Ch. 9-10 Flashcards
(29 cards)
Leadership
Processes and behaviors used by someone such as a manager to motivate, inspire, and influence the behaviors of others
Management vs. Leadership
Management
-planning, organizing, controlling
Leadership
-Inspiring, monitoring, aligning
Decision making
Choosing one alternative from among several options
Decision-making process
Recognizes and defines the nature of a decision situation
Identifies alternatives
Chooses the most effective alternative
Programmed Decisions
Decision that is relatively structured or recurs with frequency (sometimes both)
Ex. Starbucks baristas using exact procedure for brewing coffee
Non-Programmed Decisions
Decisions that are relatively unstructured and that occur with low frequency
Treat each decision as unique and invest time, energy, and resources into exploring all sides of the situation
State of Certainty
When the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative
Few organizational decisions are made with true certainty
State of Risk
When the availability of each alternative and its potential payoffs and costs are all associated with probability estimates
Managers must estimate probabilities associated with each alternative
Accompanied with chances of a bad decision
State of Uncertainty
When the decision maker does not know all the alternatives, the risks associated with each, or the likely consequence of each alternative
Intuition, judgement, and experience are important
Steps for Rational Decision Making
- Define problem
- Identifying all criteria
- Develop alternatives
- Analyze alternatives/consequences
- Implementing the chosen alternative and evaluating the results
Rational Choice Theory
Assumes human behavior is guided by instrumental reason
Able to compare alternatives with perfect info
Aware of all possible choices
Coalitions
An informal alliance of individuals or groups formed to achieve a common goal
Often a preferred decision alternative
Lobbyists
Coalitions that attempt to persuade lawmakers to make decisions favorable to their interests
May donate money to politicians to pursue their agendas
Intuition
Innate belief about something, often without conscious consideration
Escalation of Commitment
Conditions in which a decision maker becomes so committed to a course of action that they stay with it even when it appears to be wrong
Risk Propensity
Extent to which a decision maker is willing to gamble when making a decision
Innovation
Ability to apply creative solutions to problems and opportunities to enhance or enrich people’s lives
Creativity
Ability to develop new ideas
Discover new ways to look at a problem
Drivers of Innovation
- Increasing world competition
- Technological Advances
- Changing customer needs
- Shortening Product life cycle
Seven sources of innovation
- Unexpected
- Incongruity
- Innovation based on process need
- Changes in industry structure or market structure
- Demographic
- Changes in perception, mood, meaning
- New Knowledge
Unexpected (Sources of Innovation)
Unexpected Success
Unexpected Failure
-Post-it note
Unexpected outside event
-Global Warming
Incongruity (Sources of Innovation)
Between what ACTUALLY happens and what was SUPPOSED to happen
- Between different economic realities
- Between industry realities and assumptions
- Between industry effort, values and expectations of customers
- Internal logic of a process
Innovation based on process need (Sources of Innovation)
Inadequacy in underling processes
“Necessity is the mother of invention”
-Starbucks on the go
Changes in industry or market structure (Sources of Innovation)
Uber, Virtual Reality, Facebook (ownership)
