Download Midterm COMPLETE

Mgt 500 Midterm Study Guide
1. What is an organization and why do they exist?
An organization is a group of people intentionally organized to
accomplish an overall, common goal or set of goals. Business
organizations can range in size from two people to tens of thousands.
Organization exists because they accomplish things that cannot be
achieved by individuals. The members in an organization pursue goals
and objectives that can be achieved more efficiently by the
coordinated actions of groups individuals.
2. What are the Eight Basics of management excellence as described in
In Search of Excellence?
-
A bias for action (Quick action) : based on four activities,
 Emphasize informal, open, and intensive communication
throughout the
organization
 Corporate winners maintain “chunking,” small, action-oriented,
and
informal groups that generate ideas, develop them, and solve
problems.
These companies emphasize experimenting and trying out new
ideas.
Winners encourage simplicity.
-
Staying close to the needs and problems of customers
 Customer service is an obsession with these companies.
 Use of toll free numbers and access to upper management by
customers.
-
Autonomy and Entrepreneurship
 Give employees the resources to try out new ideas.
 Encourage competition between divisions
 Maintain “Championing Systems”
1). The Product Champion: the person with a specific
product idea
2). Executive Champion: typically a former product
champion who
protects the idea from barriers.
3). The Godfather: an aging leader who provides the role
model for
championing.
-
People as the key to productivity
Winners emphasize their people through intensive training,
and by
developing caring relationships with employees – They avoid
quick
layoffs etc.
-
Simple organizations
Excellence companies strive to keep organizational structure
simple by
minimizing the size of corporate staff and using a product
division for
structure.
-
Strong corporate culture
 Maintain strong corporate culture by basing it on clear, well
understood
guiding values.
-
Loose and tight control
Emphasize “Loose” principle such as autonomy,
entrepreneurship, and
innovation by employees, yet maintain a tight system of
discipline,
values, and objectives.
-
Stick to the basics
 Winners restrict their business activities to things they know
best.
3. What causes individuals to behave differently? Specially, what are
the individual and psychological variables that cause different
behavior?
-
What causes individuals to behave differently?
 Personality
1). Unique assortment of genes: this perspective holds
that personality traits, such as temperament and sociability,
are determined in much the same way as hair color and facial
features.
2). Heredity: it can be seen clearly from the example of
twins. Even though many of the twins were raised by families
from different social class, and sometimes in different
countries, each set shared many common traits.
3). Culture:
* Cross-culture: for example, the personality traits
of
Westerners are often distinct from traits of
people raised in other cultures, such as Asians.
* People who are raised in a new culture from an
early age
often reflect the influence of their experiences
within that new culture.
4). Immediate environment influence: for example, the
birth order
directly influence the personalities and it’s due to the
differing
experiences to which the children are exposed.
Firstborns are
generally treated differently by parents. Compared to
later-borns,
they tend to receive more attention at first but are
then expected
to behave more responsibly in looking after younger
children.
5). Environment: Environmentalists contented that the
results of experience can shape and alter an individual’s
personality.
Individual variable
 Abilities and skills:
*Ability: A trait (inherent or learned) that permits a person to
do
something mental or physical.
*Skill: Task-related competencies, such as driving a car, leading
employees. By conducting a through job analysis
management an
effectively match jobs with people. Even if employees is
motivated,
if he/ she lacks the required skills and abilities they will
fail.
 Demographics and background:
*Age: In an organization, a person’s tenure affects how they
behave.
Younger employees are more aggressive etc.
* Race, Culture, Gender, etc.: These effect our perceptions of
different
actions and cause us to stereotype or become defensive
etc.
Psychological variables – Perception: a cognitive peocess by which a
person gives
meaning to the environment. It’s different from
sensation, In sensation, you just have the act of
receiving environmental stimuli. In a lot of cases
we sense and perceive two different things.
4. Describe the perceptual process.
Perception is a cognitive process by which a person gives meaning to
the environment. Problems may arise between managers/subordinates
because of individual variables.
The perception process begins with a stimulus. An observation is then
made regarding the stimulus. Self-influencing factors assist the
individual in forming the perception. The next step in the perception
process involves evaluating the perception and the underlying factors,
which influence the perception. In order to evaluate the perception
thoroughly behaviors and attitudes toward the perception need to be
fully evaluated.
5. How can perceptual errors be reduced?
To avoid perceptual errors:
- Closure should be made to alleviate misconceptions, which occur
when incomplete information is provided.
- Also, stereotyping should be discussed thoroughly (i.e. discuss
sexual harassment in business)
- Read a person by utilizing gestures, eye contact, facial
expressions, etc.
- Avoid the halo effect
- Avoid projection (put own feelings and attributes on others)
- Avoid perceptual distortion (deliberately paying attention only
to what you want to see)
- Avoid selective perception (occurs when managers tend to
interpret problem situations in light of their own background
and interest)
6. What is an attitude and what are its three components?
An attitude is a mental state of readiness, learned through
experience, that affects behavior. It is learned, it helps form
predispositions, and it is a reflection of an individuals personality.
The three components include:
Affect- An emotion or feeling component, which is learned from
family etc.
Cognitive- The individual’s perceptions, opinions, and beliefs
Behavioral- A tendency to act toward something in a particular way.
7. What is Cognitive Dissonance? How can this theory be used to change
individual behavior?
Cognitive dissonance is where a discrepancy exists between the cognitive
and behavioral components of an attitude. It leads to rationalization
because one component, cognitive or behavioral, has to give in. Cognitive
dissonance may motivate the person to change his/her behavior.
8. What influences attitude change? (3 factors)
1) Trust in the sender. The sender influences us by her expertise,
age, sex, race
etc. We adopt attitude changes of the people we respect & like.
2) The message must be convincing and presented in an enthusiastic
way.
3) The situation  distractions can help or hinder change. It depends
on how
strong the attitude. The situation does prevent counter arguing.
9. What impact does the attitude of job satisfaction have in the workplace?
Job satisfaction is an attitude resulting from work experiences. By
using your past experiences as a reference, one can tell if the work
conditions are good, hence resulting in job satisfaction. This includes
but is not limited to pay, promotion, management, coworkers, equity,
etc. For example, if you left your last job because you did not like
your coworkers, and you like your coworkers at your new job, then you
will have a more positive attitude. Job satisfaction is usually
positively correlated with productivity (but not always.) Even if there
are things at your job that you don’t like, you may be able to look the
other way if you are productive. For one thing, it probably keeps you
busy, plus you will likely have a positive feeling about your job if you
do your job well and your bosses are pleased with your performance.
When you are satisfied with your job, people enjoy being around you
more too. Hence it increases morale. A good work ethic may
overcome feelings of dissatisfaction. Also, one does not cause the
other. The relationship goes both ways.
10. Distinguish between Content and Process theories of motivation.
Describe each of the content and process theories and list their strengths
and weaknesses.
Content theories focus on what arouses or initiates an individual’s
behavior. It deals with the specific “things” that motivate people.
The four major content theories are:
Maslow’s Need Hierarchy: one of the most widely discusses theories.
The essence of this theory is that basic human needs are organized
into a hierarchy of 5 needs.  (it looks like a pyramid.) The base of
the pyramid is physiological (warmth, food, water etc). Then there is
safety & security. Then affiliation/social or the need to be with
other people. Then there is esteem which involves your status. At
the peak of the pyramid, there is self actualization which refers to
reaching your highest potential. His theory gives insights into
motivation  it specifies what goals people value at specific times &
suggests what types of behaviors will influence the fulfillment of
those needs. The theory provides no explanation as to how needs
originate. Need fulfillment varies on age, sex, race, size and type of
company and culture.
Aldefer’s ERG theory: He agrees with Maslow in that individuals have
needs that are arranged in a hierarchy. He only recognizes 3 levels of
needs: 1) existence  these are needs that are satisfied by such
things as food, air, water, pay & working conditions. (This is like
Maslow’s safety & physiologocial levels.) 2) Relatedness  these
needs are satisfied by meaningful social and interpersonal
relationships (like Maslow’s social/affiliation level.) Lastly there is
growth  these needs are satisfied by making creature or productive
contributions (like Maslow’s esteem & self actualization levels.) He
differs from Maslow in several ways  he hs 3 levels instead of 5. E
needs = physiological & safety needs, R needs = belongingness, social &
love needs, G needs = esteem & self actualization. They differ on how
people move through the different sets of needs. Maslow relied on
prepotency idea. Alderfer suggested that in addition to the
satisfaction progression process, a frustration-regression process
also occurred. Suggestions to managers about employee behavior: if a
manager observes that an employees higher order needs are being
blocked, because of a company policy or rule, then it is in the
manager’s best interest to redirect the employee’s efforts toward
relatedness or existence needs.
McClelland’s Learned Needs Theory: there is a need for power Npow,
a need for affiliation Naff & a need for achievement Nach. These
needs are learned early and are hard to change. There is most
research on Nach. McClelland made the following suggestions about
developing a positive high Nach  That is a high Nach where there is
no fear of success. Nach applied  arrange tasks so they receive
periodic feedback, seek good models of achievement, modify self
image & control their imagination
Herzberg Two-Factor Theory: 2 continua were needed  satisfaction
had 2 dimensions. Dissatisifers – extrinsic, not job related. Hygiene
factors (pay, supervision, company policies, co-workers) lead to a
neutral state of motivation, satisfaction, & performance. Satisfier’s –
intrinsic, job related. Motivator Factors (achievement, advancement,
recognition) result in a high state motivation, satisfaction, &
performance. Most important contribution of his theory  it
stimulated thought about motivation at work. Maslow & McClelland’s
theories were based on lab research & clinical judgments. Herzberg
showed the importance of considering the motivation of people at
work.
All four theories are based on needs. They suggest that managers
should be sensitive to the differences and desires among their
employees since each one is unique. One example of a need theory
applied  modified work week (flex time, 4 day work week etc)
Process theories are skeptical of content theories because they place
little emphasis on what actions people will choose to satisfy their
needs. Process theories attempt to explain and describe the process
of how people start, direct, sustain, and stop behavior. (They attempt
to explain & describe how behavior is energized, directed, sustained, &
stopped.) They are concerned with factors that increase the
likelihood desired behavior will be repeated. They incorporate the
learning process. Four major process theories are:
Expectancy Theory: one of the most popular explanations of
motivation. Vroom defines motivation as a process governing choices
among alternative forms of voluntary activity. 1st level outcomes are
hose that result from doing the job itself. These include productivity,
quality, absenteeism, turnover etc. 2nd level outcomes are those
events (rewards or punishments that the 1st level outcomes are likely
to produce (ie merit pay, group acceptance, promotions).
Instrumentality  perception by the individual that 1st level outcomes
will be associated with 2nd level outcomes  it asks, “if I succeed,
what outcomes will I receive?” Expectancy refers to individual’s
belief that a particular behavior will be followed by a particular
outcome. Valence refers to the value you attach to an outcome.
See page 6 in the course packet for a diagram/example
Equity Theory: essence of it is that employees compare their effort
and rewards with those of others in similar work situations. It is
based on the assumption that individuals are motivated by a desire to
be equitably treated at work. 4 important terms: Person  the
individual for whom equity or inequity is perceived. Comparison Other
 any group or persons used by the person as a reference regarding
the ratio of input & outcomes. Inputs  the individual characteristics
brought by the person to the job. These may be achieved (ie skills,
experience, Inputs  the individual characteristics brought by the
person to the job. These may be achieved (ie skills, experience,
learning) or ascribed (ie age, sex, race.) Outcomes  what the person
received from the job (status, recognition, $ etc.) Equity exists
when employees perceive that the ratios of their inputs (efforts) to
their outcomes (rewards) are equivalent to the ratios of other
employees.
Equity  outputs/inputs = CP outputs/inputs, overpayment 
outputs/inputs > CP outputs/inputs, underpayment  outputs/inputs <
CP outputs/inputs. To restore equity  change inputs – put less
effort or time on the job, change outputs – produce more/pay more,
change attitudes – change attitude about the job (IE “I put in enough
time at work”), change the reference person, change inputs or outputs
of reference person (IE coworkers – ask them to slow down or quit
being a rate buster or sabotage others work), change the situation (IE
quit or get transferred). Each of these methods is designed to
reduce or change the discomfort of inequity. Equity theory proposes
that when inequity exists, a person will be motivated to take one of
those steps.
Goal Setting: is a cognitive process whereby an individual’s conscious
goals and intentions are the primary determinants of behavior. Locke
said that a characteristic of intentional behavior is that it tends to
keep going until it reaches completion. Per Locke, a goal is the object
of an action. Locke describes 3 attributes of the Cognitive Process
that occur during goal setting. 1) Goal Specificity  the degree of
quantitative precision (clarity) of the goal 2) Goal Difficulty  the
degree of proficiency or level of performance that is sought 3) Goal
Intensity  or commitment is the process of setting the goal or
deciding how to reach it. Key steps in applying goal setting  diagnose
for readiness of goal setting, prepare employees by increasing
interpersonal interaction, communication, training, & action plans for
goal setting, emphasizing the attributes of the goals that should be
understood by a manager & subordinates, conducting intermediate
reviews to make necessary adjustments in established goals, review to
check the goals set, modified & accomplished. The more difficult the
goal, the higher the performance.
Reinforcement Theory: is based on Skinner’s work with operant
conditioning. When operant conditioning is applied to individuals, it’s
called behavior modification. In an organizational setting, it’s called
OB mod(ification). It is defined as the systematic reinforcement of
desirable organizational behavior and the nonreinforcement of
undesirable org. behavior. IE the purpose of OB mod  to set up
behavior reinforcement. Reinforcement  anything that both
increases the strength & frequency of behavior. Reinforcers are
often used to alter behavior in organizations. One must make the
reinforcement contingent on the desired behavior & the
reinforcement must come close enough after the behavior so the
association is made. Negative reinforcement refers to an increase in
the frequency of a response following removal of a negative
reinforcer immediately after the response. An event is a negative
reinforcer only if its removal increases the probability of future
behavior. Punishment is an uncomfortable consequence of a particular
behavioral response. The presence of the punishment decreases
future behavior. Research says results of punishment are not as
predictable, are less permanent and are accompanied by negative
attitudes toward the administrator of the punishment as well as to
the activity that led to the punishment. Extinction  the reduction
of undesirable behaviors (caused by withholding reinforcement &
usually causes a general fading of the behavior.) All 4 principles of
behavior modification are based on Thorndike’s Law of Effect  of
several responses to the same situation, those that are accompanied
or closely followed by satisfaction (reinforcement) will be more likely
to recur, those which are accompanied or closely followed by
discomfort will be less likely to occur. The timing of reinforcement is
critical to the strengthening of behavior. Continuous reinforcement
accelerates early performance & intermittent schedules are better at
maintaining behaviors. Criticisms of OB mod  there is no “real
change in behavior & people are essentially being bribed,” it doesn’t
consider a person’s beliefs, values, or mental processes (too
simplistic), behavior becomes dependent on the reinforcer (ie pay) and
will not be performed in the absence of the reinforcer & it doesn’t
account for observational learning, imitation, etc.
11. Draw, label and describe the Porter-Lawler integrated model of
motivation.
See page 6 in the course packet to draw/label this.
1)Value of Reward (Similar to valence)  the value of the reward
reflects the individual’s state on need satisfaction
Rewards come in the form of friendship with coworkers, raises,
promotions, feeling of accomplishment.
2) Perceived Effort- Reward Relationships  refers to the person’s
expectations that given amounts of reward depend upon given amounts
of effort.
3)Effort  refers to the amount of energy a person exerts in any
situation, that is, how hard the person is trying.
-effort is just the energy expended and not whether the effort is
successful or not.
4) Abilities and Traits  according to Porter and Lawler effort and
motivation does not directly lead to performance but is mediated by
individual abilities and role perceptions.
Abilities and Traits refer to individual characteristics like
intelligence, manual skills, and personality.
5) Role perceptions  refer to the kinds of activities people believe
are necessary to perform the job successfully. They deal with how
the employee defines their job and the types of effort they feel are
essential for effective performance.
6) Performance  the combination of the value of rewards and the
perceived effort-reward relationship creates expectancies about
performance. Performance comes after effort (motivation) has been
exerted. Depend on the amount of effort exerted, their abilities, and
their role perceptions.
7) Rewards  these are desirable outcomes. Extrinsic rewards – job
related – given by the organization in the form of supervision, pay,
status, working conditions, security, and fringe benefits. Intrinsic
rewards – administered by the individual themselves and include things
like achievement, self-recognition, the work itself, responsibility, and
personal growth. Intrinsic rewards are more likely to produce higher
job satisfaction.
8) Perceived Equitable Rewards (from equity theory) – refers to the
amount of rewards people feel they should receive as the result of a
given level of performance.
9) Satisfaction  refers to the person’s attitude on internal state.
To the degree that perceived equitable rewards exceed actual
rewards, a person is dissatisfied.
The Porter-Lawler model points out that satisfaction is only partially
determined by the actual rewards received. It also depends on what the
individual feels that the organization should reward them for a given level of
performance.
12. What factors influence group behavior? (ie size, roles, norms, etc)
size  usually ranges from between 2 and 16 with 12 being optimal form
open exchange
and effective decision making
roles  expected – behaviors determined by management
perceived – behaviors believed should be done
enacted – what actually is done
when these aren’t congruent, role conflict arises
norms  standards or rules shared by group members
they can only be formed when related to group activities
not always accepted by all group members
conformity is based on: personality (IE intelligence, needs), stimuli –
the more ambiguous, the more conformity, situational factors – group
size and structure (IE feelings of anonymity), Intragroup
relationships like types of pressure, success in achieving goals, &
degree of identification within the group
leadership  in a formal group leader has power based on position to
enforce sanctions
the informal leadership power based on status, seniority, respect etc
13. Discuss the relationship between group cohesiveness and group behavior.
Cohesiveness: strength of the members desires to remain in the group and
their commitment to the group. It is influenced by the degree of
compatibility between group goals and individual goals. Usually high
cohesiveness helps task completion because of the group working together
unless the cohesiveness is caused by goals that are contrary to the
organization’s goals.
Factors that induce/sustain cohesiveness in a group are: similarity of
attitudes and goals, the presences of external threats, small group size,
reward systems based on group performance, work unit assignments based
on personal preferences and isolation from other groups.
Cohesive groups generally have good communication, the members are
generally more satisfied than those in a noncohesive group, there is typically
more hostility in cohesive groups (that is directed toward those outside of
the group) & there is generally more productivity. Highly cohesive groups
are also more resistant to change.
14.
What is Groupthink? Discuss the symptoms of Groupthink and
how it can be corrected.
Groupthink is when alternatives are overlooked because the
group is strongly motivated to do something. (Challenger movie)
Symptoms:
-self censorship
-direct pressure
-mind guarding- Discouraging others to speak their mind
-presence of uniformity
-inherent morality
-creates invulnerability
-isolation
-stress
-budget factors
To avoid Groupthink:
-Create an open environment
-avoid isolating the group
-all group members should be critical evaluators
-avoid being too directive
15. What should a good model of decision making include?
A good model of a decision making process should include the
following steps. First, we need to identify and define the problem.
Next we need to come up with some possible solutions without regard
to the plausibility of each solution. Next, we need take the list of
solutions that we have generated and assess people, resources, time,
and equipment. After looking through the solutions and comparing
the solutions with resources a group must reach a consensus and
implement a decision. Finally after the decision has been implemented
the group needs to go back and review it’s decision making. This final
review will help to prevent mistakes that were made in the previous
decision making steps.
16. Distinguish between brainstorming, nominal groups, Delphi techniques
of decision-making.
Braining storming involves the lifting of criticism from ideals, no ideal
is to far fetched, no idea is too conservative, there is not single
owner of an idea, all ideas are shared by the group. The Delphi
technique, developed by the Rand Corp, is based on rounds of
questions, usually numbering in 2 or 3; in which several judges who do
not meet face-to-face look at collected questionnaires. The judges
come up with a consensus and the send out the questionnaire again.
They then collect the questionnaire again, make revisions and then
send it out again. In NGT or Nominal Group Technique, is often the
preferred method of decision making among the three because the
influence of some of the major roadblocks to effective decision
making are removed or at least lessened to a great extent. The basis
of the process is that all ideas are shared nonverbally, then the ideas
are structured and shared, each person in the group takes turns until
all ideas have been shared. The top 3 ideas are voted upon and the
one with the most votes forms the basis of the decision.
17. Describe the basic stages of teaming building:
Team building can be broken down into 5 main stages, forming stage in
which the group comes together and begin to become oriented with
the group structure, group members, and attitude of the group, the
storming stage in which the group works out individual differences,
conflicts and challenges within the group. The next stage is called
norming, in which, group members begin to agree on and accept the
structure of the group. This stage is followed by the performing
stage in which the group members openly share ideas and perceptions,
this allows for flexibility within the group. The final stage of
teambuilding is the adjourning phase in which the group ends due to
the lack of need for the group.
18. Describe 3 facilitators to teams and 3 inhibitors to teams.
Three facilitators of teams include commitment in terms of being
supported at a higher level, not necessarily controlled by that level.
Also a team needs access to the right type of information in a timely
fashion. The above two need to be supported by training and
development. It is not all that uncommon for a group of people to
expend a tremendous amount of energy on a project only to have the
project turn out wrong due being misdirected as a result of a lack of
training.
Three inhibitors to teams include, some people in the group will be
resistance to change no matter how small the change. Another
common inhibitor is impatience can kill a team long before it ever gets
under way. Interpersonal conflict also can serve as an inhibitor to
teams. In this instance members of the group become more
concerned with the “people” than the “idea”.
19. What is conflict? Distinguish between functional and dysfunctional
conflict.
Conflict is what exists when either people or groups have different
goals and or agendas and those goals and agendas come into contact
with one another or conflict may even arise if there is just the
possibility of those different goals and agendas coming into contact.
Conflict need not take on a negative connotation, if is a functional
type of conflict it can be used as a motivator to change, can lead to
solutions of problems, can lead to a greater understanding and
communication among group members, and on an individual level
conflict can cause people to rise to the occasion and grow as
individuals by applying new skills.
Dysfunctional conflict produces barriers to understanding, has a
detrimental affect on morale and self-esteem, and most importantly
it decreases productivity..
20. Describe 3 ways of resolving conflict.
Of course every situation is different but a manager and even
individual members have some tools they can use to resolve conflict.
One thing that everybody in the group can do is to search for
compatible interests, this gives every a deeper understanding of the
group members’ concerns. Another tactic is to look for similarities
instead of differences. Instead of looking at 4 ideas that are
completely different and do not seem to fit together at all, look for
what does fit no matter how small, and this will foster a growth of
understanding between group members. One of the most important
parts of dealing with conflict is to make sure you know what you want,
and then try to fit what you want within what the group wants. The
more you can convenience your idea is the groups idea the more likely
you will be in resolving the conflict in a productive manner.
21. Describe the major conflict resolution styles.
There are 4 major conflict resolution styles. Forcing is a type of
conflict resolution in which the person tends to resolve conflict by
being overly assertive and uncooperative. The use of the avoiding
style of conflict resolution is good only in the short run, but
eventually the problem will have to be confronted at a later time and
probably in a much larger magnitude. The compromising style of
conflict resolution is sort of the middle ground of the conflict
resolution styles in which no one wins and no one loses. This style
works fine for conflicts that can be divided equitably. The
Accommodating style of conflict resolution is characterized by taking
a cooperative unassertive approach. The Collaborating style of
conflict resolution is characterized by being assertive while at the
same time being open and cooperative.