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Chapter Six
Management and Leadership in Today's Organizations
| Question | Answer |
|---|---|
| What is management? | The process of guiding the development, maintenance, and allocation of resources to attain organizational goals |
| What are the four functions of management? | Planning, Organizing, Leading, and Controlling |
| What is planning? | Deciding what needs to be done, when and how it will be done, and determining who should do it |
| What is organizing? | Coordinating and allocating a firm's resources in order to carry out its plans |
| What is leading? | The process of guiding and motivating others toward the achievement of organizational goals |
| What is controlling? | The process of assessing an organization's progress toward accomplishing its goals and correcting deviations from the plan |
| What is efficiency? | Using the least possible amount of resources to accomplish organizational goals |
| What is effectiveness? | The ability to produce the desired result |
| What are the four types of planning? | Strategic, Tactical, Operational, and Contingency |
| What is strategic planning? | Long-range planning (1-5 years) that establishes an organization's mission and long-term goals |
| Who is responsible for strategic planning? | Top management |
| What is tactical planning? | Planning that implements strategic plans with specific objectives over a period of les than one year |
| Who is responsible for tactical planning? | Middle management |
| What is operational planning? | Planning that creates specific standards, methods, policies, and procedures for daily operations |
| Who is responsible for operational planning? | Supervisory (first-line) management |
| What is contingency planning? | Planning alternative courses of action for emergencies or unexpected situations |
| What is a mission statement? | A document that states an organization's purpose and reason for existing |
| What are the three parts of a mission statement? | Purpose, Values, and Action |
| What are the three levels of management? | Top management, Middle management, and Supervisory (first-line) management |
| What is the role of supervisory managers? | To supervise daily operations and motivate employees who produce goods and services |
| What is the managerial pyramid? | A Hierarchy that illustrates the three levels of management |
| What is Leadership? | The process of guiding and motivating others toward achieving organizational goals |
| What must effective leaders be able to do? | Influence the behavior of others |
| What are the five sources of Leadership Power? | Legitimate Power, Reward Power, Coercive Power, Expert Power, and Referent Power |
| What is Legitimate Power? | Power that comes from a person's position in an organization |
| What is Reward Power? | Power that comes from the ability to reward others |
| What is Coercive Power? | Power based on the ability to punish or threaten negative consequences |
| What is Expert Power? | Power based on knowledge, expertise, or specialized skills |
| What is Referent Power? | Power based on charisma, admiration, and respect from others |
| What is Leadership style? | A leader's pattern of behavior when influencing others |
| What is Autocratic Leadership? | A leadership style where the manager makes decisions with very little employee input |
| What is a Participative Leadership? | A leadership style where employees share in decision-making |
| What are the three types of Participative Leadership? | Democratic, Consensual, and Consultative |
| What is democratic leadership? | Employees participate in discussions and decision-making |
| What is Consensual Leadership? | A leadership style where everyone involved must agree on the final decision |
| What is free-rein (laissez-faire) leadership? | A leadership style that gives employees almost complete authority to make decisions |
| What is empowerment? | Giving employees more authority and responsibility to make decisions |
| What is Corporate Culture? | The attitudes, values, and standards of behavior that distinguish one organization from another |
| What is controlling? | The process of assessing an organization's progress toward accomplishing its goals and correcting deviations from the plan |
| What are performance standards? | The levels of performance an organization wants to achieve |
| What are the five steps in the control process? | Set performance standards, Measure actual performance, Compare performance with standards, |
| Why is feedback important in the control process? | It helps managers identify problems early and improve future performance |
| Why is controlling an important management function? | It helps ensure organizational goals are achieved by evaluating planning, organizing, and leading |
| What is a managerial role? | A set of behaviors and responsibilities expected of a manager |
| What are the three categories of managerial roles? | Informational, Interpersonal, Decisional |
| What are the informational managerial roles? | Monitor, Disseminator, Spokesperson |
| What are the interpersonal managerial roles? | Figurehead, Leader, Liaison |
| What are the Decisional managerial roles? | Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator |
| What is a programmed decision? | A routine decision made repeatedly for common situations |
| What is a nonprogrammed decision? | A unique decision made for unusual or unexpected situations |
| What are the five steps in the decision-making process? | Identify the problem or opportunity, Gather information, Evaluate Alternatives, Implement the chosen solution, and Evaluate the results |
| What is a managerial skill? | The ability to perform management tasks effectively |
| What are the three categories of managerial skills? | Technical skills, Human relations skills, and Conceptual skills |
| What are technical skills? | Specialized knowledge and the ability to apply it effectively with and motivate other people |
| What are conceptual skills? | The ability to understand the organization as a whole and how its different parts work together |
| What are the four major trends in management today? | Crisis management, Outside directors, Information technology, and Global management skills |
| Why is crisis management important? | Managers must prepare contingency plans for unexpected emergencies and disasters |
| Why is information technology important for managers? | It improves decision-making by providing accurate data and business analytics |
| Why are global management skills increasingly important? | Managers must effectively lead and communicate with people from different cultures around the world |
| What are the four functions of management? | Planning, Organizing, Leading, and Controlling |
| What are the four types of planning? | Strategic, Tactical, Operational, and Contingency |
| What are the three levels of management? | Top management, Middle management, and Supervisory (first-line) management |
| What are the five sources of Leadership Power? | Legitimate power, Reward power, Coercive Power, Expert power, and Referent Power |
| What are the three main leadership styles? | Autocratic. Participative, Free-rein (Laissez-faire) |
| What are the three types of Participative leadership? | Democratic, Consensual, and Consultative |
| What are the three categories of managerial skills? | Informational, Interpersonal, and Decisional |
| What are the three categories of managerial roles? | Informational, Interpersonal, and Decisional |
| What is the difference between efficiency and effectiveness? | Efficiency means using the fewest possible resources to achieve a goal, while effectiveness means accomplishing the desired goal |
| What are the five steps of the control process? | Set performance standards, Measure actual performance, Compare results with standards, Take corrective action, and Use feedback to improve future performance |
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