ORGANIZATIONAL BEHAVIOR KEY TERMS
; What is the definition of organizational behavior?
1. the behavior and nature of people within organizations
2. the behavior and nature of organizations within their environments.
; What is motivation?
The inner force that drives individuals to accomplish personal and organizational
1. Physiological Needs
2. Safety and Security
3. Love and Belonging
Know the difference between linear and non-linear.
Know Douglas MacGregor and Theory X vs. Theory Y.
Intrinsic Rewards- subjective, intangible, recognition, satisfaction, achievement.
Extrinsic Rewards- objective, tangible, money, time off.
Know the difference between Intrinsic vs. Extrinsic and which is better for long-term employee motivation.
Vroom’s Theory- Valence x Expectancy x Instrumentality=Motivation Forces
If I perceive that any one of these is true:
1. My increased effort will not increase my performance
2. My increased performance will not increase my rewards
3. I don’t value the rewards on offer
...then Vroom’s expectancy theory suggests that this individual will not be motivated.
Goals- Your thinking skills can be considered directional skills because they set the direction for your organization. They provide vision, purpose, and goal definition. These are your eyes and ears to the future, allowing you to recognize the need for change, when to make it, how to implement it, and how to manage it.
Six Steps of Goal Setting
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Micro-management- places no trust in others, where as followingup determines if the things that need to get done are in fact getting done.
The motivation of each employee is different. It depends on many things: family, savings, goals, debts, desire for luxury goods, job profession, and many more.
Leadership- is a process whereby an individual influences a group of individuals to achieve a common goal.
Trait Theory of Leadership vs. Process Theory of Leadership
Ethics- is a branch of philosophy that addresses questions about morality—that is,
concepts such as good and bad, noble and ignoble, right and wrong, justice, and virtue.
If I am a boss, does that make me a leader? NO
Although your position as a boss gives you the authority to accomplish certain tasks and objectives in the organization (called Assigned Leadership), this power does not make you a leader, it simply makes you the boss.
Office politics- is the use of one's individual or assigned power within an employing organization for the purpose of obtaining advantages beyond one's legitimate authority. Peter Panda wants you to study hard! Page 2
 Nepotism- is favoritism granted to relatives or friends, without regard to their merit.The word nepotism is from the Latin word nepos (meaning "nephew" or "grandchild").
Authoritarian — strong on tasks, weak on people skills
Country Club — strong on people skills, weak on tasks
Impoverished — weak on tasks, weak on people skills
Team Leader — strong on tasks, strong on people skills
Trust and confidence in top leadership is the single most reliable predictor of employee satisfaction in an organization.
Four Factors of Leadership
Environment- every organization has a particular work environment, which dictates to a considerable degree how its leaders respond to problems and opportunities. This is brought about by its heritage of past leaders and its present leaders.
Organizational Values- Values reflect the concern the organization has for its employees, customers, investors, vendors, and surrounding community. These values define the manner in how business will be conducted.
Concepts- define what products or services the organization will offer and the methods and processes for conducting business.
Roles- are the positions that are defined by a set of expectations about behavior of any job incumbent. Each role has a set of tasks and responsibilities that may or may not be spelled out.
Culture- it is a combination of the founders, past leadership, current leadership, crises, events, history, and size.
Norms- the rules that a group uses for appropriate and inappropriate values, beliefs, attitudes and behaviors. These rules may be explicit or implicit. Failure to follow the rules can result in severe punishments, including exclusion from the group.
Climate-is the feel of the organization, the individual and shared perceptions and attitudes of the organization's members. While the culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules, Peter Panda wants you to study hard! Page 3
traditions, and customs; climate is a short-term phenomenon created by the current leadership.
Coercive Power —power that is based on fear. A person with coercive power can make things difficult for people. These are the persons that you want to avoid getting angry. Employees working under coercive managers are unlikely to be committed, and more likely to resist the manager.
Reward Power — Compliance achieved based on the ability to distribute rewards that others view as valuable. Able to give special benefits or rewards to people. You might find it advantageous to trade favors with him or her.
Legitimate Power — the power a person receives as a result of his or her position in the formal hierarchy of an organization. The person has the right, considering his or her position and your job responsibilities.
Expert Power — influence based on special skills or knowledge. This person earns respect by experience and knowledge. Expert power is the most strongly and consistently related to effective employee performance.
Referent Power — influence based on possession by an individual or desirable resources or personal traits. You like the person and enjoy doing things for him or her.
Entrepreneur- a person with a new idea who is responsible both for the risks and the outcome.
Two types of entrepreneurs:
1. Research-based entrepreneurs.
2. Imitative entrepreneurs.
Status Quo- the way things are, including the way people typically react.
Confidentiality Agreement- a confidentiality agreement is a written legal contract between an employer and employee.
Downsizing- to reduce the number of employees in an organization. Downsizing or lay-offs reduce the size of a work force.
Feedback- is information to another person about the impact of their actions on a person, situation, or activity. Effective feedback is specific, timely, and focuses on a specific behavior.
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Wage garnishment- is a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.
Mission Statement- is a precise description of what an organization does. It should describe the business the organization is in. It is a definition of “why” the organization exists currently.
Networking- is building a web of interpersonal relationships for mutually beneficial purposes such as business referrals, customer acquisition, complementary product offerings, and sharing information.
Sexual Harassment- when an employee makes unwanted advanced against another employee, including: unwanted touching, staring, and anything else that makes an empoloyee feel uncomfortable.
Unemployment compensation- was created by the Social Security Act of 1935 to
protect workers who became unemployed through no fault of their own. The federal government provides incentives and guidelines to the states about unemployment compensation.
Values- are traits or qualities that are considered worthwhile; they represent an individual’s highest priorities and deeply held driving forces. Values include qualities such as integrity, resourcefulness, achievement, and honesty.
Workers' compensation- laws make certain that an employee who is injured as a result of an accident on the job or who contracts a disease as a result of performing his or her job, will receive compensation and medical benefits.
Yuppies- are young, upwardly mobile, urban professionals. Yuppies are young, successful professionals focused on making money and buying expensive items such as cars, up-to-the- minute cooking gadgets, electronic gear, and chef toys.
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