Decision Making
What are the 3 components of decision making? 100 bonus points for 2 more mini components
Objective function (why?), decision variables (what are the alternatives?), restrictions risks (what are the limits/risks of each option?)
bonus- scope (who are the affected groups?), time frame (what will this look like later on?)
What is the matrix structure? Give 2 advantages and disadvantages of the matrix structure
Matrix has dual lines of authority and a combo of functional (departments) and divisional (manager of each product)
Advantages- focuses on work more than people, minimizes cost by sharing key people
Disadvantages- responsibilities may be unclear, reporting to more than one manager at a time can be confusing
What is the difference between acute stress and chronic stress?
Acute stress is temporary, body prepares to defend itself in fight or flight.
Chronic stress is what we tend to ignore or push down, cost of daily living
Why is organizational culture important? Give 3 reasons or more for bonus points!!!
-sense making mechanism
-sense of identity for members
-generates commitment
-stabilizes social system
-defines boundaries
-biggest value driver
-employee retention
Name 3 benefits of diversity
-more creativity
-better understanding and service
-higher company performance
-positive climate
-bias free hiring
What is the 4 step decision making process? How is this related to open and closed loop thinking?
1. start (generate options)
2. decision
3. implementation
4. monitoring (outcome performance)
We tend to solve problems in an open loop (cause and effect) but closed loop is embedded in a larger system
What are the 7 key elements of organizational structure? (Try to name at least 3!!!)
Hint: WDCSCFB
When dogs cry squirrels check facebook
1. Work specialization (how activities are divided into separate jobs)
2. Departmentalization (basis by which jobs are grouped)
3. Chain of command (line of authority top --> bottom
4. Span of control (number of subordinates a manager can efficiently lead)
5. Centralization/decentralization (do top managers make decisions or is it up to the managers closest to the action?)
6. Formalization/standardization (do employees have freedom or are they told exactly what to do?)
7. Boundary Spanning (individuals forming relationships outside their formally assigned groups)
What is the difference between eustress and distress?
Eustress is the stress of daily life with positive connotations (marriage, promotion, new friends)
Distress is bad. Negative connotations (divorce, injury, finances)
What are the 4 types of organizational culture?
-core values (values accepted throughout the organization)
-subcultures (cultures defined by department designations and geographical separation
-strong culture (values intensely held and widely shared)
What is the difference between surface and deep level diversity?
Surface- easily perceived differences that may activate stereotypes (gender, age, disabilities)
Deep- differences in values, personality, work preferences (personality, values, attitudes, religion)
Explain the difference between System 1 and System 2 thinking. What are advantages and disadvantages for each? You got this!!
System 1 (intuition)- automatic, fast, associative
advantage- higher the hierarchy the more intuition is needed (senior management handles more complex problems), helps process when overwhelming/ambiguous information
disadvantage- the busier people are and more time constraints they face the more likely they are to rely on it, leads to heuristic biases, improperly calculating risks
System 2 (rationality)- slow, effortful, rule governed
advantage- many intuitive decisions are wrong, human mind doesn't fully understand complex/ambiguous environment, we tend to think linear, eliminate bias
disadvantage- could stick too much by the rules and not use empathy/emotion in decision making? (I made this up)
Name an advantage and disadvantage of Vertical FUNCTIONAL and vertical DIVISIONAL organizational structures
I believe in you
functional (groups employees by their similar specialties/roles)
advantage- develops experts in respective areas, individuals do the tasks they're best at
disadvantage- people in specialized areas fail to communicate with other departments, cross-functional activity more difficult to promote
divisional (groups employees into units by product/service/area)
advantage- better coordination than functional structure, flexibility on each division's core competency?
disadvantage- loss of efficiency because divisions acquire same resources and may compete for same customers
What are the stages of stress? (same as psych)
alarm- fight or flight
resistance- body becomes adaptive to challenge (use coping mechanisms)
exhaustion- body used up its resources, immune response
Explain Edgar Schein's Model of organizational culture. What are the 3 levels to the model (Hint: AEB)? For bonus points describe criticisms of the model!
Defines culture as explaining the being of an organization, pattern of assumptions that are invented by the groups as it learns to cope with problems
Components
-culture implies stability over time
-emphasizes conceptual shared meaning
-implies patterns
3 LEVELS
1. artifacts (visible organizational structures like dress code, logo)
2. espoused values (strategies, goals, philosophies like website or formal rules)
3. basic assumptions (unconscious/invisible beliefs or habits)
Criticism- basic assumptions can be affected by outside factors, only from a functional perspective
stereotype threat- degree to which we agree internally with negative perceptions of our groups (ex. when female students are given a math exam, negative stereotypes of women as less capable can actually negatively impact their performance on the exam)
reduce it by
-treating employees as individuals
-avoid highlighting group differences
-increasing awareness of how stereotypes may be perpetuated
-confronting microaggressions
What is the role of emotion in decision making?
strong emotions = strong reactions --> slower rational reaction
explains how the power of emotion can turn off rationality
Why do organizational structures differ? (There are 6 reasons) Bonus points for however many you can get
1. innovation
2. cost minimization (functional, divisional)
3. size (ability to specialize, vertical levels)
4. technology
5. environment
6. institutions (cultural factors guide appropriate behavior)
What is the lazarus model of stress and coping? What are its advantages/disadvantages? (This is a tough one but you got it!!)
Model says stress results from an imbalance between demands and resources.
Primary appraisal- concerns relevance to well being
Secondary appraisal- concerns coping options based on problem or emotion
Advantages- identifies alternative methods for managing psych responses to stressors, cognitive and dynamic approach
Disadvantages- lack of empirical evidence, difficult to label factors that determine stress
What are the culture change mechanisms of the stages of organizations?
(there's 3 stages and 3 change mechanisms each)
-small change through general evolution
-knowledge
-promotion of hybrids in culture
Midlife
-systemic promotion of a subculture
-technology
-scandal and myths
Maturity and decline
-financial recovery
-descruction and rebirth
-mergers/acquisitions
Why is diversity management important for leaders? How can they promote it?
Leaders need to make sure:
-all employees understand discrimination policies
-assess and challenge stereotype beliefs
-consider individual's capabilities
What are the reasons why an organization makes a decision? (3 aspects of objective function)
Dig deep in your brain for this one
to either maximize (profits, harmony), minimize (waste, stress), or reach (a goal, destination)
Name and describe at least 2/5 color organizations
Hint: RAOGT
Rats Are Obese Gross Things
-red (power & respect) like a WOLFPACK, only chief rules, exploitation
-amber (safety & loyalty) like an ARMY, chain of command, no innovation
-orange (material results) like a MACHINE, achiever outcome oriented, world is full of possibilities and challenges/competition, social acceptance
-green (belonging) team oriented, relationships more important than outcomes, equality
-teal (trust abundance of life) empathetic, system, all life connected
What are the two hormones that regulate stress? How do they affect the immune system?
Cortisol (triggers fight or flight but high levels lead to drop in immune system)
Adrenaline (floods body in minutes but can affect metabolism and immune system)
Describe the real life case of change demonstrated by National Geographic. How did their mission, strategy, structure, and people change?
mission- spreading knowledge --> inspiring others to care about the planet
strategy- pushing magazines --> consumer centric on media platforms
structure- vertical functional --> matrix and more collaborative
people- long term --> new
What is unfair discrimination?
making judgement about individuals based on stereotypes of their demographic groups