MGT 3200 Exam #3 PDF

Chapter 16-Control The Control Process - Control-A regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action when necessary Setting Standards - Standards- A basis of comparison fo...

Chapter 16-Control The Control Process - Control-A regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action when necessary Setting Standards - Standards- A basis of comparison for measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory - Good Standards Must enable goal achievements Be based on listening to customers comments, complaints, and suggestions or by observing competitors. - Benchmarking- The process of identifying outstanding practices, process, and standards in other companies and adapting them to your company Comparison to Standards and Corrective Action Comparison to Standards Quality of comparison between actual performance and actual standards depends on the organization measurement and information systems Corrective Action Involves identifying performance deviations, analyzing those deviations, and developing and implementing programs to correct them. Feedback Control Mechanisms - Feedback Control- a mechanism for gathering information about performance deficiencies after they occur. - Concurrent Control- a mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback - Feedforward control- A mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur Maintaining Control - Control Loss- The situation in which behavior and work procedures do not conform to standards Regulation Cost- The cost associated with implementing or maintaining control Cybernetic Feasibility- The extent to which it is possible to implement each step in the control process. Control Methods Bureaucratic Control Objective Control Normative Control Concertive Control Self-Control Bureaucratic Control - Bureaucratic Control- The use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational rules, polices, and procedures. Objective Control - Objective Control- The use of observable measure of worker behavior or outputs to asses performance and influence behavior. Behavioral Control- The regulation of behaviors and actions that workers perform on the job Output Control- The regulation of workers results or outputs through rewards and incentives Normative Control - Normative Control- The regulation of workers behavior and decisions through widely shared organizations values and beliefs Created in 2 Ways Hiring based on attitudes and values Managers and employees learning about what should and shouldn't be done by observing and listening to stories recited by experienced personnel. Concertive Control - Concertive Control- The regulation of workers behavior and decision through work group values and beliefs. Evolution of highly autonomous work groups Group members learn to work with each other, supervise each other’s work, and develop the values and beliefs that will guide and conto; their behavior. Group members feel strongly attached to values and beliefs they developed. Self Control - Self Control (Self-Management)- A control system in which managers and workers control their own behavior by: Setting their own goals Monitoring their own progress Rewarding themself for goal achievement Balanced Scorecard - Balanced Scorecard- measurement of organizational performance in four equally important areas; finances, customers, internal operations, and innovation and learning. Advantages Include Compelling managers to set specific goals and measure performance in the four areas Minimizing the chances of suboptimization - Suboptimization- Performance improvement in one part of an organization by only at the expense of decreased performance in another part. Tools for Controlling Finances - Cash Flow Analysis- A type of analysis that predicts how changes in a business will effect its ability to take in more cash than it pays out - Balance Sheets- Accounting statements that provide a snapshot of a company financial position at a particular time. - Income Statements- Accounting statement also called profit and loss statements that shows what has happened to an organization's income expenses and net profit over a period of time. - Financial Ratios- Calculations typically used to track a business liquidity (cash), efficiency, and profitability over time compared to other business in its industry - Budget- Quantifiable plans through which managers decide how to allocate available money to best accomplish company goals. - Zero Based Budgeting- A Budgeting technique that requires managers to justify very expenditure every year. Economic Value Added (EVA) - The amount by which company profits (revenue minus expenses plus taxes) exceed the cost of capital in a given year. Controlling Customer Defections - Customer Defections- a performance assessment in which companies, identify which customers are likely to leave, measure rate at which companies are leaving. Controlling Quality - Excellence- producing a product or service of unsurpassed performance and feature. - Value- Customer perception that the product quality is excellent for the price offered - Conformance to Specifications- employees must base decisions and actions on weather services and up to the standard. Innovation and Learning Perspective - Continuous improvement in ongoing service and products. - Relearning and redesigning creation processes. - Maximizing sustainability Chapter 12-Managing Individuals and a Diverse Workforce Diversity - Diversity- A variety of demographic, cultural, and personal differences among an organization's employees and customers. Diversity is Not Affirmative Action - Affirmative Action- Purposeful steps taken by an organization to create employment opportunities for minorities and women. Diversity’s focus is broader-demographic, culture, and personal differences Affirmative Action is intentional: diversity can occur without intention. Affirmative action is required by law: diversity is not. - Purpose of affirmative action programs Compensation for past discrimination, which was wide spread when legislation was introduced in 1960s Prevent ongoing discrimination Provide equal opportunities to all, regardless of race, color, religion, sex, sexual orientation or gender identity, or natural origin. Diversity Makes Good Business Sense - Helping with cost saving by reducing turnover, decreasing absenteeism, and avoiding expensive lawsuits - Attracting and retaining talented workers - Driving Business Growth - Helping Companies grow through higher-quality problem solving Surface-Level Diversity - Surface-Level Diversity- difference such as age, sex, race/ethnicity, and physical disabilities that are observable, typically unchangeable, and easy to measure - Deep-Level Diversity- differences such as personality and attitudes that are communicated through verbal and nonverbal behaviors and are learned only through extended interaction with others. - Social Integration- The degree to which group members are psychologically attracted to working with each other to accomplish a common objective. Dimensions of Surface-Level Diversity: Age - Age Discrimination- treating people differently (for example hiring and firing, promotion, and compensation decisions) because of their age. Higher cost the older people are and the longer they stay with the company the more the company pays for salaries, pension plans, and vacation time Lower cost older workers show better judgment care more about the quality of their work and are less likely to quit show up late or be absent the cost of which can be substantial. Dimensions of Surface-Level Diversity: Sex - Sex Discrimination- Treating people differently because of their sex - Glass Celling- the invisible barrier that prevents women and minorities from advancing to the top jobs in organizations Studies shows when men and women performed their job equally well, men received 14 times the reward in terms of salary, bonuses, and promotions compared to women - Strategies to make sure that women have the same opportunities for development and advancement. Mentoring or paring promising female executives with senior executives from whom they can seek advice and support Ensuring male-dominated social activities do not unintentionally exclude women. Balancing the need for adequate levels with career progression concerns. Dimensions of Surface-Level Diversity - Sexual Orientation- an individual attraction to people of the same and or different sex - Sexual Orientation Discrimination- Treating people differently because of their sexual orientation - Transgender Person- Someone whose personal and gender identity differ from the person’s birth sex-for example, someone born female who identified as male - Gender Identity Discrimination- Treating people differently because of their gender identity - Proactive Policies- Companies have implemented anti-discrimination policies for sexual orientation and gender identity, reflecting a commitment to diversity and inclusion. - Employee Support- Initiatives like membership, employee resource groups and inclusive polices are in place to support LGBTQ+ employees. - Self Identifications- Firms encourage LGBTQ+ employees to confidentially self-identify, aiding in monitoring fair treatment and representation Dimension of Surface-Level Diversity:Race and Ethnicity - Racial and Ethic discrimination- treating people differently because of their race or ethnicity Dimensions of Surface-Level Diversity: Mental or Physical Disabilities - Disability- A mental or physical impairment that substantially limits one or more major life activities. - Disability Discrimination- Treating people differently because of their disabilities. Deep Level DIversity - Disposition- The tendency to respond to situations and event in a predetermined manner - Personality- The relatively stable set of behaviors,attitudes, and emotions displayed over time that makes people different from each other. Big 5 Personality Dimensions - Extraversion- The degree to which someone is active, assertive, generation, sociable, talkative, and energize by others - Emotional Stability- The degree to which someone is not angry, depressed anxious, emotional, insecure, excitable. - Agreeableness- The degree to which someone is cooperative, polite, flexible, forgiving, good-natured,tolerant, and trusting. - Conscientiousness- The degree to which someone is organized, hardworking, responsible, persevering, through, and achievement oriented. - Openness to experience- The degree to which someone is curious, broad minded, and open to new ideas, things and experience; is spontaneous and has a high tolerance for ambiguity. Diversity Paradigms - Discrimination and fairness paradigm Most common method of approaching diversity Focuses on equal opportunity, fair treatment, recruitment of minorities, and strict compliance with the equal employment opportunity laws Benefits: generally brings about fairer treatment of employees and increase demographic diversity. Limitation: the focus of diversity remains on the surface-level diversity dimension of sex, race, and ethnicity. - Access and Legitimacy Paradigm Focused on the acceptance and celebration of differences to ensure that the diversity within the company matches the diversity found among primary stakeholders Benefits: establish a clear business reason for diversity Limitation: the focus is only on the surface-level diversity dimension of sex, race, and ethnicity. - Learning and effectiveness paradigm Focuses on integration of deep-level diversity differences, such as personally, attitude, beliefs, and values, into the actual work of the organization Benefits: common ground is value, discrimination is made between individual and group differences, conflict backlash and divisiveness associated with diversity programs are less likely to be encountered, different talents and perspectives are brought together Organization Plurality - Organization Plurality- a work environment where (1) All members are empowered to contribute in a way that maximize the benefits to the organization, customers, and themselves (2) Individually of each member is respected by not segmenting or polarizing people on the basis of their membership in a particular group. Diversity Training and Practices - Skills-Based Diversity Training- Training that teaches employees the practical skills they need for managing a diverse workforce, such as flexibility and adaptability, negotiation, problem solving and conflict resolution. - Awareness Training- Training that is designed to raise employees awareness of diversity issues and to challenge the underlying assumptions or stereotypes they may have about others. - Diversity Audits- Formal assessment that measures employee and management attitudes, investigate the extent to which people are advantage or disadvantage with respect to hiring and promotions, review companies diversity related polices and procedures. - Diversity Pairing- A mentoring program in which people of different ages, cultural backgrounds, sexes, or races/ ethnicities are paired together. - Minority Experience for Top Executives-This involves placing executives in situations where they are in the minority, whether it be in terms of race, gender, or ability Chapter 14-Leadership Leaders vs Managers - Leadership- The process of influencing others to achiever groups or organizational goals. - Leaders Focus on vision,mission,goals,and objectives Encourage creativity and risk taking Have long-term perspective Concerned with ends - Managers Focus on productivity and efficiency Preserves of the status quo Have short-term perspective Concerned with means Leadership Traits:Trait Theory - Trait Theory- a leadership theory that holds that effective leaders possess a similar set of traits or characteristics - Traits-Relatively stable characteristics, such as abilities, psychological motives, or consistent patterns of behavior - Leaders differ from nonleaders based on the following traits: Drive Desier to lead Honesty/Integrity Self-Confidence Emotional Stability Cognitive ability and knowledge of the business Leadership Behaviors - Initiating Structure- The degree to which a leader structure the roles of followers by: Setting goals Giving Directions Setting Deadlines Assigning Tasks - A leader’s ability to initiate structure affects subordinates job performance - Consideration- Extent to which a leader is friendly, approachable, and supportive and shows concern for employees Situational Approach to Leadership - Leadership Style- The way a leader generally behaves towards followers Situational approach assume that the effectiveness of any leadership style depends on the situation - Contingency Theory- A leadership theory states that to maximize work group performance, leader must be matched to the situation that best fits their leadership style Fiedler Contingency Theory - Assumption of Fiedler’s contingency theory Leaders are effective when their work groups perform well Leaders are unable to change their leadership styles - Least Preferred Coworker (LPC) questionnaire used to measure leadership style Score about 64 relationship oriented style Score 57 or below task oriented style Score 58-63 flexible style Situational Favorableness - Situational Favorableness- The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. - Leader-Member Relations- The degree to which followers respect, trust, and like their leaders. - Task Structures- The degree to which the requirements of a subordinate’s tasks are clearly specified. - Position Power- The degree to which leaders are able to hire, fier, reward and punish workers. Hersey and Blanchard’s Situational Leadership Theory - Situational Theory-Leaders need to adjust their leadership styles to match followers' readiness. - Performance Readiness- Ability and willingness to take responsibility for directing one’s behavior at work. - Job readiness and psychological readiness components combine to produce 4 different levels of performance readiness. R1: Insecure person who are neither willing nor able to take responsibility R2: People who are confident and willing but not able to take responsibility R3: People who insecure and able but not willing to take responsibility R4: People who are confident and willing and able to take responsibility Path-Goal Theory - Path-Goal Theory- A leadership theory that states leaders can increase subordinate satisfaction and performance by Clarifying and clearing the paths to goals Increasing the number and kinds of rewards available for goal attainment - Conditions for path clarification, path clearing, and rewards Leaders behavior must be a source of immediate or future satisfaction for followers Leaders behavior must offer something unique and valuable to followers while providing the coaching, guidance, support, and rewards necessary for effective work performance. Leadership Styles - Directive Leadership- Leader let employees know precisely what is expected of them, gives them specific guidelines for performing tasks, schedules work set standards of performance, and make sure people follow standard rules and regulation, - Supportive Leadership- Leader is friendly and approachable to employees, shows concern for employees and their welfare, treats them as equals, and created a friendly climate - Participative Leadership- Leader consults employees for their suggestions and input before making decisions. - Achievement- Oriented Leadership- Leader set challenging goals, has high standards of employees, and displays confidence that employees will assume responsibility and put forth extraordinary effort. Normative Decision Theory - Normative Decision Theory- A theory that suggest how leaders can determine an appropriate amount of employee participation when making decision - Decision Styles Autocratic (AI or AII) Consultative (CI or CII) Group (GII) Decisions - Right degree of employment participation improves quality and extent. Decision Rules to Increase Decision Quality - Quality Rule- If the quality of the decision is important, then don’t use an autocratic decision style. - Leader Information Rule- If the quality of the decision is important and if the leader does not have enough information to make the decision on his or her own then don’t use an autocratic decision style. - Subordinate Information Rule- If the quality of the decision is important and if the subordinates don’t have enough information to make the decision themselves then don’t use group decision style - Goal Congruence Rule- If the quality of the decision is important and subordinates goals are different from the organization goals then don’t use the group decision style - Problem Structure- If the quality of the decision is important, the leader doesn't have enough information to make decision on his or her own, and the problem is unstructured, the don’t use an autocratic decision style - Commitment Probability Rule- If having subordinance accept and commit to the decision is important than don’t use an autocratic decision style. - Subordinate Conflict Rule- If having subordinance accept the decisions is important and critical to successful implementation, and subordination are likely to disagree or end up in conflict over the decision, then don’t use an autocratic or consultative decision style. - Commitment Requirement Rule- If having subordinates accept the decision is absolutely required for successful implementation, and subordination share the the organization’s goals, then don’t use an autocratic or consultative style. Vision Leadership - Visionary Leadership- Leadership that creates a positive image of the future that motivates organizational members and provides direction for future planning and goals setting. - Charismatic Leadership- The behavior tendencies and personal characteristic of leaders that create an exceptionally stong relationship between them and their followers. Transformational Leadership- leadership that Generates awareness and acceptance of a group’s purpose and mission Get employees to see beyond their own needs and self-interest for the good of good of the group. Components ○ Charismatic leadership or idealized influence ○ Inspirational motivation ○ Intellectual stimulation ○ Individualized consideration Transactional Leadership - Transactional Leadership- Leadership based on an exchange in which followers are rewarded for good performance and punished for poor performance. Chapter 13- Motivation Motivation and Job Performance - Motivation- The set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal. Initiation of effort: The choices that people make about how much effort to put forth in their jobs Direction of effort: The choices that people make in deciding where to put forth effort in their jobs Persistence of effort: The choices that people make about how long they will put forth effort in their jobs before reducing or eliminating those efforts Effort and Job Performance - Job Performance=Motivation x Ability x Situational Contrast Job Performance: How well an individual performs that requirements of a job Motivation: The effort one put into doing a job well Ability: A worker’s knowledge skills, and talent needed for the job Situational Constraints: factors beyond an employee’s control that affect job performance Needs - Needs: The physical or psychological requirements that must be met to ensure survival and well being - Needs Categories Lower-Order needs: Concerned with safety and with psychological and existence requirements. Higher-Order needs: Concerned with relationships, challenges and accomplishments, and influence. Rewards - Extrinsic Reward: A reward that is tangible, visible to others, and given to employees contingent on the performance of specific tasks or behaviors. External agents (managers for examples) determine and control the distribution, frequency, and amount of extrinsic rewards Given to motivate people to perform, four basic behaviors: join the organization, regularly attend their jobs, perform their jobs well, and stay with the organization. - Intrinsic Reward: A natural reward associated with performing a task or activity for its own sake. Examples include a sense of accomplishment or achievement, a feeling of responsibility, learning something new, or performing and challenging and engaging. Motivating with the Basics - Start by asking people what their needs are - Satisfy lower-order needs first - Expect people’s needs to change - Creating opportunities for employees to satisfy higher-order needs as lower-order needs are satisfied. Equity Theory - Equity Theory- a theory that states that people will be motivated when they perceive that they are being treated fairly Inputs: In equity theory, the contribution employees make to the organization Outcomes: In equity theory, the rewards employees receive for their contribution to the organization Referents: In equity, other with whom people compare themselves to determine if they have been treated fairly - Outcome/Income (O/I) Ratio: in equity theory an employee’s perception of how the reward received from an organization compare with the employee’s contribution to that organization Underrwarded: A form of inequality in which you are getting fewer outcomes relative to inputs that your referent is getting Overreward: A form of inequality in which you are getting more outcome relative to inputs than your referent Reaction to Perceived Inequity - People who perceive that they have been under rewarded may try to restore equity by: Reducing Inputs Increasing outcomes Rationzling or distorting inputs or outcomes Change the referent Leaving Motivating with Equity Theory - Start by looking for a correcting major inequities - Reduce employees’ inputs - Ensure that decision-making processes are fair Distributive Justice- The perceive degree to which outcomes and rewards are fairly distributed or allocated Procedural Justice: The perceived fairness of the procedures used to make reward allocation decision Expectancy Theory - Expectancy Theory- The theory that people will be motivate to the extent to which they believe that Their efforts will lead to good performance Good performance will be rewarded They will be offered attractive rewards - Motivation= Valence x Expectancy x Instrumentality Component of Expectancy Theory - Valence: The attractiveness or desirability of a reward or outcome - Expectancy: The perceived relationship between efforts and rewards - Instrumentality: The perceived relationship between performance and rewards Valence and instrumentality combine to affect employees willingness to put forth effort, while expectancy transforms intended efforts into actual effort Motivating with Expectancy Theory - Systematically gathering information to find out what employees want from their jos - Taking specific steps to link rewards to individual performance in a clear and understandable manner - Empowering employees to make decisions Reinforcement Theory - Reinforcement Theory: The theory that Behavior is a function of it consequences Behaviors followed by positive consequences will occur more frequently Behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently - Reinforcement- The possess of changing behaviors by changing the consequences that follow the behavior. - Reinforcement has 2 parts Reinforcement Contingencies: Cause-and-effect relationships between the performance of specific behaviors and specific consequences. Schedule of Reinforcements: Rules the specifically which behaviors will be reinforced, which consequences will follow those behaviors , and the schedule by which those consequences will be delivered. Components of Reinforcements Theory - Positive Reinforcement- Reinforcement that strengthens behaviors by following behaviors with desirable consequences. - Negative Reinforcements: Reinforcements that strengthens behavior by withholding an unpleasant consequences when employees perform a specific behavior also called avoidance learning. Punishment follows behaviors with undesirable consequences in order to weaken or extinguish behavior. - Extinction- Reinforcements in which a positive consequences is no longer allowed to follow a previously reinforced behavior, thus weakening the behavior. Schedules for Delivering Reinforcements - Continuous Reinforcement Schedule- A schedule that requires a consequence to be administered following every instance of behavior. - Intermittent Reinforcement Schedule- A schedule in which consequence are delivered after a specified or average that has elapsed or after a specific or average number of behaviors has occurred. Research shows the effectiveness of continuous reinforcement, fixed ratio, and variable ratio schedules differs very little. Interval-based systems usually produce weak results Motivating With Reinforcement Theory Practical Steps ○ Identity, measure, analyze, intervene, and evaluate critical performance-related behaviors - Avoid reinforcing the wrong behaviors - Correctly administer punishment at the appropriate time - Chose the simplest and most effective schedule of reinforcement Continuous reinforcement schedules may be the best choice in many instances by virtue of their simplicity Goals Setting Theory - Goal- A target, objective, or result that someone tries to accomplish - Goal-Setting Theory- The theory that people will be motivated to the extent to which they Accept specific, challenging goals Receive feedback that indicates their progress towards goal achievement Components of Goal-Setting Theory - Goal Specificity- The extent to which goals are detailed, exact, and unambiguous - Goal Difficulty- The extent to which a goal is hard or challenging to accomplish - Goal Acceptance- The extent to which people consciously understand and agree to the goals - Performance Feedback- Information about the quality or quantity of past performance that indicated weather progress is being made toward the accomplishment of goal. Motivating with Goal-Setting Theory - Assign specific, challenging goals - Make sure workers truly accept organizational goals Goals work because they focus attention, energize behavior, and influence persistence, that is sustaining efforts to achieve goal - Provide frequent specific, performance-related feedback Motivating with the Integrated Model - Efforts to motivate differs from each employee - Managers should check their Review Card for a useful, theory- based starting point, of their employees are not motivated