Midterm 3 Study Guide PDF - Alfaisal University

MIDTERM THREE - STUDY GUIDE Thursday, 28 Nov. (2:45 – 4:00 PM) Chapter 8 – Employee Behavior and Motivation Chapter 9 – Leadership and Decision-Making Chapter 10 – Human Resources Management Chapter 11 – Marketing  Chapter 8 - Employee Behavior and Motivation  FORMS OF EMPLOYEE BEHAVIOR...

MIDTERM THREE - STUDY GUIDE Thursday, 28 Nov. (2:45 – 4:00 PM) Chapter 8 – Employee Behavior and Motivation Chapter 9 – Leadership and Decision-Making Chapter 10 – Human Resources Management Chapter 11 – Marketing  Chapter 8 - Employee Behavior and Motivation  FORMS OF EMPLOYEE BEHAVIOR Employee Behavior The pattern of actions by the members of an organization that directly or indirectly influences the organization’s effectiveness. Performance behavior Organizational citizenship Counterproductive behaviors  PERFORMANCE BEHAVIOR Performance Behaviors The total set of work-related behaviors that the organization expects employees to display. These behaviors that are directly targeted at performing a job. For example: Sales jobs – promote products, find new customers, keep old customers Assembly line jobs – remian at workstation, do the job correctly Research jobs – find new breakthroughs (difficult to assess)  ORGANIZATIONAL CITIZENSHIP (Positive) Organizational Citizenship The behavior of individuals who make a positive overall contribution to the organization beyond performance requirements of the job. It describes all the positive and constructive employee actions and behaviors that aren't part of their formal job description. COUNTERPRODUCTIVE BEHAVIORS (Negative) Counterproductive work behavior is employee behavior that goes against the legitimate interests of an organization. For Example: Absenteeism, Turnover, Resignations, Violence, Harassment, Poor Quality of work, theft or misuse of property, etc.  THE “BIG FIVE” PERSONALITY TRAITS 1. Agreeableness It reflects the person’s ability to get along with others. 2. Conscientiousness It reflects how focused a person is on few tasks at one time. 3. Emotionality It reflects the degree to which people tend to be positive or negative in their outlook and behaviors toward others. 4. Extraversion It reflects the person’s comfort level with relationships. 5. Openness It reflects how open or rigid a person is in terms of his or her beliefs.  EMOTIONAL INTELLIGENCE Emotional Intelligence (Emotional Quotient, EQ) The extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills.  EMOTIONAL INTELLIGENCE ELEMENTS 1. Self-Awareness A person’s capacity for being aware of how they are feeling. 2. Managing Emotions A person’s capacities to balance anxiety, fear, and anger so that they do not overly interfere with getting things accomplished. 3. Motivating Oneself A person’s ability to remain optimistic and to continue striving in the face of setbacks, barriers, and failure. 4. Empathy A person’s ability to understand how others are feeling even without being explicitly told. 5. Social Skills A person’s ability to get along with others and to establish positive relationships.  OTHER PERSONALITY TRAITS AT WORK Locus of Control The extent to which people believe that their behavior has a real effect on what happens to them. https://www.youtube.com/watch?v=46gkmZ7_5qg  OTHER PERSONALITY TRAITS AT WORK Self-Efficacy A person’s belief about his or her capabilities to perform a task. Self-Esteem The extent to which a person believes that he or she is a worthwhile and deserving individual. Risk Propensity The degree to which a person is willing to take chances and make risky decisions.  BASIC MOTIVATION CONCEPTS AND THEORIES Motivation The set of forces that cause people to behave in certain ways. Some theories of Motivation: 1. Classical Theory of Motivation 2. Hawthorne Effect 3. Theories X and Y 4. Hierarchy of Needs  BASIC MOTIVATION CONCEPTS AND THEORIES Classical Theory of Motivation Theory holding that workers are motivated solely by money. Paying them more should prompt them to produce more.  HUMAN RESOURCES MODEL: THEORIES X AND Y Theory X Theory Y Theory of Theory of motivation holding motivation holding that people are naturally that people are energetic, growth-oriented, naturally lazy and uncooperative. self-motivated, and interested in being productive.  TECHNIQUES FOR ENHANCING MOTIVATION A range of programs designed to make jobs more interesting and rewarding, to make the work environment more pleasant and to motivate the employees to work harder. 1. Reinforcement / Behavior modification 2. Using Goals to Motivate Behavior 3. Participative Management and Empowerment 4. Team Structures 5. Job Enrichment and Job Redesign 6. Modified Work Schedules and Alternative Workplaces  1. REINFORCEMENT/BEHAVIOR MODIFICATION Positive Reinforcement Providing a reward when people exhibit desired behaviors. Punishment Presenting people with unpleasant consequences if they exhibit undesirable behavior. Social Learning People observe behavior of others, recognize their consequences, and alter their own behavior.  2. USING GOALS TO MOTIVATE BEHAVIOR Management by Objectives (MBO) Set of procedures involving both managers and subordinates in setting goals and evaluating progress.  3. PARTICIPATIVE MANAGEMENT AND EMPOWERMENT Participative Management and Empowerment Method of increasing job satisfaction by giving employees a voice in the management of their jobs and the company.  4. TEAM STRUCTURES Use of Teams in organizations: increases employee motivation enhances job satisfaction quicker decision-making enhances companywide communications sense of belonging  5. JOB ENRICHMENT AND REDESIGN Job Enrichment Method of increasing job satisfaction by adding one or more motivating factors to job activities. Job Redesign Method of increasing job satisfaction by designing a more satisfactory fit between workers and their jobs.  6. MODIFIED WORK SCHEDULES 1. Work Share Programs (Job Sharing) Method of increasing job satisfaction by allowing two or more people to share a single full-time job. 2. Flextime Programs Method of increasing job satisfaction by allowing workers to adjust work schedules on a daily or weekly basis. 3. Alternate Workplaces Telecommuting or teleworking allows people to perform some or all of a job away from standard office settings. Chapter 9 – Leadership and Decision-Making  LEADERSHIP AND POWER What is Power? Power is the ability to affect the behavior of others. In organizational settings, there are FIVE kinds of power: Legitimate Expert Reward Power Power power Referent Coercive Power Power  LEADERSHIP AND POWER 1. Legitimate power/ positional power Power (authority) granted through the organizational hierarchy 2. Reward power The power to give or withhold rewards; e.g. salary increases, bonuses, promotion, praise, recognition, etc. 3. Coercive power The power to force compliance by means of psychological, emotional, or physical threat; e.g. verbal or written threats, demotion, termination, fines, etc. 4. Referent power Power based on identification, imitation, loyalty, or charisma; e.g. wearing same kind of clothes, adopting same philosophy 5. Expert power Power derived from information or expertise  EARLY APPROACHES TO LEADERSHIP 1- Trait Approach to Leadership Focused on identifying the personal characteristics or essential leadership traits of leaders: Intelligence – emotional and mental Dominance Charisma Self-confidence Energy Drive Honesty & integrity Knowledge of the business  EARLY APPROACHES TO LEADERSHIP 2- Behavioral Approach to Leadership Focused on determining what actual behaviors are employed by effective leaders. Behavioral approach has two forms of behavior: 1. Task-focused 2. Employee-focused  EARLY APPROACHES TO LEADERSHIP Behavioral Approach 1. Task-Focused Leader Behavior Leader behavior focusing on how tasks should be performed in order to meet certain goals and to achieve certain performance standards 2. Employee-Focused Leader Behavior Leader behavior focusing on satisfaction, motivation, and well-being of employees  LEADERSHIP THROUGH THE EYES OF THE FOLLOWERS 1. Transformational Leadership (focused on leading during a period of change) The set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. 2. Transactional Leadership (focused on leading during a period of stability) It involves routine, regimented activities, basic management transactions such as assigning work, evaluating performance and making decisions. https://www.youtube.com/watch?v=ddt_IGMMOrI  LEADERSHIP THROUGH THE EYES OF THE FOLLOWERS 3. Charismatic leadership Type of influence based on the leader’s personal charisma, a form of interpersonal attraction that inspires support and acceptance.  CROSS-CULTURAL LEADERSHIP Cross-Cultural Leadership Effects of an individual’s native culture on his or her approach to leadership when functioning in another culture.  STRATEGIC LEADERSHIP Strategic Leadership Leader’s ability to understand the complexities of both the organization and its environment and to lead change in the organization to enhance its competitiveness. Top Managers: Howard Shultz (Starbucks) Elon Musk (Tesla) Jeff Bezos (Amazon)  ALTERNATIVES TO LEADERSHIP Leadership Substitutes are individual, task, organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance. Example: individual competence, automated job tasks, rigid rules, physical distance, etc. Leadership Neutralizers are factors that neutralize leader behavior or make them ineffective. Examples: pay increase, termination is not in the hands of the manager, senior employees, group norms and cohesiveness, etc.  DECISION MAKING Decision making It is the act of choosing one alternative from among several options. Decision-making process Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the “best” alternative, and putting it into practice.  TWO TYPES OF DECISIONS 1. Programmed Decisions Decisions that are relatively structured and recurs with some frequency. Examples: order office supplies, basic routine operation tasks, performing inventory, paying salaries. 2. Nonprogrammed Decisions Decisions that are relatively unstructured, unique, and that occurs with low frequency. Examples: invest in new technology, develop new product, sell company. RATIONAL DECISION MAKING (6 STEPS) 1- Recognizing and defining the decision situation 2- Identifying alternatives 3- Evaluating alternatives 4- Selecting the best alternative 5- Implementing the chosen alternative 6- Following up and Evaluating the Results  RATIONAL DECISION-MAKING EXAMPLE 1- Recognize and I am the Manager and there is too much work in my define the department. decision situation 1. I can give more work and long hours to the present employees. 2- Identify 2. I can hire a part-time worker. alternatives 3. I can hire a full-time worker. 1. If I increase workload, my present employees will be tired and upset. 3- Evaluate 2. If I hire a part-timer, it will only solve the problem temporarily. alternatives 3. If I hire a full-time employee, it will help me in the long term. 4- Select the best alternative No. 3 is the best alternative 5- Implement the chosen alternative Start the hiring process / talk to HR 6-Follow up and After 6 months, I ask the employees and evaluate Evaluate the results performance of the department  BEHAVIORAL ASPECTS OF DECISION MAKING Most decisions are not made based on logic and rationality Four Behavioural Processes that influence decision-making: Intuition Coalition Escalation of Commitment Risk Propensity  BEHAVIORAL ASPECTS OF DECISION MAKING Intuition Coalition An innate or inward belief An informal alliance of about something, often without conscious individuals or groups consideration. formed to achieve a “a hunch” “feels right” common goal.  BEHAVIORAL ASPECTS OF DECISION MAKING Escalation of Commitment Condition in which a decision maker becomes so committed to a course of action that she or he stays with it even when it appears to have been wrong.  BEHAVIORAL ASPECTS OF DECISION MAKING Risk Propensity The extent to which a decision maker is willing to gamble when making a decision. Also called risk-taking tendency, it is an individual’s tendency towards taking or avoiding risks.  Chapter 10- Human Resources Management  THE FOUNDATIONS OF HUMAN RESOURCE MANAGEMENT Human Resources are the people comprising an organization’s workforce. HUMAN RESOURCE MANAGEMENT (HRM) The set of organizational activities directed at attracting, developing, and maintaining an effective workforce.  HR PLANNING Job Analysis A systematic analysis of jobs within an organization. A job analysis results in two things: 1. Job Description – lists the duties and responsibilities of a job; its working conditions; and the tools, materials, equipment, and information used to perform it. 2. Job Specification – lists the skills, abilities, and other credentials and qualifications needed to perform the job effectively.  FORECASTING HR DEMAND AND SUPPLY (Planning for Future HR Needs) 1. Forecasting internal supply The number and type of employees who will be in the firm at some future date 2. Forecasting external supply The number and type of people who will be available for hiring from the labor market at large  Forecasting Internal Supply: 1. REPLACEMENT CHARTS Replacement Chart List of each management position, who occupies it, how long that person will likely stay in the job, and who is qualified as a replacement. Digital form Replacement System / Succession System  Forecasting Internal Supply: 2. EIS - SKILLS INVENTORY Employee Information System (Skills Inventory) Computerized system containing information on each employee’s education, skills, work experiences, and career aspirations.  Forecasting External Supply HR must rely on outside sources: - State employment commissions - Figures supplied by colleges  STAFFING THE ORGANIZATION Recruiting Human Resources The process of attracting qualified candidates to apply for jobs that are open. 1. Internal Recruiting means considering present employees as candidates for openings. Recommendations or EIS 2. External Recruiting means attracting persons outside the organization to apply for jobs. Online job sites, company website, job fairs, referrals  COMPENSATION AND BENEFITS Compensation System A company’s compensation system is the total package of rewards offered by the organization to its employees in exchange for their work. Wages and Salaries is the money paid to employees for their labor. Wages Salaries Hourly compensation paid to Monthly compensation in the employees. This pay is based form of money paid for on time worked. discharging the responsibilities of a job.  INCENTIVE PROGRAMS Incentive Programs Special pay programs designed to motivate high performance. 1- Bonus 2- Merit Salary System 3- Pay for Performance 4- Profit-Sharing Plan 5- Gainsharing Plan 6- Pay for Knowledge Plan  INCENTIVE PROGRAMS Incentive Programs for Individuals 1. Bonus: Individual performance incentive in the form of a special payment made over and above the employee’s salary 2. Merit Salary System: Individual incentive linking compensation (pay raises) to performance levels in non-sales jobs. 3. Pay For Performance (Variable Pay): Individual incentive that rewards middle managers for especially productive output  INCENTIVE PROGRAMS Company-wide Incentives 4. Profit-Sharing Plans: Incentive plans for distributing bonuses to employees when company profits rise above a certain level 5. Gainsharing Plans: Incentive plans that rewards groups for productivity improvements 6. Pay-for-Knowledge Plans: Incentive plans to encourage employees to learn new skills or become proficient at different jobs  BENEFITS PROGRAMS Benefits - Compensation other than wages and salaries and other incentives offered by a firm to its workers. EXAMPLES : Health, life and disability insurance Paid time off for vacations On-site child-care centers Discounted stock price Reduced membership fees at gym Required by law to pay tax for social security Retirement benefits Worker’s compensation insurance Pension plans  DEVELOPING THE WORKFORCE Employee Training and Development A set of educational activities and programs designed to enhance the knowledge, skills and abilities of employees. Training is a necessary practice to maintain a qualified and effective workforce. On-the-job Training – occurs while employees are at work Off-the-job Training – takes place at locations away from work  Performance Appraisal Performance Appraisal It is a formal assessment of how well employees are doing their jobs. It often helps in determining the wages, salaries and promotions. 360-Degree Feedback Performance appraisal technique in which managers are evaluated by everyone around them—their boss, their peers, and their subordinates. Chapter 11 - Marketing  WHAT IS MARKETING? Marketing is “activities, a set of institutions, and processes for creating, communicating, delivering, Marketing is reponsible for and exchanging offerings that have creating, communicating, and delivering value and value for customers, clients, partners, satisfaction to customers and society at large. Dictionary.com defines marketing as, "the action or business of promoting and selling products or services, including market research and advertising."  THE FOUR KINDS OF UTILITY Utility - The ability of a product to satisfy a human want or need. Possession Form Utility Place Utility Time utility utility Marketing has a Marketing creates Marketing creates Marketing creates voice in designing a place utility by a time utility by a possession utility products with providing products providing products by transferring features that where customers when customers product ownership customers want. will want them. will want them. to customers by setting selling prices, setting terms for customer credit payments, if needed, and providing ownership documents.  RELATIONSHIP MARKETING AND CUSTOMER RELATIONSHIP MANAGEMENT Relationship Marketing Marketing strategy that emphasizes building lasting relationships with customers and suppliers. Customer Relationship Management (CRM) Organized methods that a firm uses to build better information connections with clients, so that stronger company-client relationships are developed.  RELATIONSHIP MARKETING AND CUSTOMER RELATIONSHIP MANAGEMENT Data Warehousing The collection, storage, and retrieval of customer data in electronic files. Data Mining The application of electronic technologies for searching, sifting and reorganizing pools of data to uncover useful information.  THE MARKETING ENVIRONMENT 1. Political-Legal Environment The relationship between business and government, usually in the form of government regulation of business. 2. Sociocultural Environment The customs, mores, values, and demographic characteristics of the society in which an organization functions. Changing social values force companies to develop and promote new products, such as poultry and meat without antibiotics and growth hormones, for both individual consumers and industrial customers.  THE MARKETING ENVIRONMENT 3. Economic Environment Relevant conditions that exist in the economic system in which a company operates Because they determine spending patterns by consumers, businesses, and governments, the economic environment influences marketing plans for product offerings, pricing, and promotional strategies. Marketers are concerned with such economic variables as inflation, interest rates, and recession. Thus, they monitor the general business cycle to anticipate trends in consumer and business spending.  THE MARKETING ENVIRONMENT 4. Technological Environment All the ways by which firms create value for their constituents. The technological environment creates new goods and services. New products make existing products obsolete, and many products change our values and lifestyles. In turn, lifestyle changes often stimulate new products not directly related to the new technologies themselves. 5. Competitive Environment The competitive system in which businesses compete (domestic & global)  COMPETITIVE ENVIRONMENT In a competitive environment, marketers try to convince buyers that they should purchase their company’s products rather than another’s. Because both consumers and commercial buyers have limited resources, every dollar spent on one product means one dollar less available for other purchases. To promote products effectively, marketers must first understand the type of competition: 1. Substitute products 2. Brand Competition 3. International Competition  COMPETITIVE ENVIRONMENT Substitute Products Products that may not look alike or they may seem very different from one another (dissimilar from those of competitors), but that can fulfill the same need. Diet plan to lower cholesterol Fitness programs to lower Cholesterol  COMPETITIVE ENVIRONMENT Brand Competition The rivalry between companies offering similar line of products or services in the same target market and to the same target audience with the goal to have the higher market share, increased revenues, huge profits, and growth as compared to the contemporary brand at the marketplace.  COMPETITIVE ENVIRONMENT International Competition Competitive marketing of domestic products against foreign products  COMPONENTS OF THE MARKETING PLAN Marketing Plan The marketing plan is a statement of all the future marketing activities and resources that will be used to meet the desires and needs of customers. It begins with objectives and goals. Marketing managers are the people responsible for planning, organizing, leading, and controlling the organization’s marketing resources toward supporting and accomplishing the organization’s overall mission.  COMPONENTS OF THE MARKETING PLAN Marketing Objectives The things marketing intends to accomplish in its marketing plan. COMPONENTS OF THE MARKETING PLAN MARKETING STRATEGY All the marketing programs and activities that a business will use to achieve its marketing goals. Marketing strategy includes four basic components often called the 4 Ps: Product Pricing Place Promotion  STRATEGY: THE MARKETING MIX (4Ps) Product A good, service, or idea that is marketed to fill consumers’ needs and wants. It is all about variety, quality, design, features, brand name, packaging and services. Product Differentiation It is the creation of a feature or image that makes a product differ enough from existing products to attract customers.  STRATEGY: THE MARKETING MIX (4Ps) Pricing Process of determining the best monetary value at which to sell a product. It is concerned with list prices, discounts, allowances, payment periods, credit terms, etc. Place Part of the marketing mix concerned with getting products from producers to consumers. It deals with channels of distribution, coverage, assortments, locations, inventory, transportation and logistics. Promotion All the activities which the company uses to communicate the product benefits, specification and attributes to the audience comes under promotion. Advertising, personal selling, sales promotion, and public relations are their basic tools.  TARGET MARKETING AND MARKET SEGMENTATION Target Market Group of people who have similar wants and needs and can be expected to show interest in the same products.  TARGET MARKETING AND MARKET SEGMENTATION Market Segmentation Market segmentation is the practice of dividing your target market into approachable groups having similar wants and needs and who can be expected to show interest in the same products.  TARGET MARKETING AND MARKET SEGMENTATION Product Positioning Process of fixing, adapting, and communicating the nature of a product.  FIVE MARKET SEGMENTS 1. Geographic Segmentation 2. Demographic Segmentation 3. Geo-Demographic Segmentation 4. Psychographic Segmentation 5. Behavioral Segmentation  IDENTIFYING MARKET SEGMENTS (5 VARIABLES) 1- Geographic Variables 2- Demographic Variables 3- Geo-Demographic Variables 4- Psychographic Variables 5- Behavioral Variables  IDENTIFYING MARKET SEGMENTS GEOGRAPHIC VARIABLES Geographic characteristics considered when dividing consumers based on their physical location, such as their; country, region, city, zip code Geographic Segmentation Geographic units, from countries to neighborhoods, that may be considered in identifying different market segments in a segmentation strategy DEMOGRAPHIC VARIABLES Characteristics of populations that may be considered in developing a segmentation strategy such as; age, gender, family size, income, education, occupation, marital status, Demographic Segmentation A segmentation strategy that uses demographic characteristics to identify different market segments.  IDENTIFYING MARKET SEGMENTS GEO-DEMOGRAPHIC VARIABLES Combination of geographic and demographic traits used in developing a segmentation strategy. Geo-Demographic Segmentation Using a combination of geographic and demographic traits for identifying different market segments in a segmentation strategy.  IDENTIFYING MARKET SEGMENTS (CONT.) PSYCHOGRAPHIC VARIABLES Consumer characteristics, such as lifestyles, social status, values, beliefs, opinions, interests, and attitudes that may be considered in developing a segmentation strategy. Psychographic Segmentation A segmentation strategy that uses psychographic characteristics to identify different market segments. BEHAVIORAL VARIABLES Behavioral patterns displayed by groups of consumers and that are used in developing a segmentation strategy. Purchasing habits, Browsing history, loyalty, product usage Behavioral Segmentation A segmentation strategy that uses behavioral variables to identify different market segments.  UNDERSTANDING CONSUMER BEHAVIOR Consumer Behavior Study of the decision process by which people buy and consume products. Why do people choose one product over another?  FOUR Influences on Consumer Behavior 1. Psychological Influences Include an individual’s motivations, perceptions, ability to learn, and attitudes that marketers use to study buying behavior. 2. Personal Influences Include lifestyle, personality, and economic status that marketers use to study buying behavior 3. Social Influences Include family, opinion leaders (people whose opinions are sought by others), and such reference groups as friends, coworkers, and professional associates that marketers use to study buying behavior. 4. Cultural Influences Include culture, subculture, and social class influences that marketers use to study buying behavior.  UNDERSTANDING CONSUMER BEHAVIOR Brand Loyalty Pattern of regular consumer purchasing based on satisfaction with a product’s performance. https://www.youtube.com/watch?v=4eIDBV4Mpek  TWO PURCHASING MOTIVES 1. Rational Motives Reasons for purchasing a product that are based on a logical evaluation of product attributes. It includes cost, quality, and usefulness. 2. Emotional Motives Reasons for purchasing a product that are based on nonobjective factors. It include sociability, imitation of others, and aesthetics.