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| Question | Answer |
| Organizational theory | The study of how organizations function and how they affect and are affected by the environment in which they operate |
| Organizational structure | The formal system of task and authority relationships that controls how people are to cooperate and use resources to achieve the organization's goals |
| Organizational design and change | The process by which managers select and manage various dimensions and components of organizational structure and culture so that an organization can control the activities necessary to achieve its goals |
| Organizational culture | the set of shared values and norms that controls organizational members' interactions with each other and with people outside the organization |
| Organizational behavior | interdisciplinary field dedicated to better understanding and managing people at work |
| History of organizational behavior (4) | - Human relations movement (1930s) - The quality movement (1980s) - The Internet and social media revolution (1990s) - Human and social capital (1990s) |
| Human relations movement (1930s) | Inspired by legalization of union. Hawthorne Studies of supportive management. McGregor's Theory X and Y (1960): - X: people dislike work and want to avoid it. - Y. work is a natural activity. Rewards help commitment... |
| Quality movement (1980s) | organizational culture dedicated to training, improvement and consumer satisfaction (Total Quality Movement). Do it right the first time to eliminate costly work. |
| Internet and social media rev. (1990s). | Running businesses via Internet. Implications: faster, consumers demand more, more potential for damage |
| Human and social capital (1990s) | Human capital: productive potential of an individual's knowledge and actions. *Mitre corporation Social capital: productive potential resulting from strong relationships, goodwill, trust and cooperative effort. *'Nerd lunches' |
| Management | Working with and through others to achieve organizational objectives |
| Skills of an effective manager | One size does NOT fit all |
| Ethics challenge | Scandals (accounting fraud, IR fixing, poor working conditions...) How to improve the ethical climate: behave ethically yourself, screen potential employees, develop a meaningful code of ethics, provide ethics training, reinforce ethical training, create positions to deal with ethics. |
| Approaches to learn about OB (3) | - Theory - Research - Practice = Contingency approach |
| Diversity | Multitude of individual differences and similarities among people. |
| Layers of diversity (4) | - Personality - Internal dimensions (age, gender, race) - External dimensions (income, marital status, appearance) - Organizational dimensions (work location, union affiliation...) |
| Affirmative action | to achieve equality of opportunity in an organization. Correct imbalance, injustice, mistake... *Dean of Harvard Business school |
| Managing diversity | Enabling people to perform up to their maximum potential. Focuses on changing org.'s culture and infrastructure to provide highest productivity possible |
| Workforce demographics | Statistical profiles of the characteristics and composition of the adult working population |
| (Breaking) the glass ceiling | Absolute barrier that prevents women from advancing to higher-level positions |
| Pros and cons of diverse work environments (3) | - Social categorization theory. Similarities and differences used to categorize self and others into groups. - Information/decision-making theory: diverse groups should outperform homogenous groups. - Demographic fault line: hypothetical lines that split a group into subgroups based on attributes. |
| Layers of organizational culture | - Observable artifacts: physical manifestations - Espoused values:values and norms - Basic assumptions: organizational values that are taken for granted |
| Organizational socialization | process by which a person learns values, norms and required behaviors. *Model by Zappos |
| Model or organizational socialization | |
| Mentoring | process of forming and maintaining developmental relationships between a mentor and a junior person |
| Common denominators of an organization (4) - Structure | - Coordination of effort - Common goal - division of labour - hierarchy of authority |
| Unity of command principle | each employee should report to a single manager. Otherwise, inefficiency |
| Organizational chart | Graphic representation of formal authority and division of labor |
| Dimensions of organizational chart (4) | - Hierarchy of authority (tall org. / flat org.) - Spans of control (n. people reporting directly to manager - narrow span / wiser span) - Division of labor (line and staff positions) - Open system perspective (Closed system/open system) |
| Learning organization | proactively creates, acquired and transfers knowledge and changes its behavior on the basis of new knowledge and insights. Learning from failure. |
| Team mental mode | represents team members' shared, organized understanding and mental representation of knowledge about their environment |
| Organizational design | process by which managers select and manage various dimensions and components of organizational structure and culture so that an organization can control the activities necessary to achieve its goals. |
| Traditional designs (3) | - Functional organization: according to business functions. e.g. manufacturing, marketing, finance. - Divisional organization:related to outputs e.g. type of product, customer or location - Matrix organization: combines functional and divisional chains of command to form a grid with two command structures |
| Contemporary designs (4) | - Horizontal organization - Hollow organization - Modular organization - Virtual organization |
| Contingency approach to designing organizations | Organizations tend to be more effective when they are structured to fit their demands. Open-system perspective. Approach emphasizes situational appropriateness |
| Mechanistic vs. organic organizations | Mechanistic: rigid bureaucracies, strict rules, top-down communication, centralized structure, large, efficiency strategy... Organic: flexible, variety of tasks, decentralized structure, teamwork, small size, innovation strategy... |
| How to achieve organizational effectiveness (4) | - Goal accomplishment - Resource acquisition - Internal processes: smooth functioning - Strategic constituencies satisfaction = appropriate fit between internal structure and salient features of environment |
| External environmental organizations | Actual organizations, groups and persons with whom an organization interacts and conducts business. |
| Environmental uncertainty | Combination of change and complexity. - Low uncertainty. - Low-moderate uncertainty - High-moderate uncertainty - High uncertainty |
| Competitive advantage | core competency that sets an org apart from competitors and gives it an advantage in the marketplace |
| * Apple | Uncertain but innovative, much outsourcing. Horizontal structure and hollow design. |
| Evolution of Org Theory and Design (3) | - Classical theories (1900-1930s) - Neoclassical theories (20s-40s) -Environmental theories (50s-70s) |
| Classical theories (1900-1930s) | Organization as a machine. There is a best way to perform tasks. Workers are means of production. Tall hierarchy, narrow span of control, close control over subordinates. |
| Parts of classical theories (3) | - Scientific management (Taylor) - Administrative management (Fayol) - Bureaucracy theory (Weber) |
| Neoclassical theories (1920s-1940s) | Organization as a community. Attempt to humanize the rigid structure of classical theory. Organization viewed as a social system. Flat hierarchy, wide span of control, loose control over subordinares - Human relations movement |
| Environmental theories (1950s-70s) | Organization as an organism - General systems theory, systems thinking - Contingency theory (burns and stalker) |
| Branden's six pillars of elf-esteem | - live consciously - be self-accepting - take personal responsibility - be self-assertive - live purposefully - have personal integrity |
| Self-efficacy | a person's belief about his chances of successfully accomplishing a specific task |
| Self-monitoring | the extent to which a person observes his or her own self-expressive behavior and adapts it to the demands of the situation |
| Organizational identification | one integrates beliefs about one's organization into one's identity |
| Dimensions of personality (5) and job performance | - Extraversion -Agreeableness -Conscientiousness - Emotional stability - Openness to experience |
| Proactive personality | someone unconstrained by situational forces and who effects environmental change *Performance depends on combination of effort, ability and skill |
| Psychological capital: | positive psychological state of development. Striving for success by developing one's self-efficacy, optimism, hope and resiliency |
| Schwartz's theory | |
| Relationship among Schwarz's values | |
| Attitude | learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object |
| Components of attitude (3) | - Affective component. feelings or emotions about situation. - Cognitive component: evaluation or belief about situation. - Behavioral component: how one intends to act or behave towards situation. |
| Cognitive dissonance | discomfort a person experiences when his attitudes or beliefs are incompatible with his behavior |
| How to reduce dissonance | - Change attitude or behavior, or both. - Belittle the importance of the inconsistent behavior. - Find consonant elements that outweigh the dissonant ones |
| Ajzen's theory of planned behavior | |
| Organizational commitment | reflects the extent to which an individual identifies with an organization that is committed to its goals |
| Causes of job satisfaction (5) | - Need fulfillment - Discrepancies - Value attainment - Equity - Dispositional / genetic components |
| Counterproductive work behavior | behavior that harms employees, the organization or organization stakeholders. Theft, gossiping, sexual harassment... Preventions: - hire individuals less prone to engage in this - ensure that org. isn't motivating this behavior - Respond quickly and appropriately to this behavior |
| Cultural intelligence | Ability to deal effectively with people with whom you don't share a common cultural background and understanding. |
| CQ | People with higher CQ can adapt to different culture, they can leverage strengths of diff cultures, they can create new cultural interactions... They and reconcile cultural diff effectively |
| Responding to cultural differences: Milton Bennet DMIS | - Ethnocentric stages: deny, defend, minimize - Ethnorelative stages: accept, adapt, integrate |
| Approach to developing CQ (4 steps) | - Recognition: increase awareness of one's own perspective - Respect: appreciate differences - Reconcile: resolve differences - Realize and root: implement reconciling actions Going from either-or / win- lose to and-and, through, through |
| Dimensional models (2) | - Hofstede - Trompenaars |
| Culture | dynamic process of solving human problems / dilemmas in the areas of human relationships, time and nature Artifacts, normals, values + basic assumptions |
| Universalism vs. particularism | |
| Achievement vs. ascription | |
| Motivation | psychological processes cause the arousal, direction and persistence of voluntary actions that are goal directed |
| Theories of motivation (2) | - Content theories of motivation (what) - Process theories of motivation (how) |
| Content theories (4) | - Maslow's need theory (1. physiological, 2. safety, 3. love, 4. esteem, 5. self-actualization) - Alderfer's ERG theory (existence needs, relatedness needs, growth needs) -McClelland's need theory (achievement, affiliation, power) - Herzberg's motivator-hygiene model |
| Process theories (2) | - Adam's equity theory of motivation - Vroom's expectancy theory of motivation |
| Job design (2) | - Top-down approaches - Bottom-up approaches |
| Top-down approaches | - Scientific management - Job enlargement - Job rotation - Job enrichment - Job characteristics model |
| Bottom up approaches | - Job crafting or sculpting |
| Collectivism | culture that stresses interdependence of members in a society where group goals are more important than individual goals |
| Perception | Cognitive process that enables us to interpret and understand surroundings. 4 stage process: - Selective attention / comprehension - Encoding and simplification - Storage and retention - Retrieval and response |
| Stereotypes | - Sex role stereotypes. - Age stereotypes - Racial and ethnic stereotypes |
| Managerial challenges and recommendations | - Educate and train about problem of stereotyping - Mixed group contact reduces stereotyping - Remove promotional barriers - ... |
| The Pygmalion effect | someone's high expectations for another person result in high performance for that person. - Galatea effect: self-expectations lead to high performance - Golem effect: loss in performance resulting from low leader expectations |
| Kelley's model of attribution | Behavior can be attributed to: - Internal factors within the environment - External factors within the environment |
| Consensus: | involves a comparison of an individual's behavior with that of his peers. |
| Distinctiveness | involves comparing a person's behavior on one task with behavior on other tasks |
| Consistency | judging if the individual's performance on a given task if consistent over time |
| Attributional tendencies | - Fundamental attribution bias - Self-serving bias |
| Managerial implications of behavior: | - Managers give more feedback when they attribute performance to low effort - Men and women have diff attributions regarding the causes of promotion - Managers tend to attribute behavior to internal causes - can be inaccurate, leading to reduced motivation |
| Improving job performance | |
| Positive reinforcement | an organization-wide system whereby managers integrate the activities of goal setting, monitoring and evaluating, providing feedback and coaching, and rewarding employees |
| Types of goals | - Performance outcome goal - Learning goal |
| Goal setting process (3 steps) | - Set goals - Promote goal commitment - Provide support and feedback |
| Types of reward (2) | Extrinsic rewards (financial, material, social) Intrinsic rewards (self-granted, psychic) |
| Pay for performance | Monetary incentives offered by 80% of US companies |
| Thorndike's law of effect | Behavior with favorable consequences tends to be repeated. Behavior with unfavorable consequences tends to disappear |
| Group | two or more freely interacting people who share collective normal and goals and have a common identity - Formal group - Informal group |
| Tuckman's five stage theory of group development | 1. Forming 2. Storming 3. Norming. 4. Performing 5. Adjourning |
| Roles and norms | Role: expected behavior Role theory: to explain how social expectations influence behavior. Role overload Role conflict Role ambiguity Norms |
| Threats to group effectiveness (3) | - Asch effect (1950). Distortion of individual judgement by a unanimous but incorrect opposition. - Groupthink - Social loafing: individual effort declines as group size increases |
| Team | Small number of people with complementary skills who are committed to a common purpose, performance goals and approach for which they are mutually accountable |
| Models of decision-making (3) | - Rational model - Non-rational model - Integrating both |
| Rational model | 4 steps: - Identify the problem or opportunity - Generate alternative solutions - Evaluate alternatives and select a solution - Implement and evaluate the solution chosen |
| Non-rational models | Decision-making is uncertain, decision-makers don't possess complete info, difficult to make optimal decision. - Simon's normative model - Garbage can model |
| Decision-making styles | |
| Minority dissent | extent to which group members feel comfortable disagreeing with other group members and a group's level of participation in decision-making |
| Approaches to studying leadership (5) | 1. Trait approaches 2. Behavioral approaches 3. Contingency approaches 4. Transformational approaches 5. Emerging approaches |
| Trait approaches | |
| Behavioral approaches | |
| Contingency approaches | |
| Transformational approaches | |
| Emerging approaches | |
| Models of change (3) | - Lewin's change model - Systems model of change - Kotter: communicating a vision for change |
| Lewin's change model | - Unfreezing: create motivation to change, discomforting present behavior, use of benchmarking - Changing: providing new info, changed aimed at improving growth, desired end result - Refreezing: change supported by helping employees, giving them chance to exhibit new behavior, extrinsic rewards |
| Systems model of change | Systems approach: - any change has a cascading effect on an org. - 'big picture' perspective of org change - Offers framework |
| Kotter: communicating a vision of change | - why people resist change in workplace: surprise, fear, predisposition... - Overcoming resistance to change: info, meetings, rationale for change, concerns, opportunity to discuss how change might affect them |
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