MGMT Final Flashcards
- StudyBlue
- Tennessee
- University of Tennessee - Knoxville
- Management
- Management 201
- Jacobs
- MGMT Final Flashcards
Authority,
Control over Rewards,
Control over Punishments,
Appealing Personal Characteristics,
Expertise
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.
EVOLUTION OF LEADERSHIP
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
Ohio State research: Behavior Approach
How do people describetheir leaders
Developed a questionnaire(LBDQ)
Initiating Structure &Consideration
Michigan State research: Behavior Approach
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)
- Is the quality of decision significant?
- Do I have enough information?
- Is the problem structured?
- Is acceptance by subordinates crucial?
- Is acceptance likely if I decide alone?
- Is there goal congruence?
- 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.
- Is the quality of decision significant?
- Do I have enough information?
- Is the problem structured?
- Is acceptance by subordinates crucial?
- Is acceptance likely if I decide alone?
- Is there goal congruence?
- 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
o key set of behaviors:
-they have a vision
-they communicate their vision
-they build trust
-they have positive self-regard
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”
Thorndike’s Law of Effect:
-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.
o extrinsic vs intrinsic rewards
o ways to increase the intrinsic motivation of jobs
o job rotation, job enlargement, job enrichment
Factors that makea job more motivating, such as additional job responsibilities, opportunitiesfor personal growth and recognition, & feelings of achievement
Equity Theory
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
Auditsand budgets
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
Processinnovations
Productinnovations
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
4.The funding, skilled labor, time, space, and other resources needed to develop the tech must be avail.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
Know the 3 factors managers must consider whendeciding whether to lead or follow.
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.
Marketing Mix- the 4 P’s
list price, discounts,allowances, payment period, credit terms
sales promotion, advertising,sales force, public relations, direct marketing
channels, coverage,assortments, locations, inventory, transport
Know the difference betweenneeds, wants and demands
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)
Be familiar with the JonesSoda Company video we watched in class:
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
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