Final Exam Org Behavior Prep

Organizational Behavior (OB)

A field of study focused on understanding, explaining, and improving the attitudes and behaviors of individuals and groups in organizations, which allows managers to analyze workplace issues and apply solutions such as improving communication or increasing motivation to boost performance

Who is OB relevant for

Organizational behavior applies to anyone operating within a workplace environment because it provides insight into how individuals and groups function, allowing people to better navigate interactions, improve performance, and understand outcomes in organizational settings

Diversity

The presence of differences within a given setting, including characteristics such as race, gender, age, culture, and background, which can improve creativity and decision-making when effectively managed

Inclusion

The extent to which an organization actively engages, values, and supports individuals across differences so that employees feel respected and able to contribute, such as ensuring all voices are heard in meetings

Deep-Level Diversity

Differences in values, beliefs, personality, and attitudes that are not immediately visible but significantly influence behavior over time, such as differences in work ethic or political views shaping team conflict

Surface-Level Diversity

Observable characteristics like age, gender, and physical traits that are immediately noticeable and can initially shape perceptions before deeper traits are understood

Personality

A stable and unique pattern of traits, characteristics, and behaviors that define how an individual consistently interacts with others and approaches situations, such as someone being consistently outgoing or detail-oriented

Nature vs. Nurture Debate

The idea that personality is shaped by both genetic inheritance and environmental influences, where approximately 40 percent of traits come from biological factors like temperament while about 60 percent are shaped by experiences, culture, and upbringing, meaning a person may be naturally introverted but develop strong communication skills through social environments

Dark Traits (Dark Triad)

A group of negative personality traits that can harm organizations and relationships because they prioritize self-interest over others

Narcissism

A trait characterized by excessive self-importance and a need for admiration, often leading individuals to take credit for team success and ignore others’ contributions

Psychopathy

A lack of empathy and remorse combined with impulsive behavior, which can result in unethical decision-making without concern for consequences

Machiavellianism

A manipulative and opportunistic approach to achieving goals, where individuals strategically exploit others to gain power or success

Self-Serving Bias

The tendency to attribute personal successes to internal factors like ability or effort while blaming failures on external factors such as bad luck or unfair conditions, which can prevent individuals from accurately evaluating their performance

Fundamental Attribution Error

The tendency to overestimate internal characteristics like personality when judging others’ behavior while underestimating external situational factors, such as assuming a coworker is lazy rather than recognizing they may be overwhelmed

Self-Fulfilling Prophecy

A process in which an individual’s expectations about another person lead them to behave in ways that cause those expectations to become reality, such as a manager believing an employee will perform poorly and therefore providing less support, which ultimately results in the employee underperforming

Emotional Contagion

The process by which emotions spread from one person to others in a group, meaning one individual’s negative attitude can lower team morale while positive energy can enhance performance

Surface Acting

The act of faking or suppressing true emotions to display what is expected in a situation, such as smiling at customers despite feeling frustrated

Display Rules

Socially accepted norms that dictate which emotions should be expressed or hidden in specific situations, such as maintaining professionalism in a workplace setting

Eustress

A positive form of stress that motivates individuals and enhances performance, such as feeling energized before an important presentation

Distress

A negative form of stress that overwhelms individuals and reduces performance, often leading to burnout or anxiety

Challenge Stressors

Stressors that promote personal growth and achievement because they push individuals to perform at a higher level, such as increased responsibility or tight deadlines

Hindrance Stressors

Stressors that create obstacles to performance and prevent growth, such as unclear expectations, office politics, or excessive bureaucracy

Hierarchy of Needs

A theory developed by Abraham Maslow stating that individuals are motivated by progressing through levels of needs from basic physiological and safety needs to higher-order needs like esteem and self-actualization, meaning employees are more motivated by growth and fulfillment once basic needs are met

Needs Theory

A theory developed by David McClelland stating that individuals are motivated by three learned needs including achievement, power, and affiliation, which explains why some employees seek leadership roles while others value relationships

Equity Theory

A theory developed by John Stacey Adams stating that individuals are motivated by their perception of fairness in the ratio of their inputs and outcomes compared to others, meaning employees who feel under-rewarded may reduce effort or seek change

Goldilocks Rule

The principle that goals should be set at a moderate level of difficulty, not too easy and not too hard, because goals that are challenging yet attainable lead to the highest levels of motivation and performance

Money as a Motivator

Financial rewards can influence behavior by satisfying basic needs and encouraging performance in the short term, but their impact tends to weaken over time as individuals place greater importance on factors like growth, recognition, and meaningful work

Intrinsic Motivation

The drive to perform tasks for internal satisfaction, enjoyment, or personal fulfillment, such as learning a new skill because it is interesting

Extrinsic Motivation

The drive to perform tasks in order to receive external rewards or avoid negative outcomes, such as working hard to earn a bonus or avoid punishment

Social Loafing

The tendency for individuals to exert less effort when working in a group compared to working alone because responsibility is shared among members

Groupthink

A phenomenon where the desire for harmony and agreement within a group leads to poor decision-making because members avoid conflict and critical evaluation

Psychological Safety

A shared belief among team members that they can express ideas, ask questions, and admit mistakes without fear of negative consequences, which leads to better communication and innovation

Decision-Making in Teams

Teams make decisions by combining diverse perspectives, sharing information, and working toward consensus, which can lead to better outcomes but may also take more time and risk groupthink

Complete Rationality

A decision-making model that assumes individuals have access to all information and can evaluate every possible alternative logically to make the optimal choice

Bounded Rationality

A realistic decision-making approach where individuals are limited by time, information, and cognitive ability, leading them to choose satisfactory rather than optimal solutions

Programmed Decisions

Routine decisions made using established rules or procedures for recurring situations, such as approving standard requests

Creativity

The process of generating new, useful, and meaningful ideas that can improve problem-solving and innovation

Innovation

The process of implementing creative ideas into practical applications such as new products, services, or processes

Channel Richness

The ability of a communication channel to effectively convey information and meaning, with richer channels like face-to-face communication allowing for immediate feedback and nonverbal cues

Lateral Communication

Communication that occurs between individuals at the same level of an organization, which helps coordinate tasks and improve collaboration

Noise

Any interference that disrupts or distorts communication, such as distractions, misunderstandings, or language barriers

Formal Networks

Official communication channels established by an organization’s hierarchy, used to transmit structured and approved information

Informal Networks

Unofficial communication pathways such as the grapevine, which spread information quickly but may be inaccurate

Low-Context Culture

A culture where communication is direct, explicit, and relies on clear verbal messages, such as in the United States where people tend to say exactly what they mean

High-Context Culture

A culture where communication relies heavily on context, nonverbal cues, and implicit understanding, such as in Japan where meaning is often derived from tone and situation rather than direct words

Task Conflict

Disagreements between individuals about the content, direction, or goals of work, which can be productive if managed properly

Relationship Conflict

Personal disagreements based on emotions or personality differences that typically harm team performance

Process Conflict

Disagreements about how work should be carried out, including roles, responsibilities, and methods

Manager

An individual responsible for planning, organizing, leading, and controlling resources to achieve organizational goals

Leader

An individual who influences and guides others toward achieving a common goal through motivation and direction

Laissez-Faire Leadership

A hands-off leadership style where leaders provide minimal guidance and allow employees to make decisions independently, which can work well with highly skilled teams but lead to confusion otherwise

Transformational Leadership

A leadership style that inspires and motivates followers to exceed expectations by focusing on a shared vision and personal growth, such as a leader encouraging innovation and commitment to organizational goals

Transactional Leadership

A leadership style based on exchanges between leader and follower, where rewards are given for performance and punishments for failure, such as offering bonuses for meeting targets

Visionary Leadership

A leadership style focused on creating and communicating a clear long-term vision that guides the organization’s direction and inspires employees to work toward future goals

Reward Power

The ability to influence others by providing rewards such as bonuses, promotions, or recognition

Coercive Power

The ability to influence others through fear of punishment or negative consequences

Expert Power

Influence based on knowledge, skills, or expertise that others value and rely on

Legitimate Power

Authority derived from a formal position within an organization that gives the right to make decisions

Referent Power

Influence based on admiration, respect, or identification with a leader, often seen in charismatic individuals

Observable Culture Components (Artifacts)

The visible and tangible elements of an organization’s culture such as symbols, stories, rituals, ceremonies, and language, which provide insight into the organization’s values, for example a company’s dress code or office layout reflecting its level of formality

Unobservable Culture Components

The underlying values, beliefs, assumptions, and norms that guide employee behavior and decision-making but are not directly visible, such as a company’s emphasis on teamwork or innovation shaping how employees act

Culture in Mergers & Acquisitions

When organizations combine, differences in underlying values, expectations, and ways of operating can create friction that affects collaboration and performance, especially if those differences are not recognized and managed effectively during the integration process

Role of Culture

Culture acts as an underlying system that shapes how individuals interpret situations, interact with others, and make decisions, often guiding behavior in ways that are not immediately visible but strongly influence overall performance and consistency within an organization.

Internal Forces

Forces for change that originate within the organization such as new management, restructuring, or internal innovation efforts

External Forces

Forces for change that come from outside the organization such as technological advancements, market competition, or social trends

Intrapreneurship

The practice of employees acting like entrepreneurs within an organization by developing new ideas, products, or processes that drive innovation

Organizational Restructuring

The process of changing an organization’s structure, roles, or operations to improve efficiency and adapt to new conditions