1: Traditional Theories of Management & Leadership

acceptance view of authority
management concept that is evident in organizations when an employee considers a request by the manager to be in the best interest of the group, is understandable, and meets the employee’s personal interests
administrative management
a management theory that attempts to identify the design of an organization and is associated with the following principles: 1) requires a formalized administrative structure where there are clear lines of authority marked as a hierarchical structure, 2) defines a clear division of labor among workers, 3) reflects delegation of power and authority to upper management
authoritarian leader
leader who dictates activities to the workgroup but he or she does not participate in the completion of the activities; the authoritarian is very critical of the team’s results
authoritarian management
a management style in which the leader dictates policies and procedures, decides what goals are to be achieved, and directs and controls all activities without any meaningful participation by the subordinates
authority
the right to make decisions and take actions necessary to carry out assigned tasks
autocratic leadership style
leadership style characterized by leader control over all decisions with no or very little input from the workgroup; this style is beneficial when decisions need to be made quickly by the leader
backcasting
the process of deciding on a goal and then working backwards to determine from the current state what steps need to be taken to achieve the goal
behavioral theories of leadership
leadership theories that focus on the study of specific behaviors of leaders
charismatic authority
embodies a leader who has the capacity to influence subordinates
collaborative performance appraisals
appraisals that engage employees within the process of evaluating work performed by requiring managers to solicit input from employees about actual work performance
consultative leadership
task-oriented leadership that focuses on getting input from those who perform the tasks; the ultimate decisions for the group are still made by the leader but this leadership style takes into account the feedback provided by individual workers
contemporary management
management style that uses current or present period practices to plan, organize, and control individuals within an organization
contingency approach
approach to effective leadership that is dependent on matching the leader’s style to the workplace situation
democratic leader
leader who assists and encourages the workgroup, allows the workgroup to select activities to be completed as a group, and praises the group at completion of the work
DMAIC approach
a Six Sigma problem-solving framework; it is an acronym that stands for: define the opportunity for improvement, measure current performance, analyze the opportunity, improve the opportunity, and control performance after improvements are made
Gantt chart
a bar chart that allows project managers to plan and control projects at a glance
great man theory
the most documented trait theory; it notes that certain traits within individuals can be identified as predictors for effective leadership and that by studying great historical leaders, individual traits can clearly be identified as keys for success in leadership
humanistic management
management theory in which individual human needs and human values are considered within the management of an organization and where three key dimensions must be considered: 1) human dignity is the key element of consideration, 2) ethical complexities are evaluated, 3) all stakeholders must be involved in the decision-making process
job enlargement
the concept that adding a variety of job tasks to an individual’s job will decrease job monotony and thereby allow more job flexibility; a horizontal expansion of an employee’s duties; tasks are added to the current job, but employees have the same degree of autonomy and responsibility
laissez-faire leader
leader who does not participate in the selection of the group activities and does not provide praise or criticism to the workgroup; the laissez-faire leader provides the resources for the group’s activities but does not interfere with how the group performs
leadership
the activity of guiding a group of people to a definite result
leadership continuum
theory that assumed that leadership behavior can be explained in seven steps of behavioral styles ranging from authority (boss-centered leadership) to delegation (team-centered leadership)
lean
a management strategy that utilizes less to do more and is a process improvement strategy that can be utilized in any type of organization
legitimate authority
identifies individuals who have the right to demonstrate power over other individuals within a bureaucratic organization
management
the process of planning, organizing, and leading organization activities
management by objectives (MBO)
a management style in which the objectives of an organization are agreed upon by management and employees so that everyone is working toward common goals
management theory
a collection of ideas which set forth general rules on how to manage a business or organization
managerial grid
a behavioral theory that offers a two-dimensional behavioral approach that assists individuals with identification of an appropriate leadership style through the concern for people (people-oriented) or tasks (production-oriented); the objective of the managerial grid is to analyze and identify the type of leadership skills exhibited by the leader
Maslow’s hierarchy of human needs
a theory developed by Abraham Maslow suggesting that a hierarchy of needs might help explain behavior and guide managers on how to motivate employees; as each need is met (physiological, safety and security, love and belonging, self-esteem, and self-actualization), the individual moves to the next level in an attempt to satisfy the next need
normative decision model
model that focuses on situational factors rather than leadership behaviors and it guides managers through the decision-making processes depending on the type of problem encountered
operations management
management that deals with the design and management of products, processes, services and supply chains and considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services clients want; it also evaluates tools that are needed to manage processes of interrelated activities
participative leadership
a leadership style in which the leader allows the workers to provide input and make decisions about their work
participatory management
a management style in which management allows employees to take an active role in decision-making processes that relate directly to their jobs
path-goal theory
originally developed by Martin Evans in 1970 and further expanded upon by Robert House in 1971, this theory suggests that a leader should develop a path for followers to achieve group goals
rational-legal authority
authority that is displayed as boundaries outlined within organizations, which rely on the rules and laws imposed by those in authoritative management positions
scientific management
studying work processes and how they impact workers’ productivity
servant leadership
a philosophy and set of practices that enriches the lives of individuals, builds better organizations, and ultimately creates a more just and caring world; servant leaders, unlike traditional leaders, share the power of leadership with those they serve
situational leadership theory
developed by Paul Hershey and Ken Blanchard in 1969, this leadership theory proposed that leadership effectiveness depends on the leader’s ability to change his or her behavior to meet the demands of the situation; it also takes into account the maturity of the followers in terms of their job ability and psychological willingness to work
Six Sigma
disciplined and data-driven methodology for getting rid of defects in any process
The Iowa Studies
conducted in 1939 at the Child Welfare Research Station within Iowa State University by Kurt Lewin, Ronald Lippitt, and Ralph K White; one of the first behavioral research studies focused on leadership roles rather than the traits exhibited by leaders; these experimental research studies identified three leadership styles that are representative of the relations between leaders and the individuals being led: authoritarian, democratic, and laissez-faire
The Michigan Studies
undertaken in the early 1950s by researchers from the University of Michigan interested in understanding leadership behaviors in actual workplaces, these studies are more of a one-dimensional theory in that employee-centered leadership and job-centered leadership are opposing leadership styles and leaders are not able to focus on production and employees at the same time; they do not take into effect situational variances that may impact leadership styles and also noted that effective leaders utilized a participatory style of leadership where the leader involved a team of workers in decision making and problem solving in regards to work decisions
The Ohio State Leadership Study
conducted in the 1960s by the researchers who were a part of the personnel research board at the Ohio State University; delineated a two-dimensional theory of leadership behavior and assessed objectives (job tasks to be completed by followers) and the concern for relationship objectives (the relationship between leader and follower)
Theory X
a management theory developed by McGregor that describes pessimistic assumptions about people and their work potential
Theory Y
a management theory developed by McGregor that describes optimistic assumptions about people and their work potential
traditional authority
when authority is inherently understood within an organization or group
trait theory of leadership
theory that attempts to define the general qualities or traits that need to be present within an individual to be a leader
transactional leadership
in this type of leadership, there is a hierarchy within the organization where leaders clarify goals and objectives for followers and followers receive some kind of reward in exchange for performing work satisfactorily; the types of rewards elicited within this leadership model are items such as a promotion, pay raise, or personal recognition
transformational leadership
the act of changing or transforming from one current state to another state; it focuses on leaders’ attempts to motivate followers to achieve at a higher level or to perform at a level beyond expectations
value
a principle or ideal intrinsically valuable or desirable (human rather than material)
values-based leadership
a style of leadership built on a foundation of personal values, principles, or ethics
Weber’s theory of bureaucratic management
management theory that notes there are two essential components to a bureaucratic organization, 1) organizations are structured into hierarchies arranged at an organizational level of authority as demonstrated in an organizational chart, and 2) the organization and its work group are governed by clearly defined decision-making rules that are outlined in policies and procedures that are managed by levels of authority within an organization
zone of indifference
the range in which a manager’s orders will be perceived as legitimate and the employee will act on or perform the request without a great deal of thought