TBUS 300 Managing People Midterm Practice

Evidence-Based Management

Management that emphasizes the use of evidence from multiple sources to inform decision making.

Organizational Behavior (OB)

The study of human behavior in organizational settings and the interface between human behavior and the organization.

Correlation

a statistical measure that indicates the extent to which two variables fluctuate together, showing how strongly they are related.

Causation

The action of causing something; implies that one event is a result of the occurrence of another event.

Case Studies

In-depth descriptions of a single company or industry, useful for detailed insights but difficult to generalize.

Surveys

Research tools that gather information from individuals by asking questions.

Field Studies

Research conducted in real-world settings rather than in controlled environments. (can involve experimental design of treatment and controlled group)

Laboratory Studies

Research conducted in controlled settings, often using treatment and control groups to understand causal relationships.

Machine Learning

A method of data analysis that automates analytical model building, allowing computers to learn from data. Where ai systems learn from data and improve their performance over time without explicit programming.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Validity

The extent to which a concept, conclusion or measurement is well-founded and corresponds accurately to the real world. Does the measure actually capture what it intends to measure?

Cultural Impact on Behavior

How the cultural environment influences individual and group behaviors within an organization.

Variable Relationships

The connections or interdependencies between different factors that influence outcomes in organizational settings.

Treatment Group vs. Control Group

In experimental research, a treatment group receives the intervention or manipulation being studied, while a control group does not, serving as a baseline for comparison to determine causal relationships.

Rational Conflict

Who is Doing What

• personal

• demands

• expectations

• dysfunctional

Task Conflict

What is being done

• Content

• goals

• functional

• constructive

Conflict Management

Strategies used to handle and resolve conflicts.

Conflict

A process that involves people disagreeing.

IntRApersonal Conflict

Conflict that occurs within a person due to uncertainty about a task or inadequacy.

IntERpersonal Conflict

Conflict that occurs between two individuals.

IntRAgroup Conflict

Conflict that takes place among members of a group.

IntERgroup Conflict

Conflict that occurs among different groups, such as management vs. employees.

Cognitive Dissonance

(Intrapersonal conflict)

State of conflict between personal attitudes, beliefs, and/or behaviors.

Is Conflict always bad?

Moderate Conflict: A healthy part of organizational life that can improve performance.

Lack of conflict: Indicates that people do not care

Task conflict is good in early stages

Relationship conflict is rarely good

What care about conflict?

good conflict can lead to

• Better team performance

• Well-being & Satisfaction

• Team growth

• creativity & better decisions

• diverse ideas

• increased participation

What causes of Conflict

• Organizational structure

• limited resources

• Task interdependence

• incompatible goals

• personality differences

• communication problems

Ways to manage conflict

• Change the structure

• change the composition of the team

• create a common opposing force

• consider majority rules

• problem solve 

• consider the role of mood

Conflict handling Styles

• Accommodation

• Avoidance

• compromise

• collaboration

• Competition

Compromise

A conflict handling style where both parties reach a middle ground.

Collaboration

A conflict handling style that focuses on assertive and cooperative solutions.

Avoidance

A conflict handling style characterized by uncooperative and unassertive behavior. denying existence of conflict postponing decisions

Accomodation

A conflict style where one party gives in to the other.

Competition

A conflict style where one party pursues its own goals at the expense of others. Can lead to poor relationships

Ways to promote conflict

Psychological safety: encourages people to disagree without fear or reprisal

Devil Advocacy

Heathy competitions to stimulate ideas.

Negotiation Process

1. Investigation – consider goals, outcomes, what you will

and will not concede

2. BATNA – “Best Alternative to Negotiated Agreement”

3. Presentation – pitch it! Expect the other side will have a

different version of reality.

4. Bargaining – explore each party’s constraints for optimal

outcome; get comfortable with silence

5. Closure – agree or walk away

Distributive Approach  (negotiation structures)

A traditional negotiation strategy that sees the situation as a fixed pie to divide.

Integrative Approach (negotiation structures)

A negotiation strategy where both parties seek to maximize joint gains.

“Fixed Pie” Bias in Negotiation

• It is a common assumption that one’s interests in a

negotiation directly conflict with other party’s interests.

● Creates a tendency to focus on “value claiming” and

neglect “value creation”

○ Distributive Issues: Assume ALL issues are distributive.

○ Integrative issues: Don’t even look for creative, value-creating options

Pareto Optimal Outcome

An outcome where no one can be made better off without making someone worse off. With a trade formula/ line. ( optimal trading from econ)

Justifications

Rational reasons provided to support requests in negotiations. The presence of a justification can be more powerful than the quality of the justification.

Third Party Negotiations

Involvement of a neutral third party to help resolve disputes.

Mediation/ mediator

A process where a mediator (third party) helps parties reach an agreement. Mediators can facilitate conversations, make suggestions and recommendations

Arbitration

A process where a neutral third party makes a binding decision. Last resort in dispute resolution of mediator doesn’t work.

Cultural Conflict

Differences in how various cultures understand and handle conflict.

Team Productivity Formula

Actual Productivity= Potential Productivity + Synergistic gains - Process Losses

Actual Productivity

The real output of a team based on current functioning and performance.

Potential Productivity

The maximum possible output that a team is capable of achieving given the right conditions.

Synergistic Gains

Additional productivity benefits that occur when team members work together. how well people work together.

Process Loss

loss of productivity due to factors like conflict, miscommunication, or lack of resources.

Motivation Losses

Loss in team productivity that occurs when team members do

not work as hard as they could. “social loafing” “Free riding”

How to reduce motivation loss

• raise accountability

• Help team members understand how their effort contributes to the overall goal

• Emphasize the valuable contributions of each team member

• Ensure team members engage in work that they enjoy doing, are good at, or want to improve on

• Establish group cohesion and trust

Ability Losses

Performance reductions that occur when team members are not put in their positions of expertise. Tasks don’t match skill set.

How to reduce ability losses

• Put people in their positions of expertise

• Build in time to rehearse so that people can build expertise in the things they need to be expert in

• Formal training

• Avoid distractions

Coordination Losses

Inefficiencies that arise from managing team processes rather than focusing on task performance. (disjointed final products, bottleneck (waiting for others), miscommunications)

Reduce Coordination Loss

• Plan - don’t hit the ground running

• Create a common language, vision, and goal

• Determine procedures, roles, and coordination processes

• Make communication channels formal and clear

• Assign a “coordinator” role?

• Have agendas for each meeting

Groupthink

The tendency for highly cohesive groups to prioritize consensus over critical evaluation of ideas, often leading to poor decision-making.

Normative/ reputational influence

conforming for fear of being ostracized or ridiculed → conformity although you disagree

Informational influence

believing that the group has more information and is indeed correct → conformity by actually changing your opinion

Overcoming Groupthink

• Have the leader play an impartial role

● Actively seek dissenting views. Have members play the role of

devil’s advocate

● Actively discuss & assess the costs, benefits and risks of diverse

alternatives

● Ensure an open climate & solicit input from informed outsiders and

experts

● Allow time for reflection & do not mistake silence for consent

Informal Group

are made up of two or more individuals who are associated with one another in ways not prescribed by the formal organization

Formal work group

made up of managers, subordinates, or both with close associations that influence behavior of individuals within the group.

Stages of Group Development

Forming- Storming- Norming- Performing- Adjourning

Forming

People are getting to know each other, discovering how the group will work together. Group comes together for the first time and is optimistic about the task. 

Storming

• Shed of social facades

• Group members explore their own power & influence

• discussions can be heated, and members become defensive & competitive

How to avoid betting stuck in “ Storming”

• normalize conflict

• be inclusive

• make sure everyone is heard

• support group members

• remain positive

• don’t rush group development

Norming

• Ground roles are established

• defined operating procedures and goals

• group members are committed to each other an a goal

• group makes big decisions and subgroups make smaller decisions

Performing

• Given the new formal rules and informal structures, group

members are getting work done and working efficiently.

● Group is more committed, competent, and autonomous.

group vs Teams

• Group: a collection of individuals

• A team is a particular group: a cohesive coalition of people working together to achieve mutual goals. A smaller number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

Team Tasks

Production tasks: actually making something

Idea-generations tasks: creative brainstorming

problem-solving tasks: specific solutions and decisions

Task interdependence

refers to the degree that team members are dependent on one another to get information, support, or materials from other members

pooled interdependence

exists when team members may work independently

and simply combine their efforts to create the team’s output

sequential interdependence

occurs if one person’s output becomes another

person’s input

reciprocal interdependence

occurs when members work together on each

stage of a task

outcome interdependence

exists when the rewards an individual receives

depend on the performance of others

Barriers to effective Teams

• Challenges to knowing where to begin

• dominating team members

• poor performance of some members

• poorly managed team conflict

• lack of communication 7 coordination

For Successful teamwork

• make time to get to know each other in teams to understand what people bring to the table.

• Assign specific roles.

• Assign individual interests with group interests (common compelling vision,

• rewarding group success)

• Take time to reflect frequently on team process.

• Be careful not to (consciously or subconsciously) crush dissent.

Bounded Rationality

A concept that suggests people have limits on their rational decision-making due to incomplete knowledge and information.

Making “good enough” decisions

Knowingly limiting options and choose first acceptable alternative

Satisficing: Accepting the first alternative that meets minimum criteria instead of pursuing the optimal choice.

Intuitive Decision Making

Making decisions based on instinct or prior experience without conscious reasoning. (scanning environment for cues to recognize patterns)

Availability Bias

The tendency to judge events as more likely based on how easily they come to mind. How easy it is to recall to memory.

Anchoring and Adjustment

Relying too heavily on initial information when making decisions. (like selling or buying a car)

Confirmation Bias

The tendency to seek out and prioritize information that confirms existing beliefs.

Attitude Polarization

Strengthening of existing beliefs due to confirmation bias.

How to avoid confirmation bias

• Seek the truth

• seek out disagreement, alternative view points & opinions

Escalation of Commitment

Continuing a failing course of action due to a sense of commitment.

Fundamental Attribution Error

Overemphasizing personal characteristics and underemphasizing situational factors when evaluating others.

Hindsight Bias

Seeing outcomes as more likely or obvious after they have occurred.

Narrow Framing

Defining options too narrowly, leading to limited alternatives.

Survivorship Bias

Focusing on successful outcomes while ignoring those that did not succeed.

Optimism Bias

Overestimating the likelihood of positive events while underestimating negatives.

Expected Utility

A decision theory concept that evaluates options based on their expected outcomes.

Risk Aversion

The tendency to prefer certain outcomes over uncertain ones with higher expected values. (paying $26 for a $50 giftcard) ($16 for a change to get a $50 or $100 gift card)

Peer Review

A feedback mechanism that involves critically evaluating each other's work.

Counteracting Bias

• begin with awareness

• widen opinions

• question others assumptions

• data driven systems

• devils advocate (seek disagreement)

Five Steps to creative decision making

1. Problem recognition

2. Immersion (deep mental involvement)

3. incubation ( stepping away from a problem and letting your subconscious brain work on it, leading to unexpected insights)

4. illumination (Problem’s solution becomes clear, light bulb moment)

5. verification & application

Well-being

Psychological, physical, happiness, satisfaction

Stress

The body’s response to an environmental demand that requires adjustment or response.

Hindrance Stressors

Stress caused by factors that detract from goals and hinder personal growth.

Challenge Stressors

Demands and circumstances that cause stress but promote individual growth.

General Adaptation Syndrome (GAS)

A model describing the physiological response to stress involving alarm, resistance, and Exhaustion (potential burnout).