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What company is mentioned in chapter 1?

Quicken Loans

What is chapter 1 about?


Introduction to the field of organizational behavior
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Organizational Behavior
the study of what people think, feel, and do in and around organizations.

Organizations
Groups of people who work interdependently toward some purpose.

How long have organizations existed?


Since the first time people worked together

Max Weber
wrote about rational organizations, work ethic, charismatic leadership

Frederick Taylor
proposed systematic ways to organize work processes and motivate employees through
goal setting and rewards

Elton Mayo
established HR school of management, emphasized the study of employee attitudes.

Higher OB practices
are good predictors of an organization's success

organizational effectiveness
the organization's fit with the external environment, internal subsystems configuration
for high performance, emphasis on organizational learning, and an ability to satisfy the
needs of key stakeholders

open systems
a perspective that holds that organizations depend on the external environment for
things
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organizational (structural) capital


knowledge embedded in an organization's systems and structures

organizational efficiency
the amount of outputs relative to inputs in the organization's transformation process

intellectual capital
a company's stock of knowledge, including human, strucutral, and relationship capital

human capital
the stock of KSA among employees that provide economic value to the organization

relationship capital
the value derived from an organization's realtionship with inputs

high performance work practices


a perspective that hold that effective organization incoprorate several workplace
practices that leverage the potential of human capital

stakeholders
anyone that is affected or affects an organization's objectives or actions

values
stable evaluative beliefs that guide a persons preferences for outcomes or courses of
action in a variety of situations

ethics
the study of moral principles that determine whether actions are right or wrong and
outcomes are good or bad

corporate social responsibility


activities intended to benefit society/environment beyond firm's immediate obligations

surface level diversity


the observable demographic or physiological differences in people

deep level diversity


differences in phsycological characterstics of employees

evidence based mgmt

pracice of making decision and taking actions based on evidence

What company is discussed in chapter 2?


iceland foods group

What is chapter 2 about?


Individual behavior, personality, and values

skill will model


performance=ability x motivation

MARS
motivation, ability, role perceptions, situation

what is MARS
model for individual behavior

motivation
forces within a person that affect his or her direction, intensity, and persistence of
voluntary behavior

direction
path along which they steer their efforts

intensity
amount of effort allocated to effort

ability
natural aptitudes and learned capabilities required to complete task

aptitude
natural talents, help learn more quickly/perform better

learned capability
skills, knowledge you currently possess

competency
chracteristics of a person that result in better performance, includes capabilities and
aptitudes

role perceptions
degree to which a person understand job duties assigned to them

task performance
goal-directe behaviors under a person's control

organizational citizenship behavior


cooperations nd helpfulness to others that support the organization's social and
psychological context

counterproductive work behaviors


voluntary behaviors, have ability to directly or indirectly harm organization

presenteeism
coming to work even when your work ability is severely diminished

personality
relatively enduring patterns of thought, emoption, and behavior that caracterize a
person

nature
our genetic/hereditary origins

nurture
the things we've ben taught

five factor model


five broad dimensions representing most personality traits

What are the five factors?


conscientousness, agreeableness, neuroticism, openness to experience, extraversion

conscientousness
(high) describes people who are organized, dependable, goal-focused, thorough,
disciplined

agreeableness
(high) describes people who are trusting, helpful, good-natured, tolerant, flexible

neuroticism

(high) anxious, insecure, depreseed, tempermental

openness to experience
(high) imaginative, unconventional, autonomous, aesthetics. ***NOT AGREED***

extraversion
(high) outgoing, talkative, energetic

Myers-Briggs Type Indicator


(MBTI) most popular personality test

first rung of MBTI


extraverion (E) or introversion (I)

second rung of MBTI


sensing (S) or intuitive (N)

third rung of MBTI


thinking (T) or feeling (F)

fourth rung of MBTI


judging (J) or perceiving (P)

sensing
person is concrete, practical

intuitive
person is abstract, creative

thinking
person is logical, objective

feeling
person is empathetic, caring

judging
person is organized, closure and schedule focused

perceiving
person is spontaneous, opportunity-focused

value system
values in a hierarchy of preferences

OB emerged?
Around the 1940's

Why study OB
Understand behavior, Influence behavior, Predict behavior

5 trends in the workplace


Globalization, Workforce diversity, Evolving employment relationships, Virtual work,
Workplace values and ethnics

Globalization
Economic, social, and cultural connectivity (and interdependence)with people in other
parts of the world.

Dimensions of workforce diversity


Primary- race, mental/physical qualities, age, gender, sexual orientation, ethnicity
Secondary- first language, life expectancies, geographic location, behavioral style,
education, income, work experience, work style, marital status, occupation, religion.

Work life balance


Minimising conflict between work and non-work demands

Employability
An employment relationship in which people perform a variety of work activities rather
than hold specific jobs, and are expected to continuously learn skills that will keep them
employed.

Contingent work
Any job in which the individual does not have an explicit or implicit contract for long term
employment, or one in which the minimum hours of work can vary in a nonsystematic
way

Virtual teams
Teams whose members operate across space, time, and organizational boundaries,
and who are linked through information technologies to achieve organizational goals

Five philosophical anchors of organizational behavior (COMMS)


Contingency
Open systems
Multidisciplinary
Multiple levels of analysis
Systematic research

Grounded theory
A process of developing theory through the constant interplay between data gathering
and the development of theoretical concepts

Contingency approach
The idea that a particular action may have different consequences in different situations

Organizational learning
The capacity for an organization to acquire, share, and use knowledge more effectively
in order to maintain a valuable stock of knowledge (intellectual capital)

Communities of practice
Informal groups bound together by shared expertise and passion for a particular activity
or interest

employee engagement
an individual's involvement with, satisfaction with, and enthusiasm for the work he or
she does

maslow's hierarchy of needs


a method of classifying human needs and motivations into five categories in ascending
order of importance: physiological, safety, social, esteem, and self-actualization

need for achievement


The extent to which an individual has a strong desire to perform challenging tasks well
and to meet personal standards for excellence.

need for affiliation


The extent to which an individual is concerned about establishing and maintaining good
interpersonal relations, being liked, and having other people get along.

Need for power

persons desire to control environment, including people and material resources to


benefit themselves or others

four drive theory


Motivation theory drive to acquire, Drive to bond, drive to learn, drive to defend

social cognitive theory


Theory that explains how learning and motivation occur by observing and modelling
others. Anticipating the consequences of our behaviour

goal setting
the process of working toward something you want to accomplish

balanced scorecard
measurement of organizational performance in four equally important areas: finances,
customers, internal operations, and innovation and learning

strength based coaching


A positive organizational behavior approach to coaching and feedback the focuses on
building and leveraging the employee's strengths rather than trying to correct his or her
weakness

multisource 360 degree feedback


Collecting information to appraise an employee's performance from a full circle of
people, including subordinates, peers, supervisors, and customers.

distributive justice
the perceived degree to which outcomes and rewards are fairly distributed or allocated

procedural justice
The perceived fairness of the process used to determine the distribution of rewards

equity theory
a theory that states that people will be motivated when they perceive that they are being
treated fairly

Needs
Deficiencies that energize or trigger behaviors to satisfy those needs

Drives

Instinctive or innate tendencies to seek certain goals or maintain internal stability

Self actualization
The need for self fulfillment - a sense that a person's potential has been realized

Positive organizational behavior


Building positive qualities and traits within individuals or institutions as opposed to
focusing on just trying to fix what might be wrong with them

ERG theory
And needs hierarchy theory consisting of three instinctive needs - existence,
relatedness, and growth

Expectancy theory
The motivation theory based on the idea that work effort is directed toward behaviors
that people believe will lead to desired outcomes

E-to-P expectancy
The individual's perception that his or her effort will result in a particular level of
performance

P-to-O expectancy
The perceived probability that a specific behavior or performance level will lead to
specific outcomes

Outcome variance
The anticipated satisfaction or dissatisfaction that an individual feels toward an outcome

Characteristics of effective goals


Specific, Relevant, Challenging, Goal commitment, Goal participation, Goal feedback

Feedback
Any information that people receive about the consequences of their behavior

Characteristics of effective feedback


Specific, Relevant, Sufficiently frequent, Credible, Timely

Organizational justice

Distributive justice - the perceived fairness in outcomes we receive relative to our


contributions and outcomes and contributions of others, Procedural justice - the fairness
of the procedure used to decide the distribution of resources

Equity sensitivity
A person's outcome/input preferences and reactions to various outcome/input ratios

competencies
Skills, knowledge, aptitudes, and other personal characteristics that lead to superior
performance

resilience
The ability to adapt successfully in spite of difficult circumstances and threats to
development

Dark triad
a special cluster of traits underlying socially offensive personalities: machiavellianism,
psychopathy and narcissism.

collectivism
a cultural orientation in which cooperation and group harmony take priority over purely
personal goals

uncertainty avoidence
Extent to which the culture feels threatened by amiquous uncertain situations and tries
to avoid them by establishing more structure.

achievement nurturing orientation


a cross-cultural value describing the degree to which people in a culture emphasize
competitive versus cooperative relations with other people

organization
groups of people who work interdependently towards same purpose

absorptive capacity
the ability of an enterprise to identify, value, assimilate, and use new knowledge

organizational memory
The storage and preservation of intellectual capital

virtual work
work performed away from the traditional physical workplace using information
technology

evidence based management


the practice of making decisions and taking actions based on research evidence

Emotions
Psychological, behavioral, and physiological episodes experienced toward an object,
person, or event that create a state of readiness

Emotional labor
The effort, planning, and control needed to express organizationally desired emotions
during interpersonal transactions

Emotional dissonance
A conflict between a person's required and true emotions

Surface acting
Modifying our behavior to be consistent with required emotions but continuing to hold
different internal feelings

Deep acting
Changing true emotions to match the required emotions

Dimensions of emotional intelligence


Self awareness - a deep understanding of one's own emotions as well as strengths,
weaknesses, values, and motives, Self-management - how well we control or redirect
our internal states, impulses, and resources, Social awareness - mainly about empathy,
Relationship management - managing other people's emotions

Job satisfaction
A person's evaluation of his or her job and work context

Exit - voice - loyalty - neglect (EVLN) model


The four ways, as indicated in the name, employees respond to job dissatisfaction

Organizational commitment

The employees emotional attachment to identification with, and involvement in a


particular organization

Building organizational commitment


Justice and support, Shared values, Trust, Organizational comprehension, Employee
involvement

Psychological contract
the individual's beliefs about the terms and conditions of a reciprocal exchange
agreement between that person and another party

Perception
The process of receiving information about and making sense of the world around us

Selective attention
The process of filtering information received by our senses

Categorical thinking
The mostly unconscious process of organizing people and objects into frequency
categories that are stored in our long-term memory

Mental models
The broad worldviews or "theories in-use" that people rely on to guide their perceptions
and behaviors

Social identity theory


A conceptual framework based on the idea that how we perceive the world depends on
how we define ourselves in terms of our membership in various social groups

Social identity theory features


categorization process, Homogenization process, Differentiation process

Stereotyping
The process of assigning traits to people based on their membership in a social
category

Reasons for stereotyping


Categorical thinking, Need to understand and anticipate others behavior, Enhance our
self-perception and social identity

Contact hypothesis
A theory stating that the more we interact with someone, the less we rely on stereotypes
to understand that person

Attribution theory
The perceptual process of deciding whether an observed behavior or event is caused
largely by internal or by external factor

fundamental attribution errors


The tendency to attribute the behavior of other people more to internal than external
factors

Self serving bias


a perceptual error whereby people tend to attribute there favorable outcomes to internal
factors and their failures to external factors

Self fulfilling prophecy


Occurs when our expectations about another person cause that person to act in a way
that is consistent with those expectations

Primacy effect
A perceptual error in which we quickly form an opinion of people based on the first
information we receive about them. First impressions

Recency effect
A perceptual error in which the most recent information dominates one's perception of
others

Halo effect
A perceptual error whereby general impression of a person, usually based on one
prominent characteristic, colors the perception of other characteristics of that person

Projection bias
A perceptual error in which an individual believes that other people have the same
beliefs and behaviors that we do

Empathy
A person's understanding and sensitivity to the feelings, thoughts, and situations of
others

Tacit knowledge
Knowledge embedded in our actions and ways of thinking, and transmitted only through
observation and experience

Behavior modification
A theory that explains learning in terms of antecedents and consequences of behavior

ABC's of behavior modification


Antecedents - what happens before behaviour, Behavior - what person says or does,
Consequence - what happens after behavior

Positive reinforcement
Occurs when the introduction of a consequence increases or maintains the frequency or
future probability of a behavior

Punishment
Occurs when a consequence decreases the frequency or future probability of a
behavior

Negative reinforcement
Occurs when the removal or avoidance of a consequence increases or maintains the
frequency or future probability of a behavior

Extinction
Occurs when the target behavior decreases because no consequence follows it

Social learning theory


A theory stating that much learning occurs by observing others and then modeling the
behaviors that lead to favorable outcomes and avoid the behaviors that lead to
punishing consequences

Self reinforcement
Occurs whenever someone has control over reinforcer but delays it until I self set goal
has been completed

Action learning
A variety of experimental learning activities in which employees are involved in a "real,
complex, and stressful problem" usually in teams, with immediate relevance to the
company

Job evaluation
a process that determines the worth of each job in a company by evaluating the market
value of the knowledge, skills, and requirements needed to perform it

gain sharing plans


group incentive program that measures improvements in productivity and effectiveness
and distributes a portion of each gain to employees.

employee share ownership plan


a reward system that encourages employees to buy shares of the company

share options
A scheme that allows managers and employees the right, but not the obligation, to
acquire shares in the business at some future date at an agreed price. p. 396.

profit sharing plan


a program that allows employees to share in the profits of a company based on the
profitability of the company and an allocation formula determining each employee's
share.

job design
The process by which managers decide how to divide tasks into specific jobs

job specialisation
Result in division of labor where work is sub divided into separate jobs an assigned to
different people

scientific management
studying workers to find the most efficient ways of doing things and then teaching
people those techniques

motivator-hygiene theory
Herzberg's theory stating that employees are primarily motivated by growth and esteem
needs, not by lower-level needs.

job characteristics model


an approach to job redesign that seeks to formulate jobs in ways that motivate workers
and lead to positive work outcomes

skill variety
Extent to which a job requires a variety of different activities for successful completion.

task identity
The degree to which a job requires completion of a whole and identifiable piece of work

task significance
The degree to which a job has a substantial impact on the lives or work of other people

autonomy
Degree to which a job gives employees the freedom, independence and discretion to
schedule their work and to determine the procedures used in completing it

job rotation
a job enrichment strategy that involves moving employees from one job to another

job enrichment
increasing the number of tasks in a particular job and giving workers the authority and
control to make meaningful decisions about their work

empowerment
the delegation of power and authority to subordinates

self leadership
a set of processes through which individuals control their own behavior

self talk
process of talking to oneself as a way of guiding oneself through a task

mental imagery
individuals actively imagine going through the behaviors that lead to success in some
physical activity

decision making
the process of choosing a solution from available alternatives

rational choice paradigm


A deeply held perspective of decision making that that people should - and typically do
-- make decisions based on pure logic and rationality.

subjective expected utility


The probability (expectation) of satisfaction (utility) resulting from choosing a specific
alternative in a decision.

bounded rationality
Describes making decisions within the constraints of limited information and
alternatives.

implicit favourite
A preferred alternative that the decision maker uses repeatedly as a comparison with
other choices.

anchoring and adjustment heuristic


a decision making heuristic in which a presumption or first estimate serves as a
cognitive anchor. as we receive additional information, we make adjustments but tend to
remain in the proximity of the anchor.

availability heuristic
estimating the likelihood of events based on their availability in memory; if instances
come readily to mind, we presume such events are common.

representativeness heuristic
Basing the estimated probability of an event on how similar it is to the typical prototype
of that event.

satisficing
choosing a "good enough" alternative, rather than the alternative with the highest value

Intuition
the ability to understand something immediately, without the need for conscious
reasoning

scenario planning
the generation of multiple forecasts of future conditions followed by an analysis of how
to respond effectively to each of those conditions

escalation of commitment
the tendency to continue to support a failing course of action

prospect theory effect


the tendency to experience stronger negative emotions when losing something of value
than the positive emotions experienced when gaining something of equal value

creativity
the ability to produce novel and valuable ideas

divergent thinking
reframing a problem in a unique way and generating different approaches to the issue

employee involvement
The degree to which employees influence how their work is organized and carried out

Attitudes
Patterns of feelings and beliefs about other people, ideas, or objects that are based on
a person's past experiences, shape his or her future behavior, and are evaluative in
nature.

cognitive dissonance
An unpleasant state that arises when a person recognizes the inconsistency of his or
her actions, attitudes, or beliefs

emotional labour
When an employee expresses organizationally desired emotions during interpersonal
interactions., the effort, planning, and control needed to express organizationally
desired emotions during interpersonal transactions

emotional intelligence
ability to understand our own emotions and those of others, and to apply this
information to our daily lives

service profit chain model


A theory explaining how employee's job satisfaction influences company profitability
indirectly through service quality, customer loyalty, and related factors

continuance commitment
the perceived economic value of remaining with an organization compared with leaving
it

trust
Positive expectations one person has against another person or group in situations
involving risk

stress
the process by which we perceive and respond to certain events, called stressors, that
we appraise as threatening or challenging.

general adaptation syndrome


Hans Slye's concept of the body's adaptive response to stress in three stages--alarm,
resistance, exhaustion

job burnout
Depletion of physical/mental resources caused by excessive striving to reach an
unrealistic work-related goal.

stressors
Specific events or chronic pressures that place demands on a person or threaten the
person's well-being.

psychological harassment
repeated and hostile or unwanted conduct, verbal comments, actions or gestures that
affect an employee's dignity or psychological or physical integrity and that result in a
harmful work environment for the employee

sexual harassment
unwanted sexual attention, often from someone in power, that makes the victim feel
uncomfortable or threatened

workaholic
a person who is highly involved in work, feels compelled to work and has a low
enjoyment of work

Persistence
Continuing the effort for a certain amount of time.

5 Types of work related behavior


Task performance, Organizational citizenship, Counter-productive behavior,
Joining/staying with the organization, Maintaining work attendance

Schwartz's values circumplex


Openness to change - motivation toward inovative persuits, Conservation - motivation
toward maintaining status quo, Self-enhancement - motivated by self interest, Selftranscendance - motivated toward toward welfare of others and nature.

Values congruence
A situation where in two or more entities have similar value systems.

Individualism
The extent to which a person values independence and personal uniqueness

Power distance
The extent to which people accept unequal distribution of power in a society

Uncertainty avoidance
The degree to which people tolerate ambiguity or feel threatened by ambiguity and
uncertainty

Three ethical principles


Utilitarianism - greatest good for the greatest number of people, Individual rights everyone has entitlements that let them act a certain way, Distributive justice - receive
benefit or burden equal to others who are similar in relevant ways.

Moral intensity
The degree to which an issue demands the application of ethical principles

Ethical sensitivity
A personal characteristic that enables people to recognize the presence and determine
the relative importance of an ethical issue

Locus of control
internals believe in their efforts and abilities, externals believe events are mainly due to
external causes

Self contained personality


Sensitivity to situational cues and ability to adapt to it

Holland's 6 types (RIASEC)


Realistic; Investigative; Artistic; Social; Enterprising; Conventional

drive to acquire
drive to seek, take control, retain objects, and personal experiences

what is chapter 3 about?


perceptions

what is chapter 4 about?


employee stress, emotions, attitudes

What is chapter 5 about?


employee motivation

What is chapter 6 about


applied performance

What is chapter 7 about?


decision making/creativity

company mentioned in chapter3


firefighter

company mentioned in chapter4


jetblue employee

company mentioned in chapter5


DHL

company mentioned in chapter6


hilcorp energy

company mentioned in chapter7


jcp/apple

Three parts of a self concept


complexity, consistency, clarity

self concept: complexity


the number of different ways you see yourself

self concept: consistency

the degree to which your different selves use the same attributes

self concept: clarity


the degree to which you have a clear stable self concept

Three parts of self-verification


self esteem, self efficacy, locus of control

self esteem
how much you like your abilities

self efficacy
do you think you can complete the task?

confirmation bias
screening out information contrary to values/assumptions

Johari Window
goal of increasing open information, reducing unknown/blind/hidden

Johari Window: open area


you know, others know

Johari Window: blind area


you don't know, others know

Johari Window: hidden area


you know, others don't know

Chapter 1 study questions


Corporate Social Responsibility
Organizational activities intended to benefit society and the environment beyond
the firm's immediate financial interests or legal obligations.

Deep-Level Diversity

Differences in the psychological characteristics of employees, including


personalities, beliefs, values, and attitudes.

Ethics
The study of moral principles or values that determine whether actions are right or
wrong and outcomes are good or bad.

Evidence-Based Management
The practice of making decisions and taking actions based on research evidence.

Globalization
Economic, social, and cultural connectivity with people in other parts of the world.

High-Performance Work Practices


A perspective that holds that effective organizations incorporate several workplace
practices that leverage the potential of human capital.

Human Capital
The stock of knowledge, skills, and abilities among employees that provide
economic value to the organization.

Intellectual Capacity
A company's stock of knowledge, including human capital, structural capital, and
relationship capital.

Open Systems
A perspective that holds the organizations depend on the external environment for
resources, affect that environment through their output, and consist of internal
subsystems that transform inputs to outputs.

Organizational Behavior
The study of what people think, feel, and do in and around organizations.


Organizational Effectiveness
A broad concept represented by several perspectives, including the organization's
fit with the external environment, internal subsystems configuration for high
performance, emphasis on organizational learning, and an ability to satisfy the
needs of key stakeholders.

Organizational Efficiency
The amount of outputs relative to inputs in the organization's transformation
process.

Organizational Learning
A perspective that holds that organizational effectiveness depends on the
organization's capacity to acquire, share, use, and store valuable knowledge.

Organizations
Groups of people who work interdependently towards some purpose.

Relationship Capital
The value derived from an organization's relationships with customers, suppliers,
and other.

Stakeholders
Individuals, groups, and other entities that affect, or are affected by the
organization's objectives and actions.

Structural Capital
Knowledge embedded in an organization's systems and structures.

Surface-Level Diversity
The observable demographic or physiological differences in people, such as their
race, ethnicity, gender, age, and physical disabilities.

Values
Relatively stable, evaluative beliefs that guide a person's preferences for outcomes
or courses of action in a variety of situations.

Virtual Work
Work performed away from the traditional physical workplace, using information
technology.

Work-Life Balance
The degree to which a person minimizes conflict between work and non-work
demands.
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Chapter 2.
3 ethical principles
-utilitarianism
-individual rights
-distributive justice

3 types of values congruence


-person-organization
-espoused-enacted
-organization-community

5 Cross-cultural values
-Individualism
-Collectivism
-Power distance
-Uncertainty avoidance
-Achievement orientation

Ability
includes both the natural aptitudes and learned capabilities required to successfully
complete a task

Competencies
a person's characteristics that result in superior performance

Counterproductive work behaviors


voluntary behaviors that have the potential to directly or indirectly harm the
organization

Ethical sensitivity
personal characteristic that enables people to recognize the presence of an ethical
issue and determine the relative importance

Five Factor Model


Conscientiousness
Agreeableness
Neuroticism
Openness to experience
Extraversion

Moral intensity
degree to which an issue demands the application of ethical principles

Most popular personality test/theory


Jungian personality theory--measured through the Myers-Briggs Type Indicator

Motivation
forces within a person that affect his or her direction, intensity, and persistence of
voluntary behavior

Organizational citizenship behaviors


various forms of cooperation and helpfulness to others that support the org's social
and psychological context

Personality
relatively enduring pattern of thoughts, emotions, and behaviors that characterize a
person, along with the psychological processes behind those characteristics

Presenteeism
attending work when one's capacity to work is significantly diminished by illness,
fatigue, personal problems, etc.

Role perceptions
extent to which a person accurately understands the job duties assigned to or
expected of him or her
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