Final Reviews Lecture notes.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 2181A/B
Maria Ferraro

Final Exam Review (Chapters 11-14) Chapter 11 Decision Making 1. Define decision making and differentiate well-structured and ill-structured problems.  Process of developing a commitment to some course of action o Involves making choice among several action alternatives – problem solving o It is a process o Involves a commitment of resources  well-structured: existing state is clear, desired state is clear and how to get from one to another is obvious o simple, and solution = little controversy o repetitive & familiar and can be programmed (standardized way of solving problem)  can go directly from problem id to solution  rules, routines, standard operating procedures or rules of thumb  only as good as the decision making process that led to adoption of program in first place  ill-structured: exiting and desired state unclear and methods are unknown o unique & unusual problems, complex and high degree of uncertainty, arouse controversy & conflict o can’t be solved with programmed decisions, entail high task and political considerations 2. Compare and contrast perfectly rational decision making with decision making under bounded rationality.  Perfect rationality: complete informed, perfectly logical & oriented toward economic gain o Economic person: gather info without cost & completely informed, logical, economic gain  Bounded: (Herbert Simon) Economic characteristic don’t exist- decision strategy relies on limited info and reflect time constraints & political considerations o Framing (aspects of presentation of info about problem that are assumed by decision maker) and cognitive biases impact mood and emotions on decision 3. Discuss the impact of framing and cognitive biases on the decision process.  Tendencies to get and process info in particular way prone to error  Bounded rat can lead to: perceptual defence, problem defined in terms of functional specialty/terms of solution, problem diagnosed in terms of symptoms o E.g. 10000 expense seen as cost or investment 4. Explain the process of escalation of commitment to an apparently failing course of action.  Tendency to incest addition resources in an apparently failing course of action o Acting as if recoup sunk cost  Can happen when current decision maker not responsible for precious sunk costs & in competitive & non competitive situs  Groups more prone  Resaons: o dissonance reduction o social norm for consistent behaviour o motivation to not appear wasteful o way problem is framed o personality/moods/emotions  Prevent: o Encourage continuous experimentation with reframing problem o Set specific goals for project in advance that must be met in more resources are to be invested o Place emphasis on evaluating managers on HOW they made decisions (not outcome) o Separate initial & subsequent decision making 5. Consider how emotions and mood affect decision making.  Strong emotions: can be hindrance  Mood: what and how ppl think, greatest impact on uncertain ambiguous decision  Good: overestimate likelihood good events will occur – adopt simplified short duct strategies (violation rational model) – creative intuitive  Negative mood: approach in deliberate, systematic detailed way Final Exam Review (Chapters 11-14) 6. Summarize the pros and cons of using groups to make decisions, with attention to the groupthink phenomenon and risk assessment.  Pros: o Quality o Decision acceptance and commitment o Responsibility: (share burden of neg consequences)  Cons o Time (increases) o Conflict o Domination  Groupthink: group pressure to damage mental efficiency, reality testing, and moral judgment o Unanimous acceptance of decision stressed over quality o Factors that cause: high cohesiveness, strong id with group, concern for approval from group, isolation from other sources, promotion of particular decision by group leader (strongest) o Symptoms: illusion of invulnerability, rationalization, illusion of morality, stereotypes of outsiders, pressure for conformity, self-censorship, illusion of unanimity, mindgaurds o Prevent: leader not exert undue pressure, establish norms that like responsible dissent, outside experts brought in 7. Discuss techniques for improving organizational decision making  Training discussion leaders: use of role playing training Final Exam Review (Chapters 11-14)  Simulating & managing controversy: incorporating members/backgrounds, forming subgroups, establishing norms that favour open sharing o Devil advocate – improves quality – have to present unemotional manner  Traditional Brainstorming: attempt to increase number of creative solution alternatives to problems by focusing on idea generation rather than evaluation o Indis brainstorm more than groups  Nominal Group Technique (NGT): ideas generated without group interaction then evaluated by group o Takes more time  Pooling large # of expert judgments by increasingly refined questionnaires o Solely on nominal group participants (no face to face) o Lengthy time o Avoid conformity & domination Final Exam Review (Chapters 11-14) Chapter 12 Power, Politics and Ethics 1. Define power and review the bases of individual power.  The capacity to influence others who are in state of dependence o Can be found in position or resources one able to command  Bases: o Legitimate power  Derived from persons position or job in O (authority lvl) o Reward power  Ability to provide + outcomes & prevent – ones  Positive reinforcement (anyone can with praise, compliments and flattery) o Coercive power  Use of punishment and threat  Lower lvl can but when managers use its ineffective and provoke resistance o Referent power  Being well liked by others  Stems from identification with powerholder, anyone can (interpersonal relations) o Expert Power  Having special info valued by O (difficulty of replacement)  Most consistently associated with employee effectiveness (women more) 2. Explain how people obtain power in organizations. (do right thing)  Extraordinary activities: in unusual or non routine  Highly visible: activities must be seen to others  Relevant activities: to solution of important O problems (cultivating right ppl)  Outsiders: good relation with outside ppl  Subordinates: closely I with certain up-and-coming subordinates, backed by cohesive team  Peers: ensuring nothing gets in way of ones future acquisition of power  Superiors: liaisons with key superiors is best way of obtaining power,, mentors 3. Discuss the concept of empowerment.  Giving ppl authority, opp and motivation to take initiative & solve O problems  They get high sense of self-efficacy, fosters job sat and high performance 4. Review various influence tactics.  Convert power into actual influence over others (specific behaviours powerholders use) o Assertiveness (subordinates recipients) o Ingratiation – effective for women o Rationality (+ viewed, directed to superiors) – effective for men o Exchange *shotgun (all) ineffective o Upward appeal o Coalition formation 5. Provide a profile of power seekers.  Institutional managers o Use power to achieve O goal o Adopt participative/coaching leadership style o Don’t care if ppl like them o More effective than personal power manager (personal gain) and affiliated managers (wanna be liked) o Gives sense of responsibility, O clarity, team spirit 6. Explain strategic contingencies and discuss how subunits obtain power.  Subunits gain power by controlling SC which are factors affecting O effectiveness controlled by key subunit  Work other subunits perform contingent on activities & performance of key subunit (dependence in power relationships) Final Exam Review (Chapters 11-14)  Scarcity (get power when secure scare resources important to O as whole)  Uncertainty (when they can cope)  Centrality (activities more central to work flow of O) o Influences work of others, crucial impact on quantity or quality of O product & services, impact is immediate  Substitutability (not easily replaced) o Change in labour market = change in subunits influence (if work can be contracted out) 7. Define organizational politics and discuss its various forms.  Pursuit of self-interest in O, using means of influence O doesn’t sanction o Political activity = self-conscious & intentional  Association between influence means & influence ends that determines if benefit  Political skill: ability to understand others @ work & used knowledge to influence others (Job P) o Social astuteness o Interpersonal influence o Apparent sincerity o Networking ability  Maintaining contacts, socializing, professional activities, community acts and internal vis  Machiavellianism: high =lying and deceit to achieve goals (ends justify means)  Defensiveness- Reactive: reduce threats to ones power by avoid action don’t suit agenda or avoid blame for events that threaten political capital (no action) o Stalling, over conforming, buck passing(soone1 else take action) (avoid blame) o Buffing (document), scapegoating (blame others), 8. Define ethics and review the ethical dilemmas that managers face.  Systematic thinking about moral consequences (potential harm for others) of decisions  Dilemmas: honest communication, fair treatment, special consideration, fair competition, responsibility to organization, corporate social responsibility, respect for law  Causes: gain, role conflict, competition (or where none), and personality 9. Define sexual harassment and discuss what organizations can do to prevent it and how they should respond to allegations.  Form of unethical behaviour stems from abuse of power and perpetuation of gender power imbalance  Deaf ear syndrome  Dealings with: examine characteristics of deaf ear O, foster management support & education, stay vigilante, take immediate action, create state of art policy, establish clear reporting procedures  Should: top management commitment, education programs, monitor work environment, respond quick, clear polices and reporting procedures Final Exam Review (Chapters 11-14) Chapter 13 Conflict and Stress 1. Define interpersonal conflict and review its causes in organizations.  One person, group or O subunit frustrates foal attainment of another (antagonistic attitudes and behv)  Causes: o Group Id and Intergroup bias (most + view of own in-group, self-esteem) o Independence (mutually indi on each other to accomplish their own goals) o Diffs in power, status & culture o Ambiguity (goals, jurisdictions, or performance criteria = conflict) o Scarce resources (power jockeying , limited budget $ supper or lab space = conflict) 2. Explain the types of conflict and the process by which conflict occurs.  Relationship conflict: interpersonal tensions among indis, not task (e.g. personality clashes)  Task conflict: disagreements about nature of work to be done (e.g. diff opinions about goals)  Process conflict: disagree how would should be organized and accomplished (responsibility, authority, resource allocation and who does what)  Events that transpire: o Winning more important than good solution o Conceal info or distort o Each side becomes more cohesive and don’t talk o Opposite – stereotyped, image of own boosted o Aggressive ppl emerge as leaders 3. Discuss the various modes of managing conflict.  Avoiding: low assertiveness of ones own interest & low cooperation with other party – short term stress reduction – use when issue trivial, info lacking, ppl need to cool down, opponent very powerful & hostile  Accommodating: one cooperates with other while not asserting own interests – good when you are wrong, issue more important to other, u wanna build good will  Competing: max assertiveness & min cooperation – effective when u lotsa power, sure of facts, situ win- lose, u wont have to interact in future  Compromise: combines intermediate lvls of ass & coop – not useful for power conflicts – sensible if coming from scarce resources & good fall-back if others fails – not creative response  Collaborating: max assert & coop – secure integrative agreement that satisfies both – win win- best when
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