MGT 310 FINAL EXAM

Reinforcement

anything that causes a certain behavior to be repeated or inhibited.

Responsibility center

any organizational department or unit under the supervision of a single person who is responsible for its activity

law of effect

asserts that positively reinforced behavior tends to be repeated, and unreinforced or negatively reinforced behavior needs to be inhibited.

Cash budget

estimates receipts an expenditures of money on a daily or weekly bases to ensure that an organization has sufficient cash to meet its obligations.

Extrinsic rewards

given by another person, typically a manager, and include promotions, praise, and pay increases. Effective managers want people to receive both types of rewards to meet their needs.

Budgetary Control

one of the most commonly used forms of managerial control, is the process of setting targets for an organization's expenditures, monitoring results and comparing them to the budget, and making changes as needed.

expense budget

outlines the anticipated and actual expenses for a responsibility center

Legitimate power

power coming from a formal management position in the organization and authority granted. Once selected as a supervisor, employees understand to obey.

expert power (personal)

power resulting from a person's special knowledge or skill regarding the tasks being performed.

social learning theory

proposes that an individual's motivation can result not just from direct experience of rewards and punishments, but also from thoughts, beliefs, and observations of other people's behavior.

Job enrichement

incorporating high-level motivators into the work, including responsibility, recognition, and opportunities1 for growth, learning, and achievement. In an enriched job, employees have control over the resources necessary for performing tasks, make decisions on how to do the work, experience personal growth, and set their own work pace.

Reward power:

stems from the authority to bestow rewards on other people. Managers may have access to formal rewards such as pay increases and promotions.

Behavior modification

the set of techniques by which reinforcement theory is used to modify human behavior.

Valence

the value of outcomes, or attraction to outcomes for the individual. If the outcomes that are available from great effort and good performance are not valued by the employee, motivation will be low.

extinction

withholding positive rewards and essentially ignoring undesirable behavior.

capital budget

a budget that plans and reports investments in major assets to be depreciated over several years.

E > P Expectancy

involves determining whether putting effort into a task will lead to high performance. For it to be high, the individual must have the ability, previous experience, and necessary equipment, tools, and opportunity to perform.

P > O expectancy

involves determining whether successful performance will lead to the desired outcome or reward. If the expectancy is high, the individual will be more highly motivated.

bottom-up budgeting

involves lower-level managers anticipating their department's budget needs and passing them up to top management for approval

vicarious learning

occurs when an individual sees others perform certain behaviors and get rewarded for them.

Coercive Power

the opposite of reward power. It is the authority to punish or recommend punishment.

Empowering people to meet higher needs (empowerment)

-Employees receive information about company performance -Employees have knowledge and skills to contribute to company goals -Employees have the power to make substance decisions -Employees are rewarded based on company performance

Four steps of feedback control

1. Establish standards of performance: against which to compare organizational activities. Standards should be clearly defined and precisely so that employees know that they need to do and can determine whether the activities are on target. 2. Measure actual performance: prepare formal reports related to the standards set in step one and the reports should help managers evaluate how well the organization is meeting its standards. 3. Compare performance to standards: compare actual activities to performance standards. Objective analysis in order to find problems. 4. Take corrective action: determine what changes are needed

A two-factor approach to motivation

1. Hygiene factors: involves the presence of job dissatisfiers, such as working conditions, pay, company policies, and interpersonal relationships. When hygiene factors are poor, work is dissatisfying. 2. Motivators: influence job satisfaction. They focus on high level needs and include achievement, recognition, responsibility, and opportunity for growth. When these are absent, workers are neutral to work. When present, workers are highly motivated and satisfied. Motivators such as challenge, responsibility, and recognition must be in place before employees will be highly motivated to excel at their work.

Zero-based budgeting

An approach to planning and decision making that requires a complete justification for every line item in a budget, instead of carrying forward a prior budget and applying a percentage change.

Workplace communication

Four elements of workplace communication are (1) using social media to improve internal and external communication; (2) using informal, personal communication channels; (3) establishing formal communication channels; and (4) developing strategies for crisis communication.

Empowerment

Empowerment: power sharing, the delegation of power and authority to subordinates in an organization. Increasing employee power heightens motivation for task accomplishment because people improve their own effectiveness, choosing how to do a task and using their creativity

Giving meaning to work through engagement:

Engagement: people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization. Only 30% of employees in the US are engaged and inspired, 18% are actively disengaged. Actively disengaged means people are actively undermining their company's success. Employee engagement is created with a sense of meaningfulness, a sense of connection, and a sense of growth. 1. People feel that they are working toward something important. 2. People feel connected to the company, to one another, and to their managers. 3. People have the chance to learn, grow, and advance.

Goal Setting

Goal-setting theory - proposes that managers can increase motivation and enhance performance by setting specific challenging goals, and then helping people track their progress by providing timely feedback. • Goal specificity: the degree to which goals are concrete and unambiguous. A lack of clear, specific goals is cited as a major cause of pay-for-performance incentive plans in many organizations. • Goal difficulty: hard goals are more motivating than easy ones. They provide greater feelings of accomplishment and personal effectiveness. • Goal acceptance: employees have to "buy into" the goals and be committed to them. • Feedback: people get information about how well they are doing in progressing toward goal achievement.

Hierarchical vs. decentralized approaches

Hierarchical control - involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms. Decentralized control - the organization fosters compliance with organizational goals through the use of organizational culture, group norms, and a focus on goals rather than rules and procedures.

Interpersonal Influence tactics

Leaders often use a combination of influence strategies, and people who are perceived as having greater power and influence typically are those who use a wider variety of tactics. 1. Use rational persuasion: apply facts, data, and logical argument 2. Help people like you: people rather say yes to someone they like than someone that they don't like. 3. Rely on the rule of reciprocity: exchange of benefits and favors. 4. Develop allies: people who can help the leader accomplish his or her goals. 5. Ask for what you want: make a direct and personal request. 6. Appeal to a higher authority: gain the support of people at higher levels to back them up.

Individual needs and motivation

Motivation: the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action. Employee motivation affects productivity, and part of a manager's job is to channel motivation toward the accomplishment of organizational goals.

The meaning of control:

Organizational control - the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance. The essence of control is action which adjusts operations to predetermined standards, and its basis is information in the hands of managers. Managers decide which standards, measurements, and metrics are needed to monitor and control the organization effectively and set up systems for obtaining that information.

Nature of Leadership

People, influence, and goals. The ability to influence people toward the attainment of organizational goals. Being a leader can be more effective than being a boss.

Communicating to persuade and influence others:

Persuasion is an important part of communication. Key points for practicing the art of persuasion involve: • Establish credibility • Build goals on common ground • Connect emotionally • Use multiple media to send important messages. Communication apprehension: the avoidance of communication and is defined as "an individual's level of fear or anxiety associated with either real or anticipated communication."

Power and influence:

Power - the potential ability to influence the behavior of others. Influence - the effect that a person's actions have on attitudes, beliefs, values, or behavior of others. Power is the capacity to cause a change in a person, influence may be thought of as the degree of actual change.

Communication is the manager's job:

The manager's role as communication champion means to engage in purpose-driven strategic conversations via multiple channels. Social media is a method of communication that is growing in popularity as an effective way to communicate information within an organization. Strategic conversation refers to dialogue across boundaries and hierarchical levels about the team or organization's vision, critical strategic themes, and the values that help achieve important goals.

Leadership traits:

Traits are the distinguishing personal characteristics of a leader, such as intelligence, honesty, self-confidence, and even appearance. Effective leaders typically possess varied traits, and no single leader can have a complete set of characteristics that is appropriate for handling any problem, challenge, or opportunity that comes along. The best leaders also recognize their strengths, or natural talents and abilities that have been supported and reinforced with learned knowledge and skills and provide each individual with his or her best tools for accomplishment and satisfaction.

Knowing how to communicate is a vital part of every manager's job

The most successful organizations are those whose managers keep the lines of communication open. Managers spend 80% of every working day in direct communication with others, the other 20% is spent doing desk work in the form of communication as well.

Hard position power:

The traditional manager's power comes from the organization. The position gives the ability to reward or punish subordinates to influence their behavior.

Transformational versus transactional leadership

Transformational leaders are similar to charismatic leaders, but they are distinguished by their special ability to bring about innovation and change by recognizing followers' needs and concerns, providing meaning, challenging people to look at old problems in new ways, and acting as role models for the new values and behaviors. They bring significant change in both followers and the organization. They are better understood than transactional leaders. Transactional leaders: clarify the role and task requirements of subordinates, initiate structure, provide appropriate rewards, and try to be considerate and meet the social needs of subordinates.

Balanced scorecard

a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success. It involves 4 areas to track: 1. Financial performance: organizational activities contribute to short- and long-term financial performance. 2. Customer service: measure information such as how customers view the organization, and customer retention and satisfaction. 3. Internal business processes: indicators focus on production and operating statistics. 4. Potential for learning and growth: focusing on how well resources and human capital are being managed for the company's future.

Charismatic leadership:

a leader who has the ability to inspire and motivate people to transcend their expected performance, even to the point of sacrifice. They are less predictable, and they may be obsessed by visionary ideas that excite, stimulate, and drive others to work hard. This comes from 1. Stating a lofty vision of an imagined future that employees identify with 2. Displaying an ability to understand and empathize with followers 3. Empowering and trusting subordinates to accomplish results. Charismatic leaders are skilled in visionary leadership. Vision is an attractive, ideal future that is credible yet not readily attainable.

Open-book management

allows employees to see for themselves - through charts, computer printouts, meetings, and so forth- the financial condition of the company. It also shows the individual employee how their job fits into the big picture and affects the financial future of the organization. It ties employee rewards to the company's overall success. Act like business owners.

referent power (personal)

comes from an individual's personal characteristics that command other's identification, respect, and admiration so that they wish to emulate that individual. Does not depend on a formal title or position.

Personal soft power

comes from internal sources, such as an individual's special knowledge or personal characteristics.

Selecting the appropriate channel

depends on whether the message is routine or nonroutine. Nonroutine messages are usually ambiguous, concern novel events, and involve great potential for misunderstanding and have time pressure and surprise. They require rich channels. Routine messages are simple and straightforward. They convey data or statistics or simply put into words that managers already agree on and understand. They require a channel lower in richness such as a memo, e-mail, or Twitter.

Crisis communication

during a communication crisis, a manager should stay calm and listen carefully, reassure employees and the public, tell the truth, and communicate a vision for the future. Many managers are not up to the challenge. • Stay calm, listen hard • Be visible • Get the awful truth out • Communicate a vision for the future

Authentic Leadership:

individuals who know and understand themselves, who espouse and act consistent with higher-order ethical values, and who empower and inspire others with their openness and authenticity. Being real and staying true to one's values and beliefs and acting on one's true self and not emulating what others do. • Pursue their purpose with passion • Practice solid values • Lead with their hearts as well as their heads • Establish connected relationships • Demonstrate self-discipline

Listening

involves the skill of grasping both facts and feelings to interpret a message's genuine meaning. 67% of new managers fail within 18 months because they don't listen. 75% of effective communication involves listening and only 30 %- 40% time is actually spent listening. Important information flows from the bottom up.

revenue budget

lists forecasted and actual revenues of the organization

Social media

refers to a group of internet-based applications that allow the creation and exchange of user-generated content. Companies are using social media for enabling employees to communicate among themselves, and with managers, communicating with customers and other outsiders, and building employee engagement. • Listening to customers • Communicating to customers • Engaging customers

Direct reinforcement

rewards that immediately follow a given behavior

Intrinsic rewards

satisfaction a person receives from performing the particular task itself

Expectancy theory

suggests that motivation depends on individuals' expectations about their ability to perform tasks and receive desired rewards. It is based on the relationship among individual's effort, the individual's performance, and the desirability of outcomes associated with high performance.

postitive reinforcement

the administration of a pleasant and rewarding consequence following a desired behavior.

top-down budgeting

the budgeted amounts for the coming year are literally imposed on middle and lower level managers

punishment

the imposition of an unpleasant outcome following an undesirable behavior.

Gender differences:

the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority. Women leaders typically score significantly higher than men on abilities such as motivating others, building relationships, and developing others - skills that are based on humility and authenticity and are particularly suited in today's organizations. Also, social and emotional skills. Women rank low on strategic perspective.

Corporate Governance

traditionally defined as the ways in which an organization safeguards the interests of the shareholders, it has been expanded to refer to the framework of systems, rules, and practices by which an organization ensures accountability, fairness, and transparency in its relationships with all stakeholders, including investors, employees, customers, and the general public.

Avoidance Learning (Negative Reinforcement)

when they remove an unpleasant consequence once a behavior is improved.

Gender differences in communication:

• Purposes of conversations - men focus on hierarchy, competition for relative power. Men use verbal language to exhibit knowledge and skill, such as telling stories, joking, or passing on information. For women, conversation is a language for rapport, a way to establish connections and negotiate relationships. • Decision-making styles - women think and brainstorm out loud. • Success in collaborative environments - women are better at motivating, fostering communication, and listening. This helps in crisis situations. • Interpretation of nonverbal messages - 70% of communication occurs nonverbally. Women are better at making eye-contact and nodding. When a man nods, he agrees, when a woman nods, she is listening. Women are better at assessing nonverbal communication.

TQM Techniques

• Quality circles: offer one technique for implementing TQM and include groups of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work • Benchmarking: the continuous process of measuring products, services, and practices against major competitors or industrial leaders. • Six sigma: a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs. • Quality partnering: involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process. • Continuous improvement: or kaizen, is the implementation of a large number of small, incremental improvement in all areas of the organization on an ongoing basis.

Job Characteristics Model

• Work redesign: altering jobs to increase both the quality of employees' work experience and their productivity. Five dimensions that determine a job's motivational potential: 1. Skill variety: number of diverse activities that compose a job and the number of skills used to perform it. 2. Task identity: degree to which an employee performs a total job with a recognizable beginning and ending. 3. Task significance: degree to which the job is perceived as important in having an impact on the company or consumers. 4. Autonomy: degree to which the worker has freedom, discretion, and self-determination in planning and carrying out tasks. 5. Feedback: extent to which doing the job provides feedback to the employee about their performance.