MGMT 2103 Exam 4 Study Guide PDF

**MGMT 2103 Exam 4 -- Study Topics & Important Information** **Exam 4 Study Topics** **Week 13 -- Decision Making & Creativity** 1. Define **Types of Decision Making** - Rational Model of Decision Making - Explains how managers should make decisions: Step 1 -- identify problem or oppor...

**MGMT 2103 Exam 4 -- Study Topics & Important Information** **Exam 4 Study Topics** **Week 13 -- Decision Making & Creativity** 1. Define **Types of Decision Making** - Rational Model of Decision Making - Explains how managers should make decisions: Step 1 -- identify problem or opportunity. Step 2 - Generate alternative solutions. Step 3 - Evaluate alternatives and select solution. Step 4 -- implement and evaluate solution - Nonrational Model of Decision Making - How managers actually make decisions - Normative Model: guided by bounded rationality -- decision makers are restricted by a variety of constraints when making the decisions - Intuition model - Evidence Based Decision Making: - Process of using the best available data and evidence when making managerial decisions - Big Data: Reflects the vast quantity of data available for decision making used to create a competitive advantage 2. Define Decision Making Biases a. **Judgmental Heuristics --** mental shortcuts or rules of thumb that people use to make quick decisions and judgements without extensive analysis i. **Escalation of commitment** bias - is the tendency for individuals or groups to continue investing in a decision or course of action, despite clear evidence that it may lead to neg. outcomes 3. List the **advantages and disadvantages of group decision making**. b. Advantages: greater pool of knowledge, different approaches to a problem, greater commitment to a decision, better understanding of decision rationale, more visible role modeling c. Disadvantages: social pressure, few people dominate, goal displacement, groupthink 4. **Groupthink** d. Define Groupthink: psychological phenomenon where members of a group prioritize harmony and census over critical thinking and realism e. List the **Symptoms of Groupthink?** invulnerability, inherent morality, rationalization, stereotyped views of opposition, self-censorship, illusion of unanimity, peer pressure, mind guards f. What are the **Techniques for Preventing Groupthink**? encouraging diverse perspectives, assigning a \"devil\'s advocate\" role, actively soliciting dissenting opinions, allowing for anonymous feedback, structuring discussions to prioritize critical thinking, and ensuring the group leader does not dominate the conversation **Week 14 -- Power, Influence, and Politics** 1. What is **Power**? The ability to marshal human, informational, and other resources to get something done -- power is about influencing others 2. Define the **Five Different Types of Power** a. Legitimate Power- obtain compliance because of formal authority b. Reward Power -- obtain compliance by providing or granting rewards c. Coercive Power -- make threats of punishment and deliver actual punishment d. Expert Power -- have valued knowledge or information over those who need the knowledge or information e. Referent Power -- using one's personal characteristics and social relationships to obtain compliance 3. Give **examples** of the **Five Different Types of Power** f. Legitimate Power -- authority that a manager has by their position in at the company g. Reward Power -- ability for managers to give or withhold tangible or intangible rewards h. Coercive Power -- ability for managers to punish others: verbal reprimand, pay cuts, and dismissals i. Expert Power -- power based on special knowledge, skills, and expertise that a leader possesses j. Referent Power -- power that comes from subordinates' and coworkers' respect, admiration, and loyalty. Possessed by managers who are likable and who's subordinates wish to use as a role model **Week 15 -- Leadership Effectiveness** 1. What is the difference between managers and leaders? - Leaders inspire others, provide emotional support, and try to get employees to rally around a common goal. They create a vision and strategic plan for an organization - Managers are charged with implementing the vision and plan 2. Define the **Trait Theory Approach: leadership is not inborn but can be developed through experience and learning** 3. What are the "**Dark Side**" Traits? Narcissism, Machiavellianism, and psychopathy 4. What is the **Behavioral Styles Approach: attempts to identify the unique behaviors displayed by effective leaders** a. Task-oriented: where the leader prioritizes the efficient completion of task and achieving goals by focusing on clear instructions, deadlines, and monitoring progress b. Relationship-oriented: enhance employee's skills and create positive work relationships c. Passive leadership: let people do as they choose leadership: represents a general failure to take responsibility for leading d. Servant leadership: focuses on increase service to others rather than oneself 5. Describe **Fiedler's Contingency Model:** most effective leadership style for a given situation is one that matches the situation. - Leadership effectiveness goes beyond traits and behaviors - Organizations should attempt to hire and promote people whose leadership styles fit or match the situational demands - leaders need to modify their style to fit a situation 6. Identify and Describe **Four Key Leader Behaviors:** - **Inspirational motivation:** use of charisma, attractive vision of the future - **Idealized influence:** sacrificing for the good of the group, being a role model with high ethical standards - **Individualized consideration:** pay special attention to needs of followers, find ways for people to develop and grow - **Intellectual stimulation:** encourage creativity, innovation, and problem solving **Week 16: Organizational Culture & Socialization** 1. What is **Organizational Culture**: the set of shared, taken for granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments 2. what are the **4 Characteristics of Organizational Culture**? - Shared concepts -- beliefs and values shared among a group of people - Learned over time -- culture is passed on to new employees - Influences our behavior at work - Impacts outcomes at multiple levels -- individual, team, and the organization 3. What are an Organization's **Artifacts**? The physical manifestation of an organizations culture 4. What are **Espoused Values** and **Enacted Values? Espoused Values -- explicitly stated values and norms that are preferred by an organization. Enacted Values -- values an norms actually exhibited or converted into employee behavior** 5. What are the **Four Functions of Organizational Culture**? Culture provides employees with organizational identity, culture facilitates collective commitment, culture shapes behaviors be helping members make sense of their surroundings, culture promotes social system stability 6. What are the **Four Types of Organizational Culture**? Clan, adhocracy, market and hierarchy 7. What is the **Process of Cultural Change** and some examples of the Process of Cultural Change? - Leaders are the architects and developers of organizational change - Changes culture starts with one of the three levels of organizational culture -- artifacts, espoused values, and basic underlying assumptions - Consider how closely the current change aligns with the organization's vision and strategic plan - Use a structure approach when implementing culture change EXAMPLES: - Formal statements -- organizational philosophy, mission, values - Design of physical space -- physical space among people and buildings, location of office furniture - Slogans, language, acronyms, and sayings- like a good neighbor state farm is there - Role modeling, training, coaching -- structure training to procide an in-depth introduction anout organizational values and basic underlying assumptions - Explicit rewards, status symbols -- strong impact on employees due to its high visible and meaningful nature, strongest way to embed culture - Stories, legends, or myths -- powerful way to send message about values and behaviors that are desired - Organizational activities and processes -- leaders pay attention to those activities they can measure and control, send message to employees about acceptable norms - Leader reactions to critical incidents -- people learn and pay attention to emotions exhibited by leaders, positive emotions spread, negative emotions travel faster and further - Rites and rituals -- planned and unplanned activities and ceremonies, used to celebrate important events and achievements - Workflow and organizational structure -- hierarchical structure vs. flatter organizations, reduces the number of layers as an attempt to empower employees and increase employee involvement