Management and Organization Notes PDF

# Management and Organization (NOTES) ## Topic 1: Strategy * **Layers of the business environment:** * Organisation * Competitors/Market * Industry/sector * The macro environment * **Strategic decisions:** * Long-term directions of an organization * The scope of an organiz...

# Management and Organization (NOTES) ## Topic 1: Strategy * **Layers of the business environment:** * Organisation * Competitors/Market * Industry/sector * The macro environment * **Strategic decisions:** * Long-term directions of an organization * The scope of an organization’s activities * Gaining advantage over competitors * Addressing change in business environment * Building on resources * Values and expectations of stakeholders. * **Strategy (Definition):** * Setting long-term goals and allocating resources to achieve them. * Creating a unique position and making trade-offs to maintain a competitive advantage * Long-term direction of an organization * Pattern of decisions, actions, and plans. So, the strategic decisions will be: * **Complex** * **Made in situation (Uncertain)** * **Affect operational decisions** * **Require an integrated approach** * **Involve change.** * **HAMBRICK and FREDRICKSON 5 Elements of internal STRATEGY** * **Vehicles:** How will we get there? * **Strategy:** * **Economic logic**: How will we obtain returns and generate revenue? * **Arenas**: Where will we be active? * **Differentiators**: How will we win? * **Staging**: What will be our speed and sequence of moves? * **Note:** Answer these questions in detail; don’t be generic. * **Arena**: Which product categories? Which market segments? Which geographic areas? Which value-creation stage? * **Vehicles**: How? Internal expansion? Joint Ventures? Franchising? Acquisitions? * **Require trade offs**: * Differentiators: Attract customers? How to be different? * Price? * Image? * Customization? * Service? * Style? * Reliability? * **Staging**: * Rapid international expansion? * One country at a time? * **Economic logic**: * Low-level analysis of cost? * Economies of scale? * High prices due to unique products? ## Porters 5 forces ~ External Strategy: * **Rivalry between existing competitors**: * Organizations with similar products/services aimed at the same customer group in the same industry/market – different from substitutes. * Depends on: * Competitor concentration and balance. * Product/services similar. * Industry rate growth. * Many competitors. * **The threat to entry**: Barriers to entry. * Barriers to entry are factors that need to be overcome by new entrants if they are to compete. * If the barrier is **high**, the threat of entry is **low**. * If the barrier is **low**, the threat of entry is **high**. * For ex: new entrants increase competition, threaten the market, reduce prices... which then limits the profit potential of the industry. * **Customer switching costs**. * **Main barriers to entry**: * **Economies of scale/experience** * **Network effects** * **Access to supply and distribution channels.** * **Capital requirements** (e.g., Startup costs). * **Government regulations.** * **Incumbency advantage** (e.g., loyalty, reputation) meaning firms or companies already there. * **The threat of substitutes**: * Substitutes: products or services that offer similar benefit to an industry’s products but different nature. * Customers switch to alternatives, which is threat if: * Price/performance ratio of substitutes is superior. * The substitute benefits from an innovation. * Extra industry effects. * **The bargaining power of buyers**: * Buyers are organizations’ immediate customers; if buyers are powerful then they can demand cheap prices or product/service improvements to reduce profits. * Buyer power is likely high when: * Buyers have low switching costs. * The firm’s offerings are undifferentiated; buyers can buy from multiple sectors. * **Bargaining power of suppliers**: * Suppliers are those who supply what organizations need to produce the product/service. * Powerful suppliers can reduce profits if: * Suppliers are concentrated (few of them). * Suppliers provide a specialist or rare input. * Switching costs are high, meaning it is expensive to change suppliers. * The supplier can enter the market. * For ex: Airlines cut out travel agents allowing customers to book flights directly through their websites. * **Forward vertical integration**: A company that typically produces goods or services start to handle distribution, retail, direct sales bypassing intermediates. ## Topic 2: Structure * **Organizational Structure:** * Set of formal tasks assigned to individuals and departments. * Formal reporting relationships including lines of authority, decision, responsibility, and number of hierarchical levels. * The design of systems to ensure effective coordination of employees across departments * **Three goals of Organizational structure:** * To achieve efficiency (minimize costs, time, effort). * To achieve coordination (facilitate flow of information within the organization). * To achieve adaptability/flexibility (to changes in environment or technology). * **Structure depends on organization Strategy.** * **Dimensions of Structure:** * **Specialization/Division of Labor**: This is the process of dividing up the many tasks within an organization. More tasks divided, greater degree of specialization. * **Pros**: efficient, clear, employees develop greater expertise/skills. * **Cons**: boring, and demotivating. It may reduce adaptability to change and innovation. * **Chain of Command**: The configuration of reporting relationships within organizations. It determines formal authority: legitimate rights to make decisions, issue orders, allocate resources and responsibility. It helps determine the flow of information. * **Span of Control**: This is the number of employees that report to a given supervisor. * **Flat hierarchy**: Wide span: many subordinates reporting. * **Tall hierarchy**: Narrow span: few subordinates reporting. * **Helps determine how closely supervisors can be involved with activities of subordinates ~ How much delegation there tends to be.** * **Organizational charts reveal**: * Specialization * Span of control * Chain of command. * **Tall hierarchy**: * CEO * **Flat hierarchy**: * CEO * **Departmentalization**: * **Basis for grouping positions into departments in the organization.** * **Major component of organization structure.** * **Functional Structure**: * People grouped by similar functions (e.g., Similar expertise, tasks, background). * Each department performs tasks for the organization as a whole. * **Strengths**: Efficient use of resources, economies of scale within functions, deep skill specialization and development. * **Weaknesses**: Poor interfunction coordination, slow respond to environment changes. As the organization grows, departments might become too big and complicated which then impacts the decision making process. * **Divisional Structure**: * Departments are formed based on the basis of organizational outputs, geography, or customer type. * Each department then often has sub-departments by function. * **Strengths**: More flexible and adaptable, better customer service, better coordination between functions, more delegation on decision making, reduce burden on top managers. * **Weaknesses**: Introduce redundancy and duplication, lack of coordination across divisions. Different divisions might have different images, which may threaten the clarity of organization identity. * **Appropriate for**: * **Functional**: Organization in stable environments, an organization with 1 or few products, small to medium organization. * **Divisional**: Organization with many products, large and complex organizations, unstable environments. * **Decision making**: * **Centralized**: * Less need of coordination. * Less potential for conflict/confusions. * Decisions made by those who understand the bigger picture. * **Decentralized**: * Decisions made by those close to the picture * Less burden on top managers to make every decision. * Provide employees with a sense of voice, feelings of responsibility * **Appropriate for**: * **Centralized**: Organization in stable environments, an organization with 1 or few products, small to medium organization. * **Decentralized**: Organization with many products, large and complex organizations, unstable environments. * **Organizational forms**: * **Mechanistic/Bureaucratic**: * High specialization (division of labor). * Vertical top-down communication (tall hierarchy). * Narrow span of control. * Highly centralized decision making. * Many departments. * **Strengths**: More stable, certain, focus on efficiency * **Structure should be designed to fit the organization’s environment, strategy; and task/outputs.** * **Organic**: * Low specialization (division of labor). * Horizontal communication (flat hierarchy). * Wide span of control. * Decentralized decision making. * Few departments. * **Strengths**: Changing uncertain environment, flexible/adaptive. * **Structure should be designed to fit the organization’s environment, strategy; and task/outputs.** * **To diagnose structure**: * How is the organization departmentalized? * Where does the organization fall on the spectrum of mechanistic/organic? * **Structure affects efficiency, adaptability, and the flow of communication.** * For ex: Mechanistic structures are better for routines, tasks, stable environments, and for cost leadership. * Organic structures are better for creativity. * **Matrix Structures**: * Simultaneous functional + divisional. * Dual lines of authority. * **Strengths**: Flexibility and innovation. * **Weaknesses**: More potential for conflict (between divisional and functional), requires more meetings, constant coordination, less efficient. Two boss problem (confusing/frustrating employees). ## Topic 3: Culture * **Organizational culture**: The set of values, beliefs, norms, and expected behaviors shared by members of organizations. This is the “internal personality of the organization.” * **Why is organizational culture important**: * Guides/controls the behavior of members. * Provides cues as to what is expected, accepted, encouraged, and valued. * Aligns behavior with values. * Allows best practices to be maintained and reinforced. * Can provide a sense of identity, generate commitment, and motivate employees. * Individual employees: fit helps determine how successful they will be. * **How organizational culture begins**: * **Selection**: Founders hire and keep only employees with similar values. * **Socialization**: Employees are socialized into values and norms. * **Top management**: Founder + senior management act as role models by setting the example and sending signals. * **Reward system**: Reward systems acknowledge and promote people who confirm to norms. * **Tangible benefits of effective organizational culture**: * Greater motivation, satisfaction, and productivity * Reduced turnover. * More applicants; reduced recruiting costs. * **National Culture: (Dimensions):** * **Individualism - Collectivism**: * The degree to which individuals are integrated in the group. * **Individualistic**: * People see themselves as independent. * Individuals are free to make their own choices and decisions. * Emphasis on individual initiative and achievement. * **Collectivistic**: * People identify themselves by their group membership. * Emphasis on responsibilities to the group and on group success. * Decisions must be made with the group’s interest and expectations in mind. * **Power distance**: * The level of societal acceptance of inequality in power and influence. * **Low power distance**: * More democracy. * Subordinates are more comfortable critiquing decisions of superiors. * People tend to relate to each other as equals. * Class differences are less pronounced. * **High power distance**: * More accepting of autocratic, formalized power relations. * Decisions of superiors go unquestioned. * Class divisions are more pronounced. * **Uncertainty avoidance**: * A society’s tolerance for uncertainty and ambiguity. * **High uncertainty avoidance**: * People prefer structured problems with “one right answer.” * Careful planning, rules, laws, and regulations. * Minimize the likelihood of unexpected or unusual events. * **Low uncertainty avoidance**: * People are more comfortable with unstructured or changeable situations. * Accepting of problems with multiple trade-offs. * Fewer rules and regulations. * **McSweeney’s critique**: * Generalizing from too small a sample. * Horizontal generalizations (assuming that what is true for one group in a nation is true for all). * Assuming national cultures are unchanging. * All cultures are identifiable and measurable. * **Summary of Dimensions of organizational culture: 17 dimensions)**: * **Individual interference**: Degree of freedom, independence, and autonomy for members. * **Power distance**: Extent to which formal hierarchical differences are emphasized. * **Propensity for risk**: Extent to which risk-taking is encouraged. * **Competitiveness**: Extent to which members compete vs. cooperate. * **Tolerance of failure**: Extent to which the organization accepts failures vs. demands success. * **Conflict tolerance**: Degree to which members are encouraged to disagree and air conflicts openly. * **Transparency**: Extent to which operations/decisions/financials are common knowledge vs. are known only by a few. * **Note**: Organizations’ cultures vary in strength. * **Strong culture**: This is the extent to which norms for behavior are shared and the amount of approval/disapproval attached to them. * **Cons**: Can be difficult to change/inflexible. May limit growth because culture might be less appropriate in other products/segments or geographic areas. May limit potential employees that can be hired and retained. Can breed excessive homogeneity. * **Factors that shape organizational culture**: * Organization structure. * Environment/industry. * **Factors that promote organizational innovation**: * **Culture**: * **Low competitiveness**: Cooperation helps innovation. * **Low power distance**: All opinions considered. * **High failure tolerance**: Disagreements can be good. * **Moderate to high conflict tolerance**. * **High individual initiative**: (Autonomy) * **Atmosphere of fun & positivity.** * **Structure**: Organic, low formalization, emphasis on teamwork, flat hierarchy, job rotation. * **People**: Variety of backgrounds, willing to disagree, comfortable with uncertainty. * **Incentives**: Emphasis on intrinsic motivators, avoid pay-for-performance, avoid fostering too much competition. * **Q: How to diagnose organizational culture?** * **Nature**: How does the culture score along the 7 dimensions? What other key aspects of the culture are there, if any? How strong is culture? * **Consequences + fit**: How does culture affect the behavior of employers (good or bad ways)? What are the upsides? Downsides? How culture fits with organization strategy. * **Source + possible changes**: What factors led to this culture? How is it created and maintained? If the culture is dysfunctional, how can we change it? ## Topic 4: Leadership * **Main functions of leaders**: * **Creating the vision**: Setting strategy, mission. * **Making big decisions**: Implementing strategy, accomplishing mission. * **Generating support**: Communicating the vision, motivating others. * **Managing the group dynamic**: Getting people to work together, handling conflict. * **Setting the example**: Influencing culture, face of the organization. * **Note**: Effective leadership style can vary: * Based on personality. * Based on needs, problems facing the group. * Setting an example of preparation and hard work. * **Personality**: A characteristic way of thinking, feeling, and behaving. * **Mood** * **Attitude** * **Opinions** * **The Big Five**: * **Openness**: Imaginative, curious, unconventional, independent-minded. * **Conscientiousness**: Orderly, responsible, dependable. * **Extraversion**: Assertive, sociable, excitable, energetic, outgoing. * **Agreeableness**: Kind, affectionate, trusting, cooperative. * **Neuroticism**: Anxious, irritable, easily upset. * **Pros**: Simple, comprehensive. * **Cons**: * **PPI change behavior overtime.** * **PPI change behavior across different situations.** * **Traits don’t offer a causal explanation.** * **Trait theories of leadership**: Goal: To find personality traits that predict leader effectiveness. * **“Great Person” theory**: Leaders possess special traits which set them apart. * **Organizing change is one challenge faced by leaders.** * **Why is major change difficult?** * **Costs.** * **Structural inertia**: Existing procedures and routines are different to change (greater for larger organizations, mechanistic). * **Cultural inertia**: Norms, values, relationships have become embedded over time. * **Individual resistance**: People finding change and the accompanying uncertainty, uncomfortable/frightening. * **Existing power**: Structures are often threatened. * **How can leaders overcome individual resistance?** * **Communicate why change is needed; what will it entail; create a sense of urgency.** * **Listen**: Recognize people’s objections and that change will be hard. * **Involve**: Involve people, emphasize what support you have. * **Provide**: Provide incentives. * **Deal with resisters.** * **8 steps to create a successful change**: 1. **Establish sense of urgency.** 2. **Create a powerful guiding coalition.** 3. **Plan and create short-term wins** 4. **Create a vision** 5. **Communicate the vision** 6. **Empower others to act on the vision.** 7. **Consolidate improvements + produce more change.** 8. **Institutionalize new approaches in the culture.** * **Essentials of leadership communication**: * **Level of abstraction**: Forward-looking, big picture goals, visions. * **Framing**: Link goals/ideas to greater organizational + societal values. * **Metaphors/analogies**: Attract attention, provide vivid images, elicit emotions. * **Stories**: Engage the audience, provide tangible things we can relate to. * **Repetition**: Ensures recall key themes. * **Relate to audience**. ## Topic 5: Motivation: * **Individual**: Some people are inherently more motivated than others, people differ in what motivates them. * **Personality**: Need for achievement, power, growth, affiliation. * **Situational**: * **Extrinsic rewards + incentive system**: * Piece rates, bonuses, commissions, promotions, pay increases. * **Intrinsic rewards + psychological factors**: * Meaningfulness of work, opportunities for growth, fairness and voice. * **Theory X**: People are inherently lazy, will avoid work if they can. * Need monitored and controlled, rewards, and punishments are key. * **Incentive Systems**: How extrinsic rewards are distributed within organizations. * Who gets paid, how much, for what? * What behaviors/outcomes are rewarded; what rewards are given? * How behaviors/outcomes measured? Are they measured at the individual/group/organizational level? * **Goal: Incentive systems to align the interests and goals of employees with the goals and valued outcomes of the organization.** * **Downsides of pay for performance**: * Measuring performance may be difficult and costly. * Hurts creativity. * Can lead to unethical or risky behavior. * Leads to short-term focus. * Pay tends to have diminishing returns for motivation. * Can undermine teamwork if based on relative performance. * What’s measured is often determined by feasibility — may lead to misaligned incentives, unintended consequences. * Overlook management factors. * For ex: misaligned incentive: a sales manager who manages to cut costs while not checking the quality that will affect the customer’s loyalty to the brand. * **When do extrinsic rewards and pay for performance work?** * When performance is objective and easily measured. * Tasks are routine rather than creative. * Performance is controlled by employees that are realistically achievable. * The presence of other motivators are low: job characteristic, individual personality, inherent interest in a task, need for rewards. * **Status can be considered as an extrinsic motivator.** * People are motivated to have status and feel respected. * Status can be thought of as **extrinsic and intrinsic motivator** * **External**: Validation. * **Inner**: Desires for self-growth, self-esteem. * **Theory X**: * Work is distasteful. * Attempt to avoid work. * People are not ambitious. * People have little responsibility. * Prefer to be directed. * Not creative to solve organization problems. * People are self-centered. * Closely controlled and coerced to achieve organizational objectives. * Resist change. * **Theory Y**: * Conditions favorable to work will be natural. * Self-directed and creative to meet organization objectives. * People will be committed to quality of work. * Not creative to solve organization problems if rewards are in place to address higher needs. * People handle responsibilities because creativity and ingenuity are common. * **Maslow’s Hierarchy of Needs**: * **Self-fulfillment** * **Psychological needs** * Self-actualization: Achieving full potential, creativity. * Esteem needs: Prestige and feeling of accomplishment. * Belongingness + love needs: Intimate relationships, friends. * **Basic needs** * Safety needs: Security, safety. * Physiological needs: Food, water, warmth, rest * **McClelland’s Theory of Needs**: * **Need for achievement**: To excel, a set of standards. * **Need for power**: Need to make others behave in a way they wouldn’t. * **Need of affiliation**: Desire for friendly and close interpersonal relationships * **Extrinsic incentive bias**: The tendency to believe others are motivated by extrinsic rewards more than intrinsic rewards. * For ex: Managers overemphasize extrinsic and neglect other factors. * **Intrinsic/Psychological Motivation**: * People can be motivated by intrinsic and other psychological factors beside money. * Challange, desire to learn; task enjoyment, task meaningfulness, status, accomplishments. * **Ubuntu Philosophy:** * Interconnectedness * I am because we are. * Group harmony * Sharing avoidance of shame. * Strengthening of community * **Sense of accomplishment can be provided**: * By challenging work * By self-improvement, learning. * By positive feedback * Challenging work. * Setting goals and working towards them. ## Topic 6: Group + Teams: * **A group**: 2 or more interacting individuals. * **Team & Task Group**: Groups work together to achieve specific goals * **Social groups**: No specific goals, social interaction. * **The increase in the use of groups to effectively work and achieve organizational success.** * **Characteristics of a group**: * To achieve a shared goal. * Group members are interdependent; they need one another. * Bounded by memberships — stable over time. * Operate in a broader context: organization, class, network, society. * **Q: Why are groups important**: * Decisions are made quickly. * Increase accountability of decisions. * Focus on creativity and innovation. * Globalization * Increase amount of complexity of information and types of tasks. * Virtual/remote work. * **Potential vs. Actual Performance**: * **Potential**: Expected level of performance given the capabilities of the individual members. * **Actual**: Depends on individual but also organizational context and group process. * **Process gains**: Increases in performance resulting from effective coordination, and motivation. * **Process losses**: Performance difficulties due to coordination and motivation problems. * **Actual Productivity = Potential Productivity - Process Losses** * **Drawbacks of Teams**: * Group conflict * Some members over-contribute while others under-contribute. * **Benefits of Teams:** * Pooling of resources, skills, abilities. * Specialization of labor. * Multiple different perspectives on an issue. * *Decisions tend to be more easily affected by others.* * **Group Process - Diversity**: Diversity in culture, backgrounds, ideas, values, expertise, information, etc. * **Pros**: Improve team decision-making, can increase team creativity. * **Cons**: Hamper team cohesion, create conflict, mistrust; reduce team ability to reach consensus and take quick action; task conflict. * **Diversity can be considered a source of both process gains and process losses.** * **Most beneficial during innovative, non-routine and complex task. For ex: Solving a previously unseen problem.** * **Most beneficial during the problem definitions and analysis stages (e.g., brainstorming).** * **Q: How to manage diversity?** * Determine members’ respective abilities and expertise and assign roles accordingly. * Find similarities but also recognize differences. * Engage in team-building. * Focus on common group goals. * Foster norms of openness, mutual respect, and equal participation. * Engage in perspective-taking, take the POV of other members. * **Group Conflict**: * Traditionally: It should be avoided, no matter what. * **Updated**: Conflict is bad, but certain types of conflict can be beneficial. * **Forms of group conflict**: * **Relational**: Personal disagreements, always dysfunctional, reduce commitment, motivation, interferes with task completion. * **Process conflicts**: Disagreements over roles or responsibilities. Usually dysfunctional; increase uncertainty; interferes with task completion (a little at the start, okay!). * **Task conflict**: Disagreements how to approach group tasks to accomplish its goals * **Can be beneficial**: Stimulate creativity, increase learning, improve decision making. * **Can lead to relationship conflict.** * **Team Trust + Identification**: * **Trust**: Willingness to accept vulnerability based upon positive expectations. For ex: Teammates. * **Critical to team performance on tasks that are interdependent and require coordination.** * **Identification**: Sense of belonging, attachment, oneness. Reduces conflict, increase trust. Members who identify are more likely to choose collective goals over individual. Affected by intergroup and competition. * **Groupthink**: Thinking- that can occur within highly cohesive and identified groups. Characterized by strong norms toward consensus and conformity. * **Social identity**: Individuals with strong identification to the group are more likely to address their concerns with the group decision. * **Anonymity**: Individuals who aren’t guaranteed anonymity are more likely to conform to group opinions than those who are. * **Q: How to avoid groupthink?** * Create diverse teams. * Establish norms of openness to diverse opinions. * Assign advocates (devil). * High-status members should not state preference. * Hold a “second chance” meeting. * **Summary**: * **Process losses**: Dysfunctional conflict due to many “individual stars”; lack of trust and identification, groupthink and conformity pressures. * **Process gains**: Pooling diversity of resources, ideas, expertise; specialization or roles; synergistic problem solving, identification and cohesion, ↑commitment. * **Improve group performance**: Assemble a team with complementary skills and abilities, emotionally intelligent, build identification and trust, preempt conflict, include all members in decision-making, outline and emphasize group goals, pick a good group size, preferable odd. * **Group size**: As the group gets larger, there is a trade-off between information/expertise, but problems in coordination. Optimal size depends on task complexity. * **Vicious vs. Virtuous cycle**: ***Vicious**: A self-reinforcing loop of negative behaviors or outcomes that deteriorate team performance (e.g., Lack of trust, poor communication, low morale, decline in performance. * **Virtuous**: A positive feedback loop where success and positive behavior build upon each other to enhance team performance. ## Topic 7: Power + Politics: * **Power**: The ability to get others to behave in ways in which they would otherwise not. * **Formal power/Authority**: Power as determined by the formal hierarchy of the organization chart. * **Informal power**: Power that derives from anything not officially attached to an individual’s rank. * **Power gap**: Individuals often do not have formal authority over the people whom they depend on. * **Formal power**: * **Coercive power**: Depends on fear of the negative results from failing to comply by using threats, punishments, negative consequences to enforce rules. * **Reward power**: People comply because it produces positive benefits. Someone who can distribute rewards that others view as valuable will have power over them. * **Legitimate power**: Represents the formal authority to control and use organizational resources based on structural position in the organization * **Expert power**: As a result of expertise, special skill knowledge. * **Referent power**: Based on identification with a person who has desirable resources or personal traits. It develops admiration and a desire to be like that. * **Sources of power**: * **Formal/Authority**: Control over resources (e.g., money, technology, meetings with executives). Control over access to information. * **Social Capita**: Allies and connection. * **Individual attributes**: Expertise + abilities, track record, reputation, charisma, understanding principles of influence and persuasion. * **Persuasion + Influence**: The ability to influence and persuade others is a major source of informal power and critical to success (e.g., Convince others of your ideas, sell to customers, negotiation with suppliers). * **#1 Reciprocity**: People will comply with a request from someone who has done them a favor previously. Hardwired to feel obliged to pay back people when they do something for us * **#2 Scarcity**: Opportunities and resources seem more valuable when they are less available. Exclusivity: People pay more attention to secret information; they want to be part of exclusive groups. Gain vs. Loss framing: People respond more to things framed as loss (e.g.: “If you do X, you will lose Y”). * **#3 Commitment + Consistency**: After committing to a position, people are more likely to comply with requests that are consistent with those results. * For ex: Ask a series of questions to which people will say yes, which then boxes them into agreeing to a request. Get people to agree with the principles behind your idea before presenting an idea. * **#4 Social Proof**: People are more likely to comply with requests if they are consistent with what other people are doing. Powerful when it comes from peers. * **Why?** Many situations are uncertain; we look to others for cues to the right behavior. * **#5 Liking**: People are more likely to agree with or comply with a request from people they like. * **Factors that drive liking**: similarity (demographics, opinions, interests, hobbies), familiarity (repeated interaction), ingratiation (flattery), humor, physical attractiveness. * **Some ways to drive liking**: Informal conversation, reveal some personal information, highlight similarities, compliment information, show positive emotions * **#6 Authority**: People are more persuaded by those they perceive as authority (e.g., Bring up qualifications, past success, frame the problem as related to expertise, get credible others in your side, act confidently). * **Note**: Ultimatums can be effective if you are arguing from a position of power, used as a last resort. * **The Psychology of Power**: * **Feeling powerful is associated with increased** well-being, health, self-esteem, cognitive functioning. * **Greater** confidence, assertiveness, proactivity. * **Power "overestimation" of alliances.** * **Power "optimism + risk taking.”** * **Power "unethical behavior.”** * **Power "infidelity."** This document describes the concepts of management and organization. It covers aspects like strategy, structure, culture, leadership, motivation, teams, group dynamics, power, and politics.