mgmt ch. 10, mgmt ch 13, mgmt ch 15, mgmt ch 16-17

gjc

1. Assets Current assets (cash, short-term investment, marketable securities, accounts receivable, and so on) Fixed assets (land, buildings, machinery, equipment, and so on) 2. Liabilities Current liabilities (accounts payable, notes payable, taxes payable, and so on) Long-term liabilities (long-term debt, deferred income taxes, and so on) 3. Owner's Equity Preferred stock and common stock Additional paid-in capital Retained earnings Basic Income Statement SALES REVENUE - sales returns and allowances + other income = NET REVENUE - cost of goods sold (beginning inventory, costs of goods purchased, ending inventory) = GROSS PROFIT - total operating expenses (selling, general, and administrative expenses) = INCOME FROM OPERATIONS - interest expense = PRETAX INCOME - income taxes = NET INCOME

Describe the components of goal-setting theory and how managers can use them to motivate workers.

A goal is a target, objective, or result that someone tries to accomplish. Goal-setting theory says that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement. The basic components of goal-setting theory are goal specificity, goal difficulty, goal acceptance, and performance feedback. Goal specificity is the extent to which goals are detailed, exact, and unambiguous. Goal difficulty is the extent to which a goal is hard or challenging to accomplish. Goal acceptance is the extent to which people consciously understand and agree to goals. Performance feedback is information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal.

Understand the special challenges that the dimensions of surface-level diversity pose for managers.

Age, sex, race/ethnicity, and physical and mental disabilities are dimensions of surface-level diversity. Because those dimensions are (usually) easily observed, managers and workers tend to rely on them to form initial impressions and stereotypes. Sometimes this can lead to age, sex, racial/ethnic, or disability discrimination (that is, treating people differently) in the workplace. In general, older workers, women, people of color or different national origins, and people with disabilities are less likely to be hired or promoted than are white males. This disparity is often due to incorrect beliefs or stereotypes such as "job performance declines with age," or "women aren't willing to travel on business," or "workers with disabilities aren't as competent as able workers." To reduce discrimination, companies can determine the hiring and promotion rates for different groups, train managers to make hiring and promotion decisions on the basis of specific criteria, and make sure that everyone has equal access to training, mentors, reasonable work accommodations, and assistive technology. Finally, companies need to designate a go-to person to whom employees can talk if they believe they have suffered discrimination.

ch 15 vocab

Communication the process of transmitting information from one person or place to another Perception the process by which individuals attend to, organize, interpret, and retain information from their environments Perceptual filters the personality-, psychology-, or experience-based differences that influence people to ignore or pay attention to particular stimuli Selective perception the tendency to notice and accept objects and information consistent with our values, beliefs, and expectations, while ignoring or screening out inconsistent information Closure the tendency to fill in gaps of missing information by assuming that what we don't know is consistent with what we already know Attribution theory the theory that we all have a basic need to understand and explain the causes of other people's behavior Defensive bias the tendency for people to perceive themselves as personally and situationally similar to someone who is having difficulty or trouble Fundamental attribution error the tendency to ignore external causes of behavior and to attribute other people's actions to internal causes Self-serving bias the tendency to overestimate our value by attributing successes to ourselves (internal causes) and attributing failures to others or the environment (external causes) Encoding putting a message into a written, verbal, or symbolic form that can be recognized and understood by the receiver Decoding the process by which the receiver translates the written, verbal, or symbolic form of a message into an understood message Feedback to sender in the communication process, a return message to the sender that indicates the receiver's understanding of the message Noise anything that interferes with the transmission of the intended message Jargon vocabulary particular to a profession or group that interferes with communication in the workplace Formal communication channel the system of official channels that carry organizationally approved messages and information Downward communication communication that flows from higher to lower levels in an organization Upward communication communication that flows from lower to higher levels in an organization Horizontal communication communication that flows among managers and workers who are at the same organizational level Informal communication channel (grapevine) the transmission of messages from employee to employee outside of formal communication channels Coaching communicating with someone for the direct purpose of improving the person's on-the-job performance or behavior Counseling communicating with someone about non-job-related issues that may be affecting or interfering with the person's performance Nonverbal communication any communication that doesn't involve words Kinesics movements of the body and face Paralanguage the pitch, rate, tone, volume, and speaking pattern (that is, use of silences, pauses, or hesitations) of one's voice Communication medium the method used to deliver an oral or written message Hearing the act or process of perceiving sounds Listening making a conscious effort to hear Active listening assuming half the responsibility for successful communication by actively giving the speaker nonjudgmental feedback that shows you've accurately heard what he or she said Empathetic listening understanding the speaker's perspective and personal frame of reference and giving feedback that conveys that understanding to the speaker Destructive feedback feedback that disapproves without any intention of being helpful and almost always causes a negative or defensive reaction in the recipient Constructive feedback feedback intended to be helpful, corrective, and/or encouraging Online discussion forums the in-house equivalent of Internet newsgroups. By using web- or software-based discussion tools that are available across the company, employees can easily ask questions and share knowledge with each other Televised/videotaped speeches and meetings speeches and meetings originally made to a smaller audience that are either simultaneously broadcast to other locations in the company or videotaped for subsequent distribution and viewing Organizational silence when employees withhold information about organizational problems or issues Company hotlines phone numbers that anyone in the company can call anonymously to leave information for upper management Survey feedback information that is collected by surveys from organizational members and then compiled, disseminated, and used to develop action plans for improvement Blog a personal website that provides personal opinions or recommendations, news summaries, and reader comments

Explain how to enhance work team effectiveness.

Companies can make teams more effective by setting team goals and managing how team members are selected, trained, and compensated. Team goals provide a clear focus and purpose, reduce the incidence of social loafing, and lead to higher team performance 93 percent of the time. Extremely difficult stretch goals can be used to motivate teams as long as teams have autonomy, control over resources, structural accommodation, and bureaucratic immunity. Not everyone is suited for teamwork. When selecting team members, companies should select people who have a preference for teamwork (that is, are more collectivists than individualists) and should consider team level (average ability of a team) and team diversity (different abilities of a team). Organizations that use teams successfully provide thousands of hours of training to make sure that teams work. The most common types of team training are for interpersonal skills, decision-making and problem-solving skills, conflict resolution, technical training to help team members learn multiple jobs (that is, cross-training), and training for team leaders. Employees can be compensated for team participation and accomplishments in three ways: skill-based pay, gainsharing, and nonfinancial rewards.

Recognize and understand the different kinds of teams.

Companies use different kinds of teams to make themselves more competitive. Autonomy is the key dimension that makes teams different. Traditional work groups (which execute tasks) and employee involvement groups (which make suggestions) have the lowest levels of autonomy. Semi-autonomous work groups (which control major direct tasks) have more autonomy, while self-managing teams (which control all direct tasks) and self-designing teams (which control membership and how tasks are done) have the highest levels of autonomy. Cross-functional, virtual, and project teams are common but are not easily categorized in terms of autonomy. Cross-functional teams combine employees from different functional areas to help teams attack problems from multiple perspectives and generate more ideas and solutions. Virtual teams use telecommunications and information technologies to bring coworkers together, regardless of physical location or time zone. Virtual teams reduce travel and work time, but communication may suffer because team members don't work face-to-face. Finally, project teams are used for specific, one-time projects or tasks that must be completed within a limited time. Project teams reduce communication barriers and promote flexibility; teams and team members are reassigned to their departments or to new projects as their current projects are completed.

Describe basic compensation strategies and discuss the four kinds of employee separations.

Compensation includes both the financial and the nonfinancial rewards that organizations give employees in exchange for their work. There are three basic kinds of compensation decisions: pay level, pay variability, and pay structure. Employee separation is the loss of an employee, which can occur voluntarily or involuntarily. Companies use downsizing and early retirement incentive programs (ERIPs) to reduce the number of employees in the organization and lower costs. However, companies generally try to keep the rate of employee turnover low to reduce costs associated with finding and developing new employees. Functional turnover, on the other hand, can be good for organizations.

​By examining customer checkout details, a supermarket has learned that people who buy beer, typically, also buy a packet of salted snacks. As a result, the manager of the supermarket decides to place beer near the shelf with chips and pretzels. In this case, which of the following tools for processing information has the supermarket most likely used?

Data mining

Describe the behaviors, processes, and outcomes that today's managers are choosing to control in their organizations.

Deciding what to control is just as important as deciding whether to control or how to control. In most companies, performance is measured using financial measures alone. However, the balanced scorecard encourages managers to measure and control company performance from four perspectives: financial, customer, internal, and innovation and learning. Traditionally, financial control has been achieved through cash flow analysis, balance sheets, income statements, financial ratios, and budgets. (For a refresher on these traditional financial control tools, see the Financial Review Card.) Another way to measure and control financial performance is to evaluate economic value added (EVA). Unlike traditional financial measures, EVA helps managers assess whether they are performing well enough to pay the cost of the capital needed to run the business. Instead of using customer satisfaction surveys to measure performance, companies should pay attention to customer defections, as customers who leave are more likely to speak up about what the company is doing wrong. From the internal perspective, performance is often measured in terms of quality, which is defined in three ways: excellence, value, and conformance to specifications. Sustainability has become an important part of innovation and learning in companies. The four levels of sustainability are waste prevention and reduction, recycling and reuse, waste treatment, and waste disposal.

Explain how the dimensions of deep-level diversity affect individual behavior and interactions in the workplace.

Deep-level diversity matters because it can reduce prejudice, discrimination, and conflict while increasing social integration. It consists of dispositional and personality differences that can be recognized only through extended interaction with others. Research conducted in different cultures, settings, and languages indicates that there are five basic dimensions of personality: extraversion, emotional stability, agreeableness, conscientiousness, and openness to experience. Of these, conscientiousness is perhaps the most important because conscientious workers tend to be better performers on virtually any job. Extraversion is also related to performance in jobs that require significant interaction with others.

ch 12 vocab

Diversity a variety of demographic, cultural, and personal differences among an organization's employees and customers Affirmative action purposeful steps taken by an organization to create employment opportunities for minorities and women Surface-level diversity differences such as age, sex, race/ethnicity, and physical disabilities that are observable, typically unchangeable, and easy to measure Deep-level diversity differences such as personality and attitudes that are communicated through verbal and nonverbal behaviors and are learned only through extended interaction with others Social integration the degree to which group members are psychologically attracted to working with each other to accomplish a common objective Age discrimination treating people differently (for example in hiring and firing, promotion, and compensation decisions) because of their age Sex discrimination treating people differently because of their sex Glass ceiling the invisible barrier that prevents women and minorities from advancing to the top jobs in organizations Racial and ethnic discrimination treating people differently because of their race or ethnicity Disability a mental or physical impairment that substantially limits one or more major life activities Disability discrimination treating people differently because of their disabilities Disposition the tendency to respond to situations and events in a predetermined manner Personality the relatively stable set of behaviors, attitudes, and emotions displayed over time that makes people different from each other Extraversion the degree to which someone is active, assertive, gregarious, sociable, talkative, and energized by others Emotional stability the degree to which someone is not angry, depressed, anxious, emotional, insecure, and excitable Agreeableness the degree to which someone is cooperative, polite, flexible, forgiving, good-natured, tolerant, and trusting Conscientiousness the degree to which someone is organized, hardworking, responsible, persevering, thorough, and achievement oriented Openness to experience the degree to which someone is curious, broad-minded, and open to new ideas, things, and experiences; is spontaneous; and has a high tolerance for ambiguity Organizational plurality a work environment where (1) all members are empowered to contribute in a way that maximizes the benefits to the organization, customers, and themselves, and (2) the individuality of each member is respected by not segmenting or polarizing people on the basis of their membership in a particular group Skills-based diversity training training that teaches employees the practical skills they need for managing a diverse workforce, such as flexibility and adaptability, negotiation, problem solving, and conflict resolution Awareness training training that is designed to raise employees' awareness of diversity issues and to challenge the underlying assumptions or stereotypes they may have about others Diversity audits formal assessments that measure employee and management attitudes, investigate the extent to which people are advantaged or disadvantaged with respect to hiring and promotions, and review companies' diversity-related policies and procedures Diversity pairing a mentoring program in which people of different cultural backgrounds, sexes, or races/ethnicities are paired together to get to know each other and change stereotypical beliefs and attitudes

Describe diversity and explain why it matters.

Diversity exists in organizations when there are demographic, cultural, and personal differences among the employees and the customers. A common misconception is that workplace diversity and affirmative action are the same. However, affirmative action is more narrowly focused on demographics; is required by law; and is used to punish companies that discriminate on the basis of race/ethnicity, religion, sex, or national origin. By contrast, diversity is broader in focus (going beyond demographics); voluntary; more positive in that it encourages companies to value all kinds of differences; and, at this time, substantially less controversial than affirmative action. Affirmative action and diversity thus differ in purpose, practice, and the reactions they produce. Diversity also makes good business sense in terms of reducing costs (decreasing turnover and absenteeism and avoiding lawsuits), attracting and retaining talent, and driving business growth (improving marketplace understanding and promoting higher-quality problem solving).

Explain the basics of capturing, processing, and protecting information.

Electronic data capture (using bar codes, radio frequency identification [RFID] tags, scanners, or optical character recognition), is much faster, easier, and cheaper than manual data capture. Processing information means transforming raw data into meaningful information that can be applied to business decision making. Data mining helps managers with this transformation by discovering unknown patterns and relationships in data. Supervised data mining looks for patterns specified by managers, while unsupervised data mining looks for four general kinds of data patterns: association or affinity patterns, sequence patterns, predictive patterns, and data clusters. Protecting information ensures that data are reliably and consistently retrievable in a usable format by authorized users but no one else. Authentication and authorization, firewalls, antivirus software for PCs and corporate email and network servers, data encryption, virtual private networks (VPNs), and web-based secure sockets layer (SSL) encryption are some of the best ways to protect information. Be careful when using wireless networks, which are easily compromised even when security and encryption protocols are in place.

Describe how companies can access and share information and knowledge.

Executive information systems, intranets, and corporate portals facilitate internal sharing and access to company information and transactions. Electronic data interchange and the Internet allow external groups such as suppliers and customers to easily access company information. Both decrease costs by reducing or eliminating data entry, data errors, and paperwork and by speeding up communication. Organizations use decision support systems and expert systems to capture and share specialized knowledge with nonexpert employees

Use expectancy theory to describe how workers' expectations about rewards, effort, and the link between rewards and performance influence motivation.

Expectancy theory holds that three factors affect the conscious choices people make about their motivation: valence, expectancy, and instrumentality. Expectancy theory holds that all three factors must be high for people to be highly motivated. If any one of these factors declines, overall motivation will decline, too.

Explain Fiedler's contingency theory.

Fiedler's contingency theory assumes that leaders are effective when their work groups perform well, that leaders are unable to change their leadership styles, that leadership styles must be matched to the proper situations, and that favorable situations permit leaders to influence group members. According to the Least Preferred Coworker (LPC) scale, there are two basic leadership styles. People who describe their LPC in a positive way have a relationship-oriented leadership style. By contrast, people who describe their LPC in a negative way have a task-oriented leadership style. Situational favorableness, which occurs when leaders can influence followers, is determined by leader-member relations, task structure, and position power. In general, relationship-oriented leaders with high LPC scores are better leaders under moderately favorable situations, whereas task-oriented leaders with low LPC scores are better leaders in highly favorable and highly unfavorable situations. Because Fiedler assumes that leaders are incapable of changing their leadership styles, the key is to accurately measure and match leaders to situations or to teach leaders how to change situational factors. Though matching or placing leaders in appropriate situations works well, reengineering situations to fit leadership styles doesn't because the complexity of the model makes it difficult for people to understand.

ch 11 vocab

Human resource management (HRM) the process of finding, developing, and keeping the right people to form a qualified workforce Bona fide occupational qualification (BFOQ) an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business." BFOQs are strictly monitored by the Equal Employment Opportunity Commission Disparate treatment intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs Adverse impact unintentional discrimination that occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others Four-fifths (or 80%) rule a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact. A violation of this rule occurs when the impact ratio (calculated by dividing the decision ratio for a protected group by the decision ratio for a nonprotected group) is less than 80%, or four-fifths Sexual harassment a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one's job Quid pro quo sexual harassment a form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an individual submits to sexual harassment Hostile work environment a form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment Recruiting the process of developing a pool of qualified job applicants Job analysis a purposeful, systematic process for collecting information on the important work-related aspects of a job Job description a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job Job specifications a written summary of the qualifications needed to successfully perform a particular job Internal recruiting the process of developing a pool of qualified job applicants from people who already work in the company External recruiting the process of developing a pool of qualified job applicants from outside the company Selection the process of gathering information about job applicants to decide who should be offered a job Validation the process of determining how well a selection test or procedure predicts future job performance; the better or more accurate the prediction of future job performance, the more valid a test is said to be Human resource information system (HRIS) a computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process Employment references sources such as previous employers or coworkers who can provide job-related information about job candidates Background checks procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants Specific ability tests (aptitude tests) tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well Cognitive ability tests tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude Biographical data (biodata) extensive surveys that ask applicants questions about their personal backgrounds and life experiences Work sample tests tests that require applicants to perform tasks that are actually done on the job Assessment centers a series of managerial simulations, graded by trained observers, that are used to determine applicants' capability for managerial work Interview a selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job Unstructured interviews interviews in which interviewers are free to ask the applicants anything they want Structured interviews interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background, and job-knowledge questions Training developing the skills, experience, and knowledge employees need to perform their jobs or improve their performance Needs assessment the process of identifying and prioritizing the learning needs of employees Performance appraisal the process of assessing how well employees are doing their jobs Objective performance measures measures of job performance that are easily and directly counted or quantified Subjective performance measures measures of job performance that require someone to judge or assess a worker's performance Behavior observation scales (BOSs) rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance Rater training training performance appraisal raters in how to avoid rating errors and increase rating accuracy 360-degree feedback a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves Compensation the financial and nonfinancial rewards that organizations give employees in exchange for their work Employee separation the voluntary or involuntary loss of an employee Job evaluation a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it Piecework a compensation system in which employees are paid a set rate for each item they produce Commission a compensation system in which employees earn a percentage of each sale they make Profit sharing a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation Employee stock ownership plan (ESOP) a compensation system that awards employees shares of company stock in addition to their regular compensation Stock options a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price Wrongful discharge a legal doctrine that requires employers to have a job-related reason to terminate employees Downsizing the planned elimination of jobs in a company Outplacement services employment-counseling services offered to employees who are losing their jobs because of downsizing Early retirement incentive programs (ERIPs) programs that offer financial benefits to employees to encourage them to retire early Phased retirement employees transition to retirement by working reduced hours over a period of time before completely retiring Employee turnover loss of employees who voluntarily choose to leave the company Functional turnover loss of poor-performing employees who voluntarily choose to leave a company Dysfunctional turnover loss of high-performing employees who voluntarily choose to leave a company

Explain how different employment laws affect human resource practice.

Human resource management is subject to numerous major federal employment laws and subject to review by several federal agencies. In general, these laws indicate that sex, age, religion, color, national origin, race, disability, and genetic history may not be considered in employment decisions unless these factors reasonably qualify as BFOQs. Two important criteria, disparate treatment (intentional discrimination) and adverse impact (unintentional discrimination), are used to decide whether companies have wrongly discriminated against someone. The two kinds of sexual harassment are quid pro quo sexual harassment and hostile work environment.

Explain the good and bad of using teams.

In many industries, teams are growing in importance because they help organizations respond to specific problems and challenges. Teams have been shown to increase customer satisfaction (specific customer teams), product and service quality (direct responsibility), and employee job satisfaction (cross-training, unique opportunities, and leadership responsibilities). Although teams can produce significant improvements in these areas, using teams does not guarantee these positive outcomes. Teams and teamwork have the disadvantages of initially high turnover and social loafing (especially in large groups). Teams also share many of the advantages (multiple perspectives, generation of more alternatives, and more commitment) and disadvantages (groupthink, time, poorly run meetings, domination by a few team members, and weak accountability) of group decision making. Teams should be used for a clear purpose, when the work requires that people work together, when rewards can be provided for both teamwork and team performance, and when ample resources can be provided.

ch 14 vocab

Leadership the process of influencing others to achieve group or organizational goals Trait theory a leadership theory that holds that effective leaders possess a similar set of traits or characteristics Traits relatively stable characteristics, such as abilities, psychological motives, or consistent patterns of behavior Initiating structure the degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks Consideration the extent to which a leader is friendly, approachable, and supportive and shows concern for employees Leadership style the way a leader generally behaves toward followers Contingency theory a leadership theory states that to maximize work group performance, leaders must be matched to the situation that best fits their leadership style Situational favorableness the degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members Leader-member relations the degree to which followers respect, trust, and like their leaders Task structure the degree to which the requirements of a subordinate's tasks are clearly specified Position power the degree to which leaders are able to hire, fire, reward, and punish workers Path-goal theory a leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainmen Directive leadership a leadership style in which the leader lets employees know precisely what is expected of them, gives them specific guidelines for performing tasks, schedules work, sets standards of performance, and makes sure that people follow standard rules and regulations Supportive leadership a leadership style in which the leader is friendly and approachable to employees, shows concern for employees and their welfare, treats them as equals, and creates a friendly climate Participative leadership a leadership style in which the leader consults employees for their suggestions and input before making decisions Achievement-oriented leadership a leadership style in which the leader sets challenging goals, has high expectations of employees, and displays confidence that employees will assume responsibility and put forth extraordinary effort Normative decision theory a theory that suggests how leaders can determine an appropriate amount of employee participation when making decisions Strategic leadership the ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a positive future for an organization Visionary leadership leadership that creates a positive image of the future that motivates organizational members and provides direction for future planning and goal setting Charismatic leadership the behavioral tendencies and personal characteristics of leaders that create an exceptionally strong relationship between them and their followers Ethical charismatics charismatic leaders who provide developmental opportunities for followers, are open to positive and negative feedback, recognize others' contributions, share information, and have moral standards that emphasize the larger interests of the group, organization, or society Unethical charismatics charismatic leaders who control and manipulate followers, do what is best for themselves instead of their organizations, want to hear only positive feedback, share only information that is beneficial to themselves, and have moral standards that put their interests before everyone else's Transformational leadership leadership that generates awareness and acceptance of a group's purpose and mission and gets employees to see beyond their own needs and self-interests for the good of the group Transactional leadership leadership based on an exchange process in which followers are rewarded for good performance and punished for poor performance

Discuss how the entire motivation model can be used to motivate workers

MOTIVATING WITH MANAGERS SHOULD ... The Basics Ask people what their needs are. Satisfy lower-order needs first. Expect people's needs to change. As needs change and lower-order needs are satisfied, satisfy higher-order needs by looking for ways to allow employees to experience intrinsic rewards. Equity Theory Look for and correct major inequities. Reduce employees' inputs. Make sure decision-making processes are fair. Expectancy Theory Systematically gather information to find out what employees want from their jobs. Take specific steps to link rewards to individual performance in a way that is clear and understandable to employees. Empower employees to make decisions if management really wants them to believe that their hard work and efforts will lead to good performance. Reinforcement Theory Identify, measure, analyze, intervene, and evaluate critical performance-related behaviors. Don't reinforce the wrong behaviors. Correctly administer punishment at the appropriate time. Choose the simplest and most effective schedules of reinforcement. Goal-Setting Theory Assign specific, challenging goals. Make sure workers truly accept organizational goals. Provide frequent, specific, performance-related feedback.

Explain what leadership is.

Management is getting work done through others; leadership is the process of influencing others to achieve group or organizational goals. Leaders are different from managers. The primary difference is that leaders are concerned with doing the right thing, while managers are concerned with doing things right. Organizations need both managers and leaders. But, in general, companies are overmanaged and underled.

Describe how managers can manage effective organization-wide communication.

Managers need methods for managing organization-wide communication and for making themselves accessible so that they can hear what employees throughout their organizations are feeling and thinking. Email, collaborative discussion sites, televised/videotaped speeches and conferences, and broadcast voice mail make it much easier for managers to improve message transmission and get the message out. By contrast, anonymous company hotlines, survey feedback, frequent informal meetings, town halls and surprise visits help managers avoid organizational silence and improve reception by giving them the opportunity to hear what others in the organization think and feel. Monitoring internal and external blogs is another way to find out what people are saying and thinking about your organization.

Describe the different kinds of manufacturing operations.

Manufacturing operations produce physical goods. Manufacturing operations can be classified according to the amount of processing or assembly that occurs after receiving an order from a customer. Manufacturing operations can also be classified in terms of flexibility, the degree to which the number, kind, and characteristics of products can easily and quickly be changed. Flexibility allows companies to respond quickly to competitors and customers and to reduce order lead times, but it can also lead to higher unit costs.

ch 17 vocab

Moore's law the prediction that about every two years, computer processing power would double and its cost would drop by 50 percent Raw data facts and figures Information useful data that can influence people's choices and behavior First-mover advantage the strategic advantage that companies earn by being the first to use new information technology to substantially lower costs or to make a product or service different from that of competitors Acquisition cost the cost of obtaining data that you don't have Processing cost the cost of turning raw data into usable information Storage cost the cost of physically or electronically archiving information for later retrieval and use Retrieval cost the cost of accessing already-stored and processed information Communication cost the cost of transmitting information from one place to another Bar code a visual pattern that represents numerical data by varying the thickness and pattern of vertical bars Radio frequency identification (RFID) tags tags containing minuscule microchips that transmit information via radio waves and can be used to track the number and location of the objects into which the tags have been inserted Electronic scanner an electronic device that converts printed text and pictures into digital images Optical character recognition the ability of software to convert digitized documents into ASCII (American Standard Code for Information Interchange) text that can be searched, read, and edited by word processing and other kinds of software Processing information transforming raw data into meaningful information Data mining the process of discovering unknown patterns and relationships in large amounts of data Data warehouse a database that stores huge amounts of data that have been prepared for data mining analysis by being cleaned of errors and redundancy Supervised data mining the process when the user tells the data mining software to look and test for specific patterns and relationships in a data set Unsupervised data mining the process when the user simply tells the data mining software to uncover whatever patterns and relationships it can find in a data set Association or affinity patterns when two or more database elements tend to occur together in a significant way Sequence patterns when two or more database elements occur together in a significant pattern in which one of the elements precedes the other Predictive patterns patterns that help identify database elements that are different Data clusters when three or more database elements occur together (that is, cluster) in a significant way Protecting information the process of ensuring that data are reliably and consistently retrievable in a usable format for authorized users but no one else Authentication making sure potential users are who they claim to be Authorization granting authenticated users approved access to data, software, and systems Two-factor authentication authentication based on what users know, such as a password and what they have in their possession, such as a secure ID card or key Firewall a protective hardware or software device that sits between the computers in an internal organizational network and outside networks, such as the Internet Virus a program or piece of code that, without your knowledge, attaches itself to other programs on your computer and can trigger anything from a harmless flashing message to the reformatting of your hard drive to a systemwide network shutdown Data encryption the transformation of data into complex, scrambled digital codes that can be decrypted only by authorized users who possess unique decryption keys Virtual private network (VPN) software that securely encrypts data sent by employees outside the company network, decrypts the data when they arrive within the company computer network, and does the same when data are sent back to employees outside the network Secure sockets layer (SSL) encryption Internet browser-based encryption that provides secure off-site web access to some data and programs Executive information system (EIS) a data processing system that uses internal and external data sources to provide the information needed to monitor and analyze organizational performance Intranets private company networks that allow employees to easily access, share, and publish information using Internet software Corporate portal a hybrid of executive information systems and intranets that allows managers and employees to use a web browser to gain access to customized company information and to complete specialized transactions Electronic data interchange (EDI) when two companies convert their purchase and ordering information to a standardized format to enable the direct electronic transmission of that information from one company's computer system to the other company's computer system Web services software that uses standardized protocols to describe data from one company in such a way that those data can automatically be read, understood, transcribed, and processed by different computer systems in another company Extranets networks that allow companies to exchange information and conduct transactions with outsiders by providing them direct, web-based access to authorized parts of a company's intranet or information system Knowledge the understanding that one gains from information Decision support system (DSS) an information system that helps managers understand specific kinds of problems and potential solutions Expert system an information system that contains the specialized knowledge and decision rules used by experts and experienced decision makers so that nonexperts can draw on this knowledge base to make decisions

Explain the basics of motivation.

Motivation is the set of forces that initiates, directs, and makes people persist in their efforts over time to accomplish a goal. Managers often confuse motivation and performance, but job performance is a multiplicative function of motivation times ability times situational constraints. Needs are the physical or psychological requirements that must be met to ensure survival and well-being. Different motivational theories (Maslow's Hierarchy of Needs, Alderfer's ERG Theory, and McClelland's Learned Needs Theory) specify a number of different needs. However, studies show that there are only two general kinds of needs: lower-order needs and higher-order needs. Both extrinsic and intrinsic rewards motivate people.

ch 13 vocab

Motivation the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal Needs Extrinsic reward a reward that is tangible, visible to others, and given to employees contingent on the performance of specific tasks or behaviors Intrinsic reward a natural reward associated with performing a task or activity for its own sake Equity theory a theory that states that people will be motivated when they perceive that they are being treated fairly Inputs in equity theory, the contributions employees make to the organization Outcomes in equity theory, the rewards employees receive for their contributions to the organization Referents in equity theory, others with whom people compare themselves to determine if they have been treated fairly Outcome/input (O/I) ratio in equity theory, an employee's perception of how the rewards received from an organization compare with the employee's contributions to that organization Underreward a form of inequity in which you are getting fewer outcomes relative to inputs than your referent is getting Overreward a form of inequity in which you are getting more outcomes relative to inputs than your referent Distributive justice the perceived degree to which outcomes and rewards are fairly distributed or allocated Procedural justice the perceived fairness of the process used to make reward allocation decisions Expectancy theory the theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards Valence the attractiveness or desirability of a reward or outcome Expectancy the perceived relationship between effort and performance Instrumentality the perceived relationship between performance and rewards Reinforcement theory the theory that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently Reinforcement the process of changing behavior by changing the consequences that follow behavior Reinforcement contingencies cause-and-effect relationships between the performance of specific behaviors and specific consequences Schedule of reinforcement rules that specify which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered Positive reinforcement reinforcement that strengthens behavior by following behaviors with desirable consequences Negative reinforcement reinforcement that strengthens behavior by withholding an unpleasant consequence when employees perform a specific behavior Punishment reinforcement that weakens behavior by following behaviors with undesirable consequences Extinction reinforcement in which a positive consequence is no longer allowed to follow a previously reinforced behavior, thus weakening the behavior Continuous reinforcement schedule a schedule that requires a consequence to be administered following every instance of a behavior Intermittent reinforcement schedule a schedule in which consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviors has occurred Fixed interval reinforcement schedule an intermittent schedule in which consequences follow a behavior only after a fixed time has elapsed Variable interval reinforcement schedule an intermittent schedule in which the time between a behavior and the following consequences varies around a specified average Fixed ratio reinforcement schedule an intermittent schedule in which consequences are delivered following a specific number of behaviors Variable ratio reinforcement schedule an intermittent schedule in which consequences are delivered following a different number of behaviors, sometimes more and sometimes less, that vary around a specified average number of behaviors Goal a target, objective, or result that someone tries to accomplish Goal-setting theory the theory that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement Goal specificity the extent to which goals are detailed, exact, and unambiguous Goal difficulty the extent to which a goal is hard or challenging to accomplish Goal acceptance the extent to which people consciously understand and agree to goals Performance feedback information about the quality or quantity of past performance that indicates whether progress is being made toward the accomplishment of a goal

Explain how managers can manage effective one-on-one communication.

One-on-one communication can be managed by choosing the right communication medium, being a good listener, and giving effective feedback. Managers generally prefer oral communication because it provides the opportunity to ask questions and assess nonverbal communication. Oral communication is best suited to complex, ambiguous, or emotionally laden topics. Written communication is best suited for delivering straightforward messages and information. Listening is important for managerial success, but most people are terrible listeners. To improve your listening skills, choose to be an active listener (clarify responses, paraphrase, and summarize) and an empathetic listener (show your desire to understand, reflect feelings). Feedback can be constructive or destructive. To be constructive, feedback must be immediate, focused on specific behaviors, and problem-oriented.

ch 18 vocab

Operations management managing the daily production of goods and services Productivity a measure of performance that indicates how many inputs it takes to produce or create an output Partial productivity a measure of performance that indicates how much of a particular kind of input it takes to produce an output Multifactor productivity an overall measure of performance that indicates how much labor, capital, materials, and energy it takes to produce an output Quality a product or service free of deficiencies, or the characteristics of a product or service that satisfy customer needs ISO 9000 a series of five international standards, from ISO 9000 to ISO 9004, for achieving consistency in quality management and quality assurance in companies throughout the world ISO 14000 a series of international standards for managing, monitoring, and minimizing an organization's harmful effects on the environment Total quality management (TQM) an integrated, principle-based, organization-wide strategy for improving product and service quality Customer focus an organizational goal to concentrate on meeting customers' needs at all levels of the organization Customer satisfaction an organizational goal to provide products or services that meet or exceed customers' expectations Continuous improvement an organization's ongoing commitment to constantly assess and improve the processes and procedures used to create products and services Variation a deviation in the form, condition, or appearance of a product from the quality standard for that product Teamwork collaboration between managers and nonmanagers, across business functions, and between companies, customers, and suppliers Internal service quality the quality of treatment employees receive from management and other divisions of a company Service recovery restoring customer satisfaction to strongly dissatisfied customers Make-to-order operation manufacturing operation that does not start processing or assembling products until a customer order is received Assemble-to-order operation a manufacturing operation that divides manufacturing processes into separate parts or modules that are combined to create semicustomized products Make-to-stock operation a manufacturing operation that orders parts and assembles standardized products before receiving customer orders Manufacturing flexibility the degree to which manufacturing operations can easily and quickly change the number, kind, and characteristics of products they produce Continuous-flow production a manufacturing operation that produces goods at a continuous, rather than a discrete, rate Line-flow production manufacturing processes that are preestablished, occur in a serial or linear manner, and are dedicated to making one type of product Batch production a manufacturing operation that produces goods in large batches in standard lot sizes Job shops manufacturing operations that handle custom orders or small batch jobs Inventory the amount and number of raw materials, parts, and finished products that a company has in its possession Raw material inventories the basic inputs in a manufacturing process Component parts inventories the basic parts used in manufacturing that are fabricated from raw materials Work-in-process inventories partially finished goods consisting of assembled component parts Finished goods inventories the final outputs of manufacturing operations Average aggregate inventory average overall inventory during a particular time period Stockout the point when a company runs out of finished product Inventory turnover the number of times per year that a company sells, or "turns over," its average inventory Ordering cost the costs associated with ordering inventory, including the cost of data entry, phone calls, obtaining bids, correcting mistakes, and determining when and how much inventory to order Setup cost the costs of downtime and lost efficiency that occur when a machine is changed or adjusted to produce a different kind of inventory Holding cost the cost of keeping inventory until it is used or sold, including storage, insurance, taxes, obsolescence, and opportunity costs Stockout cost the cost incurred when a company runs out of a product, including transaction costs to replace inventory and the loss of customers' goodwill Economic order quantity (EOQ) a system of formulas that minimizes ordering and holding costs and helps determine how much and how often inventory should be ordered Just-in-time (JIT) inventory system an inventory system in which component parts arrive from suppliers just as they are needed at each stage of production Kanban a ticket-based JIT system that indicates when to reorder inventory Materials requirement planning (MRP) a production and inventory system that determines the production schedule, production batch sizes, and inventory needed to complete final products Independent demand system an inventory system in which the level of one kind of inventory does not depend on another Dependent demand system an inventory system in which the level of inventory depends on the number of finished units to be produced

Describe the communication process and the various kinds of communication in organizations.

Organizational communication depends on the communication process, formal and informal communication channels, one-on-one communication, and nonverbal communication. The major components of the communication process are the sender, the receiver, noise, and feedback. Senders often mistakenly assume that they can pipe their intended messages directly into receivers' heads with perfect clarity. Formal communication channels such as downward, upward, and horizontal communication carry organizationally approved messages and information. By contrast, the informal communication channel, called the grapevine, arises out of curiosity and is carried out through gossip or cluster chains. There are two kinds of one-on-one communication. Coaching is used to improve on-the-job performance, while counseling is used to communicate about nonjob-related issues affecting job performance. Nonverbal communication, such as kinesics and paralanguage, accounts for as much as 93 percent of the transmission of a message's content.

​keeping employees informed about changing strategies and policies.

Organizational grapevines can be managed by:

​employees of an organization believe that telling management about problems will not make a difference

Organizational silence occurs when _________ .

Describe how path-goal theory works.

Path-goal theory states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment. For this to work, however, leader behavior must be a source of immediate or future satisfaction for followers and must complement and not duplicate the characteristics of followers' work environments. In contrast to Fiedler's contingency theory, path-goal theory assumes that leaders can and do change their leadership styles (directive, supportive, participative, and achievement-oriented), depending on their subordinates (experience, perceived ability, and internal or external locus of control) and the environment in which those subordinates work (task structure, formal authority system, and primary work group).

Explain the role that perception plays in communication and communication problems.

Perception is the process by which people attend to, organize, interpret, and retain information from their environments. Perception is not a straightforward process. Because of perceptual filters such as selective perception and closure, people exposed to the same information or stimuli often end up with very different perceptions and understandings. Perception-based differences can also lead to differences in the attributions (internal or external) that managers and workers make when explaining workplace behavior. In general, workers are more likely to explain behavior from a defensive bias, in which they attribute problems to external causes (that is, the situation). Managers, on the other hand, tend to commit the fundamental attribution error, attributing problems to internal causes (that is, the worker made a mistake or error). Consequently, when things go wrong, it's common for managers to blame workers and for workers to blame the situation or context in which they do their jobs. Finally, this problem is compounded by a self-serving bias that leads people to attribute successes to internal causes and failures to external causes. So, when workers receive negative feedback from managers, they may become defensive and emotional and not hear what their managers have to say. In short, perceptions and attributions represent a significant challenge to effective communication and understanding in organizations.

​Fuine Corp., a multinational corporation, has a data management system that contains raw data about the firm, its employees, business processes, subdivisions, etc. The data management system is outdated and inefficient in converting the data into useable information. This significantly costs the company. In this case, which of the following costs is Fuine Corp. incurring?

Processing costs

Discuss the kinds of productivity and their importance in managing operations.

Productivity is a measure of how many inputs it takes to produce or create an output. The greater the output from one input, or the fewer inputs it takes to create an output, the higher the productivity. Partial productivity measures how much of a single kind of input, such as labor, is needed to produce an output. Multifactor productivity is an overall measure of productivity that indicates how much labor, capital, materials, and energy are needed to produce an output. Partial Productivity = Outputs Single Kind of Input

Explain the role that quality plays in managing operations.

Quality can mean that a product or service is practically free of deficiencies or has characteristics that satisfy customer needs. Quality products usually possess three characteristics: reliability, serviceability, and durability. Quality service includes reliability, tangibles, responsiveness, assurance, and empathy. ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance, while ISO 14000 is a set of standards for minimizing an organization's harmful effects on the environment. The Baldrige Performance Excellence Program recognizes U.S. companies for their achievements in quality and business performance. Each year, up to three Baldrige Awards may be given in the categories of manufacturing, service, small business, education, nonprofit, and health care. Total quality management (TQM) is an integrated organization-wide strategy for improving product and service quality. TQM is based on three mutually reinforcing principles: customer focus and satisfaction, continuous improvement, and teamwork.

Describe the characteristics of useful information (that is, its value and costs).

Raw data are facts and figures. Raw data do not become information until they are in a form that can affect decisions and behavior. For information to be useful, it has to be reliable and valid (accurate), of sufficient quantity (complete), pertinent to the problems you're facing (relevant), and available when you need it (timely). Useful information is not cheap. The five costs of obtaining good information are the costs of acquiring, processing, storing, retrieving, and communicating information.

Explain how companies use recruiting to find qualified job applicants.

Recruiting is the process of finding qualified job applicants. The first step in recruiting is to conduct a job analysis, which is used to write a job description of basic tasks, duties, and responsibilities and to write job specifications indicating the knowledge, skills, and abilities needed to perform the job. Whereas internal recruiting involves finding qualified job applicants from inside the company, external recruiting involves finding qualified job applicants from outside the company.

Explain how reinforcement theory works and how it can be used to motivate.

Reinforcement theory says that behavior is a function of its consequences. Reinforcement has two parts: reinforcement contingencies and schedules of reinforcement. The four kinds of reinforcement contingencies are positive reinforcement and negative reinforcement, which strengthen behavior, and punishment and extinction, which weaken behavior. There are two kinds of reinforcement schedules, continuous and intermittent; intermittent schedules, in turn, can be divided into fixed and variable interval schedules and fixed and variable ratio schedules.

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Revenue Budgets—used to project or forecast future sales. Accuracy of projection depends on economy, competitors, sales force estimates, and so on Determined by estimating future sales volume and sales prices for all products and services. Expense Budgets—used within departments and divisions to determine how much will be spent on various supplies, projects, or activities. One of the first places that companies look for cuts when trying to lower expenses. Profit Budgets—used by profit centers, which have "profit and loss" responsibility. Profit budgets combine revenue and expense budgets into one budget. Typically used in large businesses with multiple plants and divisions. Cash Budgets—used to forecast how much cash a company will have on hand to meet expenses. Similar to cash-flow analyses. Used to identify cash shortfalls, which must be covered to pay bills, or cash excesses, which should be invested for a higher return. Capital Expenditure Budgets—used to forecast large, long-lasting investments in equipment, buildings, and property. Help managers identify funding that will be needed to pay for future expansion or strategic moves designed to increase competitive advantage. Variable Budgets—used to project costs across varying levels of sales and revenues. Important because it is difficult to accurately predict sales revenue and volume. Lead to more accurate budgeting with respect to labor, materials, and administrative expenses, which vary with sales volume and revenues. Build flexibility into the budgeting process.

Describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.

Selection is the process of gathering information about job applicants to decide who should be offered a job. Accurate selection procedures are valid, are legally defendable, and improve organizational performance. Application forms and résumés are the most common selection devices. Managers should check references and conduct background checks even though previous employers are often reluctant to provide such information for fear of being sued for defamation. Unfortunately, without this information, other employers are at risk of negligent hiring lawsuits. Selection tests generally do the best job of predicting applicants' future job performance. The three kinds of job interviews are unstructured, structured, and semistructured.

Explain the essentials of managing a service business.

Services are different from goods. Goods are produced, tangible, and storable. Services are performed, intangible, and perishable. Likewise, managing service operations is different from managing production operations. The service-profit chain indicates that success begins with internal service quality, meaning how well management treats employees. Internal service quality leads to employee satisfaction and service capability, which, in turn, lead to high-value service to customers, customer satisfaction, customer loyalty, and long-term profits and growth. Keeping existing customers is far more cost-effective than finding new ones. Consequently, to prevent disgruntled customers from leaving, some companies are empowering service employees to perform service recovery—restoring customer satisfaction to strongly dissatisfied customers—by giving employees the authority and responsibility to immediately solve customer problems. The hope is that empowered service recovery will prevent customer defections.

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Steps for a Basic Cash Flow Analysis 1. Forecast sales (steady, up, or down). 2. Project changes in anticipated cash inflows (as a result of changes). 3. Project anticipated cash outflows (as a result of changes). 4. Project net cash flows by combining anticipated cash inflows and outflows.

Explain how visionary leadership (that is, charismatic or transformational) helps leaders achieve strategic leadership.

Strategic leadership requires visionary leadership, which can be charismatic or transformational. Visionary leadership creates a positive image of the future that motivates organizational members and provides direction for future planning and goal setting. Charismatic leaders have strong, confident, dynamic personalities that attract followers, enable the leader to create strong bonds, and inspire followers to accomplish the leader's vision. Followers of ethical charismatic leaders work harder, are more committed and satisfied, are better performers, and are more likely to trust their leaders. Followers can be just as supportive and committed to unethical charismatics, but these leaders can pose a tremendous risk for companies. Unethical charismatics control and manipulate followers and do what is best for themselves instead of their organizations. Transformational leadership goes beyond charismatic leadership by generating awareness and acceptance of a group's purpose and mission and by getting employees to see beyond their own needs and self-interests for the good of the group. The four components of transformational leadership are charismatic leadership or idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.

​_____ usually begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set.

Supervised data mining

Use equity theory to explain how employees' perceptions of fairness affect motivation.

The basic components of equity theory are inputs, outcomes, and referents. After an internal comparison in which employees compare their outcomes to their inputs, they then make an external comparison in which they compare their O/I ratio with the O/I ratio of a referent, a person who works in a similar job or is otherwise similar. When their O/I ratio is equal to the referent's O/I ratio, employees perceive that they are being treated fairly. But, when their O/I ratio is lower than or higher than their referent's O/I ratio, they perceive that they have been treated inequitably or unfairly. There are two kinds of inequity: underreward and overreward. Underreward, which occurs when a referent's O/I ratio is higher than the employee's O/I ratio, leads to anger or frustration. Overreward, which occurs when a referent's O/I ratio is lower than the employee's O/I ratio, can lead to guilt but only when the level of overreward is extreme.

Describe the basic control process.

The control process begins by setting standards and then measuring performance and comparing performance to the standards. The better a company's information and measurement systems, the easier it is to make these comparisons. The control process continues by identifying and analyzing performance deviations and then developing and implementing programs for corrective action. Control is a continuous, dynamic, cybernetic process, not a one-time achievement or result. Control requires frequent managerial attention. The three basic control methods are feedback control (after-the-fact performance information), concurrent control (simultaneous performance information), and feedforward control (preventive performance information). Control has regulation costs and unanticipated consequences and therefore isn't always worthwhile or possible.

Explain the strategic importance of information.

The first company to use new information technology to substantially lower costs or differentiate products or services often gains a first-mover advantage, higher profits, and a larger market share. Creating a first-mover advantage can be difficult, expensive, and risky, however. According to the resource-based view of information technology, sustainable competitive advantage occurs when information technology adds value, is different across firms, and is difficult to create or acquire.

Discuss how to use performance appraisals to give meaningful performance feedback.

The keys to successful performance appraisals are accurately measuring job performance and effectively sharing performance feedback with employees. Organizations should develop good performance appraisal scales; train raters how to accurately evaluate performance; and impress upon managers the value of providing feedback in a clear, consistent, and fair manner, as well as setting goals and monitoring progress toward those goals.

Understand the general characteristics of work teams.

The most important characteristics of work teams are team norms, cohesiveness, size, conflict, and development. Norms let team members know what is expected of them and can influence team behavior in positive and negative ways. Positive team norms are associated with organizational commitment, trust, and job satisfaction. Team cohesiveness helps teams retain members, promotes cooperative behavior, increases motivation, and facilitates team performance. Attending team meetings and activities, creating opportunities to work together, and engaging in nonwork activities can increase cohesiveness. Team size has a curvilinear relationship with team performance: teams that are very small or very large do not perform as well as moderate-sized teams of six to nine members. Teams of this size are cohesive and small enough for team members to get to know each other and contribute in a meaningful way but are large enough to take advantage of team members' diverse skills, knowledge, and perspectives. Conflict and disagreement are inevitable in most teams. The key to dealing with team conflict is to maximize cognitive conflict, which focuses on issue-related differences, and minimize affective conflict, the emotional reactions that occur when disagreements become personal rather than professional. As teams develop and grow, they pass through four stages of development: forming, storming, norming, and performing. If a team is not managed well, its performance may decline after a period of time as the team regresses through the stages of de-norming, de-storming, and deforming.

Explain the normative decision theory.

The normative decision theory helps leaders decide how much employee participation should be used when making decisions. Using the right degree of employee participation improves the quality of decisions and the extent to which employees accept and are committed to decisions. The theory specifies five different decision styles or ways of making decisions: autocratic decisions (AI or AII), consultative decisions (CI or CII), and group decisions (GII). The theory improves decision quality via decision rules concerning quality, leader information, subordinate information, goal congruence, and problem structure. The theory improves employee commitment and acceptance via decision rules related to commitment probability, subordinate conflict, and commitment requirement. These decision rules help leaders improve decision quality and follower acceptance and commitment by eliminating decision styles that don't fit the decision or situation the group or organization is facing. Normative decision theory operationalizes these decision rules in the form of yes/no questions, as shown in the decision tree displayed in Exhibit 14.8.

Explain the basic principles and practices that can be used to manage diversity.

The three paradigms for managing diversity are the discrimination and fairness paradigm (equal opportunity, fair treatment, strict compliance with the law), the access and legitimacy paradigm (matching internal diversity to external diversity), and the learning and effectiveness paradigm (achieving organizational plurality by integrating deep-level diversity into the work of the organization). Unlike the other paradigms that focus on surface-level differences, the learning and effectiveness paradigm values common ground, distinguishes between individual and group differences, minimizes conflict and divisiveness, and focuses on bringing different talents and perspectives together. What principles can companies use when managing diversity? Follow and enforce federal and state laws regarding equal employment opportunity. Treat group differences as important but not special. Find the common ground. Tailor opportunities to individuals, not groups. Solicit negative as well as positive feedback. Set high but realistic goals. The two types of diversity training are awareness training and skills-based diversity training. Companies also manage diversity through diversity audits and diversity pairing and by having top executives experience what it is like to be in the minority.

Discuss the various methods that managers can use to maintain control.

There are five methods of control: bureaucratic, objective, normative, concertive, and self-control (self-management). Bureaucratic and objective controls are top down, management based, and measurement based. Normative and concertive controls represent shared forms of control because they evolve from company-wide or team-based beliefs and values. Self-control, or self-management, is a control system in which managers and workers control their own behavior. Bureaucratic control is based on organizational policies, rules, and procedures. Objective control is based on reliable measures of behavior or outputs. Normative control is based on strong corporate beliefs and careful hiring practices. Concertive control is based on the development of values, beliefs, and rules in autonomous work groups. Self-control is based on individuals setting their own goals, monitoring themselves, and rewarding or punishing themselves with respect to goal achievement. Each of these control methods may be more or less appropriate depending on the circumstances.

Explain why and how companies should manage inventory levels.

There are four kinds of inventory: raw materials, component parts, work-in-process, and finished goods. Because companies incur ordering, setup, holding, and stockout costs when handling inventory, inventory costs can be enormous. To control those costs, companies measure and track inventory in three ways: average aggregate inventory, weeks of supply, and turnover. Companies meet the basic goals of inventory management (avoiding stockouts and reducing inventory without hurting daily operations) through economic order quantity (EOQ) formulas, just-in-time (JIT) inventory systems, and materials requirement planning (MRP). The formula for EOQ is EOQ = 2 DO H Use EOQ formulas when inventory levels are independent, and use JIT and MRP when inventory levels are dependent on the number of products to be produced.

​Which of the following statements is true of bureaucratically controlled companies?

They are highly resistant to change.

Describe how to determine training needs and select the appropriate training methods.

Training is used to give employees the job-specific skills, experience, and knowledge they need to do their jobs or improve their job performance. To make sure training dollars are well spent, companies need to determine specific training needs, select appropriate training methods, and then evaluate the training.

Describe who leaders are and what effective leaders do.

Trait theory says that effective leaders possess traits or characteristics that differentiate them from nonleaders. Those traits are drive, the desire to lead, honesty/integrity, self-confidence, emotional stability, cognitive ability, and knowledge of the business. These traits alone aren't enough for successful leadership; leaders who have many or all of them must also behave in ways that encourage people to achieve group or organizational goals. Two key leader behaviors are initiating structure, which improves subordinate performance, and consideration, which improves subordinate satisfaction. There is no ideal combination of these behaviors. The best leadership style depends on the situation.

​Which of the following is a software that encrypts Internet data at both ends of the transmission process?

Virtual private network

ch 10 vocab

Work team a small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependent work processes Cross-training training team members to do all or most of the jobs performed by the other team members Social loafing behavior in which team members withhold their efforts and fail to perform their share of the work Traditional work group a group composed of two or more people who work together to achieve a shared goal Employee involvement team team that provides advice or makes suggestions to management concerning specific issues Semi-autonomous work group a group that has the authority to make decisions and solve problems related to the major tasks of producing a product or service Self-managing team a team that manages and controls all of the major tasks of producing a product or service Self-designing team a team that has the characteristics of self-managing teams but also controls team design, work tasks, and team membership Cross-functional team a team composed of employees from different functional areas of the organization Virtual team a team composed of geographically and/or organizationally dispersed coworkers who use telecommunication and information technologies to accomplish an organizational task Project team a team created to complete specific, one-time projects or tasks within a limited time Norms informally agreed-on standards that regulate team behavior Cohesiveness the extent to which team members are attracted to a team and motivated to remain in it Forming the first stage of team development, in which team members meet each other, form initial impressions, and begin to establish team norms Storming the second stage of development, characterized by conflict and disagreement, in which team members disagree over what the team should do and how it should do it Norming the third stage of team development, in which team members begin to settle into their roles, group cohesion grows, and positive team norms develop Performing the fourth and final stage of team development, in which performance improves because the team has matured into an effective, fully functioning team De-norming a reversal of the norming stage, in which team performance begins to decline as the size, scope, goal, or members of the team change De-storming a reversal of the storming phase, in which the team's comfort level decreases, team cohesion weakens, and angry emotions and conflict may flare De-forming a reversal of the forming stage, in which team members position themselves to control pieces of the team, avoid each other, and isolate themselves from team leaders Structural accommodation the ability to change organizational structures, policies, and practices in order to meet stretch goals Bureaucratic immunity the ability to make changes without first getting approval from managers or other parts of an organization Individualism-collectivism the degree to which a person believes that people should be self-sufficient and that loyalty to one's self is more important than loyalty to team or company Team level the average level of ability, experience, personality, or any other factor on a team Team diversity the variances or differences in ability, experience, personality, or any other factor on a team Interpersonal skills skills, such as listening, communicating, questioning, and providing feedback, that enable people to have effective working relationships with others Skill-based pay compensation system that pays employees for learning additional skills or knowledge Gainsharing a compensation system in which companies share the financial value of performance gains, such as increased productivity, cost savings, or quality, with their workers

​_____ represent numerical data by varying the thickness and pattern of vertical lines.

bar codes

​Baked Delights, a startup bakery, recently collected data on the quality and pricing of the products of Sweet Tooth, the largest and most popular bakery in the region, to help set up its own business standards. This is an example of _____.

benchmarking

​_____ is the process of determining how well other companies perform business functions or tasks.

benchmarking

​Gigi, the owner of Café Mantra, gives small rewards—free movie tickets—to employees who regularly come to work on time and complete tasks assigned to them. Employees who break rules or deviate from company policy, however, often get a cut in their performance-linked incentives. Gigi appears to be using _____ with her employees.

bureaucratic control

​Baxton Courier Services recently gave all its employees electronic tablets to accurately track the whereabouts of its ​shipments. In this process, the costs that Baxton Courier Services incurred is an example of _____ costs.

communication

​Jose is a school teacher. If his students score less than 50 percent on their class tests, he assigns them extra homework. Jose is using _____.

feedback control

​_____ is a mechanism for gathering information about performance deficiencies after they occur.

feedback control

​According to goal-setting theory, _____ is the extent to which a goal is hard or challenging to accomplish.

goal difficulty

​A local plumbing company installed global positioning satellite (GPS) tracking devices in all its trucks to make sure employees were going on service calls and not running personal errands. This is an example of _____.

objective control

​A(n) _____ can be used to convert digitized documents into ASCII (American Standard Code for Information Interchange) text that can be edited by word processing software.

optical character recognition software

​To determine whether a control process is worthwhile, a company must consider its _____.

regulation costs

​As long as the associate editors at Zeal Publishing accurately proofread at least 100 pages of manuscript each day, they are free to come up with their own schedules and work styles to achieve their daily goal. Zeal Publishing appears to follow a _____ system.

self-control

self-serving bias

​A person who attributes his or her success to hard work and failure to bad luck is likely to be experiencing a(n) _____.

​Which of the following is an example of an extrinsic reward?

​A promotion to a higher position

​Which of the following is true of the right team size for good performance?

​A team must be large enough to take advantage of team members' diverse skills and knowledge.

​Gillian, a salesman, has completed his day's tasks and is about to leave. Marsha, his supervisor, realizes that there is a task pending and assigns it to Gillian. Gillian refuses to complete the task by stating that he has finished his share of work. He suggests Marsha to assign the task to someone else. Marsha states that if he refuses to complete the task, he would have to look for a different job. Gillian now becomes more cooperative and agrees to work on the task. Which of the following kinds of team does this case exemplify?

​A traditional work group

​Which of the following statements is true of a work team?

​A work team consists of a small number of people with complementary skills.

paralanguage

​According to some researches, deceptive answers have a slower onset than honest ones. In a job interview, these characteristics would be examples of _____ that may help the interviewer evaluate the job applicants.

​Which of the following exemplifies Fiedler's contingency theory?

​Assigning customer care management position to a person who has exceptional skills to interact with customers

​In which of the following ways can teams have healthy conflicts?

​By focusing on issues rather than personalities

​the use of a wrong communication medium

​Clarissa walks up to her supervisor's cabin in the second floor every time she needs a clarification instead of sending an email. This scenario best depicts _____.

​Which of the following is a declining stage when teams are not effectively managed?

​De-forming

​Which of the following is a difference between employee involvement teams and semi-autonomous work groups?

​Employee involvement teams do not have the authority to make decisions, whereas semi-autonomous groups have the authority to make decisions.

Which of the following steps can managers take to use expectancy theory to motivate employees?​

​Empower employees to make decisions

​In the context of subordinate contingencies, which of the following is true of externals?

​Externals believe that what happens to them is caused by forces beyond their control.

​Patrick, a marketing manager at Uranus Inc., sets performance goals for his subordinates. He discusses the goals with one of his subordinates, Jim. Jim agrees to the specific goals and works toward achieving them. Which of the following components of goal-setting theory is illustrated in this scenario?

​Goal acceptance

​Which of the following signs indicates that a team's size needs to be changed?

​If a few members dominate the team

horizontal

​In Peill LLC, employees are known as associates and do not have titles or bosses in the traditional sense. Instead, associates make commitments to work on projects that they believe are most worthy of their time. As a result of doing away with traditional titles, the company is likely to encourage more _____ communication.

​Which of the following is a disadvantage of a large team?

​In a large team, team members find it difficult to get to know one another.

feedback

​In the communication process, _____ makes senders aware of possible miscommunications and enables them to continue communicating until the receiver understands the intended message.

interpretation

​In the perception process, _____ is the process of attaching meaning to new knowledge.

organization

​In the perception process, _____ is the process of incorporating new information into one's existing knowledge.

When messages are straightforward

​In which of the following cases would written communication be preferable to oral communication?

​Which of the following is a disadvantage of work teams?

​Initially high turnover

​Which of the following is an advantage of cross-training?

​It allows a team to function normally even in the absence of a member.

​Which of the following best describes communication costs?

​It is the cost of transmitting information from one place to another.

​Which of the following statements is true of affective conflict?

​It relates to the emotional reactions that can occur when disagreements become personal rather than professional.

​In industrial psychology, which of the following equations best represents job performance?

​Job Performance = Motivation × Ability × Situational Constraints

​Which of the following best describes path-goal theory?

​Leader behavior must be a source of immediate or future satisfaction for followers.

​Which of the following describes Fiedler's contingency theory?

​Leaders must be placed in or matched to a situation that fits their leadership style.

​Which of the following statements is true of compensation?

​Nonfinancial awards tend to be most effective when teams or team-based interventions are first introduced.

downward

​One of Canada's largest financial service providers wanted to develop a customer-focused sales and service culture. The top management developed the main messages, which were consistently communicated to all levels of employees throughout the organization. This is an example of _____ communication.

​Which of the following is a characteristic of cognitive conflict?

​Reconciliation

paralanguage

​Rose knew by the shrillness of her teacher's voice that she was really in trouble and would probably be placed in after-school detention. Rose's teacher used _____ to communicate dismay.

​Which of the following kinds of teams have the most autonomy?

​Self-designing teams

​Which of the following statements is true of the norming stage of team development?

​Team members begin to settle into their roles as team members in the norming stage of team development.

​Which of the following is most likely a result of minority domination?

​Team members do not feel accountable for the decision and actions taken by their teams.

​Which of the following is necessary for stretch goals to effectively motivate teams?

​Teams must be empowered with control of resources, such as budgets, workspaces, and computers.

​Which of the following is true of managers?

​They are concerned with control and limiting the choices of others.

​Identify a true statement about team norms.

​They bestow stronger organizational commitment.

​Which of the following statements is true of self-designing teams?

​They control work tasks and team membership.

​Which of the following statements is true of the members of self-managing teams?

​They manage and control all of the major tasks directly related to production of a product or service without first getting approval from management.

​Which of the following is true of employee involvement teams?

​They offer advice and suggestions to management concerning specific issues.

​Which of the following is an advantage of project teams?

​They reduce communication barriers.

​Which of the following statements is true of team norms?

​They regulate the everyday actions that allow teams to function effectively.

​Which of the following statements is true of the members of virtual teams?

​They use email and videoconferencing.

kinesics

​When Lilah saw her guest wrinkling her nose, she realized that she had not cleaned the litter in her cat box. Nose wrinkling is an example of _____.

closure

​When Ruby was told that her favorite store would no longer stock her favorite brand of clip-on earrings, she assumed this meant that the company was no longer producing clip-on earrings, even though that was not the case. Ruby's incorrect assumption was due to _____.

empathetic listening

​When an industrial plant was closed because of a merger, employees were forced to move to another plant and take substantial pay cuts. In this scenario, managers should demonstrate _____ when the affected employees describe the forced changes in their lifestyles.

downward

​When the CEO of a large corporation explained to his unionized employees why the company had to reduce healthcare coverage for its employees, he was engaged in _____ communication.

destructive feedback

​_____ is described as feedback that is disapproving without any intention of being helpful.

perception

​_____ is the process by which individuals attend to, organize, interpret, and retain information from their environments.

​When the control process is described as cybernetic, it means that:

​constant attention to the feedback loop is required to keep a company's activity on course.

​Onyx Inc., a manufacturer of home appliances, received consumer complaints about its product demonstration and installation services. Marshall, the company's chief executive officer, ordered investigation to determine the reasons for these complaints. It was found that employees who were hired to demonstrate and install the products lacked experience. Marshall immediately formed a team who were trained by technicians to improve their skills. Subsequently, all the consumers who had previously filed complaints were given effective demonstration. Eventually, the customer service desk started receiving appreciations and the sales improved. In this scenario, the work team improved _____.

​customer satisfaction

​Carmine Inc. is a software firm that caters to the requirements of its clients. The company follows an employee-friendly workplace culture. Team members can access all vital and confidential data that is normally accessible only by managers. This helps in motivating the teams and keeping them well informed. This scenario illustrates that teamwork increases _____.

​employee job satisfaction

​Kiara, a waitress, receives a salary increment. Even though Kiara's coworkers received five percent more increment than her, Kiara perceives the hike to be in line with her performance and experience. This scenario illustrates:

​equity theory

​Vanessa is appointed as the project manager for a project on new product development at Glacier Inc. After selecting employees from different functional areas to work as a team, she conducts a meeting with the new team members so that they can get to know each other. Following a brief interaction session, Vanessa presents the team norms to them. This scenario illustrates that Vanessa's team is in the _____ stage of team development.

​forming

​The finance team of a company conducts a meeting to discuss the worthiness of investing its funds in the local share market. Although most of the team members support the idea, one member, Mikhail, feels that the proposed investment is risky as the stock prices of many companies in the market has been erratic. However, Mikhail does not voice his opinion fearing that his dynamics with the team would be affected. The phenomenon that reflects Mikhail's psychology is called _____.

​groupthink

​When people perceive that they have been treated unfairly, they may try to restore equity by:

​increasing outcomes.

​The great person theory holds that:

​leaders are born, not made.

​Alex works as an accountant in a pharmaceutical company. His job frequently demands that he work overtime. Lately, his health has been affected because of his workload. Alex is eligible for a promotion. But, the new position would demand longer working hours with double the current salary. Alex values his health over his pay check at the end of the month. In the context of expectancy theory, the promotion has a _____ for Alex.

​negative valence

​Farah, a manager at Funmania Toys Inc., has complete control over the hiring and firing of employees in the company. She also has the authority to reward and punish employees for their work. This scenario illustrates that Farah has high levels of _____.

​position power

​According to the normative decision theory, a group decision style should be used when:

​subordinates are likely to disagree or end up in conflict over a decision.

​Leadership style is:

​the way a leader behaves toward followers.

​Unlike cognitive conflict, affective conflict:

​undermines team performance by preventing teams from engaging in the kinds of activities that are critical to team effectiveness.

​In the context of equity theory, _____ occurs when a referent's outcome/input (O/I) ratio is better than one's own O/I ratio.

​underreward

​Social loafing occurs when:

​workers withhold their efforts and fail to perform their share of the work.