Management Final Exam Flashcards
Motivation
The psychological processes that arouse and direct goal-oriented behavior
Intrinsic Rewards
The natural rewards and satisfaction that comes from performing a task itself
Maslow’s 5 levels of need
- ) Physiological
- ) Safety
- ) Love
- ) Esteem
- ) Self-Actualization
Alderfer’s 3 basic needs that influence bahavior
ERG
- ) Existence
- ) Readiness
- ) Growth
Positive Reinforcement
The use of positive consequences to strengthen a particular behavior
Negative Reinforcement
The process of strengthening a behavior by withdrawing something negative
Extinction
The method to weaken a behavior by ignoring it or making sure it is not reinforced
Punishment
The process of weakening a behavior by presenting something negative or withdrawing something positive
Expectancy Theory
The theory that suggests that people are motivated by
- ) How much they want something
- ) How likely they think they are to get it
Instrumentality
According to Expectancy Theory, this is the outcome I think I will receive if I perform at this level
Valence
According to Expectancy Theory, This is how much I want the outcome
Equity Theory
The motivational theory that asks how fairly do I think I am being treated in relation to others
What is goal-setting Theory?
The motivation theory that suggests that people can be motivated by objectives that are specific and challenging but achievable
Theory X
Basically negative and assumes that employees inherently dislike work and, whenever possible, will attempt to avoid it
Theory Y
Basically positive and assumes that employees can view work as being as natural as rest or play
McClelland’s 3 Needs
- ) Achievement
- ) Affiliation
- ) Power
What do the 3 Needs do, according to McClelland?
They determine people’s behavior in the workplace
Herzberg
Proposed that work satisfaction arises from motivating factors and work dissatisfaction arises from hygeine factors
Job Characteristics Model characteristics
- ) Skill Variety
- ) Task Identity
- ) Task Significance
- ) Autonomy
- ) Feedback
What seemingly outrageous benefit are companies like Virgin and Netflix offering employees?
Seemingly Unlimited Vacation Time
What company could have created the personal computer but instead gave their idea to Steve Jobs?
Xerox
3 Stages of Lewin’s Change Model
- ) Unfreezing
- ) Changing
- ) Refreezing
What happens in the Unfreezing stage of Lewin’s Change Model?
Creating motivation for change
What happens in the Changing stage of Lewin’s Change Model?
Learning new ways of doing things
What happens in the Refreezing stage of Lewin’s Change Model?
Making new ways normal
What are Kotter’s 8 steps to Leading Organizational Change?
- ) sense of urgency
- ) guiding coalition
- ) vision and strategy
- ) Communicate the vision
- ) broad-based action
- ) short-term wins
- ) Consolidate gains
- ) Anchor new approaches
What are 4 of the many reasons for resisting change?
- ) Fear of the unknown
- ) Personality - Predisposition to change
- ) Fear of Failure
- ) WIIFM (Whats in it for me)
One of the best ways organizations can innovate
Embrace failure. Experiment. Learn. Repeat.
What is the purpose of the Strategic Human Resource Process?
To get optimal work performance to help realize the company’s mission and vision
Job Description
Summarizes what the holder of the job does and how and why he or she does it
What legislation first established the US Federal minimum wage?
Fair Labor Standards Act of 1938
What legislation established the Equal Employment Opportunity Commission?
The Civil Rights Act
What act prohibits the discrimination against essentially equally qualified employees with physical or mental disabilities or chronic illness and requires reasonable accommodation be provided so they can perform duties?
Americans with Disabilities Act
Quid Pro Quo Sexual Harassment
When employment outcomes, such as hiring, promotion, or simply keeping one’s job, depend on whether an individual submits to sexual advances
Hostile work environment (in terms of sexual harassment)
What results when unwelcome and demeaning sexually-related behavior creates an intimidating or offensive workplace
Unstructured Interview
The type of interview when the hiring manager asks probing questions in a conversational way to find out what the candidate is like. No fixed set of questions
Behavioral Description Interview
Structured Interview. The interviewer asks questions exploring what the candidate has actually done in the past
Reliability
The degree to which a test measures the same thing consistently
Forced Ranking
All employees within a business are ranked against one another and grades are distributed along some sort of bell curve
What was Barcelona Restaurant Group’s 3-step hiring process?
- ) The interview
- ) The Spend
- ) The Trial
Selection Test Examples:
in-basket exercise, assessment center, leaderless group discussion, and a cognitive ability test
Whistle Blowers
Employees who raise ethical concerns or issues in an organization
What are the 4 Levels of Carroll’s Global Corporate Social Responsibility Pyramid?
- ) (BOTTOM) Economic Responsibility
- ) Legal Responsibility
- ) Ethical Responsibility
- ) (TOP) Philanthropic Responsibility
What does Economic Responsibility mean in Carroll’s Pyramid?
- ) Do what is required by global capitalism
2. ) Be Profitable
What does Legal Responsibility mean in Carroll’s Pyramid?
- ) Do what is required by global stakeholders
2. ) Obey the law
What does Ethical Responsibility mean in Carroll’s Pyramid?
- ) Do what is expected by global stakeholders
2. ) Be ethical
What does Philanthropic Responsibility mean in Carroll’s pyramid?
- ) Do what is desired by global stakeholders
2. ) Be a good global corporate citizen
Who proposed 3 levels of moral development?
Laurence Kohlberg
What are the 3 levels of moral development according to Kohlberg?
- ) Preconventional
- ) Conventional
- ) Postconventional
Preconventional level of moral development
People tend to follow rules and obey authority to avoid unpleasant consequences
Conventional level of moral development
People are conformist, but not slavish, generally adhering to the expectations of others in their lives
Postconventional Level of Moral Development
Managers are independent souls who follow their own values and standards, focusing on the needs of their employees and trying to lead by empowering these working for them
What is Milton Friedman’s famous quote?
A company will become distracted from its task to maximize profits when it practices social responsibility
Corporate Social Responsibility
The notion that companies are expected to go above and beyond following the law and making a profit
What does the ethical intensity model do?
Evaluates the impact of a decision based on the intensity of the issue
Motivation
The psychological processes that arouse and direct goal-directed behavior
Extrinsic Reward
The payoff, such as money, that a person receives from others for performing a particular task
Intrinsic Rewards
The satisfaction, such as a feeling of accomplishment, that a person receives from performing the particular task itself
Content Perspectives
Need Based Perspectives
Need Based Perspectives
Theories that emphasize the needs that motivate people
Needs
Physiological or psychological deficiencies that arouse behavior
4 Content Perspective Theories
- ) Maslow’s Hierarchy of Needs
- ) Alderfer’s ERG Theory
- ) McClelland’s Acquired Needs Theory
- ) Herzberg’s 2-Factor Theory
What does Maslow’s Hierarchy of Need do?
Proposes that people are motivated by 5 levels of need
What are Maslow’s 5 levels of need? (Bottom to Top)
- ) Physiological
- ) Safety
- ) Love
- ) Esteem
- ) Self-Actualization
What does Alderfer’s ERG Theory do?
Assumes that 3 basic needs influence behavior
What does ERG stand for? (What are Alderfer’s 3 basic needs?)
- ) Existence
- ) Relatedness
- ) Growth
What does McClelland’s Acquired Needs Theory do?
States that 3 needs are major motives for determining people’s behavior in the workplace
What are the 3 needs in McClelland’s Theory?
- ) Achievement
- ) Affiliation
- ) Power
What does Herzberg’s 2-Factor Theory do?
States that work satisfaction and dissatisfaction arise from two different factors.
What are Herzberg’s 2 Factors?
- ) Work Satisfaction arises from motivating factors
2. ) Work Dissatisfaction arises from hygiene factors
What are motivating factors according to Herzberg?
Factors associated with job satisfaction that affect the job content or the rewards of work performance.
Ex: Achievement, Recognition, and Advancement
What are hygiene factors, according to Herzberg?
Factors associated with job dissatisfaction that affect the job context in which people work.
Ex: Salary, Working Conditions, Interpersonal Relationships, Company Policy
Process
Concerned with the thought processes by which people decide how to act
What are the 3 Process Perspectives?
- ) Equity Theory
- ) Expectancy Theory
- ) Goal-Setting Theory
Equity Theory
Focuses on employee perceptions as to how fairly they think they are being treated compared to others
Elements of Equity Theory
- ) Inputs
- ) Outputs or Rewards
- ) Comparison
Inputs of Equity Theory
What do you think you’re putting into the job
Outputs or Rewards of Equity Theory
What do you think you’re getting out of the job?
Comparison of Equity Theory
How do you think your ratio of inputs and rewards compares with those of others?
What are the 3 ways to use Equity Theory to Motivate Employees
- ) Employee Perceptions
- ) Employee Participation
- ) Having an Appeal Process
Expectancy Theory
Suggests that people are motivated by 2 Things: How much they want something, and how likely they think they are to get it
What are the 3 Elements of the Expectancy Theory?
- ) Expectancy
- ) Instrumentality
- ) Valence
Expectancy
The belief that a particular Level of effort will lead to a particular level of performance
Instrumentality
The expectation that successful performance of the task will lead to the outcome desired
Valence
The importance a worker assigns to the possible outcome or reward
How to Use Expectancy Theory to Motivate Employees
- ) Make sure they value the rewards
- ) Make sure they know what objectives and performance levels you desire
- ) Make sure rewards are linked to performance
- ) Make sure employees believe you will deliver the right rewards for the right performance
Goal-Setting Theory
Suggests that employees can be motivated by goals that are specific and challenging but achievable
How to achieve goals in goal setting theory
- ) Set specific goals
- ) Make goals challenging but achievable
- ) Link goals to action plans
- ) Goals don’t have to be set jointly to be effective
- ) Give feedback
Job Design
The division of an organization’s work among its employees and the application of motivational theories to jobs to increase satisfaction and performance
Job Simplication
The process of reducing the number of tasks a worker performs
Job Enlargement
Increasing the number of tasks in a job to increase variety and motivation
Job Enrichment
Building into a job motivating factors such as responsibility, achievement, recognition, stimulating work, and advancement
What are the 5 Characteristics of the Job Characteristics Model?
- ) Skill Variety
- ) Task Identity
- ) Task Significance
- ) Autonomy
- ) Feedback
Skill Variety
How many different skills does your job require?
Task Identity
How many different tasks are required to complete the work?
Task Significance
How many people are affected by your job?
Autonomy
How much discretion does your job give you?
Feedback
How much do you find out how well you’re doing?
What are the 3 psychological states that the Job Characteristics Model affects?
- ) Motivation
- ) Performance
- ) Satisfaction
Reinforcement Theory
Attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated.
Reinforcement
Anything that causes a given behavior to be repeated or inhibited
4 Types of Reinforcement
- ) Positive
- ) Negative
- ) Extinction
- ) Punishment
Positive Reinforcement
The use of positive consequences to strengthen a particular behavior
Negative Reinforcement
The process of strengthening a behavior by withdrawing something negative
Extinction
The weakening of behavior by ignoring it or making sure it’s not reinforced
Punishment
The process of weakening behavior by presenting something negative or withdrawing something positive
Pay for Performance
Bases pay on one’s results
Pierce Rate
Employees are paid according to how much output they produce
Sales Commission
Sales representatives are paid a percentage of the earnings the company made from their sales
Bonuses
Cash awards given to employees who achieve specific performance objectives
Profit Sharing
The distribution to employees of a percentage of the company’s profits
Gainsharing
The distribution of savings or “gains” to groups of employees who reduced costs and increased measurable productivity
Stock Options
Certain employees are given the right to buy stock at a future date for a discounted price
Pay for Knowledge
Ties employee pay to the number of job-relevant skills or academic degrees they earn
Human Resource (HR) Management
The activities managers perform to plan for, attract, develop, and retain an effective workforce.
Strategic Human Resource Management Process
Get optimal work performance to help realize company’s mission and vision
What are the steps of the Strategic Human Resource Management Process?
- ) Establish the Mission and Vision
- ) Establish the Grand Strategy
- ) Formulate the strategic plans
- ) Plan human resources needed
- ) Recruit and select people
- ) Orient, train, and develop
- ) Perform appraisals of people
Human Capital
The economic or productive potential of employee knowledge, experience, and actions
Knowledge Worker
Someone whose occupation is principally concerned with generating or interpreting information, as opposed to manual labor
Social Capital
The economic or productive potential of strong, trusting, and cooperative relationships
Strategic Human Resource Planning
Developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs
Job Analysis
Determine, by observation and analysis, the basic elements of a job
Job Specification
Describes the minimum qualifications a person must have to perform the job successfully
Human Resource Inventory
A report listing your organization’s employees by name, education, training, languages, and other important info
National Labor Relations Board
Enforces procedures whereby employees may vote to have a union and for collective bargaining
Collective Bargaining
Consists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security
Fair Labor Standards Act of 1938
Established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage
Equal Employment Opportunity Commission
Enforce anti-discrimination and other employment-related laws
Workplace Discrimination
Occurs when people are hired or promoted - or denied hiring or promotion - for reasons not relevant to the job
Adverse Impact
Occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class over another group of people
Disparate Treatment
Results when employees from protected groups are intentionally treated differently
Affirmative Action
Focuses on achieving equality of opportunity within an oganization
2 Types of Sexual Harassment
- ) Quid Pro Quo
2. ) Hostile Environment
Quid Pro Quo Sexual Harassment
The person to whom the unwanted sexual attention is directed is put in the position of jeopardizing being hired for a job or obtaining job benefits
Hostile work Environment Sexual Harassment
Doesn’t affect hiring or firing but still awkward
Two types of recruiting
- ) Internal
2. ) External
Unstructured Interview
Involves asking probing questions to find out what the applicant is like
Structured Interview
Involves asking all applicants the same questions and comparing their responses to a standardized set of answers
Situational Interview
The interviewer focuses on hypothetical situations
Behavioral-Description Interview
The interviewer explores what applicants have actually done in the past
Reliability
The degree to which a test measures the same thing consistently
Validity
The test measures what it purports to measure and is free of bias
What are the 5 steps of the training process?
- ) Assessment
- ) Objectives
- ) Selection
- ) Implementation
- ) Evaluation
Performance Appraisal
Consists of assessing an employee’s performance and providing him or her with feedback
Performance Management
The continuous cycle of improving job performance through goal setting, feedback, and coaching, and rewards and positive reinforcement.
What are the 3 parts of Compensation?
- ) Wages or salaries
- ) Incentives
- ) Benefits
Labor Unions
Organizations of employees formed to protect and advance their members’ interests by bargaining with management over job-related issues
Right to Work Laws
Not everyone in an organization has to join the union
2-Tier wage contracts
Veteran employees make more than new employees
Cost-of-Living Adjustment (COLA) Clause
Future wage increases must be adjusted to increases in the cost of living
Givebacks
The union agrees to give up previous wage or benefit gains in return for something else
Grievance
A complaint by an employee that management has violated the terms of the labor-management agreement
Mediation
The process in which a neutral 3rd party listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution
Arbitration
The process in which a neutral 3rd party listens to both parties in a dispute and makes a decision that the parties have agreed will be binding on them
What does Collins’ Five Stages of Decline do?
Recognizes the need for change
What are Collins’ 5 Stages of Decline?
- ) Hubris Born of Success
- ) Undisciplined Pursuit of More
- ) Denial of Risk and Peril
- ) Grasping for Salvation
- ) Capitulation to Irrelevance or Death
What is the Innovators Dilemma?
When new technologies cause great firms to fail
What are the 2 Types of Change?
- ) Reactive
2. ) Proactive
What are Outside forces that cause change?
- ) Demographic
- ) Market Changes
- ) Technological Advancements
- ) Shareholder & Customer Demands
- ) Supplier Practices
- ) Social & Political Pressures
What are Inside forces that cause change?
- ) Employee Problems
2. ) Managers’ Behavior
What are the 4 areas that change is often needed?
- ) People
- ) Technology
- ) Structure
- ) Strategy
What are the 3 causes of resistance to change?
- ) Employee Characteristics
- ) Change-Agent Characteristics
- ) Change Agent - Employee Relationship
Adaptive Change
Reintroduction of a familiar practice
Innovative Chage
The introduction of a practice that is new to the organization
Radically Innovative Change
Introducing a practice that is new to the industry
What are the 3 parts of Lewin’s Change Model?
- ) Unfreezing
- ) Changing
- ) Refreezing
Steps of Organizational Development
- ) Diagnosis
- ) Intervention
- ) Evaluation
- ) Feedback
What are the 2 Myths of Innovation?
- ) Innovation Happens in a Eureka Moment
2. ) Innovation can be Systematized
What are the 6 Seeds of Innovation?
- ) Hard work in a specific Direction
- ) Hard work with direction change
- ) Curiosity
- ) Wealth and Money
- ) Necessity
- ) Combination of Seeds
What are the 4 Steps to Foster Innovation?
- ) Recognize Problems and Opportunities and Devise Solutions
- ) Gain allies by communicating your vision
- ) Overcome employee resistance, and Empower and reward them to achieve progress
- ) Execute well by effectively managing people, groups, and organization processes and systems in the pursuit of innovation
Stakeholders
The people whose interests are affected by an organization’s activities
Internal Stakeholders
Employees, owners, and the board of directors
External Stakeholders
People or groups in the organization’s external environment that are affected by it
Task Environment
People who give you daily tasks to handle
Who are the 11 groups in the task environment?
- ) Customers
- ) Competitors
- ) Suppliers
- ) Distributors
- ) Strategic Allies
- ) Employee Organizations
- ) Local Communities
- ) Financial Institutions
- ) Government Regulators
- ) Special-Interest Groups
- ) Mass Media
General Environment (Macroenvironment)’s 6 forces
- ) Economic
- ) Technological
- ) Sociocultural
- ) Demographic
- ) Political-Legal
- ) International
Ethics
The standards of right and wrong that influence behavior
Values
Relatively permanent and deeply held underlying beliefs and attitudes that help determine a person’s bahavior
What are the 4 Approaches to Deciding Ethical Dilemmas?
- ) Utilitarian
- ) Individual
- ) Moral-Rights
- ) Justice
Utilitarian Approach
What will result in the greatest good for the greatest number of people
Individual Approach
What will benefit me and eventually help everyone else
Moral-Rights Approach
Respecting Rights shared by everyone
Justice Approach
Impartial standards of fairness
2 Types of White Collar Crime
- ) Insider Trading
2. ) Ponzi Scheme
Insider Trading
Illegal trading of a company’s stock by people using confidential company information
Ponzi Scheme
Using cash from newer investors to pay off older investors
Sarbanes-Oxley Act of 2002
Established requirements for proper financial record keeping for public companies and punishments for not doing so
Corporate social Responsibility
The notion that corporations are expected to go above and beyond following the law and making a profit