Management Exam Study Guide: Chapters 6, 9, 10 & Units 1–2

Vocabulary practice flashcards covering decision-making models, cognitive biases, leadership theories, group dynamics, and fundamental management functions from Chapters 6, 9, 10 and Units 1–2.

Scripts

Learned guidelines that help individuals interpret triggers (such as financials, productivity, and feedback), causing different managers to interpret the exact same event differently.

Programmed Response

Standard operating procedures (SOPs) utilized for routine, recurring situations.

Non-Programmed Response

Custom decision alternatives developed when standard options are inadequate or non-existent, relying on input from diverse sources such as customers, suppliers, experts, and brainstorming.

Rational Choice Method

A decision-making approach used when both goal consensus and available knowledge are high; characterized by a fully understood problem and analytical models such as decision trees and break-even analysis.

Incremental Trial-and-Error Method

A decision-making approach used when goal consensus is high but available knowledge is low; fine-tunes strategy through small incremental steps or testing multiple options.

Political Method

A decision-making method used when goal consensus is low but available knowledge is high; addresses debate over competing goals and resources by relying on bargaining, trading favors, compromise, and building coalitions.

Random / Subjective Method

A decision-making method used when both goal consensus and available knowledge are low; relies on intuition, hunches, and tacit knowledge.

Administrative Model

The most common real-world decision-making approach (used when goal consensus and available knowledge are moderate) that relies on satisficing rather than seeking perfection.

Satisficing

Selecting the first alternative that meets basic requirements rather than seeking perfection.

Framing

Structuring how information is presented in order to influence choices.

Nudging

Structuring choice architecture to guide predictable behavioral changes.

Explicit Knowledge

Codified, articulated information found in standard operating procedures (SOPs) and manuals.

Tacit Knowledge

Unspoken, uncodified experience and personal intuition used in decision-making.

Image Theory

A decision-making process guided by ideal states or outcomes when explicit knowledge is absent.

Anchoring & Adjustment Bias

Over-relying on an initial first impression (anchor) and failing to adjust despite contradictory evidence.

Availability Bias

Relying heavily on memorable, dramatic, or recent events while ignoring overall cumulative data.

Halo / Horn Bias

Using a single known trait or performance observation (positive or negative) to generalize across all unobserved areas.

Representativeness Bias

Judging an individual against a stereotyped image of a "typical" past performer rather than actual performance.

Escalation of Commitment

Persisting with a failed decision or project despite clear evidence that it is unviable.

Information Distortion

Selectively focusing on positive feedback while downplaying or ignoring negative indicator data.

Administrative Inertia

Maintaining legacy systems and operations simply because "that's how things have always been done."

Country Club Leadership (1, 9)

A leadership grid style focusing heavily on relationships, employee comfort, and harmony at the expense of rules and performance.

Team Leadership (9, 9)

A leadership grid style that solicits buy-in, fosters participation, and builds high trust and high productivity.

Impoverished Leadership (1, 1)

An uninvolved, withdrawn, and indifferent leadership style that causes low trust and low productivity.

Produce-or-Perish Leadership (9, 1)

A highly directive, autocratic leadership style focused on output and compliance with disregard for personal needs.

Middle-of-the-Road Leadership (5, 5)

A leadership style that balances task and relational demands adequately, but falls short of high commitment or achievement.

House’s Path-Goal Theory

A leadership theory asserting that leaders motivate followers by clarifying the path to rewards, eliminating obstacles, and providing necessary support to align follower efforts with organizational goals.

Directive Leadership Style

A Path-Goal leadership style that sets explicit goals, gives detailed guidance, and schedules tasks; best used when job assignments are ambiguous or followers need clarity on reward structures.

Supportive Leadership Style

A Path-Goal leadership style that shows genuine concern for follower well-being and social needs; best used when tasks are tedious/boring or employees experience high stress/anxiety.

Participative Leadership Style

A Path-Goal leadership style that solicits employee input, consults the group, and incorporates suggestions; best used when decisions require strong follower buy-in or employee self-confidence is low.

Achievement-Oriented Leadership Style

A Path-Goal leadership style that sets challenging goals and demonstrates high confidence in employee capabilities; best used when high-capability employees are unchallenged and demand greater responsibility.

Fiedler’s Contingency Theory

A contingency theory holding that a leader's fundamental style (task- vs. relationship-oriented) is fixed, requiring the organization to change the situation or change the leader to fit the environment.

Leader-Member Exchange (LMX) Theory

A theory focusing on the dyadic quality of relationships between leaders and followers, categorized into In-Group (high-quality exchange, trust, and inclusion) and Out-Group (low-quality exchange, formal/contractual, and exclusion).

Situational Leadership II (Hersey & Blanchard)

A model where leaders adjust directive and supportive behaviors to match follower Development Level (competence and commitment), ranging from S1 (Directing) to S4 (Delegating).

Leadership Substitutes

Organizational or contextual factors (such as highly structured SOPs or cohesive teams) that make formal leadership unnecessary.

Leadership Neutralizers

Situational factors (such as low position power or remote workers) that block or reduce leadership effectiveness.

Transactional Leadership

A style where leaders guide followers by establishing goals, clarifying roles, and using task rewards.

Transformational Leadership

A style where leaders inspire followers to transcend their self-interests for a higher purpose.

Group (vs. Team)

Two or more people sharing a common interest or association, characterized by individual accountability, an affiliation orientation, and either informal or formal structures of any size.

Team (vs. Group)

A task-oriented collection of people working interdependently to reach shared goals, characterized by mutual accountability to one another, an achievement orientation, and a formal, generally small size.

Forming Stage

The first stage of team development where the team is created, members explore rules, and feelings include anticipation and apprehension; leaders set explicit goals, clarify roles/rules, and build relationships.

Storming Stage

The stage of team development where obstacles and conflict emerge, accompanied by frustration and discouragement; leaders appeal to shared goals, remove barriers, and manage conflict.

Norming Stage

The stage of team development where habits and norms are established, fostering optimism and acceptance; leaders reinforce positive norms, ensure accountability, and facilitate sharing.

Performing Stage

The stage of team development where the team excels, operates interdependently, and experiences pride and confidence; leaders provide feedback, rewards, and set new challenging goals.

Adjourning Stage

The final stage of team development where the team disbands after task completion, bringing feelings of pride and sadness; leaders transition individuals smoothly to new teams or tasks.

Task Cohesion

Shared commitment among team members to achieving specific goals.

Social Cohesion

Interpersonal attraction and relational bonding among group members.

Free Riding

An individual contributing less than their fair share to a project (which hurts the individual).

Social Loafing

Expending less effort collectively than when working individually (which hurts the entire team).

Groupthink

A phenomenon where high-cohesion members strive for consensus and avoid conflict rather than critically evaluating alternatives (e.g., the NASA Challenger launch decision).

Lencioni’s Five Dysfunctions of a Team

A hierarchical pyramid model of team dysfunction consisting of (from base to top): 1. Absence of Trust, 2. Fear of Conflict, 3. Lack of Commitment, 4. Avoidance of Accountability, and 5. Inattention to Results.

Four Management Functions

The core operational functions of management: Planning (setting goals), Organizing (allocating resources), Leading (motivating people), and Controlling (monitoring performance).

Efficiency vs. Effectiveness

Efficiency is doing things right (minimizing resource waste), whereas Effectiveness is doing the right things (achieving goals).

Corporate Social Responsibility (CSR)

An organizational framework that balances economic, ethical, legal, and philanthropic expectations.

Which decision-making method should an organization use when goal consensus is high but technical knowledge about how to achieve those goals is low?

Incremental Trial-and-Error Method

Which decision-making method is required when technical knowledge is high but there is strong disagreement over competing departmental goals and resources?

Political Method

Why is the Administrative Model described as satisficing rather than optimizing?

Because bounded rationality and real-world resource constraints lead managers to select the first alternative meeting minimum threshold criteria rather than conducting exhaustive searches for the optimal solution.

What fundamental assumption about leader flexibility separates House's Path-Goal Theory from Fiedler’s Contingency Theory?

Path-Goal assumes leaders can flexibly adjust their behaviors to fit follower needs and situational demands, whereas Fiedler assumes a leader's style is fixed, requiring changes to the situation or the leader.

Under Hersey and Blanchard's Situational Leadership II, which leadership style matches a follower with low competence but high commitment ($D1$)?

S1: Directing (characterized by high directive and low supportive behavior).

Under Hersey and Blanchard's Situational Leadership II, which leadership style is appropriate for a follower with low-to-some competence and low commitment ($D2$)?

S2: Coaching (characterized by high directive and high supportive behavior).

Under Hersey and Blanchard's Situational Leadership II, which leadership style should be used for a follower who possesses high competence and high commitment ($D4$)?

S4: Delegating (characterized by low directive and low supportive behavior).

How do leadership substitutes differ conceptually from leadership neutralizers?

Substitutes make formal leadership redundant because existing conditions (like structured SOPs or cohesive teams) supply necessary guidance, whereas neutralizers hinder or block leadership effectiveness without replacing it.

In team dynamics, how does the organizational impact of social loafing differ from free riding?

Free riding refers to an individual contributing less than their fair share (hurting individual accountability), whereas social loafing refers to expending less effort collectively than when working alone (hurting overall team productivity).

According to Lencioni's Five Dysfunctions of a Team, why must an absence of trust be resolved before a team can handle conflict?

Vulnerability-based trust provides the psychological safety required for team members to engage in passionate, unfiltered ideological debate without fear of personal retribution.

How does administrative inertia differ conceptually from escalation of commitment?

Administrative inertia is passive adherence to legacy systems simply because of routine or tradition, whereas escalation of commitment is active persistence and resource reinvestment in a demonstrably failing initiative.

A manager rates an employee's annual performance as poor solely because of a single project mistake that happened last week. Which appraisal bias is demonstrated?

Availability Bias

An interviewer assumes an applicant will excel in leadership and communication simply because they scored at the top of an analytical math test. Which appraisal bias does this illustrate?

Halo Bias (Halo Effect)

What primary operational difference exists between efficiency and effectiveness when evaluating managerial performance?

Efficiency measures input-to-output ratios (doing things right by minimizing waste and cost), whereas effectiveness measures the attainment of organizational objectives (doing the right things).

During which stage of team development (Tuckman Model) do interpersonal friction and competing ideas surface, requiring leaders to manage conflict and refocus on shared goals?

Storming Stage