1. Values, Attitude, and Job Satisfaction Value: Preference on a mode of conduct or existence –Terminal value: –Instrumental value: Values across cultures: Hofstede –Power distance –Individualism Vs. collectivism –Masculinity Vs. femininity –Uncertainty avoidance –Long-term Vs. short-term orientation Attitudes: Evaluative statements –Cognitive component –Affective component –Behavioral component Types of attitudes –Organizational commitment: –Job involvement: –Job satisfaction:

2. Personality –Sum total of ways an individual reacts and interacts –Determined by: Major personality attributes –Locus of control: –Machiavellianism: –Self-esteem: –Self-monitoring: –Risk taking –Type A (Vs. Type B) personality: – Models of personality traits –Primary (source) traits –The big five model –Myers-Briggs type indicator

3. Emotions The concept of emotion –Affect: –Emotions: –Moods: Emotional labor –Express organizationally desired emotions during services –Felt emotion: –Displayed emotions: Dimensions of emotion –Variety: –Intensity –Frequency and duration External constraints –Organizational influences –Cultural influences Emotional intelligence –Self-awareness –Self-management –Self-motivation –Empathy –Social skills

4. Perception Factors influencing perception –Perceiver –Target –Situation Person perception –Attribution theory: Attempt to determine whether behavior is internally or externally caused –Selective perception: –Halo effect: –Contrast effects: –Projection: –Stereotyping:

5. Decision Making Rational decision-making process –Define the problem –Identify the decision criteria –Allocate weights to the criteria –Develop the alternatives –Select the best alternative Assumptions of the rational model –Problem clarity –Known options –Clear preferences –Constant preferences –No time or cost constraints –Maximum payoff Creativity in decision making –Three-component model Organizational decision making –Bounded rationality: –Intuitive decision making: –Problem identification and alternative development –Heuristic –Escalation of commitment

6. Diverse Cognitive Styles Role of individual differences Cognitive styles –Way a person approaches and attempts to solve problems Myers-Briggs Type Indicator (MBTI) –Carl Jung’s approach to personality (Psychological Type) –Popular approach in practice –Emphasis on the things people pay attention to and ways they make decision -> Like managerial jobs –Making use of individual differences in organizations Cognitive styles is far from an exact science –A small part of personality –Correlation between types and job performance is not stable Cognitive diversity adds value to an organization and increases the likelihood of innovative solutions

7. Personal Work Styles Four major things everyone has to do each day –Meeting with others: establishing relationships –Generating information –Making decisions –Choosing priorities: getting more facts/ideas or making decisions

8. Implications of Work Preferences Managerial style and decision making –Idealistic (NF): –Theoretical (NT): –Practical (ST): –Social (SF): Organization structures –People perceive organizations in different ways –Reinforce their perception by creating organizational structures that will leave them free to work in the way they most prefer Approaches to change –Sensation type: –Intuitive type: –Feeling type: –Thinking type: Creativity and innovation: All types can be creative in different ways –ST (Practicality) vs. NT (Theory) –SF (Social relations) vs. NF (Idealism) Career development and training –Shadow:

9. Carter Racing

10. Scenarios in Carter Racing

11. Expected Values of the Scenarios Expected Value = Sum of Net Income x Probability of Scenario

12. Carter Racing and the Challenger Launch NASA was operating under severe budget pressure - the shuttle program’s success vital to future congressional support

13. Managing Away Bad Habits - Waldroop & Butler Hero –Get more done in a day than anyone else does in a week => Meritocrat –Believe the best ideas will always win => Bulldozer –You should do onto others before they do unto you - plus 10% => Pessimist –Think every change is ill advised => Rebel –Protest against the system, but rarely take action => Home run hitter –Tend to strike out a lot =>

14. Hidden Traps in Decision Making - Hammond, Keeney, & Raiffa Anchoring trap –Give disproportionate weight to the first information => Status trap –A strong bias toward alternatives that perpetuate the status quo => Sunk-cost trap –Make choices that justify past choices => Confirming-evidence trap –Seek out information that support our point of view => Framing trap –The way a problem is framed influences the choices: e.g., gains vs. losses, reference points => Estimating and forecasting trap –Overconfidence, prudence, and recallability =>