Intro to business 8, 9, 10

Organizational Citizenship

-other behaviors provide positive benefits to the organization but in more indirect ways. -refers to the behavior of individuals who make a positive overall contribution to the organization. a number of factors, including individual, social, and organizational variables, play role in promoting or minimizing these behaviors.

Equal Employment Opportunity

both the Age Discrimination in Employment Act and Title VII require passive nondiscrimination, or equal employment opportunity. employers are not required to seek out and hire minorities, but they must treat all who apply fairly.

Modified Work Scedules

different approaches to working hours and the workweek. (Work-Share Programs and FlexTime Programs)

Cafeteria Benefits Plan

a certain dollar amount of benefits per employee is set aside so that each employee can choose from a variety of alternatives. containing the cost of benefits.

Employment at Will

holds that both employer and employee have the mutual right to terminate an employment relationship at any time for any reason, with or without advance notice to the other. may not be fired for exercising rights protected by law (jury duty).

Motivation

broadly defined, is the set of forces that cause people to behave in certain ways. 3 approaches to human relations in the workplace that reflect a basic chronology of thinking in the area 1. Classical Theory and Scientific Management 2. Early Behavioral Theory (Hawthorne Effect) 3. Contemporary Motivational Theories

The "Big Five" Personality Traits

-Agreeableness -Conscientiousness -Emotionality -Extraversion -Openness

Decision-Making Conditions

-Certainty -Risk -Uncertainty

Issues that are most important for union negotiators include:

-Compensation -Benefits -Job Security

Management Tactics

-Lockout: occurs when employers deny employees access to the workplace. these are illegal if they are used as offensive weapons to give management a bargaining advantage. -Strikebreakers: a firm can hire temporary or permanent replacements. however, the law forbids permanent replacement of workers who strike because of their unfair practices.

McClelland's Acquired Needs Theory

-Need for Achievement: arises from an individual's desire to accomplish a goal or task as effectively as possible. (High-Achievers: tend to set moderately difficult goals and to make moderately risky decisions, want immediate, specific feedback on performance; frequently take jobs in sales, avoid jobs in research and development, preoccupation with work- find it difficult to put work aside. tend to assume personal responsibility for getting things done. volunteer for extra duties and have a hard time delegating.) -Need For Affiliation: the need for human companionship. (High: tend to want reassurance and approval from others and usually are genuinely concerned about others' feelings. likely to act and think as they believe others want them to. most often work in jobs with a lot of interpersonal connection, such as sales and teaching positions. -Need for Power: the desire to control one's environment, including financial, material, informational, and human resources. some people spend much time and energy seeking power, others avoid power if at all possible. (People with a high need for power can be successful managers if 3 conditions are met: 1. they must seek power for the betterment of the organization rather than for their own interests. 2. they must have a fairly low need for affiliation because fulfilling a personal need for power may well alienate others in the workplace. 3. they need plenty of self-control to curb their desire for power when it threatens to interfere with effective organizational or interpersonal relationships.

Human Resources Model: Theories X and Y

-Theory X: managers tend to believe that people are naturally lazy and uncooperative and must be either punished or rewarded to be made productive. -Theory Y: managers tend to believe that people are naturally energetic, growth-oriented, self-motivated, and interested in being productive. more likely to have satisfied and motivated employees.

Agreeableness

-a person's ability to get along with others. -High Level: is gentle, cooperative, forgiving, understanding, and good-natured in their dealings with others. better at developing good working relationships with coworkers. -Low Level: is often irritable, short-tempered, uncooperative, and generally antagonistic toward other people. not likely to have particularly good working relationships.

The Myers-Briggs Framework

-a popular questionnaire that some organizations use to assess personality types. -Extraversion (E) vs. Introversion (I): Extraverts get their energy from being around other people, whereas introverts are worn out by people and need solitude to recharge their energy. -Sensing (S) vs. Intuition (N): the sensing type prefers concrete things, whereas intuitives prefer abstract concepts. -Thinking (T) vs. Feeling (F): thinking individuals base their decisions more on logic and reasons, whereas feeling individuals base their decisions more on feeling and emotion. -Judging (J) vs Perceiving (P): people who are the judging type enjoy completion or being finished, whereas perceiving types enjoy the process and open-ended situations.

Counterproductive Behaviors

-detract from performance, rather than contribute to, and actually cost the organization. -

Path-Goal Theory

-is a direct expectancy of the expectancy theory of motivation. suggests that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinates the kinds of behavior that will lead to goal accomplishment and valued rewards. the leader should clarify the paths to goal attainment. 4 kinds of behaviors that leaders can use, depending on the situations: -Directive Leader Behavior: lets subordinates know what is expected of them, give guidance and direction, and schedules work. -Supportive Leader Behavior: is being friendly and approachable, showing concern for subordinates' welfare, and treating members as equals. -Participative Leader Behavior: includes consulting with subordinates, soliciting suggestions, and allowing participation in decision-making. -Achievement-Oriented Leader Behavior: sets challenging goals, expects subordinates to perform at high-levels, encourages subordinates, and shows confidence in subordinates' abilities.

Extraversion

-refers to a person's comfort level with relationships. -Extraverts: are sociable, talkative, assertive, and open to establishing new relationships. tend to be higher overall job performers than introverts and are more likely to be attracted to jobs based on personal relationships, such as sales and marketing positions. -Introverts: are much less sociable, talkative, assertive, and more reluctant to begin new relationships.

Emotionality

-refers to the degree that people tend to be positive or negative in their outlook and behaviors towards others. -Positive: relatively poised, calm, resilient, and secure. might be expected to better handle job stress, pressure, and tension. their stability might also lead them to be seen as being more reliable than their less-stable counterparts. -Negative: more excitable, insecure, reactive, and subject to mood swings.

Emotional Intelligence (Emotional Quotient) (EQ)

-refers to the extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills. various dimensions: -Self-awareness: refers to a person's capacity for being aware of how they are feeling. in general, more self-awareness allows people to more effectively guide their own lives and behaviors. -Managing Emotions: refers to a person's capacity to balance anxiety, fear, and anger so that they do not overly interfere with getting things accomplished. -Motivating Oneself: is a person's ability to remain optimistic and to continue striving in the face of setback, barriers, and failures. -Empathy: is a person's ability to understand how others are feeling even without being explicitly told. -Social Skills: help people get along with others and establish positive relationships.

Conscientiousness

-refers to the individual's persistence, dependableness, and orderliness. -Highly conscientious: tend to focus on relatively few tasks at one time; as a result, they are likely to be organized, systematic, careful, thorough, responsible, and self-disciplined. tend to be relatively higher performers in a variety of different jobs. Less conscientious:tend to pursue a wider array of tasks; as a result, they are often more disorganized and irresponsible, as well as less thorough and self-disciplined.

Openness

-reflects how open or rigid a person is in terms of his or her beliefs. -High Levels: are curious and willing to listen to new ideas and to change their own ideas, beliefs, and attitudes in response to new information. are often better performers because of their flexibility and the likelihood that they will be accepted by others in the organization. -Low Levels: tend to be less receptive of new ideas and less willing to change their minds.

Performance Behaviors

-some employee behaviors directly contribute to productivity and performance. -are the total set of work-related behaviors that the organization expects employees to display. directly targeted at performing a job.

Staffing the Organization requires to processes:

1. Acquiring new employees from outside of the company. 2. Promoting current employees from within.

Forecasting the Supply of Labor

1. Forecasting Internal Supply: the number and type of employees who will be in the firm at some future date. 2. Forecasting External Supply: the number and type of people who will be available for hiring from the labor market at large. planners must rely on information from outside sources, such as state employment commissions, government reports, and figures supplied by colleges on the numbers of students in major fields.

Steps in the Rational Decision-Making Process

1. The manager recognizes and defines a decision situation. (ex. a hotel manager sees that customer complaints have been increasing). 2. The manager identifies alternatives for addressing the situation. (ex. The hotel manager can hire new staff, offer service quality training, or leave things as they are). 3. The manager evaluates each of the possible alternatives. (ex. the hotel manager decides leaving things as they are is unacceptable but that the other two options may work). 4. The manager selects the best alternative. (ex. hiring new staff is too expensive but the hotel has unused funds in its training budget). 5. The manager implements the chosen alternative. (ex. A new training program is developed). 6. The manager follows up and evaluates the effects of the chosen alternative. (ex. after 6 months the manager notices a significant decrease in customer complaints).

Decision making

can refer to either a specific act or a general process. is the act of choosing one alternative from among a set of alternatives.

Contemporary Motivation Theory

Expectancy Theory and Equity Theory

Performance Appraisal

a formal assessment of how well employees are doing their jobs. may be necessary for validating selection devices or assessing the impact of training programs. administrative reason is to aid in making decisions about pay raises, promotions, and training. to provide feedback to employees to help them improve their present performance and plan their future careers. often help determine wages and promotions, they must be fair and nondiscriminatory. two categories: -Objective Measures: include actual output (number of units produced), scrap rate, dollar volume of sales, and number of claims processed. may be contained by "opportunity bias" if some persons have a better chance to perform than others. -Judgmental Methods: including ranking and rating techniques, are the most common way to measure performance. ranking compares employees directly with one another and orders them from best to worst. hard to distinguish the middle of the group. rating compares every employee with a fixed standard, like a scale.

Labor Union

a group of individuals working together to achieve shared job-related goals, such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions.

State of Risk

a more common decision-making condition. the availability of each alternative and its potential payoffs and costs are all associated with probability estimates. managers must reasonably estimate the probabilities associated with each alternative. is accompanied by moderate ambiguity and chances of a bad decision.

Strategic Leadership

a new concept that explicitly relate leadership to the role of top management. a leaders ability to understand the complexities of both the organization and its environment and to lead change in the organization so as to enhance its competitiveness. to be effective as a strategic leader, a manager needs to have a thorough a complete understanding of the organization- its history, culture, strengths, and weaknesses. the leader needs a firm grip of the organization's external environment. this understanding needs to include current business and economic conditions and circumstances as well as significant trends and issues on the horizon. also needs to recognize the firm's current strategic advantages and shortcomings.

Contingent Worker

a person who works for an organization on something other than a permanent or full-time basis. include independent contractors, on-call workers, temporary employees (usually hired through outside agencies), and contract and leased employees, part-time workers.

Pay for Performance (Variable Pay)

a popular incentive plan. in essence, middle managers are rewarded for especially productive output with earnings that significantly exceed the cost of bonuses. many firms say that variable pay is a better motivator than merit raises because the range between generous and mediocre merit raises is usually quite small.

Job Analysis

a systemic analysis of jobs within an organization; most firms have trained experts who analyze these analyses. a job analyses results in two things: -Job Description: lists the duties and responsibilities of a job; its working conditions; and the tools material, equipment, and information used to perform it. -Job Specification: lists the skills, abilities, and other credentials and qualifications needed to perform the job effectively.

Charismatic Leadership

a type of influence based on the leader's charisma, a form of interpersonal attraction that inspires support and acceptance. charismatic leaders are likely to have a lot of confidence in their beliefs and ideals and a strong need to influence people. they also tend to communicate high expectations about follower performance and to express confidence in their followers. 3 crucial elements: 1. Charismatic leaders envision likely future trends and patterns, set high expectations for themselves and for others, and behave in ways that meet or exceed those expectations. 2. Charismatic leaders energize others by demonstrating personal excitement, personal confidence, and consistent patterns of success. 3. Charismatic leaders enable others by supporting them, empathizing with them, and expressing confidence in them. -Lingering ethical concerns stem from some charismatic leaders inspire such blind faith in their followers that they may engage in inappropriate, unethical, or even illegal behaviors just because the leader instructed them to do so. (Enron)

Bonus

a typical incentive is a sales bonus. special payments employees receive above their salaries, when they sell a certain number or certain dollar amount of goods for the year. employees who fail to meet this goal earn no bonuses.

Job Redesign Programs

acknowledges that different people want different things from their jobs. by restructuring work to achieve a more satisfactory fit between workers and their jobs, job redesign can motivate individuals with strong needs for career growth or achievement. usually implemented in one of three ways: 1. Combining Tasks: involves enlarging jobs and increasing their variety to make employees feel that their work is more meaningful. 2. Forming Natural Work Groups: people who do different jobs on the same projects are candidates for this. these groups are formed to help employees see the place and importance of their jobs in the total structure of the firm. they are valuable to management because the people working on a project are usually the most knowledgable about it and the most capable problem-solvers. 3. Establishing Client Relationships: letting employees interact with customers. this approach increases job variety. it gives workers both a greater sense of control and more feedback about performance than they get when their jobs are not highly interactive.

Flextime Programs

allow people to choose their working hours by adjusted a standard work schedule on a daily or weekly basis, with limits. -Advantages: gives employees more freedom in their personal and professional lives. allows workers to plan around the work schedules of spouses and the school schedules of children. the increased sense of freedom and control reduces stress and improves individual productivity. -Disadvantages: complicates coordination because people are working different schedules and keeping accurate records of when employees are actually working.

Halo Error

allowing the assessment of an employee on one dimension to "spread" to ratings of that employee on other dimensions.

Wage Reopener Clause

allows wags rates to be renegotiated at present times during the life of the contract.

Civil Rights Act of 1991

amended the original civil rights act as well as other related laws by making it easier to bring discrimination lawsuits while simultaneously limiting the amount of punitive damages that can be awarded in those lawsuits.

Gainsharing Plans

an incentive program that applies to all employees at a firm. distributes bonuses to employees when a company's costs are reduced through greater work efficiency.

Pay-for-Knowledge Plans

an incentive program that applies to all employees at a firm. pay workers to learn new skills and to become proficient at different jobs.

Profit-Sharing Plans

an incentive program that applies to all employees at a firm. profits earned above a certain level are distributed to employees.

Gender and Leadership

another factor that is clearly altering the face of leadership is the growing number of women advancing to higher levels in organizations. early observers predicted that female leaders would be relatively warm, supportive and nurturing as compared to their male counterparts. but research suggests that female leaders are not necessarily more nurturing or supportive than male leaders. likewise, male leaders are not systemically harsher, more controlling, or more task focused than female leaders. the one difference that has arisen in some cases is that women may be slightly more democratic in making decisions, whereas men have a tendency to be more autocratic.

Leadership Substitutes

are individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance. id certain factors are present, the employee will perform his or her job capably, without the direction of a leader. -Individual Factors: individual professionalism; individual ability, knowledge, and motivation; individual experience and training; indifference to rewards. -Job Factors: structured/automated; highly controlled; intrinsically satisfying; embedded feedback. -Organization Factors: explicit plans and goals; rigid rules and procedures; rigid reward system not tied to performance; physical distance between supervisor and subordinates. -Group Factors: group performance norms; high level of group cohesiveness; group interdependence.

Wages

are paid for time worked.

Nonprogrammed Decisions

are relatively unstructured and occur less often. managers faced with such decisions must treat each one as unique, investing enormous amounts of time, energy, and resources into exploring the situation from all perspectives. Intuition and experiences are major factors in nonprogrammed decisions. most of the decisions made by top managers involving strategy (including mergers, acquisitions, and takeovers) and organization design are nonprogrammed. also include those concerning new facilities, new products, labor contracts, and legal issues.

Situational Approach to Leadership

assumes that appropriate leader behavior varies from one situation to another. it attempts to identify varies forms of leader behavior that result in contingent(depend on elements of the situation and characteristics of both the leader and the followers) outcomes and consequences. -Leadership Characteristics: include manager's value system, confidence in subordinates, personal inclinations, feelings of security, and actual behaviors. -Subordinate Characteristics: include subordinates' need for independence, readiness to assume responsibility, tolerance for ambiguity, interest in the problem, understanding of goals, knowledge, experience, and expectations. -Situational Characteristics that Affect Decision-Making: include the type of organization, group effectiveness, the problem itself, and time pressures. -3 important Situational Approaches to Leadership: 1. Path-Goal Theory 2. Decision Tree Approach 3. Leader-Member Exchange Model

Benefits

compensation other than wages and salaries and other incentives offered by a firm to its workers, account for an increasing percentage of most compensation budgets. most companies are required by law to pay tax for Social Security retirement benefits and provide workers compensation insurance

Americans with Disabilities Act

congress passed in 1990, forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees.

Internal Recruiting

considering present employees as candidates for openings. promotion from within can help build morale and keep high-quality employees from leaving. for higher-level positions, a skills inventory system may be used to identify internal candidates, or managers may be asked to recommend individuals to be considered.

Political Forces in Decision Making

contribute to the behavioral nature of decision making. on major element of politics, coalitions, is especially relevant to decision making. a coalition is an informal alliance of individuals or groups formed to achieve a common goal. the common goal is often a preferred decision alternative. (ex. coalitions of stockholders frequently band together to force a board of directors to make a certain decision). lobbyists are when these coalitions enter the political arena and attempt to persuade lawmakers to make decisions favorable to their interests, they may also donate money to help elect a candidate who is more likely to pursue their agendas.

Sexual and Racial Harassment

costs an organization, both indirectly (by lowering morale, producing fear, and driving off valuable employees) and directly (through financial liability if the organization responds inappropriately).

Escalation of Commitment

decision makers sometimes make decisions and then become so committed to the course of action suggested by that decision that they stay with it, even when it appears to have gone wrong.

Sexual Harassment

defined by the EEOC as unwelcome sexual advances in the work environment. if the conduct is indeed unwelcome and occurs with sufficient frequency to create an abusive work environment, the employer is responsible for changing the environment by warning, reprimanding, or firing the harasser. two types: 1. Quid Pro Quo Harassment: the harasser offers to exchange something of value for sexual favors. 2. Hostile Work Environment: a more subtle form of sexual harassment. a group of male employees who continually make off-color jokes and lewd comments and perhaps decorate the work environment with inappropriate photographs may create a hostile work environment for a female colleague, who may become uncomfortable.

Herzberg's Two-Factor Theory

depends on two factors: hygiene factors and motivation factors. -Hygiene Factors affects motivation and satisfaction only if they are absent or fail to meet expectations. supervisors, working conditions, interpersonal relations, pay and security, company policies and administration. -Motivation Factors: achievement, recognition, the work itself, responsibility, advancement and growth.

Occupational Safety and Health Act (OSHA) of 1970

directly mandates the provision of safe working conditions. requires that employers: 1. Provide a place of employment that is free from hazards that may cause death or serious physical harm. 2. Obey the safety and health standards established by the Department of Labor. safety standards are intended to prevent accidents, where as occupational health standards are concerned with preventing occupational disease. they are enforced by OSHA inspections, which are conducted when an employee files a complaint of unsafe conditions or when a serious accident occurs. employers who fail to meet OSHA standards may be fined.

Knowledge Workers

employees who add value because of what they know. this includes computer scientists, engineers, physical scientists, and game developers, typically require extensive and highly specialized training. once they are on the job, retaining and training updates are critical to prevent their skills from becoming obsolete. to help recruit, firms offer lavish perks, such as free massages, launder service, gourmet meals and snacks, and premium coffee.

Employee Retirement Income Security Act (ERISA) of 1974

employers who provide a pension plan for their employees are regulated by this act. the purpose is to help ensure the financial security of pension funds by regulating how they can be invested.

Adverse Impact

employment requirements such as test scores and other qualifications are legally defined as having an adverse impact on minorities and women when such individuals meet or pass the requirement at a rate less than 80 percent of the rate of majority group members. criteria that have an adverse impact on protected groups can be used only when there is solid evidence that they effectively identify individuals that are better able than others to do the job.

Leadership Neutralizers

even if a leader is present and attempts to engage in various leadership behaviors, those behaviors may be rendered ineffective -or neutralized- by various factors.

Equity Theory

focuses on social comparisons, people evaluating their treatment by the organization relative to the treatment of others. people begin by analyzing inputs ( what they contribute to their jobs in terms of time, effort, education, experience) relative to outputs ( what they receive in return- salary, benefits, recognition, security). similar to the psychological contract. the result is a ratio of contribution to return. is it equal to, greater than, or less than others.

Transformational Leadership

focuses on the importance of leading for change (as opposed to leading during a period of stability). much of what a leader does involves carrying out what might be thought as basic management "transactions," such as assigning work, evaluation performance, and making decisions. occasionally however the leader has to engage in transformational leadership to initiate and manage major change, such as managing a merger, creating a new work team, or redefining the organization's culture. -the set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. some experts believe that change is such a vital organizational function that even successful firms need to change regularly to avoid becoming complacent and stagnant.

Labor-Management Relations Act (Taft-Hartley Act)

following a series of severe strikes in 1946, this act was passed in 1947 to limit union power. the law increases management's rights during an organizing campaign. also contains the National Emergency Strike Provision, which allows the president of the united states to prevent or end a strike that endanger national security. these laws balance the union and management power. employees can be represented by a legally created and managed union, but the business can make non-employee-related business decisions without interference.

Pregnancy Discrimination Act

forbids discrimination against women who are pregnant.

Title VII of the Civil Rights Act of 1964

forbids discrimination in all areas of the employment relationship, such as hiring, opportunities for advancement, compensation increases, layoffs, and terminations against members of certain protected classes based on factors such as race, color, gender, religious beliefs, or national origin. the intent is to ensure that employment decisions are the basis of an individual's qualifications rather than on the basis of personal biases. the law has reduced direct forms of discrimination as well as indirect forms of discrimination

Leaders as coaches (rather than an overseer)

from the standpoint of a business leader, a coaching perspective would call for the leader to help select and train team members and other new employees, to provide some general direction, and to help the team get the information and other resources it needs. some leaders may function as mentors, helping less experienced employees learn the ropes and better preparing them to advance within the organization; they may also help resolve conflicts among team members and mediate other disputes that arise. but beyond these activities, the leader keeps a low profile and lets the group get its work done with little or no direct oversight.

Participative Management and Empowerment

gives its employees a voice in how they do their jobs and in how the company is managed; they become empowered to take greater responsibility for their own performance. can be used in large firms or small, both with managers and operating employees.

Ethical Leadership

high standards of ethical conduct are being held up as a prerequisite for effective leadership. business leaders are being called on to maintain high ethical standards for their own conduct, to unfailingly exhibit ethical behavior, and to hold others in their organization to the same standards. the behaviors of top leaders are being scrutinized more than ever, and those responsible for hiring new leaders for a business are looking more closely at the backgrounds of those being considered.

Training

in HRM, this usually refers to teaching operational or technical employees how to do the job for which they are hired.

Patriot Act

in response to the terrorist acts of September 11, 2001, the U.S. government passed legislation that increases its power to investigate and prosecute suspected terrorists. it has several key implications for HRM. certain "restricted" individuals (ex-convicts and certain aliens) are ineligible to work with potentially dangerous biological agents. more controversial are sections granting government investigators access to previously confidential personal and financial records.

Cross-Cultural Leadership

in this context, culture is used as a broad compass to encompass both international differences and diversity-based differences within one culture. ex. Japan is generally characterized by collectivism (group before individual) and the U.S. is more individualism (individual before group).

Decision-Making Process

includes recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice. the word best implies effectiveness. effective decision making requires that the decision maker understand the situation driving the decision, one that optimizes some set of factors, such as profits, sales, employee welfare, and market share or minimizes losses, expenses, or employee turnover maybe even selecting the best method for going out of business, laying off employees, or terminating a strategic alliance. managers make decisions about both problems and opportunities. 2 types of decisions: -Programmed -Nonprogrammed

Team Structures

increased motivation in teams and enhanced job satisfaction. often help smaller, more flexible organizations make decisions more quickly and effectively, enhance company wide communication, and encourage organizational members to feel more like a part of an organization. in turn, these attitudes usually lead to higher levels of both employee motivation and job satisfaction.

Workers Compensation Insurance

insurance for compensating workers injured on the job.

External Recruiting

involves attracting people outside the organization to apply for jobs. these methods include posting jobs on the company website or other job sites, such as Monster.com; holding campus interviews for potential college recruits; using employment agencies or executive search firms to scout for potential talent; seeking referrals from present employees; advertising in print publications; and hiring "walk-ins" (unsolicited applicants).

Workplace Aggression and Violence (Bullying)

is a growing concern in some organizations.

Referent Power

is abstract. it is based on identification, imitation, loyalty, or charisma. followers may act favorably because the identify in some way with a leader, who may be like them in personality, background, or attitudes. in other situations, followers might choose to imitate a leader with referent power by wearing the same kind of clothes, working the same hours, or espousing the same management philosophy. referent power may also take the form of charisma, an intangible attribute of the leader that inspires loyalty and enthusiasm. thus a manager might have referent power, but it is more likely to be associated with leadership.

Virtual Leadership

is also emerging as an important issue for organizations. in today's world, both leaders and their employees may work in locations that are far from one another (telecommuting from a home office one or two days a week to people actually living and working far from company headquarters). communication between leaders and their subordinates happens largely by telephone and e-mail. must work harder at creating and maintaing relationships with their employees. managers can instead make a point of adding a few personal words in an e-mail (whenever appropriate) to convey appreciation, reinforcement, or constructive feedback.

Intuition

is an innate belief about something, often without conscious consideration. managers often decide to do something because it "feels right" or they have a hunch. this feeling is usually not arbitrary, however. rather, it is based on years of experience and practice in making decisions in similar situations.

Equal Employment Opportunity Commission (EEOC)

is charge with enforcing Title VII as well as several other employment-related laws.

Expert Power

is derived from information or expertise. a manager who knows how to interact with an extrinsic but important customer, a scientist who is capable of achieving an important technical breakthrough that no other company has dreamed of, and an administrative assistant who knows how to unravel bureaucratic red tape all have expert power over anyone who needs that information. the more important the information and the fewer the people who have access to it, the greater is the degree of expert power possessed by any one individual. in general, people who are both leaders and managers tend to have a large amount of expert power.

Punishment

is designed to change behavior by presenting people with unpleasant consequences if they exhibit undesired behaviors.

Transactional Leadership

is essentially the same as management in that it involves routine, regimented activities. only a leader with tremendous influence can hope to perform both functions successfully. leadership for change is extremely important.

Job Enrichment Programs

is intended to adding one or more motivating factors to job activities. (job rotation, increasing responsibility or recognition).

Machiavellianism

is now used to describe behavior directed at gaining power and controlling the behavior of others. -more: tend to be rational and nonemotional, may be willing to lie to attain their personal goals, put little emphasis on loyalty and friendship, and enjoy manipulating others' behaviors. -less: more emotional, less willing to lie to succeed, value loyalty and friendship highly, and get little personal pleasure from manipulating others.

Programmed Decision

is one that is relatively structured or recurs with some frequency (or both). many decisions regarding basic operating systems and procedures and standard organizational transactions are of this variety and can be programmed (ex. buying supplies).

Salary

is paid for performing a job. usually expressed as an amount paid per month or per year.

Legitimate Power

is power granted through the organizational hierarchy; it is the power defined by the organization to be accorded to people occupying a particular position. legitimate power is authority and all managers have this. however, the mere possession of legitimate power does not by itself make someone a leader. ex. a manager can assign tasks to a subordinate, and a subordinate who refuses to do them can be reprimanded or fired.

Risk Propensity

is the degree to which a person is willing to take chance and make risky decisions. -High Risk Propensity: might experiment with new ideas and gamble on new products, might lead the organization in new and different directions, might be a catalyst for innovation, if they prove to be bad ideas, they may jeopardize the continued well-being of the organization. -Low Risk Propensity: might lead an organization to stagnation and excessive conservatism or might help the organization successfully weather turbulent and unpredictable times by maintaining stability and calm.

Locus of Control

is the extent to which people believe their behavior has a real effect on what happens to them. (if you work hard you will succeed). -Internal Locus of Control: people who believe that individuals are in control of their lives. -External Locus of Control: people who that that forces beyond their control (luck) dictates what happens to them.

Coercive Power

is the power to force compliance by means of psychological, emotional, or physical threat. physical coercion in organizations was once relatively common. today, however, coercion is limited to verbal reprimand, written reprimands, disciplinary layoffs, fines, demotions, and termination. some manager occasionally go so far as to use verbal abuse, humiliation, and psychological coercion in an attempt to manipulate subordinates. the more punitive the elements under a manager's control and the more important they are to subordinates, the more coercive power the manager possesses. on the other hand, the more the manager uses coercive power, the more likely he is to provoke resentment and hostility and the less likely he is to be seen as a leader.

Reward Power

is the power to give or withhold rewards. rewards that a manager may control include salary increases, bonuses, promotional recommendation, praise, recognition, and interesting job assignments. thus, the greater the number of rewards a manager controls, and the more important the rewards are to the subordinates, the greater is the manager's reward power. if the subordinate values only the formal organizational rewards provided by the manager, then the manager is not a leader. however, if the subordinate also wants and appreciates the manager's informal rewards, such as praise, gratitude, and recognition, the manager is also exercising leadership.

Trait Approach to Leadership

led researchers to focus on identifying the essential leadership traits, including intelligence, dominance, self-confidence, energy, activity (vs. passivity), and knowledge about the job. unfortunately, the list of potential leadership traits quickly became so long that it lost any practical value. in addition, the results of many studies were inconsistent. this approach was abandoned several decades ago, but in recent years it resurfaced. researchers have again started to focus on traits, such as emotional intelligence, mental intelligence, drive, motivation, honesty and integrity, se;f-confidence, knowledge of the business, and charisma.

Decision Tree Approach

like the path-goal theory, this approach attempts to prescribe a leadership style approach to a given situation. assumes that the same leader may display different leadership styles. but this approach concerns itself with only a single aspect of leader behavior: subordinate participation in decision making. assumes that the degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. no one decision-making process is best for all situations. after evaluating a variety of problem attributes (characteristics of the problem or decision), the leader determines an appropriate decision styles that specifies the amount of subordinates participation.

Merit Salary System

link pay raises to performance levels in nonsales jobs.

Replacement Chart

lists each important managerial position, who occupies it, how long that person will probably stay in it before moving on, and who is now qualified or soon will be qualified to move into it. (in most firms today this information is computerized). this technique allows ample time to plan developmental experiences for people identified as potential successors for critical managerial jobs.

360-Degree Feedback

managers are evaluated by everyone around them- their boss, their peers, and their subordinates.

Cost-of-Living Adjustment (COLA)

most COLA clauses tie future rates to the Consumer Price Index (CPI), a government statistic that reflects changes in consumer purchasing power. almost half of all labor contracts today include COLA clauses.

State of Uncertainty

most of the major decision making in contemporary organizations. the decision maker does not know all of the alternatives, the risk associated with each, or the likely consequences of each alternative. this uncertainty stems from the complexity and dynamism of contemporary organizations and their environments. the emergence of the Internet as a significant force in today's competitive environment has served to increase both revenue potential and uncertainty for most managers. managers must acquire as most relevant information as possible and approach the situation from a logical and rational perspective. intuition, judgement, and experience always play major roles in this. it is the most ambiguous condition for managers and the one most prone to error.

Absenteeism

occurs when an employee does not show up for work. some have legitimate causes, such as illness, jury duty, or death or illness in the family. other times, the employee may report a feigned legitimate cause that actually is just an excuse to stay home. when an employee is absent, legitimate or not, the employee's work does not get done at all, a substitute must be hired to do it, or others in the organization must pick up the slack. results in direct costs to a business.

Strike (Employee Tactics)

occurs when employees temporarily walk of the job and refuse to work. to support a strike, a union faced with an impasse has recourse to additional legal activities: -Picketing: workers march at the entrance to the employer's facility with signs explaining their reasons for striking. -Boycott: occurs when union members agree not to buy the products of a targeted employer and urge other consumers to do the same. -Work Slowdown: workers perform their jobs at a much slower pace than normal. (Sickout: large numbers of workers call in sick).

Social Learning

occurs when people observe the behaviors of others, recognized their consequences, and alter their own behavior as a result. this suggests that individual behavior is determined by a person's cognitions and social environment. more specifically, people are presumed to learn behaviors and attitudes at least partially in response to what others expect of them.

Turnover

occurs when people quit their jobs. an organization usually incurs costs in replacing workers who have quit, lost productivity while seeking a replacement, training someone new, and so on. turnover results from a number of factors, including aspects of the job, the organization, the individual, the labor market, and family influences.

Realistic Job Preview (RJP)

one generally successful method for facilitating a good person-job fit. involves providing the applicant with a real picture of what performing the job that the organization is trying to fill will be like.

Expectancy Theory

suggest that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance (expectancy) of obtaining.

National Labor Relations Act (Wagner Act)

passed in 1935, sets up a procedure for employees to vote on whether to have a union. if they vote for a union, management is required to bargain collectively with the union.

Fair Labor Standards Act

passed in 1938 and amended frequently since, sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week. salaried professionals, executives, and administrative employees are exempt from the minimum hourly wage and overtime provisions.

Age Discrimination in Employment Act

passed in 1967, amended in 1978 and 1986, is an attempt to prevent organizations from discriminating against older workers. in its current form, it outlaws discrimination against people older than 40 years.

Telecommuting (Teleworking)

performing some or all of their job away from traditional office settings.

Individual Differences

personal attributes that vary from one person to another. they may be physical, psychological, and emotional. they make that person unique.

Hawthorne Effect (Early Behavioral Theory)

productivity rose in response to almost any management action that workers interpreted as special attention.

Maslow's Hierarchy of Human Needs Model

proposed that people have several different needs that they attempt to satisfy in their work. lower-level needs must be met before a person will try to satisfy higher-level needs. -Self Actualization -Esteem Needs -Social Needs -Security Needs -Physiological Needs

Development

refers to teaching managers and professionals the skills needed for both present and future jobs.

Person-Job Fit

refers to the extent to which a person's contributions and the organization's inducements match one another. -Good Person-Job Fit: the employee's contributions match the inducements the organization offers. can result in higher performance and more positive attitudes. -Poor Person-Job Fit: opposite effects

Labor Relations

refers to the process of dealing with employees who are represented by a union.

Attitudes

reflect our beliefs and feelings about specific ideas, situations, or other people. contain 3 components (structure): 1. Cognition: the knowledge a person presumes to have about something. based on perceptions of the truth and reality. 2. Affect: his or her feeling toward something. similar to emotion, it is something over which we have little or no conscious control. 3. Intention: guides a person's behavior. not allows translated into actual behavior.

Organizational Commitment (Job Commitment)

reflects an individual's identification with the organization and its mission. -Highly committed person: will probably see himself or herself as a true member of the firm , overlook minor sources of of dissatisfaction, and see himself or herself remaining a member of the organization. -Less committed person: more likely to see himself as an outsider, to express more dissatisfaction about things, and to not see himself as a long-term member of the organization.

Job Satisfaction (Morale)

reflects the extent to which people have positive attitudes towards their jobs. -a satisfied employee tends to be absent less often, to be a good organizational citizen, and to stay with the organization. -a dissatisfied employee may be absent more often, may experience stress the disrupts coworkers, and may continually look for another job.

Human Capital

reflects the organization's investment in attracting, retaining, and motivating an effective workforce. serves as a tangible indicator of the value of the people who comprise an organization.

Talent Management

reflects the view that the people in an organization represent a portfolio of valuable talents that can be effectively managed and tapped in ways best targeted to organizational success.

Family and Medical Leave Act (FMLA) of 1993

requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies.

Equal Pay Act of 1963

requires that men and women be paid the same amount for doing the same job. attempts to circumvent the law by having different job titles and paw rates for men and women who perform the same work are also illegal. basing an employee's pay on seniority or performance is legal, even if it means that a man and woman are paid different amounts for doing the same job.

Theft and Sabotage

results in direct financial costs for an organization.

Work-Share Programs (Job-Sharing)

sharing a full-time job with another employee. benefits both employees and employers. employees tend to appreciate the organization's attention to their personal needs. the company can reduce turnover and save on the cost of benefits. negative side- employees generally receive fewer benefits than their full-time counterparts and may be the first laid-off when cutbacks are necessary.

Affirmative Action

some executive orders require that employees holding government contracts engage in affirmative action, intentionally seeking and hiring employees from groups that are underrepresented in the organization.

Corporate University

some larger-businesses have created their own self-contained training facility. (McDonald's Hamburger University).

Incentive Programs

special pay programs designed to motivate high performance. some programs are available to individuals, while others are distributed on a companywide basis. (bonuses, stock options, pay for performance)

Leader-Member Exchange (LMX) Model

stresses the importance of variable relationships between supervisors and each of their subordinates. Each superior-subordinate pair represents a "vertical dyad". The model differs from previous approaches in that it focuses on the differential relationship leaders often establish with different subordinates. suggests that supervisors establish a special relationship with a small number of trusted subordinates, referred to as "the in-group". the in-group usually receives special duties requiring responsibility and autonomy; they may also receive special privileges. subordinates who are not a part of this group are called "the out-group" and they receive less of the superior's time and attention. the key element of this theory is the concept of individual vertical dyads and how leaders have different relationships with each of their subordinates.

Self-efficacy

that person's belief about his or her capabilities to perform a task. -High Self-efficacy: believe that they can perform well on a specific task. -Low Self-efficacy: tend to doubt their ability to perform a specific task.

Power

the ability to affect the behavior of others. 5 kinds of power: -Legitimate -Reward -Coercive -Referent -Expert

Co-pay

the dollar amount the patient pays to the doctor; insurance then pays the remainder.

Risk Propensity and Decision Making

the extent to which a decision maker is willing to gamble when making a decision. they try to adhere to the rational model and are extremely conservative in what they do. such managers are more likely to avoid mistakes, and they infrequently make decisions that lead to big losses. others are extremely aggressive in making decisions and willing to take risks. they rely heavily on intuition, reach decisions quickly, and often risk big investments on their decisions. as in gambling, these managers are more likely than their conservative counterparts to achieve big successes with their decisions; they are also more likely to incur greater losses. the organization's culture is a prime ingredient in fostering different levels of risk propensity.

Self-Esteem

the extent to which a person believes that he or she is a worthwhile and deserving individual. -High Self-Esteem: more likely to seek higher-status jobs, be more confident in his or her ability to achieve higher levels of performance, and derive greater intrinsic satisfaction from his or her accomplishments. -Less Self-Esteem: may be more content to remain in a lower-level job, be less confident of his or her ability, and focus more on extrinsic rewards (tangible and observable awards, such as a paycheck, job promotion...)

Authoritarianism

the extent to which a person believes that power and status differences are appropriate within hierarchical social systems such as organizations. -Highly Authoritarian: may accept directives or orders from someone with more authority purely because the other person is "the boss". -Not Highly Authoritarian: may still carry out reasonable directives from the boss, is more likely to question things, express disagreement with the boss, and even refuse to carry out orders if they are for some reason objectionable.

Behavioral Approach to Leadership

the goal was determine what behaviors were employed by effective leaders. these researchers assumed that the behaviors of effective leaders differed somehow from the behaviors of less effective leaders, and that the behaviors of effective leaders would be the same across all situations. two basic forms of leader behavior: -Task-Focused Leader Behavior: occurs when a leader focuses on how tasks should be performed to meet certain goals and to achieve certain performance standards. -Employee-Focused Leader Behavior: occurs when a leader focuses on the satisfaction, motivation, and well-being of his or her employees.

Management by Objectives (MBO)

the most frequent method for setting performance goals, a system of collaborative goal setting that extends from the top of an organization to the bottom. MBO involves managers and subordinates in setting goals and evaluating progress. -Advantage: motivational impact

Arbitration

the neutral third party (arbitrator) dictates a settlement between the two sides, which have agreed to submit to outside judgement. can be compulsory or required by law.

Mediation

the neutral third party (mediator) can suggest, but cannot impose, a settlement on the other parties.

Psychological Contract

the overall set of expectations held by employees and the organization regarding what the employees will contribute to the organization and what the organization will provide in return. unlike a business contract, it is not written on paper, nor are all of its terms explicitly negotiated. -Contributions from the Individual: effort, ability, loyalty, skills, time, competency. -Inducements from the Organization: pay, benefits, job security, status, promotion opportunities, career opportunities.

Employee Behavior

the patterns of actions by the members of an organization that directly or indirectly influences the organization's effectiveness.

Human Resources (HR)

the people comprising an organization's workforce. are critical for effective organizational functioning. HRM or "personnel" was once relegated to second-class status in many organizations, but its importance has grown dramatically in the last two decades. its new importance stems from increased legal complexities, the recognition that HR are a valuable means for improving productivity, and the awareness of the costs associated with poor HRM.

Collective Bargaining

the process by which labor and management negotiate conditions in good faith of employment for union-represented workers and draft a labor contract.

Recruiting

the process of attracting qualified persons to apply for the jobs that are open.

Leadership

the processes and behaviors used by someone, such as a manager, to motivate, inspire, and influence the behaviors of others.

Workforce Diversity

the range of workers' attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics. diversity can be a competitive advantage and can bring a wider array of information to bear on problems and can provide on insights on marketing products to a wider range of consumers.

Personality

the relatively stable set of psychological attributes that distinguish one person from another.

Human Resource Management (HRM)

the set of organizational activities directed at attracting, developing, and maintaining an effective workforce.

Recency Error

the tendency to base judgments on the subordinate's most recent performance because it is most easily recalled.

Compensation System

the total package of rewards that it offers employees in return for their labor.

Affirmative Action Plan

these organizations must have a written affirmative action plan that spells out employment goals for underused groups and how those goals will be met. also required to act affirmatively in hiring Vietnam-era veterans and qualified disabled individuals.

Employee Information Systems (Skills Inventories)

to facilitate both planning and identifying people for transfer or promotion, that contain information on each employee's education, skills, work experience, and career aspirations. this system can quickly locate every employee who is qualified to fill a position.

Positive Reinforcement

used when a company or manager provides a reward when employees exhibit desired behaviors, such as working hard, helping others, and so forth. rewards are tied directly to performance.

National Labor Relations Board (NLRB)

was established by the Wagner Act to enforce its provisions.

On-the-Job Training (Vestibule Training)

when employees must learn a physical skill, methods allowing practice and the actual use of tools and material are needed. (enables participants to focus on safety, learning, and feedback rather than on productivity).

State of Certainty

when the decision maker know with reasonable certainty what the alternatives are and what the conditions are associated with each alternative.there is little ambiguity and relatively little chance of making a bad decision. few organizational decisions are made under conditions of true certainty.

Cognitive Dissonance

when two sets of cognitions or perceptions are contradictory or incongruent, a person experiences a level of conflict and anxiety. also occurs when people behave in a fashion that is inconsistent with their attitudes.

Classical Theory of Motivation

workers are motivated solely by money. these studies were the first scientific attempts to break down jobs into easily repeated components and to devise more efficient tools and machines for performing them.