MGMT 301 Exam #3

Match Style with Situation "Three Contextual Variables" Step #2

-Leader to Member Relationships (Good/Poor) -Task Structure (Structured/Unstructured) -Position Power (Strong/Weak) Ex - Gringots from Harry Potter

SMCR Communication Approach (David Berlo)

-Source (Encodes - based on audience) -Message (Contact Structure - what to say) -Channel (Sight/sound/touch/smell/taste - may hand out products) -Receiver (Decodes - filter) NOISE

What does an Organizational Chart Provide (7)?

1. Division of Work 2. Chain of Control 3. Span of Control 4. Communication Flow 5. Major Units 6. Staff vs. Line 7. Levels of MGMT

What are the 5 types of structure?

1. Functional 2. Divisional 3. Matrix 4. Team 5. Network

Bernard Bass Transformational Leadership

1. Intellectual Stimulation 2. Individualized Consideration 3. Inspirational Motivation 4. Idealized Influence

Leadership Competencies Center for Creative Leadership

1. Leading Self 2. Leading Others 3. Leading the Organization

Power of the Positions

1. Legitimate = The Boss 2. Carrot = Reward 3. Stick = Coercion

Gardner's Leader Traits

1. Physical Vitality 2. Accept Responsibility 3. Understand Others 4. Achievement Need 5. Courage 6. Decisive 7. Assertive 8. Intelligence 9. Task Competence 10. People Skill 11. Motivate Others 12. Trustworthy 13. Self-Confidence 14. Flexible **MEMORIZE**

Big 4

1. Trait 2. Behavior 3. Contingency 4. Transform

Sources of Power

1. Violence 2. Wealth 3. Knowledge

Vision

A clear sense of the future that the manager hope to achieve

Power

Ability to get someone to do something you want done; making things happen the way you want them to; SOURCES OF POWER (VIOLENCE, WEALTH, KNOWLEDGE)

Legitimate Power

Achieving Influence through formal authority, power that a manager can use by virtue of his or her status as the manager; "I am the boss, so you must do what I ask you to do." Ex - I'm the coach so what I say goes

Reward Power

Achieving influence by offering something of value; "If you do what I ask, I will give you this reward." Ex - Mighty Macs, you can start if you stay

Referent Power

Achieving influence through personal identification; employees do what you ask because they admire you and want to interact positively with you; "You should do what I ask because you want to maintain a positive self-defined relationship

Coercive Power

Achieving influence through punishment, "If you don't do what I ask, I will punish you." Ex - Coach says if she doesn't do what she says, she'll cut her

Expert Power

Achieving influence through the use of special knowledge; "You must do what I ask because I possess special expertise." Ex - She knows knowledge about basketball

Formal Structure

An organization's official structure; aligns positions and people in a way that will best help the organization achieve its goals and objectives (found in organizational chart)

Structure

Anything composed of parts arranged together in some way.

Organizing

Arranges people and resources to work toward a goal Arranging tasks, people, and other resources to accomplish the work. 1. Divide Up Work 2. Arrange Resources 3. Coordinate Activities *These are the foundation for the organizational charts.

Projection

Assigning our own personal attributes to another individual; sometimes called the "similar-to-me" error; "Are you like me?"

Stereotype

Assigns attributes commonly associated with a group to a specific individual Ex - Football player -Leader -Jock -Dumb

Impression Managment

Attempt to create desired perceptions in the eyes of others

Servant Leadership

Based on commitment on serving others and helping others use their talents to help orgs better serve society Serving others and helping them use their talents to help organizations benefit society "other centered"

Cross Functional Team Structure

Bring together members from different functional departments. -Used with matrix structures -Requires members of different teams to work together across functions to share expertise and info Con: 1. Can lead to power struggles 2. Conflicting Views 3. Takes a lot of time 4. Questions people's loyalty "Get Big, by Staying Small"

Visionary Leadership

Bringing a clear and compelling sense of the future and the knowledge of how to get there. A leader must also have a plan for getting the org to realize that vision Ex - Bill Gates and Paul Allen (Microsoft) and Larry Page and Sergey Brin (Google) and Jack Welch (GE)

Matrix Structure

Combines functional and divisional approaches to emphasize a project or program teams; gives the org the advantage of both approaches; manages set up teams that operate across functions to support specific products or programs Pros: 1. Performance accountability rests with program, product, or project managers 2. Better communication across functions 3. Teams solve problems at their levels 4. Top managers spend more time on strategy Cons: 1. Two boss system that can lead to power struggles 2. Costly and time consuming

What did Michael Dell and Dell Company do for restructuring and why?

Dell Company had an organization structure that got unwildly when then had 20 people reporting to 1 CEO and the CEO didn't want to say no to people. So..... -Sat down with each person -Told them what they were going to do and why they were going to do it - Grouped the 4 managers of the US market into one - Simplified structure - Created new positions in investment areas

Conscientiousness

Dependable, organized, and focused on getting the job done; a person who is not conscientious is impulsive, careless, and not focused on achievement Pos - Works well Neg - Works Poor

Human Relations Leader

Emphasizes people over tasks; these leaders are interpersonally engaging, caring toward others, sensitive to others' needs/ feelings, and tend to nurture good working relationships LOW Concern for Task High Concern for People *POSITIVE*

Supportive Leader

Ensures that work is more pleasant, treats workers as equals and shows concern about workers

Examples of Network Structure

Ex - Dream Works created Madagascar, Shrek, and Kung Fu Panda Apple outsources to have other companies make their products.

Example of Matrix Structure

Ex - Lockheed Martin A defense contractor that broke its company up into Defense, Info Tech, and Space

Examples of Functional Structure

Ex - Mars Inc. People were only concerned with success in their own region and not the company as a whole Ex - CEO of Yahoo Carol Bartz Home page didn't want to drive traffic toward finance page because they wanted to keep the attention on the homepage

Example of Cross Functional Team Structure

Ex - Polaroid Corp made medical imaging system in 3 years and originally they thought it was going to take them 6 years W.L Gore

Example of Divisional Structure

Ex - Toyota brought engineering, manufacturing, and sales all under one boss Ex - Fiat took over Chrysler and broke 3 brands (Chrysler, Dodge, and Jeep) with 3 different CEOS GM did the same with (Buick, Cadillac, Chevrolet, and GMC)

Facing the Giants Ex

Example of organizational and personal transformational leadership style -Death Crawl -Pushed him to his limit carrying the kid

Span of Control: Flat Structure

Fewer levels; wider span of control Ex - Start Ups/Small Companies Instagram (17 people report to one person) Ron John's class, 250 people reporting to just him

Fielder's Contingency Model

Fielder proposed that leadership success depends on achieving an appropriate match between situational demands and leadership style. Fielder believed that each manager has a predominate leadership style that is rooted in his/her personality and therefore difficult to change. The model analyzes leader-member relations, task structure, and position power. This is the most favorable situation.

Least-Preferred Coworker Scale (LPC) Step #1

Fielder's instrument for classifying leadership styles as either task motivated or relationship motivated Task Motivated (LOW LPC Score) Relationshio Motivated (HIGH LPC Score)

Good and Bad Points of Informal Organization

Good Points 1. Can be very helpful in getting work accomplished 2. Fills gaps missing in the formal structure and help compensate for its inadequacies 3. Help people learn their jobs and solve problems while doing them 4. Make it easier to ask friends and others for help 5. Provide social and emotional support *Good for times of change* Bad Points 1. Susceptible to rumors, carry inaccurate info, breed resistance to change, and distract members from there work. 2. If you are an "outsider" you may not feel apart of them 3. Crisis or difficult situations can bring out the downside of informal structure

Divisional Structure - Product Structure

Groups people and jobs based on a single product or service and can respond quickly to changing market demands

Divisional Structure - Geographical (Area)

Groups people and jobs based on geographic location, enabling organization to focus on the interests/tastes of a particular region Ex - UPS and Lowes broke into Americas, Europe, and Asia and then broke it down farther form there

Customer Structure

Groups people and jobs together based on the customers they serve and makes you able to better serve the needs of different customer groups

Functional Structure

Groups people together based on similar work skills and similar tasks (Ex - marketing, accounting, finance) Pros: 1. Allows for the potential economics of scale efficiently use human resources 2. Functional experts are good at solving technical problems 3. Training within functions promotes skill development 4. Career paths are available within each function. 5. Works well with small orgs that provide 1 product Cons: 1. Hard to pinpoint responsibility for things like cost containment, product or service quality, and innovation 2. Sense of working for org can get lost 3. Get Caught in niches

Selling

HIGH-task/HIGH-relationship style Leaders explain directions in a supportive and persuasive manner (Explain) Unable, Willing, Confident

Telling

HIGH-task/LOW-relationship style Leaders give specific task directions and closely supervise others' work (Give Instruction) Unable, Unwilling, Low Confidence

Major Units

How jobs are grouped together identify work units, teams, or divisions

Ron's Beanbag Chairs Example

Hugs beanbag chairs were a new concept in beanbag chairs -Ron's example took the idea to intergalactic beanbag chairs - Needed a functional organizational structure, which lead to the creation of an organizational chair with senior management overseeing departments with line staff

Participative Leader

Involves workers in decision making; solicits and uses worker's solutions

Jack Welch Video

Key Components 1. Rally around a cause 2. Visions are like ads, repeat, repeat, repeat 3. Simplify your vision and repeat Simplify, Rally, Repeat Have to have a vision to have something to rally around KEEP IT SIMPLE

Participating

LOW-task/HIGH-relationship style Emphasizing shared ideas and decisions on task directions (Share Ideas) Able, Unwilling, Low Confidence

Delegating

LOW-task/LOW-relationship style Allowing the group to take responsibility for task decisions (to them) Able, Willing Confident

Functional Chimneys Problem

Lack of communication, problem solving, and coordinating across functions. Functional units can end up competing with each other or narrowly focusing on unit goals rather than larger goals Analogy to Problem of Structure - Make decisions to benefit silos and not org

Interactive Leadership

Leaders are democratic, participative, and inclusive, and they stress teamwork. Leaders focus on building consensus and interpersonal relations. Strong on communicating, participation, and dealing with problems by teamwork

Traits

Leaders display different traits in the quest for leadership effectiveness 1. Drive 2. Self Confidence 3. Creativity 4. Cognitive Ability 5. Business Knowledge 6. Motivation 7. Motivation 8. Honesty and Integrity

Moral Leadership

Leaders have integrity and appear to be "good" and "right" to others observing them. Long-term success should be built on ethical behavior. Has integrity and appears to others as "goods" or "right" by ethical standards

Communication Flow

Lines between positions show routes for formal communication

Managers and Leaders List

Managers 1. Administer 2. Systems/Structure 3. Maintains 4. Relies on Control 5. Short-Range View 6. Asks How-When 7. Maintain Status Quo 8. Does things right **EXECUTION** Leaders 1. Innovates 2. Focus on People 3. Develops 4. Inspires Trust 5. Long-Range-View 6. Asks What-Why 7. Challenge Status Quo 8. Does Right Thing **STRATEGY**

Social Network Analysis

Method of identifying informal structures and their social relationships within an organization; in this analysis, you would ask employees to whom they turn for info or help; results are usually represented graphically Ex - Google - Founders were Larry Paige and Sergey Brin - They were doing well, got hit by a "wall of structure" so they hired Eric Schmidt as a Manager to bring structure

Span of Control: Tall Structure

More levels; narrower span of control Ex - Large Companies like Adelphia Cons: - Anti innovation, get caught in structure, less efficient, less flexible, and less customer sensitive, raises costs, hurts communication between low and high levels Pros: Better technology

Span of Control

Number of people reporting to a specific supervisor (Tall vs. Flat)

Divisional Structure

ORGANIZED AROUND PRODUCTS Groups people together based on the product on which they are working, their physical location, or the customers they have in common. This can be a way for managers to avoid the problems found in the functional structure. Pros: 1. Expertise if focused on special products 2. Better coordination across functions within divisions 3. Better accountability for product or service delivery 4. Easier to grow or shrink as conditions change

Attribuition

One of the ways perception experts influence on behavior; process of developing explanations or assigning perceived causes for events

What is the trend for organizations?

Organizations are become flatter, with fewer levels of management.

Managerial Power =

Position Power + Personal Power

5 Types of Power

Position Powers 1. Legitimate 2. Reward 3. Coercion Personal Powers 1. Expert 2. Referent

Division of Work

Positions and job titles show individual work responsibilities

Perception

Process through which people receive and interpret information from their environment; people perceive and view things differently due to their idiosyncrasies, backgrounds, values, and experiences

Pros and Cons of Informal Structure

Pros - 1. Can be helpful in getting work done 2. Enable people to easily find the info they need to get the job done. 3. Employees can help each other learn their jobs and solve problems 4. Provide social and emotional support for employees 5. Helpful during times of change Cons - 1. Activities within the informal structure sometimes do not work in the best interest of the organization 2. Can be susceptible to rumors and permit inaccurate info to be spread 3. Encourage a resistance to change 4. Can exclude some employees

Emotional Stability

Secure, calm, stable, steady and self-confident; a person who is not emotionally stable is likely to be excitable, anxious, nervous, and tense Pos - Steady Neg - Anxioous

Achievement Oriented Leader

Sets challenging goals and expects high performance workers; display high confidence

Staff vs. Line

Staff - supporting positions such as HR, Law, or Environmental Sciences Line Reporting - in the direct line of what we are actually providing/producing for customers such as production, sales, and delivery

Structure is Where?

Structure is everywhere 1. Family 2. Building 3. Penn State 4. Sports 5. Video Games 6. Computers

Hersey-Blanchard Situational Model

Suggests that successful leaders can adjust their styles; leaders change their styles based on the maturity of their followers, as indicated by their readiness to perform in a situation; this model lays out four leaderships styles that represent combinations of task-oriented and relationship-oriented behaviors

Extroversion

Talkative, comfortable and confident in interpersonal relationships; in contrast, and introvert is withdrawn and reserved Pos- Outgoing Neg - Reserved

PSU Example

Telling - Instruct (Fresh/Soph Intro Class) Selling - Explain (Smeal major classes) Participating - Share (Graduate School MBA) Delegating - Turn Over (Ph. D)

Dow Chemical Example

Telling - Instruct (New Recruit/Company Intro) Selling - Explain (1-2 years/1st assignment) Participating - Share (Starting Role/Supervision) Delegating - Turn Over (Seasoned Manager)

Directive Leader

Tells others what is expected, gives directions, and maintains standars

Selective Perception

Tendency to define problems from one's own point of view and disregard alternative perceptions; we look for the aspects of a situation or person that reinforce our own existing beliefs and screen out the conflicting information Ex - Abortion - you frame it around your point of view and forget about everything else

Contingency Leadership Perspective

The idea of a successful leadership style varies depending on the situation and the people involved; no one style works best

Levels of Management

The number of management layers are shown top to bottom

Informal Structure

The unofficial relationships among the organization's members; sometimes thought of as a "shadow organization"; represents critical working relationships that may not be reflected on organizational charts and may shift over time

Transformational Leadership

Theory Y - concerned with people -stretch to your limits -inspire people to go forward

Chain of Control

Tracking of people reporting to a supervisor to ensure results

Generations

Traditional (1927 - 1945) Baby Boomers (1946 - 1964) Gen X (1965 - 1983) Millenials Gen Y (1984 - 2002) Gen Z (2003 - Present) Baby boomers are bosses in work place and the Millenials are coming into the workplace digitally driven and bosses project on that they should be like them with experience and millenials are saying they should be more like them and be digitally driven like them.

What are two ways to look at personality?

Trait and type are two ways to look at personality

Agreeableness

Trusting, courteous, and helpful and able to get along well with others; a disagreeable person is self-serving, skeptical, and tough and will cause discomfort to others Pos - Good Others Neg - Bad Others

Network Structure

Uses info technology to link orgs with networks of outside suppliers and contractors - Orgs can use outsourcing to replace some full-time positions and rely on core employees to work with the outside network Pros: - Lower costs (less full time employees) - Better access to expertise through specialized alliance partners and contractors - Easy to grow and shrink with market conditions

Halo Effect

Uses only one attribute to develop an overall impression of a specific person or situation Ex- Look like really nice kids, but could be liars and cheaters

Team Structure

Uses permanent and temporary cross-functional teams to improve lateral relations -These teams solve problems, work together on special projects, and work on day-to-day tasks

Autocratic Leader

When a leader acts in a unilateral command-and-control fashion. The leader holds on to authority, rarely delegates, and keeps information to himself HIGH Concern for Task LOW Concern for People *POSITIVE*

Democratic Leader

When a leader encourages participation and an emphasis on task and people. These leaders share decisions with subordinates and encourage teamwork and high levels of task accomplishment HIGH Concern for Task HIGH Concern for People *POSITIVE*

Laissez-faire Leader

When a leader is completely disengaged and shows low task and people concerns LOW Concern for Task LOW Concern for People *NEGATIVE*

Leadership

When one individual influences a group of individuals to want to reach important (big) goals - The process of inspiring others to work hard to accomplish important tasks 1. Right Experiences 2. Right Training 3. Right Attitude (ambition)

Self-Serving Bias

When we underestimate internal factors and overestimate external factors as possible influences on a person's behavior (IT's NOT MY FAULT) -We tend to blame our personal failures on external causes

Fundamental Attribution Error

Workers' tendency to blame other people when something goes wrong; when we overestimate internal factors and underestimate external factors as possible influences on a person's behavior (IT's THEIR FAULT)

Hersey-Blanchard Situational Model X and Y axis

Y Axis - Relationship Behavior Support Req X Axis - Task Behavior - Guidance Req

Behavior

Y-Axis - Concern for People X-Axis - Concern for Task 1. Human Relations Leader 2. Democratic Leader 3. Autocratic Leader 4. Laissez-faire Leader

Emotional Intelligence

is the ability to monitor one's own and other people's emotions, to discriminate between different emotions and label them appropriately, and to use emotional information to guide thinking and behavior.