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Summary Management all lectures, complete - Part I, II

Management & Organization (Hogeschool Saxion)

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Summary management and organisation

Chapter 1 A good organisation has the following 3 aspects:

An organization: a deliberate arrangement of people to accomplish some specific purpose,

controlled by its management.

Management has the task to coordinate the organization towards accomplishing organizational
goals. Activities are completed efficiently and effectively by others.

A manager: someone who coordinates and oversees the work of other people in order to accomplish
organizational goals.

First- line managers: the lowest level of management who manage the work of non-managerial
employees and typically are directly or indirectly involved with producing the organization’s products
or servicing the organization’s customers.

Middle managers: manager between the lowest level and top levels of the organization who manage
the work of first-line managers

Top managers: managers at or near the upper levels of the organization structure who are
responsible for making organization wide decisions and establishing the goals and plans that affect
the entire organization.

Efficiency: doing things right or getting the most output from the least amount of inputs
Effectiveness: doing the right things, or completing activities so that organizational goals are
reached.

Management functions (Fayol)

Planning Define goals, setting goals, developing plans and strategy to coordinate activities.
Organizing Deciding what needs to be done, and how and who will do it
Leading Motivating, leading. (Conflicts)
Controlling Monitoring activities, to ensure reached as planned
Achieving the organizations stated purposes

Management roles (Mintzergs)

 Interpersonal roles: managerial roles that involve people and other duties that is ceremonial
and symbolic in nature. Roles: Figurehead, leader, liaison (first line)
 Informational roles: managerial roles that involve collecting, receiving, and disseminating
information. Roles: monitor, disseminator, spokesperson (middle)
 Decisional roles: managerial roles that revolve around making choices. Roles, Entrepreneur
disturbance handler resource allocator negotiator (top)

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Management skills
 Conceptual skills, the ability to think and to conceptualize about abstract and complex
situations. (Top managers)
 Human skills, the ability to work well with other people individually and in a group(middle
managers, but all managers need it)
 Technical skills, job-specific knowledge and techniques needed to proficiently perform work
tasks. (first line managers)

Chapter 2
Classical approach: making organizations and workers as efficient as possible
 Scientific management, one best way to do your job.
The four principles of scientific management
1. The development of a true science
2. The scientific selection of the workman
3. The scientific education and development of the workman
4. Intimate and friendly cooperation between the management and the men

 General administrative, an approach to management that focuses on describing what

managers do and what constitutes good management practice.
1. Division of work (specialization increases output by making employees more efficient)
2. Authority (Managers must be able to give orders and authority gives them this right)
3. Discipline (Employees must obey and respect the rules that govern the organization)
4. Order (People and materials should be in the right place at the right time)
5. Equity (Managers should be kind and fair to their subordinates)

*bureaucracy, a form of organization characterized by division of labor, a clearly defined hierarchy,

detailed rules and regulations and impersonal relationships. (Division of labor, authority hierarchy,
formal selection, formal rules and regulations, impersonality, career orientation) Page 45

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Quantitative approach: the use of quantitative techniques to improve decision making, within total
quality management: a philosophy of management that is driven by continuous improvement and
responsiveness to customer needs and expectations.
1. Intense focus on the customer, ( buyers)
2. Continual improvement, (quality management, never satisfied)
3. Process focused, (improve work processes and goods and services)
4. Improvement in the quality of everything ( after sales service of a company)
5. Accurate measurement (measure variables in organization operations)
6. Empowerment of employees, (people on the line improvement process)

Behavioral approach
 Organizational behavior, a field of study that researches the actions (behavior) of people at
work. What can lead to a higher productivity?

Contemporary approaches
 Systems approach; a set of interrelated and interdependent parts arranged in a manner that
produces a unified whole.
1. Open system that interact with their environment
2. Closed system that not interact with their environment
 Contingency approach: a management approach which says that organizations are different,
face different situations, and require different ways of managing.
Variables: Routine of task technology, environmental uncertainty, individual differences,
organization size.

Chapter 3

Omnipotent view of management: the view that managers are directly responsible for an
organization success or failure
Symbolic view: the view that much of an organization success or failure is due to external forces
outside manager’s control

Organizational culture: the shared values, principles, traditions, and ways of doing things that
influence the way organizational members act. Every company has an organizational culture.
How do employees learn about culture? Rituals, symbols, language and stories

Culture can be defined as all the behaviours, ways of life, arts, beliefs and institutions of a population
that are passed down from generation to generation.(values, heroes, rituals, cultural network even
within a company)
Innovative culture: Give the employees enough freedom, trust, join decision-making, etc.

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Strong cultures: organizational cultures in which the key values are intensely held and widely shared
Weak cultures: organizational cultures in which the key values are less intensely held and easier to
change compared to a strong culture.

Chapter 4/5 Multinational Corporation: connect global perspective.

Companies expand but why? Different economies of scale on existing products,
opportunities/unserved market, attack competitor in its home market, spread investment in new
products.

Parochialism: viewing the world solely through one’s own eyes and perspectives and not recognizing
that others have different ways of living and working. Parochialism leads to an inability to recognize
differences between people.

Ethnocentric attitude: the parochialistic belief that the best work approaches and practices are those
of the home country. (Global company, centralized management, global efficiency)
Polycentric attitude: the view that the managers in the host country know the best work approaches
and practices for running their business. (Multi-domestic cooperation, decentralized management in
different countries).
Geocentric attitude: a world-oriented on using the best approaches and people from around the
globe. (Transnational/borderless organizations, eliminates geographic barriers, also in organizational
structure).

How organizations go international

Global sourcing: purchasing materials or labor from around the world based on lowest cost
Exporting: making products domestically and selling them abroad.
Importing: purchase products made abroad and sell them domestically
Licensing: an agreement in which an organization gives another organization the right to make or sell
its products, using its technology or product specifications.
Franchising: an agreement in which an organization gives another organization the right to use its
name and operating methods.
Strategic alliance: a partnership between an organization and a foreign company partner in which
both share resources and knowledge in developing new products or building production facilities.
 Makes it easy to buy and sell goods between the members of the alliance
 Makes it harder for other countries to sell into the alliance
A trade alliance has quotas- limit on the amount of goods that can be sold in the country
Taxes- have tariffs on import products to make the product more expensive.

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Social obligation: a firms engaging in social actions because of its obligation to meet certain
economic and legal responsibilities
Classical view: the view that managements only social responsibility is maximize profits
Socioeconomic view: the view that management social responsibility goes beyond making profits
and includes protecting and improving society’s welfare
Social responsiveness: a firm engaging in social actions in response to some popular social need
Social responsibility; a business intention, beyond its legal and economic obligations, to do the right
things and act in ways that are good for society.

A green management: a form of management in which managers consider the impact of their
organization on the natural environment.

Chapter 6
Decision making process, a decision is a choice from two or more alternatives
Problem: an obstacle that makes achieving a desired goal or purpose difficult
Identifying a problem
1. Problem identification (degree of problem) (most important part of decision making, do we
really have a problem which is a treat to our company?)
2. Identifying decision criteria, criteria that define what’s important or relevant in resolving a
problem.
3. Allocating weights to criteria
4. Developing alternatives
5. Analyzing alternatives
6. Selecting an alternative
7. Implementing the alternative
8. Evaluating decision effectiveness
Evaluation of decision effectiveness

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Structured problem: a straightforward, familiar and easily defined problem

Programmed decision: repetitive decision that can be handled using a routine approach
Unstructured problem: a problem that is new or unusual and for which information is incomplete

Non-programmed decision: A unique and nonrecurring decision that requires a custom made
solution

Certainty: a situation in which a decision maker can make accurate decisions because all outcomes
are known. (Ideal situation)
Risk: a situation in which the decision maker is able to estimate the likelihood of certain outcomes.
Under risk, managers have historical data from past personal experiences or secondary information
that lets them assign probabilities to different alternatives.
Uncertainty: a situation in which a decision maker has neither certainty nor reasonable probability
estimates available.
Maximax: Maximum profit outcome within the same strategy
Maximin: Minimum profit outcome within the same strategy
Minimax: Maximum profit outcome over the different strategies.

Rational decision making: a type of decision making in which choices are logical and consistent and
maximize value
Bounded rationality: decision making that’s rational but limited by an individual’s ability to process
information
Satisfice: to accept solutions that is good enough.

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Linear thinking: a decision style characterized by a person’s preference for using external data and
facts and processing this information through rational, logical thinking
Nonlinear thinking style: a decision style characterized by a person’s preference for internal sources
of information and processing this information with internal insights, feelings, and hunches.
Heuristics: rules of thumb that mangers use to simplify decision making

Decision making errors and biases

Overconfidence once success, always success
Immediate gratification immediate results wanted
Anchoring effect focus on initial information
Selective perception biased perception
Confirmation “That’s what I thought”
Framing Highlighting points over others
Availability Work on short term memory
Representation “Kind of like last time”
Randomness Create meaning out of random
Sunk costs can’t correct the past
Self-serving “It was me, all me!! Unless it went wrong”
Hindsight “I would have known that!”

Chapter 8

Strategy: The direction and scope of an organization over the long term, which achieves advantage
for the organization through its configuration of resources within a changing environment and to
fulfil stakeholder expectations.”
 Better performance
 Set out a course and deal with change
 One plan for everyone in the organization

Strategic management: what managers do to develop an organization’s strategies. It’s important

and it involves all management functions: planning, organizing, leading and controlling.

Classic strategy by Michael porter: Best practice in daily work is good, but without a strategy you will
not have competitive advantage, only price erosion. A strategy needs to be aimed at profit,
continuity and (dynamic) change. You need to be able to improve yourself.

Strategic management process: a six step process that encompasses strategic planning,
implementation and evaluation.
1. Identify the organization’s current mission, goals, and strategies.
2. External analysis (opportunities and treats) SWOT
3. Internal analysis (strengths and weaknesses)SWOT
4. Formulate strategies
5. Implement strategies
6. Evaluate results

Mission: a statement of the purpose of an organisation

Resources: an organization assets that are used to develop, manufacture and deliver products to its
customers
Capabilities: an organization’s skills and abilities in doing the work activities needed in its business
Core competencies: the organization’s major value creating capabilities that determine its
competitive weapons.

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Corporate strategies: an organizational strategy that specifies what businesses a company is in or

wants to be in and what it wants to do with those businesses.

Growth strategy: a corporate strategy that’s used when an organization wants to expand the
number of markets served or products offered, either through its current business of through new
businesses
Stability strategy: a corporate strategy in which an organization continues to do what it is currently
doing
Renewal strategy: a corporate strategy designed to address declining performance
 Turnaround – When the problems are serious
 Retrenchment strategy – When the problems are small
Competitive strategy: an organizational strategy for how an organization will compete in its business
Strategic business units: the single businesses of an organization that are independent and
formulate their own competitive strategies.
Competitive advantage: the factor that an organization apart; it’s distinctive edge
Functional strategies: the strategies used by an organization’s various functional departments to
support the organization’s competitive strategy
Strategy flexibility: the ability to recognize major external changes, to quickly commit resources, and
to recognize when a strategic decision was a mistake.

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Porters 5 forces

Threats of new entrants: how likely is it that new competitor’s will come into the industry?
Threat of substitutes: how likely is it that other industries products can be substituted for our
industry products?
Bargaining power of buyers: how much bargaining power do buyer’s (customers) have?
Bargaining power of suppliers: how much bargaining power do suppliers have?
Current rivalry: how intense is the rivalry among current industry competitors?

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Chapter 8
Goals
Stated goals: Official statements of what an organization says, and what it wants its various
stakeholders to believe
Real goals: Goals that an organization actually pursues, as defined by the actions of its members

Plans

Strategic plans: Plans that apply to the entire organization and establish the organization’s overall
goals
Operational plans: Plans that encompass a particular operational area of the organization
Long-term plans: Plans with a time frame beyond three years
Short-term plans: Plans covering one year or less
Specific plans: Plans that are clearly defined and leave no room for interpretation
Directional plans: Plans that are flexible and set out general guidelines
Single-use plan: A one-time plan specifically designed to meet the needs of a unique situation
Standing plans: Ongoing plans that provide guidance for activities performed repeatedly

Planning approaches
Formal planning department: A group of planning specialists whose sole responsibility is helping to
write organizational plans
Environmental scanning: Screening information to detect emerging trends.
Competitor intelligence: Gathering information about competitors that allows managers to
anticipate competitors’ actions than merely react to them.

Goal setting
Traditional goal setting: An approach to setting goals in which top managers set goals that then flow
down through the organization and become sub goals for each organizational area
Means-ends chain: An integrated network of goals in which the accomplishment of goals at one level
serves as the means for achieving the goals, or ends, at the next level
Management by objectives (MBO): A process of setting mutually agreed-upon goals and using those
goals to evaluate employee performance

Factors that determine ethical and unethical behavior

 Individual characteristics
 Issue intensity
 Organizational culture
 Structural variable

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MANAGEMENT AND ORGANIZATION

PART 2
SUMMARY

CHAPTER 6: MANAGING CHANGE AND INNOVATION

Calm water metaphor: Stable and predictable environment

White water rapids metaphor: No stability or predictability, to succeed you have to quickly respond
to changing conditions.

Changes:
Organizational change: Any alteration of people, structure, or technology in an organization
Change agent: Someone who acts as a catalyst and assumes the responsibility for managing the
change process

Changes occur in:

-Structure
-People
-Technology

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Why do people resist change?

 No belief in change
o This cannot be a better form of education.
 Ambiguity and uncertainty
o You don’t know when and where the classes will be. Does it fit in your schedule?
 Having to break a habit
o You’re used to coming to school on Friday, but now you might have to be here at
three different times.
 Loss of investment in current status quo
o You’re losing your chance to carpool with friends.
o
How to reduce the resistance to change
 Education & communication with people
 Let people participate
 Facilitate and support
 Negotiate and buy commitment
 Manipulation & co-optation
 After all attempts remove those who resist

How to change successfully?

 Be a change capable organization
 Managers should understand their role in the process
 Get employees involved

Culture and people are hard to change

What are the favorable conditions for change?
 Dramatic crisis occurs
 Leadership changes hands
 Organization is young and small
 The culture is weak

How to conduct the Organizational development training (changing people)

 Sensitivity Training, dealing with unstructured interaction
 Team Building
 Survey Feedback
 Intergroup Development, Changing attitudes and perceptions that work groups have about
each other
 Process consultation, Outside consultants help managers understand the link between
interpersonal processes and the way work is done

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Employee stress:
Stress: the adverse reaction people have to excessive pressure placed on them by extraordinary
demands, constraints and opportunities.
Stressors: Factors that cause stress

Potential stress Outcome importance

Outcome uncertainty Actual stress

How can stress be reduced? Symptoms of stress:

o Personal help Physical – headache, increase
o Employee selection heartbeat, blood pressure,
o Job re- design etc.
Behavioral – smoking, eat
Stress causes problems behavior, sleep disorder,
1. Hard to control directly alcohol use, etc.
2. Ethical considerations Psychological – tension,
irritability, boredom, etc.

Role conflicts: Work expectations that are hard to satisfy

Role overload: Having more work to accomplish than time permits
Role ambiguity: When role expectations are not clearly understood

Type A personality: People who have a chronic sense of urgency and an excessive competitive drive
Type B personality: People who are relaxed and easygoing and accept change easily

Creativity versus Innovation:

Innovation: The outcomes of the creative process turned into useful products or work methods
Creativity: Refers to the ability to combine ideas in a unique way or to make unusual associations
between ideas

Innovation variables:

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Idea champion: Individuals, who actively and enthusiastically support new ideas, build support,
overcome resistance, and ensure that innovations are implemented

Conclusion
 The environment is dynamic and ever-changing
 Managers need to make the organization’s structure, culture and people capable of changing
 Being the change means to innovate, creative thinking needs to be stimulated
 Managers need to facilitate the process of making useful products and services out of
creative ideas

CHAPTER 10 ORGANIZATIONAL STRUCTURE AND DESIGN

Organizing: Arranging and structuring work to accomplish organizational goals

Organizational structure: The formal arrangement of jobs within the organization.

Purpose of organizing:
• Divide work
• Assign tasks
• Coordinate tasks
• Cluster jobs into units
• Establish relationships
• Establish formal lines of authority
• Allocate and deploy resources

Organizational chart: The visual representation of an organization’s structure

Organizational design: Creating or changing an organization’s structure

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Organizational design: “A process that involves decisions about six key elements: work specialization,
departmentalization, and chain of command, span of control, (de) centralization, and formalization.”

1. Work specialization: dividing the work into separate tasks in order to be more efficient (also
known as division of labor)
2. Departmentalization: how jobs are grouped together

Five common forms, Departmentalization based on:

I. Customer
II. Process
III. Product
IV. Geography
V. Functional
3. Chain of command: Line of authority extending from the upper organizational levels to lower
levels, which clarifies whom reports to whom.
Authority: refers to the rights inherent in a managerial position to tell people what to do and to
expect them to do it.
Responsibility: Expectation that employees perform any assigned duties
Unity of command: A person should respond to only one manager

4. Span of control: how many employees can a manager efficiently and effectively manage
5. (De) centralization: the degree to which decision making takes place at upper levels of the
organization.
Employee empowerment: gives employees more authority to make decisions and is a
decentralized way of managing
6. Formalization: refers to how standardized an organization’s jobs are and the extent to which
employee behavior is guided by rules and procedures
Some formalization is necessary for consistency and control; however too much standardization
has negative effects.

Centralization: The degree to which decision making is concentrated at upper levels of the
organization
Decentralization: The degrees to which lower-level employees provide input or actually make
decisions
Employee empowerment: Giving employees more authority (power) to make decisions
Formalization: How standardized an organization’s jobs are and the extent to which employee
behavior is guided by rules and procedures

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Mechanic versus organic:

Mechanistic organization: An organizational design that’s rigid and tightly controlled

Organic organization: An organizational design that’s highly adaptive and flexible

Traditional Organizational Designs

Simple structure: An organizational design with low departmentalization, wide spans of control,
centralized authority, and little formalization
Functional structure: An organizational design that groups together similar or related occupational
specialties
Divisional structure: An organizational structure made up of separate, semiautonomous units or
divisions

Unit production: The production of items in units or small batches

Mass production: The production of items in large batches
Process production: The production of items in continuous processes

CHAPTER 11 ADDAPTIVE ORGANIZATIONAL DESIGN

Contemporary organizational design:
Team structure: An organizational structure in which the entire organization is made up of work
teams
Matrix structure: An organizational structure that assigns specialists from different functional
departments to work on one or more projects
Project structure: An organizational structure in which employees continuously work on projects
boundaryless organization: An organization whose design is not defined by, or limited to, the
horizontal, vertical, or external boundaries imposed by a predefined structure
Virtual organization: An organization that consists of a small core of full-time employees and outside
specialists temporarily hired as needed to work on projects
Network organization: An organization that uses its own employees to do some work activities and
networks of outside suppliers to provide other needed product components or work processes

“No matter what structural design managers choose for their organizations, the design should help
employees do their work in the best – most efficient and effective – way they can. The structure
should aid and facilitate organizational members as they carry out the organization’s work. After all,
the structure is simply a means to an end.”

The appropriate structure depends on four contingency variables (page 208)

1. Strategy and structure
2. Size and structure
3. Technology and structure
4. Environmental uncertainty and structure

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Today organizational design challenges:

-Keeping employees connected, dealing with a dynamic environment
-Building a learning organization, to let employees continuously learn adapt and change
- Managing global structural issues, dealing with cultural implications of structures

Collaboration
Internal collaboration
Cross-functional team: A work team composed of individuals from various functional specialties
Task force (or ad hoc committee): A temporary committee or team formed to tackle a specific short-
term problem affecting several departments
Communities of practice: Groups of people who share a concern, a set of problems, or a passion
about a topic, and who deepen their knowledge and expertise in that area by interacting on an
ongoing basis

External collaboration
Open innovation: Opening up the search for new ideas beyond the organization’s boundaries and
allowing innovations to easily transfer inward and outward
Strategic partnerships: Collaborative relationships between two or more organizations in which they
combine their resources and capabilities for some business purpose

Flexible Work Arrangements

Telecommuting: A work arrangement in which employees work at home and are linked to the
workplace by computer
Compressed workweek: A workweek where employees work longer hours per day but fewer days
per week
Flextime (or flexible work hours): A scheduling system in which employees are required to work a
specific number of hours a week but are free to vary those hours within certain limits
Job sharing: The practice of having two or more people split a full-time job

Contingent workers: Temporary, freelance, or contract workers whose employment is contingent

upon demand for their services

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CHAPTER 13 MANAGING TEAMS

Group: Two or more interacting and interdependent individuals who come together to achieve
specific goals.

Stages of group forming:

Forming stage: The first stage of group development in which people join the group and then define
the group’s purpose, structure, and leadership
Storming stage: The second stage of group development, characterized by intragroup conflict
Norming stage: The third stage of group development, characterized by close relationships and
cohesiveness
Performing stage: The fourth stage of group development when the group is fully functional and
works on group task
Adjourning: The final stage of group development for temporary groups during which group
members are concerned with wrapping up activities rather than task performance

Group performance satisfaction model:

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Group structure:
Role: Behavior patterns expected of someone occupying a given position in a social unit
Norms: Standards or expectations that are accepted and shared by a group’s members
Groupthink: When a group exerts extensive pressure on an individual to align his or her opinion with
others’ opinions
Status: A prestige grading, position, or rank within a group
Social loafing: The tendency for individuals to expend less effort when working collectively than
when working individually
Group cohesiveness: The degree to which group members are attracted to one another and share
the group’s goals

Type of conflicts:
Conflict: perceived incompatible differences resulting in some form of interference or opposition.
Whether the differences are real is irrelevant.

Traditional view of conflict: The view that all conflict is bad and must be avoided
Human relations view of conflict: The view that conflict is a natural and inevitable outcome in any
group
Interactionism view of conflict: The view that some conflict is necessary for a group to perform
effectively
Functional conflicts: Conflicts that support a group’s goals and improve its performance
Dysfunctional conflicts: Conflicts that prevent a group from achieving its goals
Task conflict: Conflicts over content and goals of the work
Relationship conflict: Conflict based on interpersonal relationships (always dysfunctional)
Process conflict: Conflict over how work gets done

Work teams: Groups whose members work intensely on a specific, common goal using their positive
synergy, individual and mutual accountability, and complementary skills

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Type of work teams:

Problem-solving team: A team from the same department or functional area that’s involved in
efforts to improve work activities or to solve specific problems
Self-managed work team: A type of work team that operates without a manager and is responsible
for a complete work process or segment
Cross-functional team: A work team composed of individuals from various functional specialties
Virtual team: A type of work team that uses technology to link physically dispersed members in
order to achieve a common goal

Understanding social network:

Social network structure: The patterns of informal connections among individuals within a group

Effective communication and controlled conflict are most relevant to group performance when tasks
are complex and interdependent.

CHAPTER 16 MOTIVATING EMPLOYEES

Motivation: The process by which a person’s efforts are energized, directed, and sustained toward
attaining a goal

Motivation theories
Maslow’s Hierarchy of Needs Theory

Hierarchy of needs theory: Maslow’s theory that human needs— physiological, safety, social,
esteem, and self-actualization— form a sort of hierarch

1. Physiological needs: A person’s needs for food, drink, shelter, sex, and other physical
requirements.
2. Safety needs: A person’s needs for security and protection from physical and emotional harm, as
well as assurance that physical needs will continue to be met.
3. Social needs: A person’s needs for affection, belongingness, acceptance, and friendship.
4. Esteem needs: A person’s needs for internal esteem factors such as self-respect, autonomy, and
achievement and external esteem factors such as status, recognition, and attention.
5. Self-actualization needs: A person’s needs for growth, achieving one’s potential, and self-
fulfillment; the drive to become what one is capable of becoming.

I already have physiological need and

safety, so the only way to motivate me
is from social needs and above.

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McGregor’s Theory X and Theory Y

Theory X: The assumption that employees dislike work, are lazy, avoid responsibility, and must be
coerced to perform
Theory Y: The assumption that employees are creative, enjoys work, seek responsibility, and can
exercise self-direction

Herzberg’s 2 Factor Theory:

Two-factor theory (motivation-hygiene theory): The motivation theory that intrinsic factors are
related to job satisfaction and motivation, whereas extrinsic factors are associated with job
dissatisfaction

Motivators: GAWRRP
1. Growth
2. Achievement
3. Work Itself
4. Recognition
5. Responsibility
6. Promotion

Hygiene Factors: 4SE3RP

1. Salary
2. Security
3. Status
4. Supervision
5. Company Policy & Administration
6. Personal Life
7. Relationships with co-workers
8. Relationships with supervisors
9. Relationships with subordinates
10. Working condition salary

Hygiene factors: Factors that eliminate job dissatisfaction, but don’t motivate
Motivators: Factors that increase job satisfaction and motivation

McClelland’s 3-Needs Theory: 3NAP

Three-need theory: The motivation theory that says three acquired (not innate) needs—
achievement, power, and affiliation—are major motives in work
Need for achievement (nAch): The drive to succeed and excel in relation to a set of standards
Need for power (nPow): The need to make others behave in a way that they would not have
behaved otherwise
Need for affiliation (nAff): The desire for friendly and close interpersonal relationships

Contemporary Theories of Motivation

Goal Setting Theory
Goal Setting Theory: The proposition that specific goals increase performance and that difficult goal,
when accepted, result in higher performance than do easy goals
Self-efficacy: An individual’s belief that he or she is capable of performing a task

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Reinforcement Theory:
Reinforcement theory: The theory that behavior is a function of its consequences
Reinforces: Consequences immediately following a behavior, which increase the probability that the
behavior will be repeated
 Consequences which give Rewards increase a behavior.
 Consequences which give Punishments decrease a behavior.
 Consequences which give neither Rewards nor Punishments extinguish a behavior.

Job Design Theory:

Job design: The way tasks are combined to form complete jobs

Job enlargement: The horizontal expansion of a job by increasing job scope

Job scope: The number of different tasks required in a job and the frequency with which those tasks
are repeated

Job enrichment: The vertical expansion of a job by adding planning and evaluating responsibilities
Job depth: The degree of control employees have over their work

Job characteristics model (JCM): A framework for analyzing and designing jobs that identifies five
primary core job dimensions, their interrelationships, and their impact on outcomes
I. Skill variety: The degree to which a job requires a variety of activities so that an employee can
use a number of different skills and talents
II. Task identity: The degree to which a job requires completion of a whole and identifiable piece
of work
III. Task significance: The degree to which a job has a substantial impact on the lives or work of
other people
IV. Autonomy: The degree to which a job provides substantial freedom, independence, and
discretion to the individual in scheduling work and determining the procedures to be used in
carrying it out
V. Feedback: The degree to which carrying out work activities required by a job results in the
individual’s obtaining direct and clear information about his or her performance effectiveness

Equity Theory (by Adams):

Equity theory: The theory that an employee compares his or her job’s input–outcomes ratio with that
of relevant others and then corrects any inequity
“Fairness in how a manager deals with you compared to others”

Referents: The persons, systems, or selves against which individuals compare themselves to assess
equity
Distributive justice: Perceived fairness of the amount and allocation of rewards among individuals
Procedural justice: Perceived fairness of the process used to determine the distribution of rewards

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Expectancy Theory (by Vroom):

Expectancy theory: The theory that an individual tends to act in a certain way based on the
expectation that the act will be followed by a given outcome and on the attractiveness of that
outcome to the individual
1. Expectancy that extra work will lead to better performance
2. Belief in the link between performance and reward
3. Attractiveness of the reward

Integrated Contemporary Theories of Motivation:

Efforts -> Performance -> Rewards -> Goals

Designing Appropriate Rewards Programs

Open-book management: A motivational approach in which an organization’s financial statements
(the “books”) are shared with all employees
Employee recognition programs: Personal attention and expressing interest, approval, and
appreciation for a job well done
Pay-for-performance programs: Variable compensation plans that pay employees on the basis of
some performance measure

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CHAPTER 17 MANAGERS AS LEADERS

Leader: A leader is someone who can influence others and who has (managerial) authority.
Leadership: A process of influencing a group to achieve goals

Leadership Behavior Theories

Behavioral theories: Leadership theories that identify behaviors that differentiated effective leaders
from ineffective leaders

University of IOWA studies

The University of IOWA studies has three leadership styles to find which was the most effective.
Autocratic style: A leader who dictates work methods, makes unilateral decisions, and limits
employee participation
Democratic style: A leader who involves employees in decision making, delegates authority, and uses
feedback as an opportunity for coaching employees
Laissez-faire style: A leader who lets the group make decisions and complete the work in whatever
way it sees fit

The OHIO States studies

Initiating structure: The extent to which a leader defines his or her role and the roles of group
members in attaining goals
Consideration: The extent to which a leader has work relationships characterized by mutual trust
and respect for group members’ ideas and feelings
High–high leader: A leader high in both initiating structure and consideration behaviors

University of Michigan studies

Employee oriented: Described as emphasizing interpersonal relationships.
Production-oriented: leaders tended to emphasize the task aspects of the job.

The Managerial Grid

Managerial grid: A two-dimensional grid for appraising leadership styles

3 4 1. Impoverished – Don’t care about the people

and production
2. Task – Good for mass production, despite
High
5 people
3. Country Club – Only focused on people,
Low social communication
4. Team – Focuses on people and production
1 2
Low High 5. Middle of the world – Does a little for
everything

Concern for production

Concern for people

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Contingency Theories of Leadership

The Fiedler Model

Fiedler contingency model: A leadership theory proposing that effective group performance
depends upon the proper match between a leader’s style and the degree to which the situation
allows the leader to control and influence

Least-preferred co-worker (LPC) questionnaire: A questionnaire that measures whether a leader is

task or relationship oriented

Three contingency dimensions that defined the key situational factors in leader effectiveness.
Leader–member relations: One of Fiedler’s situational contingencies that describes the degree of
confidence, trust, and respect employees had for their leader
Task structure: One of Fiedler’s situational contingencies that describes the degree to which job
assignments are formalized and structured
Position power: One of Fiedler’s situational contingencies that describes the degree of influence a
leader has over activities such as hiring, firing, discipline, promotions, and salary increases

Manager has to be task oriented or relationship oriented

“Change the situation to fit the type of leader”  Don’t fire the manager, but change the
organization

Path-Goal Model
Path-goal theory: A leadership theory that says the leader’s job is to assist followers in attaining their
goals and to provide direction or support needed to ensure that their goals are compatible with the
goals of the group or organization

- OPPOSITE OF FIEDLER MODEL -

4 leaders:
Directive leader – Task setting, gives direction
Supportive leader – Friendly, shows concerns for needs
Participative leader – Consults with group (Steve Job)
Achievement oriented – Sets challenging goals and expectations

Locus of control
Internal locus of control – Failure or performance looking in yourself
External locus of control – Put the blame to someone else

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Hersey and Blanchard’s Situational Leadership Theory

SLT uses the same two leadership dimensions that Fiedler identified: task and relationship behaviors.
However, Hersey and Blanchard go a step further by considering each as either high or low and then
combining them into four specific leadership styles described as follows:

- Telling (high task–low relationship): The leader defines roles and tells people what, how,
when, and where to do various tasks.
- Selling (high task–high relationship): The leader provides both directive and supportive
behavior.
- Participating (low task–high relationship): The leader and followers share in decision making;
the main role of the leader is facilitating and communicating.
- Delegating (low task–low relationship): The leader provides little direction or support.

The final component in the model is the four stages of follower readiness:

R1: People are both unable and unwilling to take responsibility for doing something.
Followers aren’t competent or confident.
R2: People are unable but willing to do the necessary job tasks. Followers are motivated but lack the
appropriate skills.
R3: People are able but unwilling to do what the leader wants. Followers are competent, but don’t
want to do something.
R4: People are both able and willing to do what is asked of them.

High

Participate Selling People Oriented

R3 R2
Task Oriented
R4 R1

Delegate Telling

Low

Low High

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Contemporary Views of Leadership

Leader–Member Exchange (LMX) Theory

Leader–member exchange theory (LMX): The leadership theory that says leaders create in-groups
and out-groups and those in the in-group will have higher performance ratings, less turnover, and
greater job satisfaction

Leader
- Invest more on in-member
- Choice based on similar characteristics to the leader
- Tend to reward “in” and punish “out”

“In”-members
- Higher performance
- Less turnover
- Great job satisfaction
- More satisfied with leader

Transformational-Transactional Leadership
Transactional leaders: Leaders who lead primarily by using social exchanges (or transactions)
Transformational leaders: Leaders who stimulate and inspire (transform) followers to achieve
extraordinary outcomes

Transactional leaders Transformational leaders

Let people go along with same vision Do this and I reward you
(Long-term) (Short-term)

Both needed

Charismatic-Visionary Leadership
Charismatic leader: An enthusiastic, self-confident leader whose personality and actions influence
people to behave in certain ways
Visionary leadership: The ability to create and articulate a realistic, credible, and attractive vision of
the future that improves upon the present situation

Charismatic Visionary
Look Ideas
Likable Etc.
Character That need for
Etc. people to look
To look up to up to someone
someone

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Leadership Issues in the Twenty-First Century

Managing Power
Legitimate power – I accept he is my boss, so I do it
Coercive power – Punish if not listened
Reward power – Reward for performance
Expert power – Most knowledge = most power
Referent power – power of having charisma

Developing Trust
Credibility: The degree to which followers perceive someone as honest, competent, and able to
inspire
Trust: The belief in the integrity, character, and ability of a leader

5 dimensions that make up the concept of trust

Integrity honesty and truthfulness
Competence technical and interpersonal knowledge and skills
Consistency reliability, predictability, and good judgment in handling situations
Loyalty willingness to protect a person, physically and emotionally
Openness willingness to share ideas and information freely

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