MAN 3025 Study Guide for Exam 1 PDF

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MAN 3025 Management of Organizations Study Guide for Exam 1 (Chapters 1 – 4)

Chapter 1: Introduction to Management Today’s Workplace  Talent 

Employees are an organizations backbone

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Intellectual capital- the total sum of a workforce’s knowledge and ability that can be used for the organization’s benefit.

 Diversity 

Work force diversity definition: creating and maintain a workforce that is represented by groups of people of different age groups, ethnicities, genders, races, religions, and sexual orientations.

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Prejudice definition: having preconceived unreasonable attitudes regarding: 1. Members of a certain demographic population 2. Race 3. Gender 4. Age

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Discrimination definition: when members of a particular group are given substandard and unfair treatment

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Glass ceiling effect: an unseen barrier that stops minority groups and women from attaining high positions in organizations

 Globalization

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Globalization definition: the process by which different countries and regions have become interdependent in regard to resources, markets, and competition

 Ethics 

Ethics definition: a moral philosophy that differentiates between what is “right” and what Is “wrong” in the actions of an organization or individual

 Organizational Performance

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Performance efficiency definition: a measure of input that describes how well resources were used in completing an objective

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Performance effectiveness definition: a measure of output in the form of a goal or objective

 Managers in the Workplace 

Manager duties: supervise employees, and act as driving force to direct and enhance the performance of other workers

 Levels of Managers 1. Supervisor: on the front lines, in charge of managing employees 2. Middle managers: monitor and lead large divisions that are made up of numerous smaller business units 3. Top managers: in charge of leading and managing either the whole organization or a larger part of it  Types of Managers 1. Staff Managers: support the line workers with certain technical skills 2. Functional Managers: have expertise in a single area (production, sales, human resources, accounting, or marketing) 3. General Managers: have an area of responsibility that encompasses many of the above functional areas  The Management Process 

There are four main functions of management: 1. Planning: the psychological process of determining appropriate activities that achieve the objectives and goals of the organization. 2. Organizing: process of coordinating financial, physical, and human resources to accomplish the plan in place

3. Leading: motivating others to accomplish goals and objectives by fostering enthusiasm and dedication 4. Controlling: keeping track of performance and taking corrective action if the expected outcomes are not reached  Managerial Roles A. Interpersonal Roles definition: the way a manager communicates with others, both inside and outside of the work unit 1. Leader 2. Figurehead 3. Liaison B. Informational Roles definition: the way a manager analyzes and passes on information 1. Disseminator 2. Spokesperson 3. Monitor C. Decisional Roles definition: the way a manager utilizes information when making a decision; the manager will attempt to solve problems and take advantage of opportunities 1. Resource Allocator 2. Disturbance Handler 3. Negotiator 4. Entrepreneur  Managerial Agendas and Networks 

Networking creates good relationships with many acquaintances and associates both inside and outside of the firm

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Social capital is the ability to utilize one’s network connections and relationships to accomplish goals

 Essential Managerial Skills 

A skill is an ability or proficiency that comes from one’s knowledge or training. 1. Technical Skills: special knowledge or expertise that allows a person to operate in a specialized field.

2. Human Skills: a person’s social ability and the capacity to work well with others. -

Emotional Intelligence: ability to manage ourselves and our relations effectively.

3. Conceptual Skills: allow a manager to think about and analyze complex or abstract situations.

Chapter 2: Management Approaches From Past to Present  Classical Management Approaches (Humans are rational) 1. Bureaucratic Organization  Max Weber’s Theory  An organizational structure that has a specific hierarchy of authority, defined division of labor, clear rules and procedures on performance and behavior, impersonal relationships, merit based career advancement 2. Scientific Management  Frederick Taylor i. Every employee does assigned tasks in the most efficient way ii. According to motion study, employees break down tasks into its fundamental activities. Analyze these activities and create standard operating procedures  Frank and Lilian Gilberth i. 4 basic elements – break down tasks into its essential components, select workers that have the right attributes and skillset for the job, effectively train workers and provide incentives, and management should provide assistance and direction. 3. Administrative Principles  Henry Fayol  Management can be taught  5 main duties: foresight, command, organization, coordination, control  Behavioral Approaches to Management 1. Hawthorne Studies  Elton Mayo  Results of these studies indicated that workers under scrutiny showed increased performance. Since the group of workers were given special

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attention, they improved their performance. This is known as Hawthrone effect. These studies helped to start organizational behavior, and human relations movement.

2. Follett’s Organizations as Communities  Mary Parker Follett  Managers are responsible to facilitate cooperation between organization’s members and clear communication between managers and employees would help to solve problems. 3. Argyris’s Theory of Adult Personality  Chris Argyris  Treating employees like responsible adults = highest level of productivity  Poor management results in employee related problems 4. Theory X and Theory Y  Douglas McGregor  Self-actualization and the importance of social relationships at work i. Theory X and Theory Y are opposites where theory x includes negative characteristics such as lazy worker, unmotivated, irresponsible; and theory y includes positive characteristics such as creative, willing to work, responsible, self-directed  Self- fulfilling prophecy: when one person’s expectations cause another person to act as originally expected.  Modern Management Foundations o Operations Management: the way goods and services are renders and attempts to improve the process. Each subsystem (smaller coordinated parts, for e.g., finance department) must be functioning well and coordinating well with other subsystems for an organization to be effective. o Operations research:  Inventory Analysis: keeps inventory costs as low as possible  Mathematical Forecasting: helps predict future sales  Queuing Theory: helps allocate employees  Network Models: Reduce task, organize, and develop completion timeline o Contingency Thinking

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Utilizing different management approaches when the situation calls for it. No “one size fits all”. High uncertainty conditions require flexible, more information organizational structure with open lines of communication. Low uncertainty conditions require highly efficient and streamlined structure such as Weber’s bureaucracy.

o Total Quality Management (TQM)  Deming and Juran  Constant improvement in all aspects, effective employee training, and use of quantitative analysis  Knowledge Management: using information to gain an edge over the competition by cultivating, refusing, and sharing.  Learning Organizations (Peter Senge) o System’s Thinking: become aware of how the organization functions o Mental Models: abandon the previous ways of thinking o Personal Mastery: devoted to learning o Shared Vision: members agree on a vision to pursue o Team Learning: align and act together to attain that vision  Evidence Based Management: Uses actual scientific data and information on which approaches really work to make management decisions o Scientific methods: observation of problem  generate hypotheses  create well-design studies  analyze the data and draw conclusions  choose to accept or reject the hypothesis.

Chapter 3: Motivation  Motivation: “to move”; initiating a behavior towards a set goal. Motivation at work is important to accomplish organization’s goal(s).  Satisfaction: Condition of need fulfilment  Need Theories: Understanding what a person wants/ needs and what they will do to satisfy need(s). 1. Maslow’s Hierarchy: humans have 5 needs (from lowest to highest)  Physiological – food, water, rest  Security – safety

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Social – social relationships, friends, intimate relationships Esteem – respect and recognition, accomplishments Self-actualization – achieving one’s full potential, personal/professional growth

2. Alderfer’s take on Motivation (ERG theory)  Existence – basic and material needs  Relatedness – interaction with others  Growth – highest form (two forms: external esteem and internal esteem)  Frustration regression principle – a person would regress or go to a lower order need if that person is frustrated. 3. McClelland’s Manifest Needs  Need for Power (nPOW)  Need for Affiliation (nAFF)  Need for Achievement (nACH) 4. Achievement motivation = need for achievement – fear of failure  A person high in nACH may desire challenges but may not act upon it if the fear of failure is higher.  Process Theories: Define the terms of a rational cognitive process 1. Expectancy theory  Expectancy: person’s efforts will lead to performance  Instrumentality: if you do perform, you will be rewarded  Valence: degree to which the reward is valuable to you 2. Adam’s Equity theory: balance of fairness based on inputs and outputs  Work inputs – e.g., time, talent, efforts, etc.  Workplace outcomes – e.g., pay, bonuses, benefits, etc.  Referents – others we compare ourselves to 3. The Caustic Effects of Unfairness  Procedural justice: process of allocating reward or punitive measures is just  Distributed justice: unfair distribution of resources  Interactional justice: sense of fair treatment in communication process

4. Two-Factor Theory (Motivator-Hygiene Theory) (Herzberg)  Hygiene factors – extrinsic to job, lead to dissatisfaction  Motivating factors – intrinsic to job, create satisfaction  Lessons highlighted on slide 14  Learning Theories 1. Classical conditioning (Pavlov)  Conditioned response: when one event automatically triggers a fixed response 2. Operant conditioning (Skinner)  Law of effect: behaviors that are rewarded will tend to be repeated  Shaping behavior: rewarding incremental changes in behavior 3. Reinforcement schedules  Positive reinforcement: adding a stimulus to increase the desired behavior. E.g., mother gives her daughter a candy for doing her homework.  Negative reinforcement: removing a stimulus to increase the desired behavior. E.g., Erin takes a shower to remove the bad smell from his body  Positive punishment: adding a stimulus to decrease an undesired behavior. E.g., Tom was assigned additional assignment for coming late to class.  Negative punishment: removing a stimulus to decrease an undesired behavior. E.g., Jack was grounded for talking back to his mother. 4. Goal setting and management by objectives (Latham and Locke)  Goal setting: goals are energizing, encourage key and relevant learning outcomes, and stimulate strategic thinking  Management by objectives: systematic and organized approach that aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization.  Job Characteristics Model (Hackman and Oldham) – model includes:  Five core job characteristics: skill variety, task identify, task significance, autonomy, and feedback  Three physiological states  Six affective outcomes

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Motivating potential score (MPS) = (skill variety + task identity + task significance) / 3 * (autonomy) * (feedback)

Chapter 4: Foundations of Behavior Perception: Process of receiving and interpreting environmental stimuli. Perceptual process: 3 main components: 1- Sensation- using our senses of sight, smell, taste, touch and hearing 2- Attention- paying attention to the environmental stimuli that interest us. a. How? i. Size – the larger an object is, the more likely it is to be perceived ii. Intensity- The greater the intensity of a stimulus, the more likely it is to be noticed. Example: a loud noise. iii. Frequency- The greater the frequency a stimulus is presented, the more likely you will notice it. Example: repetition. iv. Contrast- stimuli that are different by color, size stand out. v. Motion- stimuli that are moving stand out. vi. Novelty (new) - unique or new stimuli are noticed. 3. Perception- involves organizing and interpreting the sensations we attend to Perceptual inferences- This occurs when we tend to categorize people using limited pieces of information and then act on this information. Perceptual organization- The process of grouping environmental stimuli into recognizable patterns. Principles of Perceptual organization: Figure-ground- People tend to perceive objects that stand against a background 3 main aspects: 1- Similarity - Stimuli that have common physical traits 2- Proximity- Stimuli that occur in the same proximity

3- Closure- Since most of the stimuli we perceive are incomplete, we naturally tend to extrapolate information and project additional information to form a complete picture. Cognitive complexity- Occurs when we have complex thinking and reasoning structures, we are able to perceive small differences in what we see. Perceptual errors: 1. Halo effect- refers to the tendency to allow one personality trait to influence our perceptions of other traits. 2. Selective perception - The process of systematically screening out information we do not wish to hear. 3. Implicit personality theories- Based on our interactions with many people, we create our own system of personality profiles and use them to categorize new acquaintances. 4. Projection- The tendency to attribute our own feelings and characteristics to others. 5. First impressions- The tendency to attribute our own feelings and characteristics to others. Allowing first impressions to have a disproportionate and lasting influence on later evaluations is known as the primacy effect. 6. Stereotyping- categorizing individuals based on one or two traits, and attributing other characteristics to them based on their membership in that category. Discrimination and Prejudice Illegal discrimination on the basis of race, religion, or sex Perceptual tendencies related to discrimination and prejudice: 1. Visibility (When a small percent of the group belong to a particular category, these individuals are more visible.) 2. Contrast (When one or more individuals who are different are added to a group, their presence creates a self-consciousness among the dominant group about what makes them a separate class.) 3. Assimilation (the application of stereotypes and familiar generalizations about a person’s social category) Self-fulfilling prophecy (also called the Pygmalion effect)

Explains how the expectations in the mind of one person about how others should behave are communicated in a variety of ways, until these individuals actually behave in the way expected. Occurs due to output expected, reinforcement and feedback. Personality- Personality traits refer to enduring characteristics that describe an individual’s attitudes and behavior. Fundamental Attribution error- The tendency to overestimate the influence of personality in understanding human behavior. Attribution theory- The assignment of responsibility and the cognitive processes we use to understand why people act as they do are known. Why and how is attribution theory relevant? 1.

When we explain our own behavior, we tend to overestimate the importance of the situation and underestimate our own personality characteristics. 2. When we observe someone else’s behavior, we tend to overestimate the influence of personality traits and underestimate situational influences. 3. As we observe others in casual situations, we tend to attribute their successes to personality traits, such as effort and ability, and their failures to external factors, such as the difficulty of the task. 4. In evaluating the performance of employees, poor performance is generally attributed to internal personal factors, especially when the consequences are serious. 5. Employees tend to attribute their successes to internal factors and their failures to external causes. Big Five Personality Model 1. 2. 3. 4. 5.

Conscientiousness Agreeableness Emotional stability Openness to experience Extroversion

Locus of control - Employees tend to attribute their successes to internal factors and their failures to external causes. Internal/ external Self- Esteem

Self-Efficacy- Self-efficacy refers to one’s belief in one’s capability to perform a specific task. Based on Magnitude Strength and Generality Attitudes- The positive or negative feelings we hold toward an object. 3 main components: cognitive, affective, behavioral tendency Emotions Emotional intelligence-Self-awareness: Self-awareness refers to understanding our own emotions as well as our strengths, weaknesses, values, and motives. Selfmanagement: Self-management represents how consistently we control our internal feelings, impulses, and reactions. Social awareness: Social awareness is mainly about empathy, which involves understanding another person’s situation, experiencing the other person’s emotions, and knowing that person’s needs even though they are unstated. Relationship management: This dimension refers to managing other people’s emotions. Job Satisfaction- Attitudes employees hold regarding factors in their work environment, particularly pay and benefits, the characteristics of the job, supervision, fellow workers, and opportunities for advancement. Problems: Attendance- absenteeism and tardiness, turnover, mental and physical health, job involvement. Organizational Commitment: Normative, Affective, Continuance Commitment...