BUS 326 Notes - Instructor: Julia Bear; Denise Buhrau PDF

Preview

Summary

Instructor: Julia Bear; Denise Buhrau...

Description

Class 2 - 2/4/2019 3 different levels Individual Team Organization Coaching raises individual success. Increased motivation. Purchase cases. Tips for discussion notes: GIve yourself time to read case and create discussion notes. Discussion notes are not summary of case, but attach it to what we are studying. How are certain theories applied to a case. Explain why the case is relevant to what we are learning. Think of feasible recommendation, don’t just say “Should communicate more” instead establish communication structure etc. reporting structure. Constantly relate to theories and concepts. “If I were this person what would I do.” Apply concepts from current topics. OB Quiz 1. Happy workers are productive workers. a. Happy workers, less likely to leave and more likely to perform. Less turnover. 2. The best way to predict how someone will behave in a completely new social situation is to understand his or her personality. a. It depends, most people behave based on situation and personality. 3. Because specific goals intimidate people, individuals work hardest when asked just to do their best. a. False, people need specific and challenging goals. People want a challenge or else they will be bored. Need clearly defined, SMART goals. 4. Most people are much more concerned with the size of their own salaries than with the size of other people’s salaries. a. False, people care more about the grass on the other side of the fence. They want to be better. “Common sense” is not so common Q: “What advice would you give to people who aspire to leadership positions?” A: “Learn how to manage people. It sounds so simple, but people overlook people management. They hit benchmarks, they do all of the bottom line stuff, but they forget how important is it to manage people. You can be technically right and management wrong.

“95% of my assets drive out the front gate every evening, it’s my job to bring them back” Normal assets you immediately buy, but employees you hire and need to maintain.

Motivation and Personality Definitions Behavior results from a complex interplay between personality and situational factors. Personality - The unique and relatively stable pattern of behaviors, thoughts, and emotions shown by an individual. Person-job-fit - the extent to which individuals possess the traits for specific jobs Big Five Dimensions of Personality - The most fundamental traits. - Conscientiousness - Degree of diligence, perseverance, and organization - Strongest predictor of work performance. Others are for fit. - Related to job performance and related to absenteeism. - Agreeableness - Degree of cooperativeness and warmth. - Related to cooperation. - Related to performance in teams. - Emotional Stability (Neuroticism) - Degree of calmness, self-confidence, and sense of security. - Related to job satisfaction across many occupations. - Related to stress. - Openness to experience - Degree of creativeness, curiosity, and interest in novel experiences. - Related to success in training (experience and learn quickly) - Extraversion (Introversion) - Degree of gregarious, assertiveness, and sociability. - Related to performance in jobs that required interpersonal interaction - Related to leadership emergence, not related to performance. Relevant personality traits Self-Efficacy - an individual’s beliefs concerning his/her ability to perform specific tasks successfully. - We tend to be more motivated when we have some ability and confidence to perform a role. - It is measured based on specific tasks - Show to be different from self-esteem and self-confidence - A strong predictor of both performance & persistence. - E.g. if you are more confident about doing something, you will keep going even if you come to a problem or fail. Locus of Control - the degree to which someone believes he or she is in control of his/her fate; internal vs. external

-

Internal associated with greater motivation and higher performance.

Personality Job Fit Theory Holland: Fit between personality type and occupational environment determines satisfaction and turnover. - The better the fit, the more likely they are to stay working. Holland’s 6 personality types: Realistic, Investigative, Artistic, Social, Enterprising, Conventional. Personality matters - Conscientiousness, extraversion, emotional stability are probably the most influential over performance. However, organizations are strong situations, people behavior in different ways depending on situations, And ultimately behavior results from an interaction of personality traits and situational factors. --2/6/2019 - Class 3 Motivation Unsatisfied Need -> Tension -> Drives -> Work to Satisfy Drive -> Satisfied Need -> Reduction in tension When you have an unsatisfied need, you gain tension which drives you to work to satisfy the drive, and once you satisfy it you reduce your tension. Motivation - Set of processes that arouse, direct, and maintain human behavior toward attaining some goal. Components: 1) Intensity/Arousal - Drive or energy behind our actions a) Yerkes-Dodson Law 2) Direction - Choices regarding which goals to pursue 3) Persistence - Continuation of commitment to a goal Extrinsic vs Intrinsic motivation - Extrinsic: Performance to obtain an external outcome. - Intrinsic: Performance for the inherent satisfaction of the activity itself. Maslow’s Need Hierarchy - Theory specifying that there are five human needs that are arranged so that lower-level, more basic needs must be satisfied before higher-level needs become activated.

Deficiency Needs - Physiological needs - Safety needs - Social needs Growth Needs - Esteem needs - Self-actualization needs Herzberg’s Two-Factor Theory Hygiene Factors -

Quality of supervision Rate of pay Company policies Working conditions Relations with others Job Security

Job Dissatisfaction (Extrinsic motivators)

Motivational Factors -

Career Advancement Personal Growth Recognition Responsibility Achievement

Job Satisfaction (Intrinsic motivators)

Hygiene factors are pure basics to be satisfied, however to be truly satisfied you need motivational factors. Self-determination theory (SDT) - People have three fundamental, psychological needs - Autonomy - Self Determination (Control of our lives) - Competence - Agency, self-efficacy - Relatedness - Meaningful social connections - Control (Autonomy) - Goals consistent with interests - Intrinsic motivation Key SDT Takeaways: - Intrinsic motivation can be challenging in organizational settings - Lots of extrinsic incentives floating around! - Not all extrinsic motivation is bad - only when it is coercive. - Embrace the control you have over your work environment (within limits) If your employees are demotivated, think about the three components of SDT. Do you have autonomy? Is there a way of increasing autonomy? More competence, relatedness (connected with others)? Need fulfilment motivates us. We are motivated to fulfill certain needs at work, or eating etc.

Fairness as a precondition to motivation Adams’ Equity Theory - People strive to maintain a ratio of their own outcomes (rewards) to their own inputs (contributions) equal to the outcome/input ratio of others with whom they compare themselves Reward - the rewards, such as salary and recognition, that employees receive from their jobs Effort - people’s contributions to their jobs 3 types of organizational justice: - Distributive Justice (Equity Theory) - Perceived fairness of the outcomes themselves - Procedural Justice - Perceived fairness of the process used in resource allocation decisions - Interactional Justice - Perceived degree to which one is treated with dignity and respect. Are decisions made in a fair manner relative to others ^^ Fairness is determinant of relation to others. Comparative. Basic Elements of Expectancy Theory (Need all 3 to be motivated) 1) Expectancy (Self Efficacy) - If I make an effort, will I be able to perform. a) E.g. Work harder, will produce more? b) Effort -> Perform 2) Instrumentality (Fairness/Justice) - Do I believe I will be justly rewarded. a) E.g. produce more, will have promotion faster? b) Perform -> Reward 3) Valence - Do I care about my reward, does it meet my goals and needs? a) E.g. is promotion worth b) Reward -> Needs Goal Setting Locke and Latham’s Goal-Setting Theory - Specific, challenging goals are best! Goal setting depends on Goal Commitment = Importance + Self Efficacy: The extent to which an individual desires to attain the goal and believes that s/he has a reasonable chance of doing so. Feedback: People need summary feedback Task Complexity: Effect of goal setting greater for simpler as opposed to complex tasks Downside of goals: Some evidence that difficult performance goals increase likelihood of risky strategies and unethical behaviors. Goals can be “too motivating”

-

People don’t deviate from the goal No exceeding the goal No sense of the bigger picture.

SMART Specific Measurable Achievable Reasonable Timetable (Clear) Applied to Management Set goals following SMART rules Involve employees in goal-setting to gain commitment and acceptance Monitor and provide support and regular feedback Increased motivation and performance 2/11/2019 - Class 4 What is the purpose of incentives Incentives: - Motivate performance outcomes - Distinguish valued behaviors and outcomes from unvalued ones - Reward success - Attract and retain talent - Accomplish all the above efficiently The freakonomics child setting problem. - Introduced a fine for late parents picking up kids. - Problem is once fine is introduced, increased lateness - people think they’re paying to come late. Think their actions are justified and less guilty. - Incentive > Punishment “On the folly of rewarding A while hoping for B” Management hopes for: Management Hopes For

Rewards

Long-term growth

Quarterly earnings

Teamwork

Individual effort

Setting challenging “stretch” objectives

Achieving goals; “making the numbers”

Commitment to total quality

Shipping on schedule, even with defects

High achievement

Another year’s effort

Innovative thinking and risk taking

Proven methods and not making mistakes

Candor; surfacing bad news early

Reporting only good news; agreeing with the boss, whether or not (s)he’s right

Management want certain things, however reward the wrong way. --Harrah’s program was a gainsharing program People are rewarded at the department level. Problem is even if 3.9% of non-a’s turned to As, no reward but it gets harder next year Extrinsic rewards for certain individuals. Service Profit Chain (SPC): Model that links HR practices (especially front-line service workers), operations, marketing, customer service, and profits

Customer loyalty drives profitability. To get customer loyalty need satisfaction, etc. and how employees are satisfied and on and on. Operations needs to calculate where putting more money will cause most increase in profits.

Judging based on metrics and data. 2/13/2019 - Class 5 Social perception and common biases Decision making Biases in decision-making Social Perception: Understanding the World Around Us - Perception - the process through which people select organize, and interpret information. - Our brain relies on Heuristics. Heuristics = shortcuts. - It’s typically impossible to take in every information at once intentionally. - Social Perception - the process of combining, integrating, and interpreting information about others. - Perceiver - Target - Simulation Attribution Process - We engage in a idea of social perception. We are trying to make explanations for the world we live in. - The process through which individuals attempt to determine the causes behind behavior. External Attribution - Something external to the person, situation based Internal Attribution - Internal to the person, intrinsic characteristic for example. Is the behavior due to something in the person, or an external circumstance. Often, is it challenging to judge others accurately. - There are many possible causes of behavior - People sometimes disguise their true characteristics Imperfect Nature of Social Perception Perceptual Biases - Predispositions to misperceive others that interfere with making completely accurate judgements. Fundamental Attribution Error Exam A Grade

Exam C Grade

You

Internal

External

Your Friend

External

Internal

We want ourselves to think we are better. When we succeed, we think its because of us - not an external factor. When others fail, we think it was an internal attribute that made them fail. However if we fail then we blame external attributes. A systematic bias in how individuals view their contributions and the contributions of others = Fundamental Attribution Error We over value our own contribution and undervalue other people’s contributions - Egocentric Biases. Decision Making A Classical economist will say we are perfectly rational actors with perfect information and are always optimizing. However, this is not always the case. Prescriptive Rational Decision Making Model

Issues:

Defining the problem Identifying the Decision Criteria Priority & weigh the criteria Develop all alternatives Evaluate all alternatives Critically evaluate each alternatives Compute the optimal decision Monitor and Evaluate Results

You can’t evaluate everything, not every alternative is able to be seen. You also need a lot of time. Assumptions: 1. Problem is clear 2. Options are known 3. Preferences are clear 4. Preferences are stable 5. No Constraints 6. Goal is max payoff DESCRIPTIVE MODEL INSTEAD OF PRESCRIPTIVE - Describe how people actually make decisions instead of how they should. Actual Decision Making: Bounded Rationality 1. Situation Needs a Decision 2. Simplify the Problem 3. Identify Limited Set of Alternatives 4. Compare Alternatives to “Criteria” 5. A Satisficing Alternative Exists a. YES Select the First Good Enough Choice b. NO Expand Search Alternatives and return to 4. -

People do not automatically use the tools of decision analysis. They are not infinitely rational, but they are not infinitely stupid. They are Boundedly Rational. The problem of behavioral decision making: what do they do instead? The don’t optimize. They satisfice. - They seek to satisfy certain criteria - They take the first option that suffices

Three Major Heuristics/Biases - Availability bias - Framing effect - Escalation of commitment bias Availability Bias - The tendency to base judgements and decisions on information that is readily available - Confirmation bias - we look for information that confirms what we already believe and look less for information that conflicts with what we believe. Any time someone is using information and trying to persuade your thinking, give information that is based on what info people think./

Framing You can frame a question in different ways. E.g. instead of saying “400 people will die if you choose this, you can say “200 people will survive” Maybe instead of saying if you choose this, 400 people will die, you say if you choose this, 200 people will survive. Or present using a chance percentage, a probability everyone will die or a probability people will survive. Or psychologically, instead of “save 200 people by doing this” say “400 people will die if you don’t do this” Prospect Theory Framing - Tendency for people to make different decisions based on how the problem is presented. Prospect Theory - People are risk-seeking regarding losses, but risk-averse regarding gains. Escalation of Commitment - An increased commitment to previous decision in spite of negative information. - Even when we get information that proves our decision to be bad, instead of going back to change decision - we increase our commitment to the decision. Possible Explanations - Sunk cost - invested effort and time - Feeling responsible - Admitting a mistake - DIfficult to recognize whether persistence will pay off --2/18/2019 - Class 6 - People use cognitive shortcuts (heuristics) that are vulnerable to error - People are vulnerable to a variety of different cognitive biases - What can you do: - Be aware of your vulnerability to biases - Collect good data for making decisions - Look for disconfirming information - We rely on data that agrees with what we already believe. We want to be right. - What information will make us not believe what we already believe. - Disregard sunk costs We need data on what the temperature is on races that the gasket has not failed on.

Sunk costs, very likely an engine block issue - instead take the 50,000 dollar hit, ignore sunk costs and take a little more time to refine the new engine. If you take the risk now you may never be able to race again and will lose everything. Believe that the temperature data correlation is not reliable data, we lack the temperatures of races we have won. We started as yes majority and swung to no majority, it seems to just confirm a bias if you want to take the risk as well as the last paragraph which suggests a new seating procedure. If there was a new seating procedure that has fixed the issue, they should take 50k hit, and then use it for next season to win. No rush. -

-

-

-

-

-

Misuse of Data - Incomplete information - Misleading presentation Your outcome is only as good as the data. Data sources - Conflicting Advice - Varying source credibility - Varying strength of presentation Situational Pressures - Time - Money - Visibility Cultural Assumptions - Safety Rarely Mentioned - Racing involves risk ("No guts, no glory") Importance of gathering all relevant data - DONT SAMPLE on the dependent variable (DV)! - Definition of sampling on the DV: When you select cases on the basis of meeting a criteria and then use those cases as evidence for the criteria - If you want to test whether all swans are white; search for a black swan. How quantitative calculations are only as solid as the data that are used in making them How perceptions bias the use of information Problems managers face in making risky decisions under uncertainty and time pressure Decisions that occur in behavioral context are often ambiguous and critical pieces of information are unavailable or suppressed.

2/20/2019 - Class 7

Note: Justify why you agree or disagree, you can mention expert commentary. Groups & Teams Norms - Acceptable standards of Behavior. Groups eventually develop norms. Norms are different to change. Logistical Conflicts What is a group? - Two or more individuals, interacting and interdependent, who come together to achieve particular objectives. - Formal - defined by the organization’s structure - Informal - Neither formally structured nor organizationally determined Individuals vs Groups - Individuals - Speed - Clear Accountability - Efficient use of time - Less conflict - Groups - Knowledge & Diversity - Pooling of resources - Specialization of Labor - Functional conflict - Productive discussion, agreement, and debates. Leads to generation of information. Groups superior than individuals when solving complex problem solving if… - Group members are heterogeneous - Members have complementary skills - Ideas may be freely communicated - Goods ideas are accepted Then groups are superior to even the best individuals. Group effectiveness Model - Inputs - Contextual (Resources, Tasks) Composition (People - Skills and abilities of team members, team size) - Processes - Team development

-

- Norms and cohesion - Process gains vs losses Outcomes - Performance - Member Satisfaction

Tuckman’s 5-stage Model of Group Development 1. Forming: Awkward, polite early stage of a group’s life. 2. Storming: Open conflict establishes the pecking order. 3. Norming: Group establishes norms of performance and behavior. 4. Perform...