Exam (Business Leadership) Flashcards
What are the basic functions of management?
- Planning
- Setting goals and deciding how to accomplish them - Organizing
- Arranging tasks, resources and work of individuals and groups to meet goals - Leading
- Inspiring and influencing others to work to meet goals - Controlling
- Measuring results, comparing results to goals and taking action as needed
What did Maslow theorize about?
Hierarchy of needs
Low-order needs (affect behavior and attitudes) →
1. Physiological, safety, and social needs
- Desires for physical and social well being
Higher-order needs →
1. Esteem and self-actualization need
- Desire for psychological growth and development
Applying Maslow to business:
- Physiological need -> rest and refreshment breaks, comfort on job, reasonable work hours
- Safety needs -> safe working conditions, job security, compensation and benefits
- social needs -> friendly coworkers, interaction with customers, pleasant supervisior
- Esteems needs -> responsibility of an important job, promotion to higher status job, praise and recognition from boss
- Self-actualization needs -> creative and challenging work, participation in decision making, job flexibility and autonomy
What are the types of leadership styles?
- Autocratic
- Democratic
- Lassiez Faire
What is an autocratic leader?
- tells others what to do
- limits discussion of new ideas
- does not foster a sense of teamwork
When is it effective:
- time is limited
- group members lack skill
- group does not know each other
When is it ineffective:
- developing teamwork
- members do have skills and knowledge
What is the laissez faire leadership style?
- give little to no direction
- offer opinion when asked
- does not seem to take charge
effective -
- when members have high degree of skill and motivation
- sense of team exists
- routine is established
ineffective -
- low sense of teamwork
- little skill or knowledge present
- group is looking for direction
What are democratic leaders?
- involves group members in planning
- asks before they tell
- promotes teamwork
effective -
- time is available
- group is motivated
- members want to contribute
ineffective -
- group is unmotivated
- high degree of conflict
Types of leaders:
- Charismatic leaders
- Develops special relationships with followers and inspire others in extraordinary ways - Transactional leaders
- Someone who is methodical as a leader and keeps others focused on progressing toward goal accomplishment
- Goal is to get things done - Transformational leaders
- Someone who is truly inspirational as a leader and who arouses others to seek extraordinary performance accomplishments
- Characteristics of transformational leaders”
a) Vision
b) Charisma
c) Symbolism
d) Empowerment
e) Intellectual stimulation
f) Integrity
Types of power:
Position and personal power
What is position power?
- Based on a manger’s official status in the organization’s hierarchy of authority
- type of position power
1. Reward - offer someone a positive outcome to influence behaviour (like a raise)
2. Coercive - punish people to influence behaviour
3. Legitimate - using status to control subordinates
What is personal power?
- using personal qualities that bring someone to leadership position
1. expert - using one’s knowledge, understanding and skills to influence behaviour
2. referent - influence behaviour as people admire you and want to identify positively
What is McGregor’s theory?
Theory X and Theory Y represent two extreme belief sets that different managers have about their workers (based on assumptions)
Theory X (autocratic)
- Assume employees generally dislike work, lack ambition are irresponsible, resistant to change, prefer to be led rather than to lead
- Negative views of workers
Theory Y (democratic)
- Believe employees are willing to work, are capable of self-control, are willing to work, are capable of self control, are willing to accept responsibility, are imaginative and creative, and are capable of self-direction
- Positive view of workers
Issues of theory x and theory y?
- Managers who hold either of assumptions create self-fulfilling prophecies
- Through behavior, create situations where employees act in ways that confirm the original expectation
- “You already think I’m bad (or good), so I may as well act that way!”
What is the BCG matrix?
- 2 factor comparison; market growth and market share
- Results in 4 possible business conditions with watch being associated with a strategic implication
- Question Mark (high, low)
- new product
- absorb a lot of cash if market share is unchanged
- has great potential to be star or cash cash - Star (high, high)
- lots of investment to maintain market share
- large amounts of spending but also gaining
- should try to hold market share or be a cash cow - Cash cow (low, high)
- foundation of company (stars of yesterday) -> use money from here to invest in something else
- generate more cash, extract profits by investing as little cash as possible - Dog (low, low)
- dogs are cash traps
high cost and low quality
business is situated at a declining stage
What is PEST anaylsis and it’s aim?
Analysis of the political, economic, social and technological factors in the external environment of an organization, which can affect its activities and performance
Aim:
- Find out external factors affecting the organization
- Identify the external factors that may change in the future
- Assess the potential of a new market
