MIDTERM FLASHCARDS
Refers to the overall set of elements that can be used to configure an organization.
Organization structure and design
Job specialization
The degree to which the overall task of the organization is broken down and divided into smaller component parts
Alternatives to Specialization: Work teams
Allows an entire group to design the work system it will use to perform an interrelated set of tasks.
Alternatives to Specialization: Job rotation
Involves systematically moving employees from one job to another.
Alternatives to Specialization: Job enlargement
Increasing the total number of tasks that workers perform.
Alternatives to Specialization: Job characteristics approach
It suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences.
Five Core Dimensions of Job Characteristics Approach: Skill Variety
The number of things a person does in a job.
Five Core Dimensions of Job Characteristics Approach: Task identity
The extent to which the worker does a complete or identifiable portion of the total job.
Five Core Dimensions of Job Characteristics Approach: Task significance
The perceived importance of the task.
Five Core Dimensions of Job Characteristics Approach: Autonomy
The degree of control the worker has over how the work is performed .
Five Core Dimensions of Job Characteristics Approach: Feedback
The extent to which the worker knows how well the job is being performed.
It is the process of grouping jobs according to some logical arrangement.
Departmentalization
It is a clear and distinct line of authority among the positions in an organization.
Chain of command
The number of people who report to a particular manager.
Span of management
Difference of Tall and Flat Organizations
Having more layers results in a taller organization, whereas having fewer layers results in a flatter organization.
Characteristics of a tall organization
✔ Are more expensive because of the number of managers involved.
✔ Foster more communication problems because of the number of people through whom information must pass.
Characteristics of a flat organization
✔ Lead to higher levels of employee morale and productivity.
✔ Create more administrative responsibility for the relatively few managers.
✔ Create more supervisory responsibility for managers due to wider spans of control.
Authority
Power that has been legitimized by the organization.
Delegation
The process by which a manager assigns a portion of his or her total workload to others.
Reasons for Delegation:
✔ To enable the manager to get more work done by utilizing the skills and talents of subordinates.
✔ To foster development of subordinates by having them participate in decision making and problem solving.
Decentralization vs. Centralization
- Decentralization – The process of systematically DELEGATING power and authority throughout the organization to middle and lower level managers.
- Centralization – The process of systematically RETAINING power and authority in the hands of higher-level managers.
The process of linking the activities of the various departments of the organization.
Coordination
The Need for Coordination:
✔ The primary reason for coordination is that departments and work groups are interdependent—they depend on one another for information and resources to perform their respective activities.
✔ The greater the interdependence between departments, the more coordination the organization requires if departments are to be able to perform effectivel/
Three Major Forms of Interdependence
- Pooled interdependence – When units operate with little interaction; their output is pooled at the organizational level
- Sequential interdependence – When the output of one unit becomes the input for another in a sequential fashion
- Reciprocal interdependence – When activities flow both ways between units
A model of organization design based on a legitimate and formal system of authority.
Bureaucracy
According to Weber, the ideal bureaucracy exhibits five basic characteristics:
✔ The organization should adopt a distinct division of labor, and each position should be filled by an expert.
✔ The organization should develop a consistent set of rules to ensure that task performance is uniform.
✔ The organization should establish a hierarchy of positions or offices that creates a chain of command from the top of the organization to the bottom.
✔ Managers should conduct business in an impersonal way and maintain an appropriate social distance between themselves and their subordinates.
✔ Employment and advancement in the organization should be based on technical expertise, and employees should be protected from arbitrary dismissal.
It is based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors.
Situational view of organization design
Technology
Conversion process used to transform inputs into outputs.
Three basic forms of technology that were identified by Joan Woodward.
- Unit or small batch technology – the product is custom made to customer specifications and produced in small quantities.
- Large batch or mass production technology – the product is manufactured in assembly line fashion by combining components parts into another part or finished product.
- Continuous process technology - raw materials are transformed to a finished product by a series of machine
Mechanistic organization vs. Organic organization
➝ Mechanistic organization – Similar to the bureaucratic model, most frequently found in stable environments
➝ Organic organization – Very flexible and informal model of organization design, most often found in unstable and unpredictable environments
Differentiation vs. Integration
➝ Differentiation – Extent to which the organization is broken down into subunits
➝ Integration – Degree to which the various subunits must work together in a coordinated fashion
Total number of full-time or full-time equivalent employees.
Organizational size
Progression through which organizations evolve as they grow and mature.
Organizational life cycle
Organization design based on the functional approach to departmentalization
Functional (U-Form) Design
5 Characteristics of a Functional (U-Form) Design
Requires coordination across all departments.
Resembles functional departmentalization in its advantages and disadvantages.
Promotes a narrowing functional rather than broader organizational focus
Tends to promoter centralization
Is common in smaller organizations
Organization design used by an organization made up of a set of unrelated businesses.
Conglomerate (H-Form) Design
4 Characteristics of a Conglomerate (H-Form) Design
Organization consists of a set of unrelated businesses with a general manager for each business.
Holding-company design is similar to product departmentalization.
Coordination is based on the allocation of resources across companies in the portfolio.
Design has produced only average to weak financial performance; has been abandoned for other approaches
Organization design based on multiple businesses in related areas operating within a larger organizational framework.
Divisional (M-Form) Design
3 Characteristics of a Divisional (M-Form) Design
Is based on multiple businesses in related areas operating within a larger organizational framework; following a strategy of related diversification.
Activities are decentralized down to the divisional level; others are centralized at the corporate level.
The largest advantages of the M-form design are the opportunities for coordination and sharing of resources
Organization design based on two overlapping bases of departmentalization.
Matrix Design
3 Characteristics of a Matrix Design
A set of product groups or temporary departments are superimposed across the functional departments.
Employees in the matrix become members of both their departments and a project team under a project manager.
The matrix creates a multiple command structure in which an employee reports to both departmental and project managers
Organization design based on two or more organization design forms such as a mixture of related divisions and a single unrelated division.
Hybrid Design
An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying hierarchy.
Team organization
An approach to organization design that has little or no formal structure.
Virtual organization
An approach to organization design that works to facilitate the lifelong learning and personal development of all its employees while continually transforming itself to respond to changing demands and needs.
Learning organization
The overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide in return.
Psychological contract
Contributions vs. Inducements
- Contributions – What the individual provides to the organization
- Inducements – What the organization provides to the individual
The Person-Job Fit
The extent to which the contributions made by the individual match the inducements offered by the organization.
These are personal attributes that vary from one person to another.
Individual differences
These are relatively stable set of psychological and behavioral attributes that distinguish one person from another.
Personality
A popular personality framework based on five key traits.
The “Big Five” Model of Personality
The “Big Five” Personality Traits
- Agreeableness ➝ A person’s ability to get along with others
- Conscientiousness ➝ A person’s ability to manage multiple tasks and consistently meet deadlines
- Neuroticism ➝ Extent to which a person experiences anxiety or is poised, calm, resilient, and secure
- Extraversion ➝ A person’s comfort level with relationships
- Openness ➝ A person’s rigidity of beliefs and range of interests
This framework, based on the classic work of Carl Jung, differentiates people in terms of four general dimensions.
The Myers-Briggs Framework
It is one popular questionnaire that some organizations use to assess personality types. Is a useful method for determining communication styles and interaction preferences.
The Myers–Briggs Type Indicator (MBTI)
Extraversion (E) versus introversion (I)
Extraverts get their energy from being around other people, whereas introverts are worn out by others and need solitude to recharge their energy.
Sensing (S) versus intuition (N)
The sensing type prefers concrete things, whereas intuitives prefer abstract concepts.
Thinking (T) versus feeling (F)
Thinking individuals base their decisions more on logic and reason, whereas feeling individuals base their decisions more on feelings and emotions.
Judging (J) versus perceiving (P)
People who are the judging type enjoy completion or being finished, whereas perceiving types enjoy the process and open-ended situations.
The degree to which an individual believes that his or her behavior has a direct impact on the consequences of that behaviour.
Locus of control
Internal locus of control vs. External locus of control
Internal locus of control – individuals who believe they are in control of their lives.
External locus of control – individuals believe that external forces dictate what happens to them.
Self-efficacy
An individual’s beliefs about his or her capabilities to perform a task.
Authoritarianism
The extent to which an individual believes that power and status differences are appropriate within hierarchical social systems like organizations.
Machiavellianism
This is the behavior directed at gaining power and controlling the behavior of others.
Self-esteem
The extent to which a person believes that he or she is a worthwhile and deserving individual
Risk propensity
The degree to which an individual is willing to take chances and make risky decisions.
The extent to which people are self aware, manage their emotions, motivate themselves, express empathy for others, and possess social skills
Emotional Intelligence (EQ)
EQ various dimensions can be described as follows:
Self-awareness. It refers to a person’s capacity for being aware of how they are feeling.
Managing emotions. This refers to a person’s capacities to balance anxiety, fear, and anger so those emotions do not overly interfere with getting things accomplished.
Motivating oneself. This refers to a person’s ability to remain optimistic and to continue striving in the face of setbacks, barriers, and failure.
Empathy. This refers to a person’s ability to understand how others are feeling, even without being explicitly told.
Social skill. This refers to a person’s ability to get along with others and to establish positive relationships
Complexes of beliefs and feelings that people have about specific ideas, situations, or other people.
Attitudes
This is when an individual has conflicting attitudes.
Cognitive Dissonance
An attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work.
Job satisfaction or dissatisfaction
An attitude that reflects an individual’s identification with and attachment to the organization itself.
Organizational commitment
Positive affectivity vs. Negative affectivity
Positive affectivity – A tendency to be relatively upbeat and optimistic, have an overall sense of well-being, see things in a positive light, and seem to be in a good mood
Negative affectivity – A tendency to be generally downbeat and pessimistic, see things in a negative way, and seem to be in a bad mood.
The set of processes by which an individual becomes aware of and interprets information about the environment.
Perception
Selective perception
The process of screening out information that we are uncomfortable with or that contradicts our beliefs
The process of categorizing or labelling people on the basis of a single attribute
Stereotyping
The process of observing behavior and attributing causes to it.
Attribution
The basic framework around which we form attributions is:
Consensus (the extent to which other people in the same situation behave the same way)
✔ Consistency (the extent to which the same person behaves in the same way at different times)
✔ Distinctiveness (the extent to which the same person behaves in the same way in other situations)
An individual’s response to a strong stimulus, which is called a stressor.
Stress
General cycle of the stress process
General Adaptation Syndrome (GAS)
Stages of General Adaptation Syndrome (GAS)
Stage 1: alarm—we feel panic and alarm, and our level of resistance to stress drops.
Stage 2: resistance—represents our efforts to confront and control the stressful circumstance.
Stage 3: exhaustion—and just give up or quit.
Type A vs. Type B personality types
- Type A – Individuals who are extremely competitive, are very devoted to work, and have a strong sense of time urgency
- Type B – Individuals who are less competitive, are less devoted to work, and have a weaker sense of time urgency
Organization Stressor: Task Demands
- Quick decisions
- Incomplete information for decisions
- Critical decisions
Organization Stressor: Physical Demands
- Temperature extremes
- Poorly designed office
Threats to health
Organization Stressor: Role Demands
- Role conflict
- Role ambiguity
Organization Stressor: Interpersonal Demands
- Group pressures
- Leadership styles
- Conflicting personalities
Negative personal consequences of stress
✔ Behavioral—smoking, alcoholism, overeating, drug abuse.
✔ Psychological—sleep disturbances, depression.
✔ Medical—heart disease, stroke, backaches, ulcers, skin conditions.
Negative work-related consequences of stress
✔ Poor quality work output and lower productivity.
✔ Job dissatisfaction, low morale, and a lack of commitment.
✔ Withdrawal through indifference and absenteeism
A feeling of exhaustion that may develop when someone experiences too much stress for an extended period of time.
Burnout
The ability of an individual to generate new ideas or to conceive of new perspectives on existing ideas.
Creativity
Creative attributes generally fall into three categories:
✔ Background Experiences and Creativity ➝ creative individuals were raised in environments in which creativity was nurtured.
✔ Personal Traits and Creativity ➝ traits shared by most creative people are openness, an attraction to complexity, high levels of energy, independence and autonomy, strong self-confidence, and a strong belief that one is, in fact, creative
✔ Cognitive Abilities and Creativity ➝ are an individual’s power to think intelligently and to analyze situations and data effectively
Divergent vs. Convergent thinking
- Divergent thinking is a skill that allows people to see differences among situations, phenomena, or events.
- Convergent thinking is a skill that allows people to see similarities among situations, phenomena, or events.
A pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness.
Workplace behavior
The total set of work-related behaviors that the organization expects the individual to display.
Performance behaviors
Withdrawal Behaviors
- Absenteeism – When an individual does not show up for work
- Turnover – When people quit their jobs
The behavior of individuals that makes a positive overall contribution to the organization.
Organizational Citizenship
Determinants of Organizational Citizenship
Individual’s personality, attitudes and needs
Social context of the workplace
Organizations capacity to reward citizenship
Those that detract from, rather than contribute to, organizational performance.
Dysfunctional Behaviors
Dysfunctional Behaviors
Absenteeism and turnover
Theft and sabotage
Sexual and racial harassment
Politicized behavior
Intentionally misleading others
Spreading malicious rumors
Workplace violence
Motivation
The set of forces that cause people to behave in certain ways.
Individual performance is generally determined by three things:
✔ Motivation (the desire to do the job),
✔ Ability (the capability to do the job),
✔ The work environment (the resources needed to do the job). If an employee lacks ability, the manager can provide training or replace the worker.
Approaches to motivation that tries to answer the question “What factors motivate people?”
Content Perspectives
Content Perspectives: The Needs of Hierarchy Approach
Maslow’s hierarchy of needs Suggests that people must satisfy five groups of needs in order— physiological, security, belongingness, esteem, and self-actualization
Content Perspectives: The Two-Factor Theory
Suggests that people’s satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors.
Content Perspectives: The Individual Human Needs
- Need for Achievement – The desire to accomplish a goal or task more effectively than in the past
- Need for Affiliation – The desire for human companionship and acceptance
- Need for Power – The desire to be influential in a group and to control one’s environment
Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained those goals.
Process Perspectives
Process Perspectives: Expectancy Theory
Suggests that motivation depends on two things—how much we want something and how likely we think we are to get it.
The Expectancy Model of Motivation
o Effort-to-Performance Expectancy – The individual’s perception of the probability that effort will lead to high performance
o Performance-to-Outcome Expectancy – The individual’s perception that performance will lead to a specific outcome
o Outcomes Consequences – of behaviors in an organizational setting, usually rewards
o Valence – An index of how much an individual values a particular outcome; the attractiveness of the outcome to the individual
Process Perspectives: The Porter–Lawler Extension of Expectancy Theory
Suggests that if performance results in equitable rewards, people will be more satisfied. Thus, performance can lead to satisfaction. Managers must therefore be sure that any system of motivation includes rewards that are fair, or equitable, for all.
Process Perspectives: The Equity Theory
Contends that people are motivated to seek social equity in the rewards they receive for performance.
It is a result of conscious goals and intentions.
Behavior
It influences behavior in organizations.
Setting goals
Process Perspectives: Goal-Setting Theory
✔ Goal difficulty is the extent to which a goal is challenging and requires effort.
✔ Goal specificity is the clarity and precision of the goal.
✔ Goal acceptance is the extent to which a person accepts a goal as his or her own.
✔ Goal commitment is the extent to which he or she is personally interested in reaching the goal.
Approaches to motivation that argues that behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated
Reinforcement Theory
Reinforcement Theory assumes that:
✔ Behavior that is rewarded is likely to be repeated.
✔ Behavior that is punished is less likely to be repeated.
Positive Reinforcement
A method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed.
Avoidance
Used to strengthen behavior by avoiding unpleasant consequences that would result if the behavior were not performed.
Punishment
Used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the behavior is performed.
Extinction
Used to weaken undesired behaviors by simply ignoring or not reinforcing them.
Provides reinforcement at fixed intervals of time, such as regular weekly pay-checks
Fixed-Interval Schedule
Provides reinforcement at varying intervals of time, such as occasional visits by the supervisor
Variable-Interval Schedule
Provides reinforcement after a fixed number of behaviors regardless of the time interval involved, such as a bonus for every fifth sale
Fixed-Ratio Schedule
Provides reinforcement after varying numbers of behaviors are performed, such as the use of compliments by a supervisor on an irregular basis
Variable-Ratio Schedule
Method for applying the basic elements of reinforcement theory in an organizational setting.
Organizational Behavior Modification (OB Mod)
The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority.
Empowerment
The process of giving employees a voice in making decisions about their own work.
Participation
Areas of Participation for Employees
✔ Making decisions about their jobs.
✔ Making decisions about administrative matters.
✔ Participating in decision making about broader issues of product quality.
Working a full forty-hour week in fewer than the traditional five days.
Compressed Work Schedule
Work schedules that allow employees to select, within broad parameters, the hours they work.
Flexible-Work Schedules
When two part-time employees share one full-time job.
Job Sharing
Allowing employees to spend part of their time working offsite, usually at home.
Telecommuting
The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded.
Reward system
3 Effects of Organizational Rewards
✔ Higher-level performance-based rewards motivate employees to work harder.
✔ Rewards help align employee self-interest with organizational goals.
✔ Rewards foster increased retention and citizenship.
Pay awarded to employees on the basis of the relative value of their contributions to the organization.
Merit Pay
Compensation plan that formally bases at least some meaningful portion of compensation on merit.
Merit Pay Plan
Monetary Incentives
✔ Incentive plan
✔ Employee is paid a certain amount of money for every unit the employee produces.
✔ Sales commissions plan
✔ Employee is paid a percentage of the employee’s sales to customers for selling the firm’s products or services.
Nonmonetary Incentives
✔ Immediate, and one-time rewards
✔ Days off, additional paid vacation time, and special perks
It is designed to share the cost savings from productivity improvements with employees.
Gainsharing Programs
Similar to gainsharing, but it is the distribution of gains is tilted much more heavily toward employees.
Scanlon Plan
It is an annual bonus to all employees based on corporate profits.
Profit Sharing Plans Provide
Standard Forms of Executive Compensation
✔ Base salary
✔ Incentive pay (bonuses)
Special Forms of Executive Compensation
✔ Stock option plans
✔ Executive perks
Allowing employee participation in the deciding the distribution of rewards.
Employee Participation
Innovation in Incentive Programs
✔ Offering stock options to all employees.
✔ Individualizing reward systems
