Chapter 6: Management and Leadership in Today's Organizations

management

The process of accomplishing the goals of an organization through the effective use of people and other resources.

efficiency

using resources in such a way as to maximize the production of goods and services

strategic planning

involves creating long-range (one to five years) broad goals for the organization and determining what resources will be needed to accomplish those goals.

mission statement

a document that states the purpose of the organization and its reason for existing.

tactical planning

more specific, shorter-term planning that applies strategic plans to specific functional areas

operational planning

creates specific standards, methods, policies, and procedures that are used in specific functional areas of the organization.

contingency plans

predefined actions that the project team will take if an identified risk event occurs

division of labor

Division of work into a number of separate tasks to be performed by different workers

departmentalization

subdividing work and workers into separate organizational units responsible for completing particular tasks

delegation

The assignment of new or additional responsibilities to a subordinate

top management

highest level of management, consisting of the president and other key company executives who develop strategic plans

middle management

the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling

supervisory management

managers who are directly responsible for supervising workers and evaluating their daily performance

leadership

the ability to motivate individuals and groups to accomplish important goals

legitimate power

the authority that a manager has by virtue of his or her position in an organization's hierarchy

reward power

power that comes from the ability to provide rewards or favors

coercive power

results from managers' authority to punish their subordinates

expert power

power that is based on the special knowledge, skills, and expertise that a leader possesses

referent power

influence based on identification with a person who has desirable resources or personal traits

autocratic leaders

leaders who hoard decision-making power for themselves and typically issue orders without consulting their followers

participative leaders

Those who make sure that employees are involved in the making of important decisions.

democratic leaders

leaders who encourage group discussion and decision making through consensus building

consensual leaders

Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.

consultative leaders

leaders who confer with subordinates before making a decision, but retain the final decision-making authority

free-rein leadership

leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

laissez-faire leadership

A leadership style that leaves much of the business decision-making to the workforce - a 'hands off' approach and the reverse of the autocratic style

situational leadership

a theory that argues that the most effective leadership style varies according to leader-member relations, the nominal leader's power, and the task structure

controlling

monitoring progress toward goal achievement and taking corrective action when needed

informational role

This role involves the sharing and analyzing of information; monitor, disseminator and spokesperson.

interpersonal role

This role involves human interactions; figurehead, leader and liaison.

decisional role

This role involves decision making; entrepreneur, disturbance handler, resource allocator and negotiator.

programmed decisions

decisions that are made in response to recurring organizational problems that require individuals to follow established rules and procedures

nonprogrammed decisions

Decisions that are made in response to novel, poorly defined, or unstructured situations that require managers to use their best judgments

analysis paralysis

occurs when the user goes into an emotional state of over-analysis (or over-thinking) a situation so that a decision or action is never taken, in effect paralyzing the outcome

technical skills

skills that involve the ability to perform tasks in a specific discipline or department

human relation skills

skills that involve communication and motivation; they enable managers to work through and with people

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationship among its various parts

dashboard software

gives managers a quick look into the relevant information they need to manage their companies.

global management skills

the ability to operate in diverse cultural environments