MGT 551 Exam 3

resistance to change paradox

- Organizations invite change when change offers competitive advantage - Organizations resist change when change threatens the organization's structure and control systems - Organizations must balance stability (permanence) with the need to react to external shifts (change) - Resistance can warn of the need to reexamine the need for change

Evaluation of training (kirkpatrick)

1. learners reaction to training 2. what was learned during training 3. has behavior changed as a result of training 4. what was the impact of training on business results

prior hypothesis bias

Allowing strong prior beliefs about a relationship between variables to influence decisions based on these beliefs even when evidence shows they are wrong

organizational mechanisms

Are examples of organization culture that employees see in more experienced employees' behaviors Corporate pamphlets and formal training sessions

prospect theory

Argues that when people make decisions under a condition of risk they are more motivated to avoid losses than they are to seek gains

escalating commitment

Committing considerable resources to a project and then committing more even if evidence shows the project is failing

reactor

Decisions are a last option process that occurs due to some other event

entrepreneurs

Individuals who notice opportunities and take the responsibility for mobilizing the resources necessary to produce new and improved goods and services

organizational change

Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness

agency theory

Occurs when one person or entity (agent) is able to make decisions on behalf of, or that impact, another person or entity (principal). The dilemma exists because sometimes the agent is motivated to act in his own best interests rather than those of the principal

representativeness

The decision maker incorrectly generalizes a decision from a small sample or a single episode

transition management

The process of systematically planning, organizing, and implementing change

organizational socialization

The process through which employees learn about the firm's culture and pass their knowledge and understanding on to others

illusion of control

The tendency to overestimate one's own ability to control activities and events

change agent/change leader

a person responsible for managing a change effort

group decision making (collaborative decision making)

a situation where individuals collectively make a choice from the alternatives before them

problem solving

a special form of non programmed decision making in which the issue is unique, it requires developing and evaluating alternatives

decision rule

a statement that tells a decision maker which alternative to choose based on the characteristics of the decision situation

learning organization

an organization that facilitates the learning of all its members and continually transforms itself continual learning and change are part of the culture

administrative model

assumes decision makers operate with "bounded rationality" rather than with "perfect rationality"

condition of risk

certainty of an outcome is unknown but there is only enough information to estimate probabilities of various outcomes

a degree of resistance is normal because

change is disruptive change is stressful change is unknown change is unproven a degree of skepticism can be positive if there are weaknesses in the proposed change unchecked skepticism will impede the goals and objectives of the proposed change

defender

decisions are made only in defense

reasoned judgment

decisions that take time and effort to make and result from careful information gathering, generation of alternatives, and evaluation of alternatives

intrapreneurship

entrepreneurial activity that takes place within the context of a large corporation

intuition

feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions

benefits of participation

incorporates more diverse knowledge, experience, perspectives, and skill sets produces more and better alternatives helps in judgmental problem solving situations creates a greater interest in the task

intrapreneurs

individuals (managers, scientists, researchers) who work inside an existing organization and notice an opportunity for product improvements and are responsible for managing the product development process

ambiguous information

information whose meaning is not clear allowing it to be interpreted in multiple or conflicting ways

satisficing

is examining alternatives only until a solution that meets minimal requirements is found

sub-optimizing

knowingly accepting less than the best possible outcome to avoid unintended negative effects on other aspects of the organization

hybrid approach

managers use a combo of the rational and administrative approaches to make decisions

condition of ambiguity

neither the problem nor the alternatives are clear

analyzer

observes prospectors and moves when they feel the decision has been shown to be correct and the time is right

non programmed decision

one that recurs infrequently and for which there is no previously established decision rule

programmed decision

one that recurs often enough for a decision rule to be developed

change could result in

opportunity for personal change and development new challenges reduction in complacency and boredom opportunity to be involved in change and outcome

resistance may be caused by

organizational structure or overdetermination rewards, resources, power, culture narrow focus of change individual interim or low tolerance for change unknown or misunderstanding self interest, loss of expertise, power, resources individual perspective of the situation, social issues, group pressure

condition of certainty

outcomes of each alternative are known

groupthink

pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision

prospector

pioneer- risk taker-first mover- leader

lewin's process model

planned organization change requires a systematic process of movement from one condition to another -unfreezing -change -refreezing

training

purpose: improve employees current job skills or impart new skills methods: lecture, discussion, lecture-discussion combo, experimental methods, case studies, film/videos locations: classroom, on and off company property, hotel, resort, conference centers, on the job major difficulty: transferring learning to the workplace

Incremental innovation

results in gradual improvements and refinements to existing products and services over time as existing technologies and other new factors are perfected

radical (quantum) innovation

results in the development of radically different kinds of goods and services; possibly because of fundamental shifts in technology brought about by pioneering discoveries

entrepreneurship

someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decide what, how, and how much of a good or service will be produced

reason for decision

survival-necessity-standard requirement- comfort or cosmetic perceived duty

creativity

the ability to generate new ideas or to conceive of new perspectives on existing ideas

organizational climate

the current situation in an organization and the effect that situation has on the employees and organizational performance

individual participation

the degree to which employees should be involved in the decision making process

innovation

the process of creating and doing new things that are introduced into the marketplace as products, processes, or services

cost-benefits analysis

the process of identifying and adding up all costs associated with a project or decision and then comparing those projected costs to the total projected benefits (or opportunities) of the project or decision

organization development (OD)

the process of planned change and improvement of the organization through application of knowledge of the behavioral sciences

organizational change movement

the process that ensures an organization responds (changes) to the environment in which it operates

organizational culture

the set of values, beliefs, and accepted behaviors communicated and supported within the organization

condition of uncertainty

there is insufficient information to estimate the probability of possible outcomes

social identity theory

this theory states that a persons sense of who they are is based on their group membership, their decisions are based on the expectations, norms, values, and standard operating procedures of the group

delphi nominal group technique

written approach to creative problem solving group leader writes a statement of the problem to which managers respond questionnaire is sent to managers to generate solutions team of managers summarizes the responses and results are sent back to the participants process is repeated until a consensus is reached