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LOB Final Study Guide
The organization nation
72
Education
Professional
10/09/2008

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Term
Organizational Behavior
Definition
the study of individual processes, interpersonal processes, and organizational processes
Term
individual processes
Definition
human behavior in organizational settings
Term
interpersonal processes
Definition
the interface between human behavior and the organization
Term
organizational processes
Definition
the organization itself
Term
Organizations influence our lives powerfully. Most people...
Definition
are born/educated in organizations

acquire most of their material possessions from organizations

die as members of organizations

spend most of their lives in
Term
Studying OB helps managers understand:
Definition
why others in the organization behave as they do:

personal needs, motives, behaviors, feelings and
career dynamics

attitudinal processes, individual differences,
group dynamics, inter group dynamics,
organization culture, power, and political behavior

interactions with people outside of the organization
Term
The Importance of OB
Definition
The study of organizational behavior offers perspectives on the human side of management

People as organizations
People as resources
People as people
Term
Interpersonal Managerial Roles
Definition
Term
Informational Managerial Roles
Definition
Monitor: scan business week for information about competition
Disseminator: send out memos outlining new policies
Spokesperson: Hold press conference to announce new plant
Term
Decision-Making Managerial Roles
Definition
Entrepreneur: develop idea for new product and convince others of its merits
Disturbance Handler: resolve dispute
Resource Allocator: allocate budget requests
Negotiator: settle new labor contract
Term
Primary dimensions factors:
Definition
age, race, ethnicity, gender, sexual orientation, physical/mental abilities.

These factors are either inborn or exert extraordinary influence on early socialization
Term
Secondary dimensions factors:
Definition
educational background, geographical location, income, marital status, military experiences, parental status, religious beliefs, work experiences.

These factors matter to us as individuals and that
to some extent define us to others
Term
Assimilation:
Definition
Process through which members of a minority group are forced to learn the ways of the majority group.
Perpetuates false stereotypes and prejudices

Dominant groups make decisions based on their own values/believes

Minority groups have little say in decision-making
Term
Benefits of Valuing Diversity
Definition
Richness of ideas/perspectives can lead to new product/market development and improvement in customer services

Workers feel valued and are therefore more creative and motivated

Higher productivity, better teamwork, deeper commitment to the organization and its goals
Term
Technology
Definition
Methods used to create products both tangible and intangible
Term
Manufacturing Organization
Definition
Transforms resources into tangible outcomes that are then sold
Term
Service Organization
Definition
Transforms resources into an intangible output creating time/place utility for customers
Term
Advances in Information Technology
Definition
Positive: leaner organizations, more flexible operations, increased collaboration among employees, more flexible work sites, improved management processes/systems

Negative: less personal communication, less “down time”, decreasing cycle times, increased sense of communication and decision-making urgency
Term
Knowledge workers are:
Definition
Employees who add value simply because of what they know
(computer scientists, physical scientists, engineers, product designers, video game developers)

Working requirements/performance motivation needs are unique

Specifically tailored compensation packages
Term
Outsourcing:
Definition
Is the practice of hiring other firms to do work previously performed by the organization itself

Helps firms to focus on core activities

Lowers labor costs through exportation of work

Often soon to be out of job workers train the newly hired foreign replacements
Term
A psychological contract
Definition
is a person’s overall set of expectations
regarding what he/she will contribute to
the organization and what the organization
will provide in return.

Unlike a business contract, a psychological
contract is not written on paper, nor are all
of its terms explicitly negotiated.
Term
Person-Job Fit
Definition
The extent to which the contributions made by the individual match the inducements offered by the organization.
Not static
Term
Individual Differences
Definition
Personal attributes that vary from one person to another.

Individual differences include personality, attitudes, perception, and creativity.
Term
Motivation and Its Importance
Definition
Motivation is the set of forces that lead people to behave in particular ways.
Motivation is important in organizations because, in conjunction with ability and environment, it determines performance.
Term
P = M + A + E
Definition
P … Performance

M … Motivation (must want to do the job)

A … Ability (must be able to do the job)

E … Environment (must have the resources to do the job)
Term
Equity Theory
Definition
Based on the relatively simple premise that people in organizations want to be treated fairly.
Term
Equity
Definition
The belief that we are being treated fairly in relation to others.
Term
Inequity
Definition
The belief that we are being treated unfairly in relation to others.
Term
Positive Reinforcement
Definition
A reward or other desirable consequence that follows behavior.
Term
Avoidance (Negative Reinforcement)
Definition
Rather than receiving a reward following a desirable behavior, the person is given the opportunity to avoid an unpleasant consequence.
Term
The Basic Expectancy Model
Definition
People are motivated by how much they want something and the likelihood they perceive of getting it.
Term
Participation
Definition
Occurs when employees have a voice in decisions about their own work.
Term
Empowerment
Definition
Is the process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility.
Term
Variable Work Schedules
Definition
Compressed work week: Employees work a full forty-hour week in fewer than the traditional five days
Term
Flex time:
Definition
Employees gain more personal control over the hours they work each day
Term
Goal setting
Definition
Is a useful method of enhancing employee performance. From a motivational perspective, a goal is a desirable objective.
Term
Goals are useful for two purposes:
Definition
Goals provide a useful framework for managing motivation. Managers and employees can set goals for themselves and then work toward them.
Goals are an effective control device; control is monitoring by management of how well the organization is performing.
Term
Purposes of Rewards
Definition
Attract, retain, and motivate qualified employees.
Provide equitable, fair, and competitive compensation for an employee’s contribution to the organization.
Encourage desired performance behaviors by employees.
Term
Meanings of Rewards
Definition
The surface value of a reward is its objective meaning or worth to an employee.
The symbolic value of a reward is its subjective and personal meaning or worth to an employee.
Term
The compensation package
Definition
The total array of money (wages, salary, commission), incentives, benefits, perquisites, and awards provided by the organization
Term
Piecework programs:
Definition
# of units produced
Term
Gain-sharing programs
Definition
cost reduction ideas
Term
Bonus systems
Definition
lump sum
Term
Long-term compensation
Definition
stock performance, earnings per share
Term
Merit pay
Definition
performance
Term
Profit-sharing
Definition
predetermined portion of company profits
Term
Employee stock option plans
Definition
reduced rate
Term
Benefits
Definition
Payment for time not worked both on (lunch, breaks) and off (vacation, holidays) the job.

Social Security contributions
Unemployment compensation
Disability and workers’ compensation
Life and health insurance programs
Pension (the fund) or retirement plans
Term
Job Sharing
Definition
Two or more PT employees share one FT job
Term
Telecommuting
Definition
Employees spend part of their time working off-site
Benefits to organizations
Reduced absenteeism/turnover
Reduction in indirect expenses
Downside considerations
Employees miss the workplace social interaction
Employees lack self-control/discipline
Difficulties arise when coordinating in-face meetings
Workplace safety requirements
Term
Participation
Definition
Occurs when employees have a voice in decisions about their own work.
Term
Empowerment
Definition
Is the process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility.
Term
Common titles:
Definition
Chief financial officer
Vice president for human resources
Marketing manager
Director of public relations
Term
Uncertainty avoidance (preference for stability):
Definition
people feel threatened by unknown situations and prefer to be in clear and unambiguous situations
Term
Masculinity (assertiveness or materialism):
Definition
Emphasis on aggressiveness and the acquisition of money and other possessions as opposed to concern for people and overall quality of life
Term
Managerial Skills
Definition
Technical: Skills necessary to accomplish specific tasks within the organization

Interpersonal: Skills used to communicate with, understand, and motivate individuals and groups

Conceptual: Skills used in abstract thinking

Diagnostic: Skills to understand cause-effect relationships and to recognize optimal solutions to problems
Term
Performance Management Basics
Definition
The Appraiser typically employee’s supervisor
Incomplete or inaccurate information about an employee’s performance
Appraiser’s lack of first hand knowledge about the employee
Multiple rater systems
360 degree feedback
Term
Group
Definition
A group is two or more people who interact with one another such that each person influences and is influenced by each other person.

Group members must be interactive and influence each other.

Group members do not necessarily share a goal or motivation.

There are limits on group size. A collection of people so large that its members cannot interact with and influence one another is not a group.
Term
Formal Groups
Definition
Are established by the organization to do its work and are usually included in the organization chart.
Term
Formal Groups Include:
Definition
The command group, which is a relatively permanent formal group with functional reporting responsibility.(a company’s HR department)

The task group, which is a relatively temporary formal group established to do a specific task.

The affinity group, which consists of permanent collections of employees from the same level in the organization who meet on a regular basis to share information, capture emerging opportunities, and solve problems.
Term
Size
Definition
The number of members of the group; size affects the number of resources available to perform the task.

Beyond a certain point, greater complexities of interactions and communication may make it difficult for large groups to function.
Term
Social loafing
Definition
the tendency of some members of groups to put forth less effort in a group than they would if working alone.
Term
Norms
Definition
A norm is a standard against which the appropriateness of a behavior is judged.
Group norms usually are established during the second stage of group development.
Term
Norms serve four purposes:
Definition
Norms help the group survive.
Norms simplify and make more predictable the behavior expected of group members.
Norms help the group avoid embarrassing situations.
Term
Conflict
Definition
disagreement among parties. It has both positive and negative characteristics.
In organizations, conflict is often generated by political behavior or battles over limited resources.
Term
A total absence of conflict can lead to apathy while a moderate degree of conflict can:
Definition
stimulate new ideas.
promote healthy competition.
energize behavior.
Term
Differentiating Teams from Groups
Definition
Team
All members are committed to a common goal

Group
Members need
not have a
common goal
Term
Leadership
Definition
As a process, leadership is the use of noncoercive influence to direct and coordinate activities of group members to meet a goal.
As a property, leadership is the set of characteristics attributed to those who are perceived to use such influence successfully.
Term
The Importance of Leadership
Definition
From an organizational viewpoint, leadership is vital because it has such a powerful influence on individual and group behavior.
Term
Leadership Versus Management
Definition
Leadership and management are related, but they are not the same.
Organizations need
both management
and leadership if they
are to be effective.
An individual may be
a manager, a leader,
both, or neither.
Term
Trait Approaches to Leadership
Definition
Early researchers believed that leaders had unique qualities or traits that distinguished them from their peers.
Trait research has focused on identifying leadership traits, developing trait measurement methods, and using the methods to select leaders.
The trait approach has been largely unsuccessful in identifying universal leadership characteristics.

Current:

Current trait research focuses on drive, motivation, honesty and integrity, self-confidence, cognitive ability, knowledge of the business, and charisma.
Term
Influence
Definition
the ability to affect the perceptions, attitudes, and behaviors of others.
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