MGT 301 Exam 1

Individual differences in the self and outcomes for OB (i.e., core self-evaluations, self-monitoring, self-construal, future self-continuity)

- Core Self-Evaluation: bottom line conclusions individuals have about their capabilities, competence, and worth as a person. - Outcomes • Positive CSE: effective, capable, in control • Negative CSE: dislike themselves - Self-Monitoring: measures an individual's ability to adjust his or her behavior to external, situational factors. - Outcomes • High self-monitors: engage in more impression management; highly adaptable; receive higher performance evaluations and more promotions; but have lower commitment to their organization - Self-construal: a person's conceptualization of what their self is like • Self is defined as independent of others • Self is defined as interdependent with others • Measuring self-construal - Twenty Statement Test (TST): "I am..." • Coded into independent vs. interdependent - Self-construal scale • Cultural differences in self-construals - West = independent self-construal - East = interdependent self-construal - Future self-continuity: the extent to which a person feels their current self shares the core attributes of their future self. - Outcomes: • High future self-continuity: more long-term investments (savings), less cheating

Why few absolutes apply to OB (i.e., independent variables, dependent variables, contingency variables)

- There are few, if any, simple and universal principles that explain OB contingency variables: situational factors are variables that moderate the relationship between the independent variables and the dependent variables OB concepts must reflect situational, or contingency, conditions we can say that x leads to y, but only under z (the contingency variables) example: a job attractive to one person may not be to another person, its appeal is contingent on the person who holds it (person is the contingency variable)

Structure of mood and cultural differences in ideal affect

-Ideal affective states differ across cultures - U.S. = High intensity (e.g., excited) - East Asia = Low intensity (e.g., serene) -E.g., Steve Ballmer 'going crazy' on stage

attitudes and stress

-evaluations employees make, can be positive or negative -stress: response to environmental pressures -employee satisfaction are more willing to participate in the above and beyond citizenship behavior

Hofstede's value dimensions (e.g., power distance, masculinity vs. femininity, uncertainty avoidance, etc.)

-power distance -individualism v collectivism -masculinity v femininity -uncertainty avoidance -long-term orientation v short-term orientation

Types of decisions (4)

1) Choice decisions • The decider is faced with two or more discrete, specified alternatives and must choose a subset from that pool 2) Accept/ reject decisions • The decider is presented with one option only and must either take it or leave it 3) Evaluation decisions • The decider must commit to a course of action based on the assessment of the worth of some entity (i.e., an evaluation) 4) Construction decisions • The decider must use available resources to try to assemble the ideal alternative, subject to particular constraints

Application of biases to OB problems (e.g., interviews, performance evaluations, etc.)

1) Employment Interview •Evidence indicates that interviewers make perceptual judgments that are often inaccurate. "Interviewers generally draw early impressions that become very quickly entrenched. "Studies indicate that most interviewers' decisions change very little after the first four or five minutes of the interview. 2) Performance Expectations •Evidence demonstrates that people will attempt to validate their perceptions of reality, even when those perceptions are faulty. • Self-fulfilling prophecy 3) Performance Evaluation •An employee's performance appraisal is very much dependent upon the perceptual process. •Many jobs are evaluated in subjective terms. • Subjective measures are problematic because of selective perception, contrast effects, halo effects, and so on.

Emotional Intelligence

1) Perceive emotions in self and others 2) Understand the meaning of emotions 3) Regulate emotions the ability to detect and to manage emotional cues and information

Organization

A consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.

Accurate judgments vs. stereotypes

Accurate generalization - Descriptive - Represents a central tendency - Based on evidence or statistical estimates - Rational way to categorize Stereotype - Passes judgment - No room for exceptions - One category dominates all other features of the person - Unchanging, even with contrary evidence - Drawn from anecdotes/ experiences/ assumptions (i.e., not evidence)

Cardinal Issues Perspective (CIP) and how managers can act as effective decision managers

Almost every practical decision problem has 10 fundamental or cardinal decision issues • Decision processes - Ways that deciders go about resolving the cardinal decision issues as they arise in the decision problems that confront them • Issue 1: Need - Why are we (not) deciding anything at all? • Issue 2: Mode - Who (or what) will make this decision, and how will they approach the task? • Issue 3: Investment - What kinds and amounts of resources will be invested in the process of making this decision? • Issue 4: Options - What are the different actions we could potentially take to deal with this problem we have? • Issue 5: Possibilities - What are the various things that could potentially happen if we took that action—things beneficiaries care about? • Issue 6: Judgment - Which of the things that beneficiaries care about actually would happen if we took that action? • Issue 7: Value - How much would they really care—positively or negatively--if that in fact happened? • Issue 8: Tradeoffs - All of our prospective actions have both strengths and weaknesses. So how should we make the tradeoffs that are required to settle on the action we will actually pursue? • Issue 9: Acceptability - How can we get them to agree to this decision and this decision procedure? • Issue 10: Implementation - That's what we decided to do. Now, how can we get it done, or can we get it done, after all?

The 3 components of attitudes

Attitudes are evaluative statements—either favorable or unfavorable—about objects, people, or events. • They reflect how we feel about something. • 3 components: -Cognitive - evaluation -Affective - feeling -Behavioral - action

Characteristics that can be the basis for discrimination

Biological characteristics are personal characteristics that are objective and easily obtained from personnel records. include: -Age: The U.S. workforce is aging. Studies show that turnover and absenteeism rates are lower among older workers, and age is not associated with lower productivity. -Sex: There are no consistent male-female differences in problem-solving ability, analytical skills, competitive drive, motivation, sociability, or learning drive. So no performance differences • But women earn less than men for the same positions and have fewer professional opportunities -Race and Ethnicity: Employees tend to favor colleagues of their own race in performance evaluations, promotion decisions, and pay raises. • African Americans and Hispanics perceive higher levels of discrimination in the workplace. African Americans generally fare worse than Whites in employment decisions. -Disabilities: The U.S. Equal Employment Opportunity Commission classifies a person as disabled who has any physical or mental impairment that substantially limits one or more major life activities. • Workers with disabilities receive higher performance evaluations, but may have lower performance expectations. -Hidden Disabilities: Sensory disabilities, chronic illness or pain, cognitive or learning impairments, sleep disorders, and psychological challenges. •U.S. organizations must accommodate employees with a very broad range of impairments.

Attribution theory—and how we determine whether behavior is internally or externally caused

Clarification of the differences between internal and external causation •Internally caused - those that are believed to be under the personal control of the individual. •Externally caused - resulting from outside causes.

What is culture and how to deal with cultural differences

Culture: refers to the learned norms based on values, attitudes, and beliefs of a group of people • Culture is an integral part of a nation's operating environment • every business function is subject to potential cultural differences 2 ways to deal with cultural differences Cultural Responsiveness • Companies need to decide when to make cultural adjustments • Fostering cultural diversity can allow a company to gain a global competitive advantage by bringing together people of diverse backgrounds and experience Cultural Awareness • Problem areas that can hinder managers' cultural awareness... • Subconscious reactions to circumstances • subcultures exist within nations • similarities link groups from different countries • Tip: Managers that educate themselves about other cultures have a greater chance of succeeding abroad

Direct vs. indirect confrontation

Direct Confrontation: • Characteristic of Western managers • Typically in individualistic cultures • A kind of direct communication typical in low context cultures • In interpersonal settings, promoting self-interest • In work settings, more focused on the task than on relationships Direct confrontation looks like: Direct confrontation looks like: • Problem-solving is action-oriented and solution-minded • Parties state the problem clearly and explain why it is a problem • Accused party openly and directly accepts or rejects responsibility for the problem • Negotiation may ensue • It's acceptable to use threats or power • Involving a third party (e.g., superior) is a last resort, because it is believed that effective managers should be able to resolve conflict themselves Indirect Confrontation • Characteristic of East Asian managers • Typically in collectivistic and hierarchical cultures • A kind of direct communication typical in high context cultures • Concerned with saving face (a person's social reputation) • Direct confrontation causes both parties to lose face (accuser is using incorrect confrontation style and accused may be guilty of not following through on social obligations) • Indirect confrontation withholds blame and responsibility Indirect confrontation looks like: • Existence of a problem is signaled or cued, never stated directly • E.g., telling a story that has a lesson embedded, using a metaphor or imagery, asking more questions, providing noncommittal responses, delaying, postponing, stalling • Blame is withheld to save face for both parties • Involving a third party (e.g., superior) is not uncommon, even before there has been any confrontation between the parties

Emotional labor and emotion regulation strategies (e.g., surface acting, deep acting, cognitive reappraisal, etc.)

Emotional labor: • Felt emotions: the individual's actual emotions. • Displayed emotions: required or appropriate emotions. - Surface acting: hiding one's inner feelings and foregoing emotional expressions in response to display rules. - Deep acting: trying to modify one's true inner feelings based on display rules. Emotion regulation strategies: • Surface acting • Deep acting • Emotional suppression: suppressing initial emotional responses • Cognitive reappraisal: reframing our outlook on an emotional situation • Social sharing: venting • The best option though is to recruit positive-minded individuals and train leaders to manage their moods, attitudes, and performance.

Sources of moods (e.g., time of day, personality, stress, etc.)

External Factors • Time of Day - Happier in the midpoint of the daily awake period. • Day of the Week - Happier toward the end of the week. • Weather - Illusory correlation - no effect. Who you are • Personality - Moods and emotions have a trait component. - Affect intensity: how strongly people experience their emotions. • Age - Older people experience fewer negative emotions. • Sex - Women tend to be more emotionally expressive, feel emotions more intensely, have longer-lasting moods, and express emotions more frequently than men What you do • Stress - Even low levels of constant stress can worsen moods. • Social Activities - Physical, informal, and dining activities increase positive moods. • Sleep - Poor sleep quality increases negative affect. • Exercise - Does somewhat improve mood, especially for depressed people.

What are the ten roles of managers according to Mintzberg?

Fall into three categories: interpersonal, informational, or decisional interpersonal: 1-figurehead: duties of a legal or social nature 2-leader: responsible for the motivation and direction of employees 3-liaison: network of outside contacts who provide information and favors informational: 4-Monitor: nerve center for internal and external info 5-Disseminator: transmits information 6-spokesperson: transmits info to outsiders on the orgs plans, policies, actions, and results Decisional: 7-entrepreneur: searches org for opportunities and initiates projects 8-disturbance handler: responsible for corrective action 9-resource allocator: makes/approves significant decisions 10-negotiator: represents the org at major negotiations

Common biases and errors in perception (e.g., fundamental attribution error, halo effect, stereotyping, self-fulfilling prophecy, etc.)

Fundamental attribution error •We have a tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors. Self-serving bias •Individuals attribute their own successes to internal factors. Selective perception •Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived. • Since we can't observe everything going on around us, we engage in selective perception. Halo effect • The halo effect occurs when we draw a general impression on the basis of a single characteristic. Contrast effects • We do not evaluate a person in isolation. • Our reaction to one person is influenced by other persons we have recently encountered. Stereotyping •Judging someone on the basis of our perception of the group to which he or she belongs. • We have to monitor ourselves to make sure we're not unfairly applying a stereotype in our evaluations and decisions. •Are all stereotypes negative? -Choking: failure to perform Self-fulfilling prophecy, or the Pygmalion effect •characterizes the fact that people's expectations determine their behavior. "Expectations become reality.

Implications of individualism vs. collectivism for OB

Individualism • Independent self-concept • Personal needs/ goals are priority • Many casual relationships • Value achievement, competition, freedom, autonomy, individual rights, uniqueness • Focus on individual attributes to explain behavior (internal attributions) Collectivism • Interdependent self-concept • Ingroup needs/ goals are priority • Few close relationships • Value obedience, duty to the group, reciprocity, ingroup harmony, fitting in • Focus on social and contextual factors to explain behavior (external attributions)

Myers-Briggs Type Indicator (MBTI)—trait dimensions, combinations of traits, weaknesses/ drawbacks, how managers can use it effectively

Individuals are classified as: • Extroverted or Introverted (E or I) • Sensing or Intuitive (S or N) • Thinking or Feeling (T or F) •Perceiving or Judging (P or J) -INTJs are visionaries. -ESTJs are organizers. -ENFJs are teachers. -ENTPs are conceptualizers. Weaknesses •Main criticism: Creates types - no room for in-between •Other drawbacks -Not reliable -Difficulty of interpretation -Unrelated to job performance Uses •Managers can use the MBTI to increase self-awareness

Determinants of personality (i.e., heredity, etc.)

Is personality the result of heredity or environment? •Heredity refers to those factors that were determined at conception. -The heredity approach argues that the ultimate explanation of an individual's personality is the molecular structure of the genes, located in the chromosomes. Environmental • Early research tried to identify and label enduring personality characteristics. -Personality traits: Shy, aggressive, submissive, lazy, ambitious, loyal, and timid

Major job attitudes (e.g., job satisfaction, job involvement, organizational commitment, etc.)

Job Satisfaction •A positive feeling about the job resulting from an evaluation of its characteristics. Job Involvement •Degree of psychological identification with the job where perceived performance is important to self-worth. Organizational Commitment •Identifying with a particular organization and its goals and wishing to maintain membership in the organization. • Employees who are committed will be less likely to engage in work withdrawal even if they are dissatisfied, because they have a sense of organizational loyalty. Perceived Organizational Support (POS) •Degree to which employees believe the organization values their contribution and cares about their well-being. •Higher when rewards are fair, employees are involved in decision making, and supervisors are seen as supportive. • POS is important in countries where power distance is lower.

Effective versus Successful Managerial Activities (Luthan's four activities)

Luthans found that managers engage in these activities: 1. Traditional management: decision making, planning, and controlling 2. Communication: exchanging routine info and processing paperwork 3. Human resource management: motivating, disciplining, managing conflict, staffing, and training 4. Networking: socializing, politicking, and interacting with outsiders

The manager's roles and skills

Manager: Someone who gets things done through other people in organizations -Planning, organizing, leading, and controlling. Management Skills -Technical skills: the ability to apply specialized knowledge or expertise. Can develop technical skills on the job -Human skills: the ability to work with, understand, and motivate other people, both individually, and in groups -Conceptual skills: the mental ability to analyze and diagnose complex situations

Spontaneous vs. deliberate self-presentation

People seek to present a desirable self or image to others - Spontaneous self-presentation • Occurs unconsciously and without effort • Different contexts evoke different selves • "Mirroring" during interviews - Matches rapport - Deliberate self-presentation • Impression management • Conscious and effortful process to control the impression others form

Factors affecting perception (i.e., in the situation, perceiver, target)

Perception: process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. •It is important to the study of OB because people's behaviors are based on their perception of what reality is, not on reality itself. -Factors in the situation: time, work setting, social setting -Factors in the perceiver: attitudes, motives, interests, experience, expectations -Factors in the target: novelty, motion, sounds, size, background, proximity, similarity

Personality-job fit theory and person-organization fit

Person-Job Fit Theory • Holland presents six personality types and proposes that satisfaction and the propensity to leave a job depends on the degree to which individuals successfully match their personalities to an occupational environment. Person-Organization Fit Theory • People high on extraversion fit well with aggressive and team-oriented cultures. • People high on agreeableness match up better with a supportive organizational climate than one focused on aggressiveness. • People high on openness to experience fit better in organizations that emphasize innovation rather than standardization.

Main causes of job satisfaction (e.g., personality, job conditions, etc.)

Personality • People who have positive core self-evaluations, who believe in their inner worth and basic competence, are more satisfied with their jobs than those with negative core self-evaluations. Job conditions • The intrinsic nature of the work itself, social interactions, and supervision are important predictors of job satisfaction. Corporate Social Responsibility (CSR) •CSR: self-regulated actions to benefit society or the environment beyond what is required by law. •Includes environmental sustainability initiatives, nonprofit work, and charitable giving. •Increasingly affects employee job satisfaction. •CSR is particularly important for Millennials. •But, not everyone finds value in CSR (personal projects help)

Rational model of decision-making vs. bounded rationality; satisficing

Rational Model •Assumptions of the Rational Model: The decision maker... -Has complete information. -Is able to identify all the relevant options in an unbiased manner. -Chooses the option with the highest utility. •Most decisions in the real world don't follow the rational model. Bounded Rationality •Individuals operate within the confines of bounded rationality. • Most people respond to a complex problem by reducing it to a level at which it can be readily understood. • They construct simplified models that extract the essential features. •People satisfice - they seek solutions that are satisfactory and sufficient.

Outcomes of job satisfaction and dissatisfaction

Responses to satisfaction: •Job Performance -Happy workers are more likely to be productive workers. •OCB -People who are more satisfied with their jobs are more likely to engage in OCB. •Customer Satisfaction -Satisfied employees increase customer satisfaction and loyalty. •Life Satisfaction -Research shows that job satisfaction is positively correlated with life satisfaction. Responses to dissatisfaction: •Voice, Exit, Neglect, Loyalty -voice: dissatisfaction expressed through active and constructive attempts to improve conditions -exit: leaving the org -neglect: allowing conditions to worsen -loyalty: passively waiting for conditions to improve •Counterproductive Work Behavior (CWB) -CWB: actions that actively damage the organization, including stealing, behaving aggressively toward coworkers, or being late or absent. •Absenteeism: the more satisfied you are, the less likely you are to miss work. • Turnover: a pattern of lowered job satisfaction is the best predictor of intent to leave. •Managers often "Don't Get It"

Surface level vs. deep level diversity

Surface-level diversity: represents the characteristics that are easily observed such as race, gender, age, ethnicity, or disability, that do not necessarily reflect the ways people think or feel but that may activate stereotypes • Deep-level diversity: represents the aspects that are more difficult to see at first glance, such as values, personality, and work preferences that become progressively more important for determining similarity as people get to know each other

Dealing with cultural differences

Three company and management orientations -Polycentrism: business units abroad should act like local companies -Ethnocentrism: home culture is superior to local culture, overlook national differences -Geocentrism: integrate home and host practices Must consider -Host society acceptance -Degree of cultural differences -cultural distance -Ability to adjust: culture shock and reverse culture shock -Company and management orientation •Challenge is being culturally attuned to pick up on and appropriately respond to problems • Recognize it's a problem • If you're being told a story, think about its meaning and ask knowledgeable advisers (e.g., Why do you think the protagonist did this?) • Listen for noncommittal responses like "that might be difficult" • Address the problem • Tell a story that gets at the root of the problem or ask hypothetical questions • Suggest a solution and ask for feedback (listen for noncommittal responses that would suggest this isn't a good idea) • Talk to a cultural mentor outside the organization and ask for best ways to respond • If a Western company, explain why it is to everyone's advantage to not involve a supervisor quite yet

Definition of a decision and types of decisions

What is a decision? • A commitment to an action that is intended to yield satisfying states of affairs for particular parties, called the beneficiaries of that action -Commitment to action -Intention -Satisfaction for beneficiaries

How managers should talk about bias

When told biases are common, people actually become more biased example: Talking about bias at Wharton: "I don't ever want to see this happen again." 65% increase in the number of female MBA students who sought out leadership roles

How cultural differences in values (e.g., power distance, etc.) manifest in OB (e.g., work motivation, supervisor-subordinate relationships, etc.)

Work Motivation • The motivation to work differs across cultures - masculinity-femininity index • high masculinity score prefers "to live to work" than "to work to live" Japan has the highest rank of masculinity, and the US is also higher on masculinity • Hierarchy of needs theory - Individuals will fill lower-level needs before moving to higher level needs • The ranking of needs differs among cultures Relationship Preferences • Relationship preferences differ by culture • Power distance: -high power distance implies little superior-subordinate interaction, autocratic or paternalistic management style -low power distance implies consultative style • Individualism versus collectivism -high individualism - welcome challenges -high collectivism - prefer safe work environment Risk Taking Behavior • Risk taking behavior differs across cultures • Future orientation: emphasizes the future, thrift, and persistence -delaying gratification -short-term orientation: emphasizes the present/change • Uncertainty avoidance -handling uncertainty Information and Task Processing • Cultures handle information in different ways - Perception of cues • Information processing -Monochronic versus polychronic cultures -monochronic cultures do just one thing at a time. They value a certain orderliness and sense of there being an appropriate time and place for everything • Obtaining information -low context versus high context cultures

Positivity offset

at zero input, most people tend to be in a slightly positive mood

Organizational Citizenship Behavior (OCB)

discretionary behavior that is not part of an employee's formal job requirements, but which promotes the effective functioning of the organization -performance beyond expectations

Intuitive Decision Making

occurs outside conscious thought; it relies on holistic associations, or links between disparate pieces of information, is fast, and is affectively charged, meaning it usually engages the emotions.

Outcome variables relevant to OB (i.e., task performance, organizational citizenship behavior, withdrawal behavior, group cohesion, group functioning, productivity, survival)

outcome variables: key factors that are affected by some other variables individual level outcomes: attitudes and stress, task performance, citizenship behavior, withdrawal behavior group level outcomes: cohesion and functioning organizational level outcomes: overall productivity, survival

Trait activation theory

predicts that some situations, events, or interventions "activate" a trait more than others

task performance

the combination of effectiveness and efficiency at doing your core job tasks -tied to timeliness and quality in many cases, relate to the core job responsibilities

productivity

the combination of the effectiveness and efficiency of an organization effectiveness: the degree to which the org can meet the need of its clients efficiency: the degree to which a an org can achieve its ends at a low cost

organizational survival

the degree to which an organization is able to exist and grow over the long term -depends on productivity and how well it fits with its environment

group cohesion

the extent to which members of a group support and validate one another while at work cohesive groups are more effective

group functioning

the quantity and quality of a work group's output -group cohesion should lead to group functioning, could be productivity or providing excellent customer service

withdrawal behavior

the set of actions employees take to separate themselves from the organization -could be below task requirements -examples: showing up late, failing to attend meeting, absenteeism, turnover -have a negative effect on orgs, financially and otherwise

Affect vs. emotions vs. moods

• Affect: broad range of feelings • Emotions: specific • Moods: generalized -Positivity offset: at zero input, most people tend to be in a slightly positive mood -Ideal affective states differ across cultures - U.S. = High intensity (e.g., excited) - East Asia = Low intensity (e.g., serene) -E.g., Steve Ballmer 'going crazy' on stage

Why and how emotions/ moods matter for OB (e.g., for leadership, creativity, safety, etc.)

• Affective events theory (AET): employees react emotionally to things that happen to them at work and this influences job performance and satisfaction. • Can impact safety/ injury at work -people get into more workplace accidents when experiencing negative emotions • Can impact deviant workplace behaviors -people experiencing negative emotions are more likely to commit actions that violate norms and threaten the organization • Can improve decision-making - people in a negative mood are more discerning when it comes to deciding between truthful and untruthful information - positive emotions can make us more aware of opportunities and come with better decisions, particularly strategic decisions that require the integration of multiple perspectives • Can improve creativity - people in a positive mood take in more perspectives and are more creative • Can improve motivation - positive moods increase performance expectations, motivating employees to perform at their best • Can improve leadership - people in a positive mood are more receptive to a leader's message • Can improve customer service - emotional "contagion" (emotions catch on) and employees in a good mood put customers in a good mood

Benefits and costs of impression management

• Benefits of IM - Works well in interviews, especially those that are unstructured - Ingratiation has a positive effect on performance evaluations - IM techniques work better for those with high political skills • Costs of IM - Saps cognitive resources - Less experimentation - Can easily backfire (e.g., self-promotion leads to lower performance ratings)

Broken windows theory and how to diminish unethical behavior

• Broken windows theory: disorderly and decayed urban environments foster criminal activity because they signal antisocial norms • Set norms for honesty and moral behavior - Stop lying to yourself - Set signals of ethical behavior (e.g., conversations, values, etc.) - Set up systems that reward honesty

The 3-stage model of creativity

• Causes: creative potential + creative environment • Creative behavior: problem formulation --> information gathering --> idea generation --> idea evaluation • Creative outcomes: novelty + usefulness

How culture increases creativity

• Cognitive processes that link creativity and multicultural experience - Broader access to ideas - Unconventional associations • Overcoming functional fixedness: objects can be used for different purposes • Deep exposure to culture matters - Living > Travel - Novel conceptual combinations Creative conceptual expansion - From simultaneous exposure - Part of an individual difference in biculturals

Cultural differences in decision making and creativity

• Cultural Differences - Solving problems vs. accepting situations as they are - Identifying problems - Autocratic vs. group decision-making - Information gathering - Indecisiveness • Westerners: novelty • Non-Westerners: appropriateness • Two explanations - Individualism-collectivism • Creativity as an expression of individuality vs. creativity as a means to an ends - Ecological argument • Pursuit of novelty vs. survival • Valuation ≠ Ability

How managers act as effective decision managers

• Encompasses all the things that every manager does, consciously or otherwise, that damage or improve the quality of the organization's welfare • Decision management portfolio - Influencing specific decisions • Deciding personally • Participating in decision groups • Affecting others' decision deliberations - Supervising decision routines - Shaping decision practices - Providing decision resources

Criteria for an effective decision

• Managers should aim to make effective decisions • A decision that is strong with respect to aim, need, aggregated outcomes, rival options, and process costs criteria -Aim criterion -Need criterion -Aggregated outcomes criterion -Rival options criterion -Process costs criterion

Situation strength theory

• Situation strength theory: indicates that the way personality translates into behavior depends on the strength of the situation. •In some situations, norms, cues, or standards dictate appropriate behavior.

Indecisiveness

• Some people are habitually more indecisive than others - Highly indecisive people are also more likely to be perfectionists and have obsessive compulsive personalities Pre-decision -indecision -buckpassing -decision avoidance Decision -negative affect -thoroughness -time delay post-decision -regret -lack of commitment -decision reversal

How to foster creativity

• Step outside the box to think outside the box! • Independence • Openness to new experiences • Risk taking • Intrinsic motivation • Gain focus • Positive mood • Management matters - Less restrictive • In society - Outside cultural influences increase creativity • In groups - Heterogeneous groups are more creative • In the individual - Immigrants and ethnic minority group members are highly creative

How to effectively attract, select, develop, and retain diverse employees (e.g., targeting recruiting messages, mentoring, etc.)

• Target recruiting messages to specific demographic groups. -placing advertisements in publications geared towards minority groups -pairing with colleges • Ensure that hiring is bias free. •Create a positive diversity climate. • Establish mentoring programs diversity management: the process and programs by which managers make everyone more aware of and sensitive to the needs and differences of others

"Dark" personality traits (e.g., Machiavellianism, Narcissism, etc.)

• The Dark Triad : Machiavellianism, Narcissism, Psychopathy • Machiavellianism: the degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. • High Machs: -Engage in more IM -Often win in the short run, but lose in the long run • Narcissism: the tendency to be arrogant, have a grandiose sense of self-importance, require excessive admiration, and have a sense of entitlement. • Psychopathy: the tendency for a lack of concern for others and a lack of guilt or remorse when their actions cause harm. - 1) Antisocial people are indifferent and callous toward others and show a lack of remorse. - 2) Borderline people have low self-esteem and high uncertainty/ instability. - 3) Schizotypal individuals are eccentric and disorganized and tend to be suspicious of others and superstitious. - 4) Obsessive compulsive people are perfectionists and can be stubborn, yet they attend to details, carry a strong work ethic, and may be motivated by achievement. - 5) Avoidant individuals feel inadequate and hate criticism, leading them to avoid situations that might embarrass them.

Cognitive dissonance

• The attitudes that people hold determine what they do. • Festinger: Cognitive dissonance is any incompatibility an individual might perceive between two or more attitudes or between behavior and attitudes. -contradictions individuals may perceive between their attitudes and their behavior -ex-giving someone advice that you yourself do not follow • Research has generally concluded that people seek consistency among their attitudes and between their attitudes and their behavior.

The 3 criteria for ethical decision making

• Three criteria: - 1) Utilitarianism: decisions are made solely on the basis of their outcomes or consequences. - 2) Focus on rights: calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights. - Protects whistle-blowers. - 3) Impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs.

Costs of discrimination to organizations (6)

•1. Employee turnover •2. Employee absenteeism •3. Difficulties recruiting the best talent •4. Reduced productivity •5. Bad PR •6. Legal disputes •McKinsey Report: U.S.-based small and medium sized businesses face an almost 12% chance that they it will be hit with an employment claim • The median judgment for cases that go to trial is approximately $200,000 • And 1 in 4 cases in a recent study resulted in a judgment of $500,000 or more

How to measure personality

•Managers need to know how to measure personality • Personality tests are useful in hiring decisions and help managers forecast who is best for a job • The most common means of measuring personality is through self-report surveys

Big Five Model—what each trait is and what work outcomes it predicts

•Openness to experience -characterizes someone in terms of imagination, sensitivity, and curiosity. Measures fascination with novelty •Conscientiousness -measures reliability • Extraversion -captures comfort level with relationships •Agreeableness -propensity to defer to others • Emotional stability (Neuroticism) -ability to withstand stress: positive is someone who is self confident and calm, negative is someone who is nervous, depressed, and insecure

Common biases and errors in decision-making (e.g., overconfidence, anchoring, escalation of commitment, etc.)

•Overconfidence Bias: individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. •Confirmation Bias: type of selective perception. - Seek out information that reaffirms past choices, and discount information that contradicts past judgments. • Availability Bias: tendency for people to base judgments on information that is readily available. •Anchoring Bias: fixating on initial information as a starting point and failing to adequately adjust for subsequent information. • Escalation of Commitment: staying with a decision even when there is clear evidence that it's wrong. - Likely to occur when individuals view themselves as responsible for the outcome. •Randomness Error: our tendency to believe we can predict the outcome of random events. -Decision making becomes impaired when we try to create meaning out of random events. •Risk Aversion: the tendency to prefer a sure thing instead of a risky outcome. -Ambitious people with power (i.e., managers) that can be taken away appear to be especially risk averse. •Hindsight Bias: the tendency to believe falsely that one has accurately predicted the outcome of an event, after that outcome is actually known.