HBO REVIEWER 17.

Culture is the set of shared values, often taken

for granted, that help people in a group,
CHAPTER 1
organization, or society understand which
1. Organizational behavior is the study of human actions are considered acceptable and which are
behavior in organizational settings, the interface deemed unacceptable.
between human behavior and the organization,
2 PRIMARY DIMENSION (Geert Hofstede)
and the organization itself.
2. Planning is the process of determining an 18. Individualism exists to the extent that people in
organization’s desired future position and the a culture define themselves primarily as
best means of getting there. individuals rather than as part of one or more
3. Organizing is the process of designing jobs, groups or organizations.
grouping jobs into units, and establishing 19. Collectivism is characterized by tight social
patterns of authority between jobs and units. frameworks in which people tend to base their
4. Leading is the process of getting the identities on the group or organization to which
organization’s members to work together they belong
toward the organization’s goals.
5. Controlling is the process of monitoring and
correcting the actions of the organization and its 20. Power distance, which can also be called
members to keep them directed toward their orientation to authority, is the extent to which
goals. people accept as normal an unequal distribution
of power.
3 BASIC MANAGERIAL ROLE 21. Uncertainty avoidance, which can also be called
preference for stability, is the extent to which
6. Interpersonal roles are the figurehead, the people feel threatened by unknown situations
leader, and the liaison. and prefer to be in clear and unambiguous
o Figurehead situations.
o Leader 22. Masculinity, which might be more accurately
o Liaison called assertiveness or materialism, is the extent
7. Informational roles are the monitor, the to which the dominant values in a society
disseminator, and the spokesperson. emphasize aggressiveness and the acquisition of
o Monitor money and other possessions as opposed to
o Disseminator concern for people, relationships among people,
o Spokesperson and overall quality of life.
8. Decision-making roles are the entrepreneur, the 23. Long-term values include focusing on the future,
disturbance handler, the resource allocator, and working on projects that have a distant payoff,
the negotiator. persistence, and thrift
o Entrepreneur 24. Short-term values are more oriented toward the
o Disturbance handler past and the present and include respect for
o Resource allocator traditions and social obligations.
o Negotiator 25. Workforce diversity refers to the important
similarities and differences among the
4 CRITICAL MANAGERIAL SKILL employees of organizations.
26. Stereotypes are generalizations about a person
9. Technical skills are the skills necessary to or a group of persons based on certain
accomplish specific tasks within the organization. characteristics or traits.
10. The manager uses interpersonal skills to 27. Prejudices are judgments about others that
communicate with, understand, and motivate reinforce beliefs about superiority and
individuals and groups. inferiority.
11. The manager uses conceptual skills to think in 28. Primary dimensions of diversity are those
the abstract. factors that are either inborn or exert
12. The manager uses diagnostic skills to extraordinary influence on early socialization.
understand cause and-effect relationships and to 29. Secondary dimensions of diversity include
recognize the optimal solutions to problems. factors that matter to us as individuals and that
to some extent define us to others; however,
they may be less permanent than primary
13. A system is a set of interrelated elements dimensions and can be adapted or changed.
functioning as a whole. 30. Assimilation is the process through which
14. The situational perspective suggests that in members of a minority group are socialized into
most organizations, situations and outcomes are learning the ways of the majority group.
influenced by other variables 31. Valuing diversity means putting an end to the
15. Interactionalism suggests that individuals and assumption that everyone who is not a member
situations interact continuously to determine of the dominant group must assimilate.
individuals’ behavior. 32. Technology refers to the methods used to create
CHAPTER 2 products, including both physical goods and
intangible services.
16. Globalization is the internationalization of
business activities and the shift toward an
integrated global economy.
33. Manufacturing is a form of business that 53. The Myers-Briggs Type Indicator (MBTI) is a
combines and transforms resources into tangible popular questionnaire that some organizations
outcomes that are then sold to others. use to assess personality types.
34. A service organization is one that transforms 54. Emotional intelligence, or EQ, is the extent to
resources into an intangible output and creates which people are self-aware, can manage their
time or place utility for its customers. emotions, can motivate themselves, express
35. Ethics are a person’s beliefs regarding what is empathy for others, and possess social skills.
right or wrong in a given situation. o Self-awareness- capacity for being
36. Corporate governance refers to the oversight of aware of how he or she is feeling
a public corporation by its board of directors. o Managing emotions- capacities to
37. Knowledge workers are those employees who balance anxiety, fear, and anger
add value in an organization simply because of o Motivating oneself- ability to remain
what they know. optimistic and to continue striving in
38. Outsourcing is the practice of hiring other firms the face of setbacks, barriers, and
to do work previously performed by the failure.
organization itself; when this work is moved o Empathy- ability to understand how
overseas, it is often called offshoring. others are feeling
39. A contingent worker is a person who works for o Social skill- ability to get along with
an organization on something other than a others and to establish positive
permanent or full-time basis. relationships.
40. A tiered workforce exists when one group of an 55. A person’s locus of control is the extent to which
organization’s workforce has a contractual he believes his circumstances are a function of
arrangement with the organization objectively either his own actions or of external factors
different from another group performing the beyond his control
same jobs. 56. A person’s self-efficacy is that person’s beliefs
CHAPTER 3 about his or her capabilities to perform a task.
57. Authoritarianism is the belief that power and
41. A psychological contract is a person’s set of status differences are appropriate within
expectations regarding what he or she will hierarchical social systems such as organizations.
contribute to an organization and what the 58. People who possess the personality trait of
organization, in return, will provide to the Machiavellianism behave to gain power and
individual. control the behavior of others.
42. An individual’s contributions to an organization 59. A person’s self-esteem is the extent to which
include such things as effort, skills, ability, time, that person believes he or she is a worthwhile
and loyalty. and deserving individual.
43. Organizations provide inducements to 60. A person’s risk propensity is the degree to which
individuals in the form of tangible and intangible he or she is willing to take chances and make
rewards. risky decisions.
44. Person-job fit is the extent to which the 61. Attitudes are a person’s complexes of beliefs
contributions made by the individual match the and feelings about specific ideas, situations, or
inducements offered by the organization. other people.
45. Individual differences are personal attributes 62. A person’s cognitions constitute the knowledge
that vary from one person to another. a person presumes to have about something.
46. Personality is the relatively stable set of 63. A person’s affect is his or her feelings toward
psychological attributes that distinguish one something.
person from another. 64. An intention is a component of an attitude that
guides a person’s behavior.
65. Cognitive dissonance is the anxiety a person
BIG FIVE PERSONALITY TRAITS
experiences when simultaneously possessing
47. The “big five” personality traits are a set of two sets of knowledge or perceptions that are
fundamental traits that are especially relevant to contradictory or incongruent.
organizations. 66. Job satisfaction is the extent to which a person is
48. Agreeableness is the ability to get along with gratified or fulfilled by his or her work.
others. 67. Organizational commitment is a person’s
49. Conscientiousness refers to the number of goals identification with and attachment to an
on which a person focuses. organization.
50. Neuroticism is characterized by a person’s 68. People who possess positive affectivity are
tendency to experience unpleasant emotions upbeat and optimistic, have an overall sense of
such as anger, anxiety, depression, and feelings well-being, and see things in a positive light.
of vulnerability. 69. People characterized by negative affectivity are
51. Extraversion is the quality of being comfortable generally downbeat and pessimistic, see things
with relationships; the opposite extreme, in a negative way, and seem to be in a bad
introversion, is characterized by more social mood.
discomfort. 70. Perception is the set of processes by which an
52. Openness is the capacity to entertain new ideas individual becomes aware of and interprets
and to change as a result of new information. information about the environment.
71. Selective perception is the process of screening 95. The process-based perspectives on motivation
out information that we are uncomfortable with focus on how people behave in their efforts to
or that contradicts our beliefs. satisfy their needs.
72. Stereotyping is the process of categorizing or 96. Equity theory focuses on people’s desire to be
labeling people on the basis of a single attribute. treated with what they perceive as equity and to
73. Attribution theory suggests that we attribute avoid perceived inequity.
causes to behavior based on our observations of 97. Equity is the belief that we are being treated
certain characteristics of that behavior. fairly in relation to others; inequity is the belief
74. Workplace behavior is a pattern of action by the that we are being treated unfairly in relation to
members of an organization that directly or others.
indirectly influences organizational effectiveness. 98. Expectancy theory suggests that people are
75. Performance behaviors are all of the total set of motivated by how much they want something
work-related behaviors that the organization and the likelihood they perceive of getting it.
expects the individual to display. 99. Effort-to-performance expectancy is a person’s
76. Dysfunctional behaviors are those that detract perception of the probability that effort will lead
from organizational performance. to performance.
77. Absenteeism occurs when an individual does not 100. Performanceto-outcome expectancy is the
show up for work. individual’s perception of the probability that
78. Turnover occurs when people quit their jobs. performance will lead to certain outcomes.
79. A person’s degree of organizational citizenship is 101. An outcome is anything that results from
the extent to which his or her behavior makes a performing a particular behavior.
positive overall contribution to the organization. 102. Valence is the degree of attractiveness or
unattractiveness a particular outcome has for a
CHAPTER 4 person.
103. Learning is a relatively permanent change in
80. Motivation is the set of forces that leads people behavior or behavioral potential resulting from
to behave in particular ways. direct or indirect experience.
81. P = M + A + E where P -performance, M- 104. Classical conditioning is a simple form of
motivation, A-ability, and E-environment. learning that links a conditioned response with
82. A need is anything an individual requires or an unconditioned stimulus.
wants. 105. Reinforcement theory is based on the idea that
83. The scientific management approach to behavior is a function of its consequences.
motivation assumes that employees are 106. Reinforcements are the consequences of
motivated by money. behavior.
84. The human relations approach to motivation 107. Positive reinforcement is a reward or other
suggests that favorable employee attitudes desirable consequence that a person receives
result in motivation to work hard. after exhibiting behavior.
85. The human resource approach to motivation 108. Avoidance, or negative reinforcement, is the
assumes that people want to contribute and are opportunity to avoid or escape from an
able to make genuine contributions. unpleasant circumstance after exhibiting
86. Need-based theories of motivation assume that behavior.
need deficiencies cause behavior. 109. Extinction decreases the frequency of behavior
87. Maslow’s hierarchy of needs theory assumes by eliminating a reward or desirable
that human needs are arranged in a hierarchy of consequence that follows that behavior.
importance. 110. Punishment is an unpleasant, or aversive,
o Physiological needs consequence that results from behavior
o Security needs 111. Schedules of reinforcement indicate when or
o Belongingness needs how often managers should reinforce certain
o Esteem needs behaviors.
o Self-actualization needs 112. With continuous reinforcement, behavior is
88. The ERG theory describes existence, relatedness, rewarded every time it occurs.
and growth needs. (Clayton Alderfer) 113. Fixed-interval reinforcement provides
89. The dual-structure theory identifies motivation reinforcement on a fixed time schedule.
factors, which affect satisfaction, and hygiene 114. Variable-interval reinforcement varies the
factors, which determine dissatisfaction. amount of time between reinforcements
(Frederick Herzberg) 115. Fixed-ratio reinforcement provides
90. Motivation factors are intrinsic to the work itself reinforcement after a fixed number of behaviors.
and include factors such as achievement and 116. Variable-ratio reinforcement varies the number
recognition. of behaviors between reinforcements.
91. Hygiene factors are extrinsic to the work itself 117. Social learning occurs when people observe the
and include factors such as pay and job security. behaviors of others, recognize their
92. The need for achievement is the desire to consequences, and alter their own behavior as a
accomplish a task or goal more effectively than result.
was done in the past. 118. Organizational behavior modification, or OB
93. The need for affiliation is the need for human mod, is the application of reinforcement theory
companionship. to people in organizational settings.
94. The need for power is the desire to control the
resources in one’s environment.
 CHAPTER 5 141. A performance management system (PMS)
comprises the processes and activities involved
119. Work design is an important method manager in performance appraisals.
can use to enhance employee performance. 142. Providing job performance is the primary use of
120. Job design is how organizations define and appraisal information
structure jobs. 143. Performance appraisal information can indicate
121. Job specialization, as advocated by scientific that an employee is ready for promotion or
management, can help improve efficiency, but it needs additional training to gain experience.
can also promote monotony and boredom. 144. 360-degree feedback is a performance
122. Job rotation is systematically moving workers management system in which people receive
from one job to another in an attempt to performance feedback from those on all sides of
minimize monotony and boredom. them in the organization—their boss, their
123. Job enlargement involves giving workers more colleagues and peers, and their own
tasks to perform. subordinates.
124. Job enrichment entails giving workers more 145. Frequency of the Appraisal another important
tasks to perform and more control over how to issue is the frequency of appraisals.
perform them. 146. Measurement method provides the information
125. The job characteristics theory identifies five managers use to make decisions about salary
motivational properties of tasks and three adjustment, promotion, transfer, training, and
critical psychological states of people. discipline.
126. Participation entails giving employees a voice in 147. Comparative methods evaluate two or more
making decisions about their own work. employees by comparing them with each other
127. Empowerment is the process of enabling on various performance dimensions.
workers to set their own work goals, make 148. The balanced scorecard, or BSC, is a relatively
decisions, and solve problems within their structured performance management technique
sphere of responsibility and authority. that identifies financial and nonfinancial
128. In a compressed work schedule, employees performance measures and organizes them into
work a full forty-hour week in fewer than the a single model
traditional five days. 149. The reward system consists of all organizational
129. An extended work schedule is one that requires components, including people, processes, rules
relatively long periods of work followed by and procedures, and decision-making activities,
relatively long periods of paid time off. involved in allocating compensation and benefits
130. Flexible work schedules, or flextime, give to employees in exchange for their contributions
employees more personal control over the hours to the organization
they work each day. 150. The surface value of a reward to an employee is
131. In job sharing, two or more part-time employees its objective meaning or worth.
share one full-time job. 151. The symbolic value of a reward to an employee
132. Telecommuting is a work arrangement in which is its subjective and personal meaning or worth.
employees spend part of their time working off- 152. An individual’s compensation package is the
site. total array of money (wages, salary,
commission), incentives, benefits, perquisites,
CHAPTER 6 and awards provided by the organization.
153. Incentive systems are plans in which employees
133. A goal is a desirable objective. can earn additional compensation in return for
134. Our self-efficacy is the extent to which we certain types of performance.
believe we can accomplish our goals even if we 154. Indirect compensation, or benefits, are an
failed to do so in the past important element in most compensation plans.
135. Goal difficulty is the extent to which a goal is 155. Perquisites are special privileges awarded to
challenging and requires effort selected members of an organization, usually top
136. Goal specificity is the clarity and precision of a managers.
goal. 156. A flexible reward system allows employees to
137. Goal acceptance is the extent to which a person choose the combination of benefits that best
accepts a goal as his or her own. suits their needs.
138. Goal commitment is the extent to which a 157. Participative Pay Systems- In keeping with the
person is personally interested in reaching a current trend toward worker involvement in
goal. organizational decision making, employee
139. Management by objectives (MBO) is a participation in the pay process is also
collaborative goalsetting process through which increasing. A participative pay system may
organizational goals cascade down throughout involve the employee in the system’s design,
the organization. administration, or both
140. Performance measurement, or performance 158. Pay Secrecy means that no information is
appraisal, is the process by which someone (1) available to employees regarding other
evaluates an employee’s work behaviors by employees’ salaries, average or percentage
measurement and comparison with previously raises, or salary ranges.
established standards, (2) documents the results, 159. Expatriate compensation is yet another
and (3) communicates the results to the important issue in managing reward systems.
employee.
 CHAPTER 7 185. Another direct organizational consequence of
employee stress relates to attitudes. As we just
160. Stress is a person’s adaptive response to a noted, job satisfaction, morale, and
stimulus that places excessive psychological or organizational commitment can all suffer, along
physical demands on that person. with motivation to perform at high levels.
161. The general adaptation syndrome (GAS) 186. Burnout is a general feeling of exhaustion that
identifies three stages of response to a stressor: develops when an individual simultaneously
alarm, resistance, and exhaustion. experiences too much pressure and has too few
162. Eustress is the pleasurable stress that sources of satisfaction.
accompanies positive events. 187. Work-life relationships are interrelationships
163. Distress is the unpleasant stress that between a person’s work life and personal life.
accompanies negative events.
164. Type A people are extremely competitive, highly CHAPTER 8
committed to work, and have a strong sense of
time urgency. 188. Decision making is the process of choosing from
165. Type B people are less competitive, less among several alternatives.
committed to work, and have a weaker sense of 189. Problem solving is finding the answer to a
time urgency. question; it is also a form of decision making in
166. Hardiness is a person’s ability to cope with which the issue is unique and alternatives must
stress. be developed and evaluated without the aid of a
167. Optimism is the extent to which a person sees programmed decision rule.
life in relatively positive or negative terms. 190. A programmed decision is a decision that recurs
168. Task demands are stressors associated with the often enough for a decision rule to be
specific job a person performs. developed.
169. Physical demands are stressors associated with 191. A decision rule is a statement that tells a
the job’s physical setting, such as the adequacy decision maker which alternative to choose
of temperature and lighting and the physical based on the characteristics of the decision
requirements the job makes on the employee. situation.
170. Role demands are stressors associated with the 192. A non-programmed decision is a decision that
role a person is expected to play. recurs infrequently and for which there is no
171. A role is a set of expected behaviors associated previously established decision rule.
with a particular position in a group or 193. Under the condition of certainty, the manager
organization. knows what the outcomes of each alternative of
172. Role ambiguity arises when a role is unclear. a given action will be but has enough
173. Role conflict occurs when the messages and information to estimate the probabilities of
cues constituting a role are clear but various outcomes.
contradictory or mutually exclusive. 194. Under a condition of risk, the decision maker
174. Role overload occurs when expectations for the cannot know with certainty what the outcome of
role exceed the individual’s capabilities. a given action will be but has enough
175. Interpersonal demands are stressors associated information to estimate the probabilities of
with group pressures, leadership, and various outcomes.
personality conflicts. 195. Under the condition of uncertainty, the decision
176. A life change is any meaningful change in a maker lacks enough information to estimate the
person’s personal or work situation; too many probability of possible outcomes.
life changes over a short period of time can lead 196. The rational decision making approach is a
to health problems. systematic, step-by step process for making
177. A life trauma is any upheaval in an individual’s decisions.
life that alters his or her attitudes, emotions, or STEPS:
behaviors. o State the Situational Goal
178. Individual consequences of stress, then, are the o Identify the Problem
outcomes that mainly affect the individual. o Determine the Decision Type
179. Behavioral consequences of stress may harm o Generate Alternatives
the person under stress or others. o Evaluate Alternatives
180. Psychological consequences of stress relate to a o Choose an Alternative
person’s mental health and well-being. o Implement the Plan
181. Medical consequences of stress affect a person’s o Control: Measure and Adjust
physical well-being. o Strengths and Weaknesses of the
182. Other results of stress have even more direct Rational Approach
consequences for organizations. These include 197. Contingency plans are alternative actions to take
decline in performance, withdrawal, and if the primary course of action is unexpectedly
negative changes in attitudes. disrupted or rendered inappropriate.
183. One clear organizational consequence of too 198. Cognitive dissonance is doubt about a choice
much stress is a decline in performance. that has already been made.
184. Withdrawal behaviors also can result from 199. Evidence-based management (EBM) is the
stress. For the organization, the two most commitment to identify and utilize the best
significant forms of withdrawal behavior are theory and data available to make decisions.
absenteeism and quitting. 200. The administrative model of decision making
argues that managers use bounded rationality,
 rules of thumb, sub optimizing, and satisficing in
making decisions.
201. Bounded rationality is the idea that decision
makers cannot deal with information about all
the aspects and alternatives pertaining to a
problem and therefore choose to tackle some
meaningful subset of it.
202. Sub-optimizing is knowingly accepting less than
the best possible outcome to avoid unintended
negative effects on other aspects of the
organization.
203. Satisficing is examining alternatives only until a
solution that meets minimal requirements is
found.
204. A coalition is an informal alliance of individuals
or groups formed to achieve a common goal.
205. Intuition is innate belief about something
without conscious consideration.
206. Escalation of commitment occurs when a
decision maker stays with a decision even when
it appears to be wrong.
207. Risk propensity is the extent to which a decision
maker is willing to gamble in making a decision.
208. Ethics are a person’s beliefs about what
constitutes right and wrong behavior.
209. Prospect theory argues that when people make
decisions under a condition of risk they are more
motivated to avoid losses than they are to seek
gains.
210. The integrated approach to decision making
combines the steps of the rational approach with
the conditions in the behavioral approach to
create a more realistic approach for making
decisions in organizations.
211. Creativity is a person’s ability to generate new
ideas or to conceive of new perspectives on
existing ideas.

Creative Process (Four Stages)

212. Preparation, usually the first stage in the
creative process, includes education and formal
training.
213. Incubation is the stage of less intense conscious
concentration during which a creative person
lets the knowledge and ideas acquired during
preparation mature and develop.
214. Insight is the stage in the creative process in
which all the scattered thoughts and ideas that
were maturing during incubation come together
to produce a breakthrough.
215. In verification, the final stage of the creative
process, the validity or truthfulness of the insight
is determined.