OB 360 – Exam 2

Three Capitals of Prosperity

Financial, Social, Human

Homophily

Tendency to bond with others who are similar to you (Similarity Attraction Theory)

Brokerage

The act of connecting otherwise unconnected individuals or closing \n the gap in the social network structure

Benefits of being a broker

More access to unique information

Increased creativity and job performance

More social influence, i.e informal power

Shared Activity Principle

Forge connections through activities that a) evoke passion b) necessitate interdependence c) have something at stake, this leads to unscripted behaviors and natural responses while rallying around a common goal

Informal Conversations

Having conversations about non-work topics allow people to perceive you in a less instrumental way

Dormant Ties

People who we have not reached out to in a while are easier to reactivate into the network

Signs of Low Self Awareness

Won’t listen to or accept critical feedback

Can’t empathize

Have difficulty tailoring their message

Possess an inflated opinion of their contributions

Hurtful without realizing it

Take credit and blame others

Person-Environment Fir Theory

People are likely to perform better in organizations (i.e., person-organization fit) or at specific tasks (i.e., person-job fit) that are congruent with their personality trait

High in Conscientiousness

Detail-Oriented

Reliable and Hard working

Well organized

Self-control

Low in Conscientiousness

Careless

Unreliable

Disorganized

Impulsive

Extroverted

Energetic and Talkative

Seek social activities

Outgoing

Introverted

Quiet and reserved

Focus on own world

Selective in social relationships

High on Agreeableness

Cooperative and inclined to compromised

Avoid conflict

Empathetic

Trusting

Low on Agreeableness

Uncompromising

Abrasive and confrontational

Self-centered

Skeptical

Downside to Openness to Experience

Can be perceived as unfocused, risky or disruptive

Downside to Conscientiousness

Risk of being controlling and obsessive

Rigidity can clash with others openness to experience

Downsides to Extraversion

Can be perceived as aggressive

Can dominate discussion

Downsides to Agreeableness

Unproductive conflict avoidance

Risk of burnout

Ingenuine

High on Neuroticism

Moody and temperamental

Insecure

Self conscious and anxious

Low on Neuroticism

Emotionally stable

Secure

Self-Satisfied

High on Openness

Creative and curious

Open to try new things and changes

Comfortable with abstract concepts

Liberal

Low on Openness

Conventional and lack curiosity

Prefer routine

Prefer factual concepts

Traditional and conservative

Narcissism

Represents an inflated view of self, feeling superior to others with an intense desire for attention and admiration

Behaviors:

* Self - promoting
* Flamboyant and attention seeking
* Won’t admit to wrongs
* Name-dropping

Machiavellianism

Someone with a strong belief in the effectiveness of manipulation, a cynical view of human nature, and an overall lack of morality

Behaviors:

* Attuned to social status and power
* Demand respect and submissio
* Calculative and strategic

Psychopathy

Overall lack of empathy, guilt and remorse while being impulsive and enjoying mental thrills

Behaviors

* Disregard for welfare and lacking remorse
* Seeking Sensation

Upsides to Narcissistic CEO’s

More likely to engage in CSR

More likely to initiate mergers and engage in radical innovation

Upsides to Machiavellianism

Useful in military settings, when sense of self should be reduced

Upsides to Psychopathy

Negotiation

Managing Up

The process of consciously working with your superior to obtain the best possible results for you, your boss, and the company

Mutual dependence

Leaders and employees equally depend on each other.

Over-dependence

The tendency to be overly dependent on the leader

Counter-dependence

The tendency to resent or rebel against the leader

Career Stages

Establishment → Advancement → Maintenance → Withdrawal

Employee Needs during Establishment Phase

Coaching

Feedback and Affirmation

Role-Modelling

Protection

Employee Needs during Advancement Phase

Exposure

Challenge

Sponsorship

Counseling

Employee Needs during Maintenance Phase

Autonomy

Opportunities to mentor

Needs during Withdrawal Phase

Consultative Roles

Boss Needs during Establishment ohase

Technical support

Psychological support

Boss Needs during Advancement phase

Loyalty

Boss Needs during Maintenance phase

Opportunities to mentor

Availability Heuristic

Tendency to use information that comes to mind quickly and easily when making decisions about the future

Framing Effect

hen our decisions are influenced by the way information is presented, as equivalent information can be more or less attractive depending on the way it is presented

Loss Aversion

Humans tend to be more sensitive to losing anything than gaining something

Anchoring Bias

Tendency to rely too heavily on the first piece of information we are given about a topic

Escalation of Commitment

Tendency to remain committed to our past behaviors, particularly those exhibited publicly, even if they do not have desirable outcomes

Confirmation Bias

Our tendency to focus on evidence that fits with or re-affirm our existing beliefs and ignore information that contradicts our existing beliefs

Overconfidence Bias

Our tendency to overestimate our abilities and expertise

Hindsight Bias

Our tendency to look back at an unpredictable event and think it was easily predictable

Ways to overcome cognitive biases

Establish concrete criteria before other options are presented

Involve outsiders

Time delay

Best Alternative To a Negotiated Agreement (BATNA)

The most advantageous alternative that a negotiating party can take if negotiations fail and an agreement cannot be made

Reservation Price

“Walk away” price, where it is too high for a buyer or too low for a seller

Target Price

The highest value the negotiator believe they can get from a negotiation

Settlement Range

Reservation Price – Target Price

ZOPA

Overlap in the two settlement ranges

How to calculate own BATNA/Reservation Price

List all current alternatives

Evaluate value of alternatives

Select highest value alternative (BATNA)

Reservation not lower than BATNA

Agreement Bias

Settling for terms worse than your BATNA

Winner’s Curse

Settling for too little or paying too much, lacking information

Lose-Lose

Leaving money on the table and failing to develop solutions to create a win-win situation

Hubris

Letting ego or emotion influence walking away from the deal

First Mover Advantage

First offer acts as an anchor for negotiation, anchor a little above the target price, but must be informed

Principle of Liking

People prefer to comply with the requests of those they know and like

Principle of Reciprocity

People repay in kind what they have received (the golden rule of social relationships)

Principle of Scarcity

People value items and opportunities more as they become less available

Principle of Authority

People tend to defer to authority, so expose your own expertise

Principle of Consistency

People align with their commitments, so get people to make smaller commitments before larger ones

Principle of Social Proof

People tend to follow the lead of others, or believe what they say, so use peer power when available to garner support

Distributive Approach

Negotiators view the negotiation as zero-sum, but limits creative approaches

Integrative Approach

Both parties look to integrate their goals under a larger umbrella, thus looking for ways to expand the “pie”

Alternative Dispute Resolution (ADR)

Mediation, arbitration, and other ways of resolving conflicts with the help of a specially trained, neutral third party

Mediation

When an outside third party (the mediator) enters the situation with the goal of assisting the parties in reaching an agreement 

Arbitration

Parties submit the dispute to the third-party arbitrator, who makes the final decision 

Terminal Values

End states people desire

Instrumental Values

Moral values about conduct

Positive affective v. Negative affective

Whether someone tends to experience positive or negative moods more often

Internal/External Locus of Control

The degree to which someone believes their life circumstances are based on their own actions

Negotiation Mistakes

Neglecting the other side’s problem

Holding price above other terms

Zero-Sum mindset

Searching too hard for common ground

Neglecting BATNA

Overlooking role bias and villification