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MGT 305: EXAM 1

Manager
Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished
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Organization
A deliberate arrangement of people assembled to accomplish some specific purpose (that individuals independently could not accomplish alone).
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Middle manager
A manager who supervises first-line managers
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Top Manager
responsible for a firm's overall performance Ex: president, vp, treasurer, CEO, CFO, CIO
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Management v. Leadership: Skills
Management: Planning, Organizing, Analytical thinking, communication/ informing Leadership: Strategic thinking, Conceptual thinking, innovation/creativity, inspiring
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Leadership v. management
Leadership: change/inspiration/motivation/defined within yourself Management: planning/organizing/directing/process/philosophy
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Two foundations of management
Efficiency: doing things right Effectiveness: doing the right things
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Common Characteristics of an organization
- distinct purpose - composed of people - deliberate structure
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Management functions
Planning, organizing, leading, controlling
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Planning
Defining goals, establishing strategies to achieve the goals, and developing plans to integrate and coordinate activities.
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Organizing
Arranging and structuring work to accomplish organizational goals.
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Leading
Working with and through people to accomplish goals.
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Controlling
Monitoring, comparing and correcting work.
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Mintzberg's Management roles
10 roles ground within: - interpersonal roles - informational roles - decisional roles
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Interpersonal roles
Figurehead, leader, liaison
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Informational roles
monitor, disseminator, spokesperson
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Decisional roles
entrepreneur, disturbance handler, resource allocator, negotiator
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Skills Managers Need
- Technical skills - Human skills - Conceptual skills
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The importance of customers
Customers are the reason organizations exist.
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Innovation
Exploring new territory, doing things differently, taking risks.
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Sustainability
a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies.
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Universality of management
The reality that management is needed in all types of orgs, at all org levels, in all org areas, in all organizations regardless of location.
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Behavior
the actions of people
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Organizational behavior
the study of the actions of people at work
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Employee productivity
a performance measure of both efficiency and effectiveness
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Absenteeism
the failure to show up for work
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Turnover
the voluntary and involuntary permanent withdrawal from an organization.
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Organizational citizenship behavior
discretionary behavior that is not part of an employee's formal job requirements, but which promotes the effective functioning of the organization.
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Job satisfaction
an employee's general attitude towards his job.
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Workplace misbehavior
any intentional employee behavior that is potentially damaging to the organization or to individuals within the organization. Four ways: deviance, aggression, antisocial behavior and violence.
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Attitudes
evaluative statements, either favorable or unfavorable, concerning objects, people or events.
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Components of an attitude
- cognitive - affective - behavioral
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Cognitive component
that part of an attitude that is made up of the beliefs, opinions, knowledge or information help by a person.
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Affective component
That part of an attitude that is the emotional or feeling part.
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Behavioral component
that part of an attitude that refers to an intention to behave in a certain way toward someone or something.
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Job involvement
the degree to which an employee identifies with his or her job, actively participates in it, and considers his or her job performance to be important to self-worth
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Organizational commitment
the degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in that organization.
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Perceived organization support
employees' general belief that their organization values their contribution and cares about their well-being.
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employee engagement
when employees are connected to, satisfied with, and enthusiastic about their jobs.
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Cognitive dissonance
any incompatibility or inconsistency between attitudes or between behavior and attitudes.
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Attitude surveys
survey that elicit responses from employees through questions about how they feel about their jobs, work groups, supervisors, or the organization.
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Personality
the unique combination of emotional, thought, and behavioral patterns that affect how a person reacts to situations and interacts with others.
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Big Five Model
personality trait model that includes extraversion, agreeableness, conscientiousness, emotional stability and openness to experience.
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Machiavellianism
a measure of the degree to which people are pragmatic, maintain emotional distance, and believe that ends justify means.
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Self-esteem
an individual's degree of like or dislike for him/herself.
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Self-monitoring
a personality trait that measures the ability to adjust behavior to external situational factors.
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Proactive personality
a trait belonging to people who identify opportunities, show initiative, take action and persevere until a meaningful change occurs.
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Resilience
an individual's ability to overcome challenges and turn them into opportunities.
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Emotions
intense feelings that are directed at someone or something.
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Emotional intelligence
the ability to notice and manage emotional cues and information. (self-awareness, self-management, self-motivation, empathy and social skills).
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Perception
a process by which we give meaning to our environment by organizing and interpreting sensory impressions.
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Attribution theory
how the actions of individuals are perceived by others depends on what meaning (causation) we attribute to a given behavior. - Internally caused behavior: under individual's control - Externally caused behavior: due to outside factors
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Fundamental attribution error
the tendency to underestimate the influence of external factors and to overestimate the influence of internal or personal factors.
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Self-serving bias
the tendency of individuals to attribute their successes to internal factors while blaming personal failures on external factors.
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Assumed similarity
The assumption that others are like oneself.
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Stereotyping
judging a person on the basis of one's perception of a group to which they belong.
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Halo effect
a general impression of an individual based on a single characteristic.
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Learning
any relatively permanent change in behavior that occurs as a result of experience.
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Theories of learning
- operant conditioning - social learning
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Operant conditioning
a theory of learning that says behavior is a function of its consequences. Voluntary or learned behaviors.
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Social learning
a theory of learning that says people can learn through observation and direct experience.
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Shaping behavior
the process of guiding learning in graduated steps using reinforcement or lack of reinforcement.
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Communication
the transfer of understanding and meaning
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Interpersonal communication
communication between two or more people
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Organizational communication
all the patterns, networks, and systems of communications within an organization
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Functions of communication
- Control - Motivation - Emotional Expression - Information
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Communication process
the seven elements involved in transferring meaning from one person to another (sender>encoding>medium>decoding>receiver>feedback and noise)
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Barriers to communication
- filtering - information overload - jargon
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Active listening
listening for full meaning without making premature judgments or interpretations.
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Diagonal communication
communication that cuts across work areas and organizational levels.
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Communication networks
the variety of patterns of vertical and horizontal flows of organizational communicatio.
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Grapevine
The informal organizational communication network.
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3 components of customer service delivery process
the customer, the service organization and the service provider.
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Goal-setting theory
the proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals.
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Self-efficacy
an individual's belief that he or she is capable of performing a task.
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Reinforcement theory
The theory that behavior is a function of consequences
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Reinforcers
consequences immediately following a behavior which increase the probability that the behavior will be repeated.
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Job design
the way tasks are combined to form complete jobs
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Job scope
The number of different tasks required in a job and the frequency with which those tasks are repeated.
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Job enlargement
the horizontal expansion of a job that occurs as a result of increasing job scope.
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Job enrichment
the vertical expansion of a job that occurs as a result of additional planning and evaluation of responsibilities.
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Job depth
the degree of control employees have over their work.
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Job characteristics model
A framework for analyzing and designing jobs that identifies five primary core job dimensions, their interrelationships, and their impact on outcomes.
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5 core job dimensions
- skill variety - task identity - task significance - autonomy - feedback
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Skill Variety
the degree to which a job requires a variety of activities so that an employee can use a number of different skills and talents.
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Task identity
the degree to which a job requires completion of a whole and identifiable piece of work.
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Task significance
the degree to which a job has a substantial impact on the lives or work of other people.
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Autonomy
the degree to which a job provides substantial freedom, independence, and discretion to the individual in scheduling work and determining the procedures to be used in carrying it out.
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Feedback
the degree to which carrying out work activities required by a job results in the individual's reception of direct and clear information about his or her performance effectiveness.
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Relational perspective of work design
an approach to job design that focuses on how people's tasks and jobs are increasingly based on social relationships.
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Proactive perspective of work design
an approach to job design in which employees take the initiative to change how their work is performed.
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High-involvement work practices
work practices designed to elicit greater input or involvement from workers.
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Equity theory
an employee compares his or her job's input-outcome ratio with that of relevant others and then corrects any equity.
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Expectancy theory
the theory that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
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Instrumentality
the perception that a particular level of performance will result in attaining a desired outcome (reward).
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Valence
the attractiveness/importance of the performance reward to the individual.
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Motivation
the process by which a person's efforts are energized, directed, and sustained toward attaining a goal.
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Hierarchy (Maslow's hierarchy of needs)
We communicate to meet a range of human needs: 1. self actualization needs (self development) 2. esteem needs (recognition & status) 3. social needs (sense of belonging & love) 4. safety needs (security & protection) 5. physiological needs (hunger & thirst)
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Herzberg's two factor theory
(Motivation/Hygiene theory) Intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction.
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Hygiene factors
factors that eliminate job dissatisfaction, but don't motivate. (ex: supervision, policy, salary)
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Motivators
factors that increase job satisfaction and motivation. (Ex: achievement, recognition, growth, promotion)
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McClelland's three need theory
the motivation theory that points out 3 acquired needs (achievement, power and affiliation) as major motives in work.
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Need for achievement (nAch)
the drive to succeed and excel in relation to a set of standards. Ex: salesperson
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Need for power (nPow)
the need to make others behave in a way that they would not have behaved otherwise. Ex: politicians
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Need for affiliation (nAff)
the desire for friendly and close interpersonal relationships.
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Adam Smith's "Wealth of the Nations"
division of labor benefits organizations and society
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Classical approach
Emphasized rationality and making organizations and workers as efficient as possible. Two theories: scientific management and general administrative theory.
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Scientific management
using scientific methods to define the best way for a job to get done.
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General administrative theory
focused more on what managers do and what constitutes good management practice.
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14 principles of management
division of work, authority, discipline, unity of command, unity of direction, subordination of the individual's interest to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure personnel, initiative, esprit de corps.
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Max Weber
developed a theory of authority structures and relations based on an ideal type of organization he called bureaucracy.
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Bureaucracy
a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
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Behavioral Approach
Based on organizational behavior research.
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Hawthorne Studies
studies to examine the effect of various lighting levels on worker productivity. Results: people's behavior and attitudes are closely related, group factors significantly affect individual behavior, group standards establish individual worker output, and money is less of a factor in output than are group standards, attitudes and security.
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Quantitative approach
the use of quantitative techniques such as statistics, optimization models, information models and computer simulations to improve decision making. Also known as management science.
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TQM: total quality management
a management philosophy devoted to continual improvement and responding to customer needs and expectations.
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Taylor's Scientific Management Principles
1. develop a science for each element of an individual's work to replace the rule-of-thumb method 2. Scientifically select, then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science developed. 4. Divide the work and responsibility almost equally between mgt and workers. Mgt does all work for which it is better suited than the workers.
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organizational behavior
Action > active behavior > reaction
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3 goals of organizational behavior
To explain, predict and influence behavior.
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First-line manager
individuals who manage the work of non-managerial employees.
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Job-related attitudes
job satisfaction, job involvement, organizational commitment, and employee engagement.
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2 personality tests
MBTI and Big Five model.
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Downward communication
communication that flows downward from managers to employees.
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Upward communication
communication that flows upward from employees to managers.
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Lateral communication
communication that takes place among any employees on the same organizational level.
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Chain network
communication flows according to the formal chain of command, both upward and downward.
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Wheel network
communication flows between a clearly identifiable and strong leader and others in a team. The leader serves as the hub through whom all communication passes.
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All-channel network
communication flows freely among all members of a work team.
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Workplace design should support
focused work, collaboration, learning and socialization.
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Motivation
the process by which a person's efforts are energized, directed and sustained toward attaining a goal. 3 key elements: energy, direction, persistence.
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Maslow's hierarchy of needs
physiological, safety, social, esteem, self-actualization
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McGregor's Theory X
employees dislike work, are lazy, avoid responsibility, and must be coerced to perform.
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McGregor's Theory Y
the assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction.
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Herzberg's Two-Factor Theory
the motivation theory that claims that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with job dissatisfaction.
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Hygiene Factors
factors that eliminate job dissatisfaction, but don't motivate.
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Motivators
factors that increase job satisfaction and motivation.
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Decision
making a choice from two or more alternatives
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Problem
an obstacle that makes it difficult to achieve a desired goal or purpose
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8 steps in decision making process
1. identify a problem 2. identify decision criteria 3. Allocating weights to the criteria 4. developing alternatives 5. analyzing alternatives 6. selecting an alternative 7. implementing the alternative 8. evaluating the decision process
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Rational Decision-making
describes choices that are logical and consistent while maximizing value.
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Bounded rationality
decision making that's rational, but limited (bounded) by an individual's ability to process information.
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Satisfice
accepting solutions that are "good enough"
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Intuitive decision-making
making decisions on the basis of experience, feelings, and accumulated judgment.
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Programmed Decisions
a repetitive decision that can be handled by a routine approach.
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Non-programmed decisions
unique and non-recurring decisions that require a custom-made solution.
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Procedure
a series of interrelated steps that a manager can use to apply a policy in response to a structured problem.
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Rule
an explicit statement that limits what a manager or employee can or cannot do.
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Policy
a general guideline for making a decision about a structured problem.
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Structured problem
straightforward, familiar, and easily defined problems
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Unstructured problems
problems that are new or unusual and for which information is ambiguous or incomplete.
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Certainty
a situation in which a manager can make an accurate decision because the outcome of every alternative choice is known
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Risk
a situation in which a manager is able to estimate the likelihood of outcomes that result from the choice of particular alternatives.
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Decisions under uncertainty
limited information prevents estimation of outcome probabilities for alternatives, forcing managers to rely on intuition and hunches.
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Maximax
the optimistic manager's choice to maximize the maximum payoff
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Maximin
the pessimistic manager's choice to maximize the minimum payoff.
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Minimax
the manager's choice to minimize maximum regret.
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Linear thinking style
a person's tendency to use external data and facts; the habit of processing information through rational, logical thinking.
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Nonlinear thinking style
a person's preference for internal sources of information; a method of processing this information with internal insights, feelings and hunches.
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Heuristics
using "rules-of-thumb" to simplify decision making
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Overconfidence bias
holding unrealistically positive views of oneself and one's performance
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Immediate gratification bias
choosing alternatives that offer immediate rewards and avoid immediate costs
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Anchoring effect
fixating on initial information and ignoring subsequent information.
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Selective perception bias
selecting, organizing and interpreting events based on the decision maker's biased perceptions.
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Confirmation bias
seeking out information that reaffirms past choices while discounting contradictory information.
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Framing bias
selecting and highlighting certain aspects of a situation while ignoring other aspects.
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Availability bias
losing decision-making objectivity by focusing on the most recent events.
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Representation bias
drawing analogies and seeing identical situations when none exist
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Randomness Bias
creating unfounded meaning out of random events
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Sunk cost errors
forgetting that current actions cannot influence past events and relate only to future consequences.
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Self-serving bias
taking quick credit for successes and blaming outside factors for failures.
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Hindsight bias
mistakenly believing that an event could have been predicted once the actual outcome is known (after the fact)
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