Leadership Flashcards
The art of motivating a group of people to act towards achieving a common goal.
Leadership
The use of authority in decision-making
Leadership
The act of getting others to follow
Leadership
A personal characteristic; an ability to achieve effective performance in others
Leadership
True or False: Often can entrepreneurs make a company succeed by themselves.
False
True or False: Entrepreneurs need to be able to identify staffing needs, expertly fill them, and lead the team to success.
True
What are the five entrepreneur leadership qualities?
- Seeking self-improvement
- Possessing technical skills
- Accepting responsibility for actions
- Making decisions
- Role Model
Two importance of leadership in modern business:
- Changing organizational structures
- Rapid environmental change
Changing organizational structures:
- Flatter +greater delegation
- Teamwork +focus on quality assurance
- coaching, support, and empowerment
Change is becoming a constant feature of business life
Rapid environmental change
Soft skills of leadership and management are increasingly important
Rapid environmental change
True or False: Strategic leaders are the people who influence or control the corporate strategy of a business.
True, importance of leadership in modern business
True or False: Strategic leadership often personally identified with the strategy
True
True or False: Strategic leadership occurs both in small firms (e.g. the founder) and large corporates.
True
Strategic leadership: Where leaders take direct control
Leadership as command
Strategic leadership: Where leaders set the vision and core beliefs
Leadership as vision
Strategic leadership: Where the leader is the embodiment of the strategy, but not involved day-to-day
Leadership as symbolic
Strategic leadership: Where the leader weighs up the options and decides
Leadership as decision-making
Inspire people; build relationships; take risks; have followers
Leaders/ Leadership
Enact the plan; use their authority; manage risks; have subordinates
Managers/ Management
The way that the functions of leadership are carried out
Leadership style
The way that a leader behaves
Leadership style
Type of Leadership style: Focus of power is with the manager
Authoritarian
Type of Leadership style: Communication is top-down and one-way
Authoritarian
Type of Leadership style: Formal systems of command and control
Authoritarian
Type of Leadership style: Use of rewards and penalties
Authoritarian
Type of Leadership style: Very little delegation
Authoritarian
Type of Leadership style: Leader decides what is best for employees
Paternalistic
Type of Leadership style: Addressing employee needs
Paternalistic
Type of Leadership style: Similar to a parent/child relationship
Paternalistic
Type of Leadership style: Still little delegation
Paternalistic
Type of Leadership style: A softer form of authoritarian leadership
Paternalistic
Type of Leadership style: Focus of power is more with the group as a whole
Democratic
Type of Leadership style: Leadership functions are shared within the group
Democratic
Type of Leadership style: Employees have greater involvement in decision-making
Democratic
Type of Leadership style: Emphasis on delegation and consultation
Democratic
Type of Leadership style: A trade-off between speed of decision-making and better motivation and morale
Democratic
Type of Leadership style: Leader has little input into day-to-day decision-making
Laissez-faire
Type of Leadership style: Conscious decision to delegate power
Laissez-faire
Type of Leadership style: Managers/employees have the freedom to do what they think is best
Laissez-faire
Type of Leadership style: Effective when staff are ready and willing to take on responsibility
Laissez-faire
True or False: Right leader for the right situation
True
True or False: Authoritarian is the best leadership style
False, many alternative forms and styles
True or False: Autocratic makes more sense when business is in trouble (e.g. rapid turnaround)
True
True or False: Autocratic would be appropriate where performance is highly dependent on effective team-working and decentralized operation
False, inappropriate
What are the five essential qualities of a leader?
- Courage
- Confidence
- Concentration
- Passion
- Values
True or False: Successful management of change requires positive action from top management and a leadership style that gains a commitment to change.
True
When a party whose actions are unobserved can affect the probability or magnitude of a payment associated with an event
Moral Hazard
The possibility that an individual’s behavior may change because she has insurance
Moral Hazard
When workers perform below their capabilities when employers cannot monitor their behavior
Job Shirking
True or False: Moral Hazard is a problem only for insurance companies
False
True or False: Moral Hazard also alters the ability of markets to allocate resources efficiently.
True
True or False: Moral Hazard is a problem because a person takes a greater risk in the knowledge that a third party pays for the consequences
True
Problem arising when agents (e.g., a firm’s managers) pursue their own goal rather than the goals of principals (e.g., the firm’s owners)
Principal-agent problem
True or False: An agency relationship exists whenever there is an arrangement in which one person’s welfare depends on what another person does.
True
An individual employed by a principal to achieve the principal’s objective
Agent
True or False: A principal-agent problem arises when agents pursue their own goals rather than the goals of the principal
True
An individual who employs one or more agents to achieve an objective
Principal
Explanation for the presence of unemployment and wage discrimination which recognizes that labor productivity may be affected by the wage rate.
Efficiency wage theory
Principle that workers still have an incentive to shirk if a firm pays them a market-clearing wage because fired workers can be hired somewhere else for the same wage.
Shirking Model
Wage that a firm will pay an employee as an incentive not to shirk
Efficiency wage
True or False: Once hired, workers can either work productively or slack off (shirk). But because information about their performance is limited, workers may not get fired for shirking.
True
