Organizations and Human Capital Final Exam

Disparate Treatment

"I don't want any women working at my company." Intentional discrimination Individuals of different races, genders, religions (etc.) are treated differently, without justification. e.g., the interviewer requires blacks to have five years of service but considers whites with only one year.

Types of Teams Task Interdependence

1) Pooled: many individuals do their work without interacting. Example: swim team, sales team. 2) Sequential: one person starts something and hands off to the next person 3) Reciprocal - work moves back and forth between team members 4) Comprehensive

Job Design: Two Basic Approaches

1) Taylorism School - quantification to manufacturing - province of economists Specialization, efficiency, and the "one best way" Scientific Management 2) Human Relations School Variety, satisfaction, and empowerment Hackman & Oldham's Job Characteristics Model

What's the difference between group or team norms and organizational culture?

Group/team norms are acceptable standards of behavior within a group that are shared by group members Organizational culture are acceptable standards of behavior within a group that are shared by the group's members. Other artifacts are anything we can observe. There are shared values and beliefs, shared assumptions, and these are often institutionalized through policy, procedure, and staffing.

Differences between groups and teams

Group: Two or more people Common or similar goals Common Identity Collective Norms Team Group, with Complementary Skills Committed to a common purpose Shared performance goals Hold themselves mutually accountable Performance goals and rewards or metrics that lash teams together.

What are two sources of culture?

ASA Model Socialization Model

Affective Tone

Affective tone is the average level of positive affect of people on a team. Teams with high positive affective tone perform better.

*Describe 3 broad types of leadership behaviors

Good leaders are often good at both task and relationship-oriented leadership. 1) task oriented: what needs to be done; providing resources, training, measuring results initiating structure production oriented transactional leadership 2) Relationship-Oriented: emanates from the Human Relations School emphasis on employee satisfaction and engagement relationships between leader and subordinate relationships between co-workers consideration employee oriented individualized consideration 3) Change-Oriented: Relevant only during times of change emphasis on new direction motivating effort on behalf of the organization motivating extraordinary effort charismatic leadership transformational leadership Transformational Leadership works well in times of change, difficulty, crisis, etc. Can actually be detrimental during times of stability Task related and people oriented leadership are almost always good Best is to have both

Bandura's Self-Efficacy Theory

An individual's belief that he/she is capable of performing a task. Higher efficacy is related to: -greater confidence -greater persistence in the face of difficulties -better response to negative feedback Self-efficacy theory complements goal setting theory.

Trait Affect

Analogous to personality. Emotions or feelings you feel over the course of your life. Personality trait, enduring. Trait affect leads to moods, which can lead to emotions. I am generally a positive person.

Hackman & Oldham's Job Characteristics Model

Based on the human relations school: based on variety, satisfaction, and empowerment

ASA Model

Bottom-up Three phases of ASA: attraction, selection, attrition Culture comes from the bottom-up. Is Darwinian. Places a lot of emphasis on the founders of the organization. The founder of an organization kicks off the ASA cycle. Attraction: people are attracted to organizations that they fit. Homophily - similar people tend to bond - "birds of a feather." Selection - organizations select individuals holding the attributes they desire. Selection - the organization recruits and selects people Attrition - errors in the attraction-selection phases will be corrected by attrition. Implications: drive toward homogeneity over time

Differences - hiring, etc.

Can make hiring decisions based on legitimate differences (generally deep level - skills/capabilities, values, behaviors), but not (surface level) differences like age, gender, religion, physical appearance, political beliefs

Access and Legitimacy Paradigm

Citywide Financial It's about differences emphasized, but not used as leverage. Diversity in this paradigm is used to connect with clients: it is a resource. However, as a result, careers can be marginalized.

*Affective Circumplex

Developed by Watson, Clark, and Tellegin - a model that shows emotions via an x y axis and places emotions around this axis in a circle. pleasant is on the right and unpleasant is on the left. High intensity is at the top of the y axis, and low intensity (absence) is at the bottom of the y axis. High negative affect (unpleasant+high intensity: upset, stressed); Low positive affect (unpleasant+low intensity: sad, depressed, bored, fatigued); high positive affect (pleasant+high intensity: alert, excited, elated, happy); low negative affect (content, serene, relaxed, calm). People can be both high negative affect and high positive affect.

*Affective Diversity

Differences in trait affect among team members. Different affective makeup (affective diversity) leads to interpersonal conflict and poor team performance. Fit matters.

Equity Theory - one of many theories of organizational justice

Distributive Justice - the actual outcomes of a decision seem fair and equitable Procedural Justice - the manner in which decisions were made seems fair and equitable Interactional Justice - the manner by which decisions are communicated seems fair and respectful

Expectancy (VIE) Theory (Vroom)

Effort--> Performance--> Rewards--> Personal Goals Expectancy, instrumentality, and valence

Expectancy (V.I.E.) Theory (Vroom)

Effort-->Performance-->Rewards-->Personal Goals VIE stands for valence, instrumentality, and expectancy.

Negative Affect

Emotions that express unfavorable states: correlated with neuroticism. Extent to which you feel stress or unpleasurable feelings.

Availability Bias

Emphasizing information that is most readily at hand: recent, vivid we miss the possibility of big, unusual events (subprime meltdown), and we can overdo our response after one (like airplane crashes)

Organizational Justice

Equity theory is one of many theories of organizational justice. Distributive Justice actual outcomes of decision seem fair and equitable Procedural Justice Manner by which decisions were made seems fair and equitable Interactional Justice the manner by which decisions are communicated seems fair and equitable

Formal Leadership vs. Informal Leadership

Formal Leadership: occupies leadership or a managerial job in an organization. The person is required to manage, has the opportunity and expectation to lead. They have their followers' attention. Comes with power. Informal Leadership: there are no managerial responsibilities. There is an opportunity to lead. can be leadership among peers. Can rise to formal status (emergent leaders) Who is acceptable as an informal leader? conscientious people People that deliver performance and results (expert power) those with resources and network those with shared social identity

Emotions: Historical Model

Gather facts, use problem-solving abilities--> as a result of that, we make decisions-->once we are finished making decisions, we have emotions. The historical model is favored by economists. They just want the facts (myth of rationality) stamp out emotions

Bona Fide Occupational Qualifications

Group membership (such as gender/sex or religion) is used as a selection device. Religion, age, national origin, or sex can be a BFOQ; race or color cannot be a BFOQ. a proxy for a characteristic that is impossible or impracticable to ascertain in some other way Customer preference does not make a characteristic a BFOQ, because: allowing it would perpetuate the discrimination Congress intended to eliminate. if a practice is illegal for all employers, then they are on a level playing field (i.e., there's no competitive disadvantage).

High density networks

redundant contacts provide support, identity, trust, cohesion. There is speed in groups.

*Cognitive dissonance

Hold two beliefs/attitudes/preferences, each of which you buy into, but when you put them together they don't go together • e.g. smoking: we all know that smoking is bad for you but some people still choose to do it even though they know it's bad • We deal with cognitive dissonance by changing something, and it's often changing the belief (e.g. the smoker saying it's not bad for him) Cognitive dissonance fuels escalation • Ford Pinto: ugly car manufactured by Ford in early 1970s; gas tank right behind rear bumper so could ignite when crashed into o People on the front line applying standard industry formula: cognitive dissonance

Emotions: New Model

How we feel shapes the actions we take and how we think and vice-versa. Emotions guide our cognitive processes and decisions, but are susceptible to what happens and what we're thinking. Emotions shape the work we do and what we do in the workplace.

Herzberg's Two-Factor Theory

Hygiene factors must be met to remove dissatisfaction. Then, satisfaction can occur.

McGrath's I-P-O Model

Inputs --> Processes --> Outputs

Self-Determination Theory: Intrinsic and Extrinsic Motivation (Deci)

Intrinsic Motivation: People engage in activities because they inherently derive enjoyment from them Extrinsic Motivation: People engage in activities due to the potential for rewards and punishments that others link to the activities People prefer to do things that are intrinsically motivating Extrinsic rewards can actually decrease motivation on intrinsically motivating tasks

*Brokerage Positions - Networks

People with low-density networks can be brokers. Low-density networks are more efficient, and people at the center have an immense amount of power. People at the center are brokers. Be thoughtful about how you reap power from brokerage positions. Get the tight resource from the tight connections. Do not confuse access with competence. Also, beware confusing friendship with competence.

Reach of Network

People with the same number of contacts may have different reach. Value-added from network is a function of the number of sectors you can reach and connect.

*Transformational Leadership

Know the difference between charismatic and transformational leadership often related to charismatic, but focuses on goals and vision for organization and the employee's role in it "what's in it for you...and the organization?" Doesn't rely on personal power basis, but rather using attention to emphasize the greater good and the individual good. Should get employees enrolled on terms that emphasize their individuality within the organization Transformational leadership works well during times of change, but can be detrimental during times of stability.

*Charismatic Leadership

Know the difference between charismatic and transformational leadership the leader brings certain abilities or gifts which followers come to idealize them Brings vision, leverages referent power communicates vision and enrolls followers through emotional appeals effective during times of change Nuance: charisma is bestowed upon leader by followers downside: about leader, not followers leads to demagogues followers become dependent on leader difficult to replace often don't want to leave

*Flexibility and Leadership

Leaders should use the right style at the right time. Transformational leadership works well during times of change, but can be detrimental during times of stability. Task and relationship-oriented leadership are almost always good.

Behavioral leadership

Leadership is a skill set and can be taught to anyone. So, we must identify the proper behaviors to teach potential leaders.

*Leadership vs. Management

Leadership is the act of influencing a group toward the achievement of a vision or a set of goals. This is accomplished through decisions and actions. Leadership is focused on the future, a new set of priorities. Leadership sets the tone, culture, and vision. Leadership mobilizes action through interpersonal influence. Followers grant leaders authority. Management is focused on getting a current set of tasks accomplished. Management is focused on getting a current set of tasks accomplished. Management sets and enforces rules and policies Management uses formal authority to gain compliance. Management is conferred by a higher authority.

Lewin's 3 Step Change Model and Kotter's 8 Step Plan

Lewin's 3 step model Unfreeze-->Move-->Refreeze Kotter's 8 step model builds on Lewin's 3 step model. Unfreeze Establish urgency Form a coalition Create a new vision Communicate the vision Move Communicate the Vision Empower others by removing barriers Create and reward short-term wins Consolidate, reassess, and adjust Refreeze Reinforce the changes

*3 Tasks/Actions of Leadership

Macro view of the tasks of leadership - A CEO should definitely focus on the macro tasks (vision, strategy/alignment) and some on the micro tasks of mobilizing/motivating 1. Vision What is happening? When will it happen? What can/should we do? (our mission statements) 2. Strategy/Alignment: How are we going to do it? Business strategy, resources, culture, organizational design, people 3. Motivation

Motivation

Performance = motivation * ability Motivation are the processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal, particularly an organizational goal.

Fit

Person-Job Fit - personality, knowledge, and ability - people in jobs congruent with their personality should be more satisfied and have lower turnover, and should perform better Person-Organization Fit - fit is in values and beliefs and person-organization fit leads to retention and long-term satisfaction

6 motivational theories

McLelland's Theory of Learned Needs Deci's Self-Determination Theory Herzberg's Model Adams' Equity Theory Job Design (Hackman and Oldham) VIE Goal Setting/Self-Efficacy

Micro view of the tasks of leadership

Mobilizing/motivation. How am I going to help you do it? Interpersonal influence, inspiration, motivation. First level supervisors will not focus on the macro task of vision, but might stray some into strategy. A 1st level supervisor will definitely be in the motivating/mobilizing camp. Within the micro view, effective leadership rests on 1) personality traits 2) specific behaviors 2) contingency - what the situation is and matching behavior accordingly 3) establishing relationships with followers

How can managers influence moods?

Mood induction Emotional contagion For bosses, it is ideal to become neutral and not let it affect the team if you're having a bad day.

Mood Induction

Moods are malleable. We can induce moods by taking conscious steps. Mood induction techniques might include making a joke, being around people that are laughing, etc. Key point: we can induce moods at work, etc.

McClelland's Theory of Learned Needs

Motivate those high in need for achievement motivate those high in need for power motivate those high in need for affiliation

What are the differences between networks and coalitions?

Networks are people-oriented, and coalitions are issue-related

How can diversity be a "double-edged sword"?

Offers benefits of creative problem solving, for example But, also offers the costs of increased relationship conflict

Big 5 Personality Traits

Openness to experience Conscientiousness Extraversion Agreeableness Neuroticism Best representation of the core dimensions of personality

French and Raven's 5 Individual bases of power

Power is always structural in nature. 1. Coercive: ability obtain compliance through doling out punishments/negative things to people 2. Reward: ability to dole out good things to people. Compliance through promised/actual rewards. Pay for performance. 3. Legitimate: Compliance through formal authority. We have roles that have been identified by higher ups that we're told to follow—bestowed to that job and allows things to happen. It's kind of subconscious but can also turn bad—abuses of legitimate power are bad but when done right, it's how things work 4. Referent: Compliance through charisma/personal attraction. An influence you have that makes people want to be with you—like charisma • Draws people in, allows people to lead if you have it • Very dangerous because it's the least logical 5. Expert: Compliance through knowledge/information. Defer our influence to people who actually know what they're talking about • Is positive

power and social exchange/reciprocity

Power is always structural in nature. Relationships are built between individuals as a function of exchanging resources, both tangible and intangible People get what they give when trying to influence others.

Impression Management

Process by which people attempt to control/manipulate the reactions of others to images of themselves or their ideas; how someone talks, behaves, looks.

Affective Trust

Rooted in shared values, emotions, destinies shared journey in life. "She's got my back." Allows for productive task conflict without relationship conflict. Good for constructive criticism. It helps to have shared interests, identity, history

Scientific Management vs. Job Characteristics Model

Scientific Management - Managers know best; people are motivated extrinsically Job Characteristics Model - employees have insight into their jobs people are motivated by challenging work

Tuckman's Five-Step Model

Team formation Forming, storming, norming, performing, adjourning Assumption: the group becomes more effective as it progresses through the first four stages Not always true - group behavior is more complex High levels of conflict may be conducive to high performance The process is not always linear Several stages may occur simultaneously Groups may regress Ignores the organizational context

Define Social Networks

Social networks are the web of ties that connect people to each other, in a group, an organization, a community, etc. Interpersonal relationships. Ties come from stuctural factors (formal orgnanizations, physical proximity, job design) and individual or personal characteristics (similarity, etc.) Personal network - the set of relationships critical to geet things done, get ahead. Intra-organizational network is set of relationships between members of an organization.

Discrimination and Fairness Paradigm

Spencer Owen "We are all the same, and differences do not matter." There is pressure to assimilate. This undermines the very essence of diversity.

How do employees learn culture?

Stories, rituals, material symbols, and language (jargon)

Tie strength - the important nuance on the size of networks

Strong ties - Frequent contact/know well/strong commitment Intuitively desirable Make our day to day function well Weak Ties Direct ties with limited contact OR Indirect ties Provide unique information that your strong ties don't Best path to the next job Dormant Ties - Historically strong ties with whom you have lost contact Provide stronger benefits (often) than your strong ties Between ties, resources are exchanged.

*Structural Holes

Structural holes are inherent in low density networks. They allow brokers to access unique resources and information. The more structural holes you occupy, the more powerful you will be. A person with lots of structural holes and a low density network has lots of power within a company (in retaining a job, getting a raise if threatening to leave) because there will be a gaping hole if that person leaves. Bosses do not want employees to have low density networks. Also, non-redundant contacts are more efficient from a cost perspective. Diversity and reach is very important. Low-density networks can have high or low reach. Aspiring to low density, high-reach networks is a good idea.

Age Discrimination and Employment Act of 1967

The Age Discrimination in Employment Act of 1967 (ADEA) protects certain applicants and employees 40 years of age and older from discrimination on the basis of age in hiring, promotion, discharge, compensation, or terms, conditions or privileges of employment.

Integration and Learning Paradigm

The philosophy behind this is "we are the same, with our differences and not in spite of them." Perspectives and experiences are shared and with this paradigm, diversity is a resource for learning.

*4/5 rule

The rate of impact on minority groups should be no worse than 80% of that of the dominant group. Is about measuring discriminatory impact. This is in line with the EEOC guidelines. Hiring less than 4/5 of a mi Just a guideline, but one that is effectively law The 4/5 rule was designed to allow companies and regulatory agencies to find out if there is discrimination against protected groups. Let's say: 100 white people apply for job and 50 are hired: 50% hiring rate 100 minorities apply for a job, and 39 are hired - 39% hiring rate 39/50 = less than 4/5 or 80%, so the company is discriminating. Meanwhile...If a company hires 1000 men apply to job and 50 are hired 100 women apply to job, and 80 are hired Women have not been discriminated against. If I hire 20% of all male applicants, then hiring less than 16% of all female applicants provides "evidence" of disparate impact

*Nadler & Tushman Congruence Model

Three stages: inputs, transformation process, outputs Congruence: when element of the model fits with other elements external congruence= fits with strategy; or fits with each other Congruence asks how well everything lines up The Transformation Process: Formal • Internal: the various processes employed are aligned and in sync with each other • External: does the configuration of the Transformation Process align with the strategy? Organization • Structure, formal processes, and systems (e.g. reward systems, info systems, control systems) • HR processes and procedures are a critical part of this simplest version of the formal organization transformation process is an org chart. The Transformation Process: Work • Characteristics of tasks/jobs • Workflows/interdependencies, knowledge requirements, time demands The Transformation Process: People • Characteristics of individual members of the org • Personalities, motivations, skills, demographic characteristics The Transformation Process: Informal Organization • Implicit, assumed, unwritten aspects of the org • Culture, norms, values, power, group dynamics, communication patterns Plays into change.

Instrumental Trust

Trust in the behaviors of others: consistency, competency, reliability -e.g. he's predictable, capable we can trust both friends and enemies under this definition Critical to executing in teams. For getting things done.

Disparate Impact

Unintentional discrimination The same selection standard has different consequences for two groups, without justification. e.g., a height requirement or minimum GMAT score may adversely affect some groups.

*Emotional Labor

When an organization tells you that you must display certain types of emotions while performing work. Ex: flight attendants. Especially prevalent in jobs that require interpersonal interaction.

Cautions to Goals

When goals are too high reduction in help/cooperation increase overstatement of results narrowing focus misaligned goals

Organizational Culture

a pattern of basic assumptions, values, beliefs, and behaviors that embody the organization or that the organization embodies. What people think, how they behave, what they value. Is taught to new members as the correct way to perceive, think, feel. A strong organizational culture unites the members of an organization.

hindsight bias

after an outcome is already known, believing it could have been accurately predicted beforehand.

Gersick's Punctuated Equilibrium Model

an alternative model for team formation - Gersick Most social systems exist in an extended period of stasis, which are later punctuated by sudden shifts in radical change.

Low density networks

are more efficient. The person that is at the center of a low density network has high economic power and is a broker.

Biases made in individual decision making

availability bias, anchoring bias, confirmation bias, overconfidence bias, escalation of commitment, randomness error, winner's curse, hindsight bias

overconfidence bias

believing too much in our own ability to make good decisions

randomness error

creating meaning out of random events: superstitions

Socialization Process

culture change Top-down formal and informal ways of communicating the norms, values, and brliefs of an organization. Need to train people when we get larger—inform people what the "right" behaviors are and what the value set is Formal: training programs Informal: after-work gatherings, social events Also a drive toward homogeneity.

positive affect

emotions expressing positive states; extent to which you feel enthusiastic, alert, active, extroverted. People with high positive affect tend to be better problem solvers, more likeable, healthier. Leads to good interpersonal relationships.

Civil Rights Act Title VII of 1964

federal law that prohibits employers from discriminating against employees on the basis of sex, race, color, national origin, and religion. It generally applies to employers with 15 or more employees, including federal, state, and local governments.

Adams' Equity Theory

focuses on people's perceptions of fairness of outcomes in proportion to inputs equity exists when a person perceives his/her outcome/input ratio to be equal to a referent's ratio output: pay, promotion, status Input: effort, hours, attention Equity theory doesn't allow us to compare across different jobs

winner's curse

highest bidder pays too much because of value overestimation the likelihood increases with the number of people in an auction

Emotions

in the moment; intense experience. may go away quickly • We care about it because it drives what matters--the way you feel in a particular moment will drive a decision you make. "I'm angry right now."

Escalation of Commitment

increasing commitment to a decision in spite of evidence that it is wrong, especially if you're responsible for the decision. Conditions for escalation of commitment: previous failures, significant potential gain from going forward public nature of commitment and outcomes

Intergroup Competition

intergroup competition spurs performance because groups compete for resources and status. Low status groups are fundamentally motivated to take down high status groups.

Trait theory of leadership

leadership is inherent in people, so we must identify a leader based on his/her traits. Ex: extraversion makes it easier to be a leader. This is an old school theory, in some ways. We have moved away from the "great man" theory of leadership.

Moods (state affect)

longer duration than emotion - at least a day - not completely situational, but may be triggered by something that's built up over time; not as intense as emotions "Today, I'm in a good mood."

Emotional Contagion

moods can be passed from person to person. Emotions are cued by non-verbal signals like body language, tone, etc. More likely to happen in passing positive emotions than negative ones because people avoid negativity. Moods spread from leaders to followers. Happens between employees and customers, too. If the stakes are high induction of negative moods can be okay, too, because it can imply urgency.

Iceberg model of culture

most behavior, values, beliefs, and basic assumptions are under the surface. Behavior/artifacts are anything we can observe that give clues as to how people behave.

confirmation bias

selecting only facts that support our decision

Elements of strong cultures

situations in which the behaviors and values are widely and consistently shared among organizations members -everyone or lots of people at the org have the same value widely shared philosophy of norms and values charismatic leaders ritual/ceremony clear expectations about the direction of the organization A strong culture is consistent, but not necessarily good. Positives: Person/organization fit clarity of behavior and purpose effectiveness of recruiting/selection Liabilities institutionalization of deviant behavior fairly inflexible to strategic change not a great environment for diversity unless we build a culture of diversity

Taylorism School of Job Design

specialization, efficiency, and one best way: scientific management: the province of economists

Locke's Goal Setting Theory

specific and difficult goals, with self-generated feedback, lead to higher performance key point: goals are ultimately internalized as personal goals

Affect

technical term for emotions

Contingency theory (leadership)

the behaviors a leader take on are built on what the situation is.

Organizational citizenship behaviors

the holy grail of organizational behavior a person's voluntary commitment within an organization or company that is not part of his or her contractual tasks.

Transformation process

the how: the pieces that need to be put in place. A good organization generates results and then takes stock. The transformation process is a resource you've built. It is the alignment of the different components. HR fits into the entire transformation process. There are steps to organizational performance: 1) have a strategy that makes sense 2) align all of the resources within your organization to match and delivery on the desired performance the transformation process is this alignment occurring.

Emotional Intelligence

the set of abilities accounting for how people's emotional perception and understanding vary in their accuracy. Your ability to perceive emotion in yourself and others You can perceive it, take in information, and problem-solving purposes: another piece of data to use in decision-making. Emotional intelligence is not just being warm and caring. It is about being able to identify, motivate, and deliver emotions when you want. Using emotions as data.

Leader Member Exchange

there are in and out groups. What is the nature of the relationship between the leader and the employee?

anchoring bias

using early, first received information as the basis for making subsequent judgments

Groupthink

when people come together, we force them to conform to the group and the process and stamp out minority and unpopular opinions.

Disparate Impact Theory

wonderlic tests - A much smaller proportion of African-American applicants than of white applicants got over these "hurdles." So, very few of them received operating department jobs.