MNO 3370 Exam #1

How is diversity a source of competitive advantage?

1. Cost Savings - less turnovers, and everyone will have a different opinion or decision. 2. Attracting and Retaining Talent - being who you are 3. Driving Business Growth - appreciating diversity the customers will want to feel more connected to these companies; enhances decision making.

Surface vs. Deep-Level diversity:

Surface Level diversity: age, race/ethnicity, gender, and physical capabilities. Things that are readily observable and this can negative effects. Deep-Level diversity: personality, attitudes, and values/beliefs. This will have the most conflict (hire/fire)

Peter Drucker

Three tasks that management has to perform: • 1. Establishing the specific purpose and mission of the institution • 2. Making work productive and the worker effective • 3. Managing social impacts and social responsibilities • The purpose of a business is to create a customer before profit maximization

What specific actions can managers and organizations take to create a positive ethical climate?

¥ Behave ethically yourself ¥ Screen potential employees ¥ Develop a meaningful code of ethics (specific practices - and what will happen) ¥ Provide ethics training ¥ Reinforce ethical behavior ¥ Create structures (people or units) to deal with ethical issues ¥ Create climate in which whistleblowing becomes unnecessary

Social Responsibility - Know the 4 types/levels of the Pyramid of Social Responsibility:

¥ Bottom Layer: Economic: be profitable - 1st responsibility of the company ¥ Layer 2: Legal: obey laws and regulations ¥ Layer 3: Ethical: abide by principles of right and wrong ¥ Layer 4: Discretionary: serve a social role

Kohlberg's Stages of Moral Development - know 3 stages and how to recognize/use:

¥ Stage 1: Preconventional: selfish, punishment and obedience, and instrumental exchange (children) ¥ About you and your personal outcome. Ex. Child throws a fit because he wants dessert. ¥ Stage 2: Conventional: Good boy, nice girl, and law and order. Have societal expectations. (adults) ¥ Ex. Do what society thinks is right ¥ Stage 3: Postconventional: internalized principles, social contract, and universal principle. Very few get to postconventional such as Ghandi.

Types of Stakeholders (6)

¥ Stockholders: want to ensure that managers are behaving ethically and not risking investor's capital by engaging in actions that could hurt the company's reputation. Want to maximize their return on investment. ¥ Managers: responsible for using a company's financial capital and human resources to increase its performance. Have the right to expect a good return or reward by investing their human capital to improve a company's performance. Frequently juggle multiple interests. ¥ Employees: companies can act ethically toward employees by creating an occupational structure that fairly and equitably rewards employees for their contributions ¥ Suppliers and Distributors: suppliers expect to be paid fairly and promptly for their inputs. Distributors expect to receive quality products at agreed-upon prices ¥ Customers: most critical stakeholder. Company must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones. ¥ Community: refers to physical locations like towns or cities or to social milieus like ethnic neighborhoods in which companies are located

Ethical Decision Making Rules/Models - know 4 rules and how to recognize/use:

¥ Utilitarian Rule: decision that produces the greatest good for the greatest number of people ¥ Moral Rights Rule: decision that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it ¥ Justice Rule: decision that distributes benefits and harms among people and groups in a fair, equitable, or impartial way ¥ Practical Rule: decision that a manger has no hesitation about communicating to people outside the company because the typical person would think it is acceptable. This could fail because some people might be proud of something that is not ethical.

Content Theories

• Content Theories of motivation: focus on identifying internal factors such as instincts, needs, satisfaction, and job characteristics that energize employee motivation. Process theories of motivation: focus on explaining the process by which internal factors and cognitions influence employee motivation. More dynamic than content theories. • Maslow's Hierarchy: motivation is a function of five basic needs: Physiological: most basic need. Entails having enough food, air, and water to survive. Safety: consists of the need to be safe from physical and psychological harm. Love: the desire to be loved and to love. Contains the needs for affection and belonging. Esteem: need for reputation, prestige, and recognition from others. Also contains need for self-confidence and strength. Self-actualization: desire for self-fulfillment- to become the best one is capable of becoming. • Maslow believed human needs generally emerge in a predictable stair-step fashion. Accordingly, when one's physiological needs are relatively satisfied, one's safety needs emerge, and so on up the need hierarchy, one step at a time. • Two Managerial Implications: 1. it is important for managers to focus on satisfying employees needs related to self-concepts - self-esteem and self-actualization - because their satisfaction is significantly associated with a host of important outcomes such as academic achievement, physical illness, psychological well-being, criminal convictions, drug abuse, martial satisfaction, money and work problems, and performance at work. 2. A satisfied need may lose its motivational potential. Therefore, managers are advised to motivate employees by devising programs or practices aimed at satisfying emerging or unmet needs. • Alderfer's ERG Theory: it is different than Maslow's theory because a smaller set of core needs is used to explain behavior. Second, ERG theory does not assume needs are related to each other in a stair step hierarchy and that more than one need may be activated at a time. Also, ERG theory contains a frustration-regression component. That is, frustration of higher-order needs can influence the desire for lower-order needs. For example, employees may demand higher pay or better benefits (existence needs) when they are frustrated or dissatisfied with the quality of their interpersonal relationships (relatedness needs) at work. • From lowest to highest level they are existence needs (E) - the desire for physiological and materialistic well-being; relatedness needs (R) - the desire to have meaningful relationships with significant others; and growth needs (G) - the desire to grow as a human being and to use one's abilities to their fullest potential. • Two Managerial Implications: 1. Managers should keep in mind that employees may be motivated to pursue lower-level needs because they are frustrated with a higher-order need. The solution for a stifling work environment may be a request for higher pay or better benefits. 2. ERG theory is consistent with the finding that individual and cultural differences influence our need states. Managers should customize their reward and recognition programs to meet employees varying needs. • McClelland's Needs for Achievement, Affiliation, and Power: made up of three needs. Need for Achievement: desire to accomplish something difficult. Need for Affiliation: prefer to spend more time maintaining social relationships, joining groups, and wanting to be loved. These people are not the most effective mangers because they tend to avoid conflict, have a hard time making decisions without worrying about being disliked, and avoid giving others negative feedback. Need for Power: reflects an individual's desire to influence, coach, teach, or encourage others to achieve. People with high need for power like to work and are concerned with discipline and self-respect. • Managerial Implications: 1. Organizations should consider benefits of providing achievement training for employees. 2. Organizations should also note that it is important to balance recommendations with the downside of high achievement. As high achievement may make people prone to cheat.

Feedback

• Feedback: is objective information about individual or collective performance. The two functions of feedback are one is instructional and the other motivational. Feedback instructs when it clarifies a roles or teaches new behavior. On the other hand, feedback motivates when it serves a reward or promises a reward. • Recipient Perspectives: individual differences, perceptions, and evaluation: • Individual Differences: personality characteristics such as self-esteem and self-efficacy can help or hinder one's readiness for feedback. Those having low self-esteem and low self-efficacy generally do not actively seek feedback that, unfortunately, would tend to confirm those problems. Needs and goals also influence one's openness to feedback. People who have high need achievement were found to seek more feedback than those who had low need for achievement. And self-monitor. • Perceptions: people tend to perceive and recall positive feedback more accurately than they do negative feedback. But feedback with a negative sign can have a positive motivational impact. People who are given negative feedback will see it as a challenge and set and pursue higher goals. Whereas, people who receive positive feedback were less motivated to do better. • Evaluation: upon receiving feedback, people cognitively evaluate factors such as its accuracy, the credibility of the source, the fairness of the system, their performance-reward expectancies, and the reasonableness of the standards. For instance, you would probably discount feedback from someone who exaggerates or from someone who performed poorly on the same task you have just successfully completed. • Practical Lessons from Research: What should managers be aware of? • The acceptance of feedback should not be treated as a given; it is often misperceived or rejected. This is especially true in intercultural situations. • Managers can enhance their credibility as sources of feedback by developing their expertise and creating a climate a trust. • Negative feedback is typically misperceived or rejected • Although very frequent feedback may erode one's sense of personal control and initiative, feedback is too infrequent in most work organizations. Feedback needs to be tailored to the recipient. • While average and below-average performers need extrinsic rewards for performance, high performers respond to feedback that enhances their feelings of competence and personal control • Computer-based performance feedback leads to greater improvements in performance when it is received directly from the computer system rather than via an immediate supervisor • Recipients of feedback perceive it to be more accurate when they actively participate in feedback session versus passively receiving feedback • Destructive criticism tends to cause conflict and reduce motivation • "The higher one rises in an organization the less likely one is to receive quality feedback about job performance" • 360-Degree Feedback - Developmental vs. Evaluative: • 360-degree feedback: involves letting individuals compare their own perceived performance with behaviorally specific (and usually anonymous) performance information from their manger, subordinates, and peers. Using 360 confidentially, for developmental purposes, builds trust; using it to trigger pay and personnel decisions puts trust at risk.

Diversity Trends in the workplace (how does each trend affect organizations?)

• It has been determined that women have broken the glass ceiling seeing progress and growth in managerial positions. "Glass ceiling" - women are higher in board at some companies. It is an invisible barrier blocking women and minorities from top management positions. • Glass Ceiling: Minority groups will make up 50% of the workforce in 2050 but are experiencing their own glass ceiling as it is believed that they are advancing less in managerial and professional ranks compared to whites, also race-based charges of discrimination have increased from 1995 to 2008 significantly and finally they earn less than whites. • Educational background has shown a mismatch. While 28% of the labor force holds college degrees they are lacking skills such as teamwork, critical thinking, and analytical reasoning, then there is a shortage in technical skills such as science, math and engineering, third high school graduates do not process basic skills needed to perform effectively this is due to the national high school graduation rate at 75% and the 32 million functionally illiterate adults in the US. This is costing corporations billions in lost of productivity and have a worrisome effect on the government and business leaders. Basically, there is a severe mismatch between ability, skill and the given workforce along with global competition America is headed down the wrong track. • Age and generational differences are showing that America's workforce is aging and by 2018 80% of the workforce will be 50 years old. Aging population underscores a potential skill gap as well as differences in attitudes between baby boomers and millennials. Along with the cost burden on society of an aging population. • Managing Gender-Based Diversity: special effort is needed to help women navigate through the labyrinth of career success. Organizations can do this by providing women the developmental assignment that prepare them for promotional opportunities. Men get promoted more frequently than women and more likely get sponsored by their bosses. "Women are just now learning what men have known for years" (playing golf). IMPROVE NEGOTIATING SKILLS. Take credit for your accomplishments. Seek work/life balance by delegating housework or hiring domestic help. • Managing Racially Based Diversity: organizations are encouraged to educate employees about negative stereotyping regarding people of color, particularly when it comes to selecting and promoting a leader. Negative stereotypes not only block qualified people from obtaining promotions, but they can undermine a person's confidence in their ability to lead. This company attempted to improve employee productivity, satisfaction, and motivation by developing customized training programs to improve the communication skills of their Spanish-speaking employees. People of color should be mentored differently than their white counterparts. • Managing Education-Based Diversity: mismatches between the amount of education needed to perform current jobs and the amount of education possessed by members of the workforce are growing. Issues: There will be a shortage of qualified people in technical fields. The goal is to increase targeted skills through volunteer activities. Second, underemployment among college graduates threatens to erode job satisfaction and work motivation. As well-educated workers begin to look for jobs commensurate with their qualifications and expectations, absenteeism and turnover will likely increase. Organizations will need to consider interventions, such as realistic job previews, and positive reinforcement programs, to reduce absenteeism and turnover. • Managing Age-Related Diversity: organizations can take advantage of the human and social capital possessed by older employees by implementing programs that encourage employees to stay employed and transfer their knowledge to others.

Mood vs. Emotion - what is the difference?

• Mood: a feeling or state of mood. Positive moods provide excitement, elation, and enthusiasm. Negative moods lead to fear, distress, and nervousness. • Emotion: reaction in the workplace. Intense, relatively short-lived feelings. Tend to be a response to an encounter in our environment.

Sources of workplace diversity - above 4 plus religion, sexual orientation, disabilities, socio-economic status (SES)

Age, gender, race, ethnicity, religion, sexual orientation, socio-economic status, and disabilities.

Why ethics matters; Manager's role in organizational ethics

•Ethics: the set of moral principles or values that defines right and wrong for a person or group. • Why Ethics Matters: • Good ethics is good business • Reduced operating costs • Improved financial performance • Enhanced corporate reputation • Increased ability to attract and retain employees • Legal regulations • Reasons for Unethical Behavior: • Individual differences in cognitive moral development • Situational determinants of unethical behavior (in organization) • Some managerial values undermine integrity • Bottom-line mentality: this line of thinking supports financial success as the only value to be considered. • Madison Avenue mentality: this perspective suggest that anything is right if the public can be made to see it as right • Workers emulate the unethical behavior of their superiors

Personality

•Personality Traits: enduring tendencies to feel, think, and act in certain ways that can be used to describe the personality of every individual. Managers' personalities influence their behavior and approach to managing people and resources. Myers-Briggs (know the 4 preference pairs and how they differ) - not very reliable or predictable • 1. Focus their attention (Extraversion vs. Introversion) • Extraverts - outgoing, talkative, sociable and assertive • Introverts - quiet, shy and cautious • 2. Collect Information (Sensing vs. Intuition) • Sensing - use five senses - prefer details and quantitative information • Intuition - prefer big pictures, abstract concepts, and subjective evidence • 3. Process and evaluate information (Thinking vs. Feeling) • Thinking - use rational cause-effect logic; weigh evidence objectively and unemotionally in decisions • Feeling - use values (theirs and others) to make decisions more than rational logic • 4. Orient themselves to the outer world (Judging vs. Perceiving) - most consistent/stable • Judging - prefer order, structure, and control • Perceiving - prefer spontaneity, flexibility, adaptation, and keeping options open The "Big Five" - "OCEAN" (don't have to know the sub-dimensions, just the major categories) • Openness to Experience - the extent to which someone is creative, curious, and cultured (open to experience), as opposed to practical and having narrow interests (closed to experience) • Conscientiousness - the degree to which someone is hardworking, organized, dependable, and persevering (high in conscientiousness), as opposed to lazy, disorganized, and unreliable (low in conscientiousness). Predictor of job performance. • Extraversion - the degree to which someone is gregarious, assertive, and sociable (extraverted), as opposed to reserved, timid, and quiet (introverted) • Agreeableness - the degree to which someone is cooperative and warm (highly agreeable), as opposed to belligerent and cold (highly disagreeable) • Negative affectivity (emotional stability) - the degree to which someone is insecure, anxious, and depressed (emotionally unstable), as opposed to secure, calm, and happy (emotionally stable). Stand up to criticism. • Team Performance - is positively correlated with: • Avg. Conscientiousness • Avg. Agreeableness • Avg. Emotional Instability • And, the absence of a single "disagreeable" member. Need for Achievement, Affiliation, and Power • Need for Achievement - the extent to which an individual has a strong desire to perform challenging tasks well and meet personal standards for excellence. Negative because take all the credit and don't allow employees to have a chance. • Need for Affiliation - the extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having other people get along. To fit in/included. • Need for Power - the extent to which an individual desires to control or influence others. Control and dominant. Goal Orientation - Learning vs. Performance • Goal Orientation - type of goals individuals tend to prefer in achievement settings. Can be "state" or "trait." • Learning ("Growth Mindset") - focus on building competence, and tend to believe that ability is malleable. Adaptive responses to obstacles or failure. • Performance ("Fixed Mindset") - focus on demonstrating competence, seeking favorable judgements, and tend to believe that ability fixed. Maladaptive responses to obstacles and failure. Self-Esteem, Self-Efficacy, and Self-Monitoring • Self-Esteem - is a belief about one's own self-worth based on an overall self-evaluation. • Self-Efficacy - is a person's belief about his or her chances of successfully accomplishing a specific task. Develops from gradual acquisition of complex skills. Cyclical relationship between efficacy and performance, aka good efficacy leads to good performance and vice versa. Sources of self-efficacy include prior experience, behavior models, persuasion from others and assessment of physical/emotional state. • Self-Monitoring - is the extent to which a person observes his or her own self-expressive behavior and adapts it to the demands of the situation. There are high and low self-monitors. High monitors are called chameleons, who readily adapt their self-presentation to their surroundings. Low monitors often are criticized for being on their own planet and insensitive to others.

Attribution

1. Attribution the process through which individuals attempt to determine the causes behind others' behaviors. ¥ Causes of Behavior: ¥ Internal: explanations based on actions for which the individual is responsible (person) ¥ External: explanations based on situations over which the individual has no control (situation) ¥ Kelley's Theory of Attribution: the approach suggesting that people will believe others' actions to be caused by internal or external factors based on three types of information: consensus, consistency, and distinctiveness. ¥ Consensus: involves a comparison of an individual's behavior with that of his or her peers. There is high consensus when one acts like the rest of the group and low consensus when one acts differently ¥ Consistency: is determined by judging if the individual's performance on a given task is consistent over time. High consistency implies that a person performs a certain task the same, time after time. Unstable performance of a given task over time would mean low consistency. ¥ Distinctiveness: is determined by comparing a person's behavior on one task with his or her behavior on other tasks. High distinctiveness means the individual has performed the task in question in a significantly different manner than he or she has performed other tasks. Low distinctiveness means stable performance or quality from one task to another. ¥ It is important to remember that consensus relates to other people, distinctiveness relates to other tasks, and consistency relates to time. ¥ Fundamental Attribution Error: ¥ Fundamental Attribution Bias: reflects one's tendency to attribute another person's behavior to his or her personal characteristics, as opposed to situational factors. This bias causes perceivers to ignore important environmental forces that often significantly affect behavior. Ex. A woman was fired from her job on the night shift at a poultry plant for falling asleep. Management may have thought that she was lazy, it turns out "that she paid for childcare during the night while she was working, but she didn't earn enough to pay someone to watch her baby during the day. ¥ Halo Effect: ¥ Halo Effect/Horn Effect: the tendency for a person's overall impression to bias his or her assessment of another on specific dimensions. Positive bias taken to everyone. Ex. Gets a great exam grade and they believe they are great students and gloss over specific duties. Can be general negative bias. ¥ Self-Fulfilling Prophecies - Pygmalion, Golem, and Galatea Effects ¥ Pygmalion Effect: someone's high expectations for another person result in high performance for that person ¥ Golem Effect: loss in performance resulting from low leader expectations. Ex. When a manager begins to believe that an employee has what it takes to be successful in the organization. So the manager begins watching the employee very carefully and this results in the employee believing that the manager has lost trust in him and will act poorly. ¥ Galatea Effect: occurs when an individual's high self-expectations for him- or her- self-lead to high performance. ¥ The key process underlying both the Pygmalion and Galatea effects is the idea that people's expectations or beliefs determine their behavior and performance, thus serving to make their expectations come true.

Six categories of emotion (from your slides, not the book)

Anger, Fear, Joy, Love, Sadness, and Surprise

Mintzberg's Managerial Roles

Decisional - roles associated with methods managers use in planning strategy and utilizing resources. (CEO, Entrepreneur, Disturbance handler, Resource allocator, and Negotiator) Informational - roles associated with the tasks needed to obtain and transmit information in the process of managing the organization. (Middle manager, Monitor, Disseminator, and Spokesperson). Interpersonal - roles that managers assume to provide direction and supervision to both employees and the organization as a whole. (First-line manager, Leader, Figurehead, and Liaison).

Ethical Dilemmas - benefit one stakeholder while harming another

Ethical Dilemma - quandary people find themselves in when they have to decide if they should act in a way that might help another person or group, even though doing so might go against their own self-interest or their own group's interest.

Management by Objectives

Management by objectives: is a management system that incorporates participation into decision making, goal setting, and objective feedback. The central idea of MBO, getting individual employees to "own" a piece of a collective effort.

Prejudice vs. Stereotypes vs. Discrimination.

Prejudice: an attitude consisting of negative beliefs/feelings/assumptions of people described by stereotypes Stereotypes: is an individual's set of beliefs about the characteristics or attributes of a group. Stereotypes are not always negative. Stereotype characteristics are used to differentiate a particular group of people from other groups. It is not immoral or bad to possess stereotypes. Inappropriate use of stereotypes can lead to poor decisions; can create barriers for women, older individuals, people of color, and people with disabilities; and can undermine loyalty and job satisfaction. Discrimination: occurs when employment decisions about an individual are due to reasons not associated with performance or are not related to the job. Organizations cannot discriminate on the basis of race, color, religion, national origin, sex, age, physical and mental disabilities, and pregnancy.

Historical Management Thinkers

Scientific Management: the earliest attempt to study behavior in organizations that emphasized the importance of designing jobs as efficiently as possible. Focus on human efficiency and organization. (Frederick Taylor) - F.W. Taylor - wrote a book that studied how people think and what makes them want to work - Henry Gantt - wanted to make certain "work" more efficient. Charts how do we allocate people across time. - Frank and Lillian Gilbreth - Management theory: there is a "best way" to do any task. Time and motion studies - use videos to track the movement of people in the organization. Classical Organization Theory: an approach to studying organizations that focused on the efficient structuring of organizations. - Max Weber (ideal bureaucracy): which is very inefficient. The way an organization is structured can have an effect on efficiency. Human Relations Movement: a management philosophy that rejected the primarily economic orientation of scientific management and focused instead on the noneconomic, social factors operating in the workplace. Sought to improve productivity by developing good working relationships. - Hawthorne studies: made claims about the powerful effect that individual needs, supportive supervision, and group dynamics apparently had on job performance. - Elton Mayo: advised managers to attend to employee's emotional needs. (major proponent for this movement) - Mary Parker Follett: saw employees as complex combinations of attitudes, beliefs, and needs. Told managers to motivate job performance instead of merely demanding it, a "pull" rather than "push" strategy. She also built a logical bridge between political democracy and a cooperative spirit in the workplace. Letting people make decisions and empowering work teams.

Managerial Skills

Technical Skills - the specific knowledge and techniques required to perform an organizational role (first-line managers). Human Skills - the ability to understand, lead, and control the behavior of other individuals and groups (middle manager). Conceptual Skills - the ability to analyze and diagnose the overall company, its parts, or a certain situation and distinguish between cause and effect (CEO). Motivation to Manage - how enthusiastic an employee is about managing others

Rational vs. Normative vs. Garbage can models (key differences?)

The rational model proposes that managers use a rational, four-stage sequence when making decisions. Managers are completely objective and possess complete information to make a decision. The first stage is to identify the problem or opportunity, second is to generate alternative solutions, third is to evaluate the alternatives and select a solution, and lastly implement and evaluate the solution. Simon's normative model was meant to describe the process that managers actually use when making decisions. The process is guided by a decision maker's bounded rationality. Bounded rationality represents the notion that decision makers are "bounded" or restricted by a variety of constraints when making decisions. These constraints include any personal characteristics or internal and external resources that reduce rational decision making. In the long run, the constraints of bounded rationality cause decision makers to fail to evaluate all potential alternatives, thereby causing them to satisfice. Satisficing consists of choosing a solution that meets some minimum qualifications, one that is "good enough." Satisficing resolves problems by producing solutions that are satisfactory, as opposed to optimal. Garbage Can Model: decisions result from a complex interaction between four independent streams of events: problems, solutions, participants, and choice of opportunities. A similar type of process occurs in your kitchen garbage basket. We randomly discard our trash and it gets mashed together based on chance interactions. "They both get thrown around the same time." The garbage can model of decision making assumes that decision making does not follow an orderly series of steps. Rather, attractive solutions can get matched up with whatever handy problems exist at a given point in time. This model of decision making thus attempts to explain how problems, solutions, participants, and choice of opportunities interact and lead to a decision.

Attitudes: Job Satisfaction, Organizational Commitment, Employee Engagement

• Attitude: a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object. Made up of affective, cognitive, and behavioral components. • Affective Component: contains the feelings or emotions one has about a given object or situation. • Cognitive Component: reflects the beliefs or ideas one has about an object or situation. • Behavioral Component: refers to how one intends or expects to act toward someone or something. • Job Satisfaction: managers (and other employees) high on job satisfaction like their jobs, feel that they are being fairly treated, and believe that their jobs have many desirable features. • Organizational Commitment: committed managers (and other employees) are loyal to and are proud of their firms. Commitment can lead to a strong organizational culture. Commitment helps managers perform their interpersonal and informational roles. • Employee Engagement: extent to which employees give it all at work. Managers should focus on increasing employee engagement because it leads to lower turnover and higher customer satisfaction and spending, they can do this by having transformational leadership, job security and trust between employee and management Organizational Citizenship Behavior vs. Counterproductive Work: • Organizational Citizenship Behavior (OCB): consist of employee behaviors that are beyond the call of duty. Examples: expression of personal interest in the work of others, suggestions for improvement, and training new people. • Counterproductive Work (CWB): types of behavior that harm employees, the organization as a whole, or organizational stakeholders such as customers and shareholder. Examples: theft, gossiping, violence, backstabbing, and drug and alcohol abuse.

Biases in decision making (remember the online simulation)

• Confirmation Trap: occurs in two components the first when a person subconsciously decides something before investigating why it is the right decision, this leads to the second component when we seek information that supports our choice while discounting information that doesn't support our choice. • Framing Effects: refers to the tendency for people to make different decisions based on how the problem is presented to them. Positive Framing: tends to make decision makers risk averse. Negative Framing: tends to make decision makers risk seeking. (sad dog commercials) • Sunk Cost Effect: tendency for people to escalate commitment to a course of action in which they made substantial prior investments of time, money, or other resources (investments are irreversible). Ex. Casino money + Mount Everest • Anchoring Trap: tendency to rely too heavily on the first piece of information offered (the "anchor"). We overly on the expert's information. Ex. Price sticker on a used car; people will pay more than the price sticker. • Heuristics: are simple rules that are used to guide the decision maker through a complex array of decision alternatives. Availability heuristic: the tendency for people to base their judgments on information that is readily available to them, although it may inaccurate. Representativeness heuristic: the tendency to perceive others in stereotypical ways if they appear to be typical representatives of the category of which they belong. • Overconfidence: assume that more information improves our ability to make good predictions and decisions. Research shows that more information does not always help accuracy, but it consistently raises people's CONFIDENCE in their predictions. • Hindsight Bias: occurs when knowledge of an outcome influences our belief about the probability that we should have predicted the outcome earlier. We are affected by this bias when we look back on a decision and try to reconstruct why we decided to do something. Ex. Quiz.

Equity Theory - compare their own ratio of inputs to outcomes with a referent

• Equity Theory: is a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships. • Outcome: anything a person gets from a job or an organization (pay, benefits, job security). Input: anything a person contributes to his or her job or organization (time, effort, skills, knowledge, and education). Referents: people tend to compare themselves to other individuals with whom they have close interpersonalities - such as friends - or to similar others - such as people performing the same job or individuals of the same gender, education level - rather than dissimilar others. • Negative Inequity: comparison in which another person receives greater outcomes for similar inputs. Positive Inequity: comparison in which another person receives lesser outcomes for similar inputs. • Underpayment vs. Overpayment Inequity: • Inequity exists when a worker's outcome/input ratio is not equal to referent. Underpayment inequity: ratio is less than the referent. Workers feel they are not getting the outcomes they should for their inputs. Overpayment Inequity: ratio is higher than the referent. Workers feel they are getting more outcomes than they should for their inputs. • Behavioral and Psychological Reactions: • Overpayment Inequity: Behavioral Reaction - raise your inputs (work harder) or lower your outcomes (work through a paid vacation). Psychological Reaction - convince yourself that your outcomes are deserved based on your inputs (rationalize that you work harder than others and so you deserve more pay) • Underpayment Inequity: Behavioral Reaction - lower your inputs (reduce effort) or raise your outcomes (get a raise in pay). Psychological Reaction - convince yourself that other's inputs are really higher than your own (rationalize that the comparison worker is really more qualified and so deserves higher outcomes). • Organizational Justice - distributive, procedural, and interactional: • Organizational Justice: reflects the extent to which people perceive that they are treated fairly at work. There are three different components in organizational justice: distributive, procedural, and interactional. • Distributive Justice (outcomes): reflects the perceived fairness of how resources and rewards are distributed or allocated. Procedural Justice (process): is defined as the perceived fairness of the process and procedures used to make allocation decisions. Research shows that positive perceptions of distributive and procedural justice are enhanced by giving employees a "voice" in decisions that affect them. Interactional Justice (implementation): relates to the "quality of the interpersonal treatment people receive when procedures are implemented." This focuses on whether or not people feel they are treated fairly when decisions are implemented.

Expectancy Theory - Valence, Instrumentality, Expectancy

• Expectancy Theory: holds that people are motivated to behave in ways that produce desired combinations of expected outcomes. Generally, this theory can be used to predict motivation and behavior in any situation in which a choice between two or more alternatives must be made. Motivation boils down to the decision of how much effort to exert in a specific task situation. This choice is based on a two-stage sequence of expectations (effort performance and performance outcome). • Expectancy: represents an individual's belief that a particular degree of effort will be followed by a particular level of performance. It is an effort performance expectation. The following factors influence an employee's expectancy perceptions: self-esteem, self-efficacy, previous success at the task, help received from a supervisor and subordinates, information necessary to complete the task, and good materials and equipment to work with. • Instrumentality: is a performance outcome perception. It represents a person's belief that a particular outcome is contingent on accomplishing a specific level of performance. Instrumentalities range from -1.0 to 1.0. A 1.0 indicates attainment of a particular outcome is totally dependent on task performance. A 0 indicates that there is no relationship between performance and outcome. A -1.0 reveals that high performance reduces the chance of obtaining an outcome while low performance increases the chances. • Valence: refers to the positive or negative value people place on outcomes. Valence mirrors our personal preferences. Outcomes refer to different consequences that are contingent on performance, such as pay, promotions, or recognition.

Goal Setting Theory - Specific and Difficult

• Goal Setting Theory: focuses on identifying the types of goals that are effective in producing high levels of motivation and explaining why goals have these effects. • How does Goal Setting work? 1. Goals direct attention: goals direct one's attention and effort toward goal-relevant activities and away from goal-irrelevant activities. 2. Goals regulate effort: not only do goals make us selectively perceptive, they also motivate us to act. The level of effort expended is proportionate to the difficulty of the goal. 3. Goals increase persistence: persistence represents the effort expended on a task over an extended period of time. Persistent people tend to see obstacles as challenges to be overcome rather than as reasons to fail. 4. Goals foster the development and application of task strategies and action plans: if you are here and your goal is out there somewhere, you face the problem of getting from here to there. Goals can help because they encourage people to develop strategies and action plans that enable them to achieve their goals. • Role of Goal Commitment: is the extent to which an individual is personally committed to achieving a goal. Researchers believe that goal commitments moderate the relationship between the difficulty of a goal and performance. Difficult goals lead to higher performance only when employees are committed to their goals. • Four negative effects of linking individual monetary incentives to goal achievement are: 1. Goal based bonus incentives produce higher commitment to easy goals and lower commitment to difficult goals. 2. People are more reluctant to commit to high goals that are tied with monetary incentives. 3. People with high goal commitment also offered less help to their co-workers when they received goal based bonus incentives to accomplish difficult individual goals and people neglected aspects of the job that were not covered in the performance goals. 4. People "bent the rules" to accomplish their goals. • Feedback: objective information about individual or group performance - provides information and motivation • SMART Goals: Specific: task and goal has to be clear. Measureable: results determining goal accomplishment should be measureable and quantifiable. Attainable: goal must be challenging, realistic, accepted, and consistently applied. Results Orientated: goal should be framed in terms meaningful to the desired outcome. Time-Based: time frame in which the goal should be accomplished - accompanied by feedback.

Intrinsic vs. Extrinsic Motivation - Why do extrinsic rewards not always motivate?

• Intrinsic rewards: behavior that is performed for its own sake; self-granted. One who derives pleasure from the task itself or experiences a sense of competence or self-determination is said to be intrinsically motivated. Extrinsic rewards: behavior that is performed to acquire material or social rewards or to avoid punishment. They are financial, material, and social rewards that come from the environment. An employee who works to obtain extrinsic rewards, such as money or praise, is said to be extrinsically motivated. • Extrinsic rewards not always motivate because too much emphasis on monetary approach, rewards lack an "appreciation effect," extensive benefits become entitlements, counterproductive behavior is rewarded, too long a delay between performance and rewards, too many one-size-fits-all rewards, use of one-shot rewards with a short-lived motivational impact, and continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation. Pay for performance is the popular term for monetary incentives linking at least some portion of the paycheck directly to results or accomplishments.

3 Managers and their approaches to motivation - Jack Welch, Joe Torre, Herb Kelleher

• Jack Welch: CEO of General Electric. Trusting his employees to get out and do the best they possibly can and the results are the best. Intrinsic value as a reward; hires people who are energizing and can energize other people. Proper balance between shareholders, employees, and communities. Have to satisfy the shareholders. • Joe Torre: Manager for the New York Yankees. Emotional intelligence. Regular one-on-one encounters with his players. He is loyal and respectful to his players. He never loses his temper and is always encouraging even when the team is not doing their best. He was honest to his players and that able to build trust between them. • Herb Kelleher: CEO of Southwest Airlines. Put employees needs first. He would hire people with a sense of humor and make sure they were supporting coworkers. Employees were allowed to make their own decisions and they wouldn't be crucified if they made mistakes. He would take all of his employees' ideas very seriously. He would involve employees in decision making and recognize people through "winning spirit awards." Doesn't act cocky after 25 years of profit. Company has a dress-down Friday every day. Celebrations such as company cookouts - motivate and reenergize people.

Job Design

• Job Design: process by which managers decide how to divide tasks into specific jobs (division of labor) • Top Down Approaches: management is responsible for creating efficient and meaningful combinations of work tasks for employees. • Job Simplification: Frederick Taylor/Scientific Management. The process of reducing the number of tasks that each worker performs. Employee efficacy and productivity increased. However, research reveals that simplified, repetitive jobs also lead to job dissatisfaction, poor mental health, higher levels of stress, and low sense of accomplishment and personal growth. • Job Enlargement (horizontally loading): involves putting more variety into a worker's job by combining specialized tasks of comparable difficulty. Horizontal loading means giving employees additional tasks of similar difficulty. • Job Enrichment (vertical loading): entails modifying a job such that an employee has the opportunity to experience achievement, recognition, stimulating work, responsibility, and advancement. Vertical loading consists of giving workers more autonomy and responsibility. • Job Rotation: calls for moving employees from one specialized job to another. Workers are trained and given the opportunity to perform two or more separate jobs on a rotating basis. By doing this, managers believe they can stimulate interest and motivation while providing employees with a broader perspective of the organization. • Job Characteristics Model - know the 5 characteristics and how they influence the 3 psychological states: • Job Characteristics Model - the object of this approach is to promote high intrinsic motivation by designing jobs that possess the five core job characteristics. • Experienced meaningfulness of the work: 1. Skill Variety: the extent to which the job requires an individual to perform a variety of tasks that require him or her to use different skills and abilities. 2. Task Identity: the extent to which the job requires an individual to perform a whole or completely identifiable piece of work. In other words, task identity is high when a person works on a product or project from the beginning to end and sees a tangible result. 3. Task Significance: the extent to which the job affects the lives of other people within or outside the organization. • Experienced responsibility for outcomes of the work: 1. Autonomy: the extent to which the job enables an individual to experience freedom, independence, and discretion in both scheduling and determining the procedures used in completing the job. • Knowledge of the actual results of the work activities: 1. Feedback: the extent to which an individual receives direct and clear information about how effectively he or she is performing the job.

Organizational Decisions:

• Programmed vs. Nonprogrammed: programmed: the decision that you make every time something happens. Nonprogrammed: not clear outcome so do the best you can. • Evidence-based Decision Making Model: represents a process of conscientiously using the best available data and evidence when making managerial decisions • 5 step model: 1. Identify the problem. 2. Gather internal evidence or data about the problem, and evaluate its relevance and validity. 3. Gather external data about the problem from published research. 4. Gather views from stakeholders affected by the decision and consider ethical implications. 5. Integrate and critically appraise all data and then make a decision. • Hard to be evidence based because: • 1. There's too much evidence • 2. There's not enough good evidence • 3. The evidence doesn't quite apply • 4. People are trying to mislead you • 5. You are trying to mislead you • 6. The side effects outweigh the cure • 7. Stories are more persuasive, anyway. • Role of Intuition in Decision Making: Intuition represents judgments, insights or decisions that "come to mind on their own, without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of these cues." • Model of Intuition (2 types): Holistic Hunch: represents a judgment that is based on a subconscious integration of information stored in memory. People using this may not be able to explain why they want to make a certain decision except that the choice "feels right." (automatic, involuntary). Automated Experience: represents a choice that is based on familiar situation and a partially subconscious application of previously learned information related to that situation. For example, when you have years of experience driving a car, you react to a variety of situations without conscious analysis (controlled, voluntary). Pros: can speed up the decision making process. Cons: subject to the same types of biases associated with rational decision making. Decision maker may have difficulty convincing others that the intuitive decision makes sense, so a good idea may be ignored.

Reinforcement/Operant Conditioning Theory:

• Skinner's Operant Conditioning Model: He had work that became known as behaviorism because he dealt strictly with observable behavior. Skinner drew an important distinction between the two types of behavior: respondent and operant behavior. • He labeled unlearned reflexes, or stimulus - response (S-R) connections, respondent behavior. Examples of respondent behavior would include shedding tears while peeling onions and reflexively withdrawing one's hand from a hot stove. Skinner attached the label operant behavior to behavior that is learned when one "operates on" the environment to produce desired consequences. Also called the response - stimulus (R-S) • Positive Reinforcement: is the process of strengthening a behavior by contingently presenting something pleasing. Think carrot. • Negative Reinforcement: is the process of strengthening a behavior by contingently withdrawing something displeasing. Negative reinforcement, as the word reinforcement indicates, strengthens a behavior because it provides relief from an unpleasant situation. • Punishment: is the process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive. Ex. A manager assigning a tardy employee to a dirty job exemplifies of the first type of punishment. Docking a tardy employee's pay is an example of the second type of punishment. • Extinction: is the weakening of a behavior by ignoring it or making sure it is not reinforced. Ex. Getting rid of a former boyfriend or girlfriend by refusing to take his or her calls is an extinction strategy. • Schedules of Reinforcement: the timing of behavioral consequences can be even more important. (think of all of these as positive reinforcement) • Continuous Reinforcement: every instance of a target behavior is reinforced. Ex. When your iphone is operating properly, you are reinforced with a screen display and sound every time you turn it on. • Intermittent Reinforcement: involves reinforcement of some but not all instances of a target behavior. Four subcategories of intermittent schedules are fixed and variable ratio schedules and fixed and variable interval schedules. Reinforcement in ratio schedules is contingent on the number of responses observed. Interval reinforcement is tied to the passage of time. • 1. Fixed Ratio: piece-rate pay; bonuses tied to the sale of a fixed number of units. • 2. Variable Ratio: slot machines that pay off after a variable number of lever pulls; lotteries that pay off after the purchase of a variable number of tickets. • 3. Fixed Interval: hourly pay; annual salary paid on a regular basis. 4. Variable Interval: random supervisory praise and pats on the back for employees who have been doing a good job.

Advantages and Challenges of Diversity in the workplace (Social Categorization Theory vs. Information/Decision-Making Theory)

• Social Categorization Theory: similarity leads to liking and attraction thereby fostering a host of positive outcomes. If this were the case, one would expect that the more homogenous a work of group, the higher the member commitment and group cohesion, and the lower amount of interpersonal conflicts. People who were different from their work units in racial or ethnic background were less psychologically committed to their organizations and less satisfied with their careers. Lead to negative impressions toward people who were demographically different. The social categorization model supports the idea that homogeneity is better than heterogeneity in terms of affecting work-related attitudes, behavior, and performance. (NEGATIVE) • Information/Decision Making Theory: arrives at opposite predictions, proposing that diverse groups should outperform homogenous groups. Three positive effects of diverse works groups: diverse groups are expected to do a better job in earlier phases of problem solving because they are more likely to use their diverse backgrounds to generate a more compressive view of a problem. Second, the existence of diverse perspectives can help groups to brainstorm or uncover more novel alternatives during problem solving activities. Finally, diversity can enhance the number of contacts a group or work unit has at its disposal. This theory is proven to lead to higher productivity, better-quality decisions, and creativity and innovation

Four-Step Information Processing Model - Know the four basic stages, and managerial implications for the use of salient stimuli, schemas/scripts, memory and other aspects of social cognition.

• The four stage processing model is a basic information processing model. The first stage is selective attention/comprehension, encoding and simplification, storage and retention, and retrieval and response. • Stage 1: Selective Attention/Comprehension: People selectively perceive subsets of environmental stimuli. Attention is the process of becoming consciously aware of something or someone. People tend to pay attention to salient stimuli. Something is salient when it stands out from its context. One's needs and goals often dictate which stimuli is salient. Ex. McDonalds and Exxon. • Stage 2: Encoding and Simplification: Encoding is required; raw information is interpreted or translated into mental representations. Perceivers assign pieces of information to cognitive categories. Categories are generally designed by names, eg. dog, animal. People, events, and objects are interpreted and evaluated by comparing their characteristics with information contained in schemata (or schema in singular form). • A schema represents a person's mental picture or summary of a particular event or type or stimulus. A schema for an event, like going out to dinner in a restaurant, is called a script. Your memory for going out to dinner probably is quite similar to the restaurant script. Each schema contains information. • Stage 3: Storage and Retention: This phase involves storage of information in long-term memory. Long-term memory similarly consists of separate but related categories. (Ex. Apartment complex). Long-term memory is made up of three components containing categories of information about events, semantic materials, and people. • Event Memory: this compartment is composed of categories containing information about both specific and general events. • Semantic Memory: semantic memory refers to general knowledge about the world. In so doing, it functions as a mental dictionary of concepts. Each concept contains a definition and associated traits, emotional states, physical characteristics, and behaviors. • Person Memory: categories within this compartment contain information about a single individual or groups of people. • Stage 4: Retrieval and Response: people retrieve information from memory when they make judgments and decisions. Ex. Picking a professor, after retrieving from memory of your schemata-based impressions of the three professors, you select a good one who uses the case method and gives essay tests.

Douglas McGregor: Theory X Vs Theory Y

•Assumptions about human nature •Theory X: assumptions were pessimistic and negative, and according to McGregor's interpretation, typical of how managers traditionally perceived employees. •Theory Y: a modern and positive set of assumptions about people. He believed managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings. However, Theory Y is still distant vision in the American workplace.

Emotional Contagion and Emotional Labor

•Emotional Contagion: we can quite literally catch another person's mood. Good and bad moods are contagious and emotions can affect the workplace and customer satisfaction. •Emotional Labor: when employers ask employees to act a certain way. Research suggests that it can be detrimental to employees and may lead to exhaustion and burnout.

Emotional Intelligence (understand four competences involved in high EQ)

•Emotional Intelligence: the ability to understand and manage one's own moods and emotions and the moods and emotions of other people. Helps managers carry out their interpersonal roles. •Personal Competence: • Self-Awareness: aware of their own felt emotions and their impact. Tend to be somewhat high in self-monitoring. • Skill in regulating one's own emotions: they are also adaptable in situations and can display the most appropriate emotions to others in a way that is authentic and trustworthy. •Social Competence: • Ability to monitor others' emotions: very good at judging how they are affecting other people, and able to empathize and behave accordingly • Highly developed social skills: very good at managing a web of relationships and maintaining positive influence and inspiration with others

Edward Deming - TQM and Six Sigma

•TQM - total quality management, which is an organizational culture dedicated to training, continuous improvement, and customer satisfaction. •Four Common Principles: • 1. Do it right the first time to eliminate costly rework and product recalls • 2. Listen to and learn from customers and employees • 3. Make continuous improvement an everyday matter • 4. Build teamwork, trust, and mutual respect •Six Sigma - was developed by Bill Smith to eliminate defects and cutting waste. This was able to remove inefficiently. The Sigma refers to the Greek letter, which is used to measure how far something deviates from perfection and the "six" comes from the goal to be no more than six standard deviations away from that perfect measure. •Edward Deming's 85-15 Rule: when things go wrong there is an 85% chance the system (including management, machinery, and rules) is at fault. Only about 15% of the time is the individual employee at fault.