Answers to come:
Managers deal with problems posing threats and offering opportunities.
Managers can be problem avoiders, problem solvers, or problem seekers.
Managers make programmed and nonprogrammed decisions when solving
Managers can use systematic and intuitive thinking.
Managers use different cognitive styles to process information for decision-
Managers make decisions under conditions of certainty, risk, and
Problem solving- involves identifying and taking action to resolve problems.
Knowledge workers- add value to organizations through their intellectual
Information competency- is the ability to gather and use information to solve
Performance threat- is a situation where something is wrong or likely to be wrong.
Performance opportunity- is a situation that offers the possibility of a better
future if the right steps are taken.
Decision- is a choice among possible alternative courses of action.
Programmed decision- applies a solution from past experience to a routine
Nonprogrammed decision- applies a specific solution that has been crafted to
address a unique problem.
Systematic thinking- approaches problems in a rational and analytical fashion.
Intuitive thinking- approaches problems in a flexible and spontaneous fashion.
Cognitive style- is the way an individual deals with information while making
decisions. Certain environment- offers complete information on possible action alternatives
and their consequences.
Risk environment- lacks complete information but offers probabilities of the likely
outcomes for possible action alternatives.
Uncertain environment- lacks so much information that it is difficult to assign
probabilities to the likely outcomes of alternatives.
Answers to come:
Step 1 identify the problem and define the problem
Step 2 is to generate and evaluate alternative courses of action.
Step 3 is to decide on a preferred course of action.
Step 4 is to implement the decision.
Step 5 is to evaluate results.
Ethical reasoning is important at all steps in decision making.
Decision-making process- begins with identification of a problem and ends with
evaluation of implemented solutions.
Cost-benefit analysis- involves comparing the costs and benefits of each potential
course of action.
Classical decision model- describes decision making with complete information.
Optimizing decision- chooses the alternative providing the absolute best solution
to a problem.
Behavioral decision model- describes decision making with limited information
and bounded rationality.
Satisfying decision- chooses the first satisfactory alternative that presents itself.
Lack-of-participation error- is failure to include the right people in the decision-
1st set of ethics questions based on 4 criteria by ethicist Gerald Cavanagh:
1. Utility- Does the decision satisfy all constituents or stakeholders?
2. Rights- Does the decision respect the rights and duties of everyone?
3. Justice- Is the decision consistent with the canons of justice?
4. Caring- Is the decision consistent with my responsibilities to care? Spotlight questions- highlights the risks of public disclosure of one’s actions.
1. “How may I feel if my family found out about the decision?”
2. How would I feel if this decision was published in the local newspaper or
posted on the Internet?”
3. What would the person I know who has the strongest character and best
ethical judgment say about my decision?”
Answers to come:
Personal factors help drive creativity in decision-making.
Group decision-making has both advantages and disadvantages.
Judgmental heuristics and other biases and traps may cause decision-making
Managers must be prepared for crisis decision-making.
Creativity- is the generation of a novel idea or unique approach that solves a
problem or crafts an opportunity.
Why group decision are often good
More information- More information, expertise, and viewpoints are available
to help solve problems.
More alternatives- More alternatives are generated and considered during
Increased understanding- there is increased understanding and a greater
acceptance of the decision by group members.
Greater commitment- There is an increased commitment of group members
to work hard and support the decision.
Why group decisions are bad
Conformity with social pressures- Some members feel intimidated by others
and give in to social pressures to conform.
Domination by a few members- A minority dominates; some members get
railroaded by a small coalition of others.
Time delays- More time is required to make decisions when many people try to
Availability heuristic- uses readily available information to assess a current
Representativeness heuristic- assesses the likelihood of an occurrence using a
stereotyped set of similar events.
Anchoring and adjustment heuristic- adjusts a previously existing value or
starting point to make a decision. Farming error- is solving a problem in the context period.
Conformation error- is when we attend only to information that confirms a
decision already made.
Escalating commitment- is the continuation of a course of action even though it is
Crisis- an unexpected problem that can lead to disaster if not resolved quickly and
Answers to come:
Human resource management attracts, develops, and maintains a talented
Strategic human resource management aligns human capital with
Government legislation protects against employment discrimination.
Laws can’t guarantee that employment discrimination will never happen.
Human resource management (HRM)- the process of attracting, developing, and
maintaining a high-quality workforce.
Human capital- the economic value of people with job-relevant abilities,
knowledge, ideas, energies, and commitments.
Strategic human resource management- mobilizes human capital to implement
Job discrimination- occurs when someone is denied a job or job assignment for
non-job relevant reasons.
Equal employment opportunity (EEO)- the right to employment and
advancement without regard to r ace, sex, color, or national origin.
Affirmative action- is an effort to give preference in employment to women and
minority group members.
Bona fide occupational qualifications- are employment criteria justified by
capacity to perform a job.
Samples of U.S. laws against employment discrimination:
Employee privacy- the right to privacy on and off the job.
Pay discrimination- occurs when men and women are paid differently for doing
Pregnancy discrimination- penalizes a woman in a job or as a job applicant for
Age discrimination- penalizes an employee in a job or as a job applicant for being
over the age of 40.
Answers to come:
Recruitment attracts qualified job applicants.
Selection makes decisions to hire qualified job applicants.
Socialization and orientation integrate new hires into an organization.
Training continually develops employee skills and capabilities.
Retention and career development provide career paths.
Person-job fit- is the match of individual skills, interests, and personal
characteristics with the job.
Person-organization fit- is the match of individual values, interests, and behavior
with the organizational culture.
Recruitment- is a set of activities designed to attract a qualified pool of job
Realistic job previews- provides job candidates with all pertinent information
about a job and organization.
Selection- choosing whom to hire from a pool of qualified applicants.
Reliability- means that a selection device gives consistent results over repeated
Validity- means that scores on a selection device have demonstrated links with
future job performance. Assessment center- examines how job candidates handle simulated work
Work sampling- evaluates applicants as they perform actual work tasks.
Socialization- systematically influences the expectations, behavior, and attitudes of
Orientation- familiarizes new employees with jobs, co-workers, and organizational
policies and services.
Coaching- occurs as an experienced person offers performance advice to a less
Mentoring- assigns early-career employees as protégés to more senior ones.
Reverse mentoring- younger and newly hired employees mentor senior
executives, often on latest developments with digital technologies.
Performance appraisal- the process of formally evaluating performance and
providing feedback to a job holder.
Graphic rating scale- uses a checklist of traits or characteristics to evaluate
Behaviorally anchored rating scale (BARS)- uses specific descriptions of actual
behaviors to rate various levels of performance.
Critical-incident technique- keeps a log of someone’s effective and ineffective job
360 degree feedback- includes superiors, subordinates, peers, and even customers
in the appraisal process.
Multiperson comparison- compares one person’s performance with that of others.
Career development- the process of managing how a person grows and progresses
in a career.
Career planning- the process of matching career goals and individual capabilities
with opportunities for their fulfillment.
Answers to come:
Today’s lifestyles increase demands for flexibility and work-life balance. Organizations use more independent contractors and part-time workers.
Compensation plans influence employee recruitment and retention.
Fringe benefits are an important part of employee compensation packages.
Labor relations and collective bargaining are closely governed by law.
Work-life balance- involves balancing career demands with personal and family
Independent contractors- are hired on temporary contracts and are not part of the
organization’s permanent workforce.
Contingency workers- work as needed and part-time, often on a longer-term basis.
Merit pay- awards pay increases in proportion to performance contributions.
Bonus pay- plans provide one-time payments based on performance
Profit sharing- distributes to employees a proportion of net profits earned by the
Gain sharing- allows employees to share in cost savings or productivity gains
realized by their efforts.
Stock options- give the right to purchase shares at a fixed price in the future.
Fringe benefits- are nonmonetary forms of compensation such as health insurance
and retirement plans.
Family-friendly benefits- help employees achieve better work-life balance.
Flexible benefits- programs allow choice to personalize benefits within a set dollar
Employee assistance programs- helps employees cope with personal stresses and
Labor union- an organization that deals with employers on the workers’ collective
Labor contract-a formal agreement between a union and an employer about the
terms of work for union members. Collective bargaining- the process of negotiating, administrating, and interpreting
a labor contract.
Two-tier wage systems- pay new hires less than workers already doing the same
job with more seniority.
Answers to come: