Equity Theory

Principles of Management Proctored Final 


1. Three kinds of basic management skills have been identified—conceptual, human
relations, and technical. Explain the nature of each of these three skills.

2. With respect to organization and control, Victor Vroom developed the expectancy
approach. Explain the expectancy model in terms of Vroom’s concepts of expectancy,
instrumentality, and valence. What can managers do to improve employee motivation
in light of the Vroom model?

3. What is required to implement an organization’s commitment to social responsibility?
What are the main obstacles to implementing socially responsible policies? Name
specific actions that can be taken toward increased social responsibility.


1. Briefly define a transactional leader.

2. Explain the term leniency, central tendency, and recency as they relate to conducting appraisal interviews 

3. In the context of organizational development, what is sensitivity training? 

4. What is strategic management and what three stages are involved? 

5. What is the difference between group norm and group cohesiveness? Give simply examples of each concept 

6. In the context of communication, what is perception? 

7. What is the difference between line and staff functions? Give an example of each 

8. What is the basic idea in equity theory? 

9. Define the term six sigma 

10. Briefly summarize Simon’s principle of bounded rationality as it applies to satisfying 



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