MGMT 340 Exam 2 Notes PDF

Preview

Summary

Download MGMT 340 Exam 2 Notes PDF

Description

MGMT 340

Notes for Exam 2 Chapter 7 Motivation is the process that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Levels of motivation varies both between individuals and within individuals at different times. Two Factor Theory (also known as motivation-hygiene theory, but this term is not used much today)

Comparison of Satisfiers and Dissatisfiers

● ● ● ●

Intrinsic factors such as advancement, recognition, responsibility, and achievement seem related to job satisfaction. Extrinsic factors such as supervision, pay, company policies, and work conditions seem relaated to job dissatisfaction. The data suggest that the opposite of satisfaction is not dissatisfaction, as was truly believed. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Herzberg’s dual continuum: The opposite of “satisfaction” is “no satisfaction,” and the opposite of “dissatisfaction” (*instead of satisfaction and dissatisfaction being the opposite of eachother).

Self concordance is a more recent outgrowth of self-determination theory. Self concordance considers how strongly people’s reasons for pursuing goals are consistent with their interests and core values. OB research suggests that people who pursue work goals for intrinsic reasons are more satisfied with their jobs, feel they fit into their organizations better, and may perform better. Extrinsic reasons- (money,status, or other benefits)are less likely to attain goals and less happy even when they do. Because, the goals are less meaningful to them.

Self efficacy theory:

MGMT 340

An individual's belief that he or she is capable of performing a task. A.K.A Social cognitive theory, or Social learning theory. Researcher who developed self- efficacy theory, Albert Bandura, proposes four ways self- efficacy can be increased 1. Enactive Mastery- gaining relevant experience. 2. Vicarious Modeling- confident because you see someone else doing it. 3. Verbal Persuasion- more confident when someone convinces us. 4. Arousal- increases self-efficacy. “Psyched up” feel up to task. Perform better. But if it requires steady, lower-key perspective arousal may hurt performance. See page 220. Exhibit 7-5 Joint Effects of Goals and Self- Efficacy on performance.

Maslow’s Hierarchy of Needs hypothesizes that within every human being there is a hierarchy of five needs. Recently, a sixth need has been proposed for a highest level - intrinsic values - which is said to have originated from Maslow, but it has yet to gain widespread acceptance. The original five needs are: 1. Physiological. Includes hunger, thirst, shelter, sex, and other bodily needs. 2. Safety-security. Security and protection from physical and emotional harm. 3. Social-belongingness. Affection, belongingness, acceptance, and friendship. 4. Esteem. Internal factors such as self-respect, autonomy, and achievement, and external factors such as status, recognition, and attention. 5. Self-actualization. Drive to become what we are capable of becoming; includes growth, achieving our potential, and self-fulfillment. According to Maslow, as each need becomes substantially satisfied, the next one becomes dominant. So if you want to motivate someone, you need to understand what level of the hierarchy that person is currently on and focus on satisfying needs at or above that level. The textbook depicts the hierarchy as a pyramid since that is its best-known presentation, but Maslow referred to the needs only in terms of levels. Operant conditioning theory- most relevant component or reinforcement theory for management, people learn to behave to get something they want or avoid something they don't want. Operant behavior is influenced by the reinforcement or lack of reinforcement brought about by consequences. Reinforcement strengthens behavior & increases the likelihood it will be repeated. Pg 222 Equity Theory- A theory that says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. Outcomes- Pay, promotions, recognition, or a bigger office. Inputs- Effort, experience, & education. 1. Change inputs- (exert less effort if underpaid or more if overpaid). 2. Change outcomes- (individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of a lower quality). 3. Distort perceptions of self- (“ I used to think I worked at a moderate pace,but now I realized I work a lot harder than everyone else”). 4. Distort perceptions of others- (“ Mike’s job isn’t as desirable as I thought”). 5. Choose a different referent- (“I may not make as much money as my brother-in-law, but I’m doing a lot better than my dad did when he was my age”). 6. Leave the field- (quit the job). See page 224 Exhibit 7-6 Equity Theory

MGMT 340

Chapter 8 Extrinsic Motivation - Not on the exam Job Characteristics Model (JCM) describes jobs in terms of five core job dimensions: 1. Skill variety - the degree to which a job requires different activities using specialized skills and talents. The work of a garage owner-operator who does electrical repairs, rebuilds engines, does bodywork, and interacts with customers scores high on skill variety. The job of a body shop owner who sprays paint for 8 hours a day scores low on this dimension. 2. Task identity - the degree to which a job requires completion of a whole and identifiable piece of work. A cabinet maker who designs furniture, selects the wood, builds the objects, and finishes them has a job that scores high on task identity. A job scoring low on this dimension is operating a lathe solely to make table legs. 3. Task significance - the degree to which a job affects the lives or work of other people. The job of a nurse helping patients in a hospital intensive care unit scores high on task significance; sweeping floors in a hospital scores low. 4. Autonomy - the degree to which a job provides the worker freedom, independence, and discretion in scheduling work and determining the procedures for carrying it out. A sales manager who schedules his own work and tailors his sales approach for each customer without supervision has a highly autonomous job. An accountant representative who is required to follow a standardized sales script with potential customer has a job low on autonomy. 5. Feedback - the degree to which carrying out work activities generates direct and clear information about your own performance. A job with high feedback is testing and inspecting iPads. Installing components of iPads as they move down an assembly line provides low feedback. Job Rotation is the periodic shifting of an employee from one task to another with similar skill requirements at the same organizational level (also called cross-training). Manufacturers also use job rotation as needed to respond more flexibly to the volume of incoming orders. New managers are sometimes rotated through jobs to help them get a picture of a whole organization. ● Benefits of job rotation: ○ Increases job satisfaction and organizational commitment. ○ Associated with higher levels of organizational performance in manufacturing settings. ○ Reduces boredom, increases motivation, and helps employees understand how their work contributes to the organization. ○ Increases safety and reduces repetitive-based work injuries (debatable). ● Drawbacks of job rotation: ○ Work done repeatedly may become habitual and routine, which makes decision making more automatic and efficient, but less thoughtfully considered. ○ Training costs increase when each rotation necessitates a round of training. ○ Moving a worker into a new position reduces overall productivity for that role. ○ Job rotation creates disruptions when members of the work group have to adjust to new employees. ○ Supervisors may have to spend more time answering questions and monitoring the work of recently rotated employees.

MGMT 340

Job Enrichment - Not on the exam Job Sharing allows two or more individuals to split a traditional full-time job (such as morning and night shifts). Only 18% of U.S. organizations offered job sharing in 2014, a 29% decrease since 2008. Difficulty finding compatible job partners and their schedules and the historically negative perceptions of individuals not completely committed to their jobs and employers are reasons they were not more widely adopted. Job sharing, however, allows an organization to draw on the talents of more than one individual for a given job. It opens the opportunity to acquire skilled workers - for example: parents with young children and retirees - who might not be available on a full-time basis. From the employee’s perspective, job sharing can increase motivation and satisfaction. An employer's decision to use job sharing is often based on economics and national policy. In the U.S. part time employees can be less expensive than full time employees (excluding the cost of training, coordination, and administrative costs). The Affordable Care Act may create a financial incentive for companies to increase job-sharing arrangements in order to avoid the requirement to provide healthcare to full-time employees. In Germany (and Japan), job sharing kept employment levels from plummeting throughout the economic crisis. Forms of Representative Participation Representative participation redistributes power within an organization, putting labor’s interests on a more equal footing with the interests of management and stockholders by including a small group of employees as participants in decision making. The two most common forms of representation are: ● Work councils are groups of nominated elected employees who must be consulted when management makes decisions about employees. ● Board representatives are employees who sit on a company’s board of directors and represent employees’ interests. Variable-Pay Program bases a portion of an employee’s pay on some individual and/or organizational measure of performance. These include piece-rate, merit-based, bonus, profit-sharing, and employee stock ownership. (continue later…) Bonus An annual bonus is a significant component of total compensation for many jobs. Once reserved for upper management, bonus plans are not routinely offered to employees in all levels of the organization. The incentive effects should be higher than those of merit pay because rather than paying for previous performance now rolled into base pay, bonuses reward recent performance (merit pay is cumulative, but the increases are generally much smaller than bonus amounts). When times are bad, firms can cut bonuses to reduce compensation costs. ● Upsides of bonuses: They are motivating for workers. A study in India found that when a higher percentage of overall pay was reserved for the potential bonuses of managers and employees, productivity increased. ● Downsides of bonuses: They leave employees’ pay more vulnerable to cuts. This is problematic especially when employees depend on bonuses or take them for granted. ○ “People have begun to live as if bonuses were not bonuses at all but part of their expected annual income.” - Jay Lorsch, Harvard Business School professor ○ Combining yearly bonuses with a smaller merit-pay raise changes the culture from “entitlement to meritocracy.” - Elaine Weinstein, KeySpan’s senior vice president of HR

MGMT 340

Although it is a bit manipulative, splitting rewards and bonuses into categories - even if the categories are meaningless - may increase motivation. Why? Because people are more likely to feel they missed out on a reward if they don’t receive one from each category, and then work harder to earn rewards from more categories. Employee’s Stock Ownership Plan (ESOP) is a company-established benefit plan in which employees acquire stock, often at below-market prices, as part of their benefits. Research on ESOPs indicates they increase employee satisfaction and innovation and have the potential to increase job satisfaction only when employees psychologically experience ownership. ESOPs may not inspire lower absenteeism or greater motivation, perhaps because the employee’s actual monetary benefit comes with cashing in the stock at a later date. Thus, employees need to be kept regularly informed of the status of the business and have the opportunity to positively influence it in order to feel motivated toward higher personal performance. ESOPs for top management can reduce unethical behavior. For instance, CEOs are less likely to manipulate firm earnings reports to make themselves look good in the short run when they have an ownership share. Of course, not all companies want ESOPs, and they won’t work in all situations, but they can be an important part of an organization’s motivational strategy. Modular Plan - Not on the exam

Chapter 9 Groups are two or more individuals, interacting and interdependent, who have come together to achieve particular objectives. There are two types of groups: ● Formal groups are defined by the organization’s structure, with designated work assignments and established tasks. In formal groups, the behaviors team members should engage in are stipulated by and directed toward organizational goals. The six members of an airline flight crew are a formal group, for example. ● Informal groups are neither formally structured nor organizationally determined. Informal groups in the work environment meet the need for social contact. Three employees from different departments who regularly have lunch or coffee together are an informal group. These types of interactions among individuals, though informal, deeply affect their behavior and performance. Social Identity Theory Our tendency to personally invest in the accomplishments of a group is the territory of social identity theory. This theory proposes that people have emotional reactions to the failure or success of their group because their self-esteem gets tied to whatever happens to the group. When your group does well, you bask in reflected glory, and your own self-esteem rises. When your group does poorly, you might feel bad about yourself, or you might reject that part of your identity like “fair-weather fans.” Within our organizations and workgroups, we can develop many identities through: 1. Relational identification, when we connect with others because of our roles. 2. Collective identification, when we connect with the aggregate characteristics of our groups.

MGMT 340

Distinctiveness - Not on the exam 5 Stage Group Development Model (2 questions) - Not on the exam Punctuated Equilibrium Model (2 questions)

Temporary groups with finite deadlines pass through a unique sequencing of actions (or inaction): put more details later... 1. Their first meeting sets the group’s direction. 2. The first phase of group activity is one of inertia and thus slower progress. 3. A transition takes place exactly when the group has used up half of its allotted time. 4. This transition initiates major changes. 5. A second phase of inertia follows the transition. 6. The group’s last meeting is characterized by markedly accelerated activity. Norms are acceptable standards of behavior shared by members that express what they ought and ought not to do under certain circumstances. It’s not enough for group leaders to share their opinions even if members adopt the leader's’ views, the effect may last only 3 days. When agreed to by the group, norms influence behavior with a minimum of external controls. Different groups, communities, and societies have different norms, but they all have them. The Levels of Influence Norms Can Exert Over Us (put more details later) ● Norms and Emotions ● Norms and Conformity ● Norms and Behavior ● Positive Norms and Group Outcomes ● Negative Norms and Group Outcomes ● Norms and Culture Reference Groups Individuals do not conform to the pressures of all groups to which they belong. People belong to many groups, and their norms vary and sometimes are contradictory. Reference groups are important groups to which individuals belong or hope to belong and with whose norms individuals are likely to conform.

MGMT 340

Social Loafing is the tendency for individuals to expend less effort when working collectively than when alone. Social loafing directly challenges the assumption that the productivity of the group as a whole should at least equal the sum of the productivity of the individuals in it, no matter what the group size. ➢ Causes of Social Loafing ○ “Free riding” is not social loafing. The group must believe the social loafer is acting in an exploitive manner (benefitting at the expense of other team members). ○ Diffusion of responsibility - The relationship between an individual’s input and the group’s output is clouded because group results cannot be attributed to any single person. Individuals may then be tempted to become free riders and coast on the group’s efforts. Greater performance diversity creates greater social loafing the longer a group is together, which decreases satisfaction and performance. Social loafing appears to have a Western Bias. It’s consistent with individualist cultures, such as the U.S. and Canada, that are dominated by self-interest. It is not consistent with collectivist societies, in which individuals are motivated by group goals. Example: China and Israel (both collectivist societies) showed no propensity to engage in social loafing and actually performed better in a group than alone. The stronger an individual’s work ethic is, the less likely that person is to engage in social loafing. The level of conscientiousness and agreeableness in a group, the more likely that performance will remain high whether there is social loafing or not. ➢ Ways to Prevent Social Loafing ○ Set group goals, so the group has a common purpose to strive toward. ○ Increase intergroup competition, which focuses on the shared group outcome. ○ Engage in peer evaluations. ○ Select member who have high motivation and prefer to work in groups. ○ Base group rewards in part on each member’s unique contributions. ○ Publicly posting individual performance ratings for group members. Diversity is the degree to which members of the group are similar to, or different from, one another. (add more later)

Chapter 10 Workgroups are groups that interact primarily to share information and make decisions to help each member perform within his or her area of responsibility. Workgroups have no need or opportunity to engage in collective work with joint effort, so the group’s performance is merely the summation of each member’s individual contribution. There is no positive synergy that would create an overall level of performance greater than the sum of the inputs. A workgroup is a collection of individuals doing their work, albeit with interaction and/or dependency. Self Managed Work Teams are groups of employees (typically 10 - 15) who perform highly related or interdependent jobs; these teams take on some supervisory responsibilities. Typically, the responsibilities include planning and scheduling work, assigning tasks to members, making operating decisions, taking action on problems, and working with suppliers and customers. Fully self-managed

MGMT 340

work teams even select their own members who evaluate each other’s performance. When these teams are established, former supervisory positions take on decreased importance and are sometimes eliminated. Research Findings on Self-Managed Work Teams 1. The effectiveness of self-managed work teams have not been uniformly positive. Some research indicates that self-managed teams may be more or less effective based on the degree to which team-promoting behaviors are rewarded. For example, one study of 45 self-managing teams found that when team members perceived that economic rewards such as pay were dependent on input from their teammates, performance improved for both individuals and the team as a whole. 2. Self-managed teams are not effective when there is conflict. When disputes arise, members often stop cooperating and power struggles ensue, which lead to lower group performance. However, other research ...