Principles of Management CLEP Study Guide 5 of 7 1 of 52 Barnard developed the Acceptance Theory of Authority, which states that a manger's authority only exists when it has been accepted by the person it is being exercised on. Chester Barnard, in his book The Functions of the Executive, defined the ideas which make up the Acceptance Theory of Authority. It basically means that to some extent, until an employee accepts a manager's authority over him, the manager has no authority over that employee. 2 of 52 Directing is the management function which involves influencing the employees to actually do what needs to be done to meet organizational objectives. This is the directing, or leading , function of management. The five management functions are planning organizing, staffing, directing/leading, controlling. 3 of 52 Power is defined as the ability to influence individuals, groups, decisions, or events. 4 of 52 Legitimate power is derived from the manager's position--a certain amount of authority is assigned to that position. Legitimate power is the basis of a manager's power in a formal organization 5 of 52 Reward power is derived from the number of positive rewards which a potential leader is seen as controlling. Reward power is based on the leader's ability to hand out rewards or control access to desired services. 6 of 52 Coercive power is derived from people's perceived expectation that they will be punished in some way if they do not comply with the potential leader's commands. This is called coercive power, for example, slaves working for fear of being whipped. 7 of 52 Expert power is based on the potential leader's expertise or knowledge in the area in which he is trying to influence others. Expert power occurs when subordinates believe the leader has superior knowledge and technical abilities relevant to the task at hand. It is the perception that is important, subordinates must perceive that the leader is an expert regardless of the true level of expertise. If this is not perceived, no expert power exists. 8 of 52 Referent power is based on a potential leader's charm, courage, or some other trait which induces admiration or respect in his followers. Referent power is very similar to what Max Weber described as charismatic authority. 9 of 52 There are three approaches to leadership. The trait approach believes in permanent traits that a person is born with which make him an effective leader. 10 of 52 There are three approaches to leadership. The behavioral approach believes it is how the leader behaves which makes him an effective leader. There are two famous studies which contributed to the behavioral approach--the University of Michigan and the Ohio State University leadership studies. 11 of 52 The Ohio State University and University of Michigan leadership studies came up with two similar dimensions to effective leadership- consideration and production-centered supervision. The two studies had different names for these dimensions, but they roughly boil down to consideration and production-
centered supervision. Consideration means showing consideration for the employee--listening, being
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