13. Business Flashcards
The study of human behavior in business and other organizational settings.
Industrial/organizational (I/O) psychology
The finding that workers who were given special attention increased their productivity regardless of what actual changes were made in the work setting.
Hawthorne effect
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.
Cybervetting
Questionnaires designed to test a job applicant’s honesty and character.
Integrity tests
An interview in which each job applicant is asked a standard set of questions and evaluated on the same criteria.
Structured interview
A structured setting in which job applicants are exhaustively tested and judged by multiple evaluators.
Assessment center
The process of evaluating an employee’s work within the organization.
Performance appraisal
The theory that leadership effectiveness is determined both by the personal characteristics of leaders and by the control afforded by the situation.
Contingency model of leadership
The theory that leadership effectiveness is determined by the amount of feedback and participation that leaders invite from workers.
Normative model of leadership
A leader who gains compliance and support from followers primarily through goal setting and the use of rewards.
Transactional leader
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.
Transformational leader
The theory that workers become motivated when they believe that their efforts will produce valued outcomes.
Expectancy theory
The tendency for people to inflate the value of objects, goods, or services they already own.
Endowment effect
The tendency for people to persist in failing investments to avert loss, which causes losses to mount.
Escalation effect
The economic rule of thumb that only future costs and benefits, not past commitments, should be considered in making a decision.
Sunk cost principle
