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Trait Theory
A leadership theory that holds that effective leaders possess a similar set of traits or
characteristics: self-confidence, acceptance of the consequences of one's actions, persistence,
creative problem-solving, initiative, resilience, tolerance, ability to influence others, ability to
structure social interactions, intelligence, integrity, nonconformity, cooperativeness, and tact.
Behavioral Theory
Focuses on what leaders do or how they behave, categorizing leaders by their styles:
Autocratic
Democratic
Permissive or laissez-faire
Bureaucratic
Autocratic Leaders
Leaders who aim to change subordinates' behavior through external control using coercion,
authority, punishment, and power.
Democratic Leaders
Leaders who appeal to their subordinates' drives and influence change through participation,
involvement in goal setting, and collaboration.
Permissive or Laissez-faire Leaders
Leaders who adopt a "hands-off" approach, believing in subordinates' capability to make
decisions and complete work without direct facilitation.
Bureaucratic Leaders
Leaders who rely on organizational policies and rules to influence subordinates' behavior.
Likert
Developed the System 4 Management model illustrating the relationship between management
style and outcomes; greater employee involvement leads to greater commitment to
organizational goals.
,Impoverished Leaders
Show low concern for both production and people, doing the minimum required to stay
employed.
Contingency Theory
Also known as situational leadership, referring to the ability to adapt one's leadership style to the
current situation.
Manager-Follower Relationships
The degree to which a manager enjoys the loyalty and support of their followers.
Task Structure
The clarity of task descriptions and existence of operating procedures ensuring successful
outcomes.
Position Power
The manager's ability to administer rewards and punishments.
Job Maturity
The employee's skills and technical knowledge relative to the task.
Psychological Maturity
An employee's self-confidence and self-respect.
Hersey and Blanchard Leadership Styles
S1: High Task/Low Relationship - Telling
S2: High Task/High Relationship - Selling
S3: Low Task/High Relationship - Participating
S4: Low Task/Low Relationship - Delegating
Hersey and Blanchard Subordinate Readiness
R1: Unable and unwilling; insecure
R2: Unable but willing; confident
R3: Able but unwilling; insecure
R4: Able and willing; confident
Vroom-Yetton's Expectancy Theory
,Provides a framework for managers to decide how much participation to solicit from employees
using decision-making approaches: telling, selling, consulting, joining, or delegating.
Charismatic Leaders
Leaders who engage others through their personalities, inspiring emotional connections and
advocating revolutionary ideas.
Transactional Leaders
Based on social-exchange theory, where both manager and employee benefit equally from their
relationship.
Transformational Leaders
Transform organizations through cultural and contextual changes, encouraging risk-taking and
fostering trust and self-actualization among employees.
Connective Leaders
Bring others together to effect change, fostering collaboration, cooperation, coordination, and
collegiality across disparate groups.
Shared Leadership
Recognizes both formal and informal leadership's significance to organizational success,
emphasizing shared governance and empowerment.
Servant Leadership
Puts others' needs above the leader's self-interest, focusing on stewardship for organizational
success.
Transparency
Opposite of secrecy, promoting open access to information, participation in decision-making,
and building trust among stakeholders.
Matrix Structure
Organizational structure where each department operates on an equal basis.
Horizontal Structure
Limited chain of command, granting managers autonomy.
, Committee Structure
Organizational structure where authority and responsibility are held collectively by a group
rather than an individual.
Ad Hoc Committees
Temporary committees formed to carry out a specific project or task as opposed to a standing
committee which is permanent.
Types of Businesses:
Sole Proprietorship: A business owned by one person.
Partnership:
Corporation: A business owned by stockholders who share in its profits but are not personally
responsible for its debts.
Organizational Theory:
Classical principles include:
Chain of command: Exists unbroken from top to bottom.
Unity of command: Each subordinate is accountable to only one superior.
Span of control: Defines the scope of responsibility of a given supervisor.
Management Theory:
A means to accomplish an intended outcome through the work of others. Traditional
management functions:
Plan
Organize
Staff
Lead
Control
Coordinate
Frederick Taylor: Father of scientific management; focused on efficiency through:
Establishment of standards
Time-motion studies
Task analysis
Job simplification
Productivity incentives