exam 1 study guide

Section 1 – Managing ppl in organizations: Organizational Behavior and HR
Organizational Behavior – “The systematic study of the actions and attitudes that people exhibit in organizations.”
Goal is to explain, predict, and shape human behavior.
What is an organization?
Two or more ppl
Coordinated social unit
Common goal
Formal Goals

Section 2 – Strategy and Strategic Organizational Behavior
Human Relations Movement – shift to beginning to care about ppl in workpla
Increasing # of studies focusing on “human” factor
Hawthrone Studies – under what conditions are people most productive?
Thought light played a role, realized it was because workers felt they were important at that time.
McGregor’s “theory y”
Basically people aren’t worthless, don’t always hate work, and can be motivated.
Human Capital as an asset – where we are now
Seen as strong source of competitive advantage
Part of “resource based view of the firm”
Organizations use their resources to create value.
Strategic Management – where we want to be in future
Two primary elements
Strategy Formaulation
Use “SWOT” analysis. SW internal, OT external
Strategy Implementation – how do we implement it?
Galbraith’s “star model”
People come last because it is better to design the organization first
Corporate Social Responsibility – obey home and international laws/standards

Section 3 – Motivation
Motivation – “Physiological processes that arouse and direct goal-directed behavior.”
Two kinds of motivation
Intrinsic Motivation – occurs when an individual is “turned on to one’s work because of the positive internal feelings that are generated by doing well
Extrinsic Motivation
Performance equation
P=AxMxO
Multiplicative
Need-Based theory of motivation
Needs-Physiological or psychological deficiencies that drive behavior.
Maslow-Strict
Alderfer’s not as strict
McClelland – Motivation is a function of 3 different needs
Need for achievement – desire to accomplish something hard
Need for affiliation – desire to spend time in social relationships
Need for power – desire to influence, coach, teach others to achieve
Job Design Approaches to Motivation – Focusues on improving satisfaction, motivation and performance while reducing absenteeis, turnover, etc.
Equity Theory (Adams) – Has its roots in cognitive dissonance theory
Cognitive dissonance creates psychological discomfort
Psychological comfort casues “dissonance reduction” activities.
Components
Outcomes/Inputs ratio – can be equitable or inequitable
This potentially creates dissonance and motivates behavior
Conclusions
Treating equitably is not the same as equally
Need to pay attention to perceptions of equity and involve others
Expectancy Theory – If I put forth the effort, I will get performance
Performance is rewarded
Motivation is a product of expectancy, instrumentality, and valence
Job satisfaction vs. engagement
Job satisfaction – an affective or emotional response to ones job.
Engagement – more likely to be productive than satisfaction
Assumes satisfaction plus excitement
More strongly correlated (negative) with turnover than is satisfaction
Measured by looking at 3 key behaviors
Say – employees speak positively about company both currently and in future
Stay – want to continue working here
Serve – Do best job they can to contribute to business success.
Section 4 – Performance feedback, rewards, and reinforcement

The performance management cycle – within any organization, performance is managed typically in a cyclical fashion
Two fundamental truths about feedback
People who seek and act upon feedback are more succeful and effective
Perception is reality
Feedback has two major functions
Instructional – gives info
Motivational – gives motivation
What is 360 feedback
A process in which feedback about a persons behavior is collected from multiple perspectives. (including self)
Look for patterns
What is feedforward? Marshall Goldsmith
Focuses on future rather than past
A complement too not a substitute to feedback
Reward Systems
Four basic approaches to allocating awards
Profit maximization – keep it
Reward equity – allocate based on work
Reward equality – everyone gets same amount
Member need – who needs it most
Plenty of ways to try to motivate people
Operant Conditioning
Refers to the shaping of behavior by using the following
Administration or withdrawal of a response/consequence
A reponse/consequence that is positive or negative
Four basic types of operant conditioning
Negative reinforcement
Positive reinforcement
Punishment
Extinction
Positive reinforcement can be applied in a variety of ways
Use continuous reinforcement to shape behavior and then intermittent reinforcement to maintain it over time

Section 5 – Compensation
The rewards, usually monetary in nature, that reinforce behavior, organizational membership, performance, and retention
Directly relates to corporations ability to attract and hire best possible employees
Strongly related to individual motivation, satisfaction, and engagement
Needs to be aligned with goals and strategy of organization
Different Types
Merit Based
Link performance appraisal ratings to annual pay increases
Effective way of reinforcing performance
Incentive/variable
Bonuses, commission, etc.
Usually linked to organization and individual targets
When used as bonuses, typically have 2 elements
Funding – organization targets need to be met in order to fund
Distribution – bonus pools distributed according to plan
Profit sharing and equity/ownership
Profit sharing
Payments are based on a measure of organization performance (profits) and payments do not become a part of base pay
Equity/ownership
Encourages employees to focus on the success of the organization as a whole entity
Employee stock ownership plans
Employee ownership plans that give employees certain tax and financial advantages when stock is granted to employees
Stock options
Can help employees focus on overall organization performance and success
Balanced scorecard approach
Uses a combo of compensation strategies
Can provide a balanced focus on individual, team, and organizational performance.
More complex therefore requires more development
Section 6 – Benefits
Grown in importance and variety
Don’t directly affect employees performance, but inadequate benefits can cause dissatisfaction
Add about 40% to payroll costs

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Section 7 – Group and team effectiveness
Not all groups are teams!
Group
Two or more independent individuals who influence one another through social interaction
Members can play a variety of different roles
Task-oriented roles
Maintenance roles
Individual roles
Models of group development
Tuckman model – teams develop on predictable lines
Punctuated equilibrium model
Comes form evolutionary biology
Long periods of inactivity, punctuated by change
Productivity of group heavily depends on initial meeting
Team
Two or more interdependent ppl who operate within a larger social system, perform tasks relevant to the organizations mission, affect others inside and outside the organization, and have identifiable members

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