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ORG B 321 > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

4 Steps to Defining the right outcomes

A
  1. Don’t break the bank;
  2. Standards rule
  3. Don’t let the creed overshadow the message
  4. There are no steps leading to customer satisfaction
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2
Q
  1. Don’t break the bank;
A

employees must follow certain required steps for all aspects of their role that deal with accuracy or safety; great managers know that it is their responsibility to ensure that their employees know these steps and can execute them perfectly

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3
Q
  1. Standards rule
A

employees must follow required steps when those steps are part of a company or industry standard; standards enable us to communicate and drive learning and make comparison possible and fuel creativity

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4
Q
  1. Don’t let the creed overshadow the message
A

required steps are useful only if they do not obscure the desired outcome; greatest example is scripting for employees – employers put words into their mouths

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5
Q
  1. There are no steps leading to customer satisfaction
A

required steps only prevent dissatisfaction. They cannot drive customer satisfaction; companies do everything in their power to make customers happy

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6
Q

4 Levels of Customer Expectations

A
  1. Accuracy
  2. Availability
  3. Partnership
  4. Advice
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7
Q
  1. Accuracy
A
  1. Accuracy: expect their orders and expectations to carry through and be correct
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8
Q
  1. Availability:
A

they expect companies to be available, flexible, and open for them whenever the customer needs them; need instant satisfaction and gratification

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9
Q
  1. Partnership:
A

they want the company to listen to them, be responsive to them, make them feel they’re on the same side

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10
Q
  1. Advice:
A

customers feel the closest bond to organizations that have helped them learn; if companies succeed at partnership and advice than they will have transformed prospects into advocates for their company, brand, and products.

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11
Q

Goal Setting Theory

A

Acceptance (accepting the goal & committing)
SMART (set good quality goals)
Feedback (people see their work is being evaluated and their contributions are being recognized)

leads to…
Task Effort

which leads to…
Task Performance

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12
Q

SMART

A

Set goals with employees and get feedback how you are progressing towards those goals; if you set good goals than people will be more focused

  • Specific
  • Measurable
  • Aggressive (or Assignable)
  • Realistic
  • Time-based
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13
Q
  1. What is right for your company or organization?
A

a. Maintain the company’s mission, but you may have to change the strategy in order to execute the mission effectively; constant reassessment of strategy is vital to the health of the company

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14
Q
  1. What is right for the individual or employee?
A

a. Take each person’s talents into account and tailor the outcomes to each individual; go from the players to the play

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15
Q

ESSAY Q for defining the right outcomes: 4. For essay question: How do you define the right outcomes for each of these criteria? How do you answer these questions?

A

Customer Outcomes – SRR (p. 134)
• Satisfaction overall
• Repurchase likelihood
• Recommend likelihood

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16
Q

What is the most powerful influence over our job performance??

A

mental ability, or cognitive abilities

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17
Q

Perceptions of organizational justice and interpersonal relationships;

A

when employees feel that they are being fairly treated by the company, being supported, and trust people they work with, then performance is better.

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18
Q

Stress also determines

A

performance level; mental energies are drained when stressed and performance suffers

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19
Q

Work attitudes, particularly job satisfaction correlates with???

A

are also correlates of job performance

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20
Q

Which personality traits are most strongly correlated with job performance??

A
  1. conscientiousness
  2. emotional intelligence
  3. proactive personality
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21
Q

Turnover:

A

employee leaving an organization; voluntary or involuntary; high turnover has potentially harmful consequences for the organization; turnover is particularly a problem when high-performing employees leave but when low-performers leave it could actually help the company improve productivity.

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22
Q

4 major leadership theories:

A
  1. Behavioral
  2. Situational Leadership
  3. Transformational (4 step process)
  4. Leader-Member Exchange (LMX)
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23
Q
  1. Behavioral - 2 orientations
A
  • People-oriented: consideration; showing mutual trust and respect; concern for employee needs; desire to look out for employee welfare
  • Task-oriented: initiating structure; assign specific tasks; ensure employees follow rules; push employees to reach peak performance; ensure that organizational goals are met
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24
Q
  1. Situational Leadership
A
  • Leaders must use the right style of behaviors at the right time in each employee’s development
  • Leaders need to realize the competence and commitment level of employees to determine what behavior – either directing behavior, coaching, or supporting
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25
Q

Situational Leadership 3 questions

A
  1. how much control do I have in this situation? 2. How able and willing are my followers to follow?
  2. How urgent is the situation?
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26
Q

Transformational (including 4-step process)

A

• Lead employees by aligning employee goals with the leader’s goals – these employees begin focusing on the company’s well-being rather than on what is best for them as individual employees
• Creating a vision
• Communicating the vision
• Modeling the vision: the leader needs to be meek and be a role model
• Building commitment
• Charisma + 3 I’s
o Individual consideration: show personal care and concern for the well-being of their followers
o Intellectual stimulation: challenge organizational norms and status quo and encourage employees to think creatively and work harder
o Inspirational motivation: come up with a vision that is inspiring to others

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27
Q

Charisma (3 i’s)

A

Individual consideration: show personal care and concern for the well-being of their followers
o Intellectual stimulation: challenge organizational norms and status quo and encourage employees to think creatively and work harder
o Inspirational motivation: come up with a vision that is inspiring to others

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28
Q

Individual consideration:

A

show personal care and concern for the well-being of their followers

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29
Q

Intellectual stimulation:

A

challenge organizational norms and status quo and encourage employees to think creatively and work harder

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30
Q

Inspirational motivation:

A

Inspirational motivation: come up with a vision that is inspiring to others

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31
Q

Leader-Member Exchange (LMX)

A

Proposes that the type of relationship leaders have with their followers (members of the organization) is the key to understanding how leaders influence employees
• An in-group and an out-group; competence helps you get into the in-group; you want to be in the in-group
• In-group is the one that the leader trusts the most and turns to first
• High-quality LMX relationships: leader and member are ready and willing to go above and beyond job description to help each other out; they respect each other and have good trust
• Low-quality LMX relationships: relationship is just purely what is in the job description and nothing beyond that; relationship does not involve high levels of loyalty or obligation towards each other

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32
Q

Heart of Leadership:

A
  1. vision (passion with a plan)
  2. integrity (do what you say you will do)
  3. service (develop and encourage each other)
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33
Q

2 Decision Making Approaches

A
  1. Rational

2. Satisficing

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34
Q

Rational Decision Making

A

used for higher stakes decisions. Try to optimize the decision.

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35
Q

Perception Errors (PHeCeS)

A
  • Projection: project our way of looking at the world to make judgments about the behaviors of others
  • Halo Effect: we focus on an observable characteristic of someone else to make inferences about other characteristics we cannot (or have yet to) observe
  • Contrast Effect: we perceive an event or individual based on comparisons to similar events/individual before or after the current interaction
  • Stereotyping: generalizations based on group characteristics and then pushed onto an individual; may be negative, positive, or neutral; self-fulfilling prophecies occur—you treat the individual according to stereotype and they generally react in the way you think and it “confirms” the stereotype for you; selective perception—pay selective attention to parts of the environment that we want to observe
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36
Q

Decision Making Trap

A
  • Escalation of Commitment

- Overconfidence bias

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37
Q

Negotiation Principles

A
  • BATNA
  • RP
  • Anchoring
  • Know what you are worth
  • Examine beyond base pay (Total compensation package, Look 3-5 years out)
  • Know what you want and what you aren’t willing to compromise
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38
Q

Lessons from Home Depot

A
  • Calculation of turnover costs: decrease turnover and how much savings that can have for a company especially the size of Home Depot
  • Customer satisfaction that they weren’t doing well on – solved with more aprons on the floor; provide expertise to customers when they need it
39
Q

Lessons from Indra Nooyi

A

Performance with Purpose

  1. Having healthier foods
  2. Focusing on sustainability

Collaborative Style
-kept on other CEO candidate

Mentoring & Other Relationships

Assume that People have Good Intentions

40
Q

Job Characteristics Model

A

Core Job Characteristics

Skill variety
Task Identity
Task Significance
(Is the task important to the company - does it actually matter)

Autonomy
(Is there a more efficient system - how can you better the process given to you)

Feedback from job

41
Q

When to use the Job Characteristics Model

A

When there’s an abnormally high turnover rate in a specific role - could be too stressful, but generally the job is boring/not challenging

42
Q

Goal Setting Theory

A

Acceptance
SMART
Feedback

leads to…
Task Effort

which leads to…
Task Performance

43
Q

SMART

A
  • Set goals with employees and get feedback how you are progressing towards those goals; if you set good goals than people will be more focused
  • Specific
  • Measurable
  • Aggressive
  • Realistic
  • Time-based
44
Q

Motivation

A

•An individual’s direction, intensity, and persistence of effort

45
Q

Motivation characteristics

A
  • Need: creates desire to fulfill needs (companies provide free food to employees)
  • Behavior: results in actions to fulfill needs
  • Rewards: satisfy needs; intrinsic or extrinsic rewards
  • Feedback: reward informs person whether behavior was appropriate and should be used again
46
Q

Daniel Pink - What Motivates Us

When do external rewards improve performance?

A

As long as they’re less than rudimentary; higher reward = bad performance

47
Q

How much money do you need to pay employees?

A

Enough to make it a non-issue

48
Q

3 key motivators for high engagement

A
  1. Autonomy
  2. Mastery
  3. Purpose
49
Q

3 key motivators for high engagement: Autonomy

A

driving your own life and ideas; get out of employees’ ways; the chance for creativity

50
Q

3 key motivators for high engagement: Mastery

A

want to be really good at something; desire to keep doing something over and over for practice

51
Q

3 key motivators for high engagement: Purpose

A

makes coming to work better and you receive better talent; bad things happen with no purpose

52
Q

Motivation Theories/Frameworks

A
  1. Equity Theory
  2. Expectancy Theory
  3. Reinforcement (Methods & Schedules)
53
Q

Equity Theory

A

• Outcome/input ratio
o Diverse outcomes and inputs—hard to determine ratio
o Weights of outcomes and inputs vary from person to person
• Comparison to others
o Person or people with whom we compare ratios
o Not easily identifiable
• Consequences of inequity
o Change inputs or outcomes
o Distort perceptions of own or others’ ratios
o Change comparison reference
o Leave inequitable situation

54
Q

Expectancy Theory

A
  • Effort to performance to valued outcomes
  • E to P (expectancy): do I have enough confidence to do something, do I know what is expected of me to know what level of effort is required for me
  • P to Rewarded (valued outcome and instrumentality): is my performance what is rewarded in this organization
  • Do I care about the rewards? Valence of outcomes
  • Expectancy: make sure employees have proper skills, abilities, and knowledge; ensure that the environment facilitates performance; provide encouragement to make people believe that their effort makes a difference
  • Instrumentality: reward employee performance; inform people in advance about the rewards; try to eliminate non-performance influence over rewards
  • Valence: find rewards that are desirable to employees; make sure that the rewards are viewed as fair; give employees choice over rewards
55
Q

Reinforcement (Methods & Schedules)

A
  • Positive reinforcement: positive behavior followed by positive consequences (manager praises the employee)
  • Negative reinforcement: positive behavior followed by removal of negative consequences (manager stops nagging the employee)
  • Punishment: negative behavior followed by negative consequences (manager demotes the employee)
  • Extinction: negative behavior followed by removal of positive consequences (manager ignores the behavior and hopefully the bad behavior ends)
  • Continuous: every time you perform a certain behavior, you receive a reward/reinforcement; e.g. salesperson receives commission every time he/she makes a sale
  • Fixed ratio: you know when reinforcement will come, but not continuous; want people to continue to repeat a behavior; involve providing rewards every nth time the right behavior is demonstrated. An example of this would be giving the employee a bonus for every tenth sale he makes
  • Variable: don’t know when reward comes, but know what the reward is; bigger payouts – not everyone gets one; involves providing the reinforcement on a random pattern, such as praising the employee occasionally when the person shows up on time
  • Fixed interval: e.g. paycheck (scheduled); involve providing rewards after a specified amount of time. An example of this is giving end-of-the year bonuses
  • Variable interval:
56
Q

Big Five Model

A
  1. Openness (to experiences)
  2. Conscientiousness
  3. Extraversion
  4. Agreeableness
  5. Neuroticism
57
Q

Openness (to experiences)

A

• Openness (to experiences): curious, original, intellectual, creative, and open to new ideas
o More likely to have jobs with a creative component and more open to changes in their tasks; open-mindedness leads them to seek a lot of info and feedback on how they are doing and to build relationships, which leads to quicker adjustments to a new job

58
Q

Conscientiousness

A

• Conscientiousness: organized, systematic, punctual, achievement-oriented, and dependable
o One personality trait that uniformly predicts how high a person’s performance will be across a variety of occupations and jobs; tend to have high credit scores when high in conscientiousness; trait most desired by recruiters and tend to succeed most in interviews; higher levels of motivation and low levels of turnover; valuable trait for entrepreneurs; whey they experience failure the well-being of conscientious people is much more negatively affected

59
Q

Extraversion

A

• Extraversion: outgoing, talkative, sociable, and enjoys being in social situations
o Effective in jobs involving sales and as managers and they demonstrate inspirational leadership behaviors; effective in job interviews because they do well in social situations; happier at work and more easily adjust to new jobs; tend to have higher levels of absenteeism at work

60
Q

Agreeableness

A

• Agreeableness: nice, tolerant, sensitive, trusting, kind, and warm
o Likeable and get along with others; help others at work and this helping behavior doesn’t depend on their good mood; less likely to retaliate when people treat them poorly; create a positive environment when in a leadership position; regarded as highly ethical leaders; avoid conflict and may miss opportunities for initiating constructive change or may get into difficulties while attempting to please others

61
Q

Neuroticism

A

• Neuroticism – CIA, FBI types, anxious, irritable, aggressive, temperamental, and moody
o Scoring high is undesirable; difficulties found in problems with handling stress; experience a lot of anger when confronted with daily hassles of their work; more likely to drink after hours to their daily stress; trouble forming and maintaining relationships; less likely that people come to them for advice and friendship

62
Q

Perception - Attribution Theory

A

Attribution Theory: helps us answer the question: “Why is this person behaving that way?” We will make significantly different decisions based on whether we attribute others’ behaviors to internal factors (that is just how that person is) or to external factors (something in that employee’s environment is causing this behavior).

63
Q

Attribution Biases

A
  1. Fundamental Attribution Error

2. Self-Serving Bias

64
Q

Fundamental Attribution Error

A
  • Over-estimate the internal causes instead of the external factors
  • Example: Moroni and Pahoran
  • This focuses on others
65
Q

Self-Serving Bias

A
  • Positive outcome we attribute to self
  • Negative outcomes we blame on external factors
  • Understanding ourselves and our own outcomes
66
Q

Perception Errors (PHeCeS)

A
  • Projection: project our way of looking at the world to make judgments about the behaviors of others
  • Halo Effect: we focus on an observable characteristic of someone else to make inferences about other characteristics we cannot (or have yet to) observe
  • Contrast Effect: we perceive an event or individual based on comparisons to similar events/individual before or after the current interaction
  • Stereotyping: generalizations based on group characteristics and then pushed onto an individual; may be negative, positive, or neutral; self-fulfilling prophecies occur—you treat the individual according to stereotype and they generally react in the way you think and it “confirms” the stereotype for you; selective perception—pay selective attention to parts of the environment that we want to observe
67
Q

First, Break All the Rules - Managing Around Weaknesses

A

• Confront poor performance head on by asking 2 questions:

  1. Is the poor performance trainable?
  2. Is the nonperformance caused by the manager himself tripping the wrong trigger?

• Distinguish between a nontalent and a weakness
o A nontalent becomes a weakness when it is needed for a job (e.g. a server with a nontalent for remembering names - this becomes a wekness when the “regulars” want their names remembered)

  • Devise a support system to help cure a weakness
  • Find a complementary partner: when you have weaknesses, find a partner that has those weaknesses as strengths to “complete” you; capitalize on who you are and not by trying to fix who you are
  • Find an alternative role: even after trying to manage around an individual’s weaknesses, sometimes still nothing works and it may be a “casting error” and you have to get the employee to move out
68
Q

5 Types (or Sources) of Power*

A
  • Legitimate power (thumb):
  • Expert power (index):
  • Coercive power (middle):
  • Reward power (ring):
  • Referent power (pinky):
69
Q

Legitimate power (thumb):

A

based upon an individual’s position in the formal hierarchy; power that comes from the person’s organizational role or position

70
Q

Expert power (index):

A

based upon an individual’s special knowledge and/or skills; long-time employees a good example

71
Q

Coercive power (middle):

A

based upon fear, intimidation, and the capacity to control punishment; forces people to do something that ordinarily they would not choose to do; most extreme example is government dictators who threaten physical harm for noncompliance

72
Q

Reward power (ring):

A

based upon the capacity to control distribution of valued rewards; ability to grant a reward such as an increase in pay, a perk, or an attractive job assignment; tends to accompany legitimate power and is highest when the reward is scarce

73
Q

Referent power (pinky):

A

based upon admired personal qualities and reputation; often called charisma – the ability to attract others, win their admiration, and hold them spellbound

74
Q

Which sources of power are organizational and personal?

A

Expert and referent power are personal sources – the other powers are your position in the organization

75
Q

Consequences of misuse of power

• Focus on expert and referent power
Focus on legitimate and reward power
• Focus on coercive power

A
  • Focus on expert and referent power = engagement from employees
  • Focus on legitimate and reward power = compliance from employees
  • Focus on coercive power = resistance from employees
76
Q

Influence Tactics (Big 3)

A
  1. Rational persuasion:
  2. Credibility
  3. Inspirational appeals:
77
Q

Rational persuasion:

A

using facts, data, and logical arguments to try to convince others that your point of views is the best alternative; most commonly applied influence tactic

78
Q

Credibility:

A

sometimes you already have a reputation

79
Q

Inspirational appeals:

A

seeks to tap into our values, emotions, and beliefs to gain support for a request or course of action; effective inspirational appeals are authentic, personal, big-thinking, and enthusiastic

80
Q

Fascination with an “objective” criterion:

A

managers seek to establish simple, quantifiable standards against which to measure and reward performance

81
Q

Overemphasis on visible behaviors

A

easier to measure; team-building and creativity are other examples of behaviors which may not be rewarded simply because they are hard to observe

82
Q

Emphasis on other ends:

A

instead of efficiency; emphasis on morality or equity rather than efficiency

83
Q 
Kerr article: faulty rewards
Main Causes (4)
A

Fascination with an “objective” criterion: Overemphasis on visible behaviors
Hypocrisy: what behaviors are really desired
Emphasis on other ends:

84
Q

How to Fix Faulty Reward Systems

A

• Managers who complain about lack of motivation in their workers may be rewarding behavior that they aren’t actually seeking
o Explore what types of behavior are currently being rewarded
o For an organization to act upon its members, the formal reward system should positively reinforce desired behavior, not constitute an obstacle to overcome

85
Q

Rewarding Employees (Organizational)

A

stock ownership, stock options, profit sharing (amount determined by how long you’ve been at the company and your organizational position)

86
Q

Team rewards

A

Gainsharing (based on some performance metric on team), bonuses

87
Q

Rewarding Employees (Individual)

A

gainsharing (based on some performance metric on team), bonuses
• Individual: piece rate (employees paid based on individual output they produce), commissions, bonuses (don’t have to be attached to performance), merit pay (employees given a permanent pay raise based on past performance), awards

88
Q

Dimensions of Organizational Justice (2)

A
  • Distributive justice:

* Procedural justice:

89
Q

Distributive justice:

A

the allocation of the reward and if I believe it was fair (layoffs, bonus, promotions, etc.)

90
Q

Procedural justice:

A

the process that led to the distribution; can it be explained to me correctly and do I think it was fair; fairness of the processes that lead to the decisions about employment outcomes

91
Q

3 principles from first, break all the rules:

A
  1. We can’t all “be anything we want to be” or we would all have the same potential and lose our individuality
  2. Good managers should be able to describe in detail the unique talents of each of his or her own people
  3. Help each person become more of who he already is because each person is different with a unique set of talents, pattern of behaviors, passions, and yearnings
92
Q

How managers apply 3 principles from first break all the rules:

A
  1. Cast people in the right roles
  2. Manage by exception
    a. Break the Golden Rule – don’t treat people how you would want to be treated
    b. Ask your people – about their goals, preferences, relationships, etc.
  3. Spend the most time with your best people
  4. Manage around weaknesses
    a. Confront poor performance head on by asking 2 questions
    b. When the weakness is a non-talent
    i. Support system, complementary partner, alternative role
93
Q

Spend Most Time with Best People

A

• Managers spend time with their best people and rack their brains on trying to figure out better and better ways to unleash that employee’s distinct talents
o carve out a unique set of expectations that will stretch and focus each particular individual
o highlight and perfect each person’s unique style; draw attention to it; help understand why it works for him/her and how to perfect it
o plot how the manager can run interference for each employee so that each can exercise his or her talents even more freely
o ^^^ doing these things will help managers be drawn toward the most talented employees
• Spending time with the best is a manager’s most productive time
• Investing in your best is…
o The fair thing to do
o The best way to learn
• Excellence is not the opposite of failure
• “best practices” should not be only an external exercise
o The only way to reach excellence

ORG B 321 (5 decks)

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