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business
organizational behavior

Questions and Answers of Organizational Behavior

What are the potential outcomes of having lower level employees participate in the MBO process?
How is Likert's causal, intervening, and end result variables useful in discussing and thinking about effectiveness?
a. What are the causal variables in this situation? b. What are the intervening variables in this situation? c. What is the output or potential output variables in this situation? d. What is "the
How ready are the following people in terms of the tasks discussed? Joe Evans stops at Mandy Simms's desk. He hands Mandy a manila envelope and says, "This is the raw data we've gathered for the
Discuss some methods for determining the Performance Readiness® of a follower in a given task.
Discuss the main concepts of Situational Leadership®.
a. List behavioral indicators demonstrating Cami's ABILITY to train the trainers: Knowledge (knows how to do) Experience (has done before) Skill (is doing) b. List behavioral indicators
a. What is the group's performance readiness level for the task of production in the graphic design department (R1, R2, R3, or R4)? b. What leadership style would best match the group's performance
a. What is the group's Performance Readiness® level for the task of doing market research (R1, R2, R3, or R4)? b. What leadership style would best match the group's Performance Readiness® level
a. What is Stefan's Performance Readiness® level for working with the black box technology (R1, R2, R3, or R4)? Why? b. What is Angie's Performance Readiness® level for working with the black box
a. What is Cami's Performance Readiness® for the task of switching from the old security system to the new black box technology (R1, R2, R3, or R4)? b. What leadership style should be used to match
a. What is Lashonda's Performance Readiness® for running the new customer service survey (R1, R2, R3, or R4)? b. What leadership style should be used to match Lashonda's Performance Readiness®
What is the value of understanding James's Performance Readiness® in this case? James McNeil started with Listo Systems as a sales agent. Over the years, James worked his way up to a supervisory
What is Julene's Performance Readiness® level for the task of encoding (R1, R2, R3, or R4)? Which leadership style was Kelly using (S1, S2, S3, or S4)? Why might Kelly have been using this
a. What are some of Yuki's actions that indicate task behavior? b. Is Yuki's level of task behavior high or low? c. Which of Yuki's actions indicated relationship behavior? d. Is Yuki's level of
What is the difference between personal power and position power?
Why does a person sell up and manage down?
Is there a best type of power?
a. Based on information from previous exercises, what types of power does Cami have which she can utilize given her current situation? b. How can she use these power bases to help influence the
The effective and ineffective cycles are similar in some ways, although they have opposite effects. What are the similarities? What are the effects of each? Share your personal experiences with
What must a manager determine about a subordinate before deciding to move the subordinate into the developmental cycle? How can a manager determine that this action should be taken?
a. What type of communication do you need to maintain with Calista? b. If you had to schedule potential meeting times with her in advance, how often would you be willing to meet and discuss her
How can a leader recognize a regressive cycle, and what should the response be?
If the leader has been dealing with the follower appropriately by using an S4 leadership style and the follower suddenly begins performing at Performance Readiness® level R3, what should the leader
a. How does this differ from her "usual" performance? b. What style will you use to start the conversation? c. How will you know from Nikki if that style is working? d. What type of follow up will
a. What do you prepare? What are the data points now? b. What style of leadership are you going to use? If that does not work, what will you switch to? c. How can Nikki "prove" herself to you and get
If you completed the LEAD Self instrument, would you be able to assess your leader's style? Why, or why not?
What is a wide style range? If you have a wide style range, are you necessarily a good situational manager? Why, or why not?
Provide four examples of powerless verbal communication.
What are the four basic functions of nonverbal cues? Please provide examples of each.
What are the guidelines that Carl Rogers proposed to perfect the technique of active listening?
How many different generations of employees are now working together in many workplaces today? Give an example of one type of potential miscommunication could take place as a result of such
a. Discuss how Melissa's communication style impacted the performance of the Italian partners. b. What do you think were the primary sources of information prior to Melissa's visit? c. What do you
What are Dumaine's four guidelines for the most effective use of teams?
Explain how Performance Readiness® can be applied to teams. Provide examples.
What does a team Performance Readiness® look like at an R1, R2, R3, and R4?
a. What do you say? b. Elizabeth has years of experience and has offered objective perspectives in the past, and she supports employee development while maintaining good performance on the job. You
Discuss the seven factors of performance.
Explain the three steps to implementing performance management.
What are some pros and cons to 360-degree feedback?
Axis Inc. has instituted new "flexible" guidelines around appropriate attire, including piercings and tattoos. Along with all her colleagues, Rebecca Que, an Assistant Manager at Axis, received a
Situational Leadership® provides a simple and logical framework with four basic decision-making styles-authoritative, consultative, facilitative, and delegative. Briefly describe two of these styles
Briefly explain three of the five fundamentally similar set of commitments that managers share.
a. Describe which type of decision making you think Bennett engages in most often. b. Explain how Bennett's behaviors show various commitments: to the customer, organization, co-workers, and the
Many economists consider behavioral economics to be an affront to the field of economics for its focus on irrational behavior. Others consider anomalies to be so rare as to make the study of
Why has behavioral economics come to be so heavily associated with experimental economics? Why might econometric approaches to behavioral economics be so challenging?
Describe the difference among rational, procedural rational and behavioral models of economic decisions.
This chapter has presented some evidence that consumers derive utility from getting a good deal. Have you observed evidence that people purchase goods when it is not necessarily in their best
If retailers and manufacturers are aware that consumers derive utility from "getting a good deal," they may be able to take advantage of this to increase their own profits. Can you find evidence that
Policy makers concerned with the increasing number of overweight consumers have long complained about the pricing of sodas at fast food restaurants. In most cases, a small soda (usually around 16
Suppose a telephone company had two kinds of customers. One had a utility function that could be represented as u1(x) = 5x - x2 - 5(x), where x is the total amount of time spent on the phone and k is
Further, suppose that the cost function for providing minutes on the phone is given by c(x) = x2. The profit function is given by π = k(x*) - C(x*), where x* is the optimal consumption given the
Consider a high school student who is given $3 every school day by her parents as "lunch money." The student works a part time job after school, earning a small amount of "spending cash." In addition
Suppose you manage a team of employees who manufacture widgets. You know that profits depend heavily on the number of widgets produced and on the quality of those widgets. You decide to induce better
Suppose you are a government regulator who is concerned with the disposition effect and its potential impact on wealth creation. What types of policies could be implemented to reduce the sale of
You are considering buying gifts for a pair of friends. Both truly enjoy video gaming. However, both have reduced their budget on these items because of the temptation that they can cause. Dana is
Suppose Akirahas two sources of income. Anticipated income, y1 is spent on healthy food, represented by x1, and clothing, x2. Unanticipated income, y2 is spent on dessert items, x3. Suppose the value
Consider the problem of gym attendance as presented in this chapter, where Jamie perceives the value of attending the gym to bewhere xn is the monetary value to Jamie of experiencing the nth single
It is generally found that those who are willing to change jobs earn greater amounts of money. Essentially, these people apply for alternative jobs on a regular basis and change jobs when they
A novelty store is worried that customers may be unfamiliar with the items they sell and thus reluctant to purchase. The owner is considering either using in-store demonstrations of the objects they
Consider again the problem of determining the maximum amount one is willing to pay to obtain a good versus the amount willing to accept to part with a good. Consider Terry, who behaves according to
Now suppose Terry displays constant additive loss aversion, withwithComplete the same exercise as in question 4. How do these answers differ from those in question 4? Why?
Consider that you are preparing to sell some antique items at auction. How might you design the auction so as to receive the highest possible sale price? What sorts of behavioral anomalies will be
Consider now that you are preparing to purchase an item at auction for your personal use. What factors should you consider in forming your bid? What behavioral tendencies should you try to avoid?
Building contractors bidding on a building project often calculate their anticipated costs, add some percentage for profit, and then double this number and submit it as a bid. Similar rules of thumb
Suppose that two people are engaged in a Vickrey auction for a good with two possible values: $10 or $20. Further, suppose each bidder receives a signal of the value, xn, where xn is equal to the
Financial planners and investment advisors often instruct their clients to hold a broad portfolio of investments to reduce the overall risk. Having a large number of uncorrelated or negatively
Expected utility theory suggests that all risk preferences are due to diminishing marginal utility of wealth. We have briefly discussed some reasons for doubting this hypothesis. Why might
Many small farms sell their vegetable crops through cooperative arrangements. A subscriber pays in advance for a certain portion of the crop. When the crop is harvested, the subscriber receives
a. Suppose that Schuyler faces the choice of whether to take a gamble that results in $120 with probability 0.50, and -$100 with 0.50 probability. Suppose that Schuyler's preferences can be
Suppose Rosario faces a two-period time-allocation problem. Rosario can allocate 10 hours of time in each period between two activities: work and family. The utility function for the first time
In this chapter, brief mention was made of the false consensus as a form of the availability heuristic. Consider an entrepreneur who has developed a product that she finds very useful in her own
In 2003 Andy Pettitte pitched for the New York Yankees baseball team, a team that won the American League pennant and qualified for the World Series. In the postseason, the Yankees played a series of
Suppose there is an unconditional probability of a bull market of 0.8, and a 0.2 probability of a bear market. In a bull market, there is a 0.7 probability of a rise in stock prices over a one-week
Many lotteries divide the winnings evenly among all those selecting the winning number. Knowing this, how could one use the gambler's fallacy to increase the expected earnings from playing the
Confirmation bias leads people to interpret the same information in very different ways. Given such a bias is pervasive, one must be careful in forming initial opinions. If confirmation bias is
Suppose you hold a stock and are considering whether to sell it or keep it. You initially believe that the probability the stock will rise in value in the long run is 0.7. You decide you will sell
In this chapter, we motivated the rational model of information search by showing that rational people should prefer information that is accurate no matter how it relates to their current hypothesis.
Governments often require people to obtain insurance; for example, all drivers are required to carry auto insurance to cover damages to others in the event of a crash. Homeowners are often required
Suppose we consider producers in a competitive market. Hence all producers are price takers and earn profit Ï€ = pq - c (q), where p is a random variable. Thus, the mean of profit is E(Ï€) =
Consider the utility function given by U(x) = ln(x) and the set of gambles with the possible outcomes $10, $20 and $30. For each exercise, it may be useful to use a spreadsheet or other numerical
Suppose that there were three possible states of nature as represented in the table below:a. What conditions would be required for the regret theory utility function to predict preference cycling
Confirm that the common ratio effect as found in Example 9.5 could be explained either by probability weighting or by regret theory. To do this, find utility and weighting functions that satisfy the
Consider two gambles, each with outcomes $10, $20, $30, and $40. Gamble 1 has probabilities for these outcomes and gamble 2 has probabilities and. Suppose that Gamble 2 stochastically dominates
a. Suppose you display Î±-maxmin expected-utility preferences, with Î± = 1 (fully ambiguity averse). What tax will you choose? What level of social welfare will be realized if a catastrophic
Consider that Kim has a choice among the following prospectsGamble A: Gamble B:$60 with probability 0.24 ...........................$65 with probability 0.25$33 with probability 0.24
Stock market investments are inherently risky. Suppose that Sasha is heavily invested in a high-tech firm with a positive earnings outlook. Then reports come out that the firm's primary technology is
You have a collection of valuable artwork worth $400,000. Suppose that you have preferences represented by the cumulative prospect theory model presented in Example 10.3. You are considering an
Consider the contract problem in Example 10.5. Suppose that when considering whether to take the contract or not, the worker tries to maximize the function U(b) + maxiε[h,l] Vi, where U(b) = b0.88,
Projection bias causes people to suppose that dialysis patients have a much lower quality of life than actually prevails. However, when prompted by researchers to think about the ways they will adapt
To a large extent, one’s lifestyle and the options available to one depend on choices made while relatively young: occupation, place of residence, and perhaps even long-term relationships. Suppose
Suppose that Marion is considering smoking the first cigarette. Marion's utility of consumption in the current period is given by equation 11.12, where good c is cigarettes, good f is all other
Researchers have found that people who are hungry tend to have greater craving for food that is more indulgent (i.e., high in sugar, fat, and salt). Consider that you are creating a line of
Employers are constantly training new employees by using more-experienced employees as instructors. a. What challenges might the curse of knowledge present in the training process? How might you
Many have erroneously described hyperbolic discounting as an extreme bias toward current consumption. Describe why this is a false statement. Explain intuitively what hyperbolic discounting does to
Naïve hyperbolic discounting leads people to make plans that are never executed. However, there are many reasons people might not execute plans. What other reasons might lead someone to abandon a
Many people display something like hyperbolic discounting. Some businesses thrive on supporting this sort of short-term excess. For example, several establishments offer payday loans-short-term loans
Harper is spending a three-day weekend at a beach property. Upon arrival, Harper bought a quart of ice cream and must divide consumption of the quart over each of the three days. Her instantaneous
Consider the diet problem of Example 12.3. Let δ = 0.99, ul = 2, uh = 1, yi = 1/180 for all i, and w = 140. Suppose that initial weight in the first period is 200. How high does β need to be
Consider the savings club problem from Example 13.1. Suppose again that Guadalupe earns $30 each week but that the time period is only three weeks. In weeks 1 and 2, instantaneous utility of

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