Love_of_Middle_East

Chapter 2 – Personality and Learning Personality – psychological traits influencing the way a person acts with their environment. 5 Factor model of personality (big 5) 1- Extraversion – extent of being outgoing vs shy – high more outgoing 2- Emotional stability/neuroticism – degree of emotional control – high stability, high self esteem 3- Agreeableness – extend of being approachable and friendly 4- conscientiousness – degree of responsibility and achievement oriented 5- openness to experience – how flexible and open to new ideas Locus of control – wether behavior is controlled by internal or external factors - internals – we control - externals – other control self monitoring – how someone appears in social settings self esteem – degree of positive evaluation behavioural plasticity theory – ppl with low self esteem influenced by external factors positive affectivity – view world positively negative affectivity – view world negatively proactive behaviour - taking initiative to improve situation of offer new ideas proactive personality – stable personal taking initiative to improve and offer new ideas general self efficacy – belief on how successfully you can perform categories of learning – 1- Practical skills – skills based on job – 2- Intrapersonal skills – problem solving – learning alternative work processes 3- Interpersonal Skills – interaction skills 4- Cultural awareness – learning all the do”s and dont’s of the company Operant learning – learn based on the scenario (ex, rats learning to push lever to get food) Reinforcement – positive reinforcement – negative reinforcement Organizational errors involving reinforcement 1) confusing rewards with reinforcers – 2) neglecting diversity in preferences for reinforcers – appreciate individual differences 3) neglecting important sources of reinforcement – i. Positive feedback – best ways to implement 1- send in positive manner 2- delivered immediately following performance 3- visually represented - graph, chart 4- specific to behavior being recognized extinction – gradual losing behavior once reinforcer is gone Increase effectiveness of punishment 1) make sure the chosen punishment is truly aversive – don’t perform – work overtime to make up 2) punish immediately 3) do not reward unwanted behavior 4) do not inadvertently punish desirable behavior self regulation 1- collect self observation date – keep log and see if those add or not to perform 2- observe models – see who does well to have other imitate 3- set goals – 4- rehearse – 5- reinforce oneself – offer incentive to self to follow through with plan behavior modeling training 1- describe to staff what we want them to learn 2- provide models displaying what we want them to learn 3- provide opportunities for staff to put elements into practice 4- provide feedback and social reinforcement for properly doing it 5- take steps to instill elements into job Chapter 3 – Perception, Attribution & Diversity Perception – process of interpreting a message 1 –a perceiver – past experiences influence perception 2 – situation – adds information about target 3- a target – interpreting the meaning of the target Social identity theory – form perceptions of oneself Primary effect – rely on early cues and first impressions Recency effect – rely on recent cues and last impressions Implicit personality traits – is one way must act this way Projection – pass on our own thoughts and feelings to others Attribution – causes/motives assigned to explain behavior Dispositional attributions – personality affects behavior Situational attributions – outside affects persons behavior Consistency cues – how often person engages in behavior over time Consensus cues – how my behavior compares to that of others Perceived organizational support – comp cares about me Organizational support theory – if comp cares about me I care about them Chapter 4 – Values, Attitudes and Work Behavior Hofstedes study (values) 1- power distance – people hold more power than others – how big is gap 2- uncertainty avoidance – how comfortable you are with a certain situation 3- masculinity/femininity – differentiating gender roles 4- individualism/collectivism – work alone or as a group 5- long term/short term orientation – attitudes BELIEF + VALUES = ATTITUDE = BEHAVIOR Ex – BELIEF = my job is interfering with me family life VALUES – I dislike anything which hurts my family ATTITUDE – I dislike my job BEHAVIOR – I’ll find another job Can flip it around to alter Ex - BEHAVIOR - I need to keep my job ATTITUDE – my job isn’t that bad VALUE – I have to financially support my family BELIEF – my job helps my family Discrepancy theory – job satisfaction stems from what we want and what we get Distributive fairness – we get what we think we should get Procedural fairness – was procedure leading to outcomes fair Interactional fairness – was the way I was told about the outcomes fair Equity theory – my outcomes/my inputs = others outcomes/others inputs -how closely linked is what we do and whats others do Emotions – short lived feeling caused by an event Moods – longer lived feelings Emotional contagion – my moods/emotions spread onto others Emotional regulation – comp requires you to put up a front regardless of mood – Ex. customer service Chapter 5 – Theories of Work Motivation Motivation 1- effort 2- persistence 3- direction 4- goals intrinsic motivation – motivation between person and task extrinsic motivation – motivation stemmed from environment self determination theory – is motivation autonomous or controlled Characteristics of Motivation 1) Effort – effort you put in 2) Persistence – 3) Direction 4) Goals 5) Emotional intelligence – ability to manage my and others emotions 1- perceiving emotions accurately in oneself and others 2- using emotions to facilitate thinking 3- understanding signals conveyed by emotions 4- manage emotions to attain goal need theory NEED = BEHAVIORS = INCENTIVES & GOALS MASLOWS HIERARCHY of NEEDS Physiological Needs – stuff we need to survive – ex pay Safety Needs – safe working conditions, position stability Belongingness Needs – interaction with others on the job Esteem Needs – master task leading and attaining goal Self Actualization Needs – jobs which offer growth possibilities Alderfer’s ERG theory 1) Existence Needs – material needs 2) Relatedness Needs – communication & exchange of ideas with others 3) Growth Needs – strong involvement in work setting McClellands Theory of Needs 1) preference for situation where personal responsibility influences outcome 2) set difficult goals to provide calculated risk 3) performance feedback Personal responsibility causes the outcome – not chance Set big goals to feel sense of accomplishment Desire for performance feedback Expectancy Theory 1) outcomes – consequence following behavior i. first level outcome – interest of organization ii. second level – personal interest 2) Instrumentality – probability that first level outcome will be followed by second level 3) Valence – attractiveness of outcome 4) Expectancy – probability that employee can achieve first level outcome 5) Force – how much effort we put in to achieve first level outcome Goals: goal specificity, goal challenge, goal commitment, goal feedback Chapter 6 – Motivation in Practice Piece rate – paid according to level of production Wage incentive plans – links pay to performance on production jobs Problems with wage incentives 1- lowered quality – make more at less quality 2- differential opportunity – opportunities available to produce high volumes 3- reduced cooperation – employees don’t cooperate 4- incompatible job design – way job is structured makes it hard to implement Profit sharing – return some company profit to employees as a bonus Gainsharing – improved productivity and performance which workforce has some control Job scope – the breadth and depth of a job 1) breadth - # of different activities performed on a job 2) depth – amount of discretion employee has on their tasks Stretch assignments – allow employee to broaden their skills by working variety of tasks with new responsibilities Job rotation – rotating between different jobs and tasks merit pay plan – link pay to performance for white collar workers problems with merit pay plan 1- low discrimination – managers don’t discriminate between good and bad worke 2- small increase – Types of work schedules 1) flex time – arrival and departure times are flexible 2) compressed work week – put in same hours but less days per week (longer days) 3) job sharing – 2 part timers split a full timers schedule 4) work sharing – reduce employee hours during cuts to avoid firing Chapter 7 – Teams/Groups Groups – 2 or more people working interdependently (rely on one another) to achieve a common goal Formal Groups – Manager with people below them who report up to them Task Forces – temporary groups formed to solve particular problem Committees – permanent groups who handle recurrent problems Informal Groups – arise to respond to common interest of organization Stages of Group Development (applies to newly formed groups only) 1) Forming – get introduced to each other and discover what their purpose is 2) Storming- brainstorming ideas, direction of task, assigning tasks and responsibilities – conflict usually arises 3) Norming – resolve issues/conflicts brought about by storming stage – involves compromise 4) Performing – Solely focus on attaining goal – achievement, creativity and mutual assistance take place 5) Adjourning – End of project, celebrate for task accomplishment Connie Gersick – Punctuated Equilibrium Model (Used for groups with deadlines) Punctuated Equilibrium Model – 1) Phase 1 – first meeting – setting agenda for what will take place – little progress towards goal attainment 2) Midpoint Transition – happens halfway to deadline, marks change in groups approach, manage change to show progress, may completely change what was originally discussed 3) Phase 2 – Whatever was set out in midpoint (good or bad) must be followed through in this phase – final meeting which details all the work left to be done What Punctuated Equilibrium Model Suggests 1) Carefully prepare for first meeting – motivate and excite team members 2) Be happy people are working and don’t seek radical changes 3) Midpoint – weed out good and bad ideas – clarify tasks to members – establish strategy for phase 2 (effectively completing task) 4) Ensure resources are available to execute what needs to be done in phase 2 5) Resist deadline changes Group Structure – how group is put together Basic Structural Characteristics 6) Size and member diversity 7) Norms (expectations about each others behavior) 8) Roles (agreement about who does what) 9) Status (rewards and prestige allocated to certain group members) 10) Cohesiveness (how attractive group is to members) Size and Satisfaction 1) bigger groups = less satisfaction 2) too big = too many ideas = conflict 3) less time to verbally present your opinions – too many talking 4) smaller groups feel more accomplished by goal attainment Size and performance (do bigger groups perform better – depends on task) 1) Additive task – each persons efforts are required for final outcome (ex. building a house) – more people = faster building time – increased performance 2) Disjunctive task – performance depends on performance of best group member – performance increase with larger sized groups because we have more chances of finding “best group member” 3) Process loss – performance difficulties brought about by problems of coordinating and motivating larger groups Actual Performance = Potential Performance – Process Loss 4) Conjunctive tasks – performance limited by poorest member – more people = more chances of having a weak group member Diversity of Group Members 1) more diverse have harder time communicating and being cohesive 2) Longer time during forming, storming and norming stages 3) Perform better in cognitive creativity demanding tasks and problem solving vs routine work Group Norms – expectations about one another’s behavior 1) Norm Development – provides regularity and predictability to behavior Typical Norms 1) Dress Norms – how to dress at work 2) Reward Allocation Norm – how to allocate norms 1) Equity – rewards according to inputs (effort, performance, seniority) 2) Equality – rewards everyone equally 3) Reciprocity – rewards others how they reward you 4) Social Responsibility – reward those who must be rewarded 3) Performance Norms – what type of performance is expected from employees Roles – positions in group that have expectations attached to them – your particular role requires that you act in such a way which is different from another person’s role 1) Designated/Assigned Roles – dividing labor and responsibilities to each person to achieve goal easier 2) Emergent Roles – Develop naturally to meet social emotional needs of group and accomplish job (ex class clown, office gossip girl) Role Ambiguity – unclarified job goals and methods What can cause ambiguity 1) Organizational Factors – Person’s role does not allow them to offer more information 2) The Role Sender – Not properly expressing goals to people 3) The Focal Person – Person receiving goals information may perceive it wrong Role Conflict – person faced with mismatched goal expectations – wrong job for particular role 1) Intrasender Role Conflict – assigning expectations about roles to wrong person 2) 2 or more role senders differ in expectations on who should fulfill role 3) Interrole Conflict – several roles for a person but each offer mismatched expectations 4) Person-Role Conflict – role assigned doesn’t match skills of person required to fulfill it Status – positions if group members 1) Formal Status System – management evaluates who has higher status than others i. Seniority ii. Job position 2) Informal Status System – Focusing on the one who stands out the most (top seller, best player) Consequences with status differenced – hurts communication levels 1) People tend to associate with those with an equal status as them 2) People with higher statuses tend to talk more – not necessarily smarter Reducing Status Barriers 1) Foster communication, teamwork and cooperation – removes status barriers Group Cohesiveness – attractiveness of members – how well each flow together 1) More willing to stay in group and work together – more favorable outcome Factors influencing cohesiveness 1) Threat and Competition – external threat to survival of group – group will work together to battle against such threats 2) Success – Once success is attained – cohesiveness follows 3) Member Diversity – if group agrees, diversity become unapparent 4) Size – bigger groups have a harder time with cohesiveness 5) Toughness of Initiation – groups that are tough to get into are more attractive and result in cohesiveness Consequences of cohesiveness 1) More participation in group activities – all want to stay in cohesive group so they will be mentally and physically present 2) More Conformity - Keep everything equal – rewards, punishment, information 3) More Success – Cohesiveness contributes to groups success and vise versa Cohesive groups enjoy accomplishing their own goals – if they fit with the organization then it works. Social Loafing – hold back from properly performing due to others in group 1) Free Rider Effect - Perform less than able to because others will do it 2) Sucker Effect - Perform less because others are not doing their part How to Fix Social Loafing 1) Make individual performance more visible – keep group size small so we can see who does what 2) Make work interesting 3) Increase feelings of indispensability (crucial) – create importance 4) Increase performance feedback 5) Reward Group Performance Teams – are groups in organizational setting Collective Efficacy – Shared belied that a team can collectively perform task Self Managed Work Teams – Teams with less supervision 1) Tasks should be challenging, require high interdependence and complex 2) See task as significant 3) Continue from beginning to end 4) Use a variety of skills Composition of self managed teams 1) Stability – high interaction and cohesiveness – requires trust and understanding – cant rotate members, will cause it to flop 2) Size – should be as small as possible 3) Expertise – members must have high levels of expertise 4) Diversity – similar enough to work well together, different enough to bring new ideas to the table 5) Let group choose their own members Supporting self managed teams 1) Training – offer extensive training i. Technical training – ii. Social Skills – assertive, problem solving, dispute resolution tactics iii. Language Skills – iv. Business training – basic elements of business 2) Rewards – rewards for team accomplishments 3) Management – mediation between team members Cross functional Teams – bring people with different specialties to work together 1) Can be self managed and permanent if recurring task is not too complex 2) require formal leader if task is complex 3) bring innovation, speed and quality Principles for Effectiveness for Cross Functional Teams 1) Composition – team formed of those with relevant skills to task completion 2) Superordinate Goals – attractive outcomes only achieved through cooperation 3) Physical Proximity – locate team members near one another to facilitate formal communication 4) Autonomy – autonomy from organization 5) Rules and Procedures – basic decision procedures and rules must be laid down 6) Leadership – strong people skills Shared mental models – each share same view on how they should act with each other Virtual Teams – use technology to communicate and collaborate Advantages of Virtual Teams 1) Around the clock work 2) Reduced Travel Time 3) Larger Talent pool – find best people from around the world Challenges of Virtual Teams 1) Trust 2) Miscommunication – not in person can misinterpret 3) Isolation – need for face to face contact 4) High Costs 5) Management Issues – how to manage team you cant see Chapter 8 – Social Influence, Socialization and Culture Information dependence – rely on others for info on how to think, act, feel – compare our views with others Effect Dependence – evaluated how others act and think as it may harm the goal attainment of group, and, desire for approval from group members Motives for Social Conformity 1) Compliance – follow to gain rewards and avoid punishment 2) Identification – follow those who have same views as you 3) Internalization – follow the norm because all have deemed them as being right Organizational Socialization – learn attitudes and behaviors by those around us – adopt them as our own – most relevant for new employees Type of Fit 1) Person/Job Fit – match between employees knowledge, experience and actual job 2) Person/Organization Fir – our beliefs and values are same as those of organization Organizational Identification – understand what the company stands for and wants to accomplish Stages of Socialization 1) Anticipatory Socialization – What you have learnt prior to entering the organization – through studies, past jobs 2) Encounter – Facing reality of the job – training, trying different positions of comp, understanding coworkers and boss 3) Role Management – Altering yourself to comply with the organization Psychological Contract – What you expect from the organization based on what you put in – hard work = bonus Psychological Contract Breach – You have not received what you though you would Realistic job previews – provides a look at the realistic and unrealistic aspects of the job 1) gather information from current staff about pros and cons and put info into pamphlets and videos to be showed to new potential employees Employee Orientation Programs – introduce new employees to job, coworkers and organization 1) teaches employees how to deal with stress 2) history of company John Van Maanen & Edgar Schein – Theory of Socialization Socialization Tactics – how to help newcomers transition from 1 role to another 1) Collective – all newcomers experience everything together 2) Individual – each employee has their own experience designed for them 3) Formal – separate new employees and existing ones and provide formal learning 4) Informal – do not distinguish newcomers from existing employees 5) Sequential – fixed sequence of steps to socialize new employee 6) Random – ambiguous/changing sequences 7) Fixed – time table for newcomers assumption of role 8) Variable – no time frame to indicate socialization period has ended 9) Investiture – focus on newcomers identity and attributes 10) Divestiture – strip away identity and attributes for socialization 11) Institutionalized – formal and structuralized approach to socialize employee 12) Individualized – let newcomer discover their own role Mentoring – senior person in the company gives newcomer more attention and aid 1) Career Functions – mentor provides career enhancing opportunities for newcomer i. Sponsorship – nominate newcomer for promotions ii. Exposure & visibility – offer newcomer to work with key people and other departments iii. Coaching and Feedback iv. Development Assignment – provide challenging job to help employee grow 2) Psychosocial Functions – hope to psychologically cope i. Role Modeling – attitudes, values and behaviors for newcomer to imitate ii. Provide acceptance & confirmation – iii. Counseling – discuss personal concerns and anxieties Formal Mentoring Programs – set up by the organization Proactive Socialization – newcomer aids in their own socialization by using a number of proactive behaviors 1) ask questions, want to learn, get involved Organizational Culture – shared beliefs and values that exist about the organization Subcultures – show departmental differences / differences in training and occupation Strong Culture – majority of people in the organization share the same beliefs and values 1) company doesn’t need to be big to have a strong culture 2) strong cultures don’t result in blind conformity (saying yes just because) Assets of Strong Cultures 1) Coordination – all sectors of organization communicate well – right know what left does and vs 2) Conflict Resolution – same views lessens the intensity of a conflict 3) Financial success – strong cultures contribute to financial success (sales, $$) Liabilities of Strong Cultures 1) Resistance to Change – external forces may require change and some may not want 2) Culture Clash – merging of companies – people don’t like 3) Pathology – threaten organizational effectiveness because views are bad ones Socialization Steps 1) Selecting Employees – carefully select employees who will fit in with the culture 2) Debasement & Hazing – provoke humility to newcomer so they are open to organizational norms 3) Training in the Trenches – start at the bottom to learn how everything works 4) Reward & Promotion – 5) Exposure to Core Culture – assert cultures beliefs to provide guidance for newcomer 6) Organizational Folklore – stories which help reinforce culture to newcomer 7) Role Models – follow the best so newcomer can imitate Diagnosing a culture 1) Symbols – Demonstrating aspects which are important to the company, ex. making employees walk through HR dept. to get to lockers – comp values HR dept. 2) Rituals – perform rituals to convey importance of culture, ex. Friday pizza parties 3) Stories – tell stories of past organizational events to show newcomers how things work Chapter 9 – Leadership Leadership – influence one has on other to achieve goal 1) increase innovation, productivity, satisfaction and commitment Strategic leadership – someone who can think outside the box and think of company’s future Leadership Traits – physical, intellectual and personality attributes 1) intelligence 2) energy 3) self-confidence 4) dominance 5) motivation to lead 6) emotional stability 7) honesty and integrity 8) need for achievement 9) 3 of the BIG5 – agreeableness, extraversion & openness to experience Behavior of Leaders 1) Consideration – approachable and shows concern/respect for others 2) Initiating structure – how focused leader is on group goal attainment 3) Both contribute to motivation, job satisfaction, leader effectiveness Consequences of Consideration and Initiating structure 1) employees under pressure, structure increase satisfaction 2) task is satisfying, no need for consideration and structure 3) clear job guideline – consideration good, structure bad 4) employee lacks knowledge – consideration unimportant, structure very important Leader rewards behavior – compliments, tangible benefits and special treatment Leader punishment behavior – Fidler Contingency Theory & Cognitive Resource Theory Contingency Theory – leadership orientation and group effectiveness varies on the situation. The extent to which the situation requires leadership Least Preferred coworker LPC – someone leader has or has had difficulty getting to accomplish their task. 1) High LPC – relationship oriented 2) Low LPC – task oriented Situational Favorableness – LPC orientations should contribute to groups effectiveness 1) Leader-Member Relations – good relationship between the 2 allows for good influence 2) Task Structure – highly structured tasks allow for good influence to be exerted 3) Position Power – power granted to leader to exert influence and direct team Fidler says best when – leader/member relations are good, task is structured and leader has strong position power Cognitive Resource Theory – how leaders cognitive resources contribute to his effective leadership style Intelligence of Leader depends on: 1) directiveness of leader 2) group support for the leader 3) stressfulness of the situation House Path Goal Theory – under which situations leadership behaviors are most effective 1) effective leader makes connection between employee and organizational goals House Path Goal – Leader Behavior 1) Directive Behavior – schedule work, maintain performance and are transparent with employee expectations – identical to initiating structure 2) Supportive Behavior – approachable, friendly, concerned with pleasant relationships – identical to consideration 3) Participative Behavior – consult with employees about work problems 4) Achievement Oriented Behavior – push for high effort and goal accomplishment from employees Path Goal concerned with 1) employee characteristics 2) environment factors What types of leadership suits who 1) employee who is high need achiever – achievement oriented behavior 2) employee who need direction – directive behavior 3) employee who feels they have low task ability – directive leadership and coaching behavior Participative Leadership – involving employees in making work-related decisions Advantages of Participative Leadership 1) Motivation 2) Quality – perform more quality decisions 3) Acceptance – employee acceptance of decision Problems with Participative Leadership 1) Time & Energy – takes time to speak with employees and render a decision 2) Loss of Power – reduces leaders level of power 3) Lack of Receptivity or Knowledge – unhappy employees may not want to help Vroom and Jago Situational Model of Participation 1) A(autocratic)I(individual) – you solve and make decisions alone 2) AII(group) – share prob with group, but make final decision alone 3) C(consult)I (individual) – share prob with employees one one one, you make final decision alone 4) CII – share prob with group, make final decision alone 5) G(group)II – share prob with group, make decision as a group Leader/Member Exchange Theory – evaluating quality of relationship between leader and employee Transactional Leadership – straightforward exchange between leader and followers 1) contingent rewards system 2) employees perform well – leader rewards them 3) leader uses participatory behavior Management by Exception – monitor how follower follows leader and take action to rectify problems Transformational Leadership – sculpt employees to follow the new vision – socialize them Intellectual stimulation – allow people to think outside the box to come up with new ideas Individualized Consideration – treat employees as distinct individuals Inspirational Motivation – communicating visions to employees which are stimulating Ethical Leadership – practicing what you preach – want honesty from staff, demonstrate honesty Thomas/Schermerhorn/Dienhart on Ethical Leadership 1) communicate a clear & consistent positive ethical message from the top about ethics 2) Create & Embrace opportunities for everyone in the organization to communicate positive ethics, values and practices 3) Ensure consequences for ethical and unethical conduct Authentic leadership – be true to oneself and follow your own ethics, beliefs and values Macain on Authentic Leadership 1) Self-Awareness – understanding your strengths and weaknesses and affects on others 2) Relational Transparency – be yourself 3) Balanced Processing – analyze info before making a decision 4) Internalized moral perspective – values and moral guiding our behavior and decision making Implicit leadership – what contributes or impedes good leadership 6 global leadership dimensions 1) Charismatic/value-based – ability to inspire, motivate and expect high outcomes 2) Team Oriented – want effective team building 3) Participative – how much you involve others in making decisions 4) Humane Oriented – supportive and considerate leadership 5) Autonomous – independent and individualistic leadership 6) Self-Protective – wanting safety and security for employee Global Leadership – set of leadership qualities which allow for multi cultural relations Morrison & Black global leadership qualities 1) Unbridled inquisitiveness – able to functions in different cultures 2) Personal Character – emotional connection to people from diff cultures 3) Duality – able to manage uncertainty and balance global and local tensions 4) Savvy – business and organizational savvy Laissez Faire Leadership – avoidance or absence of a leader Glass Ceiling – barrier preventing women from advancing to senior leadership positions Eagly & Carli (barriers women encounter) 1) Vestiges of Prejudice – men receive higher wages & promotions than women 2) Resistance to women’s leadership – women are not able to do it 3) Issues of leadership style – women have hard time identifying leadership style Chapter 11 - Decision Making Decision Making – process of developing commitment to some course of action 1) making a choice among several action alternatives 2) process involving more than final outcome, how did you get there 3) commitment of resources, eg money, time Problem – gap existing between what we want and what actually is Program – standardized way of solving a problem Ill structured problem – existing, desired state and way to get there are unclear 1) unique, never before seen problem 2) complex and uncertain Perfect Rationality – decision strategy which is completely informed, perfectly logical and oriented towards economic gain 1) gather info about problem without cost and still completely informed 2) perfectly logical – able to find logical solution 3) main criteria for decision making – economic gain Rational Decision making process 1) Identify problem 2) Search for relevant information 3) Develop alternative solutions to the problem 4) Evaluate alternative solutions 5) Choose best solution 6) Implement chosen solution 7) Monitor and evaluate chosen solution Herbert Simon – Bounded Rationality – limited in ability to acquire information and faced with time constraints and political consideration (having to please others in the organization) 1) Framing – aspects of information presentations that are assumed by the decisions maker 2) Cognitive biases – acquire and process information in a error prone way Problems with Bounded Rationality 1) Perceptual Defense – perceptual system defending perceiver against unpleasant perceptions 2) Problem defined in terms of functional specialty – believe problem solving lies in ones domain of specialty even though it does not 3) Problem defined in terms of solution – jumping to conclusions about problem and solution 4) Problem diagnosed in terms of symptoms – focus too much on one thing but not the actual root Not enough information – people are lazy and use whatever info they find 1) Confirmation Bias – seek out information that conforms to ones own definition or solution to problem Too much information – 1) information overload – more info than necessary 2) leads to errors, omissions, delays and cutting corners 3) get confused and use irrelevant information to make decisions Why they like more info 1) confidence in decision will increase 2) associate information with power, avoid being left in the dark Maximization – choose alternative with greatest expected value Satisficing – finds their own acceptable solution then screens through other solutions to find one which surpasses the original one Sunk costs – losses resulted from a decision Escalation of commitment – investing additional resources in a failing course of action How to avoid escalation of commitment 1) Shift frame to saving rather than spending 2) Set specific goals which are to be met 3) Evaluate how managers make decisions and not outcomes 4) Separate initial and subsequent decisions making Hindsight – evaluating decisions making process to determine what was done right and wrong 1) many assume they knew the outcome all along 2) take credit for good outcome but not for bad ones How moods affect decision making 1) people in positive mood remember positive info, and those is negative vise versa 2) positive moods allows positive evaluation of objects, people, events, negative vise versa 3) good mood say good will likely happen and bad not, bad mood vise versa 4) positive mood entices creative and intuitive decision making Group decision making 1) quality decisions i. more people scanning the environment and the situation ii. groups generate more ideas iii. groups evaluate ideas better Decision acceptance and commitment 1) people wish to be involved in decisions which will affect them 2) better understand a decision which they participated in 3) more committed to a decision they were invested in Diffusion of responsibility – groups share burden of negative consequences of a bad decision How groups make better decisions 1) groups bring different expertise to the table 2) division of labor 3) memory for facts 4) individual judgments on others expertise, evaluate how well they know Disadvantages of group decision making 1) Time – don’t work quickly 2) Conflict – 3) Domination – one person taking control of group meeting – trying to be leader 4) Groupthink – one trying to pressure others in decision making Symptoms of Groupthink 1) illusions of invulnerability – overconfident members who want to take risks 2) rationalization – problems and counterarguments are given – logical but improbable excuses 3) illusion of morality – sensible, morally correct decision 4) stereotype of outsiders – stereotypes of outsiders who are target for decisions 5) pressure for conformity – fall in line with groups view 6) self-censorship – avoid voicing opinions contrary to the group 7) illusion of unanimity – unanimous support needed for course of action 8) mindguards – protect group from information which goes against their decision Risky shift – groups making riskier decisions than average risk each member agreed on Conservative shift – making less risky decisions than average risk each member agreed on Why do risky and conservative shifts occur 1) groups discussion bring about elements which individuals did not consider prior 2) group member try to present themselves as similar to others, but better Managers improve decision making by 1) making need for action clear at beginning 2) setting objectives 3) carrying out unrestricted search for solutions 4) getting key people to participate Discussion leader training 1) state problem in a non-defensive objective manner 2) supply essential facts and clarify constraints on solution 3) keep equilibrium in group 4) do not make suggestions or ask leading questions 5) ask stimulating, discussing opening questions 6) always summarize and clarify Devil’s Advocate – someone who challenges the idea set forth to see if it sticks Nominal group technique – ideas are generated individually then they are evaluated by the group Delphi Technique – pooling large # of expert judgments while avoiding conformity and domination in groups Chapter 12 – Power, Politics & Ethics Power – ability to influence others who are dependent 1) capacity to influence others 2) person dependent on powerholder – doesn’t mean poor relationship exists 3) power can flow in any direction – power based on the situation, who has the upper hand 4) power applies to individuals and groups power can be found in the positions one holds in the company and the resources they are able to control Legitimate Power – power brought forth by the position one holds in the organization Reward Power – powerholder exerts influence by providing positive outcomes and preventing negative ones 1) grant raises 2) performance evaluations 3) preferred tasks to employees Coercive Power – exert power by using punishment and threats 1) revoke raises 2) bad evaluations 3) unwanted task assignment Referent Power – power brought about by someone who is well liked – want them to influence us 1) identification with powerholder – charismatic person 2) anyone in organization who is like may exert referent power Expert Power – particular expertise which the organization values 1) doesn’t necessarily entail someone high in corporation, can be anyone who has a valued asset How to obtain power 1) Extraordinary activities – excel in non-routine jobs 2) Visible activities – identifying visible activities and publicizing them 3) Relevant activities – must be relevant and important to organizations problems