Evidence-based management (EBM): complements systematic study by basing managerial decisions on the best available scientific evidence

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1 MGCR 222 Midterm Review Check slides before printing! Chapter 1: Introduction of OB HBS Article: What do Leaders Really Do? Chapter Objectives: Define OB; Show the value of OB; Identify the major behavioral science disciplines that contribute to OB; Demonstrate why few absolutes apply to OB; Identify the challenges and opportunities managers have in applying OB concepts; identify 3 levels of analysis in OB OB: a field of study that investigates the impact that individuals, groups, and stricture have on behavior within organizations, for the purpose of applying such knowledge toward improving and organization s effectiveness Systematic study: looking at relationships, attempting to attribute causes and effects, and basing conclusions on scientific evidence Evidence-based management (EBM): complements systematic study by basing managerial decisions on the best available scientific evidence Intuition: those gut feelings about what makes others and ourselves tick Psychology: seeks to measure, explain, and sometimes change the behavior of humans and other animals. Social psychology: generally considered a branch of psychology, blends concepts from both psychology and sociology to focus on people s influence on one another. One major study area is change how to implement it and how to reduce barriers to its acceptance. Sociology: studies people in relation to their social environment or culture Anthropology: the study of societies to learn about human beings and their activities Contingency variables: situational conditions; contextual personalities, skill levels varies, it depends Workforce diversity: acknowledges a workforce of women and men, may racial and ethnic groups, individuals with a variety of physical or psychological abilities, and people who differ in age and sexual orientation. Ethical dilemmas and ethical choices: employees are required to identify right and wrong. Determining the correct way to hehave is especially difficult in a global economy because different cultures have different perspectives on certain ethical issues. Managers problems often stem from poor comm. Skills, motivation, conflicts with strong interpersonal skills valuablehigh performing employees OB topics include: Motivation, leader behavior and power, interpersonal communication, group stricture and processes, personality, emotions, and values, attitude development and perception, change processes, conflict and negotiation, work design Review chart 1.1 page 4

2 There are few absolutes in OB, not everyone has the same motivations ($, religion, etc.) Successful managers and employees are able to cope with temporariness, flexibility, spontaneity, and unpredictability. Managers need to be able to stimulate their employees creativity and tolerance for change Work life conflicts and balance valuable Luthan s Study of Managerial Activities 4 Types: o traditional management o communication o HR Management o networking* (*connecting w/people) Chapter 8: Foundations of Group Behavior HBS Case: Bob Anderson Chapter Objectives: Define group and distinguish the different types of groups; Identify the five sages of group development; Show how role requirements change in different situations; Demonstrate how norms and status exert influence on an individual s behavior; contrast the strengths and weaknesses of group decision making; evaluate evidence for cultural differences in group status and social loafing as well as diversity in groups Group: 2 or more individuals interacting and interdependent who have come together to achieve particular objectives Formal group: one defined by the organization s structure with designated work assignments establishing tasks Informal group: neither formally structured nor organizationally determined; natural formations in the work environment that appear in response to the need for social contact Command group: is composed of the individuals who report directly to a given manager Task group: also organizationally determined, represents individuals working together to complete a job task Interest group: people who affiliate to attain a specific objective with which each individual is concerned (ie. Improved work conditions) Friendship groups: members have one or more common characteristics (I.e. age, ethnic heritage, sports, etc.) 5-stage group-development model: characterizes groups as proceeding through the distinct stages of forming, storming, norming, performing, and adjourning Forming: great deal of uncertainty about the group s purpose, structure, and leadership. Storming: intragroup conflict; accept existence, but resist constraints imposes on individuality; relatively clear hierarchy of leadership when complete Performing: functional, moved from getting to know each other to performing task at hand Adjourning stage: preparation for disbanding

3 Role: set of expected behavior patterns attributed to someone occupying a given position in a social unit. Role perception: our view of how we re supposed to act in a given situation Role expectations: the way others believe you should act in a given context Role conflict: when compliance with one role requirement may make it difficult to comply with another Norms: acceptable standards of behavior shared by their members that express what tey ought and ought not to do under certain circumstances (appearance, social arrangement, resource allocation) Hawthorne studies: concluded that behavior and sentiments were closely related, that group influences were significant in affecting individual behavior, and that group standards were highly effective in establishing individual worker output Reference groups: a person is aware of other members, defines him/herself as a member or would like to be a member, and feels group members are significant to him or her Conformity: impact demonstrated in Asch studies (compare cards with line lengths) and Hawthorn Studies (conformity can be positive) Deviant workplace behavior (antisocial behavior or workplace incivility): voluntary behavior that violates the organizational norms, and threatens the well being of the organization s members, depends on accepted norms of group Status: socially defined position/rank given to groups or group members by others Status Characteristics study: derives status from one of 3 sources: 1) the power a person wields over others 2) a person s ability to contribute to a group s goals 3) an individual s personal characteristics Social loafing: tendency for individuals to expand less effort when working collectively than alone. Cohesiveness: the degree to which members are attracted to each other and motivated to stay in the group Groupthink: situations in which group pressures for conformity deter the group from critically appraising unusual minority, or unpopular views (p.117) Interacting groups: members meet face to face and rely on both verbal and nonverbal interaction to communicate Brainstorming: can overcome the pressures for conformity that dampen creativity by encouraging any and all alternatives while withholding criticism Nominal group technique: restricts discussion or interpersonal communication during the decision-making process (p.119) people join groups b/c they believe in an idea, vision, culture How are decision made o Centralized/ decentralized o Consensus based---can you please everyone o Delegation of authority o Controls and processes o Can a large, complex organization be entrepreneurial

4 o Look out for consultants, acquisitions, and financial crises o Organizations evolve and devolve o Some career paths aren t straight forward o Sponsors come and go Zimbardo Case o Prison run by psychologist, after 36hrs students have mental breakdown; no one questioned authority o Role perception o Role Expectations Bystander effect: larger group, less likely someone will act during a crisis Sarcasm, name-calling, ridicule, punches enforce negative norms Group norms press toward conformity; collectivity to social norms higher in collectivist cultures Those working in a group more likely to lie, cheat, steal then individuals working alone High-status individuals given more freedom to deviate Ways to prevent social loafing o 1. Set group goals; 2. Increase intergroup competition which focuses on shared outcome; 3) engage in peer evaluation; 4. Select members who have high motivation and prefer to work in groups; 5. Base group reward in part on each member s unique contributions Ways to encourage group cohesiveness o 1. Make group smaller; 2. Encourage agreement with group goals; 3. Increase the time members spend together; 4. Increase the group s status and perceived difficulty of attaining membership; 5. Stimulate competition with other groups; 6. Give rewards to the group rather than individuals; 7. Physically isolate the group Pros and Cons of Group Decision Making o Pros: generate more complete info and knowledge; increased diversity of views; increase acceptance of a solution; generally more accurate; more creative o Cons: conformity pressures; discussions dominated by 1 or few members; ambiguous responsibility; speed=slower Group think phenomena: o Group members rationalize any resistance to the assumptions they ve made o Members apply direct pressures on those who momentarily express doubts about any of the group s shared view, question validity of arguments of majority o Members who have doubt or differing points of view seek to avoid deviating from what appears to be group consensus by keeping silent about misgivings and self-doubt o There s an illusion of unanimity. If you don t speak, you agree. Group think occurs most with groups with clear positive group identity, o Managers can avoid by monitoring group size o Encourage leaders to play an impartial role o Discuss disadvantages then advantages to an idea Group shift leans towards greater risk; group decision exaggerate initial position of individual members Individuals working alone generate more ideas than a group in a brainstorming session

5 Chapter 9: Understanding Work Teams HBS Case: Army Crew Team Chapter Objectives: Contrast groups and teams and analyze the growing popularity of teams in organizations ; compare and contrast four types of teams; identify the characteristics of effective teams; show how organizations can create team players; decide when to use individuals instead of teams; show how our understanding of teams differs in a global context. Work group: a group that interacts primarily to share information and make decisions to help each member perform within his/her area of responsibility Work team: generates positive synergy through coordinated effort Problem-solving team: members share ideas or suggest how work processes and methods can be improved; rarely have authority to unilaterally implement any of their suggestions. Self-managed work teams: groups of employees (10-15) who perform highly related or interdependent jobs and take on many of the responsibilities of their former supervisors (planning, scheduling, assigning tasks, operating decisions, etc.) Cross-functional teams: made of employees from about the same hierarchical level but different work areas, who come together to accomplish a task Virtual teams: use technology to unite physically dispersed members and achieve a common goal (p.125) Team effectiveness model: made of 3 components: 1) Context: adequate resources; leadership & structure; climate of trust; performance evaluations and reward systems 2) Composition: abilities of members; personality; allocating roles; diversity; size of teams; member flexibility; member preferences 3) Process: common purpose; specific goals; team efficacy; conflict levels; social loafing Organizational demography: attributes such as age or date of joining should help predict turnover; includes age, sex, race, educational level, length of service in the organization Reflexivity: reflect on and adjust master plan when necessary Team efficacy: confidence in themselves; believe they can succeed Mental models: knowledge and beliefs about how the work gets done Effective Virtual Teams require: 1) trust among members 2) closely monitored team progress 3) efforts and products of team publicized throughout the org. Scarcity of resources directly reduces ability of a team to perform its job effectively and achieve its goals Members more likely to take risks and expose vulnerabilities when trust others on team Teams require technical expertise, problem-solving and decision making skills, and interpersonal skills High ability teams more adaptable to changing situations; perform worse with simple tasks

6 Most able, experienced, and conscientious works should be in most central roles of team Communication is important for teams with diverse teams Turnover greater among those with dissimilar experiences because communication is more difficult Consider the benefits of sub-teams (accountability, social loafing, communication) When member s contribution is not clearly visible, individuals tend to decrease their effort Good planning, specific goals, and confidence facilitate clear communication and effectiveness Training: workshops help employees in training Rewards should be performance-based on achievement of team goals Consider: teams make sense when success of the whole depends on individual and success of each one depends on success of all Chapter 2: Attitudes and Job Satisfaction Chapter Objectives: contrast 3 components of an attitude; summarize relationship between attitudes and behavior; compare and contrast the major job attitudes; define job satisfaction and show how we can measure it; summarize the main causes of job satisfaction; show whether job satisfaction is a relevant concept in countries other than the US HBS Case: Treadway Tire Attitudes: evaluative statements, favorable or unfavorable, about objects, people, or events Cognitive component: a description of or belief in the way things is in terms of attitude (evaluation) Affective component: critical part of attitude, emotional/feeling segment, can lead to behavioral outcomes (feeling) Behavioral component: describes an intention to behave in a certain way toward Someone or something of an attitude (action) Cognitive dissonance: any incompatibility an individual might perceive between two or more attitudes or between behavior and attitudes Job satisfaction: describes a positive feeling about a job, resulting from an evaluation of its characteristics Job involvement: measures degree to which people identify psychologically with their job and consider their perceived performance level important to self-worth Psychological empowerment: employees beliefs in the degree to which they influence their work environment, their competence, the meaningfulness of their job, and their perceived autonomy Organizational commitment: employee identifies with a particular organization and its goals and wishes to remain a member. 3 dimensions: 1) affective commitment 2) continuance commitment 3) normative commitment (p. 17) Perceived organization support (pos): degree to which employees believe the organization values their contribution and cared about their well-being Employee engagement: an individual s involvement with, satisfaction with and enthusiasm for their work Core self-evaluations: those who believe in their inner worth and basic competence

7 Exit: response direct behavior toward leaving the organization, including looking for a new position/ resigning Voice: response includes actively and constrictively attempting to improve conditions, including suggesting improvements, discussing problems with superiors, union activity Loyalty: response means passively but optimistically waiting for conditions to improve Neglect: response passively allows conditions to worsen and includes chronic absenteeism or lateness Reasons underlying a simple response is probably complex People generally seek consistency among attitudes and behavior Desire to reduce dissonance depends upon influence, rewards, and importance Most powerful moderators of attitudes relationship are importance, correspondence to behavior, accessibility, social pressures, and direct experience Satisfaction is a positive feeling about a job resulting from an evaluation of its characteristics Interesting jobs that provide training, variety, independence, and control satisfy most employees Organizational citizenship behavior (OCB) Regular surveys can reduce gaps between what managers think employees feel and what they really feel Chapter 3: Emotions and Moods (read through this chapter) Chapter Objectives: differentiate emotions form moods and list the basic emotions and moods; identify the sources of emotions and moods; show the impact emotional labor has on employees, contrast the evidence for and against the existence of emotional intelligence; apply concepts about emotions and moods to specific OB issues; contrast the experience, interpretation, and expressions of emotions across cultures HBS Case: N/A Affect: generic term that covers a broad range of feelings people experience, including both emotions and moods (see chart. P. 27) Emotions: intense feeling directed at someone or something Moods: less intense feeling than emotions and often (though not always) lack contextual stimulus Positive affect: a mood dimension consisting of positive emotions such as excitement, self-assurance, and cheerfulness at the high end and boredom, sluggishness, and tiredness at the low end Negative affect: is a mood dimension consisting of nervousness, stress, and anxiety at the high end and realization, tranquility, and poise at the low end Positivity offset: meaning that at zero input (when nothing particular is going on) most individuals experience a mildly positive mood

8 Affect intensity: how strongly they experience their emotions Illusory correlation: explains why people tend to think nice weather improves their mood Emotional labor: an employee s expression of organizationally desired emotions suring interpersonal transactions at work Emotional dissonance: when employees have to project one emotion while feeling another Felt emotions: an individual s actual emotions Displayed emotions: those that the organization requires workers to show and considers appropriate in a given job Surface acting: hiding inner feelings and forgoing emotional expressions in response to display rules Deep acting: trying to modify our true inner feelings based on display rules. ( a genuine effort to make a change) Emotional Intelligence: a person s ability to: Be self aware; Detect emotions in others; Manage emotional cues and information Emotional Contagion: the catching of emotions from others Important to be able to manage the control of own emotions and of others Emotions are reactions to a person or event Moods may be more cognitive Basic Emotions (p.28): anger, fear, sadness, happiness, disgust, and surprise (and can be confused) Rationality and emotion can come in conflict, but emotion can be important in the ability to reason Bottled-up feelings of frustration, anger, and resentment can eventually lead to emotional exhaustion and burnout For EI: intuitive appeal, predicts criteria that matter, biologically based Against EI: too vague a concept; can t be measured; validity suspect People in good moods tend to be more creative then people in bad moods Possibility that positive moods leads to less engaged critical thinking Important for leaders to inspire enthusiasm and generate optimism Displaying negative emotion (anger) can be effective in negotiation, but feeling badly can impair future negotiatians Chapter 4: Personality and Values HBS Case: A learning Team Drama in One Act HBS Article: Diversity as a Strategy Chapter Objectives: Define personality, describe how it is measured, and explain the factors that determine an individual s personality.; describe the Myers-Briggs type indicator and asses its strengths and weaknesses; identify the key traits in the Big Five personality model and demonstrate how Big Five traits predict behavior at work; identify other personality traits relevant to OB; Define values, demonstrate the importance of values and contrast terminal and instrumental values; identify Hofstede s fives value dimensions of national culture

9 Personality: the sum of ways in which an individual reacts to and interacts with others Heredity: refers to factors determined at conception Personality traits: enduring characteristics that describe an individual s behavior, including shy, aggressive, submissive, lazy, ambitious, loyal, and timid; exhibited in a number of situations Myers-Briggs type Indicator (MBTI): 100 question personality test that asks people how they usually feel or act in particular situations; widely used; then classified as either extraverted or introverted (E or I); sensing or intuitive (S or I); thinking or feeling (T or F); and judging or perceiving (j or p) Big Five Personality Model: 5 basic dimensions underlie and encompass most of the significant variation in human personality: 1) extraversion 2) agreeableness 3) conscientiousness 4) emotional stability 5) openness to experience Core self-evaluations: relate to job satisfaction; positive people (like themselves, capable, control environment, effective) negative people (dislike selves, question capabilities, view self as powerless over environment) Machiavellianism: pragmatic (practical, sensible, realistic), maintains emotional distance, believes ends can justify means; 1) prefer direct contact 2) minimal regulations for improvisation; emotional involvement is irrelevant and distracts from a win Narcissism: describes a person who has a grandiose sense of self-importance, requires excessive admiration, has a sense of entitlement, and is arrogant Self-monitoring: refers to an individual s ability to adjust his or her behavior to external, situational factors. Type A personality: aggressively involved in a chronic, incessant struggle to achieve more and more in less and less time Proactive personality: identify opportunities, show initiative, take action, and persevere until meaningful change occurs Values: judgmental element; importance of conduct or end state; how important it is Value system: ranking of an individual s value in terms of their intensity Terminal values: desirable end-states (p. 51) Instrumental values: preferable modes of behavior, means of achieving terminal values

10 What drives you into thinking what is right and what is wrong? Values are based on convictions Importance of Values: core values may change o Understand attitudes, motivation, behaviors o Influence perception of world o Interpret right and wrong o Imply some behaviors/ outcomes are preferred over others Religion, moving, near death experience can cause a change in core values Global Implications: values differ across cultures Extraverts (outgoing, assertive, sociable) vs. Introverts (quiet and shy) Sensing (practical, prefer routine) vs. Intuitive (rely on unconscious processes and look at big picture) Thinking (use reason and logic) vs. Feeling (rely on personal values and emotions) Judging (want control, order, structure) vs. Perceiving (flexible and spontaneous) MBTI prone to more errors so more on Big 5 (see p. 45) Extraversion: gregarious, assertive, sociable Agreeableness: individual s propensity to defer to others Conscientiousness: measure of reliability (responsible, organized, dependable, persistent) Emotional stability: a person s ability to withstand stress Openness to experience: addresses range of interests and fascination with novelty Type A personality: Always move rapidly; feel impatient with rate events transpire; strive to do 2+ things at once; Can t cope with leisure time; obsessed with #s, measuring success in how much the acquire Proactives create positive change, challenge status quo Values tend to be relatively stable and enduring; cloud objectivity and rationality; influence attitude and behavior Chapter 5: Perception and Individual Decision Making Chapter Objectives: Define perception and explain the factor that influence it; Identify the shortcuts individuals use in making judgments about others; explain the link between perception and decision making; list and explain the common decision biases or errors; contrast the three ethical decision criteria; define creativity and discuss the three-component model of creativity HBS Case: Jensen Shoes Perception: process by which individuals organize and interpret their sensory impression in order to give meaning to their environment; influenced by perceiver, target, and situation Attribution theory: tries to explain the ways in which we judge people differently depending on the meaning we attribute to a given behavior; internally or externally observe behavior; factors: distinctiveness, consensus, and consistency Fundamental attribution error: underestimating the influence of external factors and overestimating influence of internal factors when making judgments about the behaviors of people Self-serving bias: tendency of organizations and individuals to attribute success to internal factors Selective perception: allows us to speed read others, but has risks of drawing inaccuracies Halo effect: draw a general impression about an individual based on a single characteristic (smarts, looks, social)

11 Contrast effect: reaction to a person influenced by other people we ve recently encountered Problem: discrepancy between current state of affairs and some desired state, should considers alternatives Perceptual distortions: biases analysis and conclusions Rational decision-making model: define problem; identify decision criteria, allocate weights to criteria; develop alternatives; evaluate alternatives; select best alternative Intuitive decision-making: relies on links between disparate pieces of information, fast, usually Engages emotions Overconfidence bias: tendency to be too optimistic Anchoring bias: tendency to fixate on initial information and fail to adequately adjust for subsequent information Confirmation bias: selective perception; seek information that reaffirms past choices, discount info that contradicts Availability bias: base judgments on information readily available Escalation of commitment: staying with a decision even when there s clear evidence it s wrong Risk aversion: prefer a sure thing to a risky outcome Hindsight bias: believe falsely, after outcome is known, that accurately predicted it Utilitarianism: decisions made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number Whistle-blowers: people who reveal an organization s unethical practices to the press or government agencies Creativity: ability to produce novel and useful ideas Three-component model: proposes that individual creativity essentially requires expertise, creative thinking skills, and intrinsic task motivation.