quiz 4 mgt, Quiz 3 MGT

Two Factor theory Herzberg Theory

Motivators- positively predict job satisfaction 1. self actualization 2. esteem Hygiene factors- negatively predict job satisfaction 3. belonging 4. safety 5. psychological

Personal Motivators

Needs and values Mccellands three need theory

Negotiation

An interaction aimed at resolving a dispute, agreeing upon a course of action, bargaining, or crafting outcomes to satisfy various interests.

Strong vs Weak

Both are direct ties Weak ties are more likely too land you a job Strong -Similar interests/ attitudes/ demographics • Know each other well •Interact frequently • Closely related (e.g. sibling, parent, spouse) Weak (accquantaince) • Not similar • Don't know each other well •Interact rarely • More distantly related (e.g. cousin, acquaintance)

Problems with intrinsic motivation

Crowding out: when the extrinsic reward got taken away the quality of drawings got worse Paying too little: pay enough or dont pay at all. small incentives led to worse performance than no payment

Types of Network Ties

Direct vs Indirect Direct= people you personally know Indirect= people who you dont know directly but they know someone that you know. (mutual friend) Strong vs Weak (both direct ties)

Universal Motivators: Needs

Maslows Hierarchy Self Actualization (achieving individual potential) Esteem (from self and others) Belonging (being apart of a group, love, affection) Safety (shelter, clothes, removal from danger) Psychological (health, food, sleep)

When should you negotiate?

More often than you think. (always?) •If you don't ask, you won't get it (don't negotiate against yourself!) • You are often negotiating with people/orgs who are used to it and expect it • Winner's Curse: they may actually be unhappy if you accept their first offer • "Women Don't Ask" - not everyone is equally likely to negotiate, with big ramifications • If it's hard, do it for someone else!

Coordination Recap

Process loss prevents groups from realizing the potential of all of their individual members • Motivation and ability losses: individuals put in less effort and perform worse in groups • Coordination loss: even when individuals are working in a way that would lead to good individual performance, groups may fail to capitalize • Solutions: maximize cohesion and trust, minimize performance pressure, make sure to consider coordination/integration

Extrinsic + Intrinsic

Remember the finding about how people underestimate the importance of intrinsic motivation for others? One possible consequence of focusing too much on extrinsic motivation is undermining ("crowding out") intrinsic motivation.

Motivation Loss

Social loafing/free riding: people exert less effort when working together • Diffusion of responsibility: people feel less accountable, figure someone else will do it • Kitty Genovese case • People don't feel like their effort will make as much of a difference (remember Expectancy Theory?) • Voting • People don't want to be the "sucker" working harder than everyone else

Coordination loss Solutions

Solutions: • Think about integration! Create formal integrator or "big picture" role • Create shared goals or culture to focus everyone on the big picture • Planning is important; don't be in too much of a hurry to jump in • Build systems of communication and a common language; ask for clarification

Division of Labor

Splitting up tasks into subordinate tasks, which can then be performed by multiple individuals. Benefits: • Motivation: Matching people to things they are good at or find interesting • Flexibility: allows for slack when needed • Specialization: workers can get really good at their area of expertise • Efficiency: avoids redundancies Adam Smith's pin factory

Values

Stable life goals that people have, reflecting what is most important to them • Terminal values: end states that we strive to accomplish (e.g. freedom, equality, happiness) •Instrumental values: the right way to behave (e.g., honesty, ambition, loyalty) • Both employers and (potential) employees are very concerned with value/culture fit (ASA) -Evidence on interviews: Organizations become more homogenous over time

Networks and Power

Your position in a network is a resource that can affect your degree of power. • Centrality: Are you in the middle, with lower degree connections? Or at the fringe? • Are you bridging "fills a structural holes"? How strong are your weak ties? Can you count on them? • How diverse are your ties?

Motivation Recap

• Motivation comes from people's needs; need theories can tell us what motivates people beyond the obvious (e.g. growth/self-actualization) • People seek a fit between their personal values/ motivation and their jobs • But careful about FAE and other caveats related to personality... • This can make organizations more homogeneous overtime (A-S-A) • You can mess up intrinsic motivation if you get extrinsic rewards wrong • You can reward too much and crowd out intrinsic (behavior will go away once you stop rewarding) • You can reward too little and signal low importance

Persuasion Recap

• Persuading people can be more difficult than it seems, due to reactance, defensiveness, and people's desire for consistency. • Use the principles of similarity, liking, reciprocity, social proof, scarcity, and authority to persuade individuals. • When you are in the minority in a group: • Stay calm and consistent • Use "pull" tactics to build bridges • Look for and speak to allies at the periphery

Obstacles to Effective Coordination

• Segmentation focus: dividing labor without even thinking about how to integrate • LegoMan: problems with joints • Component focus: thinking about your part and losing sight of the big picture • Group project: contradictory statements • Failures of communication • Poor perspective taking (coin tapping study; exams)

Motivation Loss Solutions

• Solutions: • Build group commitment and trust • Create individual rewards for effort (e.g., recognition and feedback) • Division of labor and accountability can help

Group Process

• The processes groups use affect their productivity and effectiveness • Actual productivity = Maximum productivity - Process Loss • Types of process loss: • Motivation loss: individuals don't put in as much effort when working in a group • Ability loss: individuals perform worse in groups • Coordination loss: groups fail to integrate the contributions of individuals

Ability loss solutions

• Try to reduce pressure, especially if work is difficult • Provide rewards for improvement (e.g., recognition) • Divide labor so people can do what they're good at

Why persuasion is hard

• What we see as good reasons are often not convincing to people who don't already agree - The upfront hard sell - All of those great facts • People don't want to be convinced - Reactance: don't pressure me! -Defensiveness: I don't want to be wrong -Preference for consistency: I don't want to be flaky

Coordination

• Working together effectively in teams: • How do you split up the work? • How do you make a team work together? Groups naturally divide labor, but they do not naturally practice coordination. Organizing the different elements of a group or task so as to enable them to work together effectively.

Overall approach to persuasion

• You need to either alleviate those concerns... • Or play on even bigger ones • Listen and be open to compromise; understand what is at stake for them and what they are resisting letting go of • Relationships and emotions matter a lot

What should you offer (or counter)?

•BATNA: Best Alternative To Negotiated Agreement • The minimum you will accept (eventually): your reservation price (often equal to your BATNA) • Figure it out, then forget it • What you are aiming for: your target price (based on the other person's BATNA, which is THEIR reservation price). • Figure it out and think of it always!!!

Structure of a Negotiation

•Congruent aspects: A and B prefer the same outcomes on a given issue •Distributive aspects: A and B have opposite preferences and the same importance on a given issue •Integrative aspects: issue X is more important to A; Y is more important to B

Extrinsic Motivators

•Job Benefits •Pay/Salary •Job Security •Status/Praise from Co-workers

How to find integrative solutions

•Listen for information about how much the other person values things, not just what outcomes they want •In your preparation, spend time on: • perspective-taking • generating a list of ALL the different issues •Share information, and build trust •Negotiate packages, not single issues •Don't compromise by "splitting the difference"

Intrinsic Motivators

•To learn something new •Develop new skills •To accomplish something worthwhile •To feel good about myself

When you are the minority

• BE CONSISTENT • Appear extremely rational and calm; earnest • Focus on attacking the issue, not the majority group • Understand and listen to your audience • Look for allies who are on the periphery; Be aware of when potential allies are listening (even if you are not addressing them directly) better to have a private vote

Ability Loss

• Distraction: people get distracted by socializing, group dynamics, or overall stimulation • Audience effects: if work is difficult, having other people watch you makes it even worse • (But if you're already good at it, you get even better with an audience) • Because of the extra stimulation

To figure out your first offer in a negotiation...

• Find your target price • Not your reservation price or your BATNA • Ask for a little more than that. (Why a little more?) • Not so aggressive that it will suggest there is no point in negotiating • But more aggressive than you probably think

Network Density

• More important! • Connections among other people in the network • # of actual connections / # of possible connections given network size • "Closed" (denser) vs. "open" (less dense)

ASA

- attraction: what company culture attracts you to the job - selection: are you seen as a good fit or values - Attrition- turnover rate based on culture and values of a company

Alderfers ERG theory

- growth (self actualization) - relatedness ( Esteem and belonging) - existence ( safety and psychological)

How customers can rally your troops

- self actualization - belonging - esteem example: inspiring people by connecting them with end users

Coordination Loss

1. Division of labor happens naturally, but not always in the ideal way. • Should be consistent with criteria of evaluation • E.g., sections of the project, not numbers of pages • Should reflect expertise/motivation, in order to effectively help with motivation and ability losses 2. Obstacles to effective coordination:

What are social networks

A system of interconnected social actors (individuals, groups, organizations, ...) Can be represented with a map of relationships. Examples: • Networks among people (friendship, enmity, advice giving, romantic connection, etc) • Contractual relationships among organizations (buyersupplier contracts, joint ventures, etc) • "Informal" relationships among organizations through people (shared board members, employee mobility, etc) • Shared memberships that suggest connections (committee memberships, trade associations, co-authorships, etc)

Motivating with SMART goals

why? self actualization, esteem SMART - specific - measurable - ambitious -realistic - Time bound

Push vs Pull tactics

"Pull" tactics • Attract: find common ground • Bridge: involve, listen, disclose "Push" tactics • Persuade, propose, reason • Assert: evaluate, pressure, use incentives

Should you make the first offer in a negotiation?

YES.* • Even if it doesn't follow the usual script! • If you have enough information to come up with a good offer. • If you don't have enough information, try to find more information. • Remember: anchoring bias? • If the other person makes the first offer, ignore it and make your own, original first offer.

Social Networks Recap

Your network gives you power, depending on... • Density and diversity (not just size) • Centrality (generally, but see the reading) • Connecting people across boundaries or "structural holes" • How well you've maintained your weak ties Networking doesn't have to be yucky. It brings a lot of value to you, and also to your broader community.

How customers can rally your troops

1. a. Why leaders do not think of having end users inspire employees (and what they do instead) - Relatively few companies seize opportunities to create motivating connections between employees and end users. Many leaders are simply unaware of those opportunities; others may be concerned about abdicating their roles as visionaries. Instead the leaders of the companies try to motivate/inspire the employees themselves. b. What it means/looks like to outsource inspiration to end users -Outsourcing inspiration to end users focuses employees' attention squarely on the ultimate impact of their products and services. Outsourcing inspiration to end users can also keep the content fresh: Leaders can call on multiple customers to deliver distinct messages. - have found that employees generally see end users as more credible than leaders as sources of inspiration. When leaders attempt to deliver inspiring messages, many employees react with skepticism, questioning whether leaders are just trying to get them to work harder. - To outsource inspiration effectively, leaders must build and leverage their networks to find end users, collect their stories, invite them to the organization, introduce them to employees, and recognize workers' contributions. - How they do this: 1. Identify past, present, and future end users. 2. Dig up feedback from past end users. 3. Seek out new stories. 4. Set up events and meetings where end users can share their experiences. 5. Turn employees into end users. 6. Find end users inside the organization. 7. Engage employees who currently do low-impact work. 8. Spread the message 9. Recognize high-impact contributions. c. Three mechanisms explaining why end users are effective at inspiring employees 1. Impact: Employees see for themselves how their work benefits others. 2. appreciation: Employees come to feel valued by end users. 3. empathy: Employees develop a deeper understanding of end users' problems and needs and thereby become more committed to helping them.

Mccellands three need theory

1. achievement 2. power 4. affiliation We all need all of them, but we each have dominant ones • Need for achievement and autonomy • Optimal for a manager= high power low affiliation • Same issues as other personality theories

Persuading Principals

1. liking 2. reciprocity 3. social proof 4. consistency 5. authority 6. scarcity

The role of self perception

Extrinsic - external reward - self perception is "i do this because im paid to" Intrinsic - no external reward - self perception is "i do this because i enjoy it"

Persuasion

Guiding people to adopt an attitude, behavior or belief through communication. (Selling, yes, but also learning, listening, and negotiating) Giving lots of facts/arguments/logic often doesn't work. Why?

Network Composition (Diversity)

How many different types of people you know • Also more important than size • Think broadly about dimensions of diversity • Often related to density (how?)

Playing hardball

OPTIONAL AND RISKY. • Deception: risky • People will be very upset if they find out • Threats: risky • You MUST be prepared to follow through • Cool/calm threats better than angry/belligerent threats • Can lead to costly escalation, and/or destroy relationships • Decoy concessions: risky • E.g., the other person wants a yellow car, so you ask for blue and then "concede" • Similar to the door-in-the-face persuasion technique • Risk: the person agrees to your offer and then you end up with an outcome you didn't want • Another risk: seems deceptive Again: **OPTIONAL AND RISKY**

Persuasion Principal- consistency

People align with their clear commitments. Why does this work? • (Our) society values consistency • Self-perception Applications • Get people to go on record/in writing • Low ball: get a low-cost commitment, then reveal additional costs • Foot in the door: precede a large request with a smaller one The "Foot in the Door" technique: working from smaller requests to larger ones

Persuasion principal- reciprocity

People feel obligated to repay others. Why does this work? • Sense of obligation • Feeling of getting something in return (not a sucker) Applications • Be nice and helpful • Door in the face: create apparent concessions The "Door in the Face" technique: making concessions to extract concessions. Im going to ask for this cause I know you'll say no, and then Ill ask for what I really want because you might be more likely to say yes.

Persuasion principal- authority

People follow experts. Why does this work? • True experts are usually knowledgeable (and powerful) • We are socialized to follow experts Applications • Expose your expertise (display your diplomas) • Get more respected people to vouch for you • Notice when others are following blindly

Persuasion principal - social proof

People follow similar others. Why does this work? • We look to others for information • We like to belong Applications • Use testimonials and peer persuasion • Emphasize that everyone is doing it (and avoid doing the opposite)

Persuading Principal- liking

People like (and listen to) those who like them. Why does this work? • People who like us are less likely to take advantage of us. Applications • Offer praise (preferably genuine) • Highlight similarities (especially if rare)

persuasion principal- scarcity

People want more of what they can have less of. Why does this work? • Things that are difficult to attain are often valuable • The fear of losing opportunities is powerful Applications • Focus on what others stand to lose • Recognize the extra value of exclusive and scarce information/goods

Negotiation RECAP

Preparation helps: Know your own interests and think about theirs • Avoid fixed pie bias; discuss interests, not just positions • Listen to their perspective • The better your BATNA, and the worse their BATNA, the more power you have • Make the first offer (moderately aggressive) • Careful with aggressive hardball techniques • You can negotiate whenever you want something. ASK.

Network Size

The number of connections a given person has.

"The People Who Make Organizations Go - Or Stop"

a. Definitions of the four network role-players 1. The central connector- the person that everyone goes to in a department. Wealth of direct connections. Problem- Some connectors can create bottlenecks that can hold back the informal network. 2. The Boundary Spanner- has connections with the external network. Is the "eyes and ears" of the org. Gives info from external connections to internal connections. problem- Developing an external network takes a lot of time and effort which may take effort and time away from the immediate network. If this isnt welcomed by the company, it could set back the spanners career. 3. Information broker- connect different parts of the internal network to each other. Without the information broker, there wouldn't be one large informal network, there would be several smaller individual networks. Basically does the same as the boundary spanner but stays internal. Has a wealth of indirect connections. problem- If relied on too much, when or if they quit, the entire network could tear apart. 4. The Peripheral Specialist- stay on the outskirts of the network and dont interact much with everyone else. However, they have specific knowledge, skills, and information that they pass on to others in the group whenever needed. May be like this because they may be introverted, may be new to the team and want to get closer to everyone, or may have personal reasons like being the primary caregiver of a family. problem- Executives think that its not good to be this type and may find them expendable. They may be pushed too hard away from the peripheral where they are uncomfortable and resentful and may want to quit.

"Harnessing the Science of Persuasion"

a. Definitions of the six principles of persuasion 1. Liking - Uncover real similarities and offer genuine praise. 2. Reciprocity Give what you want to receive. 3. Social proof -People follow the lead of similar others. Use peer power whenever it's available. 4. Consistency People align with their clear commitments. Make their commitments active, public, and voluntary. 5. Authority People defer to experts. Expose your expertise; don't assume it's self-evident. 6. Scarcity - People want more of what they can have less of. Highlight unique benefits and exclusive information.

"When to Make the First Offer in Negotiation"

a. First offers and the anchoring effect -research suggests that, more often than not, negotiators who make first offers come out ahead - Anchors are any relevant numerical values in a negotiation that pull judgement towards themselves and can influence how we perceive a particular value - In situations of great ambiguity and uncertainty, first offers have a strong anchoring effect—they exert a strong pull throughout the rest of the negotiation. Anchors even affect the judgment of those who think they are immune to such influence. As a result, they insufficiently adjust their valuations away from the anchor. - by making the first offer, you will anchor the negotiation in your favor. - Don't make the first offer when the other side has much more information than you do about the item to be negotiated or about the relevant market or industry. b. Research on the advantages of making the first offer - Researchers manipulated housing prices as both high and low anchors and then had real estate agents price estimate the house. All the agents prices were influenced by the manipulated listing price even though they didnt realize/admit it. -People brought in used cars to a mechanic who was knowledgable about cars. Half the mechanics were given a low estimate for the car the customer would say "i believe the car should sell for 2800" while the other half were given high estimates the customer would say "I believe the car should sell for 500." The mechanics estimated the car to be worth 1,000 more when they were given the high-anchor value! c. How aggressive to be, and why -Aggressive but not absurdly so - When constructing an aggressive first offer, there are generally two values on which you should focus: First, consider your alternatives to agreement and create a reservation price—a specific value at which you'd prefer to walk away rather than reach a deal. Second, determine your target price - You can assure your first offer isnt too aggressive by focusing on your opponent's alternatives to agreement and trying to determine his reservation price

"More Reasons Women Need to Negotiate Their Salaries"

a. How gender differences in the propensity to negotiate result in differences in salary - Women are less likely to negotiate - Even when men and women both negotiate, men usually will ask for more - Women sometimes get penalized when they negotiate b. The three steps they suggest for women 1. reframe the problem, use collaboration to make it seem more like a conversation rather than you making a demand 2. women should raise their expectation for their salaries 3. Negotiate a package rather than one issue at a time

"The Necessary Art of Persuasion"

a. The four steps of effective persuasion 1. Credibility (experts, establish relationships) 2. Finding common ground 3. Use vivid experience 4. Form emotional connection with audience b. The four "ways not to persuade" (p. 87) 1. focus on own argument 2.

"Don't Bargain Over Positions"

a. The problems with positional bargaining - Arguing over positions produces unwise agreements. The more you defend a position, the more committed you become to it and the harder it gets to change your position - Arguing over positions is inefficient because it takes time and In positional bargaining you try to improve the chance that any settlement reached is favorable to you by starting with an extreme position, by stubbornly holding to it, by deceiving the other party as to your true views, and by making small concessions only as necessary to keep the negotiation going. Each of those factors tends to interfere with reaching a settlement promptly. - It endangers an ongoing relationship b. Why "soft positional bargaining" is not a solution - Risk of producing a sloppy agreement because done in a fast manner with someone you have a relationship with - pursuing a soft and friendly form of positional bargaining makes you vulnerable to someone who plays a hard game of positional bargaining. And the hard gamer will win. c. The four principles of the "principled negotiation" method 1. Separate the people from the problem 2. Focus on interests not positions 3. Invent options for a mutual gain 4. Insist on using objective criteria

. "A Note on Social Networks and Network Structure," pp. 1-5

a. The strength of weak ties: why and when weak ties are helpful -Weak ties are better for career progression and innovation while close ties are better for social support. weak ties are not good for when you need substantial help though, thats when close ties are better. - this is because close ties are likely to be close to people you already know while weak ties are less likely to know the same people as you or to travel in the same social circles as you or as each other. Therefore, youll likely uncover less redundant information with your weak ties than strong ones. b. What it means to be a "broker" / bridge a "structural hole," and why this is profitable -to be the broker means connecting groups that are tightly interlinked WITHIN the group but are socially isolated from each other. Aka connecting groups to other groups. - The individual doing the connecting can profit by 1. greater career success (promotions and salary), 2. can increase the individuals return on human capital (experience and education). therefore social capital can enhance ones human capital through networking and connections. and 3. it can enhance a companies innovation c. How internal network closure/density influences trust - The more dense a network with few holes, the more trust there is going to be throughout the network because You are more likely to trust someone with whom you are personally strongly tied. You are also more likely to trust and rely on the word of someone who is more tightly connected into your network BECAUSE you know that the greater the number and intensity of ties the more certain and more punished they will be if they breach the trust - Group performance is highest when there is network closure WITHIN groups (ensuring trust) and brokerage BEYOND or between groups (ensuring relevant information and coordination)

Do Financial Incentives Drive Company Performance?

a. Three ways incentives can enhance organizational performance 1. motivational- look at the company's benefits 2. informational- looking at organizations culture 3. selection- looking at organizations culture b. What "extrinsic incentives bias" is, and evidence that it exists - Extrinsic incentives bias refers to our tendency to assume that others are more driven than we are by external rewards for work. We think those around us are more motivated by extrinsic rewards like pay or job security and less so by intrinsic motivators like a desire to learn new skills or contribute to an organization - Evidence: in a law school survey that asked why the students chose a career in law, 64% said that its because they find law intellectually appealing. However, only 12% thought that their peers shared the same incentive. 62% said they thought their peers were driven by money. c. Alternatives to using incentives for motivation, information, and selection (pp. 21-23)

"Chapter 3: The IKEA Effect"

a. What the "IKEA effect" is The IKEA effect shows that we place higher value on anything that we create and it's often effort that ultimately creates long-term satisfaction. According to our reasoning behind the IKEA effect, more effort imbues greater valuation and appreciation. This means that to increase your feelings of pride and ownership in your daily life, you should take a larger part in creating more of the things you use in your daily life. b. The "four principles of human endeavor" (pp. 104-105) and what they mean 1. The effort that we put into something does not just change the object. It changes us and the way we evaluate that object. 2. Greater labor leads to greater love. 3. Our overvaluation of the things we make runs so deep that we assume that others share our biased perspective. 4. When we cannot complete something into which we have put great effort, we don't feel so attached to it.

"The Age of Hyperspecialization"

a. When might a manager want to outsource to hyperspecialized contract workers? What kinds of work are especially appropriate for this? - When the tasks that need to be done can be done better, cheaper, faster, and under control of others. Breaking down the work (division of labor) increases quality because quality improves when the labor is done by somebody who is good at it. It also reduces costs because it reduces speed and therefore saves you time and time is money. - Knowledge workers such as salespeople, engineers, secretaries, and software developers b. Managerial challenges and necessary skills ("Managing in a world of hyperspecialization," pp. 7-9, summary in "idea in brief" section on p.5) Managers will need to: - to know how to break down the work into assignable micro tasks - ensure quality (check credentials) - recruit specialized workers and assign tasks - be able to integrate separate pieces into cohesion

When youre the majority

better to have a public vote

Intrinsic Motivation

doing things because you want to or because it will make you feel good, not because of rewards someone else is giving you • People underestimate how much others are motivated by intrinsic (vs. extrinsic) rewards • This is not just because of social desirability. People really will pay to get this satisfaction.

. "Paradox of Coordination and Control"

focus on the theory sections at the end a. How functional vs. cross-functional accountability affect coordination -Functional Accountability lead the employees to only worry about themselves to make sure they weren't put on the spotlight and it weakened coordination. (american) - Cross functional accountability focused on learning from the delay rather than placing blame on one another which lead to greater unified coordination. (southwest) b. How supervisory structure can support or undermine coordination - American had large supervisory spans of control where each supervisor was in charge of 30-40 workers. Because they focused on accountability on each individual for each delay, the supervisors only had time to focus on the "bad apples" and didnt have time for coaching and feedback. The supervisors main role was to monitor front line employees. - Southwest had small supervisory spans of control and had one supervisor for every 8-9 workers. This created a much closer relationship between the workers and supervisors. The supervisors main goal was to facilitate learning and to help their workers do their jobs better rather than just monitor the front line employees. The employees didnt feel threatened and they all knew their jobs so if there was a problem, peer pressure would usually solve it rather than screaming from the supervisor.