Principles of Management Exam 4 Study Guide PDF

**Principles of Management (MGMT 3361)** **Study Guide for Exam 4** **Motivation (Ch 13):** 1. **What is motivation? What are the three elements of motivation?** **Motivation** is the set of internal and external forces that initiate, direct, and sustain goal-oriented behaviors**.**...

**Principles of Management (MGMT 3361)** **Study Guide for Exam 4** **Motivation (Ch 13):** 1. **What is motivation? What are the three elements of motivation?** **Motivation** is the set of internal and external forces that initiate, direct, and sustain goal-oriented behaviors**.** **The three elements of motivation are:** - **Direction:** Choosing what to focus on or where to direct efforts**.** - **Intensity:** The level of effort put into achieving a goal. - **Persistence:** The duration and consistency of effort over time**.** 2. **Describe the Basic Model of Work Motivation and Performance. What is the relationship between effort and performance?** The **[Basic Model of Work Motivation and Performance]** suggests that motivation leads to effort, which, when combined with the right skills and resources, results in performance. - **Effort → Performance Relationship:** Performance is influenced by the amount of effort exerted, but effort alone is **[not]** **[sufficient]**. **It depends on:** - Whether the individual has the skills and abilities to perform. - Whether the work environment supports the effort (resources, tools, and opportunities). 3. **What are the 5 needs that are part of Maslow's Hierarchy of Needs? What are the key points of this theory?** **Maslow's Hierarchy of Needs includes:** 1. **Physiological Needs:** Basic survival needs (food, water, shelter). 2. **Safety Needs: Protection and stability** (security, health, financial stability). 3. **Belongingness and Love Needs:** Relationships, friendship, and connection. 4. **Esteem Needs:** Recognition, respect, and self-confidence. 5. **Self-Actualization Needs:** Fulfilling one's potential and seeking personal growth. **Key Points:** - **[Needs]** are arranged in a hierarchy. [Lower-level needs] must be satisfied ***[before]*** focusing on higher-level ones. - Not all individuals progress through the hierarchy at the same pace. 4. **How does Alderfer's ERG theory modify Maslow's need structure?** **Alderfer's ERG Theory condenses Maslow's five levels into three categories:** 1. **Existence:** Physiological and safety needs. 2. **Relatedness:** Belongingness and esteem needs related to social interactions. 3. **Growth:** Esteem needs related to self-fulfillment and self-actualization. **Modifications:** - ERG Theory allows for regression if higher-level needs are not satisfied (frustration-regression). - Multiple levels can be pursued simultaneously. 5. **Describe the 3 needs that are part of McClelland's Theory of Needs. Which needs are most/least beneficial for managers?** **McClelland's Theory focuses on:** 1. **Need for Achievement (nAch):** Desire to accomplish challenging goals and excel. - Beneficial for managers because it drives productivity but may lead to micromanagement. 2. **Need for Affiliation (nAff):** Desire for relationships and being liked by others. - Least beneficial for managers, as it can interfere with tough decision-making. 3. **Need for Power (nPow):** Desire to influence and control others. - Beneficial for managers if used constructively to motivate teams. 6. **What are the roles of extrinsic and intrinsic rewards in motivating workers?** Both play roles, but [intrinsic rewards] are often more effective for sustaining long-term motivation. 7. **Equity Theory: What are inputs and outcomes? What are some examples of each? How do our inputs and outcomes affect our perceptions of equity? What does it mean to be over or under-rewarded? How do we respond to inequity? How can mangers use equity theory to motivate employees?** - **Inputs:** What employees contribute (effort, skills, experience). - Examples: Hours worked, education, creativity. - **Outcomes:** What employees receive in return (pay, benefits, recognition). - Examples: Salary, promotions, job security. **Perceptions of Equity:** - **Under-rewarded:** Leads to dissatisfaction and reduced effort. - **Over-rewarded:** Can create guilt or discomfort but is less common. **Responses to Inequity:** - Change inputs or outcomes. - Adjust perceptions of self or others. - Leave the situation. **Managerial Application:** Ensure fairness in pay, recognition, and opportunities. 8. **Expectancy theory: Define expectancy, instrumentality, and valence, and explain the role each plays in determining whether we are motivated. How can managers use expectancy theory to motivate employees?** **Managerial Use**: Align rewards with effort, ensure clear expectations, and make outcomes desirable. 9. **Reinforcement Theory: How do reinforcers in our environment influence our motivation? Distinguish between: positive reinforcement, negative reinforcement, punishment, and extinction. Give an example of each of these reinforcement processes. What are reinforcement contingencies? What are the different schedules of reinforcement? How can managers use reinforcement theory to motivate?** **[Reinforcers influence behavior by consequences:]** - **Positive Reinforcement:** Adding rewards to encourage behavior (e.g., bonuses). - **Negative Reinforcement:** Removing unpleasant factors to encourage behavior (e.g., reducing workload) - **Punishment:** Adding negative outcomes to [discourage behavior] (e.g., warnings). - **Extinction:** Removing rewards to weaken behavior (e.g., no recognition for tardiness). **[Schedules of Reinforcement:]** - Continuous, fixed interval, fixed ratio, variable interval, variable ratio. **Managerial Use**: Reinforce desired behaviors with timely and consistent application. 10. **Goal-setting Theory: What are goals? What goals are most effective at motivating us? What is goal acceptance? Why is performance feedback performance important in this process? How can managers motivate with goal-setting theory?** Goals are specific objectives employees strive to achieve. **Effective Goals Are:** - **Specific, measurable, attainable, relevant, and time-bound (SMART).** **Goal Acceptance:** Employees are more motivated when they accept and commit to goals. **Feedback:** Helps employees track progress and make adjustments. **Managerial Use:** Set challenging but [realistic goals] and provide consistent feedback. **Leadership (Ch. 14):** 1. **What is leadership? How do leaders and managers differ?** - **[Leaders]** focus on vision, innovation, and influence. They inspire change and align teams with organizational goals. - **[Managers]** emphasize planning, organizing, and controlling resources to maintain efficiency and achieve stability. 2. **What is the trait theory of leadership? What traits do leaders have that distinguish them from non-leaders?** - Trait Theory: Suggests certain innate traits differentiate leaders from non-leaders. (effective leaders possess a similar set of traits or characteristics) - - - - - - - - 3. **What behaviors do leaders perform? Define and give examples of initiating structure and consideration behaviors.** - Example: A manager setting clear deadlines for a project. - Example: A leader showing empathy and acknowledging personal challenges**.** 4. **Describe the main components of Fiedler's Contingency Model. What are the two types of leadership styles? How is leadership style measured? Can leaders change their style easily? What are the three dimensions on which Fiedler characterizes different leadership situations? How do these dimensions combine to create favorable and unfavorable situations for leaders? What type of situations are each of the two leadership styles best suited for?** **Main Components:** - Effectiveness depends on a leader's style and the situation. - Leaders are either task-oriented or relationship-oriented. **Leadership Style:** Measured using the Least Preferred Coworker (LPC) scale. High LPC scores indicate relationship orientation, while low scores indicate task orientation. Leadership style is fixed and difficult to change. **Three Dimensions of Leadership Situations:** 1. **Leader-Member Relations:** Trust and respect between leader and team. 2. **Task Structure:** Clarity and definition of tasks. 3. **Position Power:** Leader's authority to reward or punish. **Favorable vs. Unfavorable Situations:** - **Task-oriented** leaders perform best in very favorable or very unfavorable situations. - **Relationship-oriented** leaders excel in moderately favorable situations. **Three characteristics of a Favorable situations:** - Good leader mender relationships (team likes and trusts the leader) - High task structure (clear goals and objectives) - High position power (leader has high authority on rewards and punishments) **If situation is favorable a leader can go in and it is easy for them to influence a group** **Task oriented is [favorable]** **Three characteristics of an Unfavorable situations:** - Poor leader mender relationships (team dislikes or does not trust the leader) - Low task structure (confusion on goals and objectives) - Low position power (leader has no authority on rewards and punishments) **Unfavorable situations can be hard to influence the group.** **Task oriented leader would be [more favorable] in this situation.** 5. **What are the main assumptions of the Path Goal Theory? What are the 4 leadership styles in this model? What types of behaviors are associated with each style? What situational and subordinate characteristics determine whether each style will be effective? According to this theory, are leaders flexible enough to adjust their style to different situations?** - **Directive --** similar to [task-oriented] initiating structure by giving clear instructions. - Effective in ambiguous tasks or inexperienced teams. - **Supportive --** similar to [relationship-oriented] leadership by being concerned for their team - Effective for repetitive or stressful tasks. - **Participative --** when a leader encourages others/followers to be actively involved in planning something - Effective for complex tasks requiring input. - **Achievement oriented --** focuses on trying to achieve high outcomes by setting very challenging goals and having high expectations - Effective for motivated and skilled teams. - **Flexibility:** Leaders can adapt their styles to suit changing situations and team needs. 6. **What is normative decision theory? What are the decision styles in this model? What is the role of decision quality and acceptance in this model?** - **Autocratic:** Leader makes decisions independently. - **Consultative:** Leader seeks input but makes the final decision**.** - **Group-Based:** Group collaborates to [decide]. 7. **What are strategic leaders? Visionary leaders?** 8. **What are charismatic leaders? What are their main qualities? Does the evidence suggest that they are "born" or "made"? How do charismatic leaders influence organizational outcomes? Distinguish between ethical and unethical charismatic leaders?** a. **Ethical**: Use influence to serve the organization and its members. b. **Unethical**: [Manipulate] for personal gain or to serve narrow interests. 9. **What are transformation leaders? How do they differ from transactional leaders?** - Focus on change, vision, and empowerment. - Use structured systems and performance incentives. **Communication (Ch. 15)** 1. **What is perception? What are perceptual filters? Explain what selective perception is.** 2. **Explain what attribution theory is. What is defensive bias? What is the fundamental attribution error? What is the self-serving bias?** 3. **What is communication? Describe the components and steps of the interpersonal communication model (e.g., encoding, decoding, feedback, noise).** - **Encoding:** [Sender] translates ideas into a message. - **Transmitting:** [Message] is sent via a communication channel. - **Decoding**: [Receiver] interprets the message. - **Feedback:** [Receiver] responds to confirm understanding. - **Noise:** Any interference that distorts the [message], e.g., distractions or misunderstandings. 4. **Distinguish between formal and informal channels of communication.** 5. **Distinguish between (and give examples of): upward, downward, and horizontal communication. What are the problems associated with each type? What recommendations can be made to organizations to improve formal communication?** a. **Problems**: Uncertainty to share bad news; filtering information. b. **Problems**: Information overload or lack of clarity. c. **Problems**: Coordination issues or competition. **Recommendations**: Ensure transparency, encourage feedback, and use clear messaging tools. 6. **What is the grapevine (informal channel)? When does it emerge? What type of information does it communicate? How accurate is it?** 7. **Describe the 2 informal networks: gossip chain and cluster chain.** 8. **What are coaching and counseling?** - Example: Helping an employee learn new software. - Example: Providing support for stress management. 9. **Describe the pros and cons of oral and written communication mediums.** d. **Pros**: Immediate feedback, personal interaction. e. **Cons**: Misinterpretation, lack of record. f. **Pros**: Creates a record, clear and detailed. g. **Cons**: Time-consuming, lacks immediate feedback. 10. **What is nonverbal communication? What are kinesics and paralanguage? Why is it important?** - **Kinesics**: Body movements and gestures. - **Paralanguage**: Tone, pitch, rate, volume and pace of speech. - **Importance**: Reinforces or contradicts verbal messages. 11. **How can managers choose the right communication medium?** - **Use email for detailed information.** - **Choose face-to-face for sensitive discussions.** 12. **Distinguish between hearing and listening. How can we become better listeners? What is active listening? How can one become an active listener? What is empathic listening? How can one become an empathic listener?** - **Active Listening**: Focused attention, paraphrasing, and providing feedback. - **Empathic Listening**: [Understanding] emotions behind the message. - Avoid distractions. - Summarize key points. - Show empathy. 13. **Distinguish between constructive and destructive feedback? How can we make our feedback more constructive?** - **Be specific.** - **Focus on behavior, not the person.** - **Suggest improvements.** 14. **How can managers improve transmission by getting the message out?** 15. **How can managers improve reception?** **Control (Ch 16):** 1. **What is control? What steps are involved in this regulatory process?** **Control** is the process of monitoring, measuring, and adjusting activities and performance to ensure that organizational goals are met efficiently and effectively. The steps in the **regulatory process** are: - **Setting standards**: should be specific and clear (make sure they align with the goals that are being set) managers set standards - **Measure performance and compare to the standards set standards:** monitor actual performance against standards - **Take corrective action if it is needed:** addresses gaps by implementing changes or improvements to align performance with standards 2. **What are standards? How do companies set standards? What is benchmarking?** **Standards:** are specific criteria or metrics used to evaluate performance and guide actions. Ex; include profit margins, quality levels, or customer satisfaction scores. Companies set standards by: - Analyzing industry best practices. - Using historical performance data. - Setting goals aligned with strategic objectives. **Benchmarking:** is the process of comparing your company's practices, performance, and products with industry leaders or competitors to identify areas for improvement. 3. **Distinguish between feedback control, concurrent control, and feedforward control.** 4. **In what situations might control not be worthwhile or possible? What are regulation costs? What is cybernetic feasibility?** **Control may not be worthwhile or possible when:** - The cost of implementing controls exceeds the benefits. - The activity is too unpredictable or complex. - There is insufficient information to establish reliable standards. **Regulation Costs:** Expenses incurred in monitoring and implementing control processes, including time, resources, and money. **Cybernetic Feasibility:** The extent to which a system can self-regulate and maintain control without external intervention. 5. **What methods do companies use to maintain control? Describe each of the following control methods: Bureaucratic Control; Objective Control (behavioral and output control); Normative Control; Concertive Control; and Self-Control (self-management).** **Bureaucratic Control:** Uses rules, policies, and hierarchy to ensure compliance. Example: Employee handbooks. **Objective Control:** Focuses on observable measurable outcomes: - **Behavioral Control:** Monitors employees' behaviors and actions. - **Output Control:** Measures results and outputs, like sales targets. **Normative Control:** Relies on shared values and norms through organization to guide behavior. Example: Company culture training. **Concertive Control:** Utilizes team-based accountability and peer pressure. Example: Autonomous workgroups. (operate without managers/ group members control processes, outputs, and behaviors) **Self-Control (Self-Management):** Encourages employees to set their own goals and monitor performance. Example: Personal development plans. 6. **What should managers control? Describe the balanced scorecard approach to control. What are the advantages of this method (in comparison to control processes that focus on measuring only financial outcomes)?** Managers should control key performance areas such as finances, operations, customer satisfaction, and employee performance. **Balanced Scorecard Approach:** A strategic management tool that evaluates performance from multiple perspectives: customer perspective, internal perspective, innovation and learning perspective, and financial perspective. - **Advantages:** - Provides a comprehensive view of organizational performance. - Balances short-term financial goals with long-term objectives. 7. **The balanced scorecard approach encompasses four different perspectives on company performance. Describe the financial perspective, customer perspective, internal perspective, and innovation and learning perspective.** **Financial Perspective**: Focuses on profitability, revenue growth, and cost management. Example: Return on investment (ROI). **Customer Perspective**: Measures customer satisfaction, retention, and loyalty. Example: Net Promoter Score (NPS). **Internal Perspective**: Evaluates operational efficiency and quality. Example: Cycle time or defect rates. **Innovation and Learning Perspective**: Tracks the organization's ability to innovate and improve. Example: Employee training hours or R&D investment.