PRELIM 2 OB
Interpersonal Justice
The degree to which employees are treated with dignity and respect
Power tactics
The difference is that a formal organization chart shows how authority is supposed to flow, whereas a sociogram shows how resources really flow in an organization Nine distinct influence tactics: LEGITIMACY. Relying on your authority position or saying a request accords with organizational policies or rules. RATIONAL PERSUASION. Presenting logical arguments and factual evidence to demonstrate a request is reasonable. INSPIRATIONAL APPEALS. Developing emotional commitment by appealing to a target's values, needs, hopes, and aspirations. CONSULTATION. Increasing support by involving the target in deciding how to accomplish your plan. EXCHANGE. Rewarding the target with benefits or favors in exchange for acceding to a request. PERSONAL APPEALS. Asking for compliance based on friendship or loyalty. INGRATIATION. Using flattery, praise, or friendly behavior prior to making a request. PRESSURE. Using warnings, repeated demands, and threats. COALITIONS. Enlisting the aid or support of others to persuade the target to agree
Procedural Justice
The perceived fairness of the process used to determine the distribution of rewards. This term is concerned with how outcomes are distributed Doesn't matter as much when distributions are perceived to be fair. Only when outcomes are unfavorable people pay close attention to the process
Legitimate Power
The power a person receives as a result of his or her position in the formal hierarchy of an organization probably the most common access to one or more of the power bases is through legitimate power Legitimate power is broader than the power to coerce and reward. Specifically, it includes members' acceptance of the authority of a hierarchical position. We associate power so closely with the concept of hierarchy that just drawing longer lines in an organization chart leads people to infer the leaders are especially powerful
Hindsight bias
The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome EX: the original home video rental industry in which movies were rented at brick-and-mortar stores collapsed as online distribution outlets ate away at the market.48 Some have suggested that if rental companies like Blockbuster had leveraged their brand to offer online streaming and kiosks, they could have avoided failure. While that seems obvious now in hindsight, tempting us to think we would have predicted it, many experts failed to predict industry trends in advance
Risk aversion
The tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff FOR EXAMPLE, to offset the inherent risk employees accept in a commission-based wage, companies may pay commissioned employees considerably more than they do those on straight salaries. Second, risk-averse employees will stick with the established way of doing their jobs rather than take a chance on innovative methods. Continuing with a strategy that has worked in the past minimizes risk, but it will lead to stagnation. Third, ambitious people with power that can be taken away (most managers) appear to be especially risk averse, perhaps because they don't want to gamble with everything they've worked so hard to achieve
Confirmation bias
The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments aka seek out info that confirms our choices
Reputation in negotiation
The way other people think and talk about you, when negotiating need to be seen as trustworthy, to have integrity, and have a higher reputation
How Does Power Affect People
There is certainly evidence that there are corrupting aspects of power. Power leads people to place their own interests ahead of others' needs or goals. Why does this happen? Interestingly, power not only leads people to focus on their self-interests because they can, it also liberates them to focus inward and thus come to place greater weight on their own aims and interests. Power also appears to lead individuals to "objectify" others (to see them as tools to obtain their instrumental goals) and to see relationships as more peripheral Powerful people react—especially negatively—to any threats to their competence. People in positions of power hold on to it when they can, and individuals who face threats to their power are exceptionally willing to take actions to retain it whether their actions harm others or not. Those given power are more likely to make self-interested decisions when faced with a moral hazard People in power are more willing to denigrate others. Power also leads to overconfident decision making
Arbitrator
Third party with authority to dictate an agreement, always results in a settlement
What power can be motivating?
Referent power
Negotiation process
(1) preparation and planning (2) definition of ground rules (3) clarification and justification (you and the other party will explain, amplify, clarify, bolster, and justify your original demands) (4) bargaining and problem solving (5) closure and implementation
Causes of creativity
Creative potential Creative environment
What power can be damaging?
Coercive power
Reward Power
(Opposite of coercive power) Compliance achieved based on the ability to distribute rewards that others view as valuable These rewards can be financial—such as controlling pay rates, raises, and bonuses—or nonfinancial, including recognition, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories
Whistle blowers
-employees who report unethical or illegal actions of their employers -emphasis on the rights in decision making, respecting individuals goes with the ethical criterion is to make decisions consistent with fundamental liberties and privileges, as set forth in documents such as the U.S. Bill of Rights. An emphasis on rights in decision making means respecting and protecting the basic rights of individuals, such as the right to privacy, free speech, and due process
Power
A capacity that A has to influence the behavior of B so that B acts in accordance with A's wishes The greater B's dependence on A, the greater A's power in the relationship Power does not require goal compatibility, just dependence. Dependence is the most important aspect of power. Independence reduces power that others can wield over us A person can have power over you only if he or she controls something you desire
Individualistic countries see power as ___
A means of advancing personal ends
Collectivistic countries see power as ___
A means of helping others, see it in social terms
Coercive Power
A power base that is dependent on fear of the negative results from failing to comply At the organizational level, A has coercive power over B if A can dismiss, suspend, or demote B, assuming B values the job Coercive power comes also from withholding key information. People in an organization who have data or knowledge others need can make others dependent on them
Perception
A process by which we organize and interpret sensory impressions in order to give meaning to their environment
Negotiation
A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them like negotiating over the price of a car, every negotiation in organizations also affects the relationship between negotiators and the way negotiators feel about themselves.28 Depending on how much the parties are going to interact with one another, sometimes maintaining the social relationship and behaving ethically will be just as important as achieving an immediate outcome of bargaining
Anchoring bias
A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information
Equity theory
A theory that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities Employees therefore take the ratio of their Outcomes (O) to their Inputs (I) and compare it to the ratio of others, usually someone similar like a coworker or someone doing the same job Based on equity theory, employees who perceive inequity will make one of six choices: Change inputs (exert less effort if underpaid or more if overpaid). Change outcomes (individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of lower quality). Distort perceptions of self ("I used to think I worked at a moderate pace, but now I realize I work a lot harder than everyone else"). Distort perceptions of others ("Mike's job isn't as desirable as I thought"). Choose a different referent ("I may not make as much money as my brother-in-law, but I'm doing a lot better than my Dad did when he was my age"). Leave the field (quit the job).
Social network analysis
A tool for assessing exchange of resources and dependencies within an organization. This method examines patterns of communication among organizational members to identify how information flows between them Within a social network, or connections between people who share professional interests, each individual or group is called a node, and the links between nodes are called ties. When nodes communicate or exchange resources frequently, they are said to have very strong ties. Other nodes that are not engaged in direct communication with one another achieve resource flows through intermediary nodes. In other words, some nodes act as brokers between otherwise unconnected nodes A sociogram serves as a graphical illustration of the associations among individuals in a social network, which functions like an informal version of an organization chart The difference is that a formal organization chart shows how authority is supposed to flow, whereas a sociogram shows how resources REALLY flow in an organization How to implement a social network analysis: keep track of the flow of emails, document sharing across departments, HR information systems
Consistency
An observer looks for consistency in a person's actions. Does the person respond the same way over time? Coming in 10 minutes late for work is not perceived the same for an employee who hasn't been late for several months as for an employee who is late three times a week. The more consistent the behavior, the more we are inclined to attribute it to internal causes
Organizational justice
An overall perception of what is fair in the workplace, composed of distributive, procedural, informational, and interpersonal justice Organizational justice is concerned broadly with how employees feel authorities and decision makers at work treat them
Behavioral ethics
Analyzing how people actually behave when confronted with ethical dilemmas While ethical standards exist collectively in societies and organizations, and individually in the form of personal ethics, we do not always follow ethical standards promoted by our organizations, and we sometimes violate our own standards
Sexual harassment
Any unwanted activity of a sexual nature that affects an individual's employment and creates a hostile work environment Generally, sexual harassment is more prevalent in male-dominated societies Data from the EEOC suggest that sexual harassment is decreasing: sexual harassment claims now make up 10 percent of all discrimination claims, compared with 20 percent in the mid-1990s. Of this percentage, though, claims from men have increased from 11 percent of total claims in 1997 to 17.5 percent today.39 Sexual harassment is disproportionately prevalent for women in certain types of jobs. In the restaurant industry, for instance, 80 percent of female waitstaff in a study reported having been sexually harassed by coworkers or customers, compared to 70 percent of male waitstaff
Dependence
B's relationship to A when A possesses something that B requires Dependence is based on alternatives that B perceives and the importance B places on the alternative(s) A controls
Formal power
Based on position in an organization, comes from the ability to coerce of reward, formal authority, the extent to which an individual can control others' outcomes
Randomness error
Believe we can predict the outcome of random events EX: Decision making suffers when we try to create meaning from random events, particularly when we turn imaginary patterns into superstitions.43 These can be completely contrived ("I never make important decisions on Friday the 13th") or they can evolve from a reinforced past pattern of behavior (wearing a lucky T-shirt)
Bounded rationality
Cannot formulate and solve complex problems with full rationality, construct simplified models that extract essential features One outcome of bounded rationality is a tendency to satisfice, or seek solutions that are satisfactory and sufficient
Rational
Characterized by making consistent, value-maximizing choices within specified constraints
Personal Power
Comes from an individual's unique characteristics, two bases: expertise and respect/admiration of others Personal power is not mutually exclusive from formal power, but it can be independent
Rational decisions follow a six-step rational decision-making model
DEF: A decision-making model that describes how individuals should behave in order to maximize some outcome; model assumes decision maker has complete information, is able to identify all relevant options in an unbiased manner, and chooses the option with the highest utility. IN REALITY, we don't follow the rational model. SO most significant decisions are made by judgment, rather than by a defined prescriptive model 1. Define the problem. 2. Identify the decision criteria. 3. Allocate weights to the criteria. 4. Develop the alternatives. 5. Evaluate the alternatives. 6. Select the best alternative.
Utilitarianism
DEF: A system in which decisions are made to provide the greatest good for the greatest number Making decisions solely on the basis of outcomes, dominates decision making
Contrast effect
DEF: Evaluation of a person's characteristics that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics We don't evaluate a person in isolation. Our reaction is influenced by other events, can distort perception
Stereotyping
DEF: Judging someone on the basis of one's perception of the group to which that person belongs
Self-serving bias
DEF: The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors Attribute ambiguous information as good and accept positive feedback, but reject negative feedback Self-serving biases may be less common in East Asian cultures, but evidence suggests they still operate there
Halo effect
DEF: The tendency to draw a general impression about an individual on the basis of a single characteristic Draw an impression about an individual on the basis of a single characteristic and assume other traits about them based on one trait EX: If you knew someone was, say, gregarious, what else would you infer? You probably wouldn't say the person was introverted, right? You might assume the person was loud, happy, or quick-witted, when in fact gregarious does not include those other attributes
Selective perception
DEF: The tendency to selectively interpret what one sees on the basis of one's interests, background, experience, and attitudes Select according to our interests or what stands out on what to observe EX: you are more likely to notice cars like your own, and your boss may reprimand some people, but not others, for doing the same thing
Fundamental attribution error
DEF: The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others Make judgements about the behavior of other people and underestimate the influence of external factors and overestimate internal factors EX: can explain why a sales manager attributes the poor performance of her sales agents to laziness rather than to a competitor's innovative product line
Ensuring justice
Depends on the motivation of each manager
Context
EXAMPLE: At a club on Saturday night you may not notice someone "decked out." Yet that same person so attired for your Monday morning management class would certainly catch your attention. Neither the perceiver nor the target has changed between Saturday night and Monday morning, but the situation is different.
Power doesn't affect everyone in the same way
First, the toxic effects of power depend on the wielder's personality. Research suggests that if you have an anxious personality, power does not corrupt you because you are less likely to think that using power benefits yourself Second, the corrosive effect of power can be contained by organizational systems Third, we have the means to blunt the negative effects of power. One study showed that simply expressing gratitude toward powerful others makes them less likely to act aggressively against us Finally, remember the saying that those with little power abuse what little they have? There seems to be some truth to this in that the people most likely to abuse power are those who start low in status and gain power. Why is this the case? It appears that having low status is threatening, and the fear this creates is used in negative ways if power is given later
Some suggestions for how to avoid falling into these biases and errors
Focus on Goals Look for Information That Disconfirms Your Beliefs Don't Try to Create Meaning out of Random Events Increase Your Options
Integrative Bargaining
GOAL: Expand the pie so that both parties are satisfied MOTIVATION: Win-win FOCUS: Interests ("Can you explain why this issue is so important to you?") INTERESTS: Congruent INFORMATION SHARING: High (Sharing information will allow each party to find ways to satisfy interests of each party) DURATION OF RELATIONSHIP: Long term
Distribution bargaining
GOAL: Get as much of the pie as possible MOTIVATION: Win-lose FOCUS: Positions ("I can't go beyond this point on this issue") INTERESTS: Opposed INFORMATION SHARING: Low (Sharing information will only allow other party to take advantage) DURATION OF RELATIONSHIP: Short term
Dependence increases when a resource you control is important, scarce, and non substitutable
IMPORTANCE: If nobody wants what you have, it's not going to create dependence. However, note that there are many degrees of importance, from needing the resource for survival to wanting a resource that is in fashion or adds to convenience SCARCITY: We see the scarcity-dependence relationship in the power situation of employment. When the supply of labor is low relative to demand, workers can negotiate compensation and benefits packages that are far more attractive than those in occupations with an abundance of candidates NONSUBSTITUTABILITY: The fewer viable substitutes for a resource, the more power a person controlling that resource has
Gender differences in decision making
In stressful situations, men make more risky decision and women's decision making improves
Expert Power
Influence based from expertise, special skills or knowledge It is generally acknowledged that physicians have expertise and hence expert power: most of us follow our doctor's advice. Computer specialists, tax accountants, economists, industrial psychologists, and other specialists wield power as a result of their expertise
Referent Power
Influence based on identification with a person who has desirable resources or personal traits If I like, respect, and admire you, you can exercise power over me because I want to please you helps explain, for instance, why celebrities are paid millions of dollars to endorse products in commercials. Marketing research shows people such as LeBron James and Tom Brady have the power to influence your choice of athletic shoes and credit cards
The more consistent a behavior it is, the more it is likely to be due to ___ causes
Internal
Important insight about power
It is not so much that power corrupts as it reveals what we value Supporting this line of reasoning, another study found that power led to self-interested behavior only in those with a weak moral identity (the degree to which morals are core to someone's identity). In those with a strong moral identity, power enhanced their moral awareness and willingness to act
Justice outcomes
Justice matters a great deal to employees. When treated fairly, employees respond in a number of positive ways
Mediator
Neutral third party who facilitates a negotiated solution using reasoning and persuasion, often used in labor-management negotiations, are effective, most effective under moderate levels of conflict and mediator must be perceived as neutral
Overconfidence bias
Overconfident about our abilities and the abilities of others, those with the least abilities are most likely to overestimate Individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability.33 There's also a negative relationship between entrepreneurs' optimism and performance of their new ventures: the more optimistic, the less successful
Distributive Justice
Perceived fairness of the amount and allocation of rewards among individuals. The term is concerned with the fairness of outcomes, such as the pay and recognition that employees receive With teams: Differentiating the pay of team members on the basis of their inputs (how well they performed in games) attracted better players to the team, made it more likely they would stay, and increased team performance
Target
The characteristics of the target also affect what we perceive. Because we don't look at targets in isolation, the relationship of a target to its background influences perception, as does our tendency to group close things and similar things together.
Organizational Constraints
Performance Evaluation Systems: Managers are influenced by the criteria on which they are evaluated. If a division manager believes the manufacturing plants under his responsibility are operating best when he hears nothing negative, the plant managers will spend a good part of their time ensuring that negative information doesn't reach him Reward Systems: The organization's reward systems influence decision makers by suggesting which choices have better personal payoffs. For example, if the organization rewards risk aversion, managers are more likely to make conservative decisions Formal Regulations: All but the smallest organizations create rules and policies to program decisions and get individuals to act in the intended manner. In doing so, they limit decision choices System-Imposed Time Constraints: Almost all important decisions come with explicit deadlines. For example, a report on new product development may have to be ready for executive committee review by the first of the month. Such conditions often make it difficult, if not impossible, for managers to gather all information before making a final choice Historical Precedents: Decisions aren't made in a vacuum; they have context. For example, it's common knowledge that the largest determinant of the size of any given year's budget is last year's budget. Choices made today are largely a result of choices made over the years
Intuitive decision making
Perhaps the least rational way of making decisions, an unconscious process created out of distilled experience Intuitive decision making occurs outside conscious thought; relies on holistic associations, or links between disparate pieces of information; is fast; and is affectively charged, meaning it engages the emotions
Which form of power is most effective?
Personal Power
Factors that determine how individuals negotiate
Personality (despite assumptions, overall agreeableness is weakly related to negotiation outcomes. Self-efficacy, however, is one individual-difference variable that consistently seems to relate to negotiation outcomes) Mood/emotion (anger can induce concessions if you have power, or it can hurt you through "hardball" reactions and "faked" reactions. ALSO Anger has a cultural context. For instance, one study found that when East Asian participants showed anger, it induced more concessions than when the negotiator expressing anger was from the United States or Europe, perhaps because of the stereotype of East Asians as refusing to show anger. ANOTHER relevant emotion is disappointment. Generally, a negotiator who perceives disappointment from his or her counterpart concedes more. Anxiety also may impact negotiation. For example, one study found that individuals who experienced more anxiety about a negotiation used more deceptions in dealing with others.43 Another study found that anxious negotiators expect lower outcomes, respond to offers more quickly, and exit the bargaining process more quickly, leading them to obtain worse outcomes. LASTLY, researchers have found that negotiators who express positive and negative emotions in an unpredictable way extract more concessions because this behavior makes the other party feel less in control) Culture (people negotiate more effectively within cultures than between them. For successful cross-cultural negotiations, it is especially important that the negotiators be high in openness. Because emotions are culturally sensitive, negotiators need to be especially aware of the emotional dynamics in cross-cultural negotiation) Gender (Men tend to place a higher value on status, power, and recognition, whereas women tend to place a higher value on compassion and altruism. Moreover, women tend to value relationship outcomes more than men, and men tend to value economic outcomes more than women)
Individual differences also create deviations from the rational model
Personality: pecific facets of conscientiousness—particularly achievement striving and dutifulness—may affect escalation of commitment. SO achievement-oriented people hate to fail, so they escalate their commitment, hoping to forestall failure. Dutiful people, however, are more inclined to do what they see as best for the organization, so they are less likely to escalate their commitment. Second, achievement-striving individuals appear more susceptible to hindsight bias, perhaps because they have a need to justify their actions Gender: In stressful situations, it appears that men become more egocentric and make more risky decisions, while women become more empathetic and their decision making improves General Mental Ability: Smart people are just as likely to fall prey to anchoring, overconfidence, and escalation of commitment; probably because being smart doesn't alert you to the possibility you're too confident or emotionally defensive. It's not that intelligence never matters. Once warned about decision-making errors, more intelligent people learn more quickly to avoid them Cultural Differences: Help us understand, for instance, why managers in Egypt make decisions at a much slower and more deliberate pace than their U.S. counterparts. Second, while rationality is valued in North America, that's not true elsewhere. A North American manager might make a decision intuitively but know it's important to appear to proceed in a rational fashion because rationality is highly valued in the West. In countries such as Iran, where rationality is not paramount to other factors, efforts to appear rational are not necessary ALSO some cultures emphasize solving problems, while others focus on accepting situations as they are. The United States falls in the first category; Thailand and Indonesia are examples of the second. Because problem-solving managers believe they can and should change situations to their benefit, U.S. managers might identify a problem long before their Thai or Indonesian counterparts would choose to recognize it as such ALSO decision making in Japan, a collectivistic society, is much more group-oriented than in the United States, an individualistic society. The Japanese value conformity and cooperation, so before Japanese CEOs make an important decision, they collect a large amount of information to use in consensus-forming group decisions Nudging: Commercials represent one of the most outright forms of an organization's attempt to influence our perceptions (of a product) and our decision (to acquire that product). Nudging has also been used positively in the development of corporate social responsibility initiatives to change people's expectations for organizations
How are power and leadership different?
Power does not require goal compatibility, just dependence. Leadership requires some congruence between the goals of the leader and those being led Leadership research focuses on the downward influence on followers and minimizes the importance of lateral and upward influence patterns. Power research takes all factors into consideration Leadership research often emphasizes style/downward influence. In contrast, the research on power focuses on tactics for gaining compliance Leadership concentrates on the individual leader's influence, while the study of power acknowledges that groups as well as individuals can use power to control other individuals or groups
Using the power tactics
Rational persuasion, inspirational appeals, and consultation tend to be the most effective, especially when the audience is highly interested in the outcomes of a decision process. The pressure tactic tends to backfire and is typically the least effective of the nine You can increase your chance of success by using two or more tactics together or sequentially, as long as your choices are compatible. For example, using ingratiation and legitimacy together can lessen negative reactions, but only when the audience does not really care about the outcome of a decision process or the policy is routine Additionally, rational persuasion is the only tactic effective across organizational levels. Inspirational appeals work best as a downward-influencing tactic with subordinates. When pressure works, it's generally downward only. Personal appeals and coalitions are most effective as lateral influence. Other factors relating to the effectiveness of influence include the sequencing of tactics, a person's skill in using the tactic, and the organizational culture In general, you're more likely to be effective if you begin with "softer" tactics that rely on personal power, such as personal and inspirational appeals, rational persuasion, and consultation. If these fail, you can move to "harder" tactics, such as exchange, coalitions, and pressure, which emphasize formal power and incur greater costs and risks.19 A single soft tactic is more effective than a single hard tactic, and combining two soft tactics or a soft tactic and rational persuasion is more effective than any single tactic or combination of hard tactics As we mentioned, the effectiveness of tactics depends on the audience. People especially likely to comply with soft power tactics tend to be more reflective and intrinsically motivated; they have high self-esteem and a greater desire for control. Those likely to comply with hard power tactics are more action-oriented and extrinsically motivated, and are more focused on getting along with others than on getting their own way
Relationships in negotiation
Repeated negotiations also facilitate integrative problem solving. This occurs partly because people begin to see their negotiation partners in a more personal way over time and come to share emotional bonds.59 Repeated negotiations also make integrative approaches more workable because a sense of trust and reliability has been built up
Which bases of power are most effective?
Research suggests the personal sources of power are most effective Both expert and referent power are positively related to employees' satisfaction with supervision, their organizational commitment, and their performance, whereas reward and legitimate power seem to be unrelated to these outcomes. One source of formal power, coercive power, can be damaging Referent power can be a powerful motivator. Consider Steve Stoute's company, Translation, which matches pop-star spokespersons with corporations that want to promote their brands. The success of these well-known companies attests to Stoute's expectation that the buying public identifies with and emulates his spokespersons and therefore thinks highly of the brands they represent. Stoute's business seems to be all about referent power, using the credibility of artists and performers to reach youth culture
Escalation of commitment
Staying with a decision even if there is evidence it is wrong, occurs most when individuals view themselves as responsible for the outcome and for achievement oriented people We usually think of escalation of commitment as ungrounded. However, persistence in the face of failure is responsible for a great many of history's greatest feats, including the building of the Pyramids, the Great Wall of China, the Panama Canal, and the Empire State Building among others. SOLUTION IS a balanced approach includes frequent evaluation of the spent costs and whether the next step is worth the anticipated costs. As such, what we want to combat is the tendency to automatically escalate commitment.
Availability bias
Tendency to base judgements on readily available info People tend to fear flying more than driving in a car. But if flying on a commercial airline were as dangerous as driving, the equivalent of two 747s filled to capacity would crash every week, killing all aboard. Because the media give more attention to air accidents, we tend to overstate the risk of flying and understate the risk of driving Availability bias can also explain why managers give more weight in performance appraisals to recent employee behaviors than to behaviors of 6 or 9 months earlier
Political skill
The ability to influence others in such a way as to enhance one's objectives When an organization has fairly applied rules, free of favoritism or biases, political skill is actually negatively related to job performance ratings People who fit the culture of the organization tend to obtain more influence. Specifically, extraverts tend to be more influential in team-oriented organizations, and highly conscientious people are more influential in organizations that value working alone on technical tasks. People who fit the culture are influential because they can perform especially well in the domains deemed most important for success
Fixed pie
The belief that there is only a set amount of goods or services to be divvied up between the parties
BATNA
The best alternative to a negotiated agreement; the least the individual should accept Determine your BATNA once you've gathered your information (as part of the preparation and planning component) Your BATNA determines the lowest value acceptable to you for a negotiated agreement. Any offer you receive that is higher than your BATNA is better than an impasse. Conversely, you shouldn't expect success in your negotiation effort unless you're able to make the other side an offer it finds more attractive than its BATNA
Informational Justice
The degree to which employees are provided truthful explanations for decisions RELATING TO INTERACTIONS BETWEEN MANAGERS AND EMPLOYEES
Cultural Preferences for Power Tactics
Those from individualistic countries tend to see power in personalized terms and as a legitimate means of advancing their personal ends, whereas those in collectivistic countries see power in social terms and as a legitimate means of helping others. For example, Managers in the United States seem to prefer RATIONAL APPEAL, whereas Chinese managers may prefer COALITION TACTICS. Reason-based tactics are consistent with the U.S. preference for direct confrontation, and rational persuasion to influence others and resolve differences, while coalition tactics align with the Chinese preference for meeting difficult or controversial requests with indirect approaches
Attribution Theory
Tries to explain the ways we judge people differently, depending on the meaning we attribute to behavior (what you make of someone's actions). When we observe an individual's behavior, we attempt to determine whether it was internally or externally caused; DEPENDS ON distinctiveness, consensus, and consistency -internally caused behaviors are those an observer believes to be under the personal behavioral control of another individual -Externally caused behavior is what happens when the situation forced the individual to do so
Three Ethical Decision Criteria
Utilitarianism Make decisions consistent with fundamental liberties and privileges, as set forth in documents such as the U.S. Bill of Rights A third criterion is to impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs
Heuristics
We deal with the unmanageable number of stimuli of our complex world by using stereotypes or shortcuts called heuristics to make decisions quickly. EX: it does make sense to assume that Allison from finance will be able to help you figure out a forecasting problem
Culture and Justice
We may think of justice differences in terms of Hofstede's cultural dimensions (see Chapter 5). One large-scale study of over 190,000 employees in 32 countries and regions suggested that justice perceptions are most important to people in countries with individualistic, feminine, uncertainty-avoidance, and low power-distance values.74 Organizations can tailor programs to meet these justice expectations. For example, in countries that are highest in individualism, such as Australia and the United States, competitive pay plans and rewards for superior individual performance may enhance feelings of justice. In countries dominated by uncertainty avoidance, such as France, fixed-pay compensation and employee participation may help employees feel more secure. The dominant dimension in Sweden is femininity, so relational concerns are considered important there. Swedish organizations may therefore want to provide work-life balance initiatives and social recognition. Austria, in contrast, has a strong low power-distance value. Ethical concerns may be foremost to individuals in perceiving justice in Austrian organizations, so organizations there may want to openly justify inequality between leaders and workers and provide symbols of ethical leadership
Consensus
When everyone who faces a similar situation responds the same, high consensus → external attribution
How do you get the best outcome?
When negotiating for someone other than yourself or vice versa
Perceiver
When you look at a target, your interpretation of what you see is influenced by your personal characteristics—attitudes, personality, motives, interests, past experiences, and expectations. In some ways, we hear what we want to hear1 and see what we want to see—not because it's the truth, but because it conforms to our thinking
Distinctiveness
Whether an individual displays different behaviors in different situations, if behavior is unusual we will give it an external attribution
Problem
a discrepancy exists between the current state of affairs and a desired state
Individuals...
attribute their own success to internal factors, and blame failure on external factors
Decisions
choices among two or more alternatives
Three stage model of creativity
creative behavior (the core of the model) has causes (predictors of creative behavior) and effects (outcomes) -Problem formulation: identify a problem with an unknown solution -Information gathering: knowledge is sought, possible solutions to a problem occur in the mind -Idea generation: develop solutions from information -Idea evaluation: choose from the ideas we have generated
Which powers are positively related to employee satisfaction?
expert power and referent power
Perception of others is formed by
first impressions and small cues that don't have evidence
Justice
impose and enforce rules fairly
One of the best things you can do when engaged in distributive bargaining...
is to make the first offer and make it an aggressive one. This is because the first offer shows power, and another reason this is a good strategy is the anchoring bias
what you see is influenced by
personal characteristics and the characteristics of the target
CSR
public pressure on organizations to behave responsibly, ethics with utilitarianism
Traditional models of decision making derived from economics
rational decision making requires that emotions are divorced from cognitive reasoning
Once warned about errors...
smarter people can learn to avoid them more quickly
Distributive and procedural justice are more strongly associated with ___, while informational and interpersonal justice are more strongly associated with ___
task performance citizenship behavior
Because the greater B's dependence on A, the more power A has over B...
the more you can expand your own options, the less power you place in the hands of others. This explains why most organizations develop multiple suppliers rather than give their business to only one. It also explains why so many people aspire to financial independence. Independence reduces the power others can wield to limit our access to opportunities and resources
Staking out the bargaining zone
the target point that defines what the negotiator would like to achieve the resistance point marks the lowest acceptable outcome -- the point beyond which the party would break off negotiations rather than accept a less favorable settlement The area between these two points makes up each party's aspiration range. As long as there is some overlap between A's and B's aspiration ranges, there exists a settlement range in which each one's aspirations can be met
Conciliator
trusted third party who provides an informal communication link, very similar to mediator
