Principles of Management Exam 2

* this model assumes that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum decisions * assumptions = imperfect rationality, incomplete access to info, the first satisfactory choice out of alternatives is chosen (satisficing), descriptive model (describes actions after making choice) * 2 models = * satisficing = falls under concept of bounded rationality, the ability of decision makers to be rational is limited by enormous constraints, such as time and money; these constraints force managers to make decisions according to the satisficing model; that is, managers seek alternatives until they find one that is satisfactory, not optimal * Intuition = making choices without the use of conscious thought or logical interference; sources = expertise and automated experience (involuntary emotional response)

Chp. 7: Non-rational Decision Making Model

Chp. 8: Organizational Structures: matrix

Combines functional and divisional chains of command in a grid so that there are two command structures: vertical and horizontal (ex - project structure (divisional), reporting to project manager & functional structure, reporting to VP's

Chp. 11: Big 5 Personality Dimensions

"How ____ ______ ____ someone is." 1. Extroversion: Outgoing Talkative Sociable Assertive 2. Agreeableness: Trusting Good-natured Cooperative Soft-hearted 3. Emotional Stability: Relaxed Secure Unworried 4. Conscientiousness: Dependable Responsible Achievement-oriented Persistent 5. Openness to Experience: Intellectual Imaginative Curious Broad-minded

Chp. 9: HRM Components

* 3 concepts impt. to HRM = 1. human capital, the economic or productive potential of employee knowledge 2. knowledge workers, people whose occupations are principally concerned with generating or interpreting information, as opposed to manual labor 3. social capital - the economic or productive potential of strong, trusting, and cooperative relationships

Chp. 11: Stress (sources, consequences, how to reduce stress in orgs)

* = the tension people feel when they are facing or enduring extraordinary demands, constraints, or opportunities and are uncertain about their ability to effectively handle them - is a feeling of tension and pressure, the source is called a stressor - 6 sources of stress on the job: 1. Demands created by individual differences (ex - someone has type A personality) 2. Individual Task Demands 3. Individual Role Demands 4. Group Demands created by coworkers and managers 5. Organizational Demands created by the environment and the culture of the org. 6. Non-work demands Consequences: * positive stress can be constructive * Negative stress can result in poor-quality work & is revealed thru physiological, psychological, and behavioral signs * one sign = burnout = a state of emotional, mental, and even physical exhaustion, can lead to alcohol and other drug abuse How to reduce: * buffers = administrative changes, that managers can make to reduce the stressors that lead to employee burnout, such as adding extra staff or giving employees more power to make decisions - some general organizational strategies for reducing unhealthy stressors are to roll out employee assistance programs, recommend a holistic wellness approach, create a supportive environment, make jobs interesting, and make career counseling available

Chp. 8: Centralization vs. Decentralization

* C = important decisions are made by higher-level managers * D = important decisions are made by middle-level and supervisory-level managers

Chp. 9: Equal Employment Opportunity

* Equal Employment Opportunity Commission job is to enforce anti- discrimination and other employment related laws * three impt. concepts covered by EEO = a. discrimination; b. affirmative action; c. sexual harassment

Chp 9: EEO - Laws to know

* Equal Pay Act = Requires men and women be paid equally for performing equal work * Civil Rights Act, Title VII =Prohibits discrimination on basis of race, color, religion, national origin, or sex * Age Discrimination in Employment Act (ADEA): Prohibits discrimination in employees over 40 years old; restricts mandatory retirement * Americans with Disabilities Act (ADA) =Prohibits discrimination against essentially qualified employees with physical or mental disabilities or chronic illness; requires "reasonable accommodation" be provided so they can perform duties * Civil Rights Act = Amends and clarifies Title VII, ADA, and other laws; permits suits against employers for punitive damages in cases of intentional discrimination

Chp. 9: Methods Recruiting (internal and external)

* IR - Hiring from the inside, means making people already employed by the organization aware of job openings, as through job postings (pros - high morale, is cheaper, fewer risks; cons - restricts competition/limits pool of fresh talent, encourages others that longevity will result in promotion, creates vacancy somewhere else in org.) * ER - Hiring from the outside, means attracting job applicants from outside the org., a useful approach is the realistic job preview (gives candidate positive and negative features of job and of org. before hired) (pros - applicants may have specialized knowledge & experience, may have fresh viewpoints; cons - is more expensive and takes longer, higher risks) * Most effective sources Employee referrals E-recruitment tools (member directories, social media such as LinkedIn, "dot-jobs" websites)

Chp. 10: Distinctions between invention, creativity, innovation

* Invention Creating or making up something new * Creativity Developing new and imaginative ideas into reality * Innovation The activity of creating new ideas and converting them into useful applications—specifically, new goods and services Myth No. 1: Innovation happens in a "Eureka!" moment. Myth No. 2: Innovation can be systematized.

Chp. 9: Job Analysis (Job Description and Job Specification)

* JA = (in order to understand current employee needs) used to determine, by observation and analysis, the basic elements of a job * JD = a summary of what the holder of a job does and why/how he/she does it (a list of tasks, duties, and responsibilities) *JS = describes the minimum qualifications a person must have to perform the job successfully (list of knowledge, abilities, skills, and other characteristics)

Chp. 11: Work Related Attitudes (job involvement)

* Job Involvement refers to the psychological and emotional extent to which someone participates in his/her work, profession, and company. Showing up to work on time is half the battle. Top performers are engaged in their work and have high job involvement.

Chp. 9: Performance appraisal

* Performance management = Set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations * Performance appraisal= Also called a performance review Consists of Assessing an employee's performance Providing feedback - Objective appraisal Based on fact and often numerical. Measures results Harder to challenge legally: reduced personal bias "Management by objectives" or MBO - Subjective appraisal Based on a manager's perceptions of an employees traits and behaviors Easy to create and use, but validity is questionable One type is behaviorally anchored rating scale (BARS) Rates employee gradations in performance according to scales of specific behaviors

Chp. 10: Types of Innovation (product vs. process)

* Product innovation Change in the appearance or performance of a product or the creation of a new one * Process innovation Change in the way a product is conceived, manufactured, or disseminated

Chp. 10: Types of Change (reactive vs. proactive)

* R = Making changes in response to problems or opportunities as they arise *P = or planned change, Involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities

Chp. 9: Selection

* Screening of job applicants to hire the best candidate * Involves three components - Background information: is ascertained through application forms, resumes, and reference checks - Interviewing: 3 forms 1 unstructured (involves asking probing questions to find out what the applicant is like) vs 2 structured (involves asking each applicant the same questions and comparing his or her responses to a standardized set of answers), 2a. structured = situational (the interview focuses on hypothetical situations); 2b. = behavioral-description (interviewer explores what applicants have actually done in the past) - Employment tests = are legally considered to consist of any procedure used in the employment selection decision process, but most common = ability (Measure physical abilities, strength and stamina, mechanical ability, mental abilities, and clerical abilities), personality (Measure such personality traits as adjustment, energy, sociability, independence, and need for achievement), performance (skills tests, job-tryouts, which may take place in an assessment center), & integrity (Assess attitudes and experiences related to a person's honesty, dependability, trustworthiness, reliability, and prosocial behavior)

Chp. 8: How Employees learn culture

* Symbols: an object, an act, a quality, or event that conveys meaning to others * Stories: narrative based on true events repeated—and sometimes embellished upon—to emphasize a particular value * Heroes: person whose accomplishments embody the values of the organization * Rites and rituals: activities and ceremonies that celebrate important occasions and accomplishments * Organizational socialization: the process by which people learn the values, norms, and required behaviors of an organization

Chp. 8: Organizational Structures: network/hollow (other two of the boundary less organization = modular & virtual)

* The organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster. * M =The firm assembles product chunks, or modules, provided by outside contractors. * Organization whose members are geographically distant, usually working via e-mail, collaborative computing, and other computer connections

Chp. 9: Sexual Harassment

* Violates Title VII of the 1964 Civil Rights Act * consists of unwanted sexual attention that creates an adverse work environment and which may be of two types 1. quid pro quo = which may cause direct economic injury; jeopardizes being hired or obtaining job benefits or opportunities unless he or she implicitly or explicitly acquiesces 2. hostile environment = in which the person being harassed experiences an offensive work environment; doesn't risk economic harm but experiences an offensive or intimidating work environment

Chp. 7: Big Data

* a new concept that requires handling by very sophisticated analysis software and supercomputing-level hardware; includes not only data in corporate databases but in web-browsing data trails, social network communications, sensor data, and surveillance data * Big Data analytics = the process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful info

Chp. 11: 3 Components of Attitudes (affective)

* attitudes have 3 components - 1. Affective "I feel" Feelings or emotions one has about a situation 2. Cognitive "I believe" Beliefs and knowledge one has about a situation 3. Behavioral "I intend" How one intends or expects to behave toward a situation

Chp. 7: Ethical Decision Making

* corporate corruption has made ethics in the decision making once again important; many companies have an *ethics officer* to resolve ethical dilemmas and more companies are creating values statements to guide employees as to desirable business behavior * to help make ethical decisions, a *decision tree* - a graph of decisions and their possible consequences - may be helpful ( helps you to reach a decision by leading you to the ultimate goal and sifting through alternatives- a very rational DM approach) * managers should ask whether a proposed action is legal, and if it is intended to maximize shareholder value, whether it is ethical - and whether it would be ethical not to take the proposed action

Chp. 7: Rational/Classical Decision Making Model

* decision = choice made from among available alternatives; decision making = the process of identifying and choosing alternative courses of action * two models = rational and non-rational * rational = 4 steps in making a decision: 1. identify the problem (a difficulty that inhibits the achievement of goals - diagnosis, analyzing the underlying causes) or opportunity (a situation that presents possibilities for exceeding existing goals) 2. think up alternative solutions 3. evaluate the alternatives, select a solution (evaluate according to cost, quality, ethics, feasibility, and effectiveness) 4. implement and evaluate the chosen solution * this model assumes managers will make logical decisions that will be the optimum in furthering the organization's best interests; it is prescriptive, describing how managers ought to make decisions * assumptions = perfect rationality, complete access to info, optimal choice out of alternatives is chosen, prescriptive model (describes actions before making choice)

Chp. 7: Cognitive Biases/Heuristics: escalation of commitment

* describes when decision makers increase their commitment to a project despite negative information about it

Chp. 7: Analytics

* evidence-based management = translating principles based on best evidence into organizational practice; it is intended to bring rationality to the decision-making process * the purest application of evidence-based management is the use of analytics - (business analytics) sophisticated forms of business data analysis * 3 attributes = a. they go beyond simple descriptive stats and use data mining and predictive modeling to identify potential and most profitable customers; b. they don't have just one principal application but rather use analytics in multiple applications; c. the use is supported by top exec's

Chp. 10: Lewin's Model of Change

* has three stages - unfreezing, changing, and refreezing - to explain how to initiate, manage, and stabilize planned change 1. unfreezing stage: managers try to instill in employees the motivation to change 2. in the changing stage, employees need to be given the tools for change, such as new information 3. refreezing stage - employees need to be helped to integrate the changed attitudes and behavior into their normal behavior

Chp. 7: Cognitive Biases/Heuristics: availability

* heuristics = rules of thumb / strategies that simplify the process of making decisions; some heuristics or barriers that tend to bias how decision makers process information are availability, etc. * means that managers use information readily available from memory to make judgments

Chp. 7: Cognitive Biases/Heuristics: overconfidence

* is the bias in which people's subjective confidence in their decision making is greater than their objective accuracy

Chp. 7: Cognitive Biases/Heuristics: framing

* is the tendency of decision makers to be influenced by THE WAY a situation or problem is presented to them

Chp. 7: Cognitive Biases/Heuristics: hindsight

* is the tendency of people to view events as being more predictable than they really are

Chp. 7: Cognitive Biases/Heuristics: representativeness

* is the tendency to generalize from a small sample or a single event

Chp. 7: Cognitive Biases/Heuristics: anchoring and adjustment

* is the tendency to make decisions based on an initial figure or number * describes cases in which a person uses a specific target number or value as a starting point, known as an anchor, and subsequently adjusts that information until an acceptable value is reached over time

Chp. 7: Cognitive Biases/Heuristics: sunk cost

* is when managers add up all the money already spent on a project and conclude that it is too costly to simply abandon it

Chp. 10: Forces of Change

* may consist of forces outside the org. or inside it * external = 4 types = - demographic characteristics - technological advancements - shareholder, customer, & market changes - social & political pressure * internal = 2 types = - human resources concerns - managers' behavior

Chp. 7: Cognitive Biases/Heuristics: confirmation

* means people seek information to support their own point of view and discount data that do not

Chp. 8: 3 Levels of Organizational Culture (observable artifact, espoused values, basic assumptions)

* observable artifact - physical manifestations such as manner of dress, awards, myths and stories about the company visible behavior exhibited by managers and employees * espoused values - explicitly stated values and norms preferred by an organization Enacted values represent the values and norms actually exhibited in the organization * basic assumptions represent the core values of the organization's culture those taken for granted and highly resistant to change

Chp. 8: Types of Organizations: for profit

* organization = a system of consciously coordinated activities or forces of two or more people - For-profit, nonprofit, mutual-benefit ** Formed to make money, or profits, by offering products or services

Chp. 8: Organization Chart

* organizational structure = A formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals Concerned with who reports to whom and who specializes in what work - OC = box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations (divisions of labor) * solid line = direct authority * dashed line - staff/advisory positions with no authority over anyone else in the org * vertical hierarchy of authority (who reports to whom) * horizontal hierarchy of authority (who specializes in what work)

Chp. 10: Organizational Change

* process of modifying present state of an organization and adopting a desired future state in anticipation of or in response to dynamic (internal/external) factors that impact the ability of the organization to achieve its strategic goals.

Chp. 8: Person-Organization Fit

* reflects the extent to which your personality and values match the climate and culture in an organization * good PO fit = more positive work attitudes, task performance, lower stress, fewer intentions to quit * challenge = align org's vision & strategies with its culture & structure

Chp. 7: Tacit and Explicit Knowledge

* tacit = (as opposed to formal, codified or explicit knowledge) is the kind of knowledge that is difficult to transfer to another person by means of writing it down or verbalizing it. * explicit =e (also expressive knowledge) is knowledge that can be readily articulated, codified, accessed and verbalized. It can be easily transmitted to others. Most forms can be stored in certain media

Chp. 11: Values and Attitudes

* values = abstract ideals that guide one's thinking and behavior across all situations * attitudes: learned predispositions toward a given (specific) option

Chp. 11: Cognitive Dissonance and Ways to reduce it

* when attitudes & reality collide, the result may be a cognitive dissonance = The psychological discomfort a person experiences between his or her cognitive attitude and incompatible behavior * How people deal with the discomfort depends on: Importance - can you live with the ambiguity? Control - how much control do you have over the situation? Rewards - what rewards are at stake with the dissonance?

Chp. 7: Group Problem Solving Techniques: computer-aided decision making

- A computer-based information system that provides a flexible tool for analysis and helps managers focus on the future - Produces collected information known as business intelligence

Chp. 7: Group Problem Solving Techniques: Delphi technique

- A group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas - The judgments are combined and in effect averaged to achieve a consensus of expert opinion - Originally designed for technological forecasting but now is used as a multipurpose planning tool

Chp. 10: Resistance to Change

- An emotional or behavioral response to real or imagined threats to an established work routine - can be considered to be the interaction of three causes: (1) employee characteristics; (2) change-agent characteristics; & (3) change-agent and employee relationship - individual: fear of the unknown, loss, failure -organizational: structural inertia, threat to established power relationships Why? Individual's predisposition toward change Surprise and fear of the unknown Climate of mistrust Fear of failure Loss of status or job security Peer pressure Disruption of cultural traditions or group relationships Personality conflicts Lack of tact or poor timing Non-reinforcing reward system

Chp. 8: Organizational Structures: simple

- Authority is centralized in a single person, with flat hierarchy, few rules and low work specialization. - Small firms all over the country are organized in this way. - ex: An Owner An Administrative Assistant

Chp. 11: Attributional Tendencies (Fundamental Attribution Bias, Self-service Bias)

- Causal attributions Inferring causes for observed behavior - Fundamental attribution bias People attribute another person's behavior to his or her personal characteristics rather than to situational factors - Self-serving bias People tend to take more personal responsibility for success than for failure

Chp. 9: Workplace Discrimination (adverse impact, disparate treatment)

- Discrimination People are hired or promoted—or denied hiring or promotion—for reasons not relevant to the job. - Adverse impact An organization uses an *employment practice or procedure* that results in unfavorable outcomes to a *protected class*. - Disparate treatment *Employees* from *protected groups* are intentionally treated differently.

Chp. 8: Types of Organizational Culture: market

- Focused on the external environment - Values stability and control - Driven by competition and a strong desire to deliver results (bottom right) * spectrum - left to right = internal focus & integration --> external focus and differentiation (clan, adhocracy, hierarchy, market) - top to bottom = flexibility and discretion, stability and control

Chp. 8: Types of Organizational Culture: adhocracy

- Has an external focus - Values flexibility - Adaptable, creative, and quick to respond to changes in the marketplace (top right) * spectrum - left to right = internal focus & integration --> external focus and differentiation (clan, adhocracy, hierarchy, market) - top to bottom = flexibility and discretion, stability and control

Chp. 8: Types of Organizational Culture: clan

- Has an internal focus - Values flexibility rather than stability - Encourages collaboration among employees (top left) * spectrum - left to right = internal focus & integration --> external focus and differentiation (clan, adhocracy, hierarchy, market) - top to bottom = flexibility and discretion, stability and control

Chp. 8: Types of Organizational Culture: hierarchy

- Has an internal focus - Values stability and control over flexibility - Formalized, structured work environment (bottom left) * spectrum - left to right = internal focus & integration --> external focus and differentiation (clan, adhocracy, hierarchy, market) - top to bottom = flexibility and discretion, stability and control

Chp. 10: Types of Innovation (incremental vs. radical)

- Least threatening: Adaptive change Reintroduction of a familiar practice - Somewhat threatening: Innovative change Introduction of a practice that is new to the organization - Very threatening: Radically innovative change Involves introducing a practice that is new to the industry * incremental = modify existing product * radical = create new products

Chp. 9: Training and Development

- Onboarding: Programs that help employees to integrate and transition to new jobs; Familiarize new employees with corporate policies, procedures, cultures, and politics; Clarify work-role expectations and responsibilities - Orientation: Helping the newcomer fit smoothly into the job and the organization; Designed to give employees the information they need to be successful - Following orientation, the employee should emerge with information about: The job routine The organization's mission and operations The organization's work rules and employee benefits - Training: training refers to educating technical and operational employees in how to do their current jobs better - On-the-job training Coaching, training positions, job rotation, and planned work activities - Off-the-job training Classroom programs, workbooks, videos, and games and simulations - Microlearning Segments learning into bite-size content, enabling a student to master one piece of learning before advancing to anything else - Development: describes education professionals and managers in the skills they need to do their jobs in the future (can be on-job or off-job)

Chp. 10: Organizational Development

- Set of techniques for implementing planned change to make people and organizations more effective - change agent puts OD to practice - is A consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways used for: Managing conflict, Revitalizing organizations, Adapting to mergers How it works - diagnosis, intervention, evaluation

Chp. 11: Distortions in Perception (others)

- Sex-role stereotypes Research revealed that men were preferred for male-dominated jobs, women have harder time being perceived as effective leaders - Age stereotypes Inaccurately believing that older workers are less motivated, resistant to change, less trusting, and less healthy (research refuted all of these) - Race stereotypes Studies demonstrated that people of color experienced more perceived discrimination and less psychological support than whites - Implicit bias Attitudes or beliefs that affect our understanding, actions, and decisions in an unconscious manner

Chp. 7: Barriers to Rational Decision-Making

- complexity - time and money - different cognitive capacity, values, skills, habits, unconscious reflexes - imperfect info - info overload - different priorities - conflicting goals

Chp. 10: Overcoming Resistance to Change

- involves 3 things: 1. participation (especially with employees) 2. education & communication 3. facilitation & support

Chp. 8: (3 more common elements of an organization that authorities agree on) Authority, accountability, responsibility, & *Delegation*

= the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

Chp. 11: Emotional Intelligence

Ability to monitor your and others' feelings and to use this information to guide your thinking and actions Some claim it to be the "secret elixir" to happiness and higher performance Moderately associated with Better social relations, well-being, and satisfaction Higher creativity Better emotional control Conscientiousness and self-efficacy Self-rated performance - traits of EI: * Self-awareness. The most essential trait. This is the ability to read your own emotions and gauge your moods accurately, so you know how you're affecting others. *Self-management. This is the ability to control your emotions and act with honesty and integrity in reliable and adaptable ways. You can leave occasional bad moods outside the office. * Social awareness. This includes empathy, showing others that you care, and organizational intuition, so you keenly understand how your emotions and actions affect others. * Relationship management. This is the ability to communicate clearly and convincingly, disarm conflicts, and build strong personal bonds.

Chp. 11: Work Related Attitudes (employee engagement)

An individual's involvement, satisfaction, and enthusiasm for work Engaged employees' feelings of urgency, intensity, and enthusiasm, as well as focus, making them more committed Employees more likely to become engaged when a culture promotes employee development, recognition, and trust

Chp. 9: Selection Tools

Background Information* References Paper Tests Performance Tests Physical Ability Tests Interviews* IMPORTANT: Reliability + Validity of Tools ** reliable = the degree to which a test measures the same thing consistently Valid = whether the test measures what it purports to measure and is free of bias

Chp. 9: Strategic Human Resource Management (HRM)

Consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce * the purpose of strategic HRM process = to get the optimal work performance that will help realize the company's mission and vision * strategic HRM planning consists of developing a systematic, comprehensive strategy for a. understanding current employee needs & b. predicting future employee needs * Role of HRM in Building Competitive Advantage = Attract a qualified workforce. Develop a qualified workforce. Maintain a qualified workforce.

Chp. 11: Organizational Behavior

Dedicated to better understanding and managing people at work Tries to help managers explain and predict work behavior, so they can better lead and motivate their employees to perform productively

Chp. 9: 360 Degree Assessment

Employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients Typically, an employee chooses evaluators (6 to 12 people) who fill out anonymous forms, the results of which are tabulated by computer Employee goes over results with his or her manager and together they put into place a long-term plan for performance goals - Formal appraisals Conducted at specific times throughout the year and based on performance measures that have been established in advance, and - Informal appraisals Conducted on an unscheduled basis and consists of less rigorous indications of employee performance

Chp. 11: Work Related Attitudes (job satisfaction)

Extent to which you feel positively or negatively about various aspects of your work Depends on how you feel about several components, such as work, pay, promotions, coworkers, and supervision Key correlates Stronger motivation, job involvement, and life satisfaction Less absenteeism, tardiness, turnover, and stress

Chp. 8: Types of Organizations: nonprofit

Formed to offer services to some clients, not to make a profit (example: hospitals, colleges)

Chp. 11: Distortions in Perception (halo effect)

Forming an impression of an individual based on a single trait "One trait tells me all I need to know"

Chp. 8: Common Elements of Organizations (4 - Edgar Shein)

Four proposed by Edgar Schein: 1. Common purpose: gives everyone an understanding of the organization's reason for being 2. Coordinated effort: the coordination of individual effort into group-wide effort 3. Division of labor: having discrete parts of a task done by different people 4. Hierarchy of authority: making sure the right people do the right things at the right time (unity of command)

Chp. 11: Distortions in Perception (causal attribution)

Inferring causes for observed behavior

Chp. 11: self-fulfilling prophecy

Is a phenomenon by which people's expectations of themselves or others lead them to behave in ways that make those expectations come true Managerial expectations powerfully influence employee behavior and performance.

Chp. 8: Factors in Creating the Best Structure: Mechanistic vs. Organic Organizations

Mechanistic org's = * Centralized hierarchy of authority * Many rules and procedures * Specialized tasks * Formalized communication * Few teams or task forces * Narrow span of control, taller structures Organic org's = * Decentralized hierarchy of authority * Few rules and procedures * Shared tasks * Informal communication * Many teams or task forces * Wider span of control, flatter structures

Chp. 7: Group Problem Solving Techniques: consensus

Occurs when members are able to express their opinions and reach agreement to support the final decision - let minority dissent be allowed so members can safely disagree with one another

Chp. 8: Organizational Structures: divisional

People with *diverse* occupational specialties are put together in formal groups *by similar products, customers or geographic regions*.

Chp. 8: Organizational Structures: functional

People with *similar* occupational specialties are put together in formal groups.

Chp. 11: Perception

Process of interpreting and understanding one's environment 1. selective attention 2. interpretation & eval 3. storing in memory 4. retrieving from memory to make judgments & decisions

Chp. 9: Recruitment

Process of locating and attracting qualified applicants for jobs open in the organization

Chp. 7: Group Decision Making (pros and cons)

Pros: - Greater pool of knowledge - Different perspectives - Intellectual stimulation - Better understanding of decision rationale - Deeper commitment to the decision Cons: - Few people dominate or intimidate - Satisficing - the "good enough" decision - Goal displacement - other issues may arise - Groupthink - agreeing for the sake of unanimity and thus avoid accurately assessing the decision situation

Chp. 11: Work Related Attitudes (organizational commitment)

Reflects the extent to which an employee identifies with an organization and is committed to its goals Research shows a significant positive relationship between organizational commitment and job satisfaction, performance, turnover, and organizational citizenship behavior

Chp. 11: Traits of Organizations: Core Self-Evaluation

Represents a broad personality trait comprising four positive individual traits - Self-efficacy: Belief in one's ability to do a task; Learned helplessness The debilitating lack of faith in one's ability to control one's environment, Associated with low self-efficacy - Self-esteem: The extent to which people like or dislike themselves High self-esteem: more apt to handle failure better, emphasize the positive and to take more risks Low self-esteem: tend to focus more on one's weaknesses, may be more dependent on others - Locus of control: Indicates how much people believe they control their fate through their own efforts Internal locus of control: you believe you control your destiny External locus of control: you believe external forces control you - Emotional stability: The extent to which people feel secure and unworried and to which they are likely to experience negative emotions under pressure Low levels are prone to anxiety and tend to view the world negatively High levels tend to show better job performance

Chp. 11: Diversity

Represents all the ways people are unlike and alike—the differences and similarities in age, gender, race, religion, ethnicity, sexual orientation, capabilities, and socioeconomic background - the diversity wheel - consists of internal dimensions, external dimensions, and organizational dimensions (management status, union affiliation, seniority, etc.) - internal dimensions: those human differences that exert a powerful, sustained effect throughout every stage of our lives (gender, age, ethnicity, race, sexual orientation, and physical abilities) - external dimensions: include an element of choice; consist of the personal characteristics that people acquire, discard, or modify throughout their lives (ex - religion, marital status, education, income)

Chp. 8: Organizational Structures: team-based/ horizontal design

Teams or workgroups, either temporary or permanent, are used to improve collaboration ("horizontal relations") and work on shared tasks by breaking down internal boundaries. & solve problems throughout the org

Chp. 7: Group Problem Solving Techniques: brainstorming

Technique used to help groups generate multiple ideas and alternatives for solving problems rules - defer judgment, build on ideas of others, encourage wild ideas, go for quantity over quality, be visual, one conversation at a time

Chp. 11: Distortions in Perception (stereotyping)

Tendency to attribute to an individual the characteristics one believes are typical of the group to which that individual belongs

Chp. 11: Distortions in Perception (recency effect)

Tendency to remember recent information better than earlier information Examples Employee has recently made a mistake, and it ends up being the only topic of a performance review

Chp. 7: Group Problem Solving Techniques: nominal group technique

The nominal group technique (NGT) is a group process involving problem identification, solution generation, and decision making.[1] It can be used in groups of many sizes, who want to make their decision quickly, as by a vote, but want everyone's opinions taken into account (as opposed to traditional voting, where only the largest group is considered).[2] The method of tallying is the difference. First, every member of the group gives their view of the solution, with a short explanation. Then, duplicate solutions are eliminated from the list of all solutions, and the members proceed to rank the solutions, 1st, 2nd, 3rd, 4th, and so on. Some facilitators will encourage the sharing and discussion of reasons for the choices made by each group member, thereby identifying common ground, and a plurality of ideas and approaches. This diversity often allows the creation of a hybrid idea (combining parts of two or more ideas), often found to be even better than those ideas being initially considered. In the basic method, the numbers each solution receives are totaled, and the solution with the highest (i.e. most favored) total ranking is selected as the final decision. There are variations on how this technique is used. For example, it can identify strengths versus areas in need of development, rather than be used as a decision-making voting alternative. Also, options do not always have to be ranked, but may be evaluated more subjectively.

Chp. 8: Factors in Creating the Best Structure: Contingency Design

The process of fitting the organization to its environment - Three factors to consider *Environment: mechanistic versus organic *Environment: differentiation versus integration *Link between strategy, culture, and structure

Chp. 8: Organizational Culture

The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments * helps employees understand why the org does what it does and how it intends to accomplish its long-term goals

Chp. 11: Personality

The stable psychological traits and behavioral attributes that give a person his or her identity * Proactive personality Someone who is more apt to take initiative and persevere to influence the environment (conscientious)

Chp. 8: Types of Organizations: mutual-benefit

Voluntary collectives whose purpose is to advance members' interests (example: unions, trade associations)

Chp. 7: perception

a way of regarding, understanding, or interpreting something; a mental impression; they vary among people based on their own backgrounds, motivations, etc.; they influence our decisions

Chp. 7: Groupthink

agreeing for the sake of unanimity and thus avoid accurately assessing the decision situation Symptoms: - Sense of invulnerability - Rationalization - Illusion of unanimity and peer pressure - "The wisdom of crowds"

Chp. 7: Knowledge Management

is the process of creating, sharing, using and managing the knowledge and information of an organisation. It refers to a multidisciplinary approach to achieving organisational objectives by making the best use of knowledge

Chp. 7: Intuition

making choices without the use of conscious thought or logical interference; sources = feelings and expertise (a person's *explicit and tacit knowledge* about a person, situation, object, or a decision opportunity, known as a holistic hunch) and automated experience (the involuntary emotional response to those same matters) * negative connotation of intuition is changing thanks to recent research suggesting it saves managers time and money

Chp. 7: Satisficing

managers seek alternatives until they find one that is satisfactory, not optimal (due to bounded rationality)

Chp. 7: Bounded Rationality

the ability of decision makers to be rational is limited by enormous constraints, such as time and money (these constraints force managers to make decisions according to the satisficing model) * limited access to info / info overload

Chp. 8: (3 more common elements of an organization that authorities agree on) Span of Control

the number of people reporting directly to a given manager; narrow or wide

Chp. 8: Division of Labor

the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to systems of mass production and is one of the basic organizing principles of the assembly line. * having discrete parts of a task done by different people (one of four common elements to orgs by Edgar Shein)

Chp. 8: (3 more common elements of an organization that authorities agree on) Centralized versus decentralized authority

who makes decisions; upper management or middle