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BA 316

Terms in this set (123)

trait approach to leadership
attempt to identify distinctive characteristics that account for the effectiveness of leaders
trait perspective
emphasizes the description and measurement of specific personality differences among individuals
coercive power
The ability of a manager to punish others
reward power
the ability of a manager to give or withhold tangible and intangible rewards
legitimate power
the authority that a manager has by virtue of his or her position in an organization's hierarchy
Two categories of power?
personalized power and socialized power
How are a leader and a manager different?
Leaders influences others while managers plan, investigate, and control others
Micah was talking with Aaron, his assistant manager, saying, "When I make a decision on which employees will do a project, I use three simple factors. I consider their attitude, knowledge, and how hard they work." Micah uses ________ when making a decision.
Heuristics
What is the framing effect (bias)?
(Different POV when said or looked at differently)
the tendency to answer a question differently when it is framed differently
Nonrational models of decision making
explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions
The rational model of decision making is also called the ____ model.
Classical
bounded rationality
a process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity
Step 4 of Rational Decision Making process
Implement the solution made
(Plan carefully, and be sensitive to those affected)
The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the ____. For example, a manager who uses this model may be personally opposed to outsourcing jobs overseas, but she nonetheless decides to outsource customer-service operations to India because doing so is in the company's best interests.
Rational Decision Making
In the third step of rational decision making (evaluating alternatives and selecting a solution), a manager needs to evaluate each alternative not only according to cost and quality but also according to which of the following questions?
Is it ethical, feasible, and effective?
step 2 of rational decision making example
...
step 1 in rational decision making example
Problem: customer complaints, supplier breakdown
Opportunity: Getting a competitors top salesmen after he quits
What are the steps in rational decision making?
1. Define the problem
2. Generate alternative courses of action
3. Evaluate each alternative/Select solution
4. Implement solution
rational decision making
(Classical model) describes choices that are logical and consistent and maximize value
system2 benefits
Reasoned analytical approach well thought out
Sytem1 benefits
Its fast and quick
What is decision system1?
intuitive and largely unconscious
(Operates automatically or quickly like when we unconscious react to something)
What is decision system2?
analytical and conscious
(Slow, and deliberate like when you do your taxes or park your car in a narrow spot)
What is hindsight bias?
(Think events are more predictable than they really are)
the tendency to believe, after learning an outcome, that one would have foreseen it
What is overconfidence bias?
overestimation of the accuracy of knowledge and judgements
What is the anchoring and adjustment heuristic (bias)?
A process in which people make an estimate of some value by starting from an initial value (an anchor) and adjusting.
What is the sunk cost fallacy (bias)?
(Too costly to abandon)
Taking into consideration costs incurred in the past, which will not occur in future, when making decisions at the margin
What is confirmation bias?
a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence
What is the availability heuristic (bias)?
using examples that come to mind
(from memory to make judgement)
What is the representativeness heuristic (bias)?
(Generalization)
a mental shortcut whereby people classify something according to how similar it is to a typical case
What is a heuristic?
(rule of thumb) strategy that often allows us to make judgements and solve problems efficiently
T/F
With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal.
True
What is intuition?
an effortless, immediate, automatic feeling or thought, as contrasted with explicit, conscious reasoning
What is satisficing?
choosing a "good enough" alternative
T/F
Being aware of your decision-making style does not really help you determine your strengths and weaknesses as a decision maker, but it can help you understand when a decision needs to be made.
True
T/F
During a management workshop, Gerald, the HR manager, spoke about making decisions related to firing an employee. He said, "I have several rules of thumb that I use to make a decision. First, I ask if it's legal and then if it's ethical." He then laid out several other steps he uses in the decision-making process related to firing. Gerald's "rules of thumb" are also known as heuristics.
True
Why should you encourage Dionne to use groups to make decisions?
Because groups have a greater pool of knowledge
When people seek information to support their point of view and discount data that do not, they are subject to ______ bias. For example, Rick uses the fact that his commute is now shorter to confirm his belief that there are fewer cars on the road. However, Rick is not accounting for the fact that he recently took over the graveyard shift, and that traffic is always lighter at night and in the wee hours of the morning.
Confirmation Bias
T/F
Decision making is the process of identifying and choosing alternative courses of action.
True
behavioral style
Managers with a deep concern for others. May make decisions to help others achieve their goals
conceptual style
(Broad scope of information)
high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation
analytical style
careful decision makers who like lots of information and alternative choices
directive style
action-oriented decision makers who focus on facts
four decision making styles
directive, analytical, conceptual, behavioral
value orientation
reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions
tolerance for ambiguity
the ability to hold conflicting ideas in your mind simultaneously, without denying or dismissing any of them
decision making style
how an individual perceives and comprehends information
What is a leader?
A person who demonstrates/exercises influence/power over others.
What is a manager?
Person who holds accountability for a group of people
What is leadership?
Leadership is the process of influencing people by providing purpose, direction, and motivation to accomplish the mission and improve the organization.
personalized power
power directed at helping oneself
socialized power
power directed at helping others
what are the five types of power?
1. Legal
2. Reward
3. Coercive
4. Referent
5. Expert.
referent power
power that comes from subordinates' and coworkers' respect, admiration, and loyalty
expert power
power that is based on the special knowledge, skills, and expertise that a leader possesses
Assumptions of Trait Approach
...
what positive traits are associated with leadership
(Extraversion)
(Agreeableness)
(Emotional intelligence)
Intelligence
conscientiousness
open to experience
emotionally stability
positive affect
what negative traits are associated with leadership?
Narcism
Machiavellianism
Psychopathy
behavioral leadership approaches
attempt to determine the unique behaviors displayed by effective leaders
four categories of leader behavior
Task oriented
Relationship-oriented
passive
Transformational
Task-oriented behavior
also known as initiating structure, involves providing direction and enforcing performance standards needed to drive production.
relationship-oriented leaders
leaders whose primary concern is to develop good relationships with their subordinates and to be liked by them
passive leadership
form of leadership behavior characterized by a lack of leadership skills
Transformational Leadership
transforms employees to pursue organizational goals over self-interests
Transformational Leadership positives
Increased organizational, team and individual performance; job satisfaction, employees identification with their leaders and their immediate work group, engagement, and intrinsic motivation
which is more important a leaders traits or behavior?
Behavior
Transactional Leadership
focusing on clarifying employees' roles and task requirements and providing rewards and punishments contingent on performance
Transactional leadership positives?
helps leader effectiveness and group performance
What are the two behaviors a leader can be?
Transactional and transformative
Situational Leadership
(Contingency approach)
Effective leadership varies with the task in hand and situational leaders adapt their leadership style to each situation
Fielder's Contingency Theory
Leadership effectiveness dependent on interaction of personality of leader and needs of situation
What are the two types of leadership in Fielder's contingency theory?
Task Oriented and Relationship Oriented
What questionnaire is used to asses leadership type?
LPC scale
(Higher the score the more relationship oriented you are)
What are three broad categories of situation type?
1. Leader member relations (Do workers accept me)
2. Task structure (Do they understand me)
3. Position power (Can I reward or Punish workers)
leader-member relations
the degree of confidence, trust, and respect subordinates have in their leader
task structure
the degree to which the requirements of a subordinate's tasks are clearly specified
position power
the degree to which leaders are able to hire, fire, reward, and punish workers
When is task-oriented style best?
high control or low control situations
When is relationship-oriented style best?
situations of moderate control
If leadership style does not fit in any situation?
fielder says to try to move leaders into suitable situations rather than try to alter their personalities to fit the situation.
Fielder's Contingency Model
Blake and Mouton's Managerial Grid
focuses on managers' task (production) and employee (people) orientations, as well as combinations between the two extremes.

-shows a grid with concern for production on the horizontal axis and concern for people on the vertical axis and plots five basic leadership styles
full-range leadership
suggests that leadership behavior varies along a full range of leadership styles, from passive leadership at one extreme, through transactional leadership, to transformational leadership at the other extreme
Strategic Human Resource Management
managers perform to plan for, attract, develop, and retain an effective workplace.
Steps in the Strategic Management Process
1. Establish the mission and the vision
2. Assess the current reality
3. Formulate the grand strategy
4. Implement the strategy
5. Maintain strategic control
What is human resource management?
set of organizational activities directed at attracting, developing, and maintaining an effective workforce
what is the purpose of human resource management?
Deal with staffing
(offering progressive and valued programs, policies and procedures for maximum employee satisfaction)
human capital
the skills and knowledge gained by a worker through education and experience
social capital
is the economic or productive potential of strong, trusting, and cooperative relationships
knowledge workers
employees whose main contribution to the organization is specialized knowledge, such as interpreting information rather than manual labor
Job Analysis
the process of getting detailed information about jobs
job description
summarizes what the holder of the job does and how and why he or she does it
job specification
describes the minimum qualifications a person must have to perform the job successfully
Internal recruitment
the process of seeking employees who are currently within the firm to fill open positions
External recruitment
the process of seeking new employees from outside the firm
Advantages of internal recruitment
Business owner already knows the worker's skills
Little additional training required
Cheaper than external recruitment
Can make staff more loyal
Disadvantages of internal recruitment
- Applicants are drawn from a limited pool so the business may not hire the best person for the job
- Promoting one employee creates a vacancy in their old post
- Organization misses out on bringing fresh, new ideas and skills into the business
- Employees can resent fellow colleagues being promoted over them, causing conflict and making relationships strained
Advantages of external recruitment
New ideas and skills can be brought into the business
Standard of applicant could be high
Does not create another vacancy in the business
Internal promotion can cause jealousy
disadvantages of external recruitment
1. Will not know existing teams or employees
2. Will not have specialized knowledge of industry of clients
3. Cost on job adverts
unstructured interview
no fixed set of questions and no systematic scoring procedure
involves asking probing questions to find out what the applicant is like
structured interview
A selection interview that consists of a predetermined set of questions for the interviewer to ask
situational interview
the interviewer focuses on hypothetical situations
behavioral-description interview
Type of structured interview in which the interviewer explores what applicants have done in the past
Base pay
consists of the basic wage or salary paid employees in exchange for doing their jobs
compensation
something, typically money, awarded to someone as a recompense for loss, injury, or suffering.
incentive
a positive or negative environmental stimulus that motivates behavior
Benefits
Compensation in forms other than direct payment
John Kotter's Change Model
1) Establishing a sense of urgency
2) Building a guiding coalition
3) Developing a vision and strategy
4) Communicating change vision
5) Empowering broad base action
6) Generating short term wins
7) Consolidating gains and producing more change.
8) Anchoring new approaches
Google has supervisors provide evaluations of subordinates, but employees and their managers also select a group of peers to conduct semi-annual evaluations. This is most closely resembles which of the following?
360-degree assessment
Assume Google's "People Operations" Department is planning on creating a new position for its data analysis team. Which of the following would be a good first step?
Job analysis
Sexual harassment can prevent people from performing their best due to making them feel uncomfortable or unsafe in their workplace. This means that the type of harassment alleged to be taking place against some Uber employees could negatively impact those employees'
Human Capital
Part of the frustration by drivers, and the reason that some want to unionize, is that they don't receive all parts of a typical compensation package often given to employees. Based on the case, which is the only part of a typical compensation package that Uber's "business partners" do currently receive?
Base Pay
Uber has worked to improve and safeguard its driver performance appraisal rating system, yet it still lacks some of the basic components of traditional employee performance management systems. Based on the case, which of the following is not part of Uber's performance appraisal system for drivers?
rewards
Uber drivers' performance is currently rated by riders in their vehicles. This means that the performance appraisal they receive is primarily
Subjective bias
When the two newly hired analysts compared notes, they found that their interviews had been quite different. Each was long and involved, but the content of the questions varied based on previous employment and education. Why would the interviews have been so different?
They were unstructured interviews.
Which of the following are NOT parts of compensation?
annual performance reviews, and promotions
_______________ is the purpose of the strategic human resource process.
Getting optimal work performance to help realize the company's mission and vision
A specialist at FedEx who rides with couriers to learn about delivery time measurements and potential service problems is conducting a job
analysis.
A ______ summarizes what the holder of the job does and how and why he or she does it. For example, this document might state, "In this job, the worker delivers pizzas within a 10-mile radius of the pizzeria, quickly and promptly, while obeying all traffic laws and driving responsibly."
job desrcription
T/F
Before applying for a job as a contracts analyst, Diego read the job analysis for the available position. This document indicated that the responsible employee reviews contracts for technical accuracy and completeness, and tracks invoices against the executed contracts.
False (That is describing what you do at the job so it would be job description)
______ consists of the activities that managers perform to plan for, attract, develop, and retain an effective workforce.
Human Resource Management
Compared to internal recruiting, which of the following is true of external recruiting?
The process is more expensive and takes longer.
The question "What was the best idea you ever sold to a supervisor, teacher, peer, or subordinate?" would be used in which type of interview situation?
behavioral-description interview
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