MGMT 500 - Final Exam

What are lower-order needs

-Physiological (rest, refreshment breaks, physical comfort on the job, resonable work hrs) -Safety needs (Job security, base compensation and benefits, safe working conditions) -Social needs (Friendly coworkers, good relationship with supervisor)

What are the 3 components of individual attitudes? Give example

1. Cognitive Component: reflects a belief or an opinion. (your MGMT 500 course is very interesting) 2. Affect/Emotional Component: Specific feeling (I feel good about being a MBA student) 3. Behavior Component: Attitude reflects intention to behave in a manner. (I am going to work hard to try and get an A in all my MBA classes.

What are House's leadership styles?

1. Directive Leadership: Giving directions on what to do, scheduling work to be done, clarifying the leaders role in the group. 2. Supportive Leadership: Treating team members as equals, being friendly and approachable 3. Achievement-oriented Leadership: Setting challenging goals, expecting highest levels of performance 4. Participative Leadership: Involving team members in decision making, consulting with them and asking for suggestions.

What are the 4 process theories

1. Equity Theory 2. Expectancy Theory 3. Goal-Setting Theory 4. Self-Efficacy Theory

Under the Expectancy Theory explain the three expectancy factors 1. Expectancy 2. Instrumentality 3. Valence

1. Expectancy (effort-performance expectancy): "Can I achieve the desired level of task performance?" Working hard will result in high task performance. 2. Instrumentatlity (Performance-outcome expectancy) "What rewards and work outcomes will be rewarded by successful performance? 3. Valence: "How highly do I value work outcomes?" The value someone assings to rewards and work outcomes

What are the two personal powers? Explain them

1. Expert Power: The capacity to influence other ppl because of specialized knowledge "You should do what I want because of my special expertise or information" 2. Referent Power: Influence behavior of others because they admire you and want to identify positively with you. Derived from charisma or interpersonal attractivness. "Its easier to get people to do what you want when they like you than when they dislike you"

Explain the 4 levels of the management process.

1. Planning: sets the direction and objectives 2. Organizing: brings together resources to turn plans into action 3. Leading: Builds commitments and enthusiam for people to apply their talents to help accomplish plans. 4. Controlling: Make sure things turn out right.

What are some causes of conflict

1. Role Ambiguities (unclear job expectations and other task uncertainties) 2. Resource Scarcities (having to share or compete to use resources) 3. Task interdependence (individuals or groups on others to do their job) 4. Competing objectives 5. Structural Differentiation 6. Unresolved prior conflicts

What are the 6 steps to make Goal setting work for you?

1. Set specefic goals: Leads to higher performance compared to general goals 2. Set Challenging goals: Higher performance compared to easy goals 3. Build goal acceptance and commitment: Ppl work harder for goals they accept and believe in, they resist goals forced on to them 4. Clairfy Goal priorities: which goals accomplished first and why 5. Provide feedback on goal accomplishment 6. Reward goal accomplishment

Projection

A perceptual error that assigns personal attributes to other individuals. For instance, thinking people share your same needs, desires, and values. For Ex: As a newly appointed manager you view your subordinates jobs as routine and decide to change the job structure to give them more responsability. However, your inability to view the jobs through their eyes is causing you to change the jobs as you see fit, not as they see fit.

Attitude

A predisposition to act in a certain way toward people and things in our enviroment

Within this Theory how can motivation be high?

By muliplying all of them together and if all of them are high, motivation will be high as well.

Define a Charismatic Leader and Transformational Leadership

Charismatic Leader: inspires followers in extraordinary ways Transformational Leadership: is inspierational and arouses extraordinary effort and performance.

Democratic style

Commited to both tasks and people. A high concern for people and a high concern for production

Under Step 3, "Compare actual performance with objectives and standards" what is the control equation used for this comparison?

Control equation: Need for action = Desired performance - Actual performance.

Explain the need for achievement within the Acquired needs theory

Desire to do something better or more efficiently, to solve problems, or master complex problems

What is used when job assignments are unclear

Directive Leadership because it helps to clarify task objectives and expected rewards

What are more powerful in influencing performance: emotional commitments or rational commitments (pay and benefits) to an organization?

Emotional Commitments

Feedback Controls (post-action controls and work outputs)

Ensure that final results are up to desired standards. Thus, focus on outputs rather than inputs. "Now that we are finished how well did we do?" "Solve problems after they occur"

Why is job design important

In order to build jobs that satisfy employees and satisfy their needs, capaiblities, and interests. In order to motivate them

What is Job Enlargement

Increase stask variety by combining into one job two or more tasks previously done by seperate workers

What is the Least-Preferred co-worker scale? What is the difference between a high and low LPC score?

LPC is used in Fiedler's contigency model to measure a person's leadership style and either behave as a task-motivated leader (low LPC score) or a relationship-motivated leader (high LPC score).

Servant Leadership

Leadership based on commitment to serving others, to helping ppl use their talents to full potential while working togehther for organizations that benefit society. Servant leadership is "other centered" and not "self centered" the focus is on the followers

What do Output Standards measure? What are some examples?

Measure actual outcomes or work results. Ex: EPS, sales growth, market share, quanity and quality of production, costs incurred, service or delivery time, error rates.

Reward Power

Offering something of value such as pay raises, bonuses, promotions, special assignments as a means of influencing other people. "If you do what I ask, I'll give you a reward"

What is used when performance incentives are poor

Participative leadership

The Psychological contract. Describe what the employer expects from the employee and vice-versa

Set of expectations held by an individual about what will given and recieved in the employemnt relationship. Also the expectations the employer has of the employee. Employer expects employees to be loyal, committed, show effort, give time, and show creativity. On the other hand, the Employee expects the employer to respect him, pay, train, and give him benefits, provide opportunities for job growth, and provide job security.

Selective Perception

Tendency to screen out information that makes us uncomfortable and comfortable information is allowed in. Thus, defining problems only from one desired point of view.

Explain Information Filtering

The intentinoal distortion of information to make it appear favorable to the person recieving it.

Explain Management by exception used in Step 4 "Take necessary action" What does it do for the organization?

The practice of giving attention to situations that show the greatest need for action and have substantial differences between actual and desired performance. -Saves time, energy, and other resources by focusing on high-priority areas.

What is impression management?

The systematic attempt to influence how other percieve us. It is a matter of routine in everyday life stemming from the way we dress, talk, act, and surround ourselves with things that convey a desirable image to other persons.

Ethnocentrism

The tendency to consider one's culture superior to any and all others.

What are Legitimate, reward, and coercive powers?

They are all power attained through the position one holds

Machiavellianism. Explain difference between high and low Mach.

This personality trait describes the extent to which someone is emotionally detached and manipulative in using power. "High Mach" personality is expolitative and unconcerned about others "Low-Mach" personality is deferential in allowing others to exert power over him or her.

Legitimate Power

To influence through authority. The right to delegate tasks and jobs due to one's organizational position or status to others in subordinate positions. "I am the boss, therefore, you are supposed to do as I ask"

Coercive Power

To punish or withhold positive outcomes as a means of influencing the behavior of people. "If you dont do what I want, Ill punish you"

Self-Serving Bias

When an individual blames their personal failures or problems on external causes and attributes success to internal factors. "Its not my fault" when something is wrong but "It was me, I did it" when things go right. This bias causes us to neglict the need for personal change.

Open Book management

Where managers provide employees with essential financial information about their companies. Ex: Knowing salaries of other employees.

Organizatoinal Citizenship

Willingness to go "beyond the call of duty" or "go the extra mile"

What is Power?

the ability to get someone else to do something you want done or to make things happen the way you want. The desire to influence and control others for the good of the group or organization as a whole

Personality

the profile of characteristics making a person unique from others

List and explain the 8 desiriable leadership traits

1. Drive - high energy, display initiative and are tenacious 2. Self-confidence - Trust themselves and have confidence in abilities 3. Creativity 4. Cognitive Ability - Have intelligence to integrate and interpret information 5. Job-relevant knowledge - Know their industry and its technical foundations 6. Motivation 7. Flexbility 8. Honesty and integrity

Authoritarianism

Degree to which a person defers in authority and accepts status differences.

What does high job involvement result in?

Job involvement is the extent to which a employee is dedicated to a job and someone with high job involvement would be expected to work beyond expectations.

Define job simplification and explain the logic behind simple jobs?

Job simplification: employes ppl. in well-defined and standardized jobs. Thus, there is narrow job scope. As a result, workers should be easier to and quicker to train, less difficult to supervise and easy to replace. Also, workers should become good at their jobs because of the repititive nature.

Return on Assets

ROA = Net Income/Total Assets

Locus of Control. Explain difference between internals and externals

The extent to which one believes that what happens is within one's control. Internals are more self-confident and accept responsability for their actions while Externals are prone to blame others and outside forces to what happens to them.

What is Active Listening?

When someone helps someone say exactly what he or she really means. It involves sincereity and patience to find out the true meaning. Also involves withhilding premature evaluations or interpretations.

The Deficit Principle

A satisified need is not a motivator of behavior. People are expected to act in ways that satisfy deprived needs to which a defecit exists.

Explain Self-Managing work Teams which differs from the work units with first level supervisors. What is this also reffered to as?

Autonomous work groups: Teams of workers whose jobs have been redesigned to create high degree of task interdependence and the authority to make decisions about how they share and complete their work. Key to successfully running these team is multitasking.

What does a visionary leader do?

He brings meaning to people's work making what they do seem worthy and valuable. He provides an understanding of how to get to the future.

Bureaucratic Control

Influences behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision

In response to the Equity Theory what will employees do as a reaction to restore equity Give real world example of this

1. Shirk (do less work and lower quality work) 2. Ask for a raise from manager 3. Compare themselves with someone who is worse off to phsycologically restore equaity 4. Leave job 5. Steal Gaps in CEO pay and how they continue to get paid well even when company is suffering.

What is Vision?

A future that one hopes to create or achieve in order to improve the present state of affairs. Truly exceptional leaders are really good at turning their visions into accomplishments.

Explain Self-Efficacy. What is the essence behind it in regards to motivation?

A person's belief that he is capable of performing a task. The essence behind the theory is that when ppl. believe themselves to be capable, they will be motivated to work hard at a task

What does profitability measure What are the profitability ratios most commonly used?

Ability to earn revenues greater than costs. -Gross Margin -Net Margin -Return on Assets -Return on Equity

What does Asset Management measure? What ratios are used? What measure is desired

Ability to use resources efficiently and operate at minimum costs (i.e. measures asset and inventory efficiency) -Asset Turnover -Inventory Turnover

What is used when task challange is insufficient in job

Achievement-oreinted leadership

Descibe an autocratic style leadership

Act in a unilateral, command-and-control fashion. Retains authority over others through status. Emphasizes task over people.

What is Self-Control. Explain in relation to Theory Y

An internal control that occurs through self-discipline in fulfilling work and personal responsibilities. Theory Y illustrates that people are willing to escercise self-control in their work

Explain the issues with team size

As teams get bigger, there is an increase in communication which becomes more congested. Teams with odd numbers have issues with ties when votes need to be taken to make decisions. Teams larger than six or seven can be difficult to manage. "No team should be larger than two pizzas can feed"

Asset Turnover

Asset Turnover = Sales/Total Assets

Fundamental Attribution Error

Attributes another person's performance problems more to overestimates of internal factors of failure rather than underestimates external factors of failure relating to the enviroment

Debt Ratio. What is a good number for a debt ratio?

Debt ratio = Total Debts/Total Assets The lower this ratio the better because you want fewer debts and more assets

What about Organizational Commitment?

Degree of loyalty towards organization and those with high organizational commitment identify strongly with organ and take pride in considering themselves a member.

Self-Monitoring. Explain difference b/w low and high self monitoring.

Degree to which someone is able to adjust and modify behavior in response to the immediate situation and to external factors. High self monitoring are flexible in chaning behavior from one situation to the next while Low self monitoring is predictable and tends to act consistently regardless of circumstances

Explain the need for power within the Acquired Needs Theory. Explain the two different types of power and which should be avoided for managers

Desire to control, influence, or be responsible for other people. 1. Need for personal power: Exploitative and involves manipulation for the pure sake of personal gratification. (avoid this) 2. Need for Social Power: Use of power directed toward group or organizational objectives rather than personal gains (needed for management)

What constitutes desired performance? -Engineering Comparisons -Historical Comparisons -Relative Comparisons

Enginnering Comparisons: UPS carefully measures the routes and routines of its drivers to establish time expected per delivery Historical Comparisons: Past experience becomes baseline for evaluating current performance. Relative Comparisons: Benchmakring performance against that being achieved by other ppl, work units, or organizations.

Type A Personality

Extreme achievement, impatience, and perfectionaism. Bring stress to themselves even in stress free situations. -Feels guilty when relaxing, hurrying or interrupting speech of others.

Concurrent Controls (Steering controls and work throughputs) What does it usually involve?

Focuses on controlling what happens during the work process. "Solve problems while they are occuring" "What can we do to improve things right now" Usually involves control through direct supervision and real time monitoring.

Laissez faire style

Focuses on min effort to get work done. "do the best you can and dont bother me"

Gross Margin

Gross Margin = Gross Income/Sales

Inventory Turnover. What outcome do you want from these two ratios?

Inventory Turnover = Sales/Average Inventory Higher is better, you want more sales relative to assets and inventory.

Explain Communication Transparency. Give Ex

Involves openly sharing honest and complete information about the organization and workplace. Ex: Posting financial documents of public company on website with easy access.

What does the ERG Theory do to Maslow's 5 needs categories? List the categories

It collapses them into three categories: -Existence Needs (Desire for physical well being) -Relatedness Needs (Good interpersonal relationships) -Growth Needs (Personal growth and development) These are higher order needs in relation to Maslows model

What is Job Enrichment

It increases job depth where planning and controling duties are performed by the individual worker rather than the supervisor.

What is leadership? What does leadership success rest with?

Leadership is the process of inspiring others to work hard to accomplish important tasks. Rests with the ability to make things happen through the use of power to influence the behavior of other people.

What do Input Standards measure?

Measure work efforts that go into a performance task. Ex: A college professors input standards are issuance of an orderly syllabus, meeting all class sessions, and returning exams and graded assignments in a timely fashion.

What does Leverage measure? What ratio is used.

Measures ability to earn more in returns that the cost of debt (i.e. measures use of debt) Debt ratio

What does Liquidity measure What are 2 ratios that measure liquidity for a company?

Measures firms ability to generate cash to pay bills Current Ratio = Current Assets/Current Liabilities Quick Ratio or Acid Test = Current Assets - Inventories/Current Liabilities Higher these ratios the better because the more it shows a comapny has enough assets to meet their liabilities.

What do must discussions of motivation start with in regards to the employee?

Needs: The unfulfilled physiological or psychological desires

Net Margin

Net Income/Sales

Is one of these leadership styles best?

No, not one set of behaviors or styles works best all of the time. Good leadership depends on a match or fit between a persons leadership style and situational demands.

What is noise? What are the 5 common sources of noise that create communication barriers

Nosie is anything that interferes with the effectivness of the communication process. 1. Information Filtering 2. Poor choice of channels 3. Poor written or oral expression 4. Failures to recognize nonverbal signals 5. Physical distractions

Halo Effects

Occurs when one attribute of a person is used to develop an overall impression of a person or situation. This creates problems in performance reviews and interviews. Ex: a persons punctuality may become the "halo" for a positive overall performance assessment, even though high performance may or may not be true.

Empowerment

Process through which managers enable and help others gain power and achieve influence within the organization

Return on Equity What measure to you want these 4 ratios to have?

ROE = Net Income/Owner's Equity Higher ratio the better, you want more profit relative to sales, assets, and equity

Who developed the 3rd contigency leadership style known as the path-goal theory? What is it about?

Robert House. Like Fiedler, House believes that leaders need to seek the right fit between leadership and situation but also believes a leader can use 4 leadership styles and shift back and forth among them.

Who developed the 2 factor theory? What are the 2 factors that turn workers on and off?

Satisfied Factor: Found in job content (what ppl do in terms of job tasks) This turns worker on and are considered motivator factors which are linked with job satisfaction. (sense of achievment, feelings of recognition, a sense of responsability, opportunity for advancement) Hygiene Factor: Found in job context (the work setting in which they do it) and include working conditions, interpersonal relations, organizational policies, and salaries Improving the hygiene factors decreases job dissastisfaction. This turns workers off and are linked with job dissastifaction

The Progression Principle

States that a need isnt activated until the next lower-level need is satisfied. Need to advance step-by-step and ends at self-actulization.

Frustration-Regression Principle

States that an already sastisfied need can become reactivated when a higher-level need is blocked.

What are the 4 steps in the Control Process

Step 1: Establish performance objectives and standards (planning) Step 2: Measure actual performance Step 3: Compare actual performance with objectives and standards Step 4: Take necessary action

What is used when worker self-confidence is low

Supporitive leadership which can increase confidence by offering needed assitance

Feedforward Controls (Preliminary controls and work inputs)

Takes place before a work activity begins. Ensures directions and resources are right before work begins. "What needs to be done before we begin?" "Solve problems before they occur"

What is the premise behind the Goal-Setting Theory?

Task goals can be highly motivating if they are properly set and if they are well managed.

What does the Hersey-Blanchard situational leadership model suggest?

That successfull leaders do adjust their leadership styles. They do so contengently and relative to the task maturity or task readiness of followers.

What is Chanel richness? Where do face-to-face and emial, reports, and memos rank in chanel richness?

The capacity of a communication channel to effectively carry information. Face-to-Face is very high in channel richness because of the real-time feedback. Email, memos, and reports are lower in richness because they are one-way channels with limited opportunity for feedback.

Cognitive Dissonance

The discomfort felt when attitude and behavior are inconsistent. Ex: Changing future behavior to fit the attitude (dropping out of intramural sports to get extra stud time)

Define Controlling

The process of measuring performance and taking action to ensure a desired result. Helps to ensure performance is consistent with plans and that accomplishments throughout an organization are coordinated in a means-ends fashion.

Explain Perception and what they are influenced by

The way we process information from the enviroment to make the decisions that guide our actions. Since they are influenced by cultural background, values, and other personal and situational circumstances ppl. percieve the same ppl, things or situations differently.

Higher-order needs

These relate to psychological development -Esteem needs (Responsability in job, recognition from boss, promotion to higher status job) -Self-actualization needs (creative and challenging work, participation in decision making, job flexibility and autonomy)

What can job rotation be used for?

This increases job scope and can be used as a training approach where ppl can learn about jobs performed by others.

What is Interactive Management

This is Management by wandering around (MBWA): invovles directly dealing with subordinates or team members by regularly walking around and talking with them. Talk face-to-face with them to find out what is going on or having hours dedicated to office visits where suboordinates can walk in to discuss things

Human Relations style

This leader emphasizes people over task. Focuses on peoples needs and building relationships

Balanced Scorecards. What 5 key areas does it take score of? Give Ex

Use of scoring to record and track performances. It tallies organizational performance in financial, customer service, internal procss, and innovation and learning areas. Ex: Instructor for a class takes attendance and assigns grades based on it so students tend to come to class. An employer tracks the number of customers each employee serves per day, employees tend to serve more customers.

What is an employee invovlement team. What is one form of this?

When cross-functional team members meet on a regular basis with the goal of continuous improvement in the team. Quality Circle: A team of employees who meet periodically to discuss ways of improving work quality.

When is the potential for self-control increased?

When employees have a clear sense of organizational mission, know their goals, and have the resources necessary to do their jobs well.

Explain a Project Team or Task Force

When ppl come together to work on a common problem but on a temporary rather than a permanent basis. The goals and tasks assigned are specific and completion deadlines are clearly defined.