Lecture 6

Question 1

Primacy effect

Answer 1

Once person has formed an initial impression, they maintain it even when presented with concrete evidence that it is false (first impressions)

Question 2

Recency effect

Answer 2

• People remember the most recently presented items or experiences

Question 3

Availability bias

Answer 3

when a person’s judgements are based on what most readily comes into a person’s mind (how many words start with R, easily remembered)

Question 4

Contrast effect

Answer 4

• comparisons based on what has happened just before we make a decision or judgement (interviewing job applicants)
• the most significant decision biases for a leader to guard against

Question 5

Halo error

Answer 5

Occurs when the rater’s overall positive (or negative) impression strongly influences ratings of specific attributes (performance appraisals)

Question 6

Sources of indecisiveness

Answer 6

• personality traits
• complex nature of situations faced in rapidly changing environments
  
  • lack of information
  • unclear or conflicting goals
  • uncertainty of outcomes

Question 7

Bounded rationality

Answer 7

Decision makers have limits on ability to assimilate large amounts of information

- organizational factors
- individual limits on the ability to process information
- perceptions

Question 8

Prospect theory

Answer 8

Focuses on risk perception

- people are risk-averse about gains

Question 9

Hindsight bias

Answer 9

• I knew it all along-effect
• people claim they would have estimated a probability of occurrence for a reported outcome that is higher than they would have estimated in foresight (without the outcome information).

Question 10

Overconfidence bias

Answer 10

• inflated confidence in how accurate a person’s knowledge or estimates are
• leaders with more power tend to have more overconfidence bias

Question 11

Escalation of Commitment

Answer 11

• individuals continue a failing course of action after receiving feedback that shows it isn’t working
• Sunk costs fallacy: continued commitment because a person has already invested in a course of action and does not recognize what they invested initially is sunk (gone)
• money already spent, pride issues, being unsure, need to finish what is started, self-interest, losing face

Question 12

Creative problem solving: Going with the Flow

Answer 12

• creative experiences are linked to emotional states called flow in which a person experiences a challenging opportunity aligned with her skills
• when both challenges and skills are balanced, people learn more during optimal flow experience

Question 13

Three-Component Model

Answer 13

• creative thinking skills are how adaptable and imaginative individuals in the organization are
• expertise (technical, processes and academic)
• (task) motivation refers to the intrinsic form of motivation

Question 14

Sources of organizational conflict

Answer 14

• Substantive Conflicts/Task Conflict (how to do the task)
• Affective Conflict/Relationship Conflict (interpersonal relationships)
• Process Conflict (who will do what)

All types of conflict are detrimental to member satisfaction, moderate levels of task conflict can improve team performance

+abusive supervision
+ deviant behaviors by coworkers

Question 15

Conflic resolution styles: Negotiation

Answer 15

Distributive Bargaining

• ‘fixed pie’ perspective
• hardball tactics - leads to higher economic outcomes
• Zero-Sum Game, Fixed Pie, Best Alternative to a Negotiated Agreement (BATNA), First-Offer-Effect (anchoring)

Integrative Bargaining

• tries to reach an agreement that satisfies all concerns and leads to higher emotional outcomes such as satisfaction and relationship development
• Expanding Pie (win-win),

Question 16

Conflict resolution styles: 3rd party interventions

Answer 16

Facilitation by the leader
Alternative dispute resolution
- Ombudsmen
- Peer review
- Mediation (independent 3rd party, common)
- Arbitration (3rd party having a say in the final decision, has a say in the result, and can make a decision)

Question 17

3 components of active listening

Answer 17

• Demonstrating moderate to high nonverbal involvement
• Reflecting the speaker’s message using verbal paraphrasing
• Asking questions that encourage

Question 18

Communication Networks

Answer 18

The grapevine (the informal network)
- emerges when the situation is important, ambiguous, and causes anxiety
- 3 characteristics: (1) not controlled by management, (2)  Perceived as being more believable and reliable, (3) Largely used to serve the self-interest of those willing to
communicate.