Exam 1 Study Guide

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Ch. 1
1. Human relations movement: with the legalization of unions in 1935 management began looking for better ways to manage workers and behavioral scientists started calling for more attention to the human factor. 2. Theory X, Theory Y: Theory X assumptions were pessimistic and negative and typical of how managers traditionally perceived employees, which are a major barrier to productivity improvement and employee well-being. Theory Y assumptions were positive and managers could gain by viewing employees as self-energized, committed, responsible, and creative beings. 3. Total quality management: means that the organization’s culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high-quality products and services. 4. 85 – 15 Rule: Deming’s, when something goes wrong, there is roughly an 85% chance the system (including management, machinery, and rules) is at fault and only 15% chance it’s the employees fault. 5. Contingency Approach: calls for using management concepts and techniques in a situationally appropriate manner, instead of trying to rely on “one best way”. There is no single best style of management. 6. Human Capital: productive potential of an individual’s knowledge and actions. 7. Social Capital: productive potential resulting from strong relationships, goodwill, trust, and cooperative effort, ie good relationship with boss extremely important. 8. Congruence model: using management tools and techniques in a situationally appropriate manner; avoiding the one-best-way approach. Ch 2

1. Observable artifacts: consist of physical manifestation of an organization’s culture, including: acronyms, manner of dress, awards, myths and stories, published lists of values, observable rituals and ceremonies, special parking spaces, decorations, etc. 2. Basic assumptions: are unobservable and represent the core of organizational culture which are so engrained in the organization that they are taken for granted over time and guide behavior, they thus are highly resistant to change. 3. Expoused values: the stated values and norms that are preferred by an organization. 4. Enacted values: represent the values and norms that actually are exhibited or converted into employee behavior. They represent the values that employees ascribe to an organization based on their observations of what occurs on a daily basis. 5. Culture strength:

6. 4 functions of organizational culture: 1. Give members an organizational identity ie Southwest, values employee satisfaction and customer loyalty over corporate profits. 2. Facilitate collective commitment, ie the mission statement of an organization 3. Promote social system stability, ie reflects the extent to which the work environment is perceived as positive and reinforcing, and the extent to which conflict and change are effectively managed 4. Shape behavior by helping members make sense of their surroundings, ie helps employees understand why the organization does what it does and how it intends to accomplish its long-term goals. 7. Competing values framework (CVF): provides a practical way for managers to understand, measure, and change organizational culture. a. Clan culture: internal focus and values flexibility rather than stability and control, employee focused, family-type b. Adhocracy culture: external focus and values flexibility, they are adaptable, creative and fast to respond to the marketplace without centralized power and authority relationships and encourage employees to take risks, think outside the box. c. Market culture: strong external focus and values stability and control, organizations are driven by competition and a strong desire to deliver results and accomplish goals. Major drive towards productivity, profits, and customer...
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