Management 301 Exam 2 Review

Transcription

1 Chapter 1: The Exceptional Manager pg Management 301 Exam 2 Review 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 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 co workers Differential Pay System: more efficient workers earned higher wages o 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 organization o 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

2 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 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 so called human relations movement in the 1950s and 1960s Chapter 12: Motivating Employees pg What are the Needs Based or Content Perspectives? pg Content Perspectives (Need Based): 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 Theory o Alderfer s ERG Theory o McClelland s Acquired Needs Theory o Herzberg s Two Factor 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 self respect, status, reputation, recognition, and self confidence o 5. Self Actualization Needs : the highest level of need, self actualization 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?

3 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 them o Personal Power: the desire to dominate others and involves manipulating people for one s own gratification o Institutional Power: need to solve problems that further organizational goals What is Herzberg s Two Factor Theory? Two Factor 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? Process Perspectives: concerned with the thought processes by which people decide how to act how employees choose behaviour to meet their needs Whereas need based 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? 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? 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

4 o o o Inputs: the inputs that people perceive they give to an organization are their time, effort, training, experience, intelligence, creativity, seniority, status, etc. Outputs: the outputs are the rewards that people receive from an organization: pay, benefits, praise, recognition, bonuses, promotions, status perquisites, etc. 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 Goal Setting 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 goal setting theory, goals must be specific, challenging, achievable, and linked to action plans o 1. Goals Should Be Specific o 2. Goals Should Be Challenging o 3. Goals Should Be Achievable o 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 Positive Reinforcement o Reward only desirable behaviour o Give rewards as soon as possible o Be clear about what behaviour is desired o Have different rewards and recognize individual differences Punishment o Punish only undesirable behaviour o Give reprimands or disciplinary action as soon as possible o Be clear about what behaviour is undesirable o Administer punishment in private o Combine punishment and positive reinforcement

5 What is the difference between job simplification, job enlargement, and job enrichment? 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? 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 Characteristics o 1. Skill Variety: describes the extent to which a job requires a person to use a wide range of different skills and abilities o 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 end o 3. Task Significance: describes the extent to which a job affects the lives of other people, whether inside or outside the organization o 4. Autonomy: describes the extent to which a job allows an employee to make choices about scheduling different tasks and deciding how to perform them o 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? Characteristics of the Best Incentive Compensation Plans o Rewards must be linked to performance and be measurable o Rewards must satisfy individual needs o Rewards must be agreed on by manager and employees o Rewards must be believable, and achievable by employees Popular Incentive Compensation Plans o 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 sales o Bonuses: cash awards given to employees who achieve specific performance objectives o Profit Sharing: the distribution to employees of a percentage of the company s profits o Gain Sharing: the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity o Stock Options: certain employees are given the right to buy stock at a future date for a discounted price o Pay for Knowledge: ties employee pay to the number of job relevant skills or academic degrees they earn

6 What are Nonmonetary Ways of Motivating Employees? pg 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 met o The need for work life balance o The need to expand skills o The need to matter Flexible Workplace: includes part time work, flextime, compressed workweek, job sharing, and telecommuting Chapter 14: Power, Influence and Leadership pg What are the differences between managers and leaders? pg 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 them o 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 changes o 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 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 Rewards o 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

7 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 Attraction o Referent Power: power deriving from one s personal attraction What are the 5 approaches to leadership? p Trait Approaches o Kouzes & Posner s Five Traits o Gender Studies o Leadership Lessons from the GLOBE Project 2. Behavioural Approaches o Michigan Model o Ohio State Model 3. Contingency Approaches o Fiedler s Contingency Model o House s Path Goal Revised Leadership Model o Hersey s Situational Leadership Model 4. Full Range Approach o Transactional Leadership o Transformational Leadership 5. Four Additional Perspectives o Leader Member Exchange (LMX) Model o Shared Leadership o Greenleaf s Servant Leadership Model o E Leadership What is Trait theory? pg Trait Approaches to Leadership: attempt to identify distinctive characteristics that account for the effectiveness of leaders o 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) forward looking, (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 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

8 What are the gender differences in traits? pg Women executives, when rated by their peers, underlings, and bosses, score higher than their male counterparts on a wide variety of measures from producing high quality work to goal setting to mentoring employees Women excel in traits such as teamwork and partnering, being more collaborative, seeking less personal glory, being motivated less by self interest than in what they can do for the company, being more stable, and being less turf conscious 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 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 others o 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 Path Goal Leadership Model by House The Situational Leadership Model by Hersey What are Fiedler s 3 dimensions pg Contingency Leadership Model: determines if a leader s style is (1) task oriented or (2) relationship oriented and if that style is effective for the situation at hand The Three Dimensions of Situational Control o Leader Member 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 group o 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?

9 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 Outcomes o Step 2: Identify Relevant Employee Leadership Behavious o Step 3: Identify Situational Conditions o Step 4: Match Leadership to the Condition at Hand o Step 5: Determine How to Make the Match What are the characteristics of a transactional vs. transformational leader? Pg 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 self interests o Transformational Leaders are influences by two factors Individual Characteristics: the personalities of such leaders tend to be more extroverted, agreeable, and proactive than non transformational 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 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, single minded, 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 one on one 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 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

10 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 Formal Groups: group established to do something productive for the organization and is headed by a leader o May be a division, a department, a work group, or a committee o May be permanent or temporary o 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 membership o 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 day to day operations Project Teams: work to do creative problem solving, often by applying the specialized knowledge of members of a cross functional team o Cross Functional 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 Continuous Improvement Teams: consist of small groups of volunteers or workers and supervisors who meet intermittently to discuss workplace and quality related problems Self Managed Teams: groups of workers who are given administrative oversight for their task domains o Involves delegated activities such as planning, scheduling, monitoring, and staffing What are the stages of team development? pg 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 emerge o 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

11 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 Performance Goals & Feedback 2. Motivation Through Mutual Accountability 3. Size: Small Teams or Large Teams? o Small Teams: 2 9 members for better interaction & morale Advantages: better interaction & better morale Disadvantages: fewer resources, possibly less innovation, unfair work distribution o Large Teams: 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 Behave o Roles: socially determined expectations of how individuals should behave in a specific position o Task Role: (or task oriented role) consists of behaviour that concentrates on getting the team s tasks done o Maintenance Role: (or relationship oriented 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 together o 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

12 o o o Symptoms of Groupthink Invulnerability, inherent morality, and stereotyping of opposition Rationalization and self censorship Illusion of unanimity, peer pressure, and mindguards Groupthink versus the wisdom of crowds The Results of Groupthink: Decision Making Defects Reduction in alternative ideas Limiting of other information Preventing Groupthink: Making Criticism & Other Perspectives Permissible Allow criticism & other perspectives Chapter 4: Global Management pg What are Hofstede s 4 Cultural Dimensions? pg 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 situations o High Power Distance: people accept inequality in power among people, institutions, and organizations o 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 risk o High Uncertainty Avoidance: people feel uncomfortable with uncertainty and support beliefs that promise certainty and conformity o 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 relationship oriented feminine traits, such as cooperation and group decision making What are the Cultural Variations? pg Language Interpersonal Space Communication Time Orientation o Monochronic Time: preference for doing one thing at a time o Polychronic Time: preference for doing more than one thing at a time Religion