MANAGEMENT 3000 Final Review

Segment 11 Behavior & Motivation (Lecture) Summarize the Big Five Personalities Model. Extraversion Agreeableness Conscientiousness Emotional stability Openness to experience

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Summarize the MTBI Personalities Extraverted vs introverted Sensing vs intuitive Thinking vs feeling Judging vs perceiving Sixteen possible types of personality

Summarize additional personality factors. Locus of control: extent to which one believes that what happens is in ones control Authoritarianism: degree to which a person tends to defer to authority Machiavellianism: the extent to which someone is emotionally detached and manipulative Self-monitoring: degree to which someone is able to adjust behavior in response to external factors Summarize Maslow's Hierarchy of Needs Theory.

Order is important

Most critical is ego and self actualization

Summarize Alderfer's ERG Theory. 1: Existence (physiological and safety) 2: relatedness (social and ego) 3: growth (self actualization) Order not important

Summarize McClellands Needs Theory Managers have 3 needs: Achievement, Power, and Affiliation. Top 10% of managers scored high in all Top 1% had high first two but low affiliation

Describe how organizations want to motivate members. 1) join 2) stay 3) regular Attend or call in sick? 4) perform 5) stewardship Very few organizations have all 5 Hallmark KC ranks high

Summarize Expectancy Theory and know how managers use the theory to motivate individuals in an organization. Effort performanceoutcome Expectancy = belief that effort will lead to performance (high exp = high motivation) Instrumentality = perceived likelihood that performance will result in an outcome (high ins leads to consistent high perf) Valence = will the outcome be valuable Managers link these needs to rewards that can be earned through high performance Summarize the Types of Reinforcement. Positive reinforcement: adds a positive (+ applied) Negative reinforcement: takes away a negative (good) (- removed)

Punishment: adds a negative (- applied) Extinction: takes away a positive (+ removed)

Describe mand and tact reinforcement. Mand: same person gives stimulus and reinforcer Tact: different person

Summarize various Reinforcement Schedules. Continuous: Every behavior gets a reinforcer; performance increases over time, but rapid extinction occurs after.

Fixed interval: performance highest when reinforcer is given. o Most used; Easy for reinforcer; Based on time and not performance

Variable interval: on avg. every nth time period gets a reinforcer; low variability, people are tempered, hard on reinforcer.

Fixed Ratio: every nth unit gets a reinforcer; highly variable performance, easy on reinforcer; no peaks.

o Variable Ratio: on avg. every nth unit gets a reinforcer; low variability, leads to workaholics

o [COPY GRAPHS]

Summarize Equity Theory and how equity is attained when there is inequity. Comparing your outcomes/inputs to anothers (perception not reality) Equity is achieved by o o o o 1) raising your outcomes 2) reducing your input 3) other raising others inputs 4) other reduces otherss outcomes

Summarize Attribution theory and how people, managers, and self-actualized individuals attribute behavioral causations for their or others successes and failures. Internal and external explanations/forces o Who do you attribute it to? My view of me: failure is external, success is internal. My view of others: failure is external, success is internal. Manager view of associates: success external, failure internal Manager view of themselves: success internal, failure external Self actualized: own up to both

Summarize the characteristics of Job Satisfaction and its relationship to other measures.

Summarize the dimensions of Job Design and the ideal outcomes. 1) variety 2) identity 3) significant 4) autonomy 5) feedback 6) play Outcome: high performance

(*) Be responsible for any content in lectures pertaining to Segment 11 Behavior & Motivation. Segment 11 Behavior & Motivation (Textbook Ch. 14, Ch. 15) Define perception Perception: the process through which people receive, organize, and interpret information from the environment Explain the benefits of a healthy psychological contract A set of expectations held by the individual about what will be given and received in the employment relationship. Benefits of healthy: offers a balance between individual contributions and inducements received Explain fundamental attribution error and self-serving bias FAE: overestimated internal factors and underestimated external factors as influence on someones behavior SSB: explains personal success by internal causes and personal failures by external causes

Define stereotype, halo effect, selective perception, and projection and illustrate how each can adversely affect work behavior Stereotype: occurs when attributes commonly associated with a group are assigned to an individual. Halo: occurs when one attribute is used to develop and overall impression of a person or situation. Causes performance evaluation issues Selective perception: tendency to define problems from ones own point of view. Different perceptions within an organization Projection: the assignment of personal attributes to other individuals.

List the Big Five personality traits and give work-related examples of each Conscientiousness: a good predictor of job performance Openness to experience: creative in the workplace Extraversion: happier Agreeableness: Emotional stability:

Define attitude and list the three components of an attitude Attitude: A predisposition to act in a certain way toward people and things in the environment o o o Cognition Affect Behavior

Explain the potential consequences of high and low job satisfaction High: show up, stay, and work harder Low: absent, high turnover

Define employee engagement, job involvement, organizational commitment, and organizational citizenship Employee Engagement: willingness to help others do extra, and feeling positive about the organization Job Involvement: the extent to which an individual is dedicated to a job Organizational Commitment: the loyalty of an individual to the organization Organizational Citizenship: a willingness to go beyond the call of duty in ones work

Explain how emotions and moods influence behavior They influence your reaction to positive or negative things

Identify the common stressors found in work and in personal life Set up to fail Mistaken Identity

Differentiate constructive and destructive stress Constructive: acts in a positive way to increase effort, stimulate creativity and encourage diligence in ones work Destructive: impairs performance of an individual

Define job burnout and workplace rage Job Burnout: physical and mental exhaustion from work stress Workplace Rage: aggressive behavior toward coworkers or work setting

Define motivation and needs Motivation: accounts for the level, direction, and persistence of effort expended at work Needs: an unfulfilled physiological or psychological desire

Describe work practices that satisfy higher-order and lower-order needs in Maslows hierarchy Higher order: creative/challenging work, participation in decision making, job flexibility and autonomy, responsibility, promotion, praise/recognition Lower: friends, interaction with customers, good boss, safe, secure, compensation, breaks, comfort, good hours Describe work practices that influence hygiene factors and satisfier factors in Herzbergs two-factor theory Always correct poor job context to eliminate potential job dissatisfaction Be sure to build satisfier factors into job content to maximize job satisfaction

Describe work conditions that satisfy a person with a high need for achievement Individual responsibility

Achievable but challenging goals Feedback on performance

Explain the role of social comparison in Adamss equity theory

Describe how people with felt negative inequity behave They try to restore equity

Explain Lockes goal-setting theory Task goals can be highly motivating if they are properly set and if they are well managed Describe self-efficacy and explain four ways to increase it A persons belief that she or he is capable of performing a task o o o o Enactive mastery Verbal persuasion Emotional arousal Vicarious modeling

Explain the law of effect and operant conditioning Law of effect states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not Operant Conditioning: control of behavior by manipulating its consequences

Explain the reinforcement technique of shaping Creation of a new behavior by the positive reinforcement of successive approximations to it. Describe how managers can use the laws of immediate and contingent reinforcement Giving rewards each time a desired behavior occurs, or rewarding randomly for good work Illustrate a job designed by job simplification, rotation, and enlargement

Describe the advantages of compressed work week, flexible work hours, job sharing, and telecommuting Compressed work week: three days off instead of two. Improved morale, time costs, less absenteeism, fewer days lost to sick leave Flexible hours: greater autonomy Job sharing: allows people to work who normally couldnt Telecommuting: increased productivity, fewer distractions, being their own boss, etc. Discuss the role of part-time contingency workers in the economy Easily hired, supplement the work force, paid less than full times,

Segment 12 Communication (Lecture) (*) Be responsible for any content in lectures pertaining to Segment 12 - Communication. Summarize the Communication Process Model. 1. Sender has idea 2. sender encodes idea in message 3. message travels over channel 4. receiver decodes message 5. feedback travels to sender 6. possible additional feedback to receiver

Define communication. The process of sending and receiving symbols with meanings attached (see chart) Summarize one way and two way communication and their uses and differences. One way: most people talk this way. Its quick and easy, but the receiver is less confident and less accurate Two way: slow and hard, need to figure out examples to give, receiver is more confident and more accurate Summarize barriers to interpersonal communication.

Bypassing Limited frame of reference Lack of language skills Emotional interference Physical and mental distractions

Describe how to overcome interpersonal communication barriers. Realize that communication is imperfect Adapt the message to the receiver Improve your listening and language skills Question your preconceptions Plan for feedback Realize that communication is 2 way, not 1 way Be objective with information be subjective with + info

Summarize the barriers to organizational communication. Close communication climate Top-heavy organizational structure Long lines of communication Lack of trust between mgmt and employees Competition for power, status or rewards Fear of reprisal Difference in frames of reference Lack of communication skills Ego involvement Turf wars

Summarize how to overcome barriers to organizational communication. Open environment for interaction/feedback Flatten organizational structure Promote horizontal communication Allow for anonymous feedback Information through formal channels Train managers/employees in communication skills Equal rewards for individual and team achievements Teams

Summarize the advantages of oral and written communication. Oral: give off non-verbal clues, quick feedback and confirmation, directive, confidentiality Written: more time to come up w/ words, avoid immediate conflict, more binding, proof Explain the advantages of informal communication. Managers often learn more about the employees and whats going on in their world with informal communication than they do with formal communication Summarize the Listening Process Model. Perception (tune in) Interpretation (filter with frame of reference) Evaluation (separate facts from opinions) Action( store message, respond)

Explain why listening is so difficult and why it is so important. Difficult because we talk much slower than our brain works. Only 10% of brain is listening Its important because we will spend a lot of time listening in our jobs

Summarize the mental and physical barriers to listening. Mental: inattention, prejudgment, frame of reference, closed mindedness, pseudo-listening Physical: hearing impaired, noisy surroundings, speakers appearance or mannerisms, lag time Describe the tips for to improve listening. Stop talking Control distractions Become actively involved Practice empathy Separate fact from opinion Identify important facts Ask questions

Paraphrase Capitalize on lag time Take notes to ensure retention Be aware of gender differences *Nod and lean in to speaker

Summarize the forms of nonverbal communication and how it is used. Eye contact Facial expression Posture/gestures Vocal tone, volume, word choice Appearance Others sense Time Space Appearance of documents

Explain the importance of nonverbal communication. Its remembered longer than verbal communication The real meaning of the message is there

Segment 12 Communication (Textbook Ch. 17) Explain the role of credibility in persuasive communication Without credibility, people will not be very persuasive

List the common sources of noise that inhibit effective communication Semantic problems Absence of feedback Improper channels Physical distractions Status effects Cultural differences

Explain how ethnocentrism affects cross-cultural communication May cause someone not to listen well to what others have to say Cause someone to address or speak with others in a way that will alienate them

May lead to the use of inappropriate stereotypes

Explain how transparency and openness improves communication Greater feelings of trust between employees and managers

Explain how interactive management and practices like MBWA can improve upward communication Managers make themselves more available by having open office hours and by actually walking around and talking to employees Illustrate the guidelines for constructive feedback Give feedback directly and with real feeling, based on trust Make sure feedback is specific rather than general Give feedback at a time when the receiver seems most willing or able to accept it Make sure the feedback is valid Give feedback in small doses

Explain how space design influences communication It conveys intentions in terms of intimacy, openness and status

Differentiate substantive and emotional conflict Substantive: involves disagreements over goals, resources, rewards, policies, procedures, and job assignments Emotional: results from feelings of anger, distrust, dislike, fear, and resentment as well as from personality clashes Explain the conflict management styles of avoidance, accommodation, competition, compromise, and collaboration Avoidance: withdrawal/pretends conflict doesnt exist Accommodation: smoothing things over Competition: uses force to win a conflict Compromise: each party to the conflict gives up something of value to the other Collaboration: working through differences for a win-win

Discuss lose-lose, win-lose, and win-win conflicts

LL: no one achieves his or her desires, underlying reasons for the conflict unaffected WL: where one party achieves its desires and the other does not WW: resolved to everyones benefit

Differentiate between distributive and principled negotiation Distributive Negotiation: focuses on win-lose claims made Principled Negotiation: uses a win-win orientation to reach solutions acceptable to each party List four rules of principled negotiation Separate the people from the problem Focus on interests, not positions Generate many alternatives before deciding what to do Insist that results be based on some objective standard

Describe the potential pitfalls in negotiation Myth of fixed pie Escalation of conflict Overconfidence Too much telling/too little listening Cultural miscues Unethical behavior

Differentiate between mediation and arbitration Mediation: neutral party tries to help the parties improve communication Arbitration: neutral third party issues a binding decision

Segment 13 Groups (Lecture) (*) Be responsible for any content in lectures pertaining to Segment 13 - Groups. Explain formal and informal groups. Informal: friends you make, etc Formal: put together by someone else and has a specific task given by someone else

Summarize the five step group joining process. Explain outcomes/benefits and costs/dislikes, explain net outcomes, explain comparison level, explain alternatives, and explain join or dont join. Five steps: o o 1.Outcomes/benefits vs costs/dislikes 2.Net outcomes o Evaluate NO (the reasoning for joining the group). Benefits-Costs Is the standard of expectation greater than or less than NO? Evaluate the alternative Evaluating based on the NO of the group youre thinking of joining. Not based on alternative 3.Comparison level o 4.Alternatives o 5.Join or dont join Explain evaluation. If NO>CL, positive evaluation If reverse, negative If NO>A, then join if not, dont join. Sometimes conditional logic comes in. o Positive evaluation but dont join? o NO< Alternative NO>Alternative Negative, but do join?

Summarize various scenarios for join or dont join group decisions based on the five step (or shorter three step) process. 1. NO>CL and NO>A Life makes sense JOIN 2. NO<CL and NO>A settle in life JOIN 3. NO>CL and A>CL have expectations not enough info. 4. NO>A and CL>A understand groups fully need more info 5. NO<CL and NO<A hope for better DONT JOIN 6. NO>CL and CL>A, just like 1, JOIN

Summarize direct and instrumental group outcomes. Direct: group gives directly ex: getting paid

Instrumental: group gives indirectly ex: meeting spouse at work

Summarize how groups use power in starting a group They look for certain qualities, people who are flexible to change, and are similar. High initial costs to members b/c people value what they suffer for and pay a high price for Summarize how groups use influence in maintain a group. Instructing Monitoring Rewarding Punishing Communicating to deviants Raising the membership cost o Will pay a higher cost to stay

Summarize how groups use power & influence in performing as a group by explaining conformity, satisficing, groupthink, and how the group performance model works. If you pay a high price for something, youre more likely to conform. o Leads to its own reward Satisficing: over satisfied = underperforming. Groupthink: over conforming leads to underperforming Group performance model works by improving the good and eliminating the bad, such as satisficing and groupthink. Summarize the advantages of group decision making. Better decisions Faster response Increased productivity Greater buy in Less resistance to change Improved employee morale Reduced risks

Summarize the four phases of team development. Forming: slow, orientation

Storming: conflict, determine goals, individual roles Norming: bad conflict resolved, individual roles assumed, group operates routinely Performing: goals met

Summarize the types of group conflict. Cognitive: good. want it to stay because its essential in good decisions. Centered on issues, not people Affective: bad. Centers on people/personalities, not issues

Summarize team roles that help or hurt group performance. HELP o o Task roles: help group meet goals and perform Relationship roles: help the group function smoothly Dysfunctional: roles that disrupt or hurt group function and performance. Degrading relationships Summarize methods of group decision-making and the advantages and disadvantages of each method. Majority o Good because quick, bad because alienates minority Good because strong commitment, bad because time consuming Good because saves time, bad because weak commitment Good because compromise bad for same reason Good because promotes discussion/good ideas bad because its hard to do well, takes strong leader Segment 13 Groups (Textbook Ch. 16) Define synergy Synergy: the creation of a whole greater than the sum of its individual parts Consensus o Minority o Averaging o Authority o

DONT HELP o

Identify four roles managers perform in teams Team leader Facilitator Member Coach

Explain teamwork pros and cons Pros: Duh. Cons: social loafing, personality clashes, individual work differences, unclear tasks Discuss the implications of social loafing People who slack off because responsibility is diffused in teams and others are present to do the work. Can eliminate by rewarding individuals for their work. Explain the potential benefits of informal groups Speed workflow Allow people to get things done in ways not possible with formal groups Satisfy social needs

Explain potential advantages and disadvantages of virtual teams Good: time/travel expense saving, easily expandable, continuously updated info Bad: lack of face to face time, depersonalized

Describe the typical steps in team building Awareness that a problem may exist Gather info about the problem Make action plan Evaluate results

Identify inputs that influence group effectiveness Resources Technology Structures Rewards Info

Clarity Complexity Number of members Even-odd number Abilities Values Personalities Diversity

Discuss how membership diversity influences team effectiveness May slow down the process, but often brings different perspectives to the decision making. Define group norm and list ways to build positive group norms The behavior expected of team members. A rule or standard Be a positive role model, reinforce desired behaviors with rewards, control results by reviews and feedback, train people to adopt desired behaviors, recruit people with desired behaviors, hold regular meetings, use decision making methods to reach agreement Define cohesiveness and list ways to increase group cohesion Cohesiveness: The degree to which members are attracted to and motivated to remain part of a team Build agreement on team goals, increase membership homogeneity, increase interactions among members, decrease size, introduce competition with other teams, reward team, provide physical isolation from other teams Explain how norms and cohesiveness influence team performance

Differentiate between task, maintenance, and disruptive activities Task: directly contributes to groups performance purpose Maintenance: supports emotional life of group Disruptive: self serving behaviors

Define groupthink and identify its symptoms Groupthink: Tendency for highly cohesive teams to lose their evaluative capabilities Symptoms: o o o o o o o o Illusion of invulnerability Rationalizing unpleasant and discomforting data Belief in inherent group morality Stereotyping competitors as weak evil and stupid Applying direct pressure to deviants Self censorship by member Mind guarding Illusions of unanimity

Illustrate how brainstorming and the nominal group techniques can improve creativity in decision making Brainstorming: People build upon others ideas Nominal Group Technique: everyone comes up with ideas. no criticism or discussion. Segment 14 Leadership (Lecture) (*) Be responsible for any content in lectures pertaining to Segment 14 - Leadership. Describe leadership as it relates to you, others, and the organization. Leadership is learned through practice. One must find his/her own style of leading. Summarize the sources of power for managers. Five Sources of Management Power o Legitimate o Authority, Orders, Direction, Task Salary Raises, Promotions, Good Tasks Punishment, No raises, Termination, Bad Tasks Appeal, Personal Characteristics Reward o Coercive o Referent o Expert

Knowledge, Experience, Know-how, Answers

Explain two common leadership flaws. Leader/Manager o o Relies too much on Legitimate, Reward, and Coercive Power Relies too little on Referent and Expert. Perceives: Anointment Reality is: Appointment

Leader/Manager o o

Summarize characteristics of great leaders. Lack Ego Self Importance Demonstrate Humility Deflect Praise Surround themselves with the right people who are self-motivated and highly capable. Distinguish between leadership and management. Good leaders can be bad managers and vice versa. Concern for Work Concern for People Summarize the Historical Paradigm (Herzberg) model and its gains and shortcomings.

Shortcoming: it is linear; as you become better at one you become worse at the other. Gain: See others as people too, not just tasks. One can have high concern for both work and people, but still 2 Dimensional Grid not just linear; rate/train managers

Summarize the Ohio State/Michigan model and its gains and shortcomings. Summarize the Blake & Mouton Grid model and its gains and shortcomings.

Summarize the Path Goal model and its gains and shortcomings.

Gain: Style depends on the situation Shortcoming: Model is selfishly focused on leaders impact and disregards followers impact.

Summarize the Vroom-Yetton model and its gains and shortcomings. Gain: This model recognizes that a subordinates behavior effects a leaders as well as vice versa. o More selfless and views the people as equally effective. Shortcoming: Model is missing a factor; it does not explain worker performance or satisfaction, simply just advice. Model: o Options A1: You solve the problem w/ info you have (Decide) A2: You solve the problem w/ info from subordinates without sharing problem. (Disguise) C1: You solve problem, share problem with subordinates as individuals. (Consult) C2: You solve problem, share problem with subordinates as group. (Consult) o G2: Turn the problem over to the group (Delegate) A1: no time, you have all the info needed A2: no time, you need more info C1 & C2: Acceptance is essential G2: When you think there could be conflict Situations

Segment 14 Leadership (Textbook Ch. 13) Define power Power: the ability to get someone else to do something you want done or to make things happen the way you want. Illustrate three types of position power and discuss how managers use each Reward Power is the capacity to offer something of value as a means of influencing other people. Coercive Power is the capacity to punish or withhold positive outcomes as a means of influencing other people. Legitimate Power is the capacity to influence other people by virtue of formal authority, or the rights of office. Illustrate two types of personal power and discuss how managers use each Expert Power is the capacity to influence other people because of specialized knowledge. Referent Power is the capacity to influence other people because of their desire to identify personally with you. Define empowerment Empowerment: enables others to gain and use decision-making power.

Explain the notion of servant leadership Servant Leadership is follower-centered and committed to helping others in their work. Identify five personal traits of successful leaders Drive- Successful leaders have high energy, display initiative, and are tenacious. Self-Confidence- Successful leaders trust themselves and have confidence in their abilities. Creativity- Successful leaders are creative and original in their thinking. Cognitive Ability- Successful leaders have the intelligence to integrate and interpret information Job-relevant knowledge- Successful leaders know their industry and its technical foundations

Motivation- Successful leaders enjoy influencing others to achieve shared goals.

Describe behaviors associated with four classic leadership styles Autocratic Style o o Acts in a command-and-control fashion. Authority Obedience Manager (Spock) Emphasizes people over work Country Club Manager Do the best you can and dont bother me Impoverished Manager (George Jetson) Emphasizes boths tasks and people Team Manager/High-High/Nine-Niner

Human Relations Style o o

Laissez-Faire Style o o

Democratic Style o o

Explain Fiedlers contingency model Proposes that good leadership depends on a match or fit between a persons leadership style and situational demands. Identify the four leadership styles in the Hersey-Blanchard situational model Delegating o Allowing the group to take responsibility for task decisions; a low-task, low-relationship style. o o Turn over decisions Followers able, willing, confident Emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style. o o Selling o Explaining task directions in a supportive and persuasive way; a hightask, high-relationship style o o Explain decisions Followers unable, willing, confident. Share ideas Followers able, unwilling, insecure

Participating o

Telling o Giving specific task directions and closely supervising work; a high-task, low-relationship style. o o Give instructions Followers unable, unwilling, insecure.

Explain Houses path-goal theory Like Fielders it is situational based but House believes you can shift between them Directive Leadership- letting followers know what is expected; giving directions on what to do and how; scheduling work to be done; maintaining definitive standards of performance; clarifying the leaders role in the group. Supportive Leadership- doing things to make work more pleasant; treating team members as equals; being friendly and approachable; showing concern for the well-being of subordinates. Achievement-oriented Leadership- setting challenging goals; expecting the highest levels of performance; emphasizing continuous improvement in performance; displaying confidence in meeting high standards. Participative Leadership- involving team members in decision making; consulting with them and asking for suggestions; using these suggestions when making decisions. Define substitutes for leadership Substitutes for leadership: factors in the work setting that direct work efforts without the involvement of a leader o Outside leadership unnecessary because it is already provided within the situation o Managers should not restate the obvious in these situations and instead lead in others ways. Explain LMX theory A leader and follower interact over time, their exchanges end up defining the followers role; in-group vs. out-group.

 Contrast the authority, consultative, and group decisions in the Vroom-Jago model Authority decision is made by the leader and then communicated to the group Consultative decision is made by the leader after receiving information, advice, or opinions from group members. Group decision is made by group members themselves. Governed by three factors o o Decision quality: who has the information necessary to make decision Decision acceptance: Acceptance and commitment critical for implementation? o Decision time: Time pressure for decision making?

Explain how emotional intelligence contributes to leadership success Emotional intelligence is the ability to manage our emotions in social relationships Charismatic leaders display positive emotions that followers find contagious Core Set of emotional intelligence Competencies o o o o o Motivated and Persistent High Social Awareness Good self-management Good relationship management High self-awareness

Discuss research insights on the relationship between gender and leadership The gender similarities hypothesis holds that males and females have similar psychological properties. Women are at times considered more take-care and men more take-charge Womens style at times called Interactive Leadership (see below)

Define interactive leadership

Interactive Leadership: strong communicators and act democratic and participative with followers.

Discuss integrity as a foundation for moral leadership Leaders show integrity by acting with honesty, credibility, and consistency in putting values into action. o This builds trust, and when followers trust their leader they try to behave in ways that live up to the leaders expectations List Druckers three essentials of good old-fashioned leadership 1) Defining and establishing a sense of mission/ The leaders first task is to be the trumpet that sounds a clear sound 2) Accepting leadership as a responsibility rather than as a rank 3) Earn and keep the trust of others (personal integrity)

Segment 15 Decision-Making (Lecture) (*) Be responsible for any content in lectures pertaining to Segment 15 Decision-Making. Summarize the Decision Making Model. 1) Intelligence o Find WHAT we need to fix. ** Most Important/Most often done incorrectly Find possible fixes Pick one fix (Optimize) Apply the fix Was it fixed? 2) Alternatives o 3) Choice o 4) Implementation o 5) Evaluate o *Cycle back through New Intelligence (Continuous Cycle) Explain the relationship between decision-making and risk. Most decisions have uncertain outcomes, therefore, you must be risk-tolerant in order to make good decisions. All decisions have some sort of risk. Risk Aversion (Far Left) o Structure, Absolute Right and Wrong, Set of Rules, Logic, Recurring, Certain Outcome.

Risk Tolerant (Far Right) o Non-structured, No Right & Wrong, No Rules, Gut Decision Making, Uncertain Outcome

Summarize the reasons for decisions. Maximize o Satisficing o Optimal o Dartboard o

Summarize the barriers to effective decision-making. Hip-shooting o Dream Team Syndrome o Dumb and Dumber o Resources o Perfectionism o

Know the Guaranteed Approach To Being Successful In Of All Lifes Decisions.

1) Those who cant laugh at themselves leave the job to others. 2) Perception is reality. Dr Albert Wildt 3) Deal with it! Scotty Pohl 4) _______________ _____________________ Tim Waid

Segment 15 Decision-Making (Textbook Ch. 7) Explain systematic and intuitive thinking Systematic o Approaches problems in a rational and analytical fashion. Approaches problems in a flexible and spontaneous fashion. Intuitive o

List four cognitive styles in decision making Sensation Thinkers o STs tend to emphasize the impersonal rather than the personal and take a realistic approach to problem solving. They like hard facts, clear goals, certainty, and situations of high control Intuitive Thinkers o Its are comfortable with abstraction and unstructured situations. They tend to be idealistic, prone toward intellectual and theoretical positions; they are logical and impersonal but also avoid details. Intuitive Feelers o Ifs prefer broad and global issues. They are insightful and tend to avoid details, being comfortable with intangibles; they value flexibility and human relationships. Sensation Feelers o SFs tend to emphasize both analysis and human relations. They tend to be realistic and prefer facts; they are open to communicators and sensitive to feelings and values. Describe the challenges of crisis decision-making Crisis Decision: occurs when an unexpected problem arises that can lead to disaster if not resolved quickly and appropriately. o o o o 1- Figure out what is going on 2- Remember that speed matters 3- Remember that slow counts too 4- Respect the danger of the unfamiliar

o o

5- Value the skeptic 6- Be ready to fight fire with fire

Explain decision making in certain, risk, and uncertain environments A certain environment offers complete information on possible action alternatives and their consequences A risk environment lacks complete information but offers probabilities of the likely outcomes for possible action alternatives. An uncertain environment lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives. Explain cost-benefit analysis in decision making Cost-benefit analysis: involves comparing the costs and benefits of each potential course of action. Explain how the lack-of-participation error can hurt decision making Lack-of-participation error: is failure to involve in a decision the persons whose support is needed to implement it. List useful questions for double checking the ethical reasoning of a decision 1. UtilityDoes the decision satisfy all constituents or stakeholders? 2. RightsDoes the decision respect the rights and duties of everyone? 3. JusticeIs the decision consistent with the canons of justice? 4. CaringIs the decision consistent with my responsibilities to care?

Explain the availability, representativeness, anchoring, and adjustment heuristics The availability bias bases a decision on recent information or events. o Uses only information that is readily available Assess likelihood of something happening based on its similarity to a stereotyped set of occurences The anchoring and adjustment bias bases a decision on incremental adjustments from a prior decision point. o Occurs when decisions are influenced by inappropriate allegiance to previously existing value or starting point. Illustrate framing error, confirmation error, and escalating commitment in decision making The representativeness bias bases a decision on similarity to other situations o

Framing Error is trying to solve a problem in the context in which it is perceived. o Often referred to in Politics as spinning the data.

Confirmation Error occurs when focusing only on information that confirms a decision already made. o Seek information supporting what we believe ignoring information contradicting our previous belief.

Escalating Commitment is the continuation of a course of action even though it is not working. o Managers that have time calling it quits and keep shoveling resources into a system that doesnt work.

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