Fundamental laws of business
1) It always takes longer than you scheduled!
2) It always costs more than you budgeted!
3) When placed in difficult situation, people will take the path of least resistance
What do managers do?
Ensure that the organization achieves its goals and objectives
Successful manager
good at getting the job done, moves up the corporate ladder, spend 48% of their time networking
Effective manager
getting people to work together to meet the goals, is great at "getting the job done," spend 44% of their time communicating
the meaning of life
money
organizational behavior
the systematic study of the actions and attitudes that people exhibit within organizations
successful organization
� The right balance of management and leadership to ensure that the organization achieves its goals and objectives.
determinants of employee performance
� Productivity
� Absenteeism
� Turnover
� Job satisfaction
� ...only really care about making $$
challenges/opportunities we face in building company
� The typical employee is getting older
� More women in the workplace
� More minorities in the workplace
� The world is flat - competitively (globalization)
� Historical loyalty-bonds between employees and employers are being severed
� Globalization
how to manage diversity
respond to those differences in ways that ensure employee retention and greater productivity while, at the same time, not discriminating
the cost of fraud
Over 200 billion for 40 of the top 100 fortune companies
personality
a relatively stable set of characteristics that influences an individual's behavior, The way in which an individual reacts and interacts with others, often described in terms of traits
big 5 model of personalities
extroversion, agreeableness, conscientiousness, emotional stability, openness to experience
locus of control
belief that life is controlled by oneself vs external forces
Machiavellianism
tendency to manipulate and maintain emotional distance
self-monitoring
sensitive to external cues to behave differently
risk propensity
willingness to take chances. ex Donald Trump
Type A personality
incessantly struggling to achieve more, great sales reps
narcissism
in love with themselves, high degree of self importance and arrogance
internal skills
ability to deal with demands, pressures, stress
self awareness, manage emotions and impulses, self-motivation and persistence, empathy towards others
synergy
Teams that work together synergistically produce extraordinary results
teams are -generally- better than the individual (NOT ALWAYS)
synergistic decision making
o 1. People are supportive of one another, and
o 2. They follow a rational sequence of activities in dealing with a problem
o 3. They can perform beyond the sum of their individual efforts
the interpersonal process
� Listening to others
� Supporting their efforts to do well
� Differing with others when necessary in a manner that is constructive rather than defensive
� Participating equally in group discussions
the rational process
-analyze the situation
-identify objectives or goals
-simplify the problem
personality and national culture
national culture greatly influences the dominant personality of its populace. culture often reflects the national personality characteristics
ethical behavior
bosses' actions are the most important factor in this
perception
our sensory experience of the world around us, we gain information about properties and elements of the environment that are critical to our survival
job satisfaction
a collection of feelings that an individual holds towards his or her job. includes fair outcomes and fair treatment
what causes job satisfaction?
-the work itself
-pay (to a certain level)
-advancement opportunities
-supportive supervisors
-supportive co-workers
-an individual's own personality
high job satisfaction leads to
-decreased tunrover, absenteeism, deviant behavior, increased customer satisfaction, increased productivity -> increased profit
personality tests
inexpensive way for firms to weed people out. match the right personality for the job. 30% of firms use this
myers-briggs
most widely used personality test in the world. identifies learning styles, decision making styles, management style, team-building characteristics
attribution theory
the processes by which individuals explain the causes of behavior and events. people make explanatory attributions to understand the world around them and to seek reasons for a particular event.
fundamental attribution error
the tendency to focus on errors caused by the person's behavior rather than the situation
self serving bias
attributing internal factors for success and external, uncontrollable factors for failure
cognitive dissonance
when there's an inconsistency that occurs between our attitudes, behavior, beliefs, values or emotions. discomfort felt by a person seeking to hold 2 or more conflicting cognitions.
ethics
behavior that conforms to accepted professional and personal standards of conduct
3 main actions to take in unethical organization
-prevent unethical practices from the start, quit, whistleblowing
motivation
the willingness to do something to satisfy some need. internal and external factors that stimulate people to be continually interested and committed to a task and to exert persistent effort in attaining a goal.
maslow's hierachy of needs
physiological needs, safety, love/belonging, esteem, self-actualization
Theory X
management assumes employees are inherent lazy, will avoid work if they can, dislike work
Theory Y
management assumes employees are ambitious, self-motivated, and exercise self control
herzberg's 2 factor theory
a person's attitude directly influences their success or failure
hygiene factors
extrinsic and related to dissatisfaction. if absent, result in de-motivation. quality of supervision, pay, company policies, physical work conditions
motivation factors
intrinsic and related to satisfaction. promotional opportunities, personal growth, recognition
5 core job characteristics
skill variety, task identity, task significance, autonomy, feedback
skill variety
using a variety of different skills on the job
task identity
completion of a whole (from beginning to end)
task significance
substantial impact on the lives or work of others
autonomy
freedom and discretion in determining how work gets done
feedback
obtaining direct and clear info about effectiveness and performance
JCM
predict that motivation, performance, and job satisfaction will be positive affected
equity theory
employees weigh what they put into a job against what they get out. they compare their input/output ratio with similar co-workers. if they perceive their ration to be equal, a state of equity exists
equity theory in business
employees expect a fair return for what they put into their jobs.
theory Z
japanese management" style popularized during asian boom of 80's. increasing employee loyalty to company by providing a job for life and strong focus on the well-being of the employee, both on and off the job
employee recognition programs
rewarding behavior with recognition leads to repetition
employee stock option plan
company established benefits plan in which employees acquire stock, often at below-market prices, as part of their benefits. objective: have the employee act more as an "owner" of the company
options
the right to purchase stock at a pre-defined price over a pre-defined period
vesting period
the period of time over which you receive options. promotes longevity
trigger
a set period of time, or a specific event, that allows you to participate in ESOP
option price
pre-determined price for options set by BOD. often below current market price
hawthorne studies
people turned off lights - examined the relationship between the physical environment and productivity. group standards were highly effective in establishing individual worker output. money was less a factor in determining worker output than were group st
norms
acceptable standards of behavior within a group that are adopted and shared by the group's members.
status
a socially defined position or rank given to groups or group members by others
what determines status?
-the power a person wields over others
-a person's ability to contribute to a group's goals
-an individual's personal characteristics
-cultural factors and norms
impact of status
high status members of groups often are given more freedom to deviate. interaction among members of groups is influenced by status
cohesiveness
the degree to which members are attracted to each other, trust each other, motivated to stay in the group
high cohesiveness
lower tension and anxiety, less variation in productivity
how do managers encourage cohesiveness?
make the group smaller, encourage agreement on group goals, increase the time spent together in and out of the office, increase the status and perceived difficulty of group membership
conformity
members' desire to be one the group and avoid being visibly different. stronger in collectivistic cultures
size study
smaller groups are faster at completing tasks. large groups are better at problem solving.
social loafing
tendency to expend less effort in a group than as an individual
composition
diversity promotes conflict -> creativity -> improved decision making
sports teams
integrate cooperation, score early wins, practice makes perfect, use half time breaks
task versus interpersonal conflict
initially rowers had task related difficulties coordinating technical skills. this triggered interpersonal conlifct as seen in heated emails
conflict
moderate levels of task conflict boosts performance
team identification
people who identify strongly w/ a team generally feel secure, valued, and supported by other team members. JV teams: "we will succeed together, we will fail together
Fundamental laws of business
1) It always takes longer than you scheduled!
2) It always costs more than you budgeted!
3) When placed in difficult situation, people will take the path of least resistance
What do managers do?
Ensure that the organization achieves its goals and objectives
Successful manager
good at getting the job done, moves up the corporate ladder, spend 48% of their time networking
Effective manager
getting people to work together to meet the goals, is great at "getting the job done," spend 44% of their time communicating
the meaning of life
money
organizational behavior
the systematic study of the actions and attitudes that people exhibit within organizations
successful organization
� The right balance of management and leadership to ensure that the organization achieves its goals and objectives.
determinants of employee performance
� Productivity
� Absenteeism
� Turnover
� Job satisfaction
� ...only really care about making $$
challenges/opportunities we face in building company
� The typical employee is getting older
� More women in the workplace
� More minorities in the workplace
� The world is flat - competitively (globalization)
� Historical loyalty-bonds between employees and employers are being severed
� Globalization
how to manage diversity
respond to those differences in ways that ensure employee retention and greater productivity while, at the same time, not discriminating
the cost of fraud
Over 200 billion for 40 of the top 100 fortune companies
personality
a relatively stable set of characteristics that influences an individual's behavior, The way in which an individual reacts and interacts with others, often described in terms of traits
big 5 model of personalities
extroversion, agreeableness, conscientiousness, emotional stability, openness to experience
locus of control
belief that life is controlled by oneself vs external forces
Machiavellianism
tendency to manipulate and maintain emotional distance
self-monitoring
sensitive to external cues to behave differently
risk propensity
willingness to take chances. ex Donald Trump
Type A personality
incessantly struggling to achieve more, great sales reps
narcissism
in love with themselves, high degree of self importance and arrogance
internal skills
ability to deal with demands, pressures, stress
self awareness, manage emotions and impulses, self-motivation and persistence, empathy towards others
synergy
Teams that work together synergistically produce extraordinary results
teams are -generally- better than the individual (NOT ALWAYS)
synergistic decision making
o 1. People are supportive of one another, and
o 2. They follow a rational sequence of activities in dealing with a problem
o 3. They can perform beyond the sum of their individual efforts
the interpersonal process
� Listening to others
� Supporting their efforts to do well
� Differing with others when necessary in a manner that is constructive rather than defensive
� Participating equally in group discussions
the rational process
-analyze the situation
-identify objectives or goals
-simplify the problem
personality and national culture
national culture greatly influences the dominant personality of its populace. culture often reflects the national personality characteristics
ethical behavior
bosses' actions are the most important factor in this
perception
our sensory experience of the world around us, we gain information about properties and elements of the environment that are critical to our survival
job satisfaction
a collection of feelings that an individual holds towards his or her job. includes fair outcomes and fair treatment
what causes job satisfaction?
-the work itself
-pay (to a certain level)
-advancement opportunities
-supportive supervisors
-supportive co-workers
-an individual's own personality
high job satisfaction leads to
-decreased tunrover, absenteeism, deviant behavior, increased customer satisfaction, increased productivity -> increased profit
personality tests
inexpensive way for firms to weed people out. match the right personality for the job. 30% of firms use this
myers-briggs
most widely used personality test in the world. identifies learning styles, decision making styles, management style, team-building characteristics
attribution theory
the processes by which individuals explain the causes of behavior and events. people make explanatory attributions to understand the world around them and to seek reasons for a particular event.
fundamental attribution error
the tendency to focus on errors caused by the person's behavior rather than the situation
self serving bias
attributing internal factors for success and external, uncontrollable factors for failure
cognitive dissonance
when there's an inconsistency that occurs between our attitudes, behavior, beliefs, values or emotions. discomfort felt by a person seeking to hold 2 or more conflicting cognitions.
ethics
behavior that conforms to accepted professional and personal standards of conduct
3 main actions to take in unethical organization
-prevent unethical practices from the start, quit, whistleblowing
motivation
the willingness to do something to satisfy some need. internal and external factors that stimulate people to be continually interested and committed to a task and to exert persistent effort in attaining a goal.
maslow's hierachy of needs
physiological needs, safety, love/belonging, esteem, self-actualization
Theory X
management assumes employees are inherent lazy, will avoid work if they can, dislike work
Theory Y
management assumes employees are ambitious, self-motivated, and exercise self control
herzberg's 2 factor theory
a person's attitude directly influences their success or failure
hygiene factors
extrinsic and related to dissatisfaction. if absent, result in de-motivation. quality of supervision, pay, company policies, physical work conditions
motivation factors
intrinsic and related to satisfaction. promotional opportunities, personal growth, recognition
5 core job characteristics
skill variety, task identity, task significance, autonomy, feedback
skill variety
using a variety of different skills on the job
task identity
completion of a whole (from beginning to end)
task significance
substantial impact on the lives or work of others
autonomy
freedom and discretion in determining how work gets done
feedback
obtaining direct and clear info about effectiveness and performance
JCM
predict that motivation, performance, and job satisfaction will be positive affected
equity theory
employees weigh what they put into a job against what they get out. they compare their input/output ratio with similar co-workers. if they perceive their ration to be equal, a state of equity exists
equity theory in business
employees expect a fair return for what they put into their jobs.
theory Z
japanese management" style popularized during asian boom of 80's. increasing employee loyalty to company by providing a job for life and strong focus on the well-being of the employee, both on and off the job
employee recognition programs
rewarding behavior with recognition leads to repetition
employee stock option plan
company established benefits plan in which employees acquire stock, often at below-market prices, as part of their benefits. objective: have the employee act more as an "owner" of the company
options
the right to purchase stock at a pre-defined price over a pre-defined period
vesting period
the period of time over which you receive options. promotes longevity
trigger
a set period of time, or a specific event, that allows you to participate in ESOP
option price
pre-determined price for options set by BOD. often below current market price
hawthorne studies
people turned off lights - examined the relationship between the physical environment and productivity. group standards were highly effective in establishing individual worker output. money was less a factor in determining worker output than were group st
norms
acceptable standards of behavior within a group that are adopted and shared by the group's members.
status
a socially defined position or rank given to groups or group members by others
what determines status?
-the power a person wields over others
-a person's ability to contribute to a group's goals
-an individual's personal characteristics
-cultural factors and norms
impact of status
high status members of groups often are given more freedom to deviate. interaction among members of groups is influenced by status
cohesiveness
the degree to which members are attracted to each other, trust each other, motivated to stay in the group
high cohesiveness
lower tension and anxiety, less variation in productivity
how do managers encourage cohesiveness?
make the group smaller, encourage agreement on group goals, increase the time spent together in and out of the office, increase the status and perceived difficulty of group membership
conformity
members' desire to be one the group and avoid being visibly different. stronger in collectivistic cultures
size study
smaller groups are faster at completing tasks. large groups are better at problem solving.
social loafing
tendency to expend less effort in a group than as an individual
composition
diversity promotes conflict -> creativity -> improved decision making
sports teams
integrate cooperation, score early wins, practice makes perfect, use half time breaks
task versus interpersonal conflict
initially rowers had task related difficulties coordinating technical skills. this triggered interpersonal conlifct as seen in heated emails
conflict
moderate levels of task conflict boosts performance
team identification
people who identify strongly w/ a team generally feel secure, valued, and supported by other team members. JV teams: "we will succeed together, we will fail together