CSU management 305 exam 3

Motivation

The psychological process the arouse and direct goal-directed behavior.

Extrinsic rewards

Payoff a person receives from others for performing a particular task

Intrinsic rewards

Satisfaction a person receives from performing the particular task itself

4 major perspectives on motivation

Content

Process

Job Design

Reinforcement

Content perspectives

Theories that emphasize the needs that motivate people

Content theorists ask, "What kind of needs motivate employees in the workplace?"

McClelland's Acquired Needs Theory

1. Achievement - desire to achieve excellence in challenging tasks

2. Affiliation - desire for friendly and warm relationships

3. Power - desire to influence or control others

Self determination theory

- Assumes people are driven to try to grow and attain fulfillment, with their behavior and well-being influenced by three innate needs: competence, autonomy, and relatedness

- Focuses primarily on intrinsic motivation and rewards

Competence

People need to feel qualified, knowledgeable, and capable of completing a goal or task and to learn different skills.

Autonomy

People need to feel they have the freedom and the discretion to determine what they want to do and how they want to do it.

Relatedness

People need to feel a sense of belonging, of attachment to others.

Herzberg's Two-Factor Theory

Proposed that work satisfaction and dissatisfaction arise from two different factors—work satisfaction from motivating factors and work dissatisfaction from hygiene factors

Process perspectives

- Concerned with the thought processes by which people decide how to act

- How employees choose behavior to meet their needs

Equity / Justice Theory

a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships

Elements of Justice theory

Distributive justice

- "How fairly are rewards being given out?"

• Procedural justice

- "How fair is the process for handing out rewards?"

• Interactional justice

- "How fairly am I being treated when rewards are given out?"

Expectancy theory

Suggests that people are motivated by two things:

1. How much they want something and

2. How likely they think they are to get it

Goal-setting theory

Suggests that employees can be motivated by goals that are specific and challenging but achievable

Four motivational mechanisms

1. Directs your attention

2. Regulates the effort expended

3. Increases your persistence

4. Fosters use of strategic and action plans

Job Design

- Division of an organization's work among its employees

- The application of motivational theories to jobs to increase satisfaction and performance

- two techniques- scientific management, enlargement.

Reinforcement theory

- Suggests that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated

- Pioneered by B.F. Skinner (operant conditioning) and Edward Thorndike (law of effect)

- Use of reinforcement theory to change human behavior is called behavior modification

Positive reinforcement

Use of positive consequences to strengthen a particular behavior

Negative reinforcement

Strengthening a behavior by with drawing something negative

Extinction

Weakening behavior by ignoring it or making sure it is not reinforced

Punishment

Weakening behavior by presenting something negative or withdrawing something positive

Meaningfulness

The sense of belonging to and serving something that you believe is bigger than yourself.

ex/ Identify activities you love doing, going out and helping someone

Decision making

Process of identifying and choosing alternative courses of action.

- Can be made rationally, but often it is nonrational • System 1: intuitive and largely unconscious

• System 2: analytical and conscious

Rational model of decision making

Process of identifying and choosing alternative courses of action.

- Can be made rationally, but often it is nonrational • System 1: intuitive and largely unconscious

• System 2: analytical and conscious

Non rational models of decision making

Assumes that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions.

- Two types are discussed: satisficing and intuition

Bounded rationality

Suggests that the ability of decision makers to be rational is limited by numerous constraints (Complexity, time and money, cognitive capacity)

- Developed by Herbert Simon in the 1950's

Satisficing model

Because of constraints, managers don't make Saan exhaustive search for the best alternative.

- Instead, managers seek alternatives until they find one that is satisfactory, not optimal.

Intuition

is making a choice without the use of conscious thought or logical inference.

Expertise

a person's explicit and tacit knowledge about a person, a situation, an object, or a decision opportunity— is known as a holistic hunch.

Automated experience

The involuntary emotional response to those same matters

Evidence-based management

The translation of principles based on best evidence into organizational practice.

- Brings rationality to the decision-making process

Business analytics

Sophisticated forms of business data analysis

- Examples: portfolio analysis, time-series forecast

Predictive modeling

A data-mining technique used to predict future behavior and anticipate the consequences of change.

Big data

Includes not only data in corporate databases but also web-browsing data trails, social network communications, sensor data, and surveillance data

Big data analytics

The process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information

Decision-making style

Reflects the combination of how an individual perceives and responds to information

Value orientation

Reflects the extent to which a person focuses on either task and technical concerns or on people and social concerns when making decisions

Tolerance for ambiguity

Indicates the extent to which a person has a high need for structure or control in his or her life

Relaxed avoidance

aking no action in the belief that there will be no great negative consequences (Ineffective reactions)

Relaxed change

realizing complete inaction will have negative consequences but opts for the first available alternative. (Ineffective reactions)

Defensive avoidance

can't find a good solution and follows by (a) procrastinating, (b) passing the buck, or (c) denying the risk. (Ineffective reactions)

Panic

so frantic to get rid of the problem that one can't deal with the situation realistically. (Ineffective reactions)

Three Effective Reactions: Deciding

Importance- How high priority is this situation?

Credibility- How believable is the information about the situation?

Urgency- How quickly must I act on the information about the situation?

Nine Common Decision-Making Biases

1. The availability bias

2. The representativeness bias

3. The confirmation bias

4. The sunk-cost bias

5. The anchoring and adjustment bias

6. The overconfidence bias

7. The hindsight bias

8. The framing bias

9. The escalation of commitment bias

Consensus

Occurs when members are able to express their opinions and reach agreement to support the final decision.

Brainstorming

Technique used to help groups generate multiple ideas and alternatives for solving problems.

The Delphi technique

A group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas

- The judgments are combined and in effect averaged to achieve a consensus of expert opinion

Decision support system

A computer-based information system that provides a flexible tool for analysis and helps managers focus on the future

- Produces collected information known as business intelligence

Planning

- setting goals and deciding how to achieve them.

- coping with uncertainty by formulating future courses of action to achieve specified results

Business plan

A document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success

Business model

Outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses

Strategy or strategic plan

A large-scale action plan that sets the long-term goals and direction for an organization

- Represents an "educated guess" about what must be done in the long term.

Strategic management

A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

Strategy innovation

The ability to reinvent the basis of competition within existing industries—"bold new business models that put incumbents on the defensive"

competitive advantage

The ability of an organization to produce goods or services more effectively than its competitors do, thereby outperforming them

Sustainable competitive advantage

Occurs when an organization is able to get and stay ahead

in four areas:

1. In being responsive to customers

2. In innovating

3. In quality

4. In effectiveness

VRIO

is a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its Value, Rarity, Imitability, and Organization

Mission Statement

Expresses the purpose of the organization

Value statement

What the company stands for: its core priorities, the values its employees embody, and what its products contribute to the world

Vision statement

It is a clear sense of the future and the actions needed to get there.

- What do we want to become?

Strategic planning (1-5 years)

Make long term decisions about overall direction

Tactical planning (6-24 months)

Implement policies and plans of top management, supervise and coordinate activities of first line managers below.

Operational planning (1-52 weeks)

Direct daily tasks of non managerial personnel

Operating plan

- A plan that breaks long-term output into short-term targets or goals

- Turns strategic plans into actionable short-term goals and action plans

Action plan

- Defines the course of action (the tactics) needed to achieve a stated goal

-Contains a projected date for completing the desired activities for each tactic

Three Types of Objectives Used in MBO

Improvement, personal development, Maintenance

Improvement objectives

Purpose: Express performance to be accomplished in a specific way for a specific area

• Examples: "Increase sport utility sales by 10%;" "Reduce food spoilage by 15%"

Personal development objectives

Purpose: Express personal goals to be realized

• Examples: "Attend five days of leadership training;" "Learn basics of Microsoft Office software by June 1"

Maintenance objectives

Purpose: Express the intention to maintain performance at previously established levels.

• Examples: "Continue to meet the increased sales goals specified last quarter;" "Produce another 60,000 case of wine this month"