Lecture 02 # Basics of Management Process Flashcards
One-Shot Revision
- Management by Objectives (MBO)
Definition:
MBO is a management approach that aligns organizational goals with individual performance through collaborative goal setting and regular performance reviews.
Key Features:
Clear Goal Setting
Participation from Managers and Employees
Cascading Objectives
Regular Reviews
Performance Appraisal
Development Opportunities
- Drucker’s Key Objectives of MBO
Market Standing: Organization’s position and reputation.
Innovation: Development of new products, services, and processes.
Productivity: Efficiency and resource optimization.
Physical & Financial Resources: Management of resources and investments.
Profitability: Balancing revenue with cost management.
Manager Performance: Developing managerial leadership.
Worker Performance: Promoting training and positive work environment.
Public Responsibility: Ethical practices and social impact.
- Steps in MBO’s Performance System
- Set Objectives: Collaborative, SMART goals.
- Organize: Allocate resources, responsibilities, and timelines.
- Motivate & Communicate: Managers motivate and clarify expectations.
- Review Progress: Periodic performance assessments.
- Appraise & Reward: Performance appraisals and rewards based on outcomes.
- Theories of Leadership
Definition:
Theories that explain leadership effectiveness and how leaders influence others.
Categories:
1. Trait Theories
2. Behavioral Theories
3. Style Theories
4. Contingency Theories
- Trait Theories
Definition:
Leaders possess inherent traits like intelligence, charisma, and confidence that set them apart.
- Behavioral Theories
Definition:
Leadership is based on specific behaviors, such as being task-oriented (goal-focused) or relationship-oriented (supportive of followers).
- Style Theories
Definition:
Leaders adopt different styles such as authoritarian, democratic, or laissez-faire, depending on their approach to leadership.
- Contingency Theories
Definition:
Leadership effectiveness depends on the situation, suggesting leaders adapt based on context and environment.
- Likert – Four Systems of Management
- Exploitative-Authoritative: Centralized authority, use of fear.
- Benevolent-Authoritative: Centralized authority, rewards for motivation.
- Consultative: Employee input but management makes final decisions.
- Participative Group: High employee involvement and collaboration.
- McGregor – Theory X and Theory Y
Theory X: Employees dislike work and need control.
Theory Y: Employees are self-motivated and seek responsibility.
- Kurt Lewin’s Leadership Styles
- Autocratic: Centralized decision-making.
- Democratic: Collaborative decision-making.
- Laissez-faire: Minimal leader involvement.
- Tannenbaum-Schmidt Leadership Continuum
Leadership ranges from autocratic to democratic based on:
1. Tells: Leader makes decisions.
2. Sells: Leader persuades employees.
3. Consults: Leader seeks input but decides.
4. Shares: Collaborative decision-making.
5. Delegative: Leader delegates decision-making.
- Adair – Action-Centered Leadership
Leadership focuses on balancing:
1. Task: Achieving goals and completing tasks.
2. Team: Building collaboration and cohesion.
3. Individual: Supporting personal growth and development.
- Blake and Mouton – Managerial Grid
Leadership styles based on concern for people (Y-axis) and production (X-axis):
Following are the five types of management according to Blake and Mouton
1. Impoverished Management (1,1): Low focus on tasks and people.
2. Country Club Management (1,9): High focus on people, low on tasks.
3. Authority-Compliance (9,1): High focus on tasks, low on people.
4. Middle-of-the-Road (5,5): Balanced focus on tasks and people.
5. Team Management (9,9): High focus on both tasks and people.
- Fiedler – Contingency Model
Effective leadership depends on:
1. Leadership Style: Task-oriented vs. relationship-oriented.
2. Situational Control: Control over the work environment based on leader-member relations, task structure, and position power.
