MGMT 340 Final Exam Study Guide

What's the relationship of job satisfaction to other key variables (performance, retention)?

- Turnover or absenteeism - Job satisfaction leads to job involvement, organizational commitment, perceived organizational support, and engagement. - Satisfaction is more likely to cause performance.

What are the differences between homogenous (uniform) versus heterogeneous (diverse) teams? What are the benefits of diverse teams? What's the difference between surface vs. deep diversity?

At first, homogeneous groups are great but over time, performance starts to drop. Diverse groups may start slowly on performance as they are different but over time, they have different ideas and create the best performance. Surface-level: observable characteristics, such as ethnicity, gender or age. Deep-level: unobservable characteristics, such as attitudes, values, opinions and experience.

Meta-competency (*career calling*): capacity to acquire other, more specific competencies or skills; two for careers:

Identity awareness: Who am I? What do I want to do? Why do I want to do it? Adaptability: What's my capacity for change, both in terms of motivation and competence.

Goals of Planned Change:

Improving the ability of the organization to adapt to changes in its environment & changing the behavior of individuals and groups in the organization.

Selectivity in Recruiting

Initial: Do they meet basic requirements? Substantive: Who are the most qualified? Contingent: final check for "problems"

What are some key sources of stress? What's the difference between challenge and hindrance stressors? What can you do to reduce stress and its harmful effects?

Job Stress: 1. Challenge stressor (workload) >> Hindrance stressors (roadblocks) 2. Can occur through role ambiguity (uncertain about your responsibilities), conflict , or overload. Change Stress: Resources to manage Stress: mediating Organizational: - Better employee selection and placement - use of realistic goal setting - job redesign training, employee involvement - corporate wellness programs Programs: - time management (prioritize, allocate, take control) -eat healthy and exersice - relax, meditate, sleep - expand social support network

Extrinsic Motivation

Money, power, recognition People who pursue goals for extrinsic reasons are less likely to be happy because the goals are less meaningful to them

As a social science

OB is trying to improve organizational effectiveness.

Is bureaucracy bad?

Pros: Efficiency, organizations as tools. Cons: Stifles creativity and freedom, concentration of power @ the top (example: CEO pay)

Corporate Value Statement

RESPECT, INTEGRITY, COMMUNICATION, & EXCELLENCE

Factors influencing perception:

Situation: bf or gf is breaking up with you while driving in the freeway Target: Don't see the stopped cars ahead, as you are more focused on the texts Perceiver: emotions that you are feeling, leading to a crash most likely

Explain key concepts and principles in organization design including departmentalization, span of control, chain of command, centralization, unity of command, formalization (e.g., mechanistic vs. organic structure), boundary spanning

Specialization: division of labor or how activities are divided into specific jobs. Departmentalization: is how jobs are grouped together into coherent units to coordinate different tasks. Engineers might be organized into a fuselage or engine group. Chain of command: unbroken line of authority from the individual worker, to the one in charge. Span of control: # of people directly under a managers control. Centralization/decentralization: is the degree to which decision making is concentrated (upper levels of mgmt.) or distributed (lower-level employees). Formalization: standardization of jobs. Clear specialties: acct, finance, marketing, or sales. Small organizations tend to have less formalized, with individuals tasking multiples roles depending on what needs to get done. Boundary Spanning: extent to which organizational members or units are expected to cross organizational lines to accomplish goals

Roles

Specific expectations about how a particular cast member should perform in character.

Goal setting

Specific, highly challenging goals contribute to higher performance than low challenge or do-your best goals.

Mediator

Specifies how or why a particular relationship occurs. Intention of a behavior of quitting.

4 Steps to Effective socialization

Stories: Tales that anchor the present in the past to express, reinforce values "1st day of job, new managers or moved" Rituals: repetitive activities that express, reinforce values "CSUF graduation" Symbols: office layout, size, other physical markers signaling status, risk taking, etc. "Cubicles vs. offices" Language: Jargon, acronyms to unite members with a common vocabulary "Smart collaborative worker"

What's the difference between system 1 and 2 in decision making. What are some examples?

System 1: fast, intuitive, associative, & biased. *Geek-Geek: 2 min dating* Example: Drive to work or school, its fast and you know how long it takes System 2: slow, lazy, deliberate, & rational *E-Harmony- 60 min dating process* Example: once you get into the parking lot, it can be different.

What's the difference between task, process and interpersonal conflict? What's the optimal level of each for a team? What's the current perspective on team conflict? What's the nature of the relationship of task and interpersonal conflict?

Tasks: refers to goals and content of group. {Group may disagree in which topic to choose}. Optimal level: low to moderate Process: how the work gets done. {Disagreeing how often to meet up or who does what } Optimal level: low to moderate Relationship/interpersonal: happens when personalities class or people just don't get along. Optimal Level of each for a team is Low to moderate or minimize as best as possible.

Examples of representativeness bias & definition:

Tendency to assess similarity of outcomes, instances, and categories on prominent or even superficial features, and then to use these assessments of similarity as a basis for judgment. Looking back upon these experiences, there was not any definite correlation for whether I succeeded or failed with my races based off these habits I made. I have recently experienced representativeness bias. Last month, I tried to lose some weight; so I've decided to reduce the number of times I normally eat in a day. Instead of eating 5 times a day, I was eating 3 time a day. Despite all my effort, I didn't see any change; I even gained weight. I finally decided to talk to my brother about the problem and he told me that losing weight is all about the kind of food you eat and not about how many times a day you eat. Before every race I would eat certain foods like spaghetti because I ate spaghetti one time and raced well the next day. Because of this positive experience, I tended to eat foods like spaghetti before my races. Another representativeness bias I had while running was to rub a dollar coin with Abraham Lincoln on it for good luck. Although there was no proof that the dollar coin affected my race, I always felt that it was special and that perhaps it would make me lucky with a good racing result.

Agreeableness

The agreeableness dimension refers to an individual's propensity to defer to others. Highly agreeable people are cooperative, warm, and trusting. People who score low on agreeableness are cold, disagreeable, and antagonistic.

Conscientiousness (most important)

The conscientiousness dimension is a measure of reliability. A highly conscientious person is responsible, organized, dependable, and persistent. Those who score low on this dimension are easily distracted, disorganized, and unreliable.

Neuroticism - Emotional stability (important)

The emotional stability dimension—often labeled by its converse, neuroticism—taps a person's ability to withstand stress. People with positive emotional stability tend to be calm, self- confident, and secure. Those with high negative scores tend to be nervous, anxious, depressed, and insecure.

Extraversion

The extraversion dimension captures our comfort level with relationships. Extraverts tend to be gregarious, assertive, and sociable. Introverts tend to be reserved, timid, and quiet.

What's the difference between trait, behavioral and contingency theories of leadership? Be able to recognize different leadership styles including transformational, transactional, authentic, and servant leadership, among others.

Traits: finding the right person who can influence a group toward achievement of goals. Behavioral:"Great Person theory leaders are born." Contingency Theory: lead by situations. Charismatic leadership: places more emphasis on the way leaders communicate... express excitement and commitment to the vision and strategy. Transactional leadership: - Relationship between leader and follower as simply a transaction between a boss and a subordinate. - Least active and effective form >> laissez faire style with hands off leader - Contingent rewards: rewarding follower for performance Transformational: (similar to charisma) - Focus on follower needs. - Idealized influence: using "we", not "you" - Inspirational motivation: inspiring followers to compel and emotionally engage vision of the future. - Intellectual stimulation- provides followers a challenging task and career path - Individual consideration- involves making followers feel understood and cared for. Authentic leaders: considered ethical by followers. Must know & show what they believe and value - Produce trust in followers. Encourages risk taking, information sharing, Group effectiveness, & enhanced productivity. Servant leaders go beyond their own self-interest and focus on opportunities to help followers grow and develop. They don't use power to achieve ends; they emphasize persuasion. Characteristic behaviors include listening, empathizing, persuading, accepting stewardship, and actively developing followers' potential. Because servant leadership focuses on serving the needs of others, research has focused on its outcomes for the well-being of followers.

Negotiation

a process of potentially opportunistic interaction by which two or more parties, with some apparent conflict, seek to do better through jointly decided action than they could otherwise.

Organization

a structured social system consisting of groups and individuals working together, using a set of resources to achieve mutually agreed upon goals.

Network/ Virtual organization

central hub surrounded by networks of outside specialists who can be added or subtracted as needed. Decentralized, low stability, relies on informal structure. Pros: flexible design, allows for constant adaptation, & Minimizes infrastructure and fixed costs. Cons: Ambiguous roles can facilitate politics, held accountable with little control, & Relies on trust between parties.

Traits

characteristics that describe a person's behavior (Shy, aggressive, submissive, lazy, ambitious, loyal and timid)

Personality

differences in individual attitudes, preferences or behaviors that are stable over time and across situations. May be genetically determined or socially learned.

Conglomerate

diversification in organization (usually a large multinational) adds unrelated business or product to its structure.

Norms

expectations about behavior that are shared by everyone across an organization.

Social identity

is the portion of an individual's self-concept derived from perceived membership in a relevant social group.

Target point (aspiration price)

it's the best deal you're hoping to get. 1. If you're a buyer, it's the least you're hoping to pay. & If youre a seller, it's the most youre hoping to get.

bargaining zone

lies between the seller's resistance point and the buyer's resistance point.

Equity Theory

we want the ratio of our own outcomes (rewards) to our inputs (contributions) to equal the outcome/ input ratio of others we compare ourselves to. - Outcomes: rewards (salary/recognition) we get from our jobs - Inputs: our contributions of effort to their jobs.

BATNA

what you'll do if you can't reach agreement (impasse). Your backup option.

Self-determination theory

which proposes that people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation. When a company uses extrinsic rewards for motivation it takes away the employees own intrinsic desire to accomplish the goal because that's what the company wants.

Validity

Does a variable truly correspond to the construct? (do our tools accurately capture what we are trying to measure?). • Example: Watermelon >> CPA job firm? Doesn't make sense.

What did Milton Friedman propose as the most important purpose of business, and according to Beenen, what are the problems with this view? What alternative to this view did we discuss in class, and what are the benefits of this alternative?

"....to make as much as possible while conforming to the basic rules of the society, both those embodied in the law and those embodied in ethical custom....The criterion of performance is straightforward." Problem: Can't maximize profit if selling some things are illegal (such as crack) .....leading to unethical behavior. Purpose of Business (Balance Perspective) - shareholders: make profit and create wealth - customers: provide services & others a service or a good - society/workers: create meaningful jobs, not harm others, & be responsible with the environment.

Kelleher's philosophy

"Employees come first. If they're happy, satisfied, dedicated, and energetic, they'll take real good care of customers. When customers are happy, they come back. And that makes shareholders happy."

Characteristics of Organizational Culture:

- Innovation & risk taking - Attention to detail - Outcome orientation - People orientation - Aggressiveness - Stability

What's the onion model of culture we discussed in lecture? What are some examples of different layers of the onion in an organizational culture, such as Southwest Airlines?

- Organizational cultural has an ethical dimension. - At Southwest, LUV and FUN are dominant values. At Facebook as we saw, getting it done is more important than getting it perfect as a cultural value.

Paradoxical leadership:

- Self-centered + other- centered - Distance + closeness - Uniform treatment + individualization - Enforcing requirements + flexibility - Maintaining control + autonomy

Why do people resist organizational change? What are some key sources of resistance to change

- The prospect theory graph shows us that when something is take out (it's a loss)... which can be a threat of power. - Threats of expertise comes to play if your current skills aren't valued as you're put into a new job. - Example: used to get along with old manager and replaced with a new one that you don't like (Changes in Relationship) - Also cause a loss of certainty, change brings uncertainty. Resistance to uncertainty is more of an instinctive reaction to change.

3 basic psychological needs:

1. Autonomy: self-determination 2. Competence: agency, self-efficacy 3. Relatedness: meaningful social connections

Self-confidence strengthens adaptability

1. Believing in your capability to adapt to change 2. Motivates goal setting and other proactive, self-managing behaviors.

Four elements of a calling

1. Unique to the person 2. Involves preconditions such as talent (fits ones abilities), openness to discovering it, & love for the work involved 3. Provides great energy, enjoyment, and vitality. 4. Hard to discover, requires intense reflection, dialogue, trials and persistence.

What's the significance of Dunbar's number for organizational size?

According to Dunbar's neocortical ratio to humans, the number is about 150. This number is empirically supported by estimated sizes of historical groups including Neolithic farming villages, unit sizes for Roman armies, and company sizes for modern armies since the 16 century. Organizational Culture: a system of shared meaning held by organizational members that includes collective perception of beliefs, values and behavioral expectations. "It's the way things are done around here" Organizational Socialization: process by which new employees adapt, learn and become committed to the organizational culture. "Learning the ropes" or "Onboarding" Dominant Culture: expresses the core values that are shared by a majority of the organization's members. Subcultures: Mini-cultures within an organization, typically defined by department designations and geographical separation.

Meta-ethical principal for business

Act in such a way that @ the same time you may will your action to be universally acceptable"

What are the benefits (assets) and problems (liabilities) with a strong organizational culture? What can culture serve as a replacement for in organizations? Why is this important?

Assets: unifies the vision, selects members, & sustains focus Liabilities: barrier to change, diversity or to acquisitions and mergers "Getting it done, rather than do it right" Facebook

Layers of Culture

Assumptions: Taken-for granted beliefs, perceptions, thoughts, and feelings; ultimate source of values and action. Values: Strategies, goals, philosophies; espouses justifications. "FUN & LUV" Artifacts: Visible organizational structures and processes. "icons, uniforms, ceremonies, stories, language, props, etc"

How do you define a career? What's the difference between objective and subjective career success? Why does it matter? What factors are important to consider in having a successful and fulfilling career? What does it mean to view your career as a calling and why is that important?

Career: sequence of job experiences that are interconnected in a coherent manner. (viewed as Steady State or Linear approach) Explore > Trial > Establish > Master > Explore Steady State: lifetime commitment to one job (business) Linear: stay in same field: programmer >> software entrepreneur Contemporary view: change occupations, building to previous one. Transitory : Move from one unrelated position to another. Objective success: Power, Perstige, Promotion, & Material Gain Subjective Success: Competence and domain mastery, satisfactory, professional freedom and autonomy. Intrinsic motivation and flow (you are what you do)

Moderator

Changes the strength of a relationship between two variables. Relationship is stronger if it is high, weaker if it is low. {School} - "I should quit but I get a good check!"

What are the Big 6 basic emotions? Yes, they are culturally universal!

Disgust: urge to expel an object Anger: response to perceived unfairness (action oriented) Sadness: something isn't good Fear: response potential harm Surprise: unexpected event (unpleasant or pleasant) Happiness: something is good

Understanding valence, expectancy and instrumentality in expectancy theory

Expectancy= confidence an outcome is achievable (I have the abilities needed to do well in the job) Valence= desirability of outcome (I want the job!) Instrumentality= probability that effort will result in outcome (If I do well in interview, I get the job) *It is 0 if the mgr is going to hire his/her nephew* Correcting biases: Focus on clear goals Seek disconfirming information >> Rely on "outside" view (judgments of others with different information) Don't make meaning out of random events. Be aware of bias and adjust for it mentally. Increase your options Establish new routines to correct for bias (cognitive repairs) & Structure & quantify the range of solutions Smart Goals: Should be Specific, measurable, achievable, reasonable, timetable (clear).

What are the differences between functional, divisional, matrix and network designs? Under what conditions would you select one over the other? What are the tradeoffs involved between functional and divisional designs?

Functional: Pros: Economies of scale, & People specialize, perform tasks in which they have greatest expertise. Cons: Can lead to turf wars if functional lose sight of shared organizational goals & Can discourage innovation due to lack of coordination across functions. Divisional: divisions can be organized as cost or profit centers by product. Pros: Managers focus energies on one particular business & Promotes profit and loss accountability for division heads Cons: Loss of economies of scale due to duplicate functions & Coordination challenges across production lines.

Groupthink

High cohesive groups may conform so strongly to group pressures on a decision that they fail to think critically and reject the potentially correcting influences of outsiders.

Intrinsic Motivation

Promotion, accomplishment, satisfaction Provide more job satisfaction because it is fun and rewarding, feel they fit into their organizations better, and may perform better

Seven primary characteristics seem to capture the essence of an organization's culture:

Innovation and risk taking: concern the degree to which employees are encouraged to be innovative and take risks. Attention to detail: concerns the degree to which employees are expected to exhibit precision, analysis, and attention to detail. Outcome orientation: concerns the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. People orientation: concerns the degree to which management decisions take into consideration the effect of outcomes on people within the organization. Team orientation: concerns the degree to which work activities are organized around teams. Aggressiveness: concerns the degree to which people are aggressive and competitive rather than easygoing. Stability Concerns the degree to which organizational activities emphasize maintaining the status quo in contrast to growth

Reliability

Is a variable consistent over time? (do our tools consistently measure what we're trying to measure?). Example: Watermelon today and orange tomorrow. >> Not consistent.

According to Jeffrey Pfeffer, why are effective human resource management practices so important for organizations? What are some practices he proposes organizations adopt, and why are these practices effective?

Organizations that put their employees first are more successful. #1 Employement security: no layoff policy #2 Selectivity in recruiting #3 High pay based on performance #4 Participation, empowerment, and self managed teams #5 Training and Skill Development #6 Symbolic egalitarianism: reducing status difference, no reserve parking space #7 Share financial information Other airlines tried to copy aspects of Southwest's strategy. They were unsuccessful. New airlines that try to copy have repeatedly failed by getting @ least one piece wrong, or by applying principles inconsistently and half-heartedly. Competitors trying to copy Nordstrom's success by copying their compensation system can yield disgruntled employees and unionization.

Based on the reading assigned in class (Beenen & Pinto, 2009) what is the 4P model, and how can it help people detect and resist corruption in organizations?

Perceiving > taking initiative to raise your awareness that something may not be quite right Probe > taking a closer look once you realize something may not be quite right Persist > keeping it up Protest > instead of ignoring what she found, she took initiative to raise her voice against corruption and protested what was going on by writing a letter to Chairman.

What's the difference between power and politics? What are the five main types of power?

Power: Ability to get things done, capacity to influence behavior of others and get people to do things they wouldn't otherwise do. Politics: Processes and behaviors by which power is used and realized; use of power to get things done. 5 types of Power - Coercive, Reward, & Legitimate The base depends on the target's fear of negative results from failing to comply. On the physical level, coercive power rests on the application, or the threat of application, of bodily distress through the infliction of pain, the restriction of movement, or the withholding of basic physiological or safety needs. - The opposite of coercive power is reward power, with which people comply because it produces positive benefits; someone who can distribute rewards others view as valuable will have power over them. These rewards can be financial—such as controlling pay rates, raises, and bonuses - Legitimate power: It represents the formal authority to control and use organizational resources based on the person's structural position in the organization. - Expert power is influence wielded as a result of expertise, special skills, or knowledge. As jobs become more specialized, we become dependent on experts to achieve goals. It is generally acknowledged that physicians have expertise and hence expert power: Most of us follow our doctor's advice. - Referent power is based on identification with a person who has desirable resources or personal traits. If I like, respect, and admire you, you can exercise power over me because I want to please you.

What's the difference between proactive and reactive change? Who are the key players in regards to the design, implementation and reception of change in organizations?

Reactively: Blockbuster >> inability to keep up to change...resulting to their bankruptcy Proactively: Netflix (only dvds) >> as time changed, they also offered to stream . online. *Also changes behavior* Kotter's Eight-Step Change Process - Establish sense of urgency for why change is needed - Form a coalition with enough power to lead the change - Create a vision to direct the change and ways to achieve it - Communicate the vision throughout the organization - Empower others to act on the vision by removing barriers to change; encourage risk taking, creative problem solving - Plan for, create, and reward short-term "wins: that move the organization toward the new vision. - Consolidate improvements, reassess changes, and make necessary adjustments in the new programs. - Reinforce changes by showing relationship between new behaviors and organizational success.

Dependent Variable

Response affected by an independent variable, it changes while the independent variable doesn't. EX: Performance, learning, satisfaction, commitment, turnover. Job Satisfaction (IV) >> Job Performance (DV)

Explain key concepts in negotiation, including BATNA, target (aspiration) point, resistance (reservation) point, impasse, bargaining zone, and bargaining surplus. What are the differences between integrative and distributive strategies and tactics? What role does anchoring (as a bias) play in a negotiation? How would you apply these concepts in an actual negotiation?

The key difference between integrative and distributive bargaining is that integrative bargaining (issues) looks for the situation that can benefit both sides of the negotiation whereas distributive bargaining looks at only ones' benefit (situational). - Explained with a pie, distributive bargaining is where one side tries to get more of the pie than the other person and integrative bargaining is trying to expand the pie so that everyone gets more. - Distributive bargaining is best when the relationship with the other party is short-term and integrative bargaining is best when the relationship with the other party is long-term. - When interests are similar, integrative bargaining is best and when interests are opposed, then distributive bargaining is best. - Men are more selfish and women are less selfish. Therefore, men are better at negotiating on their behalf and worse at negotiating on someone else's behalf, while the opposite is true for women Ways to handle conflict: Contending (rights based), Collaborating, Compromise, Avoiding, & Accommodating. Illegitimate organization politics: 2 illegal harassment: Quid pro quo (this for that) & Hostile environment.

Openness to experience

The openness to experience dimension addresses range of interests and fascination with novelty. Extremely open people are creative, curious, and artistically sensitive. Those at the other end of the category are conventional and find comfort in the familiar

Social Facilitation

performance improve or decrements seeming from presence of others.

Independent Variable

presumed cause of a change in the dependent variables that can be individual, group, or organization system variables.

Explain the communication process. Explain differences in high vs. low context cultures in regards to communication? Explain pros/cons of boundary spanning vs. clique networks?

process by which a sender transmits information (message) that is interpreted by a receiver.... Through media channels (face to face, email, text messages, etc) - High Context Culture: Japan, China, Korea, Vietnam...people rely heavily on non- verbal and subtle situational cues in communicating with others, and a person's official status, place in society, and reputation carry considerable weight. What is not said maybe more significant that what is said. - Low context culture: North America and Europe, people rely on spoken and written words to convey meaning; body language and formal titles are secondary. Low context cultures value directness Clique: small network where everyone (or nearly everyone) is connected to everyone else. Boundary Spanner: bridging what is called a structural hole between the subnetwork and the larger network. They are linking two different networks. 1. It provides them an opportunity to make sure knowledge from the clique gets transferred or disseminated to the larger network. This would provide the broader organization valuable potential knowledge resources that could lead to innovation. Clique Advantages : High cohesion, Loyalty and support, Increased efficiency of decision making. 1. Earlier promotions & Higher Salaries Clique Disadvantages : Redundant communication & Biased communication. Groupthink & Dispensable members Boundary-spanning Network Advantages: Leverages diversity & Capitalizes on opportunity & Greater innovation Boundary-spanning Network Disadvantages: Power struggles, Greater conflict, both task and relationship

Joint Ventures

shared ownership of separate entity to access markets and/or technologies that may be otherwise difficult to access. - Each firm contributes its own expertise - Goal is to create capability that can't be attained by operating separately & gain access to new, foreign or unproven markets.

Resistance point (reservation price)

should be determined by your BATNA 1. Specifies, for THIS negotiation, what deal is so bad that you'll walk away

Strategic Alliances

similar to JV, but no shared ownership. Organizations continue to operate distinctly as separate entities.

Social Loafing (Free-rider)

tendency for group members to exert less individual effort on cooperative tasks as group size increases. 1. Ways to overcome social loafing: Make performer identifiable, Make work tasks more important and interesting.

Correlation coefficient

the ration of the amount of information that two variables measure jointly, compared with the average amount of information measured individually by each of the two variables. Range is -1.00 to 1.00.

What did we learn about resistance to change from the Tesla example discussed in class? (may or may not cover in class). What are some effective tactics for reducing resistance to organizational change? Think about specific examples we discussed in class.

• Issue w/ Tesla: encounters states where dealer franchise lobbies and associations have enormous powers. Innovative culture: A culture that supports novel ideas to improve products, processes or services. Has Learning and Structural organizations. Learning Organization: An organization that has developed the continuous capacity to adapt and change. Single Loop >> fix problems based on past routines & current policies (usually insufficient) Double Loop >> reflect on causes, create solutions that modify past routines & current policies