Leadership, Decision Making, and Organizational Culture

What is leadership?

The ability to influence, motivate, and enable a group of individuals towards a vision or the achievement of a set of goals.

How does leadership differ from management?

Leadership involves inspiring people to follow a vision voluntarily using intrinsic motivation, while management is about directing people and resources towards goals using extrinsic motivation.

What are the three types of managerial skills?

Technical skills (knowledge in a specialized field), human relations skills (ability to work well with others), and conceptual skills (ability to think abstractly and see the organization as a whole).

What are technical skills in management?

Knowledge of proficiency in a specialized field, developed through education and experience.

What are human relations skills in management?

The ability to work well with others, both individually and in groups.

What are conceptual skills in management?

The ability to think in abstract and complex terms, understanding the organization as a whole and its interrelationships.

What traits are commonly associated with effective leaders according to early theories?

Drive, intelligence, extroversion, conscientiousness, openness to experience, self-esteem, and integrity.

What type of motivation does leadership primarily use?

Intrinsic motivation.

What type of motivation does management primarily use?

Extrinsic motivation.

What question does leadership answer regarding goals?

Where are we going?

What question does management answer regarding goals?

How are we going to get there?

What do behavioral theories propose about leadership?

They propose that there are specific behaviors that differentiate leaders from non-leaders and that leadership can be learned.

What are the three key decision-making behavioral styles in leadership?

1. Authoritarian: leaders make decisions alone. 2. Democratic: involves employees in the decision-making process. 3. Laissez-faire: leaders leave employees to make decisions with little guidance.

What is the main idea behind contingency theories of leadership?

A leader's effectiveness depends on how well their style fits the context and environment.

What is the path-goal theory in leadership?

It suggests that a leader must use a style that best meets the employee's motivational needs given the specific context.

What are the four leadership types defined in path-goal theory?

1. Directive: gives instructions and expectations. 2. Supportive: friendly and approachable, focuses on employee well-being. 3. Participative: invites employee input and integrates suggestions. 4. Achievement-oriented: challenges employees to perform at their highest level.

When does the directive leadership style work best?

It works best when employees have high role ambiguity and low abilities.

When is the supportive leadership style most effective?

It is most effective when tasks are boring and repetitive or stressful.

In what situations does the participative leadership style excel?

It excels when employees have high abilities.

When does the achievement-oriented leadership style work best?

It works best when employees are high achievers.

What distinguishes transactional leadership from transformational leadership?

Transactional leadership uses rewards and punishments to motivate, while transformational leadership inspires and motivates followers through a shared vision and personal development.

What is a key benefit of transformational leadership?

It is a stronger predictor of job performance and employee satisfaction, motivating followers to exceed their own interests for the greater good.

How is emotional intelligence related to transformational leadership?

It enables leaders to manage their own emotions, understand others' emotions, and build strong relationships, essential for motivating and inspiring others.

What is the focus of servant leadership?

It focuses on the growth and well-being of others, prioritizing the needs of followers and facilitating their development.

What are the positive outcomes of servant leadership?

Positive outcomes include increased employee engagement and organizational commitment.

What key point is made about leadership and context?

Leadership matters, but the context is important, as substitutes and neutralizers can render leadership ineffective.

What are programmed decisions in organizations?

Decisions that occur often, where rules and guidelines are already in place to ensure efficient task performance.

What are nonprogrammed decisions?

Decisions that occur infrequently, requiring managers to rely on experience, benchmarking, and intuition.

What are the three decision-making environments?

1. Certainty: outcomes are known. 2. Risk: outcomes are uncertain but probabilities can be assigned. 3. Uncertainty: outcomes are completely unknown.

What increases the likelihood of making a bad decision in organizations?

Higher ambiguity in decision-making situations.

What types of decisions do top managers typically make?

Nonprogrammed, risky, or uncertain decisions.

What is the role of middle managers in decision-making?

They transform nonprogrammed decisions into programmed ones and risky decisions into less risky or more certain ones.

What kind of decisions do lower-level employees and managers usually make?

Very programmed or certain decisions.

What does the rational decision-making model focus on?

It keeps the decision maker focused on facts and logic, guarding against incorrect assumptions.

What is the formula for actual productivity in group processes?

Actual productivity = potential productivity + process gain - process loss.

What constitutes a work group or team?

Two or more individuals who perform organizationally relevant tasks, share common goals, exhibit task interdependencies, and interact socially.

What is the ideal size for a work group?

4.6 members.

How does group size affect member satisfaction?

Members tend to report less satisfaction in larger groups compared to smaller ones.

What is process loss in group dynamics?

Performance difficulties that arise from motivating and coordinating larger groups.

What are some factors affecting group dynamics?

Social loafing, group cohesiveness, psychological safety, social norms, conformity, groupthink, and shared information bias.

What is social loafing?

The tendency of individuals to reduce effort when working in a group compared to working alone.

What is social facilitation?

The phenomenon where the presence of others energizes individual efforts.

What is diffusion of responsibility?

The reduction of personal accountability when others are present, leading to inaction.

What are some solutions to combat social loafing?

Create smaller teams, increase visibility of individual contributions, establish clear roles, and implement performance standards.

What are social norms in a group context?

Assumptions or expectations held by group members about appropriate behavior, including rewards and punishments.

What is psychological safety in teams?

A shared belief that team members can take risks without fear of embarrassment or punishment.

How does psychological safety impact team performance?

It drives performance and innovation, positively impacting team members.

What happens to individual participation as group size increases?

The time available for verbal participation decreases, and individuals may feel inhibited.

What is the relationship between group size and conflict?

Larger groups might prompt conflict or social loafing.

What is the impact of social norms on team interaction?

They facilitate smooth interaction, reduce uncertainty, and specify functions for each team member.

How does social loafing relate to individual accountability?

It occurs when individual efforts cannot be traced, leading to decreased accountability.

What is the significance of establishing clear roles in a team?

It helps to clarify expectations and reduce social loafing.

What does it mean for a team to have task interdependencies?

Members rely on each other to complete tasks and achieve common goals.

What is group cohesion?

The strength of the bonds linking team members of a group, influencing their willingness to work together and remain in the group.

What are the positive consequences of group cohesion?

Increased member satisfaction, effectiveness in achieving group goals, and decreased employee turnover.

What are the negative consequences of group cohesion?

Increased groupthink and polarization, ignoring ideas that deviate from norms, and enhanced ingroup bias.

What is groupthink?

When the opinions of members of a group are altered to align with what they believe is the group consensus, leading to poor decision making.

What are some symptoms of groupthink?

Pressure towards conformity, suppression of dissension, overestimation of the group's moral correctness or power, and outgroup stereotypes.

What are two solutions to combat groupthink?

Set up a goal of finding the best solution and consider all alternatives; appoint a devil's advocate.

What is shared information bias?

The tendency of the group to discuss only information that the whole group knows, preferring shared information over unshared.

Why do groups prefer to discuss shared information?

People perceive shared information to be more credible and it feels safe to talk about it.

What is motivation in the context of performance?

The willingness to exert persistent levels of effort towards attaining a goal, which is central to performance.

What three factors influence performance?

Motivation, ability, and environment.

What are common extrinsic motivators?

Money, benefits (health insurance, vacation days), stock options, bonuses, awards, praise, and gym memberships.

What are common intrinsic motivators?

Ability to choose interesting projects, flexibility in work methods, and opportunities to learn new skills.

What is extrinsic motivation?

The desire to perform a task to acquire external rewards or avoid punishment, effective for short-term tasks.

What is intrinsic motivation?

The desire to perform a task for personal satisfaction or fulfillment, generally superior for long-term engagement.

What happens when intrinsic motivation is combined with extrinsic motivation?

Adding intrinsic motivation to extrinsic motivation tends to boost overall motivation.

What can happen when extrinsic motivation is added to intrinsic motivation?

It can undermine overall motivation.

What does reinforcement theory suggest?

Behaviors are shaped by their consequences, and individual behavior can be changed via reinforcement, punishment, or extinction.

What are some dangers of punishment in motivation?

It can stir negative emotions, be challenging to apply consistently, and produce a need for concealment.

What does expectancy theory state?

Effort leads to performance (goal), which leads to outcome (reward); the desirability of the outcome matters.

What questions does expectancy theory raise about motivation?

Will my effort lead to the desired performance? Will my performance lead to the desired outcome? Is the outcome desirable to me?

What are expectancy violations in the context of motivation?

Expectancy violations occur when factors interfere with the links between effort, performance, and reward, leading to decreases in motivation.

What is the role of equity theory in motivation?

Equity theory emphasizes that the relative value of motivators matters, and individuals compare their outcomes/input ratio to that of similar others to assess fairness.

What is necessary for motivation according to expectancy theory?

Tightening the links between effort, performance, and outcomes/rewards is necessary, but individuals must also believe that the performance-outcome link is fair.

How do people evaluate equity in their work situation?

People evaluate equity by comparing the ratio of their outcomes to inputs with that of a comparable referent.

What is equity in the context of motivation?

Equity occurs when a person perceives that their rewards/input ratio is equivalent to that of a similar comparison other.

What is inequity in the context of motivation?

Inequity occurs when one's rewards/input ratio is perceived to be unequal compared to others.

How do individuals respond to perceived inequity?

Individuals may attempt to eliminate discomfort from perceived inequity by trying to restore equity.

What is the cobra effect in organizational behavior?

The cobra effect refers to situations where systems reward unwanted behaviors while expecting desired ones.

What is the primary task of human resources?

Human resources are tasked with finding, hiring, training, and managing the company's workforce.

What are the strategic priorities of human resources?

HR focuses on improving performance, maximizing success, avoiding mistakes, and maintaining equity.

What is job analysis in HR processes?

Job analysis is the systematic process of collecting information about key work-related aspects of a job, forming the foundation for many HR processes.

What does a job description include?

A job description includes duties, responsibilities, reporting responsibilities, working conditions, and performance expectations.

What does a job specification outline?

A job specification outlines qualifications and competencies required for the job, such as education, experience, and KSAs (knowledge, skills, and abilities).

What is job evaluation in HR?

Job evaluation determines the relative worth of jobs within the organization to ensure internal equity.

What is the point-factor method in job evaluation?

The point-factor method evaluates jobs based on compensable factors, assigning numerical points to each factor to create a hierarchy of positions.

What is salary grading?

Salary grading groups jobs with similar point values into pay grades and establishes salary ranges based on market value data.

What factors are considered in salary placement?

Salary placement considers KSAs, performance, and internal equity to determine individual employee pay within the established salary structure.

How is conflict defined in organizational behavior?

Conflict is defined as tension that emerges when individuals or organizations have incompatible or competing goals.

What are common causes of conflict in organizations?

Conflict can arise over competition or incompatibility regarding values, power, or resources.

Why is conflict considered a natural occurrence in organizations?

Given the wide range of goals for different stakeholders, conflict is a natural and inevitable part of work life.

What is the key to managing conflict in organizations?

The key to managing conflict is distinguishing between good and bad conflict and addressing it effectively.

What are the sources of conflict?

Resource scarcity, incompatible goals, structural factors (e.g., reward systems), conflicting perceptions, ideas, beliefs, differences between people (e.g., opinions), conflicting thoughts/needs within an individual, and lack of clear communication.

How can conflicts be addressed effectively?

By setting clear expectations, checking for understanding, and providing frequent feedback.

What is the interactionist view of conflict?

Some conflict is a positive force necessary for effective group performance, while a lack of conflict may indicate stifled innovation.

What are the symptoms of functional conflict?

Increased group performance, improved quality of decisions, stimulated creativity and innovation, and a medium for problem solving.

What are the symptoms of dysfunctional conflict?

Discontentment, reduced group effectiveness, infighting, reduced communication, and decreased group cohesiveness.

How can functional conflict be created?

By rewarding dissent and encouraging conflict avoiders to voice their opinions.