Organizational

Management
Study Guide
● Course Overview
○ Decision Making
○ Motivation
○ Team building
○ Working effectively in groups
○ Managing Diversity
○ Communication
○ Leadership
○ Leading Changes
○ Culture

● The Non-Rational Escalation of Commitment

○ The phenomenon were people increase their investment in a decision despite
new evidence suggesting that the decision was probably wrong in the first place
○ The Cycle
■ Resources are committed to an initial course of action
■ Recourse commitment does not produce desired return
■ More resources committed to “turn things around”
■ Cost of failure increases
■ More resources invested
○ Escalation is more likely when:
■ Project features encourage it
● Project’s eventual payoff is thought to be big
● Few available feasible alternatives
■ Psychological factors encourage it
● You freely entered the project at the beginning
● Focus on sunk rather than on opportunity costs
● You overestimate the likelihood of a positive outcome
■ Social factors encourage it
● You’ve publicly committed to the project
● Concern for reputation
○ Admitting first decision made was wrong
■ Reducing escalation tendencies
● Set limits for yourself before beginning
● Distinguish between sunk and opportunity cost
● Don’t punish those who admit their wrong
● Be willing to cut your losses
● Rational Model of Decision Making
 ○ Six steps:
■ Clearly define the problem
■ Gather all relevant information, including alternatives
■ Identify evaluation criteria
■ Weight criteria given goals
■ Evaluate each alternative on each criterion
■ Select the best alternative
○ Emotions affect decision making
● Historical Overview of OB
○ Industrial Age
■ What can be done to get people to do more work in less time
■ The Hawthorne Case
● How the design of work environments affect performance
○ Temperature
○ Illumination
○ Duration of Workday
○ Length of rest pauses
○ Fayol
■ Focused on the efficient structuring of overall organizations
○ McGregor
■ People tend to become self-fulfilling prophecies (the four-frame model):
● Structural frame
○ Factory machine
○ Central concepts: Rules, roles, goals, policies, technology,
environment
○ Image of leadership: Social architecture
○ Basic leadership challenge: Attune structure to task,
technology, environment
● Human Resource frame
○ Family
○ Central concepts: Needs, skills, relationship
○ Image of leadership: Empowerment
○ Basic Leadership Challenge: Align organizational and
human needs
● Political frame
○ Jungle
○ Central concepts: Power, conflict, competition,
organizational politics
○ Image of leadership: Advocacy
○ Basic leadership challenge: Develop agenda and power
base
● Symbolic frame
○ Carnival, temple/theater
 ○ Central concepts: Culture, meaning, metaphor, ritual,
ceramonry, stories, heroes
○ Image of leadership: Inspiration
○ Basic leadership challenge: Create faith, beauty, meaning

■
● Perception
○ Circle of Change
■ See-perception
■ Do-behavior
■ Get-result
○ The four-frame model
■ Basic Human Resources Strategies
● Develope a long term human resource philosophy
● Invest in people
● Empower employees and redesign their work
■ Political Frame: Sources of Power
● Position Power: Authority
● Information and expertise
● Alliances and network
● Access and control of agenda
● Framing control of meaning and symbols
■ Symbolic Frame:
● Plans are symbols
● Plans become games
● Plans become excuses for interaction
● Plans become advertisements
● Personality
○ The big 5 dimensions of personality
■ Extraversion
 ● A tendency to seek stimulation and to enjoy the company of other
people
■ Agreeableness
● A tendency to be compassionate toward other people

■ Conscientiousness
● A tendency to show self-discipline to strive for competence and
achievement
■ Neuroticism
● A tendency to experience unpleasant emotions easily
■ Openness to Experience
● A tendency to enjoy new experiences and new ideas
○ Plays an important role in organizational behavior
■ Personal Factors
● Knowledge
● Abilities
● Skills
● Personality
■ Situational factors
● Industry
● Nature of the job-job demands
● Social norms-the country and culture
○ MBTI Results
■ Mental Activities
● P
○ Perceiving
○ Taking in information (sensing/intuition)
● J
○ Judging
○ Organizing that information and coming to conclusions
(thinking/feeling)
■ Orientation of Energy
● Introversion
● Extraversion
○ Emotions and Moods
■ Emotion
● Overt reactions that express feelings about events
● Self-conscious emotions
○ Shame, guilt, embarrassment
● Social emotions
○ Envy, pity, jealousy
■ Mood
● An unfocused, relatively mild feeling that exists as background to
our daily experiences
● Motivation
○ The willingness of an individual to exert high levels of efforts towards
organizational goals
○ Intrinsic Motivation
■ The desire to perform a task for its own sake because the individual
derives a sense of accomplishment and/or feels the task is worthwhile
● Maslow’s Hierarchy of Needs
○ The satisfactory progression rule
○ Bottom to top:
■ Physiological
● Food, water, sleep
■ Safetly
● Security of family, health, body
■ Love/Belonging
● Friendship/family
■ Esteem
● Self esteem, confidence, respect
■ Self-actualization
● Morality and creativity
● The Job Characteristic Model (JCM)
○ Meaningfulness, responsibility, and knowledge of results
○ Understanding the JCM:
■ Task significance: The impact to others
■ Task identity: How it fits the big picture
■ Task variety: Engaging in different activities and
use many of their skills and talents
■ Autonomy: The freedom to plan, schedule, and
perform the way they wish
■ Feedback: Workers are provided with information
about how well they are performing

○
○ Extrinsic Motivation
■ The desire to perform a task in order to acquire external rewards (pay,
praise, status) or to avoid punishments
■ Problems with Extrinsic Motivation
● High cost of maintenance: behavior exists only when reward exists
● Rewards temporarily impact happiness (hedonic adaptation)
● Job Specific: Discourages teamwork
● Expectancy Theory
○ Effort leads to performance leads to outcome (reward)
○ Using Expectancy Theory to motivate employees:
■ Clearly define the performance standards
■ Be sure performance standards are achievable
■ Offer the right reward
■ Guarantee that meeting the performance standards
will result in the promised reward
○ Instrumentality
■ What I put in is what I’m going to get out of it (how
confident you are that the goal really will lead to the
outcome).

●
● Equity Theory
 ○ Motivation results from:
■ A person rewards-effort ratio
● Not absolute but relative to peers
■ Rewards include pay, promotions, security,
recognition, autonomy, etc
■ Effort includes time, reliability, cooperation, sharing
resources, etc.
■ Fairness model
● Intrinsic and Extrinsic Motivation
○ People are often motivated by both
○ Adding intrinsic motivation to existing extrinsic motivation
can boost overall motivation
○ Adding extrinsic motivation to existing intrinsic motivation
can undermine overall motivation
● Leadership Principals
○ A process whereby an individual influences a group of individuals to achieve a
common goal
○ Proactivity
■ The desire to take initiative based on personal will and values
■ Event leads to choices made by values, which leads to a reaction
○ P to PC
■ SMART principle
● Specific, Measurable, achievable, realistic, time
■ Product and production capabilities
● Effectiveness
○ The ability to reach goals/results by empowering
production capabilities
● Product
○ What do I want to achieve
● Production capabilities
○ What are my resources?
○ Positively/positive intelligence
○ Synergy
○ Trust
■ The speed of trust:
● Pillar 1:
○ Modeling the “walk the talk”, integrity
● Pillar 2:
○ Good intention
● Pillar 3:
○ Knowledge, capabilities, experience
● Pillar 4:
○ Results
○ The eight styles of leadership
 ■ Charismatic
● The icon: Oprah Winfrey
● Influences others through power of personality
● Acts energetically, motivating others to move forward, inspires
passion, may seem to believe more in themselves than in team
■ Innovative
● Grasps the entire situation and goes beyond the usual course of
action
● Can see what is not working and bring new thinking and action
into play
■ Command and Control
● Follows the rules and expects others to do the same
■ Laissez-Faire
● Knows what is happening but not directly involved in it
● Trusts others to keep their word
● Monitors performance, gives feedback regularly
■ Pacesetter
● The icon: Jeff Bezos
● Sets high performance standards for self and group
● Epitomizes the behavior sought from others
■ Servent
● Puts service to others before self-interest
● Includes the whole team in decision making
● Provides tools to get the job done
● Stays out of the limelight, lets team accept credit for results
■ Situational
● Links behavior with groups readiness
● Includes being directing and supportive while empowering and
coaching
■ Transformational
● Expects team to transform even when it’s uncomfortable
● Counts on everyone giving their best
● Serves as a role model for all involved
○ Types of leadership
■ Authentic leadership
■ Spiritual leadership
■ Servant leadership
■ Servant leadership
■ Adaptive leadership
● Leading towards the unknown
● Goals are being defined during the course of action and events
○ Assigned Vs. Emergent Leadership
■ Assigned
● Leadership based on occupying a position within an organization
 ■Emergent
● An individual perceived by others as the most influential member
of a group or organization, regardless the individuals title
○ Management
■ Doing the work with or through the efforts of others to achieve
organizational goals
○ VUCA
■ Volatility, uncertainty, complexity and ambiguity
○ Management vs. Leadership

● Positivity
○ Logical mind vs. Emotional Mind
■ Logical
● WIl leads to paradigma, leads to thought leads to emotion leads to
action
■ Emotional
● Action leads to emotion leads to thought leads to insights leads to
new will
● Structure
○ The formal configuration between individuals and groups with respect to the
allocation of tasks, responsibilities, and authorities within organizations
○ Source of Information
■ Hierarchy of authority
■ Lines of authority
■ Span of control
■ Division of labor
■ Decision makers vs. advisors
○ Types of structures
■ Functional
 ● Departmentalization by task, people who perform similar jobs
assigned to the same department
● Example: Separate units are established to handle different
products or product lines
● Each division operates as an independent unit
● Functional structure divides the organization based on specialized
functional areas such as production, marketing, and sales for the
purpose of management.
■ Matrix
● A complex type of structure that combines both the function and
the product forms of departmentalization
● Matrix structure is a type of organizational structure where
employees are grouped concurrently by two different operational
dimensions. (a two-way flow of authority)
● In this structure, employees usually have dual reporting
relationships.
○ In the matrix structure, you share resources and staff
across teams and projects, as well as within departments
or functions.

○
 ○

● Organizational Culture
○ A cognitive framework consisting of attitudes, values, behavioral norms, and
expectations shared by organization members.
○ Levels of culture according to the Iceberg Model

■
○ The six core characteristic of a culture
■ Sensitivity to others
 ■ Interest in new ideas
■ Willingness to take risk
■ The value placed on people
● Toxic vs. healthy organizational culture
■ Openness of available communication options
■ Friendliness
○ Strong culture
■ The core values are held intensely and shared widely
■ Members are committed to the values
● A clear philosophy
● Communication
● Explicit statements
● A set of values and norms
● Hiring new employees
●
○ Formal vs. Informal
■ Formal:
● Formal organizational culture is purposefully planned.
○ Examples include the corporate hierarchical structure,
written company policies and basic operating procedures.
■ Informal:
● Informal corporate culture evolves from human interactions and
social connections.
○ Examples of informal corporate culture include informal
groupings such as lunch groups and special project
groups.
○ Subcultures-Dominant culture
■ Functional differences
■ Geographic distances
■ Personal needs of its members
○ The role of a culture
■ Provides a sense of identity for members
■ Enhances commitment to the organization’s mission
■ Clarified and reinforces standards of behavior
○ Forms of organizational culture
■ Hierarchy culture
● Internal focus
● Emphasize stability and control
■ Market Culture
● External focus
● Stability and control
■ Clan culture
● Strong internal focus
● High degree of flexibility and discretion
 ■ Adhocracy culture
● Absence of hierarchy
● Capture opportunities
● Solve problems
● Focus on external environment
○ How does a culture change?
■ New members
■ Mergers and acquisitions (culture clashes)
■ Strategic cultural change
■ Environment/external culture
○ Social responsibility
■ The obligation of an organization’s management towards the welfare and
interests of the societies in which it operates
● Leading Change (Kotter’s Model)
○ Errors
■ 1. Not establishing a great enough sense of urgency
■ 2. Not creating a powerful enough guiding coalition
■ 3. Lacking a vision
■ 4. Under communicating the vision
■ 5. Not removing obstacles to the new vision
■ 6. Not systematically planning for and creating short-term wins
■ 7. Declaring victory too soon
■ 8. Not anchoring changes in the corporation’s culture
○ 8 steps to transforming organizations
■ Establishing a sense of urgency
● Examining market, and competitive realities
■ Forming a powerful guiding coalition
● Assembling a group with enough power to lead the change effort
● Encouraging the group to work together as a team
■ Creating a Vision
● Help direct the change effort
● Developing strategies for achieving that vision
■ Empowering others to act on the vision
● Encouraging risk taking and non traditional ideas, activities and
actions
■ Getting rid of obstacles to change
● Changing systems or structures that seriously undermine the
vision
■ Planning for and creating short term wins
● Planning for visible performance improvements
● Creating those improvements
● Recognizing and rewarding employees
■ Consolidating improvements and producing still more change
● Hiring, promoting employees that can implement the vision
 ● Using credibility to change systems, structures, policies that don’t
fit the vision
● Reinvigorating the process with new projects, themes, and change
agents
■ Institutionalizing new approaches
● Articulating the connections between the new behaviors and
corporate
● Developing the means to ensure leadership development and
succession
● Situational Leadership
○ Teling
■ Very detailed instruction, exactly what, when, where and how
■ Closely overseeing performance
■ Decisions are made exclusively by manager
○ Supporting
■ Specific instructions telling what, when, where, how and explaining why
■ Overseeing performance at all major stages
■ Decisions are made by consulting employees
○ Involving
■ Giving general direction
■ Spending limited time overseeing performance
■ Focusing on end results and not on how
■ Decisions are made together
○ Delegating
■ Letting employees know what needs to be done
■ Answering questions without offering directions
■ Managers allow employees to make decisions

■
○ Empowerment
■ A process that enables people to identify and unleash their human
potential
● In a working environment, allows individuals to work to their
highest capacity
 ● A process that enriches the internal power
■ Empowering leadership is more like being a “gardener” than being a
“mechanic”
● As you work with people, you bring out the life in them rather than
“inject” life into them
● You create conditions of empowerment rather than “fix” the skills
and abilities of individuals
■ What does an empowering manager do?
● Sharing knowledge and information with employees
● Delegates
● Listens to new ideas
● Creates an environment of open communications
● Teams vs. Groups
○ In a work group, group members are independent from one another and have
individual accountability.
○ In a team, team members share a mutual accountability and work closely
together to solve problems.
○ The four-stage model of group formation

○
○ Forming
■ When:
● New group, new members or new leader
■ Task:
● Accommodation: to the goals, R&R of myself and the group and
set expectations
■ Relationship:
● High dependency on the leader for guidance and direction
● Settling down, getting to know one another
■ Manager role:
● Direct: Clear R&R, reduce personal and organizational ambiguity
○ Storming
■ When
 ● Group members understand what they need to do
■ Task
● Organizing the work: Structures, processes, authorities and
decision making
■ Relationship
● Interpersonal conflict: authority, leadership, influence and control
■ Manager role:
● The infrastructure of group work, dealing with conflicts
○ Norming
■ When
● Group members understand the rules of the game
○ Goals, relationships…
■ Task
● Information flow: Ideas, feelings, feedbacks, mutual help
■ Relationship
● Group members feel that helping each other helps: unifying them,
achieving individual and team goals. Togetherness
■ Manager role
● Help and support the force of the group
○ Performing
■ When
● Healthy dependency relationship
■ Task
● Solving problems: working on solving problems and decision
making
○ Working on the different potential of group members
■ Relationship
● Codependency: Understand the codependence for achieving joint
goals
■ Manager role
● Facilitate their group to maximize its potential
Communication in Management
● Communication Process
○ Message
○ Encoding
■ Right and left hemisphere of the brain
■ Clash in emotional mind and rational mind
■ We are sensitive to the message that we got
○ Transmitting
○ Receiving
○ Decoding
■ Our
○ Behavior
● Transmission process:
○ Verbal communication: using words, either written or spoken
■ Discussion
■ Face to face conversations
■ Letters
■ Telephone
■ Fax
■ Email
■ Flyers
■ Memos
○ Nonverbal communication: without using words, by gesture, the use of space
■ Dress code
■ Waiting time
■ Seating position
■ Body language
● Ways to transmit messages effectively:
 ○ Pathos:
■ Percentage
● Body language (eye contact, gestures)55%
● Tonation (volume, pitch, pace) 38%
● Words (tell stories) 7%
○ Logos:
■ Visual: visual words, a lot of examp;les, simple language.
■ Auditory: repeat message out loud.
■ Digital: proven data, where the information is coming from.
■ Kinesthetic: experience message (feel it, understand it), ie: short video,
story.
○ Ethos:
■ Passion- Do I believe what I just said?
● Formal Vs. Informal Communication
○ Formal: The sharing of messages regarding the official work of the organization
○ Informal: The sharing of messages that are unrelated to the organization’s official
activities
● Types of Communication:
○ Face to face
■ Advantage
● See the feedback while communicating (see reaction)
● Immediate response
● Body language
● Tonation
● Building relationship
○ Email (technology)
■ Advantage:
● A record of all things said
● Visual and auditory are being acquired
● Gives time to digest and build response
● Can send more information in a document/article
● Time differences
● Relationship Paradigm
○ Win-Lose
○ Lose-Win
○ Lose-Lose
■ The escalation goes so high that not only you lose, will make sure that the
other person loses as well
○ Win-Win
○ Win
○ Win-win (no deal)
○