Module 7

Question 1

What is management?

Answer 1

Balancing external and internal influences, the coordination of activities and op people to achieve the organization’s goals.

Question 2

Which factors give a manager legitimacy to manage?

Answer 2

1. Manager may be an owner (right through property ownership)
2. Managers in public companies have to by law
3. Various types of power

Question 3

Name the five types of power that can give managers legitimacy to manage

Answer 3

1. Expertise power
2. Position power
3. Political power
4. Reward power
5. Charisma power

Question 4

Name the six models of management

Answer 4

1. Rational goal models
2. Internal process models
3. Human relations model
4. Motivation models
5. Open systems model
6. Responsible management models

Question 5

What is a rational goals model?

Answer 5

These models assume that management is a scientific process that aims to move towards a stated goal. Takes away from the Taylor’s scientific model

Question 6

What are internal process models?

Answer 6

These are extensions of the scientific models. The two prominent internal process models are:
1. Weber’s bureaucracy
2. Fayol and administrative management

Question 7

What is fayol’s adminstrative management model?

Answer 7

This management model beleives that management should stick to the core management tasks of planning, organizing, commanding, coordination and controlling.

Question 8

Name the two human relations models of management

Answer 8

1. Follett’s Human relations model
2. Mayo’s Human relations model

Question 9

What is Follett’s human relations model of management?

Answer 9

Follett’s human relations model was critical about the division of labour because it broke up teams, which didn’t put the group over the individual.

Question 10

What is Mayo’s human relations model of management?

Answer 10

Mayo participated in the hawthorne studies and concluded that social situations and relations influenced performance to a significant degree.

Question 11

What are motivation models of management?

Answer 11

These are models of management that stress the importance of the individual (Maslow’s pyramid of needs). Motivation lies in goal seeking behaviour and personal achievement.

Question 12

What are open systems models?

Answer 12

These models believe that management is only understood in the context it operates in. It is a product of interaction with external environment and organizational environment.

Question 13

What are responsible management models?

Answer 13

This model beliefs management should act responsibly and reduce uncertainty:
1. build up situational leadership because there is no formula to respond to change
2. be flexible by developing communication skills and handling uncertainty.

Question 14

What is leadership?

Answer 14

Leadership is influencing individual’s performance to get them to perform at higher levels. This is widely considered as the defining element in success.

Question 15

What are the differences between leadership and management?

Answer 15

1. Performance focus vs authority focus
2. Internal performance vs balancing resources
3. bringing about change vs solving organizational problems
4. vision and innovation vs operation of current procedures
5. inspiring people vs setting tasks and achieving goals
6. Motivation and empowerment vs control
7. future vs present

Question 16

What are some of the most important leadership theories?

Answer 16

1. Leadership based on skills and traits
2. Leadership based on behaviour and style
3. Leadership based on situational/contingency

Question 17

What is leadership based on traits and skills?

Answer 17

Leaders emerge through their skills. The core skills are technical, conceptual and people skills. Skills can be learned and trained, traits can not be trained.

Question 18

What is leadership based on behaviour and style?

Answer 18

what do leaders do and how they interact. This theory is based on the Ohio studies and Michigan studies.

Question 19

What is the Ohio studies?

Answer 19

A leadership study that concluded there are two leadership styles:
1. Considerate; employee well-being, build respect and rapport
2. Initiating structure: get job done, goal attained.

This study believes it is best to be high on both.

Question 20

What does the managerial grid system believe?

Answer 20

This matrix believes that a leader’s success depends on his people and production concern. Leaders are most effective when both those concerns are high.

Question 21

What are the factors of the MIchigan studies?

Answer 21

1. Employee/relationship orientated
2. Task orientated

Question 22

What are the factors in Fiedler’s contingency theory?

Answer 22

1. Leader’s preferred style
2. Leader-number relations
3. Task structure (routine/complex)
4. Leader position power

Question 23

What is the path-goal model?

Answer 23

A model believing that leaders should assiste employees to learn appropriate types of behaviour. Different types:
1. Directive (specific guidance and targets)
2. Supportive (concerns and friendliness)
3. achievement oriented (provide challenging goals)
4. participate (ask group for views and ideas)

This model beliefs that the appropriate style is context dependent.

Question 24

What is transactional and transformational leadership?

Answer 24

Transactional leadership is often regarded as management because it concerns itself with what is expected of employees against what rewards.

Transformational leadership is best for uncertainty and change. Leader motivates his followers to perform better.

Question 25

What is charismatic leadership?

Answer 25

Inspiring others to follow. Good in a high-risk, unconventional views and methods.
This emerges during social crisis to solve it and gain confidence

Question 26

what is ethical leadership?

Answer 26

Moral dimension of transformational leadership. This focuses on character and conduct of leader.

Question 27

What is shared/distributed leadership?

Answer 27

This is required in large organizations, where on person can’t have all the knowledge and individual leadership slows down decision making.

Question 28

Who are the key players in a strategic context?

Answer 28

1. Owner
2. Executives
3. Founder
4. Entrepreneur
5. Manager

Question 29

Who are founders?

Answer 29

Founders are the people doing the formational work to create the organization and have major influence on the organization, people within in and the organizational culture.

Question 30

What is imprinting theory?

Answer 30

1. In some periods, organizations are sensitive to internal and external influences (founder and founding characteristics)
2. Organization develops features characterizing people/environment (people)
3. Organizational featurs persists even during a changing context.

Question 31

What is the distrinction between founders and entrepreneurs?

Answer 31

Entrepreneurs destroy something old while building something new. Implications are industry- or economy wide.
Founders don’t

Question 32

What are common agency problems?

Answer 32

1. Moral hazard
2. Adverse selection

Question 32

What is creative destruction?

Answer 32

This is a process in which constantly revolutionizing economic structure fom within, destroying old and creating new one.

Question 33

What are the functions of an executive?

Answer 33

1. Communication (both informal and formal)
2. Define purpose of organization
3. Securing essential services from individuals

Question 33

What is the agency problem?

Answer 33

Problem in which people owning shares (principal) have different interests than controllers (agent). Problem arises when agent is supposed to act in best interest of principal.

Question 34

Why do organizations need corporate governance

Answer 34

Corporate governance is the structure of rules and processes to direct/manage a company.

We need corporate governance to align interests of agents and principals.

Question 35

What are zones of indifference?

Answer 35

degree to which orders are accepted without questioning.

Question 36

Name two types of authority?

Answer 36

1. Authority of position: through place in hierarchy
2. Authority of leadership: superior ability

Question 37

What are the elements ofthe theory of growth of firm?

Answer 37

1. Firm collection of physical and human resources
2. Reying effective managers key to growth of firm
3. Managerial capability: ability to gain managerial know-how
4. excess managerial capacity in rapid growth situations

Question 38

What are the roles of middle managers?

Answer 38

1. Entrepreneur (close to operations and clients)
2. Communicators (channel and direct information)
3. Therapist (address employee wellbeing)
4. Tightrope artist (balancing change and continuity)

Question 39

What is the upper echolon theory?

Answer 39

organizational outcomes and actions in the past can be predicted by the background characteristics of top management.