13
Exam Chap Review FINAL (Chap 13-18)
Motivation- set of forces that initiates, directs, and makes people persist
in their efforts to accomplish a goal
Needs- the physical or psychological requirements that must be met to
ensure survival and well-being
Extrinsic rewards- tangible and visible to others and are given to
employees contingent on the performance of specific tasks
Intrinsic rewards- the natural rewards associated with performing a task
or activity for its own sake
Equity theory- states that people will be motivated at work when they
perceive that they are being treated fairly
Inputs- contributions employees make to the organization
Outcomes- what employees receive in exchange for their
contributions to the organization
Referents- are others with whom people compare themselves to
determine if they have been treated fairly
Outcome/Input (O/I) Ratio- employees perception of how the
rewards received from the organization compare with the employees
contributions to that organization
Under reward- occurs when you are getting fewer outcomes relative
to inputs compared to your co-workers
Over reward- occurs when you are getting more outcomes to inputs
then your co-workers
Distributive justice- the degree to which outcomes and rewards are
fairly distributed or allocated
Procedural justice- the fairness of the procedures used to reward
allocation decisions
Expectancy theory: people will be motivated to the extent to which
they believe that their efforts will lead to good performance which will
lead to good rewards
Valence- the attractiveness or desirability of various rewards or
outcomes
Expectancy- the relationship between effort and performance
Instrumentality- the relationship between perceived performance
and rewards
Reinforcement theory: says that behavior is a function of its
consequences, that behaviors followed by positive consequences will
occur more frequently then those behaviors followed by negative
consequences will occur less frequently
Reinforcement- process of changing behavior by changing
consequences that follow behavior
Reinforcement contingencies- the cause and effect relationships
between the performance of specific behaviors and specific
consequences
Schedule of reinforcement- the set of rules regarding reinforcement
contingencies such as which behaviors will be reinforced, which
consequences will follow, and the schedule by which the consequences
will be delivered
Positive reinforcement- strengthens behavior by following
behaviors with desirable consequences
Negative reinforcement- strengthens behavior by withholding an
unpleasant consequence when employees perform a specific
behavior
Punishment- weakens behavior by following it when undesirable
consequences
Extinction- is a strategy where positive consequence is no longer
allowed to follow a previously reinforced behavior
Continuous reinforcement schedules- a consequence follows every
instance of a behavior
Intermittent reinforcement schedules- consequences are delivered
after a specified or average time has elapsed or after a specified or
average number of behaviors have occurred
Fixed interval reinforcement schedules- consequence follows a
behavior only after a fixed time has elapsed
Variable interval reinforcement schedules- consequences follow a
behavior after different times, some shorter, some longer, that
vary around a specified average time
Fixed ratio reinforcement schedules- consequences are delivered
following a specific number of behaviors
Variable ratio reinforcement schedules- consequences are
delivered following a different number of behaviors
Goal-Setting Theory- people will be motivated to the extent to which
they accept specific, challenging goals and receive feedback that
indicates their progress toward goal achievement
Goal specificity- the extent to which goals are detailed, exact and
unambiguous
Goal difficulty- is the extent to which a goal is hard or challenging
Goal acceptance- the extent to which people consciously
understand and agree to goals
Performance feedback- is the information about the quality or
quantity of past performance and indicates whether progress is
being made toward the accomplishment
CHAPTER 14
Leadership- is the process of influencing others to achieve group or
organizational goals
Leadership structures- are subordinate, task, or organizational
characteristics that make leaders redundant or unnecessary
Leadership neutralizers- are subordinate, task, or organizational
characteristics that can interfere with a leaders actions or make it
impossible for a leader to influence followers performance
Trait theory- Says that effective leaders possess a similar set of
traits or characteristics
Behaviors Initiating structure- is the degree to which a leader structures the
roles of followers by setting goals, giving directions, setting
deadlines, and assigning tasks
Consideration- is the extent to which a leader is friendly,
approachable, and supportive and shows concern for employees
Leadership style- the way a leader generally behaves toward followers
Contingency theory- a leadership theory that states that in order to
maximize work group performance, leaders must be matched to the
situation that best fits their leadership style
Situational favorableness- the degree to which a particular situation
either permits or denies a leader the chance to influence the behavior of
group members
Leader-member relations- how well the follower respects, trust,
and like their leaders
Task structure- the degree to which the requirements of a
subordinates tasks are clearly specified
Position power- the degree to which leaders are able to hire, fire,
reward, and punish workers
Path-Goal theory- states that leaders can increase subordinate
satisfaction and performance by clarifying and clearing the paths to
goals and by increasing the number and kinds of rewards available for
goal obtainment
Styles
1. Directive leadership- involves letting employees know precisely
what is expected of them, giving them specific guidelines for
performing tasks, scheduling work, setting standards of
performance and making sure people follow these standards
2. Supportive leadership- involves being approachable and friendly
to employees, showing concern for them and their welfare,
treating them as equals and creating a friendly climate
3. Participative leadership- involves consulting employees for their
suggestions and input before making decisions
4. Achievement-oriented leadership- setting challenging goals,
having high expectations of employees, and displaying confidence
that employees will put forth high effort
Situational theory- leaders need to adjust their leadership styles to
match followers readiness
Worker readiness- the ability and willingness to take
responsibility for directing ones behavior at work
Normative decision theory- helps leaders decide how much employee
participation should be used when making decisions
1. Strategic leadership- the ability to anticipate, envision, maintain
flexibility, think strategically, and work with others to initiate
changes that will create a positive future
2. Visionary leadership- creates a positive image of the future that
motivates organizational members and provides direction for
future planning and goal setting
3. Charismatic leadership- the behavioral tendencies and personal
characteristics of leaders that create an exceptionally strong
relationship between them and their followers
a. Ethical charismatics- provide developmental opportunities
for followers and are open for positive and negative
feedback
b. Unethical charismatics- control and manipulate followers,
do what is best for themselves instead of their
organizations, want to hear only positive feedback and
share info beneficial to themselves
4. Transformational leadership- generates awareness and
acceptance of a groups purpose and mission and gets employees
to see beyond their own needs and self interests for the good of
the group
5. Transactional leadership- based on an exchange process, which
followers are rewarded for good performance and punished for
poor performance
CHAPTER 15
Perceptual filters- the personality-, psychology-, or experiencedbased differences that influence people to ignore or pay attention to
particular stimuli
Selective perception- tendency to notice and accept objects and
information consistent with our values, beliefs, and expectations while
ignoring or screening out inconsistent information
Closure- fill gaps where information is missing
Attribution theory- we have all the basic needs to understand and
explain the cause of other peoples behaviors
Defensive bias- the tendency for people to perceive themselves as
personally and situationallly similar to someone who is having
difficulty or trouble
Fundamental attribution error- the tendency to ignore external
causes of behavior and to attribute other peoples actions to
internal causes
Self-serving bias- the tendency to overestimate our value by
attributing success to ourselves and failures to others
Communication:
Decoding- the process by which the receiver translates the
written, verbal, or symbolic form of the message into an
understood message
Feedback to sender- a return message to the sender that indicates
the receivers understanding of the message
Noise- anything that interferes with the transmission of the
intended message
Jargon- vocabulary particular to a profession or group that
interferes with communication in the workplace
Conduit metaphor- the mistaken assumption that senders can
send messages directly into the heads of receivers with perfect
clarity and without noise interfering
Formal communication channel- the system of official channels that
carry organizationally approved messages and information
1. Downward communication- flows from higher to lower levels in
an organization
2. Upward communication- flows from lower levels to higher levels
in an organization
3. Horizontal communication- flows among managers and workers
who are at the same organizational level
Informal communication channels (grapevine)- transmission of
messages from employee to employee outside of formal communication
channels
One on One communication:
Coaching- communicating with someone for the direct purpose of
improving the persons on-the-job performance or behavior
Counseling- communicating with someone about non-job-related
issues such as stress, childcare, health issues or legal issues which
effect performance
Non-Verbal communication- any communication that does not
involve words
Kinesics- movements of the body and face
Paralanguage- includes the pitch, rate, tone, volume, and speaking
pattern (use of silence, pauses, or hesitations) of ones voice
Listening:
Hearing- the act or process of perceiving sounds
Listening- making a conscious effort to hear
o Active listening- means assuming half the responsibility for
successful communication by actively giving the speaker
nonjudgmental feedback that shows youve accurately
heard
o Empathetic listening- understanding the speakers
perspective and personal frame of reference and giving
feedback that conveys that understanding to the speaker
Giving Feedback:
Destructive feedback- disapproving without any intention of
being helpful and almost always causes a negative or defensive
reaction in the recipient
Constructive feedback- intended to be helpful, corrective, and/or
encouraging
Cross-cultural communication- involves transmitting information from
a person in one country or culture to a person from another country or
culture
Affective cultures- tend to display their emotions and feelings
openly when communicating
Neutral cultures- do not display their emotions and feelings
openly
Address terms- cultural norms that establish whether you
address businesspeople by their first names, family names, or
titles
Monochromic cultures- cultures where people tend to do one
thing at a time and view time as linear
Polychronic cultures- people tend to do more than one thing at a
time and view time as circular, meaning that time is a
combination of the past, present and future
Schedule time- the time by which scheduled projects or jobs should
actually be completed
Discussion time- concerns how much time should be spent in discussion
with others
Acquaintance time- how much time you spend getting to know the
person before they are prepared to do business with you
Improving transmission:
Online discussion forums- use web- or software-based discussion
tools to allow employees across the company to easily ask
questions
Televised/videotaped speeches and meetings- speeches and
meetings originally made to a small audience that are broadcast to
different places
Improving reception Organizational silence- when employees withhold information
Company hotlines- phone numbers anyone in the company can
call anonymously to leave information for upper management
Survey feedback- info collected by survey from organization
members and then are compiled, disseminated, and used to
develop action plans for improvement
CHAPTER 16
Control- regulatory process of establishing standards to achieve
organizational goals, comparing actual against performance the
standards, and taking corrective action, when necessary
Standards- basis of comparison for measuring the extent to which
organizational performance is satisfactory or unsatisfactory
Benchmarking- the process of determining how well other
companies perform business functions or tasks
Cybernetic- process of steering or keeping course
Control:
Feedback control- a mechanism for gathering information about
performance deficiencies AFTER they occur
Concurrent control- a mechanism for gathering information about
performance deficiencies AS they occur
Feed forward control- a mechanism for monitoring performance
inputs rather then outputs to prevent or minimize performance
deficiencies before they occur
Control loss- occurs when behavior and work procedures do not
conform to standards
Regulation costs- the cost associated with implementing or
maintaining control
Cybernetic feasibility- the extent to which is possible to
implement each step in the control process
Control methods:
1. Bureaucratic control- the use of hierarchical authority to influence
employee behavior by rewarding or punishing employees for
compliance or non-compliance
2. Objective control- the use of observable measures of worker
behavior or outputs to assess performance and influence behavior
a. Output control- measures the results of their efforts
3. Normative control- the regulation of workers behavior and
decisions through widely shared organizational values and beliefs
4. Concertive control- the regulation of workers behaviors and
decisions through work group values and beliefs
5. Self-control- a control system in which managers and workers
control their own behavior by setting their own goals, monitoring
their own progress, and rewarding themselves for goal
achievement
Balanced scorecard- measurement of organizational performance in
four equally important areas: finances, customers, internal operations,
and innovation and learning
Sub optimization- performance improvement in one part of the
organization but only at the expense of decreased performance in
another part
Financial Perspective:
Cash-flow analysis- predicts how changes in business will affect
its ability to take in more cash then it pays out
Balance sheets- accounting statements that provide a snapshot of
a companys financial position at a particular time
Income statements- show what has happened to a companys
income
Financial ratios- calculations typically used to track a businesss
cash, efficiency, and profitability over time compared to other
businesses in its industry
Budgets- used to project costs and revenues, prioritize and
control spending and ensure that expenses dont exceed available
funds and revenues
Economic value added (EVA)- the amount by which company
profits exceed the cost of capital in a given year
Customer defections- a performance assessment in which companies
identify which customers are leaving and measure the rate at which
they are leaving
CHAPTER 17
Moores Law- the prediction that about every two years, computerprocessing power would double and its cost would drop by 50 percent
Raw data- facts and figures
Information- useful data that can influence peoples choices and
behavior
First-mover advantage- the strategic advantage that companies earn
by being the first to use new information technology to substantially
lower costs or make a product or service different from that of
competitors
Costs:
Acquisition costs- the cost of obtaining data that you dont have
Processing costs- the cost of turning raw data into useable
information
Storage costs- the cost of physically or electronically archiving
information for later use and retrieval
Retrieval costs- the cost of accessing already-stored and
processed information
Communication costs- cost of transmitting information from one
place to another
Capturing Information:
Bar codes- represent numerical data by varying the thickness and
pattern of vertical bars
Radio frequency identification (FRID) tags- contain minuscule
microchips and antennas that transmit information via radio
waves
Electronic scanners- convert printed text and pictures into digital
images
Optical character recognition- the ability of software to convert
digitized documents into ASCII text that can be searched, read,
and edited by word processing software
Processing Information- transforming raw data into meaningful
information that can be applied to business decision making
Data mining- the process of discovering patterns and
relationships in large amounts of data
Data warehouse- stores huge amounts of data that have been
prepared for data mining analysis by being cleaned of errors or
redundancy
Supervised data mining- the process when the user tells the data
mining software to look and test for specific patterns and
relationships in data set
Unsupervised data mining- the process when the user simply tells
the data mining software to uncover whatever patterns and
relationships it can find in a data set
Association or affinity patterns- when two or more database
elements tend to occur together in a significant way
Sequence patterns- when two or more database elements occur
together in a significant pattern, but one of the elements precedes
the other
Predictive patterns- patterns that help identify database elements
that are different
Data clusters- when three or more database elements occur
together in a significant way
Protecting information- the process of ensuring that data are reliably
and consistently retrievable in a usable format for authorized users only
Authentication- making sure users are who they claim to be
Authorization- granting authenticated users approved access to
data, software, and systems
Two-factor authentication- authentication based on what users
know, such as a password and a secure ID card
Biometrics- finger-print recognition or iris scanning, users are
identified by unique, measurable body features
Firewalls- a protective hardware or software device that sits
between the computers in an internal organizational network and
outside networks, such as the internet
Virus- a program or piece of code that, without your knowledge,
attaches itself to other programs on your computer and can
trigger anything from harmless flashing message to the
reformatting of your hard drive to a system-wide network
shutdown
Data inscription- transform data into complex, scrambled digital
codes that can be unencrypted only by authorized users who
possess the unique decryption keys
Virtual private networks (VPNs)- software that securely encrypts
data sent by employees outside the company network, decrypts
data when they arrive within the company network, and does the
same when data are sent back to employees outside the network
Secure sockets layer (SSL) encryption- internet browser-based
encryption that provides secure off-site web access to some data
and programs
Internet Access and Sharing:
Executive information system (EIS)- uses internal and external
data source to provide the information needed to monitor and
analyze organizational performance
Intranets- private company networks that allow employees to
easily access, share, and publish information using internet
software
Corporate portals- a hybrid of executive information systems and
intranets
External Access and sharing Electronic Data interchange (EDI)- when two companies convert
their purchase and ordering information to a standardized format
to enable the direct electronic transmission of that information
from one companys computer system to the other companys
computer system
Web Services- used protocols to describe data from one company
so that it can automatically be read, understood and processed in
another companys system
Extranet- networks that allow companies to exchange information
and conduct transactions with outsiders by providing them direct,
web-based access to authorized parts of a companys intranet or
information system
Sharing knowledge and expertise Decision support system (DSS)- a information system that helps
managers understand specific kinds of problems and possible
solutions and analyze the impact of different decision options
using what if scenarios
Expert systems- an information system that contains the
specialized knowledge and decision rules used by experts and
experienced decision makers so that non-experts can draw on this
knowledge base to make decisions
CHAPTER 18
Productivity- Outputs over Inputs
Kinds Of Productivity:
Partial Productivity- indicates how much of a particular kind of
input it takes to product an output
Multifactor productivity- an overall measure of performance that
indicates how much labor, capital, materials, and energy it takes
to produce an output
International Organization Standard:
ISO 9000- a series of five international standards from ISO 9000ISO 9004, for achieving consistency in quality management and
quality assurance in companies throughout the world
ISO 14000- a series of international standards for managing,
monitoring, and minimizing an organizations harmful effects on
the environment
TQM
Total quality management (TQM)- a integrated, principal-based
organization-wide strategy for improving product and service
quality
o Customer focus- an organizational goal to concentrate on
meeting customers needs at all levels of the organization
o Customer satisfaction- an organizational goal to provide
products or services that meet or exceed customers
expectations
o Continuous improvement- an organizations ongoing
commitment to constantly assess and improve the
processes and procedures used to create products and
services
o Variation- a deviation in the form, condition, or appearance
of a product from the quality standard for that product
Service recovery- restoring customer satisfaction to strongly
dissatisfied customers
Processing:
Made-to order operations- a manufacturing operation that does
not start processing or assembling products until a customer
order is received
Assemble-to-order- a manufacturing operation that divides
manufacturing processes into separate parts or modules that are
combined to create semi-customized products
Make-to-Stock- a manufacturing operation that orders parts and
assembles standardized products before receiving customer
orders
Flexibility of Manufacturing Operations:
Manufacturing flexibility- the degree to which operations can
easily & quickly change the number, kind, and characteristics of
products they produce
Continuous-flow productions- produces goods at a continuous,
rather than a discrete, rate
Line-flow productions- process that are pre-established, occur in
a serial or linear manner, and are dedicated to making one type of
product
Batch production- operation that produces goods in large batches
in standard lot sizes
Job shops- manufacturing operations that handle custom orders
or small batch jobs
Project manufacturing- operation designed to produce large,
expensive, specialized products like custom homes
Inventory- amt and number of raw materials, parts, and finished
products a company has in its possession
*Types:
Raw material inventories- the basic inputs in a process
Component parts inventories- the basic parts used in
manufacturing that are fabricated from raw materials
Work-In-Progress inventories- partially finished goods
consisting of assembled component parts
Finished goods inventories- the final outputs of
manufacturing operations
Measuring Inventory:
Average aggregate inventory- average overall inventory during a
particular time period
Stock-out- the point when a company runs out of finished product
Inventory Turnover- the number of times per year that a company
sells or turns over its average inventory
Cost of Maintaining Inventory:
I. Ordering costs- the costs associated with ordering inventory
including data entry, phone calls, obtaining bids, correcting
mistakes, and determine when and how much to order
II. Setup costs- the costs of downtime and lost efficiency that occur
when a machine is changed or adjusted to produce a different
kind of inventory
III. Holding costs- the cost of keeping inventory until it is used or
sold, including tax, storage costs, insurance, obsolescence, and
opportunity costs
IV. Stock-out Costs- the costs incurred when a company runs out of a
product
Managing Inventory:
Economic order quantity (EOQ)- a system of formulas that
minimizes ordering and holding costs and helps determine how
much and how often inventory should be ordered
Just-In-Time (JIT) inventory- an inventory system in which
component parts arrive from suppliers just as they are needed at
each stage of production
Kanban- a ticket-based JIT system that indicates when to reorder
inventory
Materials requirement planning (MRP)- a production and
inventory system that determines the production schedule,
production batch sizes, and inventory needed to complete final
products
Independent demand systems- an inventory system in which the
level of one kind of inventory does not depend on another
Dependent demand systems- an inventory system in which the
level of inventory depends on the number of finished units to be
produced