MGT 300: Exam 2
how to motivate agent w/ economic risk?
-fixed pay (salary) -variable pay (shares, stock option)
corporate level strategy
A plan that indicates in which industries and national markets an organization intends to compete.
Job Rotation
Calls for moving employees from one specialized job to another
Responsibility for Outcomes
Captures the degree to which employees know how well or poorly they're doing.
Skill Variety
Job requires an individual to use a variety of skills and abilities.
Top Down Approach
Managers change employee's tasks with the intent of increasing motivation and productivity.
Job Enrichment
Modifies a job such that an employee has the opportunity to experience achievement, recognition, stimulating work, responsibility, and advancement (vertical loading)
Cognitive Crafting
Perceive or think differently about existing tasks and relationships associated with you job.
decision making: contingency planning (scenario)
creating possible futures, be ahead of the game "in the event that" proactive
Adaptive culture
culture whose values and norms help an organization to build momentum and to grow old and change as needed to achieve goals and be effective
OC: bureaucratic control (3)
determine performance levels
OC: behavioral control (4)
direct supervision: most immediate and potent form of behavioral control, lower number of ppl, more hands on operant conditioning, theory x
antecedents -- undesired behavior
extinction punishment (administer penalty) (action)
psych-motivation: maslow's hierarchy of needs
higher (intrinsic) self-actualization: learning, growth esteem: recognition belongingness: relationships safety: job security physiological: pay lower (extrinsic)
PP: step 3
implementing the strategy
motivation: economic viewpoint (3 theories)
pay is the key motivating factor
Synergy
performance gains that result when individuals and departments coordinate their actions
Hypercompetition
permanent, ongoing, intense competition brought about in an industry by advancing technology or changing customer tastes
trait approach
what leaders tend to be like: -intelligence -task relevant knowledge -dominance -self-confidence -energy/activity levels -tolerance for stress -integrity/ethics/honesty EMOTIONAL MATURITY
behavioral approach
what leaders tend to do: consideration: employee-centered relationships initiating structure: job-centered tasks INDEPENDENT & COMPLIMENTARY
positive reinforcement: motivation (3)
-directs behavior -level of effort -level of persistence (extrinsic factor)
Organizational culture/clan control
-values -norms -socialization
punishment
-focus on the behavior, not the individual -downplay the emotional element -punish ASAP, explain why -never punish with an audience!!!!!
Four steps in organizational control
1) establish standards of performance, goals, or targets against which is to be evaluated 2) measure actual performance 3) compare actual performance to chosen standards of performance 4) evaluate the result and initiate corrective action if standard is not being achieved
Planning and implementing strategy (5)
1. Allocate implementation responsibility to the appropriate individuals or groups. 2. Draft detailed action plans for implementation. 3. Establish a timetable for implementation 4. Allocate appropriate resources 5. Hold specific groups or individuals responsible for the attainment of corporate, divisional, and functional goals
planning importance
1. participation 2. sense of direction and purpose 3. coordination 4. control aspects (accountability)
Feedback
Degree to which carrying out the activities required by the job provides employees with clear information about how well theyre performing.
Knowledge and Skill
Degree to which employees have the aptitude and competence to succeed on their job.
Significance
Degree to which the job has a substantial impact on the lives of other people, particularly people in the world at large.
Autonomy
Degree to which the job provides freedom, independence, and discretion to the individual performing the work.
Identity
Degree to which the job requires completing a whole, identifiable, piece of work from beginning to end with a visible outcome.
Job Characteristics Theory
Describes the central characteristics of intrinsically satisfying jobs, attempts to answer this question.
differentiation strategy
Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.
business level plan
Divisional managers' decisions pertaining to divisions' long-term goals, overall strategy, and structure.
low-cost strategy
Driving the organization's costs down below the costs of its rivals.
4x2x1
I,II,III - very favorable and task-oriented IV,V,VI,VII - relationship oriented VIII - v. unfavorable, task-oriented
Task Identity
Performing a job with a whole or completely identifiable task with a tangible result.
psych-motivation: mcclelland's need theory
Power Achievement Affiliation
Job Characteristics Model
Promotes high intrinsic motivation by designing jobs that possess the five core job characteristics.
corporate-level plan
Top management's decisions pertaining to the organization's mission, overall strategy, and structure.
Job Crafting
Where employees shape, mold, and redefine their jobs in a proactive way
Top down change
a fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do and then move quickly to implement changes throughout the organization
SWOT in corporate level strategy is
a plan of action to manage the growth and development of an organization so as to maximize its long-run ability to create value
SWOT in business level strategy is
a plan of action to take advantage of favorable opportunities and find ways to counter threats so as to compete effectively in an industy
business level strategy
a plan that indicates how a division intends to compete against its rivals in an industry
SWOT analysis
a planning tool used to analyze an organization's (S)trengths, (W)eaknesses, (O)pportunities, and (T)hreats
variable-ratio schedule
a reinforcement schedule that reinforces a response after an unpredictable number of responses customer service evaluations
variable-interval schedule
a reinforcement schedule that reinforces a response at unpredictable time intervals evaluation
fixed-ratio schedule
a reinforcement schedule that reinforces a response only after a specified number of responses commission
fixed interval schedule
a reinforcement schedule that reinforces a response only after a specified time has elapsed salary
Feedforward control
allows managers to anticipate problems before they arise (input stage-ex:admissions)
Relational Nature
alter quantity or quality of interactions you have with others at work or establish new relationships.
Michael Porter's Five Forces Model
analyzes an organization, its position in the marketplace, and how information systems could be used to make it more competitive, task environment
operant conditioning
behavior --> consequence positive > negative extinction > punishment
ppl learn when they make the connection between
behavior and consequence
Operating budgets
blueprint that states how managers intend to allocate and use the resources they control to attain organizational goals effective and efficient
Time Horizon
the intended duration of a plan
have to consider
the weight of the reinforcer
econ-motivation: agency theory
theory x, controlling principal- shareholders/ board agent- executive executive pay; organizational performance
The structure of what relies on your industry?
your organization
planning strategy
cluster of decisions, goals to pursue, courses of action to take, allocation of resources
Jay Barney's Vrio Framework
competitive advantage, sustain advantage, human capital valuable, rare, inimitable, organized
related diversification
entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses
unrelated diversification
entering a new industry or buying a company in a new industry that is not related in any way to an organization's current businesses or industries
Diversification
expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services
Vertical Integration
expanding a company's operations either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products
psych-motivation: herzberg's two factor theory
extrinsic - hygiene intrinsic - motivators
Control systems
formal target setting, monitoring, evaluation and feedback systems that provide managers with information about how well the organizations strategy and structure are working
PP: step 2 (SWOT)
formulate the strategy(2): -jay barney's vrio framework -michael porter's five forces model
Feedback control
gives managers information about customer's reactions to goods and services so that corrective action can be taken if necessary (output stage ex: graduating class)
Bottom up change
gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change
job enrichment (vertical loading)
increasing the degree of responsibility a worker has over his or her job
job enlargement (horizontal loading)
increasing the number of different tasks in a given job by changing the division of labor
SW OT
internal external
mission statement
purpose product customer differentiate from competition
partial reinforcement (4)
reinforcing a response only part of the time; results in slower acquisition of a response but much greater resistance to extinction than does continuous reinforcement, common in business p: don't have to reward every time c: takes longer for learning to happen
continuous reinforcement
reinforcing the desired response every time it occurs p: learning takes place v quickly c: once you stop reward, behavior stops
operant conditioning: antecedents
rules, norms, expectations, culture, instructions
Organization-Wide Goal Setting: Divisional managers
set goals for each function that will allow goals to be achieved
Organization-Wide Goal Setting: Functional managers
set goals for each individual worker that allows function to achieve goals
Organization-Wide Goal Setting: Corporate Level Managers
set goals for individual divisions that will allow the organization to achieve corporate goals
Organizational culture
shared set of beliefs, expectations, values, norms and work routines influences how members of an organization interact with one another and work together to achieve goals
Fiedler's Contingency Theory
situation gets introduced effective leadership 1. characteristics of the leader (personality/traits) task oriented relationship oriented LPC SCALE 2. characteristics of the situation (context) leader-member relations (good/poor) task structure (high/low) position power (high/low)
Strategic Leadership
the ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates
econ-motivation: efficiency-wage theory
"industry average" -paying employees significantly more than the standard -motivates hard work -pick from cream of the crop
Output control
- financial measures of performance -organizational goals -operating budgets
Principles of Scientific Management
-Job simplification: break down into smallest components (therbligs) -Job specialization: training individuals to perform simplified tasks -Gilbreth did time and motion studies to determine how long it takes and best way to perform a task
implementing the strategy
-allocate responsibility -draft detailed action plans -establish a timetable -allocate appropriate resources -hold parties accountable (monitor and control)
PP: step 1
-define the business -establish organizational goals (stretch/time focused) -create the mission statement (brand declaration)
Behavior control
-direct supervision -management by objectives -rules and standard operating procedures
Growth Need Strength
Degree to which employees desire to develop themselves further.
Bottom-Up
Employees can change or redesign their own jobs and boost their motivation and engagement.
I-Deals (Idiosyncratic Deals)
Envision job design as a process in which employees and individual managers jointly negotiate the types of tasks employees complete the work.
Task Significance
Extent that the job affects the lives of other people within or outside the organization.
Job Enlargement
Puts more variety into a worker's job bu combining specialized tasks of comparable difficulty (horizontally loading). Does not have a significant and lasting positive effect on job performance.
Job Design
Refers to any set of activities that alter jobs to improve the quality of employees experience and level of productivity.
Meaningfulness of Work
Reflects the degree to which work tasks are viewed as something that "counts" in the employee's system of philosophies and beliefs.
Knowledge and Skill
Representing whether or not the person has the knowledge and skills to perform the enriched job.
Job Crafting (Bottom-Up)
Represents an employees' attempts to proactively shape their work characteristics.
Inert culture
-leads to values and norms that fail to motivate or inspire employees -leads to failure -goes down the drain because they don't change
Job Characteristics Model
1. skill variety 2. task identity 3. task significance (game changers/ intrinsic) 4. autonomy 5. feedback
Job Diagnostic Survey (JDS)
A measure of the extent to which a job provides opportunities for growth, autonomy, and meaning.
Five Forces Model
A model developed by Michael Porter that helps us understand the five competitive forces that determine the level of competition and profitability in an industry.
SWOT in functional level strategy is
A plan of action to improve the ability of an organization's departments to create value
Functional-level strategy
A plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services.
Feedback
Extent to which an employee received direct and clear info about how effectively they are performing the job.
motivation is the same as performance
FALSE!!!
Scientific Management
Focuses on increasing the efficiency of job tasks by making them more simplified and specialized and using time and motion studies to plan task movements and sequences carefully
functional level plan
Functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals
Concurrent control
Gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise (conversion stage ex: freshman-senior)
Autonomy
Job enables the individual to experience freedom, independence, and discretion in both scheduling and determining the procedures used in completing the job.
Task Boundaries
Taking on more or fewer tasks or by altering their scope or nature
Variety
The degree to which the job requires a number of different activities that involve a number of different skills and talents.
strategy formulation
The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals
Context Satisfactions
The extent to which employees are satisfied with various aspects of their job, such as pay, coworkers, and supervision.
organizational control
The systematic process through which managers regulate organizational activities to meet planned goals and standards of performance.
Clan control
control exerted on individuals and groups in an organization by shared values, norms, standards of behavior and expectations ex: omish, mafia, etc.
Bureaucratic control
control of behavior by means of a comprehensive system of rules and standard operating procedures -slow reaction time -too standardized, lose flexibility
Job Enrichment
duties and responsibilities associated with a job are expanded to provide more variety, identity, autonomy, and so forth.
Intrapreneurs
employees of existing organizations who notice opportunities for product or service improvements and manage the development process
the five forces
level of rivalry among organizations in an industry potential for entry into an industry power of large supplier power of large customer threat of substitute products
Organizational learning
managers try to increase organizational members abilities to understand and appropriately respond to changing conditions -impetus for change -can help members make decisions about changes
Direct supervision
managers who actively monitor and observe behavior while teaching what is appropriate and correct what isn't - more expensive
psych-motivation: aldefer's e-r-g theory
maslow's plus existence, relationships, and growth
Motivating Potential Score (MPS)
meaningful (skill variety+task identity+task significance/3) * autonomy(responsibility) * feedback(knowledge)
Entrepreneurship
mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services
Organization change
movement of an organization away from its present state and towards some desired future state to increase its efficiency and effectiveness
OC: clan control/ organizational culture (2)
norms and expectations, govern people's behaviors
Entrepreneurs
notice opportunity and take responsibility for mobilizing the resources necessary to produce new and improved goods and services
OC: output control (1)
organizational goals, financial measures, and operating budgets
econ-motivation: tournament theory
pay for performance -increase: overall performance, competition -decrease: ethical behavior, ocbs
FCT: characteristics of the situation (context)
position vs personal (forced) (given, STRONGER!)
antecedents -- desired behavior
positive/negative reinforcement (threat)
Benchmarking
process of comparing one's company's performance on specific dimensions with the performance of other high performance organizations
Controlling
process where managers monitor and regulate how efficiently and effectively an organization and its members are performing activities necessary to achieve goals
