CHAPTER 11

Question 1

These goals aim to take existing processes to new levels.

For instance, the organization may currently be selling 1,000 units per month but senior managers set a target of doubling this to 2,000. It is likely processes and products will remain the same, but they must be sold at a higher rate.

Answer 1

Vertical stretch goals

Question 2

These goals aim to change existing processes or products.

For example, an organization may have a hold in the deodorant market, but senior managers set a target or equalling this market share in the shampoo market.

Answer 2

Horizontal stretch goals

Question 3

What does SMART goals stand for?

Answer 3

Specific 
Measurable 
Achievable 
Realistic 
Time-bound

Question 4

What are the 4 components of Reinforcement Theory?

Answer 4

Positive Reinforcement
Negative Reinforcement
Punishment
Extinction

Question 5

Positive behavior followed by positive consequences

EX: Manager praises the employee after they meet a quota

Answer 5

Positive Reinforcement

Question 6

Positive behavior followed by removal of negative consequences

EX: When employees improve their productivity the manager stops nagging the employee

Answer 6

Negative Reinforcement

Question 7

Negative behavior followed by negative consequences

EX: Manager demotes the employee because they haven’t been productive for weeks

Answer 7

Punishment

Question 8

Negative behavior followed by removal of positive consequences

EX: Manager ignores the behavior to get the person to stop what they are doing

Answer 8

Extinction

Question 9

Expectancy
(EFFORT)
1) Will my effort lead to high performance?

Valence
(PERFORMANCE)
2) Will performance lead to outcomes?

Instrumentality
(REWARDS)
3) Do I find the outcomes desirable?

Answer 9

Expectancy Theory

Question 10

What is Maslow’s hierarchy of needs?

Answer 10

1. Physiological
2. Safety
3. Social
4. Self Esteem
5. Self Actualization