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mgt exam 2
mgt ch 6
| Question | Answer |
|---|---|
| strategic positioning | Strategy that attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company |
| 3 key principles of strategic positioning | strategy is the creation of unique and valuable position, strategy requires trade-offs in competing, strategy involves creating a "fit" among activities |
| 3 sources of strategic positioning | few needs. many customers. broad needs, few customers, broad needs, many customers |
| 3 levels of strategy | corporate, business, functional |
| corporate level strategy | Focuses on the organization as a whole |
| business level strategy | Focuses on individual business units or product/service lines |
| functional level strategy | Plan of action by each functional area of the organization to support higher level strategies |
| 5 steps of strategic mgt process | 1. establish mission, vision, and values. 2. assess current reality. 3. formulate strategy and plans. 4. implement strategy and plans. 5. maintain strategic control |
| mission statement | org's purpose/reason for being |
| vision statement | what the org wants to become, where it wants to go strategically |
| values statement | what org stands for, core priorities, values employees embody, what its products contribute to the world |
| current reality assessment | Assessment to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization’s mission |
| strategy formulation | The process of choosing among different strategies and altering them to best fit the organization’s needs |
| 3 common grand strategies | growth, stability, defensive |
| strategy implementation | The implementation of strategic plans |
| strategic control | Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed |
| sustainable competitive advantage | Exists when other companies cannot duplicate the value delivered to customers |
| SWOT analysis | Also known as a situational analysis, the search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization |
| 2 parts of SWOT analysis | internal environment, external environment |
| org strengths | The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission |
| org weaknesses | The drawbacks that hinder an organization in executing strategies in pursuit of its mission |
| org opportunities | Environmental factors that the organization may exploit for competitive advantage |
| org threats | Environmental factors that hinder an organization’s achieving a competitive advantage |
| 6 societal forces | political, economic, social, technological, environmental, legal |
| political forces | tax policies, gov incentives, corruption, trade tariffs |
| economic forces | inflation, exchange rates, interest rates, unemployment |
| social forces | pop. demographics, cultural norms, career attitudes, lifestyle |
| technological forces | R&D, automation, interest infrastructure |
| environmental forces | climate, geographic resources, environmental policies |
| legal forces | employment laws, antitrust laws, intellectual property laws |
| VRIO | Is a framework for analyzing a resource of capability to determine its competitive strategic potential by answering four questions about its Value, Rarity, Imitability, and Organization |
| value | does resource or capability allow your firm to exploit an opportunity or neutralize a threat? if yes, firm is in competitive position. if no, firm is at competitive disadvantage |
| rarity | is resource or capability currently controlled by only a few firms or no firms? if yes, firm has temporary competitive advantage. if no, firm is at equal competitive advantage with other firms |
| imitability | is resource or capability costly for other firms to imitate? if yes, firm has definite competitive advantage. if no, firm has temporary competitive advantage |
| organization | is firm organized to exploit resource or capability? if yes, firm has competitive advantage. if no, firm only has temporary competitive advantage |
| forecast | A vision or projection of the future |
| trend analysis | A hypothetical extension of a past series of events into the future |
| example of trend analysis | time series forecast |
| time series forecast | predicts future data based on patterns of historical data. used to predict long term trends, cyclic patterns, seasonal variations |
| scenario analysis | The creation of alternative hypothetical but equally likely future conditions |
| benchmarking | A process by which a company compares its performance with that of high-performing organizations |
| growth strategy | One of three grand strategies, this strategy involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served |
| innovation strategy | Grows market share or profits by improving existing products and services or introducing new ones |
| stability strategy | One of three grand strategies, this strategy involves little or no significant change |
| defensive strategy | Also called retrenchment strategy, one of three grand strategies, this strategy involves reduction in the organization’s efforts |
| BCG matrix | A management strategy by which companies evaluate their strategic business units on the basis of (1) their business growth rates and (2) their share of the market |
| question marks | high market growth, low market share. invest cautiously. should be monitored closely |
| stars | high market growth, high market share. invest. demonstrate success in growing markets, generate more positive cash flows |
| dogs | low market growth, low market share. divest. should be shut down or sold |
| cash cows | low market growth, high market share. redirect profits. investing/milking profits from one or more successful but slow growing units |
| diversification | Strategy by which a company operates several businesses in order to spread the risk |
| related diversification | When a company purchases a new business that is related to the company’s existing business portfolio |
| unrelated diversification | Occurs when a company acquires another company in a completely unrelated businesses |
| vertical integration | Diversification strategy where a firm expands into businesses that provide the supplies it needs to make its products or that distribute and sells its products |
| porter's 5 competitive forces | business-level strategies originate in 5 competitive forces in the firm’s environment: threats of new entrants, bargaining power of suppliers, bargaining power of buyers, threats of substitute products or services, and rivalry among competitors |
| porter's 4 competitive strategies | Also called four generic strategies; (1) cost leadership, (2) differentiation, (3) cost-focus, and (4) focused-differentiation. The first two strategies focus on wide markets, the last two on narrow markets |
| cost leadership strategy | One of Porter’s four competitive strategies; keeping the costs, and hence prices, of a product or service below those of competitors and to target a wide market |
| differentiation strategy | One of Porter’s four competitive strategies; offering products or services that are of unique and superior value compared with those of competitors but to target a wide market |
| cost focus strategy | One of Porter’s four competitive strategies; keeping the costs, and hence prices, of a product or service below those of competitors and to target a narrow market |
| focused differentiation strategy | One of Porter’s four competitive strategies; offering products or services that are of unique and superior value compared to those of competitors and to target a narrow market |
| 5 questions for strategy development | what does playing field look like now? what has competition been up to? what have you been up to? what's around the corner? what's your winning move? |
| execution | Using questioning, analysis, and follow-through in order to mesh strategy with reality, align people with goals, and achieve the results promised. central part of company strategy |
| 3 core processes of business | people, strategy, operations |
| people | you need to consider who will benefit you in the future |
| strategy | you need to consider how success will be accomplished |
| operations | you need to consider what path will be followed |
| execution roadblocks | misaligned org culture. poor performance mgt leadership. conflicting functional objectives. employee resistance to change. |
| performance management | A set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations |
| why strategic thinking is important | requires you to be forward-looking & alert of opportunities that may arise. ability to see the big picture. pay attention to what's happening in business and society. have international perspective |
| how to develop strategic thinking | understand the business, broaden task-based functional knowledge |
| 2 kinds of decision making | rational and irrational |
| decision | A choice made from among available alternatives |
| decision making | The process of identifying and choosing alternative courses of action |
| rational model of decision making | Also called the classical model; the style of decision making that explains how managers should make decisions; it assumes that managers will make logical decisions that are the optimal means of furthering the organization’s best interests |
| 4 stages in rational decision making | 1. identify problem/opportunity. 2. think up alt solutions. 3. evaluate alts & select solution. 4. implement & evaluate solution chosen |
| where did rational model come from? | scottish economist adam smith's 1759 book titled the theory of moral sentiments |
| problems | Difficulties that inhibit the achievement of goals |
| opportunities | Situations that present possibilities for exceeding existing goals |
| diagnosis | Analyzing the underlying causes |
| improvements | how to change conditions from present to desirable |
| successful implementation considerations | plan carefully and be sensitive to those affected |
| if implemented decision doesn't work | give it more time, change it slightly, try another alternative, start over |
| nonrational models of decision making | Models of decision-making style that explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum |
| 2 nonrational models | satisficing & intuition |
| bounded reality | One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints |
| hubris | Extreme and inflated sense of pride, certainty, and confidence |
| satisficing model | One type of nonrational decision-making model; managers seek alternatives until they find one that is satisfactory, not optimal |
| intuition | Making a choice without the use of conscious thought or logical inference |
| who is more likely to use intuition? | those with high self esteem and risk propensity |
| intuition benefits | speed up decision making & help managers when resources are limited |
| ethics officers | Individuals trained in matters of ethics in the workplace, particularly about resolving ethical dilemmas |
| decision tree | Graph of decisions and their possible consequences, used to create a plan to reach a goal |
| evidence based decision making | The process of gathering and analyzing high-quality data to develop and implement a plan of action |
| descriptive analytics | Identifies trends and relationships within big data |
| machine learning | The process by which computers use algorithms and statistical models to detect patterns in data without being explicitly programmed |
| predictive analytics | Combines historical data with statistical models and machine learning to specify the likelihood of future outcomes |
| big data core characteristics (5 V's) | volume, variety, velocity, veracity, value |
| volume | Refers to the quantity of data and the storage capacity required to house it |
| variety | Different sources of data generated by humans or machines |
| velocity | The speed at which data accumulates |
| veracity | The degree to which data is of high quality and comes from a trustworthy source |
| value | The extent to which analyzing data produces insights that contribute to an organization’s effectiveness |
| what can big data help with? | meeting customer needs, improve HRM practices, enhancing production efficiency |
| autonomous devices | Collect data from situations to make calculations, define probabilities, and make reason-based decisions according to programmed goals |
| types of AI | automate (robotic AI), analyze (Biometric AI), advise (conversational AI), anticipate (algorithmic AI) |
| how can AI positively impact org performance? | match product supply with customer demand. customize pricing. proactively schedule maintenance |
| AI benefits | competitive advantage, enhanced decision making |
| AI drawbacks | implementation, data issues, costs |
| value orientation | reflects extent to which a person focuses on either task & technical concerns when making decisions |
| tolerance for ambiguity | indicates extent people have a high need for structure or control in their lives. need for structure is low tolerance & no need is high |
| 4 styles of decision making | analytical, conceptual, directive, behavioral |
| directive style | low tolerance for ambiguity, action-oriented in decision making. they are efficient, logical, practical, & systematic in their approach. they like to focus on facts |
| analytical style | have high tolerance of ambiguity and respond well to new or uncertain decisions. they are careful decision makers who like to consider more info & alternatives |
| conceptual style | high tolerance for ambiguity & focus on people or social aspects of work situation. take a broad perspective to problem solving & consider many options. adopt long-term perspective & rely on intuition & discussion. willing to take risks, find solutions |
| behavioral style | most people oriented. work well with others, enjoy social interactions. supportive, positive, show warmth, prefer verbal to written communication |
| how to know your decision making style | know yourself, influence others, deal with conflict |
| heuristics | Strategies that simplify the process of making decisions |
| 10 common decision making biases/heuristics | availability, representativeness, confirmation, sunk cost, anchoring & adjustment, overconfidence, hindsight, framing, escalation of commitment, categorical thinking |
| availability bias | The use of information readily available from memory to make judgments |
| representative bias | The tendency to generalize from a small sample or a single event |
| confirmation bias | Biased way of thinking in which people seek information to support their point of view and discount data that do not support it |
| sunk cost bias | Way of thinking in which managers add up all the money already spent on a project and conclude it is too costly to simply abandon it; also called the sunk-cost fallacy |
| anchoring & adjustment bias | The tendency to make decisions based on an initial figure |
| overconfidence bias | Bias in which people’s subjective confidence in their decision making is greater than their objective accuracy |
| ppl prone to overconfidence bias are more likely to: | take credit for good outcomes & deflect bad outcomes. have overtly positive memories of their past performance. presume they have more control of the outcome than they actually do. |
| hindsight bias | The tendency of people to view events as being more predictable than they really are. the "i knew it all along" effect occurs when we look back on a decision and try to reconstruct why we decided to do something |
| framing bias | The tendency of decision makers to be influenced by the way a situation or problem is presented to them |
| escalation of commitment bias | When decision makers increase their commitment to a project despite negative information about it |
| categorical thinking bias | Tendency of decision makers to classify people or information based on observed or inferred characteristics |
| 3 ways to counter categorical thinking bias | be curious. look for & appreciate individual differences. question your assumptions |
| group decision making advantages | knowedge diversity, different perspectives, info accumulation, better understanding of decision rationale, deeper commitment to decision |
| group decision making disadvantages | few people dominate, groupthink, satisficing, goal displacement |
| sham participation | Occurs when powerless but useful individuals are selected by leaders to rubber stamp decisions and work hard to implement them |
| groupthink | A cohesive group’s blind unwillingness to consider alternatives. This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation |
| goal displacement | The primary goal is subsumed to a secondary goal |
| group decision making characteristics | less efficient, size affects decision quality, they may be too confident, knowledge counts |
| minority dissent | Dissent that occurs when a minority in a group publicly opposes the beliefs, attitudes, ideas, procedures, or policies assumed by the majority of the group |
| consensus | General agreement; group solidarity |
| do's & don't's for achieving consensus | do use active listening skills, involve everyone, seek out reasons behind arguments, dig for facts. don't: avoid log rolling and horse trading |
| more group problem solving techniques | brainstorming, devil's advocacy, dialectic method, after action reviews |
| brainstorming | Technique used to help groups generate multiple ideas and alternatives for solving problems; individuals in a group meet and review a problem to be solved, then silently generate ideas, which are collected and later analyzed |
| electronic brainstorming | Technique in which members of a group come together over a computer network to generate ideas and alternatives |
| devil's advocacy | 1 person is assigned role of devil's advocate to uncover and air all possible objections to the person's canonization. role of critic |
| dialectic method | identifying a truth (thesis) by exploring opposite positions (antithesis) |
| after action review | A review of recent decisions in order to identify possible future improvements |
| 4 questions for after action review | what did we intend to achieve? what actually happened? what contributed to or detracted from achieving the intended objective? what should we do differently to improve or keep doing to repeat our success? |
| benefits of after action reviews | process improvement, boosting team cohesiveness, closure, improving morale |
| how to improve critical thinking & problem solving skills | reflect on past experiences & using a decision methodology |
| corporate/org culture | Set of shared taken for granted implicit assumptions that group holds and that determines how it perceives, thinks about, and reacts to its various environments. |
| org structure | A formal system of task and reporting relationships that coordinates and motivates an organization’s members so that they can work together to achieve the organization’s goals |
| hr practices | Consist of all of the activities an organization uses to manage its human capital, including staffing, appraising, training and development, and compensation |
| true/false: leadership crates alignment among culture, structure, & hr practices | true |
| 3 levels of org culture | observable artifacts, espoused values, basic assumptions |
| observable artifacts | physical maifestations such as manner of dress, awards, myths, stories about the company, rituals & ceremonies, decorations, as well as visible behavior exhibited by managers & employees |
| espoused values | Explicitly stated values and norms preferred by an organization |
| enacted values | Values and norms actually exhibited in the organization |
| basic assumptions | represent the unobservable yet core values of an org's culture that are often taken for granted |
| symbol | An object, act, quality, or event that conveys meaning to others |
| story | A narrative based on true events, which is repeated—and sometimes embellished upon—to emphasize a particular value |
| hero | A person whose accomplishments embody the values of the organization |
| rites & rituals | The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in an organization’s life |
| org socialization | The process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization |
| 3 phases of org socialization | anticipatory socialization phase, encounter phase, change & acquisition phase |
| 4 types of org culture | clan, adhocracy, market, hierarchy |
| clan | Type of organizational culture that has an internal focus and values flexibility rather than stability and control |
| adhocracy | Type of organizational culture that has an external focus and values flexibility |
| market | Type of organizational culture that has a strong external focus and values stability and control |
| hierarchy | Type of organizational culture that has an internal focus and values stability and control over flexibility |
| person-org fit (PO fit) | The extent to which your personality and values match the climate and culture of an organization |
| org PO job interview guidelines | know org culture, identify which parts of culture drive org performance, use the right assessment tools |
| 3 step process for PO job candidates | know yourself, know the business, compare your values with the org's |
| 12 ways a culture becomes established into org | formal stmts, slogans & sayings, rites & rituals, stories, legends, myths, leader reaction, role modeling, training, coaching, physical design, rewards, titles, promos, bonuses, performance criteria, measurable activities, org structure & procedure |
| how P-O fit relates to org culture change | poor PO fit has high employee turnover. high PO fit are resistant to change |
| organization | A group of people who work together to achieve some specific purpose. A system of consciously coordinated activities of two or more people |
| major features of orgs | common purpose, coordinated effort, division of labor, hierarchy of authority |
| common purpose | A goal that unifies employees or members and gives everyone an understanding of the organization’s reason for being |
| coordinated effort | The coordination of individual efforts into a group or organization-wide effort |
| division of labor | Also known as work specialization; arrangement of having discrete parts of a task done by different people. The work is divided into particular tasks assigned to particular workers |
| hierarchy of authority | Also known as chain of command; a control mechanism for making sure the right people do the right things at the right time |
| flat org | Organizational structure with few or no levels of middle management between top managers and those reporting to them |
| unity of command | Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands |
| span of control | The number of people reporting directly to a given manager |
| narrow span of control | manager has limited number of ppl reporting. tall org, many levels with narrow span of control |
| wide span of control | several ppl reporting. flat org, few levels with wide span of control |
| authority | The right to perform or command; also, the rights inherent in a managerial position to make decisions, give orders, and utilize resources |
| accountability | Describes expectation that managers must report and justify work results to the managers above them |
| responsibility | The obligation one has to perform the assigned tasks |
| delegation | The process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy |
| centralized authority | Organizational structure in which important decisions are made by upper managers—power is concentrated at the top |
| advantages of centralized authority | less duplication of work since less employees perform same task. increased efficiencies because procedures are uniform and easier to control |
| decentralized authority | Organizational structure in which important decisions are made by middle-level and supervisory-level managers—power is delegated throughout the organization |
| advantages of decentralized authority | managers are encouraged to solve their own problems rather than escalate them. decisions are made more quickly |
| org chart | Box-and-lines illustration of the formal relationships of positions of authority and the organization’s official positions or work specializations |
| vertical hierarchy | chain of command |
| horizontal specialization | who specializes in what work |
| organizational design | Creating the optimal structures of accountability and responsibility that an organization uses to execute its strategies |
| 3 categories of organizational design | traditional, horizontal, open boundaries |
| types of traditional design | simple, functional, divisional, matrix |
| simple structure | The first type of organizational structure, whereby an organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization. ex, admin assistant reports to owner |
| functional structure | The second type of organizational structure, whereby people with similar occupational specialties are put together in formal groups. ex. VPs report to president |
| divisional structure | The third type of organizational structure, whereby people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions |
| product divisions | Divisional structures in which activities are grouped around similar products or services |
| customer divisions | Divisional structures in which activities are grouped around common customers or clients |
| geographic divisions | Divisional structures in which activities are grouped around defined regional locations |
| matrix structure | Fourth type of organizational structure, which combines functional and divisional chains of command in a grid so that there are two command structures vertical and horizontal |
| horizontal structure | Also called a team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries |
| boundaryless organization | A fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; the collaborators may include competitors, suppliers, and customers |
| hollow structure | Often called network structure, structure in which the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster |
| modular structure | Seventh type of organizational structure, in which a firm assembles product chunks, or modules, provided by outside contractors |
| virtual structure | An organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections |
| how to be more adaptable | focus on being optimistic, display proactive learning orientation, be more resourceful, take ownership & accept responsibility, expand perspective by asking different questions |
| HRM | The activities managers perform to plan for, attract, develop, and retain a workforce |
| types of HR practices | employee recruitment, compensation, onboarding, performance mgt |
| strategic HRM | The process of designing and implementing systems of policies and practices that align an organization’s human capital with its strategic objectives |
| internal fit | exists when HR policies & practices reinforce one another and work together |
| external fit | exists when HR system aligns with its culture & structure in a way that supports firm level strategy |
| human capital | Economic or productive potential of employee knowledge, experience, and actions |
| social capital | Economic or productive potential of strong, trusting, and cooperative relationships |
| 3 important strategic HRM questions to ask | what human & social capital does firm have & how do we best leverage it? what capital does the firm need to get where it wants to go? how does firm acquire the capital it lacks? |
| talent mgt | Approach to strategic HRM that matches high-potential employees with an organization’s most strategically valuable positions |
| 3 impacts of talent mgt | attitudes, behaviors, cognitions |
| attitudes | workers singled out as stars experience increased job satisfaction, engagement, & commitment to org |
| behaviors | workers identified as high potential respond with greater effort, job performance, & lower turnover |
| cognitions | workers respond to orgs elevated perceptions with higher self efficacy & increased fulfillment |
| high performance work system (HPWS) | Approach to strategic HRM deploys bundles of internally consistent HR practices in order to improve employee ability, motivation, and opportunities across the entire organization |
| recruiting | The process of locating and attracting qualified applicants for jobs open in the organization |
| 3 recruitment approaches | internal, external, hybrid |
| internal recruiting | Hiring from the inside, or making people already employed by the organization aware of job openings |
| techniques for internal recruiting | job postings, informal nominations, employee profiles |
| talent marketplaces | Digital platforms that use AI to match existing employees with job openings, training opportunities, and mentoring relationships |
| external recruiting | Attracting job applicants from outside the organization |
| external recruitment sources | social media, online postings, school partnerships |
| employee referrals | Tap into existing employees’ social networks to fill open positions with outside applicants |
| boomerangs | Former employees who return to the organization |
| person job fit (PJ fit) | The extent to which a worker’s competencies and needs match with a specific job |
| selection process | The screening of job applicants to hire the best candidate |
| legal defensibility | The extent to which the selection device measures job-related criteria in a way that is free from bias |
| reliability | Degree to which a test measures the same thing consistently, so that an individual’s score remains about the same over time, assuming the characteristics being measured also remain the same |
| validity | Extent to which a test measures what it purports to measure and extent to which it is free of bias |
| background info | app forms, resumes, background checks |
| 3 problems with background info | app forms & resumes are susceptible to dishonesty, don't always provide useful info. checks can lead to discrimination |
| types of interviews | unstructured, structured, behavioral-description |
| unstructured interview | Interviews in which the interviewer asks probing questions to find out what the applicant is like |
| structured interview | Interviews in which the interviewer asks each applicant the same questions and then compares the responses to a standardized set of answers |
| situational interview | A structured interview in which the interviewer focuses on hypothetical situations |
| behavioral description interview | Type of structured interview in which the interviewer explores what applicants have done in the past |
| employment tests | Standardized devices organizations use to measure specific skills, abilities, traits, and other tendencies |
| types of employment tests | ability, performance, integrity, drug & alcohol, criminal & financial checks |
| assessment center | Company department where management candidates participate in activities for a few days while being assessed by evaluators |
| compensation | Payment comprising three parts: wages or salaries, incentives, and benefits |
| base pay | Consists of the basic wage or salary paid employees in exchange for doing their jobs |
| types of incentives | commissions, bonuses, profit sharing plans, stock options |
| fringe benefits | Additional nonmonetary forms of compensation |
| onboarding | Programs that help employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, culture, and politics by clarifying work-role expectations and responsibilities |
| outboarding best practices | involve a team, clarify expectations, put pieces together, give it time |
| learning & development steps | assessment, objectives, selection, implementation, evaluation |
| assessment | determine the needs or skill gaps that need improvement |
| objectives | identify learning goals that reduce skill gaps |
| selection | develop learning & development materials to be used in achieving goals |
| implementation | execute learning & development programs |
| evaluation | evaluate implemented programs |
| performance mgt | A set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations |
| 4 steps of performance mgt | define performance, monitor & evaluate performance, review performance, provide consequences |
| define performance | set goals & communicate performance expectations |
| monitor & evaluate performance | measure & evaluate progress & outcomes |
| review performance | deliver feedback & coaching |
| provide consequences | administer valued rewards & appropriate punishment |
| performance appraisal | A management process that consists of (1) assessing an employee’s performance and (2) providing him or her with feedback; also called a performance review |
| appraisal feedback | frequent feedback is best & should be future-oriented |
| 2 kinds of performance appraisal | objective & subjective |
| objective appraisal | Also called results appraisals; performance evaluations that are based on facts and that are often numerical |
| 2 good reasons for objective appraisal | measure desired results & harder to challenge legally |
| subjective appraisals | Performance evaluations based on a manager’s perceptions of an employee’s traits or behaviors |
| trait appraisals | ratings of attributes such as attitude, initiative, leadership |
| behavior appraisals | measure specific, observable aspects of performance |
| behaviorally anchored rating scale | Employee gradations in performance rated according to scales of specific behaviors |
| who should make performance appraisals? | peers & subordinates, customers/clients, self |
| 360 degree assessment/feedback appraisal | A performance appraisal in which employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients |
| best practices for 360 assessments | keep it developmental, more isn't always better, remember to reduce bias |
| forced ranking performance review systems | Performance review systems whereby all employees within a business unit are ranked against one another, and grades are distributed along some sort of bell curve, like students being graded in a college course |
| effective performance feedback | take a problem solving approach, avoid criticism, treat employees with respect. be specific & direct in describing employee's current performance & in identifying the improvement you desire. get employee's input. follow up |
| transfer | Movement of an employee to a different job with similar responsibility |
| 4 reasons managers transfer employees | solve org problems by deploying skills at another location. broadening experience by assigning them to a different position. retain interests & motivation by presenting them with new challenges. solve employee problems like personal conflicts with coworke |
| performance improvement plans (PIP) | Formal policies of progressive discipline that outline employee performance problems, routes to and timelines for improvement, and consequences for not meeting plan objectives |
| 3 tips for managing demotion | base demotion decisions on unbiased well documented evidence. communicate org's desire to retain employee. be honest about performance-related issues that led to demotion |
| types of dismissals | layoffs, downsizing, firings |
| exit interview | A formal conversation between a manager and a departing employee to find out why he or she is leaving and to learn about potential problems in the organization |
| Nondisparagement agreement | Is a contract between two parties that prohibits one party from criticizing the other; it is often used in severance agreements to prohibit former employees from criticizing their former employers |
| employment at will | Governing principle of employment in the great majority of states, that anyone can be dismissed at any time for any reason at all—or for no reason |
| national labor relations board | Legislated in 1935, U.S. commission that enforces procedures whereby employees may vote to have a union and for collective bargaining |
| collective bargaining | Negotiations between management and employees regarding disputes over compensation, benefits, working conditions, and job security |
| social security act of 1935 | Established the U.S. retirement system |
| fair labor standards act | Legislation passed in 1938 that established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage |
| equal employment opportunity commission | U.S. panel whose job it is to enforce anti-discrimination and other employment related laws |
| workplace discrimination | Type of discrimination that occurs when people are hired or promoted—or denied hiring or promotion—for reasons not relevant to the job |
| adverse impact | Effect an organization has when it uses an employment practice or procedure that results in unfavorable outcomes to a protected class (such as Hispanics) over another group of people (such as non-Hispanic whites) |
| disparate treatment | Results when employees from protected groups (such as disabled individuals) are intentionally treated differently |
| affirmative action | The focus on achieving equality of opportunity |
| sexual harrassment | Unwanted sexual attention that creates an adverse work environment |
| 2 types of sexual harrassment | quid pro quo & hostile environment |
| quid pro quo harrassment | unwanted sexual attention is told, implicitly or explicitly. must receive gratification to get a job |
| what managers can do to prevent harrassment | institute effective policy. establish formal complaint procedure. train supervisors. investigate promptly & without bias |
| bullying | Repeated mistreatment of one or more persons by one or more perpetrators. It’s abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating |
| labor unions | Organizations of employees formed to protect and advance their members’ interests by bargaining with management over job-related issues |
| union security clause | Part of a labor–management agreement that states that employees who receive union benefits must join the union, or at least pay dues to it |
| right to work laws | Statutes that prohibit employees from being required to join a union as a condition of employment |
| 2 tier wage contracts | Contracts in which new employees are paid less or receive lesser benefits than veteran employees have |
| cost of living adjustment cause | Clause in a union contract that ties future wage increases to increases in the cost of living |
| givebacks | Negotiation tactic in which the union agrees to give up previous wage or benefit gains in return for something else |
| grievance | Complaint by an employee that management has violated the terms of the labor–management agreement |
| mediation | The process in which a neutral third party, a mediator, listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution |
| arbitration | The process in which a neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties have agreed will be binding on them |
| issues unions & mgt negotiate about | compensation, employee benefits, job security, work rules, hours, safety matters |
| types of mgt dispute resolutions | grievance, mediation, arbitration |
| steps to become better receiver | identify your tendencies. learn to listen. try self compassion instead of defensiveness. ask for feedback. practice mindfulness |
| defensiveness | Occurs when people perceive they are being attacked or threatened |
| self compassion | Tendency to be understanding, kind, and warm toward yourself in the process of pain or failure, instead of being self-critical or over-identifying with negative emotions |
| psychological capital | Positive state of psychological development that is characterized by high levels of hope, resiliency, optimism, and self-efficacy |
Created by:
rachelrobinson