Koofers

Chapters 9-12 - Flashcards

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Class:MGT 3303 - MGT OF ORGANIZATIO
Subject:Management
University:Texas State University - San Marcos
Term:Fall 2013
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Ch. 9 Human resource management consists of the activities managers perform to plan for, attract, develop, and retain the effective workplace
Strategic human resource planning consists of developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs
Human capital the economic or productive potential of employee knowledge, experience, and actions
knowledge worker someone whose occupation is principally concerned with generating or interpreting information as opposed to manual labor
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social capital the economic or productive potential of strong, trusting and cooperative relationships
job analysis 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; determining the basic elements of a job by observation and analysis
job specification describes the minimum qualifications a person must have to perform a job successfully ; "who" ideal candidate possesses
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human resource inventory a report listing your organizations employees by name, education, training, languages, and other important information

30-35% are engaged in their work
2/3 not engaged in their work
national labor relations board enforces procedures where by employees may vote to have a union and for collective bargaining
collective bargaining consists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security
fair labor standards act of 1938 established minimum living standards for workers engaged and interstate commerce, including provision of a federal minimum wage this currently  is $7.25 an hour and a maximum working is 40 hours a week and overtime must be paid time and a half

social security act in 1935 established the US retirement system
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equal employment opportunity commission enforces anti discrimination and other employment related laws
work place discrimination occurs when people are hired or promoted/ or denied hiring or promotion/ for reasons not relevant to the job

- we cannot discriminate a person if they can perform the essential functions of the job unless accommodating them creates undo hardship (too expensive)
average accommodation is $500

2 types of discrimination: disparate treatment/adverse impact
adverse impact occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class ( such as Hispanics) over another group of people such as non Hispanic whites
ex: height requirement for police officers
disparate treatment results when employees from protected groups ( such as disabled individuals) are intentionally treated differently

ex: males are not allowed to be waitresses at hooters, they have to be a female
ex: Bona Fide occupational qualification (BFOQ)- a catholic church rejected all non Catholics applicants for priest because they lacked an occupational qualification( being catholic)
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affirmative action focuses on achieving equality of opportunity with in an organization
sexual harassment consists of unwanted sexual attention that creates an adverse work environment
2 types of sexual harassment's:
quid pro quo- employee outcomes depend on whether an individual submits to sexual harassment/requests
ex: male supervisor promises a promotion to subordinate who dates him
hostile work environment- unwelcome and demeaning sexually related behavior creates intimidating work environment
ex: telling racist jokes/ sending inappropriate emails
recruiting process of locating and attracting qualified applicants for jobs open in the organization

internal/external
ecruiting- submitting resume and complete application online

ex: Zappos had a very fun work environment, chill humble, dress casual(artifacts)
internal recruiting means making people already employed by the organization aware of job openings
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Job posting placing information about job vacancies and qualifications on bulletin boards, and newsletters, and organizations intranet
external recruiting attracting job applicants from outside the organization
realistic job preview(RJP) 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 screening of job applicants to hire the best candidate
-application forms resumes, and reference checks
-DON'T PROVIDE MISLEADING INFORMATION

3 types of selection tools: background information, interviewing, employment tests
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unstructured interview involves asking probing questions to find out what the applicant is like
- no fixed set of questions  and no systematic scoring proceadure
structured interview involves asking all applicants the same questions and comparing their responses to a standardized set of answers
situational interview the interviewer focuses on hypothetical situations
ex: if a customer gets upset, how would you handle it?
behavioral description interview interviewer explores what applicants have actually done in the past
ex:In an interview you are asked if a customer made you mad how did you handle it?
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employment tests legally considered to consist of any procedure used in the employment selection decision process
- measure ability, intelligence performance, honesty, and personality
-reliability, validity
assessment center in which management candidates participate in activities for a few days while being assessed by evaluators
reliability the degree to which a test measures the same thing consistently
validity the test measures what it purports to measure and is free of bias
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orientation helping the newcomer fit smoothly into the job and the organization
- designed to give employees the information they need to be successful
- for managers its called "onboarding"
training upgrading skills of technical and operational employees
- educating technical and operational employees and how to better do their current jobs
ex: sales training/ customer service training
development
5 steps in the training process 1) assessment- is training needed?
2) objectives- what should training achieve?
3) selection-which training methods should be used?
4) implementation- how should training be effected?
5) evaluation-is the training working?
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performance appraisal consists of (1) assessing an employees performance (2) providing him or her with feedback
performance management the continuous cycle of improving job performance through goal setting, feedback, and coaching and rewards and positive reinforcement
ex: aviation, surgical
objective appraisal also called results appraisal, based on facts and are often numerical
-measure results
-harder to challenge legally
ex: putting your ID number before every sale transaction
subjective appraisal based on a managers perceptions of an employees (1) training or (2) behaviors
ex: if employee is nice and respective to others
-trait appraisals- rating of attitude and leadership and initiative
-Behaviorally anchored rating scale- assessing you on personality traits( difficult to be accurate)
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360 degree assessment also called the 360 degree feedback appraisal, in which employees are appraised not only by their managerial superiors but also by peers, subordinates and sometimes clients
forced ranking performance review systems all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve

- Jack Welsch CEO to GE
GE's 3 buckets
top 20%
middle 70%
bottom 10%
if your in the bottom 10 % your fired
(ugh)formal appraisals conducted at specific times throughout the year and are based on performance measures that have been established in advance
informal appraisals conducted on an unscheduled basis and consists of less rigorous indications of employee performance
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compensation wages or salaries, incentives, benefits
base pay consists of the basic wage or salary, paid employees in exchange for doing a job
benefits also called fringe benefits, are additional non monetary forms of compensation
- flexible/ cafeteria style-picking out which benefits you want
- growing more expensive each year
transfer/lateral movement of an employee to a different job with similar responsibilities

-moving sideways( trying new things) not a bad thing anymore
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dismissal layoffs
downsizing
firings
labor unions organizations of employees formed to protect and advance their members interests by bargaining with management over job related issues
Union security clause the part of the labor management agreement that states that employees who receive union benefits must join the union or at least pay dues to it
right to work laws statutes that prohibit employees to joins union as a condition of employment
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two-tier wage contracts new employees are paid less or receive less benefits then better end employees have
cost-of-living adjustment(COLA) clause during the period of the contract ties future wage increases to increases cost of living
givebacks the union agrees to give up previous wage or benefit gains in return for something else
grievance a complaint by an employee that management has violated the terms of the labor management agreement
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mediation process in which a neutral third party, a mediator, listens to both side in a dispute, makes suggestions and encourages them to agree on a soluation
arbitration the process in which a neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties agreed will be binding on them
measuring job performance central tendency- most employees are rated as being average
halo error- employees who perform on one aspect of their jobs are perceived as performing well on parts of their jobs
leniency error- all workers are rated as performing at a high level
Ch.10 reactive change making changes in response to problems or opportunities as they arrive
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proactive change also called planned change, involves making carefully thought out changes in anticipation of possible or unexpected problems or opportunities
technology it 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
resistance to change an emotional/ behavioral response to real or imagined threats to an established work routine

adaptive change reintroduction of a familiar practice
- least threatening
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innovative change the introduction of a practice that is new to the organization
- somewhat threatening
radically innovative change involves introducing a practice that is new to the industry
- very threatening
benchmarking a process by which a company compares its performance with that of a higher performing organization
organizational development a set of techniques for implementing planned change to make people and organizations more effective
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changed agent a consultant with a background and behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways
intervention the attempt to correct the diagnosed problem
self efficiency confidence that you can learn and accomplish things

ex: video on guy who talked about children not getting encouragement on art problems and giving up too quickly based on others reactions
seeds of innovation the starting point for organizational innovation
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product innovation a change in the appearance or the performance of a product or service for the creation of a new one
ex: starbucks sold premium coffee before it was in fashion
process innovation change in the way a product or service in conceived, manufactured, or disseminated
ex: amazons online retail business
incremental innovation creation of products, services, or technologies that modify existing ones
ex: apples iphone 4
radical innovation creation of products, services, or technologies that replace existing ones
ex: mp3 files replacing CDs
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2 myths about innovation 1) innovation happens in Eureka moment- in most cases innovation is the product of a creative mind, hard work, trial and error, and persistence
2) innovation can be systematized-  while a culture of innovation can help increase the change of developing new and successful products/services there are no guarantees
- successful innovation depends on several factors
the organizational development(OD) process 1) diagnosis- what is the problem?
2)intervention- what shall we do about it?
3) evaluation- how well has that intervention worked?
4) feedback- how can the diagnosis be further relied

ex: Patagonia has long been a supporter of the environmental movement
Personality consists of the stable psychological traits and behavioral attributes that give a person his or her identity
Leading defined as motivating, directing, and otherwise influencing people to work hard to achieve the organization's goals
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The Big Five personality dimensions

-Extroversion. How outgoing, talkative, sociable, and assertive a person is.

-Agreeableness. How trusting, good-natured, cooperative, and soft-hearted one is.

-Conscientiousness. How dependable, responsible, achievement-oriented, and persistent one is.

-Emotional stability. How relaxed, secure, and unworried one is.

-Openness to experience. How intellectual, imaginative, curious, and broad-minded one is.

Extroversion the outgoing personality
Conscientiousness the dependable personality…(strong work ethic)
proactive personality someone who is more apt to take initiative and persevere to influence the environment.
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Five Traits Important in Organizations --(1) locus of control, (2) self-efficacy, (3) self-esteem, (4) self-monitoring, and (5) emotional intelligence.
locus of control

·         indicates how much people believe they control their fate through their own efforts.  Two Aspects:

-          Expect different degrees of structure and compliance for each type.

-          Employ different reward systems for each type


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two

Self-efficacy 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

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self-esteem

·         --the extent to which people like or dislike themselves, their overall self-evaluation.

Self-monitoring the extent to which people are able to observe their own behavior and adapt it to external situations.
emotional intelligence

·         the ability to cope, to empathize with others, and to be self-motivated.

Daniel Goleman --a psychologist who popularized the trait of EI (Emotional intelligence), concluded that EI is composed of four key components: self-awareness, self-management, social awareness, and relationship management
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organizational behavior (OB)

·         which is dedicated to better understanding and management of people at work; tries to help managers not only explain workplace behavior but also to predict it, so that they can better lead and motivate their employees to perform productively.

Values abstract ideals that guide one's thinking and behavior across all situations
Attitude a learned predisposition toward a given object
The affective component “I feel.” The affective component of an attitude consists of the feelings or emotions one has about a situation.
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The cognitive component —“I believe.” The cognitive component of an attitude consists of the beliefs and knowledge one has about a situation
The behavioral component —“I intend.” The behavioral component of an attitude, also known as the intentional component, refers to how one intends or expects to behave toward a situation.liefs and knowledge one has about a situation
Leon Festinger

·         In 1957, the psychologist and his associates penetrated a cult whose members predicted that most people on earth would perish in a cataclysmic event except for a handful that would be rescued by aliens in a flying saucer. Festinger found himself standing with cult members on a hilltop awaiting the event, which, of course, did not happen. Later he proposed the term cognitive dissonance to explain how they rationalized the failure of their prophecy. Have you observed people employing this mechanism when the surefire thing they predicted did not occur?

cognitive dissonance describes the psychological discomfort a person experiences between his or her cognitive attitude and incompatible behavior.
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Behavior their actions and judgments
Perception the process of interpreting and understanding one's environment
Stereotyping

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

(1) sex-role stereotypes, (2) age stereotypes, and (3) race/ethnicity stereotypes

halo effect we form an impression of an individual based on a single trait
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The recency effect

·         the tendency to remember recent information better than earlier information

Causal 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-fulfilling prophecy also known as the Pygmalion (“pig-mail-yun”) 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
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self-serving bias

·         people tend to take more personal responsibility for success than for failure.

employee engagement

·         defined as 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
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Turnover when employees leave their jobs.
Onboarding programs help employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, culture, and politics by clarifying work-role expectations and responsibilities.
Organizational citizenship behaviors those employee behaviors that are not directly part of employees' job descriptions—that exceed their work-role requirements.
counterproductive work behaviors (CWB)

·         types of behavior that harm employees and the organization as a whole.

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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.
Internal dimensions of diversity -- those human differences that exert a powerful, sustained effect throughout every stage of our lives
External dimensions of diversity -- include an element of choice; they consist of the personal characteristics that people acquire, discard, or modify throughout their lives
glass ceiling the metaphor for an invisible barrier preventing women and minorities from being promoted to top executive jobs
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Americans with Disabilities Act prohibits discrimination against the disabled and requires organizations to reasonably accommodate an individual's disabilities
Underemployed

·         working at jobs that require less education than they have—such as tending bar, managing video stores, or other jobs that someone with less education could do.

Ethnocentrism
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.
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Stressor the source of stress
Hans Selye -- considered the father of the modern concept of stress; says stress is “the nonspecific response of the body to any demand made upon it.”
Type A behavior pattern meaning they are involved in a chronic, determined struggle to accomplish more in less time.
Roles sets of behaviors that people expect of occupants of a position
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Burnout a state of emotional, mental, and even physical exhaustion
buffers-- or administrative changes

·         managers make to reduce the stressors that lead to employee burnout

• Employee assistance programs (EAPs) 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
A holistic wellness program focuses on self-responsibility, nutritional awareness, relaxation techniques, physical fitness, and environmental awareness.
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Motivation the psychological processes that arouse and direct goal-directed behavior
An extrinsic reward

·         the payoff, such as money, that a person receives from others for performing a particular task

An intrinsic reward

·         the satisfaction, such as a feeling of accomplishment, that a person receives from performing the particular task itself.

Content perspectives, also known as need-based perspectives

·         are theories that emphasize the needs that motivate people.

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Needs

·         defined as physiological or psychological deficiencies that arouse behavior.

·         hierarchy of needs theory-- proposes that people are motivated by five levels of needs: (1) physiological, (2) safety, (3) love, (4) esteem, and (5) self-actualization

Abraham Maslow

·         creator of hierarchy of needs theory

-1. Physiological Needs  These are the most basic human physical needs, in which one is concerned with having food, clothing, shelter, and comfort and with self-preservation.

2. Safety Needs  These needs are concerned with physical safety and emotional security, so that a person is concerned with avoiding violence and threats.

3. Love Needs Once basic needs and security are taken care of, people look for love, friendship, and affection.

4. Esteem Needs  After they meet their social needs, people focus on such matters as self-respect, status, reputation, recognition, and self-confidence.

5. Self-Actualization Needs  The highest level of need, self-actualization is self-fulfillment—the need to develop one's fullest potential, to become the best one is capable of being.

ERG theory assumes that three basic needs influence behavior

·         existence, relatedness, and growth,

acquired needs theory states that three needs—achievement, affiliation, and power—are major motives determining people's behavior in the workplace.
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David McClelland founder of acquired needs theory
two-factor theory

·         proposed that work satisfaction and dissatisfaction arise from two different factors—work satisfaction from motivating factors and work dissatisfaction from hygiene factors.

Frederick Herzberg founder of two-factor theory
hygiene factors are factors associated with job dissatisfaction—such as salary, working conditions, interpersonal relationships, and company policy—all of which affect the job context in which people work
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motivating factors, or simply motivators

·         are factors associated with job satisfaction—such as achievement, recognition, responsibility, and advancement—all of which affect the job content or the rewards of work performance

Process perspectives

·         are concerned with the thought processes by which people decide how to act

Equity --theory focuses on employee perceptions as to how fairly they think they are being treated compared with others
J. Stacey Adams developed the equity theory
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expectancy theory -- suggests that people are motivated by two things: (1) how much they want something and (2) how likely they think they are to get it.
Victor Vroom developed the expectancy theory
Expectancy

·         the belief that a particular level of effort will lead to a particular level of performance.

Instrumentality

·         the expectation that successful performance of the task will lead to the outcome desired.

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Valence is value the importance a worker assigns to the possible outcome or reward.
Goal setting theory suggests that employees can be motivated by goals that are specific and challenging but achievable
Job design

·         -- (1) the division of an organization's work among its employees and (2) 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
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job enlargement

·         consists of increasing the number of tasks in a job to increase variety and motivation.

The job characteristics model consists of (a) five core job characteristics that affect (b) three critical psychological states of an employee that in turn affect (c) work outcomes—the employee's motivation, performance, and satisfaction.
reinforcement theory which attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated.
Reinforcement

·         anything that causes a given behavior to be repeated or inhibited

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Positive reinforcement

·         the use of positive consequences to strengthen a particular behavior.

Negative reinforcement

·         is the process of strengthening a behavior by withdrawing something negative.

Extinction the weakening of behavior by ignoring it or making sure it is not reinforced
Punishment the process of weakening behavior by presenting something negative or withdrawing something positive.
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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 earnings the company made from their sales
Bonuses cash awards given to employees who achieve specific performance objectives
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Profit sharing the distribution to employees of a percentage of the company's profits
Gainsharing 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

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List View: Terms & Definitions

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 Ch. 9 Human resource managementconsists of the activities managers perform to plan for, attract, develop, and retain the effective workplace
 Strategic human resource planningconsists of developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs
 Human capitalthe economic or productive potential of employee knowledge, experience, and actions
 knowledge workersomeone whose occupation is principally concerned with generating or interpreting information as opposed to manual labor
 social capitalthe economic or productive potential of strong, trusting and cooperative relationships
 job analysispurpose is to determine by observation and analysis, the basic elements of a job
 job descriptionsummarizes "what" the holder of the job does and how and why he or she does it; determining the basic elements of a job by observation and analysis
 job specificationdescribes the minimum qualifications a person must have to perform a job successfully ; "who" ideal candidate possesses
 human resource inventorya report listing your organizations employees by name, education, training, languages, and other important information

30-35% are engaged in their work
2/3 not engaged in their work
 national labor relations boardenforces procedures where by employees may vote to have a union and for collective bargaining
 collective bargainingconsists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security
 fair labor standards act of 1938established minimum living standards for workers engaged and interstate commerce, including provision of a federal minimum wage this currently  is $7.25 an hour and a maximum working is 40 hours a week and overtime must be paid time and a half

social security act in 1935 established the US retirement system
 equal employment opportunity commissionenforces anti discrimination and other employment related laws
 work place discriminationoccurs when people are hired or promoted/ or denied hiring or promotion/ for reasons not relevant to the job

- we cannot discriminate a person if they can perform the essential functions of the job unless accommodating them creates undo hardship (too expensive)
average accommodation is $500

2 types of discrimination: disparate treatment/adverse impact
 adverse impactoccurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class ( such as Hispanics) over another group of people such as non Hispanic whites
ex: height requirement for police officers
 disparate treatmentresults when employees from protected groups ( such as disabled individuals) are intentionally treated differently

ex: males are not allowed to be waitresses at hooters, they have to be a female
ex: Bona Fide occupational qualification (BFOQ)- a catholic church rejected all non Catholics applicants for priest because they lacked an occupational qualification( being catholic)
 affirmative actionfocuses on achieving equality of opportunity with in an organization
 sexual harassmentconsists of unwanted sexual attention that creates an adverse work environment
2 types of sexual harassment's:
quid pro quo- employee outcomes depend on whether an individual submits to sexual harassment/requests
ex: male supervisor promises a promotion to subordinate who dates him
hostile work environment- unwelcome and demeaning sexually related behavior creates intimidating work environment
ex: telling racist jokes/ sending inappropriate emails
 recruitingprocess of locating and attracting qualified applicants for jobs open in the organization

internal/external
ecruiting- submitting resume and complete application online

ex: Zappos had a very fun work environment, chill humble, dress casual(artifacts)
 internal recruitingmeans making people already employed by the organization aware of job openings
 Job postingplacing information about job vacancies and qualifications on bulletin boards, and newsletters, and organizations intranet
 external recruitingattracting job applicants from outside the organization
 realistic job preview(RJP)gives a candidate a picture of both positive and negative features of the job and the organization before he or she is hired
 selection processscreening of job applicants to hire the best candidate
-application forms resumes, and reference checks
-DON'T PROVIDE MISLEADING INFORMATION

3 types of selection tools: background information, interviewing, employment tests
 unstructured interviewinvolves asking probing questions to find out what the applicant is like
- no fixed set of questions  and no systematic scoring proceadure
 structured interviewinvolves asking all applicants the same questions and comparing their responses to a standardized set of answers
 situational interviewthe interviewer focuses on hypothetical situations
ex: if a customer gets upset, how would you handle it?
 behavioral description interviewinterviewer explores what applicants have actually done in the past
ex:In an interview you are asked if a customer made you mad how did you handle it?
 employment testslegally considered to consist of any procedure used in the employment selection decision process
- measure ability, intelligence performance, honesty, and personality
-reliability, validity
 assessment centerin which management candidates participate in activities for a few days while being assessed by evaluators
 reliabilitythe degree to which a test measures the same thing consistently
 validitythe test measures what it purports to measure and is free of bias
 orientationhelping the newcomer fit smoothly into the job and the organization
- designed to give employees the information they need to be successful
- for managers its called "onboarding"
 trainingupgrading skills of technical and operational employees
- educating technical and operational employees and how to better do their current jobs
ex: sales training/ customer service training
 development 
 5 steps in the training process1) assessment- is training needed?
2) objectives- what should training achieve?
3) selection-which training methods should be used?
4) implementation- how should training be effected?
5) evaluation-is the training working?
 performance appraisalconsists of (1) assessing an employees performance (2) providing him or her with feedback
 performance managementthe continuous cycle of improving job performance through goal setting, feedback, and coaching and rewards and positive reinforcement
ex: aviation, surgical
 objective appraisalalso called results appraisal, based on facts and are often numerical
-measure results
-harder to challenge legally
ex: putting your ID number before every sale transaction
 subjective appraisalbased on a managers perceptions of an employees (1) training or (2) behaviors
ex: if employee is nice and respective to others
-trait appraisals- rating of attitude and leadership and initiative
-Behaviorally anchored rating scale- assessing you on personality traits( difficult to be accurate)
 360 degree assessmentalso called the 360 degree feedback appraisal, in which employees are appraised not only by their managerial superiors but also by peers, subordinates and sometimes clients
 forced ranking performance review systemsall employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve

- Jack Welsch CEO to GE
GE's 3 buckets
top 20%
middle 70%
bottom 10%
if your in the bottom 10 % your fired
 (ugh)formal appraisalsconducted at specific times throughout the year and are based on performance measures that have been established in advance
 informal appraisalsconducted on an unscheduled basis and consists of less rigorous indications of employee performance
 compensationwages or salaries, incentives, benefits
 base payconsists of the basic wage or salary, paid employees in exchange for doing a job
 benefitsalso called fringe benefits, are additional non monetary forms of compensation
- flexible/ cafeteria style-picking out which benefits you want
- growing more expensive each year
 transfer/lateralmovement of an employee to a different job with similar responsibilities

-moving sideways( trying new things) not a bad thing anymore
 dismissallayoffs
downsizing
firings
 labor unionsorganizations of employees formed to protect and advance their members interests by bargaining with management over job related issues
 Union security clausethe part of the labor management agreement that states that employees who receive union benefits must join the union or at least pay dues to it
 right to work lawsstatutes that prohibit employees to joins union as a condition of employment
 two-tier wage contractsnew employees are paid less or receive less benefits then better end employees have
 cost-of-living adjustment(COLA) clauseduring the period of the contract ties future wage increases to increases cost of living
 givebacksthe union agrees to give up previous wage or benefit gains in return for something else
 grievancea complaint by an employee that management has violated the terms of the labor management agreement
 mediationprocess in which a neutral third party, a mediator, listens to both side in a dispute, makes suggestions and encourages them to agree on a soluation
 arbitrationthe process in which a neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties agreed will be binding on them
 measuring job performancecentral tendency- most employees are rated as being average
halo error- employees who perform on one aspect of their jobs are perceived as performing well on parts of their jobs
leniency error- all workers are rated as performing at a high level
 Ch.10 reactive changemaking changes in response to problems or opportunities as they arrive
 proactive changealso called planned change, involves making carefully thought out changes in anticipation of possible or unexpected problems or opportunities
 technologyit 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
 resistance to changean emotional/ behavioral response to real or imagined threats to an established work routine

 adaptive changereintroduction of a familiar practice
- least threatening
 innovative changethe introduction of a practice that is new to the organization
- somewhat threatening
 radically innovative changeinvolves introducing a practice that is new to the industry
- very threatening
 benchmarkinga process by which a company compares its performance with that of a higher performing organization
 organizational developmenta set of techniques for implementing planned change to make people and organizations more effective
 changed agenta consultant with a background and behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways
 interventionthe attempt to correct the diagnosed problem
 self efficiencyconfidence that you can learn and accomplish things

ex: video on guy who talked about children not getting encouragement on art problems and giving up too quickly based on others reactions
 seeds of innovationthe starting point for organizational innovation
 product innovationa change in the appearance or the performance of a product or service for the creation of a new one
ex: starbucks sold premium coffee before it was in fashion
 process innovationchange in the way a product or service in conceived, manufactured, or disseminated
ex: amazons online retail business
 incremental innovationcreation of products, services, or technologies that modify existing ones
ex: apples iphone 4
 radical innovationcreation of products, services, or technologies that replace existing ones
ex: mp3 files replacing CDs
 2 myths about innovation1) innovation happens in Eureka moment- in most cases innovation is the product of a creative mind, hard work, trial and error, and persistence
2) innovation can be systematized-  while a culture of innovation can help increase the change of developing new and successful products/services there are no guarantees
- successful innovation depends on several factors
 the organizational development(OD) process1) diagnosis- what is the problem?
2)intervention- what shall we do about it?
3) evaluation- how well has that intervention worked?
4) feedback- how can the diagnosis be further relied

ex: Patagonia has long been a supporter of the environmental movement
 Personalityconsists of the stable psychological traits and behavioral attributes that give a person his or her identity
 Leadingdefined as motivating, directing, and otherwise influencing people to work hard to achieve the organization's goals
 The Big Five personality dimensions

-Extroversion. How outgoing, talkative, sociable, and assertive a person is.

-Agreeableness. How trusting, good-natured, cooperative, and soft-hearted one is.

-Conscientiousness. How dependable, responsible, achievement-oriented, and persistent one is.

-Emotional stability. How relaxed, secure, and unworried one is.

-Openness to experience. How intellectual, imaginative, curious, and broad-minded one is.

 Extroversionthe outgoing personality
 Conscientiousnessthe dependable personality…(strong work ethic)
 proactive personalitysomeone who is more apt to take initiative and persevere to influence the environment.
 Five Traits Important in Organizations--(1) locus of control, (2) self-efficacy, (3) self-esteem, (4) self-monitoring, and (5) emotional intelligence.
 locus of control

·         indicates how much people believe they control their fate through their own efforts.  Two Aspects:

-          Expect different degrees of structure and compliance for each type.

-          Employ different reward systems for each type


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 Self-efficacybelief 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

 self-esteem

·         --the extent to which people like or dislike themselves, their overall self-evaluation.

 Self-monitoringthe extent to which people are able to observe their own behavior and adapt it to external situations.
 emotional intelligence

·         the ability to cope, to empathize with others, and to be self-motivated.

 Daniel Goleman--a psychologist who popularized the trait of EI (Emotional intelligence), concluded that EI is composed of four key components: self-awareness, self-management, social awareness, and relationship management
 organizational behavior (OB)

·         which is dedicated to better understanding and management of people at work; tries to help managers not only explain workplace behavior but also to predict it, so that they can better lead and motivate their employees to perform productively.

 Valuesabstract ideals that guide one's thinking and behavior across all situations
 Attitudea learned predisposition toward a given object
 The affective component“I feel.” The affective component of an attitude consists of the feelings or emotions one has about a situation.
 The cognitive component—“I believe.” The cognitive component of an attitude consists of the beliefs and knowledge one has about a situation
 The behavioral component—“I intend.” The behavioral component of an attitude, also known as the intentional component, refers to how one intends or expects to behave toward a situation.liefs and knowledge one has about a situation
 Leon Festinger

·         In 1957, the psychologist and his associates penetrated a cult whose members predicted that most people on earth would perish in a cataclysmic event except for a handful that would be rescued by aliens in a flying saucer. Festinger found himself standing with cult members on a hilltop awaiting the event, which, of course, did not happen. Later he proposed the term cognitive dissonance to explain how they rationalized the failure of their prophecy. Have you observed people employing this mechanism when the surefire thing they predicted did not occur?

 cognitive dissonancedescribes the psychological discomfort a person experiences between his or her cognitive attitude and incompatible behavior.
 Behaviortheir actions and judgments
 Perceptionthe process of interpreting and understanding one's environment
 Stereotyping

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

(1) sex-role stereotypes, (2) age stereotypes, and (3) race/ethnicity stereotypes

 halo effectwe form an impression of an individual based on a single trait
 The recency effect

·         the tendency to remember recent information better than earlier information

 Causal attributionthe activity of inferring causes for observed behavior.
 fundamental attribution biaspeople attribute another person's behavior to his or her personal characteristics rather than to situational factors
 self-fulfilling prophecyalso known as the Pygmalion (“pig-mail-yun”) 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
 self-serving bias

·         people tend to take more personal responsibility for success than for failure.

 employee engagement

·         defined as 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 commitmentreflects the extent to which an employee identifies with an organization and is committed to its goals
 Turnoverwhen employees leave their jobs.
 Onboarding programshelp employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, culture, and politics by clarifying work-role expectations and responsibilities.
 Organizational citizenship behaviorsthose employee behaviors that are not directly part of employees' job descriptions—that exceed their work-role requirements.
 counterproductive work behaviors (CWB)

·         types of behavior that harm employees and the organization as a whole.

 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.
 Internal dimensions of diversity-- those human differences that exert a powerful, sustained effect throughout every stage of our lives
 External dimensions of diversity-- include an element of choice; they consist of the personal characteristics that people acquire, discard, or modify throughout their lives
 glass ceilingthe metaphor for an invisible barrier preventing women and minorities from being promoted to top executive jobs
 Americans with Disabilities Actprohibits discrimination against the disabled and requires organizations to reasonably accommodate an individual's disabilities
 Underemployed

·         working at jobs that require less education than they have—such as tending bar, managing video stores, or other jobs that someone with less education could do.

 Ethnocentrism 
 Stressthe tension people feel when they are facing or enduring extraordinary demands, constraints, or opportunities and are uncertain about their ability to handle them effectively.
 Stressorthe source of stress
 Hans Selye-- considered the father of the modern concept of stress; says stress is “the nonspecific response of the body to any demand made upon it.”
 Type A behavior patternmeaning they are involved in a chronic, determined struggle to accomplish more in less time.
 Rolessets of behaviors that people expect of occupants of a position
 Burnouta state of emotional, mental, and even physical exhaustion
 buffers-- or administrative changes

·         managers make to reduce the stressors that lead to employee burnout

 • Employee assistance programs (EAPs)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
 A holistic wellness programfocuses on self-responsibility, nutritional awareness, relaxation techniques, physical fitness, and environmental awareness.
 Motivationthe psychological processes that arouse and direct goal-directed behavior
 An extrinsic reward

·         the payoff, such as money, that a person receives from others for performing a particular task

 An intrinsic reward

·         the satisfaction, such as a feeling of accomplishment, that a person receives from performing the particular task itself.

 Content perspectives, also known as need-based perspectives

·         are theories that emphasize the needs that motivate people.

 Needs

·         defined as physiological or psychological deficiencies that arouse behavior.

·         hierarchy of needs theory-- proposes that people are motivated by five levels of needs: (1) physiological, (2) safety, (3) love, (4) esteem, and (5) self-actualization

 Abraham Maslow

·         creator of hierarchy of needs theory

-1. Physiological Needs  These are the most basic human physical needs, in which one is concerned with having food, clothing, shelter, and comfort and with self-preservation.

2. Safety Needs  These needs are concerned with physical safety and emotional security, so that a person is concerned with avoiding violence and threats.

3. Love Needs Once basic needs and security are taken care of, people look for love, friendship, and affection.

4. Esteem Needs  After they meet their social needs, people focus on such matters as self-respect, status, reputation, recognition, and self-confidence.

5. Self-Actualization Needs  The highest level of need, self-actualization is self-fulfillment—the need to develop one's fullest potential, to become the best one is capable of being.

 ERG theory assumes that three basic needs influence behavior

·         existence, relatedness, and growth,

 acquired needs theorystates that three needs—achievement, affiliation, and power—are major motives determining people's behavior in the workplace.
 David McClellandfounder of acquired needs theory
 two-factor theory

·         proposed that work satisfaction and dissatisfaction arise from two different factors—work satisfaction from motivating factors and work dissatisfaction from hygiene factors.

 Frederick Herzbergfounder of two-factor theory
 hygiene factorsare factors associated with job dissatisfaction—such as salary, working conditions, interpersonal relationships, and company policy—all of which affect the job context in which people work
 motivating factors, or simply motivators

·         are factors associated with job satisfaction—such as achievement, recognition, responsibility, and advancement—all of which affect the job content or the rewards of work performance

 Process perspectives

·         are concerned with the thought processes by which people decide how to act

 Equity--theory focuses on employee perceptions as to how fairly they think they are being treated compared with others
 J. Stacey Adamsdeveloped the equity theory
 expectancy theory-- suggests that people are motivated by two things: (1) how much they want something and (2) how likely they think they are to get it.
 Victor Vroomdeveloped the expectancy theory
 Expectancy

·         the belief that a particular level of effort will lead to a particular level of performance.

 Instrumentality

·         the expectation that successful performance of the task will lead to the outcome desired.

 Valence is valuethe importance a worker assigns to the possible outcome or reward.
 Goalsetting theory suggests that employees can be motivated by goals that are specific and challenging but achievable
 Job design

·         -- (1) the division of an organization's work among its employees and (2) the application of motivational theories to jobs to increase satisfaction and performance.

 job simplificationthe 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.

 The job characteristics modelconsists of (a) five core job characteristics that affect (b) three critical psychological states of an employee that in turn affect (c) work outcomes—the employee's motivation, performance, and satisfaction.
 reinforcement theorywhich attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated.
 Reinforcement

·         anything that causes a given behavior to be repeated or inhibited

 Positive reinforcement

·         the use of positive consequences to strengthen a particular behavior.

 Negative reinforcement

·         is the process of strengthening a behavior by withdrawing something negative.

 Extinctionthe weakening of behavior by ignoring it or making sure it is not reinforced
 Punishmentthe process of weakening behavior by presenting something negative or withdrawing something positive.
 pay for performancebases pay on one's results
 piece ratein which employees are paid according to how much output they produce
 sales commissionin which sales representatives are paid a percentage of the earnings the company made from their sales
 Bonusescash awards given to employees who achieve specific performance objectives
 Profit sharingthe distribution to employees of a percentage of the company's profits
 Gainsharingthe 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

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