Flashcards in EXAM 2 STUDY GUIDE QUESTIONS Deck (61):
What is organizational culture?
Organizational culture: provides employees with a road map and a set of rules for how work gets done and how people interact in a company (210)
group of people within a culture that have a distinction from those in the larger overall culture
What are organizational culture key elements and key features?
Values, philosophy, purpose of company
Power structure in company
Work rules and norms
Reward and punishment system of company
What factors influence an organization’s culture?
Role of founders – how does the founder act? Do they encourage innovation? How do they absorb anxiety associated with risk?
Role of teams – how do teams encounter big problems, solve them and perceive effects of their solutions? Creating organizational routines
Role of organizational leaders – give clues about appropriate behavior and standards
The size of the company
Working environment whether it be in an office or elsewhere
What are the different types of culture and how do they impact the firm and its employees?
Artifacts (most basic level) – day to day behaviors that are observed, visible organizational structures, processes, languages, technology, style, rituals, ceremonies
Beliefs and Values – what is deemed important by members of organization, what is important in organization
Assumptions – underlying essence of why members of an organization act the way they do
Why are individual differences important?
They influence how we think and act, and the perspectives we come from
Know the different types of ability
Cognitive ability: things required to do mental abilities
Physical ability: things such as endurance or stamina required to do a job
Emotional ability: identifying your own and other people’s emotions
Know the different dimensions used to assess emotional intelligence.
Emotional intelligence: capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing our emotions and relationships in a productive manner (343)
Four components: (343)
Self-awareness – inward – ability to recognize one’s own emotions and understand how those emotions impact others
Self-management – inward – regulation (self-control) and motivation (functions as source of optimism and inspiration, desire for achievement)
Social awareness –outward – individual and group basis, empathy, active interest in concerns, understand group dynamics and relationships
Relationship management – outward – abilities to influence and inspire others, to constructively manage conflict and build and cultivate productive teams
Know the different dimensions of the Big 5 Personality traits. What are their pros and cons?
Extraversion: excitability, sociability, assertiveness, expressiveness
Openness: being open to experiences and willing to be original, imaginative, nonconforming, unconventional, creative, and autonomous
Conscientiousness: composed of achievement and dependability, task competence, initiative, persistence, tenacity
Agreeableness: tendency to be trusting, compliant, caring, gentle, friendliness, likability of a leader
Emotional stability (neuroticism): ability to remain calm and confident, especially in times of crisis
Know the different dimensions of the Meyers-Briggs Type Indicator (MBTI)
Sensing (S), Intuition (N), Thinking (T), Feeling (F), Extraverted (E), Introverted (I), [added later on were: Judgement (J) and Perception (P)]
S-N, T-F, E-I, J-P
16 different personality types
Thinking – organized, carefully analyzed info
Feelers – impact of info on others
Sensing (S) – through five physical senses, focus on here and now, concentrate on info that is real and tangible
Intuition (N) – through patterns, open to new possibilities and experimentation, focus on connections and relationships between facts
Judging (J) – organizing, concluding activities in a structured and analytical way
Perceiving (P) – through obtaining new info, open to new ideas and possibilities, prefer not to be rushed
What is the locus of control?
Manner in which individuals respond to specific events or external stimuli; extent to which an individual believes that he or she can control or influence the outcome of events through their actions, personal determination, perseverance, commitment
Personal ability (internal, stable)
Task difficulty (external, stable)
Effort (internal, unstable)
Luck or chance (external, unstable)
The span of influence over our own lives and what happens in them that we believe we have.
Intelligence is not fixed but is continuously growing throughout life
Tendency to judge others who have different pacing styles from us – like when you like to get work done… more at beginning, middle, and or end?
Great Man Theory
explain leadership by examining traits and characteristics of individuals considered to be historically great leaders, researchers believe leaders are born with extraordinary qualities, descending from superior family lines
Traits-based leaership theory
theory of leadership that tries to reveal a set of universal traits and skills that are relevant in all leadership situations
a. Self confidence
b. Drive to take initiative
c. High levels of physical energy
d. Motivation to complete tasks
Core set of learned skills/capabilities that are relevant to effective leadership
a. Cognitive skills
b. Technical skills
c. Interpersonal skills
Transformational Leadership Theory
set of behaviors that leaders use to transform or change their organization and individuals for the better
a. Influence followers to work toward a common vision and achieve results that exceed expectations
b. Charisma, vision
c. Inspirational motivation
d. Intellectual stimulation
e. Individualized consideration
Transactional Leadership Theory
1. style of leadership in which a leader provides something to subordinates in return for something the subordinates want (319, 320)
a. Contingent reward – carrot and stick method, exchange process between leaders and followers where leaders offer rewards to subordinates in exchange for their services
b. Management by exception (MBE) – method of leadership that dictates when leaders should intervene to increase a subordinate’s effort to meet standards
i. Active MBE – constantly monitor employees to make sure they are meeting standards and avoiding mistakes, positive reinforcement, negative criticism
ii. Passive MBE - take corrective action only when subordinates fall below expectations, more autonomous, more effective in long term
Leader-Member Exchange Theory (LMX)
1. actual relationship between leader and follower, leaders treat each member differently, unique relationships with follower (321)
a. High exchange or low exchange relationship leads to in group and out group
b. Created the relationship life cycle (322, 323)
i. Stranger phase
ii. Acquaintance phase
iii. Mature partnership phase
Fiedler's contingecy model
1. contingency theory in which leaders are more effective depending on the favorability of a leadership situation, which is described by leader – member relations, task structure, and positional power of the leader (323, 324)
a. Each situation is characterized by certain variables that make situation favorable or unfavorable for leadership
b. Leader – member relations – good/bad, quality of relationships between leaders and followers, extent to which subordinates are loyal to leader
c. Task structure – structured/unstructured, extent to which standard procedures are in place to complete a task
d. Positional power – strong/weak, refers to extent to which leader has authority to evaluate performance and administer rewards or punishments
Hersey and Blanchard's Situational Theory
1. leaders have flexibility and range of skills to adapt their behavior to the maturity of their subordinates (324, 325)
a. Based on interplay among
i. Amount of task-related behaviors a leader exhibits
ii. Amount of relationship-related behaviors a leader exhibits
iii. Level at which followers are mature enough to perform specific task, function, objective
1. Four levels of maturity – employee will High/Low, employee skill low/high
House's Path-Goal Thoery
most important aspect of leadership is followers’ belief they can complete a task and that upon completion, they will gain rewards and satisfaction, includes a situational variable w/sliding scale – follower’s belief in his or her ability to complete a task (325, 326)
leadership substitutes and neutralizers (326)
a. substitutes – aspects of situation that render leadership unnecessary
b. Neutralizers – aspects hindering a leader’s ability to act in a particular way
What are the different sources & contingencies of power in organizations?
interpersonal power, positional, personal power, relational power
potential of one individual or group to influence the behavior, thinking, or attitudes of another individual or group
means/vehicle by which power is exercised
o Legitimate power – based on formal position an individual holes in an organization
o Reward power – gives someone ability to reward another for his/her behavior
o Coercive power – gives someone the ability to punish another for his/her behavior
o Expert power – based on individual having specialized knowledge/skills
o Referent power – based on personal liking individual has for another
• Positional power – explains interpersonal power
o individual’s formal place within an organization’s structure, can be described in terms of position’s (363)
♣ Centrality – gives individuals access to information
♣ Flexibility – freedom to exercise judgement, power to decide how to act
♣ Visibility – number of influential people with whom an individual normally interacts in an organization
♣ Relevance – individuals who are engaged in activities that are closely aligned with an organization’s priorities – relevance of his/her department’s activities for company
Personal power - explains interpersonal power
o obtain from having personal attributes others desire such as (363, 364)
• Technical – necessary task related skills
• Human - relationships
• Conceptual – see organization as whole
♣ Attractiveness – physical appearance, charisma
♣ Effort – work hard, be committed to success
♣ Legitimacy - credibility
• power gained from the types of networks to which an individual belongs, types of people in those networks, and the strength of the relationships within the networks – form of informal power based on nature of an individual’s various relationships in an organization (365, 366)
o Breadth – types of networks to which an individual belongs, diversity of contacts within networks
o Portability – ability to carry network with him/her if leave jobs
What are the different influence tactics? How and why do they work? What are the different ways that people react to them? Be prepared to identify different sources of power and influence tactics in scenarios. – Ch. 14
• Pushing styles (373) – push opinions and perspectives on others though reasoning and/or application of incentives or pressures
• Pulling styles (373, 374) – draw information from others in order to find common ground
• Moving away styles – disengage from situation, opt out of influence process for period of time (374)
• Law of reciprocity – every favor must be repaid at some time (374)
• Liking – more likely to say yes to someone he or she likes (374)
• Authority – positional power – position and authority in hierarchy (374)
• Scarcity - source of potential conflict – asserts that opportunities seem more valuable when their availability is limited (375)
rational model of decision making
1. Problem/opportunity is defined
2. Objectives and goals are identified
3. Objectives are weighted according to importance of each
4. Possible courses of action or alternatives are considered
5. Each objective is rated according to how well it will achieve the desired course of action
6. Optimal decision is chosen
what does rational decision model assume
Model assumes that people have the time to go through entire process and have all relevant info needed to make the accurate assessment and conclusions
It is difficult to follow this model because we have incomplete, imperfect, misleading info, limited ability or background to process info, limited time to make decision, conflicting preferences, incentives, goals of various organizational players, ambiguity, conditions of risk, conditions of uncertainty, intuitive decision making
constraints of model of rational
bounded rationality, satisficing
what are different decision making biases?
• Heuristics – rules of thumb typically based on our recall of info, assessment of its relative salience, evaluation of perceived choices (389)
o Availability heuristic – emotional, vivid events are more memorable than unemotional or vague events
o Representativeness heuristic – individuals tend to look for traits in another person or situation that correspond with previously formed stereotypes
o Adjustment heuristic – individuals make estimates or choices based on a certain starting point – failure to consider alternatives in decision-making process
♣ Cognitive heuristic – speed up decision making process but can result in less than ideal decision
o Confirmation bias – occurs when people have already made up their mind about a decision and then seek info that confirms a decision and ignore/neglect to seek info that may disconfirm the decision
o Escalation of commitment – decision makers commit themselves to a particular course of action beyond level suggested by rationally as a means of justifying previous commitment
o Status Quo Bias – resistant to change and favor status quo
o Framing – decision-making bias that arises from alternative presentations of the same information that in turn can significantly alter a decision
♣ Choose between possible losses – we take the riskier option
What were the key learning points from the kidney transplant exercise?
It is difficult to accommodate for everyone and bias plays a role
What are the different ethical frameworks that people use to make allocation decisions when resources are scare? (387, 388)
Bounded rationality: set of boundaries or constraints that tend to complicate rational decision making process
Satisficing: act of choosing a solution that is “good enough”
Conditions of risk – info about objectives, priorities, potential courses of action but not all info about possible outcomes for each course of action - and conditions of uncertainty – info related to objectives and priorities but do not have complete info about courses of action/possible outcomes of each
Drawing from intuition
work space, capital, people, plant equipment
What is the advocacy effect and how does it work?
Advocacy effect: when you advocate for someone or something, you become more in tune with it
What were the key learning points from the Supplier Negotiation?
Negotiating is difficult and being prepared is key.
Know the key terms in a negotiation (what they do & why they are important) & the information needed to plan appropriately for a negotiation.
BATNA – best alternative to a negotiated agreement; what one will do instead of accepting the offer
Reservation Point – lowest point before walking away
What biases are particularly prevalent in a negotiation?
Escalation of commitment – irrational escalation of commitment
Anchoring and adjustment – first offers have power to anchor negotiation and determine outcomes
Framing – manner in which options are presented can alter ways in which negotiators perceive value of alternatives
Availability of information – availability of info can overwhelm a person’s ability to analyze a negotiation effectively – can use available, not reliable, information when assessing alternatives, interests, priorities and wind up with less satisfying deal
Negotiator overconfidence – inflated sense of confidence in judgement and choices
What strategies and tactics are helpful to expand the pie in a negotiation?
Willing to cooperate
Adding other issues to negotiation
Have opportunities for reaching an agreement or create them
Share info, communicate interests
– FIXED PIE – single issue negotiations, attain only one party’s interests
EXPAND THE PIE – multiple issues, assess each side’s relative preferences or interests with respect to a number of different issues that have been put on table
What were the key learning points from barnga exercise and the Global Teams case?
Barnga exercise showed how difficult it can be to be new to an organization and have to learn its culture and ways of doing things
Global Teams Case: cross cultural differences can constitute lots of issues, there can be different methods of doing things and communication differences when having different team aspects staged in various cultures
How do different cultures communicate and manage issues of conflict?
Some avoid it? Idk
What are the pros and cons of virtual teams?
Pros: work can be done quickly and efficiently if things go smoothly, time zones can mean work is done 24/7
Cons: communication issues, technical/technology issues
What is globalization and what are its pros and cons?
Globalization: ongoing social, economic, political, technological integration processes that depends and broadens relationship and interdependencies among nations – their people, their firms, organizations, governments
Cheaper for companies to make one or only a few versions of product for world market
Develop common standards to save money
Consistency in quality important requirement to do business
International organization for standardization (ISO 9001:2000 series)
Needs of customers for many product/services are growing more similar
What are the different factors that act as a catalyst for globalization?
Rise of global standards
Growing trade and investment
Internet and info tech
What is national culture? How would you describe its characteristics? (
National culture: dominant culture within the political boundaries of the nation-state, usually culture of majority or those with greatest political or economic power, greatest effect on international business
Laws, nature, language of business transactions
National culture leads to business culture, organizational culture, occupational culture
Business culture: norms, values, beliefs that pertain to all aspects of doing business in a culture
Organizational culture: norms, values, beliefs concerning an organization that are shared by members of organization
Occupational cultures: distinct cultures of occupational groups such as physicians, lawyers, accountants, craftspeople
What are some different dimensions on which to investigate cultural diversity? What are some examples of differences in norms and values? Gift giving behaviors & mistakes?
What are Hofstede’s cultural dimensions? How can you use this framework to understand international management practices?
Power distance - expectations regarding equality among people, how cultures deal with inequality – high power distance: obedience to parents, elders, graduate from elite university or high social class
Uncertainty avoidance – typical reactions to situations considered different and dangerous – high uncertainty avoidance: structure social systems, rules, regulations dominate, risky situations create stress, upset people, loyalty to organization
Individualism – relationship between individual and the group in society, collectivism: people in terms of group where they belong
Masculinity – expectations regarding gender roles – high masculinity – business culture of society takes on traditional masculine values
Long-term orientation – basic orientation towards time – personal and educational skills, security, growth, long-term paybacks
Short term – quick rewards, rapid promo
Knowing what categories a country practices allows you to exert your power more efficiently
how many dimensions are in hofstede's?
What are Trompenaars’s cultural dimensions? How can you use this framework to understand international management practices? (Ch. 23, 635-646)
Universalism (deal with people based on rules) v. particularism (dealing with other people based on personal relationships) – choice of dealing with other people based on rules or based on personal relationships
Collectivism v. individualism – focus on group membership vs. individual characteristics
Neutral (not showing much emotion) v. affective (show emotions) – range of feelings outwardly expressed in society
Diffuse v. specific (business segregated from other parts of life) – types of involvement people have w/each other, range from all aspects of life to specific components
Achievement (status through performance and accomplishments) v. ascription (inherent defines status) – assignment of status in society based on performance vs. assignment based on heritage
Past, present, future or a mix – orientation of society to past, present, future or some combo of the three – time orientation
Past oriented societies – life follows pre-ordained course based on traditions or will of God, symbols, rituals
Control of vs. accommodation with nature – nature viewed as something to be controlled v to be accepted – internal v external locus of control
how many dimensions does trompenaar's have
How does the GLOBE project measure cultural differences? What was the objective of the GLOBE project? How is it related to the Hofestede’s and the Trompenaars cultural dimensions? (Ch. 23, 634, 635)
9 total cultural dimensions
5 dimensions of Hofstede + performance orientation: degree to which a society encourages its members to innovate, improve their performance and strive for excellence
high performance orientation: favor training and development
low performance orientation: family, background
+ humane orientation: indicator of the extent to which individuals are expected to be fair, altruistic, caring, generous
high humane orientation: belonging, affiliation
less human orientation: self-interest and self-gratification
GLOBE data shows countries can be categorized by ten clusters – Anglo, Confucian Asia, E Europe, Germanic Europe, Latin America, Latin Europe, Middle East, Nordic Europe, S Asia, Sub-Saharan
What are the challenges faced by firms doing business abroad?
What are the different metaphors for teamwork?
Sports – well defined, low hierarchy, clear objectives
Military – well defined, hierarchy, clear objectives
Family – broad, multiple domains, hierarchy but nurturing, nonexistent objectives
Community – broad, multiple domains, informal roles, objectives more concrete than family
Associates – most limited scope, little hierarch, explicit objectives
How can cultural differences be taken into account in different managing practices, different advertising strategies, and different organizational strategies?
Depends on how you manage and whether you state clear objectives or not
How do the expectations of working in teams differ across cultures?
Some societies are more individualistic, focusing on the individual whereas other societies are collectivist, which entails more of a group aspect.