MGT 300: Exam 2

how to motivate agent w/ economic risk?

-fixed pay (salary) -variable pay (shares, stock option)

corporate level strategy

A plan that indicates in which industries and national markets an organization intends to compete.

Job Rotation

Calls for moving employees from one specialized job to another

Responsibility for Outcomes

Captures the degree to which employees know how well or poorly they're doing.

Skill Variety

Job requires an individual to use a variety of skills and abilities.

Top Down Approach

Managers change employee's tasks with the intent of increasing motivation and productivity.

Job Enrichment

Modifies a job such that an employee has the opportunity to experience achievement, recognition, stimulating work, responsibility, and advancement (vertical loading)

Cognitive Crafting

Perceive or think differently about existing tasks and relationships associated with you job.

decision making: contingency planning (scenario)

creating possible futures, be ahead of the game "in the event that" proactive

Adaptive culture

culture whose values and norms help an organization to build momentum and to grow old and change as needed to achieve goals and be effective

OC: bureaucratic control (3)

determine performance levels

OC: behavioral control (4)

direct supervision: most immediate and potent form of behavioral control, lower number of ppl, more hands on operant conditioning, theory x

antecedents -- undesired behavior

extinction punishment (administer penalty) (action)

psych-motivation: maslow's hierarchy of needs

higher (intrinsic) self-actualization: learning, growth esteem: recognition belongingness: relationships safety: job security physiological: pay lower (extrinsic)

PP: step 3

implementing the strategy

motivation: economic viewpoint (3 theories)

pay is the key motivating factor

Synergy

performance gains that result when individuals and departments coordinate their actions

Hypercompetition

permanent, ongoing, intense competition brought about in an industry by advancing technology or changing customer tastes

trait approach

what leaders tend to be like: -intelligence -task relevant knowledge -dominance -self-confidence -energy/activity levels -tolerance for stress -integrity/ethics/honesty EMOTIONAL MATURITY

behavioral approach

what leaders tend to do: consideration: employee-centered relationships initiating structure: job-centered tasks INDEPENDENT & COMPLIMENTARY

positive reinforcement: motivation (3)

-directs behavior -level of effort -level of persistence (extrinsic factor)

Organizational culture/clan control

-values -norms -socialization

punishment

-focus on the behavior, not the individual -downplay the emotional element -punish ASAP, explain why -never punish with an audience!!!!!

Four steps in organizational control

1) establish standards of performance, goals, or targets against which is to be evaluated 2) measure actual performance 3) compare actual performance to chosen standards of performance 4) evaluate the result and initiate corrective action if standard is not being achieved

Planning and implementing strategy (5)

1. Allocate implementation responsibility to the appropriate individuals or groups. 2. Draft detailed action plans for implementation. 3. Establish a timetable for implementation 4. Allocate appropriate resources 5. Hold specific groups or individuals responsible for the attainment of corporate, divisional, and functional goals

planning importance

1. participation 2. sense of direction and purpose 3. coordination 4. control aspects (accountability)

Feedback

Degree to which carrying out the activities required by the job provides employees with clear information about how well theyre performing.

Knowledge and Skill

Degree to which employees have the aptitude and competence to succeed on their job.

Significance

Degree to which the job has a substantial impact on the lives of other people, particularly people in the world at large.

Autonomy

Degree to which the job provides freedom, independence, and discretion to the individual performing the work.

Identity

Degree to which the job requires completing a whole, identifiable, piece of work from beginning to end with a visible outcome.

Job Characteristics Theory

Describes the central characteristics of intrinsically satisfying jobs, attempts to answer this question.

differentiation strategy

Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.

business level plan

Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure.

low-cost strategy

Driving the organization's costs down below the costs of its rivals.

4x2x1

I,II,III - very favorable and task-oriented IV,V,VI,VII - relationship oriented VIII - v. unfavorable, task-oriented

Task Identity

Performing a job with a whole or completely identifiable task with a tangible result.

psych-motivation: mcclelland's need theory

Power Achievement Affiliation

Job Characteristics Model

Promotes high intrinsic motivation by designing jobs that possess the five core job characteristics.

corporate-level plan

Top management's decisions pertaining to the organization's mission, overall strategy, and structure.

Job Crafting

Where employees shape, mold, and redefine their jobs in a proactive way

Top down change

a fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do and then move quickly to implement changes throughout the organization

SWOT in corporate level strategy is

a plan of action to manage the growth and development of an organization so as to maximize its long-run ability to create value

SWOT in business level strategy is

a plan of action to take advantage of favorable opportunities and find ways to counter threats so as to compete effectively in an industy

business level strategy

a plan that indicates how a division intends to compete against its rivals in an industry

SWOT analysis

a planning tool used to analyze an organization's (S)trengths, (W)eaknesses, (O)pportunities, and (T)hreats

variable-ratio schedule

a reinforcement schedule that reinforces a response after an unpredictable number of responses customer service evaluations

variable-interval schedule

a reinforcement schedule that reinforces a response at unpredictable time intervals evaluation

fixed-ratio schedule

a reinforcement schedule that reinforces a response only after a specified number of responses commission

fixed interval schedule

a reinforcement schedule that reinforces a response only after a specified time has elapsed salary

Feedforward control

allows managers to anticipate problems before they arise (input stage-ex:admissions)

Relational Nature

alter quantity or quality of interactions you have with others at work or establish new relationships.

Michael Porter's Five Forces Model

analyzes an organization, its position in the marketplace, and how information systems could be used to make it more competitive, task environment

operant conditioning

behavior --> consequence positive > negative extinction > punishment

ppl learn when they make the connection between

behavior and consequence

Operating budgets

blueprint that states how managers intend to allocate and use the resources they control to attain organizational goals effective and efficient

Time Horizon

the intended duration of a plan

have to consider

the weight of the reinforcer

econ-motivation: agency theory

theory x, controlling principal- shareholders/ board agent- executive executive pay; organizational performance

The structure of what relies on your industry?

your organization

planning strategy

cluster of decisions, goals to pursue, courses of action to take, allocation of resources

Jay Barney's Vrio Framework

competitive advantage, sustain advantage, human capital valuable, rare, inimitable, organized

related diversification

entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses

unrelated diversification

entering a new industry or buying a company in a new industry that is not related in any way to an organization's current businesses or industries

Diversification

expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services

Vertical Integration

expanding a company's operations either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products

psych-motivation: herzberg's two factor theory

extrinsic - hygiene intrinsic - motivators

Control systems

formal target setting, monitoring, evaluation and feedback systems that provide managers with information about how well the organizations strategy and structure are working

PP: step 2 (SWOT)

formulate the strategy(2): -jay barney's vrio framework -michael porter's five forces model

Feedback control

gives managers information about customer's reactions to goods and services so that corrective action can be taken if necessary (output stage ex: graduating class)

Bottom up change

gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change

job enrichment (vertical loading)

increasing the degree of responsibility a worker has over his or her job

job enlargement (horizontal loading)

increasing the number of different tasks in a given job by changing the division of labor

SW OT

internal external

mission statement

purpose product customer differentiate from competition

partial reinforcement (4)

reinforcing a response only part of the time; results in slower acquisition of a response but much greater resistance to extinction than does continuous reinforcement, common in business p: don't have to reward every time c: takes longer for learning to happen

continuous reinforcement

reinforcing the desired response every time it occurs p: learning takes place v quickly c: once you stop reward, behavior stops

operant conditioning: antecedents

rules, norms, expectations, culture, instructions

Organization-Wide Goal Setting: Divisional managers

set goals for each function that will allow goals to be achieved

Organization-Wide Goal Setting: Functional managers

set goals for each individual worker that allows function to achieve goals

Organization-Wide Goal Setting: Corporate Level Managers

set goals for individual divisions that will allow the organization to achieve corporate goals

Organizational culture

shared set of beliefs, expectations, values, norms and work routines influences how members of an organization interact with one another and work together to achieve goals

Fiedler's Contingency Theory

situation gets introduced effective leadership 1. characteristics of the leader (personality/traits) task oriented relationship oriented LPC SCALE 2. characteristics of the situation (context) leader-member relations (good/poor) task structure (high/low) position power (high/low)

Strategic Leadership

the ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates

econ-motivation: efficiency-wage theory

"industry average" -paying employees significantly more than the standard -motivates hard work -pick from cream of the crop

Output control

- financial measures of performance -organizational goals -operating budgets

Principles of Scientific Management

-Job simplification: break down into smallest components (therbligs) -Job specialization: training individuals to perform simplified tasks -Gilbreth did time and motion studies to determine how long it takes and best way to perform a task

implementing the strategy

-allocate responsibility -draft detailed action plans -establish a timetable -allocate appropriate resources -hold parties accountable (monitor and control)

PP: step 1

-define the business -establish organizational goals (stretch/time focused) -create the mission statement (brand declaration)

Behavior control

-direct supervision -management by objectives -rules and standard operating procedures

Growth Need Strength

Degree to which employees desire to develop themselves further.

Bottom-Up

Employees can change or redesign their own jobs and boost their motivation and engagement.

I-Deals (Idiosyncratic Deals)

Envision job design as a process in which employees and individual managers jointly negotiate the types of tasks employees complete the work.

Task Significance

Extent that the job affects the lives of other people within or outside the organization.

Job Enlargement

Puts more variety into a worker's job bu combining specialized tasks of comparable difficulty (horizontally loading). Does not have a significant and lasting positive effect on job performance.

Job Design

Refers to any set of activities that alter jobs to improve the quality of employees experience and level of productivity.

Meaningfulness of Work

Reflects the degree to which work tasks are viewed as something that "counts" in the employee's system of philosophies and beliefs.

Knowledge and Skill

Representing whether or not the person has the knowledge and skills to perform the enriched job.

Job Crafting (Bottom-Up)

Represents an employees' attempts to proactively shape their work characteristics.

Inert culture

-leads to values and norms that fail to motivate or inspire employees -leads to failure -goes down the drain because they don't change

Job Characteristics Model

1. skill variety 2. task identity 3. task significance (game changers/ intrinsic) 4. autonomy 5. feedback

Job Diagnostic Survey (JDS)

A measure of the extent to which a job provides opportunities for growth, autonomy, and meaning.

Five Forces Model

A model developed by Michael Porter that helps us understand the five competitive forces that determine the level of competition and profitability in an industry.

SWOT in functional level strategy is

A plan of action to improve the ability of an organization's departments to create value

Functional-level strategy

A plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services.

Feedback

Extent to which an employee received direct and clear info about how effectively they are performing the job.

motivation is the same as performance

FALSE!!!

Scientific Management

Focuses on increasing the efficiency of job tasks by making them more simplified and specialized and using time and motion studies to plan task movements and sequences carefully

functional level plan

Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals

Concurrent control

Gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise (conversion stage ex: freshman-senior)

Autonomy

Job enables the individual to experience freedom, independence, and discretion in both scheduling and determining the procedures used in completing the job.

Task Boundaries

Taking on more or fewer tasks or by altering their scope or nature

Variety

The degree to which the job requires a number of different activities that involve a number of different skills and talents.

strategy formulation

The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals

Context Satisfactions

The extent to which employees are satisfied with various aspects of their job, such as pay, coworkers, and supervision.

organizational control

The systematic process through which managers regulate organizational activities to meet planned goals and standards of performance.

Clan control

control exerted on individuals and groups in an organization by shared values, norms, standards of behavior and expectations ex: omish, mafia, etc.

Bureaucratic control

control of behavior by means of a comprehensive system of rules and standard operating procedures -slow reaction time -too standardized, lose flexibility

Job Enrichment

duties and responsibilities associated with a job are expanded to provide more variety, identity, autonomy, and so forth.

Intrapreneurs

employees of existing organizations who notice opportunities for product or service improvements and manage the development process

the five forces

level of rivalry among organizations in an industry potential for entry into an industry power of large supplier power of large customer threat of substitute products

Organizational learning

managers try to increase organizational members abilities to understand and appropriately respond to changing conditions -impetus for change -can help members make decisions about changes

Direct supervision

managers who actively monitor and observe behavior while teaching what is appropriate and correct what isn't - more expensive

psych-motivation: aldefer's e-r-g theory

maslow's plus existence, relationships, and growth

Motivating Potential Score (MPS)

meaningful (skill variety+task identity+task significance/3) * autonomy(responsibility) * feedback(knowledge)

Entrepreneurship

mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services

Organization change

movement of an organization away from its present state and towards some desired future state to increase its efficiency and effectiveness

OC: clan control/ organizational culture (2)

norms and expectations, govern people's behaviors

Entrepreneurs

notice opportunity and take responsibility for mobilizing the resources necessary to produce new and improved goods and services

OC: output control (1)

organizational goals, financial measures, and operating budgets

econ-motivation: tournament theory

pay for performance -increase: overall performance, competition -decrease: ethical behavior, ocbs

FCT: characteristics of the situation (context)

position vs personal (forced) (given, STRONGER!)

antecedents -- desired behavior

positive/negative reinforcement (threat)

Benchmarking

process of comparing one's company's performance on specific dimensions with the performance of other high performance organizations

Controlling

process where managers monitor and regulate how efficiently and effectively an organization and its members are performing activities necessary to achieve goals