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CMHR405 - Final Exam Notes on Selected Topics

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Ryerson University
Human Resources
MHR 405
Gary Allen

MHR405 – Exam: Chs. 5, 7 (pp. 181-194; 198-200), 10, 12, 15 1. Applying Expectancy Theory relationships 5 2. Applying Equity Theory to employee reactions 5 3. Applying the Rational Decision Model effectively 7 4. Decision-making heuristics and how they work 7 5. Bases of power and contingencies of power 10 6. Applying influence tactics 10 7. Competency perspective of leadership 12 8. Path-goal theory of leadership 12 9. Kurt Lewin’s change model 15 10. How to overcome resistance to change 15 Ch5 – Foundations of Employee Motivation Expectancy Theory - motivation theory based on idea that work effort is directed towards behaviours that people believe will lead to desired outcomes; V-I-E theory  E-to-P Expectancy (effort to performance) – perception that their effort will result in particular level of performance; increase belief employees capable of performing job successfully o CAN DO attitude – assure employees have competencies, person-job matching, provide role clarifications & sufficient resources, behavioural modelling  P-to-O Expectancy (performance to outcome)– perceived probability that specific behaviour or performance level will lead to particular outcomes; belief that good performance will result in valued outcomes o WILL DO attitude – measure performance accurately, more rewards for good performance, explain how rewards linked to performance  Outcome Valences – valence is anticipated satisfaction or dissatisfaction that individual feels towards outcome; expected value of outcomes resulting from desired performance; positive valence when consistent with values & satisfy needs, negative when oppose values & inhibit need fulfillment o Ensure rewards are valued, individualize rewards minimize countervalent outcomes Organizational Justice Distributive justice – fairness in outcomes we receive relative to our contributions & outcomes and contributions of others Procedural justice – fairness of procedures used to decide distribution of resources Equity theory – people develop perceptions of fairness in distribution& exchange of resources  Outcome/input ratio o Inputs = employee contributes (skills) o Outcomes = employee receives (pay)  Comparison other o Person/people against whom we compare our ratio, not easily identifiable  Equity evaluation o Compare outcome/input ratio with the comparison other Correcting Inequity Tension - Reduce our inputs - Increase our outcomes - Increase other’s inputs - Reduce other’s outputs - Change our perceptions - Change comparison other - Leave the field Equity sensitivity – individual’s outcome/input preferences & reaction to various outcome/input ratios Ch7 – Decision Making in Organizations Decision making – conscious process of making choices among alternatives with intention of moving toward some desired state of affairs Rational choice paradigm – people should/actually do make decisions based on pure logic/rationality - Subjective expected utility – choice of best alternative based on probability (maximization) - Decision making process – systematic application of stages of decision making Rational Choice Decision Process 1. Identify problem/opportunity - Influenced by cognitive & emotional biases; symptom vs. problem - 5 problem identification challenges  Stakeholder framing – frame situation, persuade decision maker that it’s a problem  Mental models – idea no fit existing model = ignored  Decisive leadership – announce as problem/opportunity before properly assessed  Solution-focused problems – go with first solution for comfort closure  Perceptual defence – block out bad news - Be aware of perceptual & diagnostic limitations, fight against pressure to look decisive, discuss situation with others, maintain divine discontent 2. Choose decision process - Program decisions – follow standard operating procedures - Nonprogrammed decisions – requires all steps in decision model as problem is new, complex, ill-defined 3. Discover/develop alternatives – ready-made solutions, custom-made, or modify existing one 4. Choose best alternative (highest subjective expected utility) - Subjective expected utility – rational choice calculation of expected satisfaction/positive emotion experienced by choosing a specific alternative in a decision - Bounded rationality – limits to degree of rationality, that a decision maker can & WILL use - Prospect theory – how people make decisions when there’s risk & uncertainty involved - Satisficing – selecting solution that’s satisfactory, “good enough”, not OPTIMAL - Paralysed by choices/many options - Intuition – ability to know when problem/opportunity exists & select best course of action without conscious reasoning; emotional experience - Make choices effectively by: systematically evaluate alternatives against relevant factors, be aware of emotions, scenario planning 5. Implement choice 6. Evaluate choice – feedback - Confirmation bias – inflate quality of selected option; forget or downplay rejected alternatives; Caused by need to maintain positive self concept - Escalation of commitment – repeating or further investing in apparently bad decision; caused by self-justification, prospect theory effect, perceptual blinders, closing costs - Effective evaluation: separate decision choosers from evaluators, establish preset level to abandon project, find sources of systematic & clear feedback, involve several people in evaluation process, devil’s advocate role Other decision-making heuristics (step 4)  Anchoring bias – tendency to fixate on initial info as starting point  Availability heuristic – estimate probabilities by how easily we can recall the event, even though other factors influence ease of recall  Representatives heuristic – how similar they are to something else even when better info available  Ignoring the base rate – likelihood of event when making decision  Overconfidence bias – overestimate accuracy of predictions Ch10 – Power & Influence in the Workplace Power – capacity of person/team/organization to influence others; potential, not actual use; perception Sources of Power  Legitimate – agreement that people in certain roles can request certain behaviours of others o Norm of reciprocity – legitimate power as a felt obligation to help others who helped in past  Reward – to control allocation of rewards valued by others & to remove negative sanctions  Coercive – to apply punishment, eg. Peer pressure  Expert – influence others by possessing knowledge/skills that they value  Referent – influence others based on identification with & respect for power holder; charisma  Information = power (eg. assistants) o Cope with uncertainty  Prevention of environmental changes  Forecasting & predict changes  Absorption of impact on environmental changes Contingencies of Power  Substitutability – availability of alternatives; differentiate resource from others = irreplaceable o Increase nonsubstitutability by controlling the resource  Exclusive right to perform medical procedures  Control over skilled labour  Exclusive knowledge to repair equipment  Centrality – nature of interdependence between power holder & others; how actions affect others (# of people & how quickly affected)  Discretion – freedom to exercise judgement, make decisions without referring to specific rules/receiving permission, rules limit discretion = limit power; perception  Visibility – make others aware of your presence (more face time, locate office near busy routes); symbols (educational diplomas, clothing) Social networks & power  People connected to each other through forms of interdependence  Social capital – knowledge & resources available to people/social units due to durable network that connects them to others  3 power resources o Knowledge sharing o Visibility o Referent power Influence Influence – attempts to alter someone’s attitudes/behaviour Influence Tactics Hard Influence Tactics  Silent authority o Follow request without overt influence o Based on legitimate power, role modeling  Assertiveness o Actively applying legitimate & coercive power (vocal authority) o Reminding, confronting, checking, threatening  Information control o Manipulating others’ access to info o Withholding, filtering, re-arranging info  Coalition formation o Groups form to gain more power than individuals alone o Pool resources/power, legitimizes issue, power through social identity  Upward appeal o Appealing to higher authority & firm’s goals o Alliance/perceived alliance with higher status person Soft Influence Tactics  Persuasion o Logic, facts, emotional appeals o Depends on persuader, message content/medium, audience  Ingratiation/Impression management o Increase liking by, or perceived similarity to target person  Exchange o Promising/reminding of past benefits in exchange for compliance; negotiation & networking Consequences of Influence Tactics 3 responses
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