Management Exam 2

The Pubic's Opinion of Business Ethics

The pubic's view of business ethics has never been very high - many citizens see business ethics as essentially a contradiction in terms, an oxymoron, and think that there is only a fine line between a business executive and a crook

Motivation

The set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal

Control Loss

The situation in which behavior and work procedures do not conform to standards

Reinforcement Theory

The theory that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently

Goal-Setting Theory

The theory that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement

Expectancy Theory

The theory that people will be motivated to the extent to which they believe their efforts will lead to good performance, that good performance will be rewarded, and they will be offered attractive rewards

Employee Separation

The voluntary or involuntary loss of an employee Voluntary: employees quit or retire Involuntary: employers terminate or lay off employees

The sense that concern for fairness, justice, and due process to people, groups, and communities should be woven into managerial decision-making is called:

Moral obligation

Overreward

A form of inequity in which you are getting more outcomes relative to inputs than your referent *Leads to guilt

What makes a project manager's job difficult?

Managing people who do not report to him/her

Balanced Scorecard

Measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning

Objective Performance Measures

Measures of job performance that are easily and directly counted or quantified

Subjective Performance Measures

Measures of job performance that require someone to judge or assess a worker's performance

The Balanced Scorecard - 4 different perspectives on performance:

1. Customer perspective 2. Internal perspective 3. Innovation and learning perspective 4. Financial perspective

Control Methods

1. *Bureaucratic Control*: the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures 2. *Objective Control*: the use of observable measures of worker behavior or outputs to assess performance and influence behavior -*Behavior Control*: the regulation of the behaviors and actions that workers perform on the job -*Output Control*: the regulation of workers' results or outputs through rewards and incentives 3. *Normative Control*: the regulation of workers' behavior and decisions through widely shared organizational values and beliefs 4. *Concertive Control*: the regulation of workers' behavior and decisions through work group values and beliefs 5. *Self Control* (self-management): a control system in which managers and workers control their own behavior by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement

3 Approaches to Business Ethics

1. *Conventional approach*: based on how common, everyday society views business ethics today - based on ordinary, common sense and prevailing practice 2. *Principles approach*: based on the use of ethics principles or guidelines to justify and direct behavior, actions, policies, and practices 3. *Ethical tests approach*: based on short, practical questions or "tests" to guide ethical decision making, behavior, and practices

Theory of Constraints (Goldratt): Operations Process Improvement

1. *Identify system constraint*: slowest sub-process or bottleneck 2. *Exploit system's most critical constraint*: max output of constraint, increase quality of inputs, slow all to pace of constraint 3. *Subordinate all other activities to the needs of the constraint* 4. *Elevate systems constraints*: find ways to increase capacity of constraint -> increase pace/$$ for all 5. *Repeat, focusing on new constraint*

Personnel Control Concerns

1. Attendance 2. Work/quality 3. Interactions with others 4. Felonies (theft, threat to safety, violence)

Re-Direction

1. Describe problem clearly and without blame 2. Take the blame 3. Make sure task is understood 4. Express trust and confidence

Equity Theory - Response to inequity may include:

1. Distort own/others' inputs or outcomes 2. Induce others to change inputs/outcomes 3. Change own inputs/outcomes 4. Choose a different comparison 5. Quit job

3 Basic Control Methods

1. Feedback 2. Concurrent 3. Feedforward

Competitor intelligence experts suggest that ____% of what managers need to know about competitors can be found out from their own employees, suppliers, and customers.

80

Standards

A basis of comparison for measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory

Feedback Control

A mechanism for gathering information about performance deficiencies after they occur

Quantitative Forecasting

Applying mathematical rules to hard data (e.g., to forecast product demand market share/sales)

Integrity Strategy

Characterized by a conception of ethics as the driving force of an organization

The key operating question of immoral management is:

Can we make money with this action, regardless of what it takes?

Value

Customer perception that the product quality is excellent for the price offered

People who perceive that they have been underrewarded may try to restore equity by:

Decreasing or withholding their inputs (that is, effort)

Training provides opportunities for employees to

Develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their performance.

Biographical Data (biodata)

Extensive surveys that ask applicants questions about their personal backgrounds and life experiences

A group of actors gather to read the critical reviews of the new play they presented to audiences last night. The actors are looking for ____ rewards.

Extrinsic

One of the advantages of project teams is their

Flexibility

Compliance Strategy

Focused on submission to the law as its driving force; lawyer driven and is oriented not toward ethics or integrity but toward conformity with existing regulatory and criminal law; uses deterrence as its underlying assumption

Project Management

Getting a project's activities done on time, within budget, and according to specifications a. Define project goals b. Identify all required activities, materials, and labor c. Determine the sequence of completion d. Estimate time to activities and completion date e. Determine additional resource requirements f. *Monitor and adjust*

The goal at Wegmans is to create "telepathic customer service." Employees are allowed, even encouraged, to do anything they need to do to satisfy customers. In fact, chefs at Wegmans have gone to customers' homes to fix incorrect food orders. In terms of goal-setting theory, these chefs had exceptional ____.

Goal acceptance *Goal acceptance is defined as the extent to which people consciously understand and agree to goals. The chef "house call" is an example of high goal acceptance by an employee.

____ is the extent to which goals are detailed, exact, and unambiguous.

Goal specificity

Expectancy theory holds that for people to be highly motivated, all three variables - valence, expectancy, and instrumentality - must be

High

Job Performance

How well someone performs the requirements of the job

Outcome/Input (O/I) Ratio

In equity theory, an employee's perception of how the rewards received from an organization compare with the employee's contributions to that organization

What is also called avoidance learning?

Negative reinforcement

Downsizing

Planned elimination of jobs in a company a. Permanently changes employee-manager relationship (even if no losses in your area) b. Productivity may increase in short-term, but will decrease overall: help employees manage fear -> cure = action c. Leads to loss of skilled workers d. Impacts recruitment of talent

____ are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

Standards

Walgreens elected to reduce expenses by no longer accepting American Express cards at Walgreens stores. This occurred during which step of the control process?

Taking corrective action

____ describes the average level of ability, experience, personality, or any other factor on a team.

Team level

Specific Ability Tests (Aptitude Tests)

Tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well

Work Sample Tests

Tests that require applicants to perform tasks that are actually done on the job

Economic Value Added (EVA)

The amount by which company profits (revenues minus expenses minus taxes) exceed the cost of capital in a given year

The former CEO of Bendix Corporation blames the apparent decline in business's ethical behavior on:

The contexts in which corporate decisions are made

Regulation Costs

The costs associated with implementing or maintaining control

Ability

The degree to which workers posses the knowledge, skills, and talent needed to do a job well

Goal Difficulty

The extent to which a goal is hard or challenging to accomplish

Goal Specificity

The extent to which goals are detailed, exact, and unambiguous

Cybernetic Feasibility

The extent to which it is possible to implement each step in the control process

Intrinsic Rewards

The natural rewards associated with performing a task or activity for its own sake

Expectancy

The perceived relationship between effort and performance

The ethical principle that states, "we should always act so as to produce the greatest ratio of good to evil for everyone" is

Utilitarianism

Bottom-Line Mentality

When respect for the authority structure, loyalty, conformity, performance, and results are operating together they form a composite bottom-line mentality that is remarkably influential in its impact on individual and group behavior

Forecasting techniques are most accurate when ________

When the environment is not rapidly changing

Ethical Relativism

Where we pick and choose which source of norm we wish to use on the basis of what will justify our current actions or maximize our freedom; a danger of the conventional approach

The key operating question of moral management is:

Will this action be fair to all stakeholders?

Limitations to "at-will" doctrine

a. *Employee contracts* b. *Employee labor unions* -Collective bargaining agreement = a contract between firms and unions covering wages, hours, working conditions -Texas as a "right to work" state c. *Governmental laws and regulations* -Limit "at will" managerial discretion in hiring, promoting, and discharging employees

Goal-Setting Theory (Edwin Locke)

a. Specific goals with feedback lead to increased performance -What gets measured, gets done b. Difficult goals, *when accepted*, result in higher output than easy goals c. Culture bound to USA/Canada d. Requires: -Public, self-set goal -High *internal* locus of control -Achievers - don't like hard goals, must accept them to be motivated

An ESOP is an ____.

employee stock ownership plan

If an HR manager were allowed to use just one selection test, _____ would be the one to use.

Cognitive ability tests

Descriptive Ethics

Concerned with describing, characterizing, and studying the morality of people, an organization, a culture, or a society

Business Ethics

Concerned with morality and fairness in behavior, actions, policies, and practices that take place within a business context

Business ethics is:

Concerned with right and wrong behavior within a business context

Normative Ethics

Concerned with supplying and justifying a coherent moral system of thinking and judging; seeks to uncover, develop, and justify basic moral principles that are intended to guide behavior, actions, and decisions

Persistence of Effort

Concerned with the choices that people make about how long they will put forth effort in their jobs before reducing or eliminating those efforts

Initiation of Motivation

Concerned with the choices that people make about how much effort to put forth in their jobs

Direction of Effort

Concerned with the choices that people make in deciding where to put forth effort in their jobs

3 Strategies Used for Waste Prevention and Reduction

1. Good housekeeping 2. Material/product substitution 3. Process modification

3 Models of Management Ethics

1. Immoral management 2. Moral management 3. Amoral management

3 Basic Components of Equity Theory

1. Inputs 2. Output 3. Referents

Equity Theory

A theory that states that people will be motivated when they perceive that they are being treated fairly

Structural Aspects of Unconscious Accounting Bias

Ambiguity Attachment Approval

The model of ethical management in which managers fail to take morality into account when making decisions is:

Amoral management

Surface-Level Diversity

Differences such as age, sex, race/ethnicity, and physical disabilities that are observable, typically unchangeable, and easy to measure

Which of the following is a category of reinforcement schedules?

a. Instrumental b. Contiguous c. *VARIABLE INTERVAL* d. Adjacent e. Synergistic

Written Tests

a. Intelligence b. Aptitude c. Ability d. Interests e. Integrity f. Personality

Selection Summary

a. Keep it job related b. Treat all candidates the same c. Use valid predictors (e.g. employment tests) d. Don't discriminate on legally protected characteristics

Forecasting

*Creating predictions of outcomes* a. Based on environmental scanning data b. Most accurate in stable environments

Applying Motivation Theories

*Employee Involvement Programs* a. Examples: -Participative management -Quality circles/total quality improvement -Shared/self governance, work councils b. Theoretical support -Herzberg's Two-Factor Theory, Goal Setting Theory, Job Characteristics Model -Intrinsic motivator c. Employee Recognition Programs -Reinforcement theory (extrinsic motivation) -"A sincere compliment is one of the most effective teaching and motivational methods in existence" -Zig Ziglar d. Pay-for-Performance/Skill-Based Pay Plans -Expectancy theory, reinforcement theory e. Stock Option Programs -Expectancy theory -Up market = motivator -Down market = de-motivator f. Phantom Stock -Private, closely held companies that will never go public

Equity Theory

*Input:Output Ratio* a. Employees weigh what they put into a job situation (*input*) against what they get from it (*outcome*) b. Then they compare their input-outcome ratio with relevant others c. If inequities exist, employees will try to correct them

Disparate Treatment

*Intentional discrimination* that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs

Scheduling

*Plans that coordinate activities* a. Provide a detailed allocation of resources b. Linked to operational needs or project outcomes -What activities have to be done -What order they are completed -Who is to do each -When they are to be completed

Project Scheduling: PERT Analysis

*Program Evaluation and Review Technique* a. A flow chart diagram b. Sequence of activities needed to complete a project c. Time or costs associated with each activity

Goal Setting vs. Reinforcement

*Reinforcement = behavioral theory* a. Actions directed by external (extrinsic) reinforcement of desired behaviors b. Ignores inner state of the individual *Goal setting = cognitive theory* a. Individual's purposes direct their actions b. Intrinsic motivator

Adverse Impact

*Unintentional discrimination* that occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others

Practical steps managers can take to use *reinforcement theory* to motivate employees

1. *Identify*: singling out critical, observable, performance-related behaviors 2. *Measure*: determining the baseline frequencies of these behaviors 3. *Analyze*: studying the causes and consequences of these behaviors 4. *Intervene*: changing the organization by using positive and negative reinforcement to increase the frequency of these critical behaviors 5. *Evaluate*: assessing the extent to which the intervention actually changed workers' behavior

2 Kinds of Amoral Management

1. *Intentional*: amoral managers do not factor ethical considerations into their business decisions, actions, and behaviors because they believe business activity resides outside the sphere to which moral judgments apply 2. *Unintentional*: do not think about business activity in ethical terms, but for different reasons; casual, careless, or inattentive Operating strategy: "Can we make money with this action, decision, or behavior?"

Two Hypotheses Regarding the Models of Management Morality

1. *Population Hypothesis*: the distribution of the three models might approximate a normal curve, with the amoral group occupying the large middle part of the curve 2. *Individual Hypothesis*: within the individual manager, these three models may operate at various times and under various circumstances

Employee Control Steps

1. *Set clear goals/expectations* -Work rules/policies -Work quantity -Work quality -Interpersonal/team/culture 2. *Measure/observe* 3. *Provide feedback* -Connect to personal goals -Praise/recognition -2 ways to correct: re-direction and discipline/aversive

Employee Discipline Process

1. *Verbal warning* -Redirection - memo to file 2. *Written counseling* -Copied to HR -Includes plan for improvement with specific metrics and dates for evaluation -Failure to improve and sustain performance will result in further disciplinary action up to and including termination 3. *Suspension/termination*

Practical steps managers can take to use goal-setting theory to motivate employees

1. Assign specific, challenging goals 2. Managers should make sure workers truly accept organizational goals 3. Provide frequent, specific, performance-related feedback

Traditional approach to controlling financial performance focuses on accounting tools such as

1. Cash flow analysis 2. Balance sheets 3. Income statements 4. Financial ratios 5. Budgets

Take Managerial Action

1. Doing nothing: only if deviation is judged to be insignificant 2. Correcting actual (current) performance: -Immediate corrective action: redirect vs. aversive -Investigative action to locate source of deviation 3. Revising the standard

Controlling Quality - Measured in 3 ways:

1. Excellence 2. Value 3. Conformance to specifications

Basic Components of Goal-Setting Theory

1. Goal specificity 2. Goal difficulty 3. Goal acceptance 4. Performance feedback

Advantages of the Balanced Scorecard

1. It forces managers at each level of the company to set specific goals and measure performance in each of the four areas 2. It minimizes the chances of *suboptimization*, which occurs when performance improves in one area at the expense of decreased performance in others

Making Forecasting More Effective

1. Know your limits - forecasting more difficult in dynamic environments and cannot predict non-seasonal events (e.g., recessions) 2. Use simple methods; use multiple methods 3. Involve more people in the process 4. A "no change" forecast is right 50% of the time 5. Use rolling forecasts over 12-18 months instead of single, static forecast 6. Don't assume turning points accurately identified 7. Forecasting *supports* decision making - don't let the numbers make all your decisions

Elements of Moral Judgment

1. Moral imagination 2. Moral identification and ordering 3. Moral evaluation 4. Tolerance of moral disagreement and ambiguity 5. Integration of managerial and moral competence 6. A sense of moral obligation

Levels of Moral Development

1. Preconventional level 2. Conventional level 3. Postconventional level (autonomous or principled level)

Characteristics of Effective Performance Appraisal Systems

1. Specific written instructions/training for supervisors 2. Job content = basis of appraisal 3. Behavior-oriented NOT personality trait-oriented 4. Results reviewed by VP/HRM 5. Includes employee self-review 6. Includes grievance process 7. All employee goals tie to company goals 8. All objectives specific to individual 9. Compensation and experience = basis for expectations 10. Past performance sets new base for expected performance 11. Rewards exceeding expectation and penalize not meeting expectation 12. Overall team success large part of individual success

Practical steps managers can take to motivate employees to increase their effort

1. Start by asking people what their needs are (what they like and then giving them the rewards they want) 2. Satisfy lower-order needs first 3. Managers should expect people's needs to change 4. As needs change and lower-order needs are satisfied, create opportunities for employees to satisfy higher-order needs

Practical steps managers can take to use equity theory to motivate employees

1. Start by looking for and correcting major inequities 2. Managers can reduce employees' inputs 3. Managers should make sure decision-making processes are fair

Practical steps managers can take to use expectancy theory to motivate employees

1. They can systematically gather information to find out what employees want from their jobs 2. Managers can take specific steps to link rewards to individual performance in a way that is clear and understandable to employees 3. Managers should empower employees to make decisions if management really wants them to believe that their hard work and effort will lead to good performance

2 Forms of Inequity

1. Underreward 2. Overreward

Expectancy theory holds that people make conscious choices about their motivation. The three factors that affect those choices are:

1. Valence 2. Expectancy 3. Instrumentality

4 Important Ethical Questions

1. What is? 2. What ought to be? 3. How to we get from what is to what ought to be? 4. What is our motivation in all this?

Immoral Management

An approach that is devoid of ethical principles or precepts and at the same time implies a positive and active opposition to what is ethical Operating strategy: "Can we make money with this action, decision, or behavior, regardless of what it takes?"

Profit Sharing

A compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation

Piecework

A compensation system in which employees are paid a set rate for each item they produce

Commission

A compensation system in which employees earn a % of each sale they make

Employee Stock Ownership Plan (ESOP)

A compensation system that awards employees shares of company stock in addition to their regular compensation

Stock Options

A compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price

Human Resource Information System (HRIS)

A computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process

Underreward

A form of inequity in which you are getting fewer outcomes relative to inputs than your referent is getting *Leads to anger and frustration

Concurrent Control

A mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback

Feedforward Control

A mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur

360-Degree Feedback

A performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves

Customer Defections

A performance assessment in which companies identify which customers are leaving and measure the rate at which they are leaving

Job Evaluation

A process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it

Control

A regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action when necessary

Extrinsic Rewards

A reward that is tangible, visible to others, and given to employees contingent on the performance of specific tasks or behaviors

Four-Fifths (or 80 Percent) Rule

A rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact. A violation of this rule occurs when the selection rate for a protected group is less than 80 percent, or four-fifths, of the selection rate for a non protected group

Intermittent Reinforcement Schedule

A schedule in which consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviors has occurred

Continuous Reinforcement Schedule

A schedule that requires a consequence to be administered following every instance of behavior

Two-thirds of companies that downsize will downsize

A second time within a year.

Assessment Centers

A series of managerial simulations, graded by trained observers, that are used to determine applicants' capability for managerial work

The term work team is used to describe

A small number of people. But its members have complementary skills and hold themselves mutually accountable (rather than being responsible to a superior) for pursuing a common purpose, achieving performance goals, and improving interdependent work processes. That is, these individuals must accept the responsibility and hold each other mutually accountable, in order to be considered a team rather than a group.

The minimum standard of ethical behavior can be thought of as:

Adhering to the law

Budgeting, scheduling, breakeven analysis, and linear programming are all techniques for ______

Allocating resources

Bona Fide Occupational Qualification (BFOQ)

An exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business." BFOQs are strictly monitored by the Equal Employment Opportunity Commission

Expectancy Theory (VROOM)

An individual's willingness to put forth effort is driven by the expectation that effort will be followed by outcomes that are attractive Key questions: a. Will my effort lead to the expected level of performance? (A) *Expectancy* b. What outcome/reward will I receive if I perform at that level? (B) *Instrumentality* c. How attractive is the reward to me? Does it help me achieve my personal goals? (C) *Valence*

Variable Ratio Reinforcement Schedule

An intermittent schedule in which consequences are delivered following a different number of behaviors, sometimes more and sometimes less, that vary around a specified average number of behaviors

Fixed Ratio Reinforcement Schedule

An intermittent schedule in which consequences are delivered following a specific number of behaviors

Fixed Interval Reinforcement Schedule

An intermittent schedule in which consequences follow a behavior only after a fixed time has elapsed

Variable Interval Reinforcement Schedule

An intermittent schedule in which the time between a behavior and the following consequences varies around a specified average

Changing the referent is

Another way of restoring equity *In this case, people compare themselves with someone other than the referent they had been using for previous O/I ratio comparisons

Managers can motivate employees to increase their efforts by ____.

Asking employees what their needs are then matching rewards to those needs

Central Tendency Error

Assessors rate all workers as average or in the middle of the scale

Halo Error

Assessors rate all workers as performing at the same level (good, bad, or average) in all parts of their jobs

Leniency Error

Assessors rate all workers as performing particularly well

Providing Performance Feedback

Avoid praising ability a. Focus on praising aspects of performance that are under an employee's control (persistence, careful planning, creative approach, etc.) b. Focusing on ability (smart, natural talent) will decrease employee resilience and willingness to take risk (children's puzzle study)

To improve traditional performance appraisal feedback sessions, it is recommended that managers ____.

Base performance appraisal feedback sessions on self-appraisals

Reinforcement Theory: Operant Conditioning

Behavior... a. Is a function of its consequences b. Is learned through experience c. Is taught by making rewards contingent on behaviors d. Rewarded behavior likely to be repeated e. Punished or ignored behavior less likely to be repeated

____ control regulates workers' actions and routines on the job, while ____ control measures the results of their efforts.

Behavior; output

Reinforcement Contingencies

Cause-and-effect relationships between the performance of specific behaviors and specific consequences 1. Positive reinforcement 2. Negative reinforcement 3. Punishment 4. Extinction

Critical Chain: Key Tenets

Climate bad multi-tasking a. Focus on one task until completed or can't work on it anymore - convergence point (don't work a little bit on all tasks) b. Critical chain tasks are worked on first and non-critical chain tasks are worked on only when no critical chain tasks exist Stagger project start times when projects will compete for critical resources

____ control is a method of gathering information about performance deficiencies as they occur.

Concurrent

Moral Management

Conforms to the highest standards of ethical behavior or professional standards of conduct Operating strategy: "Will this action, decision, behavior, or practice be fair to all stakeholders involved as well as to the organization?"

Teleological theories focus on

Consequences

For punishment to work (i.e., to weaken the frequency of undesirable behaviors without creating a backlash), the punishment must be strong enough to stop the undesired behavior and must be administered ____.

Consistently, contingently, and quickly

Control is...

Continuous Dynamic Cybernetic

Self-designing teams have all the characteristics of self-managing teams, but they can also

Control and change the design of the teams themselves, the tasks they do and how they do them, and who belongs to the teams.

The traditional approach to controlling financial performance does NOT examine ____.

Customer defections Does examine: Financial ratios Cash flow Income statements Budgets Balance sheets

An article on public libraries contained the following statement: "The Balanced Scorecard helps organize and run the library according to a specific strategic plan, while demonstrating the library's value to the community as a whole." When dealing with the customer area of the Balanced Scorecard, the article advised librarians to use customer surveys. Why might this be a poor strategy to use?

Customer surveys are typically misleading, skewed to positive feedback

When expectancies are strong,

Employees believe that their hard work and efforts will result in good performance

Feedback can lead to stronger motivation and effort if it _____

Encourages employees to set higher, more difficult goals after the initial goals are accomplished.

Increasing outcomes is another way people try to restore

Equity *Might include asking for a raise or pointing out the inequity to the boss and hoping that he or she takes care of it

Frans de Waal: Moral behavior in animals

Equity Theory example - Capuchins reject unequal pay

Part-time workers at Wegmans such as cashiers and baggers, most of whom are high-school students, can earn a scholarship bonus (for good grades) of $6,000 over their four years of high school. These bonuses are examples of ____ rewards.

Extrinsic

5 factors rated as "very important" by employees:

Extrinsic factors: a. Pay b. Benefits c. Job security/organizational financial stability Intrinsic factors: a. The work itself b. Opportunities to use one's skills and abilities

Situational Constraints

Factors beyond the control of individual employees, such as tools, policies, and resources that have an effect on job performance

Process modification, material/product substitution, and ____ are the three strategies used for waste prevention and reduction.

Good housekeeping

Referents

In equity theory, others with whom people compare themselves to determine if they have been treated fairly

Inputs

In equity theory, the contributions employees make to the organization

Outputs

In equity theory, the rewards employees receive for their contributions to the organization

Performance Feedback

Information about the quality or quantity of past performance that indicates whether progress is being made toward the accomplishment of a goal

The disadvantages of teams and teamwork are

Initially high turnover, social loafing, and groupthink.

According to a survey done on teaching evaluations, engineering students consider the improvement of teaching to be the most important outcome of the evaluation process. In terms of the expectancy theory, the likelihood that students feel their inputs on the evaluations will lead directly to improved instruction is called ____.

Instrumentality *Instrumentality is the perceived relationship between performance and rewards

The most serious danger of using the *conventional approach* to business ethics is:

Lapsing into ethical relativism

What companies did IBM benchmark against in an effort to decrease employee theft?

Las Vegas casinos

Normative Control...

Leads to an emphasis on very selective hiring

At the macro level, big business is being questioned for its:

Legitimacy

Maria manages a manufacturing plant that produces two kinds of cinamon-scented home fragrance products: wax candles and a woodchip potpourri sold in bags. Business is good, and she can sell all of the products she can produce Her dilemma: given that the bags of potpourri and the wax candles are manufactured in the same facility, how many of each product should she produce to maximize profits? Which resource allocation technique should Maria use to answer her question?

Linear programming

Employee Turnover

Loss of employees who voluntarily choose to leave the company

Dysfunctional Turnover

Loss of high-performing employees who voluntarily choose to leave a company

Functional Turnover

Loss of poor-performing employees who voluntarily choose to leave a company

Currently the U.S. Olympic Committee (USOC) pays Olympic athletes $25,000 for each gold medal, $15,000 for a silver medal, and $10,000 for a bronze medal. Since 1960, the Paralympics for disabled athletes has been an integral part of the Olympic Games, yet the USOC pays disabled athletes only 10 percent of what the Olympic athletes are paid, and Paralympic athletes are not allowed to participate in opening ceremonies. For disabled athletes who believe their efforts will not be fairly rewarded, the motivation to win a Paralympics medal would have a(n) ____.

Low valence *Valence is the attractiveness or desirability of a reward or outcome.

Acts of misconduct commonly observed in the workplace

Misreporting time worked Discrimination Sexual harassment

Job Performance =

Motivation x Ability x Situational Constraints

The area of ethics that is concerned with supplying and justifying a coherent moral system of thinking and judging is called:

Normative ethics

The Control Process

Starts with *goals & objectives* 1. Managers set goals 2. Compare actual performance to performance standards 3. Identify performance deviations, analyze those deviations, and then develop and implement programs to correct them

Although both Title IX of the 1972 Education Amendments and the advent of professional women's sporting leagues have led to dramatic increases in opportunities for women in sports significant discrepancies still exist between men's and women's sports. For example, women receive less media coverage, promotion, and institutional support. According to equity theory, media coverage, access, promotion, and institutional support are all examples of undesirable ____ for female athletes.

Outcomes *Outcomes are the rewards employees receive for their contribution to the organization

The goal of the Apollo 11 moon flight was to put a man on the moon. According to Charles Garfield, who worked at NASA on the Apollo mission, Apollo 11 was off-course 90 percent of the time between here and the moon. But the crew of Apollo 11 used ____ that allowed it to make rapid course corrections.

Performance feedback *Performance feedback is information about the quality or quantity of past performance that indicates whether progress is being made toward the accomplishment of a goal.

____ strengthen behavior (i.e., increase its frequency).

Positive and negative reinforcement *Positive reinforcement uses desirable consequences, and negative reinforcement withholds undesirable consequences.

The quantitative forecasting technique of econometric models is good for _______, while the qualitative technique of customer evaluation is good for ________.

Predicting change in car sales as a result of changes in tax laws; Surveying major car dealers by a car manufacturer to determine types and quantities of products desired

CRA Amendment 1991

Punitive damages

Scenario planning (also called contingency planning) is useful in anticipating events but is less useful in forecasting _______ events

Random

Behavior Observation Scales (BOSs)

Rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance

Another method of restoring equity is to

Rationalize or distort inputs or outcomes *Instead of decreasing inputs or increasing outcomes, employees restore equity by making mental or emotional adjustments in their O/I ratios or the O/I ratios of their referents

Extinction

Reinforcement in which a positive consequence is no longer allowed to follow a previously reinforced behavior, thus weakening the behavior

Positive Reinforcement

Reinforcement that strengthens behavior by following behaviors with desirable consequences

Punishment

Reinforcement that weakens behavior by following behaviors with undesirable consequences

Schedule of Reinforcement

Rules that specify which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered

What is the function of a load chart?

Schedule capacity by work areas

Cognitive Ability Tests

Tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude

The individual hypothesis regarding ethical management models is:

That individuals managers utilize all three of the models at different times and situations.

Valence

The attractiveness or desirability of a reward or outcome

Goal Acceptance

The extent to which people consciously understand and agree to goals

Compensation

The financial and nonfinancial rewards that organizations give employees in exchange for their work

Distributive Justice

The perceived degree to which outcomes and rewards are fairly distributed or allocated; focus of Equity Theory

Procedural Justice

The perceived fairness of the process used to make reward allocation decisions

Needs

The physical or psychological requirements that must be met to ensure survival and well-being

Performance Appraisal

The process of assessing how well employees are doing their jobs

Reinforcement

The process of changing behavior by changing the consequences that follow behavior

Validation

The process of determining how well a selection test or procedure predicts future job performance; the better or more accurate the prediction of future job performance, the more valid a test is said to be

Human Resource Management (HRM)

The process of finding, developing, and keeping the right people to form a qualified work force

Selection

The process of gathering information about job applicants to decide who should be offered a job

Benchmarking

The process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company

Cybernetic

The process of steering or keeping on course

Rater Training

Training performance appraisal raters in how to avoid rating errors and increase rating accuracy

For workers to truly accept organizational goals, the workers must ____.

Trust management

Qualitative Forecasting

Using expert judgments/opinions to predict less precise outcomes (e.g. direction of the economy)

Motivation =

Valence x Expectancy x Instrumentality

When a company emphasizes ____ as its quality goal, managers must simultaneously control excellence, price, durability, or other features of a product or service that customers strongly associate with it.

Value

The number of people who play high-stakes poker is increasing as a result of a number of cable television shows featuring professional poker players vying for $100,000 pots. In terms of reinforcement theory, what kind of a reinforcement schedule motivates the behavior of these card players?

Variable ratio *A variable ratio reinforcement schedule is an intermittent schedule in which consequences are delivered following a different number of behaviors, sometimes more and sometimes less, that vary around a specified average number of behaviors.

Level that produces the greatest minimization of waste

Waste prevention and reduction

Scheduling: Charting

a. *Gantt Chart (bar graph)* -Time on the x-axis -Activities on the y-axis -Shows the expected vs. actual progress of tasks b. *Load Chart (modified Gantt Chart)* -Lists entire departments or specific resources on the y-axis -Allows managers to plan and control capacity utilization

McClellan's Theory of (Three) Needs

a. *High Achievers* motivated by: -Achievable standards (avoid too easy or too difficult) -Delineated roles and responsibilities -Concrete, timely feedback b. *High Affiliators* motivated by: -Working with people they know and trust c. *High Power* motivated by: -Having an impact -Impressing those in power -Beating competitors Best managers tend to be high Power/low Affiliation; more than one motivator is possible; motivators can change over time

Why Control Is Important

a. *Planning* -Are goals/plans on target -What actions needed to adjust b. *Shaping behavior* -Accountability (feedback on employee performance) -Motivation (decrease ambiguity, increase consistency) c. *Protection* -Financial security -Physical security (employees/customers/public)

Contemporary Planning Techniques

a. *Scenario planning*: reduce uncertainty by playing out potential situations under different conditions (best, worst, most-likely) b. *Contingency planning*: developing plans that determine what actions to take in the event of... -Identify potential unexpected events -Develop plan of action -Determine early indicators -Set up an information gathering system to identify early indicators Examples: disaster plans, exit strategies

Theory of Constraints (TOC): Drum-Buffer-Rope

a. *The drum (constraint)*: overall output controlled by constrained resources, which must set the pace for production b. *The buffers (materials or tasks waiting to be processed)*: placed before the constraint in the process, so it will always have work and never be idle; placed at convergent points, divergent points, and shipping points c. *The rope*: communication process from the constraint limiting material released into the system; keeps buffers from getting too big and managers total work-in-progress based on customer demand (number of orders) and the capacity of the constraint (drum) d. Like Lean Manufacturing, TOC is a *"pull"* system Rope = communication of demand

Trends in Discrimination Law

a. *Transgender* -Most states that protect sexual orientation also protect gender identity -EEOC now supporting sex-stereotyping as a form of gender discrimination -Feds protecting transgender bathroom choice b. *Background checks* -Currently using Facebook/Twitter OK in Texas (states beginning to disallow - 18 as of 2014) -"Ban the Box": taking off application questions regarding criminal background; post offer background check info. death with case by case

Type of Selection Devices

a. Application forms b. Written tests c. Performance simulations d. Interviews e. Background investigations f. Physical examinations

Post-Offer Selection Devices

a. Background investigations -Reference checks -Security clearance -Credit check -Social media b. Physical examinations -Drug tests -Strength/stamina evaluation Rules for use in selection: a. Must offer job first b. Can only withdraw offer if: -Applicant has lied -Findings indicate inability to perform *essential job functions*

Recommendations for improving budgeting:

a. Be flexible b. Coordinate budgeting throughout the organization c. Collaborate and communicate

Control Isn't Always Worthwhile or Possible

a. Control loss occurs when behavior and work procedures do not conform to standards. b. To determine whether control is worthwhile, managers need to carefully assess regulation costs - costs associated with implementing/maintaining control -> does control cost more than it benefits company? c. Another factor to consider is cybernetic feasibility - can each step in control process be implemented?

Summary of Performance Appraisal

a. Effective performance appraisal system can lead to competitive advantage b. System must be objective and fair c. Managers & employees must endorse system d. Managers must set clear, individualized goals for each employee e. Feedback should be constructive

Employment At-Will

a. Employees free to hire/fire/discipline for good, bad, or no cause, as long as no laws violated b. Employees are equally free to accept/quit jobs

Contemporary Motivation Theories

a. Equity Theory b. Goal-Setting Theory c. Reinforcement Theory d. Expectancy Theory e. Job Design

Motivation is the processes that account for your willingness to:

a. Exert high levels of *effort* b. Reach *organizational goals* c. Conditioned by satisfaction of a *need*

Civil Rights Act 1964 (Title VII)

a. Federally protected classes: race, color, sex, religion, national origin b. Burden of proof that did not discriminate is on employer c. Disparate treatment (intentional): defense = Bona Fide Occupational Qualification (BFOQ) d. Adverse impact (unintentional): defense = 80% rule or business necessity e. Reasonable accommodation for religion *The Office: Diversity Day

Types of Control

a. Feedforward Control: the cheapest (prevention, but hardest to sell to managers and employees) b. Concurrent is the most common - mistakes happen but customer doesn't know c. Feedback control is the most expensive (loss of customer good will)

Terminating Employees

a. Firing should not be first option: except in cases of workplace "felonies"; 3-strikes rule (verbal warning, written counseling, termination) b. Fire only for a good reason: wrongful discharge = most common type of discrimination lawsuit c. Fire employees in private

Early Theories of Motivation

a. Herzberg's Motivation-Hygiene Theory b. McClelland's Three Needs Theory

TOC Project Management: Critical Chain

a. Identifies the longest route through a project's tasks based on precedence and resource dependencies b. Defines which tasks take priority when resource contention exists c. Time buffers are placed at strategic points to protect the critical chain of tasks -Estimated task time halved to create buffer time -50% of total buffer time placed at project end -Remaining buffer time is used at convergent points and end points of tasks

Step 6: Give Review

a. Inform employee in advance b. Arrange time and private place c. Review job requirements d. Ensure confidentiality e. Be constructive f. Discuss specific performance g. Discuss implications h. Set goals for improvement

Surface-Level Diversity & Sexual Harassment: Final Thoughts

a. Knowledge requires action b. Workplace romances: potential harassment liability c. It's about power, not sex: when men are objectified and abused they should not be expected to like it d. The law is the law is the law

Types of Inaccuracy

a. Leniency and severity errors b. Central tendency error c. Halo effect d. Use of implicit personality theory e. Recency error

Additional protected classes recognized under some state laws, but not federal

a. Marital status (30 states) b. Sexual orientation (21 states) c. Tobacco/alcohol use (25 states) d. HIV/AIDS (8 states) e. Arrest/criminal conviction (8 states) f. Weight, personal appearance (Michigan, DC) *Companies from these states may apply policies here (e.g. Apple)

Control

a. Monitoring activities b. Communicating priorities, progress c. Correcting significant deviations

Mr. Robot

a. Moral high-ground b. Even when it's too good to be true

Employee Selection: Interviews

a. Most widely used tool b. Disproportionate influence on hiring decisions c. Unstructured = ineffective -Favor applicants that share attitudes -Unduly high weight to negative information d. Structured = better validity -Standard set of questions -Uniform recording -Standardized rating system -Use behavioral focus

Which of the following is NOT a type of reinforcement contingency?

a. Negative reinforcement b. Punishment c. Extinction d. *OVERREWARD* e. Positive reinforcement

Offensive/Hostile Work Environment

a. Peer relationships b. Unwelcome, intimidating working conditions (reasonable person criteria) c. Sexual banter, jokes, pictures d. Non-sexual, but hostile treatment based on gender (women only)

Other federally protected classes

a. Pregnancy b. Citizenship/legal aliens c. Veterans d. Age 40+ (ADEA) e. Disability (ADA); reasonable accommodation

Guidelines for Conducting Layoffs

a. Provide clear explanations for cut-backs b. Be transparent with decision-making: -Rules followed for job elimination decisions -Truth about future costs c. Tell employees privately/personally they are laid off -Talk to them early in day/well (not Friday/holiday) -Stay calm; make meeting short; explain why -Provide information about immediate concerns such as benefits, finding a new job, and collecting personal goods d. Provide outplacement support (employment counseling services offered to employees who are losing their jobs because of downsizing) e. Communication with survivors - how will job change

Common Problems

a. Relevance b. Clear performance standards c. Accuracy of ratings d. Legal standards

Project Management: Challenges

a. Responsibility without authority over people (relationship management is key) b. Insufficient budget, specs, scope c. Long lead times d. Scheduling/completing on-time; issues that the PERT charts don't address: -*Student syndrome* -*Parkinson's Law*: work expands to fill the time available for its completion -Competing for scarce resources -Inefficient multi-tasking

Applying Reinforcement Theory

a. Shaping behavior -Karen Pryor (fish) -The Office (people) b. Timing -Consequences should closely follow behavior c. Avoid punishment -Ignore unwanted behavior - don't ignore person d. Reinforcement schedules -Continuous (coke machine) - fast learning, quick extinction -Variable (slow machine) - slower learning, slow extinction

Quid Pro Quo Sexual Harassment

a. Superviser-employee relationships b. Form of gender discrimination, covered by Title VII c. Sexual advances: verbal or physical conduct d. Submission to or rejection of this conduct explicitly/implicitly affects continued employment, promotion, job e. Same sex or opposite sex

Performance Evaluation - What do we evaluate?

a. Task outcomes (quantity, quality) b. Behaviors (on time, accurate, treats customers well) c. Traits ("good attitude", "showing confidence", etc.) -Weakest criteria - may or may not be associated with good outcomes

Manager's Role

a. Translate organizational goals into individual goals b. Relay expectations for job c. Provide feedback on performance d. Coach on how to achieve requirements e. Communicatie strengths and weaknesses f. Determine development activities required

Setting Standards

a. Use established goals b. Listen to customer's comments, complaints, and suggestions c. Establish benchmarking: determine *leading* industry/national standards

Latest Thinking: Drive by Pink

a. Use extrinsic motivation for simple, straightforward tasks b. Focus on intrinsic motivation for complex tasks -Autonomy -Mastery -Purpose

Selection Devices

a. Validity (of Prediction): a proven relationship exists between the selection device and critical success criterion for performance b. Reliability (of Prediction): test scores are consistent over multiple testing instances c. Critical for defense against disparate impact discrimination d. Realistic Job Preview (RJP): provides both positive and negative information about job and company

Performance Simulation Tests

a. Work samples/simulation b. *Most accurate predictor of job fit/success* c. Case interviews d. In-box exercises e. Assessment centers f. Can be expensive g. Danger of inadvertent bias