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GMS200 Exam Review Ch1, 2, 4-10, 13

Chapter 1 Dynamic New Workplace

Intellectual capital J collective brainpower/share knowledge of workforce
Knowledge worker J someone whose mind is critical asset to employers, add value to organization through intellect
Globalization J worldwide interdependence of resource flows, product markets & business competitions
Workforce diversity J differences in gender, race, age, ethnicity, able-bodiness, religious affiliation & sexual orientation
among workers
Prejudice J display of negative, irrational attitudes toward women & minorities
Discrimination J actively denying women & minorities full benefits of organizational membership
Glass ceiling effect J invisible barrier limiting career advancement of women & minorities
Ethics J seL moral sLandards of whaLs good b rlghL ln ones behavlour
Corporate governance J oversight of companys managemenL by BoD
BoD J inside (chosen from senior management), outside (from other organizations & positions external to organization)
Organization J collection of people working together in division of labour to achieve common purpose
Open system J organizations interact with their environment to transform resources into product outputs
Productivity J quantity & quality of work performance, with resource utilization
Performance effectiveness J output measure of task/goal accomplishment (quantity)
Performance efficiency J input measure of resource costs associated with goal accomplishment (quality)
Changing Nature of Organizations
- Belief in human capital
- uemlse of command b conLrol
- Emphasis on teamwork
- Pre-eminence of technology

- Embrace of networking
- New workforce expectations
- Concern for work-life balance
- Focus on speed

Total quality management (TQM) (E. Deming) J manage with continuous improvement, product quality & customer
- Quality = conformance to
- Quality saves money
- Quality as performance standard must be defect-free work
- Quality comes from defect prevention, not defect correction
ISO Certification J indicates conformance with exact set of international quality standards
Continuous Improvement J involves always searching for new ways to improve work quality & performance
Quality circle J members meet periodically to discuss ways of improving quality of products/services
Manager J person who supports & is responsible for work of others (long hours, intense pace, varied tasks)
Levels of Managers
Top Managers J guide performance of organization as whole or one of its major parts
Middle managers J oversee work of large departments/divisions
Project managers J coordinate complex projects with task deadlines
Team leaders (supervisors) J report to middle managers & directly supervise non-managerial workers
Types of Managers
Line managers J dlrecLly conLrlbuLe Lo producLlon of organlzaLlons baslc goodsservices
Staff managers J use special technical expertise to advice & support line workers
Functional managers J responsible for one area of activity
General Managers J responsible for complex multi-functional units
Accountability J requirement to show performance resulLs Lo ones lmmedlaLe supervlsor
Quality of work life J overall quality of human experiences in workplace
Management Process (Functions)
Management J process of planning, organizing, leading & controlling use of resources to accomplish performance goals
Planning J setting objectives & determining what should be done to achieve them
Organizing J assigning tasks, allocating resources & coordinating work activities to accomplish work
Leading J inspiring people to work hard to achieve high performance
Controlling J measuring performance & taking action to ensure desired results
Lifelong learning J continuous learning from daily experiences
Managerial Roles J Mintzberg
Informational J exchanging & process info Interpersonal J interacting with people inside & outside work unit
Decisional J using info to make decisions to solve problems or address opportunities
Essential Managerial Skills J Katz
Skill J ability to translate knowledge into action that results in desired performance
Technical skill J to use expertise to perform task with proficiency Human skill J to work well in co-operation with
Emotional intelligence J ability to manage self & relationships effectively
- Self-awareness
- Self-regulation
- Motivation
- Empathy
- Social skill
Conceptual skill J to think analytically & solve complex problems
Managerial competency J skill-based capability for high performance in management job (communication, teamwork, self-
management, leadership, critical thinking, professionalism)
Chapter 2 Management Past to Present
Classical Management Approaches
1. Scientific Management (F. Taylor) J careful selection & training of workers, & supervisory support improving efficiency
a. Develop for every job a science J rules of motion, standardized work implements, proper working conditions
b. Carefully select workers with right abilities for job
c. Carefully train workers to do job & give them proper incentives to co-operate
d. Support workers by carefully planning their work
Motion study (Gilbreths) J science of reducing task to basic physical motions
2. Administrative Principles
Henri Fayol J duties: foresight, organization, command, coordination, control; & 14 principles:
1. Division of labour
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests
7. Remuneration
8. Centralization
9. Scalar chain (line of authority)
10. Order
11. Equity
12. Personnel tenure
13. Initiative
14. Esprit de corps
Scalar chain principle J clear, unbroken line of communication from top to bottom in organization
Command principle J each person receive orders from only ONE boss
Unity of Direction Principle J one person in charge of ALL activities that have same performance objective
Mary Parker Follett J teamwork, collective responsibility
3. Bureaucracy (Weber) J rational & efficient form of organization founded on logic, order & legitimate authority
- Clear division of labour
- Clear hierarchy of
- Formal rules &
- Impersonality
- Careers based on merit
Disadvantages: paperwork (red tape)

Behavioural Management Approaches
Hawthorne studies J psychological factors; study with light Mayo J made workers feel important
Hawthorne effect J tendency of persons singled out for special attention to perform as expected
Human relations movement J managers using good human relations will achieve productivity
Organizational behaviour J study of individuals & groups in organizations
,ZZ Theory of Human Needs J physiological9 safety 9 social9 esteem 9 self-actualization
Needs J physiological/psychological deficiency that person wants to satisfy
Deficit principle J satisfy need not motivator for behaviour
Progression principle J need at any level only activated when previous level need is satisfied
McCregors 1heory x b 1heory ?
Theory X J assumes people dislike work, lack ambition, irresponsible, prefer to be led (command & control managers)
Theory Y J assumes people willing to work, accept responsibility, self-directed & creative (participative managers)
Self-fulfilling prophecy J occurs when person acLs ln ways LhaL conflrm anoLhers expecLaLlons
Argyris J treat people positively & responsible like adults, highest productivity
Quantitative Management Approaches
Management science J use mathematical techniques to analyze & solve management problems
System J collection of interrelated parts working together for purpose
subsystem J smaller component of system
Contingency thinking J tries to match management practices with situational demands
Value chain J sequence of activities that transform raw materials into finished goods/services
Theory Z J describes management emphasizing long-term employment, consensus & teamwork
Learning organization J continuously changes & improves, using lessons of experience
century managers J global strategist, master of technology, inspiring leader, model of ethical behaviour
Chapter 4 Environment, Organizational Culture & Diversity
Competitive advantage J allows organization deal with market & environmental forces better than its competitors, hard to
General environment J composed of cultural, economic, legal-political, & educational conditions (PEST)
Specific environment J people & groups with whom organization interacts
Stakeholders J persons, groups & institutions directly affected by organization
Value creation J creating value for & satisfying needs of, constituencies
Environmental uncertainty J lack of complete info about environment (complexity & rate of change)
External customers J purchase goods produced or utilize services provided
Internal customers J within organization, supply chain
Customers want: high quality, reasonable prices, on-time delivery & excellent service
Customer relationship management J strategically tries to build lasting relationships with & add value for customers
Supply chain management J strategically links all operations dealing with resource supplies
Lean production J use technology, few workers, small inventory
Flexible manufacturing J processes to be changed quickly & efficiently, produce different products/modifications to existing
Agile manufacturing & Mass customization J individualized products quickly, production efficiency
Design for manufacturing J styled to lower production costs, high quality results
Design for disassembly J design while consider how their component parts will be recycled at end
Organizational culture J shared beliefs & values that guides behaviour of organizations
Strong cultures J clear, well defined, widely shared, encourage positive ones, work in best interests, risk taking, teamwork,
Observable culture J visible when sees & hears from others
- Stories J oral histories & tales about events Heroes J people (past & present) accomplishments recognized
- Rites & rituals J celebration of heroes & events Symbols J language & other symbols
Core values J beliefs & values shared by organization members
Value-based management J actively develops, communicates & enacts shared values (relevance, integrity, pervasiveness,
Symbolic leader J uses symbols to establish & maintain desired organizational culture (Disney)
Diversity J describes race, gender, age & other individual differences Multiculturalism J involves pluralism & respect for
Multicultural organization J based on pluralism & operates with inclusively & respect for diversity
- Pluralism Informal network integration Minimum inter-group conflict
- Structural integration Absence of prejudice & discrimination
Subcultures J among people with similar values & beliefs based on shared work responsibilities & personal characteristics
Ethnocentrism J bellef LhaL ones membershlp group or subculLure ls superior to all others
Glass ceiling J hidden barrier to advancement of women & minorities
Biculturalism J minority members adopt characteristics of majority cultures in order to succeed
Managing Diversity J building inclusive work environment that allows everyone to reach their full potential
- Advancing Action 9 Valuing Differences 9 Managing Diversity
Chapter 5 Global Dimensions of Management
Global economy J resources, markets & competition are worldwide in scope
Globalization J process of growing interdependence among elements of global economy
International management J managing operations in 1+ country
Global manager J culturally aware & informed about international affairs
European Union (EU) J political & economic alliance of European countries Euro J common European currency
North American Free Trade Agreement (NAFTA) J Canada, USA & Mexico in economic alliance
Maquiladoras J foreign manufacturing plants that operate in Mexico with special privileges
Free Trade Area of the Americas (FTAA) Asia & Pacific Rim Africa
International business J conducts commercial transactions across national boundaries; go for: Profits, customers, suppliers,
capital, labour
Global sourcing J materials/services purchased around world for local use
exporting J local products sold abroad
Importing J acquiring products abroad & selling in domestic markets
Licensing agreement J 1 firm pays for fee for rlghLs Lo makesell anoLher companys producLs
franchising J fee pald for rlghLs Lo use anoLher flrms name b operaLlng meLhods
Joint venture J operates in foreign country through co-ownership with local partners
Foreign subsidiary J local operation completely owned by foreign firm
World Trade Organization (WTO) J member nations agree to negotiate & resolve disputes about tariffs & trade restrictions
Most favoured nation status J gives trading partner most favourable treatment for imports & exports
Protectionism J call for tariffs & favourable treatments to protect domestic firms from foreign competition
Multinational Corporation J business with extensive international operations in 1+ foreign country
Multinational organization (MNOs) J non-profit missions & operations around world
Transnational corporation J MNC operating worldwide on borderless basis
Corruption J lllegal pracLlces Lo furLher ones buslness lnLeresLs
Sweatshops J employ workers @ very low wages, long hours & poor working conditions
Child labour J full-time employment of children for work suppose to be done by adults
Sustainable development J meet needs of present without hurting future generations
ISO 14000 J offers set of certification standards for responsible environmental policies
Culture J shared set of beliefs, values & patterns of behaviour common to group of people
Culture shock J confusion & discomfort person experiences when in unfamiliar culture
Low-context cultures J communication via spoken/written words
High-context cultures J rely on non-verbal & situational cues + spoken/written words in communication
Monochromic cultures J doing 1 thing at a time Polychronic cultures J time used to accomplish many things at once
Hofstede 5 dimensions differences- power distance, uncertainty avoidance, individualism-collectivism, masculinity-feminist,
Trompenaars 5 major cultural differences with people- universalism vs particularism, indivdualism vs collectivism, neutral vs
affective, specific vs diffuse, achievement vs prescription
Comparative management J how management practices differ among countries & cultures
Currency risk J possible loss due to fluctuating exchange rates
Political risk J possible loss of investment in or control over foreign country asset due to instability & political changes in host
Political-risk analysis J forecasts how political events may impact foreign investments
Expatriate J lives & works in foreign country
Ethnocentric attitudes J consider practices of home country = best
Polycentric attitudes J assumes locals know best ways to manage in their countries
Geocentric attitudes J value talent & best practices from all over world
Chapter 6 Entrepreneurship & Small Business
Entrepreneurship J dynamic, risk-taking, creative, growth-oriented behaviour
Entrepreneur J willing to pursue opportunities in situations others view as problems or threats; characteristics:
Internal locus of control
High energy Level
High need for achievement
Self- confidence
Tolerance for ambiguity
Passion & action orientation
Self-reliance & desire for independence
Franchise J business owner sells to another the right to operate same business in another location
Family business J owned & controlled by members of family
Succession problem J issue of who will run business when current head leaves
Succession plan J describe how leadership transition & related financial matters will be handled
First-mover advantage J comes from being first to exploit niche or enter market
Small Businesses Fail: lack of experience, expertise, strategy & strategic leadership, poor financial control, growing too fast,
insufficient commitment, ethical failure
Lifecycles of Entrepreneurial Firms
Birth Stage J
Fighting for existence & survival
- Establishing firm, getting
customers, finding money

Breakthrough Stage J
Coping with growth & takeoff
- Working on finances, becoming
profitable, growing

Maturity Stage J
Investing wisely & staying flexible
- Refining strategy, continuing
growth, managing for success
Business plan J describes direction for new business & financing needed to operate it
Sole proprietorship J individual pursuing business for profit
Partnership J when 2+ people agree to contribute resources to start & operate business together
Limited partnership J share profits, losses limited to amount of investment;
Limited liability partnership J limits liability of one partner
Corporation J legal entity that exists separately from its owners
Limited liability Corporation (LCC) J hybrid business form combining advantages of sole proprietorship, partnership &
Debt financing J borrowing money that must be repaid over time with interest
Equity financing J exchanging ownership shares for outside investment monies
Venture capitalists J make large investments in new ventures in return for equity stake in business
Initial public offering (IPO) J initial selling of shares of stock to public at large
Angel investor J wealthy individual willing to invest in return for equity in new venture
Intrapreneurship J entrepreneur behaviour displayed by people/subunits within large organizations
Skunkworks J teams allowed working creatively together, free of constrains from larger organization
Business incubators J offer space, shared services & advice to help small businesses get started
Small business development centres J offer guidance & support to small business owners in how to set up & run business
Chapter 7 Info & Decision Making
Information technology J use of electronic devices that aid in creation, management & use of info
Peter Drucker J Productivity of knowledge & knowledge workers, 2 must have competencies:
1. Computer competency J ability to understand computers & use them to best advantage
2. Information competency J ability to utilize tech to locate, retrieve, evaluate, organize & analyze info for decisions
Electronic Commerce J buying & selling goods & services through use of Internet B2B J collaborate businesses, B2C J
1. Secure online identity
2. Establish web presence
3. Enable e-commerce
4. Provide e-commerce & customer relationship management
5. Utilize service application model
Instant messaging J instantaneous communication between people online at same time
Peer-to-peer file sharing J connects PCs directly to one another over Internet
Data J raw facts & observations
Information J data made useful for decision making
Useful Information Criteria
1. Timely J info available when needed, meets
2. High quality J accurate & reliable
3. Complete J sufficient for task at hand, up to date
4. Relevant J appropriate for task
5. Understandable

Information system J use IT to collect, organize & distribute data for use in decision making
Management info systems J meet info needs of managers in daily decisions
Decision support systems J help users organize & analyze data for problem solving
Groupware J software that facilitates group collaboration & problem solving
Expert systems J allow computers to mimic thinking of human experts for applied problem solving
Intranets & corporate portals J use Web for communication & data sharing within organization
Extranets & enterprise portals J use Web for communication & data sharing between organization & its environment
Electronic data interchange J uses controlled access to enterprise portals to enable firms to electronically transact business
with another
Problem solving J identifying & taking action to resolve problems
Decision J choice among possible alternative courses of action
Programmed decision J applying solution from past experience to routine problem
Structured problems J straightforward & clear in info needs
Unstructured problems J have ambiguities & info deficiency
Non-programmed decision J applies specific solution crafted for unique problem
Crisis J unexpected problem that can lead to disaster if not resolved quickly & appropriately
Crisis management J preparaLlon for managemenL of crlses LhaL LhreaLen organlzaLlons healLh b well-being
Certain environment J offers complete info on possible action alternatives & their consequences
Risk environment J lacks complete info, but probabilities of likely outcomes for possible action alternatives
Uncertain environment J lacks info, difficult to know all alternatives, & probabilities to likely outcomes
Systematic thinking J rational & analytical problem solving
Intuitive thinking J flexible & spontaneous at problem solving
Strategic opportunism J focus on long-term objectives while being flexible dealing with short-term problems
Decision-making process J beings with identification of problem, ends with evaluation of implemented solutions
1. Identify & define problem
2. Generate & evaluate alternative solutions
3. Choose preferred course of action & conduct ethics double-check
4. Implement decision
5. Evaluate results

Mistakes: defining problem too broad/narrowly, focus on symptoms instead of causes, choosing wrong problem to deal with
Cost benefit analysis J comparing costs & benefits of each potential course of action; + timeliness, acceptability, ethics
Classical decision model J decision making with complete info & consequences
Optimizing decision J choose alternative giving absolute best solution to problem
Behavioural decision model J decision making with limited info & bounded by rationality
Satisficing decision J choose first saLlsfacLory alLernaLlve LhaL comes Lo ones aLLenLlon
Lack-of-participation error J failure to adequately involve persons whose support is necessary to implement decision
Decision-making Errors & Traps
Heuristics J strategies for simplifying decision making
- availability heuristic J use info readily available from memory to assess situation
- representativeness heuristic J based on stereotypes set of occurrences
- anchoring & adjustment heuristic J adjustment to previous existing value/starting point
Framing error J solving problem in context perceived (positive/negatively)
Escalating commitment J conLlnuaLlon of course of acLlon even Lhough lLs noL worklng
Ethics: Proceed with decision when met J utility, rights, justice, caring
Knowledge management J processes using intellectual capital for competitive advantage
Chief knowledge officer (CKO) J energizing learning process, make sure intellectual assets well managed & enhanced
Learning organization J continuously changes & improves using lessons of experience
Chapter 8 Planning & Controlling
Planning J process of setting objectives & determining how to accomplish them
Objectives J specific results one wishes to achieve
Plan J statement of intended means for accomplishing objectives
Planning Process
1. define objectives
2. determine where you stand vis--vis objectives
3. develop premises regarding future conditions
4. analyze & choose among action alternatives
5. implement plan & evaluate results

Benefits of Planning J improves focus & flexibility, improves action orientation (results, priority, advantage, & change),
coordination, time management, control
Rational comprehensive planning (RCP) J focus on logical decision making approach & support system viewpoint, simplicity
Types of Plans J short-range < 1yr; intermediate-range 1-2yrs; long-range > 3yrs
Strategic plans J identifies long-term objectives for organization; by top management
Operational plan J identifies activities to implement strategic plans; production, financial, facilities, marketing, HR
Policy J standing plan (use repeatedly) that communicates broad guidelines for decisions & action
Procedure/rule J precisely describes actions that are to be taken in specific situations; standard operating procedures SOPs
Budget J plan that commits resources to projects/activities; single-use plans Jserve needs & objectives in timely manner
Zero-based budget J allocates resources as if budget were brand new
Projects J one-time activities that have clear beginning & end points
Project management J makes sure activities required to complete in project are accomplished on time & correctly
Planning Tools & Techniques
Forecasting J attempts to predict future; qualitative J expert opinions; quantitative J statistics & historical data, surveys
Contingency planning J identifies alternative courses of action to take when things go wrong (back up)
Scenario planning J identifies alternative future scenarios & makes plans to deal with each
Benchmarking J uses external comparisons to gain insights for planning
Best practices J things that lead to superior performance
Participatory planning J includes persons who will be affected by plans & ones who will implement them
Controlling J process of measuring performance & take action to ensure desired results
After-action review J identifies lessons learned in completed project, task force, or special operation
Control Process Need for action = Desired J Actual
1. establish objectives & standards
2. measure actual performance
3. compare results with objectives & standards
4. take corrective action
Output standard J measures performance results in terms of quantity, quality, cost or time
Input standard J measures work efforts that go into performance task
Management by exception J attention on substantial differences between actual & desired performance
Types of Control
Feed forward (preliminary) J ensures directions & resources are right before work begins
Concurrent (steering) J focus on what happens during work process
Feedback (post-action) J takes place after action completed
Management by objectives J process of joint objective setting between superior & subordinate
1. set objectives for given time period
2. plans through on how to accomplish
3. setting standards on how to measure
4. review results

Improvement objectives, personal development, maintenance objectives
SMART - Specific, Measurable, Attainable, Referred to Regularly, Time Defined
Discipline J act of influencing behaviour through reprimand
Progressive discipline J ties reprimands to severity & frequency of misbehaviour
Breakeven analysis J calculates sales revenues = costs
Economic order quantity J order replacements when inventory level falls to predetermined point
Just-in-time scheduling J mlnlmlzes lnvenLory by rouLlng maLerlals Lo work sLaLlons ln Llme Lo be used
Quality control J checks processes, materials, products & services to ensure that they meet high standards
Chapter 9 Strategic Management
Strategy J comprehensive plan guiding resource allocation to achieve long-term organization goals
Strategic intent J focuses & applies organizational energies on unifying & compelling goal
Strategic management J process of formulating & implementing strategies
Above-average returns J exceed what could be earned from alternative investments of equivalent risk
Strategy formulation J process of creating strategies
Strategy implementation J process of putting strategy into action
Mission J organizations purpose for existence in society; includes stakeholders, products/services, location to operate
Operating objectives J specific results that organizations try to accomplish
Peter Drucker J objectives: profitability, market share, human talent, financial health, cost efficiency, product quality,
innovation, social responsibility
SWOT analysis J examines organizational strengths & weaknesses, environmental opportunities & threats
Core competency J special strength that gives organization competitive advantage
Michael Porter J industry competitors, new entrants, suppliers, customers, substitutes
Levels of Strategy
Corporate strategy J long-term direction for total enterprise
Business strategy J identifies how division/strategic business unit will compete in its product/service domain
Strategic business unit (SBU) J major business area that operates with some autonomy
Functional strategy J guides activities within one specific area of operations
Growth strategy J expanslon of organlzaLlons currenL operaLlons
Concentration J growth within same business area
Diversification J growth by acquisition of or investment in new & different business areas
Vertical integration J growth by acquiring suppliers (backward) or distributors (forward)
Retrenchment strategy J changes operations to correct weaknesses
Restructuring J reduce scale & or mix of operations
Downsizing J decreases size of operations
Divestiture J sells off parts of organization to refocus attention on core business areas
Globalization strategy J adopts standardized products & advertising for use worldwide
Multidomestic strategy J customizes products & advertising to best fit local needs
Transnational strategy J seeks efficiency of global operations with attention to local markets
Strategic alliance J organizations join together in partnership to pursue areas of mutual interest
E-business strategy J uses Internet to gain competitive advantage
B2B business strategy J uses IT & Web portals to link organizations vertically in supply chains
B2C business strategy J uses IT & Web portals to link businesses with customers
orLers Cenerlc SLraLegles (matrix)
Differentiation strategy J offers products that are unique & different from competition, broad market
Cost leadership strategy J seeks to operate with lower costs than competitors, broad market
Focused differentiation strategy J offers unique product to special market segment
Focused cost leadership J strategy seeks lowest costs of operations within special market segment
Portfolio Planning J approach seeks best mix of investments among alternative business opportunities
BCG matrix J analyzes business opportunities according to market growth rate & market share
- Stars J high market-share/high growth business
- Cash cows J high market share/low growth business
- Question marks J low market share/high growth
- Dogs J low market share/low growth business
Emergent strategy J develops overtime as managers learn from & respond to experience
Strategic leadership J inspires people to continuously change, refine & improve strategies & their implementation
- Guardian of trade offs J allocates resources consistent with strategy
- make sure everyone understands strategy
- Become a teacher, communicator
- Create sense of urgency
Chapter 10 Organizing
Organizing J arranges people & resources to work toward goal
Organization structure J system of tasks, reporting relationships & communication linkages
Organization chart J describes arrangement of work positions within organization
Formal structure J official structure of organization
- Division of work (positions & titles)
- Supervisory relationships
- Communication channels
- Major subunits
- Levels of management

Informal structure J seL of unofflclal relaLlonshlps among organlzaLlons members
Departmentalization J process of grouping together people & jobs into work units; e.g. functional, divisional, matrix
Functional structures J groups together people with similar skills who perform similar tasks
- Advantages: economies of scale with efficient use of resources, high-quality problem solving, clear career paths
within functions, consistent expertise & training
- Disadvantages: functional chimneys problem J lack of communication & coordination across functions
Divisional structure J group together people working on same product, in same area, with similar customers/processes
- Advantages: flexibility in responding to environmental changes, improved coordination, focused expertise, changing
size, clear points of responsibility
- Disadvantages: reduce economies of scale by duplicate resources, rivalries competing for resources & attention
Product (market) structure J group together people & jobs related to single product/service
Geographical (area) structure J group together people & jobs performed in same location
Customer structures J group together people & jobs that serve same customers/clients
(Work) Process structure J group jobs & activities that are part of same processes
Matrix structure J functional + divisional approaches to emphasize project or program teams
- Disadvantages: power struggles with 2-boss system
Team structures J uses permanent & temporary cross-functional teams to improve lateral relations
Cross-functional team J brings together members from different functional departments
Project teams J convened for parLlcular Laskpro[ecL b dlsbanded once lLs compleLed
Network structure J uses IT to link with networks outside suppliers & service contractors
Outsourcing J when business function is contracted to outside supplier
Boundaryless organization J eliminates internal boundaries among subsystems & external boundaries with environment
Virtual organization J uses IT & Internet to engage shifting network of strategic alliances
Organizing Trends & Practices
Upside-down pyramid J puts customers at top, served by workers, supported by managers
Chain of command J links all persons with successively higher levels of authority; Trend: flatter organization structures
Less Unity of Command J Trend: using more cross-functional teams, becoming more customer conscious, 1+ boss
Span of control J # of subordinates directly reporting to manager; Trend: wider span of control, operate w/ less supervision
Delegation J process of distributing & entrusting work to other persons; Trend: empower people at all levels, affect self
1. Manager assigns responsibility (expectation)
2. Manager grants authority to act (in order to carryout out tasks)
3. Manager creates accountability (answer to supervisor for performance results)
Centralization J concentration of authority for most decisions at top level of organization
Decentralization J dispersion of authority to make decisions throughout all organization levels
Specialized staff J provide technical expertise for other parts of organization
Personal staff J assistant-to positions that support senior managers
Advisory authority J suggest but not dictate Functional authority J require others to do as requested
Chapter 13 Leading
Leadership J process of inspiring others to work hard to accomplish important tasks
Vision J clear sense of future
Visionary leadership J brings situation clear sense of future & understanding how to get there
- Challenge the process
- Show enthusiasm
- Help others to act
- Set the example
- Celebrate achievements

Power J ability to get someone else to do something you want done or to make things happen way you want
Position Power
Reward power J to offer something of value to influence others
Coercive power J to punish/withhold positive outcomes to influence others
Legitimate power J to influence others by virtue of formal authority, rights of office
Personal Power
Expert power J influence others because of specialized knowledge
Referent power J influence others because of their desire to identify personally with you
Centrality J gain power by establishing networks of interpersonal contacts, exchange info
Criticality J take good care of others who are dependent on them, support
Visibility J become known as influential person in organization
Empowerment J enables others to gain & use decision-making power
Leadership Traits & Behaviours
Personal Traits:
- Drive
- Self-confidence
- Creativity
- Cognitive ability
- Business knowledge
- Motivation
- Flexibility
- Honesty & integrity
Leadership styles J recurring patter of behaviours exhibited by leader (2 dimensions)
1. Concern for task to be accomplished J task oriented
2. Concern for people doing work J people oriented
Autocratic style J acts in unilateral command-&-control fashion
Laissez-faire style J displays do the best you can & dont bother me attitude
Democratic style J encourages participation with emphasis on both task accomplishment & development of people
Contingency Approaches to Leadership
Fiedler J leadership style depends on situational differences in task structure, position power & leader-member relations
Hersey-Blanchard J using task oriented & people-oriented behaviours depending on maturity levels of followers (readiness)
- Delegating, participating, selling, telling
House J path-goal theory, leaders should add value to situations by responding with supportive, directive, achievement-
oriented, &/or participative styles as needed
Substitution for leadership J factors in work setting that direct work efforts without involvement of leader
Vroom-Jago J leader-participation, advise leaders to choose decision making methods that best fit problems theyre trying to
solve J individual, consultative, group
Authority decision J made by leader & then communicated to group
Consultative decision J made by leader after receiving info, advice, & opinions from group members
Group decision J made by group members themselves
Transformational Leadership
Charismatic leaders J develops special leader-follower relationship & inspires followers in extraordinary ways
Transactional leadership J directs efforts of others through tasks, rewards & structures
Transformational leadership J inspirational & arouses extraordinary effort & performance
- Vision
- Charisma
- Symbolism
- Empowerment
- Intellectual stimulation
- Integrity
Interactive Leadership Style J women emphasizes communication, involvement & interpersonal respect, consistent with
demands of new workplace
Druckers Old Fashioned Leadership J is hard work that always requires personal commitment to consistently meeting high
ethical & moral standards
Ethical leadership J always good & right by moral standards
Integrity J leadership is honesty, credibility & consistency in putting values into action
Authentic leadership J activates positive psychological states to achieve self-awareness & positive self-regulation