1. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Advanced Organizational Management Chapter 6: Organizational Leadership

2. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 2 Leadership and Leaders Leadership is the exercise of influence by one person over another; the follower behaves as the leader directs Process includes guiding, directing, and influencing activities toward organizational goals Management refers to the process of achieving results through people and resources; includes organizing, planning, influencing, and controlling All managers are not true leaders; may lack influencing skills/abilities

3. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 3 Leadership—Authority and Motivation Authority is the formal right to command, set group goals, and direct efforts toward a goal  Formal and informal authority  Legal rights  Acceptance of authority Leaders have the ability to influence people  They should be aware of motivational theories to be effective

4. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 4 Power of a Leader Motivational factor Types of power include legitimate, reward, coercive, expert, and referent Categories of power include position power and personal power Responses to power may be in the form of resistance, compliance, or commitment Zone of indifference; acid test of power Abuses of power and leadership exist

5. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 5 Developing Leadership Ability Life-long endeavor Gain knowledge and experience in a variety of ways and settings Types of knowledge include political, bureaucratic, technical, and professional Gaining power and using it effectively, both personal and professional Affiliation and support from subordinates, peers, and supervisors Support supervisors; most important alliance Coordinate projects to complete them efficiently

6. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 6 Types of Organizations Classical organizational theory uses strict structures  Divides organizations according to function; pyramid-like chain of command Neoclassical organizational theory is a criticism of classical theory; a ttempt to humanize the rigid structure  Follows workflow and productivity of classical, but meets employee needs Contemporary organizational theory looks at the organization as system composed of people, formal structures, small groups, roles, and physical environment

7. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 7 Managing People Theory X looks at employees as lazy (avoid work) and requiring constant monitoring to perform  McGregor argued it was a self-fulfilling prophecy Theory Y is more optimistic; based on needs of affiliation, self-esteem, and self-actualization Theory Z (William Ouchi) finds a balance between Japanese and American business; seven dimensions Participatory management involves participation in different forms

8. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 8 Organizing Work and Delegating Authority Principles of organization include unity of command, span of control, departmentalization, commensurate authority, and the exception principle The organization process establishes a grouping of persons with needed equipment and materials to meet objectives; five factors must be dealt with Line authority is direct authority, staff authority is advisory and supervisory, and functional authority is the right granted by top management

9. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 9 Authority and Responsibility Authority is the right to command, the right to exercise the legitimate power; includes line, staff, and functional Responsibility is the complement of authority; duty or obligation to exercise the authority to achieve Directing and leading people through business processes requires effective delegation of authority  Clearly defined assignments, specified limits of authority, employee participation, established feedback, and administrative controls

10. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 10 Empowerment Extension of delegation in which power and responsibility for relevant decision-making is extended to the employee as long as he or she has knowledge, power, and resources necessary Sharing responsibility includes many methods; can be represented on a continuum Motivation through empowerment; arises through internal rewards more than external Participation and involvement; increased skills and expectations

11. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 11 TQM W. Edwards Deming’s belief in total quality as a constant standard for industry Advocated the use of statistical measures to track quality Basic premises of TQM rely on satisfaction of multiple customers with products or services, employee empowerment, and use of statistical tools Deming’s absolutes of quality; 14 rules Requires an attitude about quality as a guiding force in work life

12. CPS ® and CAP ® Examination Review ADVANCED ORGANIZATIONAL MANAGEMENT By Garrison and Bly Turner ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 12 Success of Empowerment Advantages include improve productivity, improve quality, improve job satisfaction, greater responsiveness, and problem-solving Disadvantages include poor training/significant costs, pressure to achieve corporate goals cannot be disguised as empowerment; empowerment is not a shortcut Steps to empowerment must be followed to reap the advantages over the disadvantages