Quiz 1 Flashcards
On the Folly of Rewarding
In War: Vietnam vs WWII
In Medicine: Prescriptions
In Academia: Research vs Teaching, Students, Learning vs Grades
In Sports: Individual stats vs team victory
Please corporations, Experiment on us
CAN it ever be ethical for companies or governments to experiment on their employees, customers or citizens without their consent?
Facebook
OKCupid
CEO writing letter to employees about 401K match - would it cause change, for better or for worse, how would it be measured?
Lincoln Electric
From Class: No lay offs Good pay No micromanagement A lot of stability, not a lot of pay raise
The upside of irrationality
Student coming back to professor at MIT
-Has big corporate job in NYC, gets laundry done for him
Upset that he spend so much time on a powerpoint, but it got tossed aside, lost drive
- Monkey video from class (grapes, cucumbers)
- Parrott working for food - motivate when he had to earn it
- What is it besides a paycheck that confers meaning onto work?
Is it completing a task?
We are dealing with something ‘bigger’
-Our work matters to someone
As long as we are doing something that is connected to our self image, it can fuel our motivation and get us to work much harder.
-Contrafreeloading - anmials prefer to earn food
Small m - that which creates a small level of meaning
What this class is about
Maximizing your potential
Potential of your teams
Your organizations(s)
Organizational Behavior:
“…the systematic study and application of knowlede about how individuals and groups act within the organizations where they work.”
Three levels of analysis:
Individual
Group
Organization
Managing Yourself > Managing your team > Managing your organization
Why does learning about managing and leading matter? -
because technical skills alone are not enough to succeed in management
Primary cause of workplace discontent -
their boss!
Over 70% of american workers are “not engaged” or “actively disengaged” from their work.
“The single biggest decision you make in your job - bigger than all the rest - is who you name manager”
Effective Management, You need to know how to:
Make good decidison
Motivate others
Persuade and influence other
Understand team and organizational dynamics
Organization Behavior:
the systematic study and application of knowledge about how individuals and gruops act within organiztions.
Based on data, not intuitions
Evidence based Management
Goals
Prediction
Explantion
Control
Class example: when is the best time to hold meeting?
Common Strategies
1) Look at what is commonly done
2) Following the marketing hype
3) Rely on salient examples (looking at others succeess)
The best way to learn:
Experimentation: Only by using an experimental design can we infer causality - meaning that a variable causes another variable to change
Independent Variable: the one you change
Dependent variable: the one you measue to see if it changed
Motivation:
the willingness to exert persistent levels of effort towards organizational goals
Performance
Performance=f(motivation, ability, environment)
More abstractly, motivators are the tools managers use to ‘align’ incentives between employees and the firm to make mutually beneficial decisions.
Intrinsic motivation:
the desire to perform a task for its own sake beause the individual derives a sense of accomplishement and/or feels the task is worthwhile.
Extrinsic motivation:
the desire to perform a task in order to acquire external rewards or to avoid punishments
Money
praise/esteem
Status
Expectany Theory:
E > P > O
Effort: If i put forth the effort, will i attain the performance level asked of me?
Performance: Will meeting the performance stand result in a reward?
Outcome (Reward): How much do I value this reward?
Money as a motivator
Motivates under certain conditions
Must be importatn to the indivudal
Must be significant enough to make a difference to them
Must perceive the money as a direct reward for performance
Management must have the freedom to reward high performance with more cash
Using Expenctany Theory
Clearly define the performance standard (P)
Be sure performance standards are achievable (E > P)
Offer the right reward (O)
Guarantee that meeting performance standars will result in promised reward (P > O)
To motivate employee: Tighten E > P > O links
Equity Theory
Motivation results from
A persons effort to reward ratio
Reward to effort ratios are relative to peers
Implications
When people perceive they are fairly rewarded, they are motivated to work to standars
When people perceive they are relatively under-rewarded, they lose motivation
Perceptions are realitive.
Problems with Extrinsic Motivation
High cost of maintenance Behaviro exists only when reward exist Hedonic adaptation Rewards temporarily affect happiness Become accustomed to rewards, pleasure diminishes Job specific Hare to apply to creative endeavors
Fine Price - Exmplae from class.
Fining parents for showing up late. When they placed a fine, more parents showed up late
Misaligned incentives:
Rewarding non-desired rather than desired behavior:
-Management hopes for….
Long term growth but rewards quarterly earnings
Teamwork, but rewards individual effort
Candor; surfacing bad news early but rewards only reporting good news; agreeing with the boss, whether or not he/she is right
Misaligned incentives - Police
Police are partly reward for the number of arrests/citations given out
Does this system reward officers for maintaining the peace?
Misaligned incentives - Managers
Manager are partly rewarded for shipping on schedule/meeting deadlines
Does this system reward manager for commitment to total quality?
Misaligned incentives - College Instructors
College instructors are partly rewarded for good student evaluations
Does this system reward instructors for improving learning outcomes?
IKEA effect:
If you build it you value it higher
