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Rules used in the decision making process as shortcuts - usually adaptive - can lead to biases |
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Tendency to rely too heavily on one trait or piece of information when making decisions. -First impressions lock you in |
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a biased prediction based on the tendency to focus on the most salient and emotionally charged outcome. (primacy, recency, ease of recall) - pay and promotions |
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Tendency to believe or do things because many other people do or believe the same. |
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Tendency to search for or interpret information in a way that confirms one's perceptions. -Grades --> Intelligence -Sampling on the dependent variable |
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People tend to react more |
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-Confirmation Trap -Availability Bias -Anchoring |
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- Pressures toward conformity - Common Knowledge Problem - Pluralistic Ignorance - Group Polarization - Escalation of Commitment - Group Think |
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Groups spend majority of the time discussing information already agreed upon and not enough on unique items |
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Groups agree to a course of action that no individual member prefers because they assume other group members do. |
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Individual judgments often become more extreme after group discussion. |
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- Sunk Cost principle -Group polarization, groupthink, confirmation bias, pluralistic ignorance |
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- Pressure for comformity - Discouragement of minority options - Sense of isolation - Strong Leader |
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- High specialization + high centralization= mechanistic - Low Low = Organic
Or can have team leader but no specialization, no leader but specialized roles. |
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Efficiency vs Flexibility |
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Diverse members, no leader, no specialization. - encourage wild ideas, risk taking and mistakes rewarded, prototype often, no criticism. |
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Outcome is Quality Decisions |
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Diverse perspectives, more specialization, organic - Devil's advocate, minority opinions sought out, fact focused, criticism encouraged. |
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Speed and Efficiency Outcome |
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-Homogenous Perspective, hierarchy, specialization, mechanistic - Division of labor, deadline pressure, limited discussions, increased coordination. |
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- activity is rewarding in itself and one desires to do it for its own sake.
-easy to undermine |
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- Desire to perform a behavior in order to acquire material or social rewards or to avoid punishment. |
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Extrinsic Motivation Bias |
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-People say that pay isn't that important but then say that they won't take on more work unless they are paid to do so. |
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-people react against loss of choice. - Choice increases intrinsic motivation and task performance |
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- What you put into an organization is what you should get out of it. - Inputs (time, education, social capital) - Outcomes (salary/bens, promotion, respect) |
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Others should get the same amount of rewards for effort as I do. -if you think you are relatively under-rewarded, you lose motivation. |
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Common Responses to Inequity |
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People want Equity - Either change own input - Change others input/output - Change my perceptions or referent - Leave the organization |
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Managerial Response to Equity Theory |
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Focus on Fairness -correct misconceptions about pay, manage biases about assessing input/output ratios
Vary Outputs to match differences in inputs |
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-Put in effort- to produce a level or performance- believed to lead to desired outcome. |
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3 Parts of Expectancy Theory |
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Expectancy Instrumentality Valence |
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Can I accomplish the task to get the reward. |
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If I accomplish the task will I get the reward |
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Is the reward something that I value for that amount of effort. |
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lead to increased performance |
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when accepted, lead to higher output than easy goals |
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Strategies for Goal Commitment |
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-Rewards -Publicity -Support -Participation -Resources |
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Tie goal achievement with monetary or non-monetary reward |
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Publicized goals to create peer/social pressure to attain it |
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Supportive supervision to aide employees if they struggle to attain goal |
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Collaborate with employee about terms of the goal (due date proficiency level, etc) |
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provide the resources to attain the goal and remove any hindrances. |
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Actual Productivity Equation |
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Potential Productivity - Process Losses (team specific things that hinder potential performance) |
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Three main types of Process Losses |
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Motivation Losses Ability Losses Coordination Losses |
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The greater number of people who are assigned to work on a specific task, the smaller the contribution and one member of the group will make. |
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Solutions to Motivation Loss |
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-Increase accountability -match members to interests - increase group cohesion and trust - re-examine rewards system - be aware of ability losses |
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The presence of others can lead to drops in performance. (Predicted by ability)
- Distraction - Social Facilitation or Inhibition |
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Solutions to Ability Losses |
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Formal Training Matching tasks with individual abilities |
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Segmentation/Component Focus Conceptual Blocking Production Blocking |
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Segmentation/Component Focus |
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Focusing on division of labor at the expense of the end product.
-Leads to disjointed final projects. -Missing synergies |
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The inability to listen and think at the same time. -Missed Opportunities, miscommunication |
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Waiting on others to finish their parts before starting on your own part. |
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Solutions to Production Losses |
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MAKE PLANS -make sure people understand their role, end product and where they fit in the group. -note talking skills -Agendas train team together to create common language - clear communication channels |
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-specific -timely -offers alternative behaviors -frequent -Goods and bads -Constructive -Focus on behavior and not personality. |
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Purpose of Performance Appraisals |
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1. Evaluation 2. Development 3. Rewards |
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-More accurate assessment of performance -Provide accurate assessment of future possibilities and promotions |
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-Change or reinforce behaviors/outputs -Game plan for fixing weaknesses -Plan for training and development -Goal Setting |
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-inform individual of bonuses, raises, or when to expect them. - Tailor rewards to employees needs - Let them know how reward can improve next year. |
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Internal Locus for success External Locus for failures. |
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-Lowest performers worst at predicting performance. -Top performers underestimate themselves
ACCURACY CHECKS ARE IMPORTANT IN APPRAISALS |
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Building Competence > Demonstrating Competence -Enjoy new tasks -Failure seen in positive terms |
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Demonstrating Competence > developing competence -people prefer tasks that they have mastered already - Failure seen in negative terms |
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The use of power and influence to direct the activities of followers toward goal achievement. |
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the degree to which a leaders efforts result in: -achievement -continued commitment -mutual respect, trust, obligation |
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Conscientiousness, Low Agreeableness, Openness, Extraversion, Cognitive Ability, Energy Level, Stress Tolerance, Self Confidence
-All for emergence -Minus conscientiousness and low agreeableness for effective. |
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30% genetic, 70% other factors of life |
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Lead by clarifying roles and task requirements |
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Transformational Leadership |
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motivate through social identification and empowerment. |
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Instills pride, gains respect and trust through charisma. |
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-Provides a vision for the future -Communicates high expectations -Uses symbols to focus efforts -Expresses important purposed in simple terms |
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Promotes high intelligence, rationality, and careful problem solving. |
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Gives personal attention, treats employees individually and advises as needed. |
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Both parties want the same thing. -To find, don't assume that interests are mutually exclusive. -Focus on information sharing. |
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-Win-win situations can be created -Common in long term relationships
- Logrolling- giving up on integrative issues that are less important to gain on issues that are important. (maximizes better than 50/50 split. |
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Zero Sum Issues- is one wins then the other loses. (fixed pie bargaining) |
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Factors for successful Bargaining |
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BATNA= power -Efficiency in determining bargaining zone -Not falling pray to biases and leveraging them against the opponent. - Influence tactics. |
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Best Alternative To a Negotiated Alternative |
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The price at which you will walk away from a negotiation. |
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Cialdini's 6 Principles of Influence |
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-Reciprocity -Commitment and Consistency -Scarcity -Social Validation -Liking -Authority/Expertise |
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-More likely to comply with a request from someone who has previously provided a favor or concession. |
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Commitment and Consistency |
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- after committing to a position, people are more likely to to comply with requests consistent with that position. |
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- as a resource becomes more scarce |
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More likely to comply if similar to what others are doing |
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people comply with request if they like a person.(attractive, similar) |
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People more persuaded by someone who possesses more status or expertise regardless of the strength of their arguments. Superficial (height, glasses, accent, etc) |
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New Relationships. Statements and promises and words can be relied upon |
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Reputation. rational assessment of authority's trustworthiness based on track record. |
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depend on feelings toward the authority that go beyond rational assessment. |
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based on Outcomes.
(rewarded according to effort, fairly, equal share of resources needed to succeed. |
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based on process -rules followed, accurately applied, correct, biases are surpressed |
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Effects of Distributive vs. Procedural Justice |
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Peoples reactions to outcomes are much stronger when there is low procedural justice. |
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People are more likely to accept an unfavorable decisions given if the reasons were perceived to be fair. |
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Reflects the perceived fairness of the treatment received by employees from their authorities. -Respect Rule -Propriety Rule |
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Reflects the perceived fairness of the communications provided to employees from authorities -Justification Rule -Truthfulness Rule |
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whether authorities treat employees in a dignified manner. |
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Whether authorities refrain from making improper or offensive remarks. |
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mandates authorities to explain decision making procedures and outcomes in a reasonable manner. |
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Authorities communications be honest and candid. |
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Shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of individuals. |
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expresses the core values of an organization's members |
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develop inside larger organizations and relect the common problems situations and or experiences of the members |
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core values are strongly held and immensely spread. |
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vagueness, ambiguity, and/or inconsistencies. |
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More culture correlated with higher profits. -Extension of reward system (equity theory) -determinant of turnover (P-O Fit) -directs toward correct behaviors even w/o management. - |
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Functions of Organizational Culture |
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1. Identity 2. Facilitate Commitment 3. Promote Social System Stability 4. Help make sense of surroundings. |
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Observable Products of the culture (symbols, songs, texts, ceremonies.) |
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Specify rules of appropriate behavior. Norms about what is right and wrong, important/unimportant. |
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Underlie organizational culture, taken for granted, shared beliefs: hidden. Must be inferred. |
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Tools for Managing Culture |
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Special Physical Settings Symbols Ceremonies Costumes Jargon/Language Stories/Scripts |
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Special Physical Settings |
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Promote cohesion, facilitate role-taking, sealed from outside world. |
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Objects to reinforce and communicate quickly and economically the values and ideology |
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Foster cohesion and morale Create status hierarchy with equal opportunity reward structure |
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Reinforce collective organizational identity, and the shared faith of all of the members. |
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-facilitates communication -communicates assumptions, values and ideology |
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Narratives that make ordinary actions extraordinary. |
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leadership- vision top mgmt- rewards nd structure selection- hires fit into culture socialization- taught how to behave. |
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