Chapter 1: Foundations of Management

1. What is an organization?
A deliberate arrangement of people assembled to accomplish some specific purpose (that individuals independently
could not alone accomplish).
2. What are the three common characteristics of organizations?
Distinct purpose; deliberate structure; people.
3. What is the rule of 1/8?
1/2 of organizations wont believe the connection between how they manage their people and the profits they earn. 1/2
of those who do see the connection will do what many organizations have done -- try to make a single change to solve
their problems, not realizing that the effective management of people requires a more comprehensive and systematic
approach. Of the firms that make comprehensive changes, probably only 1/2 will persist with their practices long
enough to actually derive economic benefits. Since times times equals 1/8, at best 12 percent of organizations
will actually do what is required to build profits by putting people first.
4. What is management?
Management involves coordinating and overseeing the work activities of others so that their activities are completed
efficiently and effectively.
5. What is the difference between efficiency and effectiveness?
Efficiency refers to getting the most output from the least amount of inputs or resources.
Effectiveness is often described as doing the right things, doing those work activities that will result in achieving the
goal.
6. What are the four management functions?
Planning: Defining goals, establishing strategies to achieve goals and developing plans to integrate and coordinate
activities.
Organizing: Arranging and structuring work to accomplish goals.
Leading: Working with and through people to accomplish goals.
Controlling: Monitoring, comparing and correcting work to ensure theyre accomplished.
7. What types of skills do managers need?
Technical skill: Knowledge and proficiency in a specific field, tend to be more important for first-line managers.
Human skill: The abilities to work well with other people both individually and in a group, equally important for all
first-line, middle, and top managers.
Conceptual skill: The abilities to think and conceptualize about abstract and complex situations concerning the
organization, tend to be more important for top managers.

Chapter 2: History of Management

8. How is Adam Smiths work relevant to management?
The economic advantages that organizations and society would gain from the division of labor (job specialization),
breaking down jobs into narrow and repetitive tasks.
9. How is the industrial revolution relevant to management?
Substituted machine power for human power, and created large organizations in need of management.
10. What is the emphasis of the classical approaches of management? What are the two most influential classical
approaches?
The first studies of management, which emphasized rationality and making organizations and workers as efficient as
possible.
Two approaches: Scientific Management, General Administrative Theory.

11. What is bureaucracy?

An ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and
regulations and impersonal relationship.
12. What is the focus of the quantitative approach of management?
The use of quantitative techniques to improve decision making. Evolved from mathematical and statistical solutions
developed from military problem during WW II. Computer simulations of management activities.
13. How did the Hawthorne Studies impact management beliefs about the role of people in organizations?
A series of studies during 1920s to 1930s that provide new insights into individual and group behaviors, and concluded
that (1. Peoples behavior and attitudes are closely related; 2. Group factors significantly affect individual behaviors; 3.
Group standards establish individual worker output; 4. Money is lee a factor in determining output than group standards,
group attitudes and security; 5. The intensity of illumination was not related to productivity, but the interest in
employees were). These conclusions led to a new emphasis on the human behavior factor in the management of
organizations.
14. What is the system approach of management?
A set pf interrelated and interdependent parts arranged in a manner that produces a unified whole.
Close systems: are not influenced by and do not interact with their environment.
Open systems: dynamically interact to their environments by taking in inputs and transforming them into outputs that
are distributed into their environments.
Remark 1: Coordination of the organizations parts is essential for proper functioning of the entire organization.
Remark 2: The key to performance is to have a good process.
Remark 3: Organizations are not self-contained and therefore must adapt to changes in their external environments.
15. What is the contingency approach of management?
Organizations are individually different, face different situations (contingency variables), and require different ways of
managing. There is no one universally applicable set of management principles by which to manage organizations.

Chapter 3: Individual Attitudes and Behaviors

16. What is organizational behavior?
The study of the actions of people at work.
17. What is job performance?
The value of the set of employee behaviors that contributes, either positively or negatively, to the organizational goal
accomplishment.
18. What is task performance? What are the three major types of task performance?
Employee behaviors that are directly involved in the transformation of organizational resources into the goods or
services that the organization produces.
Routine performance: well-known response to demands that occur in a normal routine, or otherwise predictable way.
Adaptive performance: employee response to tasks demands that are novel, unusual, or at least unpredictable.
Creative performance: degree to which individuals develop ideas or physical outcomes that are both novel and useful
19. What is organizational citizenship behavior? Does it matter for the organization?
Discretionary behavior that is not part of an employees formal job, requirement, but which promotes the effectiveness
of the organization.
Higher levels of citizenship behaviors are associated with higher levels of output, revenue, efficiency, customer
satisfaction, performance quality, less waste, and fewer customer complaints.
20. What is counterproductive behavior? How do counterproductive behaviors relate to task performance and
citizenship behavior?
Any intentional employee behavior that is potentially damaging to the organization or to individuals within the org.
Strong negative correlation with citizenship behavior; only weak negative correlation with task performance.

21. What is organizational commitment? What are the three types of organizational commitment?
The degree to which an employee identifies with a particular organization and its goal, and wishes to maintain
membership in that organization.
Affective commitment: a desire on the part of an employee to remain a member of organization because of an emotional
attachment to or involvement in that organization.
Continuance commitment: a desire on the part of an employee to remain a member of organization because of an
awareness of the costs associated with leaving it.
Normative commitment: a desire on the part of an employee to remain a member of organization because of a feeling of
obligation.
22. What is job satisfaction? What makes people satisfied at work?
A pleasurable emotional state resulting from the appraisal of ones job or job experiences.
Based on both cognition (calculated opinion of your job), and affect (emotional reactions to your job).
Increasing degree of impacts on job satisfaction: pay, promotion, supervision, coworkers, work itself.

Chapter 4: Motivation
23. What is motivation? What are the three key dimensions of motivation?
Motivation is the process by which a persons efforts are directed, energized, and sustained toward attaining a goal.
Direction: the choice of specific actions in specific circumstances. What you choose.
Intensity: the magnitude of mental activities or physical efforts expended towards a certain action. How hard you work.
Persistence: the extension of the mental activity and physical effort over time. How long you work at it.
24. What does Maslows Hierarchy of Needs say about human motivation?
Maslows theory that human needs physiological, safety, social, esteem, and self-actualization from a sort of a
hierarchy structure. Maslow argued that each level in the needs hierarchy must be substantially satisfied before the next
need becomes dominant. An individual moves up the needs hierarchy from one to next.
In addition, Maslow separated the five needs into higher and lower levels: physiological, safety are lower, and social,
esteem, self-actualization are higher. Lower level needs are predominantly satisfied externally while higher level needs
are satisfied internally.
25. What are McGregors Theory X and Theory Y?
Theory X: a negative view of people that assumes workers have little ambitions, dislike working, want to avoid
responsibility, and need to be closely controlled to work effectively.
Theory Y: a positive view of people that assumes employees enjoy working, seek out and accept responsibility and
exercise self-direction.
Result in different answers to what motivate people.
McGreror believed that Theory Y should guide the management practice and proposed that participation in decision
making, responsible and challenging jobs and good group relations would maximize employee motivation.
26. According to Herzbergs Two-Factor Theory, what is the difference between motivators and hygiene factors?
Hygiene factors are necessary conditions to achieve a state of neutrality and address the question why work here
Motivators are the primary causes of motivation and address the question why work harder
27. What are the three basic human needs identified by David McClelland?
Need for achievement: the drive to succeed and excel in relation to a set of standards
Need for affiliation: the desire for approval from others, as a result, conforming to their wishes and expectations and
avoiding conflicts
Need for power: a desire to exercise authority over people and resources.
Remark: No hierarchy structure, all three can be achieved spontaneously, only give ways to motivate, not mention
which one is better, different people may need one thing more than others.

28. What are the five core job dimensions described in the Job Characteristics Model?
Skill variety: the degree to which a job require a variety of activities so that an employee can use a number of different
skills and talents.
Task Identity: the degree to which a job requires completion of a whole and identifiable piece of work (whether I can
identify the part of mine).
Task significance: the degree to which a job has a substantial impact on the lives or work of other people.
Autonomy: the degree to which a job provides substantial freedom, independence, and discretion to individual in
scheduling the work and determining the procedures to be used.
Feedback : the degree to which doing work activities required by a job results in an individual obtaining direct and clear
information about the effectiveness of his work.
29. What does the Reinforcement Theory suggest about human motivation?
The theory that behavior is a function of its consequences, those consequences immediately following a behavior which
increase the probability that the behavior will be repeated, which is the most direct method by giving what people want
to motivate. Works by increasing the frequency of certain behavior: Increase behavior by positive reinforcement or
removal of punishment, eliminate behavior by negative reinforcement or increase punishment.
30. What does the Expectancy Theory suggest about human motivation?
The theory that individual tends to act in a certain way based on the expectation that the act will be followed by given
outcome and on the attractiveness of that outcome to the individual. Motivation is zero if any one of expectancy,
instrumentality or valence is zero, the companies must ensure outcome is given if efforts are put, outcome can be given,
and outcome are what people want.
31. What is expectancy? What hinders expectancy and what can companies do?
Expectancy refers to if I exert a lot of effort, would I perform well?
Hindered by: low self-efficacy, lack of skill or abilities, and lack of resources.
Companies can counsel and coach, give positive feedback.
32. What is self-efficacy? What are the common sources of ones self-efficacy?
The belief that a person has the capabilities needed to execute the behaviors required for task success.
Sources: past accomplishment, various experiences, verbal persuasion, emotional cues.
33. What is instrumentality? What hinders instrumentality and what can companies do?
The confidence of the employees in the organization, if I perform well, would I receive outcome?
Hindered by: inaccurate measures of performance, inadequate budget, outcomes are not tied to performance.
Companies can establish performance-based reward system, and communicate the system to employees through
examples, anecdotes, and public recognition to ensure they understand the system.
34. What is valence? What determines valence and what can companies do?
Whether the outcomes can satisfy the employees.
Determinations: universal needs hierarchy, individual needs, and social/cultural background.
Companies can develop more individualized reward system, and identify performance outcomes that have negative
valences (e.g. peer pressure)
35. What does Equity Theory suggests about employee motivation?
Motivation is maximized when an employees ratio of outcome to input matches those of some comparison others.
Acknowledges that motivation doesnt just depend on your own belief and circumstances but also on the outcomes
received by other employees.

36. What is underreward inequity? What emotions do employee s experience and how can equity be restored?
Sign changes from = to <; feel sad, angry or envy.
Method of restoring: either top or bottom of your equation.
Top: increase outcomes by 1. Negotiation, 2 steal from company (counterproductive behavior)
Bottom: shrink inputs by lowering intensity and persistence of efforts.

37. What is overreward inequity? What emotions do employee s experience and how can equity be restored?
Sign changes from = to >; feel happy but may also be guilty, and anxiety mostly caused by social exclusion.
Method of restoration: 1 shrink your outcome (free dinner), 2 increase your input by A. behaviorally: increase your
intensity and persistence; B. cognitively: re-evaluate your input to decide your inputs are greater than youre given
credit at this point.
38. What is justice? What are the four dimensions of justice in organizations?
Perceived fairness of an authoritys decision making.
Distributive justice: perceived fairness of decision making outcomes.
Procedural justice: perceived fairness of decision making procedure.
Interpersonal justice: perceived fairness of the treatment received by employees from authority.
Informational justice: perceived fairness of the communications provided to employees.
39. What is goal setting? What types of goals are most effective?
Goal setting is the process of motivating employees and clarifying their role perception by establishing performance
objectives.
Motivation is fostered when goal is specific and challenging.
40. What are the limitations of goal setting?
1. When goals are tied to monetary incentives, many employees may try to choose easy goals and negotiate goals that
are already near completion.
2. Goal setting cannot be applied to every performance dimension of every task.

Chapter 5: Decision Making

41. According to the rational model, how should people make decisions?
Step 1: problem identification (boil problem down into something easily understood)
A problem arises when there is a discrepancy between the present situation and the optimal outcome. The decision
process is directed toward changing the root causes of difficulties so that the symptoms are reduced or eliminated
Step 2: appropriate decision style (a mixture of two decision styles)
A programmed decision follows standard operating procedures. New, complex, or abstract problems require nonprogrammed decisions.
Step 3: list of solution (pick the first acceptable solution)
First search for ready-made, already-proven solutions, if unavailable, design a custom-made solution or modify an
existing solution.
Step 4: choose the best alternative (start with an assumption and seek information to prove it, use inaccurate of
distorted information in evaluation)
Identify all the main selection criteria, Rank the criteria by importance, Give a weighted rating from 1 to 10 or some
other scale, Calculate each alternatives total value from the ratings and criteria weights.
Step 5: Implement the solution
Mobilize resources - Decision makers must rally employees and prepare sufficient resources to make and implement the
decision, Evaluate decision effectiveness (may be ignored).
42. What are the assumptions of the rational model of decision making?
1. Problems are clear; 2. Objectives are clear;
3. People agree on the criteria and weights; 4. All alternatives are known;
5. All consequences can be anticipated; 6. Decision makers are rational.
43. What is bounded rationality?
Decision makers do not have the ability to process all available informat ion and alternatives to make an optimal
decision. (Q41 in brackets: bounded rationality, actual decision making model)

44. What are heuristics? What are anchoring, availability, representativeness, and framing?
Heuristics: mental shortcuts that simplify the decision making process. On plus side, these simple rules of thumb allow
people to make decision quicker and more easily; on the downside, they can bias people toward inaccurate decisions.
Anchoring: fixating on initial information and ignoring subsequent information.
Availability: rely on information that is readily available in memory.
Representativeness: assess the likelihood of an event occurring based on ones impressions about similar occurrences.
Framing: selecting and highlighting certain aspects of a situation while ignoring other aspects.
45. What is escalation of commitment? What causes escalation of commitment and how can one overcome the
problem?
The tendency to repeat an apparently bad decision or allocate more resources to a failing course of action.
Causes: 1. Self-justification for initial action; 2. The gamblers fallacy: underestimate the risk and overestimate the
possibilities to win; 3. the problems are ignored and remain unsolved.
Solutions: 1. Separate decision choosers from decision evaluators; 2. publicly establish a preset threshold; 3. Avoid
creating a failure-fearing culture that leads employees to perpetuate their mistakes.

Chapter 6: Groups and Teams

46. What is a team? How is it different from a group?
Team: two or more people work interdependently over some time periods in order to accomplish common goals related
to some task-oriented purposes, is a specific group while groups are just a collection of two or more people.
47. What types of teams are there? How are they different from one another? Are these categories exclusive?
Work team: relatively permanent; generally require a full commitment from members; usually involved in production.
Management team: relatively permanent; participate in managerial-level tasks that affect the entire organization.
Parallel team: members from various other jobs; part-time commitment; life span varies, usually make
recommendations or resolve issues (consultant).
Project team: one-time tasks that require different types of expertise; can be short or long, depending on the
complexity of the project; can have both full-time and part-time commitment
Action team: highly visible or challenging tasks; can be short or long.
48. Does the size of a team affect its effectiveness?
More is better for management and project teams because work is more complicated. Production teams engage in more
routine tasks, so additional member results in coordination and communication problems.
49. What is team diversity? What are examples of surface - and deep-level diversity?
The degree to which members are different from each other in terms of any attributes that might be used as a basis of
categorizing people. SLD: different characteristics easily seen in surface (age, sex, race). DLD: take efforts to
recognize (values, attitudes, personalities).
50. In general, is team diversity good or bad? How do the effects of surface - and deep-level diversity change as
time goes by (when team members start to cooperate more)?
In general, diversity tends to have no effect or negative effects on team performance. As time goes by, SLD effect
weakens while DLD effect increases (after working together for some time, and people know each other better)
51. What are disjunctive, conjunctive, and additive tasks? How to account teams ability in e ach of these tasks?
Disjunctive tasks: there is an objectively verifiable best solution; its up to the member has the highest level of ability.
Conjunctive tasks: everyone needs to finish the task and performance is measured by the weakest link.
Additive tasks: contributions resulting from the abilities of every member add up to determine team performance, the
average abilities are important.
52. How does team leaders conscientiousness or cognitive ability affect the effects of team members
conscientiousness or cognitive ability?
Low motivation/ability of the leader neutralizes the positive effect of members motivation/ability.

53. How do team members respond to the weakest link in the team?
Low ability: empathy and help; Low motivation: anger and rejection.
54. What is team interdependence? What are the three major types of interdependence?
The degree to which members are linked.
Goal interdependence: The degree to which members are linked by their goals, a high degree of goal interdependence
exists when team members have a shared vision of the teams goal and align their individual goals with that vision.
Outcome interdependence: The degree to which members are linked by the feedback and outcomes they received. Do
team members share the reward or are they individually rewarded?
Task interdependence:
55. What are the four types of task interdependence?
Pooled interdependence: members complete work assignments independently and the work is simply piled up to
represent the groups output; lowest level of coordination.
Sequential interdependence: different tasks are done in a sequential order; coordination only happens between positions
next to each other; e.g. assembly line.
Reciprocal interdependence: members are still specialized to perform specific tasks, but interact with a subset of other
members in a mutual and repeated manner.
Comprehensive interdependence: each member has a great deal of discretion in terms of what they do and with whom
they interact in the course of the collaboration.
56. How do task and outcome interdependence interact in affecting performance?
Team performs the best when tasks and outcomes were either purely team-based or purely individual-based.
57. What is the goal of team process management?
Effectiveness: Maximize process gain while minimize process losses.
Process gain: getting more from the team than you would expect according to the capabilities of its individual members.
Process loss: getting less from the team than you would expect according to the capabilities of its individual members.
58. How do we define taskwork process?
Activities of team members that related directly to the accomplishment of team tasks.
59. Why do brainstorming sessions rarely work as well as inte nded? What is the Group Nominal Technique?
Brainstorming:
1. Social loafing: not work as hard thinking up ideas as would if turn in individual generated list; 2. Fear of criticism:
although rules forbid this, members are afraid of expressing ideas that are silly or not well thought out; 3. Production
blocking: because members have to wait their turn to express ideas, waiting consumes time, but it builds morale and
results in sharing knowledge that would otherwise be locked in person; 4. Groupthink : a mode of though whereby
individuals intentionally and prematurely conform to what they perceive to be the consensus of the group and
preference of the leader.
Group Nominal Technique: start as group outlining purpose, then individually write down ideas, then share in roundrobin fashion and discuss to clarify and build on ideas. Then individually rank order ideas and submit to facilitator, who
tabulates ideas and pronounces winner.
60. What factors influence the accuracy of team decision-making?
Decision infirmity: whether members possess adequate information about their own task responsibilities.
Staff validity: degree to which members can make good recommendations of members.
Hierarchical sensitivity: degree to which leader can effectively weigh the recommendations of members.
61. What is boundary spanning in teams? What are the three major activities involved?
Activities with individuals and groups other than those who are considered part of the team, how team react with the
environment.
Ambassador activities: communications with top management to protect the team, persuade superiors to support the
team, obtain resources for the ream.
Task coordinator activities: communications to coordinate task related activities with other teams/divisions.
Scout activities: things members do to obtain information on technologies, competitors, or broader marketplace.

62. What is teamwork process? How is it different from taskwork process?

Refer to the interpersonal activities that facilitate the accomplishment of teams work but dont directly involve in the
task accomplishment. Differences: not directly related to the task accomplishment but beneficial.
63. What is transition process? What activities are involved in this process?
Activities that focus on preparation for future work; important before and between periods of work.
Analyze mission, formulate strategy, and specify goals.
64. What is action process? What activities are involved in this process?
Importance as the taskwork is being accomplished.
Monitor progress, coordinate efforts, and helping behaviors.
65. What is interpersonal process? What activities are involved in this process?
Manner in which team members manage relationships.
Motivation building, emotion management, and conflict management.
66. What are the two types of conflict in teams? What do top performance teams do to resolve conflicts?
Task conflict: disagreements among members about the teams task (moderate level is good)
Relationship conflict: disagreements among team members in terms of interpersonal relationships or incompatibilities
with respect to personal values or preferences.
1. Focusing on the content of interpersonal interactions rather than the delivery style.
2. Explicitly discussing any reasons behind team decisions.
3. Assigning work to members with relevant expertise instead of assigning by other common means such as
volunteering, default, or convenience.
67. What are team states? What are the three major states in teams?
Specific feelings and thoughts that coalesce in the minds of team members as a consequence of their experience
working together.
Cohesion: emotional bounds and ties that create an attachment among team members.
Potency: the degree to which members believe that the team can be effective across a variety of situations and tasks.
Transactive memory: how specialized knowledge is distributed among members to create effective system of memory
of the team.
68. What are the four stages in team development?
Forming: understand team boundaries and what is expected of the team members.
Storming: committed to ideas you brought to the team; unwilling to accommodate ideas of others, which leads conflict.
Norming: Realize need to work together; norms and expectations develop.
Performing: Comfortable working in roles; team is now making process toward the goal.
69. What is punctuated equilibrium in terms of team development?
Team members make assumptions and patterns for the first half during the first meeting, and then realize that need to
change the plan to finish on time at the midway point of the project.

Chapter 7: Leadership
70. What is the definition of power? What are the different types of power?
The ability to influence the conduct of others, and resist unwanted influence in return.
1. Legitimate power; 2. Reward power; 3. Coercive power; 4. Expert power; 5. Reference power.
71. What are the contingencies (situations that increase/decrease power) of power?
Substitutability: power increases when there are substitutes for the reward or resources the leader controls
Centrality: power increases when the leaders role is important and interdependent with others in the organization
Discretion: power increases when the leader has the freedom to make his own decisions without being restrained by
organizational rules
Visibility: power increases when others know about the leader and the resources he or she can provide

72. What is influence? What are the two characteris tics of influence?
Influence is the use of an actual behavior that causes behavioral or attitudinal changes in others.
Influence is directional, and all relative.
73. What influence tactics do people use in organizations? How effective are they?
MOST EFFECTIVE
Rational persuasion: use of logical arguments and hard facts; only tactic consistently successful in upward influence
Consultation: target is allowed to participate in deciding how to carry out request; increases commitment of target
Inspirational appeal: appeal to targets values & ideals, creating an emotional or attitudinal reaction. To use must know
what is important to target
Collaboration: leader helps or provides resources to target; makes it easier for target to complete request
MODERATELY EFFECTIVE- sometimes effective, sometimes not
Ingratiation: use of favors, compliments or friendly behavior to influence other
Exchange: offers a reward or resource to target for performing request; need something valuable to offer
Personal appeals: asks for something based on personal friendship or loyalty
Apprising: clearly explain why performing the request will benefit the target personally
LEAST EFFECTIVE - generally result in resistance
Pressure: coercive power with threats and demands; can only lead to short term benefits
Coalitions: influencer enlists other people to help influence the target
74. How do people respond to influence tactics?
Engagement: target agrees with and becomes committed to request (behavioral and emotional changes)
Compliance: target is willing to perform request, but does so with indifference (behavioral change only, most common)
Resistance: target is opposed to request and attempts to avoid doing it (no change in behavior or attitude)
75. What is negotiation?
A process in which at least two partners with different needs and viewpoints try to reach agreements on matters of
mutual interest.
76. What are the two general strategies of negotiation?
Distributive negotiation: divide resources between each other, win-lose negotiation over a fixed resource.
Integrated negotiation: use problem solving skills and mutual respect to achieve a win-win scenario.
77. What is the definition of leadership?
The use of power and influence to direct the activities of followers toward goal achievement.
78. What is leadership emergence?
The degree to which an individual is viewed as a leader by others who typically have only limited information about
that individuals ability, personality, and performance.
79. What is leadership effectiveness? How can it be judged?
The degree to which the leaders action result in achievement of goals, commitment of employees, and development of
quality leader-member dyads. Can be judged by: 1. Objective evaluations of performance; 2. Subjective superior
evaluations; 3. Indices based on follower behaviors; 4. Subjective follower evaluations.
80. What do trait theories suggest about leadership? What about behavior theories?
Trait theories of leadership claim that leaders are born, not made.
The behavior theories state that specific, learned behaviors can differentiate leaders from non-leaders or successful
leaders from unsuccessful leaders, and these behaviors can be learned (leaders can be taught/made).
81. What is transformational leadership? What are its four dimensions?
A pattern of leader behavior that inspires followers to commit to a shared vision that provides meaning to their work
and sets the leader up as a role model who helps followers reach their potential.
Most effective: 1. Idealized influence: the degree to which (TDTW) the leader behaves in admirable ways that cause
followers to identify with the leader. 2. Inspirational motivation: TDTW the leader articulates a vision that is appealing
and inspiring to the followers. Less effective: 1. Intellectual stimulation: TDTW the leader challenges assumptions,
takes risks, and solicits followers innovative ideas. 2. Individualized consideration: TDTW the leader attends to each
followers need, acts as a mentor or coach to the followers, and listens to the followers concerns and needs.

82. So idealized influence and inspirational motivation are usually combined to form the concept of charismatic
leadership. In what circumstances is charismatic leadership mostly effective?
In dynamic unstable environments, previous system is no longer effective (great need for change), early (entrepreneurial)
and late (renewal) stages, top level of organization.
83. How do followers respond to leaders charisma? How are personalized and socialized identification different
from each other?
Personalized identification:
Followers are confused and disoriented before joining the relationship; the relationship provide them with a clearer
sense of self,
Is based on the followers personal feelings for the leader, rather than the acceptance of the leaders message.
Followers lack the ability to judge the leaders messages and influenced attempts; depend on and vulnerable to leader.
Socialized identification:
Followers have a clear sense of self and a clear set of value; charismatic leadership provides them with a means of
expressing their self and values within the framework of collective actions.
Followers derive the sense of direction and self-expression not from personal feelings for the leader, but his messages.
Followers place constraints on the leaders influence, and less depend on the leader and less open to manipulations.
84. What are the leader behaviors that can be categorized as transactional leadership?
Contingent reward:
The degree to which the leader sets up constructive transactions or exchanges with followers.
Leaders clarify expectations and establishes the rewards to meet these expectations.
Management by expectation:
The degree to which the leaders take corrective actions.
1. Active: the leaders monitor follower behavior, anticipate problems, and take corrective actions before the behavior
create difficulties.
2. Passive: the leaders wait until followers behavior has created problems before taking action.
85. What do contingency theories suggest about leadership?
The type of leadership needed is based on the situation being faced.

Chapter 8: Organizational Design

86. What is organizational structure? What is the best way to learn about an organizations structure?
Organizational Culture formally dictates how the jobs and tasks are divided and coordinated between individuals and
groups within the company. Best way: an organizational chart that is drawing to represent every job in the organization
and the formal reporting relationships between those jobs.
87. What are the six major elements of organizational structure? What are the tradeoffs of high versus low
degrees of these elements?
1. Work Specialization: the degree to which tasks in an organization are divided into separate jobs
High work specialization will give high productivity, however at some points the human diseconomies from division of
labor boredom, fatigue, stress, poor quality, absenteeism, and high turnover exceed the economic advantages.
2. Departmentalization: the basis by which jobs are grouped together.
A. Functional: grouping jobs by functions performed.
Adv: Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations,
Coordination within functional area; In-depth specialization.
Disadv: Poor communication across functional areas, Limited view of organizational goals
B. Geographical: grouping jobs according to geographical region
Adv: More effective and efficient handling of specific regional issues that arise, Serve needs of unique geographical
market better.
Disadv: Duplication of functions, Can feel isolated from other organizational area.

C. Product: grouping jobs by product line

Adv: Allows specialization in particular products and services, Mangers can become expert in their industry, Closer to
customers.
Disadv: Duplication of functions, Limited view of organizational goal
D. Process: grouping jobs on the basis of product or customer flow
Adv: More efficient flow of work activities.
Disadv: Can only be used with certain types of product.
E. Customer: grouping jobs on the basis of specific and unique customers
Adv: Customers needs and problems can be met by specialists.
Disadv: Duplication of functions, Limited view of organizational goal.
F. Matrix structure: are more complex form of organizational design that tries to take advantage of two types.
3. Chain of Command: the continuous line of authority that extends from upper levels of an organization to the lowest
level of the organization clarifies who reports to whom.
Long chain: more information filtered only relevant things passed to higher-ups; however communication is more
complex and decisions are slow.
Short chain: Quicker communication, but less chance of filtering.
4. Span of Control: represents how many employees each manage in the organization has responsibility for.
Narrow: hands on, close monitoring, easy to focus on fewer employees, must hire many more managers, pay more
manager salaries, employees may resent close monitoring and less latitude.
Wide: less costs, shorter chain of command, may be tougher to pay attention to any one single employee.
5. Centralization: the degree to which decision making is concentrated at upper levels of the organization, Uniformity,
consistence, swift decisions, though fewer ideas.
Decentralization: the degree to which lower-level employees provide input or actually make decisions, Flexibility,
Autonomy, Slower company-wide decisions, more ideas, more variety.
6. Formalization: the degree to which jobs within the organization are standardized and the extent to which employee
behavior is guided by rules and procedures.
Formal: standardization, control
Informal: Creativity, free communication
Remark: Key tradeoffs.
Efficiency, rigid, predictable, standardized

VS

Flexible, adaptive, dynamic, creative

88. What is mechanistic organization? In what kind of environment would mechanistic organization thrive?
Mechanistic organizations are efficient, rigid, predictable, and standardized organizations that thrive in stable
environment, has rigid and hierarchical chain of command, high degrees making, and narrow spans of control.
89. What is organic organization? In what kind of environment would organic organization thrive?
Organic organizations are flexible, adaptive, outward-focused organizations that thrive in the dynamic environments,
has lower levels of formalization, weak or multiple chains of command, low levels of work specialization, and wide
spans of control.
90. How are mechanistic and organic organizations different in terms of the elements of organizational structure?
Mechanistic: high specialization; rigid departmentalization; clear chain of command; narrow spans of control, high
centralization; high formalization. Organic: cross-functional teams; cross-hierarchical teams; free flow of information;
wide spans of control; decentralization; low formalization.
91. What is organizational design? What factors should one consider before initiating an organizational design?
Organizational design is the process of creating, selecting, or changing the structure of an organization.
Strategy and structure: changes in corporate strategy should lead to changes in an organizations structure that support
that strategy, certain structural designs work best with different organizational strategies
Size and structure: as an organization grows larger, its structure tends to change from organic to mechanistic with
increased specialization, departmentalization, centralization, and rule/regulations.
Environment uncertainty and structure: mechanistic vs organic.

92. What is organizational change? What are the characteristics of change in organizations?
Any alterations in the people, structure, or technology of an organization.
Constant yet varies in degree and direction (most cases change forward, but sometimes changing backward).
Produces uncertainty yet is not completely unpredictable.
Creates both threats and opportunities.
93. Why do people resist change? How can managers reduce employees resistance to change?
Nature response of changing: Say no!
Reasons:
1. The ambiguity and uncertainty that change introduces (feeling being controlled).
2. The comfort of old habits.
3. A concern over personal loss of status, money, authority, friendship, and personal convenience.
4. The perception that change is incompatible with the goals and interest of the organization (most important reason,
and this can be true such that changes are not required, so the managers need to ask again and again: if Im changing the
organization in the interest of the organization).
Techniques to reduce the resistance of changing:
Technique
Education and
communication
Participation
Facilitation and
support
Negotiation
Manipulation
and co-potation
Coercion

When to use
When resistance is due to
misinformation
When resistances have the
expertise to make a contribution
When resisters are fearful and
anxiety ridden
When resistance comes from a
powerful group
When a powerful groups
endorsement is needed
When a powerful groups
endorsement is needed

Advantages
Clear up
misunderstandings
Increase involvement
and acceptance
Can facilitate needed
adjustments
Can buy
commitment
Inexpensive, easy
way to gain support
Inexpensive, easy
way to gain support

Disadvantages
May not work when mutual trust and
credibility are lacking
Time-consuming; has potential for a poo
solution
Expensive; no guarantee of success
Potentially high cost; opens doors for
others to apply pressure to
Can backfire, causing change agent to
lose credibility
May be illegal; may undermine change
agents credibility

Remark: some common excuse of changing (not the reasons why people dont want to change)
1. It always be this: the problem needed to change is older.
2. Other companies all do this: the problem needed to change is wider, all companies need to change.
3. We dont have money: spending money on wrong things.
(These are all not reasons, the real reasons are behind!)

Chapter 9: Organizational Culture

94. What is organizational culture?
The shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and
behaviors of its employees (difficult to put in words).
95. What are the three components of organizational culture?
Espoused Value: Beliefs, philosophies, and norms that a company explicitly states.
Basic Underlying Assumptions: Taken-for granted beliefs so ingrained that employees simply act on them rather than
question their validity.
Observable Artifacts: Manifestations of an organizations culture that employees can easily see or talk about.
96. What is an observable artifact? What are the six major types of artifacts?
Manifestations of an organizations culture that employees can easily see or talk about.
Symbols; Physical Structures; Languages (professional languages);
Stories; Rituals; Ceremonies.

97. What are espoused values?

Beliefs, philosophies, and norms that a company explicitly states.
98. What are the basic underlying assumptions? How is it different from espoused values?
Taken-for granted beliefs and philosophies so ingrained that employees simply act on them rather than question the
validity of their behavior (they dictate behaviors and attitudes; most long-lasting, difficult to change).
EV: it is one thing to SAY something is important.
BUA: it is to consistently ACT in ways that support these values.
99. How would we consider whether an organizations culture is strong or weak?
Culture is strong when:
High consensus: employees agree about the ways things are supposed to happen.
High intensity: employees behavior are consistent with their expectations (in consistent way).
100. What are subcultures and countercultures? How are they different?
Subculture: A united, smaller subset of employees whose culture supplements the overall culture (are usually okay with
this as long as they dont INTERFERE with organizational culture).
Countercultures: subculture that interfere with overall organizational culture (differentiated, may have conflict).
101. Is a strong culture always good for the organization? What are the pros and cons of organizational culture
strength? (Not always good)
Pros: Differentiate the organization from others; Gives employee a sense of organizational identity; Facilitates desired
behaviors among employees; Creates stability within the organization.
Cons: Make merging with another organization difficult; Attracts and retains homogenous employees (less diversity,
less creativity); too much of a good thing extreme behaviors; Adapting to environment more difficult (difficult to
change the way of behavior)
102. How can organizations maintain their cultures?
Cultures are often put to the test when organizations recruit and hire new employees.
Certain actions can help to keep culture strong: Attraction-Selection-Attrition; Socialization
103. What is the Attraction-Selection-Attrition framework?
Attraction: employees will be attracted to organizations whose culture match their own personality.
Selection: organizations will select candidates based on whether their personality fit in the culture, further weeding out
potential misfit.
Attrition: those who still dont fit will either be unhappy or ineffective when working in the organization, which leads to
attrition (voluntary or involuntary turnover).
104. What is person-organization fit?
The congruence of an individuals beliefs and values with the culture, norms and values of organization.
High fit: higher satisfaction and commitment
Low fit: Unhappy, ineffective, and eventually turnover.
105. What are the stages of socialization? What can companies do to facilitate socialization of new comers at each
stage?
Primary process by which employees learn about an organizations culture.
Anticipatory stage: Realistic job preview (improve fit)
Encounter stage: Orientation programs (reduce shock)
Understanding stage: Mentoring programs (speedier socialization)

Chapter 10: Human Resource Management

106. What is human resource management? Why is it important for organizations?
Policies, practices, and systems that influence employee attitudes and performance.
Ensure that: 1. The right people with the right skills are placed at the right positions; 2. Voluntary turnover is minimized;
3. Simply put: if you have the best HRM in the industry, you have the best people in the industry.

107. What is job analysis? What are the procedures of a job analysis?
The process of getting detailed information about jobs in the organization.
Procedure: Generate a list of general job dimensions; Come up with specific tasks within those dimensions; Rate tasks
on frequency and importance; Use the most critical tasks to define the job; Identify the KSAs needed for the core tasks.
(KSA: knowledge, skills, ability)
108. What is recruitment? What are the three key goals of recruitment?
A set of activities designed to locate, identify and attract potential employees (recruitment is based on job analysis).
Recruitment is initially staff the organization, and later used to replace employees and to cope with labour shortage.
Three key goals: 1. Attract a lot of applicants; 2. Attract applicants who fit the position; 3. Increase the likelihood of
acceptance.
109. What are the sources for recruitment?
Internet; Employee referrals; Company website; College recruiting; Professional recruiting organizations.
110. What is selection? What does it mean for a selection procedure to be reliable and valid?
The process by which companies decide who will or will not be allowed in to the organization.
A valid selection device is characterized by a proven relationship between the selection device and some relevant
criterion, and a reliable selection device indicates that it measures the same thing consistently.
111. What are the tools of selection in organizations?
Application Form: Almost universally used; Most useful for gathering information; Can predict job performance but not
easy to create one that does.
Written Tests: Must be job related; Include intelligence, aptitude, ability, personality, and interest tests; Are popular;
Relatively good predictor for supervisory position.
Performance-Simulation Tests: Use actual job behaviors; Work Sampling test applicants on tasks associated with that
job, appropriate for routine or standardized work; Assessment Center simulates jobs, appropriate for evaluating
managerial potential.
Interview: Almost universally used, Must know what can and cannot be asked; Can be useful for managerial positions.
Background Investigation: Used for verifying application data valuable source of information; Used for verifying
reference checks not a valuable source of information.
Physical Examinations: Are for jobs that have certain physical requirements; Mostly used for insurance purpose.
112. What are the popular methods of training in organizations?
On-the-job Employees learn how to do the tasks simply by performing them, usually after an initial intro. to the task.
Job Orientation Employees work at different jobs in a particular area, getting exposure to a variety of tasks.
Mentoring and Coaching Employees work with an experienced worker who provide information, support, and
encouragement; also called apprenticeships in certain industries.
Experiential Exercise Employees participate in role playing, simulations, or other face-to-face types of training.
Workbooks/Manuals Employees refer to training workbooks and manuals for information.
Classroom Lecture Employees attend lectures designed to convey specific information.
113. What is performance appraisal? What are the two basic purposes?
The performance management system that establishes performance standards used to evaluate employee performance.
Purposes: 1. Build better-performing organization; 2. Aid in the professional development of employees.
114. What are the advantages or disadvantages of the different types of appraisal methods?
Written Essay: evaluator writes a description of employees strengths and weakness, past performance, and potential,
provides suggestions for improvements.
+ Simple to use
- May be better measure of evaluators writing ability than of employees actual performance.
Critical Incident: Evaluator focuses on critical behaviors that separate effective and ineffective performance.
+ Rich example, behaviorally based.
- Time-consuming, lack quantifications.
Multi-person Comparison: Employees are rated in comparison to others in work (relative performance).
+ Compares employees with one another.
- Difficult with large number of employees, legal concerns.

Graphic Rating Scale: Popular method that lists a set of performance factors and an incremental scale, evaluator goes
down the list and rates employees on each factor.
+ Provide quantitative data, not time-consuming.
- Doesnt provide in-depth information on job behavior.
BARS (Behavior Anchored Rating Scale): popular approach that combines elements from critical incident and graphic
rating scales, evaluator uses a rating scale, but items are examples of actual job behaviors.
+ Focuses on specific and measurable job behaviors.
- Time-consuming, difficult to develop.
MBO: Employees are evaluated on how well they accomplish specific task.
+ Focuses on goals, results oriented.
- Time-consuming
360-Degree Appraisal: Utilizes feedback from supervisors, employees and coworkers.
+ Thorough
- Time-consuming
115. What is employee labor union?
An organization that represents workers and seeks to protect their interests through collective bargaining.
116. What is retention? What are the two types of employee turnover that an HR manager should prevent?
What can companies do to prevent each type of turnover?
The ability of an organization to retain its employees.
1. Leaving the organization because of better opportunities.
Building organizational commitment, providing career development opportunities.
2. Leaving the organization because of physical or psychological health issues.
Safety and occupational health.

Chapter 11: Foundations of Control (More on lecture notes)

117. What is controlling in organizations? What is the purpose of control?
The process of monitoring, comparing, and correcting work performance.
To ensure that activities are completed in ways that lead to the accomplishment of organizational goals.
118. What are the three steps in the control process?
1. Measuring Actual Performance
How to measure: personal observations, statistical reports, oral reports, and written reports.
What to measure: what is measured is probably more critical to the control process than how its measured.
2. Comparing Actual Performance against the Standard.
Determining the degree of variation between actual performance and the standards.
Range of variation: the acceptable parameters of variance between actual performance and standards.
3. Taking Managerial Action
Immediate corrective action: corrective action that corrects problems at once in order to get performance back to track.
Basic corrective action: corrective action that looks at how and why performance deviated before correcting the source
of deviation.
Revise the standard: if performance consistently exceeds the goal, then a manager should look at whether the goal is too
easy and needs to be raised, managers must be cautious about revising a standard downward.
119. What is organizational performance? How would you measure the performance of an organization?
Performance: the end result of an activity.
Organizational performance: the accumulated results of all the organizations work activities.
Productivity: the amount of goods or services produced divided by the inputs needed to generate that output.
Organizational effectiveness: a measure of how appropriate organizational goals are and how well those goals are being
met.

120. What are feedforward, concurrent, and feedback control?

Feedforward control: control that takes place before a work activity is done.
Management by walking around: a term used to describe when a manager is out in the work area interacting directly
with employees.
Concurrent control: control that takes place while a work activity is in progress.
Feedback control: control that takes places after a work activity is done.
121. What is balance scorecard?
A performance measurement tool that examines more than just the financial perspective, measures a companys
performance in for areas: financial, customer, internal processes, and people/innovation/growth assets.
122. What is benchmarking?
Benchmarking: the search for the best practices among competitors or non-competitors that lead to their superior
performance (Benchmark: the standard of excellence to measure and compare against).
123. Why do organizations need to adjust controls for cross -cultural differences?
1. Control techniques can be quite different for different countries.
2. Differences are primarily in the measurement and corrective action steps of the control process.
3. Managers in foreign countries also need to be aware of constraints on corrective actions they can take.

Chapter 12: Managing Strategies

124. What are strategies in organizations?
The plans for how the organization will do what its in business to do, how it will complete successfully, and how it will
attract and satisfy its customers in order to achieve its goals.
125. Why is strategic management important?
1. It results I higher organizational performance.
2. It requires that manages examine and adapt to business environment changes.
3. It coordinates diverse organizational units, helping them focus on organizational goals.
126. What is the strategic management process?
A six-step process that encompasses strategic planning, implementation, and evaluation.
1. Identifying the organizations current mission, goals, and strategies.
2. Doing an external analysis.
3. Doing an internal analysis.
4. Formulating strategies.
5. Implementing strategies.
6. Evaluating results.
127. What is a mission statement?
A statement of the purpose of an organization, the scope of its products and services.
128. How would you conduct a SWOT analysis?
Combining Steps 2 and 3, and:
Externally, analyze the environmental scanning of specific and general environments, focusing on opportunities and
threats. Internally, assessing organizational resources, capabilities, and activities: 1. Strengths create value for the
customer and strengthen the competitive position of the form. 2. Weakness can place the firm at a competitive
disadvantages.
129. What is corporate strategy? What are the different types of corporate strategies?
An organizational strategy that determines what business a company is in or wants to be in, and what it wants to do with
those business.
Growth: expansion into new products and markets.
Stability: maintenance of the status quo.
Renewal: examination of organizational weakness that are leading to performance declines.

130. What are the different types of growth strategies?

Growth Strategy: a corporate strategy that is used when an organization wants to expand the number of markets served
or products offered, through either its current business or new businesses.
1. Concentration: Focuses on its primary line of business and increase the number of products offered or markets served
in this primary business.
2. Vertical integration:
Backward vertical integration: the organization becomes its own supplier.
Forward vertical integration: the organization becomes its own distributor.
3. Horizontal Integration: a company grows by combining with competitors.
4. Diversification
Related diversification: when a company combines with other companies in different, but related, industries.
Unrelated diversification: when a company combines with firms in different and unrelated industries.
131. What is competitive strategy?
An organizational strategy for how an organization will compete in its businesses.
132. What is the Five Forces Model that determines the rules of competition?
Five forces determine industry attractiveness and profitability.
1. Threat of new entrants: how likely is it that new competitors will come into the industry.
2. Threat of substitutes: how likely is it that other industries product can be substituted for our industrys products.
3. Bargaining power of buyer: how much bargaining power do buyers have.
4. Bargaining power of supplier: how much bargaining power do suppliers have.
5. Current rivalry: how intense is the rivalry among current industry competitors.
133. What is strategic leadership? What constitutes effective strategic leadership?
The ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to
initiate changes that will create a viable and valuable future for the organization.
1. Determine the organizations purpose or vision.
2. Exploiting and maintaining the organizations core competitors.
3. Developing the organizations human capital.
4. Creating and sustaining a strong organizational culture.
5. Creating and maintaining organizational relationships.
6. Reframing prevailing views by asking penetrating questions and questioning assumptions.
7. Emphasizing ethical organizational decisions and practices.
8. Establishing appropriately balanced organizational control.