criteria and easily found alternatives
Limited review of alternatives – focus alternatives,similar to those already in effect
Satisficing – selecting the first alternative that is “goodAs managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence
A tendency to fixate on initial information and fail to adequately adjust for subsequent information
Seeking out information that reaffirms our past choices and discounting information that contradicts past judgments
The tendency to base judgments on information that is readily available
Staying with a decision even when there is clear evidence that it is wrong
The tendency to believe falsely that we could have accurately predicted the outcome of an event after that outcome is already known
Organizational Constraints on Decision Making
Content theories of motivationMaslow’s hierarchy of needsAlderfer’s ERG Theory - existence-relatedness-growth (ERG)HERZBERG’S MOTIVATING FACTORSHershey & Blanchard’s Situational Leadership Theory Leadership style contingent on follower readiness
Directing - Provide specific instructions and closely supervise performance
Coaching – Explain decisions and provide opportunity for clarification
Supporting – Share ideas and facilitate decision making
Delegating – Hand over responsibility for decisions and implementation
Contingency theory of leadershipSources of individual power3.1 Sources of formal individual power
Legitimate power confers on a manager the legal authority to control and use organizational resources to accomplish organizational goals.
Reward power is the power to give pay raises, promotion, praise, interesting projects, and other rewards to subordinates
Coercive power is the power to give or withhold punishment Punishments range from suspension to demotion, termination, unpleasant job assignments, or even the withholding of praise and goodwill.
Information power is power stemming from access to and control over important organizational facts, data, and decisions
3.2 Sources of Informal personal power
Expert power is informal power that stems from superior ability or expertise in performing a specific task or role.
Employees who gain power and influence in a group because they are liked, admired, and respected are said to possess referent power
Charismatic power is an intense form of referent power stemming from a person’s unique personality, physical strengths, or other capabilities that induce others to believe in and follow that person.
Organizational conflictsDifferentiation in an organization occurs when employees and tasks are split up into different subunits or groups, such as functions and divisions, so they can produce goods and services more effectively
The splitting of the organization into functions or divisions produces conflict, however, because this leads the different subunits to develop different functional orientations and makes status inconsistencies apparent
Task relationships generate conflict between people and groups because organizational tasks are interrelated and affect one another Overlapping authority, task interdependence, and incompatible evaluation systems may stimulate conflict among functions and divisions
Sources of organizational conflicts Scarcity of Resources
Competition for scarce resources produces conflict.
Conflict over the allocation of capital occurs among divisions and between divisions and corporate headquarters
Other organizational groups also have an interest in the way a company allocates scarce resources Shareholders care about the size of their dividends Employees want to maximize their salaries and benefits Managers in competition for scarce resources may fight over whom should get the biggest pay raise
Designing Organizational structureThe Organizational Environment The more quickly forces in the environment are changing, the more likely to decentralize authority and empower lower-level employees to make important operating decisions.
If the environment is stable, an organization is likely to have a hierarchy in which authority is centralized at the top of the organization and an extensive body of rules and regulations that govern how tasks should be performed.
Technology Technology is the combination of skills, knowledge, tools, machines, computers, and equipment used in the design, production, and distribution of goods and services.
The more complicated the technology, the greater is the need for a flexible structure to allow an organization to respond to unexpected situations and provide its employees with the freedom to work out new solutions to the problems they may encounter using it
The more routine the technology, the more appropriate is a formal structure
Small-batch technology is used to produce small quantities of customized, one-of-a-kind products and is based on the skills of people who work together in small groups.
Mass-production technology, is based primarily on the use of automated machines programmed to perform the same operations time and time again.
Continuous-process technology, is almost totally mechanized Products are formed or assembled by automated machines working in sequence and controlled through computers from a central monitoring station
Human Resources and the Employment Relationship The more highly skilled an organization’s work force, or the more a company relies on empowered work teams to find ways to improve performance, an organization is more likely to adopt a flexible, decentralized kind of structure to organize and control its activities
Highly-skilled employees usually desire freedom and autonomy and dislike close supervision
Types of organizational structure A functional structure is an organizational structure composed of all the different job specializations an organization requires to produce its goods or services.