Business Leadership Exam Review

All Units for Business Leadership Grade 12

Reward Power

The capacity to offer something of value as a means of influencing others.

Coercive Power

The capacity to punish or withhold positive outcomes as a means of influencing others.

Legitimate Power

The capacity to influence other people by virtue of formal authority or the right of office.

Expert Power

The capacity to influence other people because of specialized knowledge.

Referent Power

The capacity to influence other people because of their desire to identify personally with you.

Relational Power

The ability to function well as part of a team working toward a collective goal.

Visionary Leadership

Brings to the situation a clear sense of the future and an understanding of how to get there.

Vision

A clear sense of the future.

Fiedler's Contingency Model

Good leadership depends on a match between leadership style and situational demands.

what are some personality traits of a leader?

• Drive

• Self-confidence

• Creativity 

• Cognitive ability

• Job-related knowledge 

• Motivation

• Flexibility

• Honesty and integrity

Directive Leadership

Letting subordinates know what is expected, giving directions, scheduling work, and maintaining standards.

Supportive Leadership

Doing things to make work more pleasant, treating members as equals, being friendly and showing concern.

Achievement-Oriented Leadership

Setting challenging goals, expecting high performance, emphasizing continuous improvement, and displaying confidence.

Participative Leadership

Involving subordinates in decision making, consulting with them, and using their suggestions.

Delegating (Hershey-Blanchard’s theory —> DPST)

Allowing the group to take responsibility for task decisions; a low-task, low-relationship style.

Participating (Hershey-Blanchard’s theory —> DPST)

Emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style.

Selling (Hershey-Blanchard’s theory —> DPST)

Explaining task directions in a supportive and persuasive way; a high-task, high-relationship style.

Telling (Hershey-Blanchard’s theory —> DPST)

Giving specific task directions and closely supervising work; a high-task, low-relationship style.

Substitutes for Leadership ( STO characteristics)

• Subordinate characteristics → ability, experience, and independence 

• Task characteristics → routines, availability of feedback 

• Organizational characteristics → clarity of plans, formalization of rules and procedures 

Authoritative Decision

A decision made by the leader and then communicated to the group.

Consultative Decision

A decision made by the leader after receiving information, advice, or opinions from group members.

Group Decision

A decision made by group members.

Planning

The process of setting an objective and determining how to best accomplish this.

Objectives

Specific results or desired outcomes that one intends to achieve.

Plan

A statement of action steps to be taken in order to accomplish the objectives.

Strategic Plans

Plans that set long-term action directions for the entire organization.

Operational Plans

Plans that defines what needs to be done in specific areas to implement strategic plans.

Policy

Broad guidelines for making decisions and taking action in specific circumstances.

Rules or Procedures

Plans that describe exactly what actions are to be taken in specific situations.

Budget

Single-use plans that commit resources to activities, projects, or programs.

Projects

One-time activities that have clear beginning and end points.

Forecasting

The process of predicting what will happen in the future.

Contingency Planning

different courses of action that can be implemented to meet the needs of changing circumstances.

Scenario Planning

identifying alternative future scenarios.

Benchmarking

Makes use of external comparisons to better evaluate one’s current performance and identify possible actions for the future.

Participatory Planning

Includes the persons who will be affected by the plans.

Controlling

A process of measuring performance and taking actions to ensure desired results.

Output Standards

Measure performance results in terms of outcomes like quantity, cost, or time of accomplished work.

Input Standards

Measure effort in terms of the amount of work expended in task performance.

Management by Exception

The practice of giving attention to situations that show the greatest need for action.

Feedforward Controls (before work activity begins)

Controls that take place before a work activity begins to ensure objectives are clear and resources are available.

Concurrent Controls (during work activity)

Controls that focuses on what happens during the work process ensuring things are being done according to plan.

Feedback Controls (after work activity)

Controls that take place after work is completed, focusing on the quality of end results.

Internal Control

when individuals and/or groups exercise self-discipline in fulfilling job expectations.

External Control

Occurs through personal supervision and the use of formal administrative systems.

Management by Objectives

A process of joint objective setting between a superior and a subordinate.

What are Task conerns?

• Plans and defines the work to be done

• Assigns task responsibilities

• Sets clear work standards

• Urges task completion 

• Monitors performance results

What are people concerns?

• Acts warm and supportive toward followers

• Develops social relationship with followers

• Respects the feelings of followers

• Is sensitive in followers’ needs

• Shows trust in followers

What is the Either/or concept (goes with Fiedler’s Contingency Model)

Leadership style is part of one’s personality; therefore, it is relatively difficult to change.

What are the 3 types of Leadership Situations? (Fielders)

• Quality of leader-member relations → measures the degree to which the group supports the leader

• Degree of task structure → measures the extent to which task goals, procedures, and guidelines are clearly defined

• Amount of position power → measures the degree to which the position gives the leader power to reward and punish subordinates.

What are the two leadership styles and situations? (task-oriented and relationship-oriented leaders)

• A task-oriented leader will be most successful in either very favorable or unfavorable situations

• A relationship-oriented leader will be most successful in situations of moderate control

What 4 aspects are part of Hershey-Blanchard’s Situational Leadership Model? (DPST)

• Delegating → allowing the group to take responsibility for task decisions; a low-task, low-relationship style

• Participating → emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style

• Selling → explaining task directions in a supportive and persuasive way; a high-task, high-relationship style

• Telling → giving specific task directions and closely supervising work; a high-task, low-relationship style

What is House’s path-goal leadership Theory? (DSAP leadership)

• Directive leadership → letting subordinates know what is expected; giving directions on what to do and how; scheduling work to be done; maintaining definite standards of performance; clarifying the leader’s role in the group

• Supportive leadership → doing things to make work more pleasant; treating group members as equals; being friendly; showing concern

• Achievement-oriented leadership → setting challenging goals; expecting the highest levels of performance; emphasizing continuous improvement in performance; displaying confidence in meeting high standards 

• Participative leadership → involving subordinates in decision making; consulting with subordinates; asking for suggestions from subordinates; using these suggestions when making a decision

When job assignments are unclear, what leadership style should you use?

Directive Leadership.

When worker self-confidence is low, what leadership should you use?

Supportive Leadership.

When performance incentives are poor, what leadership should you use?

Participative Leadership.

When task challenge is insufficient, what leadership should you use?

Achievement-Oriented Leadership.

what 3 types of decisions are part of the Vroom-Jago Leader-Participation Model?

• Authoritative decision → made by the leader and then communicated to the group 

• Consultative decision → made by the leader after receiving information, advice, or opinions from group members 

• Group decision → made by group members 

what are some benefits of planning?

1. Improves action orientation

2. Improves focus and flexibility

3. Improves coordination

4. Improves time management

5. Improves control

Standing plans

policies and procedures that are designed for repeated use.

single-use plans

Only used once to meet the needs and objectives of a situation in a timely manner.

Qualitative forecasting

Uses expert opinions to predict the future.

What are the 4 steps in the control process?

1. Establish performance objectives and standards

2. Measure actual performance

3. Compare actual performance with objectives and standards

4. Take necessary action

what are “output” and “input” standards

Output standards measure performance results in terms of outcomes like quantity, cost, or time of accomplished work

Input standards measure effort in terms of the amount of work expended in task performance.

What is the difference between Historical and Engineering comparison?

Historical comparison uses past performance as a basis for evaluating current performance.

Engineering comparison uses standards set scientifically through such methods as time and motion studies. 

what is the difference between a problem and an opportunity situation?

Problem situation is when actual performance is below the standard. The reason for this must be understood so corrective action can restore performance to the desired level

Opportunity situation is when actual performance is above the standard. The reasons for this must also be understood, with the goal of continuing high levels of accomplishment.

what are the five personality dimensions

1. Extraversion

2. agreeableness

3. conscientiousness

4. emotional stability

5. openness to experience

what is perception?

the process through which people receive, organize, and interpret information from the environment. It’s how people form impressions, process decisions, and guide actions.

What are perceptual tendencies and distortions?

How people communicate and behave toward one another. Based on stereotypes, halo effects, perceptions, and projections.

What is ‘impression management’?

The systematic attempt to influence how others perceive us.

• How we talk

• How we dress

• How we act

• Who we surround ourselves with

What is the communication process?

The interpersonal process of sending and receiving symbols with messages attached to them.

What are the key elements of the communication process?

Sender: encodes the message into symbols, either non-verbal or verbal.

Message: the message that is being shown or told.

Communication channel: the means through which you choose to deliver messages.

Receiver: decodes or interprets the meaning of the message. They can completely change the way they receive your message based on their own interpretation.

Interpreted meaning: how you take the message/info.

Feedback: giving verbal or physical feedback to let the other person know that you understand or don’t understand the info/message.

What are sources of ‘noise’?

Anything that gets in the way of the correct interpretation of a message.

• lack of nonverbal cues

• interruptions

• difficulty articulating thoughts

• inappropriate tone or body language

What are the 10 steps for good listening?

1. Stop talking

2. put the other person at ease

3. Show that you want to listen

4. Remove any distractions

5. Empathize with the other person

6. Don’t respond too quickly

7. Don’t get mad right away

8. Go easy on criticism

9. Ask questions

10. Stop talking

What are the differences between low channel richness and high channel richness?

Low channel richness —> impersonal, one-way, fast, and no opportunity for feedback.

High channel richness —> personal, two-way, slow, direct, opportunity for feedback.

what does ‘MBWA’ stand for?

Management By Walking Around.

How can you keep communication channel open?

• MBWA

• Open office hours

• Regular employee group meetings

• Computer-mediated meetings and video conferences

• Employee advisory councils

• Communication consultants

• 360 degree feedback

What is the Perception Process?

The process by which individuals receive and interpret information from the environment.

What is the attribution error?

Occurs when observers blame another person’s failures on internal factors rather than external factors.W

What is self-serving bias?

When individuals blame their failures on external causes and attribute their successes to internal causes.

What is the ‘glass ceiling’?

An invisible barrier that gets in the way of career advancements.

What are the differences between substantive conflicts and emotional conflicts?

Substantive Conflicts: are disagreements over tasks and goals, resources, rewards, policies, job assignments, and procedures.

Emotional Conflicts: results from feelings of anger, distrust, dislike, fear, and resentment.

What is the difference between functional and dysfunctional conflict?

Functional (constructive) conflict:

• Moderately intense conflict 

• Constructive and stimulates people toward greater work effort, cooperation, and creativity.

• It helps individuals reach their goals. 

• A little bit of failure motivates us to do better

Dysfunctional (destructive) Conflict

• Low-intensity and very high-intensity conflict 

• Destructive and hurts task performance 

• Decreases productivity

What are the conflict management styles? (AACCC)

• Avoidance (withdrawal)

• Accommodation (soothing)

• Collaboration (problem-solving)

• Competition (authoritative command)

• Compromise

What is negotiation?

The process of making joint decisions when the parties involved have different preferences.

What are the two difference negotiation goals?

Substance goals: concerned with outcomes.

Relationship goals: concerned with the processes.

What are the two types of negotiation?

Distributive negotiation: focuses on claims made by each party. Leads to win-lose outcomes.

Principled negotiation: focuses on basing outcomes on the merits of the individual claims. Leads to win-win outcomes.

What is motivation?

Used in management to describe forces within the individual that account for the level, direction, and persistence of effort expended at work.

What are some reasons why people do the things they do?

• Curiosity

• Food

• Honor

• Family

• Order

• Power

What are the differences between extrinsic and intrinsic rewards?

Extrinsic rewards: provided by someone else. They are valued outcomes given to someone by another person, typically someone of a higher position.

Intrinsic rewards: when the reward occurs naturally during the job performance. They are self-administered.

Hierarchy of Needs Theory - Maslow (Lower-order needs)

The desire for social and physical well-being.

• Social Needs

  • Friendly coworkers

  • Interaction with customers

  • Pleasant supervisor 

• Safety Needs

  • Safe working conditions

  • Job security

  • Base compensation and benefits

• Physiological Needs

  • Rest and refreshment breaks 

  • Physical comfort on the job 

  • Reasonable work hours 

Hierarchy of Needs Theory - Maslow (Higher-order needs)

The desire for psychological development and growth.

• Self-actualization Needs 

  • Creative and challenging work

  • Participation in decision-making

  • Job flexibility and autonomy

• Esteem Needs

  • Responsibility for an important job 

  • Promotion to a higher-status job 

  • Praise and recognition from their boss

ERG Theory - Alderfer

Existence Needs: The desire for physiological and material well-being.  

Related Needs: The desire to satisfy interpersonal relationships. 

Growth Needs: The desire for continued psychological growth and development.

Two-factor Theory - Herzberg (Hygiene Factors)

Hygiene Factors: Where you do your job and the environmental factors that could cause dissatisfaction.

• Working conditions

• Interpersonal Relations

• Policies/admin

• Wages

Two-factor Theory - Herzberg (Satisfier Factors)

Satisfier Factors: What you do at your job and internal factors that provide satisfaction and motivation. 

• Sense of achievement  

• Recognition

• Responsibility

• Opportunities for Advancement

• Personal Growth

• Interest/Enjoyment

Acquired Needs Theory - McClelland (APA)

Achievement: The desire to do something better, to solve problems, or to master complex tasks

Power: The desire to control, influence, or be responsible for other people

Affiliation: The desire to establish and maintain good relations with people.

What is the Equity Theory?

Based on the logic of social comparisons and the notion that perceived inequity is a motivating state.

Expectancy Theory - Victor Vroom

People will do what they can do when they want to do it. A person’s motivation to work hard for a promotion will be low if expectancy, instrumentality, and valence are low.

Goal-setting Theory - Edwin Locke

Goals can be highly motivating if they are properly set and if they are well managed.

Reinforcement Theory

Views human behavior as determined by its environmental consequences. The belief that the external environment has large consequences on behavior.