CLEP Principles of Management 1

A chain of command means that orders information etc

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A chain of command means that orders, information, etc. does not go straight from the top executive to the front line worker--it goes down through consecutively lower managers until the worker's supervisor relays the order or information. When a chain of command exists, typically the highest executive does not interact with the lowest worker, and the lowest worker does not go to the top executive about his concerns. An employee must work up, or down through the chain of command. For instance, if a
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manager sees the subordinate of a supervisor doing something inappropriate, he would tell the supervisor, not the subordinate directly. The scalar principle states that every organization needs to have a clear line of authority from the top of the organization to the bottom. The scalar principle is also known as the chain of command principle , and basically states that there needs to be a clear-cut established chain of command. An organization with a decentralized chain of command disperses the authority to include lower levels of mgmt instead of concentrating power at the top. A decentralized organization disperses authority. No organization is either fully centralized or decentralized. a. b. POWER - the ability to influence others in an effort to achieve a goal - also defined as the capacity to either produce or prevent change. Leaders derive power from their followers. Managers derive power from their positions. Reward Power - inducements offered by the manager in exchange for contributions to the job (pay increases, preferred schedules). Reward power is derived from the number of positive rewards which a potential leader is seen as controlling and is based on the leader's ability to hand out rewards or control access to desired services Coercive Power - penalties a manager might impose if the individual or group does not comply with authority. 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. For example, slaves working for fear of being whipped Legitimate Power - a manager’s right to make requests based on position and rank within the organization. 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 Referent Power - based on admiration and respect; a need to identify with the person in power. Expert Power - based on possession of unique skills, knowledge, and competence. Expert power is based on the potential leader's expertise or knowledge in the area in which he is trying to influence others. It 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 Information Power - based on an individual’s access to valued data.
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