4. Managing People Performance

Question 1

What is the psychological contract?

Answer 1

The unwritten agreement between an employee and their employer that describes the informal commitments, expectations and understanding that make up their relationship.

Question 2

What are the commitments on the part of the employee in regards to the psychological contract?

Answer 2

To be honest, work hard, be loyal and develop their skills.

Question 3

What are the commitments on the part of the employer in regards to the psychological contract?

Answer 3

To treat employees with respect, to provide job security, to give opportunity for development and promotion

Question 4

What is power?

Answer 4

The ability to get something done

Question 5

What are the 5 categories of power?

Answer 5

1. Legitimate (position)
2. Referent (charisma)
3. Expert (skill)
4. Reward
5. Coercive (penalise)

Question 6

What is authority?

Answer 6

The right to do something

Question 7

What are the 3 categories of authority?

Answer 7

1. Traditional
2. Rational-Legal
3. Charismatic

Question 8

What is delegation?

Answer 8

The passing of authority to another party but NOT the responsibility

Question 9

What are the 4 types of delegation?

Answer 9

1. Consultation
2. Explanation
3. Abdication
4. Custom and practise

Question 10

What are Koontz and O’Donnell’s 3 conditions for effective delegation?

Answer 10

1. Clear definition of subordinates authority
2. Evidence of sufficient competence
3. Not constantly checking on the subordinate

Question 11

What is responsibility?

Answer 11

The obligation an individual has to fulfil a task that they have been given

Question 12

What is accountability?

Answer 12

The holding of an individual to account for the completion of tasks allocated to them

Question 13

What is empowerment?

Answer 13

Transferring power to those actually involved in completing a task and giving the freedom to make decisions

Question 14

What are 5 interlinking initiatives that often happen alongside empowerment?

Answer 14

1. Flexibility
2. Reduced Hierarchy
3. Fewer middle managers
4. Reduced Bureaucracy
5. Willingness to embrace trust and less control

Question 15

What is bureaucracy?

Answer 15

Where power is defined precisely by the rules that governs actions, with formal processes and hierarchies

Question 16

What did Weber state about Bureaucracy?

Answer 16

It is inevitable as companies grow

Question 17

What is Fayol’s theory of management? (5 functions)

Answer 17

1. Planning
2. Organising
3. Commanding
4. Co-ordinating
5. Controlling

Question 18

What was Taylor’s theory of management?

Answer 18

Scientific - every task had a scientific, best way to do it and a best person for the job

Question 19

What was Trist and Bamforth’s contribution to management theory?

Answer 19

Findings that showed that Taylorism lead to individuals being ignored, poor communication and bad feelings towards management

Question 20

What was Mayo’s contribution to management theory?

Answer 20

The ‘Hawkthorne’ effect where people have a change in behaviour or performance with increased attention

Question 21

What is the contingent theory classification of management theories?

Answer 21

There is no best way, and the effectiveness of management practices will be determined by the circumstances in which they operate in

Question 22

What was Burns and Stalkers contribution to management theory?

Answer 22

Drew a distinction between mechanistic and organic organisation

Question 23

What are the 3 roles Mintzberg defined for a manager?

Answer 23

1. Interpersonal (Figurehead, Leader, Liaison)
2. Informational (Monitoring environment, spokesperson, disseminator)
3. Decisional (Entrepreneur, disturbance handler, resource allocator, negotiator)

Question 24

What is the original, but now relatively defunct, theory of leadership?

Answer 24

Trait Theories

Question 25

What was Adair’s theory of leadership?

Answer 25

The most important task of a manager will depend on the situation the manager faces. Effective leadership depends on identifying the priority at a particular time and taking action to deal with the priority

Question 26

What was Fiedler’s theory of leadership?

Answer 26

A leaders effectiveness is based on situational contingency that is a result of two factors, known as ‘leadership style’ and ‘situational control’

Question 27

When is a leader with a human relations (high LPC score) orientation useful?

Answer 27

When: 1. Leader-member relations are good 2. The task is unstructured 3. Position power is weak

Question 28

When is a leader with a task orientation useful?

Answer 28

In a crisis/uncertain situation, where the leader-member relation is poor, the task is unstructured and the position power is weak

Question 29

What was Hershey and Blanchard’s contribution to leadership theory?

Answer 29

The manager-subordinate relationship is based on three main issues: 1. Task behaviour 2. Relationship behaviour 3. Level of maturity

Question 30

What are Hershey and Blanchard’s 4 levels of maturity?

Answer 30

1. M1 (lack the skills for the job and unwilling to take responsibility) 2. M2 (lack the skills but willing to try) 3. M3 (have the skills, but not confident to take responsibility) 4. M4 (willing and able to do the task and have confidence to take on responsibility)

Question 31

What are Hershey and Blanchard’s 4 leadership styles?

Answer 31

1. Telling (for M1 maturity) 2. Selling (for M2 maturity) 3. Participating (for M3 maturity) 4. Delegating (for M4 maturity)

Question 32

What was Bennis’ contribution to leadership theory?

Answer 32

The key to competitive advantage is the organisation’s capacity to create an environment capable of generating intellectual capital

Question 33

What are Bennis’ 7 qualities of a good leader?

Answer 33

1. Technical Competence 2. Conceptual Skill 3. Track Record 4. People Skills 5. Taste 6. Judgement 7. Character

Question 34

What does Bennis’ state are the 4 things followers need from a leader?

Answer 34

1. Meaning or direction 2. Trust in and from the leader 3. A sense of hope and optimism 4. Results

Question 35

What are the two elements in Blake and Moulton’s managerial grid?

Answer 35

1. Concern for people 2. Concern for task

Question 36

What are the 5 points in Blake and Moulton’s managerial grid?

Answer 36

1. Country Club 2. Impoverished 3. Middle of the Road 4. Team 5. Task Manager

Question 37

What are the 4 criticisms of Blake and Moulton’s managerial grid?

Answer 37

1. High concern for staff is not necessarily ideal 2. Difficult to place managers accurately on the grid due to perception 3. Behaviour may be difficult to change 4. May be useful to assign managers with different and complementary strengths to a team

Question 38

What is the Transactional leadership view? (Burns)

Answer 38

Manager-Subordinate relationships are transactions

Question 39

What is the Transformational leadership view? (Boyd)

Answer 39

Managers should inspire and motivate subordinates to provide more than basic service and compliance. Useful when there is significant change

Question 40

What is distributed leadership?

Answer 40

Distributed leadership advocates leadership at all levels in the organisation, not just at the top

Question 41

What were Skryme’s two principles in relation to leading in virtual companies?

Answer 41

1. Culture Issues (need for mutual support and high trust) 2. Practical Matters

Question 42

What are the 5 fundamental principles of the IFAC code that leaders should follow?

Answer 42

1. Confidentiality 2. Integrity 3. Professional Behaviour 4. Objectivity 5. Professional Competence and Due Care

Question 43

What are the 5 personal qualities required of an accountant?

Answer 43

1. Courtesy 2. Timeliness 3. Reliability 4. Responsibility 5. Respect

Question 44

What are the 4 professional qualities required of an accountant?

Answer 44

1. Scepticism 2. Accountability 3. Social Responsibility 4. Independence