Module 1: Organization and Organizational Theory Flashcards

1
Q

Organization

A

+ A coordinated group of people who perform tasks to produce goods or services, colloquially referred to as companies
+ Collectivities of parts that cannot accomplish their goals effectively if they operated separately
+ A tool people use to coordinate their actions to obtain something they desire or value to achieve a goal
+ Social entity, made up of people that agree on, and work towards goals
+ Org creates value, or else the “die”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How do organizations create value?

A

Environment (Customers, Suppliers) > Input (Raw Materials, IT, HR) > Process (Machines, Computers, KSAOs) > Output (Products, Services)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Organizational Theory

A

set of propositions that explains or predicts how group and individuals behave in varying organizational structures and circumstances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the different organizational theories?

A
  1. Classical Theory
  2. Neoclassical Theory
  3. Systems Theory
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Classical Organizational Theory

A

+ organizations exists for economic reasons and to accomplish productivity goals
+ defined the structure of an organization in terms of four principles: functional, scalar, line/staff, and span of control
+ assumes there is one best configuration to accomplish goals
+ scientific analysis will identify the ONE best way to organize for production
+ deals with formal organization and concepts to increase management efficiency
+ both people and organizations act in accordance with rational economic principles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the basic components that the classical organizational theory promotes for a company to be able to accomplish its objectives?

A
  1. System of differentiated activities
  2. People
  3. Cooperation toward a goal
  4. Authority
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

System of differentiated activities

A

activities that are linked to each other

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

People

A

performs tasks and exercises authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Cooperation toward a goal

A

unity of purpose in pursuit of their common goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Authority

A

ensures cooperation among people pursuing their goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

According to the classical organizational theory, what must be done to be successful?

A

To be successful in this new economy, industrial and mechanical engineers are needed to organize production systems to keep the machines busy and work flowing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Functional Principle

A

concept behind division of labor, that is, organizations should be divided into units that perform similar functions into areas of specialization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Scalar Principle

A

deals with the organization’s vertical growth and refers to the chain of command that grows with levels added to the organization

+ Each subordinate should be accountable to only one superior (unity of command)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Line Functions

A

have primary responsibilities for meeting the major goals of the organization, like the production department

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Staff Functions

A

support the line’s activities but are regarded as subsidiary in overall importance to line functions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Span-Of-Control Principle

A

refers to the number of subordinates a manager is responsible for supervising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does a large span-of-control produce?

A

It produces a flat organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does a small span-of-control produce?

A

It produces a tall organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the branches of the classical organizational theory?

A
  1. Scientific Management by Frederick Taylor
  2. Bureaucracy by Max Weber
  3. Administrative Management by Henri Fayol
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Scientific Management

A

+ Made by Frederick Taylor
+ The organization is a machine, a pragmatic machine whose focus is to simply run more effectively
+ Taylor believed that scientific principles could be applied to the study of work behavior to help increase worker efficiency and productivity
+ Based on the concept of planning of work to achieve efficiency, standardization, specialization, and simplification
+ The advantages of productivity improvement should go to workers
+ Physical stress and anxiety should be eliminated
+ Capabilities of workers should be developed through training
+ Traditional boss concept should be eliminated
+ Mainly associated with high levels of job specialization and standardization
+ Conducted time and motion studies and analyzed temperature, illumination, and other conditions of work, all while looking at the effects of these conditions on productivity and efficiency
+ Taylorism: has a premise that there is one best way to get the job done
+ Management gathers data from the workers, who are in the best position to understand the job duties and tasks
+ Workers are selected carefully or scientifically and trained so that they become more efficient than ever
+ Scientific selection, data collection, and training are combined to enhance efficiency
+ The work itself is redistributed, with management taking over tasks previously left to subordinated
+ The most effective companies have detailed procedures and work practices developed by engineers, enforced by supervisors, and executed by employees
+ Taylor, along with Frank and Lillian Gilbreth implemented the principles of scientific management
+ Worker efficiency would lead to greater managerial efficiency
+ Scientific Selection of the worker
+ Management and labor cooperation rather than conflict
+ Scientific training of the worker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Bureaucracy

A

+ by Max Weber
+ Described the structure, organization, and operation of many efficient organization
+ ideal form of organization
+ includes formal hierarchy, division of labor, and a clear set of operating procedures
+ Well-defined authority hierarchy with strict rules for governing behavior, with few members with highest status on the top
+ Increase productivity by reducing inefficiencies in organizational operations
+ Tend to be top-down pyramidal organization
+ Characterized by Span of Control (number of subordinates who report to a given supervisor)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the characteristics of a Bureaucratic Organization?

A
  1. Specialization of labor
  2. Well-defined authority hierarchy
  3. Formal rules and procedures
  4. Impersonality
  5. Employment decisions based on merit
  6. Emphasis on written records
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Impersonality

A

behavior is based on logical reasoning rather than emotional thinking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is division of labor (according to Bureaucracy)?

A

each job is a specialized
position with its own set of responsibilities and duties; division of tasks performed in an organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What is a difficulty in division of labor (according to Bureaucracy)?
One potential difficulty involves the coordination of various tasks handled by various employees
26
Delegation of Authority
approach whereby supervisors assign tasks to separate employees and hold them responsible for completing these tasks (Micromanagers); information about which lower-level employees report to higher-level employees
27
Structure
+ formal way an org is designed in terms of division of labor, delegation of authority, and span of control + hierarchy, top-down, and uses legitimate power
28
What are the principles of scientific approach (according to bureaucracy)?
1. Structure 2. Specialization 3. Predictability and Stability 4. Rationality 5. Democracy
29
Specialization
functional basis, separated according to specialization
30
Predictability and Stability
there must be rules and regulations
31
Rationality
equal treatment, no bias/subjective in selection
32
Democracy
ability to vote
33
Administrative Management
+ by Henri Fayol + Aims to improve organizational productivity by focusing on methods that managers can use to synchronize internal processes + Managerial practices are the key to driving efficiency in organizations + Seeks to heighten managerial performance instead on individual worker efficiency + Proposed the creation of work groups and functional departments wherein district activities are performed which contribute to the accomplishment of greater tasks
34
What are the principles of Administrative Management?
1. Division of Specialization 2. Authority and Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual Interest 7. Remuneration of Personnel 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure of Personnel 13. Initiative 14. Esprit de Corps
35
Division of Specialization (according to Administrative Management)
employees can become more proficient in the accomplishment of a limited set of activities -- thus, improving their output
36
What are the terms for Division of Specialization?
1. Employed 2. Underemployed 3. Unemployed
37
Employed
working in the person's chosen field of specialization
38
Underemployed
employed in a field that is not under a person's specialization
39
Unemployed
no work
40
Authority and Responsibility
managers should have the authority to issue commands, but it comes with the responsibility to ensure the work gets done
41
Discipline
subordinates must fully obey instructions from superiors (discipline through management)
42
Unity of Command
only one executive wherein the employees get instructions
43
Unity of Direction
each workgroup or department is working under a singular plan that coordinates effort (guided by one supervisor)
44
Subordination of Individual Interest
interests of individuals are subordinate to the general interests of the group or company
45
Remuneration of Personnel
compensation is used to incentivize worker performance
46
Centralization
decision-making should be either centralized or decentralized, depending upon the characteristics of the organization and worker competency
47
Scalar Chain
there must be a hierarchy of authority that places workers below managers in the reporting structure
48
Order
there must be a designed rules and standards for the work environment and work responsibilities
49
Equity
organization must run based upon principles of fairness
50
Stability of Tenure of Personnel
low turnover; allows employees to learn their jobs, develop skills, and acquire loyalty
51
Progressive Discipline
method of discipline that uses graduated steps for dealing with problems or related to an employee's conduct or performance that do not meet clearly defined standards and policies
52
Initiative
must promote initiative by allowing employees to create plans and carry them out
53
Esprit de Corps
establishing a sense of belonging within the organization creates a sense of unity and moral
54
What are functions of management (administrative management)?
1. Planning 2. Organizing 3. Staffing 4. Coordinating 5. Directing 6. Reporting 7. Budgeting
55
Structural Theory
+ Harry Mintzberg proposed how organizations evolve to reach a certain form and shape (structure) which permits the organization to function in its surroundings + The structure of an organization is an adaptive mechanism that permits the organization to function in its surroundings
56
What are the seven parts of an organization?
1. Operating Core 2. Strategic Apex 3. Middle Line 4. Technostructure 5. Support Staff 6. Ideology 7. Politics
57
Operating Core
responsible for conducting basic work duties that give the organization its defining purpose; transform raw goods into a sellable products
58
Strategic Apex
responsible for the overall success of the entire organization; associated with executive leadership
59
Middle Line
ensures that overall goals set by strategic apex are being carried out by the operating core
60
Technostructure
possess specific technical expertise that facilitates overall operation of the organization; accounting, HR, IT, law departments
61
Support Staff
aid the basic mission of the organization and typically includes the mailroom, security, and janitorial services
62
Ideology
belief system that compels commitment to a particular value; organizations should have singularly devoted to a particular mission, and all its actions are in pursuit if that mission; employees behave in accordance with their sincere conviction in the ideology of the organization, and can perform their work relatively independent of each other
63
Politics
side effects of ideology, causes divisiveness and conflict; the basis is the use of power that is neither formally authorized or widely accepted in the organization
64
Neoclassical Theory
+ recognizes the importance of individual or group behavior and emphasized human relations + also known as Behavioral Theory of Organization, Human Relations, or New Classical Theory of Management + Based on Elton Mayo, Chester Bernard, and Herbert Simon's theories + Adds a personal element or human element to the study of organization, considering the interrelationship between an organization's requirements and the characteristics of its members + Productivity was achieved as a result of high morale, which was influenced by the amount of individual, personal, and intimate attention workers received + Introduced informal organization and emphasized the: individual, work group, and participative management + Group, Humanistic, Individual
65
What are the theories under the Neoclassical Theory?
1. Elton Mayo's Hawthorne Experiment 2. Chester Bernard's Comprehensive Theory of Behavior in Formal Organizations 3. Herbert Simon's Application of Classical Theories to current situations of his time 4. McGregor's Theory of X and Theory Y 5. Argyris' Growth Perspective
66
Elton Mayo's Hawthorne Experiment
+ Conducted in Western Electric Company; Hawthorne, Chicago + Study if the workers would be more productive depending on the levels of illumination in the factory + Increased productivity when lighting conditions improved + Workers motivation increased due to interest shown by the company in them and their well-being
67
Chester Bernard's Comprehensive Theory of Behavior in Formal Organizations
+ People in executive roles must foster a sense of purpose, moral codes, ethical visions, and create formal and informal communication systems + People should cooperate, thus making no place for conflicts among workers
68
Herbert Simon's Application of Classical Theories to current situations of his time
+ Contradicted Henri Fayol's Administrative Management
69
Movements under Herbert Simon's Application of Classical Theories (to current situations of his time)
1. Human Relations Movement 2. Behavioral Movement
70
Human Relations Movement
+ social and psychological factors are important in determining worker productivity and satisfaction + efficient leaders are employee-centric, democratic, and follow a participative style
71
Behavioral Movement
proposes ideas how managers should behave to motivate the employees
72
Argyris' Growth Perspective
+ Growth was a natural and healthy experience for an individual + Organizations that acknowledged and aided this growth would be more likely to prosper than those that are ignored or actively inhibited this growth + Passive to active organisms
73
Humanistic Theory
organizational success in terms of employee motivation and the interpersonal relationships that emerge within the organization
74
Theory X and Theory Y
+ by McGregor + managers' beliefs and assumptions about their employees determine how they behave towards those employees
75
Self-Fulfilling Prophecy
employees, over time, learn to act and believe in ways consistent with how managers think they act and believe
76
How are employees viewed under Theory X?
+ employees are viewed to lazy, selfish, uninterested in work, lack in ambition, and not very intelligent + employees are passive and unresponsive to organization's needs + lack of focus would lead to apathy
77
How do managers act under Theory X?
+ managers control and direct employees in order to make outputs
78
How are employees viewed under Theory Y?
much more humanistic and developmental orientation, emphasizing not only the inherent goodness, capacity, and potential of employees but also their readiness to develop those inherent characteristics
79
What does Theory Y emphasize?
emphasizes management’s responsibility for nurturing those qualities and providing employees with opportunities to develop their inherently positive characteristics in the workplace
80
What is the difference between Theory X and Theory Y?
Theory Y is without unduly constraining organizational or managerial controls
81
Between Theory X and Theory Y, what is the most common set of beliefs?
Theory X
82
Motivation
the internal force that drives a worker to action as well as the external factors that encourage that action
83
What does ability and skill determine in a worker?
Ability and skill determines whether the worker can do the job
84
What does motivation determine in a worker?
Motivation determines whether a worker can do their work properly
85
What are the three individual difference traits that are most related to work motivation?
1. Self-esteem 2. Intrinsic/Extrinsic Motivation 3. Needs for Achievement and Power
86
Self-esteem
the extent to which a person views himself as valuable and worthy
87
What happens if employees have high self-esteem?
Employees high in self-esteem are more motivated and will perform better than employees low in self-esteem
88
Consistency Theory
employees who feel good about themselves are motivated to perform better at work than employees who do not feel that they are valuable and worthy people
89
Why do employees who have low self-esteem not work well according to the Consistency Theory?
Employees try to perform at levels consistent with self-esteem is compounded by the fact that employees with low self-esteem tend to underestimate their actual ability and performance
90
What are the different kinds of self-esteem?
1. Chronic 2. Situational 3. Socially Influenced
91
Chronic Self-Esteem
person’s overall feeling about himself
92
Situational Self-Esteem
person’s feeling about himself in a particular situation
93
Socially Influenced Self-Esteem
how a person feels about himself on the basis of the expectations of others
94
What can be done to increase self-esteem in employees?
To increase self-esteem, employees can attend workshops in which they are given insights into their strengths
95
Experience-with-Success
employee is given a task so easy that he will almost certainly succeed
96
Galatea Effect
the relationship between self-expectations and performance
97
Pygmalion/Rosenthal Effect
if an employee feels that the manager has confidence in him, his self-esteem will increase
98
Golem Effect
occurs when negative expectations of an individual cause a decrease in that individual’s actual performance
99
What should supervisors/managers be trained in to increase self-esteem in an employee?
Train supervisors to communicate a feeling of confidence in an employee
100
What are two types of motivation?
1. Intrinsic Motivation 2. Extrinsic Motivation
101
Intrinsic Motivation
they will seek to perform well because they either enjoy performing the actual tasks or enjoy the challenge of successfully completing the task
102
Extrinsic Motivation
they don’t particularly enjoy the tasks but are motivated to perform well to receive some type of reward or to avoid negative consequences
103
Work Preference Inventory
measures the intrinsic and extrinsic motivation
104
Needs for Achievement and Power
employees differ in the extent to which they are motivated by the need for achievement, affiliation, and power
105
Need for Achievement
Employees who have strong need for achievement are motivated by jobs that are challenging and over which they have some control, whereas employees who have minimal achievement needs are more satisfied when jobs involve little challenge and have a high probability of success
106
Need for Affiliation
Employees who have a strong need for affiliation are motivated by jobs in which they can work with and help other people
107
Need for Power
Employees who have strong need for power are motivated by a desire to influence others rather than simply to be successful
108
What are other Humanistic/Motivational Theories?
1. Job Expectations Theory 2. Hackman and Oldham's Job Characteristics Theory/Model 3. Abraham Maslow's Need Hierarchy 4. Clayton Alderfer's ERG Theory 5. Frederick Herzberg's Two-Factor Theory 6. David McClelland's Achievement Motivation Theory 7. Four-Drive Theory 8. Self-Regulation Theory 9. Reinforcement Theory 10. Edwin Locke's Goal Setting Theory 11. J. Stacey's Adam's Equity Theory 12. Vroom's Expectancy Theory 13. Organization Justice Theory 14. MARS Model of Individual Behavior and Performance 15. Costa & McCrae's Five Factor Model of Personality 16. IMPACT Theory 17. Path-Goal Theory 18. Situational Leadership Theory 19. Leader-Member Exchange Theory (Vertical Dyad Linkage Theory) 20. Ryan and Deci's Self-Determination Theory
109
Job Expectations Theory
a discrepancy between what an employee expected a job to be like and the reality of the job can affect motivation and satisfaction
110
What might happen when an employee's job expectations are not met?
When expectations from the job was not met, the employee might feel unmotivated
111
What is important to be done according to the Job Expectations Theory?
Realistic Job Preview is really important
112
Hackman and Oldham's Job Characteristics Theory/Model
employees desire jobs that are meaningful, provide them opportunity to be personally responsible for the outcome of their work, and provide them with feedback of the results of their efforts
113
How can employees be motivated according to the Hackman and Oldham's Job Characteristics Theory/Model?
Jobs will have motivation potential if they allow employees to use a variety of skills and to connect their efforts to an outcome which has meaning, is useful, or is appreciated by coworkers as well as by others in society
114
Job Diagnostic Survey
The Job Diagnostic Survey Questionnaire (JDS) intends to diagnose existing jobs to determine if and how these might be redesigned to improve employee's motivation, satisfaction, and productivity; and evaluate the effects.
115
Job Enrichment
redesigning jobs to give workers greater responsibility in the planning, execution, and evaluation of their work, raises the level of responsibility
116
What are the Core Job Characteristics according to the Hackman and Oldham's Job Characteristics Theory/Model?
1. Skill Variety 2. Task Identity 3. Task Significance 4. Autonomy 5. Feedback
117
Skill Variety
use of different skills and talents to complete a variety of work activities
118
Task Identity
the degree to which a job requires completion of a whole or identifiable piece of work
119
Task Significance
the degree to which the job affects the organization and/or larger society
120
Autonomy
provide freedom, independence, and discretion in scheduling the work and determining the procedures to be used to complete the work
121
Feedback
employees can tell how well they are doing from direct sensory information from the job itself
122
Abraham Maslow’s Need Hierarchy
+ employees would be motivated by and satisfied with their jobs at any given point in time if certain needs were met + This model condenses a long list of previously studied drives into five basic categories (primary needs) + Proposed that human beings are motivated by several primary needs (drives) at the same time, but the strongest source of motivation is the lowest unsatisfied need + As the person satisfies a lower-level need, the next higher need in the hierarchy becomes the next strongest motivator and remains so even if never satisfied
123
What does Abraham Maslow's Needs Hierarchy believe about motivation?
Motivation can be shaped by human thoughts
124
What are the parts of Abraham Maslow's Needs Hierarchy (from bottom to top)?
1. Physiological Needs 2. Safety Needs 3. Belongingness/Safety Needs 4. Ego Needs 5. Self-Actualization
125
Physiological Needs
food, air, water, shelter
126
Safety Needs ## Footnote Abraham Maslow's Need Hierarchy
physical, psychological, and financial needs
127
Belongingness/Safety Needs
interaction with others
128
Ego Needs
recognition and success
129
Self-Actualization
highest potential
130
Clayton Alderfer’s ERG Theory
+ states that individuals can be motivated by multiple levels of need at the same time, and that the level which is most important to them can change over time + individual’s priorities and motivations may be fluid and can move between existence, relatedness, and growth
131
What are the parts of the ERG theory of motivation (from bottom to top)?
1. Existence 2. Relatedness 3. Growth
132
What is the counterpart of the ERG Theory's Existence to Abraham Maslow's Hierarchy of Needs?
1. Physiological 2. Safety
133
What is the counterpart of the ERG Theory's Relatedness to Abraham Maslow's Hierarchy of Needs?
1. Social 2. Self-Esteem
134
What is the counterpart of the ERG Theory's Growth to Abraham Maslow's Hierarchy of Needs?
1. Self-Esteem 2. Self-Actualization
135
Frederick Herzberg’s Two-Factor Theory
some factors seemed to cause job satisfaction and dissatisfaction
136
What are the two factors under Frederick Herzberg's Two-Factor Theory?
1. Motivators 2. Hygiene
137
Motivators
related to the work itself, the type of work, level of responsibility, and the chances for recognition, advancement, and personal achievement
138
Hygiene
related to the context in which people perform the job, e.g., benefits, working conditions, type of supervision, salary, company policies
139
How can a company eliminate job dissatisfaction according to Frederick Herzberg’s Two-Factor Theory?
Eliminate job dissatisfaction by providing basic hygiene factors (compensated properly, treated well, and provided with job security)
140
David McClelland’s Achievement Motivation Theory
three needs are central to work motivation: needs for achievement, power, and affiliation
141
Four-Drive Theory
emotions are the source of human motivation and that these emotions are generated through four innate and universal drives
142
What are the four drives under the Four-Drive Theory?
1. Drive to acquire 2. Drive to bond 3. Drive to comprehend 4. Drive to defend
143
Drive to acquire
seek out, take, control, and retain objects and personal experiences
144
Drive to bond
variation of the need for belonging and affiliation, motivates the people to cooperate and, essentially, for organizations and societies
145
Drive to comprehend
need to know, discover answers to unknown
146
Drive to defend
protect ourselves physically, psychologically, and socially
147
Self-Regulation Theory
employee monitor their own progress toward attaining goals and then make the necessary adjustments: that is to self regulate
148
Reinforcement Theory
draws principles of operant conditioning and states simply that behavior is motivated by consequences
149
Operant Conditioning
employees will engage in behaviors for which they are rewarded and avoid behaviors for which they are punished
150
Factors the must be considered in determining the effectiveness of incentive programs
1. Timing of incentive 2. Contingency of the consequences 3. Type of incentive used 4. Use of individual-based versus group-based incentive 5. Use of positive incentives versus negative incentives 6. Fairness of the reward system
151
Timing of incentive
reinforcer or punisher is most effective if it occurs soon after the performance of the behavior
152
Contingency of the consequences
+ if it is not possible to immediately reward or punish a behavior, it should at least be clear that the employee understands the behaviors that brought reward or punishment + reward and punishment must be made contingent upon performance, and this contingency of consequence must be clear to employees if we want them to be motivated
153
Type of incentive used
supervisors should have access to and be trained to administer different types of reinforcers
154
Premack Principle
reinforcement is relative and that a supervisor can reinforce an employee with something that on the surface does not appear to be a reinforcer
155
What are the different types of incentives?
1. Premack Principle 2. Financial Rewards 3. Recognition 4. Social Recognition 5. Travel
156
Financial Rewards
can be used to motivate better worker performance either by making variable pay an integral part of an employee’s compensation package or by using financial rewards as a bonus for accomplishing certain goals
157
Recognition
reward through recognition program
158
Social Recognition
consists or personal attention, signs of approval, and expressions of appreciations; informal recognitions
159
Travel
offer travel rewards rather than financial rewards
160
Individual Incentive Plans
designed to make high levels of individual performance financially worthwhile and the research is clear monetary incentive increase performance over the use of a guaranteed hourly salary
161
What are the types of individual incentive plans?
1. Pay For Performance 2. Merit Pay
162
Pay For Performance
also called as earnings-at-risk (EAR) plans, pay employees according to how much they individually produced
163
Merit Pay
base their incentives on performance appraisal scores rather than on such objective performance measures as sales and productivity
164
Group Incentive Plans
get employees participate in the success or failure of the organization
165
What are the different types of group incentive plans?
1. Profit Sharing 2. Gainsharing 3. Stock Options
166
Profit Sharing
provide employee with percentage of profits above a certain amount
167
Gainsharing
ties groupwide financial incentives to improvements in organizational performance
168
Stock Options
employees are given the opportunity to purchase stock in the future
169
Use of positive incentives versus negative incentives
+ instead of rewarding employees, punish those who did wrong + for punishment to be effective, the employee must understand why he is being punished and be shown alternative ways of behaving that will result in some type of desired reinforcement
170
Reinforcement
increases behavior
171
What are the two types of reinforcement?
1. Positive 2. Negative
172
Positive Reinforcement
addition of something to increase behavior
173
Negative Reinforcement
removing something to increase behavior
174
Punishment
decreases behavior
175
What are the 4 types of schedules for reinforcement?
1. Fixed Interval 2. Fixed Ratio 3. Variable Interval 4. Variable Ratio
176
Ratio
Responses
177
Interval
Time
178
Organizational Behavior Modification | Reward System
certain target behaviors are specified, measured, and rewarded
179
Edwin Locke’s Goal Setting Theory
+ emphasized the role of specific, challenging performance goals and worker’s commitment to those goals as key determinants of motivation + Specific, Measurable, Attainable, Relevant, Time-Bound
180
Can difficult goals result in motivation (according to Edwin Locke's Goal Setting Theory)?
Difficult or challenging goals will also result in greater levels of motivation, if the goals have been accepted by the workers
181
J. Stacey Adam’s Equity Theory
+ based on the premise that our levels of motivation and job satisfaction are related to how fairly we believe we are treated in comparison with others + Employees subconsciously list all their outputs and inputs and then compute an input/output ratio by dividing the output value by input value + When an employee’s ratio is lower than those of others, he will become dissatisfied and be motivated to make the ratios equal in one or more ways
182
Inputs
those elements that we put into our jobs
183
Outputs
elements we receive from our jobs
184
When does motivation decrease (according to J. Stacey Adam's Equity Theory)?
Our motivation decreases when our input/output ratios are lower than others
185
Components of Vroom’s Expectancy Theory or VIE Theory
1. Valence 2. Instrumentality 3. Expectancy
186
Valence
+ desirability of a particular outcome to an individual + extent to which an employee value a particular consequence + “gusto ko yumaman” + gaano mo ka-gusto yung outcome
187
Instrumentality ## Footnote Vroom’s Expectancy Theory
+ relationship between the performance of a particular behavior and the likelihood that a certain outcome will result + link between one outcome and another outcome + outcome of a worker’s performance, if noticed, results in a particular consequence + the extent to which the performance will result to the desired outcome + “kapag ba ito yung ginawa ko, yayaman ako?”
188
Expectancy
+ perceived relationship between the amount of effort an employee puts in and the resulting outcome + the extent to which the effort an employee exerted resulted to the outcome she wanted + “nag-aral ako ng mabuti, nag-trabaho ako ng maayos kaya eto mayaman na ako”
189
Organization Justice Theory
if employees are treated fairly, they will be more satisfied and motivated
190
What is the organization justice theory focused on?
Focused on fairness of many aspects such as the process of decision making, outcome of decisions, and how it is communicated to employees
191
Distributive Justice
fairness of the decision itself
192
Procedural Justice
fairness of the procedures used to arrive with the decision
193
MARS Model of Individual Behavior and Performance
+ Performance is predicted by the Motivation, Ability, Role Perception, and Situational Factors + All 4 factors are critical influences on an individual’s voluntary behavior and performance, if one is low in a given situation then, the employee will perform poorly + Motivation, ability and role perception is clustered together as they are located within the person
194
Motivation
represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior
195
What are the concepts of motivation according to the MARS Model of Individual Behavior and Performance?
1. Direction 2. [Motivation is] Goal-oriented 3. Intensity 4. Persistence
196
Direction | MARS Model of Individual Behavior and Performance
path along which people steer their effort
197
Intensity
amount of effort allocated to the goal
198
Persistence
refers to the length of time that the individual continues to exert effort toward an objective
199
Ability
includes both the natural aptitudes and the learned capabilities
200
Role Perceptions
how clearly people understand their job duties
201
Situational Factors
any context beyond the employee’s immediate control
202
Costa & McCrae’s Five Factor Model of Personality
the most researched and respected clustering of personality traits
203
What are the five factors of personality?
1. Openness to Experience 2. Conscientiousness 3. Extraversion 4. Agreeableness 5. Neuroticism
204
Openness to Experience
imaginative, creative, unconventional, curious, nonconforming, autonomous, and aesthetically perceptive
205
Conscientiousness | Costa & McCrae’s Five Factor Model of Personality
organized, dependable, goal- focused, thorough, disciplined, methodical, and industrious
206
Extraversion | Costa & McCrae’s Five Factor Model of Personality
outgoing, talkative, energetic, sociable and assertive
207
Agreeableness
trusting, helpful, good-natured, considerate, tolerate, selfless, generous, and flexible
208
Neuroticism ## Footnote Costa & McCrae’s Five Factor Model of Personality
people who tend to be anxious, insecure, self-conscious, depressed, and temperamental
209
What stands out as the best predictor of proficient task performance? ## Footnote Costa & McCrae’s Five Factor Model of Personality
Conscientiousness stands out as the best overall predictor of proficient task performance for most job, followed by Extraversion
210
IMPACT Theory
each leader has one of six behavior styles: informational, magnetic, position, affiliation, coercive, or tactical
211
What are the factors of the IMPACT Theory?
1. Informational (Ignorance) 2. Magnetic (Despair) 3. Position (Instability) 4. Affiliation (Anxiety) 5. Coercive (Crisis) 6. Tactical (Disorganization)
212
Informational (Ignorance)
provides info in a climate of ignorance, where important information is missing from the group
213
Magnetic (Despair)
leads through energy and optimism but characterized by low morale
214
Position (Instability) ## Footnote IMPACT Theory | leadership style
leads through energy and optimism but characterized by low morale
215
Affiliation (Anxiety)
this style of leadership is effective in the climate of instability, where you have resources yet you have no goal to pursue or unclear what to do next, there requires a position type leader similar to position power leader
216
Coercive (Crisis)
leads by controlling and punishment
217
Tactical (Disorganization)
leads through strategy
218
Path-Goal Theory
a leader can adopt one of four behavioral leadership styles to handle each situation
219
What are the four behavioral leadership styles under path-goal theory?
1. Instrumental 2. Supportive 3. Participative 4. Achievement-Oriented
220
Instrumental Leadership
calls for planning, organizing, and controlling the activities of employees
221
Supportive Leadership
shows concern for employees
222
Participative Leadership
shares information with employees and lets them participate in the decision making
223
Achievement-Oriented Leadership
challenging goals and rewards increases in performance
224
Situational Leadership Theory
a leader typically uses one of the 4 behavioral styles: 1. Delegating 2. Directing 3. Coaching 4. Supporting
225
Delegating Leadership
willing and able
226
Directing Leadership
unwilling and unable
227
Coaching Leadership
willing but unable
228
Supporting Leadership
unwilling but able
229
Leader-Member Exchange Theory (Vertical Dyad Linkage Theory)
+ concentrates on the interactions between leader and subordinates + Leaders develop different roles and relationships with other people under them and thus act differently with different subordinates
230
Types of Leader-Member Relationships under the Leader-Member Exchange Theory
1. In-Group 2. Out-Group
231
In-Group
HQ relationship with the leader, developed trusting and friendly relationship
232
Out-Group
LQ relationship with the leader, developed
233
Ryan and Deci’s Self-Determination Theory
+ defined as the person’s ability to make choices and manage their own life + You feel in greater control, as opposed to being non-self-determined, which can leave you feeling that your life is controlled by others + People are motivated to grow and change by three innate psychological needs + The tendency to be either proactive or passive is largely influenced by the social condition which we are raised + Intrinsic motivation plays an important role
234
What are the three innate psychological needs for motivation according to Ryan and Deci's Self-Determination Theory
1. Autonomy 2. Competence 3. Connection or Relatedness
235
Autonomy (Self-Determination Theory)
people need to feel in control of their own behaviors and goals
236
Competence (Self-Determination Theory)
people need to gain mastery of tasks and learn different skills
237
Connection or Relatedness (Self-Determination Theory)
people need to experience a sense of belonging and attachment to people
238
Modern Organization Theory
+ based on the concept that the organization is a system which has to adapt to changes in its environment + organization is defined as a designed and structured process in which individuals interact for objectives
239
Systems Approach
+ considers organization as systems – a system is an organized or complex whole + an assemblage or combination of things or parts which form a complex unitary whole + offer an open-system view of an organization and recognizes its environmental interface + adopts multi-level and multi-dimensional approach, which considers both macro and micro aspects + focuses on the internal dynamics of an organization’s structure and behavior + applicable to all situations
240
Subsystems
different parts of the system, which are interrelated
240
What are the types of systems in the Systems Approach?
1. Subsystems 2. Open 3. Closed
241
Open
interact with the environment
242
Closed
no interaction with the environment
243
What are the 3 basic elements (according to the Systems Approach Theory)?
1. Components 2. Linking Process 3. Goals of Organization
244
Components ## Footnote Systems Approach
individual, formal and informal structure in an organization, physical environment
245
Linking Process ## Footnote Systems Approach
communication, balance, decision analysis
246
Goals of Organization ## Footnote Systems Approach
growth, stability, interaction
247
Socio-Technical Approach ## Footnote Modern Organization Theory
+ based on the premise that every organization consists of the people, the technical system, and the environment + people use tools, techniques, and knowledge to produce goods or services valued by consumers or users + equilibrium among the social system, technical system, and the environment is necessary to make the org more effective
248
Joint Optimization ## Footnote Socio-Technical Approach
the idea that the social and technological systems should be designed to fit one another as well as possible
249
Unit Control of Variance ## Footnote Socio-Technical Approach
concerns who handles work problems when they arise
250
What does the socio-technical approach enhance?
enhances the motivation, self-efficacy, and skills of the employee, and it saves the time of the specialist and supervisor
251
Why is the socio-technical approach very useful?
very useful because of the trend of downsizing in favor of advanced equipment/machinery/gadgets
252
What does socio-technical approach reduce?
reduces lag time associated with topo many moving parts
253
Contingency or Situational Approach ## Footnote Modern Organization Theory
+ based on the belief that there cannot be universal guidelines suitable for all situations, thus, different environment requires different organizational relationships for optimum effectiveness, taking into consideration various social, legal, political, technical, and economic factors + Herbert Simon + Decision Theory + works on the prescription which says that “it all depends"
254
What does the Contingency or Situational Approach focus on?
focuses on external determinants of the organization’s behavior and structure
255
Open System Theory
+ by Katz & Kahn + organization develop and change over time as a result of both external and internal forces + must interact with the environment in order to survive + the interplay between internal reality of an organization and the external reality of its environment and history + organization must be open to its environment to be effective + organizations thrive only as long as there is a continuous flow of energy from the external environment into the system and continuous export of products out of the system + too much Negative Entropy + they anticipate events occurring in the world that may impact their activities and outcomes
256
3 Key Elements of Open System Theory
1. Inputs 2. Throughputs 3. Outputs/Feedback
257
Inputs ## Footnote Open Systems Theory
raw materials, human resources, energy, machinery
258
Throughputs
production processes, service, training
259
Outputs/Feedback | Open Systems Theory
products, services, knowledge
260
Negative Entropy | Open Systems Theory
all forms of organization move towards disorganization or death, so orgs must avoid this movement
261
What does the negative feedback provide?
The negative feedback loop provides information about where and how the organization is getting off-course; therefore, they could correct or adjust the course
262
Equifinality | Open Systems Theory
a system can reach the same end state in different ways (there isn’t just one way to achieve a particular outcome)
263
What are surviving open systems characterized by?
Surviving open systems are characterized by a balance in energy exchange
264
Where does open systems move toward?
Open systems move toward more specialized functions
265
What is open systems doing to the organization?
Bringing the system together as a unified process is necessary for the system to continue
266
According to open systems, what are the most effective organizations?
The most effective organizations are those that are able to adapt to their environment
267
Static Environments
relatively stable or predictable
268
Dynamic Environment
constant state of fluidity or fluctuations
269
Contingency Theory
+ The “it depends” theory + Behavior must be selected to fit the particular circumstance + This answers the problem of both classical and neoclassical theories
270
What are the different contingency theories?
1. Joan Woodward’s Contingency Model 2. Lawrence and Lorsch’s Model 3. Fiedler’s Contingency Model 4. Mintzberg’s Contingency Model
271
Joan Woodward’s Contingency Model
for maximal performance, org structure needed to match the type of production technology + producers of small batches of specialty products required a span of control that was moderate in size and a short chain of command + Mass Production, large span of control and long chain of command + Continuous process, largest span of control
272
What are the three types of manufacturers according to Joan Woodward’s Contingency Model?
1. Small-batch 2. Mass production 3. Continuous production
273
What does the Joan Woodward’s Contingency Model deal with?
Deals only with manufacturing organizations
274
Lawrence and Lorsch’s Model
+ asserted that two processes determine the company’s ability to keep up with external changes: differentiation and integration + Depends on the environment of the company
275
What does Lawrence and Lorsch’s Model propose?
proposed that the stability of the environment dictates the most effective form of organization
276
Mechanistic Organization (Lawrence and Lorsch’s Model)
an organization that depends on formal rules and regulations, makes decisions at higher levels of the organization and has smaller spans of control (for stable environments)
277
Organic Organization (Lawrence and Lorsch’s Model)
organization with a large span of control, less formalized procedures, and decision making at middle levels (for unstable environments)
278
Differentiation (Lawrence and Lorsch’s Model)
complexity of the org structure – number of units, various orientations and philosophies of the managers, and the goals and interests of the organization’s members
279
Integration (Lawrence and Lorsch’s Model)
amount and quality of collaboration
280
Fiedler’s Contingency Model
any individual’s leadership style is effective only in certain situations
281
Mintzberg’s Contingency Model
+ argued that one could describe an organization by looking at several categories of characteristics + the key mechanism used by the organization for coordinating its efforts + functions and roles of people in the organization + the context in which the organization operates + the priority level depends on the goals
282
Basic Forms of Coordination
1. Mutual Adjustments based on Informal Comms 2. Direct Supervision 3. Standardization of Work Process 4. Standardization of KSAOs 5. Standardization of Outputs 6. Standardization of norms (Culture)