MANAGEMENT 3000 Final Review

4/26/11 5:53 PM

Segment 14 Leadership (Lecture) (*) Be responsible for any content in lectures pertaining to Segment 14 Leadership. Describe leadership as it relates to you, others, and the organization. Leadership is learned through practice. One must find his/her own style of leading. Summarize the sources of power for managers. Five Sources of Management Power o Legitimate Authority, Orders, Direction, Task o Reward Salary Raises, Promotions, Good Tasks o Coercive Punishment, No raises, Termination, Bad Tasks o Referent Appeal, Personal Characteristics o Expert Knowledge, Experience, Know-how, Answers Explain two common leadership flaws. Leader/Manager o Relies too much on Legitimate, Reward, and Coercive Power o Relies too little on Referent and Expert. Leader/Manager o Perceives: Anointment o Reality is: Appointment Summarize characteristics of great leaders. Lack Ego Self Importance Demonstrate Humility Deflect Praise Surround themselves with the right people who are self-motivated and highly capable. Distinguish between leadership and management. Good leaders can be bad managers and vice versa. Summarize the Historical Paradigm (Herzberg) model and its gains and shortcomings. Concern for Work Concern for People

Shortcoming: it is linear; as you become better at one you become worse at the other. Gain: See others as people too, not just tasks. Summarize the Ohio State/Michigan model and its gains and shortcomings. One can have high concern for both work and people, but still 2 Dimensional Summarize the Blake & Mouton Grid model and its gains and shortcomings. Grid not just linear; rate/train managers

Summarize the Path Goal model and its gains and shortcomings.

Gain: Shortcoming: Summarize the Vroom-Yetton model and its gains and shortcomings. ???*** Segment 14 Leadership (Textbook Ch. 13) Define power

Power: the ability to get someone else to do something you want done or to make things happen the way you want.

Illustrate three types of position power and discuss how managers use each Reward Power is the capacity to offer something of value as a means of influencing other people. Coercive Power is the capacity to punish or withhold positive outcomes as a means of influencing other people. Legitimate Power is the capacity to influence other people by virtue of formal authority, or the rights of office. Illustrate two types of personal power and discuss how managers use each Expert Power is the capacity to influence other people because of specialized knowledge. Referent Power is the capacity to influence other people because of their desire to identify personally with you. Define empowerment Empowerment: enables others to gain and use decision-making power. Explain the notion of servant leadership Servant Leadership is follower-centered and committed to helping others in their work. Identify five personal traits of successful leaders Drive- Successful leaders have high energy, display initiative, and are tenacious. Self-Confidence- Successful leaders trust themselves and have confidence in their abilities. Creativity- Successful leaders are creative and original in their thinking. Cognitive Ability- Successful leaders have the intelligence to integrate and interpret information Job-relevant knowledge- Successful leaders know their industry and its technical foundations

Motivation- Successful leaders enjoy influencing others to achieve shared goals.

Describe behaviors associated with four classic leadership styles Autocratic Style o Acts in a command-and-control fashion. o Authority Obedience Manager (Spock) Human Relations Style o Emphasizes people over work o Country Club Manager Laissez-Faire Style o Do the best you can and dont bother me o Impoverished Manager (George Jetson) Democratic Style o Emphasizes boths tasks and people o Team Manager/High-High/Nine-Niner

Explain Fiedlers contingency model Proposes that good leadership depends on a match or fit between a persons leadership style and situational demands. Identify the four leadership styles in the Hersey-Blanchard situational model Delegating o Allowing the group to take responsibility for task decisions; a low-task, low-relationship style. o Turn over decisions o Followers able, willing, confident Participating o Emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style. o Share ideas o Followers able, unwilling, insecure Selling o Explaining task directions in a supportive and persuasive way; a high-task, high-relationship style o Explain decisions

o Followers unable, willing, confident. Telling o Giving specific task directions and closely supervising work; a high-task, low-relationship style. o Give instructions o Followers unable, unwilling, insecure.

Explain Houses path-goal theory Like Fielders it is situational based but House believes you can shift between them Directive Leadership- letting followers know what is expected; giving directions on what to do and how; scheduling work to be done; maintaining definitive standards of performance; clarifying the leaders role in the group. Supportive Leadership- doing things to make work more pleasant; treating team members as equals; being friendly and approachable; showing concern for the well-being of subordinates. Achievement-oriented Leadership- setting challenging goals; expecting the highest levels of performance; emphasizing continuous improvement in performance; displaying confidence in meeting high standards. Participative Leadership- involving team members in decision making; consulting with them and asking for suggestions; using these suggestions when making decisions.

Define substitutes for leadership Substitutes for leadership: factors in the work setting that direct work efforts without the involvement of a leader o Outside leadership unnecessary because it is already provided within the situation o Managers should not restate the obvious in these situations and instead lead in others ways. Explain LMX theory A leader and follower interact over time, their exchanges end up defining the followers role; in-group vs. out-group.

 Contrast the authority, consultative, and group decisions in the Vroom-Jago model Authority decision is made by the leader and then communicated to the group Consultative decision is made by the leader after receiving information, advice, or opinions from group members. Group decision is made by group members themselves. Governed by three factors o Decision quality: who has the information necessary to make decision o Decision acceptance: Acceptance and commitment critical for implementation? o Decision time: Time pressure for decision making? Explain how emotional intelligence contributes to leadership success Emotional intelligence is the ability to manage our emotions in social relationships Charismatic leaders display positive emotions that followers find contagious Core Set of emotional intelligence Competencies o Motivated and Persistent o High Social Awareness

Discuss

o Good self-management o Good relationship management o High self-awareness research insights on the relationship between gender and leadership The gender similarities hypothesis holds that males and females have similar psychological properties. Women are at times considered more take-care and men more take-charge Womens style at times called Interactive Leadership (see below)

Define interactive leadership Interactive Leadership: strong communicators and act democratic and participative with followers.

Discuss integrity as a foundation for moral leadership Leaders show integrity by acting with honesty, credibility, and consistency in putting values into action. o This builds trust, and when followers trust their leader they try to behave in ways that live up to the leaders expectations List Druckers three essentials of good old-fashioned leadership 1) Defining and establishing a sense of mission/ The leaders first task is to be the trumpet that sounds a clear sound 2) Accepting leadership as a responsibility rather than as a rank 3) Earn and keep the trust of others (personal integrity) Segment 15 Decision-Making (Lecture) (*) Be responsible for any content in lectures pertaining to Segment 15 Decision-Making. Summarize the Decision Making Model. Explain the relationship between decision-making and risk. Summarize the reasons for decisions. Summarize the barriers to effective decision-making. Know the Guaranteed Approach To Being Successful In Of All Lifes Decisions. Segment 15 Decision-Making (Textbook Ch. 7) Explain systematic and intuitive thinking

Systematic o Approaches problems in a rational and analytical fashion. Intuitive o Approaches problems in a flexible and spontaneous fashion. List four cognitive styles in decision making Sensation Thinkers o STs tend to emphasize the impersonal rather than the personal and take a realistic approach to problem solving. They like hard facts, clear goals, certainty, and situations of high control Intuitive Thinkers o Its are comfortable with abstraction and unstructured situations. They tend to be idealistic, prone toward intellectual and theoretical positions; they are logical and impersonal but also avoid details. Intuitive Feelers o Ifs prefer broad and global issues. They are insightful and tend to avoid details, being comfortable with intangibles; they value flexibility and human relationships. Sensation Feelers o SFs tend to emphasize both analysis and human relations. They tend to be realistic and prefer facts; they are open to communicators and sensitive to feelings and values.

Describe the challenges of crisis decision-making Crisis Decision: occurs when an unexpected problem arises that can lead to disaster if not resolved quickly and appropriately. o 1- Figure out what is going on o 2- Remember that speed matters o 3- Remember that slow counts too o 4- Respect the danger of the unfamiliar o 5- Value the skeptic o 6- Be ready to fight fire with fire Explain decision making in certain, risk, and uncertain environments

Explain Explain

A certain environment offers complete information on possible action alternatives and their consequences A risk environment lacks complete information but offers probabilities of the likely outcomes for possible action alternatives. An uncertain environment lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives. cost-benefit analysis in decision making Cost-benefit analysis: involves comparing the costs and benefits of each potential course of action. how the lack-of-participation error can hurt decision making Lack-of-participation error: is failure to involve in a decision the persons whose support is needed to implement it.

List useful questions for double checking the ethical reasoning of a decision 1. UtilityDoes the decision satisfy all constituents or stakeholders? 2. RightsDoes the decision respect the rights and duties of everyone? 3. JusticeIs the decision consistent with the canons of justice? 4. CaringIs the decision consistent with my responsibilities to care? Explain the availability, representativeness, anchoring, and adjustment heuristics The availability bias bases a decision on recent information or events. o Uses only information that is readily available The representativeness bias bases a decision on similarity to other situations o Assess likelihood of something happening based on its similarity to a stereotyped set of occurences The anchoring and adjustment bias bases a decision on incremental adjustments from a prior decision point. o Occurs when decisions are influenced by inappropriate allegiance to previously existing value or starting point.

Illustrate framing error, confirmation error, and escalating commitment in decision making Framing Error is trying to solve a problem in the context in which it is perceived. o Often referred to in Politics as spinning the data. Confirmation Error occurs when focusing only on information that confirms a decision already made. o Seek information supporting what we believe ignoring information contradicting our previous belief. Escalating Commitment is the continuation of a course of action even though it is not working. o Managers that have time calling it quits and keep shoveling resources into a system that doesnt work.