MGT 3404 Exam 2
Legal Structures for Entrepreneurs: Sole Proprietorship
A sole proprietor makes all the business decisions and has total control over the business. The key drawback is that the owner has UNLIMITED liability. If someone sues, the owner's personal and business assets are put at risk.
Entrepreneur Characteristics: Proactivity
Proactivity is a forward-looking perspective in which an individual is looking for opportunities to provide value beyond what others expect. This characteristic is desired by all organizations, but it is critical for entrepreneurs. First Mover
Organizational Behavior: Attitude *Professor Dave's Example*
All three components are often manifested at any given time. For example, if you call a corporation and get one of those telephone-tree menus ("For customer service, press 1 . . .") that never seem to connect you to a human being, you might be so irritated that you would say: 1. "I hate being given the runaround." [affective component—your feelings] 2. "That company doesn't know how to take care of customers." [cognitive component—your perceptions] 3. "I'll never call them again." [behavioral component—your intentions]
Components of a Business Plan: Business Description
A business description defines the business: mission, vision, product or service, and the reason for starting it.
Components of a Business Plan: Executive Summary
What is the essence? Mention my warning about the written plan not compelling or containing typos, grammar issues etc.
The Big Five Personality Dimensions: Emotional Stability
-Relaxed -Secure -Unworried
Core Self-Evaluation: Locus of Control
*-Locus of control •Indicates how much people believe they control their fate through their own efforts. •Internal locus of control: You believe you control your destiny. •External locus of control: You believe external forces control you. -What can managers do? •Employees with internal locus of control should probably be placed in jobs requiring high initiative and lower compliance. •Employees with external locus of control might do better in highly structured jobs requiring greater compliance. •Internals may prefer and respond more productively to incentives such as merit pay or sales commissions. *Research shows internals and externals have important workplace differences. Internals exhibit less anxiety, greater work motivation, and stronger expectations that effort leads to performance. They also obtain higher salaries. Most importantly, one's internal locus of control can be improved if provided more job autonomy*
Organizational Behavior: Attitude *Three Components*
-Affective: "I feel." •Feelings or emotions one has about a situation. -Cognitive: "I believe." •Beliefs and knowledge one has about a situation. -Behavioral: "I intend." •How one intends or expects to behave toward a situation.
CHARACTERISTICS of ENTREPRENEURS and HOW THEY DIFFER from MANAGERS
1. Risk Propensity 2. Generalized Self-Efficacy 3. Need to Achieve 4. Need for Autonomy 5. Big Five Personality 6. Tolerance for Ambiguity 7. Proactivity 8. Internal Locus of Control 9. Innovative/Creative
Traits of Emotional Intelligence
1. Self-Awareness 2. Self-Management 3. Social Awareness 4. Relationship Management *Daniel Goleman, a psychologist who popularized the trait of EI, concluded that EI is composed of four key components*
Legal Structures for Entrepreneurs: Four Possible Options
1. Sole Proprietorship 2. Partnership 3. Corporation 4. Limited Liability Company (LLC)
WHY ENTREPRENEURSHIP MATTERS across the GLOBE
1. Start-ups generate wealth and economic development. 2. Entrepreneurship drives innovation. 3. Entrepreneurship drives job creation. 4. Entrepreneurship improves the world's standard of living.
Distortions in Perception: Five Perceptual Distortions
1. Stereotyping 2. Implicit Bias 3. Halo Effect 4. Recency Effect 5. Casual Attribution
Learning Module 1: Entrepreneurship
1.1 Define entrepreneurship and discuss its importance across the world. 1.2 Identify how entrepreneurs get started.
Three Components of Entrepreneurship
1.Recognizing opportunities for new venture creation or new value creation 2.Exploiting these opportunities 3.Using the opportunities to realize some desired value
Core Self-Evaluation
1.Self-efficacy 2.Self-esteem 3.Locus of control 4.Emotional stability *Represents a broad personality trait comprising four positive individual traits. Managers need to be aware of these personality traits so as to understand workplace behavior*
Components of a Business Plan: Financial Projections
Financial projections provide a projected estimate for revenue and cash flow—current and future financial needs.
Four Step Perceptual Process: Selective Attention
"Did I notice something?"
Work-Related Attitudes and Behaviors *Professor Dave's Notes*
"Keep the employees happy," we often hear. It's true that attitudes are important, the reason being that attitudes affect behavior. But is keeping employees happy all that managers need to know to get results? We discuss motivation for performance in the next chapter. Here, let us consider what managers need to know about key work-related attitudes and behaviors. Three types of attitudes managers are particularly interested in are (1) employee engagement, (2) job satisfaction, and (3) organizational commitment.
Four Step Perceptual Process: Storing in Memory
"Remember it as an event, concept, person, or all three?"
Four Step Perceptual Process: Retrieving From Memory to Make Judgements/Decisions
"What do I recall about that?"
Four Step Perceptual Process: Interpretation/Evaluation
"What was it I noticed and what does it mean?"
Small Business Facts
-36% of small businesses are owned by women. -80% of entrepreneurs use their own money to start their businesses. -19% of small business owners work at least 60+ hours per week. -99.9% of all firms in the United States are small businesses. -30% of all new small businesses are started by immigrants. *Survival rates can be challenging: 66% survive 2 years; 50% 5 years and 33% 10 years..........*
Organizational Behavior: Attitude
-A learned predisposition toward a given object. -Directly influences our behavior.
Emotional Intelligence (EI)
-Ability to monitor your and others' feelings and to use this information to guide your thinking and actions. -First introduced in 1909, some claim it to be the "secret elixir" to happiness and higher performance. *Emotional intelligence (EI or EQ) has been defined as "the ability to carry out accurate reasoning about emotions and the ability to use emotions and emotional knowledge to enhance thought." Recent research underscores the importance of developing higher EI, but it does not confirm its lofty expectations. EI was moderately associated with these above. Interestingly, EI was not found to be a driver of supervisory ratings of performance*
The Big Five Personality Dimensions: Extroversion
-Outgoing -Talkative -Sociable -Assertive
Organizational Behavior (OB)
-Dedicated to better understanding and managing people at work. -Tries to help managers explain and predict work behavior, so they can better lead and motivate their employees to perform productively.
The Big Five Personality Dimensions: Conscientiousness
-Dependable -Responsible -Achievement-oriented -Persistent *Note that someone who scores high on Conscientiousness is very likely to also be a proactive personality*
Entrepreneurship and Standard of Living
-Entrepreneurial firms create jobs, which in turn benefits communities, states, and countries. Half of the private-sector employees are in small businesses, and small businesses continue to add new jobs. -Society benefits when employees have the money (their pay) to spend in those communities.
Core Self-Evaluation: Emotional Stability
-Emotional stability •The extent to which people feel secure and unworried and to which they are likely to experience negative emotions under pressure. •Low levels are prone to anxiety and tend to view the world negatively. •High levels tend to show better job performance. *People with low levels of emotional stability are prone to anxiety and tend to view the world negatively, whereas people with high levels tend to show better job performance*
Components of a Business Plan
-Executive summary -Business description -Market analysis -Organization and management -Sales strategies -Funding requirements -Financial projections
The Big Five Personality Dimensions: Openness to Experience
-Intellectual -Imaginative -Curious -Broad-minded
Entrepreneur vs Self-Employed: Entrepreneur
-Hire people to work with them. Employees work together as a team to accomplish the entrepreneur's vision. -Global thinkers who take and manage risk -Delegate responsibilities -Broader set of legal requirements and insurance and taxconsiderations -Broader aspirations: influencing industries, markets, and greater numbers of people.
Sources of Job-Related Stress
-Individual differences: A "Type A" personality. -Individual task demands: The job itself. -Individual role demands: Role overload, role conflict, and role ambiguity. -Work-Family conflict: Created when pressure or demands from work and family are incompatible. -Group demands: Stress created by coworkers and managers. -Organizational demands: Created by environment and organizational culture.
Perception: Four Step Perceptual Process
-Process of interpreting and understanding one's environment. 1. Selective Attention 2. Interpretation/Evaluation 3. Storing in Memory 4. Retrieving From Memory to Make Judgements/Decisions
Core Self-Evaluation: Self Efficacy
-Self-efficacy •Belief in one's ability to do a task. -Generalized self-efficacy •Represents individuals' perceptions of their ability to perform across a variety of different situations. •Career readiness competency desired by employers. -What can managers do? •Assign jobs accordingly: *Complex, challenging, and autonomous jobs tend to enhance people's perceptions of their self-efficacy. Boring, tedious jobs generally do the opposite* •Develop employees' self-efficacy and generalized self-efficacy by giving constructive pointers and positive feedback: *Employees with low self-efficacy need lots of constructive pointers and positive feedback. Goal difficulty needs to match individual's perceived self-efficacy, but goals can be made more challenging as performance improves. Small successes need to be rewarded. Employees' expectations can be improved through guided experiences, mentoring, and role modeling* •Monitor employees to avoid learned helplessness by offering guided experiences, mentoring, and role modeling: *Learned Helpfulness is the debilitating lack of faith in your ability to control your environment*
Core Self-Evaluation: Self Esteem
-Self-esteem •The extent to which people like or dislike themselves. •High self-esteem: more apt to handle failure better, emphasize the positive and to take more risks. •Low self-esteem: tend to focus more on one's weaknesses, may be more dependent on others. -What can managers do? •Reinforce employees' positive attributes and skills. •Provide positive feedback whenever possible. •Break larger projects into smaller tasks and projects. •Express confidence in employees' abilities to complete their tasks. •Provide coaching when employees are struggling to complete task. -Some Ways That Managers Can Boost Employee Self-Esteem: • Reinforce employees' positive attributes and skills. • Provide positive feedback whenever possible. • Break larger projects into smaller tasks and projects. • Express confidence in employees' abilities to complete their tasks. • Provide coaching whenever employees are seen to be struggling to complete tasks.
Barriers to Diversity
-Stereotypes and prejudices. -Fear of discrimination against majority group members. -Resistance to diversity program priorities. -A negative diversity climate. -Lack of support for family demands. -A hostile work environment for diverse employees.
The Big Five Personality Dimensions: Agreeableness
-Trusting -Good-natured -Cooperative -Soft-hearted
Business Plans Answer Critical Questions:
-What business are we in? -What is our vision and where are we going? -What will we do to achieve our goals? *Harvard Business Review noted that "A plan helps detail how the opportunity is to be seized, what success looks like, and what resources are required, and it can be key to the investment decisions of angel investors, banks, and venture capitalists." With the right plan, a company will bring in the best and the brightest.*
Entrepreneur vs Self-Employed: Self_Employed
-Work for themselves and might hire others to work for them. -Tend to stay in one area and prefer to avoid taking risks. -Do much of the work themselves. Often they are experts, as well as wanting to save costs -Can incorporate or file as sole proprietors -Narrower focus: operating a business in a specific area and market.
Work-Related Attitudes and Behaviors
1. Employee Engagement 2. Job Satisfaction 3. Organizational Commitment
The Big Five Personality Dimensions
1. Extroversion 2. Agreeableness 3. Emotional stability 4. Conscientiousness 5. Openness to experience *Dimensions in the big five have been associated with performance, leadership behavior, turnover, creativity, and workplace safety*
Sources For Ideas for a Start-Up Business
1. Identify your passions, skills, and talents: Past experience and in-depth knowledge about an industry are great sources of new business ideas. 2. Identify a problem or frustration: A product or service that addresses problems or challenges can be a viable business idea. 3. Identify an opportunity or an unmet need: Good examples are Jeff Bezos's decision to start Amazon when he realized that the surge in Internet usage provided an opportunity for online retailing and when Uber's founders Garret Camp and Travis Kalanick searched for a cab during a trip to Paris, and realized the need to create an app that would hail a vehicle. 4. Study customer complaints: Customer complaints are a warning sign that something is wrong with a product or service. When this happens, a business is presented with an opportunity to improve the offering.
Financing Options for Start-Ups
1. Personal Funding 2. Family/Friends 3. Bank Loans 4. The Small Business Association 5. Venture Capital 6. Angel Investors 7. Crowd Investing
Chapter 11: Managing Individual Differences/Behavior *Supervising People as People*
11.1 Describe the importance of personality and individual traits in the hiring process. 11.2 Explain the effects of values and attitudes on employee behavior. 11.3 Describe the way perception can cloud judgement. 11.4 Explain how managers can deal with employee attitudes. 11.5 Identify trends in workplace diversity that managers should be aware of. 11.6 Discuss the sources of workplace stress and ways to reduce it.
Legal Structures for Entrepreneurs: Corporation *General Summary*
A corporation is an entity that is separate from its owners. It has its own legal rights, independent of its owners—it can sue, be sued, own and sell property, and sell the rights of ownership in the form of stocks.
Financing Options for Start-Ups: Personal Funding
A large percentage of entrepreneurs use their own savings or credit cards to initially fund a business. Banks like to see entrepreneurs invest in their own firms before they ask for a loan.
Legal Structures for Entrepreneurs: Partnership
A partnership is when two or more person join to run the business. Each person contributes money, labor, and skill, and shares in the profits and losses of the business. Two types of partnership: 1. General partnership, all profits and losses are shared equally. 2. Limited partnership, one partner controls the operation while the other partner(s) simply contribute to and receive only part of the profit.
Organizational Behavior: Values
Abstract ideals that guide one's thinking and behavior across all situations.
Four Important Workplace Behaviors: Organizational Citizenship Behaviors
According to one description, include "such gestures as constructive statements about the department, expressions of personal interest in the work of others, suggestions for improvement, training new people, respect for the spirit as well as the letter of housekeeping rules, care for organizational property, and punctuality and attendance well beyond standard or enforceable levels."
Work-Related Attitudes and Behaviors: Employee Engagement
An individual's involvement, satisfaction, and enthusiasm for work. -A "mental state in which a person performing a work activity is full immersed in the activity, feeling full of energy and enthusiasm for the work." -Employees more likely to become engaged when a culture promotes employee development, recognition, and trust. -Managers can increase employee engagement with personal resource building, job resource building, leadership training, and health promotion interventions.
Financing Options for Start-Ups: Angel Investors
Angel investors are wealthy individuals or retired executives who invest in small firms. Called high net worth individuals. $25,000-$100,000. Often behave as Angel Groups - New Dominion Angels is one I know that operates in Richmond and NOVA. Mike McKinley and Frank Ball founded this group.
Financing Options for Start-Ups: Bank Loans
Bank loans were the most frequently used source of financing in 2017, according to the NBSA, used by 64 percent of surveyed entrepreneurs. Banks generally want to see a good business plan and personal guarantees before they will lend. Entrepreneurs frequently use their homes as collateral for bank loans.
Components of a Business Plan: Funding Requirements
Because costs are not known precisely before starting a business, funding requirements will summarize a range for costs. Timelines link funding to expansion activities, and investors should be provided with realistic expectations.
Legal Structures for Entrepreneurs: C Corporation
C corporations owned by shareholders and are taxed as separate entities. The profit of a corporation is taxed to the corporation when earned, and is taxed to the shareholders when distributed as dividends. BENEFITS: legal entity and thus any liability exist separately from any individual owner of the business. Double taxation
Five Perceptual Distortions: Casual Attributions
Causal attributions: Inferring causes for observed behavior. -Fundamental attribution bias •People attribute another person's behavior to his or her personal characteristics rather than to situational factors. •Example: A study of manufacturing employees found that top managers attributed the cause of industrial back pain to individuals, whereas workers attributed it to the environment. -Self-serving bias •People tend to take more personal responsibility for success than for failure. •Example: Europeans blamed Wall Street for the 2010 economic collapse in Greece. However, a Wall Street Journal article points out that a close look at Greece's finances "over the nearly 10 years since it adopted the euro shows not only that Greece was the principal author of its debt problems, but also that fellow European governments repeatedly turned a blind eye to its flouting of rules."
Financing Options for Start-Ups: Crowd Investing
Crowd investing allows a group of people—the crowd—to invest in an entrepreneur or business online.
Components of a Business Plan: Organization/Management
Describe the management team and talents of key team members and their previous successes, and discuss the type of organizational culture and structure that best positions the business for success.
Entrepreneur vs. Intrapreneur
E- Creates and runs business(es), while taking on financial risk to do so. I-Works inside an existing organization. An intrapreneur sees an opportunity for a product or service and mobilizes the organization's resources to realize the idea.
Entrepreneur Characteristics: Need to Achieve
Entrepreneurs are motivated to pursue moderately difficult goals through their own efforts in order to realize their ideas and, they hope, financial rewards. Managers, by contrast, are more motivated by promotions and organizational rewards of power and perks.
Entrepreneur Characteristics: Need for Autonomy
Entrepreneurs prefer to work for themselves, or with those they respect and admire, and they have a strong preference for shaping their own destiny. They are willing to forgo the security and comfort of working for an organization that provides a stable salary and benefits.
Four Important Workplace Behaviors
Evaluating the performance of employees should include: 1.Performance and productivity. 2.Absenteeism and turnover. 3.Organizational citizenship behaviors. 4.Counterproductive work behaviors. -Why do managers need to learn how to manage individual differences? So that you can influence employees to do their best work.
Four Important Workplace Behaviors: Performance/Productivity
Every job has certain expectations, some easier to define than others. How many contacts should a telemarketing sales rep make in a day? How many sales should he or she close?
Entrepreneur Characteristics: Tolerance for Ambiguity
Every manager needs to be able to make decisions based on unclear or incomplete information. However, entrepreneurs must have more tolerance for ambiguity because they are trying to do things that haven't been done before.
Work-Related Attitudes and Behaviors: Job Satisfaction
Extent to which you feel positively or negatively about various aspects of your work. -Depends on how you feel about several components, such as work, pay, promotions, coworkers, and supervision. -Key correlates: •Stronger motivation, job involvement, and life satisfaction. •Less absenteeism, tardiness, turnover, and stress. *A recent study by SHRM indicates that 89% of U.S. employees are satisfied with their jobs and are 'moderately engaged.'*
Financing Options for Start-Ups: Family/Friends
Family (parents and relatives) and friends are another common source of funding. These loans should be repaid as the business grows.
Five Perceptual Distortions: Halo Effect
Halo effect: Forming an impression of an individual based on a single trait. •"One trait tells me all I need to know." -Professor Dave's Notes: *As if we needed additional proof that life is unfair, it has been shown that attractive people generally are treated better than unattractive people. Attractive members of Congress get more TV coverage, and attractive political candidates win more often. Attractive students have higher expectations by teachers in terms of academic achievement. Attractive employees are generally paid higher salaries than unattractive ones are, and attractive CEOs are paid more than less appealing CEOs. (Male CEOs also tend to be taller—6 feet compared to an average man's 5-feet-10.5 inches, in one Swedish study.) Clearly, however, if a manager fails to look at all of an individual's traits, he or she has no right to complain if that employee doesn't work out*
Formal Aspects; *Organizational Behavior*
If you look at a company's annual report or at a brochure from its corporate communications department, you are apt to be given a picture of its formal aspects: goals, policies, hierarchy, structure.
Five Perceptual Distortions: Implicit Bias
Implicit bias: Attitudes or beliefs that affect our understanding, actions, and decisions in an unconscious manner. •"I really don't think I'm biased, but I just have feelings about some people." •Implicit bias affects employment-related decisions: a recent study showed that both racism and ageism has impacted hiring decisions. -How to take steps forward? •Requiring intergroup contact, positive feedback, clear norms of behavior.
Entrepreneur Characteristics: Innovative/Creative
Innovation leads to the creation of something new that makes money, while creativity produces new ideas about products, services, processes, and procedures. Entrepreneurs are generally more innovative and creative than managers.
Organizational Behavior: Attitude *Why It's Important*
Job satisfaction is moderately associated with performance and strongly related to turnover. Unhappy workers are less likely to demonstrate high performance, while happy workers are less likely to quit. This is why it is important for managers to track employees' attitudes and to understand their causes.
Legal Structures for Entrepreneurs: Limited Liability Company (LLC)
Limited Liability Company (LLC) is a hybrid structure that combines elements of a sole proprietor, partnership, and corporation. BENEFITS: LLCs include fewer recordkeeping and reporting requirements than for corporations.
Entrepreneur Characteristics: Risk Propensity
Managers must believe in themselves and be willing to make decisions; however, this applies more to entrepreneurs. Because they are willing to take risks, even to risk financial failure, entrepreneurs need the confidence to act decisively.
Four Important Workplace Behaviors: Absenteeism/Turnover
Of course, some absences—illness, death in the family, or jury duty, for example—are legitimate. However, a lot of no-show behavior is related to job dissatisfaction, and absenteeism may be a precursor to turnover. For a high-turnover, low-paying job (under $30,000 a year), the Center for American Progress estimates that the costs to replace an employee is 16% of salary; for a mid-range position ($30,000-$50,000 a year), it is 20%; and for a highly educated executive position (such as $100,000 a year), it is 213%.
Work-Related Attitudes and Behaviors: 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. -If managers are able to increase job satisfaction, employees may show higher levels of commitment, which in turn can elicit higher performance and lower employee turnover.
Diversity
Represents all the ways people are unlike and alike—the differences and similarities in age, gender, race, religion, ethnicity, sexual orientation, capabilities, and socioeconomic background.
Legal Structures for Entrepreneurs: S Corporation
S corporations elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed at their individual income tax rates. BENEFITS: owners have limited liability and don't incur corporate tax.
Components of a Business Plan: Sales Strategies
Sales strategies review ideas for marketing or promoting the product or service, pricing strategy, strategies for using the web and social media, and other activities for building brand awareness.
Self-Fulfilling Prophecy
Self-fulfilling prophecy •Is a phenomenon by which people's expectations of themselves or others lead them to behave in ways that make those expectations come true. •Also known as Pygmalion effect. •Managerial expectations powerfully influence employee behavior and performance. -What can managers do? •Create positive performance expectations. •Recognize that everyone has the potential to increase performance. •Introduce new employees as if they have outstanding potential. •Encourage employees to visualize successful execution of tasks. •Help employees master key skills.
Barriers to Diversity: Professor Dave's Notes
Some barriers are erected by diverse people themselves. In the main, however, most barriers are put in their paths by organizations. When we speak of "the organization's barriers," we are, of course, referring to the people in the organization—especially those who may have been there for a while—who are resistant to making it more diverse.Resistance to change in general is an attitude that all managers come up against from time to time, and resistance to diversity is simply one variation. Ethnocentrism - defined earlier. It's prejudice when belief is hiring diversity means sacrificing competence and quality. Diversity is a subcomponent of an organization's overall climate. It is employee's aggregate perceptions about the firm's diversity related formal structure characteristics and informal value. US only major industrialized country without mandatory paid leave for parents. Hostile - Gretchen Carlson former Fax Anchor claimed she was fired for not sleeping with CEO Roger Ailes - later fired for sexual harassment.
Sources of Job-Related Stress: Individual Differences
Some people are born worriers-those with a gene mutation Yale researchers identify with people who chronically obsess over negative thoughts. Others are impatient, hurried, deadline-ridden, competitive types with the personality characteristic Type A behavior pattern, meaning they are involved in a chronic, determined struggle to accomplish more in less time.
Five Perceptual Distortions: Stereotyping
Stereotyping: Tendency to attribute to an individual the characteristics one believes are typical of the group to which that individual belongs. -Sex-role stereotypes •Research revealed that men were preferred for male-dominated jobs, women have harder time being perceived as effective leaders. -Age stereotypes •Inaccurately believing that older workers are less motivated, resistant to change, less trusting, and less healthy (research refuted all of these). -Race stereotypes •Studies demonstrated that people of color experienced more perceived discrimination and less psychological support than whites.
Four Important Workplace Behaviors: Counterproductive Work Behaviors
Such behaviors may include absenteeism and tardiness, drug and alcohol abuse, and disciplinary problems but also extend beyond them to more serious acts such as accidents, sabotage, sexual harassment, violence, theft, and white-collar crime.Some 96% of workers say they have experienced uncivil behavior, and 98% have witnessed it.
Traits of Emotional Intelligence: Self-Awareness
THE MOST ESSENTIAL TRAIT. This is the ability to read your own emotions and gauge your moods accurately, so you know how you're affecting others.
Entrepreneur Characteristics: Big Five Personality
The Big Five are characteristics that psychologists have concluded define the core of our personality: extroversion,agreeableness, conscientiousness, emotional stability, and openness to experience. Entrepreneurs tend to be more extroverted, conscientious, emotionally stable, and open to experiences than managers. They also are less agreeable than managers.
Financing Options for Start-Ups: Small Business Association (SBA)
The Small Business Administration (Association) (SBA) is another good source, providing loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. *US Government Agency*
Entrepreneur Characteristics: Internal Locus of Control
The belief that you control your own destiny and that external forces will have little influence. Although both entrepreneurs and managers like to think they have personal control over their lives, entrepreneurs have higher levels of internal locus than managers.
Informal Aspects; *Organizational Behavior*
The informal aspects are the focus of the interdisciplinary field known as organizational behavior (OB). *What about the informal aspects—values, attitudes, personalities, perceptions, conflicts, culture? Could you exert effective leadership if the formal aspects were all you knew about the company? Clearly, you need to know about these hidden, "messy" characteristics as well*
Self-Fulfilling Prophecy: Professor Dave's Notes
The lesson for you as a manager is that when you expect employees to perform badly, they probably will, and when you expect them to perform well, they probably will. Research has shown that by raising managers' expectations for individuals performing a wide variety of tasks, higher levels of achievement and productivity can be achieved. G B Shaw play Pygmalion - speech coach bets he can get a low-class female to change her accent and demeanor so she can pass herself off as a Duchess...... and she does it.
Components of a Business Plan: Market Analysis
The market analysis reviews information about the market, competitors, the fit in the market, the uniqueness of the product or service, and the expected level of market share
Five Perceptual Distortions: Recency Effect
The recency effect: Tendency to remember recent information better than earlier information. -Examples: •Employee has recently made a mistake, and it ends up being the only topic of a performance review. •Students' course evaluations of professors may be affected by course activity closer to the time of formal appraisal. •Some stock market investors leap into holdings that are doing well and cash out investments that are doing poorly, ignoring trends. -Professor Dave's Notes: *Why does the recency effect occur? Like other habits, it makes things easier, says one financial planner. "Because it's easier, we're inclined to use our recent experience as the baseline for what will happen in the future." What decision(s) would you admit to making in which you were influenced by the recency effect?*
Personality
The stable psychological traits and behavioral attributes that give a person his or her identity.
Understanding Stress and Individual Behavior: Stress
The tension people feel when they are facing or enduring extraordinary demands, constraints, or opportunities and are uncertain about their ability to handle them effectively. *In a recent Harvard poll, 44% of working U.S. adults reported their job is stressful enough to affect their health, and most of them think those effects are negative. Other data confirms that 1 in 3 U.S. workers experience stress related to the job. Almost 1 million people are absent from the workplace each day due to stress-related factors*
Traits of Emotional Intelligence: Social-Awareness
This includes empathy, allowing you to show others that you care, and organizational intuition, so you keenly understand how your emotions and actions affect others.
Traits of Emotional Intelligence: Relationship Management
This is the ability to communicate clearly and convincingly, disarm conflicts, and build strong personal bonds.
Traits of Emotional Intelligence: Self-Management
This is the ability to control your emotions and act with honesty and integrity in reliable and adaptable ways. You can leave occasional bad moods outside the office.
The Diversity Wheel
To help distinguish the important ways in which people differ, diversity experts Lee Gardenswartz and Anita Rowe have identified a "diversity wheel" consisting of four layers of diversity. 1.Personality (you) are in the center. 2.Internal dimensions are those human differences that exert a powerful, sustained effect throughout every stage of our lives: gender, age, ethnicity, race, sexual orientation, physical abilities. 2. External dimensions consist of the personal characteristics that people acquire, discard, or modify throughout their lives: educational background, marital status, parental status, religion, income, geographic location, work experience, recreational habits, appearance, personal habits. 3. Organizational dimensions include management status, union affiliation, work location, seniority, work content, and division or department.
Financing Options for Start-Ups: Venture Capital
Venture capitalists (VCs) exchange funds for an ownership share in the company. They generally look for high-growth potential in industries like information technology, biotechnology, and communication and desire a high return on their investment. VCs essentially invest money for a share in controlling the company. Entrepreneurs needing a larger investment should approach VCs. The process begins with a business plan and a formal presentation. Lakshmi Balachandra worked at two VC firms and observed a number of these entrepreneurial presentations. She found that entrepreneurs were more successful when they laughed during the presentation, if they had friends or acquaintances in common with the VC's, and exhibited a calm as opposed to a passionate demeanor during the presentation.
Entrepreneur Characteristics: Generalized Self-Efficacy
While managers and entrepreneurs both perform better when they have high self-efficacy, it is particularly important for entrepreneurs. They need confidence to achieve goals in a broader set of activities such as attracting customers, handling technical problems, obtaining financial funding, and adhering to governmental rules and regulations.
