13. Business

Question 1

The study of human behavior in business and other organizational settings.

Answer 1

Industrial/organizational (I/O) psychology

Question 2

The finding that workers who were given special attention increased their productivity regardless of what actual changes were made in the work setting.

Answer 2

Hawthorne effect

Question 3

A controversial new practice by which employers use the internet to get informal, non-institutional data about applicants that they did not choose to share.

Answer 3

Cybervetting

Question 4

Questionnaires designed to test a job applicant’s honesty and character.

Answer 4

Integrity tests

Question 5

An interview in which each job applicant is asked a standard set of questions and evaluated on the same criteria.

Answer 5

Structured interview

Question 6

A structured setting in which job applicants are exhaustively tested and judged by multiple evaluators.

Answer 6

Assessment center

Question 7

The process of evaluating an employee’s work within the organization.

Answer 7

Performance appraisal

Question 8

The theory that leadership effectiveness is determined both by the personal characteristics of leaders and by the control afforded by the situation.

Answer 8

Contingency model of leadership

Question 9

The theory that leadership effectiveness is determined by the amount of feedback and participation that leaders invite from workers.

Answer 9

Normative model of leadership

Question 10

A leader who gains compliance and support from followers primarily through goal setting and the use of rewards.

Answer 10

Transactional leader

Question 11

A leader who inspires followers to transcend their own needs in the interest of a common cause, particularly in times of growth, change, and crisis.

Answer 11

Transformational leader

Question 12

The theory that workers become motivated when they believe that their efforts will produce valued outcomes.

Answer 12

Expectancy theory

Question 13

The tendency for people to inflate the value of objects, goods, or services they already own.

Answer 13

Endowment effect

Question 14

The tendency for people to persist in failing investments to avert loss, which causes losses to mount.

Answer 14

Escalation effect

Question 15

The economic rule of thumb that only future costs and benefits, not past commitments, should be considered in making a decision.

Answer 15

Sunk cost principle