CCT112 Quiz 2 Flashcards
(213 cards)
1
Q
Planning
A
Management function:
- setting goals
- establishing strategies for achieving those goals
- developing plans to integrate and coordinate work activities
2
Q
Four Purposes of Planning
A
- providing direction
- reducing uncertainty
- minimizing waste and redundancy
- establishing the goals or standards used in controlling
3
Q
Planning can be Formal and Informal
A
- Smaller businesses often use informal planning
- little is verbalized or written down
- the planning is general and lacks continuity
4
Q
Formal Planning
A
- specific, time-oriented goals
- goals written and shared
5
Q
Criticism of Formal Planning
A
- may create rigidity
- can’t replace intuition and creativity
- focuses attention on today’s success, not tomorrow’s survival
- reinforces success (what already works), which may lead to failure (limits innovation)
6
Q
does it pay to plan?
A
YES
7
Q
Planning-performance relationship
A
Formal planning is associated with positive financial performance
- higher profits
- a higher return on assets
- improved quality of planning
- appropriate implementation
8
Q
Objectives
A
desired outcomes for individuals, groups, or the entire organization
- provide management with direction and serve as a means to measure progress
9
Q
Stated Objectives
A
Official statements of what the organization wants the public to believe
10
Q
Real Objectives
A
Objectives that the organization actually pursues
11
Q
Goals (objectives)
A
desired outcomes or targets
12
Q
Plans
A
documents that outline how goals are going to be met: resource allocations, schedules, etc.
13
Q
Strategic plans
A
plans that apply to the entire organization and establish the organization’s overall goals
14
Q
Operational plans
A
plans that encompass a particular operational area of the organization
15
Q
Long-term plans
A
plans with a time frame beyond three years
16
Q
Short-term plans
A
plans covering one year or less
17
Q
Specific plans
A
plans that are clearly defined and leave no room for interpretation
18
Q
Directional plans
A
plans that are flexible and set out general guidelines
19
Q
Single-use Plans
A
a one-time plan specifically designed to meet the needs of a unique situation
- Budgets
- Project reports
20
Q
Standing Plans
A
ongoing plans that guide activities performed repeatedly
- Policies
- Rules and regulations
21
Q
Contingency Factors in Planning
A
- level in the organization
- degree of environmental uncertianty
- contingency factors in planning
- Tesla commits to producing electric cars for decades into the future
22
Q
Approaches to Planning
A
- Top-down traditional approach
- Development by organizational members
23
Q
Traditional Objective Setting
A
- setting objectives in which top managers set objectives
- flow down through the organization
- become subgoals for each organizational area
24
Q
Management by objectives (MBO)
A
- setting mutually agreed-upon goals
- using those goals to evaluate employee performance
25
Well-Written Goals
- written in terms of outcomes rather than actions
- measurable and quantifiable
- clear as to a time frame
- challenging yet attainable
- written down
- communicated to all necessary organizational members
26
Steps in Goal Setting
- Review the organization’s mission and employees’ key job tasks.
- Evaluate available resources.
- Determine the goals individually or with input from others.
- Make sure goals are well written and communicate to all who need to know.
- Build feedback mechanisms to assess goal progress.
- Link rewards to goal attainment.
27
How Can Managers Plan Effectively in Dynamic Environments?
- Develop plans that are specific but flexible
- Keep planning even when the environment is uncertain
- Allow lower organizational levels to set goals and develop plans
28
How Can Managers Use Environmental Scanning?
- Environmental scanning
- Competitive intelligence
29
Environmental scanning
screening information to detect emerging trends
30
Competitive intelligence
- gathering information about competitors
- allows managers to anticipate competitors’ actions rather than reacting to them
31
Black Swan Events
- events that come as a surprise
- have a major effect
- are often inappropriately rationalized after the fact
32
Business intelligence
(digital tools)
data that managers can use to make more effective strategic decisions
33
Digital tools
technology, systems, or software that allow the user to collect, visualize, understand, or analyze data
34
Social Media
(digital tools)
Facebook, LinkedIn, Twitter, and other social media sites are becoming increasingly important places to extract competitive intelligence
35
Virtual Reality
(digital tools)
A three-dimensional, interactive, computer-generated experience that occurs within a simulated environment.
36
Organizational change
any alteration of people, structure, or technology in an organization
37
Change Agent
someone who acts as a catalyst and assumes the responsibility for managing the change process
38
VUCA
(volatility, uncertainty, complexity, and ambiguity)
- volatility, uncertainty, complexity, and ambiguity
- change is the only constant
- managers must deal with that reality
39
External Forces for Change
- Consumer needs and wants
- New governmental laws
- Technology
- Economy
40
Internal Forces for Change
- New organizational strategy
- Composition of workforce
- New equipment
- Employee attitudes
41
Calm Waters Metaphor
- Unfreezing the status quo
- Changing to a new state
- Refreezing to make the change permanent
42
White-Water Rapids Metaphor
- lack of environmental stability and predictability
- requires that managers and organizations continually adapt
- manage change actively to survive
43
Managers Focus on 4 Main Areas of Change
- Strategy
- Structure
- Technology
- People
44
Strategy
(Types of Change)
- Failure to change strategy when circumstances dictate could undermine a company’s success.
- Competition can dictate a change in strategy.
- Organizations that don’t recognize a need to change strategy may not survive in the long run.
45
Structure
(types of change)
- Changing structural components
- Changing structural design
46
Technology
(types of change)
- New equipment, tools, or methods
- Automation
- Computerization
47
People
(types of change)
Organizational development
- change methods that focus on people and the nature and quality of interpersonal work relationships
48
Why do People Resist Change?
- Uncertainty
- Habit
- Fear of loss
- Belief change is inconsistent with goals of organization
49
Reducing Resist to Change
- Education and communication
- Participation
- Facilitation and support
- Negotiation
- Manipulation and co-optation
- Coercion
50
Changing an organization's Culture
- organization’s culture is made up of relatively stable and permanent characteristics
- tends to make it very resistant to change
- cultures can be changed even if the process is difficult.
51
Understanding Situational Factors
Conditions that facilitate change:
- dramatic crisis occurs
- leadership changes hands
- organization is young and small
- culture is weak
52
Changing Culture
- Set the tone through management behaviour
- new stories, symbols, and rituals
- Redesign socialization processes
- change the reward system
- specified expectations
- Shake up current subcultures
- employee participation
53
Creativity
the ability to combine ideas in a unique way or to make unusual associations between ideas
54
Innovation
taking creative ideas and turning them into useful products or work methods
55
Stimulating Innovation
- foundation of many of the world’s most successful organizations
- The top five innovative firms are Apple, Netflix, Square, Tencent, and Amazon.
56
3 innovation variables are important:
human resources, structural variables and cultural variables.
57
Disruptive Innovation
- Innovations in products, services, or processes
- radically change an industry’s rules of the game
58
Sustaining Innovation
small and incremental changes in established products rather than dramatic breakthroughs
59
Who's Vulnerable?
- Large, established, and highly profitable organizations are most vulnerable to disruptive innovations:
- have the most to lose
- are most vested in their current markets and technologies.
60
Skunk Works
- A small group in a large organization
- a high degree of autonomy unhampered by corporate bureaucracy
- mission is to develop a project for radical innovation
61
Strategic Management
what managers do to develop the organization’s strategies
62
Strategies
- plans for how the organization will do what it’s in business to do
- how it will compete successfully
- how it will attract and satisfy its customers to achieve its goals
63
Business Model
how a company is going to make money
64
Why is Strategic Management Important?
- positive impact on performance
- Helps managers decide how to act in face of change and uncertainty
- Helps complex and diverse organizations work together
65
Opportunities
positive trends in the external environment
66
Threats
negative trends in the external environment
67
Strategic Management Process
1: Identifying the Organization’s Current Mission, Goals, and Strategies
2: External Analysis
3: Internal Analysis - (SWOT Analysis)
4: Formulating Strategies
5: Implementing Strategies
6: Evaluating Results
68
1: Identifying the Organization’s Current Mission, Goals, and Strategies
(Strategic Management Process)
Mission: the purpose of an organization
- A mission statement can be too limiting.
69
2: Doing an External Analysis
(Strategic Management Process)
- Opportunities: positive trends in the external environment
- Threats: negative trends in the external environment
70
3: Doing an Internal Analysis
(Strategic Management Process)
- Resources: an organization’s assets that are used to develop, manufacture, and deliver products to its customers
- Capabilities: an organization’s skills and abilities in doing the work activities needed in its business
- Core competencies: the organization’s major value-creating capabilities that determine its competitive weapons
- Strengths: any activities the organization does well or its unique resources
- Weaknesses: activities the organization does not do well or resources it needs but does not possess
71
SWOT Analysis
an analysis of the organization’s strengths, weaknesses, opportunities, and threats
72
4: Formulating Strategies
(Strategic Management Process)
3 main types of strategies managers will formulate:
- Corporate
- Competitive
- Functional
73
5: Implementing Strategies
(Strategic Management Process)
- performance will suffer if the strategies aren’t implemented properly
74
6: Evaluating Results
( Strategic Management Process)
- How effective have strategies been at helping the organization achieve its goals
- What adjustments are necessary?
75
Corporate Strategy
- an organizational strategy that determines what businesses a company is in or wants to be in
- what it wants to do with those businesses
76
Growth Strategy
(corporate strategy)
A corporate strategy that’s used when an organization wants to expand the number of markets served or products offered, either through its current business(es) or through new business(es)
- Concentration: focuses on its primary line of business (e.g. Nike, MacDonald’s)
- Vertical integration: backward, forward, or both (e.g.: Walmart).
- Horizontal integration: combining with competitors (e.g.: Facebook and Instagram).
- Diversification: related or unrelated industries (Tata Group).
77
Stability Strategy
(corporate strategy)
a stability strategy in which an organization continues to do what it is currently doing”
- (Airbus)
78
Renewal Strategy
(corporate strategy)
a renewal strategy designed to address declining performance:
- Retrenchment: e.g.: Ford exit of the Indian market in 2019
- Turn around: e.g.: Rebranding and Innovation
79
BCG Matrix
- guides resource allocation decisions based on market share and growth rate of SBUs
80
How to Create a BCG Matrix
1: choose the unit of analysis: business unit, brands, products or the firm.
2: Define the market that fits the unit of analysis: (luxury market, retail, wholesale)
3: Determine the relative market share of the unit of analysis:
Relative Market Share = Unit sales this year/Leading rival’s sales this year
4: Find out the market growth rate
Unit’s sales this year – Unit’s sales last year)/Unit’s sales last year
81
Competitive Strategy
An organizational strategy for how an organization will compete in its business(es)
82
Strategic Business Unit (SBU)
The single independent businesses of an organization that formulate their own competitive strategies
83
Competitive Advantage
What sets an organization apart; its distinctive edge
84
What Competitive Advantage Can Stem From
- Quality
- Low cost
- Technology
- Other factors
85
Economic Moat
(sustaining competitive advantage)
WARREN BUFFET
Sustaining competitive advantage by protecting long-term profits and market share using various means.
86
Cost Leadership Strategy
(competitive strategy)
Lowest costs (costs or expenses, not prices).
87
Differentiation Strategy
(competitive strategy)
Exceptionally high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image.
88
Focus Strategy
(competitive strategy)
niche/segment based on product variety, customer type, distribution channel, or geographical location
89
Stuck in the Middle
(competitive strategy)
not able to follow low cost or differentiate its products
90
Functional Strategy
- strategy used by an organization’s various functional departments to support the competitive strategy
91
Differentiation Strategies
-Quality
Innovation strategies
- Transfer technology from one division to another
- Invest in R&D
- Improve the process
- First mover: an organization that’s first to bring a product innovation to the market or to use a new process innovation
92
Entripenureship
the process of starting new businesses, generally in response to opportunities
93
Entrepreneurial Ventures
- organizations that pursue opportunities
- characterized by innovative practices
- have growth and profitability as their main goals
94
Small Business VS Entrepreneurship
- organization that is independently owned, operated and financed.
- owners see risk where as entrepreneurs see opportunity.
- Entrepreneurs want to change the world and have a passion beyond profits.
95
Self-employment
Individuals who work for profit or fees in their own business, profession, trade, or farm
96
Why is Entrepreneurship Important
- Innovation
- Economic growth
- Job creation
- Global entrepreneurship
97
Entrepreneurial Process
1. Explore the entrepreneurial context
2. Identify opportunities and possible competitive advantages
3. Start the venture
4. Manage the venture
98
What do Entrepreneurs do?
No two entrepreneurs are the same. Generally, they:
- Create something new and different
- Search for, respond to, and exploit change
- Research feasibility
- Launch and manage new ventures
99
Hybrid Pathway to Entrepreneurship
Over half of new-venture start-ups fail in the first four years.
One way to increase the odds of success is to keep your day job and start the venture on the side.
- Lets you test ideas with less pressure to make a living.
- It’s a lower-risk path with higher survival rates.
100
Environmental Opportunities and Competitive Advantage
Sources of opportunity:
- The Unexpected
- The incongruous
- The process need
- Industry and market structures
- Demographics
- Changes in perception
- New knowledge
101
Researching the Venture’s Feasibility—Ideas
When exploring idea sources, entrepreneurs should look for:
- Limitations of what is currently available
- New and different approaches
- Advances and breakthroughs
- Unfilled niches
- Trends and changes
102
Feasibility Study
an analysis of the various aspects of a proposed entrepreneurial venture designed to determine its feasibility
103
Venture Capalists
external equity financing provided by professionally managed pools of investor money
(Shark Tank)
104
Angel Investors
- private investor (or group of private investors)
- offers money to entrepreneurial venture in return for equity in the venture
105
Initial Public Offering (IPO)
the first public registration and sale of a company’s stock
106
Business Plan
- a written document that summarizes a business opportunity
- defines and articulates how the identified opportunity is to be seized and exploited
107
Business Plan - Major Areas
- Executive summary
- Analysis of opportunity
- Analysis of the context
- Description of the business
- Financial data and projections
- Supporting documentation
108
Organizing
- management function
- arranging and structuring work to accomplish the organization’s goals
109
Organizational Structure
formal arrangement of jobs within an organization
110
Organizational Chart
the visual representation of an organization’s structure
111
Organrganizational Design
creating or changing an organization’s structure
112
Purpose of Organizing
- Divides work to be done into specific jobs and departments.
- Assigns tasks and responsibilities associated with individual jobs.
- Coordinates diverse organizational tasks.
- Clusters jobs into units.
- Establishes relationships among individuals, groups, and departments.
- Establishes formal lines of authority.
- Allocates and deploys organizational resources.
113
Work Specilizaiton
dividing work activities into separate job tasks
114
Departmentalization
The basis by which jobs are grouped together
115
Cross-functional teams
-A work team made of individuals from various functional specialties
-has become more popular as tasks become more complex
116
Customer departmentalization
emphasizes monitoring and responding to customers’ needs
117
Chain of Command
- the line of authority extending from upper organizational levels to the lowest levels
- clarifies who reports to whom
118
Authority
- the rights inherent in a managerial position to tell people what to do and to expect them to do it
119
Line Authority
- authority that entitles a manager to direct the work of an employee
120
Staff Authority
- positions with some authority
- have been created to support, assist, and advise those holding line authority
121
Responsibilities
the obligation or expectation to perform any assigned duties
122
Unity of Command
The management principle that each person should report to only one manager
123
Span of Control
the number of employees a manager can efficiently and effectively manage
124
Centralization
the degree to which decision making is concentrated at upper levels of the organization
125
Decentralization
the degree to which lower-level employees provide input or actually make decisions
126
Employee Empowerment
giving employees more authority (power) to make decisions
127
formalization
- how standardized an organization’s jobs are
- the extent which employee behaviour is guided by rules and procedures
128
Mechanistic Organization
an organizational design that’s rigid and tightly controlled
129
Organic Organization
an organizational design that’s highly adaptive and flexible
130
Weakness of Mechanistic Structure
- Slow moving
- Internally-focused
- Disempowering
- Little room for creativity
131
Weakness of Organic (emergence) Structure
- Not enough clarity on where to focus effort
- Too much freedom to experiment, too few boundaries
- Lack of supporting systems
132
Bureaucratic vs Organic Structures
- Bureaucracy and Organic or Emergence are opposing principles for how coordination is achieved in organizations
- There are benefits and costs to both, so many companies end up moving back and forth
- There are also hybrid models available that seek to get the “best of both worlds”
Capacity refers to the degree where an environment can support growth.
- Volatility refers to the level of unpredictable change.
- Complexity refers to the degree of heterogeneity and concentration among environmental elements.
133
Simple Strategy
Simple Structure
134
Elaborate Strategy
=
more complex structure
135
Unit Production
(tech & structure)
the production of items in units or small batches
136
Mass Production
(tech & structure)
the production of items in large batches
137
Process Production
(tech & structures)
the production of items in continuous processes
138
Environmental Uncertainty and Structure
- stable and simple environments, mechanistic designs can be more effective.
- The greater the uncertainty, the more an organization needs the flexibility of an organic design.
139
Simple Structure
organizational design
- little departmentalization
- wide spans of control
- centralized authority
- little formalization
140
functional structure
an organizational design that groups together similar or related occupational specialties
141
Divisional Structure
An organizational structure made up of separate, semiautonomous units or divisions
142
team structure
An organizational structure in which the entire organization is made up of work teams
143
matrix structure
an organizational structure that assigns specialists from different functional departments to work on one or more projects
144
project structure
an organizational structure in which employees continuously work on projects
145
virtual organization
- consists of a small core of full-time employees
- outside specialists are temporarily hired as needed to work on projects
- sometimes called “Network” or “Modular” organization
146
Telecommuting
- work arrangement where employees work at home
- are linked to the workplace by computer
147
compressed workweek
a workweek where employees work longer hours per day but fewer days per week
148
flextime (flexible work hours)
- a scheduling system where employees are required to work a specific number of hours a week
- are free to vary those hours within certain limits
149
job sharing
the practice of having two or more people split a full-time job
150
contingent workers
- temporary, freelance, or contract workers
- employment is contingent on demand for their services
151
group
two or more interacting and interdependent individuals who come together to achieve specific goals
- Formal groups
- Informal groups
152
forming
(stages of development)
- first stage of group development
- people join the group and then define the group’s purpose, structure, and leadership
153
storming
(stages of development)
- second stage of group development
- characterized by intragroup conflict
154
norming
(stages of development)
- third stage of group development
- characterized by close relationships and cohesiveness
155
performing
(stages of development)
- fourth stage of group development
- group is fully functional and works on group task
156
adjourning
(stages of development)
- final stage of group development for temporary groups
- group members are concerned with wrapping up activities rather than task performance
157
external conditions imposed on group
- Organization's strategy
- Authority relationships
- Formal rules and regulations
- Availability of resources
- Employee selection criteria
158
group member resources
Knowledge
Abilities
Skills
Personality traits
159
group structure
- role
- norms
- conformity
- groupthink
- status systems
- status
- group size
- social loafing
- group cohesiveness
160
role
(group structure)
behavior patterns expected of someone occupying a given position in a social unit
161
norms
(group structure)
standards or expectations that are accepted and shared by a group’s members
162
conformity: groupthink
(group structure)
- a group puts a lot of pressure on an individual to align his or her opinion with others’ opinions
163
status systems: status
(group structure)
a prestige grading, position, or rank within a group
164
group size: social loafing
(group structure)
- individuals give less effort when working collectively than when working individually
165
group cohesiveness
(group structure)
- group members are attracted to one another and share the group’s goals
166
group process: decision making
(POSITIVE)
- Generate more complete information and knowledge
- Increase acceptance of a solution
- Increase legitimacy
167
group process: decision making
(NEGATIVE)
- Take more time
- A dominant minority can unduly influence the outcome; groupthink
- Individual responsibilities are ambiguous
168
conflict
perceived incompatible differences that result in interference or opposition
169
traditional view of conflict
the view that all conflict is bad and must be avoided
170
human relations view of conflict
the view that conflict is a natural and inevitable outcome in any group
171
Interactionist view of conflict
the view that some conflict is necessary for a group to perform effectively
172
functional conflicts
Conflicts that support a group’s goals and improve its performance
173
dysfunctional conflicts
conflicts that prevent a group from achieving its goals
174
task conflict
conflict over content and goals of the work
175
relationship conflict
conflict based on interpersonal relationships
176
process conflict
conflict over how work gets done
177
work teams
- members work intensely on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills
178
problem solving teams
(types of work teams)
- from the same department or functional area
- involved in efforts to improve work activities or to solve specific problems
179
self-managed work teams
(types of work teams)
- operates without a manager
- is responsible for a complete work process or segment
180
cross-functional work teams
(types of work teams)
a work team composed of individuals from various functional specialties
181
virtual teams
(types of work teams)
- uses technology to link physically dispersed members to achieve a common goal
182
creating effective work teams
- Clear goals
- Relevant skills
- Mutual trust
- Unified commitment
- Good communication
- Negotiating skills
- Appropriate leadership
- Internal and external support
183
building team skills
- managers must view their role as more of being a coach and developing team members
- creates more committed, collaborative, and inclusive teams
184
motivation
person’s efforts are energized, directed and sustained toward attaining a goal
- Energy
- Direction
- Persistence
185
McGregor's Theory X
- Little ambition
- Dislike work
- Avoid responsibility
- Must be closely controlled
186
McGregor's Theory Y
- Enjoy work
- Seek and accept responsibility
- Exercise self-direction
187
McClelland's 3 Needs Theory
- Need for achievement
- Need for power
- Need for affiliation
188
goal setting hteory
- Working toward a goal is a major source of job motivation
- Specific and challenging goals are superior motivating forces.
189
influences on goal-performance relationship
- Feedback
- Goal commitment
- Adequate self-efficacy
- National culture
190
job design and motivation
get internal rewards when an employee learns that they performed well on a task they care about.
191
country culture & motivation
Managers can’t assume that motivational programs that work in one geographic location are going to work in others.
192
cross-cultural differences
- Equity theory has strong following in the United States
- In collectivist cultures, employees expect outcomes to be greater than their inputs
- Growth, achievement, and responsibility are top three outcomes and had identical rankings
- Intrinsic factors identified by Herzberg in his two-factor theory are to some degree universal.
193
diverse motivation methods
- Men and women preferences
- Opportunities to learn
- Independence and varied experiences
- Open Books
- Employee recognition programs
194
leader
- someone who can influence others
- who has managerial authority
195
leadership
- leading a group and influencing that group to achieve its goals
196
theories of leadership
- the person
- the behaviours
197
Big 5 Traits
- Extraversion has strongest relation to leadership
- Conscientiousness and openness to experience also strongly relate to leadership
198
Emotional Intelligence (IE) and leadership
EI contributes to emergence of leaders
199
What traits do leaders have?
- drive
- desire to lead
-honesty and integrity
200
what traits do leaders have
- drive
- desire to lead
- honesty and integrity
- self-confidence
- intelligence
- job-relevant knowledge
- extraversion
- proneness to guilt
201
contingency theories of leadership
- Fiedler’s Model
- Hersey-Blanchard Situational theory
- Leader-participation
- Path-goal
202
Fiedler leadership model
(natural leadership style)
- The more positively you rate your least preferred coworker on various criteria, the more relationship-oriented you are
- The less favourably you rate them on the same criteria, the more task-oriented you are:
- If you’re a high LPC leader, you’re a relationship-oriented leader
- If you’re a low LPC leader, you’re a task-oriented leader
203
Fiedler leadership model
(situational favorableness)
determined by three variables:
- leader-member relations: Does your team trust you as a leader?
- task structure: Refers to the clarity of the tasks required to complete a project
- position power: The authority you have over your team as a leader
204
situational leadership
Situational leadership theory (SLT): successful leadership depends on selecting the right leadership style, contingent on the followers’ readiness to accomplish a task and their development level
- Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions:
- Telling: high task–low relationship leadership
- Selling: high task–high relationship leadership
- Participating: low task–high relationship leadership
- Delegating: low task–low relationship leadership
205
path goal theory
- leadership contingency theory
- leader’s job is to assist followers in reaching their goals & provide direction or support needed ensuring goals are compatible with those in the group
- Developed by Robert House, according to who, a leader’s style depends on the situation:
- Directive
- Supportive
- Participative
- Achievement-oriented
206
4 path-goal theories
- Directive leadership
- Supportive leader
- Participative leader
- Achievement-oriented leader
207
directive leadership
(4 path-goal theories)
-leader lets employees know what’s expected of them
- schedules work to be done
- gives specific guidance on how to accomplish tasks
208
supportive leadership
(4 path-goal theories)
leader shows concern for the needs of followers and is friendly
209
participative leader
(4 path-goal theories)
- leader consults with group members
- uses their suggestions before making a decision
210
achievement-oriented leader
- leader sets challenging goals
- expects followers to perform at their highest level
211
leader-member exchange theory
- leaders create in-groups and out-groups
- those in the in-group will have higher performance ratings, less turnover, and greater job satisfaction
212
transactional leaders
lead primarily by using social exchanges (or transactions)
213
transformational leaders
Stimulate and inspire (transform) followers to achieve extraordinary outcomes
