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Topic 1. Managers and Managing. 1.

Management is a process of using organizational resources to achieve organizational goals effectively and efficiently through planning, organizing, leading, and controlling. A manager is a person responsible for supervising the use of an organizations resources to meet its goals. Efficiency is a measure of how well or productively resources are used to achieve a goal. Effectiveness is a measure of the appropriateness of the goals an organization is pursuing and of the degree to which the organization achieves those goals. 2. Planning is a process that managers use to identify and select appropriate goals and course of action. Organizing is a process that managers use to establish a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals. Motivation is a psychological force that determines the direction of persons behavior in an organization; a persons level of effort, and a persons level of persistence. Controlling an evaluation of how well an organization is achieving its goals and taking action to maintain or improve performance. 3. First line manager is a manager who responsible for the daily supervision of nonmanagerial employees. Middle manager is a manager who supervises first-line managers and responsible for finding the best way to use resources to achieve organizational goals. Top manager is a manager who establishes organizational goals, decides how departments should interact, and monitors the performance of middle managers. Tec!nical s"ills are job-specific knowledge and techni ues that are re uired to perform an organizational role. #$man s"ills are the ability to understand, alter, lead, and control the behavior of other individuals and groups. Concept$al s"ills are the ability to analyze and diagnose a situation and to distinguish between cause and effect. Topic 2. T!e Evol$tion of Management T!eory !. "he evolution of modern management began in the closing decades of the !# century, after the industrial revolution had swept through $urope and %merica.

%cientific management t!eory is the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. F.&. Taylor &!'()-!#!(* is the +father, of the scientific management. "aylors principles .tudy the way workers perform their tasks, gather all the informal job knowledge that workers possess, and e/periment with ways of improving how tasks are performed

0odify the new methods of performing tasks into written rules and standard operating procedures 0arefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures $stablish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level T!e 'il(ret!s. "heir aims were!. break up and analyze every individual action necessary to perform a particular task into each of its component actions 1. find better ways to perform each component action 2. reorganize each of the component actions so that the action as a whole could be performed more efficiently at less cost of time and effort 1. Administrative management t!eory is the study of how to create an organizational structure that leads to high efficiency and effectiveness. #enry Fayol &!'3!-!#1(* 4ayols !3 principles of management!. division of labor 1. authority and responsibility 2. unity of command 3. line of authority (. centralization ). unity of direction 5. e uity '. order #. initiative !6. discipline !!. remuneration of personnel !1. stability of tenure of personnel !2. subordination of individual interests to the common interest !3. esprit de corps Ma) &e(er &!')3-!#16* theory of bureaucracy &a formal system of organization and administration designed to ensure efficiency and effectiveness*. 7ebers principles a managers formal authority derived from the position he holds in the organization people should occupy positions because of their performance, not because of their social standing or personal contacts the e/tent of each positions formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified authority can be e/ercised effectively in an organization when positions are arranged hierarchically, so employees know whom to report to and who reports to them managers must create a well-defined system of rules, standard operating procedures, and norms so that they can effectively control behavior within an organization 2. *e!avioral management t!eory is the study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. Mary Par"er Follett &!')'-!#22*

Elton Mayo

3. Management science t!eory is an approach to management that uses rigorous uantitative techni ues to help managers make ma/imum use of organizational resources. %ystems t!eory Open system is a system that takes in resources from its e/ternal environment and converts them into goods and services that are then sent back to that environment foe purchase by customers Closed system is a system that is self-contained and thus not affected by changes occurred in its e/ternal environment. %ynergy is a performance gains that result when individuals and departments coordinate their actions. Contingency t!eory is the idea that the organizational structures and control systems managers choose depend on are contingent on characteristics of the e/ternal environment in which the organization operates. Topic 3. Managing t!e Organizational Environment !. Organizational environment is the set of forces and conditions that operate beyond an organizations boundaries but affect a managers ability to ac uire and utilize resources.

Tas" environment is the set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect organizations ability to obtain inputs and dispose of its outputs because they influence managers on a daily basis. 'eneral environment is the wide-ranging economic, technological, sociocultural, demographic, political and legal, and global forces that affect an organization and its task environment. %$ppliers + individuals and organizations that provide an organization with the input resources that it needs to produce goods and services. ,istri($tors organizations that help other organizations sell their goods or services to customers. C$stomers individuals and groups that buy the goods or services that an organization produces. Competitors organizations that produce goods or services that are similar to a particular organizations goods or services. Economic forces - interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization.

Tec!nological forces outcomes of changes in the technology that managers use to design, produce or distribute goods or services. %ocioc$lt$ral forces pressures emanating from the social structure of a country or society or from the national culture. ,emograp!ic forces outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, se/ual orientation, and social class. Political and legal forces outcomes of changes in laws and regulations, such as the deregulation of industries, the privatization of organizations, and increased emphasis on environment protection. 'lo(al forces outcomes of changes in international relationships; changes in nations economic, political, and legal systems and other. 1. %ocial responsi(ility is a managers duty or obligation to make decisions that promote the welfare and well-being of stakeholders and society as a whole. Form of socially responsi(le (e!avior 8rovide severance payments to help laid-off workers make ends meet until they can find other jobs 8rovide workers with opportunities to enhance their skills and ac uire additional education so they can remain productive and do not become obsolete because of changes in technology %llow employees to take time off when they need to and provide health care and pension benefits for employees 0ontribute to charities or support various civic-minded activities in the cities and towns in which they are located 9ecide to keep open a factory whose closure would devastate the local community 9ecide to keep a companys operations in a country to protect the jobs of national workers rather than move abroad 9ecide to spend money to improve a new factory so that it will not pollute the environment 3. Et!ics moral principles or beliefs about what is right or wrong. %ocietal Et!ics standards that govern how members of a society are to deal with each other on issues such as fairness, justice, poverty, and the rights of the individuals. Professional Et!ics - standards that govern how members of a profession are to make decisions when the way they should behave is not clear-cut. .ndivid$al Et!ics personal standards that govern how individuals are to interact with other people. Organizational c$lt$re the set of values, norms, standards for behavior, and shared e/pectations that influence the ways in which individuals, groups and teams interact with each other and cooperate to achieve organizational goals. Topic /. Comm$nication. !. Comm$nication is the sharing of information between two or more individuals or groups to reach a common understanding. T!ree types of Comm$nication 0ommunications between the organization and its environment 0ommunications across departments and groups of organization &vertical and horizontal communications* :nformal 0ommunications &grapevine* 1.

T!e Comm$nication Process consists of two phases. :n the transmission phase, information is shared between two or more individuals or groups. :n the feedback phase, a common understanding is assured. Fo$r Elements of t!e Comm$nication Process %ender is the person or group whishing to share information Message is the information that a sender wants to share Medi$m is the pathway &a phone call, a letter, a memo, or face-to-face communication* through which an encoded messages are transmitted to a receiver 0eceiver is the person or group for which a message is intended "hree stages of the 0ommunication 8rocess Encoding translating a message into understandable symbols or language. "he encoding message into words, written or spoken, is verbal communications. 7e also encode messages without using written or spoken language. ;onverbal communications shares information by means of facial e/pressions &smiling, raising an eyebrow, frowning*, body language &posture, gestures, nods and shrugs*, and even style of dress &casual, formal, conservative, trendy*. Transmission ,ecoding interpreting and trying to make sense of a message 2. Comm$nication net1or"s is the pathways along which information flows in groups and teams and throughout the organization 7heel network-

0hain network-

0ircle network-

%ll-channel network-

3. 0ommunication .kills for <anagers as .enders .end messages that are clear and complete

$ncode messages in symbols that the receiver understands .elect a medium that is appropriate for the message .elect a medium that the receiver monitors %void filtering and information distortion $nsure that a feedback mechanism is built into messages 8rovide accurate information to ensure that misleading rumors are not spread 0ommunication .kills for <anagers as receivers 8ay attention =e a good listener =e empathetic Topic 2. T!e Manager as a ,ecision Ma"er !. ,ecision ma"ing is the process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action. Programmed decision ma"ing is a routine, virtually automatic decision making that follows established rules or guidelines. 3onprogrammed decision ma"ing is a nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats. Classical decision ma"ing model is a prescriptive approach to decision making based on the assumption that the decision maker can identify and evaluate all possible alternatives and their conse uences and rationally choose the most appropriate course of action. Administrative model is an approach to decision making that e/plains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions. 0is" is the degree of probability that the possible outcomes of a particular course of action will occur 4ncertainty unpredictability. 1. %teps in t!e ,ecision Ma"ing Process >ecognize the need for a decision ?enerate alternatives %ssess alternatives 0hoose among alternatives :mplement the chosen alternatives @earn from feedback 2. Organizational learning is the process through which managers seek to improve employees desire and ability to understand and manage the organization and its task environment. Creativity is a decision makers ability to discover original and novel ideas that lead to feasible alternative courses of action. *rainstorming is a group problem solving techni ue in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision. 3ominal gro$p tec!ni5$e a decision making techni ue in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives. ,elp!i tec!ni5$e is a decision making techni ue in which group members do not meet face-toface but respond in writing to uestions posed by the group leader.

Topic 6. T!e Manager as a Planner and %trategist !. Planning is identifying and selecting appropriate goals and courses of action. %trategy is a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals. %teps in Planning 9etermining the organizations mission and goals 4ormulating strategy :mplementing strategy 7evels of Planning 0orporate-level plan =usiness-level plan 4unctional-level plan Corporate level strategy is a plan that indicates in which industries and national markets an organization intends to compete. *$siness level strategy is a plan that indicates how a division intends to compete against its rivals in an industry. F$nctional level strategy is a plan that indicates how a function intends to achieve its goals. %cenario planning is the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions; also called contingency planning. 1. Mission statement is a broad declaration of an organizations purpose that identifies the organizations products and customers and distinguishes the organization from its competitors. %&OT analysis is a planning e/ercise in which managers identify organizational strengths &.*, weaknesses &7*, environmental opportunities &A*, and threats &"*. 2. Corporate level strategies 0oncentration 9iversification e/panding operations into a new business or industry and producing new goods or services :nternational e/pansion Bertical integration

3. *$siness level strategies @ow-cost strategy - driving the organizations costs down below the costs of its rivals 9ifferentiation strategy distinguishing an organizations products from the products of competitors in dimensions such as product design, uality, or after-sales services +stuck in the middle,

Topic 8. Managing Organizational %tr$ct$re. !. Organizational str$ct$re is a formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals. Organizational design is the process by which managers make specific organizing choices that result in a particular kind of organizational structure. F$nctional str$ct$re is an organizational structure composed of all the departments that an organization re uires to produce its goods or services.

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,ivisional str$ct$re is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer. Prod$ct str$ct$re is an organizational structure in which each product line or business is handled by a self-contained division.

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Cell p!ones

Mar"et str$ct$re is an organizational structure in which each kind of customer is served by a self-contained division; also called customer structure.

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'eograp!ic str$ct$re is an organizational structure in which each region of a country or area of the world is served by a self-contained division.

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Matri) str$ct$re is an organizational structure that simultaneously groups people and resources by function and by product.

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Pro;ect A

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Pro;ect *

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Pro;ect C

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Prod$ct team str$ct$re is an organizational structure in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates. #y(rid str$ct$re is the structure of a large organization that has many divisions and simultaneously uses many different organizational structures. 1. A$t!ority is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources. #ierarc!y of a$t!ority is an organizations chain of command, specifying the relative authority of each manager. 7ine manager is someone in the direct line or chain of command that has formal authority over people and resources lower down. %taff manager is a manager responsible for managing one of specialist functions, like finance or marketing.

Topic <. Motivation. !. Motivation is a psychological force that determines the direction of persons behavior in an organization; a persons level of effort, and a persons level of persistence. .ntrinsically motivated (e!avior is the behavior that is performed for its own sake. E)trinsically motivated (e!avior is the behavior that is performed to ac uire material or social rewards or to avoid punishment. O$tcome is anything a person gets from a job or organization. .np$t is anything a person contributes to his or her job or organization. 1. 3eed is a re uirement or necessity for survival and well-being. 3eed t!eories is the theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs. Maslo1=s !ierarc!y of needs is an arrangement of five basic needs that, according to <aslow, motivate behavior. <aslow proposed that the lowest level of unmet needs is the prime motivator and that only one level of needs is motivational at a time. ;eeds 8hysiological needs 9escription =asic needs for things such as food, water, and shelter that must be met in $/amples of how managers can help people satisfy these needs at work =y providing a level of pay that enables a person to buy

order for a person to survive .afety needs =elongingness needs ;eeds for security, stability, and a safe environment ;eeds for social interaction, friendship, affection, and love

$steem needs

.elf-actualization needs

"he needs to feel good about oneself and ones capabilities, to be respected by others, and to receive recognition and appreciation "he needs to realize ones full potential as a human being

food and clothing and have ade uate housing =y providing job security, ade uate medical benefits, and safe working conditions =y promoting good interpersonal relations and organizing social functions such as company picnics and holiday parties =y granting promotions and recognizing accomplishments =y giving people opportunity to use their skills and abilities to the fullest e/tent possible

#erz(erg=s motivator !ygiene t!eory is a need theory that distinguishes between motivator needs &related to the nature of the work itself* and hygiene needs &related to the physical and psychological conte/t in which the work is performed* and proposes that motivator needs must be met for motivation and job satisfaction to be high. Motivator needs- interesting work, autonomy, responsibility, being able to grow and develop on the job, sense of accomplishment and achievement. #ygiene needs- pleasant and comfortable working conditions, pay, job security, good relationships with co-workers, and effective supervision. %ccording to Derzberg, when hygiene needs are not met, workers are dissatisfied, and when hygiene needs are met, workers are not dissatisfied. .atisfying hygiene needs, however, does not result in high levels of motivation or even high level of job satisfaction. 4or motivation and job satisfaction to be high, motivator needs must be met. McClelland=s needs for ac!ievement> affiliation> and po1er. 3eed for ac!ievement is the e/tent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for e/cellence. 3eed for affiliation is the e/tent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having other people around them get along with each other. 3eed for po1er is the e/tent to which an individual desires to control or influence others. 2. E)pectancy t!eory is the theory that motivation will be high when workers believe that high levels of effort lead to high performance, and the high performance leads to the attainment of desired outcomes. E)pectancy is a perception about the e/tent to which effort results in a certain level of performance. .nstr$mentality is a perception about the e/tent to which performance results in the attainment of outcomes. 9alence - how desirable each of the outcomes available from a job or organization is to a person. 3. E5$ity t!eory is a theory of motivation that focuses on peoples perceptions of the fairness of their work outcomes relative to their work inputs. <otivation is influenced by the comparison of ones own outcomeEinput ratio with the outcomeEinput ratio of a referent. E5$ity is the justice, impartiality, and fairness to which all organizational members are entitled.

.ne5$ity is the lack of fairness. 4nderpayment ine5$ity is the ine uity that e/ists when a person perceives that his or her own outcomeEinput ratio is less than the ratio of a referent. Overpayment ine5$ity is the ine uity that e/ists when a person perceives that his or her own outcomeEinput ratio is grater than the ratio of a referent. Topic ?. Organizational Control. !. Controlling is the process whereby managers monitor and regulate how effectively and efficiently an organization and its members are performing the activities necessary to achieve organizational goals. T!e types of controlFeedfor1ard control is the control that allows managers to anticipate problems before they arise. Conc$rrent control is the control that gives managers immediate feedback on how effectively and efficiently inputs are being transformed into outputs so that managers can correct problems as they arise. Feed(ac" control is the control that gives managers information about customers reactions to goods and services so that corrective action can be taken as necessary. 1. Fo$r steps in organizational control $stablish the standards of performance, goal, or targets against which performance is to be evaluated; <easure actual performance; 0ompare actual performance against chosen standards performance; $valuate the result and initiate corrective action if the standard is not being achieved. 2. Type of control Mec!anisms of control Autput 0ontrol 4inancial measures of performance Arganizational goals Aperating budgets =ehavior 0ontrol 9irect supervision <anagement by objectives >ules and standard operating procedures Arganizational 0ultureE0lan 0ontrol Balues ;orms .ocialization Fo$r meas$res of financial performanceProfit ratios 0et$rn of investment ;et profit before <easures how well managers are using ta/esEtotal asset organizations resources to generate profits. 'ross profit margin &sales revenues cost of "he differences between the amount of goods sold*E sales revenue generated from the product and revenues the resources used to produce the product. 7i5$idity ratios C$rrent ratio 0urrent assetsEcurrent 9o managers have resources available to liabilities meet claims of short-term creditorsF @$ic" ratio &0urrent assets 0an managers pay off claims of shortinventory*Ecurrent term creditors without selling inventoryF

liabilities 7everage ratios ,e(t to assets ratio Times covered ratio "otal debtEtotal assets $=:"E charges total "o what e/tent have managers used borrowed funds to finance investmentsF interest <easures how far profits can decline before managers can not meet interest changes. :f ratio declines to less than !, the organization is technically insolvent.

Activity ratios .nventory t$rnover ,ays o$tstanding

sold <easures how efficiently managers are turning inventory over so e/cess inventory is not carried. sales %ccounts receivableEtotal <easures how efficiently managers are salesE266 collecting revenues from customers to pay e/penses.

0ost of Einventory

goods

Operating ($dget is a budget that states how managers intend to use organizational resources to achieve organizational goals. ,irect s$pervision managers actively monitor and observe the behavior of their subordinates, teach subordinates the behaviors that are appropriate and inappropriate, and intervene to take corrective action as needed. Management (y o(;ectives is a goal setting process in which a manager and his or her subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate the e/tent to which the subordinate is achieving those goals. Topic 1A. 'ro$ps and Teams. !. 'ro$p two or more people who interact with each other to accomplish certain goals or meet certain needs. Team is a group whose members work intensely with each other to achieve a specific, common goal or objective. Formal gro$p is a group that managers establish to achieve organizational goals. .nformal gro$p is a group that managers or non-managerial employees form to help achieve their own goals or meet their own needs. Top + management team is a group composed of the 0$A, the president, and the heads of the most important departments. 0esearc! and development team is a team whose members have the e/pertise and e/perience needed to develop new products. Command gro$p is a group composed of subordinates who report to the same supervisor; also called a department or unit. Tas" force is a committee of managers and non-managerial employees from various departments or divisions who meet to solve specific, mutual problems. %elf managed 1or" team is a group of employees who supervise their own activities and monitor the uality of the goods and services they provide. 9irt$al team is a team whose members rarely or never meets face to face and interacts by using various forms of information technology such as e-mail, computer networks, telephone, fa/, and video conferences. Friends!ip gro$p is an informal group composed of employees who enjoy each others company and socialize with each other. .nterest gro$p is an informal group composed of employees seeking to achieve common goal related to their membership in an organization.

1. 'ro$p role is a set of behaviors and tasks that a member of a group is e/pected to perform because of his or her position in the group. 'ro$p norms shared guidelines and rules for behavior that most group members follow. 'ro$p co!esiveness is the degree to which members are attracted or loyal to a group. Five stages of gro$p development:n the first stage, forming> members try to get to know each other and reach a common understanding of what the group is trying to accomplish and how group members should behave. :n the second stage, storming> group members e/perience conflict and disagreements because some members do not wish to submit to the demands of other group members. 9uring the third stage, norming, close ties between group members develop, and feelings of friendship emerge. :n the fourth stage, performing, the real work of the group gets accomplished. "he last stage, ad;o$rning> applies only to groups that eventually are disbanded, such as task forces. 2. <anagers striving to have top performing groups and teams need to <otivate group members to work toward the achievement of organizational goals; >educe social loafing; .ocial loafing is the tendency of individuals to put forth less effort when they work in groups than when they work alone. Delp groups manage conflicts effectively. Topic 11. 7eaders!ip. !. 7eaders!ip is the process by which an individual e/erts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals. 7eader is an individual who is able to e/ert influence over other people to help achieve group or organizational goals. T!ere are 2 types of po1er 7egitimate po1er is the authority that a manager has through his or her position in an organizations hierarchy; 0e1ard po1er is the ability of a manager to give or withhold tangible and intangible rewards; Coercive po1er is the ability of a manager to punish others; E)pert po1er is the power that is based in the special knowledge, skills, and e/pertise that a leader possesses; 0eferent po1er is the power that comes from subordinates and coworkers respect, admiration and loyalty. 1. T!e trait model of leadership focused on identifying those personal characteristics that cause effective leadership. >esearchers thought effective leaders must have certain personal ualities that set them apart from ineffective leaders and from people who never become leaders. "rait 9escription :ntelligence Delps managers understand comple/ issues and solve problems Gnowledge and Delps managers make good decisions and discover ways to increase e/pertise efficiency and effectiveness 9ominance Delps managers influence their subordinates to achieve organizational goals .elf-confidence 0ontributes to managers effectively influencing subordinates and

Digh energy "olerance for stress :ntegrity and honesty <aturity

persisting when faced with obstacles or difficulties Delps managers deal with the many demands they face Delps managers deal with uncertainty and difficult decisions Delps managers behave ethically and earn their subordinates trust and confidence Delps managers avoid acting selfishly, control their feelings, and admit when they have made a mistake

T!e (e!avior model- assumptions about workers attitudes and behavior affect managers behaviorE ,. Mc'regor=s T!eory B and T!eory C"heory H- negative assumptions about workers that lead to the conclusion that a managers task is to supervise them closely and control their behavior. "heory I- positive assumptions about workers that lead to the conclusion that a managers task is to create a work setting that encourages commitment to organizational goals and provides opportunities for workers to be imaginative and to e/ercise initiative and self-direction. "heory H "heory I "he average employee is lazy, dislikes work, $mployees are not inherently lazy. ?iven the and will try to do as little as possible chance, employees will do what is good for the organization "o ensure that employees work hard, managers "o allow employees to work in the should closely supervise employees organizations interest, managers must create a work setting that provides opportunities for workers to e/ercise initiative and self-direction <anagers should create strict work rules and <anagers should decentralize authority to implement a well-defined system of rewards employees and make sure employees have the and punishments to control employees resources necessary to achieve organizational goals T!e O!io %tate 4niversity Model>esearches identify two basic kinds of leader behavior 0onsideration is the behavior indicating that a manager trusts, respects, and cares about subordinates; :nitiating structure is the behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective. T!e 4niversity of Mic!igan Model>esearches identify two basic kinds of leader behavior $mployee-centered Job- oriented 0. *la"e and D. Mo$ton=s Managerial 'rid>esearches identify two basic kinds of leader behavior 0oncern for people 0oncern for production

2.
Contingency models propose that the effectiveness of a leader depends on the situation in which the leader finds him or her.

F. Fiedler=s contingency model4iedler identified three situational characteristics leader-member relations the e/tent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading; task structure - the e/tent to which the work to be performed is clear-cut so that a leaders subordinates know what needs to be accomplished and how to go about doing it; a determinant of how favorable a situation is for leading; 8osition power the amount of legitimate, reward, and coercive power that a leader has by virtue of his or her position in an organization; a determinant of how favorable a situation is for leading.

#o$se=s Pat! 'oal theory is a contingency model of leadership proposing that leaders can motivate subordinates by identifying their desired outcomes, rewarding them for high performance and the attainment of work goals with their desired outcomes, and clarifying for them the paths leading to the attainment of work goals. Topic 12. Organizational Conflict and 3egotiation Organizational conflict is the discord that arises when the goals, interests, or values of different individuals or groups are incompatible and those individuals or groups block or thwart each others attempts to achieve their objectives. Types of conflict :nterpersonal conflict is a conflict between individual members of an organization, occurring because of differences in their goals or values; :ntragroup conflict is a conflict that arises within a group, team or department; :ntergroup conflict is a conflict between groups and teams; :nterorganizational conflict is a conflict that arises across organizations. %o$rces of conflict :ncompatible goals and time horizons; Averlapping authority;

"ask interdependencies; :ncompatible evaluation or reward system; .tatus inconsistencies. Conflict management strategies.trategies focused on individuals :ncreasing awareness of the sources of conflict; :ncreasing diversity awareness and skills; 8racticing job rotation or temporary assignment; Ksing permanent transfers or dismissal when necessary. .trategies focused on the whole organization 0hanging an organizations structure and culture; %ltering the source of conflict. 3egotiation is a method of conflict resolution in which the 1 parties in conflict consider various alternative ways to allocate recourses to each other in order to come up with a solution acceptable to them both. ,istri($tive negotiation is adversarial negotiation in which the parties in conflict compete to win the most resources while conceding as little as possible. .ntegrative negotiation is a cooperative negotiation in which the parties in conflict work together to achieve a resolution that is good for them both.