PSY 3113 Midterms Reviewer (Chapter 1-6)

Studying OB can help you: (4)

- Become a better employee

- Become a better manager

- Understand how people behave and why they do what they do

- Help you focus on developing a global mindset

Organizations that successfully implement OB principles have: (3)

Motivated, engaged employees whose goals align with business

strategy

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Strong leadership and direction

-

Better bottom lines

The 4 Management Functions

Planning

Organizing

Leading

Controlling

Resources Used By Managers

human, financial, physical, and information

Planning

Determining an organization's desired future position and the best means of getting there

Organizing

Designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units

Leading

Getting the organization's members to work together toward the organization's goals

Controlling

Monitoring and correcting the actions of the organization and its members to keep them directed toward their goals

technical, interpersonal, conceptual, diagnostic

Critical Managerial Skills (4)

Technical Skills

The skills necessary to accomplish specific tasks within the organization

Interpersonal Skills

to communicate with, understand, and motivate individuals and groups.

Conceptual Skills

the manager's ability to think in the abstract. A manager with this is able to see the "big picture." That is, he or she can see opportunity where others see roadblocks or problems.

Diagnostic Skills

allow managers to better understand cause-and-effect relationships and to recognize the optimal solutions to problems.

Human Resource Management (HRM)

The set of organizational activities directed at attracting, developing, and

maintaining an effective workforce

Competitive advantage

An organization's edge over rivals in attracting customers and defending itself against competition

Sources of Competitive Advantage (9)

innovation, distribution, speed, convenience, first to market, cost, service, quality, branding

Innovation

Developing new products, services, and markets and improving current ones.

Distribution

dominating these channels to block competition

Speed

Excelling at getting your product or service to consumers quickly

Convenience

Being the easiest for customers to do business with

First to Market

Introducing products and services before competitors

Cost

Being the lowest-cost provider

Service

Providing the best customer support before, during, or after the sale

Quality

Providing the highest-quality product or service

Branding

Developing the most positive image

Cost Leadership

Striving to be the lowest-cost producer for a particular level of product quality.

Cost Leadership

This strategy emphasizes on operational excellence

Operational Excellence

Maximizing the efficiency of the manufacturing/product development process to minimize costs

Differentiation

Developing a product or service that has unique characteristics valued by customers

Organizational behavior

the study of human behavior in:

- organizational settings,

- the interface between human behavior and the organization,

- the organization itself

Differentiation

This strategy emphasizes on product innovation

Product Innovation

developing new products or services

Specialization

Focusing on a narrow market segment or niche and pursuing either a differentiation or cost leadership

strategy within that market segment.

Specialization

This strategy emphasizes on customer loyalty.

Customer loyalty

delivering unique and customizable products or services to meet customers'

needs.

Growth Strategy

Company expansion organically or through acquisitions

Scientific Management

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First formal study of OB (1890s), abandoned after WWI

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Maximized productivity but led to monotonous, dehumanizing conditions

Hawthorne Effect

the alteration(improvement) of behavior by the subjects of a study due to their awareness of being observed.

Human Relations Movement

Viewed organizations as cooperative systems

-

Treated workers' orientations, values, and feelings as important parts of

organizational dynamics and performance

-

Created a new era of more humane, employee-centered management

and highlighted the importance of people to organizational success

-

But was hampered by unsound research methods

Systems Perspective

An interrelated set of elements that function as a whole—inputs are

combined/transformed by managers into outputs from the system

Situational Perspective

suggests that in most organizations, situations and outcomes are influenced by other variables

Universal Model

Presumes a direct cause-and-effect linkage between variables

Complexities of human behavior and organizational settings make universal conclusions virtually impossible

Interactionalist Perspective

Focuses on how individuals and situations interact continuously to

determine individuals' behavior

-

Attempts to explain how people select, interpret, and change various

situations

Enhance behaviors and attitudes

-

Promote citizenship

-

Minimize dysfunctional behaviors

-

Drive strategic execution

Managers' goals (4)

Productivity

▪ Narrow measure of efficiency: number of products or services created per

unit of input

Performance

▪ Broader concept made up of all work-related behaviors

Commitment

▪ The degree to which an employee considers himself or herself a true

member of the organization, overlooks minor sources of dissatisfaction,

and intends to stay with the organization

Organizational citizenship

-

Behaviors that make a positive overall contribution to the organization

-

Encompasses all factors outside the strict requirements of the job

Dysfunctional behaviors

-

Behaviors that detract from, rather than contribute to, organizational

performance

Strategic execution

-

The degree to which managers and their employees understand and

carry out the actions needed to achieve strategic goals

-

Assessed at the individual/group level, the organizational level, and in

terms of financial performance

Intuition

the ability to understand something immediately, without the need for conscious reasoning.

Scientific Method

a useful approach to learning more

about organizational behavior.

theory

is a collection of verbal and symbolic assertions that specify

how and why variables are related, and the conditions under which they

should and should not relate.

hypothesis

is a written prediction specifying expected relationships

between certain variables.

independent variable

is the variable the researchers set

dependent variable

is the variable the researchers measure

Correlation

—the strength of the relationship between the two variables

perfect positive relationship

A +1 correlation is called?

perfect negative correlation

A -1 correlation is called?

meta-analysis

is used to combine the results of many different research studies done for a variety or organizations and jobs

Globalization

-The internationalization of business activities

-The shift toward an integrated global economy

-Advances in communication and transportation

-Growth by expansion into international markets

-Control of labor, distribution and distribution costs

-In response to increased international competition

Factors Increasing Globalization (4)

individualism

Exists to the extent that people in a culture define themselves primarily as

individuals rather than as part of one or more groups or organizations

Collectivism

on the other hand, is characterized by tight social frameworks in which people tend to base their identities on the group or organization to which they belong.

Power distance (orientation to authority)

extent to which people accept as normal an unequal distribution of power

Uncertainty avoidance (preference for stability)

extent to which people feel threatened by unknown situations and prefer to be in clear and unambiguous situations.

Masculinity (assertiveness or materialism)

The extent to which the dominant values in a society emphasize aggressiveness and the acquisition of money and other possessions as opposed to concern for people, relationships among people, and overall quality of life

long-term values

include focusing on the future, working on projects that have a distant payoff, persistence, and thrift

short-term values

are more oriented toward the past and the present and include respect for traditions and social obligations.

Diversity

refers to the variety of observable and unobservable similarities and differences among people.

surface-level diversity

observable differences in people, including race, age, ethnicity, physical abilities, physical characteristics, and gender.

deep-level diversity

refers to individual differences that cannot be seen directly, including goals, values, personalities, decision-making styles, knowledge, skills, abilities, and attitudes.

separation diversity

Differences in position or opinion among group members reflecting disagreement or opposition—dissimilarity in an attitude or value, for example, especially with regard to group goals or processes

Variety diversity

differences in a certain type or category, including group members' expertise, knowledge, or functional background

disparity diversity

differences in the concentration of valuable social assets or resources - dissimilarity in rank, pay, decision-making authority, or status

"like me" bias

people prefer to associate with others they perceive to be like themselves

Stereotypes

A belief about an individual or a group based on the idea that everyone in a particular group will behave the same way or have the same characteristics.

Prejudice

Outright bigotry or intolerance for other groups

Perceived threat of loss

If some employees perceive a direct threat to their own career opportunities, they may feel that they need to protect their own prospects by impeding diversity efforts

Ethnocentrism

The belief that one's own language, native country, and cultural rules

and norms are superior to all others.

unequal access to organizational networks

Women an minorities are often excluded from organizational networks, which can be important to job performance, mentoring opportunities, and being seen as a candidate for a promotion

General Observations on Culture (note only)

-Cultural and national boundaries may not coincide

-Behavior in organizational settings varies across

cultures—culture is one major cause of this variation

-The causes and consequences of behavior within

organizational settings are diverse across cultures

Organizations and the way they are structured

appears to be growing increasingly similar

-The same individual behaves differently in different

cultural settings

-Cultural diversity can be an important source of

synergy in enhancing organizational effectiveness

Geert Hofstede's Research

-Attitudes and behaviors differ significantly because of

values and beliefs that characterize different countries

cultural competence

the ability to interact effectively with people of different cultures

Culture

the set of shared values, often taken for granted, that help people in a group, organization, or society understand which actions are acceptable and not.

Global Perspective

a willingness to be open to and learn from the alternative systems and meanings of other people and cultures, and a capacity to avoid assuming that people from everywhere are the same

Technology

refers to the methods used to create products, including both physical goods and intangible services.

Manufacturing

is a form of business that combines and transforms resources into tangible outcomes that are then sold to others

service organization

is one that transforms resources into an intangible output and creates time or place utility for its customers

Ethics

A person's beliefs regarding what is right or wrong in a given situation

Corporate Governance

Refers to the oversight of a public corporation by its board of directors

Corporate Social Responsibility

Businesses living and working together for the common good and

valuing human dignity

Assimilation

-The process through which members of a minority group are forced to learn the ways of the majority group

-Homogeneity reduces awareness of diversity issues

-Perpetuation of false stereotypes and prejudices

-Dominant groups continue to make decisions based

on their own values and beliefs

-Minority groups have little say in decision-making

Assimilation Effects

Governance Issues

-Proper management of the business in the best interests of the stakeholders

-Independence of the board from the business

Information Technology Issues

-Individual rights to personal information privacy

-Abuse of information technology

Management of Knowledge Workers

employees who add value in an organization simply because of what they know

Knowledge Worker Employment Issues

- Unique working arrangements and performance motivation requirements

- Specifically (individually) tailored compensation packages

Outsourcing

-The practice of hiring other firms to do work previously

performed by the organization itself

-Helps firms to focus on core activities

-Lowers labor costs through exportation of work

Advantages of Outsourcing