EXAM 2 OB

Team

A group of people who rely on one another’s work to complete a shared task or goal.

Task interdependence

Task Interdependence: The degree to which team members depend on each other’s work to complete their own tasks and achieve a shared goal.

Example: In a restaurant, a waiter depends on the chef to prepare the food before they can serve it to customers.

Team performance formula

A team's performance depends on what its members can accomplish, plus the benefits of teamwork, minus problems that slow them down.

Formula:

Performance = Potential Productivity + Process Gains − Process Losses

Example: A team could complete 10 tasks, but teamwork helps them finish 3 extra tasks. Poor communication causes them to lose 2 tasks.

10 + 3 − 2 = 11 tasks completed

Remember: Team performance = Potential + Benefits − Problems.

Social loafing

When someone puts in less effort in a group because they expect others to do the work.

Example: A student barely contributes to a group project because they know their teammates will finish it for them.

Additive task

A task where everyone’s contributions add together to form the result.

Example: A marketing team is brainstorming ideas for a new product. Each member contributes different ideas and suggestions, which are combined to create a larger list of possible strategies.

Disjunctive task

A team task where the group's success depends on its best-performing member or whoever comes up with the best solution.

Conjunctive task

A task where the weakest contribution can limit the entire team. In an audit, one missed critical error could ruin an otherwise strong report.

Pooled interdependence

Team members complete their own parts independently, then combine the results at the end.

Sequential interdependence

Work moves in a set order from one person to the next. A writer finishes a draft before the editor can begin.

Reciprocal interdependence

When two or more people depend on each other's work and regularly exchange information to complete a task.

Example: A designer creates a product, an engineer checks if it will work, and the designer makes changes based on the engineer's feedback. They continue working back and forth.

Comprehensive interdependence

Everyone’s work affects everyone else’s, so the team keeps sharing information and adjusting throughout the task.

Five teamwork competencies

Five skills that make someone a good teammate.

1. Contributing: Doing your fair share of the work.

2. Interacting: Communicating and cooperating with others.

3. Keeping on track: Making sure the team stays focused and meets deadlines.

4. Expecting quality: Making sure the team's work meets high standards.

5. Having relevant knowledge and skills: Bringing the abilities needed to complete the task.

Example: In a group project, everyone completes their part, communicates, stays on schedule, checks the quality, and uses their strengths to help the team.

Tuckman’s team development stages

• Forming: Members meet and figure out their goals and roles.

• Storming: Members disagree about ideas, roles, or leadership.

• Norming: They establish shared expectations and start working together more comfortably.

• Performing: They coordinate well and focus on completing the task.

• Adjourning: The task ends and the team separates.

“Funny Snakes Never Pet Alligators”

Gersick’s punctuated equilibrium

A team follows an established routine through the first part of a project. Around the midpoint, members rethink the plan and make a major change, then work with that new approach until the deadline.

Transition processes

The planning a team does before or between periods of work, such as reviewing its situation, choosing a strategy, and setting goals.

Action processes

How a team organizes and manages its work while completing tasks to reach a goal.

Example: During a group project, one member checks everyone's progress, notices someone is falling behind, and helps them finish on time.

Interpersonal processes

How team members interact, handle conflicts, and support each other while working together.

Example: Two teammates disagree about how to complete a project. Instead of arguing, they listen to each other, resolve the disagreement, and encourage each other to finish the work.

Coordination loss

When a team wastes time or becomes less productive because members struggle to organize and work together.

Example: A group project gets delayed because one member hasn't finished their part, preventing others from completing theirs.

Closed-loop communication

The sender gives a message, the receiver repeats what they understood, and the sender confirms or corrects it so both people know the message is accurate.

Emergent state

A shared belief or feeling, such as trust or confidence, that develops through the team’s experiences and interactions.

Psychological safety

A team environment where people feel comfortable asking questions, admitting mistakes, and disagreeing without fear of being punished or embarrassed.

Trust

Believing you can depend on someone to be honest, keep promises, and do their job well.

Three Types of Trust:

• Contractual Trust: Trusting someone to keep their promises.

  • Example: A teammate finishes their assigned work by the deadline.

• Communication Trust: Trusting someone to be honest and share information.

  • Example: A manager tells employees about a problem instead of hiding it.

• Competence Trust: Trusting someone because they have the skills to do the job.

  • Example: You trust an experienced coworker to handle an important task.

Transactive memory

A shared understanding among team members of what each person knows and specializes in, allowing the team to rely on the right person for specific information or problems.

Functional conflict

A healthy disagreement where people challenge each other's ideas to make better decisions, without making it personal.

Example: Two employees disagree about how to complete a project. They discuss both approaches and find a better solution together.

Devil’s advocacy

Assigning someone to challenge a proposal and point out weaknesses using facts, even if they personally agree with it.

Integrating conflict style

Both sides openly discuss their concerns and work together on a solution that addresses what matters most to each person.

Obliging conflict style

Putting the other person’s concerns ahead of your own, usually when the issue matters much more to them.

Dominating conflict style

Pushing for your preferred decision with little input from the other side, sometimes when urgent action or clear authority is needed.

Avoiding conflict style

Choosing not to address a disagreement right away, such as when it is minor or both sides need time to cool down.

Compromising conflict style

Both sides agree to give up something they want so they can meet in the middle and settle a disagreement.

Example: Two employees want Friday off, but only one can take it. They agree to alternate Fridays so both get time off.

Distributive negotiation

When employees or managers negotiate over limited resources, where one side getting more means the other gets less.

Example: Two departments are negotiating over a $10,000 company budget. If Marketing receives $7,000, Operations only gets $3,000.

Integrative negotiation

Negotiating by finding out what each side values most and arranging a deal that can meet both sides’ important needs, such as trading price for faster delivery.

BATNA

BATNA (Best Alternative to a Negotiated Agreement)

Your best backup option if you cannot reach an agreement during a negotiation.

Example: You negotiate a salary of $60,000, but the company only offers $50,000. Since another company has offered you $55,000, you can reject the $50,000 offer.

BATNA is your Plan B if negotiations fail. It helps you know when to walk away from a bad deal.

System 1 thinking

Making a quick, automatic judgment based on instincts or familiar patterns, often without carefully weighing every option.

System 2 thinking

Slowing down to examine evidence, compare options, and think through a decision carefully.

Anchoring bias

Relying too heavily on the first piece of information you receive when making decisions or estimates.

Example: A manager hears that a job should pay $50,000 and uses that number to evaluate salaries, even when market research suggests $65,000.

Confirmation bias

Paying more attention to evidence that supports what you already believe while overlooking information that challenges it.

Framing bias

Reacting differently to the same outcome depending on whether it is described as a gain or a loss.

Rational decision-making model

First identify the problem or opportunity. Next, come up with possible options. Then evaluate the options and select one. Finally, carry it out and check the results.

Bounded rationality

Making decisions with limited time, information, and mental resources, which makes it difficult to consider every possible choice.

Satisficing

Choosing the first option that is good enough and meets your needs instead of searching for the best possible option.

Example: You're buying a laptop. You find one that fits your budget and does everything you need, so you buy it instead of comparing every laptop available.

Groupthink

When the desire for agreement becomes so strong that group members hold back doubts, avoid disagreement, or accept a decision without properly questioning it.

Example: A company’s management team agrees to launch a new product. Some employees believe the product isn't ready, but they stay quiet because everyone else supports the idea. The company launches it without addressing potential problems, leading to poor sales.

Key idea: People prioritize agreeing with the group over speaking up, which can lead to poor decisions.

Power

The ability to influence another person’s choices or behavior, or to resist someone else’s influence.

Legitimate power

Influence that comes from an officially recognized position, such as a manager’s authority to assign work.

Reward power

Influence that comes from controlling something others want, such as bonuses, promotions, or preferred assignments.

Coercive power

Influence that comes from being able to impose an unwanted consequence, such as a penalty or disciplinary action.

Expert power

Influence that comes from having valuable knowledge or skills that other people rely on.

Referent power

Influence that comes from people admiring, respecting, or identifying with you.

Rational persuasion

Using relevant facts, evidence, and logical reasons to convince someone to support an idea.

Consultation

Inviting someone to help shape a decision or plan so their ideas become part of it.

Inspirational appeal

Connecting a request to a goal or value that matters to people, making them genuinely want to support it.

Psychological empowerment

Feeling that your work is meaningful, that you are capable of doing it, that you have choices in how to do it, and that your actions make a difference.

Compliance

Going along with a request even though you are not personally invested in the goal.

Commitment

Personally believing in a goal and actively wanting to help achieve it.

Structural empowerment

Giving employees the authority, information, resources, and training they need to make decisions independently.

Example: A retail manager allows employees to approve customer refunds without asking permission, while providing clear guidelines and access to the necessary systems.

Leadership

Influencing and guiding people to work toward a shared goal, often by providing direction and motivation.

Management

Planning tasks, organizing people and resources, carrying out plans, and checking that work gets done.

Trait approach

The idea that certain personality traits and personal qualities make someone more likely to become an effective leader.

Example: A manager who is confident, responsible, and emotionally intelligent may be a better leader because they can make decisions, handle pressure, and understand employees.

Implicit leadership theory

People judge whether someone is a good leader based on their personal expectations of how a leader should look, act, and behave.

Example: An employee believes good leaders should be confident and outspoken. When a new manager is quiet but makes excellent decisions, the employee initially doubts their leadership abilities.

Initiating structure

A leader makes responsibilities, goals, deadlines, and work procedures clear so employees know what is expected.

Consideration

A leader treats employees with respect, builds trust, and pays attention to their needs and concerns.

Transactional leadership

A leadership style where managers set clear expectations and use rewards or consequences to motivate employees to meet performance goals.

Example: A sales manager offers employees a $500 bonus if they reach their monthly sales target. Employees who consistently miss their targets receive additional coaching or corrective action.

Transactional = Exchange. Good performance earns rewards.

Transformational leadership

A leader builds commitment to a meaningful shared vision by setting a strong example, encouraging new ideas, and helping each person develop.

Fiedler’s contingency model

A leadership theory developed by Fred Fiedler that explains how a leader’s success depends on how well their leadership style matches the situation.

Fiedler believed leaders naturally focus on one of two styles:

• Task-focused: Prioritizes completing tasks and getting results.

• Relationship-focused: Prioritizes building trust and maintaining good relationships with employees.

Which style works best depends on three factors:

1. Leader-member relationships: How well the leader gets along with employees.

2. Task structure: How clearly tasks and responsibilities are organized.

3. Position power: How much authority the leader has.

When each style works best:

• High or low control: Task-focused leaders.

• Moderate control: Relationship-focused leaders.

Main idea: Instead of expecting leaders to change their natural style, match them with situations where they will be most effective.

• High control: Employees are experienced, tasks are clear, and the manager has authority. A task-focused leader works best because everyone already knows what to do.

• Moderate control: Employees understand their jobs but have disagreements or need motivation. A relationship-focused leader works best by building trust and improving teamwork.

• Low control: Employees are inexperienced, tasks are unclear, and the manager has little authority. A task-focused leader works best by providing direction and structure.

Path-goal theory

A leader adjusts their behavior to what employees need by clarifying the steps toward a goal, removing obstacles, giving support, and connecting progress with valued rewards.

Inspirational motivation

A leader communicates an exciting shared vision and makes people feel that their work is part of something meaningful.

Idealized influence

A leader earns respect and trust by setting a positive example through their actions, values, and behavior.

Example: A manager consistently works hard, treats employees fairly, and takes responsibility for mistakes, encouraging employees to do the same.

Individualized consideration

A leader pays attention to each person’s needs and helps them grow through personal coaching and support.

Intellectual stimulation

A leader encourages people to question assumptions, rethink old methods, and suggest creative solutions.

Leader–member exchange (LMX)

The quality of the relationship between a leader and each employee. High LMX involves mutual trust, respect, and support. Low LMX stays more formal and centered on basic job responsibilities.

Organizational culture

The shared beliefs and unwritten expectations that shape how people think, behave, and make decisions at work.

Observable artifacts

The visible and noticeable parts of workplace culture, such as office layout, dress, company rituals, and everyday behavior.

Espoused values

The beliefs and priorities an organization says it stands for, such as teamwork or work–life balance.

Enacted values

The beliefs and priorities shown by what an organization actually does, rewards, and allows.

Basic underlying assumptions

Beliefs employees accept as true without questioning them because they seem normal.

Example: At a company, employees automatically help each other because everyone believes teamwork is simply how things should be done.

Remember: Unspoken beliefs about how things are supposed to work.

Clan / collaborate culture

A workplace culture centered on belonging, teamwork, employee involvement, and developing people.

Adhocracy / create culture

A workplace culture where people are encouraged to experiment, take reasonable risks, and respond quickly to change.

Market / compete culture

A workplace culture that emphasizes results, meeting targets, winning customers, and outperforming competitors.

Hierarchy / control culture

A workplace culture built around clear rules, standard procedures, efficiency, and predictable results.

Organizational socialization stages

Definition: The three stages employees go through to learn about, adjust to, and become comfortable in a new organization.

1. Anticipatory: Before joining, employees develop expectations about the company.

2. Encounter: After joining, employees experience the actual workplace and compare it to their expectations.

3. Change and Acquisition: Employees adjust, learn their responsibilities, and become comfortable in their roles.

Example: A student starts an internship at a marketing company.

1. Anticipatory: Before starting, they research the company and expect a creative, collaborative workplace.

2. Encounter: During their first week, they discover the job involves more independent work than expected.

3. Change and Acquisition: After several weeks, they adjust to the work environment, understand their responsibilities, and become confident in their role.