Ø  - power granted through the organizational hierarchy.

Ø  - the power to give or withhold rewards.

Ø  the capability to force compliance by means of psychological, emotional, physical threat.

Ø  - the personal power that accrues the someone based an identification, imitation, loyalty, or charisma.

Ø  power derived from the possession of information or expertise.

Ø  Assumed that a basic set of personal traits that differentiated leaders from non-leaders could be used to identify leaders and predict who would become leaders.

Ø  The trait approach was unsuccessful in establishing empirical relationships between traits and persons regarded as leaders.

leaders exhibit a high effort level. they have a relatively high desire for achievement; they are ambitious; they have a lot of energy; they are tirelessly persistent in their activity; and they show initiative.

·        leaders have strong desire to influence and lead others. they demonstrate the willingness that they responsibility.

·        leader build trusting relationship between themselves and followers by being truthful or non-deceitful and by showing high consistency between word and deed.

·        followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of their goals and decisions.

- effective leaders have a high degree of knowledge about the company, industry, and technical matters. in-depth knowledge allows leaders to make well informed decisions and to understand the implication of those decisions.

·        leaders need to be intelligent enough to gather, synthesis, interpret large amount of information, and they need to be able to create visions, solve problems, and make correct decisions.

       leaders are energetic, lively people. they are sociable, assertive, and rarely silent or withdrawn.

centralized authority, low participation

·        : involvement, high participation, feedback.

Ø  managers who pay close attention to subordinates’ work, explain work procedures, and are keenly interested in performance.

Ø  managers who focus on the development of cohesive work groups and employee satisfaction. – The two forms of leader behaviors were considered to be at opposite ends of the same continuum.

Ø  The behavior of leaders who define the leader– subordinate role so that everyone knows what is expected, establish formal lines of communication, and determine how tasks will be performed

Ø  The behavior of leaders who show concern for subordinates and attempt to establish a warm, friendly, and supportive climate.

Ø  provides a means for evaluating leadership styles and then training managers to move toward an ideal style of behavior.

Ø  The part of the Managerial Grid that deals with the job and task aspects of leader behaviour (H)

Ø  Appropriate leader behavior varies from one situation to another.

A theory of leadership that suggests that the appropriate style of leadership varies with situational favorableness.

the nature of the relationship between the leader and the work group.

Ø  the degree to which the group’s task is defined. / When the structure is high, directive leadership is less effective.

Ø  the power vested in the leader’s position.

Associated most closely with Martin Evans and Robert House—is a direct extension of the expectancy theory of motivation.

suggesting that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to those rewards

ü  letting subordinates know what is expected of them, giving guidance and direction, and scheduling work.

ü  being friendly and approachable, having concern for subordinate welfare, and treating subordinates as equals.

ü  consulting with subordinates, soliciting suggestions, and allowing participation in decision making.

ü  oriented leader behaviour setting challenging goals, expecting subordinates to perform at high levels, encouraging and showing confidence in subordinates.

the higher degree of formality, the Nestor active is the leader behavior accepted by subordinate.

when the work group provides employees with support and satisfaction, supportive leader is less critical

Model attempts to prescribe a leadership style appropriate to a given situation. Subordinate participation in decision making depends on the characteristics of the situation.

- The degree to which the decision will have an impact on the organization. Subordinates are involved when decision significance is high.

Ø  The degree of time pressure for making a decision in a timely basis; may preclude involving subordinates.

Ø  manager makes decision alone and then announces or “sells” it to the group.

Ø  manager presents program to group members individually, obtains their suggestions, then makes the decision.

Ø  manager presents the problem to the group, defines the problem and its boundaries, and then facilitates group member discussion as they make the decision.

Ø  - manager allows the group to define for itself the exact nature and parameters of the problem and then develop a solution.

Ø  Stresses the importance of variable relationships between supervisors and each of their subordinates.

Ø  A form of interpersonal attraction that inspires support and acceptance

Ø  Leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking.

The capability to provide purpose and direction that encompasses both international and diversity based cultural differences in the organization

Ø  Involves providing a strong corporate governance model did the organization that reflects the high ethical standards of its leaders. requires holding those who lead the organization accountable for their actions and the consequences of their actions.

Ø  Activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one's preferred outcome.

offering to give something to someone else in return for that person’s support.

·        persuading others to support a goal on grounds that are objective and logical as well as subjective and personal.

providing support for another person’s position that obliges that person to return the favor at a future date.

  using force to get one’s way.

  making a direct and intentional effort to enhance one’s image in the eyes of others

   the process of transmitting information from one person to another

the process of sending a message in such a way that the message received is as close in meaning as possible to the message intended

raw figures and facts reflecting a single aspect of reality

data presented in a way or form that has meaning

has meaning to a manager and provides a basis for action

  Provides a valid and reliable reflection of reality

Available in time for appropriate managerial action

Provides the manager with all the information that he or she needs

   Information that is useful to managers in their particular circumstances for their particular needs

arrange the following communication process:

1. Encoding the meaning into a form appropriate to the situation

2. Decoding the message back into a form that has meaning to the receiver.

3. Deciding to transmit a fact, idea, opinion, or other information to the receiver.

4. Transmitting through the appropriate channel or medium

anything disrupting the communication process

generally takes one of two forms: oral and written

Face-to-face conversation, group discussions, telephone calls, and other circumstances in which the spoken word is used to transmit meaning

Memos, letters, reports, notes, and other circumstances in which the written word is used to transmit meaning

The pattern through which the members of a group communicate

all communication flows through one central person, who is probably the group’s leader

-        slightly less centralized—two people are close to the center.

   offers a more even flow of information among members, although two people (the ones at each end) interact with only one other person.

   This path is closed in the circle pattern.

the most decentralized, allows a free flow of information among all group members

-        consists of messages from subordinates to superiors

-        This flow is usually from subordinates to their direct superior, then to that person’s direct superior, and so on up the hierarchy.

Communication that flows up and down the organization, usually along formal reporting lines; takes place between managers and their superiors and subordinates and may involve several different levels of the organization

-        occurs when information flows down the hierarchy from superiors to subordinates

-        The typical content is directives on how something is to be done, the assignment of new responsibilities, performance feedback, and general information that the higher-level manager thinks will be of value to the lower-level manager

-        Communication that flows laterally within the organization; involves colleagues and peers at the same level of the organization and may involve individuals from several different organizational units

An increasingly important form of organizational communication relies on digital communication technology

   The resources used by an organization to manage information that it needs to carry out its mission

-        Advances in IT have made it increasingly easy for managers to use many different kinds of information systems.

-        An application of information processing for basic day-to-day business transactions

       An information system that supports an organization’s managers by providing daily reports, schedules, plans, and budgets

-        A quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers

The construction of computer systems, both hardware and software, to imitate human behavior— that is, to perform physical tasks, use thought processes, and learn

An interactive system that locates and presents information needed to support the decision-making process

A special form of AI, designed to imitate the thought processes of human experts in a particular field.

-        A communication network similar to the Internet but operating within the boundaries of a single organization

-        or private Internet networks

-        A communication network that allows selected outsiders limited access to an organization’s internal information system, or intranet

people work at home and periodically bring the products of their labors in to the company

– a label given to a new digital cottage industry, people work at home on their computers and communicate with colleagues and coworkers using electronic media

-        An informal communication network among people in an organization

-        An approach to communication that involves the manager literally wandering around and having spontaneous conversations with others.

-        Any communication exchange that does not use words or uses words to carry more meaning than the strict definition of the words themselves

the kinds of words people elect to use to give emphasis and effect to what they say.

boundaries, familiarity, home turf (e.g., office location, size, and furnishings) are symbols of power and influence how people choose to communicate in organizations

The distance we stand from someone as we speak, eye contact, body and hand movement, pauses in speech, and mode of dress

is used as a broad concept to encompass both international differences and diversity-based differences within one culture.

The regulation of organizational activities in such a way as to facilitate goal attainment

o   inventory management (stocking neither too few nor too many units in inventory)

o   selection and placement

o   training and development

o   sales and marketing forecasting

o   environmental analysis

-        most important area because it is related to the control of all other resources in an organization

focuses on the processes the organization uses to transform resources into products or services

concerned with the organization’s financial resources

concerned with how the elements of the organization’s structure are serving their intended purpose

focuses on how effectively the organization’s corporate, business, and functional strategies are succeeding in helping the organization meet its goals

-        A position in organizations that helps line managers with their control activities, for coordinating the organization’s overall control system, and for gathering and assimilating relevant information

-        especially important in organizations where control systems are complex

o   measures of performance that provide information that is directly relevant to what is being controlled

-        a target against which subsequent performance will be compared

-        should be expressed in measurable term

-        should also be consistent with the organization’s goals

-        can be as narrow or as broad as the level of activity to which they apply and must follow logically from organizational goals and objectives

-        A final aspect of establishing standards is to identify performance indicators.

-        Performance measurement is a constant, ongoing activity for most organizations.

-        For control to be effective, performance measures must be valid.

-        Daily, weekly, and monthly sales figures measure sales performance, and production performance may be expressed in terms of unit cost, product quality, or volume produced.

-        Performance may be higher than, lower than, or identical to the standard.

-        In some cases, comparison is easy.

-        Sometimes, however, comparisons are less clear-cut.

-        If performance is lower than expected, the question is how much deviation from standards to allow before taking remedial action.

-        Decisions regarding corrective action draw heavily on a manager’s analytic and diagnostic skills.

Focuses on the processes the organization use to transform resources into products or services

-        Attempts to monitor the quality or quantity of financial, physical, human, and information resources before they actually become part of the system

-        concentrates on the resources—financial, material, human, and information—the organization brings in from the environment

-        focuses on meeting standards for product or service quality or quantity during the actual transformation process itself

-        Relies heavily on feedback processes during the transformation process

-        Monitors the outputs or results of the organization after the transformation process is complete

-        may be an effective method of control, primarily if a product can be manufactured in only one or two steps or if the service is fairly simple and routine

-        may not be as effective as preliminary or screening control alone, it can provide management with information for future planning

        Concerned with the organization’s financial resources

   A plan expressed in numerical terms

-        indicates where the organization expects to get its cash for the coming time period and how it plans to use it

-        concerned with planned operations within the organization

-        simply a budget expressed in nonfinancial terms, such as units of output, hours of direct labor, machine hours, or square-foot allocations

  Traditionally, budgets were developed by top management and the controller and then imposed on lower-level managers.

  a profile of some aspect of an organization’s financial circumstances

  lists the assets and liabilities of the organization at a specific point in time, usually the last day of an organization’s fiscal year

-        summarizes financial performance over a period of time, usually one year

o   indicate how liquid (easily converted into cash) an organization’s assets are.

reflect ability to meet long-term financial obligations.

show managers and investors how much return the organization is generating relative to its assets.

o   help estimate the organization’s ability to cover interest expenses on borrowed capital.

o   indicate the effectiveness of specific functional areas rather than that of the total organization.

  independent appraisals of an organization’s accounting, financial, and operational systems

  ­calculation of one or more financial ratios to assess some aspect of the financial health of an organization

Organizations can create designs for themselves that result in very different approaches to control.

approach to organization design characterized by formal and mechanistic structural arrangements

an approach to organizational control characterized by informal and organic structural arrangements

  Control aimed at ensuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals

Trying to control too many details becomes problematic when control affects employee behavior and employees perceive control attempts as unreasonable.

The control system may be too narrow or it may focus too much on quantifiable variables and leave no room for analysis or interpretation.

Rewarding operational inefficiency can lead employees to behave in ways that are not in the best interests of the organization.

Efficient controls are resisted by poorly performing employees

-        The control system itself must be flexible enough to accommodate change.

-        Managers make a surprisingly large number of decisions based on inaccurate information.

-        does not necessarily mean quickness

  The control system should provide information that is as objective as possible.

Control should be linked with planning.