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MGT 300 Final Exam
Jones, Prof Lopez
56
Management
06/05/2011

Additional Management Flashcards

 


 

Cards

Term

Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals

Definition

-Management is planning, organizing, leading and controlling of human and other resources to achieve organizational goals efficiently and effectively.

- Main goal managers do is to provide a good or service that customers desire

-by organizational performance, increases in direct proportion to increases in efficiency and effectiveness. See figure 1.1 pg 6

Term

Distinguish among planning, organizing, leading, and controlling (the four main management functions) and explain how managers' ability to handle each one can affect organizational performance

PLANNING

Definition

 

Planning

- DEF: identify and select appropriate organizational goals and course of action

-          3 steps:

1)      deciding goals the organization would pursue

2)      deciding course of action to adopt to attain those goals

3)      deciding how to allocate organizational resources to attain goals

-          strategy

 

Term

Distinguish among planning, organizing, leading, and controlling (the four main management functions) and explain how managers' ability to handle each one can affect organizational performance

ORGANIZING

Definition

Organizing

-          DEF: task managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals

-          grouping into departments according to job specific tasks performed

-          manager lay lines of authority and responsibility between diff individuals and groups

-          decide best to coordinate organizational resources  

-          organizational structure, fomal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals                 

Term

Distinguish among planning, organizing, leading, and controlling (the four main management functions) and explain how managers' ability to handle each one can affect organizational performance

LEADING

Definition

 

Leading

-          articulate clear organizational vision for organizational members to accomplish

-          involves managers:

o    using power, personality, influence, persuasion and communication skills to coordinate people and groups

o   Encouraging employees to perform at high level

o   Outcome is highly motivated and committed work force

 

Term

Distinguish among planning, organizing, leading, and controlling (the four main management functions) and explain how managers' ability to handle each one can affect organizational performance

CONTROLLING

Definition

Controlling

-          DEF: evaluate how well org has achieved its goals and to take any corrective actions needed to maintain or improve performance

-          Involves managers:

o   Monitor performance of individuals, departments and org a whole to see meeting desire performance standard

o   Ability to measure performance accurately and regulate organizational efficiency and effectiveness

o   Decide goals to measure

o   Design control systems that will provide the info necessary to assess performance 

o   Evaluate how well themselves are performing the other 3 tasks of management and to take corrective action

Term

Differentiate among three levels of management and understand the responsibilities of managers at different levels in the organizational hierarchy


Definition

First-Line Managers

-          Supervisors

-          Responsible daily supervision of nonmanagerial employees who perform many activities necessary to produce goods and services

-          Work in all dept or functions in org

Middle Managers

-          Supervisors of first line managers

-          Responsible for finding  best way to organize human and other resources to achieve organizational goals

-          Increase efficiency, find ways to help first line managers and nnamangerial employees to better utilize resources to reduce cost or improve customer service

-          Increase effectiveness, evaluate whether goals organization pursueing  are appropriate and suggest top managers ways goals can be changed

-          Big part developing and fine-tuning skills  and know how

-          Training, motivating, and rewarding sales ppl

Top Managers

-          Responsible for performance of all departments

-          Cross departmental responsibility

-          Establish org goals

-          Ultimately responsible for success or failure of org and their performance

-          CEO most imp manager, COO and CEO work together

-          Top management team    

-          Devote time planning and organizing tasks

 

Term

 

Identify the roles managers perform (managerial roles identified by Mintzberg)

 

Definition
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Term

 

Identify the three principal types of skills effective managers need, and as managers move up the organizational hierarchy, how does the weight of each skill set change, which skill set becomes most important for each managerial level

 

Definition

 

Conceptual Skills

-          ability to analyze and diagnose a situation and to distinguish between cause and effect

Human Skills

-          ability to understand, alter, lead, and control the behavior of other individuals and groups

Technical Skills

-          job specific skills required to perform a particular type of work or occupation at high level

 

Core competency relies on weight of each skill set giving org a competitive advantage, figure 1.5 pg 16

 

Term

Describe Frederick W. Taylor approach in helping organizations to become more efficient and effective (Scientific Management)

Definition

·         Principle 1 – study the way workers perform their task, gather all the informal job knowledge that workers possess and experiment with ways of improving the way tasks we performed

·         Principle 2 – codify the new methods of performing tasks into written rules and standard operating procedures.

·         Principle 3 – Carefully select workers so that they possess skills and abilities that match the needs of the task and train them to perform the task according to the established rules and procedures

·         Principle 4 – establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance aboce the acceptable level

Term

Describe Mary Parker Follett's approach to helping organizations to become more efficient and effective. 

Definition

 

·         *  Horizontal view of power and authority


·        *  “cross functioning” members of different departments working together in cross departmental teams  to accomplish projects (used more today)

 

Term

How does Mary Park Follett's viewpoint differ from Taylor's viewpoint?

Definition

·         Taylor was ignoring the human side of the organization

Term

Describe Theory X and Theory Y and how these approaches influence a manager's style of managing.

Definition

 

·        Theory X – average worker is lazy, dislikes work and will try to do as little as possible, have little ambition

o   Managers who accept x – design and shape the work setting to maximize their control over workers behaviors and minimize workers control over their pace of work

·         Theory Y – assumes that workers are not inherently lazy, do not naturally dislike work and if given opportunity will do what is good for the organization

o   Managers decentralize authority and give more control over job to workers both as individual and groups

o   Managers job is to make sure workers have the resources they need to perform their jobs, and to evaluate them in their ability to help the organization meet its goals

 

Term

Describe the various personality traits that affect how people think, feel, and behave.

Definition

OCEAN

Extraversion (positive affectivity)

·         Scales: low, introvert and high, extravert

o   Extraverts

§  Helping behaviors

§  Optimists

§  High level job satisfaction

§  Engage in high levels of OCBs

§  Sales and customer relations

 Neroticism (negative affectivity)

o   Pessimists

§  Feel more stress/ distress

§  Very critical

§  Quality control

§  Can a person be high affectivity and neg affectivety?

·         Yes cause individual levels and neither effect each other

Agreeableness

·         Helping or hurting

·         Low

o   Rude

o   Uncooperative

o   Difficult

·         High

o   Easy to get along with

o   Easy approachable 

Conscientiousness

·         Pay attention to detail

·         Need tools

·         Good predictor of performance

o   Not good to creativity

§  Mkt, advertising

·         High

o   Very well job performers

o   Perservering

o   Highly organized

o    Self discipline

o   Pay attention to details                      

Openness to experience

·         Very good at innovativeness/creativity

o   Entrepreneurship

o   Research/ development

o   Mkt/ advertising

·         High

o   Risk takers

o   Originality

o   Wide variety

o   Open perspective

 o   Broad interests

Term

Describe the personality - situation interaction, how does the situation (context) influence the effect of personality

Definition

Locus of Control

·         Internal

o   Own/direct

o   Control

o   Easily motivated

·         External

o   Things happen to them

o   Luck

o   Deflating, making difficult

Self Esteem

·         Low

o   Just as effective as high self esteem

o   Difficult pushing themselves

o   Need to be pushed

o   Realize their potential

·         High

o   Believe what your capable of

o   Challenging tasks

o   High motivated

o   High job satisfaction

o   High goals

Needs for achievement

·         The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence

Need for affiliation

·         The extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having other people get along

Need for power

·         The extent to which an individual desires to control or influence others

 

Term
Definition

 

Term

 

Explain what values and attitudes are and describe their impact on behavior

 

Definition

Values

o   Decisions must be somewhat based on values to work w/ motivations

o   Importance of instrinsic and extrinsic values is a must in making decisions to positively impact the people I manage

 

 

Attitudes

Based on Job satisfaction and Organizational Commitment 


Term

Explain the differences between lifelong values (terminal and instrumental), workplace values (What one expects to get out of work: intrinsic and extrinsic), and ethical values (how one expects they should behave at work)  

Definition

·        Lifelong Values

     Terminal

o   Ends (goals, objectives) à work values àextrinsic àassociated with consequences of work (pay, salary)

o    Means à intrinsic à associated with the work itself (responsibility)

·         Instrumental – means (mode of conduct) à ethical values

     Work Values

        Intrinsic

·         things challenge you

·         deal w/ work itself

Extrinsic

·         deal w/ consequence of work

·         security

-          vacation time


 

 

Term

Describe two types of job attitudes

Definition

Job satisfaction (the collection of feelings and beliefs that managers have about their jobs)


Organizational Commitment (the collection of feelings and beliefs that managers have about their organizations)

1.       affective commitment- want to be committed, respect, value, corporate responsibility

2.       continuance- need to be because cost of leaving is too high

3.       normative- ought/should be. Obligated

Term

 

Describe the determinants of job satisfaction

 

Definition

1)      Personality- extraversion

2)      Values- alignment

3)      Work situation- co workers

4)      Social influence

-          coworkers, friends, church

-          How they affect your decision making. 

Term

 

Differentiate between the different theories of job satisfaction and explain how to measure an employee's level of job satisfaction using each of these theories

Definition

·         Facets model = satisfaction among facets

o   Facets = individual components

      - Salary, job security, vacation time, customer service

o   Issues with facet model

       - Weight, easily miss facets, time consuming

·         Herzsberg – 2 factor model

o   Hygiene factor – extrinsic factors

-  Not met – dissatisfied

-  Met – neutral

o   Motivator needs – intrinsic factors

-  Not met – neutral

-  Met – satisfied

o   Issues – doesn’t take into consideration individual preferences

·         Discrepancy model – expands on facet model

o   Facet model + 1 question

- What was the expectation?

·         Steady state model

 o   Intrinsic has a higher effect tan extrinsic

       o Significance of spikes and dips dependent (squiggly)

Term

Describe the relationship between job satisfaction and the following:  performance, organizational citizenship behaviors, employee well-being, absenteeism, and employee turnover

Definition

·         Job satisfaction à performance: positive moderate

·         Job satisfaction àorganizational citizenship behaviors: positive moderate to strong

·         Job satisfaction à employee well-being: positive

·         Job satisfaction à absenteeism: negative weak to moderate

·         Job satisfaction à employee turnover: negative moderate

Term

Describe the different types of employee organizational commitment

Definition

Affectivity

Continuance

Normative

Term

Identify the different stakeholder groups that managers need to consider when making ethical decisions

 

Definition

Employees, customers, community, managers, stockholders, suppliers, distributors, environment, creditors, bond holders

Term

Describe the different rules of ethical decision making

 

Definition

1)      Utilitarian Rule

·         Greatest good for a greatest number

·         Least amt of harm

·         Problem: majority rules, no one looks org for minority

2)      Moral Rights Rule

·         Decision fundamental/ inalienable rights

·         Rights to freedom, life, safety, privacy, freedom of speech and property

·         Golden “Do on to others as you would have do unto you”

3)      Justice Rule

·         Fairness

·         Equity

o   Process: procedures, policies, rules

·         Impartial

4)      Pratical Rule

·         Professional: Does the decisions fall within accepted values or standards of business community

·         Societal: Willing to see decision communicated to these impacted by it

·         Individual: Significant to others

Term

Describe Kohlberg's Theory of Cognitive Moral Development.  What does this mean for managers?

Definition

Preconventional Level (ego driven)

Stage One: Punishment avoidance

-          Lear right from wrong based on punishment

Stage two: Exchange- fairness for ones self

-          Is it fair for us?


Conventional Level (others)

- Majority adults in industrialized societies

- using outside for guidance

Stage Three: significant others (expectations)

Stage Four: society’s rules and laws


Principal Level (Self)

- Decisions come from within

- Less than 20% reach this level

- Internal moral compass

Stage 5: principals of moral rights and justice

Term

Understand why the effective management of diversity is both an ethical and business imperative.

Definition

 

·         comparative advantage

o   employees

-  improves managerial decisions making

-  variety points of views

-  approaches to problems and opportunities

-  customers are diverse therefore…attuned to what goods and services diverse segments want and do not want


·         increase retention  of valued employees, decreasing cost of hiring replacements

·         avoid costly lawsuits

 

Term

All major equal employment opportunity laws affecting human resource management.

Definition

·         1963 equal pay act

o   Men and women must be paid equally if they are performing equal work

o   180 day statute of limitations – 180 days to find out if the pay is equal for act to work

o   Lilly Ledbetter Act – 180 day period resets after every pay period

·         1964 Title VII Civil Rights Acts

o   Employers cannot discriminate based on race, religion, sex, color, national origin

§  Hiring, firing, recruiting, teaching, discipline/discharge, physical/working conditions, transfer, promotions, etc..

o   Conditions – 15 or more employees

·         1967 Age Discrimination in employment act (ADEA)

o   Can’t discriminate against employees over the age of 40

o   Decisions must be based on ability not age

o   Restricts mandatory retirement

o   Bonifide Occupational qualification (BFOQ)

§  Obvious BFOQ

·         Ex. advertising

§  Public Safety BFOQ

·         Ex. Pilots (65), firefighters (57), police officers (65)

o   Conditions – 20 or more employees

·         1978 Pregnancy Discrimination Act

o   On basis of pregnancy, childbirth or any resulting medical condition

·         1990 Americans with Disabilities act (ADA)

o   Disabled individuals are required reasonable accommodations and can’t result in undue hardship

o   Has to be for a documented mental condition

·         1991 civil rights act

o   Discrimination against race, religion, sex, color, national origin

o   Allows for punitive damages, compensatory damages, back pay

·         1993 family and medical leave act (FMCA)

o   Employees provide up to 12 weeks of unpaid medical and family reasons

§  Childbirth, adoption, foster care

§  Maternity, paternity, illness (self, parent, domestic partner, child)

o   Conditions

§  50 or more employees

§  1 year employment or 1250 hours of work

Term

 

Sexual harassment: forms of sexual harassment and steps managers can take to eradicate sexual harassment


 

Definition

Forms:

1)      Quid Pro Quo

·                    2)      Hostile Work Environment

Steps Managers take to eradicate:

1)      Communicate policy

2)      Fair complaint procedure to investigate

3)      Take corrective actions as soon as possible

4)  Sexual harassment education and training to all org members   

 

Term

         Identify the main forces in a global organization’s task and general environments, and describe the challenges that each environment presents to managers.

Definition

Organization à task environment à general environment

·        

    Task environment – immediate direct influence

·         Competitors – the most potent

·         Customers – critical

·         Managing diversity

o   Individual needs of customers

·        

     General environment

·         Economic factors

o   Inflation

o   Interest rates

o   Economic growth/decline

·         Technological forces

o   Tools, equipment, machines…

o   Improvements

·         Social cultural forces

o   Pressures that stem from the value system

·         Demographic forces

o   Changes in the protective classes (gender, age, race, religion, national origin…)

·         Political and legal forces

o   Changes in law

o   Ex. new regulations, increase in environment protection

 

Term

         Discuss why national cultures differ and why it is important that managers be sensitive to these differences. Discuss Hofstede’s Model of National Culture

·   

Definition

 

            National Culture- because of cultural differences, management practices that are effective in one country might be troublesome in another. Often, management practices must be tailored to suit the cultural contexts within which an organization operates.


·         Hofstede’s Model of National Culture

    developed 5 demensions along which national cultures can be placed:


o   Ivdividualism (personal success) vs. collectivism (people should be judged by their contribution to the group)

o   Power distance- the degree to which societies accept the idea that inequalities in the power and wellbeing of their citizens are due to differences in indiciduals’ physical and itellectual capabilities and heritage. High power distance= inequalities are allowed to persist or grow over time (ex. Gap between rich and poor)

o   Achievement (assertiveness, performance, success, competition and results) vs. nurturing orientation (value quality of life, warm personal relationships, care for the weak)

o   Uncertainity Avoidance- if low, are easy going, value diversity and tolerate differences in personal beleifs and actions.

o   Long term (nation rest on values such as saving and persistence in achieving goals) vs. Short term orientation (concerned with maintaining personal stability or happiness and living for the present

 

Term

Differentiate between programmed and nonprogrammed decisions, and explain why nonprogrammed decision-making is a complex, uncertain process.

 

Definition

Nonprogrammed

·         Unique, novels, original

·         Prob: risky and uncertain because it requires info

Programmed

·         Starts as a nonprogram

·         Performance program

o   Protocol

o   Ex. Customer Service

Term

Describe the steps that managers should take to make the best decisions.


Definition

Classical Decision Making (Prescriptive)

-          How should I make decisions

-          Best optimal solution

-          Information Overload

-          Prob: assumes perfect info

-          Limitations: costs of time and effort

1)      List alternatives

2)      List consequences

3)      Rank order of alternatives- based on personal preferences

4)      Select highest alternative


Administritive Decision Making Model (Descriptive)

-          Individual

-          Based on concepts: bounded rationality, incomplete information, satificing

-          Ethical decision making model

1)      List alternatives

2)      List consequences

3)      Rank order of alternatives- based on personal preferences

4)      Select highest alternative

Term

Identify the advantages and disadvantages to group decision-making, and describe techniques that can improve it.

Definition

Brainstorming

·         Advantages: piggy backing

·         Disadvantages: production- blocking of ideas

o   Solution: tell group problems to solve issue as a group

2)   

Nominal Group Technique

-        Round Robin: each person speaking as the group listens

·         Advantage: get each members opinion in the open

·         Disadvantage: not good when abundance of info and a lot of people

o   Solution: one by one lists, debating alternatives as a group, rank alternatives individually, more efficient in a smaller group

3)     

Delphi Technique: using technology to communicate

·         Advantage: Does not require face time and people in the same room

·         Disadvantage: time issue, piggy backing

o   Solution: ex. Google Docs

 

Advantages overall:

·         Consensus

·         Reduces error

·         Gain different perspectives

·         Reduces group think

Disadvantages overall:

·         Time

·         Cant always get consensus

·         Personal responsibility

·         Group think: clings to one idea

When to use individual decion making:

·         If you have enough info

·         Not enough to go ask another

·         Not enough to buy in

 

Term

Define, describe, and apply concepts of planning.

Definition

Set goals

Course of action

Levels of planning – all engage in goal setting

·         Corporate level

·         Business level/divisional

·         Functional level/departmental

Main reasons for planning

·         Participation

·         Coordination

·         To set a clear direction

·         Control

Term

Describe the steps of the planning process and the relationship between planning and strategy.

Definition

Steps in planning process

1)      Determine the organizational goals and missions

o   Define 1 business (identify customers)

Establish major goals (sense of direction, stretches à organization)

o   Goal setting is specific and difficult

2)      Formulate a strategy

o   Analyze the current situation

o   SWOT analysis

o   VRIO framework

3)      Implementation of strategy

o   Allocate responsibility

o   Allocate resources

o   Draft action plans

o   Establish timetable

o   Control/monitor

Term

Define the components of an organization’s mission statement.

Definition

 

Mission statement

o   Purpose

o   Product/service

o   Customer

o   Distinguish from competition

 

Term

Outline the main steps in SWOT analysis.

Definition

 

SWOT analysis

o   Strengths à internal à VRIO framework

o   Weaknesses àinternal à VRIO framework

o   Opportunities à external à Task and global environment

o   Threats à external à Task and global environmentà Michael Porters 5 forces model


Term

 

Describe Porter's Competitive Forces Model and where in the SWOT analysis this occurs.

 

Explain Porter’s theory of how managers can select a business-level strategy (a plan) to gain a competitive advantage in a particular market or industry.  That is, how can managers increase the value of an organization’s products?

 

Definition

 

Occurs in opportunities and threats

·         Level of rivalry – competition à if high then decrease in profit

·         Potential for entry –  easy à competition high and decrease in profit

·         Power of suppliers à if low then decrease in profit

·         Power of customers à if low then decrease in profit

·         Substitutes – competition à if high then decrease in profit

 

Term

Understand the role resources and capabilities play in achieving competitive advantage using Barney's VRIO framework (Valuable, Rare, Inimitable, Organized).

Definition

VRIO Framework

o   Resources and capabilities à are they valuable, rare, inimitable, organized?

o   None à competitive disadvantage and under industry average

o   Valuable à parity (equity) and average

o   Valuable and rareà short term advantage and above industry average

o   Valuable, rare and inimitableà long term advantage and above industry average


Term

Define, describe, and apply concepts of control.

Definition

Control - the process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals.

 

o   The Control Process:

§   establish the standards of performance, goals or targets against which performance is to be evaluated

§   Measure actual performance

§  Compare actual performance against chosen standards of performance

§  evaluate the result and initiate corrective action is the standard is not being met

Term

Explain how managers can better design jobs to increase intrinsic motivation.

Definition

 


Design jobs to increase intrinsic motivation

Psychological Perspective of Motivation – focus on needs, outcomes

1)      Maslow’s hierarchy of needs – (can’t go back down)

2)      Aldeler – ERG (can be motivated by multiple things)

3)      Growth – physiological needs, safety needs

·         Relativeness – esteem needs, belongingness needs

·         Existence – physiological needs, safety needs

4)      Herzberg – 2 Factor Theory

·         Hygiene·         Motivation

5)      McClellan’s needs

·         Need for achievement, power, affiliation

 

 

Term

Explain how managers use job simplification to improve job design.

Definition

 

  • Identified by Taylor to improve efficiency    
  • Time and Motion Studies - watching process
  • Job simplification- identify certain tasks to be done
  • Job specialization- break jobs amongst others
  • Benchmark- gage output to expect
  • Piece rate system commision
  • PROBLEMS
    • Decrease productivity, motivation, job satisfaction
    • Increase absenteeism and turnover
    • boring, decrease quality
    • extrinsic motivation
    • no further growth
    • standard operating procedures

 

Term

Describe the Job Characteristics Model of job design.  What are the core dimensions of the Job Characteristics Model and what types of outcomes does the Job Characteristics Model influence?  What type of motivation does the Job Characteristics Model attempt to influence?

Definition

 

Job characteristics model of job design (most popular approach)

·         Increases productivity, job satisfaction and intrinsic motivation

·         Decreases absenteeism and turnover

·          different dimensions

o   Skill variety

o   Task identity

o   Task significance

o   Autonomy (empowerment)

§  You have a say à more say à more motivating

o   Feedback

 

Term

Explain how managers tried to use job enlargement (horizontal job loading) and job enrichment (vertical job loading) to improve job design for employees following Frederick Taylor's Principles of Scientific Management job design.

Definition

Job enlargement

·         horizontal job loading

·         Same level of responsibilities but more tasks

Job enrichment

·         vertical job loading

·         Higher responsibility tasks

   ·         Comes from Herzbergs 2 factor theory

Term

Explain what motivation is and why managers need to be concerned about it.

 

Describe the relationship between motivation and performance.

Definition

X(motivation)àààY (performance)

 

  • not the same
  • motivation impacts performance
inputsààperformanceààoutcomes
extrinsic
intrinsic

 


Term

Describe the debate between economists and psychologists regarding what motivates individuals.  How do these fields support their positions?

ECONOMIC PERSPECTIVE

Definition

 

Economic perspective – pay is the key motivating factor for everyone


Agency theory: Agent = CEO, principal = board

·         Theory x – pay for performance

·         Problem – risk

·         Base pay à variable pay

Tournament theory

·         Each level up gets paid more

·         Pay for performance

Efficiency wage theory

·         Pay for performance

·         Industry average

 

Term

Describe the debate between economists and psychologists regarding what motivates individuals.  How do these fields support their positions?

PSYCHOLOGICAL PERSPECTIVE

Definition

 

1)      Maslow’s hierarchy of needs – (can’t go back down)

psychological-pay, safety- job security, belonging- social, esteem-recognition, self actualization

2)      Aldeler – ERG (can be motivated by multiple things)

  – Removes limitations of Maslow's and adds on  

·         Growth  – self actualization

·         Relativeness – esteem needs, belongingness needs

·         Existence – physiological needs, safety needs

3)      Herzberg – 2 Factor Theory

·         Hygiene (intrinsic)

·         Motivation (extrinsic)

4)      McClellan’s needs

·         Need for achievement, power, affiliation

 

 

Term

Describe the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce.

Definition

Equity theory – ratio

·         Compare self to referent (self at a different time/job/expectation..)

·         Compare (self input/outcomes) to (referent input/outcomes)

·         Want self = referent

·         Overpayment inequity

·         Underpayment inequity

o   Ways to resore equity

1.      Change input (do less or do more..)

2.      Change outcomes

3.      Change referent

4.      Change perception (usually with overpayment)

5.      Exit/quit

 

Expectancy theory = E • I • V

·         Looks at input à effort

·         Effort à performance à outcomes

o   Effort à performance

§  Expectancy relationship – do they expect if they put in effort they will perform?

o   Performance à outcomes

§  Instrumentality relationship

o   Outcome

§  Values 

Term

Explain why and how managers can use pay as a major motivation tool.

Definition

Economic perspective – pay is the key motivating factor for everyone

 

Agency theory: Agent = CEO, principal = board

·         Theory x – pay for performance

·         Problem – risk

o   Base pay à variable pay

Tournament theory

·         Each level up gets paid more

·         Pay for performance

Efficiency wage theory

·         Pay for performance

·         Industry average

Term

Describe how managers can use operant conditioning to motivate employees to perform desired organizational behaviors.

 

Describe how managers can use operant conditioning to motivate employees to refrain from engaging in undesired organizational behaviors.

Definition

BF Skinner Operant Conditioning: Power of Consequences

·         Antecedents made up of rules, norms, instructions, and control:

o   Desired behavior

§  Positive reinforcement (rewards)

§  Negative reinforcement (threats)

o   Undesired behavior

§  Remove behavior – extinction

§  Punishment

·         Punish behavior not person

·         Downplay emotions

·         No audience

   ·         Punish close in time to behavior

Term

Describe the schedules of reinforcement (continuous vs. partial). 

Definition

Continuous reinforcement

·         Helps learning take off quickly

·         Continuous rewards

Partial reinforcement

·         Takes longer to learn

·         Will exist longer than continuous

·         Potential of reward

·         Fixed interval – specific – salary

·         Fixed ration – specific – commission

·         Variable interval – average – performance evaluations

·         Variable ration – average – customer service

Term

Differentiate between the content and process theories of motivation.  What types of questions do these theories attempt to answer in trying to motivate employees?

Definition

 

Content theories of motivation

·         Focus on needs and outcomes

o   Maslow’s hierarchy of needs

o   Aldefer – ERG

o   Herzberg’s 2 factor model

o   McClelland’s Needs

Process Theories of motivation

·         Perception, fairness

o   Equity Theory

o   Expectancy theory

o   Procedural justice

§  Under organization justice – fairness

§  Distributive justice – the fairness in the distribution of the outcome

§  Procedural justice – the fairness in the procedures that are used to determine the distribution of outcomes

§  Interactional justice

·         Informational – communication

·         Interpersonal – do you feel valued as an employee? (positive working relationship?)

 

Term

Describe what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders.

Definition

Effective leaders

·         Intelligent

·         Task relevant knowledge

·         Dominance

·         Self confidence

·         High energy levels

·         High stress tolerance

·         Integrity/honesty

·         Emotional maturity

Term

Identify the traits that show the strongest relationship to leadership, the behaviors in which leaders engage, and the limitations of the trait and behavior models of leadership.

Definition

Behavioral approach – what leaders tend to do (Ohio State Studies)

·         Independent--- Consideration--Employee centered

o   Focus on loyalty, respect, relationship, trust

·         Complimentary --Initiating structure--Job centered

o   Focus on goal setting

o   Engage in both behavior styles

·         Based solely on leader

Term

Explain how the Contingency Model of Leadership enhances our understanding of effective leadership and management in organizations.

Definition
Term

Explain the Hersey and Blanchard's Situational Leadership Model. What factors should be used to determine an appropriate leadership style? What factors make up a follower’s readiness level?

Definition