ILRHR 2600 Exam 3 Study Guide

ILRHR 2600 Exam 3 Study Guide Why should we care about diversity in organizations? - ✔✔- Social Justice - Legal Requirements (EEOC) - Access to Niche Markets - Organizational Effects Workplace diversity - ✔✔Variatio ...

ILRHR 2600 Exam 3 Study Guide Why should we care about diversity in organizations? - ✔✔- Social Justice - Legal Requirements (EEOC) - Access to Niche Markets - Organizational Effects Workplace diversity - ✔✔Variation in: - race, gender, ethnicity, age, national origin, religion, sexual orientation, gender identity, and disability - values, personality, characteristics, education, lifestyle, beliefs, experiences Relationship between diversity and performance - ✔✔- A zero or near-zero relationship between ethnic, gender, and age diversity - A positive relationship between functional diversity and team performance The Wisdom of Crowds - ✔✔- Having more levels of cognitive diversity allows for more accurate predictions of the future - If you aggregate all guesses, cognitive diversity leads to closer accuracy Supply side factors - ✔✔(Drivers of Inequality in the Workforce) Differences in perceptions, decisions, and behaviors on the part of the individual Demand side factors - ✔✔(Drivers of Inequality in the Workforce) Differences in the environment that the individual interacts with Stereotype - ✔✔Category based expectation Prejudice - ✔✔Attitudes towards a particular social group Discrimination - ✔✔Acting on stereotypes, and, or prejudices Out-group homogeneity - ✔✔Views in-group as variable, but outside groups are perceived as the same in-group favoritism - ✔✔The tendency to view people in your in-group as having positive traits as compared to out-group members Stereotype Threat - ✔✔When members of certain stereotyped groups worry about confirming a stereotype about their group and this interferes with their performance True - ✔✔When you control the task for men and women, but change what type of task it is there is little performance differences in regards to stereotypes (For example, saying a finance task is a marketing task) Stereotype lift effect - ✔✔Telling men and women there are differences in performances on tasks based on gender, men will usually perform much better and women worse Prescriptive norms - ✔✔The way people are supposed to act Biased Interpretation - ✔✔When one receives ambiguous information, they are more likely to fall back on preconceived notions Backlash - ✔✔Penalties faced when failing to adhere to stereotypes When do we use unconscious information? - ✔✔- High cognitive load: thinking of lots of different things - Low attention: tired or distracted - Ambiguous situations: conflicting evidence about ability Ways to reduce the use of stereotypes - ✔✔- Blinding - Awareness: commitment to egalitarian principles reduces discriminatory behavior - Contact: familiarity increases accuracy of perceptions (bringing people together from diverse backgrounds can allow them to eliminate stereotypes of specific groups) Efficient wage theory - ✔✔Pay level matters - the more you pay people the happier they will be Equity theory - ✔✔Pay comparisons matter - inputs should determine outputs & they should be equitable relative to others inputs Contingent Reward - ✔✔Pay based on performance - increase employee effort - reinforce specific behaviors Compensation - ✔✔salary + rate of contingent reward(effort) False - ✔✔Pay-for-performance does not work when there is a strong link between effort, performance, and compensation Problems with Contingent Rewards - ✔✔- People have an overinflated perception of contributions - Unintended consequences (negative work behaviors) - Can undermine creativity and enjoyment - Inconsistent or noisy relationship between effort, performance, and rewards Factors that lead to intrinsic motivation - ✔✔- Meaningfulness of Work (Purpose) - Enjoyment/Mastery - Autonomy How does extrinsic reward hurt intrinsic motivation? - ✔✔- Signaling that task must be "work" and not interesting - Shifts thinking to narrow cost-benefit calculations True - ✔✔Incentives decrease performance on tasks that are complex cognitive-skilled tasks. Therefore, they work best on simple tasks Global Advantages - ✔✔New market = new customers Foreign country = lower labor costs Global operations = continuous work day Parent-country nationals - ✔✔People from the country where the company is headquartered Expatriate - ✔✔Parent-country nationals assigned to an international affiliate Host-country nationals - ✔✔Employees from the country where the internal affiliate is located Impatriates - ✔✔Home-country nationals assigned to parent country Third-country nationals - ✔✔Employees who are neither PCNs or HCNs, "migrant workers" Constraints on Multinational organizations - ✔✔- The regulatory environment - The presence of collective bargaining - Labor force characteristics --> human capital & cultural values/expectations Ethnocentric Approach - ✔✔Taking home country nationals to foreign countries Polycentric Approach - ✔✔Host-country nationals are used much more throughout the organization Geocentric Approach - ✔✔Home-country, host-country, and third-country nationals are considered as the firm hires the best person for each position What predicts Expatriate Success? - ✔✔General Adjustment: weather, food, living conditions Cultural Adjustment: values, expectations, standards Interaction Adjustment: native communication style Balance Sheet Approach (build-up approach) - ✔✔Linked to home country's salary structure Advantages - Equity --> between assignments & between expatriates of the same nationality - Facilitates expatriate re-entry -Easy to communicate to employees Disadvantages - Can result in great disparities between expatriates of different nationalities & between expatriates and local nationals - Can be complex to administer Going Rate Approach (Market Rate approach) - ✔✔Linked to host country salary structure