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CLEMSON / Business Management / MGT 2010 / What are the two types of change?

What are the two types of change?

What are the two types of change?


School: Clemson University
Department: Business Management
Course: Principles of Management
Professor: Tina robbins
Term: Spring 2016
Cost: 50
Name: MGT 2010 Exam 3 Study Guide
Description: This study guide covers chapter 10 - 13. This does NOT include the management in action section.
Uploaded: 04/10/2017
10 Pages 26 Views 18 Unlocks

Exam 3 Study Guide

10.1 The Nature of Change in Organizations

What are the two types of change?

Fundamental Change: What Will You be Called on to Deal With? 

1. The Marketplace is becoming more segmented & moving toward more Niche products 2. More competitors are offering targeted products, requiring faster speed-to market 3. Some traditional companies may not survive radical change

Disruptive Innovation ???? A process by which a product or service takes root initially in simple  applications at the bottom of a market and then relentlessly moves up market, eventually  displacing established competitors

4. China, India, & other offshore suppliers are changing the way we work 5. Knowledge, not information, is becoming the new competitive advantage

Two Types of Change: 

1. Reactive Change: Responding to Unanticipated Problems & Opportunities

What is disruptive innovation?

Reactive Change ???? Making changes in response to problems or opportunities as they arise 2. Proactive Change: Manage Anticipated Problems & Opportunities We also discuss several other topics like What is mecca?

Proactive Change ???? (Planned Change) – Involves making carefully thought-out changes in  anticipating of possible or expected problems or opportunities

The Forces for Change: Outside & Inside the Organization 


1. Demographic Characteristics

a. Age

b. Education

c. Skill Level

d. Gender

e. Immigration

2. Technological Advancements

a. Manufacturing Automation

b. Information Technology

Technology ???? Is not just computer technology; it is any machine or process that enables an  organization to gain a competitive advantage in changing materials used to produce a finished  product

What are the types of innovation?

3. Shareholder, Customer, & Market Changes

4. Social & Political Pressures We also discuss several other topics like What happened to public confidence in the federal government and military between 1945 and 1990?

Inside: If you want to learn more check out What is the subject/ theme of the original and the new version of mad max fury?

1. Human Resources Concerns

2. Managers’ Behavior

10.4 Promoting Innovation within the Organization

Invention ???? Creating or making up something new

Creativity ???? The act of developing new and imaginative ideas into reality

Two Myths about Innovation: 

1. Innovation happens in a “Eureka!” moment

2. Innovation can be systematized

The Seeds of Innovation: Starting Point for Experimentation & Inventiveness Seeds of Innovation ???? The starting point for organizational innovation

1. Hard work in a specific direction

2. Hard work with direction change

3. Curiosity

4. Wealth and money

5. Necessity

6. Combination of seeds

Types of Innovation: Product or Process, Core or Transformational 

Product Innovation ???? A change in the appearance or the performance of a product or a service  or the creation of a new one

Process Innovation ???? A change in the way a product or service is conceived, manufactured, or  disseminated We also discuss several other topics like What is the process of perception?

Core Innovations ???? The optimizing of products or services for existing customers Transformational Innovations ???? The invention of breakthrough products or services that don’t  exist yet and that are aimed at creating brand new markets and customers Celebrating Failure: Cultural & Other Factors Encouraging Innovation 

1. Culture

a. Is Innovation Viewed as a Benefit or a Boondoggle

2. Human Capitol

a. Are the Right Kind of People Available

3. Resources

a. Do Managers Put Money Where Their Mouths Are

4. Rewards

a. Is Experimentation Reinforces in Ways That Matter

How You Can Foster Innovation: 

1. Recognize Problems & Opportunities & Devise Solutions Don't forget about the age old question of What is the robber's cave experiment?

a. Recognizing a problem – find a “better way”

b. Recognizing an opportunity

2. Gain Allies by Communicating Your Vision We also discuss several other topics like What are the complications of iron toxicity?

a. Showing how the product or service will be made

b. Showing how potential customers will be reached

c. Demonstrating how you’ll beat your competitors

d. Explaining when the innovation will take place

3. Overcome Employee Resistance, & Empower & Reward Them to Achieve Progress 4. Execute Well

10.5 The Threat of Change: Managing Employee Fear & Resistance

The Causes of Resistance to Change 

Resistance to Change ???? Is an emotional/behavioral response to real or imagined threats to an  established work routine

1. Employee characteristic ???? An employee’s individual differences, actions, and inactions,  and perceptions of change

2. Change agent characteristics ???? The individual who is a catalyst in helping organizations  change

3. The change agent-employee relationship

Ten Reasons Employees Resist Change: 

1. Individual’s Predisposition toward Changes

2. Surprise & Fear of the Unknown

3. Climate of Mistrust

4. Fear of Failure

5. Loss of Status or Job Security

6. Peer Pressure

7. Disruption of Cultural Traditions or Group Relationships

8. Personality Conflicts

9. Lack of Tact or Poor Timing

10. Non-Reinforcing Reward System

11.1 Personality & Individual Behavior

Personality ????Consists of the stable psychological traits and behavioral attributes that give a  person his or her identity

The Big 5 Personality Dimensions: 

1. Extroversion ???? How outgoing, talkative, sociable and assertive a person is • The Outgoing Personality

2. Agreeableness ???? How trusting, good-natured, cooperative, and soft-hearted one is 3. Conscientiousness ???? How dependable, responsible, achievement-oriented, and  persistent one is

• The Dependable Personality

4. Emotional Stability ???? How relaxed, secure, and unworried one is

5. Openness to experience ???? How intellectual, imaginative, curious, and broadminded  one it

Proactive Personality ???? Someone who is more apt to take initiative and persevere to influence  the environment

Core Self-Evaluation ???? Represents a broad personality trait comprising four positive individual  traits  

1. Self-Efficacy ???? The belief in one’s personal ability to do a task

Learned Helplessness ???? The debilitating lack of faith in one’s ability to control one’s  environment

2. Self-Esteem ???? The extent to which people like or dislike themselves, their overall self evaluation

• People with high self-esteem are more apt to handle failure better, to emphasize the  positive, to take more risks, and to choose more unconventional jobs

• People with low self-esteem focus on their weaknesses and to have primarily  negative thoughts, they are more dependent on others.

3. Locus of Control ???? Indicates how much people believe they control their fate through  their own efforts

4. Emotional Stability ???? The extent to which people feel secure and unworried and how  likely they are to experience negative emotions under pressure

Emotional Intelligence ???? The ability to monitor your and others’ feelings and to use this  information to guide your thinking and actions

Daniel Goleman ???? A psychologist who popularized the trait of EI composed of four key  components; self-awareness, self-management, social awareness, and relationship  management

11.3 Perception & Individual Behavior

The 4 Steps in the Perceptual Process: 

Perception ???? The process of interpreting and understanding one’s environment 1. Selective Attention

Stereotyping ???? The tendency to attribute to an individual the characteristics one believes are  typical of the group to which that individual belongs

2. Interpretation & Evaluation

Halo Effect ???? Which we form an impression of an individual based on a single trait 3. Storing in Memory

Recency Effect ???? The tendency to remember recent information better than earlier  information

4. Retrieving from Memory to make Judgements & Decisions

Casual Attribution ???? The activity of inferring causes for observed behavior

Fundamental Attribution Bias ???? People attribute another person’s behavior to his or her  personal characteristics rather than to situational factors

Self-Serving Bias ???? People tend to take more personal responsibility for success than for failure Self-Fulfilling Prophecy ???? (Pygmalion effect) Describes the phenomenon in which people’s  expectations of themselves or others lead them to behave in ways that make those  expectations come true

11.4 Work-Related Attitudes & Behaviors Managers Need to Deal with

Employee Engagement ???? An individual’s involvement, satisfaction, and enthusiasm for work Job Satisfaction ???? The extent to which you feel positive or negative about various aspects of  your work

Organizational Commitment ???? Reflects the extent to which an employee identifies with an  organization and is committed to its goals

Turnover ???? When employees leave their jobs

Onboarding ???? Programs to help employees to integrate and transitions to new jobs by making  them familiar with corporate policies, procedures, culture, and politics by clarifying work-role  expectations and responsibilities

Organizational Citizenship Behaviors ???? Are those employee behaviors that are not directly part  of employees’ job descriptions – that exceed their work-role requirements Counterproductive Work Behaviors ???? Types of behavior that harm employees and the  organization as s whole

11.5 The New Diversified Workforce

Diversity ???? Represents all the ways people are unlike and alike – the differences and  similarities in age, gender, race, religion, ethnicity, sexual orientation, capabilities and  socioeconomic background

Diversity Wheel:

1. Personality

2. Internal Dimensions ???? Those human differences that exert a powerful, sustained effect  throughout every stage of our lives

3. External Dimensions ???? Include an element of choice; they consists of the personal  characteristics that people acquire, discard, or modify throughout their lives 4. Organizational Dimensions

Glass Ceiling ???? The metaphor for an invisible barrier preventing women and minorities from  being promoted to top executive

Americans with Disabilities Act ???? Prohibits discrimination against the disabled  Ethnocentrism ???? The belief that one’s native country, culture, language, abilities, or behavior is  superior to those of another culture

11.6 Understanding Stress & Individual Behavior

Stress ???? The tension people feel when they are facing or enduring extraordinary demands,  constraints, or opportunities and are uncertain about their ability to handle them effectively

Stressor ???? The source of stress

Type A Behavior Pattern ???? Meaning they are involved in a chronic, determined struggle to  accomplish more in less time

Roles ???? Sets of behavior that people expect of occupants of a position

The Sources of Job-Related Stress 

1. Demands Created by Individual Differences

2. Individual Task Demands

3. Individual Role Demands

4. Group Demands

5. Organizational Demands

6. Non-work Demands

Burnout ???? IS a state of emotional, mental and even physical exhaustion

Buffers ???? Administrative changes, that managers can make to reduce the stressors that lead to  employee burnout

Employee Assistance Programs ???? Include a host of programs aimed at helping employees to  cope with stress, burnout, substance abuse, health-related problems, family and marital issues,  and any general problem that negatively influences job performance

Holistic Wellness Program ???? Focuses on self-responsibility, nutritional awareness, relaxation  techniques, physical fitness, and environmental awareness

12.1 Motivating for Performance

Motivation: What it is, Why it’s important 

Motivation ???? may be defined as the psychological processes that arouse and direct goal directed behavior

Extrinsic Reward ???? Is the payoff, such as money, a person receives for performing a particular  task

Intrinsic Reward ???? Is the satisfaction, such as a feeling of accomplishment, a person receives  from performing the particular task itself

12.3 Process Perspectives on Employee Motivation

Process Perspectives ???? Are concerned with the thought processes by which people decide how  to act

Equity Theory 

Equity Theory ???? Focuses on employee perceptions as to how fairly they thing they are being  treated compared with others

• Inputs – What do you think you’re putting into the job

• Outputs or Rewards – What do you think you’re getting out of the job

• Comparison – How do you think your ratio of inputs and outputs compare with those of  others

Expectancy Theory ???? Suggests that people are motivated by two things: how much they want  something and how likely they think they are to get it

1. Expectancy ???? Is the belief that a particular level of effort will lead to a particular level of  performance

2. Instrumentality ???? Is the expectation that successful performance of the task will lead to  the outcome desired

3. Valence ???? Is value, the importance a worker assigns to the possible outcome or reward

Goal Setting Theory: 

Goal-Setting Theory ???? Suggests that employees can be motivated by goals that are specific and  challenging but achievable

The 4 Motivational Mechanisms of Goal-Setting Theory

1. It directs your attention

2. It regulates the effort expended

3. It increases your persistence

4. It fosters use of strategies & action plans

Practical Results of Goal-Setting Theory

1. Goals should be specific

2. Goals should be challenging but achievable

3. Goals should be linked to action plans

4. Goals need not be set jointly to be effective

5. Feedback enhances goal attainment

12.4 Job Design Perspectives on Motivation

Job Design ???? is the division of an organization’s work among its employees and the application  of motivational theories to jobs to increase satisfaction and performance

Job Simplification ???? The process of reducing the number of tasks a worker performs Job Enlargement ???? Consists of increasing the number of tasks in a job to increase variety and  motivation

Job Enrichment ???? Consists of building into a job such motivating factors as responsibility,  achievement, recognition, stimulating work, and advancement

Job Characteristics Model ???? Consists of five core job characteristics that affect three critical  psychological states of an employee that in turn affect work outcomes – the employee’s  motivation, performance, and satisfaction

Five Job Characteristics: 

1. Skill Variety – How many different skills does your job require

2. Task Identity – How many different tasks are required to complete work 3. Task Significance – How many other people are affected by your job

4. Autonomy – How much discretion does your job give you

5. Feedback – How much do you find out how well you’re doing

Applying the Job Characteristics Model

• Diagnose the work environment to see whether a problem exists

• Determine whether job redesign is appropriate

• Consider how to redesign the job

12.6 Using Compensation & Other Rewards to Motivate

Pay for Performance ???? Bases pay on one’s results

Piece Rate ???? In which employees are paid according to how much output they produce Sales Commission ???? In which sales representatives are paid a percentage of the earning the  company made from their sales

Bonuses ???? Are cash awards given to employees who achieve specific performance objectives Profit Sharing ???? Is the distribution to employees of percentage of the company’s profits Gainsharing ???? Is the distribution of savings or gains to groups of employees who reduced costs  and increased measurable productivity

Stock Options ???? Certain employees are given the right to buy stock at a future date for a  discounted price

Pay for Knowledge ???? Ties employee pay to the number of job-relevant skills or academic  degrees they earn

13.1 Groups versus Teams

Group ???? Defined as two or more freely interacting individuals who share norms, share goals,  and have a common identity

Team ???? Defined as a small group of people with complementary skills who are committed to a  common purpose, performance goals, and approach for which they hold themselves mutually  accountable

Formal Group ???? Is a group assigned by organizations or its managers to accomplish specific  goals

Informal Group ???? A group formed by people whose overriding purpose is getting together for  friendship or a common interest

Work Teams for 4 Purposes: 

1. Advice

2. Production

3. Project

Cross-Functional Team ???? Which is staffed with specialists pursuing a common objective 4. Action

Continuous Improvement Teams ???? Consists of small groups of volunteers or workers and  supervisors who meet intermittently to discuss workplace – and quality – related problems Self-Managed Teams ???? Groups of workers who are given administrative oversight for their task  domains

13.3 Building Effective Teams

1. Cooperation

Cooperating ???? When their efforts are systematically integrated to achieve a collective  objective

2. Trust ???? Reciprocal faith in others’ intentions and behaviors

3. Cohesiveness ???? The tendency of a group or team to stick together

4. Performance Goals & Feedback

5. Motivation through Mutual Accountability

6. Size

Social Loafing ???? The tendency of people to exert less effort when working in groups than when  working alone

7. Roles ???? Socially determined expectations of how individuals should behave in a specific  position

Task Role ???? Consists of behavior that concentrates on getting the team’s tasks done Maintenance Role ???? Consists of behavior that fosters constructive relationships among team  members

8. Norms ???? General guidelines or rules of behavior that most group or team members  follow

9. Groupthink ???? A cohesive group’s blind unwillingness to consider alternatives • Symptoms

o Invulnerability, inherent morality, and stereotyping of opposition

o Rationalization and self-censorship

o Illusion of unanimity, peer pressure, and mind guards

o The wisdom of cowards

• Results

o Reduction in alternative ideas

o Limiting of other information

• Preventing

o Allow criticism

o Allow other perspectives

13.4 Managing Conflict

Conflict ???? A process in which one party perceives that its interests are being opposes or  negatively affected by another party

The Nature of Conflict: 

Dysfunctional Conflict ???? Conflict that hinders the organization’s performance or threatens its  interests

Functional Conflict ???? Benefits the main purposes of the organization and serves it interests • Too little conflict – indolence

• Too much conflict – warfare

3 Kinds of Conflict 

1. Personality Conflicts:

o Personality clashes

o Competition for scarce resources

o Time pressure

o Communication failures

2. Intergroup Conflicts

o Inconsistent goals or reward system

o Ambiguous jurisdiction

o Status differences

3. Multicultural Conflicts

How to Stimulate Constructive Conflict: 

1. Spur Competition among Employees

2. Change the Organization’s Culture & Procedures

3. Bring in Outsiders for New Perspectives

4. Use Programmed Conflict: Devil’s Advocacy & Dialectic Method

Programmed Conflict ???? Designed to elect different opinions without inciting people’s personal  feelings

Devil’s Advocacy ???? The process of assigning someone to play the role of critic Dialectic Method ???? The process of having two people or groups play opposing roles in a debate  in order to better understand a proposal

5 Basic Behaviors to Help You Better Handle Conflict 

1. Openness

2. Equality

3. Empathy

4. Supportiveness

5. Positiveness

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