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Management 301 Exam 2 Review
Chapter 1: The Exceptional Manager pg. 429
What are the challenges to being a star manager? • Challenge 1: Managing for Competitive Advantage – Staying Ahead of Rivals
o Being responsive to customers, Innovation, Quality, and Efficiency• Challenge 2: Managing for Diversity – The Future Won’t Resemble the Past• Challenge 3: Managing for Globalization – The Expanding Management Universe• Challenge 4: Managing for Information Technology• Challenge 5: Managing for Ethical Standards• Challenge 6: Managing for Sustainability – The Business of Green• Challenge 7: Managing for Your Own Happiness & Life Goals
Chapter 2: Management Theory: Essential Background for the Successful Manager pg. 3866
What is the difference between the Classical viewpoint (Frederick Taylor) and the Behavioral Viewpoint (Elton Mayo)?
• Classical Viewpoint : emphasized finding ways to manage work more efficiently, had two branches – scientific and administrative
o Scientific Management : emphasized the scientific study of work methods to improve the productivity of individual workers
Soldiering : deliberately working at less than full capacity Believed managers could eliminate soldier by: 1. Evaluate a task by scientifically studying each part of the task 2. Carefully select workers with the right abilities for the task 3. Give workers the training and incentives to do the task with the proper
work methods 4. Use scientific principles to plan the work methods and ease the way for
workers to do their jobs• Motion Studies : break down each worker’s job into basic physical
motions and then train workers to use the methods of their bestperforming coworkers
• Differential Pay System : more efficient workers earned higher wageso Taylor believed that by raising production both labour and management could
increase profits to the point where they no longer would have to quarrel over them If used correctly, the principles of scientific management can enhance
productivity, and such innovations as motion studies and differential pay are still used today
o Administrative Management : concerned with managing the total organizationo A flaw in the classical viewpoint is that it is mechanistic it tends to view humans
as cogs within a machine, not taking into account the importance of human needs
o The essence of the classical viewpoint was that work activity was amenable to a rational approach, that through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity
• Behavioural Viewpoint : emphasized the importance of understanding human behaviour and of motivating employees toward achievement
o Human Relations Movement : proposed that better human relations could increase worker productivity
o Behavioural Science : relies on scientific research for developing theories about human behaviour that can be used to provide practical tools for managers
What was the impact of the “Hawthorne Effect”? pg 4546• Investigation conducted by Elton Mayo for whether the workplace lighting level affected
worker productivity• Hawthorne Effect : employees worked harder if they received added attention, if they
thought that managers cares about their welfare and that supervisors paid special attention to them
• Succeeded in drawing attention to the importance of “social man” (social beings) and how managers using good human relations could improve worker productivity
• Led to the socalled human relations movement in the 1950s and 1960s
Chapter 12: Motivating Employees pg. 370396
What are the NeedsBased or Content Perspectives? pg. 374380• Content Perspectives (NeedBased): theories that emphasize the needs that motivate people• Needs: physiological or psychological deficiencies that arouse behaviour• Content Perspectives include four theories
o Maslow’s Hierarchy of Needs Theoryo Alderfer’s ERG Theoryo McClelland’s Acquired Needs Theoryo Herzberg’s TwoFactor Theory
What are the five levels of Maslow’s Hierarchy of Needs?• Hierarchy of Needs Theory : proposes that people are motivated by five levels of needs:
o 1. Physiological Needs : these are the most basic human physical needs, in which one is concerned with having food, clothing, shelter, and comfort and with selfpreservation
o 2. Safety Needs : these needs are concerned with physical safety and emotional security, so that a person is concerned with avoiding violence or threats
o 3. Love Needs : once basic needs and security are taken care of, people look for love, friendship, and affection
o 4. Esteem Needs : after they meet their social needs, people focus on such matters as selfrespect, status, reputation, recognition, and selfconfidence
o 5. SelfActualization Needs : the highest level of need, selfactualization is selffulfillment – the need to develop one’s fullest potential, to become the best one is capable of being
What is McClelland’s Acquired Needs Theory?
• Acquired Needs Theory : states that three needs – achievement, affiliation, and power – are major motives determining people’s behaviour in the workplace
o McClelland believes that we are not born with our needs; rather we learn from the culture – from our life experiences
• Need for Achievement : desire to excel, to do something better or more efficiently, to solve problems, to achieve excellence in challenging tasks
• Need for Affiliation : desire for friendly and warm relations with other people• Need for Power : desire to be responsible for other people, to influence their behaviour or to
control themo Personal Power : the desire to dominate others and involves manipulating people for
one’s own gratificationo Institutional Power : need to solve problems that further organizational goals
What is Herzberg’s TwoFactor Theory?• TwoFactor Theory : proposed that work satisfaction and dissatisfaction arise from two
different factors – work satisfaction from motivating factors and work dissatisfaction from hygiene factors
• Hygiene Factors : factors associated with job dissatisfaction – such as salary, working conditions, interpersonal relationships, and company policy – all of which affect the job context in which people work
• Motivating Factors : factors associated with job satisfaction – such as achievement, recognition, responsibility, and advancement – all of which affect the job content or the rewards of work performance
What are Process perspectives? 381386• Process Perspectives : concerned with the thought processes by which people decide how to
act – how employees choose behaviour to meet their needs• Whereas needbased perspectives simply try to understand employee needs, process
perspective go further and try to understand why employees have different needs, what behaviours they select to satisfy them, and how they decide if their choices were successful
What is the Expectancy Theory? 383385• Expectancy Theory : suggests that people are motivated by two thing: (1) how much they
want something and (2) how likely they think they are to get it• Your motivation, according to the expectancy theory, involves the relationship between your
effort, your performance, and the desirability of the outcomes (such as pay or recognition) of your performance
• Expectancy : the belief that a particular level of effort will lead to a particular level of performance
• Instrumentality : the expectation that successful performance of the task will lead to the outcome desired
• Valence : value, the importance a worker assigns to the possible outcome or reward
What is the Equity Theory? 381383• Equity Theory : focuses on employee perceptions as to how fairly they think they are being
treated compared to others• Elements of Equity Theory: Comparing Your Inputs & Outputs with Those of Others
o Inputs : the inputs that people perceive they give to an organization are their time, effort, training, experience, intelligence, creativity, seniority, status, etc.
o Outputs : the outputs are the rewards that people receive from an organization: pay, benefits, praise, recognition, bonuses, promotions, status perquisites, etc.
o Comparison : suggests that people compare the ratio of their own outcomes to inputs against the ratio of someone else’s outcomes to inputs make judgments about fairness
Either they perceive there is equity – they are satisfied with the ratio and so they don’t change their behaviour, or they perceive there is inequity – they feel resentful and act to change the inequity
What are the four steps to applying Goal Setting Theory? pg. 386• GoalSetting Theory : suggests that employees can be motivated by goals that are specific
and challenging but achievable• To result in high motivation and performance, according to goalsetting theory, goals must
be specific, challenging, achievable, and linked to action planso 1. Goals Should Be Specifico 2. Goals Should Be Challengingo 3. Goals Should Be Achievableo 4. Goals Should Be Linked to Action Plans
What is the Reinforcement Theory? • Reinforcement Theory : attempts to explain behaviour change by suggesting that behaviour
with positive consequences tends to be repeated, whereas behaviour with negative consequences tends not to be repeated
• Reinforcement : anything that causes a given behaviour to be repeated or inhibited• Positive Reinforcement : the use of positive consequences to encourage desirable behaviour• Negative Reinforcement : the removal of unpleasant consequences following a desired
behaviour• Extinction : the withholding or withdrawal of positive rewards for desirable behaviour, so
that the behaviour is less likely to occur in the future• Punishment : the application of negative consequences to stop of change undesirable
behaviour
How can you use Reinforcement Theory to motivate workers? Pg 391393• Positive Reinforcement
o Reward only desirable behaviouro Give rewards as soon as possibleo Be clear about what behaviour is desiredo Have different rewards and recognize individual differences
• Punishmento Punish only undesirable behaviouro Give reprimands or disciplinary action as soon as possibleo Be clear about what behaviour is undesirableo Administer punishment in privateo Combine punishment and positive reinforcement
What is the difference between job simplification, job enlargement, and job enrichment? 387388• Job Design : (1) the division of an organization’s work among its employees and (2) the
application of motivational theories to jobs to increase satisfaction and performance• Job Simplification : the process of reducing the number of tasks a worker performs• Job Enlargement : consists of increasing the number of tasks in a job to increase variety and
motivation• Job Enrichment : consists of building into a job such motivating factors as responsibility,
achievement, recognition, stimulating work, and advancement
What is the Job Characteristics Model? 389390• Job Characteristic Model : consists of (a) five core job characteristics that affect (b) three
critical psychological states of an employee that in turn affect (c) work outcomes – the employee’s motivation, performance, and satisfaction
• Five Job Characteristicso 1. Skill Variety : describes the extent to which a job requires a person to use a wide
range of different skills and abilitieso 2. Task Identity : describes the extent to which a job requires a worker to perform all
the tasks needed to complete the job from beginning to endo 3. Task Significance : describes the extent to which a job affects the lives of other
people, whether inside or outside the organizationo 4. Autonomy : describes the extent to which a job allows an employee to make
choices about scheduling different tasks and deciding how to perform themo 5. Feedback : describes the extent to which workers receive clear, direct information
about how well they are performing the job
How is Compensation a form of Motivation? 394396 • Characteristics of the Best Incentive Compensation Plans
o Rewards must be linked to performance and be measurableo Rewards must satisfy individual needso Rewards must be agreed on by manager and employeeso Rewards must be believable, and achievable by employees
• Popular Incentive Compensation Planso Pay for Performance : bases pay on one’s results
Piece Rate: employees are paid according to how much output they produce Sales Commission: sales representatives are paid a percentage of the earnings
they company made from their saleso Bonuses : cash awards given to employees who achieve specific performance
objectiveso ProfitSharing : the distribution to employees of a percentage of the company’s
profitso GainSharing : the distribution of savings or “gains” to groups of employees who
reduced costs and increased measurable productivityo Stock Options : certain employees are given the right to buy stock at a future date for
a discounted priceo Pay for Knowledge : ties employee pay to the number of jobrelevant skills or
academic degrees they earn
What are Nonmonetary Ways of Motivating Employees? pg. 396399• Employees who can behave autonomously, solve problems, and take the initiative are apt to
be the very ones who will leave if they find their own needs aren’t being meto The need for worklife balanceo The need to expand skillso The need to matter
• Flexible Workplace : includes parttime work, flextime, compressed workweek, job sharing, and telecommuting
Chapter 14: Power, Influence and Leadership pg. 438464
What are the differences between managers and leaders? pg. 438439• Being a Manager: Coping with Complexity
o Determining what needs to be done – planning and budgeting Setting targets or goals for the future, establishing steps for achieving them,
and allocating resources to accomplish themo Creating arrangements of people to accomplish an agenda – organizing and staffing
Creating the organizational structure and hiring qualified individuals to fill the necessary jobs, then devising systems of implementation
o Ensuring people do their jobs – controlling and problem solving Managers monitor results versus the plan in some detail by means of reports,
meetings, and other tools They then plan and organize to solve problems as they arise
• Being a Leader: Coping with Change o Determining what needs to be done – setting a direction
Develop a vision for the future, along with strategies for realizing the changeso Creating arrangements of people to accomplish an agenda – aligning people
Communicate the new direction to people in the company who can understand the vision and build coalitions that will realize it
o Ensuring people do their jobs – motivating and inspiring Appeal to “basic but often untapped human needs, values, and emotions to
keep people moving in the right direction, despite obstacles to change
What are the sources of power? pg. 439440• Authority : the right to perform or command• Power : the extent to which a person is able to influence others so they respond to orders• Personal Power : power directed at helping oneself• Socialized Power : power directed at helping others• 1. Legitimate Power: Influencing Behaviour Because of One’s Formal Position
o Legitimate Power : all managers have – power that results from manager’s formal postions within the organization
• 2. Reward Power: Influencing Behaviour by Promising or Giving Rewardso Reward Power : all manager have – power that results from managers’ authority to
reward their subordinates• 3. Coercive Power: Influencing Behaviour by Threatening or Giving Punishment
o Coercive Power : all managers have – results from managers’ authority to punish their subordinates
• 4. Expert Power: Influencing Behaviour Because of One’s Expertise o Expert Power : power resulting from one’s specialized information or expertise
• 5. Referent Power: Influencing Behaviour Because of One’s Personal Attractiono Referent Power : power deriving from one’s personal attraction
What are the 5 approaches to leadership? p. 443• 1. Trait Approaches
o Kouzes & Posner’s Five Traitso Gender Studieso Leadership Lessons from the GLOBE Project
• 2. Behavioural Approacheso Michigan Modelo Ohio State Model
• 3. Contingency Approacheso Fiedler’s Contingency Modelo House’s PathGoal Revised Leadership Modelo Hersey’s Situational Leadership Model
• 4. FullRange Approacho Transactional Leadershipo Transformational Leadership
• 5. Four Additional Perspectiveso LeaderMember Exchange (LMX) Modelo Shared Leadership o Greenleaf’s Servant Leadership Modelo ELeadership
What is Trait theory? pg. 444446• Trait Approaches to Leadership : attempt to identify distinctive characteristics that account
for the effectiveness of leaderso Two ways in which organizations may apply trait theory
Use Personality & Trait Assessments Use Management Development Programs
What trait did Kouzes and Posner find was most desirable in leaders? Pg. 445• A credible leader should be five traits: (1) Honest, (2) competent, (3) forwardlooking, (4)
inspiring, and (5) intelligent• Honesty was considered particularly important, being selected by 87% of the respondents,
suggesting that people want their leaders to be ethical
What is Globe Project? pg. 446447• Project GLOBE : (Global Leadership and Organizational Behaviour Effectiveness) a massive
and ongoing attempt to develop an empirically based theory to “describe, understand, and predict the impact of specific cultural variables on leadership and organization processes and the effectiveness of these processes”
What are the gender differences in traits? pg. 446447• Women executives, when rated by their peers, underlings, and bosses, score higher than
their male counterparts on a wide variety of measures – from producing highquality work to goalsetting to mentoring employees
• Women excel in traits such as teamwork and partnering, being more collaborative, seeking less personal glory, being motivated less by selfinterest than in what they can do for the company, being more stable, and being less turfconscious
• Women were also found to be better at producing quality work, recognizing trends, and generating new ideas and acting on them
• Women used a more democratic or participative style than men, who were apt to use a more autocratic and directive style than woman
• Women were seen as displaying more social leadership, whereas men were seen as displaying more task leadership
What is the Behavioral approach to Leadership? pg. 448449• Behavioural Leadership Approaches : attempt to determine the distinctive styles used by
effective leaders• Leadership Styles : combination of traits, skills, and behaviours that leaders use when
interacting with otherso Task Orientation vs. People Orientation
What is the Contingency approaches to leadership? pg. 450 How do they compare to Universalist approaches? (a term covered in your Supplementary Materials)
• Contingency Leadership Approach : effective leadership behaviour depends on the situation at hand
o Three Contingency Approaches The Contingency Leadership Model by Fiedler The PathGoal Leadership Model by House The Situational Leadership Model by Hersey
What are Fiedler’s 3 dimensions pg. 450451• Contingency Leadership Model: determines if a leader’s style is (1) taskoriented or (2)
relationshiporiented and if that style is effective for the situation at hand• The Three Dimensions of Situational Control
o LeaderMember Relations : “do my subordinates accept me as a leader?” Reflects the extents to which a leader has or doesn’t have the support, loyalty,
and trust of the work groupo Task Structure : “do my subordinates perform unambiguous, easily understood tasks?
Refers to the extent to which tasks are routine, unambiguous, and easily understood the more structured the jobs, the more influence a leader has
o Position Power : “do I have power to reward and punish?” Refers to how much power a leader has to make work assignments and
reward and punish more power equals more control and influence
What is situational leadership?
• Situational Leadership Theory : leadership behaviour reflects how leaders should adjust their leadership style according to the readiness of the followers
• Applying Situational Theories Five Steps: o Step 1: Identify Important Outcomeso Step 2: Identify Relevant Employee Leadership Behaviouso Step 3: Identify Situational Conditionso Step 4: Match Leadership to the Condition at Hando Step 5: Determine How to Make the Match
What are the characteristics of a transactional vs. transformational leader? Pg 458461• Transactional Leadership : focusing on clarifying employees’ roles and task requirements
and providing rewards and punishments contingent on performance• Transformational Leadership : transforms employees to pursue organizational goals over
selfinterestso Transformational Leaders are influences by two factors
Individual Characteristics: the personalities of such leaders tend to be more extroverted, agreeable, and proactive than nontransformational leaders (women leaders tend to use this more than men)
Organizational Culture: adaptive, flexible organizational cultures are more likely than are rigid, bureaucratic cultures to foster transformational leadership
How do transformational leaders lead others? pg 459460• Transformational leaders have four key kinds of behaviour than affect followers• 1. Inspirational Motivation: “let me share a vision that transcends us all”
o Inspires motivation by offering an agenda, a grand design, and ultimate goal – in short, a vision, “a realistic, credible, attractive future” for an organization
o Charisma: a form of interpersonal attraction that inspires acceptance & support• 2. Idealized Influence: “we are here to do the right thing”
o Inspire trust in their followers because they express integrity by being consistent, singleminded, and persistent in pursuit of their goal
• 3. Individualized Consideration: “you have the opportunity here to grow & excel”o Actively encourage subordinates to grow and to excel by giving them challenging
work, more responsibility, empowerment, and oneonone mentoring• 4. Intellectual Stimulation: “let me describe the great challenges we can conquer together”
o Gifted at communicating the organization’s strengths, weaknesses, opportunities, and threats so that subordinates develop a new sense of purpose
What is Level 5 Leadership from the best seller From Good to Great by Jim Collins?• Level 5 Leadership : Leaders who are humble, but driven to do what's best for the company
Chapter 13: Groups and Teams pg. 408428
What are the reasons for teams? How do groups and teams differ? pg 409• Increased productivity, Increased Speed, Reduced Costs, Improved Quality, Reduced
Destructive Internal Competition, and Improved Workplace Cohesiveness
• Group : two or more freely interacting individuals who share collective norms, share collective goals, and have a common identity
• Team : small group of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable
What is the difference between Formal vs. informal groups? pg. 409410• Formal Groups : group established to do something productive for the organization and is
headed by a leadero May be a division, a department, a work group, or a committeeo May be permanent or temporaryo In general, people are assigned to them according to their skills and the
organization’s requirements• Informal Groups : group formed by people seeking friendship and has no officially appointed
leader, although a leader may emerge from the membershipo May be a collection of friends, bowling team, service club
What are the four purposes of work teams?• Advice Teams : created to broaden the information base for managerial decisions• Production Teams : responsible for performing daytoday operations• Project Teams : work to do creative problem solving, often by applying the specialized
knowledge of members of a crossfunctional teamo CrossFunctional Team : staffed with specialists pursuing a common objective
• Action Teams : work to accomplish tasks that require people with (1) specialized training and (2) a high degree of coordination
What are self managed teams? pg. 411412• Continuous Improvement Teams : consist of small groups of volunteers or workers and
supervisors who meet intermittently to discuss workplace and qualityrelated problems• SelfManaged Teams : groups of workers who are given administrative oversight for their
task domainso Involves delegated activities such as planning, scheduling, monitoring, and staffing
What are the stages of team development? pg. 413414• Stage 1: Forming – “why are we here?”
o Forming : the process of getting oriented and getting acquainted• Stage 2: Storming – “why are we fighting over who does what & who’s in charge?”
o Storming : characterized by the emergence of individual personalities and roles and conflicts within the group
• Stage 3: Norming – “can we agree on roles & work as a team?”o Norming : conflicts are resolved, close relationships develop, and unity and harmony
emergeo Group Cohesiveness : a “we” feeling binding group members together
• Stage 4: Performing – “can we do the job properly?”o Performing : members concentrate on solving problems and completing the assigned
task
• Stage 5: Adjourning – “can we help members transition out?”o Adjourning : members prepare for disbandment
What are the 7 ways to build high performance teams? pg. 415422• 1. Performance Goals & Feedback• 2. Motivation Through Mutual Accountability• 3. Size: Small Teams or Large Teams?
o Small Teams: 29 members for better interaction & morale Advantages: better interaction & better morale Disadvantages: fewer resources, possibly less innovation, unfair work
distributiono Large Teams: 1016 members for more resources & division of labour
Advantages: more resources & division of labour• Division of Labour : work is divided into particular tasks that are
assigned to particular workers Disadvantages: less interaction & lower morale
• 4. Roles: How Team Members are Expected to Behaveo Roles : socially determined expectations of how individuals should behave in a
specific positiono Task Role : (or taskoriented role) consists of behaviour that concentrates on getting
the team’s tasks doneo Maintenance Role : (or relationshiporiented role) consists of behaviour that fosters
constructive relationships among team members• 5. Norms: Unwritten Rules for Team Members
o Norms: general guidelines or rules of behaviour that most group or team members follow
o Why Norms are Enforced: Four Reasons To help the group survive – “don’t do anything that will hurt us” To clarify role expectations – “you have to go along to get along” To help individuals avoid embarrassing situations – “don’t call attention to
yourself” To emphasize the group’s important values and identity – “we’re known for
being special”• 6. Cohesiveness: The Importance of Togetherness
o Cohesiveness : the tendency of a group or team to stick togethero Ways to Build Collaborative Teams
Investing in signature relationship practices Modeling collaborative behaviour Creating a “gift culture” – mentoring and coaching Ensuring the requisite skills Supporting a strong sense of community Assigning team leaders that are both task – and relationship oriented Building on heritage relationships Understanding role clarity and task ambiguity
• 7. Groupthink: When Peer Pressure Discourages “Thinking Outside the Box”o Groupthink : a cohesive group’s blind unwillingness to consider alternatives
o Symptoms of Groupthink Invulnerability, inherent morality, and stereotyping of opposition Rationalization and selfcensorship Illusion of unanimity, peer pressure, and mindguards Groupthink versus “the wisdom of crowds”
o The Results of Groupthink: DecisionMaking Defects Reduction in alternative ideas Limiting of other information
o Preventing Groupthink: Making Criticism & Other Perspectives Permissible Allow criticism & other perspectives
Chapter 4: Global Management pg. 104130
What are Hofstede’s 4 Cultural Dimensions? pg 123124• Individualism/ Collectivism : how loosely or tightly are people socially bonded?
o Individualism : indicates a preference for a loosely knit social framework in which people are expected to take care of themselves
o Collectivism : indicates a preference for a tightly knit social framework in which people and organizations are expected to look after each other
• Power Distance : how much do people accept inequality in power?o Power Distance : refers to the degree to which people accept inequality in social
situationso High Power Distance : people accept inequality in power among people, institutions,
and organizationso Low Power Distance : people expect equality in power
• Uncertainty Avoidance : how strongly do people desire certainty?o Uncertainty Avoidance : people’s intolerance for uncertainty and risko High Uncertainty Avoidance : people feel uncomfortable with uncertainty and
support beliefs that promise certainty and conformityo Low Uncertainty Avoidance : means the people have high tolerance for the uncertain
and ambiguous• Masculinity/ Femininity : how much do people embrace stereotypical male or female traits?
o Masculinity : expresses how much people value performance oriented masculine traits, such as achievement, assertiveness, and material success
o Femininity : expresses how much people embrace relationshiporiented feminine traits, such as cooperation and group decision making
What are the Cultural Variations? pg 127129• Language• Interpersonal Space• Communication• Time Orientation
o Monochronic Time : preference for doing one thing at a timeo Polychronic Time : preference for doing more than one thing at a time
• Religion