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Leadership &

Management Skills
Midterm Exam Slides
7 Traits Theories of 20s & 30s

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17–2
7 Traits Theories

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17–3
Early Leadership Theories
• Trait Theories (1920s-30s)
• Research focused on identifying personal characteristics that
differentiated leaders from nonleaders was unsuccessful.
• Later research on the leadership process identified seven traits

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associated with successful leadership:
• Drive, the desire to lead, honesty and integrity, self-confidence,
intelligence, job-relevant knowledge, and extraversion.

17–4
Michigan, Ohio, Iowa Studies

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17–5
Early Leadership Theories
• Behavioral Theories
• University of Iowa Studies (Kurt Lewin)
• Identified three leadership styles:
• Autocratic style: centralized authority, low participation
• Democratic style: involvement, high participation, feedback
• Laissez faire style: hands-off management

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• Research findings: mixed results
• No specific style was consistently better for producing better performance
• Employees were more satisfied under a democratic leader than an autocratic
leader.

17–6
Early Leadership Theories
(cont’d)
• Behavioral Theories (cont’d)
• Ohio State Studies
• Identified two dimensions of leader behavior
• Initiating structure: the role of the leader in defining his or her role and
the roles of group members

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• Consideration: the leader’s mutual trust and respect for group members’
ideas and feelings.
• Research findings: mixed results
• High-high leaders generally, but not always, achieved high group task
performance and satisfaction.
• Evidence indicated that situational factors appeared to strongly influence
leadership effectiveness.

17–7
Early Leadership Theories
(cont’d)
• Behavioral Theories (cont’d)
• University of Michigan Studies
• Identified two dimensions of leader behavior
• Employee oriented: emphasizing personal relationships

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• Production oriented: emphasizing task accomplishment
• Research findings:
• Leaders who are employee oriented are strongly associated with high
group productivity and high job satisfaction.

17–8
Transactional,
Transformational, Charismatic

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& Visionary Leadership

17–9
Cutting-Edge Approaches to
Leadership
• Transactional Leadership
• Leaders who guide or motivate their followers in the direction of
established goals by clarifying role and task requirements.
• Transformational Leadership
• Leaders who inspire followers to transcend their own self-

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interests for the good of the organization by clarifying role and
task requirements.
• Leaders who also are capable of having a profound and
extraordinary effect on their followers.

17–
10
Cutting Edge Approaches to
Leadership (cont’d)
• Charismatic Leadership
• An enthusiastic, self-confident leader whose personality and actions
influence people to behave in certain ways.
• Characteristics of charismatic leaders:

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• Have a vision.
• Are able to articulate the vision.
• Are willing to take risks to achieve the vision.
• Are sensitive to the environment and follower needs.
• Exhibit behaviors that are out of the ordinary.

17–
11
Cutting Edge Approaches to
Leadership (cont’d)
• Visionary Leadership
• A leader who creates and articulates a realistic, credible, and
attractive vision of the future that improves upon the present
situation.

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• Visionary leaders have the ability to:
• Explain the vision to others.
• Express the vision not just verbally but through behavior.
• Extend or apply the vision to different leadership contexts.

17–
12
Leadership issues of 21st Century

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17–
Leadership Issues in the 21 st

Century
• Managing Power • Expert power
• Legitimate power • The influence a leader can
• The power a leader has as a result of his or her position.
exert as a result of his or her
• Coercive power expertise, skills, or
• The power a leader has to punish or control. knowledge.

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• Reward power • Referent power
• The power of a leader that
• The power to give positive benefits or rewards.
arise because of a person’s
desirable resources or
admired personal traits.

17–
14
Century
Leadership Issues in the 21
st

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17–
Century
Leadership Issues in the 21
st

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17–
Century
Leadership Issues in the 21
st

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17–
Functions of Management

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17–
Four Functions of Management

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17–
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17–
Four Functions of Management- Additional slides

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17–
Quality Management

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17–
• Quality Management
• A philosophy of management driven by continual improvement in
the quality of work processes and responding to customer needs
and expectations
• Inspired by the total quality management (TQM) ideas of Deming

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and Juran
• Quality is not directly related to cost

2–23
What is Management Quality?

Intense focus on the customer


Concern for continual improvement
Process-focused

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Improvement in the quality of everything
Accurate measurement
Empowerment of employees

2–24
Exhibit 2.11
What is Management Quality?

Exhibit 2.11

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2–25
Focusing on 6 issues of Quality Management?

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2–26
Exhibit 2.11
Organizational Culture

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17–
The Organization’s Culture
• Organizational Culture
• A system of shared meanings and common beliefs held by
organizational members that determines, in a large degree, how
they act towards each other.
• “The way we do things around here.”

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• Values, symbols, rituals, myths, and practices
• Implications:
• Culture is a perception.
• Culture is shared.
• Culture is descriptive.

3–28
Dimensions of Organizational Culture

Exhibit 3.2

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3–29
Responsive Culture
Innovative & Customer

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17–
Organization Culture Issues
• Creating an Innovative
Ethical Culture
Culture
• Challenge
High in riskand
tolerance
involvement
• Low to moderate aggressiveness
Freedom
• Focusand
Trust on means as well as outcomes
openness

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• Playfulness/humor
• Conflict resolution
• Debates
• Risk-taking

3–31
Organization Culture Issues
(cont’d)
• Creating a Customer-Responsive Culture
• Hiring the right type of employees (ones with a strong interest in
serving customers)
• Having few rigid rules, procedures, and regulations
• Using widespread empowerment of employees

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• Having good listening skills in relating to customers’ messages
• Providing role clarity to employees to reduce ambiguity and
conflict and increase job satisfaction
• Having conscientious, caring employees willing to take initiative

3–32
8 Step Process of Decision Making

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17–
The Decision-
Making Process

Exhibit 6.1

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6–34
Step 1: Identifying the Problem
• Problem
• A discrepancy between an existing and desired state of affairs.
• Characteristics of Problems
• A problem becomes a problem when a manager becomes aware

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of it.
• There is pressure to solve the problem.
• The manager must have the authority, information, or resources
needed to solve the problem.

6–35
Step 2: Identifying Decision Criteria
• Decision criteria are factors that are important (relevant) to
resolving the problem.
• Costs that will be incurred (investments required)
• Risks likely to be encountered (chance of failure)
• Outcomes that are desired (growth of the firm)

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Step 3: Allocating Weights to the Criteria
• Decision criteria are not of equal importance:
 Assigning a weight to each item places the items in
the correct priority order of their importance in the
decision making process. 6–36
Criteria and Weights for Franchise Decision

Criterion Weight
Start-up costs 10
Franchisor support 8

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Financial qualifications 6
Open geographical locations 4
Franchisor history 3

6–37
Exhibit 6.2
Step 4: Developing Alternatives
• Identifying viable alternatives
• Alternatives are listed (without evaluation) that can resolve the
problem.

Step 5: Analyzing Alternatives

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• Appraising each alternative’s strengths and
weaknesses
 An alternative’s appraisal is based on its ability to
resolve the issues identified in steps 2 and 3.
6–38
Step 6: Selecting an Alternative
• Choosing the best alternative
• The alternative with the highest total weight is chosen.

Step 7: Implementing the Decision

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• Putting the chosen alternative into action.
 Conveying the decision to and gaining commitment
from those who will carry out the decision.

6–39
Decision Making Styles

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17–
Decision-Making Styles
• Dimensions of Decision-Making Styles
• Ways of thinking
• Rational, orderly, and consistent
• Intuitive, creative, and unique

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• Tolerance for ambiguity
• Low tolerance: require consistency and order
• High tolerance: multiple thoughts simultaneously

6–41
Decision-Making Styles
(cont’d)
• Types of Decision Makers
• Directive
• Use minimal information and consider few alternatives.
• Analytic
• Make careful decisions in unique situations.

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• Conceptual
• Maintain a broad outlook and consider many alternatives in making
long-term decisions.
• Behavioral
• Avoid conflict by working well with others and being receptive to
suggestions.

6–42
Decision-Making Styles

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6–43
Source: S.P. Robbins and D.A. DeCenzo, Supervision Today.
2nd ed. (Upper Saddle River, NJ: Prentice Hall, 1998). p. 166. Exhibit 6.12
Structure
Definition of Organizational

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17–
Defining Organizational
Structure
• Organizational Structure
• The formal arrangement of jobs within an organization.
• Organizational Design
• A process involving decisions about six key elements:
• Work specialization

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• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization

10–
45
Specialization,
Departmentalization, Chain of

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Command

17–
46
Organizational Structure
• Work Specialization
• The degree to which tasks in the organization are divided into
separate jobs with each step completed by a different person.
• Overspecialization can result in human diseconomies from boredom,
fatigue, stress, poor quality, increased absenteeism, and higher

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turnover.

10–
47
Departmentalization by Type
• Process
Functional
• Grouping jobs on
by functions
the basis of
performed
product or customer flow
• Customer
Product
• Grouping jobs by type
product
of customer
line and needs

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• Geographic
• Grouping jobs on the basis of territory or geography

10–
48
Functional
Departmentalization

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• Advantages
• Efficiencies from putting together similar specialties and
people with common skills, knowledge, and orientations
• Coordination within functional area
• In-depth specialization
• Disadvantages
• Poor communication across functional areas
• Limited view of organizational goals 10–
49
Figure 10.2a
Geographical
Departmentalization

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• Advantages
• More effective and efficient handling of specific
regional issues that arise
• Serve needs of unique geographic markets better
• Disadvantages
• Duplication of functions
• Can feel isolated from other organizational areas
10–
50
Figure 10.2b
Product Departmentalization

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+ Allows specialization in particular products and services
+ Managers can become experts in their industry
+ Closer to customers
– Duplication of functions
– Limited view of organizational goals 10–
51
Source: Bombardier Annual Report. Figure 10.2c
Process Departmentalization

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+ More efficient flow of work activities
– Can only be used with certain types of products

10–
52
Figure 10.2d
Customer Departmentalization

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+ Customers’ needs and problems can be met by specialists
- Duplication of functions
- Limited view of organizational goals

10–
53
Figure 10.2d
Organization Structure (cont’d)
• Chain of Command
• The continuous line of authority that extends from upper levels
of an organization to the lowest levels of the organization and
clarifies who reports to who.

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10–
54
Organization Structure (cont’d)
• Authority
• The rights inherent in a managerial position to tell people what to
do and to expect them to do it.
• Responsibility
• The obligation or expectation to perform.

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• Unity of Command
• The concept that a person should have one boss and should
report only to that person.

10–
55
Organization Structure (cont’d)
• Span of Control
• The number of employees who can be effectively and efficiently
supervised by a manager.
• Width of span is affected by:
• Skills and abilities of the manager

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• Employee characteristics
• Characteristics of the work being done
• Similarity of tasks
• Complexity of tasks
• Physical proximity of subordinates
• Standardization of tasks

10–
56
Mechanistic vs Organic Structure

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10–
Mechanistic vs Organic Structure

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10–
Mechanistic vs Organic Structure

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10–
Managing Human Resources
• Human Resource (HR) Planning
• The process by which managers ensure that they have the right
number and kinds of people in the right places, and at the right
times, who are capable of effectively and efficiently performing
their tasks.

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• Helps avoid sudden talent shortages and surpluses.
• Steps in HR planning:
• Assessing current human resources
• Assessing future needs for human resources
• Developing a program to meet those future needs

12–
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