Organizational Theory and Behavior

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1 Organizational Theory and Behavior Managerial roles: Interpersonal, Informational, Decisional Managerial activities: traditional management (decision making, planning, controlling), Communication, human resource management (motivating, disciplining, managing conflict, staffing, training), networking (socializing, politicking) Organizational Behavior: a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization s effectiveness Attitude components: Cognitive a description of or belief in the way things are My pay is low Affective the emotional or feeling segment of an attitude I am angry over how little I am paid Behavioral describes an intention to behave in a certain way toward someone/thing I am going to look for another job that pays better Job satisfaction a positive feeling about one s job resulting from an evaluation of its characteristics. Closely related is employee engagement. Think autonomy, mastery, purpose (here, here) Responses to dissatisfaction Myers-Briggs Type Indicator (MBTI): the most widely-used personality-assessment tool in the world Extraverted (E) or Introverted (I) Sensing (S) or Intuitive (N) sensing is practical and prefers routine/order Thinking (T) or Feeling (F) thinking use reason/logic; feeling rely on values/emotions Judging (J) or Perceiving (P) judging wants control; perceiving are flexible The Big Five Personality Model: Extraversion sociable, gregarious, assertive Agreeableness good natured, cooperative, trusting Conscientiousness responsible, dependable, persistent, organized Emotional stability calm, self-confident, secure Openness to experience imagination, sensitivity, curiosity

2 Machiavellianism if it works, use it ; high Machs manipulate more, win more, are persuaded less, and persuade others more than do low Machs; pragmatic, maintain emotional distance Hofstede s five value dimensions of national culture: Power distance describes the extent to which a society accepts that power in institutions and organizations is distributed unequally Individualism describes the degree to which people prefer to act as individuals rather than as members of a group Masculinity describes the extent to which the culture favors traditional masculine work roles of achievement, power, and control Uncertainty avoidance describes the extent to which a society feels threatened by uncertain and ambiguous situations and tried to avoid them Long-term orientation emphasizes the future, thrift, and persistence Attribution theory an attempt to determine whether an individual s behavior is internally or externally caused. Requires observation of the behavior, interpreted through the lens of: distinctivenss, consensus, and consistency. We then attempt to determine if internally or externally caused. Internal is under control of individual; external is not under individual control. Common shortcuts in judging others: Selective perception Halo effect Contrast effects Stereotyping Biases and Errors in Decision Making: Overconfidence bias Anchoring bias fixate on initial info, fail to adjust for subsequent info Confirmation bias seek out info to reaffirm past choices, discounts contradictory info Availability bias tendency to base judgments on info that is readily available Escalation of commitment stay with a decision in spite of evidence it is wrong Randomness error belief we can predict outcomes Risk aversion a tendency to prefer a sure thing over a risky outcome Hindsight bias false belief we would predict correct outcome after outcome is known 3-component model of creativity: Expertise Creative thinking skills see the familiar in a different light Intrinsic task motivation Motivation: intensity, direction, and persistence of effort toward attaining a goal Maslow s Hierarchy of Needs

3 1. Physiological. Includes hunger, thirst, shelter, sex, and other bodily needs. 2. Safety. Security and protection from physical and emotional harm. 3. Social. 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. McClellan s Theory of Needs: Need for Achievement the drive to excel, to achieve in relationship to a standard Need for Power the need to make others behave in a way they would not have otherwise Need for Affiliation the desire for friendly and close interpersonal relationships Self-Determination Theory: people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation. Cognitive Evaluation Theory: extrinsic rewards will reduce intrinsic interest in a task if the rewards are seen as controlling (a version of self-determination theory) Employee engagement the investment of an employee s physical, cognitive, and emotional energies into job performance. Actively disengaged 23%, disengaged 35%, engaged 25%, actively engaged 22% Goal-setting theory: specific and difficult goals, with feedback, lead to higher performance Management by objectives (participatively set goals) Equity Theory (Organizational Justice): individuals compare their job inputs and outcomes with those of others and then respond to eliminate inequities (change inputs, outcomes, distort perceptions of self or others, choose a different referent, quit). Referent comparisons are: self-inside, self-outside, other-inside, otheroutside Chapter 9 Five-stage group-development model: the five distinct stages groups go through: forming, storming, norming, performing, and adjourning. Forming stage: the first stage in group development, characterized by much uncertainty. Storming stage: the second stage in group development, characterized by intragroup conflict.

4 Norming stage: the third stage in group development, characterized by close relationships and cohesiveness. Performing stage: the fourth stage in group development, during which the group is fully functional. Adjourning stage: the final stage in group development for temporary groups, characterized by concern with wrapping up activities rather than task performance. Punctuated-equilibrium model: a set of phases that temporary groups go through that involves transitions between inertia and activity inertia and activity. Psychological contract: an unwritten agreement that sets out what management expects from an employee and vice versa. Role conflict: a situation in which an individual is confronted by divergent role expectations.. Deviant workplace behavior: antisocial behavior or workplace incivility. Nominal Group Technique: A group decision making method in which individual members meet face to face to pool their judgments in a systematic but independent fashion this was also discussed in Chapter 2 of our Strategy book. Status characteristics theory: a theory that states that differences in status characteristics create status hierarchies within groups. Social loafing: the tendency for individuals to expend less effort when working collectively than when working individually. Groupthink: a phenomenon in which the norm for consensus overrides the realistic appraisal of alternative courses of action. Groupshift: a change in decision risk between a group s decision and an individual decision that a member within the group would make; the shift can be toward either conservatism or greater risk. Chapter 10 What are some different types of teams that you could use? Problem-solving teams Groups of 5 to 12 employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment. Self-managed work teams groups of 10 to 15 people who take on responsibilities of their former supervisors. Cross-functional teams employees from about the same hierarchical level, but from different work areas, who come together to accomplish a task Virtual teams teams that use computer technology to tie together physically dispersed members in order to achieve a common goal.

5 Chapter 11 Channel Richness: The amount of information that can be transmitted during a communication episode. Formal Small Group Networks: a. Chain follows a rigid chain of command b. Wheel relied on a single individual to act as the conduit for all the group s communication (depends on a strong leader) c. All Channel permits all group member to actively communicate with each other

6 High Context Cultures: Rely heavily on nonverbal and subtle situational cues in communication Low Context Cultures: Rely heavily on words to convey meaning in communication Chapter 12 Leadership: the ability to influence a group toward achievement of a vision or set of goals Employee Oriented Leader: A leader who emphasizes interpersonal relations, takes personal interest in the needs of employees, and accepts individual differences among members Production-Oriented Leader: A leader who emphasizes technical or task aspects of the job.

7 Attributional theor of leadership: leadership is merely an attribution people make about other individuals. If we have it in our heads that someone s a great leader, we re less inclined to blame the leader when things go bad. Chapter 13 Power tactics: ways in which people translate power bases into specific actions. Downward influence applies to subordinates, whereas lateral influence applies to those of equal rank or authority. Upward influence applies to those who are in superior positions.

8 Chapter 14 Distributive Bargaining: negotiation that seeks to divide up a fixed amount of resources; a win-lose situation. Integrative Bargaining: negotiation that seeks one or more settlements that can create a win-win solution. Functional Conflict: Conflict that supports the goals of the group and improves its performance. Interactionist View of Conflict: the belief that conflict is important for groups to perform effective. Dysfunctional Conflict: conflict that hinders group performance such as task, relationship, and process conflicts. Chapter 15 Span of Control: The number of subordinates a manager can efficiently and effectively direct. To cut costs, firms have trended toward wider span of control (less managers), but make up for lack of manager control by investing in subordinate training (so they don t need as much supervision and for productivity sake). Centralization: The degree to which decision making is concentrated at a single point in an organization. Matrix structure: Employees in the matrix structure have 2 bosses: their functional department manager and product manager. Hospitals have this structure. Virtual Organization: A small, core organization that outsources major business functions. Mechanistic Model (military): a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. Organic Model: A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

9 Chapter 16 Organiational Culture: A system of shared meaning held by members that distinguishes the organization from other organizations. Strong Culture: Is one in which the core values are intensely held and widely shared. Organizational Climate: the shared perceptions organizational members have about their organization and work environment. Institutionalization: A condition that occurs when an organization takes on a life of its own, apart from any of its members, and acquires immortality. Socialization: A process that adapts employees to the organization s culture. Prearrival Stage: The period of learning in the socialization process that occurs before a new employee joins the organization. Encounter Stage: The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. Metamorphosis: The stage in the socialization process in which a new employee changes and adjusts to the job, work group, and organization. Rituals: repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable. Material Symbols: what conveys to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate. Workplace Spirituality: organizations that promote a spiritual culture recognize that people seek to find meaning and purpose in their work and desire to connect with other human beings as part of a community.

10 Chapter 17 Chapter 18 Change Agents: Persons who act as catalysts and assume the responsibility for managing change activities.

11 Unfreezing: Changing to overcome the pressures of both individual resistance and group conformity. Movement: A change process that transforms the organization from the status quo to a desired end state. Refreezing: Stabilizing a change intervention by balancing driving and restraining forces. Team building: High interaction among team members to increase trust and openness. Action Research: A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate. Organization Development: Organization programs that seeks to foster respect for people, trust and support, power equalization (egalitarian), conflict resolution, and participation. Survey Feedback: the use of questionnaires to identify discrepancies among member perceptions; discussion follows, and suggested (military does this approach). Idea Champions: Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented. Learning Organization: An organization that has developed the continuous capacity to adapt and change. Single Loop Learning: A process of correcting errors using past routines and present policies. Double Loop Learning: A process of correcting errors by modifying the organizations objectives, policies, and standard routines.

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