Studied by 12 people
performance incentives
reward that ties pay to performance
types of performance incentives
profit sharing, employee stock ownership, piece-rate, merit-based raise, bonus, commission, fixed base pay
when does individual performance pay work best
worker output easily measured, workers can focus on measurable task, output not dependent on others
incentives of money
can undermine complex thinking
self determination theory
people prefer to feel they have control over their actions so anything that makes an enjoyed task feel like an obligation instead of a freely chosen activity will undermine intrinsic motivation
incentives can have unanticipated consequences
you get the behavior you reward, not the behavior you want
incentives can enhance perceptions of inequity
3rd problem of incentives
payback
greatest when trust is given
formal or informal contract increases trust, performance, and motivation
informal
smart goal
specific, measurable, agreed upon, reasonable, time bound
sender bias
illusion of transparency, sugarcoat negative infore
recipient bias
positive self illusions, self affirmation
fundamental attribution error
bias in how individuals view their contributions and contributions of others
egocentric bias
we overestimate our own contribution b/c of availability heuristic
self fulfilling prophecy
initial impressions tend to be confirmed and further enforced
performance feedback steps
prepare, communicate feedback, followup
feedback aspects
frequency, method, timing, target, topic
formal power
coercive, reward, legitimate
personal power
expert, referent
low power individuals
obey demands, influenced when persuaded
powerless individuals
treated more sympathetically and generously than those with little power
problems with power
overconfident, objectify others, less likely to take perspective of others
why does power decrease empathic concern
less perspective taking, less motivation to affiliate with others
how does power affect norms
less likely to follow norms
escape downside of power
cultivate humility and empathy
organizational culture
shared values and norms that define appropriate attitudes and behaviors of organization members
culture is strong when
set of norms and values that are widely share and strongly held
artifacts
what one sees, hears, feels
espoused values
sense of what out to be, rather than what is
basic underlying assumptions
unconscious, taken for granted beliefs, hard to change
where does culture come from
founders and early members
benefit of strong culture
high motivation, cohesion
costs of strong culture
unwillingness to question shared values, lack of diverse opinions and perspectives
exploration
creating new possibilities via experimentation
incremental vs divergent creativity
gradual improvement vs entirely new principles
creativity vs innovation
idea generation vs idea implementation
creative personality traits
tolerance of ambiguity, openness to experience
who should decide on idea success
creators were most accurate in predicting success
how to sell ideas
make the unfamiliar familiar (ex the Uber for x)
personality
stable ways of thinking, feeling, and acting that make a person unique
MBTI
extroversion/introversion, sensing/intuiting, thinking/feeling, judging/perceiving
pros of mbti
widely used, recognize individual differences
cons of mbti
little evidence, forces bi-modality (either/or)
Big 5 OCEAN
openness, conscientiousness, extraversion, agreeableness, neuroticism (emotional stability)
when is personality more likely to be linked to actual behavior
weak situation - low clarity of duties and weak norms
terminal values
desirable end states (happiness, social recognition, comfortable life)
instrumental values
preferable modes of conduct (self control, intellect, imagination)
individual vs collective culture
standing out vs cohesive group
limits of rational decision analysis model
bound by uncertainty and imperfection of the mind
decision process
encounter problem -> gather info -> analyze options -> assess decision
narrow framing
focus on trade offs, not creative solutions, miss hidden alternatives
solution to narrow framing
expand your options
confirmation bias
we seek out info that proves us right
solution to overconfidence bias
solicit disconfirming evidence
conformity pressure
we conform to opinions supported by majority or an authority figure
solution to conformity and anchoring
private data collection
anchoring
we make insufficient adjustments away from initial estimate, opinion, or idea
availability bias
info that is easier to recall is outweighed in decision process
loss aversion
losses loom larger than gains
solution to loss aversion
flip the frame ("what do we stand to lose")
overconfidence bias
more confident in things we're less familiar with
solution to overconfidence bias
get people close to the info to make decision
sunk cost fallacy
outcomes should match level of investment
escalation of commitment
investing more resources in hopes of overturning initial failure
solution to escalation of commitment
establish concrete criteria for success, use 3rd party enforcer
representativeness bias
when relying on representativeness, judge wrongly b/c the fact something is more representative does not actually make it more likely
nudges
choice that alters people's behavior in predictable ways without changing incentives
NUDGES
iNcentives, Understand mappings, Defaults, Give feedback, Expect error, Structure complex choices
trouble with mental time travel
sol: ask someone who has recently experienced what you want rather than imagining
hedonic adaptation
humans good at getting used to changes in our lives (positive and negative)
career search sequence
vision -> strategy -> tactics
meaningful career
fit between reqs of work role and individual's beliefs values and behaviors
job design
top down, designed by managers, one size fits all
job crafting
bottom up, crafted by employees, everyone is unique
job design + job crafting
actual job
procedural: framing and anchoring
gain vs loss, set starting value
procedural: voting strategies
choosing public/private voting
procedural: coalition building
learn others' views and levels of commitment to target the people on the fringe/undecided/indifferent
procedural: frame the message
happy audience thinks less critically, leverage availability bias
interpersonal: social proof
show similar people are doing what you are asking
interpersonal: reciprocity
people try to repay in kind what another has provided; give info and reject gifts
interpersonal: consistency
people are willing to say yes to a request that is more consistent with what they have already said or done, foot in the door
interpersonal: authority
people obey authorities in mindless fashion
milgram experiment
people stop resisting and give up control when responding to authority figure
interpersonal: liking
people prefer to comply with requests of people they know and like
interpersonal: scarcity
people value items more as they become less available
distributive negotionas
involved single issue, zero-sum structure
negotiation prep
want yours and others: target price, reservation price, BATNA
BATNA
best alternative to a negotiated agreement
first offer
use anchoring and offer rationale
response to first offer
never immediately accept, determine your offer before exposure to first offer
concessions
should be bi-lateral
Note 
Flashcard (58)