CLEP Principles of Management

Traditional authority occurs when a leaders authority

This preview shows page 5 - 7 out of 26 pages.

Traditional authority occurs when a leader's authority comes not necessarily from his qualifications, but from the fact that people are used to or supposed to follow him. An example would be a king. Charismatic authority occurs when the leader's authority comes from an ability to charm people, or earn their respect or admiration. Charismatic authority is based largely on the leader's personality. Politicians often display this type of authority. Often leaders of cults who are seen as prophets or gods have great charismatic authority. 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. MANAGEMENT BY OBJECTIVES participative style of management. In MBO, managers and employees establish objectives together. The employee gets a number of goals to achieve, and his performance rating depends on to what extent these goals were accomplished. Responsibility is assigned during operational planning. It is during operational planning, or action planning, that responsibility to accomplish certain objectives is assigned. This is known as Management by Objectives, and was described by Peter Drucker, who came up with the eight Key Results Areas. In MBO, management does not necessarily tell the employee exactly what to do, just what to accomplish. Peter Drucker Defined both MBO and eight Key Results Areas, which every business organization should define goals for. Peter Drucker defined eight Key Results Areas--market share, productivity, profitability, innovation, resources, worker performance, manager performance, and social responsibility. Profitability , one of the eight Key Results Areas, is the benefit resulting from an activity. Peter Drucker defined eight Key Results Areas--market share, productivity, profitability, innovation, resources, worker performance, manager performance, and social responsibility. Innovation , one of the eight Key Results Areas defined by Peter Drucker, is the development of new products and services. EXPECTANCY THEORY (Victor Vroom/ Yetton) – employee motivated to high effort when: expectancy – belief it can be done (confidence) instrumentality – likelihood of receiving outcomes (link to rewards) valence – nature of outcomes received (praise, promotion, bonus) The Expectancy Theory states that a person's motivation is based on three factors--how likely he believes his effort will lead to the desired performance, if he believes his effort will lead to a greater reward, and how much value he places in this reward. This is known as the Expectancy Theory, and defines motivation as equal to the product of Expectancy, Instrumentality, and Valence--Motivation Forces = Expectancy x Instrumentality x Valence.
Image of page 5

Subscribe to view the full document.

Basically, the worker has to believe he can achieve the goals, expect that achieving the goals will give him a reward, and value that reward.
Image of page 6
Image of page 7
  • Winter '12
  • None
  • Management, scientific management

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern