MGT 551 Exam 3
resistance to change paradox
- Organizations invite change when change offers competitive advantage - Organizations resist change when change threatens the organization's structure and control systems - Organizations must balance stability (permanence) with the need to react to external shifts (change) - Resistance can warn of the need to reexamine the need for change
Evaluation of training (kirkpatrick)
1. learners reaction to training 2. what was learned during training 3. has behavior changed as a result of training 4. what was the impact of training on business results
prior hypothesis bias
Allowing strong prior beliefs about a relationship between variables to influence decisions based on these beliefs even when evidence shows they are wrong
organizational mechanisms
Are examples of organization culture that employees see in more experienced employees' behaviors Corporate pamphlets and formal training sessions
prospect theory
Argues that when people make decisions under a condition of risk they are more motivated to avoid losses than they are to seek gains
escalating commitment
Committing considerable resources to a project and then committing more even if evidence shows the project is failing
reactor
Decisions are a last option process that occurs due to some other event
entrepreneurs
Individuals who notice opportunities and take the responsibility for mobilizing the resources necessary to produce new and improved goods and services
organizational change
Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness
agency theory
Occurs when one person or entity (agent) is able to make decisions on behalf of, or that impact, another person or entity (principal). The dilemma exists because sometimes the agent is motivated to act in his own best interests rather than those of the principal
representativeness
The decision maker incorrectly generalizes a decision from a small sample or a single episode
transition management
The process of systematically planning, organizing, and implementing change
organizational socialization
The process through which employees learn about the firm's culture and pass their knowledge and understanding on to others
illusion of control
The tendency to overestimate one's own ability to control activities and events
change agent/change leader
a person responsible for managing a change effort
group decision making (collaborative decision making)
a situation where individuals collectively make a choice from the alternatives before them
problem solving
a special form of non programmed decision making in which the issue is unique, it requires developing and evaluating alternatives
decision rule
a statement that tells a decision maker which alternative to choose based on the characteristics of the decision situation
learning organization
an organization that facilitates the learning of all its members and continually transforms itself continual learning and change are part of the culture
administrative model
assumes decision makers operate with "bounded rationality" rather than with "perfect rationality"
condition of risk
certainty of an outcome is unknown but there is only enough information to estimate probabilities of various outcomes
a degree of resistance is normal because
change is disruptive change is stressful change is unknown change is unproven a degree of skepticism can be positive if there are weaknesses in the proposed change unchecked skepticism will impede the goals and objectives of the proposed change
defender
decisions are made only in defense
reasoned judgment
decisions that take time and effort to make and result from careful information gathering, generation of alternatives, and evaluation of alternatives
intrapreneurship
entrepreneurial activity that takes place within the context of a large corporation
intuition
feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions
benefits of participation
incorporates more diverse knowledge, experience, perspectives, and skill sets produces more and better alternatives helps in judgmental problem solving situations creates a greater interest in the task
intrapreneurs
individuals (managers, scientists, researchers) who work inside an existing organization and notice an opportunity for product improvements and are responsible for managing the product development process
ambiguous information
information whose meaning is not clear allowing it to be interpreted in multiple or conflicting ways
satisficing
is examining alternatives only until a solution that meets minimal requirements is found
sub-optimizing
knowingly accepting less than the best possible outcome to avoid unintended negative effects on other aspects of the organization
hybrid approach
managers use a combo of the rational and administrative approaches to make decisions
condition of ambiguity
neither the problem nor the alternatives are clear
analyzer
observes prospectors and moves when they feel the decision has been shown to be correct and the time is right
non programmed decision
one that recurs infrequently and for which there is no previously established decision rule
programmed decision
one that recurs often enough for a decision rule to be developed
change could result in
opportunity for personal change and development new challenges reduction in complacency and boredom opportunity to be involved in change and outcome
resistance may be caused by
organizational structure or overdetermination rewards, resources, power, culture narrow focus of change individual interim or low tolerance for change unknown or misunderstanding self interest, loss of expertise, power, resources individual perspective of the situation, social issues, group pressure
condition of certainty
outcomes of each alternative are known
groupthink
pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision
prospector
pioneer- risk taker-first mover- leader
lewin's process model
planned organization change requires a systematic process of movement from one condition to another -unfreezing -change -refreezing
training
purpose: improve employees current job skills or impart new skills methods: lecture, discussion, lecture-discussion combo, experimental methods, case studies, film/videos locations: classroom, on and off company property, hotel, resort, conference centers, on the job major difficulty: transferring learning to the workplace
Incremental innovation
results in gradual improvements and refinements to existing products and services over time as existing technologies and other new factors are perfected
radical (quantum) innovation
results in the development of radically different kinds of goods and services; possibly because of fundamental shifts in technology brought about by pioneering discoveries
entrepreneurship
someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decide what, how, and how much of a good or service will be produced
reason for decision
survival-necessity-standard requirement- comfort or cosmetic perceived duty
creativity
the ability to generate new ideas or to conceive of new perspectives on existing ideas
organizational climate
the current situation in an organization and the effect that situation has on the employees and organizational performance
individual participation
the degree to which employees should be involved in the decision making process
innovation
the process of creating and doing new things that are introduced into the marketplace as products, processes, or services
cost-benefits analysis
the process of identifying and adding up all costs associated with a project or decision and then comparing those projected costs to the total projected benefits (or opportunities) of the project or decision
organization development (OD)
the process of planned change and improvement of the organization through application of knowledge of the behavioral sciences
organizational change movement
the process that ensures an organization responds (changes) to the environment in which it operates
organizational culture
the set of values, beliefs, and accepted behaviors communicated and supported within the organization
condition of uncertainty
there is insufficient information to estimate the probability of possible outcomes
social identity theory
this theory states that a persons sense of who they are is based on their group membership, their decisions are based on the expectations, norms, values, and standard operating procedures of the group
delphi nominal group technique
written approach to creative problem solving group leader writes a statement of the problem to which managers respond questionnaire is sent to managers to generate solutions team of managers summarizes the responses and results are sent back to the participants process is repeated until a consensus is reached