Table of Contents

Unit 1: Intrduction to management.......................................................................2

What Three Characteristics Do All Organizations Share?................................2
How Are Managers Different from Nonmanagerial Employees?.....................2
What Titles Do Managers Have?.......................................................................2
What is management?.......................................................................................2
3 Ways to look at what managers do.................................................................3
Why study management?..................................................................................3
What Factors Are Reshaping and Redefining Management?............................4
Unit 2:Managerial environment............................................................................4
What Is the External Environment and Why Is It Important?...........................4
How Does Organizational Culture Affect Managers?.......................................5
What Are Current Issues in Organizational Culture?.......................................6
Unit 3: Decision making........................................................................................6
How do managers make decisions....................................................................6
Unit 4: Planning.....................................................................................................8
What is planning and why managers need to plan?..........................................9
Unit 5: Strategic Management...............................................................................9
What Do Managers Need to Know about Strategic Management?.................11
What strategies do managers use?...................................................................12
How Do Managers Set Goals and Develop Plans?.........................................15
What Contemporary Planning Issues Do Managers Face?.............................16
Unit 6: Organizing...............................................................................................17
What Are the Six Key Elements in Organizational Design?...........................18
What contingency variables affect structural choice?.....................................19
What Are Some Common Organizational Designs?.......................................21
What are today’s organizational design challenges?.......................................22
Unit 7: Leadership...............................................................................................22
Who are leaders, and what is leadership?........................................................22
What do early leadership theories tell us about leadership?...........................22
What is leadership like today?.........................................................................25

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Why is trust the essence of leadership?...........................................................26

Unit 1: Intrduction to
management
What Three Characteristics Do
All Organizations Share?
An organization is a deliberate collection of people brought together to
accomplish some specific purpose.
3 characteristics of organizations:
 Goals
 People
 Structure

How Are Managers Different

from Nonmanagerial Employees?
Nonmanagerial employees are people who work directly on a job or task and
have no responsibility for overseeing the work of others.
Managers are individuals in an organization who direct and oversee the activities
of other people in the organization so organizational goals can be accomplished.

What Titles Do Managers Have?

Top managers
Middle managers
First-line managers
Team leaders are individuals who are responsible for leading and facilitating the
activities of a work team.

What is management?
Management is the process of getting things done, effectively and efficiently,
with and through other people.
Efficiency means doing a task correctly (“doing things right”) and getting the
most output from the least amount of inputs.
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Effectiveness means “doing the right things” by doing those work tasks that help
the organization reach its goals.

3 Ways to look at what managers

do
4 functions approach
Then: POCCC: Planning, organizing, command, coordinate, control
Now:POLC: Planning, organizing, leading, controlling

Management roles approach

Mintzberg’s managerial roles
 Interpersonal roles: Figurehead, Leader, Liaison
 Decisional roles: Entrepreneur, Disturbance Handler, Resource Allocator,
Negotiator
 Informational roles: Spokesperson, Disseminator, Monitor

Skills and competencies

CONCEPTUAL SKILLS: Analyzing and diagnosing complex situations to see
how things fit together and to facilitate making good decisions.
INTERPERSONAL SKILLS: Working well with other people both individually
and in groups by communicating, motivating, mentoring, delegating, etc.
TECHNICAL SKILLS: Job-specific knowledge, expertise, and techniques
needed to perform work tasks. (For top-level managers—knowledge of the
industry and a general understanding of the organization’s processes and
products; For middle- and lower-level managers—specialized knowledge
required in the areas where they work—finance, human resources, marketing,
computer systems, manufacturing, information technology.)
POLITICAL SKILLS: Building a power base and establishing the right
connections to get needed resources for their groups.

Why study management?

Good managers are important because:
 Organizations need their skills and abilities, especially in today’s
uncertain, complex, and chaotic environment.
 They’re critical to getting things done.
 They play a crucial role in employee satisfaction and engagement.

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What Factors Are Reshaping and
Redefining Management?
Unit 2:Managerial environment
What Is the External
Environment and Why Is It
Important?
The term external environment refers to factors, forces, situations, and events
outside the organization that affect its performance.

What Is the Economy Like Today?

Components of the external environments:
 Political/legal
 Demographics
 Economic
 Sociocultural
 Technological
 Global

What roles do demographics play?

Demographics—the characteristics of a population used for purposes of
social studies—can and do have a significant impact on how managers manage.
Age is a particularly important demographic for managers.

How Does the External Environment Affect

Managers?
Impact on Jobs and Employment: Changes in the external environment, such as
economic conditions or technological advancements, directly influence the types
of jobs available, how they are designed, and the required skillsets. Managers
must adapt to these changes, such as embracing flexible work arrangements or
managing workforce reductions during economic downturns.

Environmental Uncertainty: Managers face challenges from the level of

unpredictability and complexity in the external environment. For instance,

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highly dynamic environments with frequent changes in competition or
technology require managers to be more adaptable and proactive in decision-
making.

Stakeholder Relationships: Managers must maintain and navigate relationships

with stakeholders such as customers, suppliers, and communities. Positive
stakeholder relationships can lead to benefits like better innovation, trust, and
flexibility in dealing with environmental changes(The Management
Environm…).

What is organizational culture?

Culture is perceived. It’s not something that can be physically touched or seen,
but employees perceive it on the basis of what they experience within the
organization.
Culture is descriptive. It’s concerned with how members perceive or describe
the culture, not with whether they like it.
Culture is shared. Even though individuals may have different backgrounds or
work at different organizational levels, they tend to describe the organization’s
culture in similar terms.

7 dimensions of organizational culture

The dimensions of organizational culture describe the characteristics that define
how an organization operates and interacts with its employees and environment.
These dimensions help analyze and categorize the unique cultural traits of a
company.
These dimensions can vary widely between organizations and are typically
assessed on a spectrum from low to high. They collectively shape the
organization’s “personality” and influence employee behavior, management
practices, and overall organizational effectiveness

How Does Organizational Culture

Affect Managers?
Organizational culture affects managers in two main ways:

 Impact on Employee Behavior:A strong culture with deeply held and

widely shared values influences employee behavior, reducing the need for
formal rules and regulations. Employees internalize organizational values,
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which promotes consistency and predictability. In weaker cultures, the
effect on employee behavior is less pronounced, and managers may need
to rely more on formal controls.
 Impact on Managerial Decisions and Actions:The culture of an
organization shapes what managers can and cannot do, influencing their
planning, organizing, leading, and controlling processes. For instance:In a
culture that values risk-taking, managers are encouraged to pursue
innovative strategies.
 In a culture that emphasizes stability, managers may focus on maintaining
the status quo.
 Managers learn implicit expectations, such as the importance of
teamwork, decision-making styles, or acceptable leadership behaviors.
Ultimately, an organization’s culture acts as a guiding framework for managerial
behavior, shaping how they interact with employees, make decisions, and
approach organizational goals

What Are Current Issues in

Organizational Culture?
 Creating a Customer-Responsive Culture
 Creating an Innovative Culture
 Creating a Sustainability Culture
 Creating an Ethical Culture
 Creating a Learning Culture

Unit 3: Decision making

Các yếu tố quan trọng nhất khi ra quyết định
 Xác định mục tiêu và vấn đề
 Có càng nhiều lựa chọn càng tốt
 Data-driven decision making
Đơn giản hóa trong việc ra quyết định
Vd: Cô gái 9 tí=> cô gái 2 tí

How do managers make

decisions
Decision making process:
1. Identification of a problem
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2. Identification of Decision Criteria
3. Allocation of Weights to Criteria
4. Development of Alternatives
5. Analysis of Alternatives
6. Selection of an alternative
7. Implementation of the alternative
8. Evaluation of decision effectiveness

What Defines a Decision Problem?

Managers have to make a comparision between currently reality and some
standard:
(1) past performance
(2) previously set goals
(3) the performance of some other unit within the organization or in other
organizations.

What Common Errors Are Committed in

the Decision-Making Process?
1. Overconfidence Bias: Overestimating one’s abilities or knowledge,
leading to overly risky decisions.
2. Immediate Gratification Bias: Choosing quick rewards over long-term
benefits.
3. Anchoring Effect: Relying too heavily on initial information and failing to
adjust.
4. Selective Perception Bias: Interpreting information to fit personal biases.
5. Confirmation Bias: Seeking information that supports existing beliefs and
ignoring contradictions.
6. Framing Bias: Letting the presentation of information influence decisions.
7. Availability Bias: Overvaluing recent or memorable events in decision-
making.
8. Representation Bias: Judging based on perceived similarities rather than
actual probabilities.
9. Randomness Bias: Attributing patterns or meaning to random events.
[Link] Costs Error: Persisting with failing decisions due to previous
investments.
[Link]-Serving Bias: Crediting success to oneself and blaming failures on
external factors.
[Link] Bias: Believing outcomes were predictable after they happen.
[Link] Bias: Assuming revised ideas or products are always better.

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What are the 3 approaches managers can
use to make decisions?
Rational Model: Assumes decision-makers act logically, fully consider
alternatives, and choose the option that maximizes value.
Bounded Rationality: Recognizes that decision-makers have limited information
and constraints, often leading to "satisficing" (choosing a solution that is good
enough).
Intuitive Decision-Making: Relies on experience, feelings, and accumulated
judgment to make decisions, often in uncertain or fast-moving scenarios.

What Types of Decisions and Decision-

Making Conditions Do Managers Face?

Unit 4: Planning
Formula: 5W1H5M (515)
1. Why?=> Objectives
2. What?=> Tasks, activities
3. Who? Responsibilities of each people
4. When?
5. Where?
6. How?
7. Material
8. Machine
9. Methods
[Link]: How many
[Link]
2C: Check and controlling
Output of planning:
 Goals/objectives (OKRs)
 Strategy
 Plans

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What is planning and why
managers need to plan?
What is Planning?
Planning is considered the primary management function because it provides the
foundation for all other managerial activities like organizing, leading, and
controlling. It involves:
1. Defining organizational objectives or goals.
2. Developing an overall strategy to achieve those goals.
3. Creating a comprehensive hierarchy of plans to integrate and coordinate
activities.
Formal planning differs from informal planning by being documented,
structured, and communicated to all organization members. Formal planning
includes defining specific goals for a set period, writing them down, and using
them to chart the organization's path from its current state to the desired future
state.
Why Do Managers Need to Plan?
Managers formally plan for four primary reasons:
1. Establish Coordinated Effort: Planning unifies organizational activities
by ensuring all members work toward the same goals, fostering teamwork
and cooperation.
2. Reduce Uncertainty: It prepares managers to anticipate changes, analyze
their impacts, and develop appropriate responses, making the organization
more adaptable.
3. Minimize Waste and Redundancy: Planning identifies and reduces
overlapping activities, leading to more efficient resource utilization.
4. Facilitate Control: Planning sets benchmarks or standards that allow for
performance evaluation, enabling corrective actions if goals are not met

Unit 5: Strategic Management

Definition of strategy (slides)
Strategy Corporate Business Function
Visions and Growth Growth Branding
goals
Where to play? Industries Segments: Markets Customer
(business scope) Global/Market Customers, products loyalty
Online-offline
How to play? Core value Customer values
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customers proposition
QCDDES
1. Quality
2. Cost
3. Differentiation
4. Delivery
5. Environment
friendly
6. Safety
 Create
competitive
advantages
How to offer? Primary
(Capabilites) activities:
Design, Inbound
logistics,
operation,
outbound
logistics,
marketing,
customer service

Support
activities:
Purchasing,
RnD, HRM,
Infrastructure
What Structure, SHRM,
management Culture, Leadership,
systems are MIS
required?

What are possible ways a compnay may expand its business?

Corporate Strategy (Group) Business level strategy (SBU)
Joint and Venture Franchising
Enter International/ Market MnA
Export
MnA
Diversification: Related, unrelated
Concentration growth Growth: Ecommerce, digital channel

Strategies: Corporate, industry/competitive, function strategy

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 Target objectives
o Current mision/objectives/vision: Why exist
 Target customer/market
 Products/demand
 Value/advantages
 Business environment
o External: PESTLE
o Internal: Five forces, SWOT analysis
Levels of organization strategy
 Corporate level (What fields, how to alocate resources?)
 Stability
 Growth
o Concentration (Market)
o Integration (Scale/scope)
 Vertical: forward
 Horizontal: backward
o Diversification: related, unrelated
 Renewal
The BCG matrix
Apple quantar strategy
Best Buy
Differentiation

What Do Managers Need to

Know about Strategic
Management?
Definition of Strategic Management:
Strategic management involves developing an organization’s strategies, which
are plans for how the organization will achieve its goals, compete successfully,
and satisfy its customers.
Importance of Strategic Management:
1. Enhances Organizational Performance: Strategic management helps
organizations adapt to changes and succeed even under challenging
conditions.

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2. Handles Uncertainty: It equips managers to deal with dynamic and
unpredictable environments by aligning actions with long-term goals.
3. Integrates Diverse Operations: Strategic management ensures
coordination across the organization, aligning various departments and
employees toward common objectives.
Strategic Management Process:
The process consists of six steps:
1. Identify Mission, Goals, and Strategies: Define the organization’s
purpose and assess current goals and strategies.
2. External Analysis: Evaluate opportunities and threats in the external
environment.
3. Internal Analysis: Assess strengths and weaknesses in resources and
capabilities (SWOT analysis combines steps 2 and 3).
4. Formulate Strategies: Develop corporate, business, and functional
strategies based on analyses.
5. Implement Strategies: Translate strategies into actions effectively.
6. Evaluate Results: Monitor outcomes and adjust strategies as needed

What strategies do managers

use?
Corporate strategy
[Link] strategy: Organization expands the number of markets served or
products offered, either through its current business(es) or through new
business(es)
 Concentration: Growing by focusing on primary line of business and
increasing the number of products offered or markets served in this
primary business.
 Vertical integration: Growing by gaining control of inputs or outputs or
both.
o Backward vertical integration—organization gains control of inputs
by becoming its own supplier.
o Forward vertical integration—organization gains control of outputs
by becoming its own distributor.
 Horizontal integration: Growing by combining with competitors.
 Diversification: Growing by moving into a different industry.
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o Related diversification—different, but related, industries. “Strategic
fit.”
o Unrelated diversification—different and unrelated industries. “No
strategic fit.”
[Link] strategy: Organization continues—often during periods of uncertainty
—to do what it is currently doing; to maintain things as they are.
 Examples: continuing to serve the same clients by offering the same
product or service, maintaining market share, and sustaining current
business operations.
[Link] Strategy: Organization is in trouble and needs to address declining
performance.
 Retrenchment strategy: Minor performance problems—need to stabilize
operations, revitalize organizational resources and capabilities, and
prepare organization to compete once again.
 Turnaround strategy: More serious performance problems requiring more
drastic action.
 In both renewal strategies, managers can (1) cut costs and (2) restructure
organizational operations, but actions are more extensive in turnaround
strategy.

Competitive strategy
1. Cost leadership strategy: Having the lowest costs in its industry and aimed
at broad market
a. Highly efficient
b. Overhead kept to a minimum
c. Does everything it can to cut costs
d. Product must be perceived as comparable in quality to that offered
by rivals or at least acceptable to buyers
2. Differentiation strategy: Offering unique products that are widely valued
by customers and aimed at broad market
a. Product differences: Exceptionally high quality,extraordinary
service, innovative design, technological capability, or an unusually
positive brand image
3. Focus strategy: A cost advantage (cost focus) or a differentiation
advantage (differentiation focus) in a narrow segment or niche (which
can be based on product variety, customer type, distribution channel, or
geographical location)
4. Stuck in the middle: What happens if an organization can’t develop a cost
or differentiation advantage-bad place to be
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Functional strategy
Those strategies used by an organization’s various functional departments
(marketing, operations, finance/accounting, human resources, and so forth) to
support the competitive strategy.

What Strategic Weapons Do Managers

Have?
Six strategic weapons:
1. Customer service
2. Employee skills and loyalty
3. Innovation
4. Quality
5. Social media
6. Big data/digital tools
Quality as a strategic weapon:
 If implemented properly, quality can be a way for an organization to
create a sustainable competitive advantage.
 Benchmarking is the best: The basic idea of benchmarking is that
managers can improve quality by analyzing and then copying the methods
of the leaders in various fields.
Social media as a strategic weapon:
 Successful social media strategies should (1) help people—inside
and outside the organization—connect and (2) reduce costs or increase
revenue possibilities or both.
Big data and digital tools as strategic weapons. 3 most prevalent digital tools
today:
 Data vizualization tools: pie charts, bar charts, and trend lines are used to
summarize data for visual display
 Cloud computing: Cloud computing refers to storing and accessing data
on the Internet rather than on a computer’s hard drive or a company’s
network.
 Internet of things

How Do Managers Set Goals and

Develop Plans?
Planning= goals + plan
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What Types of Goals Do Organizations
Have and How Do They Set Those Goals?
Types of goals:
 stated goals—official statements of what an organization says, and what it
wants its stakeholders to believe, its goals are
 real goals—those goals an organization actually pursues
Setting goals:
 Traditional goal setting: goals set by top managers flow down
through the organization and become subgoals for each organizational
area. When the hierarchy of organizational goals is clearly defined, it
forms an integrated network of goals, or a means-ends chain.
 Management by Objectives (MBO): a process of setting mutually
agreed-upon goals and using those goals to evaluate employee
performance. Four elements:
o Goal specificity
o Participative decision making
o An explicit time period
o Perfomance feedback
Characteristics of 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
Steps in setting goals:
1. Review the organization’s mission and employees’ key job tasks.
2. Evaluate available resources.
3. Determine the goals individually or with input from others.
4. Make sure goals are well-written and then communicate them to all who
need to know.
5. Build in feedback mechanisms to assess goal progress.
6. Link rewards to goal attainment.

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What Types of Plans Do Managers Use and
How Do They Develop Those Plans?
Types of plans
 Breadth: Strategic plans are those that apply to an entire organization and
encompass the organization’s overall goals. Tactical plans (sometimes
referred to as operational plans) specify the details of how the overall
goals are to be achieved.
 Time Frame: The number of years used to define short-term and long-
term plans has declined considerably due to environmental uncertainty.
long-term plans are now defined as plans with a time frame beyond three
years. Short-term plans cover one year or less.
 Specificity: Specific plans are plans that are clearly defined and leave no
room for interpretation. Directional plans: flexible plans that set
general guidelines.
 Frequency of Use: A single-use plan is a one-time plan specifically
designed to meet the needs of a unique situation. In contrast, standing
plans are ongoing plans that provide guidance for activities performed
repeatedly.
Developing plans:
Contingency Factors in Planning. Three contingency factors affect the
choice of plans: (1) organizational level, (2) degree of environmental
uncertainty, and (3) length of future commitments.

What Contemporary Planning

Issues Do Managers Face?
Two comtemporary planning issues: (1)planning effectively in
dynamic environments and crisis situations and then (2)at how managers can
use environmental scanning, especially competitive intelligence.
Dynamic environment: In an uncertain environment,
managers should develop plans that are specific, but flexible.
Crisis situation: A comprehensive crisis response plan needs to
be prepared and in place. Three critical dimensions: People,
preparedness, and testing

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How Can Managers Use Environmental
Scanning?
Environmental scanning involves screening large amounts of information to
detect emerging trends. One of the fastest-growing forms of environmental
scanning is competitive intelligence, which is accurate information about
competitors that allows managers to anticipate competitors’ actions rather than
merely react to them.

Unit 6: Organizing
Organizational structure
 Organizational chart
 Relationships and Coordination
 Responsibility and Accountability
 Rights to make decisions/ empowerment
Function
1. Design
2. Inbound logistics
3. Operation manufactures
4. Outbound logistics
5. Marketing and sales
6. Customer service
1000 workers=> break into smaller groups (results, department, teams, tasks)
Steps
1. Divide the whole work into tasks
2. Combine tasks into jobs (specialization)
3. Jobs into units/teams/departments (Departmentalization)
4. Responsibilities/ Accountability/ Empowerment
5. Decentralization
6. Formalization
What are factors determining the design of structure?
 Size
 Strategy
 Culture
 Technology
 Environment

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What affects Apple’s design of structure
Functional structure: Strategy, environment, fast changing technology

What Are the Six Key Elements

in Organizational Design?
Organizing: The function of management that determines what needs to be done,
how it will be done, and who is to do it; in other words, the function that
creates the organization’s structure.

1. What Is Work Specialization?

work specialization is dividing work activities into separate job tasks.

2. What Is Departmentalization?
How jobs are grouped together is called departmentalization. There are five
common forms to group activities:
1. Functional: Groups employees based on work performed (e.g.,
engineering, accounting, information systems, human resources)
2. Product: Groups employees based on major product areas in the
corporation (e.g., women’s footwear, men’s footwear, and apparel and
accessories)
3. Customer: Groups employees based on customers’ problems and needs
(e.g., wholesale, retail, government)
4. Geographic: Groups employees based on location served (e.g., North,
South, Midwest, East)
5. Process Groups employees based on the basis of work or customer flow
(e.g., testing, payment)
Today’s view: Most large organizations continue to use most or all of the
departmental groups suggested by the early management writers. However,
many organizations use cross-functional teams, which are teams made up of
individuals from various departments and that cross traditional departmental
lines.

3 What Are Authority and Responsibility?

Chain of command, the line of authority extending from upper organizational
levels to lower levels, which clarifies who reports to whom.
Authority refers to the rights inherent in a managerial position to give orders and
expect the orders to be obeyed.

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When managers delegate authority, they must allocate commensurate
responsibility.
That is, when employees are given rights, they also assume a corresponding
obligation to perform.
What are the different types of authority relationships:
 Line authority entitles a manager to direct the work of an employee
 staff authority: Positions with some authority that have been created to
support, assist, and advise those holding line authority
What is unity of command?
Accordingly, the early writers believed that each employee should report to
only one manager, a term called unity of command.
Authority is one element in the larger concept of power.
How do authority and power differ?
 Authority is a right. Its legitimacy is based on an authority figure’s
position in the organization.
 Power refers to an individual’s capacity to influence decisions

4 What Is Span of Control?

5 How Do Centralization and
Decentralization Differ?
Centralization is the degree to which decision making takes place at upper levels
of the organization.
Decentralization is the degree to which lower-level managers provide input
or actually make decisions.

6 What Is Formalization?
Formalization refers to how standardized an organization’s jobs are and the
extent to which employee behavior is guided by rules and procedures.

What contingency variables

affect structural choice?
Mechanistic organization
 Rigid and tightly controlled structure
 Combines traditional aspects of all six elements of organization structure

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 High specialization
 Rigid departmentalization
 Clear chain of command
 Narrow spans of control leading to taller structure
 Centralization
 High formalization
Organic organization
 Highly adaptive and flexible structure
 Collaboration (both vertical and horizontal)
 Adaptable duties
 Few rules
 Loose structure allows for rapid adjustment to change
 Informal communication
 Decentralized decision authority
 Wider spans of control leading to flatter structures
Four contingency variables:
1. Strategy=> structure
a. Based on work of Alfred Chandler
b. Goals are important part of organization’s strategies; structure
should facilitate goal achievement
c. Simple strategy ➛ simple structure
d. Elaborate strategy ➛ more complex
e. structure
f. Certain structural designs work best with different organizational
strategies
2. Size=> structure
a. Considerable evidence that size (number of employees) affects
structure
b. Magic number seems to be 2,000 employees
c. LARGE organizations (> 2,000 employees)—mechanistic
d. When an organization reaches this number, size is less influential;
adding more employees has little impact as structure is already
fairly mechanistic
3. Technology=> structure
a. Technology is used—by every organization—to convert inputs into
outputs
4. Environment=> structure
a. Environment is a constraint on managerial discretion
b. Environment also has a major effect on an organization’s structure
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c. Helps explain why so many managers today have restructured their
organizations to be lean, fast, and flexible.

What Are Some Common

Organizational Designs?
What Traditional Organizational Designs
Can Managers Use?
Simple structure: An organizational design with low departmentalization, wide
spans of control, authority centralized in a single person, and little formalization.
A functional structure is an organizational design that groups similar or related
occupational specialties together.
The divisional structure is an organizational structure made up of separate
business units or divisions.

What Contemporary Organizational

Designs Can Managers Use?
A team structure is one in which the entire organization is made up of
work teams that do the organization’s work.
The matrix structure assigns specialists from different functional departments to
work on projects led by a project manager.
A project structure: Employees continuously work on projects.
boundaryless organization: An organization whose design is not defined by,
or limited to, the horizontal, vertical, or external boundaries imposed by a
predefined structure.
A virtual organization consists of a small core of full-time employees and
outside specialists temporarily hired as needed to work on projects.
network organization: An organization uses its own employees to do some work
activities and networks of outside suppliers to provide other needed product
components or work processes.

What are today’s organizational

design challenges?
A learning organization, an organization that has developed the capacity to
continuously learn, adapt, and change.
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How can managers design efficient and
effective flexible work arrangements?
Remote work is doing work via virtual devices from any remote location, either
work done on the road or work done from home.
Telecommuting specifically is a remote work arrangement in which employees
work at home and are linked to the workplace by virtual devices.

Unit 7: Leadership
A book: The leadership code
A song: I have a dream – ABBA

Who are leaders, and what is

leadership?
Leader is someone who can influence others and who has managerial authority
Leadership is a process of leading a group and influencing that group to achieve
its goals

What do early leadership

theories tell us about
leadership?
1. The leader: What traits do leaders
have?
1. Drive
2. Desire to lead
3. Honesty and integrity
4. Self-confidence
5. Intelligence
6. Job-relevant knowledge
7. Extraversion
8. Proneness to guilt

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2. The behaviors: What behaviors do
leaders exhibit?
3. What do the contingency theories
of leadership tell us?
What was the first comprehensive contingency model?
Fiedler contingency model. Fiedler developed the least-prefered coworker
(LPC) questionaire. The questionaire contained 18 pairs of contrasting
adjectives
High LPC score (>=64): Relationship oriented
Low LPC score (<=57): Task oriented
3 contingency dimensions that defined the key situational factors in leader
effectiveness
 Leader-member relations
 Task structure
 Position power

4. How do followers’willingness and

ability influence leaders?
Hersey and Blanchard’s Situational leadership theory (SLT 1): A contingency
theory that focuses on follower’s readiness.
Four specific leadership styles described as follows:
Leader
 Telling-directing (high task-low leadership)
 Selling-coaching (High task-high relationship)
 Participating-supporting (Low task-high relationship)
 Delegating (Low task-low relationship)
Follower
 R1: Unable, unwilling: Telling
 R2: Unable, willing: Selling
 R3: Able, unwilling: Participating
 R4: Able, willing: Delegating
Hersey and Blanchard’s Situational leadership theory (SLT 2)
Leader:
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 Directing
 Coaching
 Supporting
 Delegating
Follower
 Low competence, high commitment
 Low competence, low commitment
 High competence, low commitment
 High competence, high commitment

5. How participative should a leader

be?
Leader-participation model:
1. Importance of the decision
2. Importance of obtaining follower commitment to the decision
3. Whether the leader has sufficient information to make a good decision
4. How well structured the problem is
5. Whether an autocratic decision would receive follower commitment
6. Whether followers “buy into” the organization’s goals
7. Whether there is likely to be conflict among followers over solution
alternatives
8. Whether followers have the necessary information to make a good decision
9. Time constraints on the leader that may limit follower involvement
10. Whether costs to bring geographically dispersed members together are
justified
11. Importance to the leader of minimizing the time it takes to make the
decision
12. Importance of using participation as a tool for developing follower decision
skills

6. How do leaders help followers?

Path-goal theory: Four leadership behavior:

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 Directive leader
 Supportive leader
 Participative leader
 Achievement-oriented leader
Environmental Contingency factors:
 Task structure
 Formal authority system
 Work group
Leader behavior:
 Directive
 Supportive
 Participative
 Achievement oriented
Outcomes:
 Performance
 Satisfaction
Employee contingency factors:
 Locus of control
 Experience
 Perceived ability

What is leadership like today?

What Do the Four Contemporary Views of
Leadership Tell Us?
Leader-member exchange (LMX) theory
Transactional leaders: leaders who lead primarily by using social exchanges (or
transactions)
Transformational leader: stimulates and inspires (transforms) followers to
achieve extraordinary outcomes.
Charismatic leader: an enthusiastic, self-confident leader whose personality and
actions influence people to behave in certain ways.
Visionary leadership: The ability to create and articulate a realistic, credible,
and attractive vision of the future that improves on the present situation.
Four common traits of best team leaders:
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 Models collaborative action
 Builds strong employee networks
 Encourages collaboration across functions and departments
 Structures work effectively
What issues do today’s leaders face?
Empowerment involves increasing the decision-making discretion of workers.

Why is trust the essence of

leadership?
Trust is defined as the belief in the integrity, character, and ability of a leader. 5
dimensions that make up the concept of trust:
 Integrity: honesty and truthfulness
 Competence: technical and interpersonal knowledge and skills
 Consistency: reliability, predictability, and good judgment in handling
situations
 Loyalty: willingness to protect a person, physically and emotionally
 Openness: willingness to share ideas and information freely
Suggestions for building trust:
1. Practice openness
2. Be fair
3. Speak your feelings
4. Tell the truth
5. Be consistent
6. Fulfill your promises
7. Maintain confidence
8. Demonstrate confidence
The managerial/leadership grid
1.1 Impoverished management: Exertion of minimum effort to get required work
done is appropriate to ssuteain organization membership
1.9 Country club mangement: Thoughtful attention to the needs of the people for
satisfying relationship leads to a comfortable, friendly organization atmosphere
and work tempo
9.1 Authority- obedience: Efficiency in operations results from arranging
conditions of work in such a way that human elements interfere to a minimum
degree

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5.5 Organization man management: Adequate organization performance is
possible through balancing the necessity to get work out while maintaining
morale of people at a satisfactory level
9.9 Team management: Work accomplishment is from committed people,
interdependence thought a “common stake” in organization purpose leads to
relationships of trust and respected.

Unit 8: Motivating employees

Characteristics of motivation:
 Energy/effort
 Willingness
 Sustained
P=AMO, with:
 P: Performance
 A: Abilities
 M: Motivation
 O: Organizational support
Structure, strategic management, Leadership, motivation
Factors motivating employees:
 Compensation (pay, benefits)
 Employee development
 Recognition
 Delegation/empowerment
 Culture/environment: Collaborative, respectful
 Job characteristic model (JCM):
o Skill variety
o Task significance
o Task identity
o Autonomy
o Feedback
The most important factor that motivates employees: Respect

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