Exam 3 OB

Purpose of Lost at Sea exercise

Purpose of Lost at Sea exercise

Compare decisions made by individuals with decisions made by teams

Consensus Decision Making

The decision is acceptable to all group members

Achievement Motive

Concern for making the most effective decision

Power Motive

Concern for getting one's own point of view accepted

The Power Motive leads to...

the Process of Division

The Achievement Motive leads to...

the Process of Consensus

Advocacy

stating one's views

Inquiry

asking questions

Factors that harm consensus building

o Domination
o Withdrawal
o Quick decision making
o Avoiding confrontation

Factors that facilitate consensus building

o Concern for others
o Listening
o Discussing reasoning and logic
o Identifying and using resources
o Checking for consensus and disagreement
o Process orientation

Synergy

The concept that the total amount of work produced by a team is greater than the amount of work produced by individual members working independently

Raising the White Flag Behaviors

· Behaviors that involve team members giving up and withholding effort. Term comes from a white flag being recognized as a symbol of surrender in war. Include social loafing (free-riding), self-censorship, and the Abilene Paradox.

Social loafing (also called free-riding)

a phenomenon wherein people put forth less effort when they work in teams than when they work alone

Self-censorship

when team members don't speak up due to concerns about upsetting others or about others viewing what they have to say negatively

Abilene Paradox

Team members agree to a course of action that none of them wants, because each member assumes that the others want it

Groupthink

a psychological phenomenon in which members of a cohesive group go along with the group consensus rather than offering their own opinions

Psychological safety

the shared belief held by team members about whether it is safe enough to trust each other well enough to take risks

Psychological safety can...

reduce self-censorship

Teams

engage in interdependent, collaborative, and cooperative work on a common project or shared goal

Group

members work more independently

Programmed Decisions

automatic responses to routine and recurring situations

Non-Programmed Decisions

responses to new or non-routine problems with no proven solutions

Complete Rationality

We consider and evaluate every single option on every single criterion

Bounded Rationality

We are restricted by a variety of constraints when making a decision. We instead apply a limited number of criteria (select benchmarks) and then evaluate a smaller subset of options meeting those key benchmarks

Maximizing

Aiming to make the best decision

Satisficing

Aiming to make an acceptable decision

Maximizers are...

unhappier with outcomes

Heuristics

shortcuts or "rules of thumb" that allow us to make judgments and decisions quickly and efficiently

Anchoring and adjustment heuristic

a process whereby people base their decision on the first piece of information they are given without taking other numbers and probabilities into account. EX: original vs sales price

Representativeness Heuristic

a shortcut that bases a decision on our existing mental prototype and similar stereotypes.

Availability Heuristic

a rule of thumb for making judgments on examples and events that immediately spring to mind. EX: being scared of tragic deaths because they're more vivid.

Framing effect

How we portray something or what aspects we highlight affect how something is perceived. Two logically-equivalent alternatives portrayed differently can be perceived differently. EX: 80% fat free or 20% fat.

Sunk cost bias

the decision to continue an unwise investment based on past investments of time, effort, and/or money

Escalation of commitment

the increased commitment we may make to a decision despite receiving negative information about the consequences

Creativity

The generation of meaningful ideas by individuals and teams

Innovation

The creation or development of a new product or service

Shannon-Weaver Communication Model

Source --> Encoder --> Noise (interference with message during transmission) --> Decoder --> Receiver --> Feedback

Oral communication

the exchange of information, ideas, and processes verbally, either one-on-one or as a group

Written communication

the use of the written word in the form of reports, memos, and letters to communicate messages

Electronic communication

the transmission of messages through various types of electronic media

Nonverbal communication

the transmission of wordless cues between people. EX: gestures, facial expressions

Elevator speech (elevator pitch)

a short (30 seconds) speech that pitches an idea or concept, such as why a prospective employer should hire you. It's called an elevator speech because it lasts about as long as an elevator ride