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MGMT 453
Exam 2 Flashcards
118
Management
Undergraduate 4
11/05/2016

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Term
Socialization
Definition
the process by which a person learns the values, norms, and required behaviors which permit him to participate as a member of the organization. (transition from outsider to insider)
Term
Three phases of socialization
Definition
1. anticipatory
2. encounter
3. change and acquisition
Term
Anticipatory Socialization (phase 1 of socialization)
Definition
learning that occurs prior to joining the organization

**anticipating realities about the job, how to apply skills and abilities, and the organization's needs and values**
Term
Encounter (phase 2 of socialization)
Definition
values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like

**managing work-life conflicts and intergroup role conflicts; seeking role definition and clarity; becoming familiar with task and work-group dynamics**
Term
Change and Acquisition (phase 3 of socialization)
Definition
requires employees to master tasks and roles and to adjust to work group values and norms

**competing role demands are resolved; critical tasks are mastered; group norms and values are internalized (person nails all interview questions... "but you should've seen their suit")**
Term
Socialization Tacts (definition and different types)
Definition
what are the different ways we can expose newcomers to our values so they can pick them up quicker (more efficiently)

1. collective vs. individual
2. formal vs. informal
3. sequential vs. random
4. serial vs. disjunctive
5. investiture vs. divestiture
Term
Collective vs. Individual
Definition
group newcomers together to expose them to a set of experiences or do it individually

collective = cohort (ex: police academy)
individual = singular person hired and trained independently
Term
Formal vs. Informal
Definition
segregating a newcomer from regular organizational members or mixing them in with others

formal = remain separate from older employees (ex: separate under/upperclassmen in boarding school)
Informal = mix you in with the veterans
Term
Sequential vs. Random
Definition
providing a timetable for the assumption of a role or leave it open-ended

sequential = fixed sequence of steps leading to the assumption of the role
random = there is an ambiguous or changing sequence
Term
Serial vs. Disjunctive
Definition
socialize newcomers using an experienced member, or do not use a role model

serial = making sure values are passed down from one individual to another (ex: mormon mission in South France)
disjunctive = no role models and newcomers are not following in footsteps of others (ex: women entering "man's work world")
Term
Investiture vs. Divestiture
Definition
affirming the newcomer's sense of self or denial and stripping away of the newcomer's existing sense of self and reconstructing it in the organization's image

investiture = "you are who you are" (ex: apple)
divestiture = strip away who you were previously, and build you as "their" type of person (ex: Buddhist monks, US military)
Term
Training
Definition
process whereby people acquire capabilities to perform jobs

1. required and regular training (ex: safety compliance, wage and hour rules, employee orientation, ethics, diversity)
2. job and technical (ex: customer service, welding, quality control)
3. interpersonal and problem solving (ex: communications, team building, conflict resolution)
4. developmental and career (ex: strategic thinking, leadership, change management)
Term
Training Design Steps
Definition
1. Conduct needs assessment
2. Ensure employees are prepared for training
3. Create a learning environment
4. Ensuring transfer of training
5. Select training methods
6. Evaluate training program
Term
Conduct Needs Assessment (Training Design Step)
Definition
1. organizational analysis = determine the appropriateness of training, given the organization's strategy, resources, and managerial support
2. person analysis = determine whether the performance deficiencies are due to lack in KSAs or lack in motivation or improper work design; then, identify who needs training
3. task analysis = identify tasks, knowledge, skills, and behaviors that need to be emphasized in training
Term
Ensure Employees are Prepared for Training (Training Design Step)
Definition
1. open-minded and motivated
2. self-efficacy = belief that one can learn the content of a training program
3. understand benefits of training
Term
Create a Learning Environment - 7 conditions (Training Design Step)
Definition
1. employees understand why they need training
2. content of training is meaningful to learner
3. there are opportunities to practice training
4. feedback is provided (ex: written, videotape)
5. share training experience with others
6. training is well-coordinated and administered
7. facilitate recall of training content after training
Term
Ensure Transfer of Training (Training Design Step)
Definition
make sure newly trained employees will have opportunity to use newly acquired skills on-the-job right away
Term
Select Training Methods
Definition
1. instructor-led classroom instruction
2. webcasts and webinars
3. hands-on training
4. on-the-job training
5. apprenticeship
6. simulation
7. business games and case studies
8. learning management system (LMS)
9. group or team training
10. six-sigma training
Term
On-the job training
Definition
employees learn the job by observation, understanding, and imitation
Term
Apprenticeship
Definition
both on-the-job and classroom training combined
Term
Simulation
Definition
represents a real-life situation
Term
Learning management system (LMS)
Definition
automates the administration, development, and delivery of a company's training program
Term
Group or team training
Definition
1. adventure learning = uses structured outdoors activities
2. team training
3. action learning = work on actual business problem
Term
Six-sigma training
Definition
provides employees with defect-reducing tools to cut costs; certifies employees as green belts, champions, or black belts
Term
Evaluate Training Program (Training Design Step)
Definition
1. cost-benefit analysis
2. benchmarking
3. measuring training effectiveness
Term
Cost-benefit Analysis
Definition
1. determine training costs (ex: trainer salary and time, materials, lost productivity)
2. identify potential savings results (increased production, reduced errors and accidents, reduced turnover)
3. compute potential savings
4. compare costs and savings and see if return meets threshold
Term
Benchmarking
Definition
gather data on training in your organization and compare it to other organizations in the same industry

1. post measure = measure performance after training (easiest but least accurate)
2. pre-/post measure = measure before and after training and compare results
3. pre-/post measure with a control group = measure before and after but one group doesn't receive training, then compare (most effective)
Term
Performance Management
Definition
the means through which managers ensure that employees' activities and outputs are congruent with the organization's goals

1. identify expected performance levels
2. encourage high levels of performance
3. measure individual performance then evaluate
4. provide feedback on individual performance
5. provide assistance as needed
6. reward or discipline depending on performance
Term
Management by Objectives (MBO) (Drucker, 1954)
Definition
technique for setting goals between managers and employees that is designed to motivate rather than control subordinates

1. jointly set objectives
2. develop action plan
3. periodically review performance
4. give performance appraisal and rewards, if any
Term
Criteria of Good Measures of Performance Management Systems
Definition
1. strategic congruence
2. validity
3. reliable
4. acceptability
5. specificity
Term
Strategic Congruence
Definition
the elicit job performance that is consistent with the organization's strategy, goals, and culture
Term
Validity
Definition
they measure all the relevant, and only the relevant, aspects of job performance
Term
Reliable
Definition
they are consistent across time and raters
Term
Acceptability
Definition
they are considered fair to employees who are rated by them

- procedural fairness = perceived fairness of the process and procedures used to make rating decisions
- interpersonal fairness = perceived fairness of the manner in which performance feedback is delivered to employees (treat employees with respect, even if they bug you)
- outcome fairness = outcomes of the evaluation, whether it be a rating, punishment, or reward, is fair (is the rating that you gave and the bonus attached to it fair?)
Term
Specificity
Definition
extent to which a performance measure gives detailed guidance to employees about what is expected of them and how they can meet these expectations

- specific guidance and specific feedback
- you should be able to point out where the deficiency comes from and why someone didn't get 100% on their performance review
Term
Three Types of Performance Information
Definition
Trait-based = focuses on character of the employee
Behavior-based = focuses on specific behaviors that lead to job performance
Results-based = considers employee accomplishments
Term
Trait-based Performance Info
Definition
this is the least useful performance info. It is based on attitude, teamwork, initiative, creativity and effective communication
Term
Behavior-based performance info
Definition
this focuses on specific behaviors such as customer satisfaction, verbal persuasion, timeliness of response, citizenship/ethics. more useful than trait-based
Term
Results-based performance info
Definition
focuses on sales volume, cost reduction, units produced, improved quality. this info is the most useful
Term
Sources of Performance Information
Definition
1. Managers
2. Peers
3. Subordinates
4. Self
5. Customers
6. 360-degree appraisal
Term
Managers (source of performance info)
Definition
1. managers should have a good understanding of how job relates to organizational success 2. managers are most motivated to increase employee performance
Term
Peers
Definition
1. good when supervisor rarely observes performance (i.e., police officer)
2. peers often have better understanding of job than supervisors
3. bad because of friendship bias
4. can be awkward
Term
Subordinates (i.e., upward feedback) (source of performance info)
Definition
1. subordinates understand best how well managers treat employees 2. can lead to managers emphasizing satisfaction over productivity 3. managers respond better when feedback is identified, but subordinates prefer anonymous feedback
Term
Self (perfomance information)
Definition
1. gives employees a more central role in the appraisal process 2. people have a tendency to inflate their ratings of themselves 3. remember, always keep a running list of your accomplishments
Term
Customer (source of performance info)
Definition
1. used in service industries 2. may increase customer commitment to company 3. can be expensive
Term
360-degree appraisal
Definition
includes evaluations from a wide range of persons who interact with the manager (all other sources of performance information)
Term
Rating Errors in Performance Measurement
Definition
1. similarity bias
2. recency and primacy effects
3. contrast error
4. distributional errors
5. halo error
6. appraisal politics
Term
Recency and Primacy Effects
Definition
Recency: rater gives greater weight to recent events
Primacy: rater gives greater weight to info received first
Term
Contrast Error
Definition
when we compare individuals with one another instead of against an objective standard
Term
Distributional Errors (rating errors)
Definition
tendency of rater to use only one part of the rating scale leniency strictness central tendency
Term
Leniency
Definition
rater assigns high ratings to all employees
Term
Strictness (rating error)
Definition
rater gives low ratings to all subordinates
Term
Central Tendency (rating error)
Definition
rater gives all subordinates ratings in a narrow band in the middle of the scale
Term
Halo Error
Definition
one positive performance aspect causes the rater to rate ignore all other aspects
Term
Appraisal Politics
Definition
evaluates purposefully distort ratings to achieve personal or company goals
Term
Correcting Rating Errors
Definition
Calibration meetings = meetings attended by managers in which employee performance ratings are discussed and evidence supporting the ratings is provided in order to reduce the influence of rating errors and politics on performance appraisals
Term
How Managers Should Deliver Performance Feedback
Definition
1. give feedback frequently -- not once per year
2. create the right setting for the discussion
3. ask the employee to rate his or her performance before the session
4. recognize good performance through praise
5. focus on solving problems, not punishment
6. minimize criticism
7. agree to specific goals and set a date to review progress
8. understand that subordinates will share their appraisals and rating with one another
Term
Employee Development
Definition
efforts to improve employees' abilities to handle a variety of assignments and to cultivate employees' capabilities beyond those required by the current job
Term
Three Phases of Employee Development
Definition
1. assessment phase
2. direction phase
3. development phase
Term
Assessment Phase
Definition
process to identify employee strength and weaknesses
- skill assessments, interest inventory, values clarification
- promotability forecast (managers make decisions regarding the advancement potential of subordinates)
- succession planning (focuses on preparing people to fill executive positions
Term
Direction Phase
Definition
determining the type of career that employees want and the steps they must take in order to realize their career goals

- individual career counseling (one-on-one sessions with the goal of helping employees examine their career aspirations)
- information services (job postings, skills inventories, career paths)
Term
Development Phase
Definition
1. mentoring
2. coaching
3. job rotation
4. tuition assistance programs/executive education
5. expatriate
Term
Coaching
Definition
ongoing, sometimes spontaneous meetings between managers and their employees to discuss career goals and development
Term
Job Rotation
Definition
assigns employees to various jobs so that they can acquire a wider base of skills
Term
Expatriate
Definition
employee sent by his/her company to manage operations in a different country (make sure you have a good repatriation plan)
Term
Mentoring
Definition
relationship in which experienced employees aid employees who are in earlier stages of their careers; can be formal or informal
Term
Mentoring Stages
Definition
1. initiation
2. cultivation
3. separation
4. redefinition
Term
Initiation (Mentoring Stage 1)
Definition
relationship is started; last 6-12 months
- for mentee: admiration and fantasy toward senior person; recognizes him or her as a source of guidance
- for mentor: sees someone with potential; mentor can transmit values to this person
Term
Cultivation (Mentoring Stage 2)
Definition
amount of assistance provided by mentor reaches its maximum; lasts 2-5 years
- for mentee: gets challenged and gains self-confidence and values
- for mentor: provides challenging work, coaching, visibility, protection, and sponsorship; pride in the mentee developing
Term
Separation (Mentoring Stage 3)
Definition
relationship is substantially altered by changes in the organizational context and/or by psychological changes within one or both individuals; lasts 6-12 months
- for mentee: experiences new independence and autonomy; at times has feelings of anxiety and loss
- for mentor: easier for them; begins to move away
Term
Redefinition (Mentoring Stage 4)
Definition
turns into friendship
- for mentee: on more equal footing; responds with gratitude for the early years
- for mentor: ability to relate in a peer-like fashion; continued support
Term
Types of Peer Mentoring (Kram & Isabella, 1985)
Definition
1. information peer
2. collegial peer
3. special peer
Term
Information Peer
Definition
low trust; mainly information-sharing
Term
Collegial Peer
Definition
2-4 of these typically; career strategizing; job-related feedback; friendship
Term
Special Peer
Definition
very close relationship; emotional support; personal feedback; friendship
Term
Employee Discipline
Definition
used to correct and mold the practices of employees to help them perform better
Term
Progressive Discipline
Definition
application of corrective measures by increasing degrees
- unofficial verbal warning; official written warning; written warning and threat of suspension; temporary suspension and last chance notice; termination

when applied properly: employees always know where they stand regarding offenses; know what improvement is expected of them; understand what will happen if improvement is not made
Term
Results of Inaction
Definition
few things de-motivate a work group faster than tolerating and retaining low performers
Term
Absenteeism
Definition
any failure by an employee to report for work as scheduled or to stay at work when scheduled
Term
Ways to Prevent Absenteeism
Definition
1. attendance reward programs
2. "no fault" policies --> reasons don't matter; no excused or unexcused; just absences
3. PTO programs --> vacation time, holidays, and sick time are combined into a PTO account
4. Unused leave buy-back
5. illness verification
6. disciplinary actions
Term
Employee Separation
Definition
termination of an employee's membership in an organization

- exit interview
- outplacement assistance
- termination meeting
Term
Exit Interview
Definition
an employee's final interview following separation. the purpose is to find out why the employee is leaving (if voluntary) and provide counseling and/or assistance in finding a new job
Term
Outplacement Assistance
Definition
a program in which companies help departing employees find jobs more rapidly by providing them with training in job search skills.
Term
Termination Meeting
Definition

- get to the point

- be straightforward and firm, yet tactful, and remain resolute in your decision

- make discussion private, businesslike, and fairly brief

- do not sugarcoat

- avoid making accusations or injecting personal opinion

- provide any severance info and status of benefits

- explain how you will handle employment inquiries from future employees looking to hire the person

Term
Layoffs
Definition
employees lose their jobs because a change in the company's environment or strategy forces it to reduce its workforce

- downsizing
- rightsizing
- worker adjustment and retraining notification act (WARN)
- survivor guilt
Term
Downsizing
Definition
reducing the size and scope of business in order to improve the company's financial performance
Term
Rightsizing
Definition
recognizing a company's employees to improve their efficiency
Term
Worker Adjustment and Retraining Notification Act (WARN)
Definition
a federal law requiring US employers with 100 or more employees to give 60 days' advance notice to employees who will be laid off as a result of a plant closing or a mass separation of 50 or more workers
Term
Survivor Guilt
Definition
survivors feel concern for their colleagues who were laid off, and wonder why they were spared
Term
Equity theory
Definition
Employees make comparisons between themselves and their coworkers in respect to inputs and outputs; when ratio is unequal, attempts are made to restore balance
Term
Inputs (Equity theory)
Definition
what YOU THINK you're putting into your job and what your coworkers are putting into their job
Term
Outcomes (Equity theory)
Definition
what YOU THINK you're getting out of your job and what your coworkers are getting out of their job
Term
Comparisons (Equity theory)
Definition
ratio of YOUR inputs and outputs compared to those of your coworkers
Term
Negative inequity & possible solutions for it
Definition
I perceive coworkers output:input ratio is GREATER than mine (better outcomes for similar inputs)
Possible solutions- ask for a raise, reduce my inputs, start stealing, fool myself to think ratios are equal
Term
Positive inequity & possible solutions for it
Definition
I perceive coworkers output:input ratio is LOWER than mine (lower outcomes for similar inputs)
Possible solutions- increasing inputs, fool myself to think ratios are equal
Term
Equity sensitivity
Definition

A personality trait that captures an individual's tolerance for negativey and positive equity

 

- benevolents

- sensitives

- entitleds 

Term
3 types of people regarding Equity sensitivity
Definition
Benevolents: higher tolerance for negative inequity

Sensitives: adhere to a strict norm of reciprocity and are highly motivated to restore positive and negative inequity

Entitled: expect to obtain greater output/input ratios than others and get upset when this is not the case
Term
Incentive Programs or Variable Pay Plans
Definition
compensation in addition to base salary.
- piecework
- merit pay
- commission
- profit sharing
- ownership
- gainsharing
- the balanced scorecard
Term
Piecework
Definition
employees receive a certain rate for each unit produced
Term
Merit Pay
Definition
annual pay increases are linked to individual performance appraisal ratings
- criticized because often, employees do not have control over their job outcomes
Term
Commission
Definition
compensation computed as a percentage of sales units or dollars

- used primarily in sales
- can create uncertainty because paycheck is unstable
- draw: amount advanced against, and repaid from, future commissions earned by the employee
Term
Profit-sharing
Definition
compensation plan in which payments are based on organizational profits
Term
Ownership
Definition
- stock options
- employee stock ownership plan (ESOP)
Term
Stock Options
Definition
gives employees opportunities to buy the company's stock at a previously fixed price
(allows employees to gain some benefits of taking part in the company, without taking on the burden of the risks)
Term
Employee Stock Ownership Plan (ESOP)
Definition
stock plans in which an organization contributes shares of its stock to an established trust for purposes of stock purchases by its employees
(good because they cause employees to be not "well-diversified")
Term
Gainsharing
Definition
compensation based on group or plant performance (not organizational performance)

- could also be team-based
- watch out for free-riders
Term
The Balanced Scorecard (Kaplan and Norton)
Definition
incentive pay based on four different indicators, rather than just one

1. customer satisfaction (how do customers see us)
2. internal processes (at what must we excel to meet customer expectations)
3. innovation and improvement activities (can we continue to improve and create value)
4. financial measures (how do we look to shareholders)
Term
Elements of Executive Compensation
Definition
- executive salaries
- supplemental benefits: benefits, such as corporate-owned life insurance, that are not available to other employees
- deferred compensation: to help with tax burden
- Perks (perquisites): special noncash benefits for executives, such as country club memberships or jet access, that often are not taxed as income
- annual and long-term incentives and bonuses
Term
Challenges with Pay for Performance (i.e., incentives)
Definition
- the "do only what you get paid for" syndrome
- unethical behaviors
- negative effects on the spirit of cooperation
- lack of control
- difficulties in measuring performance
- job dissatisfaction and stress
- potential reduction of intrinsic drive
- the credibility gap
Term
Pay secrecy
Definition
Policy prohibiting employees from talking about how much they make
Term
2 components of pay structure
Definition
Pay level: the average pay, including wages, salaries, and bonuses, of jobs in an organization

Job structure: relative worth of various jobs in the organization
Term
3 Ways to develop a pay structure
Definition
1. Market survey data (base pay on market surveys)
2. Point system (base pay on job eval points)
3. Pay grades (jobs of similar worth are grouped together)
Term
Range spread (pay grade)
Definition
distance between max and min amounts in a pay grade
Term
Broadbanding (pay grade)
Definition
using fewer pay grades with much broader ranges than in traditional compensation systems
Term
4 Accomplishments of Fair Labor Standards Act
Definition
Established minimum wage
Set minimum age for employment with unltd. hours at 16
Employees became classified as exempt(no OT) or nonexempt
OT pay is 1.5x regular pay rate for each hour over 40
Term
Benevolent (Equity Sensitivity)
Definition
have a higher tolerance for negative inequity
Term
Sensitives (equity sensitivity)
Definition
adhere to a strict norm of reciprocity and are highly motivated to restore positive and negative inequity
Term
Entitleds (equity sensitivity)
Definition
expect to obtain greater output/input ratios than others and get upset when this is not the case
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