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Management Exam 3

STUDY
PLAY
Vision
A mental image of a possible and desirable future state of the organization
Supervisory Leadership
Behavior that provides guidance, support, and corrective feedback for day-to-day activities
Strategic Leadership
Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future
Power
The ability to influence others
Trait Approach
A leadership perspective that attempts to determine the personal characteristics that great leaders share
Behavioral Approach
A leadership perspective that attempts to identify what good leaders do - that is, what behaviors they exhibit
Task Performance Behaviors
Actions taken to ensure that the work group or organization reaches its goals
Group Maintenance Behaviors
Actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group
Leader-Member Exchange (LMX) Exchange
Highlights the importance of leader behaviors not just toward the group as a whole but toward individuals on a personal basis
Participation Decision Making
Leader behaviors that managers perform in involving their employees in making decisions
Autocratic Leadership
A form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group
Democratic Leadership
A form of leadership in which the leader solicits input from subordinates
Laissez-Faire
A leadership philosophy characterized by an absence of managerial decision making
Situational Approach
Leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation
Vroom Model
A situational model that focuses on the participative dimension of leadership
Fiedler's Contingency Model of Leadership Effectiveness
A situational approach to leadership postulating that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation
Task-Motivated Leadership
Leadership that places primary emphasis on completing a task
Relationship-Motivated Leadership
Leadership that places primary emphasis on maintain good interpersonal relationships
Hershey and Blanchard's Situational Theory
A life-cycle theory of leadership postulating that a manager should consider an employee's psychological and job maturity before deciding whether task performance or maintenance behaviors are more important
Job Maturity
The level of the employee's skills and technical knowledge relative to the task being performed
Psychological Maturity
An employee's self-confidence and self-respect
Path-Goal Theory
A theory that concerns how leaders influences subordinates' perceptions of their work goals and the paths they follow toward attainment of those goals
Substitutes for Leadership
Factors in the workplace that can expert the same influence on employees as leaders would provide
Charismatic Leader
A person who is dominant, self-confident, convinced of the moral righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers
Transformational Leader
A leader who motivates people to transcend their personal interests for the good of the group
Transactional Leader
Leaders who manage through transactions, using their legitimate, reward, and coercive power to give commands and exchange rewards for services rendered
Level 5 Leadership
A combination of strong professional will (determination) and humility that builds enduring greatness
Authentic Leadership
A style in which the leader is true to himself or herself while leading
Pseudo-Transformational Leaders
Leaders who talk about positive change but allow their self-interest to take precedence over followers' needs
Servant-Leader
A leader who serves others' needs while strengthening the organization
Bridge Leaders
A leader who bridges conflicting value systems or different cultures
Shared Leadership
Rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time
Lateral Leadership
Style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving
Managing Diversity
Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization's advantage
Sexual Harassment
Conduct of a sexual nature that has negative consequences for employment
Affirmative Action
Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past
Monolithic Organization
An organization that has a low degree of structural integration - employing few women, minorities, or other groups that differ from the majority - and thus has a highly homogenous employee population
Pluralistic Organization
An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds
Multicultural Organization
An organization that values cultural diversity and seeks to utilize and encourage it
Mentors
Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization
Motivation
Forces that energize, direct, and sustain a person's efforts
Goal-Setting Theory
A motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end
Stretch Goals
Targets that are particularly demanding, sometimes even thought to be impossible
Law of Effect
A law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated
Reinforcers
Positive consequences that motivates behavior
Organizational Behavior Modification (OP Mod)
The application of reinforcement theory in organizational settings
Positive Reinforcement
Applying consequences that increase the likelihood that a person will repeat the behavior that led to it
Negative Reinforcement
Removing or withholding an undesirable consequence
Punishment
Administering an aversive consequence
Extinction
Withdrawing or failing to provide a reinforcing consequence
Expectancy Theory
A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome
Expectancy
Employees' perception of the likelihood that their efforts will enable them to attain their performance goals
Outcome
A consequence a person receives for his or her performance
Instrumentality
The perceived likelihood that performance will be followed by a particular outcome
Valence
The value an outcome holds for the person contemplating it
Maslow's Need Hierarchy
A conception of human needs organizing needs into a hierarchy of five major types
Alderfer's ERG Theory
A human needs theory postulating that people have three basic sets of needs that can operate simultaneously
Extrinsic Rewards
Rewards given to a person by the boss, the company, or some other person
Intrinsic Reward
Reward a worker derives directly from performing the job itself
Job Rotation
Changing from one routine task to another to alleviate boredom
Job Enlargement
Giving people additional tasks at the same time to alleviate boredom
Job Enrichment
Changing a task to make it inherently more rewarding, motivating, and satisfying
Two-Factor Theory
Herzberg's theory describing two factors affecting people's work motivation and satifaction
Hygiene Factors
Characteristics of the workplace, such as company policies, working conditions, pay, and supervision that can make people dissatisfied
Motivators
Factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement
Growth Need Strength
The degree to which individuals want personal and psychological development
Empowerment
The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization
Equity Theory
A theory stating that people assess how fairly they have been treated according to two key factors - outcomes and inputs
Procedural Justice
Using fair process in decision making and making sure others know that the process was as fair as possible
Quality of Work Life (QWL) Programs
Programs designed to create a workplace that enhances employee well-being
Psychological Contract
A set of perceptions of what employees owe their employers, and what their employers owe them
Control
Any process that directs the activities of individuals toward the achievement of organizational goals
Bureaucratic Control
The use of rules, regulations, and authority to guide performance
Market Control
Control based on the use of pricing mechanisms and economic information to regulate activities within organizations
Clan Control
Control based on the norms, values, shared goals, and trust among group members
Standard
Expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed
Principle of Expectation
A managerial principle stating that control is enhanced by concentrating on the expectations to or significant deviations from the expected result or standard
Feed-forward Control
The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly
Concurrent Control
The control process used whiles plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed
Feedback Control
Control that focuses on the use of information about previous results to correct deviations from the acceptable standard
Management Audits
An evaluation of the effectiveness and efficiency of various systems within an organization
External Audit
An evaluation conducted by one organization, such as a CPA firm, on another
Internal Audit
A periodic assessment of a company's own planning, organizing, leading, controlling processes
Budgeting
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called budgetary controlling
Accounting Audits
Procedures used to verify accounting reports and statements
Activity-Based Costing (ABC)
A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities
Balance Sheet
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholder's equity
Assets
The values of the various items the corporation owns
Liabilities
The amounts a corporation owes to various creditors
Stockholder's Equity
The amount accruing to the corporation's owners
Profit and Loss Statement
An itemized financial statement of the income and expenses of a company's operations
Current Ratio
A liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities
Debt-Equity Ratio
A leverage ratio that indicates the company's ability to meet its long-term financial obligations
Ratio on Investment (RIO)
A ratio of profit to capital used, or a rate of return from capital
Management Myopia
Focusing on short-term earnings and profits at the expense of longer-term strategic obligations
Balanced Scorecard
Control system combining four sets of performance measures: financial, customer, business process, and learning and growth
Transfer Price
Price charged by one unit for a good or service provided to another unit within the organization