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OB
3a/3b
121
Business
Undergraduate 3
12/03/2012

Additional Business Flashcards

 


 

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Term
Rational Decision Making Steps
Definition
Step 1: Identify and define the problem.
Step 2: Identify decision criteria.
Step 3: Weigh the criteria.
Step 4: Generate alternatives.
Step 5: Evaluate each alternative.
Step 6: Compute the optimal decision.
Term
Availability Bias
Definition
The tendency of decision makers to give preference to recent information, vivid images that evoke emotions, and specific acts and behaviors that they personally observed
May overlook “rational data”
Term
Representative Bias
Definition
When decision makers judge the likelihood of an event’s occurrence based on its similarity to previous events and their likelihood of occurrence
We ignore objective data that does not fit our experiences
Term
Programmed Decisions
Definition
Routine
Recurring
Certainty
Term
Unprogrammed Decisions
Definition
Non-Routine
Not Recurring
Uncertainty
Term
Heuristic
Definition
Heuristics are strategies using readily accessible, though loosely applicable, information to control problem solving in human beings and machines.
Term
Groupthink
Definition
A psychological phenomenon that occurs within groups of people, in which the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.
Term
Logrolling
Definition
Trading of favors, placing value on votes and using them as a currency.
Term
Escalation of Commitment
Definition
Sticking to an ineffective course of action for too long.
Term
Tacit Knowledge
Definition
Information gained through experience, difficult to formalize and share.
Term
Explicit Knowledge
Definition
Information that can be easily put into words and shared with others.
Term
Group Problem Solving Techniques
Definition
Consensus
Brainstorming
Nominal Group Technique
Delphi technique
Devil’s advocate
Dialectical inquiry
Computer-aided decision making
::reduces consensus roadblocks while collecting more information in a shorter period of time.
Term
Conflict
Functional/Dysfunctional
Definition
one party perceives Its interests are being opposed or set back by another party.
Functional: Serves organization's interests.
Dysfunctional: Threatens organization's interests.
Term
Dysfunctionally High Conflict
Definition
Tension, anxiety, stress
Drives out low conflict tolerant people
Reduced trust
Poor decisions because of withheld or distorted information
Excessive management focus on the conflict
Term
Dysfunctionally Low Conflict
Definition
Few new ideas
Poor decisions from lack of innovation and information
Stagnation
Business as usual
Term
Devil's Advocacy
Definition
Assigning someone the role of critic.
Term
Dialectic Method
Definition
Fostering a debate of opposing viewpoints to better understand an issue.
Term
Integrating (Problem Solving)
Definition
High concern for self and others.
Interesting parties confront issue, identify and weigh options, and select a solution.
Time consuming.
Longer-lasting impact: deals with underlying problems and not just symptoms.
Term
Obliging (Smoothing)
Definition
High concern for others, low concern for self.
Involves playing down differences while emphasizing commonalities.
Innapropriate for complex problems. Encourages cooperation.
Temporary fix, does not solve underlying problem.
Term
Dominating (Forcing)
Definition
Low concern for others, high concern for self.
Other party's needs are ignored. Appropriate when an unpopular solution must be implemented, the issue is minor, or a deadline is near.
Fast, breeds resentment.
Term
Avoiding
Definition
Low concern for self and others.
Passive withdraw or active suppression of the issue. Appropriate for trivial issues, or when the cost of confrontation outweigh the benefits of resolving the conflict.
Temporary fix.
Term
Compromising
Definition
Moderate concern for self and others.
Give-and-take approach. Appropriate when parties have opposite goals or equal power. Everyone gets something, temporary fix.
Term
Alternative Dispute Resolution
Definition
Avoiding lawsuits by resolving conflicts informally or through arbitration/mediation.
Term
Facilitation
Definition
Third party, typically a manager, informally urges disputing parties to deal directly with each other positively and constructively.
Term
Conciliation
Definition
Neutral third party acts as a communication conduit for the disputing parties.
Term
Peer Review
Definition
Panel of trustworthy co-workers hear both sides of an argument and make a decision.
Term
Ombudsman
Definition
A trustworthy and respected employee within the organization hears arguments and tries to arrange a solution.
Term
Mediation
Definition
Trained, third party hired by the organization informally guides disputing parties to explore new solutions. Doesn't make final decision.
Term
Arbitration
Definition
Disputing parties agree to accept decision of an arbitrator after a formal court-like discussion.
Term
Distributive Negotiation
Definition
Any gains to one party results in an expense to the other party. "Fixed-pie"
Term
Integrative Negotiation
Definition
Applies to more complex situations where many issues are at stake. A solution may make both parties better off.
Term
Traditional work groups
Definition
the least autonomous: two or more people work together to achieve a shared goal. They generally have no direct responsibility or control over the work and how it is carried out, but they are responsible, sometimes jointly, for "executing the task."
Term
Employee involvement teams
Definition
meet on company time weekly or monthly to provide advice or make suggestions to management regarding work and production issues, e.g. plant safety, customer relations, or product quality. They have no authority, however, to make decisions or take ownership of the process.
Term
Semi-autonomous work groups
Definition
do not not just give advice and suggestions to management, but they have authority to make some of what were traditionally considered management decisions and to solve problems regarding product/service tasks. They are likely to receive budget, work quality and performance, and competition information.
Term
Self-managing teams
Definition
Members manage and control all majors tasks related to a product or service (acquisition of materials, manufacturing and delivery, etc. ).without prior management approval.
Term
Self-designing teams
Definition
have all the characteristics of self-managing teams, but they can also control and change the design of the teams themselves, the tasks they do and how they do them, and who belongs to the teams.
Term
Stage 1: Forming
Definition
Group members tend to be uncertain and anxious about their roles, whose in charge and the group’s goals
Mutual trust is low.
Term
Stage 2: Storming
Definition
Time of testing
Individuals try to determine how they fit into the power structure
Procrastination may occur
Term
Stage 3: Norming
Definition
Questions about authority and power are resolved through unemotional, matter-of-fact group discussion
Group cohesiveness – the “we” feeling begins binding group members together
Term
Stage 4: Performing
Definition
Activity focused on solving task problems
Climate of open communication, strong cooperation, and lots of helping behavior
Term
Stage 5: Adjourning
Definition
Work is done
Time to move on to other things
Term
Formal Groups
Definition
Officially designated
Head serves a “linking pin” role
Permanent or temporary
Some formal group types
Cross-functional teams
Project teams
Virtual group
Term
Informal Groups
Definition
Not officially designated

Examples of informal groups
Friendship groups
Interest groups
Term
Cohesiveness-Productivity Relationship
Definition
[image]
Term
Encoding
Definition
Sender encodes an idea or thought by translating it into a code or language that others can understand. Words, numbers, pictures, nonverbal cues.
Term
Medium
Definition
Face to face conversation, telephone call, e-mail, voice mail, video conference, memos, photos, meetings, charts, graphs. Medium choice dependent on what the information is.
Term
Decoding
Definition
Receiver reverses process of encoding by translating verbal, oral, or visual aspects of a message into a form that can be interpreted. Subject to social and cultural values that the sender may not be aware of.
Term
Noise
Definition
Interference with the transmission and understanding of a message.
Term
Nonverbal Communication
Definition
Messages sent outside of the written of spoken word.
Body movement/gestures.
Touch
Facial expressions
Eye contact
Term
Gender Differences in Communication
Definition
Women more likely to: share credit for success, ask questions for clarification, give feedback by mitigating criticism, indirectly tell others what to do.
Men more likely to: boast about themselves, give feedback bluntly, withhold compliments, less likely to ask questions and admit fault/weakness.
Term
Media Richness
Definition
High richness to low richness:
Face to face communication.
Verbal communication electronically transmitted.
Personal written communication,
electronically transmitted.
Impersonal written communication.
Term
Active Listening Strategies
Definition
Clarify responses
ask questions to clear up ambiguities
Paraphrase responses
Restating speaker’s comments in your own words
Summarize responses
review the speaker’s main points
Term
Personal Barriers
Definition
Ability to effectively communicate
Way people process and interpret information
Level of interpersonal trust between people
Stereotypes and prejudices
Poor listening skills
Natural tendency to evaluate or judge the sender’s message
Inability to listen with understanding
Egos
Term
Cultural Barriers: High- and Low-Context Cultures
Definition
High-context cultures
Primary meaning derived from nonverbal situational cues
Low-context cultures
Primary meaning derived from written and spoken words
Also, different frames of reference and emotional constraints
Term
Physical Barriers
Definition
Distance between employees
Time zone differences
Work and office noise
Quality of telephone lines
Crashed computers
Term
Semantic Barriers
Definition
Semantics
study of words
Semantic barriers
encoding and decoding errors that involve transmitting and receiving
fueled by the use of jargon and acronyms
Term
Assertive Style
Definition
Expressive and self-enhancing, but does not take advantage of others.
Term
Aggressive Style
Definition
Expressive and self-enhancing, but takes unfair advantage of others.
Term
Non-Assertive Style
Definition
Timid and self-denying behaviour.
Term
Chester Barnard
Definition
compliance and the "zone of indifference"
orders must be perceived in neutral terms to be carried out without conscious questioning of authority. Incentives,can be used to expand zone, but material incentives alone limited in their ability to effect compliance - need also use status, prestige, personal power.
Term
Niccolo Machiavelli
Definition
importance of "the leader" and "the end justifies the means"
Term
Stanley Milgram
Definition
loyalty, discipline, self-sacrifice, and his "theory of obedience"
Shock test.
Term
Rational persuasion
Definition
Trying to convince someone with reason, logic, or facts.
Term
Inspirational appeals
Definition
Trying to build enthusiasm by appealing to others’ emotions, ideals, or values.
Term
Consultation
Definition
Getting others to participate in planning, making decisions, and changes.
Term
Ingratiation
Definition
Getting someone in a good mood before making a request.
Term
Personal appeals
Definition
Referring to friendship and loyalty when making a request.
Term
Exchange
Definition
Making express or implied promises and trading favors.
Term
Coalition tactics
Definition
Getting others to support your effort to persuade someone.
Term
Pressure
Definition
Demanding compliance or using intimidation or threats.
Term
Legitimating tactics
Definition
Basing a request on one’s authority or right, organizational rules or policies, or express or implied support from superiors.
Term
Three Influence Outcomes
Definition
1. Commitment
- substantial agreement followed by initiative and
persistence in pursuit of common goals

2. Compliance
- reluctant agreement requiring subsequent prodding to satisfy minimum requirements

3. Resistance
- stalling, unproductive arguing, or outright rejection
Term
Legitimate Power - Organizational
Definition
obtaining compliance through formal authority. (most basic source of managerial and supervisory power)
Term
Reward Power - Organizational
Definition
obtaining compliance with promised or actual rewards.
Term
Coercive Power - Organizational
Definition
obtaining compliance through threatened or actual punishment.
Term
Information Power - Organizational
Definition
obtaining compliance through the access to and/or the control of information.
Term
Expert Power - Personal
Definition
obtaining compliance through one’s knowledge or information.
Term
Referent Power - Personal
Definition
obtaining compliance through charisma or personal attraction.
Term
What tactics are most likely to change followers’ attitude?
Definition
Tactics that create favorable follower attitude.
Consultation, inspirational appeal, rational persuasion.

Tactics that result in compliance without changing attitudes, coercion and manipulation.
Pressure, legitimating, some coalition building
Term
Which tactics are most likely to influence commitment ?
Definition
Consultation, inspirational appeal and rational persuasion moderately effective regardless of direction

Pressure, coalition and legitimating usually ineffective (used when resistance is anticipated)

Ingratiation and exchange moderately effective influencing peers and subordinates and ineffective with superiors (not good with weak power bases)
Term
Most used Influence Tactics
Definition
Consultation
Rational Persuasion
Inspirational Appeals
Ingratiation
Term
Moderately used Influence Tactics
Definition
Upward Appeals
Coalition
Term
Least used Influence Tactics
Definition
Exchange
Term
Network Level - Top
Definition
Cooperative pursuit of general self- interests
Term
Coalition Level - Middle
Definition
Cooperative pursuit of group interests in specific issues
Term
Individual Level - Bottom
Definition
Individual pursuit of general self-interests
Term
Political Tactics in order of occurence
Definition
Attacking or blaming others
Using information as a political tool
Creating a favorable image
Developing a base of support
Praising others
Forming power coalitions with strong allies
Associating with influential people
Creating obligations
Term
Leader trait
Definition
personal characteristics that differentiate leaders from followers.
Term
Leadership prototype
Definition
mental representations of the traits and behaviors possessed by leaders.
Term
Gender Difference, Mail vs Female
Definition
Men displaying more task leadership
Women displaying more social leadership
Women more democratic or participative
Term
Male vs Female Leadership
Definition
Men more directive
equally assertive
Women executives rated by peers, managers, and direct reports
Term
Shared leadership
Definition
Simultaneous, ongoing, mutual influence process in which people share responsibility for leading
Term
Servant leadership
Definition
focuses on increasing services to others rather than oneself
Term
Transactional Leader
Definition
approaches followers with an eye to exchanging one thing for another
Term
Transformational Leader
Definition
recognizes and exploits an existing need or demand of a potential follower… (and) looks for potential motives in followers, seeks to satisfy higher needs, and engages the full person of the follower
Term
Fiedler contingency theories of leadership
Definition
Leader is unable to change behavior readily
The performance of a leader depends on these interrelated factors:
The degree to which the situation gives the leader control and influence
The leader’s basic motivation
Situational control
refers to the amount of control and influence the leader has in his immediate work environment
Term
House contingency theories of leadership
Definition
Leader is able to choose from a behavioral repertoire
Describes how leadership effectiveness is influenced by the interaction between leadership behaviors and a variety of contingency factors
Term
Contingency factors
Definition
variables that influence the appropriateness of a leadership style
Term

Blake/Mouton Grid

Concern for people and concern for others.

Definition
[image]
Term
LMX (Leader-Member Exchange) Model of Leadership
Definition
In-group exchange
A partnership characterized by
mutual trust, respect and liking
out-group exchange
A partnership characterized by
a lack of mutual trust, respect and liking
Term
Leader trait
Definition
personal characteristics that differentiate leaders from followers.
Term
Tree-ring distinction
Definition
Founders have the largest claims, followed by the employees hired early in the company’s life. Later employees have smaller claims, and some enter too late to cash in on the IPO bonanza.
Term
Blurred Lines
Definition
1) Is [my pursuing the customer] economically hurting my company—is it competing with my company? And 2) Are my dealings with a customer taking time away from my time as an employee?
Term
Utilitarianism Theory
Definition
does the action yield the greatest net benefits?
Examine an action’s effects to decide whether it is morally correct
Action is morally right if the total net benefit of the action exceeds the total net benefit of any other action
Assumes a person can assess all costs and benefits of an action
Term
Rights Theory
Definition
does the action negatively affect someone’s moral rights?
Right: a person’s just claim or entitlement
Focuses on the person’s actions or the actions of others toward the person
Legal right: defined by a system of laws
Moral right: based on ethical standards
Purpose: let a person freely pursue certain actions without interference from others
Term
Justice Theory
Definition
does the action give a fair distribution of costs and benefits among those affected?
Looks at the balance of benefits and burdens distributed among members of a group
Can result from the application of rules, policies, or laws that apply to a society or a group
Just results of actions override utilitarian results
Rejects view that an injustice is acceptable if others benefit the action
Term
Egoism Theory
Definition
will the action lead to other people behaving toward me in a way I would like?
Self–centered form of ethics
Two forms of ethical egoism: individual and universal
Individual ethical egoism
Judges actions only by their effects on one’s interests
Usually rejected by moral philosophers as a defensible basis of ethics
Term
Social Responsibility
Definition
the manager’s duty to nurture, protect and enhance the welfare of stakeholders.
Term
Shareholder
Definition
managers must satisfy the owners
social responsibility is maximizing shareholder wealth
Term
Stakeholder
Definition
persons with a legitimate interest in the company
social responsibility is satisfying the interests of multiple stakeholders
Term
Agency Theory (Friedman)
Definition
Managers cannot act effectively as moral agents for shareholders
Time, money, and attention diverted to social causes undermine market efficiency
Term
Managing for Ethical Behavior:
Policy Guidelines
Definition
Written and usually available to all employees
Areas covered: ethical responsibilities of the organization, employee rights, quality of the work environment
Makes an organization's culture more ethical if policies are accepted, followed, and enforced
Term
Managing for Ethical Behavior:
Codes of Ethics
Definition
Written statements describing prohibited behavior
Can base the code on theories of ethics
Can come from industry associations, professional associations, or individual organizations
Prohibited behaviors: kickbacks, illegal political payments, inappropriate gifts
Term
Managing for Ethical Behavior:
Decision Procedures
Definition
Specify composition of a decision–making group and scope of decision–making information
Encourage using more information about a decision's ethical effects
Examples
Include community members and employees affected by new plant's design
Information procedures for new product decisions: require fresh review of negative test results before final decision
Term
Managing for Ethical Behavior:
Standards of Ethical Performance
Definition
Become part of the organization's performance appraisal process
Required behavior consistent with law and discretionary behavior that accords with an ethics policy
Example: all employees shall accept the mandate against sexual harassment in Title VII of the Civil Rights Act
Term
Managing for Ethical Behavior:
Ethics Training
Definition
Goal: help organization avoid governmental and societal sanctions by preventing unethical and illegal behavior
Develop employee awareness about ethics
Achieve credibility with employees
Teach employees a practical model of ethical decision making
Term
Managing for Ethical Behavior: Peer Reporting Of Unethical Behavior
Definition
Coworkers' reports of perceived unethical behavior: whistle–blowing
Problem: often exposes the reporter to strong social pressure to overlook unethical behavior
Encourage peer reporting by
Specifying it as a desired behavior in a code of ethics
Ensure that unethical behavior by one person has negative effect on many others. Punish entire group for one member’s unethical act
Term
Obstructionist Approach
Definition
Behave unethically and illegally
conceal from stakeholders
Term
Defensive Approach
Definition
Unethically but legally
Term
Accommodative Approach
Definition
Behave ethically and legally and try to balance interests of different stakeholders
Term
Proactive Approach
Definition
Behave legally and ethically, embrace social responsibility, actively promote interests of all stakeholders
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