EXAM 2 - Natalie Levandusky PDF

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EXAM 2: https://quizlet.com/_6e6rt2 Chap 7-10 *cost of teams ● effort, material, resources, time and utilities, risk and opportunity forgone *creative process ● The step-by-step procedure used to discover original ideas and reorganize existing concepts in new ways.

CHAP 7 The Nature of Groups and Teams ● Group: 2 or more people who interact with one another such that each person influences and is influenced by each other person ● Team based environment: an interdependent group of at least 2 people who share a common goal and accountability for outcomes ● Categorization of groups ○ By degrees of formalization ■ Formal groups: established by organization ■ Informal groups: self created by members ● Workgroup: formal group established by the organization to do its work ● Types of workgroups ○ Command group ■ group who all report directly to the manager ○ Affinity group ■ linked by common interest or purpose ● Functional team ○ Members come from same department or functional area ● Cross functional team ○ Members come from different departments or functional areas ○ Can increase creativity ○ Can solve problems more quickly ● Problem solving team ○ Established to solve a problem and improve work ● Self directed team ○ Sets and pursues own goals ○ Team members responsible for managerial tasks such as scheduling and evaluation ○ Can improve commitment, quality and efficiency ● Venture team ○ Operates semi autonomously to create and develop new products, processes or businesses ○ Separating team from firm’s formal structure can enhance innovation and speed

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up cycle times Virtual Team ○ Members are geographically dispersed Global team ○ Has members from different countries ○ Can be virtual or meet face to face Friendship Group ○ Relatively permanent ○ Draws benefits from social relationships among its members Interest group ○ Organized around a common activity or interest ○ Relatively temporary Factors affecting group performance ○ Composition, size, norms, cohesiveness, informal leadership

Group Performance Factors ● Group composition ○ Degree of similarity or difference among group members on factors important to the group’s work ■ Homogeneity, heterogeneity ● Group size ○ Number of members in group ○ Affects resources available to perform the task, degree of formalization of interactions/communication/participation, can increase degree of social loafing ● Factors that determine ideal group size ○ Group members ability to interact and influence each other ● Group norms ○ Standards against which the appropriateness of behaviors or members are judged ● Purposes of norms ○ Help the group survive ● Group Cohesiveness ○ Extent to which a group is committed to staying together ○ Results from forces acting on the members ■ Attraction to the group, resistance to leaving the group, motivation to remain a member of the group, groupthink ● Informal leaders ○ Engage in leadership activities without a formally recognized right ○ Often draw from referent or expert power ○ Can be a tremendous asset when working in the firm’s best interests Stages of Group Development 4 stage development process of groups

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1.Mutual acceptance (forming stage) ○ Making acquaintances, sharing info, discussing subjects unrelated to task, testing one another, being defensive 2.Communication & decision making (storming stage) ○ Expressing attitudes, establishing norms/goals, openly discussing tasks 3.Motivation and productivity (norming stage) ○ Cooperating, working actively on tasks, being creative 4.Control & organization (performing stage) ○ Working interdependently, assigning tasks based on ability, acting spontaneously, being flexible, self correcting

Team Performance Factors ● Process Gain ○ Performance improvements that occur because people work together rather than alone ● Process loss ○ Performance decrements that occur when a team performs worse than the individual members would have had they worked alone ○ Social loafing is a common cause ■ Performance decrements that occur when a team performs worse than the individual members would have had they worked alone ● Team efficacy ○ Team’s shared belief that it can organize and execute the behaviors necessary to reach its goals ● Trust ○ Belief that other people will honor their commitments, especially when this is difficult to enforce ● Social facilitation ○ Occurs when people are motivated to look good to others and want to maintain a positive self image ● Roles ○ Define the behaviors and tasks each team member is expected to perform because of the position she holds ● Other factors ○ Positive norms, shared team goals, feedback, team rewards, new member integration Team Implementation 1. Start up: performance is normal, informational or awareness training 2. reality/unrest: performance declines due to confusion and frustration with training and lack of top management direction 3. Leader centered teams: performance increases due to increasing familiarity with the team process and restoration of internal leadership

4. Tightly formed teams: performance continues to increase 5. Self managing teams: performance peaks as teams mature and become more flexible Benefits of teams in organizations ● Enhanced performance, employee benefits, reduced costs, other organizational benefits Necessities for team based organizational success ● Top management support, understanding time frames, changing organizational rewards Importance of top management in promoting team success ● Decides to go to a team based structure for sound business reasons (not just because everyone else is doing it) ● Instrumental in communication the reasons for change to rest of organization ● Must support change effort during difficult periods Reward systems for teams ● Skill based pay, gain sharing systems, team bonus plans Virtual teams ● Challenges ○ Geographic separation by space and time ○ Isolation: hard to feel “part of the team” ○ Difficult to perform standard integration, mentoring and development functions ○ Many function must be performed by the team without leader being present Diversity and multicultural teams ● Benefits ○ Creativity and innovation, improved decision making & problem solving ● Challenges ○ More misunderstandings/conflicts, less integration and communication, less able to provide for all members’ needs

CHAP 8 The Nature of Decision Making ● Decision Making ○ The process of choosing one alternative from among several ● Problem Solving ○ A special form of decision making that requires developing and evaluating alternatives to find the answer to a question Decisions Based on Frequency ● Programmed Decision

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○ Recurs often enough for a decision rule to be developed Decision Rule ○ Tells decision makers which alternative to choose once they have pre determined information about the decision situation Nonprogrammed decision ○ Recurs infrequently and there is no previously established decision rule

Decisions Based on Information Conditions ● Information required for decision making ○ Information ranges across endpoint conditions ○ Condition of certainty, risk and uncertainty ○ Approaches to decision making ■ Rational, behavioral and practical approach The Decision Making Process ● The Rational Approach ○ Systematic, step by step process for making decisions 1. State situational goal 2. Identify problem 3. Determine decision type 4. Generate alternatives 5. Evaluate alternatives 6. Choose alternative 7. Implement plan 8. Control: measure and adjust ○ Strengths ■ Forces decision in a logical, sequential manner ■ In depth analysis enables choice on the basis of information rather than emotion or social pressure ○ Weaknesses ■ Rigid underlying assumptions often unrealistic ■ Information limited by time or cost constraints, manager’s ability to process information ■ Not all alternatives easily quantified ■ Outcomes unknown due to unpredictability of future Evidence Based Decision Making ● Evidence Based management (EBM) ○ The commitment to identify and utilize the best theory and data available to make decisions by ■ 1. Facing the hard facts and building a culture in which people are encouraged to tell the truth, even if it’s unpleasant ■ 2. Being committed to “fact-based” decision making--getting the best evidence and using it to guide actions

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3. Treating your organization as an unfinished prototype --encouraging experimentation and learning by doing 4. Looking for the risks and drawbacks in what people recommend (even the best medicine has side effects) 5. Avoiding basing decisions on untested beliefs, what was done in the past or uncritical “benchmarking” of what winners do

The Behavioral approach to decision making ○ Assumes decision makers operate with bounded rationality rather than with perfect rationality ○ Procedures and rules of thumb reduce uncertainty ○ Bounded rationality --can’t deal with information about all alternative pertaining to a problem. Choose to tackle some meaningful subset of relevant information ○ ○

Sub optimizing --knowling accept less than best outcome to avoid unintended negative effects on other aspects of the organization Satisficing --examining alternatives only until a solution that meet minimum requirements is found ...choosing first-encountered alternative that solves the problem

^^Examples ● Sub optimizing ○ Quality control department of a factory may want to introduce a program that will guarantee that every bulb that is produced is perfect. However, the higher cost and resulting high price would lead to a disaster for the overall company in lower sales ● Satisficing ○ Sam wanted a white toyota. He wanted to pay under 7k for it. When it was time to buy, the first showroom he walked into had a used, white toyota in the lot with a sticker price of 6500. He bought it on the sport .. it met his criteria so why look any further Other behavioral forces in decision making ● Political forces, intuition, escalation of commitment, risk propensity, ethics ● Prospect theory ○ Argues that when people make decision under a condition of risk they are more motivated to avoid losses than they are to seek gains An Integrated approach to decision making ● The integrated or practical approach ○ Combines the steps of the rational approach with the conditions in the behavioral approach to create more realistic approach for making decisions in organizations ● Hybrid approaches ○ Managers use a combination of rational, behavioral and practical approaches to make decisions

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Research has shown that speed in decision making is not indicative of the consideration of fewer alternatives by managers

Group Decision Making in Organizations ● Factors affecting group decision making ○ Group polarization ■ Tendency for a group’s average post-discussion attitudes to be more extreme than its average pre discussion attitudes ○ Groupthink ■ A mode of thinking that occurs when members of a group are deeply involved in a cohesive in-group and the desire for unanimity offsets their motivation to appraise alternative courses of action ○ Group Problem Solving ■ A typical group interaction to improved decision making: brainstorming, nominal group technique and The Delphi Technique ● Groupthink ○ Conditions favoring the development of Groupthink ■ Strong group cohesiveness ■ Leader’s promotion of a preferred solution ■ Insulation of the group from experts’ opinions ● Symptoms of Groupthink ○ Illusion of invulnerability ○ Collective efforts to rationalize/discount warnings ○ Unquestioned belief in the group’s inherent morality ○ Stereotypes views of “enemy” leaders ○ Direct pressure on a member ○ Self censorship of deviations ○ Shared illusion of unanimity ○ Emergency of self appointed “mindguards” ● Preventing Groupthink ○ Leader prescriptions ■ Assign everyone the role of critical evaluator ■ Be impartial; do not state preferences ■ Assign the devil’s advocate role to at least one group member ■ Use outside experts to challenge the group ■ Be open to dissenting points of view ○ Organizational prescriptions ■ Set up several independent groups to study the same issue ■ Train managers and group leaders in groupthink prevention techniques ○ Individual prescriptions ■ Be a critical thinker ■ Discuss group deliberations with a trusted outsider; report back to the group ○ Process prescriptions

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Periodically break the group into subgroups to discuss the issues Take time to study external factors Hold second-chance meetings to rethink issues before making a commitment Creativity and participation in decision making ○ Creativity ■ Ability to generate new ideas or to conceive of new perspectives on existing ideas ○ Benefits of participation ■ Helps in judgemental problem solving situations ■ Produces more and better solutions ■ Helps in solving complex problems ■ Creates a greater interest in the task

CHAP 9 The Nature of Communication in Organizations ● Communication ○ The transmission of information from one person to another to create shared understanding and feeling ● One way communication ○ Information flows only in one direction ● Two way communication ○ Occurs once a receiver provides feedback to a sender Elements of the communication process ● Sender: the source of communication ● Encoding: the process by which the message is translated from an idea/thought into transmittable symbols, pictures or words ● Channel: the medium used to send the message to the receiver ● Decoding: the process of translating the message back into something the receiver can understand ● Receiver: the target of the communication ● Feedback: a check on the success of the communication ● Noise: anything that blocks, distorts, or changes in any way the message the sender intended to communicate Methods of Communication ● Elements of nonverbal communication ○ Body language ○ Verbal intonation

Task Interdependence =when one person or department is dependent on another person or dept, for resources of information to get work done ● Pooled interdependence ● Sequential interdependence ● Reciprocal interdependence Barrier to Effective Communication ● Selective perception: we selectively see and hear based on our expectations and beliefs ● Misperception: messages are not always decoded by the receiver in the way the sender intended ● Filtering: information is intentionally withheld, ignored or distorted to influence the message that is ultimately received ● Information overload: it is possible to have so much info that it is impossible to process all of it ● Organizational barriers: a firm’s hierarchical structure and culture can influence who is allowed to communicate what to whom, and may limit how messages can be sent ● Cultural barriers: different national cultures have different ways of expressing things ● Noise: anything that blocks, distorts, or changes the message the sender intended to communicate Communication Skills ● Skills to improve ○ Active listening: give speakers clear verbal and nonverbal evidence that you are listening attentively ○ Writing: write to express, not to impress ○ Presentation skills: speak up and clearly, show audience members that you feel comfortable with them ○ Meeting skills: have a good reason to meet in the first place, or don’t meet at all, prepare ahead, start and end of time, create an agenda Communication Media /Mediums ● Most Popular communication media ○ Internet ○ Collaboration software ○ Intranets ○ Oral communication ○ Combination of all these Communication Media & Media Richness ● Richness ○ Ability of media to carry nonverbal cues, provide rapid feedback, convey personality and support natural language use ○ Depends on 4 things

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Interactivity or the availability of feedback Ability to transmit multiple cues, such as physical presence, voice inflection, nonverbal cues, and pictures Language variety for conveying a broad set of concepts and ideas Personal focus, or the degree to which it allows the expression of emotions and other social cues

Organizational Communication ● The exchange of information among 2 or more individuals or groups in an organization that creates a common basis of understanding and feeling ● Downward ○ Higher level employee communicates to a lower level employee ● Upward ○ Lower level employee communicates to a higher level employee ● Horizontal ○ Employee communicates with others at the same organizational level ● Diagonal ○ Employees communicate across departments and levels ● formal-crisis communication ○ Official organization sanctioned communications ● informal ○ Any communication that is not official ● Social Networking: relationships among people connected through friendships, family or other ties

CHAP 10 The Nature of Conflict in Organizations ● Conflict ○ A disagreement through which 2 or more parties perceive a threat to their interests, needs or concerns ● Dysfunctional Conflict ○ Destructive conflict focused on emotions and differences between the 2 parties ● Constructive (functional) conflict ○ Adaptive, positive conflict ○ Balances the interests of both parties to maximize mutual gains and the attainment of mutual goals Causes/Types of Conflict ● Task conflict ○ Disagreement about the task or goals ● Process conflict ○ Disagreement about how to accomplish a task ● Relationship conflict

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○ Incompatibility between individuals or groups Conflicts of interest ○ Competition over resource constraints Values conflict ○ Arises from incompatible belief systems Information conflict ○ Occurs when people lack necessary information, are misinformed, interpret information differently or disagree about which information is relevant Task interdependence ○ One person or unit is dependent on another for resources or information Structural conflict ○ Results from structural or processes features of the organization

Conflict management strategies ● Collaborating ○ Desire to give both parties what they want. Reflects a high concern for your own interests and a high concern for the interests of the other party. The objective of collaboration is to fulfill both parties’ needs with a goal of “I win/ you win” ● Compromising ○ Each side sacrifices something in order to end the conflict. The middle ground style reflects a moderate concern for your own interests and a moderate concern for the interests of the other party. The goal of compromising is “I win some and lose some / you win some and lose some” ● Competing ○ Pursuing one’s own interest at the expense of the other party. A Conflict management style resulting from a high concern for your own interests and low concern for the other party. The goal of competing is “I win / you lose” ● Accommodating ○ A cooperative conflict management style. Reflects a low concern for your own interests and a high concern for the interests of the other party. The goal of accommodating is “I lose / you win” ● Avoiding ■ A passive conflict management style involving ignoring the conflict or denying that it exists. This style reflects a low concern for your own interests and a low concern for the interests of the other party. The goal of avoiding is “no winners / no losers” Negotiation ● A process in which 2 or more parties make offers, counteroffers and a concessions in order to reach an agreement Distributive negotiation ○ Any gain to one party is offset by an equivalent loss to the other party

Integrative negotiation ■ A win-win negotiation in which the agreement involves no loss to either party ○ 4 fundamental principles ■ Separate relationship issues (or “people problems”) from substantive issues (time, $, resources) ■ Focus on interests, not position -negotiate about the things people need, not the things they say they want ■ Look for new solutions to the problem that will allow both sides to win ■ Insist on outside, objective fairness criteria

Effective Negotiation ● Make sure each side knows other’s interests and perception of the issues ● Identify what you ...