MO Final Exam Extra Notes PDF

PRE MIDTERM Session 1- - Leadership Congruence Model - - Congruence Hypothesis - organizations are more effective when all the components of the organizational architecture - - operations , talent , informal / formal organization. OTIF - fit with each other and...

PRE MIDTERM Session 1- - Leadership Congruence Model - - Congruence Hypothesis - organizations are more effective when all the components of the organizational architecture - - operations , talent , informal / formal organization. OTIF - fit with each other and within the organization's strategy and environment. - All the pieces of the puzzle fit together Session 2 + 3 - - Heuristics and Biases - System 1 - hot system, emotion focused, driven by psychological states , fast and implicit => relies more on heuristics and stereotypes - System 2 - cool , can be divorced from emotion, slow , rational, in our conscious awareness , more logical thought process. - Relies on Heuristics and Biases - Heuristics can lead to specific biases - Heuristic - cognitive “rule of thumb” ( or shortcut ) that we use to make quick guesses or estimates - Bias - the inappropriate application of a heuristic, resulting in systematic error in measurement, estimates, and decisions. - When are we most likely to fall prey to biases? 1. In the face of complexity 2. When we are not aware of pour heuristics 3. When emotion is involved - Prospect theory - how a decision is framed (losses vs. gains ) can influence risky choices - Availability Heuristic - Assessing the likelihood of an event given its availability in memory - Biases - - Ease of Recall bias - our judgements and behavior are affected by how easily we can recall an example from our memory - when they are vivid and recent = easier to recall - Retrievability bias - we categorize things so that we can make sense of the world - memory structures - Presumed Association - Representativeness Heuristic - we tend to look for traits that correspond w/ previously formed stereotypes ( what we already know) when making a judgment - Affect Heuristic- Using one's affective experience as the basis of a decision - neg emotions affect us more.  - Base Rates - Sampling Size - Misconceptions of chance - Regression to the mean - teams that do average, but have one really good performance will fall back the next year to average again. - Conjunction fallacy - People falsely judge that two events co - occurring are more probable than one of the events occurring on its own. - Ex : librarian vs accountant - also being a feminist - Anchoring Bias - failing to adjust our estimates sufficiently form an initial anchor , when people make est. based on whatever is provided even when it's not relevant. - Confirmation bias - tend to seek confirming evidence, for pre existing beliefs - Sampling on the dependent variable - Selection / Survivorship bias - not aware of information not in front of us, can cause us to cloud judgement. - Overconfidence Bias - people tend to be overconfident in their ability to make accurate judgements and do not sufficiently acknowledge uncertainty - Hindsight Bias - - Self Similarity Principle - we look for people like us/ we already know - Shared activity principle - IM teams , students at business school Session 4 - - Toolbox view - diverse perspectives allow us to tackle harder problems because each member brings a different tool to the problem. - Sometimes we face challenges in making the most of diversity in teams- low physiological safety , belongingness and uniqueness - Benefits - Incr. Cognitive action - meaning more creativity, innovation, novel info - leads to better decisions, and thus higher impact - be careful not turning into relationship conflict. - Model of team performance - Inputs -> Process -> Outputs - Inputs - 1. Factor 1- individual characteristics of group members 2. Factor 2 - SItuational and External Environmental factors - Process - 1. First lead to group structure - a. Hierarchy vs Equity b. Roles c. Division of labor 2. Group Structure -> Group Process -> a. Norms b. Communication  c. Patterns of influence d. Conflict e. Internal Environment - Outputs 1. Group Production - a. Creativity b. Quality c. Efficiency 2. Group Experience a. Cohesion b. Individual Growth Pillars of Effective Teaming - - Speak up - Collaborate - Experimentation - Reflection Create a plan for action - assign roles , get a timeline - being clear on these things Be mindful or team interaction - task conflict - can be good to generate creativity and innovation vs relationship conflict - detractor of team performance. Watch for problems of cognition - Sys 1 thinking - Naive Realism - Idea that people tend to feel that they see world objectively anyone who disagrees is crazy stupid or lying , we tend to fall conflict and can lead to relationship conflict and Fundamental Attribution Error - how we attribute someone's actions to behavior , other people misses due to them being in wrong / it's their fault , but when we make a mistake we attribute it to broader environment - ex: i didn't get enough sleep so i did not perform well - discrepancy can lead us to make assumptions about our team members - leads to more relationship environment. - Cultivate a positive team environment - psychological safety - one of the biggest predictors for team success - Co - create team charters - est. norms of interaction and help ground a teams culture Session 5 - - Identities Social - based on groups you belong too Relationship - based on relationships w/ specific individuals Personal Characteristic - identities based on traits and abilities that we see in ourselves - Core - central to how we see ourselves - Peripheral - are salient majority of the time depending on the context - Identity issues in teams -  Categorical Cues vs Individuating Cues - we form impressions about people using their group membership and/ or by using individuating info that sets them apart Self verifications motives vs Self enhancement motives - We want to be known for who we really are and we want others to see us for our strengths. - Utility of Identity - the purpose it serves to help us simplify our world of how we and others we interact w/ and how we fit into it. Serves as a social script that helps us navigate the world and reduces uncertainty in ambiguous social situations. - Ladder of influence 1. Observable data 2. I select data 3. I add meanings 4. I make assumptions 5. I draw conclusions 6. I adopt beliefs 7. I take actions - The reflexive loop - my beliefs affect which data I select. Step 6 down to Step 2. - This leads to confirmation bias, in which I search for evidence that confirms my beliefs and discount or forget evidence that goes against my beliefs. My beliefs affect which pieces of data I select => confirmation bias - The self fulfilling prophecy - Step 7 down to Step 1. - My actions then cause the people I am treating differently to behave in a way that confirms my existing beliefs. My actions make that happen Session 6- - Organizational Architecture - The core problem - how do we build an org. Whose parts are aligned to achieve these objectives set out in our strategy ? Informal Org. - Culture and Socialization - Job Crafting Formal org. - Org. Design - Org. Architecture channels information flow ( proximity and closeness ) who talks to whom. - Designs should match the information processing requirements of the work and the level of interdependence required Principles of Org. Design 1. How to structure  2. How to determine make vs buy - Org. Boundaries When do you need to think about org. redesign? 1. Size incr. 2. Strategy changes 3. Work processes are redefined 4. Cultural / political changes - What is Span of control - how many employees for whom each manager has responsibility for - 3 types 1. By activity/ function - functional a. Best when envior is stagnant, tech is not rlly changing , and the firm is small - Ex: Startup b. (+) - room for specialists c. (-) - management can get overwhelmed 2. Divisional - by output/region a. Best when envior. Is complex, tech is changing, and the firm is large and has many products. 3. Matrix - multi[le foci - a mix of the two a. combination of functional and divisional - best when tech and environment demands are great. Management centric. b. (+) - good for big companies w/ many subunits , flexibility c. (-) - hard having many managers and to get them all to be on the same page - balance of power issues. New types of organizational structures - 1. Pooled - all contribute to bottom line 2. Sequential - some contingencies as other groups 3. Reciprocal - needs exchange of ideas Coordination Mechanisms in an org - - Matrix - multiple reporting relations - Integrator roles - product manager , account exec. - Cross Unit groups - tasks forces ex: RIS group - Hierarchy - common reporting relationships Division of labor - Vertical vs Horizontal - how much - Vertical - centralized vs decentralized decisions are - Horizontal - engineers vs marketing team Generalists vs Specialists - how will you group tasks , and related work activities  - Generalists have some data , usually existing in startups, when a firm grows they become specialists and focus on smaller sectors / focuses. - Linking options - Hierarchy - Structural Linking - Cross unit groups / integrator roles - Job Design - 1. Way employees work - structure and execution 2. Influences performance motivation by how work is designed and managed - Compensation and Rewards Systems - New forms of organizing - return to reading - 3 key types and newer forms Session 7 - - What is Culture - - A groups taken for granted behavioral expectations and commonly shared values and beliefs - Strong cultures can lead to - 1. Internalization of desired behaviors 2. An incr. In the salience of core values - What is Org. Culture - - A system of shared assumptions , values and beliefs; which gogerns how people behave in an org. - Understanding Culture - iceberg - Level 1 - cultural symptoms - feel of the place - Deeper levels 2. Values and Beliefs 3. Underlying Assumptions - What is required for culture to emerge - 1. A recognizable social unit 2. A shared history 3. Repeated way of doing things - Culture is a management tool - Diagnosing culture using text analysis - Yoshi Koder Socialization - - New members learn the value system / norms and required behavior of the org. - Onboarding - institutionalize tactics - organizational identity - institutionalized tactus - personal identity Session 8 - - Job Design and Job Crafting How to change job characteristics ? - Incr. skill variety - cross trainings - Task Identity - form natural work units - Task significance - provide client contact + customer feedback - Autonomy - set clear outcome goals, alternate among tasks - Feedback - ask people to test their own quality - to see outcomes of their work - Scientific Management Approach - Taylorism and Fordism , how do they care to JCM? - Big data - ways company collect varies and is looking more like that - Job Crafting - things employee can do to make their job more satisfying and fulfilling 1. Cognitive Crafting - changing the way you think 2. Task Crafting - change some ways you get work done, or tasks you do 3. Relational Crafting - change the way you relate to other people Session 9 - - Compensation Systems - Coordination problem - Get everyone to work together to jointly pursue the goals of the firm - Agency Problem - the individual and the goals of the firm are unlikely to align naturally - When extrinsic motivation is increased there is a decrease in intrinsic motivation - Decisions of reward systems - what rewards are offered - how performance is measure and defined - how rewards are distributed - What are the main pay for performance models? 1. Merit Pay - base salary and bonus , pay increase may occur 2. Profit sharing - giving stock when working in a corporate 3. Incentive Pay - per specific performances - Pay for performance - W = S + B (E + N) - E+N=Y - S = fixed  - B = variable - E = effort - N = noise - P = performance - Problems : 1. Pay not seen as contingent on individual performance 2. Performance ratings seen as biased and uninformative 3. YGWYPF - Pros - Incentives to work - Cons - YGWYPF - individual incentives - Free riding - group incentives - Free Rider Problem - Use group compensation systems to reduce this When to use Individual Incentives - 1. Output is sensitive to workers effort 2. Small interdependence among workers 3. Level is risk is large 4. Output is easy to measure 5. No tensions between multiple dimensions of output When to use group incentives 1. Work is highly interdependent - teamwork matters 2. Groups can encourage coordination and knowledge transfer 3. To help overcome the free rider problem Session 10 - - Shareholder Primacy - the view that the primary responsibility of the firm is to maximize profits for its shareholders, within the bounds of law and ethical customs. - Stakeholder Primacy - the view that corps should take into consideration the interests and well being of all stakeholders affected by their actions, not just shareholders. Session 11- - Big data and people analytics - big data is extremely large data sets we use to reveal patterns, trends, and ass - 4 V’s of Big Data 1. Velocity 2. Veracity 3. Volume 4. Variety - AI - big data is changing the way we organize and Gen AI is changing the way we work - What is Predictive Analysis - the use of data and statistical algorithms + machine learning technology to identify the likelihood of future outcomes based on horizontal data.  (+) - can model complex scenarios (-) - overestimates the accuracy + and predictive capabilities of models (-) - can mistake coincidences for meaningful patterns (-) - models are only as good as the quality of the inspire data (-) - can't account for rare events - black swan theory (-) - can mistake coorelation w/ causation - The role of data and GenAI in Society is uncertain - Good leadership and management requires not only technical insight, but also moral imagination. Session 12 - Ego Network vs Complete Network - - Ego - individual data gathered through interviews - Complete - full network data through surveys Measures of network centrality - - Degree ; # of direct contacts - in - degree - who you go to in your circle for things - out degree - # of connections a person gives to other people What do we use to represent networks - Sociograms Betweenness - how often am I on the shortest path between two people, frequency of being on geodesic path Eigenvector - how well connected are the people in my network Ties - Relationships , connections between two nodes - “ edges “ or “links” Directed Ties - Everyone in the network is connected Indirect Ties - besides the star, everyone else is connected Strong ties - interact frequently , your best friend - need a lot of maintenance Weak ties - Less interaction , not close - do not need much maintenance - leads to weak social capital Geodesic - Shortest path between two nodes Nodes - People / agents / vertices Proximity - form connections w/ people near us Closeness - how many hops to each geodesic - smallest = best Homophaly - we seek similar people Clusters - Groups of people that know each other Possible Network Structures - 1. Random - connected to people across the world 2. Small World - connections that are close and far, best explains the connections that are in the world 3. Regular - all neighbors are connected What are the benefits of sparse networks - can get lots of information / and control the outcome Brokerage and closure ? - What are they … - Brokerage - developing weak ties between clusters - Closure - developing strong ties w/ in clusters - How to maximize the benefits of …. - High brokerage beyond group , high closure in a group POST MIDTERM Session 14 - - A constituency map : A tool you can use to map out who can facilitate or block your goals. It should specify : - Who those key players are - Their attitudes in relation to your goals - positive - neutral - negative  - Their power to influence your goal attainment - 5 Key elements 1. Players 2. Objectives 3. Weight 4. Enemies and Allies 5. Relationships Session 15 - - Social capital - provides opportunities to use financial and human capital. Relationships - relational - What are the three key factors of social capital ? 1. Not exclusively yours - relational 2. Must be actively maintained 3. Need to add value - through reciprocity - What are the benefits of Social Capital ? - Access to valuable information - Diverse Information - Timing - knowing important info before it comes - Referrals - get your name to the right people at the right time The shape of the network matters more than the size of the network Session 16 - - Wisdom of teams - teams outperform individuals when the whole is greater than the sum of its parts. - You have to create group dynamics that facilitate the integration of information and ideas - Many Teams fail to achieve their potential due to “process losses “ - Common Information effect - When teams spend too little time discussing unshared ( unique, uncommon ) information - What can reduce the Common Information effect? 1. Team leader - focus on finding unique info 2. Suspend Initial judgement 3. Minimize status differences 4. Frame as an information sharing problem - What does not help ? 1. More discussion 2. Separate review and discussion 3. Bigger team 4. More info, same distribution 5. Accountability for decisions 6. Pre decision polling - Why do teams focus on common information ? 1. Airtime  2. Mutual Enhancement 3. Confirmation bias 4. Lack of physiological safety 5. Deference to perceived experts 6. Some people withhold data intentionally - What leads to synergy among teams ? 1. Recognizing diversity 2. Unique info and perspectives Session 17 - Collective Intelligence and team performance - shared or group intelligence , general ability of a group to perform a wide variety of tasks - How do the two vary? Collective Intelligence - common skill set / cognitive abilities whereas General Intelligence - ones overall mental ability - The g- factor - suggests that if someone is good at one mental task, they are also likely to be good at others. 1. Verbal 2. Visual 3. Spatial 4. Quantitative - The c-factor - Why do some teams have higher collective intelligence ? - Social perceptiveness - read others emotions, reading the mind in the eyes - Group Communication - turn taking 80% of teams outperform their average member, while less than 25% of teams outperform their best performing member. Session 18 - - Predictors of physiological safety - (+) - leader coaching and support - (+) - level of familiarity prior to interaction - (-) member status differences - Biases at the team level - Pluralistic Ignorance - when virtually every group member feels privately one way, yet believes virtually everyone else privately feels another way. - Groupthink and its symptoms - a kind of faulty thinking in which groups do not devote the critical scrutiny necessary to the decisions at hand due to social pressure to reach a consensus. - Overestimation of the group - Collective Rationalization - 1) Members discount warnings 2) Members do not reconsider their assumptions  - Self Censorship - Pressure towards uniformity - members under pressure tend to withhold arguments against the group's views. - Illusion of unanimity - majority view and judgements used are to be unanimous. - Illusion of invulnerability - creates excessive optimism and encourages taking extreme risks. - Escalation of commitment - 1) Initial decisions and Interaction Patterns influence long - term group behavior 2) Groups tend to stick w/ early decisions => confirmation bias Session 19 - - Power and Influence - Traditional - ability to leverage one's access to control over valued resources in order to exert control over others… often through reward and punishment. - More narrow - Resources Include - 1. Information 2. Control over uncertainty 3. Financial , Human and Social Capital - Power is emphasized by the explicit/ implicit promise or threat of … 1. Providing / Withholding - resources /rewards 2. Administering / refraining from - punishment - New Prescription for power : It is more effective/ and ethical to cultivate and leverage other forms of influence - How is power exercised ? 1. Understanding the context and those you want to influence 2. Tending to relationships 3. Adapting Continually - Three premises 1. Power is Situational a. Principle - power is not only derived from personal characteristics and resource control, but is largely dependent on the broader context. b. Action - mobilize commitment , understand the broader context, identify key stakeholders you want to influence. 2. Power is Relational a. Principle - power is enabled and constrained by the types of relationships you form and the quality of those relationships. b. Action - create, maintain connections and coalitions. (+) connections can be a source of info, while (-) connections can detract from and loom as resistance.  3. Power is Dynamic a. Principle - power is not static, situations and relationships change over time, which means your ability to influence changes in those situations and relationships do too. b. Action - (1) - monitor situation (2) create and cultivate relationships - Power Paradox : Although people gain power through traits and actions that advance the interest of others, once power is gained and people feel powerful those admirable behaviors tend to be replaced w/ selfish and unethical behavior. - Having tunnel vision for personal goals + downplaying/ ignoring risk = unethical behavior - Pluralistic Inferences - 1. Discrepancy between two peoples private feelings and public acts 2. This discrepancy leads to conformity Ex: Binge Drinking - How can one diagnose powerful departments - 1. Through functional background of key executives - provides clues to which perspectives hold the most sway. 2. Through powerful departments / sub-units - which influence corporate strategy The Milgram Obedience Experiment : Electric Shock Experiment - Authority as a form of power - Agentic Shift - participants push back against authority figures, but a point comes where they give up/ in. Disobedience goes away and continues to listen to authority figures. People give up agency, and no longer see themselves as the one doing the unethical behavior; but rather an agent for the one in charge. - What is the relationship between power and obedience ? - People who have power often induce obedience - Session 20 - 10 questions on the exam on this topic - Influence Tactics and Persuasion - How can you persuade and influence someone to achieve your goals - Cialdini's 6 principles of persuasion: 1. Liking - people tend to comply w/ the requests of people they know and like a. Ex: kitchenware party, having friends at your home b. Tactics - Real similarities and genuine praise c. Works - because we think that people who like us are less likely to take advantage of us - we want people to like us back 2. Reciprocity - people feel obligated to repay others. a. Ex: asking for a bad server when you are a lousy tipper b. Explicit Tactics - gifts, favors.  c. Implicit Tactics - Door in the face - large request, then small, likely to comply with second request due to the fact that the person asking already changed it down; so now you feel obligated to change and reciprocate that behavior. d. Why does it work - we feel guilty if we don't reciprocate , you treat others the way you want to be treated / the way they treat you. 3. Social Proof - people tend to follow the lead of similar others a. Tactic - using power of peers - Specific norm appeal vs norm appeal - hotel putting door signs , specific norm - your peers who stayed in room 429 by saving environment , join your peers and help save environment , vs. help save the environment b. Why does it work - we want to fit in and therefore we follow the behavior of others - leads to social approval. 4. Consistency - people tend to align their behavior w/ their clear commitments a. Ex: people that sign a petition are more likely to donate b. Foot in the door - Small request , then larger , likely to comply bc consistent. Like to be internally consistent, society likes people that are consistent internally. c. Why does it work - 1) Society values personal consistency 2) stick to things to avoid the feeling of cognitive dissonance 5. Authority - people tend to defer to experts / those of higher authority a. Ex: Consulting a doctor b. Tactics - showing expertise , uniforms , badges, degrees. c. Works because we are talk to obey people of authority, and generally speaking people of authority know more information and therefore make more informed decisions/claims. 6. Scarcity - people value items and opportunities more as they become less available. a. Ex: Invitation only , only a few left. b. People want to have things others don't essentially - and that things that are harder to attain are more valuable - Knowing these principles can help you influence others to promote positive change - What are the aspects of framing social innovations to sell internally? 1. When - Assess the opportunity structure 2. Why - Frame the case effectively 3. Who - map social terrain to find potential allies 4. How - Leverage mobilizing structures for collective action - What are common mobilizing tactics - 1. Using existing forums 2. Adapting existing programs 3. Pilots programs are easier to sell than full fledged programs  4. Using technology - How do you overcome resistance ? 1. Demonstrate 2. Sell 3. Train ‘ 4. Negotiate 5. Network 6. Build coalitions 7. Authority - force compliance - What are the stages of individual adoption of a new idea ? 1. Awareness 2. Interest 3. Trail 4. Adoption - What are some tactics for managing attitudes to promote change? 1. Pick low hanging fruits first 2. Identify authority figures who may be champions Session 21- - Negotiations - Seek and exchange info to assess different types of issues in the negotiation - Congruent - same stance - Integrative - multiple issue - win / win - How do you build Integrative Agreements ? 1. Build trust 2. Ask questions 3. Give info 4. Meso - make existing simultaneous offers 5. Search for post settlement - settlements - What is involved in integrative bargaining - 1. Value creation, not just value claiming 2. Multiple issues and differences in priorities 3. Interest based, not just position based - Distributive - single issue - win/ lose - What is involved in distributive bargaining - 1. Single issues 2. Conflict Interest 3. Fixed sum structure / fixed pie - ones parties gain is another's loss - What are common negotiating mistakes ? 1. Assuming a fixed pie 2. Lack of planning and info  3. Irrational Escalation of commitment 4. Overconfidence 5. Sway away from framing - How to maximize joint value - 1. Maximize congruent aspects 2. Trade off Integrative aspects 3. Compromise on distribute aspects - BATNA - Best Alternative To a Negotiated Agreement - it is the 1) Standard against which any proposed agreement should be measured 2) protects you both from accepting terms that are unfavorable Know your BATNA - try to estimate counter parts BATNA , but it's usually concealed - What do you get if no agreement if no agreement is reached Distinguish positions ( what they say they want ) from their underlying interests (the reason why they want it) - You want to negotiate interests not positions Seek first to grow the pie before you start slicing - expand the overall value , and then you can try and take the largest piece. - Bazerman Reading - ZOPA - Zone of Possible Agreement - More issues = more complicated , assign points to issues based on how much you value it. - Uses Buyer and Sellers - Batna and their target price , or target for that interest - Walkaway point is the (0,0) point of a graph - Zopa occurs in top right coordinate on graph - Once you max the pie, you claim value - In the bottom left - you would chose your BATNA - When moving north from the walkaway price your growing the pie - You do not want to take an offer that is less than your BATNA - Logrolling coalitions - based on leverage parties uncommon interests, trading favors on issues to which one is relatively indifferent. - Coalitions - groups of people which combine power under one central voice. - Compromise Coalitions - based on finding the middle between parties/groups with opposing positions Session 22 - - The tipping point - - Expected trend - - Observed trend - - People tend to think that innovations are adopted in a linear fashion, but they take an S - shape. In the beginning very few people start to adopt, then more people adopt, but it becomes more self-sustaining. - Who the innovators / early adopters are - Who are key people that can sell idea and make it grow viral Mavens - have important info. relating this decision Connectors - the bridges between the different groups involved in making the decision Salespeople - 1. Have high Internal influence 2. can help champion this idea