management quiz 1

Contingency Models of Leadership

Fiedler's contingency model focus: describes two leadership styles, relationship-oriented and task oriented, and kinds of leader will be most effective -whether a relationship-orienated or a task oriented leader is contingent on the situation Houses's path goal theory focus: describes how effective leader motivate their followers. -the behaviors that the management should engage in to be effective leaders are contingent on the nature of the subordinates and the work they do. Leader substitutes model focus: describes when leadership is unnecessary. -whether leadership is necessary for subordinates to preform highly contingent on characteristics of subordinates and the situation.

building blocks of competitive advantage

1 efficiency, 2 quality, 3 innovation, and 4 responsiveness to customers.

middle managers

A manager who supervises first-line managers and is responsible for finding the best way to use resources to achieve organizational goals

lots of stuff in history slides

Activity-Based Costing • Based on George Staubus' AcEvity CosEng and Input- Output AccounEng developed in the US in the 70's and 80's • CosEng methodology whereby costs are directly assigned to products/services • Indirect costs are assigned into direct costs • Cost allocaEon • Costs can be soundly esEmated for products and services • Products/services that are underperforming can be eliminated or modified • Costly and not widely used • Allocated Cost AccounEng • Kaplan's Balanced Scorecard 19 Business Process Reengineering • Redesign of business process, products and systems to increase efficiency and focus on customer needs • Michael Hammer and James Champy in the early 1990's • Unlike TQM, it's a radical redesign instead of incremental improvement • Like TQM, it involves all employees, not just managers, and customers • The process • Define the Vision • IdenEfy which processes to reengineer • What is and is not working • Which IT systems should influence the reengineering • Design the process and build a pilot or prototype • Evolved into head count reducEon and cost-cutng 20  Balanced Scorecard • Developed by Dr. Robert S. Kaplan and David P. Norton in the early 1990's • Highly coordinated system of management combining financial and non-financial measures • Four areas measured • Financial Performance • Customers • Business Processes • Learning and Growth • Can be broken down into sub-levels and funcEons in an organizaEon • Employee performance can be linked to to overall organizaEon's goals • Simplified version of ABC 21  Balanced Scorecard 

Trait Model

Assumed good leaders were born • Researchers sought the ideal characteristics • Some leaders have these traits, some don't! Intelligence: Helps managers understand complex issues and solve problems. Knowledge and expertise: Help,managers,make,good,decisions,and,discover,ways,to. Dominance : Helps, managers, influence, their, subordinates, to, achieve, organizational, goals. SelfConfidence:Contributes,to,managers',effectively,influencing,subordinates,ard,persisting,when,faced,with, obstacles,or,difficulties., High energy: Helps,managers,deal,with,the,many, demands,they,face. Tolerance for stress: Helps,managers,deal,with,uncertainty,and,make,diffrcult, decisions., Integrity and honesty: Help,managers,behave,ethically,and,earn, their, subordinates' trust and confidence Maturity: Helps,managers,avoid,acting,selfishly,,control,their,feelings,,and, admit,when,they,have,made,a,mistake.,

behavioral models 

Behavior Models (OSU) • Ohio State found two major dimensions of leadership behavior • ConsideraBon • People-oriented behaviors such as respect, openness to employee's ideas, and concern for employee well-being • IniBaBng structure • Behaviors related to task and goal orientaBon, such as giving clear direcBons, monitoring employees' performance, and planning and selng work schedules and deadlines Behavior Models (UM) • Michigan studied effecBve supervisors and found two dimensions of behavior • Job-Centered Behavior • Focus primarily on the work a subordinate is doing • Employee-Centered Behavior • Focus primarily on subordinates as people  Behavior Models (UT) consist of high or low people concern and high or low task concern. example: country club manager is high people concern and low task concern 

bureaucracy

Bureaucratic Control Systems • Bureaucracy (German professor Max Weber; early 1900s) • Formal system designed to ensure efficiency and effectiveness • Specific rules, standards and hierarchical authority • Focus on organizational management efficiency instead of person-task efficiency • Employees abide by established rules, policies and standards • Standard Operating Procedures • Focus is on the roles rather than the individual • Responsibilities and duties linked to jobs and roles • Examples?  The Good and the Bad of Bureaucracy • Rules and regulations are more ofen than not robust and effective • They can promote better performance • Safety • But these control systems can • Inhibit innovation and honest communication • Suspend good judgment in favor of following the rules • Lead to a repressive work environment • Slow down decision making

ceremonies and rites (part of organizational culture)

Ceremonies and Rites • Ceremonies • Formal events that recognize incidents of importance to the organization as a whole and to specific employees • Rites of passage • Determine how individuals enter, advance within, or leave the organization -basic training. purpose to internalize norms and values • Rites of integration • Build and reinforce common bonds among organizational members -office christmas party. purpose:build common norms and values • Rites of enhancement • Let organizations publicly recognize and reward employees' contributions and thus strengthen their commitment to organizational values -motivates commitment

Stories and Language

Communicate organizational culture • Reveal behaviors that are valued by the organization and practices that are frowned on Organizational language encompasses how people dress, the offices they occupy, the cars they drive, and the degree of formality they use when addressing one another

Self-Esteem

Degree to which individuals feel good about themselves and their capabilities • High self-esteem makes a person feel competent, deserving, and capable • Persons with low self-esteem have poor opinions of themselves and their abilities

Types of Cultures

Innovative: • Little bureaucracy, autonomy, risk-taking encouraged Customer Service Oriented Diverse • Increases competitive advantage • Can lead to conflict Ethical • IntegraMon of ethics into the culture • Must have strong support from management Sustainable and Socially Responsible • Reduce impact on environment • Instead of "us and them," it's "us" Holistic - Mind, Body, Heart and Spirit

Locus of Control

Internal: Tendency to locate responsibility for one's fate within oneself • Own actions and behaviors are major and decisive determinants of job outcomes • It helps to ensure ethical behavior and decision making in an organization • External: Tendency to locate responsibility for one's own fate in outside forces and to believe that one's own behavior has lifle impact on outcomes

House's Path-Goal Theory

Leader is responsible for moBvaBng employees to obtain goals • Expectancy theory of moBvaBon (covered later) • Clarify (and clear) the path toward organizaBonal and (meaningful) personal goals, and link (valued) rewards to those goals • Four kinds of interchangeable leadership behaviors that moBvate subordinates

Fiedler's Model

Leadership effectiveness depends on the characteristics of • The Leader and • The Situation Two basic leader styles: Relationship-oriented • Leaders concerned with developing good relations with their subordinates and to be liked by them Task-oriented • Leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment Fiedler: Leadership style is an enduring characteristic that cannot be changed!

Transactional Leadership

Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance •A more traditional approach to management • Subordinates tend to have lower levels of job satisfaction and performance than with transformational leadership • But, many transformational leaders engage in transactional leadership • Reward subordinates for a job well done and notice and respond to substandard performance

leader v manager

Manager • Someone who coordinates the efforts of people to accomplish desired goals and objectives, using available resources efficiently and effectively Leader • Someone who can influence others to achieve goals leadership is important because • It garners followers to embrace a vision and ultimately achieve the organization's mission • It takes an organization where it would not necessarily go, left to its own devices

Mary Parker Follett

Mary Parker Follett • Late 1800's, early 1900's • Concerned that the human side was being ignored • The best people to solve problems are those closest to them • What does this mean? • Span-of-control authority? • "Power with" rather than "power over" people • Managers should be coaches rather than dictators • Cross-functional teams • Horizontal versus vertical structure • Ahead of her time

Mayo and The Hawthorne Studies

Mayo and The Hawthorne Studies • Hawthorne Studies (1924 - 1932) by Harvard psychologist Elton Mayo • Hawthorne Works of the Western Electric Company • When workers perceived that management cared or gave special treatment, morale and producEvity improved • Initially set up to test producEvity based on lighting • Uh-oh; not what we expected (The Hawthorne Effect) • Managers' behavior or leadership approach impacts performance • Subsequent studies found that work groups had an effect on producEvity; social pressure dictates acceptable levels of producEvity • The Human RelaEons Movement (early 20th century) • Emphasized placing people, interpersonal relaEonships and group behavior at the center of workplace studies

the three needs

Need for Achievement • Extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence • Need for Affiliation • Extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having other people get along • Need for Power • Extent to which an individual desires to control or influence others

The Revolution (1800s)

Paradigm Shift • Steam power and machinery • Skilled crafsmen in small shops replaced • Factories sprung up with semi-skilled and unskilled workers • Owners/managers of these new factories were totally unprepared • For the first Eme, people were working in large groups • They began to search for new managerial techniques

ohno and deming

Productioon strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. • Developed by Toyota in Japan afer WWII • Taiichi Ohno • "Catch up with America in three years, otherwise the automobile industry of Japan will not survive" • Toyota ProducEon System • Kanban • Inventory is seen as incurring costs, or waste (muda), instead of adding and storing value • Changed relaEonships with vendors • Has evolved to • Lean Manufacturing • World Class Manufacturing

QUANTITATIVE APPROACHES

QUANTITATIVE APPROACHES Early Methods • StaEsEcal Process Control (SPC) • Walter Shewhart - 1920s • Quality control using staEsEcal methods • Monitor and control a process to make as much product with as liRle waste as possible (control charts) • 1988, Sofware Engineering InsEtute applied it to non- manufacturing processes • OperaEons Research • Origins in WWII • Math techniques used to solve management problems (linear programming) • SimulaEon, opEmizaEon, queueing, econometrics, etc.

cultural change

Requirements for changing culture ** • Understand the old culture • Provide support for employees who have ideas • Find most effecMve subculture • Not atacking culture head on - slow down • Treat the vision as a guiding principle for change • Recognizing change will take five to 10 years • Living the culture, not just speaking about it • (DissaMsfacMon x Model x Process) > Cost of Change • Communication, communication, communication Barriers to Cultural Change ** The Wrong Sponsorship -CEO must be involved Balkanization • May be resistance within where the CEO must step in We have no time: the company is in trouble • There is a direct link between culture and business performance but most companies ignore culture We have no need: The company is doing fine • Existing profitability is not a measure of future success

culture and how does it work?

Shared set of beliefs, expectations, values, norms, and work routines that influence how individuals, groups, and teams interact with one another and cooperate to achieve organizational goals • Everything that people in society have learned and shared through traditions, pass on to children, and teach new members... • Three things: Values, Behaviors, Results; values drive behaviors that lead to results • When organizational members are intensely committed to a shared system of values, beliefs, and routines, a strong organizational culture exists • One of the most important factors in business

six sigma and beyond

Six Sigma • Developed by Motorola in 1986 by Bill Smith • Rigorous applicaEon of staEsEcal tools • Removes the causes of defects (errors) and minimizes variability • Differed from previous quality management iniEaEves • Focus on measurable and achievable financial targets • Emphasis on strong management support throughout the organizaEon • Special infrastructure of people to lead the efforts • Champions, Master Black Belts, Black Belts, Green Belts • Commitment to making decision based on data, not guesses • Championed and popularized by Jack Welch of GE in 1995 • By 2006, Motorola reported over $17B in savings • By the late 1990s, 2/3 of Fortune 500 involved with 6 Sigma 23  Beyond Six Sigma • Systems Approach • OrganizaEons are influenced by and interact with their environment • Manager has to manage all parts of the system (inputs, outputs, environment, etc.) • More integraEve models • Business Performance Excellence • CU's own Dr. Jeff Lufig • Implemented at Anheuser Busch, Earthgrains, Inland Steel, ALCOA

Why Study Management?

The more effective and efficient use an organizaJon can make of resources, the greater the relaJve well-being of people • Managers have to understand other people at work, make decisions and take acJons • Understanding management is one important path toward obtaining a saJsfying career

theories

Theory X and Theory Y • Developed by Douglas McGregor in the 1960's at MIT • Two contrasEng models of workforce moEvaEon • Theory X • Workers are lazy, will avoid work if they can, and hate working • Workers must be coerced, controlled, directed, threatened to achieve organizaEonal goals • Workers prefer to be directed, wish to avoid responsibility, have liRle ambiEon • Theory Y • Workers are ambiEous and self-moEvated and exercise self- control; they enjoy their work; it is as natural as play or rest • Workers will exercise self-direcEon and self-control in the service of objecEves to which they are commiRed • Commitment to objecEves is a funcEon of the rewards associated with achievement  Theory X and Theory Y 

Total Quality Management (TQM)

Total Quality Management (TQM) • Management approach to long-term success through continuous process improvement (Kaizen) and focus on the customer. • All members of an organization parEcipate in improving processes, products, services and the culture in which they work • Developed based on the teachings of American consultants in Japan in the 50's and 60's • W. Edwards Deming, Joseph M. Juran, and Armand V. Feigenbaum. • Embraced and popularized by Japanese management • Kaoru Ishikawa, Masaaki Imai • UElized SPC • PDCA • Evolved into team-building, empowerment, with SQC lost

Empowerment

Trusting employees to make decisions and to take responsibility for their decisions and actions • Empowerment contributes to effective leadership by: • Increasing a manager's ability to get things done with the support and help of subordinates • Increasing workers' involvement, motivation, and commitment • Enabling managers to spend less Bme on daily supervision activities • Allowing for quick decisions to be made at all levels • What you need to be empowered • Knowledge and tools • Responsibility and accountability • Authority within span of control • Theory X, Theory Y or... • Theory Z - Employees have discreBonary freedom in local decision making and are trusted to work autonomously

organizational structure

a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals.

top management team

a group composed of the CEO, the coo, and vice presidents of the most important departments of a company. spend most time planning, organizing, and controlling

department

a group of people who work together and possess similar skills or use the same knowledge, tools, or techniques to perform their jobs.

organizational performance

a measure of how eff. and effie. managers use available resources to satisfy customers and achieve organizational goals.

efficiency

a measure of how productively resources are used to achieve a goal goal.minimize input of resources(labor, raw materials and time)

planning

choose appropriate organizational goals and courses of action to best achieve those goals. managers develop strategies for how to achieve high performance. deciding which resources will be needed

outsourcing

contracting with another company, usually abroad, to have it preform an activity the organization previously preformed itself.

Path-Goal Theory Behaviors

directive: defines clear expectations, offers guidance, establishes performance standards, and schedules work tasks participative: collaborates with employees by soliciting input and participation in the decision making process. supportive: creates a pleasant, cooperative environment achievement-oriented: Establishes clear, challenging goals, emphasizes performance excellence, and shows belief in employees ability goal

controlling

establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals.

organizing

establish task and authority relationships that allow people to work together to achieve organizational goals. the outcome of organizing is organizational structure

top managers

manager who establishes organizational goals, decides how departments should interact, and monitors the middle managers

effectiveness

measure of appropriateness of the goals that managers have selected for the organization to pursue and the degree to which the organization achieves those goals.

leading

motivate, coordinate, and energize individuals and groups to work together and achieve organizational goals

first line managers

often called supervisors. a manager who is often responsible for the daily supervision of non managerial employees. spend the most time leading of the 4 levels of managers.

Personality Traits that Affect How Managers Think, Feel and Behave. the five big personality traits

openness to experience,conscientiousness, agreeableness, neuroticism, extraversion

management

planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.

Hofstede's 5 Dimensions of Culture

power distance uncertainty avoidance individualism masculinity long term orientation this is used when comparing different cultures. examples • Power Distance • Japanese value age, Mtles, posiMon whereas Americans are more about equality • Individualism • Japan vs the US • Masculinity • Male traits - CompeMMve, aggressive, "She Gets What She Wants" • Female traits - PaMent, communicaMng, calm, kindness • Uncertainty Avoidance • Americans are more comfortable with uncertainty • Germany; not at all comfortable with uncertainty • Time OrientaMon (Long-Term OrientaMon LTO) • China - success through perseverance; future generaMons will remember • America - If something is bad today, there's always tomorrow • Example • An Italian workplace operated by an American company; they're lazy and • What do Italians value? What is important to them? • Financial incentives aren't as appealing as Mme off, or allowing families to come to work

referent power

power that comes from personal characteristics that people value and want to emulate and that cause people to feel respect or admiration

restructuring

simplifying, shrinking, or downsizing an organization's operations to lower operations cost.

conceptual skills

the ability to analyze and diagnose a situation and distinguish between cause and effect. former education and training are important in helping managers develop these skills.

reward power

the ability to influence others by giving or withholding rewards such as pay, promotions, time off, attractive projects, learning experiences, and the like.

legitimate leadership

the ability to influence others by right of one's position in an organization, the office held, or formal authority.

expert power

the ability to influence others through a combination of special knowledge and/or skills

human skills

the ability to understand, alter, lead, and control the behavior of other individuals and groups.

coercive power

the attempt to influence others through punishment

turnaround management

the creation of a new vision for a struggling company based on a new approach to planning and organizing to make better use of a company's resources and allow it to survive and prosper.

empowerment

the expansion of employees knowledge, tasks, and decision making responsibilities.

technical skills

the job-specific skills

innovation

the process of creating new and improved goods and services that customers want or developing better ways to provide them.

core competency

the specific set of departmental skills, knowledge, and experience that allows one organization to outperform another. allows for competitive advantage(outperform competitors)

Attitudes

• A collection of feelings and beliefs • Job Satisfaction (High) • Managers like their jobs • Feel that they are being fairly treated • Believe that their jobs have many desirable features • Organizational Commitment (High) • Managers believe in what their organizations are doing • Are proud of what the organizaJon stands for • Feel a high degree of loyalty toward their organization

Frederick Taylor ScientiJic Management

• An American mechanical engineer who sought to reduce factory management to a science • The systemaEc study of relaEonships between people and tasks for the purpose of redesigning the work process to increase efficiency. • Beliefs • ProducEon more efficient using division of labor and specializaEon • IntuiEon or rules-of-thumb were not as good as scienEfic management • Used Time-MoEon studies • Peaked in 1910's  ScientiJic Management Pros/Cons • Four principles • Study and experiment to improve the way tasks are performed • Codify the new methods into standard operaEng procedures • Select workers with skills that match the tasks • Higher rewards for performance above the acceptable levels • Pros • Huge cost savings • Huge increases in output • Cons • Managers implemented it selecEvely • Bonuses reaped by managers but not passed on to workers • Worker task levels increased to avoid paying bonuses • Increased performance meant less jobs • Monotony • Human side not accounted for

The Leader Substitutes Model

• Certain characteristics of people or of the situaBon can make direct leadership unnecessary • Characteristics of subordinates—such as their skills, abiliBes, experience, knowledge, and motivation • Characteristics of the situaBon or context —such as the extent to which the work is interesting and enjoyable

Conscientiousness

• Efficient/Organized vs. Easy-going/Careless • Tendency to be careful, scrupulous, and persevering • Managers high in this trait are organized and self-disciplined • Managers low in this trait lack direction and self-discipline

3 secrets of leadership

• Emotional and Social Competence The secret to effective leadership • We learn from experiences Power • The secret to influential leadership • We can learn how to wield power Ethics • The secret to responsible leadership • We can learn how to act responsibly • Vision, inspiration, influence and values

Agreeableness

• Friendly/Compassionate vs. Cold/Unkind • Tendency to get along well with others • Managers high in agreeableness are likable, affectionate and care about others • Managers with low agreeableness may be distrustful, unsympathetic, uncooperative and antagonistic

Competencies (leadership)

• Intelligence is not a measure of a great leader, but • Competencies are. defined: Capabilities or abilities that include both intent and action, and that can be directly linked to how well a person performs on a task or in a job. 5 Components Motives; Traits; Self-Concept; Knowledge; and Skills

Transformational Leadership

• Leaders have social and emotional intelligence, and can inspire others to seek an extraordinary vision • Subordinates of transformational leaders: • Through direct feedback, have increased awareness of the importance of their jobs and high performance • Are aware of their own needs for personal growth and development • Work for the good of the organization, not just themselves they are Are Charismatic • Enthusiastic, self-confident leader who is able to clearly communicate his or her vision of how good things could be • Their vision usually entails improvements in the organization's structure, culture, strategy, decision making, and other critical processes • Intellectually stimulate subordinates • Behavior a leader engages in to make followers be aware of problems and view those problems in new ways, consistent with the leader's vision • Engage in developmental consideration • Behavior a leader engages in to support and encourage followers and help them develop and grow on the job

Contingency Models

• Models propose that the effectiveness of a leader with certain traits is contingent on the situation or context in which he/she performs • Fiedler's Model • House's Path-Goal Theory • The Leader Substitutes Model

Socialization (part of organizational culture)

• Organizational socialization Process by which newcomer's learn an organization's values and norms and acquire the work behaviors necessary to perform jobs effectively

Extraversion

• Outgoing/energetic vs. solitary/reserved • Tendency to experience positive emotions and moods and feel good about oneself and the rest of the world • Extraverts tend to be sociable, affectionate, outgoing and friendly • Introverts tend to be less inclined toward social interaction and have a less positive outlook

Neuroticism (Negative Affluence)

• Sensitive/Nervous vs. Secure/Confident • Tendency to experience unpleasant emotions easily, such as anger, anxiety, depression, or vulnerability, and be critical of oneself and others

Fiedler's Model - Situational Characteristics

• Situational characteristics determine how favorable a situation is for leading • Leader-member relations -The degree of confidence, trust, and respect employees have for their leader (good or poor) • Task structure Degree to which job assignments are formalized and structured (high or low) Position power • Degree of influence a leader has over acBviBes such as hiring, firing, discipline, promotions, and salary increases (strong or weak)

Strong and Weak Cultures

• Strong • A culture in which central values and norms are shared and strongly upheld by most members of the organization • Ogen found in partnerships, family businesses and start-ups • Can inhibit an organization's ability to adapt to change • Weak • A culture in which the values and norms are shared by a limited group of people and employee's goals may not be in line with management's goals • Can be a benefit for diverse and/or international companies • Strong underlying values of learning and adaptation

Openness to Experience

• Tendency to be original, have broad interests, be open to a wide range of stimuli, be daring and take risks; with an appreciation for art, emotion, adventure, unusual ideas, curiosity, and variety of experience • Managers who are high on this trait are likely to take risks and be innovative in their planning and decision making

values

• Terminal Value • Lifelong goals or objectives that an individual seeks to achieve • Open lead to the formation of norms • Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization • Instrumental Value • Mode of conduct that an individual seeks to follow 

Emotional Intelligence (EI)

• The ability to understand and manage one's own moods and emoJons, as well as the moods and emoJons of others • Managers with high levels of EI are able to prevent their emoJons from geIng in the way of making effecJve decisions • EI helps managers perform the interpersonal roles of figurehead, leader, and liaison. • EmoJonal intelligence helps managers understand and relate well to other people

Emotional Intelligence

• The secret to effective management and leadership - a subset of competencies • Emotional intelligence may enable leaders to: • Motivate their subordinates to commit to their vision • Develop a significant identity for their organization and instill high levels of trust and cooperation throughout the organization • Respond appropriately when they realize they have made a mistake

Values, Attitudes, and Moods and Emotions

• Values • Describe what managers try to achieve through work and how they think they should behave • AItudes • Capture managers' thoughts and feelings about their specific jobs and organizations • Moods and emotions • Encompass how managers actually feel when they are managing