MGMT 3

confirmation bias

the tendency to seek and rely on information that will confirm what we already believe, and to avoid data that will contradict our pre-existing views

• “we see what we want to see”

escalation of commitment

tendency for people to escalate commitment to a course of action in which they have made substantial prior investments of time, money, or other resources

anchoring effect

tendency to rely too heavily on the first piece of information offered.

• initial data or reference points have too much influence on the final estimates or choices that we make

framing bias

tendency to react to a particular choice based on how it is presented.

• people make different choices depending on whether a situation is framed positively (i.e., as a gain) or negatively (i.e., as a loss)

  — positive frames make people risk averse (status quo)

  — negative frames make people risk seeking (seek change)

stereotypes (cognitive biases)

an individual assigns attributes to another solely on the basis of other’s membership in a particular social or demographic group

projection (cognitive biases)

people ascribe to others the characteristics that they possess themselves

availability of information (cognitive biases)

operates when information that is presented in vivid or attention-getting ways becomes easy to recall

fundamental attribution error

people often explain another person’s behavior by making attributions, either to the person or to the situation.

• overestimate the role of personal or internal factors

• underestimate the rate of situational or external factors

shared values

• conscious beliefs

• evaluate what is good or bad, right or wrong

shared assumptions

unconscious, taken-for-granted beliefs

innovation and risk taking

degree organization is flexible, adaptable, and experiments with new ideas

attention to detail

degree to which employees are expected to exhibit precision / analysis

outcome orientation

degree management focuses on results and achievement of goals

people orientation

degree organizations values fairness, supportiveness, and respecting individual rights

team orientation

degree organization emphasizes cooperation and collaboration among employees

aggressiveness

degree to which people in the organization encouraged to be competitive with others inside and outside of the organization

corporate egoist culture

short-term profit maximization

instrumentalist culture

strategic morality since it benefits organizations financially

moralist culture

have a concern for all stakeholders and adhere to ethical principles regardless of economic temptations to discard them

charisma

set high ideals, values, and ethical standards

inspirational motivation

articulate a compelling vision

intellectual stimulation

promote creativity, innovation, and empowerment

individual consideration

focus on needs of each follower

active resistance

sabotage or object to change effort (stressed, angry, upset)

passive resistance

disturbed by change, but don’t voice displeasure (despair, sadness, helplessness)

compliance

going along with proposed change, but with little enthusiasm (calm, relaxed, content)

enthusiastic support

defenders of the change and encourages others around them to support the change (excited, elated)

collectivism

focus on group harmony and collective goals

individualism

emphasis on personal goals and individual rights

power dimensions

the degree to which less powerful members of a society accept unequal power distribution

high power distance culture

hierarchies are respected; leaders are authoritative

low power distance culture

power is decentralized; leaders are more democratic

intrapersonal conflict

conflict that occurs within an individual

EX] we want an ice cream cone badly, but we know that ice cream is very fattening

interpersonal conflict

conflict is between individual people

EX] conflict between bosses and subordinates, spouses, siblings, roommates…

intragroup conflict

within group negotiation

EX] among team and committee members and within families, classes, etc

intergroup conflict

conflict can occur within groups and among groups simultaneously

EX] conflict between unions and management, community action groups and government authorities

contending (competing)

actors pursue own outcome strongly, show little concern for other party obtaining their desired outcomes

yielding (accommodating)

actors show little interest in whether they attain own outcomes, are quite interested in whether the other party attains their outcomes

inaction (avoidance)

actors show little interest in whether they attain own outcomes, little concern about whether the other party obtains their outcomes

problem solving (collaborate)

actors show high concern in obtaining own outcomes, as well as high concern for the other party obtaining their outcomes

compromising

actors show moderate concern in obtaining own outcomes, as well as moderate concern for the other party obtaining their outcomes

autonomy

the degree to which the firm / management encourages independent action by a team or individual

competitive aggressiveness

the degree to which a firm intensely and directly challenges its competitors in order to outperform rivals in the marketplace

innovativeness

the degree to which a firm / management supports or encourages new ideas, creativity, and experimentation

proactiveness

the degree to which the firm / management anticipates and acts on future needs

risk taking

the degree to which a firm / management prefers bold versus cautious actions in order to achieve firm objectives

scalable start-up

A business designed to grow rapidly and expand, often seeking venture capital to disrupt a market and reach a global scale.

small business

An independently owned and operated company focused on serving a local or niche market, prioritizing steady income over rapid growth

established organization

a mature company that innovates internally or externally to stay competitive, often using entrepreneurial thinking to adapt or grow.

social enterprise

a mission-driven organization that uses business methods to address social or environmental issues while maintaining financial sustainability.

situation

Define the current situation or problem

outcome

Identify the desired outcome or goal.

alternatives

List possible alternatives or solutions.

rollout (i.e., next steps)

Plan the execution or implementation of the chosen alternative.