MGMT Final Flashcards

Referent Powers: has personal characteristics thatappeal to others and he is admired.

Expert Power: has certain expertise or knowledge;people comply because they believe in, can learn from, or can otherwise gainfrom that expertise.

Trait Approach

Behavioral Approach

Contingency Theory

Contemporary Approach

Leadership approaches that attempts to determinethe personal characteristics that great leaders share.

Drive,

Leadership Motivations (Want to lead),

Integrity (honesty/credibility),

Self-confidence,

Knowledge of the Business.

Actions taken to ensurethat the work group or organization reaches its goals (concern for production,focus on quality, quantity of output, plans, deadlines, etc.)

Actions taken to ensurethe satisfaction of group members, develop and maintain harmonious workrelationships, and preserve the social stability of the group

How do people describetheir leaders

Developed a questionnaire(LBDQ)

Initiating Structure &Consideration

Effective &ineffective leaders compared to see if they differ

Job-centered &Employee-centered behavior

Leadership perspective proposing that universallyimportant traits and behaviors do not exist, and that effective leadershipbehavior varies from situation to situation.

A life-cycletheory of leadership postulating that amanager should consider an employee’s psychological and jobmaturity before deciding whether taskperformance or maintenance behaviors are more important.

The level of theemployee’s skills and technical knowledge relative to the task being performed.

An employee’s self-confidence and self-respect

-model of leadership effectiveness

-a situational approach toleadership postulating effectiveness depends on the personal style of theleader and the degree to which the situation give s the leader control, power,and influence over the situation

Suggests that the primary functions of a leader are tomake valued rewards available and to clarify the kinds of behavior that willlead to those rewards

based on expectancy theoryof motivation

in other words, the leadershould clarify the paths to goal attainment!

identifies 4 kinds ofleader behavior: directive, supportive, participative, achievement-oriented

identifies 2 situationalfactors: Personal characteristics of subordinates, Environmentalcharacteristics of the workplace (Task structure, authority system, nature ofthe work group)

1. Is the quality of decision significant?
2. Do I have enough information?
3. Is the problem structured?
4. Is acceptance by subordinates crucial?
5. Is acceptance likely if I decide alone?
6. Is there goal congruence?
7. Is conflict between group members likely?

-highlights the importance of leader behaviorsnot just toward the group as a whole but toward individuals on a personalbasis. Primarily focuses on groupmaintenance. 

According to LMX – Maintenance behaviors such astrust, open communication, mutual respect, obligation and loyalty form thecornerstone of relationships that are satisfying and perhaps more productive.

-Factors in theworkplace that can exert the same influence on employees as leaders wouldprovide.

-Concept was developed in response to the fact thatexisting theories do not account for situations in which leadership is simplynot needed

-this theory identified situations in which the leader behaviors are neutralized or replaced by certain charcteristics: Employee, Task, Organization.

1. Is the quality of decision significant?
1. Do I have enough information?
2. Is the problem structured?
3. Is acceptance by subordinates crucial?
4. Is acceptance likely if I decide alone?
5. Is there goal congruence?
6. Is conflict between group members likely?

ability, experience, need for independence,professional orientation, indifference toward organizational rewards

formalization, group cohesion, inflexibility, rigidreward structure (which robs leader of her reward power)

dominant,self-confident, conviction, confidence in followers, satisfy other needs

A leader who motivates people to transcend theirpersonal interests for the good of the group.

o  transform by:

    -motivate followers

    -acquire identification from followers

    -heighten followerself-esteem & self-efficacy

Leaders who manage through transactions, using theirlegitimate, reward, and coercive powers to give commands and exchange rewardsfor services rendered.

-contingentrewards;

-Mgmt by exception -- Transaction leaders live by “if it aint broke,don’t fix it”

leaders who talkabout positive change but allow theirs elf-interest to take precedence overfollowers’ needs

-ideas about charisma; not just top downleadership.

-in order to spreadknowledge, you can start with small groups that spread to other small groups,only need a few people to lead “tribes”

-alaw formulated by Edward Thorndike in 1911 stating that behavior that isfollowed by positive consequences will likely to be repeated 

-This powerful law of behavior laid the foundation for countless investigations into the effects of the positive consequences, called reinforcers (Positive consequences that motivate behavior).

o  Suggested people are motivated by a sequence of 5needs and that these needs can be arranged in a hierarchy of importance(physiological, safety, social, ego, self-actual.)

  -As long as lowerlevel needs are unsatisfied, they serve as motivators

o  A human needs theory postulating that people havethree basic sets of needs that can operate simultaneously.

§ (Growth,Relatedness, Existence)

Identified threebasic needs:

·    achievement:strong orientation toward success or obtaining a goal

·    affiliation: tobe liked by other people

·    power: toinfluence or control people

(Expectancy, instrumentality, valence)

A theory proposing that people will behave based ontheir perceived likelihood that their effort will lead to a certain outcome andon how highly they value that outcome.

    (effort --> expectancy --> performance -->instrumentality--> outcome)

    The perceived likelihood that performance will befollowed by a particular outcome.

The value an outcome holds for the personcontemplating it.

managerial implications:

  -increaseexpectancies

  -identifypositively valent outcomes

  -makeperformance instrumental toward positive outcomes

o  Removing or withholding an undesirable consequence (+action)

o  Administering an aversive consequence.

Factors that makea job more motivating, such as additional job responsibilities, opportunitiesfor personal growth and recognition, & feelings of achievement

o  Fundamental assumption:  inputs vs. outcomes

o  Who is the referent?

o  Reactions to inequity

o  Broader perspectives of equity

o  Managerial implications

according to Equity theory,motivation is created by people’s attempts to restore equity   

A motivationtheory stating that people have conscious goals that energize them and directtheir thoughts and behaviors toward a particular end.

o  SMART goals are the best

e.g., what are the2 main differences between Maslow’s Need theory and Alderfer’s ERG theory

controlbased on the use of pricing mechanisms and economic information to regulateactivities within organizations

1. set performance standards

2.  measure performance

3.  compare (with standards)

4.  determine deviation

5.  meet standards?

6.  yes- reinforce and continue work, no- take correctiveaction

a managerial principlestating tat control is enhancing by concentrating on the exceptions to orsignificant deviations from the expected result or standard

aperiod assessment of a company’s own planning, organizing, controlling,leading, and controlling processes

theprocess of investing what is being done and comparing the results with thecorresponding budgets data to verify accomplishments or remedy differences

Thecontrol process used before operations begin, including policies, procedures,and rules designed to ensure that planned activities are carried out properly.

A quality program designed toreduce defects and help lower costs, save time, and improve customersatisfaction

-Basedon a statistical standard that established a goal of producing fewer than 3.4defects per million units or procedures, which means it is operating at a99.99966% level of accuracy

-Companies using sigma six include: GE, 3M, Dow Chem, American Express, Sony, Nokia, J&J, etc.

A method of cost accountingdesigned to identify streams of activity and then to allocate costs acrossparticular business processes according to the amount of time employees devoteto particular activities

- whatpicture of the organization does each paint

-Know thefinancial ratios covered in the text (liquidity- current ratio; leverage-debt-equity; profitability- ROI)

-Knowwhat market and clan control are and the difference between them

A report that showsthe financial picture of a company at a given time and itemizes assets,liabilities, and stockholders’ equity

·    an itemizedfinancial statement of the income and expenses of a company’s operations

A summary of the cash receipts and cash payments for a specific period of time

·    measureschanges in cash

·    income, financing, operating

• A leverage ratio that indicates the company’sability to meet its long-term financial obligations

• A profitability ratio of profit to capital used,or a rate of return from capital

· Involves the useof economic forces- and the pricing mechanisms that accompany them- to regulate performance.

• Basic principles of market control can operate at the  corporate,  business unit/department, or individual level

• For example, in the case where output has value to other people, aprice can be negotiated for it’s exchange.

As a market for these transactions becomes established:

• Price becomes and indicator of the value of the good or service

• Price competition has the effect of controlling productivity & performance

·    The Role ofEmpowerment and Culture

• Employees jobs have changed

• The nature of management has changed

• The employment has changed

1. Mustbe a need, or demand, for the technology

2.Meeting the need must be theoretically possible, and the knowledge to do somust be available from             basicscience

3.Must be able to convert the scientific knowledge into practice in bothengineering and economic terms

early problemswith many companies developing and experimenting with technologies, innovationtends to be the highest at this stage

problems areresolved and managers can now learn to make the technology cost effective andimprove deficiencies

I. (13.5%)- critical to success, members includewell-respected opinions

I. (16%)- highly conservative and suspicious ofinnovation and change

1) Companies competitivestrategy

2) Benefits of technology

3) Characteristics of the organization

1)emerging

2)pacing

3)key

4)base

I. tech that is commonplace in the industry; everyonemust have them to be able to operate.

I. assess external demand for tech. (short/long run)

assess the fit with culture and managerial systems

1) internal development

2) purchase

3) contracted development

4) licensing

5) technology trading

6) research partnerships and joint ventures

7) acquisition of an owner of the technology

if not easily purchased, may be licensed for a fee

I. trade tech. with other countries

I. jointly pursuing tech. development

is the art and science of choosing target markets and getting, keeping, andgrowing customers through creating, delivering, and communicating superiorcustomer value.

list price, discounts,allowances, payment period, credit terms

sales promotion, advertising,sales force, public relations, direct marketing

channels, coverage,assortments, locations, inventory, transport

needs:basic human requirements, food, air, water, clothing, entertainment, etc

wants:Needs become wants when they are directed toward specific objects that mightsatisfy those                         needs,shaped by society

demands:Wants for specific product backed by an ability to pay!

·    new consumer capabilities:

·    A substantial increase in buying power

·    A greater variety of available goods and services

·    A great amount of information about practicallyanything

·    Greater ease in interacting and placing and receivingorders

·    An ability to compare notes on products and services

·    An amplified voice to influence public opinion

companyis very powerful and important in the world, is everywhere, branding isimportant and it is also important for the company to stay true to who they are(changing the formula back to what they people wanted)

thecompany had a niche market, but changed to go towards the mass market andultimately failed, went back to their roots and focused on what they weresuccessful on and did better