Management 100 - Exam #1 - Practice Questions

1. What best describes the relationship among the four main functions of
management?
D. Various combinations of the four activities usually occur simultaneously.
. Which one of the follo!ing is "#$ a %e& to harmon& de'eloped b& (rederic% W.
$a&lor?
D. Increase the work pace to get the most out of your employees
). *nder !hich categor& of management do super'isors+ office managers+ and foreman
fall?
B. First-line management
,. Which management function re-uires managers to ma%e decisions on the four
(undamental elements of ob.ecti'es+ actions+ resources+ and implementation?
B. Planning
/. 0dentif& the most important reason for ha'ing ob.ecti'es?
C. o help translate organi!ation"s broa# social purposes into measurable
terms
1. When businesses define their ob.ecti'es in terms of customer satisfaction+ 22222
re-uires them to translate customer satisfaction into meaningful areas and
measures.
B. Planning
3. 0dentif& the term !hich refers to the process of using past and current information
to predict future e'ents+ permitting managers to test the effect of a course of action.
D. Forecasting
4. 5unlight 5hade 0nc. !ould li%e to de'elop a ne! product !ithin the next t!o &ears.
Managers need to !rite a plan that includes the specific time frame and detailed
ob.ecti'es about the product -ualit&+ primar& mar%ets+ rollout schedule+ etc. What
plan !ill the managers need to !rite6
D. single-use plan
7. 0dentif& an important ph&sical characteristic that has been consistentl& associated
!ith leadership.
D. $nergy level
10. 8ccording to 9ensis :i%ert+ !hat are the human aspect factors that successful leaders
(ocus on !hen attempting to build effecti'e team!or%?
B. %upportive& consi#erate& no punitive employee-centere# behavior
11. 2222 refers to person-oriented beha'ior in !hich the leader exhibits friendship+
trust+ respect+ and !armth to!ard subordinates.
D. Consi#eration
1. :eaders !ho emphasi;e 22222tend to insist that subordinates follo! rigid structures
in !or% methods< the& insist on being informed< the& push their subordinates for
greater effort< the& decide in detail !hat shall be done and ho! it shall be done.
'. Initiating structure
1). $he 22222leader in the managerial grid is primaril& concerned !ith production and
onl& minimall& concerned !ith people.
'. (& )
1,. 22222theor& sa&s that leadership is a function of personal traits+ beha'iors+ and
en'ironmental circumstances.
D. Contingency
1/. What are the t!o components of maturit&+ in relation to leadership?
B. *ob-relate# an# psychological
11. 0dentif& the theor& that assumes that follo!ers !ill agree !ith a leader=s assessment
of their maturit& le'el and that leaders are percepti'e enough to accuratel& pinpoint
maturit& le'els.
C. +ife cycle theory
13. $he degree to !hich the subordinate=s .obs are routine rather than no routine is
called 22222.
C. ask structure
14. (red E. (iedler=s fit of the leader to the situation approach is called the 22222
theor&.
'. Fie#ler"s +PC theory
17. >ill is a manager !ho leads his subordinates to!ard their organi;ational goals. >ill
is %no!n as a?an6
'. Formal lea#er
0. $he 22222theor& of leadership concludes that leaders are the most effecti'e !hen
the& achie'e a high and balanced concern for both people and tas%s.
'. ,anagerial gri#
Management 100 - Exam #1 - Practice Questions
1. What best describes the relationship among the four main functions of
management?
8. $he& are four separate and unrelated acti'ities.
>. #rgani;ing is usuall& the first function to occur+ follo!ed b& the other
three functions.
@. @ontrolling is usuall& a separate function from the other three functions.
A. Barious combinations of the four acti'ities usuall& occur simultaneousl&.
. Which one of the follo!ing is "#$ a %e& to harmon& de'eloped b& (rederic% W.
$a&lor?
8. $rain people to do the .ob properl&.
>. 9e!ard successful performance b& using an incenti'e pa& s&stem
@. Aisco'er the one best !a& to do a .ob
A. 0ncrease the !or% pace to get the most out of &our emplo&ees
). *nder !hich categor& of management do super'isors+ office managers+ and foreman
fall?
8. Middle-le'el management
>. (irst-line management
@. $op-le'el management
A. 0ntermediate management
,. Which management function re-uires managers to ma%e decisions on the four
(undamental elements of ob.ecti'es+ actions+ resources+ and implementation?
8. @ontrolling
>. Planning
@. #rgani;ing
A. :eading
/. 0dentif& the most important reason for ha'ing ob.ecti'es?
8. $o establish a credo
>. $o formulate a practical 'ision
@. $o help translate organi;ation=s broad social purposes into measurable
terms
A. $o formulate a uniform code of ethics for all units
1. When businesses define their ob.ecti'es in terms of customer satisfaction+ 22222
re-uires them to translate customer satisfaction into meaningful areas and
measures.
8. #rgani;ing
>. Planning
@. @ontrolling
A. :eading
3. 0dentif& the term !hich refers to the process of using past and current
information
to predict future e'ents+ permitting managers to test the effect of a course of
action.
8. (uturistic
>. 5cenario construction
@. 8nal&sis
A. (orecasting
4. 5unlight 5hade 0nc. !ould li%e to de'elop a ne! product !ithin the next t!o
&ears.
Managers need to !rite a plan that includes the specific time frame and
detailed
ob.ecti'es about the product -ualit&+ primar& mar%ets+ rollout schedule+ etc.
What
plan !ill the managers need to !rite6
8. standing plan
>. tactical plan
@. strategic plan
A. single-use plan
7. 0dentif& an important ph&sical characteristic that has been consistentl&
associated
!ith leadership.
8. 8de-uate !eightC
>. 8ppropriate age
@. Dood health
A. Energ& le'el
10. 8ccording to 9ensis :i%ert+ !hat are the human aspect factors that successful
leaders
(ocus on !hen attempting to build effecti'e team!or%?
8. @onsiderate+ emplo&ee-centered+ supporti'e beha'ior
>. 5upporti'e+ considerate+ no puniti'e emplo&ee-centered beha'ior
@. 5upporti'e+ lenient+ di'ersit&
A. 5upporti'e+ considerate+ educational bac%ground
11. 2222 refers to person-oriented beha'ior in !hich the leader exhibits
friendship+
trust+ respect+ and !armth to!ard subordinates.
8. 0nitiating structure
>. Aelegation
@. Wor%flo! management
A. @onsideration
1. :eaders !ho emphasi;e 22222tend to insist that subordinates follo! rigid
structures
in !or% methods< the& insist on being informed< the& push their subordinates
for
greater effort< the& decide in detail !hat shall be done and ho! it shall be
done.
8. 0nitiating structure
>. Management polic&
@. Qualit& standards
A. Wor%flo! management
1). $he 22222leader in the managerial grid is primaril& concerned !ith production
and
onl& minimall& concerned !ith people.
8. 7+ 1
>. 1+ 1
@. /+ /
A. 7+ 7
1,. 22222theor& sa&s that leadership is a function of personal traits+ beha'iors+
and
en'ironmental circumstances.
8. $rait
>. 0ntegrated
@. >eha'ioral
A. @ontingenc&
1/. What are the t!o components of maturit&+ in relation to leadership?
8. 5%ill-related and .ob-related
>. Eob-related and ps&chological
@. @ircumstance-related and bac%ground-related
A. Experience-related and ps&chological
11. 0dentif& the theor& that assumes that follo!ers !ill agree !ith a leader=s
assessment
of their maturit& le'el and that leaders are percepti'e enough to accuratel&
pinpoint
maturit& le'els.
8. @ontingenc& theor&
>. Managerial grid theor&
@. :ife c&cle theor&
A. >eha'ioral theor&
13. $he degree to !hich the subordinate=s .obs are routine rather than no routine is
called 22222.
8. 5tructured designation
>. :inear flo! structure
@. $as% structure
A. Eob-design !or%flo!
14. (red E. (iedler=s fit of the leader to the situation approach is called the
22222
theor&.
8. (iedler=s :P@ theor&
>. (iedler=s :oc% and %e& theor&
@. (iedler=s perfect fit theor&
A. (iedler=s %e&-hole theor&
17. >ill is a manager !ho leads his subordinates to!ard their organi;ational goals.
>ill
is %no!n as a?an6
8. (ormal leader
>. 0nformal leader
@. $itle leader
A. Position leader
0. $he 22222theor& of leadership concludes that leaders are the most effecti'e
!hen
the& achie'e a high and balanced concern for both people and tas%s.
8. Managerial grid
>. >eha'ioral
@. @ontingenc&
A. Path-goal
:E8AE95F0P 5cenario6 Duns Gn $hings+ *nlimited HD*"$*I
Jenn& Jatchem has been selling guns and accessories for &ears at his eighteen local
retail operations in >altimore. >usiness is
al!a&s good during hunting season+ and for the ten months after!ards !hen the !oods
become -uiet again. Phil M. *pp+ the
personnel manager+ is responsible for staffing the managers and cler%s in all of the stores.
#nce e'er& month on 5unda&+ all of
the compan& !or%ers get together at their hangout+ the Jra;& Jlubhaus+ located in
@harles Billage. Fere the& celebrate and
fire their !eapons. 5ince the club is in a sound-proof basement+ !ell insulated and out of
harmGs !a&+ the& ha'e ne'er had
complaints about the noise from the neighbors or had to deal !ith intruders li%e the
police.
8ll of them ha'e permits for their !eapons and %no! ho! to handle firearms. $his is a
.ob re-uirement since the& often ha'e to
protect themsel'es from intruders !ho are not serious customers+ but !ho seem to expect
to be gi'en guns e'en !hen the&
alread& ha'e some of their o!n.
KAitt&K Aoit+ the sales BP+ has been ha'ing trouble !ith man& of the retail managers !ho
donGt seem to be sho!ing up for the
celebration Hi.e. sales meetingI. $he sales in these stores seem to be do!n+ and the
managers donGt appear to be concerned
about the reduction in sales 'olume. >oth Aitt& and Phil %no! that moti'ating !or%ers is
the leaderGs primar& responsibilit&.
$herefore+ the& ha'e as%ed &ou+ a high-priced personnel consultant+ to help sol'e !hat
the& thin% is a leadership problem.
5hould the& de'elop teams+ super'ise them indi'iduall&+ or .ust lea'e them alone? WhatGs
happening no! it isnGt !or%ing. $he&
tell &ou that the personnel in these stores are usuall& strong !illed+ li%e to do things their
o!n !a&+ and sometimes can get prett&
insistent about it. 8 couple ha'e e'en suggested the& ma& re'olt and ta%e o'er the Jra;&
Jlubhaus to start a ne! club of their
o!n.
*pp and Aoit !ant &ou to find the magic bullet that !ill restore the !or%ersG commitment
to Duns nG $hings and bring re'enues
bac% to !hat the& !ere li%e in the good Gole da&s. $herefore+ he has contracted &ou at
L000 a da&+ to de'elop a leadership
de'elopment plan for training store managers or finding ne! ones if need be+ !ho can
successfull& lead the compan& into the
next centur&. 8s part of the contract+ the& ha'e offered to pro'ide &ou !ith sufficient
firepo!er to get the .ob done.
$he contract !ith Duns nG $hings specifies that &ou !ill6
1. Aecide on !hat leadership approachHsI to implement.
. Ae'elop a plan to train managers or hire ne! ones.
). *se sound reasoning to .ustif& !h& &our leadership plan !ill !or% for this compan&.
,. Fa'e the managers on the line b& the end of the &ear.
/. Ma%e sure the plan !onGt bac%fire.
1. Fa'e it done b& the contract deadline or suffer the conse-uences
Case %tu#y on +ea#ership %tyles
1. Ae'on seems for me to ha'e tas%-oriented or transactional lea#ership style. Fis
opinion about being a leader is that the one !ho is successful should be able to exert
po!er. $he transactional leader is pro'ided !ith the po!er for particular tas%
performance+ as !ell as for the re!ard and punishment of his subordinates. 8nd Ae'on
considers that leadership constitutes predominantl& actions the person ta%es !ith his
emplo&ees. (or him it is e'er&thing about appropriate punishment and re!ard. Fe insists
on ma%ing the .ob and tas%s of the emplo&ees less complicated and challenging b&
assigning them exact amount of those !ith definite instructions+ and then .ust ensures that
his subordinates possess ade-uate resource base for tas% fulfillment. 0t is ho!
transactional leader acts- he leads the group of people b& setting particular goals to it to
accomplish+ and then possess enough po!er for e'aluation+ correction and training of the
emplo&ees !hen the expected goals are not reached and re!arding them in the opposite
caseH>urns+ 1734I. Ae'on can be called to some extent a ser'ant leader as !ell
HDreenleaf+ 1733I+ as this %ind of leader facilitates ob.ecti'e accomplishment b&
pro'iding team !ith all necessar& resources so that it be producti'e. 8s a tas%-oriented
leader+ Ae'on !ould focus on the specific tas%s and .ob that should be done assigned to
each emplo&ee to reach some goal. $his leadership t&pe presumes close super'ision of
the team to ensure that all expected results are achie'ed. Ae'on also insists that his %e&
feature is being a leader !ho is guided !ith the sense of fairness+ and he !ould re!ard
and punish .ustl&+ as !ell as he also claims that his emplo&ees !ould perform on the high
le'els and be satisfied !ith their .obs.
#n the other hand+ 0sabella=s leadership st&le is -uite different. E'en though she
ac%no!ledges the necessit& in setting appropriate goals to emplo&ees and gi'ing them
guidance+ as !ell as re!arding and punishing them in accordance !ith the performance+
she also sees that in the situation of -uic%l& gro!ing business en'ironment it is not
enough to be the proacti'e successful leader. 0sabella considers that the true leader should
moti'ate its team be&ond formal .ob re-uirements and it is not enough that emplo&ees
.ust complete automaticall& their tas%s. 5he claims that in order to sur'i'e+ the strong
leader should challenge emplo&ees to loo% ahead and contribute !ith their ideas. 5haring
'ision !ith emplo&ees+ ha'ing the same goals !ith them are her main strategies that
!ould allo! achie'ing and sustaining competiti'e ad'antage at the mar%et. 5he insists on
moti'ating each emplo&ee to be creati'e and inno'ate and impact the compan&=s
performance the best the& can+ as onl& !hen the staff is highl& moti'ated+ the compan&
can reach outstanding results and be compan& leader. 5he tends to be the transformational
leader !ho moti'ates its emplo&ees to be efficient and effecti'e. @ommunication for such
leaders is the most important thing in achie'ing goals. $ransformational leader is also
'er& 'isible and in'ol'es the chain of command to get the .ob fulfilled. Fe also focuses
on the greater picture+ and therefore needs to be surrounded b& people !ho are 'er&
attenti'e to details. $ransformational leader also is al!a&s loo%ing for ne! ideas that help
the !hole organi;ation reach its 'ision.
. 5pea%ing about the effecti'eness of leadership st&les of both Ae'on and 0sabella+ 0
!ould li%e to mention that in different situation frames the& could be both effecti'e+ but 0
!ould li%e to gi'e m& 'ote for effecti'eness to 0sabella. 0n the situation of rapid
economic and social changes+ rapid gro!th of competiti'e mar%et+ ha'ing the .ob
properl& done is not enough. $he compan& should be proacti'e and thin% a decade ahead
in order to sustain the competiti'e ad'antage at its mar%et niche. When the .ob is !ell-
done it is 'er& good for the compan&+ but !hen emplo&ees thin% of compan&=s future and
of their o!n future as of one common thing- the& are more moti'ated to perform better
the set performance standards. When emplo&ees thin% outside their box and participate in
generation of ideas and solutions for compan&=s de'elopment+ the& feel themsel'es the
integral part of the compan& and feel that their efforts are appreciated and the& not .ust
mechanic !or%ers. #f course+ there are different %inds of people !ith different !ants and
needs+ but in general people do !or% to be 'aluable to societ& and to feel that their
existence+ their .ob and their ideas and solutions means something to the compan& and its
successful de'elopment. >ut on the other hand+ spea%ing of situational factors+ 0 !ould
sa& that in the situation of financial and economic crisis+ Ae'on=s leadership st&le can
appear more effecti'e. Auring economic crisis+ people=s ideas and solutions are in most
cases not !or%ing+ as the !hole picture at the mar%et tend to be negati'e and the& can do
nothing unless situation changes. 8nd if emplo&ees be still moti'ated to generate ideas
and solutions and the& see that the& do not impro'e the o'erall situation+ it can decrease
their moti'ation to ha'e the .ob done M!ith extrasN. $herefore+ 0 !ould suggest that in
financial crisis+ emplo&ees should be tightl& super'ised so that the .ob be done+ and
accordingl& a!arded or punished !hen the performance is correspondingl& expectedl&
high or lo!.
). 0f 0 !ere Paul+ 0 !ould hire 0sabella+ as nothing is said in the case stud& about the time
period+ and 0sabella=s approach to the matter is more effecti'e. 8s the leader+ according to
Paul+ !ill be responsible for compan&=s future de'elopment+ a successful de'elopment+
then 0sabella can lead the compan& far behind !ith her approach. #ne head is good+ and
ha'ing multiple-e'en better. When the leader in'ol'es emplo&ees in generating ideas and
solutions+ the& are not .ust more moti'ated to impact+ but the compan& can simple ha'e
more profound 'ision of !hat should be done+ or ho! the problem can be resol'ed in the
most effecti'e !a&. >eing proacti'e+ !ith simultaneous concentration on the details and
short-term performance+ 0sabella !ould understand !hat her emplo&ees and the mar%et
needs+ de'elop creati'e solutions. 0sabella possesses the 'ision that is+ along !ith other
traditional leadership -ualities+ is the most important -ualit&.
,. 8s 0 ha'e alread& mentioned+ Ae'on=s leadership st&le lac%s 'ision+ he seems to be
more concentrated in the present picture and does not see far in the future. 0 don=t claim
that it is the bad -ualit&+ but also in the organi;ational structure he better appear as
0sabelle=s subordinate+ that still ha'e his o!n subordinates. Fe !ould be the good tas%
performer and not the true leader !ithin the frame of rapidl& gro!ing mar%ets. Ae'on+
being also tas%-oriented leader+ !ould need to spend much of his time for close
super'ision and control to ensure that the .ob is properl& done. Fe seems that he !ill
sho! no in'ol'ement in teams needs and moti'ation+ as pro'iding people !ith
punishment and re!ard is not -uite enough. $he emplo&ees= commitment !ill also be
lo!er+ then that of !ith transformational leadership st&le.
8s to the dra!bac% of the 0sabella=s transformational leadership st&le+ 0 can mention that
she can become 'er& much dependable on the intellectual capabilities of her subordinates
in order to be successful. 0n other !ords+ emplo&ees should be smart enough to generate
those ideas and solutions.
/. :et me start !ith the -uestion O !h& emplo&ees are moti'ated? 8nd the ans!er !ill be
simple- in order to sur'i'e. People are changing their !or%places 'er& often- the& are
interested in better conditions+ better attitudes+ better .ob+ friendl& en'ironment+ better
salar& Hthough 0 mentioned it the last+ it is one the min moti'ational factorsI. When
emplo&ees in an organi;ation are moti'ated to do the .ob- the organi;ation !ill sur'i'e at
the mar%et+ as if emplo&ees are moti'ated the& sho! better results and are more
producti'e+ then those !ho .ust do their .ob !ithout personal in'ol'ement to the matter.
0n order that the organi;ational performance is effecti'e+ the leader or manager should
primaril& understand !hat moti'ates his or her subordinated to ha'e the .ob done+ !ithin
the .ob the& do. Moti'ation issue is 'er& complex+ as it in'ol'es anal&sis of numerous
factors. >ut in general+ according to Eames :indner H1774I there are ten moti'ational
factors that include .ob securit&+ s&mpathetic help !ith personal problems+ personal
lo&alt& to emplo&ees+ interesting tas%s+ good !or%ing conditions+ discipline that is tactful+
merit !ages+ promotion and gro!th+ feeling of being in on things+ and finall& full
appreciation of the done !or%. $hree main moti'ation factors are Hin the order of
importanceI interesting !or%+ good !ages and full appreciation of done !or%.
0n order to understand !hose emplo&ees can be more moti'ated to do the .ob+ let=s
assume that the& all ha'e rather high salar&. 0n other !ords+ the& are e-uall& moti'ated to
ha'e the .ob effecti'el& done+ as+ according to Maslo!=s need hierarch& theor&+ their
ph&siological factor is ta%en into consideration and satisfied HMaslo! 17,1I. 8nd let=s
assume that all !or% that Ae'on=s and 0sabella=s subordinates !ould be assigned is
interesting + then emplo&ees !ould be also e-uall& moti'ated to do best !ith their .ob+ as
their self-actuali;ation factor !ill be also considered. 8s both Ae'on and 0sabella agree
that good performance should be appreciated+ then esteem factor !ill also be ta%en into
consideration and subordinates of both leaders !ill be e-uall& moti'ated. >ut 0 am still
sure that 0sabella=s subordinated !ill be more moti'ated not .ust to ha'e the .ob done+ but
also it !ill be done faster and better. Fer emplo&ees !ill en'ision themsel'es as the part
of the mechanism+ as the& !ill be communicated in such a manner. 8s the& !ill be able
to generate ideas and thoughts+ the& !ill no longer feel themsel'es as simple performer.
Emplo&ees !ill feel the& the organi;ation cannot sur'i'e+ as the& !ill ha'e the common
goal and 'ision !ith it.
>oth Ae'on=s and 0sabella=s emplo&ees can be 'er& satisfied !ith !hat the& are doing for
.ob. 8s .ob e'aluation is the positi'e feeling regarding the .ob that results from its
e'aluation+ in both cases the& !ill be a!arded for achie'ing successful results+ but in
0sabella=s case+ emplo&ees can be more satisfied+ as the& get not .ust financial re!ard for
their efforts H!hich is alread& a huge satisfaction factorI+ but also feel that the& ha'e done
something outstanding. $he& are more satisfied as the& can perform be&ond their
standard duties and be re!arded for that+ the& can be more proud of themsel'es and of
the successful compan& results in general. Ae'on=s subordinates can also feel that+ but in
much less extent as the& are not moti'ated to impact more+ the& are doing !hat the& are
assigned to do H5mith 177,I.
Aepending of the personalit& of the person+ s?he trusts in the particular leader t&pe.
Ae'on and 0sabella can be e-uall& trusted as leaders+ and it predominantl& depends on the
personalit& t&pes and essence of .ob of the subordinates !hom to trust in the greatest
extent. M& opinion that Ae'on can be more trusted b& conser'ati'e people or b&
emplo&ees that don=t ha'e a lot of experience. #n the other hand+ 0sabella !ill be trusted
b& proacti'e people+ as she is proacti'e and !ill attract people !ho share her 'alues and
'ision as a leader.
#rgani;ational commitment is said to be the state in !hich the emplo&ee identifies
himself !ith the particular compan&+ and maintains its !ishes and ob.ecti'es to be its
member. $his notion is tightl& connected !ith .ob in'ol'ement+ !hich is generall&
referred to as the degree to !hich people ps&chologicall& identif& !ith their position and
.ob and consider their le'el of performance essential to self-!orth. 0sabella=s
subordinated !ill definitel& ha'e greater .ob in'ol'ement and in the long run !ill care
more about !hat and ho! the& are doing. 0sabella also in'ol'es in her leadership
approaches !hat is called ps&chological empo!erment that is said to be the beliefs of the
emplo&ees in the extent to !hich the& affect and impact their !or% en'ironment+
meaningfulness and purposefulness of their .ob. >& in'ol'ing subordinates to the
decision ma%ing+ generating ideas and finding solution for harsh situations+ 0sabella !ill
ma%e her emplo&ees feel that their !or% is significant to the !hole organi;ational
mechanism. 9eturning to the organi;ational commitment+ it has three dimensions6
affecti'e commitment+ continuance commitment and normati'e commitment. 8ffecti'e
commitment is emotional attachment to the compan&+ sharing its 'ision and belie'ing in
its 'alues. 8s 0sabella is going to communicate emplo&ees= 'ision and e'er&thing+ her
subordinates can ha'e greater affecti'e commitment. @ontinuance commitment is the
percei'ed economic 'alue of sta&ing !ith compan& for a long time period H5mith 177,I.
E'en though salar& issues here are 'er& important+ the appreciation of the performance
pla&s not the least role here. Ae'on=s subordinates can be paid !ell in an& organi;ation+
but it is the -uestion !hether 0sabella=s emplo&ees !ill share 'alues and 'ision and be so
important in the other compan&. #f course+ different people ha'e different 'alue and can
care for !ages onl&+ and there are 'ar&ing situations+ but 0 am spea%ing of a'erage most
probable situation.
"ormati'e commitment is the emplo&ee=s commitment that s?he is obliged to sta& !ith
the compan& for moral and ethical reasons. Aue to the fact+ that 0sabella=s subordinated
are supposed to ha'e greater .ob in'ol'ement+ the& !ould correspondingl& ha'e greater
normati'e commitment.
1. 8ccording to Ae'on=s leadership st&le 0 !ould suggest he can more effecti'e in the
centrali;ed organi;ational structure. 0n centrali;ed organi;ational structure decision-
ma%ing authorities are assigned to higher le'els of organi;ational hierarchies. 8lso+
information+ %no!ledge and ideas are concentrated at the top and it is the leader !ho
assigns tas%s and super'ises the performance. @entrali;ed organi;ational structure has
man& ad'antages. (irst of all it has emphasis on top-do!n control+ strateg& and
leadership. Aecision-ma%ing process is authoritarian+ 'isionar& and charismatic.
#rgani;ational changes are shaped b& top+ !hich is not that good !hen the leader doesn=t
possess 'ision. Execution is also said to be fast and coordinati'e+ and people are able to
respond rapidl& to main changes and issues. 8nd finall& !hat is trul& good is that there is
a lo! ris% of conflicts and misunderstandings bet!een organi;ational parts HEudge 003I.
0sabella can be also a successful leader !ithin the frame of centrali;ed organi;ational
structure+ though 0 !ould suggest more effecti'eness to her leadership st&le in
decentrali;ed on. Aecentrali;ed organi;ational structure presumes transferring and
assigning decision-ma%ing authorit& to lo!er le'els of organi;ational hierarch&. $he+
%no!ledge+ ideas+ solutions and information are mo'ing from the bottom to the top.
:o!er le'el managers are more autonomous. 8s to the decentrali;ed organi;ational
structure ad'antages+ the& include emphasis on political and learning d&namics+ and
democratic+ detailed and participati'e decision-ma%ing process. #rgani;ational changes
are emerging from interactions and execution is emergent and e'olutionar&. $his t&pe of
organi;ational structure is also flexible to adapt to minor changes and issues+ and is also
emphasi;es on accountabilit& and participation. $here is also the lo! ris% of not-in'ented
here beha'ior HEudge 003I. 0t is ob'ious that not e'er&thing in the decentrali;ed
organi;ational structure matches 0sabella=s approach to leadership< therefore mixed
organi;ational structure is also suggested+ as the attempt to ta%e !hat is best from both
structures and achie'e compromise.
Alvis Corporation
Kevin McCarthy is a manager of a production department in Alvis Corporation, a frm that
manufactures ofce equipment. After reading an article that stressed the benefts of participative
management, Kevin believes that these benefts could be realised in his department if the
workers are allowed to participate in making some decisions that afect them. The workers are not
unionized. Kevin selected two decisions for his experiment in participative management.
The frst decision involved vacation schedules. Each summer the workers were given two weeks-
vacation, but no more than two workers can go on vacation at the same time. In prior years, Kevin
made this decision himself. He would frst ask the workers to indicate their preference dates, and
then he considered how the work would be afected if diferent people were out at the same time.
It was important to plan a vacation schedule that would ensure adequate stafng for all the
essential operations performed by the department. When more than two workers wanted the
same time period, and they had similar skills, he usually gave preference to the worker
with highest productivity.
The second decision involved production standards. Sales had been increasing steadily over the
past few years, and the company recently installed some new equipment to increase productivity.
The new equipment would allow Kevin%u2019s department to produce more with the same
number of workers. The company had a pay incentive system in which workers received a piece
rate for each unit produced above the standard amount. Separate standards existed for each type
of product, based on industrial engineering study conducted a few years earlier. Top management
wanted to readjust the production standards to refect the fact that the new equipment made it
possible for the workers to earn without working any harder. The savings from higher productivity
were needed to help pay for the new equipment.
Kevin called a meeting of his 15 workers an hour before the end of the workday. He explained that
he wanted them to discuss the two issues and make recommendations. Kevin fgured that the
workers might be inhibited about participating in the discussion if he were present, so he left them
alone to discuss the issues. Besides, Kevin had an appointment to meet
with quality control manager. Quality problems had increased after the new equipment was
installed, and the industrial engineers were studying the problem in an attempt to determine why
quality had gotten worse rather than better.
When Kevin returned to his department just at quitting time, he was surprised to learn that the
workers recommended keeping the standards same. He had assumed they know the pay
incentives were no longer fair and would set a higher standard. The spokesman for the group
explained that their base pay had not kept up with infation and the higher incentive pay resorted
their real income to its prior level.
On the vacation issue, the group was deadlocked. Several of the workers wanted to take their
vacations during the same two-week period and could not agree on who should go. Some
workers argued that they should have priority because they had more seniority while others
argued that priority should be based on productivity, as in the past. Since it was quitting time, the
group concluded that Kevin would have to resolve the dispute himself. After all, wasn%u2019t
that what he was being paid for?
1. Analyze this situation using the Hershey-Blanchard model ant the Vroom-Jago model. What
do these models suggest as the appropriate leadership or decision style? Explain your answer.
2. Evaluate Kevin McCarthy%u2019s leadership style before and during his experiment in
participative management.
3. If you were Kevin McCarthy, What would you do now