Updated 2006-10-28 00:38
SummaryTerms, definitions, and concepts related to Organizational Behavior.
Section I: Networks
|Emergence||A system's behavior evolves out of the interactions between nodes, sometimes exceeding the sum of the abilities of the nodes|
|Network||Nodes and deliverables organized with a goal of producing those results that the manager desires|
|Synchrony||The behavior of a system, like an equilibrium or harmony, Runners in a pack, rather than randomly distributed|
|Self-organization||The way a system "snaps" into shape, apparently having a mind of its own|
|Execution||A systematic process of rigorously discussing hows and whats, questioning, tenaciously following through, and ensuring accountability|
Related to the company’s strategy, not just an individual’s goals
|The gap nobody knows||The gap between what a company’s leaders want to achieve and the ability of their organization to achieve it.|
|Deliverables||Outputs of one’s actions, inputs to another node in the network|
|Links and working links||Links are deliverables between nodes|
Working links require feedback from the customer about the value of the deliverable
|Activities vs. Products||Activity - action|
Product - result of an action, sometimes a deliverable
Section II: Measures
|3 kinds of measures||activity, output, impact|
|Activity Measure||measurement of internal process (capacity utilization, throughput, etc.)|
|Output Measure||measurment of whether your customer received your output (validation) and whether it lived up to your customer's standards (satisfaction)|
|Impact||affects the performance of another node, requires data from customer, requires data from customer|
|Nominal Measures||Measures used for indentification purposes. For example: on/off|
players on teams have numbers, but player #30 is not twice as good as #15
|Ordinal Measures||Measures with an implied order of events. For example: rankings of preferences|
|Interval Measures||Measures in which the spacing between numbers means something. For Example:temperature scales (0 degrees means something)|
ratios cannot be implied without a reference of "absolute zero"
|Ratio Measures||Measures that reference zero ("none")numbers can be compared in terms of multiples of each other|
Section III: Incentive strategy and performance management
|Incentive strategy||concerns the way that organizations, operating within markets, tie rewards and punishments to individuals and team performance in order to motivate value-creating behavior.|
management of incentives cannot be replaced with purely formulaic incentives that require no subjectivity
|Objective performance measurement: Controllability Problem||it is difficult to know whether an outcome was the result of controllables (effort, wise decisions) or from uncontrollables (luck, chance)|
|Objective performance measurement: Alignment Problem||When a job requires multiple tasks, it is typically the case that performance regarding some tasks is easy to measure (e.g., on-time deliveries) relative to other tasks (e.g., courteous deliveries). Individual performance (e.g., on-time deliveries) measures are incomplete and therefore not perfectly aligned with value creation.|
|Objective performance measurement: Interdependency Problem||Value is often created by teams of individuals. When a given outcome is the result of the joint performance of many, it is difficult to determine the individual contributions of any team member.|
|Difficulties of Subjective performance measurement||harder-to-measure contributions to value creation are no less important than the "objectively measured" contributions; they are just more difficult to measure.|
Requires substantial effort because it is so hard to do well. Even companies that believe they do it successfully find it to be difficult
The main problem of subjective performance evaluation is that most people dislike evaluating others, especially when performance is weak.
|Folly of rewarding A while hoping for B||Also called "Kerr's Folly", this phenomenon promotes behavior different than what is desired. People react to what they are rewarded for, not what you want from them|
Section IV: Noise, Feedback, and Performance
|Noise||Interference with the signal, not productive, can be destructive|
|Output feedback||Multiple types of output feedback:Validation - Did you get it?|
Satisfaction - Did you like it?
Impact - Did it work?
|Performance appraisal||Annual summary of performance, tied to compensation, one-directional meeting|
|Performance management||Integrates appraisal with two-way feedback, development, and goal-setting|
More "constant updating" than "one-time review"