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Legitimate, Coercive, Reward
Formal Power Types
Expert, Referent, Information, Connection
Personal Power Types
based on company position; compliance due to other’s authority to control resources; limit: scope of authority
Legitimate Power
based on threats or punishment; compliance comes from fear of negative results; negatively related to employee welfare
Coercive Power
based on promise of granting rewards; person complies due to positive results; limit; desirability of reward
Reward Power
based on being perceived as having expertise, special skill or knowledge; limit: others’ perception of one
Expert Power
based on identifying with or liking the person
Referent Power
based on access to valuable info
Information Power
Based on connections to powerful people
Connection Power
Commitment, Compliance, Resistance
Outcomes to Power
internally agrees with decision and makes a great effort to carry it out because they believe it’s right; present in Expert/Referent power
Commitment (+)
willing to comply only because it’s in their best interest; present in legitimate/reward power
Compliance (±)
Opposed to proposal, does not comply, request discarded, influence unsuccessful; present in coercive power
Resistance (-)
Trait, Behavior, Contingency, Contemporary
Leadership Theories
asks what the personality characteristics and psychological attributes of leaders are
Trait Theories
Propose that there are specific behaviors that differentiate leaders from non-leaders; key decision-making styles are authoritarian, democratic, and laissez-faire
Behavioral Theories
Leader’s effectiveness depends on how leader’s style fits context; using path-goal theory
Contingency Theories
Directive, Supportive, Participative, Achievement-Oriented
Path-goal theory leadership types
leader gives instructions/expectations/performance standards; use when employees have low abilities/role ambiguity
Directive Leadership
friendly/approachable leader, attends to welfare of employees; use when tasks are boring/repetitive/stressful
Support Leadership
invites employees to give ideas, share opinions and integrates their suggestions; use when employees have high abilities and decision is relevant
Participative Leadership
challenges employees to perform at the highest possible level; use when employees have high abilities and motivation
Achievement-Oriented Leadership
Focus on growth and well-being of others; Transactional and Transformational
Contemporary Theories
classic management, leader implements rewards and punishments to motivate employees
Transactional
motivating followers to exceed expectation through a shared vision and personal development
Transformational
Factors that enhance leadership vs diminish its impact
Substitutes vs Neutralizers
occur often so rules are generally already in place (ensure tasks are performed smoothly)
Programmed Decisions
occur infrequently, so rules cannot be used to help guide decisions. Managers must rely on their experience and intuition
Nonprogrammed decisions
Certain, Risky, Uncertain
Decisions-making environments
outcomes for all decision options are known
Certain environment
decision outcomes are not known, but probabilities can be assigned to them.
Risky environment
outcomes for decision options are unknown and cannot be predicted
Uncertain environment
Top: NP, Risky, Uncertain
Middle: NP into P, Risky into less risky
Low: P and Certain
Responsibility for decision making
limited capacity to assimilate and understand all info necessary to optimize due to imperfect info, time constraint, etc.
Bounded rationality
searching for satisfactory solutions rather than optimal ones
Satisfice
carried out to acquire/develop power to influence outcomes to decisions
Organizational Politics
environment may involve new and interlinked situations, while RDM assumes that conditions are stable
Changing environment
performance difficulties that stem from the problems of motivating coordinating larger groups; increase with group size
Process losses
social loafing, Group cohesiveness, psychological safety, social norms, conformity, groupthink, Shared information bias
factors affecting group dynamics
individual reduces their own effort when working in group in comparison to working alone
Social loafing
Set of assumptions/expectation held by members concerning what behavior is appropriate
Social Norms
shared belief that members are safe for taking risks (mistakes, questions, ideas); does not mean ideas won’t be challenged
Psychological Safety
strength of bonds linking members of a group; can lead to increased satisfaction but also groupthink/polarization
Group cohesiveness
opinions of group members are altered to align with what they believe is consensus
Groupthink
tendency of groups to spend more time discussing info all members know rather than examining what few members know
Shared information bias
desire to perform task is derived from gaining reward or avoiding punishment (tangible, visible, contingent on performance); better for short-term engagement
Extrinsic Motivation
Desire to perform task derived from personal satisfaction; intangible, not visible, linked to interesting work or tasks; better for long-term engagement
Intrinsic Motivation
external rewards diminish intrinsic drive to perform an activity, making it seem less interesting or fun
Crowding out intrinsic motivation
Reinforcement, Expectancy, Equity
Extrinsic Motivation Theories
behaviors are shaped by their consequences, so individual behavior can be changed via reinforcement (reward positive, punish negative)
Reinforcement Theory
suggests people act based on expectations of the outcomes of their actions (effort → performance → outcome); manager defines performance standards, guarantees standard will give right reward, and gives it
Expectancy Theory
occurs when effort → performance or performance → outcome links are disrupted, resulting in less motivation
Expectancy Theory violations
how one’s circumstances compare to those with similar ones; Ratio of outputs and inputs in a job, compare it to referent
Equity Theory
Change inputs (over/under-reward) or change outputs (over/under-reward) or exit
Addressing Inequity
Recruitment, Total Rewards, Alignment, Employee Relations and Governance
HR Processes
Related to job analysis/screening; includes Job analysis, Job description, Job specification, Job evaluation
Recruitment Processes
process of collecting info about key work-related aspects of a job (foundation of HR processes)
Job analysis
duties, responsbilities, working conditions, etc.
Job description
qualifications and competencies for the job
Job specification
Determining relative worth of jobs within organization
Job evaluation
related to compensation and incentives; includes Salary Grading and Salary Placement
Total Rewards Processes
Groups jobs with similar value into pay grades; salary ranges for each grade
Salary Grading
Determining individual employee pay within the established salary structure
Salary Placement
related to onboarding, training and development performance management
Alignment Processes
Related to conflict resolution, legal compliance, enforcing policies
Employee Relations and Governance Processes
Supports group goals and improves performance; improves decision quality and creativity
Functional Conflict
Hinders group performance; leads to discontentment and infighting
Dysfunctional Conflict
Task, Process, Relationship
Types of Conflict
Conflicts over content or goals of the work; low-to-moderate levels are functional
Task Conflict
Conflict over how work gets done; low-level of this type is functional
Process Conflict
conflict based on interpersonal factors; almost always dysfunctional
Relationship Conflict
Competing, Collaborating, Avoiding, Accommodating, Compromising
Conflict management styles
Forcing your view at the expense of others; use when quick action is vital and with unpopular but necessary actions
Competing
Retreating from the situation, downplaying disagreement; use when issue is trivial or when potential damage outweighs benefits
Avoiding
Letting the others wishes rule, “smoothing” over differences; use when issue is more important to other party or preserving relationship
Accommodating
Partial satisfaction of everyone’s concerns, acceptable rather than optimal; use when temporary situation is needed to complex issues under time pressure
Compromising
Addressing everyone’s concerns optimally, win/win situation; use when parties are committed and adequate time is available
Collaborating
Shared beliefs,values, and practices by country; born into it and slow changing
National Culture
Shared beliefs, values, and practices by organization; socialized into it and faster changing
Organizational Culture
Social glue, distinct from other orgs, sense of identity, sensemaking and control
Purposes of Org Culture
Artifacts, Rituals, Ceremonies, Language, Physical Space
Elements of Culture
physical manifestation of organizational culture
Artifacts
programmed routines of daily organizational life
Rituals
Planned activities conducted specifically for the benefit of an audience
Ceremonies
style of communication, conveys meaning and captures unique identity of org
Language
buildings, office space, decor that convey emphasis on values
Physical Space
non-visible aspects of organizational culture
Values and Assumptions
Explicitly stated values vs values as they are performed in the organization
Espoused vs Enacted Values
align artifacts/symbols, bring rewards in line with culture, actions of founder and leaders, selection and socialization of employees
Strengthening Culture Methods
Social Orientation, Power Distance Index, Goal Orientation, Uncertainty Avoidance, Monochronic vs. Polychronic, High vs Low context communication
Cross-Cultural Dimensions
Individualism (loose-knit society, low interdependence) vs. Collectivism (tightly knit society, high interdependece)
Social Orientation
Low (participative leadership, democratic decision-making, decentralized authority) vs. high power distance (directive leadership, authoritarian decision-making, centralized authority)
Power Distance Index
Masculine (material things, success, money) vs Feminine values (quality of life, caring for others, cooperation)
Goal orientation
High (more rules, seek security) vs Low uncertainty avoidance (less rules, more innovation)
Uncertainty Avoidance
rigid time, segmented in precise units vs fluid time and change in schedules easy
Monochronic vs Polychronic
Explicit communication, no room for interpretation vs implicit communication, words alone not enough to grasp meaning
High vs. Low Context Communication
Corporate, Business, Functional
Levels of Strategy
How we plan to achieve mission and objectives
Corporate Strategy
How we plan to compete in specific markets
Business Strategy
How we plan to execute and support the business (people, processes, people)
Functional Strategy