PRINC OF MANAGEMENT
PRINC OF MANAGEMENT MGT 3200
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This 15 page Class Notes was uploaded by Fabiola Bogan on Tuesday October 13, 2015. The Class Notes belongs to MGT 3200 at Louisiana State University taught by Anindita Sen in Fall. Since its upload, it has received 19 views. For similar materials see /class/223132/mgt-3200-louisiana-state-university in Business, management at Louisiana State University.
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Date Created: 10/13/15
Leaders and Leadership The Nature of Leadership 0 Leadership the process by which a person exerts in uence over other people and inspires motivates and directs their activities to help achieve group or organizational goals 0 Personal Leadership Style the specific ways in which a manager chooses to in uence others shapes the way that manager approaches the other task of management 0 The challenge is for managers at all levels to develop an effective personal management style Leadership Across Cultures Leadership styles may vary among different countries or cultures 0 European managers tend to be more peopleoriented than American or or Japanese managers 0 Japanese managers are grouporiented while US managers focus more on profitability 0 Time horizons are also affected by cultures Sources of Managerial Power 1 Exp ert 2 Legitimate 3 Reward 4 Coercive 5 Referent Power The Key to Leadership 0 Legitimate Power the authority that a manager has by virtue of his or her position in an organizational hierarchy o Reward Power the ability ofa manager to give or withhold tangible and intangible rewards o Coercive Power the ability ofa manager to punish others 0 Expert Power power that is based on special knowledge skills and expertise that a leader possesses o Referent Power power that comes from subordinates and coworkers respect for the personal characteristics of a leader which earns their loyalty and admiration Empowerment An Ingredient in Modern Management 0 Empowerment the process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes o Increases a manager s ability to get things done 0 Increases workers involvement motivation and commitment o Gives managers more time to concentrate on their pressing concerns Models of Leadership 0 Trait Model focused on identifying personal characteristics that cause effective leadership 0 Research shows that certain personal characteristics do appear to be connected to effective leadership 0 Many quottraitsquot are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits The Behavior Model 0 Behavior Model identifies the two basic types of behavior that many leaders engaged in to in uence their subordinates Consideration behavior indicating that a manager trusts respects and cares about subordinates Initiating Structure behavior that managers engage in to ensure that work gets done subordinates perform their jobs acceptably and the organization is efficient and effective Contingency Models of Leadership 0 Fiedler s Model personal characteristics can in uence leader effectiveness 0 Leader Style is the manager s characteristic approach to leadership 0 RelationshipOriented Style leaders concerned with developing good relations with their subordinates and to be liked by them 0 TalkOriented Style leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment Fiedler s Model Situation Characteristics how favorable a situation is for leading to occur 0 LeaderMember Relations determines how much workers like and trust their worker 0 Task Structure the extent to which workers tasks are clearcut 0 Clear issues make a situation favorable for leadership 0 Position Power the amount of legitimate reward and coercive power leaders have by virtue of their position 0 When positional power is strong leadership opportunity becomes more favorable House s PathGoal Theory A contingency model of leadership proposing the effective leaders can motivate subordinates by 2quot Clearly identifying the outcomes workers are trying to obtain from their jobs Rewarding workers for highperformance and goal attainment with the outcomes they desire Clarifying the paths to the attainment of the goals remove obstacles to performance and express confidence in worker s ability Equot 539quot Motivating with PathGoal PathGoal identifies four leadership behaviors Directive Behaviors set goals assign tasks show how to do things Supportive Behaviors look out for the worker s best interest Participative Behavior give subordinates a say in matters that affect them AchievementOriented Behavior setting very challenging goals believing in worker s abilities The Leader Substitutes Model 0 Leadership Substitute a characteristic of a subordinate or characteristic of a situation or conteXt that acts in place of the in uence of a leader and makes leadership unnecessary Transactional Leadership 0 Transactions Leaders leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance 0 Exchange relationship 0 Leadership that 0 Makes subordinates aware of the importance of their jobs and performance to the organization by providing feedback to the worker 0 Makes subordinates aware of their own needs for personal growth and development 0 Motivates workers to work for the good of the organization not just themselves Be a Charismatic Leader 0 Charismatic Leader an enthusiastic selfconfident transformational leader who is able to clearly communicate his or her vision ofhow good things could be Intellectual Stimulation 0 Intellectual Stimulation behavior a leader engages in to make followers be aware of problems and view these problems in new ways consistent with the leader s vision Developmental Consideration 0 Developmental Consideration an enthusiastic selfconfident transformational leader who is able to clearly communicate his or her vision of how good things could be Gender and Leadership The number ofwomen managers is rising but is still relatively low in the top levels of management 0 Stereotypes suggest women are supportive and concerned with interpersonal relations 0 Similarly men are seen as taskforced Emotional Intelligence and Leadership 0 The Moods of Leaders 0 Affect their behavior and effectiveness as leaders 0 Affect the performance of their subordinates o Emotional Intelligence 0 Helps leaders develop a vision for their firm 0 Helps motivate subordinates to commit to the vision 0 Energizes subordinates to work to achieve the vision Teams in Organizations What is teamwork 0 Team a group of people with complementary skills who work together to accomplish shared common goals while holding themselves mutually accountable for performance results 0 Teamwork the process ofpeople working together to accomplish these goals Teamwork Pros Teams can help an organization gain a competitive advantage because they can Enhance its performance Increase its responsiveness to customers Increase innovation Increase employees motivation and satisfaction FWN Groups and Teams Contributions to Organizational Effectiveness Groups and teams can 9 Enhance performance Increase responsiveness to customers Increase innovation Increase motivation and satisfaction 9 Gain a competitive advantage Groups and Teams as Performance Enhancers Performance Enhancement making use of the synergy from employees in a group producing more or better output than employees working separately 0 Ability to bounce ideas off one another 0 Correct each other s errors 0 Bring more new ideas to bear on problems 0 Accomplish projects beyond the scope of individuals Group and Teams Responsiveness to Customers Difficult to achieve given the many constraints 0 Safety issues regulations costs Crossfunctional teams can provide the wide variety of skills needed to meet customer demands 0 Teams consist ofmembers of different departments Teams and Innovations Innovations the implementation of creative ideas for new products new technologies new services or even new organizational structures essential for gaining and maintaining a competitive advantage Individuals alone rarely possess the wide variety to skills needed for successful innovation Team members can uncover each other s aws and balance each other s strengths and weaknesses Groups and Teams as Motivators Team members are more motivated and satisfied than if they were working alone Team members can see the effect of their contribution to achieving team and organizational goals Teams provide needed social interaction and help employees cope with workrelated stressors Teamwork Cons Social Loafing the tendency of some people to avoid responsibility by quotfree riding in groups Groupthink the tendency to blindly agree with every suggested course of action 0 Con ict a progress in which one party perceives that its interests are being opposed or negatively affected by another party Two Types of Con icts o Con icts may occur between individuals between an individual and a group between groups within a group and between an organization and its environment 0 Negative Con ict affective con ict 0 Positive Con ict cognitive con ict Three ways to reduce Social Loafing 1 Making individual contributions to a group identifiable when possible 2 Emphasizing the valuable contributions ofindividual members 3 Keeping group size at an appropriate level The Types of Groups and Teams Formal Group a group that managers establish to achieve organization goals Informal Groups a group that managers or nonmanagerial employees form to help achieve their own goals or to meet their own needs TopManagement Team a group composed of the CEO the president and the heads of the most important departments Research and Development Team a team whose members have the expertise and experience to develop new products Command Groups a group composed of subordinates who report to the same supervisor also called a department or unit Task Forces a committee of managers or nonmanagerial employees from various departments or divisions who meet to solve a specific mutual problem also called an quotad hoc committee SelfManaged Work Team a group of employees who supervise their own activities and monitor the quality of the goods and services they provide SelfManaged Work Teams Keys to effective self managed teams Give the team enough responsibility an autonomy to be selfmanaging The team s task should be compleX enough to include many different steps Select members carefully for their diversity skills and enthusiasm Managers should guide and coach not supervise Determine training needs and be sure it is provided Virtual Teams 0 Virtual Team a team whose members rarely meet facetoface o Interact by using various forms of information technology 0 Email computer networks telephone faX and videoconferences Informal Groups 0 Friendship Groups an informal group composed of employees who enjoy one another s company and socialize with one another 0 Interest Groups an informal group of employees seeking to achieve a common goal related to their membership in an organization Group Dynamics 0 Group Dynamics the characteristics and processes that affect how a group or team functions 0 Group size affects how a group performs 0 Normally small groups 2 to 9 members interact better and tend to be more motivated 0 Larger groups can be used when more resources are needed and division of labor is possible 0 Division of Labor splitting the work to be performed into particular tasks and assigning tasks to individual workers Group Roles 0 Group Roles the set ofbehaviors and tasks that a group member is expected to perform because of his or her position in the group 0 Role Making taking the initiative to modify an assigned role by assuming additional responsibilities Stages of Group Development 0 Forming group members get to know each other and reach common goals 0 Storming group members disagree on direction and leadership Managers need to be sure the con icts stays focused o Norming close ties and consensus begin to develop between group members 0 Performing the group begins to do its real work 0 Adjourning only for task forces that are temporary These steps take time Group Norms shared guidelines or rules for behavior that most group members follow Managing Team Norms Act as a positive role model Reinforce the desired behaviors with rewards Control results by performance reviews and regular feedback Train and orient new members to adopt desired behaviors o Recruit and select new members who exhibit the desired behaviors 0 Hold regular meetings to discuss progress 0 Use team decision making methods to reach agreement Group Dynamics 0 Conformity and Deviance 0 Members conform to norms to obtain rewards imitate respected members and because they feel the behavior is right Conformity and deviance must be balanced for high performance from the group 0 Deviance allows for new ideas in the group 0 Group Cohesiveness 0 Group Cohesiveness the degree to which members are attracted to their group 0 Three Major Consequences 0 Level of participation 0 Level of conformity to group norms o Emphasis on group goal accomplishment Factors leading to Group Cohesiveness 0 Group Size smaller groups allow for high cohesiveness low cohesiveness groups with many members can benefit from splitting into two groups Effectively Managed Diversity diverse groups often come up with better solutions 0 Group Identity encouraging a group to adopt a unique identity and engage in competition with others can increase cohesiveness 0 Success cohesiveness increases with success finding ways for a group to have some small successes increases cohesiveness Managing Groups and Teams for High Performance 0 Motivating group members to achieve organizational goals 0 Members should benefit when the group performs well rewards can be monetary or in other forms such as special recognition 0 Individual compensation is a combination ofboth individual and group performance Communication Networks 0 Decentralized where members communicate directly with one another eg allchannels or star communication network 0 Centralized activities are coordinated and results pooled by a central point of control eg wheel or chain communication networks Building and Managing Human Resources Strategic Human Resource Management 0 Human Resource Management HRM 0 Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals Three tasks of HRM process I Attracting a quality workforce I Developing a quality workforce I Maintaining a quality workforce o HRM Components 0 Recruitment and selection Training and development Performance appraisal and feedback Pay and benefits Labor relations 0 O O O O The Legal Environment of HRM 0 Equal Employment Opportunity EEO o The equal right of all citizens to the opportunity to obtain employment regardless of their gender age race country of origin religion or disabilities 0 Equal Employment Opportunity Commission EEOC enforces employment laws Current Legal Issues Sexual harassment Comparable with Employees with disabilities Independent Contractors Workplace privacy Attracting a Quality Workplace Attract and hire new employees who have the abilities skills and experiences that will help an organization achieve its goals 0 Recruitment activities that engage in to attract a qualified pool ofjob applicants 0 Selection the process that managers use to chose individuals to hire from a pool ofjob applicants Human Resource Planning Human Resource Planning HRP 0 Activities that managers engage in to forecast their current and future needs for human resources 0 HRP must be done prior to recruitment and selection Demand Forecasts estimates of the number and qualifications of employees the firm will need Supply Forecasts estimates of the availability and qualifications of current workers and those in the labor market Outsourcing using outside suppliers and manufacturers to produce goods and services 0 Using contract workers rather than hiring them I Outsourcing is more exible for the firm I Outsourcing provides human capital at a lower cost 0 Problems with Outsourcing I Loss of control over output outsource contractors are not committed to the firm Unions are against outsourcing that has potential to eliminate member s jobs Job Analysis 0 Job Analysis studies exactly what is done in a job and why 0 Job Description detailing the tasks duties and responsibilities that make up a job 0 Job Specification identifying the knowledge skills and abilities needed to perform a job Recruiting Techniques Three steps in a recruitment process are 1 Advertisement ofa job vacancy 2 Preliminary contact with potential job candidates 3 Initial screening to create a pool of qualified applicants Recruitment 0 Internal Recruiting seeking to fill positions with current employees from within the firm 0 Lateral moves 0 External Recruiting seeking outside the firm for people who have not worked at the firm previously 0 Newspapers advertisements open houses oncampus recruiting employee referrals and through the internet Realistic Iob Previews 0 Traditional Recruitment focuses on selling the job and the organization to the applicant Realistic Iob Preview provide job applicants with all pertinent information about a job and an organization both positive and negative The Selection Process 0 Background Information 0 Education prior employment and college major 0 Interviews 0 Structured Interviews where managers ask each applicant the same jobrelated questions 0 Unstructured Interviews that resemble normal conversations Physical Ability Tests 0 Measures of dexterity strength and stamina for physically demanding jobs 0 Measures must be job related to avoid discrimination o PaperandPencil Tests 0 Ability tests assess if applicants have the right skills for the job 0 Personality tests seek to determine of applicants possess traits relevant to job performance 0 Performance Tests 0 Tests that measure an applicant s current ability to perform the job or part of the job such as requiring an applicant to take typing speed test 0 Assessment centers are facilities where managerial candidates are assessed on jobrelated activities over a period ofa few days 0 References 0 Obtaining relevant information can be difficult due to legal liability and privacy issues Reliability and Variability 0 Reliability the degree to which the tool measures the same thing each time it is used 0 Variability the degree to which the test measures what it is supposed to measure Developing a Quality Workforce o Orientation familiarizes new employee with jobs coworkers and organizational policies and services 0 Socialization a process of learning and adapting to the organizational culture Training and Development 0 Training teaching organizational members how to perform current jobs and helping them acquire the knowledge and skills they need to be effective performers 0 Development building the knowledge and skills of organizational members to enable them to take on new duties and challenges 0 Needs Assessment an assessment ofwhich employees need training or development and what type of skills or knowledge they need to acquire Types of Training 0 Classroom Instruction includes use ofvideos roleplaying and simulations 0 OntheIob Training training that takes place in the work setting as employees perform their job tasks examples are coaching mentoring modeling 0 Job Rotation switching tasks to learn multiple jobs Types of Management Development 0 Varied Work Experiences top managers have need to and must build expertise in many areas 0 Off the Job Training accomplished outside work setting 0 Management Development 0 Formal Education tuition reimbursement common for managers taking classes for MBA or jobrelated degrees Performance Appraisal and Feedback 0 Performance Appraisal the evaluation of employees job performance and contributions to their organization 0 Performance Feedback the process through which managers share performance appraisal information give subordinates and opportunity to re ect on their own performance and develop with subordinates plans for the future Who Appraises Information Supervisor 0 O o Subordinates O 0 Customers or Clients Types oprpraisal o Trait Appraisals measure the eXtent to which an employee possesses characteristicstraits considered important in the job dependability leadership initiative 0 Behavior Appraisals evaluate employees on specific actions that are important parts of the job Results Appraisals appraise performance by results or actual outcomesaccomplishments 0 Objective Appraisals based on facts and likely to be numerical number of cars sold 0 Subjective Appraisals based on manager s perceptions of traits behaviors or results Who Appraises Performance 0 Self self appraisals can supplement manager view 0 Peer Appraisal coworker provide appraisal common in team settings 0 Customers provide assessments of employee performance in terms of responsiveness and quality of service 0 360 Degree a performance appraisal by peers subordinates superiors and clients who are in a position to evaluate a manager s performance Effective Performance Feedback 0 Formal Appraisals an appraisal conducted at a set time during the year and based on performance dimensions that were specified in advance 0 Informal Appraisals an unscheduled appraisal of ongoing progress and areas for improvement Effective Feedback Tips 0 Be specific and focus on behaviors or outcomes that are correctable and within a worker s ability to improve 0 Approach performance appraisal as an exercise in problem solving and solution finding not criticizing 0 Express confidence in subordinate s ability to improve 0 Use both formal and informal feedback 0 Avoid personal criticisms and treat subordinates with respect 0 Agree to a timetable for performance improvements Maintaining a Quality Workforce 0 Compensation and Benefits 0 Rewarding high performing employees with raises bonuses and recognition 0 Increased pay provides additional incentive 0 Benefits such as health insurance reward membership in firm Pay and Benefits Pay Level the relative position of an organization s incentives in comparison with those of other firms in the same industry employing similar kinds of workers Pay Structure the arrangement ofjobs into categories based on their relative importance to the organization and the goal levels of skills and other characteristics Compensation 0 Base Compensation salary or hourly wage paid to an employee 0 Merit Pay System pay increase depending on performance 0 Bonuses and profit sharing plans 0 Bonus pay one time or lumpsum payments 0 Profit Sharing proportion ofprofits earned by organization is distributed to employees 0 Gain Sharing allows employees to share cost savings or productivity gains 0 Employee Stock Ownership Plans help employees purchase stock in their employing companies 0 Stock Options give the right to purchase shares at a fixed price in the future Benefits 0 Legally Required social security workers compensation 0 Voluntary health insurance retirement day care 0 Cafeteria Style benefit plans allow employees to choose the best miX of benefits for them can be hard to manage Lab or Relations 0 Labor Relations the activities managers engage in to ensure they have effective working relationships with the labor unions that represent their employees interests 0 Labor Contracts formal agreement between a union and an employer about the terms ofwork for union members 0 Fair Labor Standards Act 1938 prohibits child labor sets a minimum wage and maximum working hours 0 Equal Pay Act 1963 men and women doing equal work will get equal pay 0 Work Place Safety 1970 OSHA mandates procedures for safe working conditions Unions 0 Unions represent workers interests to management in organizations 0 The power that a manager has over an individual worker causes workers to join together in unions to try and prevent this o Collective Bargaining process ofnegotiation between labor and management to resolve con icts and disputes about issues such as working hours wages benefits working conditions and job security