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Review for BUS206 2nd Test (133).docx
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  1. Describe the five sources of managerial power.

Leadership- the process by which an individual exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals.

  1. Legitimate power- the authority that a manager has by virtue of his or her position in an organization’s hierarchy.

  2. Reward power- the ability of a manager to give or withhold tangible and intangible rewards.

  3. Coercive power- the ability to persuade someone to do something that he or she otherwise would not.

  4. Expert power- power that is based in the special knowledge, skills, and expertise that a leader possesses.

  5. Referent power- power that comes from subordinates’ and coworkers’ respect, administration and loyalty

  1. Describe the evolution of leadership theory from the early Behavioural models to Contingency models.

The behaviour model of leadership describes 2 kinds of behaviour that mosr leaders engage in: consideration and initiating structure. The managerial grid represents 5 styles of leadership based on the degree of behaviour along these 2 dimensions.

Consideration- behaviour indicating that manager trust, represents, and cares about about subordinates.

Initiating- ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.

Contingency models take into account the complexity surrounding leadership and the role of the situation in determining whether a manager is an effective or ineffective leader.

  1. Compare and contrast Transactional and Transformational leadership.

Transactional leaders generally motivate their subordinates to meet expectations by rewarding high performance and extinguishing undesirable behaviours.

Transformational leadership occurs when managers have dramatic effects on their subordinates and on the organization as a whole and inspire and energize subordinates to solve problems and improve performance. These effects unclude making subordinates aware of their of the importance of their own jobs and high performance; making subordinates aware of their own needs for a personal growth, development, and accomplishment; and motivating subordinates to work for the good of the organization and not just their own personal gain. Managers can engage in transformational leadership by being charismatic leaders and by engaging in developmental consideration, Transformational managers also often engage in transactional leadership by using their reward and coercive powers to encourage high performance.

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