Marketing Final
________ is the tendency to either "under notice" or "over focus on" stimuli that cause emotional discomfort or contradict prior beliefs.
Selective perception
Managers seeks to control and provide stability within the existing circumstances. Leaders
pursue change and challenge the status quo.
A portfolio manager liked a new product that included a swap, a financial derivative. Since he had the authority, he proceeded without asking any other departments about it. A year later, he learned that the back-office was upset with the difficulty of handling the swaps. A team approach would have improved communication and
team motivation
Hersey and Blanchard's Situational Leadership Theory categorizes leadership behavior into four categories. These are
telling, selling, participating, and delegating.
An international team of scholars researching a theory of the relationship between culture and societal, organizational, and leadership effectiveness from 62 different societal cultures is known as:
the GLOBE project
Baseball is not an inherently safe sport. Whenever several players are involved in a play, the risk for collisions is high. Teamwork and ________ dramatically reduce the risk of mishaps.
to be attentive to how they interact and collaborate with each other
Sam works for a company creating marketing campaigns that raise awareness of environmental issues. He travels frequently to present these campaigns, and he has the freedom to work from anywhere with his laptop. Based on this description, Sam values:
universalism, self-direction, stimulation
Companies have found that surveys can easily introduce biases that make objective measurement of attitudes difficult. A solution is to
use professionally designed surveys.
In the United States, old t-shirts may be donated to secondhand stores. Because shipping rates are ________, the stores can make a profit shipping the t-shirts to Africa.
very low
Management at the SAS Institute, which sells packaged database and analysis software, says, "The investments we make in employee health, well-being, and ________ can be seen in a dedicated workforce, committed to moving up the ranks rather than out the door. SAS' turnover rate of about 4 percent is far below the industry average of 15 percent, which translates into consistent, long-term relationships for our SAS customers."
work-life balance
If you want to convey facts, what is the best communication choice for you?
written communication
Business Ethics
benefits the organization internally by helping to ensure its success.
When you receive a c*0*m*M*U*n*i*c*a*t*1*0*n, you will try to interpret it. In the communication process, this is called
decoding.
An export strategy is used when a global company
does not intend to expand globally but does export some products.
Active listening requires control of one's own attention and thoughts. For example,
don't allow yourself to prepare a response before the speaker has finished his remarks.
Jamie Dimon, the CEO of J.P. Morgan bank, wanted to clarify his position on "racism and intolerance" after events in Charlottesville, VA. He sent a message to all employees, saying in part, "Racism, intolerance and violence are always wrong. The equal treatment of all people is one of our nation's bedrock principles. There is no room for equivocation here. ... It is a leader's role, in business or government, to bring people together, not tear them apart." This is an example of ________ communication.
downward
Jack and Jill disagreed on how best to fetch water to the house, a daily task. They bickered every day and neither could compromise. Their conflict is
emotional
The most media-rich channel for exchanging information is:
face-to-face
1a President Trump's tweets are a ________ communication channel. A tweet allows only 140 characters to be transmitted with no feedback.
lean
Transactional leadership is ________ transformational leadership.
more common and familiar than
A listener's emotional state or ________ may filter what he hears in a message. For example, if management has not honored past commitments, the listener will look for the catch.
past experiences
To meet the standards of the Sarbanes-Oxley Act (SOX), a code of ethics must include standards to promote
"honest and ethical conduct; full, fair, accurate, timely and understandable disclosure in periodic reports" and "compliance with applicable governmental rules and regulations."
Investors will punish companies that suffer bad news. For example, if a restaurant reports contamination, investors will sell the stock. But economic studies suggest that some activities can mitigate the market reaction. Institutional investors will act more cautiously if the company has a good ________ reputation.
CSR
In the ________, consensus develops around who the leader or leaders are, and individual member's roles. Interpersonal differences begin to be resolved, and a sense of cohesion and unity emerges. Team performance increases during this stage as members learn to cooperate and begin to focus on team goals.
norming stage
In 2007, Microsoft (MS) had a dominant share of the cell phone market. MS was displaced by Research-in-Motion (RIM), maker of the BlackBerry phone, in 2010. RIM was replaced by Android phones and the Apple iPhone. For a tech company, doing the same thing is
not a viable option because another company is working on the next big thing.
Karen is a programmer with Yahoo and a mother. Her work has been outstanding but she is distracted recently. Her children are both in school and after-school-care, and she is worried about them. Since her work output is easily measured, her manager could
offer flexible hours.
Vanessa joined colleagues after work for drinks. The conversation naturally turned toward complaining about work. But Vanessa disagreed with her colleagues, saying, "We are growing and improving our services, and clients are excited about the changes. I love it." Vanessa shows
organizational commitment.
In 2011, the SEC issued new whistleblower rules required by the Dodd-Frank Act. Under the new rules, a whistleblower is eligible for a bounty equal to 10 percent to 30 percent of monetary sanctions resulting from an enforcement action. The largest reward to date under this law was
over $60 million.
Allison has been working long hours on a difficult assignment. Her boss won't know the difference if she lets the quality slip a bit and goes home to her children. What principle might help Allison in this decision?
personal virtue
An unethical management will pay the price in various ways including
poor reputation.
In the United States, the wealth inequality is extraordinary. The wealthiest 10% control three-quarters of all family wealth in the country, and the rich are still getting richer. But most Americans are not disturbed by this outcome. They have faith in the free markets for labor and capital. This approach to wealth distribution falls under
procedural justice.
Consumers today expect a lot out of companies. According to a study by Cone Communications, 84 percent of consumers actually ________ .
seek out responsible products
Pivotal Labs, a software firm, never tried to reduce or get rid of managers or create ________. Instead, CEO Rob Mee, who co-founded Pivotal in 1989, based his culture on extreme programming and designed the most efficient project team structure for getting things done fast and well. Managers were never part of the mix. And it worked.
self-managed teams
Some companies use a 360-degree feedback process, which includes feedback from an employee's subordinates, peers (colleagues), and supervisor(s), as well as a self-evaluation by the employee him or herself. This approach would be particularly useful in a
self-managing team
Intrinsic rewards are not tangible, meaning that they can't be easily measured or quantified. Some examples are
skill development and skill mastery, social status, or power.
Paul looks forward to working with his team. They are a good group that looks out for each other and the success of the group. Paul's team is an example of
social cohesion
An investigation of the safety issues with the Chevrolet Cobalt car blamed GM's company culture in part. Mary Barra, the CEO, described the "GM Nod" as when everyone nods in agreement to a proposed plan of action, but then leaves the room expecting someone else to handle it. The GM Nod is a form of
social loafing
When Joel and Frank pulled on a rope alone, each exerted a force of 100 pounds. Next, they were asked to pull together. Each is given enough room on the rope to avoid accidental coordination problems. But when they pull together, their combined effort is 160 pounds. This may be due to
social loafing
An organization that values the personal touch, involvement in the local community, and where employees work from the office is a good person-organization fit for:
someone who values empathy, enjoys an office job, and regularly volunteers with the local Lion's Club.
A ________ strategy produces efficiencies by centralizing many common activities, such as product design and technical expertise, gaining production economies of scale, simplifying the supply chain, and reducing marketing costs.
standardization
Today, ABB is a Swedish-Swiss multinational corporation headquartered in Zürich, Switzerland, operating in robotics and in the power and automation technology areas. ABB was created from the merger of ASEA (Swedish) and BBC (Swiss) in 1967. The joint companies made lights and generators. Although electrical outlets differed by country, customers are primarily concerned with function and efficiency. ABB's strategy, at this time, was
standardization
Conflict will arise if neither party is willing to give way or compromise on their position. Arguments over things such as goals, tasks, and the allocation of resources are considered
substantive conflict
Leadership is about establishing a direction and influencing others to follow. Management is about
successfully administering the details involved in a business's operations.
In ________ leadership, the focus is on the objective analysis of what needs to be done and the specific course of actions that should be taken to meet those needs.
task-oriented
The North American Free Trade Agreement (NAFTA) between ________ allows for tariff reductions or eliminations. The agreement has been very good for consumers and some industries like automobile manufacturing. But it also displaced some manufacturing workers.
the United States, Canada, and Mexico
The middle of the communication process connecting the sender and receiver is called
the channel.
Studies have shown that an audience reacts initially to ________. If you appear nervous, your audience will pick up on that and become nervous as well.
the demeanor of the speaker and not to what is being said
Tom must decide between two employees for a promotion. One is struggling financially and needs the raise. The other is more competent and enthusiastic. In making a decision, he might consider
the long-term interest of the company.
The degree of importance of an ethical decision depends, in part, on
the proximity of consequence—that is, the distance between the decision maker and the person affected.
Effective teams know how their work contributes toward an organizational goal. The team leader reminds members of how each team member makes business success possible. In other words,
the purpose of the team must be clearly defined in concrete and measurable objectives.
The factors affecting ethical intensity of a decision include
the significance of the consequences and the number of people affected.
Francis worked for GM for 39.9 years, but died 1 month short of retirement. Since he did not retire, his family normally receives nothing from the retirement funds. His widow petitions Mark, his manager, to make an exception and allow the retirement benefits. Mark wants to say no because if this were a regular policy, it would hurt stockholders and draw down retirement funds for the true retirees. But he is sympathetic to the family. What principles is Mark struggling between?
The greater good for all employees and the harm to this one family.
Which is true about the Apple iPhone?
The iPhone parts are made in over 20 different countries.
As a manager applying reinforcement theory, what methods would you use to reduce the frequency of an undesired behavior?
You might completely ignore the unwanted conduct and reduce the behavior because it receives no reinforcement.
Procter & Gamble needs many different skills to put together a new product launch. They need
a cross-functional team
Congress created a task force to study infrastructure projects and funding. A task force is
a group or committee, usually of experts or specialists, formed for analyzing a specific problem
A whistleblower hotline is
a phone number for employees to anonymously report suspected acts of impropriety such as fraud, waste, abuse, misconduct or violations of policy or any law or regulation.
Today, ABB is a Swedish-Swiss multinational corporation headquartered in Zürich, Switzerland, operating in robotics and in the power and automation technology areas. The robotics industry requires high investment costs in developing the new technology and in manufacturing facilities. ABB would like to spread these costs over as large a customer base as possible. But each customer also requires small adaptations to their way of doing things. For its robotics business, ABB needs
a transnational strategy.
The Association of Certified Fraud Examiners estimates that fraud costs US companies
about 5 percent of their revenues, or $900 billion per year across the US.
If you feel a strong need for success, you have a need for ________, according to McClelland's acquired-needs theory.
achievement
Hewlett-Packard (HP) is one of the world's largest technology companies and has one of the industry's most extensive supply chains. Comprising more than 1,000 production suppliers and tens of thousands of nonproduction suppliers, it spans 6 continents, more than 45 countries and territories, and many cultures. HP's suppliers compete
across the globe.
In addition to hiring ethical employees and offering ethics training, it is also important for senior management to model ethical behavior. The responsibilities of senior management include
acting ethically and making this visible to employees.
One ________ technique is to ask questions to verify or confirm what you heard the speaker say.
active listening
A global company uses a multidomestic strategy when it
adapts to local needs and markets
MinTsung prefers to work independently as a risk analyst. In fact, he gets upset and competitive if someone else crosses into his responsibilities. But left on his own, he produces exceptional, well-organized work. His manager should
add staff reporting to MinTsung so that he can train someone to support his work.
In the________, most of the team's goals have been accomplished. The emphasis is on wrapping up final tasks and documenting the effort and results. As the work load is diminished, individual members may be reassigned to other teams, and the team disbands.
adjourning stage
As a manager you may need to discipline poor-performing employees and clearly communicate both good news and critical feedback. If you are preoccupied by how others perceive you, you have a need for ________, according to McClellend's acquired-needs theory, and you might find managing others difficult.
affiliation
The US Congress passed the Sarbanes-Oxley Act (SOX) in 2002 in reaction to accounting abuses. It requires that public companies establish and enforce a code of ethics. SOX ________ .
also requires that any changes to an established code of ethics be disclosed to the public.
Informal communication systems skip over hierarchical levels and between departments and functions. They can connect
anyone in an organization to anyone else.
Gallup estimates that employees who are unmotivated cost US businesses ________. Clearly, this suggests a problem. The good news is that a considerable amount of research now provides us with solid insights into how to improve motivation.
around $500 billion per year
International assignment management is one of the most challenging tasks for HR professionals to master—and one of the most costly. Yet many international organizations fail at it. Companies report a 42 percent failure rate in these assignments. That is expensive, when the average cost of a three-year assignment
averages about $1 million.
Pew Research reported in 2016 that 8 percent of American adults report that they have earned money from some type of digital work platform in the last year, often by doing online tasks. Because this work is generally unstable and the income unreliable, these workers may not satisfy Herzberg's hygiene needs. Companies cannot begin to truly engage and motivate these workers until they satisfy the workers'
basic needs.
General Motors, a car manufacturer, has a tight relationship with its parts supplier, Delta. GM and Delta coordinate on engineering designs and share inventory information. When GM does well, Delta
benefits from having a steady, profitable outlet for their products.
Bill Gore was the inventor of Gore-Tex, a fabric popular in many sports. When building his company, he wanted to harness the fast decision-making, diverse perspectives, and collaboration of small teams. His approach was that "We're all in the same boat," sharing risks and rewards and committed to what's best for the company and its long-term success. One advantage of teams is
better communication
The US Sentencing Commission recommends that senior management "periodically communicate the aspects of the compliance and ethics program to its members ________."
by conducting training programs and disseminating relevant information
Best practices in the selection and hiring of ethical employees involve including the company's most ethical employees in the interview process. Interviewers already doing the job
can ask relevant questions that can lead to answers that reveal a lot about the candidate.
The first step in good communications is to ________ encode information for the specific receiver, whether information is written, spoken, graphic, or numerical.
clearly and concisely
Mustafa and Jeff argued about an investment in asset swaps. Mustafa believed that the back office could not handle a tricky transaction. Jeff argued that the investment was worth the extra time to create and practice the procedure. Mustafa agreed if he could do the training himself. The conflict was settled by
collaborating
All the following are areas in Maslow's hierarchy of needs, EXCEPT:
collaboration, coordination
Extrinsic rewards come from outside the individual. These stimuli take the form of
commissions, bonuses, raises, promotions, or additional time off from work.
In 1999, Wired magazine reported a story entitled "Metric Math Mistake Muffed Mars Meteorology Mission." A NASA review board found that the problem was in the software controlling the orbiter's thrusters. The software calculated the force the thrusters needed to exert in pounds of force, but a second step assumed the data was in the metric unit: newtons. Oops! The software developers needed better
communication
Mustafa and Jeff argued about allocating the time of a junior team member. In the end, they agreed to split the difference and share his time equally. Mustafa and Jeff settled their difference by
compromising
Bill is a Brazilian immigrant. Bill's work before joining the group was terrific, a breakthrough in combining position data and financial modeling. He joined a new group to clean up a financial database. His work relied on cooperation from the IT department, and they claimed to be too busy to help. He made no substantive progress for months. Peter, the executive for the division, did not like Bill from the start. When he heard of the delays, he blamed Bill. This is an example of
confirmation bias.
Easy communication through the Internet is changing the organization of some activities. The traditional hotel industry now competes with Airbnb. Airbnb is a platform for renting out a room in your house. Analysts suggest that hotels may partner with Airbnb by listing properties with them. To succeed, organizations must
continually adapt and apply new strategies.
Michael Porter of Harvard Business School developed a concept of "shared value." The central premise behind creating shared value is that the competitiveness of a company and the health of the communities around it are mutually dependent. Shared value is similar to
corporate social responsibility.
In communication, the validity of the message is tied to the ________ of the sender. If the receiver doesn't trust the sender, he will view the message itself with skepticism or suspicion.
credibility
Guillaume has persuaded Valve to support development of a new game. He has a vision of a tile-based game. His six employees are technical experts in game design and will follow his vision. He needs their expertise and creativity in working out the interactions and details. Guillaume should take a ________ style of leadership.
democratic
Training an employee for an overseas assignment represents a significant investment for the company. The cost of a three-year assignment averages $1 million. The first and usually least expensive step is textbook and classroom learning, also called
documentary training.
What traits have strong correlation with leadership?
drive, desire to lead, open-mindedness, intelligence, and extraversion
In February 2017, Susan Fowler published an open letter describing her experience at Uber. She described clear incidents of sexual harassment. In response, Uber said this was an isolated case and published an aspirational report on diversity at Uber. The majority of the leadership positions at Uber are held by men (78%) and whites (77%). If Uber has a problem with organizational justice, management will see
employee dissatisfaction and disgruntlement.
The compliance steps of the US Sentencing Guidelines include
enforcing the program with disciplinary actions for anyone engaging in unethical behavior.
The St. Louis Federal Reserve reports that "firms can strategically engage in socially responsible activities to increase private profits." The firm's stakeholders value the firm's social efforts, and the firm can obtain additional benefits from these activities, including
enhancing the firm's reputation and the ability to generate profits by differentiating its product.
The relationship between communities and local employers is complex. President Trump and Governor Scott Walker announced in 2017 that Foxconn, a Chinese firm, would build a plant in Wisconsin and employ 13,000 people in the state. Wisconsin offered tax breaks that totaled $230,000 per job. Another CSR concern is
environmental pollution.
Individuals are motivated by a sense of fairness in their interactions. According to ________, our sense of fairness is a result of the social comparisons we make.
equity theory
A code of ethics is
essentially a moral compass.
A broad survey of consumers shows that many factors affect reputation but that ________ is the primary concern. Customers will switch to other brands when a company appears in headlines reporting bad behavior.
ethics
Martin Winterkorn, ex-CEO of Volkswagen, was known for his exacting standards and perfectionism. He set VW on a path to become the world's largest automobile manufacturer. In the culture he shaped, failure simply was not an option,
even if it meant taking illegal steps.
The expectancy theory says that employees make a rational calculation with three components before committing to a task. The three components are called
expectancy, instrumentality, and valence.
Bunge Limited supplies the world with agricultural commodities, such as grains and oilseeds. Corn grown in the USA is sent to Japan, Mexico, and South America. Bunge international activities are managed from its headquarters in White Plains, New York. Bunge's global strategy is
exporting
A franchiser like McDonald's risks a loss of quality control in foreign countries. The franchiser must ensure that the local owner/manager can implement the quality control measures to safeguard the corporate brand. The franchiser's
financial risk is lower because he need not make a direct investment.
Formal communications conform to rules and regulations prescribed by the profession or law. Formal information
flows within the chain of command or within task responsibilities.
One approach to dealing with stress in the workplace is to train employees to manage their stress. But if stress levels are unreasonably high, organizations may need to
focus on changing the basic systems and forces in their organization.
The US Sentencing Commission Guidelines require most companies to create an ethics program. This can be challenging, so most companies
follow the 7 broad compliance steps created by the Commission.
Team norms set a standard ________ that all team members are expected to follow.
for behavior, attitude, and performance
The Myers-Briggs Type indicator is popular with corporate Human Resource departments as a learning tool
for self-analysis and insight into how to best grow and improve.
In addition to giving employees direction, goals motivate because they
force employees to think outside the box and reconsider how they are working.
The ________ involves a period of orientation and getting acquainted. Uncertainty is high during this stage, and people are looking for leadership and authority.
forming stage
The German car company, Daimler-Benz, merged with Chrysler in 1998. Cultural differences and organizational culture are both acknowledged to have played a role in the failure of the merger. Daimler was a German company that could be described as "conservative, efficient and safe," while Chrysler was known as "daring, diverse, and creative." The attitude toward hierarchy was different as well. Daimler was heavily hierarchical, with a clear chain of command and respect for authority. Chrysler, on the other hand, was more team-oriented and egalitarian in its approach. Daimler valued reliability and achieving the highest levels of quality, while Chrysler relied on catchy designs and offering cars at competitive prices. These cultural differences led to conflicting orders and goals in different departments. The difference in the two companies' views of reliability vs. competitive pricing is an example of:
future orientation
When General Motors and SAIC Motor created their joint venture in 1997, the employees noticed cultural differences influencing their planning. The employees of SAIC Motor, a Chinese company, could be described as patient investors focused on organizational success, and they had a more rigid organization. General Motors employees were said to be looking for quick wins with an eye on personal success as well as the venture's success, and more egalitarian in their treatment of colleagues. In the GLOBE analysis, the difference in quick wins vs. patient investors describes what dimension?
future orientation
Gary works in a team with strong opinions. He decides not to rock the boat with an issue. A new issue will cause a storm of discussion, and the team is working well now. This is the negative side of social cohesion, called
groupthink
It is better to
hire someone who is naturally inclined to behave in an ethical manner
All of the following are examples of external communication, EXCEPT:
human resources management memos
Frederick Herzberg surveyed workers to ask what was important to their motivation. He found these could be grouped into two sets of factors, which he called
hygiene factors and motivators.
A transformational leader uses four types of tools to inspire followers. These include
idealized influence, inspirational motivation, and intellectual stimulation.
Wells Fargo, a bank, followed a common management technique, goal-setting theory: set a goal and step back and let employees figure out the best way to get there. At Wells Fargo, the goal was to increase sales by cross-selling accounts to existing customers. Some employees figured out a shortcut that involved
illegally creating new accounts without customers' knowledge
Goal-setting theory is one of the most influential management practices. There is strong evidence that setting goals
improves performance toward the goal.
To engage and motivate employees, many firms offer both salary and
incentive pay.
A manager's display of social sensitivity, such as the level of respect and dignity shown to employees, will have a positive effect on employees' level of engagement. This describes
interactional justice.
Communication missteps also occur during decoding when the receiver
interprets the message differently than the sender intended.
A democratic approach to leading means
involving the employee team in the decision-making process.
The National Football League controls the performance-based pay for professional football players. For example, Tom Brady received $14,102.25. His annual salary is $20 million, so he may not have noticed when this hit his checking account. Since the way team members function as a group is as important to the team's success as the individual effort, the NFL performance pay
is not giving the right incentives
If a team is too small,
it may not have enough resources or skills
Potential problems organizations might run into when relying on personality testing for employee selection include:
job candidates might fill out a personality test based on what type of person they think the company is looking for, thus faking the test.
Gucci manufactures luxury shoes. It allows individuals to make changes to their work responsibilities, even dramatic changes, if they create or discover more efficient ways to work. This is an example of a company using ________.
job enrichment
Volvo tried ________ in the 1960s, and quality skyrocketed, according to then-president Pehr Gyllenhammar (who retired in the 1990s). This approach dramatically boosted quality (and often raised productivity as well) by pushing power down, replacing inspection with responsibility, and having people work in teams. Volvo found that production under teams stayed constant, largely due to systems constraints, but that the time and capital invested to make the switch was more than paid off in cost savings from reduced turnover and absenteeism.
job enrichment
An employee attitude that is significant to company outcomes is
job satisfaction.
Frank is angry and arguing with Jeff about procedures. Jeff wants to ignore the written policy because the accountants are not familiar with the procedure. The company is under investigation by regulators and the FBI for accounting fraud. External conditions may cause ________.
low team morale and conflict
________ improves employee morale and productivity. It convinces employees that the company is committed to ethical treatment for all stakeholders including themselves. Employees internalize the mission and values of the company more.
Ethics training
________ is a positive reaction to stress that generates a desire to achieve and overcome challenges.
Eustress
SAIC General Motors Corporation Limited is a joint venture between General Motors Company and SAIC Motor that manufactures and sells Chevrolet, Buick, and Cadillac brand automobiles in mainland China. SAIC Motor Corporation Limited is a Chinese state-owned automotive design and manufacturing company. One advantage of this arrangement is that
each partner carries part of the burden of costs to start and run the joint company.
In an interactive communication process, a key step is the last. The receiver can send ________ to the sender to indicate that the message has been received and explain how it has been interpreted.
feedback
When a company practices the values a person cares about, the person is
more likely to accept a job offer at the company.
In forming an opinion about organizational justice, employees tend to focus especially on
pay equality and advancement opportunity.
Wells Fargo was fined for customer fraud in 2016. They ignored employee reports of fraud. But they did some things right: they had a code of ethics, investigated when customers reported fraud, and enforced the ethics program by
punishing violators caught defrauding customers.
As a result of globalization, business are able to outsource, moving manufacturing to the country with
the cheapest labor
Gallup's survey, the "State of the American Workforce," shows that ________ percent of employees are either "actively disengaged" or "not engaged." "Actively disengaged" means employees aren't just unhappy at work—they are resentful and are acting out their unhappiness. Every day, these workers potentially undermine what their engaged coworkers accomplish.
67
Starbucks operates in 62 countries around the world. It tailors its products and services to the needs of each market. Marketing strategy is shaped by local culture. Even the taste of the coffee changes for local preferences. The company's decision to open branches in foreign markets is based on research information on customer traffic and local real estate. Starbucks uses a
multidomestic strategy.
What role do stereotypes play in the workplace?
Aside from the rare exception where they may open the door to a learning experience, stereotypes have no place in the workplace.
What does the ERG theory add to Maslow's assumptions?
It defines the "frustration-regression" principle
In 2015, Calvin Klein looked to Ethiopia to manufacture its clothing. Pay was as low as $21 a month there. The work was
good for workers in Ethiopia.
________ leadership means treating employees with respect, showing consideration for employee feelings, and building relationships with employees.
People-centered
________ is defined as the degree to which a person's values, personality, and other characteristics match those aspects of an organization.
Person-environment fit
________ is the unique, relatively stable set of thoughts, behavioral patterns, and feelings of a person.
Personality
________ helps demonstrate how things are done in an organization, clarifies key values, and helps to construct common meanings for people within the organization.
Storytelling
The GLOBE project identified differences in national culture. These nine dimensions include
assertiveness, future orientation, and humane orientation.
If an employee's actions go against company policy, the company
can be held legally responsible, despite its best efforts to prevent unethical behavior.
Companies can accurately assess employee work attitudes by
conducting confidential attitude surveys and exit interviews.
If companies hired and fired based on trait analysis, then
Bill Gates would not have led Microsoft. He is an introvert.
The ________ oversees the implementation and administration of agreements between member nations.
World Trade Organization (WTO)
Jefferson has worked as an inventory specialist at the DeFeet sock company for seven years and receives $15 an hour. He is very diligent on the job and has never been late. As his skills have grown, he has become more like the manager of the inventory department. He makes sure everyone has the tools, access, and information needed to do their jobs effectively. Jefferson is management material. Today, Jefferson shows up at work to discover a new manager has been hired to oversee inventory. He discovers that the new manager is paid $25 an hour. In this scenario, what are the inputs according to equity theory?
$25 per hour
Rob has made several successful investments. Each will earns $20,000 per year for the next 15 years. To expand the program, he will need an additional headcount. But Pat, another team member, wants additional headcount for a different investment. Management will only allow one hire. What does this situation illustrate?
Competition over resources can cause conflict.
When Motorola created the RAZR flip phone in 2003, they fought "contentious internal battles" over what a cell phone should look like. What does this show?
Conflict can spark new ideas and generate creativity.
________ benefit from healthy competition between businesses. But sometimes companies will drive prices below costs to win market share and put competitors out of business. This is called predatory pricing. In the short run, customers benefit from lower prices, but in the long run, the predator can raise prices.
Consumers
The expectancy theory says that a rational calculation determines whether individuals are motivated to demonstrate more effort or less effort. Questions people ask themselves as part of this rational calculation include:
Do I find the outcomes desirable? Will my effort lead to high performance? Will management deliver if the goal is met?
What are the limitations of the leadership trait approach?
It neglects to consider the environment under which the leadership worked.
Luke and John disagree about the new smoking policy. Luke says the company should not employ smokers. They cost about $6,000 per year more than non-smokers, on average. John disagrees. What principles might cause them to disagree?
Luke is looking at the long-term interest of the firm. John may be relying on individual rights—to choose to smoke or not.
Human needs are hierarchically ranked. Some needs are basic to all human beings, and in their absence, nothing else matters. As our basic needs are satisfied, we look to satisfy higher-order needs. Once a lower-level need is satisfied, it is no longer a motivator. This is the description of:
Maslow's hierarchy of needs
A new investment product, housing revenue bonds, requires expertise in back-office processes, accounting policy, legal issues, and, of course, a portfolio manager's judgment on value. Difficulties at any step will influence the value of the investment. The opinions of the experts are interdependent, so the portfolio manager recommends a team approach for
More efficiency
The tendency of an employee to analyze herself and the world realistically is associated with which of the Big Five personality traits?
Neuroticism.
Semantics is extremely important in effective communication. Misunderstandings can cause confusion. Which of the following might cause semantic confusion?
She's a total filly!
________ is committed to persuading followers to share a leader's vision and desired goals.
Transformational
One guide to choosing a leadership approach uses a series of questions. For example, "Is decision quality highly important?" or "Is the problem structured and easily analyzed?". With the answers, the leader can choose how authoritarian or how democratic to be. This guide is
Vroom and Yetton's normative decision model.
The main point(s) to learn from ERG include:
We need to recognize the multiple needs that may be driving an individual at a given time.
The key to an ethical company is strong communication of the expectations. One recommended method, also required by the US Sentencing Guidelines, is
to conduct regular training classes.
ReMax, a real estate broker, wants employees to close sales. Without sales, there is no business. Agents are paid a commission, usually 1.5-3% of the sales total, to pull the parties together and smooth out any issues. In this way, both ReMax and the agents gain. This is an example of
transactional leadership.
Unilever sells consumer products around the world. They produce Dove soap, for example. The company thinks globally and acts locally. The nature of products requires a close relationship with local customers; yet economies of scale justify a number of head-office departments, and the need to benefit globally from everybody's creativity and experience makes sharing information highly desirable. Unilever combines product expertise and local knowledge in a deliberate
transnational strategy.
Jeff Bezos, CEO and founder of Amazon, has his own rule for the right-sized teams: the team should only be as big as can be fed with ________ pizzas.
two
Team cohesiveness is the extent that members are attracted to the team and are motivated to remain in the team. Members of highly cohesive teams
value their membership
Lumen Learning works with professors all over the country to edit its new biology textbook. The professors interact through Google Docs, commenting on the text and its revisions. The professors don't need to meet in person. They are a
virtual team
Reinforcement theory was developed in training animals. B.F. Skinner called it operant conditioning and worked with pigeons, rats, and dogs. Rewards are generally effective, but some people, especially professionals,
will take offense if they are treated like animals.
