Exam 3 Review Notes
Perception
Perception is how individuals organize and interpret sensory impressions to give meaning to their environment.
It influences how people see the world and behave based on their interpretation, not objective reality.
Decision-Making Traps (Cognitive Biases)
Anchoring bias: Over-relying on the first piece of information received.
Confirmation bias: Seeking information that confirms preexisting beliefs.
Framing bias: Making different decisions based on how information is presented.
Escalation of commitment: Continuing a failing course of action due to invested resources.
Ethics vs. Morals
Ethics: Rules provided by an external source (e.g., codes of conduct).
Morals: An individual’s own principles regarding right and wrong.
Ethics are group- or profession-based, while morals are personal.
Why Good People Do Bad Things
Pressure to conform
Obedience to authority
Diffusion of responsibility
Organizational culture
Incremental unethical behavior (slippery slope)
Moral disengagement (justifying unethical actions)
Utilitarianism and Universalism
Utilitarianism: Ethical decisions should maximize overall happiness or minimize harm.
Universalism (Deontology): Certain actions are always right or wrong, regardless of consequences. Emphasizes duty and principles.
Standard Model of Problem Solving
Identify the problem
Generate alternative solutions
Evaluate and select an alternative
Implement the solution
Evaluate the outcome
NIU’s Ethical Decision-Making Guide
Recognize an ethical issue
Get the facts
Evaluate alternative actions
Make a decision and test it
Act and reflect on the outcome
Organizational Culture
Shared assumptions and history that guide behavior in organizations.
Organizational norms influencing employees’ beliefs, values, cognitions, behaviors
Strong vs. Weak Cultures: Strong cultures (widely and intensely shared) have the best impact on behavior, values, cognitions, and behavior
Levels of Culture
Physical structure
Language
Rituals & Ceremonies
Stories & Legends
Characteristics of Organizational Culture
Innovation & 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 organization 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 are encouraged to be competitive, with others inside and outside of the organization
Ethical Components of Organizational Culture
Corporate egoist culture: Short-term profit maximization
Instrumentalist culture: Strategic morality since it benefits organization financially
Moralist culture: Concern for all stakeholders and adhere to ethical principles regardless of economic temptations to discard them
Four Components of an Ethical Culture
Ethical Leadership
Supervisor Reinforcement of Ethics
Peer Commitment to Ethics
Embedded Ethical Values
Characteristics of Ethical Leaders
Respect others
Serve others
Are fair
Are honest
Act as ethical role models
Why Larger Organizations Sometimes Have Sub-Cultures?
Being a role model
Reward system
Hiring decisions
Socialization & stories, etc.
Leader and Culture influence each other!
How Leaders Shape Organizational (or Team) Culture
Selection
Management
What leaders pay attention to, measure, and control on a regular basis…
How leaders react to critical incidents…
How leaders allocate scarce resources, rewards, and status/recognition…
How leaders recruit, select, promote, retire, and remove organizational members…
Socialization
Other methods
Stories
Rituals
Symbols
Language
Components of Transformational Leadership
Charisma
Inspirational motivation
Intellectual stimulation
Individual consideration
Typical Leader, Follower, and Situational Characteristics of Charismatic Leadership
Leaders
Self-confidence
Conviction
Enthusiasm
Expressiveness
Articulate
Role model
Followers
Respect / esteem
Loyalty / devotion
Affection
High expectations
Obedience
Situation
Crisis / urgency
Perceived need for change
Ideological goal
Dramatic symbols
How to Make a More Effective and Charismatic Presentation
Start presentation with introduction that catches audience’s attention (how is it relevant to them!)
Also plan for how to finish presentation (i.e., first and last impression)
Project a powerful, confident, and dynamic presence
Be enthusiastic about your topic!!!
Communication style
Eye contact, facial expressiveness, gestures, animated voice tones, language
DON’T rely on note cards, instead practice, practice, practice
Dark Sides to Charismatic Leadership: Ethical vs. Unethical Charisma
Unrealistic expectations
Strategic vision becomes blurred and self-focused
Dependency and counter-dependency
Reluctance to voice disagreement with leader
Need for continuing “magic”
Communication manipulation
Poor management practices (hands-on, controlling, lack of attention to detail, etc.)
Ethical Charisma
Use power to serve others
Match vision to follower needs
Open to feedback
Develops followers
Encourages thinking
Unethical Charisma
Uses power for personal gain
Promotes own vision
Closed to criticism
Top-down communication
Insensitive to followers
Typical Reaction Process to Organizational Change
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 encourage others around them to support the change (excited, elated)
Why People Resist Change
Habit and personality
Fear of the unknown
Fear of personal loss (e.g., power)
Lack of understanding and truth
How to Minimize Cynicism About Change
Keep everyone informed (e.g., education)
Use two –way communication & listen to your employees
Get employee involvement in the change process
See things from the employee’s perspective
Let employees express their feeling and concerns
Enhance management credibility and trust…
Change spokespersons should be liked, trusted, expert & credible
Be positive (small wins)
Use multiple communication channels & repeat the message
Kotter’s Eight Steps to Organizational Change
Establish a sense of urgency
Build a powerful coalition
Develop a vision and strategy
Communicate the vision
Enable employees to act
Create and reward short-term wins
Consolidate gains
Institutionalize the changes
Coaching vs. Mentoring, Consulting, and Therapy
Coaching: Future-focused, performance-driven process aimed at developing specific skills or achieving goals.
Mentoring: Long-term relationship focusing on overall development.
Consulting: Providing expert advice to solve specific problems.
Therapy: Addresses psychological issues or healing past trauma.
Steps of the SOAR Model
Situation: Identify the issue or challenge
Options: Generate possible solutions
Action: Choose and implement a strategy
Reflection: Evaluate the effectiveness and learn from the outcome
Cultural Dimensions and Leadership Effectiveness
Power Distance: Acceptance of unequal power distribution
Individualism vs. Collectivism: Focus on self vs. group
Uncertainty Avoidance: Comfort with ambiguity
Masculinity vs. Femininity: Competitive vs. caring values
Long-Term vs. Short-Term Orientation: Focus on future vs. present
These impact leadership preferences, team dynamics, communication, and motivation.
Implicit Leadership Theory and the GLOBE Project
Implicit Leadership Theory suggests people have preconceived ideas about what leaders should be like.
The GLOBE project shows these expectations vary across cultures, affecting who is perceived as effective.
GLOBE Leadership Dimensions
Universally endorsed: Charismatic/Value-based, Team-oriented leadership
Culturally contingent: Self-protective, Autonomous, Participative, and Humane-Oriented leadership styles
Common Negotiation Myths
Myth: Negotiation is always adversarial – Reality: It can be collaborative.
Myth: Good negotiators are born – Reality: It’s a skill that can be learned.
Myth: You must be tough to win – Reality: Empathy and creativity often lead to better outcomes
Levels of Conflict
Intrapersonal: Within an individual
Interpersonal: Between individuals
Intragroup: Within a team
Intergroup: Between teams or departments
Why/How Conflict Can Be Dysfunctional or Beneficial
Dysfunctional: Reduces productivity, damages relationships, increases stress.
Beneficial: Encourages innovation, improves decision-making, reveals underlying issues.
Five Major Strategies for Managing Conflict
Competing
Collaborating
Compromising
Avoiding
Accommodating
Planning for Negotiations
Your goals and BATNA (Best Alternative to a Negotiated Agreement)
Interests and priorities of both parties
Possible trade-offs and concessions
Cultural and communication differences
Distributive vs. Integrative Bargaining
Distributive: Win-lose, fixed pie, competitive
Integrative: Win-win, expanding the pie, collaborative
Distributive and Integrative Tactics
Distributive: Anchoring, bluffing, limited disclosure
Integrative: Sharing interests, exploring options, building trust
Hard Ball Distributive Bargaining Tactics and Responses
Tactics: Good cop/bad cop, highball/lowball, bluffing, threats
Responses: Ignore, counter with facts, reframe, call out behavior, walk away if needed
Why Integrative Negotiations Are Hard to Achieve
Lack of trust
Poor communication
Misaligned goals
Assumption of a zero-sum game
Time constraints
Tips for Negotiating Your Job Offer
Research market rates
Know your value and goals
Be professional and polite
Focus on total compensation
Don’t accept the first offer immediately
Ask questions and seek clarification
Entrepreneurship
An entrepreneur identifies opportunities, takes risks, and creates value through innovation and resource mobilization.
Traits of Successful Entrepreneurs
Traits: Passion, perseverance, adaptability, vision
Entrepreneurship: Creating new ventures or innovations
Not: Just taking financial risks or working independently
Individual Personality Traits and Skills of Someone with an Entrepreneurial Mindset
Risk tolerance
Need for achievement
Creativity
Self-efficacy
Opportunity recognition
Resilience
Four Contexts of Entrepreneurial Behavior
Independent startups
Corporate entrepreneurship
Social entrepreneurship
Family business entrepreneurship
Contexts
Independent: Founding new business
Corporate: Innovating within existing firms
Social: Addressing social issues through business
Family: Managing innovation in family-owned firms
Characteristics of Entrepreneurial Orientation
Innovativeness
Proactiveness
Risk-taking
Competitive aggressiveness
Autonomy
Creativity
The ability to generate novel and useful ideas.
Why We Are Not More Creative
Fear of failure
Fixed mindset
Conformity
Lack of time/resources
Over-reliance on logic or rules
How to Improve Creativity
Embrace curiosity
Encourage diverse perspectives
Create a safe space to take risks
Practice brainstorming
Allow time for reflection and incubation
The Creative Process
Preparation
Incubation
Insight
Evaluation
Elaboration
Creativity vs. Innovation
Creativity: Idea generation
Innovation: Implementing creative ideas into practice