BUS160 Final Exam

Leadership

The ability to influence a group toward the achievement of a vision or set of goals.

Leaders vs Managers

Leaders: Visionary, Sets long-term goals, Inspires followers, Big picture, Role model


Managers: Sets short-term goals and expectations, Trains and develops, Promotes Stability, Ensures operations run smoothly.

Both: Work with people, Set goals, Influence followers

Trait theories of leadership

Theories that consider personal qualities and characteristics that differentiate leaders from non-leaders.

Behavioral theories of leadership

Theories proposing that specific behaviors differentiate leaders from non-leaders.

Initiating structure

The extent to which a leader defines and structures his or her role and those of the subordinates to facilitate goal attainment.

Consideration

The extent to which a leader has job relationships that are characterized by mutual trust, respect for subordinates’ ideas, and regard for their feelings.

Contingency theories of leadership

Fiedler's Contingency Theory, the Situational Leadership Theory, the Path-Goal Theory, the Decision-Making Theory

Fiedler Contingency theory of leadership

The theory that effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.

Least Preferred Coworker (LPC) questionnaire

An instrument that purports to measure whether a person is task- or relationship-oriented.

Relationship-oriented style

High LPC Leaders

Task-oriented style

Low LPC Leaders

Favorability of Situations for Leading

Leader-member Relations, Task Structure, Position Power

Leader-member relations

The degree of confidence, trust, and respect that subordinates have in their leader.

Task structure

The degree to which job assignments are regimented.

Position power

Influence derived from one’s formal structural position in the organization; includes the power to hire, fire, discipline, promote, and give salary increases.

Leader-Member Exchange Theory

A theory that supports leaders’ creation of ingroups and outgroups; subordinates with ingroup status have higher performance ratings, less turnover, and greater job satisfaction.

Charismatic Leadership

A leadership theory stating that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors in others.

Transformational leadership

inspire followers to transcend their self-interests for the good of the organization


Individualized Consideration, Intellectual Stimulation, Inspirational Motivation, Idealized Influence

Individualized Consideration

Gives personal attention, treats each employee individually, coaches, and advises.

Intellectual stimulation

Promotes intelligence, rationality, and careful problem-solving.

Inspirational motivation

Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.

Idealized influence

Provides vision and sense of mission, instills pride, gains respect, and trust

Transactional leadership

Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

Laissez-Faire

Abdicates responsibilities, avoids making decisions.

Management by exception (active)

Watches and searches for deviations from rules and standards, takes corrective action.

Management by exception (Passive)

Intervenes only if standards are not met.

Contingent Reward

Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.

Responsible Leadership

Authentic Leadership, Ethical Leadership, Servant Leadership

Authentic leadership

Leaders who know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly

Ethical Leadership

Leaders express ethical beliefs and persuade others to follow ethical standards

Servant leadership

A leadership style marked by going beyond the leader’s own self-interest and instead focusing on opportunities to help followers grow and develop.

Conflict

A process that begins when one party perceives that another party has negatively affected or is about to negatively affect something that the first party cares about.

Functional conflict

Conflict that supports the goal of the group and improves its performance.

Dysfunctional conflict

Conflict that hinders group performance.

Types of Conflict

Task Conflict, Relationship Conflict, Process Conflict

Task conflict

Conflict over content and goals of the work.

Relationship conflict

Conflict based on interpersonal relationships

Process conflict

Conflict over how work gets done

Loci of Conflict

Dyadic Conflict, Intragroup Conflict, Intergroup Conflict

Dyadic conflict

Conflict that occurs between two people

Intragroup conflict

Conflict that occurs within a group or team

Intergroup conflict

Conflict between different groups or teams

The conflict process

A process that has five stages:

1\. potential opposition or incompatibility,

2\. cognition and personalization,

3\. intentions,

4\. behavior, and

5\. outcomes.

Antecedent conditions

communication, structure, and personal variables

Perceived Conflict

Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise.

Felt conflict

Emotional involvement in a conflict that creates anxiety, tenseness, frustration, or hostility.

Conflict-Handling strategies

Competing, Collaborating, Avoiding, Accommodating, Compromising

Competing

A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict.

Collaborating

A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties.

Avoiding

The desire to withdraw from or suppress a conflict

Accommodating

The willingness of one party in a conflict to place the opponent’s interests above his or her own.

Compromising

A situation in which each party to a conflict is willing to give up something to resolve the conflict.

Negotiation

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.

Bargaining strategies

Distributive Bargaining, Integrative Bargaining

Distributive bargaining

Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation.

Integrative bargaining

Negotiation that seeks one or more settlements that can create a win-win solution.

Negotiation process

(1) preparation and planning,
(2) definition of ground rules,
(3) clarification and justification,
(4) bargaining and problem-solving, and
(5) closure and implementation

Organizational structure

The way in which job tasks are formally divided, grouped, and coordinated

Organizational design

work specialization, departmentalization, chain of command, span of control, centralization and decentralization, formalization

Work specialization

The degree to which tasks in an organization are subdivided into separate jobs.

Departmentalization

The basis by which jobs in an organization are grouped together.

Departmentalization based on product or service

under an executive who has complete global responsibility for it.

advantage: increased accountability for performance because all activities related to a specific product or service are under the direction of a single manager

Departmentalization based on geography

each function (for example, sales) may have western, southern, midwestern, and eastern regions. This form is valuable when an organization’s customers are scattered over a large geographic area and have similar needs within their locations

Departmentalization based on process

groups people by where in the production process their work usually occurs. Works for processing customers as well as products

Departmentalization based on the type of customer

Grouping activities on the basis of common customers or types of customers

Chain of Command

The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.

Authority

The rights inherent in a managerial position to give orders and to expect the orders to be obeyed.

Unity of command

The idea that a subordinate should have only one superior to who he or she is directly responsible.

Span of control

The number of subordinates that a manager can direct efficiently and effectively.

Centralization

The degree to which decision-making is concentrated at a single point in an organization.

Decentralization

can act more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienated from those who make decisions that affect their work lives

Formalization

The degree to which jobs within an organization are standardized.
Boundary spanning: Individuals forming relationships outside their formally assigned groups.

Simple structure

An organizational structure characterized by a low degree of departmentalization, wide spans of control, authority centralization in a single person, and little formalization.

Bureaucracy

An organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into function departments, centralized, narrow spans of control, and decision-making that follows the chain of command.

Functional structure

An organizational structure that groups employees by their similar specialties, roles, roles, or tasks

Divisional structure

An organizational structure that groups employees into units product, service, customer, or geographical market area.

Matrix structure

An organizational structure that creates dual lines of authority and combines functional and product departmentalization.

Virtual structure

A small, core organization that outsources major business functions.

Team structure

An organizational structure that replaces departments with empowered teams, and that eliminates horizontal boundaries and external barriers between customers and suppliers.

Mechanistic model

A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.

Organic model

A strategy that emphasizes the introduction of major new products and services.

Organizational culture

A system of shared meaning held by an organization’s members that distinguishes the organization from others.

Artifacts of organizational culture

Stories, Rituals and ceremonies, Symbols and physical structures, Language

Stories

typically include narratives about the organization’s founders, rule breaking, rags-to-riches successes, workforce reductions, relocations of employees, reactions to past mistakes, and organizational coping.

Rituals and ceremonies

Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable

Symbols and physical structures

What conveys to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate.

Language

Unique terms describe equipment, officers, key individuals, suppliers, customers, or products that relate to the business

Dominant culture

A culture that expresses the core values that are shared by a majority of the organization’s members.

Subculture

Minicultures within an organization, typically defined by department designations and geographical separation

Strong culture vs Weak culture

A culture in which the core values are intensely held and widely shared. The more members who accept the core values and the greater their commitment, the stronger the culture and the greater its influence on member behavior.

Characteristics of organizational culture

Adaptability, Detail orientation, Results/outcome orientation, People/customer orientation, Collaboration/team orientation, Integrity

Adaptability

The degree to which employees are encouraged to be innovative and flexible as well as to take risks and experiment.

Detail orientation

The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

Results/outcome orientation

The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.

People/customer orientation

The degree to which management decisions consider the effect of outcomes on people within and outside the organization.

Collaboration/team orientation

The degree to which work activities are organized around teams rather than individuals.

Integrity

The degree to which people exhibit _______ and high ethical standards in their work.

Competing Values Framework

The Clan, The Adhocracy, The Market, The Hierarchy

The Clan

A culture based on human affiliation. Employees value attachment, collaboration, trust, and support.

The Adhocracy

A culture based on change. Employees value growth, variety, attention to detail, stimulation, and autonomy.