Exam 1 Study Guide PDF

The Study Guide for Exam 1 History of Management Who is the godfather (i.e., the founder) of modern management? Peter Drucker What is the emphasis of scientific management? What are two core practices suggested by Taylor (i.e., motion studies, differential rate system)? Sc...

The Study Guide for Exam 1 History of Management Who is the godfather (i.e., the founder) of modern management? Peter Drucker What is the emphasis of scientific management? What are two core practices suggested by Taylor (i.e., motion studies, differential rate system)? Scientific management Started in the 1880s within the manufacturing industries Emphasized the scientific methods to improve the productivity of individual workers Motion studies=a method for improving efficiency and productivity by analyzing the movements involved in a task Differential rate system= (more skillful = higher pay). Principles of scientific management 1. ❑ Scientifically study each part of the task 2. ❑ Carefully select workers with the right abilities 3. ❑ Give workers the training and incentives to do the task What is the emphasis of administrative management? What are the contributions made by Henri Fayol? Administrative management= management concerned with managing the total organization. Henri Fayol the father of fayolism =A theory of management that analyzed and synthesized the role of management in organizations First to systematize management behavior First to identify the major functions of management (i.e., planning, organizing, leading, and controlling)  What is the emphasis of bureaucratic management? What are five key features of bureaucratic management? Bureaucratic management= Built on scientific management theory. Emphasized a system based on standardized procedures and clear chain of control. 5 key features 1. ❑ A well-defined hierarchy of authority Higher positions will supervise lower positions 2. ❑ Formal rules and procedures Facilitate consistency in practices 3. ❑ A clear division of labor Specialists should handle specific works 4. ❑ Impersonality Impersonal relationship between managers and employee Ensure unbiased decisions and equal treatment 5. ❑ Careers based on merit Hiring people only if they meet the specific qualifications for a job What did Hawthorne studies explore? What is the Hawthorne effect? According to Elton Mayo, what was the cause of Hawthorne effect? Hawthorne studies tried to see if lighting level affected workers in1920s Hawthorne Effect= Work performance seemed to increase over time because of the increased lighting, workers became more productive because they thought managers and supervisors cared about their well-being. Understand Maslow’s Hierarchy of needs theory. What is the potential problem of this theory we talked about in the class (hint: do you remember the bear?)? Maslow's Hierarchy of needs theory = People's needs are hierarchical and people must satisfy lower level needs before pursuing higher level ones. Problem= People do not need to pursue needs in that order (The bear) What are the differences between Theory X and Theory Y? Theory X= Represents a pessimistic, negative view of workers. Workers are irresponsible, resistant to change, lack ambition, hate work, and want to be led. Motivated by money and fear. Theory Y= Represents an optimistic, positive view of workers. Workers are considered capable of accepting responsibility, self direction, self control, and being creative.  Individual Differences What is personality? What are the big five dimensions (i.e., OCEAN)? How are these dimensions associated with different jobs? Personality= The stable psychological traits and behavioral attributes that give a person his/her identity. Might change over time so it's comparatively stable in a period. Both nature and nurture. Research suggests that about half is inherited Big 5 1. ❑ Openness to experience Imaginative, curious, broad-minded 2. ❑ Conscientiousness Dependable, responsible, persistent 3. ❑ Extroversion Outgoing, talkative, sociable 4. ❑ Agreeableness Trusting, cooperative, soft-hearted 5. ❑ Neuroticism (Emotional Stability) Anxious, insecure, worried 5 jobs Accountant= Conscientiousness Salesperson= Extroversion Nurse=Agreeableness Artist= Openness Professor= openness What are the differences between internal locus of control and external locus of control? Locus of control= Indicates how much people believe they control their fate through their own efforts. Internal locus of control= I could change everything (Less anxiety and greater motivation) External locus of control I am not made to success, its my fate  What is emotional intelligence? What are four traits of emotional intelligence? What is the difference between surfacing acting and deep acting? Emotional Intelligence= Ability to monitor your and others feelings and to use this information to guide our thinking and actions. 1. Self-awareness = The ability to read your own emotions 2. Self-management = The ability to control your emotions and give an adaptive emotional display (i.e., emotional labor) Surface Acting Strategy (e.g., give a fake smile without changing what you really think) Deep Acting Strategy (e.g., give a sincere smile after changing your previous thought) 3. Social awareness Read others’ emotions, and understand how your emotions and actions affect others 4. Relationship management The ability to communicate clearly and convincingly, build strong personal bonds Difference Between Surface Acting and Deep Acting =surface acting involves changing actions without altering emotions, while deep acting involves changing emotions to match actions: What is cognitive dissonance? What are the four ways to deal with cognitive dissonance (hint: make sure you can tell when I give you a scenario)? Cognitive dissonance= The psychological discomfort a person experiences between his or her cognitive attitude and incompatible behavior 4 ways to deal with dissonance: 1. Change attitude = “Smoking isn’t that bad!” 2. Change Behavior = Stop smoking 3. Find consonant elements that outweigh dissonant ones=“I ate a lot of vegetables!” 4. Belittle the inconsistency = “Bad for health? My granddad smokes, but he is 90 now!” It is very important to understand all distortions in perception we talked about in the class.  ❑ Stereotyping Tendency to attribute an individual to the characteristics of the group to which that individual belongs e.g. Feng is Chinese, so he should be good at math. Stereotype threat ❑ Halo effect Form an impression of an individual based on a single trait e.g. He is disorganized because he didn’t brush his teeth this morning. How many of you think physically attractive people have better work performance? ❑ Pygmalion effect Behave in ways that match how others think about you (i.e., others’ expectations) e.g. They call me “fatty”, so I eat a lot of cakes. ❑ Recency Effect Remember recent information better. e.g. More likely to order a steak if you just read something about cattle Why performance in an interview is so important? ❑ Fundamental attribution Attributes another person’s behavior to his or her personal characteristics when that person does something bad. Attribute another person’s behavior to situational factors when that person does something good. e.g. She is late just because she is lazy; He won because he has a rich dad. ❑ Self-serving bias: Take more personal responsibility for your success than for your failure e.g. I made it because of my hard work; I failed because of others’ fault. There will be at least one question based on the TED talk, “The Power of Introverts”. https://www.youtube.com/watch?v=c0KYU2j0TM4&t=40s Groups and Teams Understand the advantages and disadvantages of teamwork Advantages: Improve product and service quality, Increase job satisfaction for employees, Improve productivity, Increase efficiency Disadvantages: Social loafing Tendency of people to exert less effort when working in groups than when working alone Free rider issue Groupthink A cohesive group’s blind unwillingness to consider alternatives Social Conformity Asch Experiment Elevator Experiment  What are the differences between formal group and informal group? Can you give an an example for each of them? Formal Group= Group assigned by organizations or its managers to accomplish specific goals Example= Departments in a corporation Informal Group= Group formed by people whose purpose is getting together for friendship or a common interest. Informal learning Example Informal- Siemens employees “hang out” often in the lunchroom What is self-managed teams? What is the purpose of using this team practice? Is this based on Theory X or Theory Y? Self-managed teams= A group of workers who are given administrative oversight for their task domains. To increase productivity and employee quality of work life. Used by 75% of top 100 US companies. Based on theory Y What are five stages of group and team development? What tend to happen at each stage? What a leader should do at each stage? 1. ❑Forming (honeymoon period) Process of getting oriented and getting to know each other High uncertainty & low trust Leaders should allow time for people to socialize 2. ❑ Storming The emergence of individual personalities and roles and conflicts Leaders should encourage members to talk and to work through their conflicts 3. ❑ Norming Conflicts are resolved, close relationships develop, and unity and harmony emerge Group cohesiveness – “we feel we are bound” Leaders should help identify goals and values 4. ❑ Performing Members concentrate on solving problems and completing the assigned tasks Leaders should empower team members to do their work 5. ❑ Adjourning Members prepare for disbandment Leaders should give an overview of what they learned, so they could perform better in future teams. What are advantages and disadvantages associated with small teams and large teams?  Advantages of small teams= Better interactions, Better morale Disadvantages of small teams= Fewer resources, less innovation, unfair work distribution Advantages of large teams= More resources, Clear division of labor Disadvantages of large teams= Less interaction, Lower morale, social loafing- tendency to put in less effort What is social loafing? Social Loafing= Tendency of people to exert when in groups than when working alone, free rider issue What is groupthink? What did the Asch experiment and the elevator experiment try to explore (i.e., social conformity)? What are symptoms of groupthink? How to prevent groupthink? Groupthink= A cohesive group's blind unwillingness to consider alternatives Social Conformity= Asch Experiment, Elevator experiment Symptoms of groupthink ❑ Invulnerability “We must win! Nothing could be wrong!” ❑ Inherent morality Ignore the ethical implications ❑ Stereotyping of opposition “Other teams don’t agree with us. They are so damn stupid!” ❑ Rationalization Rationalize warnings that challenge the group’s assumption ❑ Self-censorship “All members think so. So, maybe I’m wrong” ❑ Illusion of unanimity “40% of you have explicitly showed agreements. So, we are good to go!” “Silent? OK, I assume you all agree!” ❑ Peer pressure “ Don’t agree with us? Where is your loyalty?” ❑ Mindguards Protectors against negative information Prevent Groupthink  Allow criticism, allow other perspectives, use the power of introverts Decision-making What are the differences between System 1 and System 2? System 1= Non-rational decision making. Reflexive,intuitive, unconscious, fast. Efficient to make everyday decision System 2= Rational decision making. Reflective, analytical,conscious, slow. Effective for complex decisions What does bounded rationality suggest? What are constraints to make perfectly rational decisions? Bounded Rationality= Suggests that the ability of decision makers to be rational is limited by some constraints. Constraints to perfect rational Decision making Complexity= Some problems are far more complex Time and money= Time and money are time and money Different cognitive, values, skills, and habits= Decision makers are not perfect Imperfect information= The source of information could be fragmentary Information overload= could not hold too much information at one time Different priorities= some information tends to thought as more important Conflict goals= other people might not have same goals What is heuristic? What are advantages and disadvantages of heuristic? It’s very important to understand all the biases we talked about in the class. Heuristics= Strategies that simplify the process of making decisions. Speed up the process of finding an answer. Easier to deal with uncertainty and limited information Advantages= develop critical thinking skills, problem-solving abilities, and a sense of intellectual curiosity.  Disadvantages= they will likely not produce the optimal decision and can also be wrong entirely. Create biases. Framing bias= Refers how a question or problem is presented, mere framing can dramatically affect people's choices Availability bias= Tendency to make prediction of the frequency of an event based on how easily an example can be brought to mind (Example; doctors to overestimate the chance of a rare disease) Representativeness bias= Tendency to attribute an object to a group based on how well the object matches particular prototype & the tendency to generalize from a small sample or a single event (Example; some muslim made people think all muslim are offensive) Anchoring Bias= Tendency to make decisions based on initial information (Example; This skirt is only $50! It used to be $200! I'm so delighted!) Confirmation bias= Seek information that supports wheat you believe and disregard information that does not (Example; If you fall in love, you tend to notice good things he/she does (Love blind)) Overconfidence Bias= Subjective confidence in decision making is greater than objective accuracy (Example; 93% of American drivers rate themselves as better than the median) Hindsight Bias= Believe events as more predictable than they really are (Example; Efter something happened you say you knew it all along) Escalation of commitment bias= Increase commitment to one thing despite negative outcomes associated with decision (Example; Hesitate to discontinue an undesirable romantic relationship) What is brainstorming? What is the key rule of brainstorming (i.e., don’t criticize)? Brainstorming= Technique used to help groups generate multiple ideas and alternatives for solving problems. 7 RULES OF BRAINSTORMING 1. Defer Judgment – don’t criticize  2. Build on the ideas of others – extend others’ ideas 3. Encourage wild ideas – outrageous ideas are better 4. Go for quantity over quality – generate as many as ideas as possible 5. Be visual – use different colored pen to note opinions 6. Stay focused on the topic – keep on track! 7. One conversation at the time – don’t interrupt another person Organizational Culture/Structure What is organizational culture? Organizational Culture= The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments. What are four types of organizational cultures? You should be able to recognize them if given a case. Competing Values Framework 1. Internal focus 2. External focus 3. Flexibility 4. Stability What are three levels of organizational culture? Level 1: Observable artifacts= Visible physical manifestations such as symbols, dress code, slogans, decorations  Level 2: Espoused Value= Explicitly stated values and norms preferred by an organization. Range from published documents to verbal statements. Level 3: Basic Assumptions= Represents the core values of the organization's culture. Those taken for granted and highly resistant to change (Example Apple- Think different ) What are the differences between narrow span of control and wide span of control? Narrow Span of Control= Few people reporting to manager. Tall structure. More supervision and less autonomy. Wide Span= Many people reporting to a manager. Flat structure. Less supervision, more autonomy. What are the differences between centralization and decentralization? Centralized= Important decisions made by top management Decentralized= Important decisions made by lower level managers You should know the features of mechanistic organization and organic organization and the main advantage of each (i.e., mechanistic organization is efficient; organic organization is flexible)  Trust, Justice, & Ethics What are the three types of trust? Disposition-based trust = Natural propensity to trust/not trust people. Genetic, learned, and cultural. Varies greatly by country Cognition-based trust= Judge trustworthiness based on: Ability -to do what they say. Benevolence- do they care about me. Integrity- having values other people agree with. Affect-based trust= Trust due to liking or mutual felt obligation. Applies to close relationships. Research shows that people are most angry/feel most harmed when trust violations are deliberate, avoidable, and come from close others. What are the three factors influencing people’s judgement of cognition-based trust? Ability, Benevolence, Integrity What are the four types of justice? You should be able to recognize them if given a case. 1. Distributive justice= Reflects the perceived fairness of outcome distribution based on proper norms. Equity norm: Everyone working together to get the same outcomes (student project). Need norm: Outcomes are distributed based on need. Equity norm: Outcomes are aligned with relative performance (deemed most fair in USA). When people are unhappy with distributive outcomes they consider procedural justice. 2. Procedural Justice= Reflects the perceived fairness of decision-making based on; Voice (Instrumental/expressive). Correctability (Appeal). Consistency (Across people/time). Accuracy (accurate info). Bias Suppression (unbiased procedures). Example of procedural justice is consumer reports. 3. Interpersonal justice= Reflects the perceived fairness of interpersonal treatment. Respect: are employees treated with sincerity and dignity? Propriety: do authorities do improper remarks, outburst, abusive behavior? 4. Informal Justice= Reflects the perception of the communication. Justification: Are procedures and decisions explained clearly? Truthfulness: Are the explanations honest? What are the four components in the cognitive model of ethical decision making? 1. ❑ Moral awareness – “smoking has moral concerns” Recognize that a situation has moral concerns. 2. ❑ Moral judgment – “smoking in the building is unethical” Decide whether a course of action is ethical or unethical. 3. ❑ Moral intent – “I should smoke outside” Choose to engage in the most ethical course of action. 4. ❑ Ethical behavior – you smoke outside Carry out the ethical course of action. What are the six factors that determine moral intensity? 1. ❑ Magnitude of consequences How much harm would be done to other people? e.g. a bomb killing 1000 vs. a bomb killing 1 2. ❑ Probability of effect How likely will the act actually cause consequences? e.g. steal a DVD from Target vs. download movies illegally 3. ❑ Temporal immediacy How much time will pass between the act and its consequences? e.g. a drug that causes side effect immediately vs. a drug that causes side effects 20 years later 4. ❑ Concentration of effect Will the consequences be concentrated on a limited set of people? e.g. steal ten thousand dollars from an individual vs. steal ten thousand dollars from a company 5. ❑ Social consensus How much agreement is there that a behavior is unethical? e.g. China vs. U.S. 6. ❑ Proximity How near (in a psychological or physical sense) is you to those who will be affected? In-group or out-group? e.g. shooting at MA school vs. shooting in Hong Kong What are the three approaches to deciding ethical dilemmas? You should be able to recognize them if given a case. 1. Utilitarian (Jeremy Bentham)= An act is morally right if it results in the greatest amount of good for the greatest number of people. 2. Individual approach (Adam Smith)= An act is morally right if the decision maker freely decides to pursue either short-term or long-term self-interest. 3. The moral-rights approach (John Locke)= An act morally right if it respects the natural rights of others such as the right of life, liberty, justice, expression, association, privacy, and education. What are some causes of unethical behavior (e.g., sleep deprivation, moral licensing)? Sleep deprivation is positively related to unethical behavior such as cheating and lying. Because sleep deprivation can cause low self-control which leads to higher likelihood of unethical behavior. Researchers also found that people are  more likely to lie and cheat in the morning than in the afternoon. Why? Low moral awareness. People are more likely to cheat when they are in a dark room or when they wear sunglasses. ❑ Why? ❑ People have an illusory sense of being anonymous. Counterfeit Products= People are more likely to cheat when they use counterfeit products. Why? Using fake products makes people feel inauthentic about themselves What is the core idea of moral disengagement theory? What are the eight practices people are doing to morally disengage? (you can find them in the slides of Case Study 1 instructions) Moral Disengagement= People do not have ordinarily engage in harmful conduct until they have justified to themselves the morality of their actions- Albert Bandura Eight moral disengagement practices: 1. Moral justification= Emphasize the bright side of the unethical behavior 2. Euphemistic labeling= rename unethical actions to make them sound less harmful 3. Advantageous comparison= Compare to other behaviors that are more harmful 4. Displacement of Responsibility= Attribute personal responsibility to authority figures 5. Diffusion of responsibility= Disperses their personal responsibility across others 6. Disregard or distortion of consequences= Minimize or completely disregard the harmfulness of the unethical behavior 7. Dehumanization=Frame the victims as lacking human qualities such as feelings and hope 8. Attribution of blame= Attribute personal responsibility to the victim There will be at least one question based on the TED talk, “Why we think it's OK to cheat and steal (sometimes)”. https://www.youtube.com/watch?v=nUdsTizSxSI&t=635s