Management Exam 2

7 Hindrances to Decision Making

1. Different priorities 2. Imperfect information 3. Different cognitive capacity, values, skills, habits, and unconscious reflexes 4. Time and money constraints 5. Information overload 6. Conflicting goals 7. Complexity

What are some of the reasons that employees resist change?

An emotional or behavioral response to real or imagined threats to an established work routine

Which law created the EEOC?

Civil Rights Act (Title VII) - Prohibits discrimination on basis of race, color, religion, national origin, sex, or sexual orientation

What 3 needs does self-determination theory say motivate employees?

Competence, Connection, autonomy

Which theory is based on employees' perceptions of fairness in how they are rewarded for their efforts?

Equity Theory

What is the difference between enacted and espoused values?

Espoused values explicitly stated values and norms preferred by an organization. Enacted values represent the values and norms actually exhibited in the organization

What does expectancy, instrumentality, and valance mean?

Expectancy - will I be able to perform at the desired level of a task Instrumentality - what outcome will I receive if I perform at this level Valance - how much do I want the outcome

What kind of organizational structure groups people with similar occupational specialties together in formal groups

Functional Structure People with similar occupational specialties are put together in formal groups

What are the advantages of group decision-making?

Greater pool of knowledge, Different perspectives, Intellectual stimulation, Better understanding of decision rationale, Deeper commitment to the decision

Which law aims to protect employee health and safety?

Occupational Safety and Health Act (OSHA)

What is organizational commitment?

Reflects the extent to which an employee identifies with an organization and is committed to its goals Research shows a significant positive relationship between organizational commitment and job satisfaction, performance, turnover, and organizational citizenship behavior

When you take credit for your success but don't take the blame for your failures what bias are you experiencing?

Self-serving bias

Anchoring and adjustment bias

The tendency to make decisions based on an initial figure

Sunk-cost bias

Way of thinking in which managers add up all the money already spent on a project and conclude it is too costly to simply abandon it

Advantages of Group Decision Making

greater pool of knowledge, different perspectives, intellectual stimulation, better understanding of decision rationale, deeper commitment to the decision

Availability bias

The use of information readily available from memory to make judgments

What are the steps in Lewin's Change Model?

Unfreezing- create the motivation to change Changing- New information, models, & procedures Refreezing- Support & reinforce the change

What is the difference between a structured interview and an unstructured interview?

Unstructured interviews gather information about job candidates without the use of a fixed set of questions or a systematic scoring procedure. Structured interviews involve asking each applicant the same questions and comparing their responses to a standardized set of answers.

data analytics

Used by underwriters to decide how much an insurance policy should cost a customer; they use historical industry trends and loan characteristics, to predict risk levels.

tolerance for ambiguity

indicates the extent to which a person has a high need for structure or control in his or her life

Which models of decision making describe how managers actually make decisions?

nonrational

What are the disadvantages of group decision-making?

Few people dominate or intimidate, Satisficing - the "good enough" decision, Goal displacement - other issues may arise, Groupthink - agreeing for the sake of unanimity and thus avoid accurately assessing the decision situation

What does is mean to satisfice?

Because of constraints, managers don't make an exhaustive search for the best alternative. •Instead, managers seek alternatives until they find one that is satisfactory, not optimal. "good enough"

groupthink

Cohesiveness isn't always good. When it results in groupthink, group or team members are friendly and tight-knit but unable to think "outside the box." The results of groupthink can include failure to consider new information and a loss of new ideas.

9 Decision Making Biases

Confirmation Bias Overconfidence Bias Representativeness Bias Availability Bias Hindsight Bias Framing Bias Anchoring and Adjustment Bias Escalation of Commitment Bias Sunk-Cost Bias

What personality trait is characterized by self-awareness, social awareness, self-management, and relationship management?

Conscientious

Which one of the Big 5 personality dimensions is the best predictor of job performance?

Extroversion, Agreeableness, emotional stability, conscientiousness, openness to experience

What are the differences between the 3 kinds of change?

Least threatening: Adaptive change Reintroduction of a familiar practice Somewhat threatening: Innovative change Introduction of a practice that is new to the organization Very threatening: Radically innovative change Involves introducing a practice that is new to the industry

What are the three levels organizational culture?

Level 1: Observable artifacts physical manifestations such as manner of dress, awards, myths and stories about the company visible behavior exhibited by managers and employees Level 2: Values Espoused values • explicitly stated values and norms preferred by an organization Enacted values • represent the values and norms actually exhibited in the organization Level 3: Basic Assumptions represent the core values of the organization's culture those taken for granted and highly resistant to change

What are the benefits of external recruiting?

New ideas, outside of company, less bias

observable artifacts

Observable artifacts of organizational culture are physical manifestations, such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.

What is OD and how does it work?

Organization development (OD) Set of techniques for implementing planned change to make people and organizations more effective

What are some examples of forces for change that originate outside of the organization? Inside of the organization?

Outside: Age, education, skill level, gender, immigration Inside: unmet needs, job dissatisfaction, absenteeism and turnover, productivity, participation/suggestions

What's an example of extrinsic rewards?

Pay raises and benefits, praise, trophy

Why is the rational decision-making model not really how we make decisions?

Reality—Hindrances to Perfectly Rational Decision Making: •Complexity •Time and money constraints •Different cognitive capacity, values, skills, habits, and unconscious reflexes •Imperfect information •Information overload •Different priorities •Conflicting goals

What five job characteristics influence employee motivation?

Skill variety, task identity, task significance, autonomy, feedback

What term describes the number of people reporting directly to a given manager?

Span of control: the number of people reporting directly to a given manager; narrow or wide

decision tree

a graph of decisions and their possible consequences; it is used to create a plan to reach a goal

organization

a system of consciously coordinated activities or forces of two or more people

4 general decision making styles

analytical, conceptual, directive, behavioral

What is the representative bias?

involves estimating the likelihood of an event by comparing it to an existing prototype that already exists in our minds.

Disadvantages of Group Decision Making

social pressure, few people dominate, goal displacement, groupthink