process used to determine outcome

informal power

power tied to personal characteristics, not position (expert, referent, information)

formal power

power tied to position (legitimate, coercive, reward)

groupthink

pressure to conform to group idea

breakthrough innovation

problem defined, domain undefined

sustaining innovation

problem degined, domain defined (most innovation)

Purpose as disguise

professed purpose/mission covers up questionable business or even misconduct (theranos, ftx)

mckinsey

purdue's opoid sales

whole foods

purpose = more healthy food

hewlett packard

respected the people, stewards of public institutions

container store

saving time/space on consumer level, pay employees more, low turnover, vendor relationship

ways to address cognitive errors/biases

seek out more information and different perspectives, give ourselves time to step away from making a decision or taking action

current events: svb

silicon valley bank failed (overdrawn)

ESG (left)

standards aren't strict enough

ESG (right)

standards don't matter

hallmarks of active inertia

strategic frames, processes, relationships, values

warren buffet

successful investor, chair/ceo of berkshire hathaway (holding company), proponent of partnering with someone who will disagree with you

S3

supporting (let's talk, you decide), D3 (moderate/high competence, variable commitment)

eastman chemical

sustainable manufacturing of chemicals, safe for users and environment (explosion)

lego innovation

sustaining innovation

shibumi shade innovation

sustaining innovation

fundamental attribution error

tendency to attribute others' behavior to their dispositions and our own behaviors to our situations

social loafing

tendency to put forth less effort when working in a group

separation fallacy

tendency to separate the business case from the ethics case

current events: tesla

tesla cut electric vehicle assembly costs in half

corporate social responsibility (csr)

the practice by which a business views itself within a broader context, as a member of society with certain implicit social obligations and environmental responsibilities

processes

the way things are done (routines)

expectancy theory

the way we act depends on what we expect to happen and how much we desire that outcome

business case

transactional view

basic research

undefined problem and undefined domain

disruptive innovation

undefined problem, domain defined (appeal to low end or unserved consumers and then migrate to mainstream market)

examples of goal setting failing

wells fargo (impossible sales goal -> fraud) and ford (impossible deadline -> neglected safety checks)

why does goal setting sometimes fail

what gets measured is what gets done, what gets rewarded is what gets done, undermines instrinsic motivation, encourages risky or unethical behavior

self serving bias

when we attribute successes to ourselves, but blame negative results to external factors

Purpose as win-win

where economic and social benefits intersect, and only when they intersect

follow dubious orders or speak up case

women had good internship in another country but they wanted her to lie about her status and say she was a grad student but not disclose she was working for the company to get data from competitor

current events : insulin

working to develop sustainable path that balances patient affordability, market dynamics, and evolving policy changes; insulin prices cut