Chapter 8 Flashcards
(18 cards)
Efficient market school
It´s when prices reflect all available public information.
Inefficient market school
It´s when prices don´t reflect all available information
International fisher effect (IFE)
Assumes that nominal interest rate differentials determinate exchange rates. The interest rate before taking inflation into account.
Predicts that currencies with low interest rates will appreciate relative to currencies with high interest rates
Strategic leadership
Behavior that gives purpose and meaning to organizations, envisioning, and creating a positive future
Sources of power
- Legitimate
- Reward
- Coercive
- Referent
- Expert
Legitimate
Right to tell others what to do.
Reward
Controls with valued rewards.
Coercive
Controls with punishments.
Referent
Compliance based on a desire for approval.
Expert
Compliance based on gaining from expertise.
Some reasons why visions fail
- Vision ignores stakeholders’ needs.
- Vision becomes outdated.
- Vision reflects leader’s personal needs
Categories of Leadership Behavior
- Task performance.
- Group maintenance behaviors.
- Participation in decision making.
Personal Attributes that Aid Leader Effectiveness
Drive, Integrity, Self-confidence,
Knowledge of business and Leadership Motivation.
Leader
Someone who guides, influences, and motivates a group of people to achieve a goal
Charismatic leader
A person who is dominant, self-confident, convinced of the moral righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers.
Transformational leader
Motivate people to transcend their personal interests for the good of the group
Transactional leaders
Leaders who manage through transactions, using their
legitimate, reward, and coercive powers, to give commands and exchange rewards for services rendered.
Power
Is central to effective leadership. Is the ability to influence others.
