MGT 340 Final Review

Technology-Based Training Methods

-CD-ROM/DVD/videotapes/audiotapes -Videoconferencing/teleconferencing/satellite TV -E-Learning

Taylor's Scientific Management Principles

1. Develop a science for each element of an individual's work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.

Multinational Corporation (MNCs)

A broad term referring to any and all types of international companies that maintain operations in multiple countries

Job Characteristics Model (JCM)

A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees' growth needs. -Five primary job characteristics: -Skill variety: how many skills and talents are needed? -Task identity: does the job produce a complete work? -Task significance: how important is the job? -Autonomy: how much independence does the jobholder have? -Feedback: do workers know how well they are doing?

Organizational Behavior

A field of study that researches the actions (behaviors) of people at work

Boundaryless Organization

A flexible and unstructured organizational design that is intended to break down external barriers between the organization and its customers and suppliers. -Removes internal (horizontal) boundaries: -Eliminates the chain of command -Has limitless spans of control -Uses empowered teams rather than departments -Eliminates external boundaries: -Uses virtual, network, and modular organizational structures to get closer to stakeholders

Organizing

A management function that involves arranging and structuring work to accomplish an organization's goals

Planning

A management function that involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.

Controlling

A management function that involves monitoring, comparing, and correcting work

Leading

A management function that involves working with and through people to accomplish goals

Variable Pay

A pay system in which an individual's compensation is contingent on performance

Skilled-Base Pay

A pay system that rewards employees for the job skills the demonstrate

Physiological Needs

A person's need for food, drink, shelter, sexual satisfaction, and other physical needs

Self-Actualization Needs

A person's need to become what he or she is capable of becoming

Social Needs

A person's needs for affection, belongingness acceptance, and friendship

Esteem Needs

A person's needs for internal factors, such as self-respect, autonomy, and achievement, and external factors such as status, recognition, and attention

Safety Needs

A person's needs for security and protection from physical and emotional harm

Unstructured Problem

A problem that is new or unusual and for which information is ambiguous or incomplete

Hawthorne Studies

A series of studies during the 1920s and 1930s that provided new insights into individual and group behavior

Organizational Culture

A system of shared meanings and common beliefs held by organizational members that determines, in large degree, how they act towards each other. "The way we do things around here", this includes values, symbols, rituals, myths, and practices. Implications include: culture is a perception, culture is shared, culture is descriptive.

Problem-Solving Teams

A team from the same department or functional area that's involved in efforts to improve work activities or to solve specific problems

Attribution Theory

A theory used to explain how we judge people differently, depending on what we attribute to a given behavior

Association of Southeast Asian Nations (ASEAN)

A trading alliance of 10 southeast Asian nations

Transitional (Borderless) Organizations

A type of international company in which artificial geographic barriers are eliminated

Self-Managed Work Team

A type of work team that operates without a manager and is responsible for a complete work process or segment

Virtual Team

A type of work team that uses technology to link physically dispersed members in order to achieve a common goal

Non-Programmed Decisions

A unique and nonrecurring decision that requires a custom-made solution

Geocentric Attitudes

A world-oriented view that focuses on using the best approaches and people from around the globe

Job Specifications

A written statement of the minimum qualifications that a person must possess to perform a given job successfully

Job Descriptions

A written statement that describes the job

North American Free Trade Agreement (NAFTA)

An agreement among the Mexican, Canadian, and US governments that has eliminated barriers to trade

Scientific Management

An approach that involves using the scientific method to determine the "one best way" for a job to be done.

Job Analysis

An assessment that defines jobs and the behaviors necessary to perform them

European Union (EU)

An economic and political partnership of 27 democratic European countries created as a unified economic and trade entity. Three additional countries have applied for membership

Job Satisfaction

An employee's general attitude toward his or her job

Global Companies

An international company that centralizes management and other decisions in the home country

Multidomestic Corporation

An international company that decentralizes management and other decisions to the local country

Virtual Organization

An organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects

Functional Structures

An organizational design that groups together similar or related occupational specialties Strengths: Cost-saving advantages from specialization (economies of scale, minimal duplication of people and equipment); employees are grouped together with others who have similar tasks Weaknesses: Pursuit of functional goals can cause managers to lose sight of what's best for the overall organization; functional specialists become insulated and have little understanding of what other units are doing

Organic Organization

An organizational design that's highly adaptive and flexible

Mechanistic Organization

An organizational design that's rigid and tightly controlled

Project Structure

An organizational structure in which employees continuously work on projects

Divisional Structures

An organizational structure made up of separate semi-autonomous units or divisions Strengths: Focuses on results-division managers are responsible for what happens to their products and services Weaknesses: Duplication of activities and resources increases costs and reduces efficiency

Matrix Structure

An organizational structure that assigns specialists from different functional departments to work on one or more projects Advantages: Fluid and flexible design that can respond to environmental changes. Faster decision making. Disadvantages: Complexity of assigning people to projects. Task and personality conflicts.

Cognitive Dissonance

Any incompatibility or inconsistency between attitudes or between behavior and attitudes

Sexual Harassment

Any unwanted action or activity of a sexual nature that explicity or implicity affects and individual's employment, performance, or work environment

Relationship Conflict

Conflict based on interpersonal relationships

Process Conflict

Conflict over how work gets done

Task Conflict

Conflicts over content and goals of work

Dysfunctional Conflicts

Conflicts that prevent a group from achieving its goals

Functional Conflicts

Conflicts that support a group's goals and improve its performance

Implications of the Systems Approach

Coordination of the organization's parts is essential for proper functioning of the entire organization Decisions and actions taken in one area of the organization will have an effect in other areas of The organization Organizations are not self-contained and, therefore, must adapt to changes in their external Environment Organizational culture including its meanings, its origins, its components, and its impact on individual and organizational outcomes

Organizational Design

Creating or changing an organization's structure

Managerial Roles

Defined as specific categories of managerial behavior

Work Specialization

Dividing work activities into separate job tasks

Traits associated with Leadership

Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion

Workplace Privacy Issues

Employee theft, Workplace violence

On-The-Job

Employees learn how to do tasks simply by performing them, usually after an initial introduction to the task

Experimental Exercises

Employees participate in role playing, simulations, or other face-to-face types of training

Workbooks/Manuals

Employees refer to training workbooks and manuals for instruction

Job Rotation

Employees work at different jobs in a particular area, getting exposure to a variety of tasks

Mentoring and Coaching

Employees work with an experienced worker who provides information, support, and encouragement; also called apprenticeships in certain industries

Decisional Roles

Entrepreneur, disturbance handler, resource allocator, negotiator. Managerial roles that involve making choices

Interpersonal Roles

Figurehead, leader, liaison. Managerial roles that involve people and other duties that are ceremonial and symbolic in nature

Work Teams

Groups whose members work intensely on a specific common goal, using their positive synergy, individual and mutual accountability, and complementary skills

Two-Factor Theory

Herzberg's motivation theory, which proposes that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction

University of Iowa Studies (Kurt Lewin)

Identified three leadership styles: - Autocratic style: centralized authority, low participation - Democratic style: involvement, high participation, feedback - Laissez faire style: hands-off management Research findings: mixed results - No specific style was consistently better for producing better performance. - Employees were more satisfied under a democratic leader than an autocratic leader.

University of Michigan Studies

Identified two dimensions of leader behavior: - Employee oriented: emphasizing personal relationships - Production oriented: emphasizing task accomplishment Research findings: Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction

Ohio State Studies

Identified two dimensions of leader behavior: - Initiating structure: the role of the leader in defining his or her role and the roles of group members. - Consideration: the leader's mutual trust and respect for group members' ideas and feelings. Research findings: mixed results - High-high leaders generally, but not always, achieved high group task performance and satisfaction. - Evidence indicated that situational factors appeared to strongly influence leadership effectiveness.

Recruiting Sources

Internet, employee referrals, company web site, college recruiting, professional recruiting organizations

Parochial

Is viewing the world solely through one's own eyes and perspectives -Is not recognizing that others have different ways of living and working -Is a significant obstacle for managers working in a global business world -Is falling into the trap of ignoring others' values and customs and rigidly applying an attitude of "ours is better than theirs" to foreign cultures

Technical Skills

Knowledge and proficiency in a specific field. Job-specific knowledge and techniques needed to proficiently perform work tasks.

Transactional Leaders

Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements

Maslow's Hierarchy of Needs

Maslow's theory that there is a hierarchy of five human needs: physiological, safety, social, esteem, and self-actualization

Informational Roles

Monitor, disseminator, spokesperson. Managerial roles that involve collecting, receiving, and disseminating information.

Traditional Training Methods

On-the-Job, Job Rotation, Mentoring and Coaching, Experimental Exercises, Workbooks/Manuals

Strong Cultures

Organized cultures in which the key values are intensely held and widely shared

Distributive Justice

Perceived fairness of the amount and allocation of rewards among individuals

Procedural Justice

Perceived fairness of the process used to determine the distribution of rewards

Conflict

Perceived incompatible differences that result in interference or opposition

Management Skills

Skills managers need. Includes technical skills, human skills, and conceptual skills

Norms

Standards or expectations that are accepted and shared by a group's members

Decision Making Process

Step 1: Identifying the Problem Step 2: Identifying Decision Criteria Step 3: Allocating Weights to the Criteria Step 4: Developing Alternatives Step 5: Analyzing Alternatives Step 6: Selecting an Alternative Step 7: Implementing the Alternative Step 8: Evaluating the Decision's Effectiveness

Frederick W. Taylor

The "father" of scientific management. Probably the best known example of Taylor's scientific management efforts was the pig iron experiment. Workers loaded "pigs" of iron onto rail cars. He put the right person on the job with the correct tools and equipment, had the worker follow his instructions exactly, and motivated the worker with an economic incentive of a significantly higher daily wage. -Put the right person on the job with the correct tools and equipment -Had a standardized method of doing the job -Provided an economic incentive to the worker

Conceptual Skills

The ability to think about and conceptualize about abstract and complex situations concerning the organization

Human Skills

The ability to work well with other people individually and in a group.

Centralization

The degree to which decision making is concentrated at upper levels of the organization

Decentralization

The degree to which lower-level employees provide input or actually make decisions

Locus of Control

The degree to which people believe that they are masters of their own fate

Adjourning Stage

The final stage of group development for temporary groups, during which group members are concerned with wrapping up activities rather than task performance

Forming Stage

The first stage of group development, in which people join the group and then define the group's purpose, structure, and leadership

Organizational Structure

The formal arrangement of jobs within an organization

Performing Stage

The fourth stage of group development, when the group is fully functional and works on its task

Unity of Command

The management principle that each person should report to only one manager

Span of Control

The number of employees a manager can efficiently and effectively manage

Ethnocentric

The parochialistic belief that the best work approaches and practices are those of the home country

Authority

The rights inherent in a manager's position to tell people what to do and expect them to do it

Initiating Structure

The role of the leader in defining his or her role and the roles of group members.

Benchmarking

The search for the best practices among competitors or non-competitors that lead to their superior performance

Storming Stage

The second stage of group development, which is characterized by intragroup conflict

Equity Theory

The theory that an employee compares his or her job's input:outcomes ratio with that of relevant others and then corrects any inequity

Expectancy Theory

The theory that an individual tends to act in a certain way, based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual

Reinforcement Theory

The theory that behavior is a function of its consequences

Norming Stage

The third stage of group development, which is characterized by close relationships and cohesiveness

Job Enrichment

The vertical expansion of a job by adding planning and evaluating responsibilities

Polycentric

The view that managers in the HOST country know the best work approaches and practices for running their business

Organizational Chart

The visual representation of an organization's structure

Heuristics

Using "rules of thumb" to simplify decision making • Sunk Costs Errors -Forgetting that current actions cannot influence past events and relate only to future consequences.

Weak Cultures

Values are limited to a few people-usually top management Culture sends contradictory messages about what's important Employees have little knowledge of company history or heros Employees have little identification with culture Little connection between shared values and behaviors

Cross-Functional Teams

Work teams composed of individuals from various functional specialties

Path-Goal Theory

a leadership theory that says the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the goals of the group or organization Leaders assume different leadership styles at different times depending on the situation: -Directive leader -Supportive leader -Participative leader -Achievement oriented leader

Fiedler Contingency Model

a leadership theory which proposed that effective group performance depended on the proper match between a leader's style and the degree to which the situation allowed the leader to control and influence Assumptions: -A certain leadership style should be most effective in different types of situations. -Leaders do not readily change leadership styles. -Matching the leader to the situation or changing the situation to make it favorable to the leader is required. Least-preferred co-worker (LPC) questionnaire -Determines leadership style by measuring responses to 18 pairs of contrasting adjectives. -High Score: A relationship-oriented leadership style -Low Score: A task-oriented leadership style Situational factors in matching leader to the situation: -Leader-member relations -Task structure -Position power

Contingency (Situational) Approach

a management approach which says that organizations are different, face different situations (contingencies), and require different ways of managing

Management by Objective (MBO)

a process of setting mutually agreed upon goals and using those goals to evaluate employee performance

Programmed Decisions

a repetitive decision that can be handled using a routine approach

Procedures

a series of sequential steps used to respond to a well-structured problem

Certainty

a situation in which a decision maker can make accurate decisions because all outcomes are known

Uncertainty

a situation in which a decision maker has neither certainty nor reasonable probability estimates available

Risk

a situation in which the decision maker is able to estimate the likelihood of certain outcomes

Structured Problem

a straightforward, familiar, and easily defined problem

Rational Decision Making

a type of decision making in which choices are logical and consistent and maximize value

Language

acronyms and jargon of terms, phrases, and word meanings specific to an organization

Traditional Goal Setting

an approach to setting goals in which top managers set goals that flow down through the organization and become subgoals for each organizational area

Rules

an explicit statement that tells managers what can or cannot be done

Roles

behavior patterns expected of someone occupying a given position in a social unit

Bounded Rationality

decision making that's rational but limited (bounded) by an individual's ability to process information

Charismatic Leadership

enthusiastic, self-confident leaders whose personalities and actions influence people to behave in certain ways

System

is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole

Transformational Leadership

leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes

Intuitive Decision Making

making decisions on the basis of experience, feelings, and accumulated judgment

Stories

narratives of significant events or actions of people that convey the spirit of the organization

Symbols

physical assets distinguishing the organization

Short-Term Plans

plans covering one year or less

Strategic Plans

plans that apply to an entire organization and establish the organization's overall goals

Operational Plans

plans that encompass a particular operational area of an organization

Long-Term Plans

plans with a time frame beyond three years

Rituals

repetitive sequences of activities that express and reinforce the values of the organization

Closed Systems

systems that are not influenced by and do not interact with the environment. All system input and output is internal

Open Systems

systems that interact with the environment. Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.

Moral Rights Rule

the ethical decision is the one that respects and protects the fundamental rights of people (rights of privacy, due process, free speech, etc.). Managers should make decisions based on how the affect the rights of stakeholders and the decision should be the one which protects the rights of all stakeholders. The problem this view presents for the decision maker is, first, how do you decide which rights are fundamental rights? There is much disagreement over what these rights actually are. Secondly, almost all decisions produce benefits for some but harm to others. How do you choose which groups to protect? This produce a precarious ethical balancing act.

Theory of Justice or Legal Rule

the ethical decision is the one that treats people andgroups impartially and fairly according to legal rules and standards. This model implies that ethical decisions involve both Procedural Justice, or fairness and consistency in processes and Distributive Justice, or fairness in outcomes. The problem this view presents for the decision maker is how to determine what the fair rules and procedures actually should be.The manner in which rule are written typically favors one group of stakeholders over others and political behavior may impact fairness.

Utilitarian or Consequential Rule

the ethics of a decision are based on the decision's consequences. A decision that delivers the greatest good to the greatest number (layoff some to save jobs for others) is the ethical decision. To decide on a course of action managers must identify stakeholders and their concerns, and then select the decision that does the most good/least harm. The problem this view presents for the decision maker is how to assess harm/good and how to evaluate the importance of each stakeholder's claim. In other words, does severe harm for a very few stakeholders justify a moderate benefit for all others? Concepts of organizational missions and objectives, and planning