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23 Cards in this Set
- Front
- Back
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What is the common knowledge Effect?
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Commonly held information is more influential on group decisions, compared to unique information.
* Common information impacts the initial preferences of more team members before the meeting * Common information is more likely to be introduced at the meeting, simply because more people have this information * Common information is more likely to be repeated in conversation * As team converges on an answer, there is a norm of not bringing up new facts |
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What is a reason a team might not reach its potential due to Common Knowledge effect?
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* Unique or divergent opinions are not shared
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What is the Fundamental Attribution error?
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* External forces (situation, system) often have a profound effect on behavior and performance
* We typically attribute people's actions and success/failure to their personal qualities * Underestimating the power of the situation i.e. Good Samaritan Situation |
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What is the danger of a narrow perspective? How can teams overcome this?
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* We become overconfident and may miss critical insights into solving a problem.
* Teams and organizations can overcome this problem by bringing together diverse knowledge and perspectives. How well this is done depends on the situation/system. |
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What factors influence whether a compensation package should be contingent on performance?
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* Observability - if effort is easily observable, then better to observe
* Measure-ability of performance - Desired output better be measurable. Its folly to hope for A, while rewarding for B * Employee's Controllability - If effort imperfectly determines measures then it makes effort risky * Perceptions of firms reliability - if measurement is tied imperfectly to compensation, then it makes effort risky |
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What are some obstacles to contingent rewards?
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* Inflated perceptions of Contribution
* Procedural fairness * PFP shifts risks to employees. Because employees are typically risk-averse, the extra incentive doesn't come for free * imperfect links between effort, measurement, and compensation |
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What are the aspects of Intrinsic Motivation?
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* Meaningfulness
** Skill variety (use different skills in work) ** Task identity (see whole process, final product) ** Task significance (make a useful contribution to others) * Responsibility ** Autonomy * Knowledge of results ** Feedback |
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How can extrinsic motivation hurt intrinsic motivation?
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* Signals task must be "work", not "interesting"
* Signals employer doesn't trust work to be carried out without incentive * Shifts thinking to narrow benefit-cost calculations - "Whats in it for me" |
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When should an organization use intrinsic rewards?
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* Intrinsic is especially important if the things you desire cannot be easily measured
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What are the benefits and drawbacks to a Functional Organizational Design?
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* Local knowledge passed up, decisions passed down
* Efficiencies from specialization * Reliance from supervision above * Functional myopia(short sighted) narrow interests and incentives |
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What are the benefits and drawbacks to a Divisional Organizational Design?
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* Improves coordination within division, complicates coordination between divisions
* Fewer economies of scale (more redundancy of effort, less specialization) * More autonomy, profit interests pushed down to the level of division head |
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What are some common issues with Matrix Organizational Structures?
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* Often mistaken as a panacea
* Best when cross-group coordination is vital * Introduces many problems ** Increased coordination costs ** Rivalry between bosses ** Not stable, one boss tends to exert more power, even if informally |
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What are some issues of Centralization vs Decentralization Org Structures?
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* Centralization favors execution
** Efficient execution of a current competency *** Direction from Above, economies of scale *** Low responsiveness, less autonomy *** Deeper specialization *** Better capture of ideas * Decentralization favors execution, exploration ** The ability to experiment and adapt *** Independent units, redundancy of effort *** High responsiveness to changing market *** More autonomy at lower levels *** Broader perspective *** More variation of ideas |
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What is culture? What are the "Norms"?
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* Culture is a shared set of beliefs, values, and norms.
* Norms are socially created expectations about behavior, that characterize what is acceptable & desirable vs what is not. Dictates how people behave when not watched |
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What are some widely recognized and under-appreciated objectives of Culture?
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Widely:
* Identity - via similarity, common fate * Pride - via elitism, in-group favoritism * Enjoyment - SAS ("happy"), SWA ("fun") Under appreciated * Selection - strong cultures facilitate good matches * Coordination - substitutes for formal controls |
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How is culture a selection mechanism?
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* Interviews are based predictors of performance.
* Better: Self-selection based on match between personal preferences and job/organizational attributes (type of work, teachers intrisic, risk-tolerance LE, non-monetary SAS) * Most effective when costly to join ** Anybody can say they fit a certain culture, most credible when they give up something to attain it (ex SWA pays less) |
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How is culture an informal control system?
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* If we agree on socially acceptable behavior when we are working together, we will effectively control eachother
* Internalization - If the employee sufficiently buys into the organizations norms and values, then they will guide their behavior when unobserved. This allows decentralization and autonomy |
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Greatest internalization is achieved by initial commitments that are:
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* Effortful/active
* public * voluntary * made with little or no inducement |
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What are two ways for maintaining culture?
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* Selection
* Socialization - Social influence, commitment and consistency. Ex: hazing, bootcamp |
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What are the benefits and costs of culture?
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Processes that create the internalization of the culture are more expensive initially, but can reduce ongoing monitoring and measurement costs.
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What are some common traps in decision making?
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* We define problems too narrowly (tent example)
* We generate an incomplete list of objectives (internship example) * How we judge the goodness or badness of "X" depends on what it's compared to (Salary depends on peers salary) * We find tradeoffs difficult, so we use simple rules to decide (economist subscriptions) * We systematically underestimate uncertainty(draw inference from small samples, mutual funds, israeli pilot) * We are overconfident |
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What are some remedies to the traps in decision making?
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* Make a habit of asking critical questions
* Use models to decide * Use teams to generate multiple perspectives |
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What are two elements needed for good group decision making?
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* Cognitive diversity (for decision making) and team cohesion (for implementation)
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