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by: Merle Hoeger


Merle Hoeger
GPA 3.71

Katherine Clark

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Katherine Clark
Class Notes
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This 9 page Class Notes was uploaded by Merle Hoeger on Saturday September 26, 2015. The Class Notes belongs to MGT 201 at Clemson University taught by Katherine Clark in Fall. Since its upload, it has received 77 views. For similar materials see /class/214295/mgt-201-clemson-university in Business, management at Clemson University.




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Date Created: 09/26/15
Chapter 7 Halo Effect An effect in which we form a positive impression of an individual based on a single trait Contrast Error When we rate someone s performance based on the performance of others Recency Erro When we rate someone s overall performance based on their more recent performance such as a person doing very well all year and then having a personal issue for the last week and giving their rating based on the last week Leniency Erro When we judge a person s performance too lenient Strictness Error When we judge a person s performance unjustly strict Giving everyone in a branch a low score because you think nobody is perfect when other branches get high scores for the same amount of work Central Tendency Erro When we rate everyone the same because we don t really know how the individuals are doing Risk Propensity The willingness to gamble for the possibility of increased payoffs Decision Making Styles Directive Low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions Analytical High tolerance for ambiguity and is characterized by over analyzing a situation Conceptual High tolerance for ambiguity and focus on the people or social aspects of a work situation Behavioral Most people oriented of four styles Satisficing Model managers seek solutions until they find one that is satisfactory not optimal Incremental model Managers take small steps to alleviate a problem Intuition Making decisions without logical thought or conscious thought Decision Tree Graph of decisions and their possible consequences Groupthink occurs when group members strive to agree for the sake of unanimity and thus avoid accurately addressing the situation Goal Displacement Occurs when a primary goal is subsumed by a secondary goal Participative management PM the process of involving employees in settings goals making decisions solving problems and making changes in the organization Consensus When members are able to express their opinions and reach agreement to support the final decision Relaxed avoidance Managers decide to take no action in the belief that there will be no great negative consequence Relaxed chang Manager realizes that no interference will have negative consequences but opts for the lowest risk solution Defensive Avoidance A manger can t find a good solution and follows by procrastinating passing the buck or denying the risk of any negative consequences Panic Manger is so frantic to get rid of the problem that he or she can t deal with the situation realistically Heuristics Strategies that simplify the process of making decisions Availability bia Managers use information is readily available from memory to make decisions Confirmation Bias When people seek information to approve their point of view and discredit data that does not Representativeness bia Tendency to generalize from a small sample or single event Sunk cost bias When managers add up all the money already spent on a project and conclude it s too costly to simply abandon it Anchoring and ad39ustment bia the tendency to make decisions based on an initial figure Escalation of commitment bias Whereby decision makers increase their commitment to a project despite negative information about it Chapter 8 Organizational culture Sometimes Called Corporate culture is a system of shared beliefs and values that develops within an organization and guides the behavior of its members Clan Culture Has an internal focus and values flexibility rather than stability and control Adhocracy cultur Has an external focus and values flexibility Market Culture Strong external focus and values stability and control Hierarchy Culture Has an internal focus and values stability and control over flexibility Espoused Value Explicitly states values and norms preferred by an organization Enacted Values Represent the values and norms actually exhibited in the organization Symbol Object act quality or event that conveys meaning to others Story Narrative based on true events which is repeated and sometimes embellished upon to emphasize a particular value Hero Person whose accomplishments embody the values of the organization Rites and rituals Activities and ceremonies planned and unplanned that celebrate important occasions and accomplishments in the organizations life Strength perspective Assumes that the strength of a corporate culture is related to a firms longterm financial performance Fit Perspective Assumes that an organization s culture must align or fit with its business or strategic context Adaptive Perspective Assumes that the most effective cultures help organizations anticipate and adapt to environmental changes Organization According to Chester I Barnard is a system of consciously coordinated activities or forces of two or more people a ForProfit Organizations Formed to make money or profits by offering products of services Nonprofit Organizations Formed to offer services to some clients not to make a profit Mutualbenefit Organizations Voluntary collectives whose purpose is to advance members interests Unions b Organization Chart chart showing the formal lines of authority and the organization s official positions or work specializations Common elements of organization Proposed by Edgar Schein 1 Common Purpose unifies employees or members and gives everyone an understanding of the organization s reason for being Coordinated Effort The coordination of individual efforts into a group or organizationwide effort common purpose realized through this Division of LaborWork Specialization The arrangement of having discrete parts of a task done by different people results in greater efficiency Hierarchy of AuthorityChain of Command Is a control mechanism for making sure the right people do the right things at the right time Unity of Command Employee should report to no more than one manager in order to avoid conflicting priorities and demands however there are exceptions Span of Control Narrow vs Wide Authority Responsibility and Delegation Line vs Staff Positions Authority Refers to the rights inherent in a managerial position to make decision give orders and utilize resources Power Extend to which a person is able to influence others so they respond to orders Accountability Managers must report and justify work results to the managers above them Responsibility the obligation you have to perform the task assigned to you Delegation Process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy Line manager Have Authority to make decisions and usually have people reporting to them represented by a solid line Staff personnel have authority functions they provide advice recommendations and research to line managers represented by a dotted line Centralization vs Decentralization of authority Centralized authority lmportant decisions are made by higher level managers Decentralized Authority lmportant decisions are made by middle level and supervisory managers Basic Types of organizational Structures 1 2 The Simple Structure Has authority centralized in a single person a flat hierarchy few rules and low work specialization The Functional Structure People with similar occupational specialties are put together in formal groups The Divisional Structure People with diverse occupational specialties are put together in formal groups by similar products or services customers or clients or geographic regions The Matrix Structure Organization combines functional and divisional chains of command in a grid so that there are two command structures Vertical and Horizontal The TeamBased Structure Teams or workgroups either temporary or permanent are used to improve horizontal relations and solve problems throughout the organization The Network Structure The organization has a central core that is linked to outside independent firms by computer connections which are used to operate as if all were a single organization The Modular Structure Firm assemble product chunks or modules provided by outside contractors Contingency Design The process of fitting the organization to its environment Nl 1 2 3 4 5 l 2 1 2 The Environment Burns and Stalker Model Mechanistic Organization Authority is centralized tasks and rules are clearly specified employees are closely supervised Organic Organization Authority is Decentralized there are fewer rules and producers and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks The Environment The Lawrence and Lorsh Model Differentiation The tendency of the part of an organization to disperse and fragment Integration The tendency of the parts of an organization to draw together to achieve a common purpose Size The Larger the Organization the More Mechanistic Organizational Size Usually Measured by the number of full time employees Conglomerate Large Company would do business in different unrelated areas 1960s 1 2 3 3 Technology SmallBatch LargeBatch or Continuous Process Woodward Model Technology Consists of all the tools and ideas for transforming materials data or labor into goods or services SmallBatch Technology Often the least complex technology goods are custommade to customer specifications in small quantities tend to be informal flexible organic LargeBatch Technology Mass Production assemblyline technology in which machines do all the work tend to be more organic than mechanistic less rigid and formal ContinuousProcess Technology Highly Routine Technology in which machines do all the work tend to be more organic than mechanistic less rigid and formal Life Cycle 4 Stages in the Life of an Organization Organizational Life Cycl Has a natural sequence of stages birth youth midlife and maturity Birth Stag Non Bureaucratic stage stage in which the organization is created Youth Stage The Organization is in pre bureaucratic stage a stage of growth and expansion Midlife Stage The Organization becomes bureaucratic a period of growth evolving into stability Maturity Stage The Organization becomes very bureaucratic large and mechanistic Chapter 9 Human Resource Management Consists of the activities managers perform to plan for attract develop and retain and effective workforce Human Capital The economic or productive potential of employee knowledge and actions Social Capital The economic or productive potential of strong trusting and cooperative relationships Strategic HR Planning Consists of developing a systematic comprehensive strategy for understanding current employee s needs and predicting future employee needs Job Analysi Purpose is to determine by observation and analysis the basic elements of a job Job Description Summarizes what the holder of the job does and how and why he or she does it Job Specification Describes the minimum qualification a person must have to perform the job successfully Human Resource lnventory A report listing your organizations employees by name education training languages and other important information Wagner Act Passed in 1935 National Labor Relations Board TaftHartley Act Passed in 1947 allows the president to prevent or end a strike that threatens national security National Labor Relations Board Enforces procedure whereby employees may vote to have a union for collective bargaining Collective Bargaining Consists of negotiation between management and employees about disputes over compensation benefits working conditions and job security Fair Labor Standards Act Passed in 1938 Established minimum living standards for workers engaged in interstate commerce including provision of a federal minimum wage 725 Social Security Act Passed in 1935 established retirement system Occupational Safety and Health Act OSHA Passed in 1970 Egual Employment Opportunity Title VII of the Civil Rights Act of 1964 reduce discrimination in employment based on racial ethnic religious bigotry and gender stereotypes established EEO E ual Em lo ment O ortunit EEO Commission Job is to enforce antidiscrimination and other employmentrelated laws covers three important concepts Discrimination affirmative action and sexual harassment Recruitment Process of locating and attracting qualified applicants for jobs open in the organization lnternal Recruiting Making people already employed by the organization aware of job openings External Recruiting Attracting job applicants from outside the organization Realistic Job preview Gives a candidate a picture of both positive and negative features of the job and the organization before he or she is hired Selection Process The Screening ofjob applicants to hire the best candidate Unstructured Interview Involves asking probing questions to find out what the applicant is like Structure interview Involves asking each applicant the same questions and comparing their responses to a standardized set of answers Situational Interview Interviewer focuses on hypothetical situations to find out if applicant can handle difficult situations that might arise BehavioralDescription Interview Interviewer explores what applicants have actually done in the past designed to assess applicant s ability to influence others Employment test Legally considered to consist of any procedure used in the employment selection decision process Assessment Center Management candidates participate in activities for a few days while being assessed by evaluators Reliability Degree to which a test measures the same thing consistently Validity Test Measures what it purports to measure and is free of bias Orientation Helping the newcomer fit smoothly into the job and the organization Training Refers to educating professionals and managers in the skills they need to do theirjobs in the future ComputerAssisted Instruction CA Computers are used to provide additional help or to reduce instructional time typically done in off the job training Performance Management Continuous Cycle of improving job performance through goal setting feedback and coaching and rewards and positive reinforcement Performance Appraisal Consists of assessing an employee s performance and providing them with feedback Ob39ectiveZResults Appraisal Based on facts and are often numerical Sub39ective Appraisal Based on manager s perceptions of an employee s traits or behaviors Behaviorally Anchored Rating Scale BARS Rates employee gradations in performance according to scales of specific behaviors 360degree Assessment360degree feedback appraisal Employees are appraised not only by their managerial superiors but also by peers subordinates and sometimes clients Forced Ranking performance review system All Employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve Formal Appraisal Conducted at specific times throughout the year and are based on performance measure that has been established in advance Informal Appraisal Conducted on an unscheduled basis and consist of less rigorous indications of the employee performance Compensatio Has three parts wages or salaries incentives and benefits Base Pay Consists of the basic wage or salary paid to employees in exchange for doing their jobs determined by all kinds of economic factors BenefitsZFringe Benefit Additional nonmonetary forms of compensation designed to enrich the lives of all all the employees in the organization may be paid in full or part Chapter 10 Reactive change Making changes in response to problems or opportunities as they arise Proactive Change Planned changes involves making carefully thought out changes in anticipation of possible or expected problems or opportunities Technology 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 Organization Development OD A set of techniques for implementing planned change to make people and organizations more effective Change Agent A consultant with a background in behavioral science who can be a catalyst in helping deal with old problems in new ways Intervention The attempt to correct the diagnosed problem Product Innovation A Change in the appearance or the performance of a product or service or the creation of a new one Process Innovation A chance in the way a product or service is conceived manufactured or disseminated Incremental Innovations Creating or products services or technologies that modify existing ones Radical Innovations Creation of products services or technologies that replace existing ones Adaptive Change Reintroduction of a familiar practice Innovative Change The introduction of a practice that is new to the organization Radically Innovative Change Involves introducing a practice that is new to the industry 1 2 3 Kurt Lewin s Change Model Unfreezing Changing and Refreezing Unfreezing Creating the Motivation to Change Changing Learning new Ways of Doing Things Refreezing Making the New Ways Normal Benchmarking A Process by which a company compares its performance with that of high performing organizations used to help unfreeze organizations 355 3952131 333135 3 Kotter s Eight Steps for Leading Organizational Change Establish a sense of urgency Create the guiding coalitions Develop a vision and a strategy Communicate the change vision Empower broad based action Generate Shortterm wins Consolidate gains and produce more change Anchor new approaches in the culture 6 methods for managing employee resistance to change Education and Communication Participation and involvement Facilitation and Support Negotiation and rewards Manipulation and cooptation Explicit and implicit coercion


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