Management Exam 3

Leadership

The process by which a person exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals.

Leader

An individual who is able to exert influence over other people to help achieve group or organizational goals.

Personal Leadership Style

-The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management.

-The challenge is for managers at all levels to develop an effective personal management style.

Servant Leader

-Leader who has a strong desire to serve and work for the benefit of others.

-Shares power with followers

-Strives to ensure that followers’ most important needs are met.

Legitimate Power

The authority that a manager has by virtue of his or her position in an organizational hierarchy.

Reward Power

The ability of a manager to give or withhold tangible and intangible rewards.

Coercive Power

The ability of a manager to punish others.

Expert Power

Power that is based on special knowledge, skills, and expertise that a leader possesses.

Referent Power

Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty.

Empowerment

-The process of giving employees at all levels the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs.

-Increases a manager’s ability to get things done.

-Increases workers’ involvement, motivation, and commitment.

-Gives managers more time to concentrate on their pressing concerns.

Trait Model

-Focuses on identifying personal characteristics that cause effective leadership.

-Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits.

Behavior Model

Identifies the two basic types of behavior that many leaders engage in to influence their subordinates: consideration and initiating structure.

Consideration

Behavior indicating that a manager trusts, respects, and cares about subordinates.

Initiating Structure

Behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.

Contingency Models

Whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he does, and the situation in which leadership takes place.

Fiedler’s Model

-Personal characteristics can influence leader effectiveness.

-Leader style is the manager’s characteristic approach to leadership.

Relationship-Oriented Leaders

Leaders whose primary concern is to develop good relations with their subordinates and to be liked by them.

Task-Oriented Leaders

Leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment.

Leader-Member Relations

The extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading.

Task Structure

The extent to which work is clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it.

Position Power

-The amount of legitimate, reward, and coercive power leaders have by virtue of their position.

-Leadership situations are more favorable for leading when position power is strong.

Path-Goal Theory

-states that effective leaders motivate subordinates to achieve goals by:

-Clearly identifying the outcomes that subordinates are trying to obtain.

-Rewarding workers with these outcomes for high-performance and goal attainment.

-Clarifying the paths to the attainment of the goals.

Directive Behaviors

Setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance.

Supportive Behaviors

Expressing concern for subordinates and looking out for their best interests.

Participative Behavior

Giving subordinates a say in matters that affect them.

Achievement-Oriented Behavior

Setting very challenging goals, believing in workers’ abilities.

Leadership Substitute

A characteristic of a subordinate or characteristic of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary.

Transformational Leadership

-Makes subordinates aware of the importance of their jobs and performance to the organization.

-Makes subordinates aware of their own needs for personal growth and development.

-Motivates workers to work for the good of the organization, not just themselves.

Charismatic Leader

An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be.

Intellectual Stimulation

Behavior a leader engages in to make followers be aware of problems and view these problems in new ways, consistent with the leader’s vision.

Developmental Consideration

Behavior a leader engages in to support and encourage followers and help them develop and grow on the job.

Transactional Leadership

Leaders who motivate subordinates by rewarding them for high performance and reprimanding them for low performance.

The Moods of Leaders

-Groups whose leaders experienced positive moods had better coordination.

-Groups whose leaders experienced negative moods exerted more effort.

Emotional Intelligence

-Helps leaders develop a vision for their firm

-Helps motivate subordinates to commit to the vision

-Energizes subordinates to work to achieve the vision

Group

Two or more people who interact with each other to accomplish certain goals or meet certain needs.

Team

A group whose members work intensely with each other to achieve a specific, common goal or objective.

Synergy

Performance gains that result when individuals and departments coordinate their actions.

Factors that contribute to synergy:

1. Ability to bounce ideas off one another

2. Correct each other’s errors

3. Bring diverse knowledge base to bear on problems

4. Accomplish projects beyond the scope of individuals

Innovation

-The creative development of new products, new technologies, new services, or even new organizational structures.

-To speed innovation, managers need to form teams in which each member brings some unique resource to the team.

Formal Group

A group that managers establish to achieve organization goals.

Informal Group

A group that managers or nonmanagerial employees form to help achieve their own goals or to meet their own needs.

Top-Management Team

A group composed of the CEO, the president, and the heads of the most important departments.

Research and Development Team

A team whose members have the expertise and experience needed to develop new products.

Command Group

A group composed of subordinates who report to the same supervisor; it is also called a department or unit.

Task Force

-A committee of managers or nonmanagerial employees from various departments or divisions who meet to solve a specific, mutual problem.

-It is also called an “ad hoc” committee.

Self-Managed Work Team

A group of employees who supervise their own activities and monitor the quality of the goods and services they provide.

Virtual Team

A team whose members rarely or never meet face-to-face but interact by using various forms of information technology, such as e-mail, computer networks, telephone, fax, and videoconferences.

Friendship Group

An informal group composed of employees who enjoy one another’s company and socialize with one another.

Interest Group

An informal group of employees seeking to achieve a common goal related to their membership in an organization.

Group Dynamics

-The characteristics and processes that influence how a group or team functions.

-Affected by a group’s size and roles, group leadership, group development, group norms, and group cohesiveness.

Members of small groups tend to:

1. Interact more with each other and find it easier to coordinate their efforts.

2. Be more motivated, satisfied, and committed

3. Find it easier to share information

4. Be better able to see the importance of their personal contributions for group success

Division of Labor

Splitting the work to be performed into particular tasks and assigning tasks to individual workers.

Group Role

A set of behaviors and tasks that a group member is expected to perform because of his position in the group.

Role Making

Taking the initiative to modify an assigned role by assuming additional responsibilities.

Forming

Group members get to know each other and reach common understanding.

Storming

Group members experience conflict and disagreements because some members do not wish to submit to the demands of other group members.

Norming

Close ties and consensus begin to develop between group members.

Performing

The real work of the group gets accomplished

Adjourning

-Group is dispersed

-Takes place when a group completes a finished product.

Group Norms

Shared guidelines or rules for behavior that most group members follow.

Group Cohesiveness

The degree to which members are attracted to or loyal to their group.

Three Major Consequences

-Level of participation

-Level of conformity to group norms

-Emphasis on group goal accomplishment

Social Loafing

The tendency of individuals to put forth less effort when they work in groups than when they work alone.

Human Resource Management (HRM)

Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.

Strategic Human Resource Management

The process by which managers design the components of a HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals.

Equal Employment Opportunity (EEO)

- The equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities.

- Equal Employment Opportunity Commission (EEOC) enforces employment laws.

Contemporary challenges for managers:

-How to eliminate sexual harassment

• How to make accommodations for employees with

disabilities

• How to deal with employees who have substance

abuse problems

• How to manage HIV-positive employees and

employees with AIDs

Recruitment

Activities that managers engage in to develop a pool

of qualified candidates for open positions

Selection

The process that managers use to determine the

relative qualifications of job applicants and their

potential for performing well in a particular job

Human Resource Planning (HRP)

-Activities that managers engage in to forecast their

current and future needs for human resources

• Takes into account demand and supply forecasts

Outsource

- To use outside suppliers and manufacturers to

produce goods and services

• Use of contract workers rather than hiring them

Two reasons why human resource planning

sometimes leads managers to outsource are

Flexibility and Cost

Job Analysis

• Identifying the tasks, duties, and responsibilities that

make up a job and the knowledge, skills, and abilities

needed to perform the job

• Should be done for each job in the organizatio

Job analysis methods include:

• Observing what current workers do

• Having workers and managers fill out questionnaires

External Recruiting

• Looking outside the organization for people who have

not worked at the firm previously

• Newspapers advertisements, open houses, on-

campus recruiting, and the Internet

Internal Recruiting

• Managers turn to existing employees to fill open

positions

Benefits of internal recruiting

• Internal applicants are already familiar with the organization

• Managers already know candidates

• Can help boost levels of employee motivation and morale

Lateral move

• Job change that entails no major changes in

responsibility or authority levels

Selection Process

• Managers find out whether each applicant is qualified

for the position and likely to be a good performer

Reliability

• The degree to which the tool or test measures the

same thing each time it is used

Validity

• The degree to which a tool or test measures what it is

supposed to measure

Training

• Teaching organizational members how to perform

current jobs and helping them to acquire the

knowledge and skills they need to be effective

performers

Development

• Building the knowledge and skills of organizational

members so they are prepared to take on new

responsibilities and challenges

Needs Assessment

• An assessment of which employees need training or

development and what type of skills or knowledge

they need to acquire

Classroom Instruction

• Employees acquire skills in a

classroom setting

• Includes use of videos, role-playing,

and simulations

On-the-Job Training

• Training that takes place

in the work setting as

employees perform

their job tasks

Varied Work Experiences

• Top managers need to develop an understanding of,

and expertise in, a variety of functions, products and

services, and markets

Formal Education

• College courses

• Tuition reimbursement is common for managers

taking classes for MBA or job-related degrees

Performance Appraisel

• The evaluation of employees’ job performance and

contributions to their organization

• Traits, behaviors, results

360-Degree Appraisel

• Performance appraisal by peers, subordinates,

superiors, and sometimes clients who are in a

position to evaluate a manager’s performance

Formal Appraisals

• An appraisal conducted at a set time during the year

and based on performance dimensions and measures

that were specified in advance

Informal Appraisals

• An unscheduled appraisal of ongoing progress and

areas for improvement

Pay

• Includes employees’ base salaries, pay raises, and

bonuses

• Determined by characteristics of the organization, the

job, and levels of performance

• Benefits are based on membership in an organization

Pay Level

• The relative position of an organization’s pay

incentives in comparison with those of other

organizations in the same industry employing similar

kinds of workers

Pay Structure

• The arrangement of jobs into categories reflecting

their relative importance to the organization and its

goals, level of skill required, and other characteristics

Benefits

• Legally required: social security, workers’

compensation, unemployment insurance

• Voluntary: health insurance, retirement, day care

Cafeteria-Style Benefit Plan

• A plan from which employees can choose the benefits

they want

Labor Relations

• The activities managers engage in to ensure they

have effective working relationships with the labor

unions that represent their employees’ interests

Unions

• Represent worker’s interests to management in

organizations

• The power that a manager has over an individual

worker causes workers to join together in unions to try

to prevent this

Collective Bargaining

• Negotiation between labor unions and managers to

resolve conflicts and disputes about issues, such as

working hours, wages, benefits, working conditions,

and job security