BOH - Exam Review PDF

1. Define the following Intellectual Capital: The collective brainpower or shared knowledge of a workforce Knowledge Worker: Someone whose mind is a critical asset to employers Ethics: Set moral standards of what is “good” and “right” in one's behaviour Ethical dilemma: A situation that offers p...

1. Define the following Intellectual Capital: The collective brainpower or shared knowledge of a workforce Knowledge Worker: Someone whose mind is a critical asset to employers Ethics: Set moral standards of what is “good” and “right” in one's behaviour Ethical dilemma: A situation that offers potential benefit or gain and is also unethical Organization: A collection of people working together to achieve a common purpose Productivity: The quality and quantity of work performance, with resource utilization considered Performance Efficiency: An input measure of resource cost associated with goal accomplishment Performance Effective: An output measure of task or goal accomplishment Manager: A person who supports, activates, and is responsible for the work of others Accountability: The requirement to show performance results to a supervisor Systematic thinking: Approaches problems in a rational and analytical fashion Intuitive thinking: Approaches problems in a flexible and spontaneous fashion Objectives: Specific results that you intend to achieve Forecasting: The process of predicting what will happen in the future Contingency planning: Identifies alternative courses of action to take when things go wrong Benchmarking: Uses external and internal comparisons to plan for future improvements Formal structures: The official structure of the organization Informal structures: The set of unofficial relationships among an organization’s members Progressive discipline: Ties reprimands to the severity and frequency of misbehaviour Feedforward controls: Ensures that directions and resources are right before the work begins Feedback controls: The process of telling someone else how you feel about something that person did or said Concurrent controls: Focuses on what happens during the work process Leadership: The process of inspiring others to work hard to accomplish important tasks Power: The ability to get someone else to do something you want done or to make things happen the way you want Empowerment: Allows others to gain and use decision-making power and exercise discretion in their work Motivation: Account for the level, direction, and persistence of effort expended at work Needs: An unfilled psychological or physiological desire or deficiency that a person feels compelled to satisfy Extrinsic rewards: Is administered by someone else Intrinsic rewards: Occurs naturally during job performance. It comes from within the person Team: A collection of people who regularly interact to pursue common goals Teamwork: The process of people actively working together to accomplish common goals Synergy: The creation of a whole greater than the sum of its individual parts Social Loafing: The tendency of some people to avoid responsibility by “free-riding” in groups Norm: A behaviour rule or standard expected to be followed by team members Cohesiveness: The degree to which members are attracted and motivated to remain part of the team Stakeholder: Individuals and groups directly affected by the organisation and its strategic accomplishments Compliance vs. Conviction: Terminal Values: Preferences about desired end states Instrumental Values: Preferences regarding the means to desired ends 2. Describe the different levels of managers (Top Managers, Middle Managers, Team Leaders) and the different types of managers (Line Managers, Staff Managers, Functional Managers, General Managers, Administrators). Top Manager: Guides the performance of the organization as a whole or one of its major parts Middle Manager: Oversee the work of large departments or divisions Team Leaders: Report to the middle managers and supervise non-managerial workers Line Manager: Directly contribute to producing the organization's goods and services Staff Manager: Use special technical expertise to advise and support line workers Functional Manager: Are responsible for one area such as finance, marketing, production, personnel, accounting, or sales General Manager: Are responsible for complex, multifunctional units Administrators: Is a Manager in a public or non-profit organization 3. Describe the four functions of management (Planning, Organizing, Leading, Controlling). Planning: The process of setting objectives and determining what should be done to accomplish them Organizing:The process of assigning tasks, allocating resources, and coordinating work activities Leading: The process of arousing enthusiasm and inspiring efforts to achieve goals Controlling: The process of measuring performance and taking action to ensure desired results 4. Describe the three essential managerial skills (Technical, Human/Interpersonal, Conceptual). Technical: The ability to use expertise to perform a task with proficiency Human/Interpersonal:The ability to work well in cooperation with other people Conceptual: The ability to think analytical to diagnose and solve complex problems 5. Briefly describe the contributions to Classical Management by Frederick W. Taylor, Henri Fayol, and Max Weber. Frederick W. Taylor: ​ Published “The principles of Scientific Management” which emphasizes careful selection and training of workers and supervisory support ​ “Father of scientific management ​ Noticed workers did their job in their own ways and without clear and uniform specifications which caused them to lose efficiency and underperform ​ Four guiding action principles for scientific management ○​ Develop for ever job a “science” that includes rules of motion, standardized work tools, and proper working conditions ○​ Carefully select workers with the right abilities for the job ○​ Carefully train workers to do the job and give them proper incentives to cooperate with the job “science” ○​ Support workers by carefully planning their work and by smoothing the way as they go about their jobs ​ First principal: Motion study ○​ The science of reducing a task to its basic physical motions Henri Fayol: ​ Published “Administration Industrielle et Generale” which outlines his views on the proper management of organizations and of the people within them ​ 14 Principles of management that he felt should be taught ○​ Division of labour - Specialization of work will result in continuous improvements in skills and methods ○​ Authority - Managers and workers need to understand that managers have the right to give orders ○​ Discipline - Behaviour needs to be grounded in obedience and derived from respect. There will be no slacking or bending of rules ○​ Unity of command - Each employee should have one, and only one, manager ○​ Unity of direction - The leader generates a single plan, and play their part in executing that plan ○​ Subordination of individual interests - While at work, only work issues should be undertaken or considered ○​ Remuneration - All should receive fair payment for their work; employees are valuable and not simply an expense  ○​ Centralization - While recognizing the difficulties in larger organizations decisions are primarily made from the top ○​ Scalar chain (line of authority) - Organizations must have clear, formal chains of command running from the top to the bottom of the organization ○​ Order - There is a place for everything, and all things should be in their place ○​ Equity - Managers should be kind and fair ○​ Personnel tenure - Unnecessary turnover is to be avoided, and there should be lifetime employment for good workers ○​ Initiative - All managers and workers should undertake work with zeal and energy ○​ Esprit de corps - Managers should work to build harmony and cohesion among personnel ​ He identified 5 “rules” or “duties” of management ○​ Foresight - to complete a plan of action for the future ○​ Organization - To provide and mobilize resources to implement the plan ○​ Command - to lead, select, and evaluate workers to get the best work toward the plan ○​ Coordination - To fit diverse efforts together and ensure information is soared and problems solved ○​ Control - To make sure things happen according to plan and take necessary corrective action ​ He believed management could be taught Max Weber: ​ Had a major impact on the field of management and the sociology of organizations ​ Bureaucracy is a rational and efficient form of organization founded on logic, order, and legitimate authority ​ Characteristics of his bureaucratic organization ○​ Clear division of labour - Jobs are well defined, and workers become highly skilled at performing them ○​ Clear hierarchy of authority - Authority and responsibility are well defined for each position, and each position reports to a higher-level one ○​ Formal rules and procedures - Written guidelines direct behaviour and decisions in jobs, and written files are kept for historical record ○​ Impersonality - Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment ○​ Careers based on merit - Workers are selected and promoted on ability, competency, and performance, and managers are career employees of the organization 6. Briefly describe the contributions to Behavioural Management by Abraham Maslow, Douglas McGregor, and Chris Argyris. Abraham Maslow: ​ “Need” a physiological or psychological deficiency a person feels feels compelled to satisfy ​ 2 underlying principles ○​ Deficit principle - a satisfied need is not a motivator of behaviour. People act to satisfy “deprived” meeds, those for which satisfaction “deficit” exists ○​ Progression principle - the five needs exist in a hierarchy; a need at any level is activated only when the next-lower-level need is satisfied ​ Maslow's hierarchy of human needs from lowest to highest ○​ Psychological needs - Most basic of all human needs; need for biological maintenance; foo, water, and physical well-being ○​ Safety needs - Need for security, protection, and stability in the events of day-today life ○​ Social needs - Need for love, affection, sense of belonging in ones relationships with other people ○​ Esteem needs - Need for esteem in the eyes of others; need for respect. Prestige, recognition; need for self-esteem, personal sense of competence, mastery ○​ Self actualization needs - Highest level; need for self-fulfillment; to grow and use abilities to the fullest and most creative extent ​ Managers who understand and help people satisfy their important needs at work will achieve productivity Douglas McGregor ​ Wrote “The human side of enterprise” which emphasizes that managers should give more attention to the social and self-actualizing needs of people at work ​ “Theory X” - Managers to shift their view of human nature away from a set of assumptions. Assumes people dislike work, lack ambition, act irresponsibly, and prefer to be led ​ “Theory Y” - Managers to shift their view of human nature toward a set of assumptions. Assumes people are willing to work, like responsibility, and are self-directed and creative ​ Self-fulfilling prophecies: occurs when a person acts in ways that confirm another’s expectations’ Chris Argyris ​ Wrote “Personality and organization” which contrasts the management practices found in traditional and hierarchical organizations with the needs and capabilities of mature adults ​ Believes that managers who treat people positively and as responsible adults will achieve highest productivity. ​ Advice is to expand job responsibilities, allow more task variety, and adjust supervisory styles to allow more participation and promote better human relations ​ Believes that the common problems of employee absenteeism, turnover, apathy, alienation, and low morale may be signs of mismatch between management practices and mature adult personalities 7. Explain the difference between the three problem-solving styles (avoiders, solvers, seekers). Avoiders: Ignore information that would otherwise signal the presence of a performance opportunity or deficiency. Not wanting to make decisions and deal with problems Solvers: Willing to make decisions and try to solve problems, but only when forced to by the situation. They are reactive in gathering information and tend to respond to problems after they occur. Seekers: Actively process information and constantly look for problems to love. Anticipate performance deficiencies and opportunities, and they take appropriate action to gain the advantage 8. Explain the difference between the three decision environments (certain, uncertain, risk). Certain: Offers complete information on possible action alternatives and their consequences Uncertain: Lacks so much information that is difficult to assign probabilities to the likely outcomes of alternatives Risk: Lacks complete information and requires the use of probabilities to determine possible action alternatives and their likely outcomes 9. Describe the steps in the Decision-Making Process, Planning Process, and Control Process. Decision Making Process: 1.​ Identify and define the problem 2.​ Generate and evaluate alternative solutions 3.​ Chose a preferred course of action and conduct the ethics double-check 4.​ Implement the decision 5.​ Evaluate results Planning Process: 1.​ Define your objective - Identify desired outcomes or results in very specific ways. Know where you want to go. Be specific enough that you will know you have arrived when you get there, or know how far off the mark you are at various points along the way 2.​ Determine where you stand in relation to objectives - Evaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives. Know what strengths work in you favour and what weaknesses may hold you back 3.​ Develop premises regarding future conditions - Anticipate future events. Generate alternative scenarios for what may happen. For each scenario, identify things that may help or hinder progress toward your objectives 4.​ Analyze alternatives and make a plan - List and evaluate possible actions. Choose the alternative most likely to accomplish your objectives. Describe what must be done to follow the best course of action. 5.​ Implement the plan and evaluate the results - Take action and carefully measure your progress toward objectives. Follow through by doing what the plan requires. Evaluate results, take corrective action, and revise plans as needed Control Process: 1.​ Establish objectives and standards ​ The control process begins with planning. Performance objectives and the standards for measuring them are set. ​ Types of measurement standards: ​ Output standards measure performance results in terms of quantity, quality, cost, or time. Input standards measure effort in terms of the amount of work expended in task performance. 2.​ Measuring actual performance ​ During this step, attention is devoted to accurately measuring actual performance results (output standards) and/or performance efforts (input standards). ​ Measurement must be accurate enough to identify significant differences between actual results and the original plan. ​ Without measurement, effective control is not possible. 3.​ Comparing results with objectives and standards ​ The comparison made at this step is summarized by the following control equation: Need for Action = Desired Performance – Actual Performance ​ Methods of comparing desired and actual performance: ​ A historical comparison uses past performance as a benchmark ​ A relative comparison uses the performance of other persons, work units, or organizations as the evaluation standard ​ An engineering comparison uses engineered standards set scientifically through such methods as time and motion studies. 4.​ Taking corrective action ​ This step involves taking any action necessary to correct problems or make improvements when there is a measured difference between desired and actual performance. ​ Management by exception is the practice of giving attention to situations showing the greatest need for action. ​ Two types of exceptions can be recognized by the control equation: ​ A problem situation is one in which actual performance is below the standard, suggesting that corrective action is needed. ​ An opportunity situation in which actual performance exceeds the standard. The reasons for this extraordinary performance should be discovered and understood, thereby enabling superior performance to be repeated in the future. ​ This practice can save the manager time, energy, and other resources, and concentrate efforts on areas showing the greatest need. 10. Describe the three sources of Position Power (Reward, Coercive, Legitimate) and the three sources of Personal Power (Expert, Referent, Relational). Position Power: Based on a manager’s official status in the organization’s hierarchy of authority Reward: The capacity to offer something of value (a positive outcome) as a means of influencing the behavior of\ other people. Corvive: The capacity to punish or withhold positive outcomes as a means of influencing the behavior of other people. Legitimate: The right by virtue of one’s organizational position or status to exercise control over persons in subordinate positions. Personal Power: Based on the unique personal qualities that a person brings to a leadership situation Expert: The capacity to influence other people because of one’s specialized knowledge and skills. Referent: The capacity to influence other people because they want to identify positively with you. Relational: The ability to function well as part of a team working toward a collective goal 11.What makes a leadership style? Describe all 5 styles within Blake and Mouton’s Leadership Grid. Authority-obedience: emphasized task over people, retains authority and information, and acts in unilateral,command-and-control fashion Country club: Emplazizing people over tasks Impoverished: Shows little concern for the task, letting the group make decisions and acting with a “do the best you can and don't bother me” attitude Team Manager: Committed to both task and people, trying to get things done while sharing information, encouraging participation in decision-making, and otherwise helping others develop[ their skills and capabilities. 12.Describe the three Classic Leadership styles (Autocratic, Democratic, Laissez-Faire). AUTOCRATIC style: Emphasizes work over people, keeps authority and information within the leader’s tight control, and acts in a unilateral command- and-control fashion DEMOCRATIC style: Committed to task and people, getting things done while sharing information, encouraging participation in decision making, and helping people develop skills and competencies LAISSEZ-FAIRE style: Shows little concern for task at hand, lets the group make decisions, and acts with a “do the best you can and don’t bother me” attitude 13.Describe the different Extrinsic Reward Theories (Hierarchy of Needs Theory, ERG Theory, Two-Factor Theory, Acquired Needs Theory). Hierarchy of Needs theory: ​ Lower order needs: Physiological, safety and social concerns. Desires for physical and social well-being ​ Higher order needs: Esteem and self actualization concerns. Desires for psychological development and growth ​ Deficit principle: A satisfied need is not a motivator of behaviour. People are expected to act in ways that satisfy deprived needs—that is, needs for which a “deficit” exists. Progression principle: A need at one level does not become activated until the next-lower-level need is already Satisfied. People are expected to advance step by step up the hierarchy in their search for needed satisfactions. ERG Theory: ​ Existence needs: Desires for physiological and material well-being. Relatedness needs: Desires for satisfying interpersonal relationships. Growth needs: Desires for continued Psychological growth and development. ERG does not assume that certain needs must be satisfied before other ones become activated. Frustration-regression principle: according to which an already-satisfied lower-level need can become reactivated and influence behaviour when a higher-level need cannot be satisfied. Two-Factor Theory ​ Satisfier factors: When asked what “turned them on” about their work, respondents talked mostly about things ​ relating to the nature of the job itself. Hygiene factors: When asked what “turned them off,” they talked more about things relating to the work setting. Acquired Needs Theory: Thematic Apperception Test (TAT): A way of examining human needs.16 The TAT asks people to view pictures and write stories about what they see. The stories are then content-analyzed for themes that display the strengths of three needs: achievement, power, and affiliation. Need for achievement: The desire to do something better or more efficiently, to solve problems, or to master complex tasks. People with a high need for achievement like to put their competencies to work. Need for power: The desire to control other people, to influence their behaviour, or to be responsible for them. them. People with a high need for power are motivated to behave in ways that have a clear impact on other people and events. Need for affiliation: The desire to establish and maintain friendly and warm relations with other people. People with a high need for affiliation seek companionship, social approval, and satisfying interpersonal relationships. 14.Describe the five stages of team development. 1.​ Forming: A stage of initial orientation and interpersonal testing 2.​ Storming: A stage of conflict over tasks and working as a team 3.​ Norming: A stage of consolidation around task and operating agendas 4.​ Performing: A stage of teamwork and focused task performance 5.​ Adjourning: A stage of task completion and disengagement 15. Briefly describe the four alternative views of ethics (Utilitarian View, Individualism View, Moral-Rights View, Justice View). Utilitarian View: Ethical behaviour delivers the greatest good to the most people Individualism View: Ethical Behaviour advances long-term self interests Moral-Rights View: Ethical behaviour respects and protects fundamental rights Justice View: Ethical behaviour treats people impartially and fairly 16.What is Corporate Social Responsibility (CSR)? Do you believe organizations have an obligation to be socially responsible? CSR: Corporate social responsibility; the obligation of an organisation to serve both its own interests and those of society. Essay example: What does it take to be a good leader? What Does It Take to Be a Great Leader? Leadership is a vital component of organizational success, requiring a unique blend of skills, traits, and practices that inspire individuals to achieve shared goals. Great leaders are not solely defined by their titles but by their ability to navigate challenges, motivate teams, and uphold ethical standards. This essay explores the essence of great leadership through the lens of three critical topics: functions of management, behavioral management approaches, and leadership styles. The Functions of Management At the core of effective leadership are the fundamental functions of management: planning, organizing, leading, and controlling. These functions form the blueprint for achieving goals and guiding teams to success. Planning, the first function, involves setting objectives and determining the strategies needed to achieve them. A great leader provides a clear vision and outlines actionable steps for their team. For instance, a leader who defines measurable outcomes ensures that every team member understands their role in achieving the organization’s broader mission. The organizing function follows, as leaders allocate resources, assign tasks, and coordinate activities to ensure smooth operations. This structured approach fosters efficiency and clarity, enabling teams to work cohesively. Leading, arguably the most visible function of management, involves inspiring and motivating individuals. Great leaders communicate effectively, build trust, and foster a sense of purpose within their teams. By connecting with team members on an emotional level, leaders can galvanize their workforce toward shared objectives. Lastly, controlling involves monitoring progress, evaluating performance, and implementing necessary adjustments. A great leader is proactive in identifying challenges and ensuring that their team remains aligned with organizational goals. These functions collectively empower leaders to translate vision into reality, making them indispensable to organizational success. Behavioral Management Approaches Understanding human behavior is a cornerstone of great leadership, as it enables leaders to address the needs, motivations, and aspirations of their team members. Behavioral management approaches, pioneered by theorists such as Abraham Maslow, Douglas McGregor, and Chris Argyris, offer valuable insights into effective leadership. Maslow’s hierarchy of needs provides a framework for understanding employee motivation, emphasizing the progression from basic physiological needs to self-actualization. A great leader recognizes the importance of creating an environment where employees feel secure, valued, and empowered to achieve their full potential. By addressing safety needs through job security or esteem needs through recognition and appreciation, leaders cultivate loyalty and productivity. Douglas McGregor’s Theory X and Theory Y further illuminate leadership styles. Theory X assumes that individuals inherently dislike work and require strict supervision, while Theory Y posits that people are self-motivated and thrive when given responsibility. Effective leaders adopt a Theory Y mindset, empowering employees and fostering creativity. Chris Argyris underscores the importance of treating employees as mature adults capable of growth. By expanding job responsibilities and encouraging participation, leaders enable employees to align their personal development with organizational objectives. Behavioral management approaches, therefore, provide leaders with the tools to unlock their team’s potential. Leadership Styles Leadership styles play a significant role in shaping a leader’s effectiveness. The Blake and Mouton Leadership Grid, for instance, identifies different approaches to leadership based on concern for people and tasks. The ideal style, team management, balances both, driving results while fostering trust and collaboration within teams. Classical leadership styles—autocratic, democratic, and laissez-faire—also offer insights into effective leadership. Autocratic leaders make decisions independently, ensuring efficiency in high-pressure situations. Democratic leaders, on the other hand, involve their teams in decision-making, fostering innovation and collaboration. Laissez-faire leaders delegate authority, empowering their teams to work autonomously. The hallmark of a great leader is adaptability. By tailoring their leadership style to the needs of their team and the situation, leaders can effectively navigate challenges and inspire their teams. For example, an autocratic approach may be suitable during a crisis, while a democratic style may encourage creativity during brainstorming sessions. This flexibility ensures that leaders remain effective across varying contexts. Conclusion In conclusion, being a great leader requires mastery of the functions of management, an understanding of behavioral management principles, and the ability to adapt leadership styles to different situations. Great leaders plan strategically, motivate through empathy and understanding, and remain flexible in their approaches to inspire their teams and achieve organizational goals. Leadership is not merely about authority; it is about fostering an environment where individuals can thrive and contribute to collective success. By integrating these elements, leaders can create a legacy of excellence and inspire greatness in others.