BOH4M – Grade 12 Business Leadership Exam

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Fully Formatted Version with diagrams / pictures PDF: Organizational-Studies-Exam-Review

Organizational Studies Exam Review

Challenges of Working in the 21st Century Workplace

  • Intellectual Capital
    • Collective brainpower of a workforce
    • Challenge because change jobs often
    • Globalization
      • Worldwide interdependence of resource flows, product markets and business competition that characterize the new economy
      • No national business boundaries
      • Challenge because have to be wordly and know everything
      • Technology
        • Transformation of workplace through internet, computers, information technology
        • Challenge because increasing demand for skills and always changing
        • Diversity
          • Reflects differences with respect to gender, age, race etc.
          • Challenge because hard to keep everyone happy
          • Ethics
            • Moral principles society requires
            • Emphasis on strength of corporate governance
            • Challenge because everything is online and gets out
            • Careers
              • Not uniformly full0time or limited to one employer
              • Challenge because skills must be portable and of current value

Critical Skills in the New Workplace

  • Mastery
  • Contacts
  • Entrepreneurship
  • Love of technology
  • Marketing
  • Passion for renewal

Organization: collection of people working together for a common purpose


Organizations as Open Systems

  • Composed of interrelated parts that function together to achieve a common purpose
  • Interact with their environment
  • Transform resource inputs into product outputs

Organizational Performance

Productivity: overall measure of the quantity and quality of work performance

Performance Effectiveness: output measure of task or goal accomplishment (reaching goal)

Performance Efficiency: input measure of resource costs associated with goal accomplishment (reaching goal with minimal effort)

Levels of Managers:

  • Top managers: responsible for whole organization
  • Middle managers: in charge of large departments
  • Project manager: coordinate complex spontaneous projects
  • Team leader/ supervisor: in charge of small working group of non-managerial workers

Accountability: the requirement of one person to anser to a higher authority for relevant performance results

Types of Managers

  • Line managers: responsible for work activities that directly affect organization’s outputs
  • Staff managers: use technical expertise to advise and support the efforts of line workers
  • Functional managers: responsible for a single area of activity
  • General manager: responsible for more complex units that include many functional areas
  • Administrators: work in public and non-profit organizations

The Organization as an upside-down pyramid

  • Every individual adds value
  • Manager must support the workers




Qualities of High Performing Managers

  • Build working relationships
  • Help others develop skills and performance competencies
  • Create work environment that is performance driven and provides satisfaction with workers

Functions of Managers- POLC

  • Planning
    • Set objectives and operational plans
    • Organizing
      • Assigning tasks, allocating resources, arranging and coordinating activities of individuals
      • Leading
        • Arousing people’s enthusiasm to work hard
        • Controlling
          • Measuring work performance and taking corrective action

Scientific Management

Fredrick Taylor

  • “father of management”
  • Studied time
  • Support working by planning and removing obstacles

The Gilbreths

  • Studied motion
  • Eliminate wasted motions to improve performance

Administrative Principles

Henri Fayol

  • Management can be taught though POLC

Mary Parker Follett

  • Started Human resource approach
  • Made every employee an owner-creates responsibility

Bureacratic Organization

Max Weber

  • Ideal, intentionally rational efficient organization






  • Clear division of labour
  • Clear hierarchy of authority
  • Formal rules and procedures
  • Impersonality




  • Excessive paperwork or “red tape”
  • Slow
  • Rigidity
  • Resists change
  • Employee apathy



Hawthorne Studies

  • Elton Mayo
  • Tested if lighting affects productivity
  • Failed, but discovered social and human concerns are keys to productivity
  • Hawthorne Effect- people who are singled out for special attention perform as expected

Scalar Chain: there should be a clear unbroken line of communication from the top to the bottom of the organization

Unity of Command: everyone should have one boss

Unity of Direction: one person should be in charge of each department

Maslow’s Theory of Human Needs


Deficit principle: a satisfied need is not a motivator of behaviour

Progression Principle: a need becomes a motivator once the preceding lower-level need is satisfied

McGregor’s Theory X and Theory Y

  • Theory X assumes workers dislike work, lack ambition nd prefer to be led
  • Theory Y assumes workers are willing to work, capable of self control and self-direction
  • Creates self-fulfilling prophecies

Argysis’ Theory of Adult Personality

  • Classical management are inconsistent with mature adult
  • Mature adult needs increasing task responsibility, increasing task variety and uses participating decision making

Ethical dilemma: a situation that requires a choice regarding a possible course of action where there is no clean consensus on “right” and “wrong”

Reasons and Rationalizations for Ethical Dilemmas

  1. The behaviour is not really illegal
  2. The behaviour is in everyone’s best interests
  3. Nobody will ever find out what you’ve done
  4. The organization will “protect” you

Ethics Training: seeks to help people understand the ethical aspects of decision making and incorporate high ethical standards into their daily lives

Whistle-blower: exposes the misdeeds of others

Corporate Social Responsibility: Obligates organizations to act in ways that serve both its own interests and the interests of society at large.

Views of Ethics

  • Utilitarianism View- greatest good to the greatest number of people
  • Individualism View- primary commitment is to one’s long term self-interests
  • Moral Rights View: respects and protects the fundamental rights of all people
  • Justice View: fair and impartial treatment of people according to legal rules and standards

Cultural Relativism: ethical behaviour is always determined by cultural context

Cultural Universalism: behaviour that is unacceptable in one’s home environment should not be acceptable anywhere else.

Strategies for Pursuing Social Responsibility

  • Obstructionist: meets economic responsibilities
  • Defensive: meets economic and legal responsibilities
  • Accommodative: meets economic, legal and ethical responsibilities
  • Proactive: meets economic, legal, ethical and discretionary responsibilities

Corporate governance: the oversight of the top management of an organizatioan by a board of directors.

Perspectives on Corporate Social Responsibility

  • Classical View
    • Management’s only responsibility is to maximize profits
    • Socioeconomic View
      • Management must be concerned for the broader social welfare, not just profits

Competitive Advantage: a competency that sets an organization apart from competitors and gives it an advantage over them in the marketplace

Crosby’s Four Absolutes of Management for Total Quality Control

  • Conformance to standards
  • Defect prevention, not defect correction
  • Quality as a performance standard must mean defect-free work
  • Quality saves money

Organizational Culture: the system of shared beliefs and values that develops within an organization and guides the behaviour of its members

How to Read an Organization’s Culture



Outcomes are valued?




Observable Culture: what one sees and hears when waling around an organization (ex. Stories, heroes, symbols, rites and rituals)

Core Culture: the underlying assumptions and beliefs that influence behaviour and contribute to observable culture.

Characteristics of Multicultural Organizations

  • Pluralism
  • Structural integration
  • Informal network integration
  • Absence of prejudice and discrimination
  • Minimum intergroup conflict

Organizational Subcultures: cultures based on shared work responsibilities and/or personal characteristics

Diversity Leadership Approaches

  • Affirmative/ Advancing Action
    • Commits the organization to hiring and advancing minorities and women
    • Valuing Diversity
      • Omits the organization to education and training programs
      • Managing Diversity
        • Commits to changing the organizational culture

Leadership: the process of inspiring others to work hard to accomplish important tasks

Contemporary Leadership Challenges

  • Shorter time frames
  • Expectations for success on the first attempt
  • Complex, ambiguous, and multidimensional problems
  • Taking a long-term view while meeting short-term demands

Visionary Leadership

  • Vision: a future that are hopes to create or achieve in order to improve upon the present state of affairs
  • Visionary Leadership: a leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully

Power: The ability to get someone else to do something you want done or make things happen the way you want

Sources of Power

  • Position Power
    • Based on manager’s official status in the organization’s hierarchy of authority
    • Reward Power (temporary)
      • Capability to offer something of value
  • Coercive Power
    • Capability to punish or withhold positive outcomes
  • Legitimate Power (temporary)
    • Organizational position or status confers the right to control those in subordinate positions
    • Personal Power
      • Expert Power (enduring)
        • Capacity to influence others because of one’s knowledge and skills
  • Referent Power (enduring)
    • Capacity to influence others because they admire you and want to identify positively with you

Power and Influence are affected by:

  • Centrality
  • Criticality
  • Visibility

Empowerment: the process through which maagers enable and help others to gain power and achieve influence

Effect Leaders Empower with:

  • Information
  • Responsibility
  • Authority
  • Trust




Leadership Behaviour

  • Blake and Mouton Leadership Grid


  • Classic leadership styles:
    • Autocratic Style (authority-obience)
      • Emphasizes task over people
  • Lassiez-faire style (country club)
    • Emphasized people over task
  • Democratic Style (team)
    • Committed to task and  people


  • Fiedler fits
  •  Leadership style is a part of personality
  • Leadership style must fit to situation
  • Task oriented: high or low control
  • Relationship-oriented: moderate control






  • Leaders adjust their styles depending on situation





House’s Path-Goal Leadership Theory

  • Make a path and remove obstacles for subordinates
    • Directive Leadership

~   Set expectations, directions, schedule, standards

~   Use when job assignments are ambiguous

  • Supportive Leadership

~   Work is pleasant, treat equally, friendly, concerned with others

~   Use when worker self-confidence is low

  • Achievement-oriented Leadership

~   Set challenging goals, expect a lot, emphasize improvement

~   Use when task challenge is insufficient

  • Participative Leadership

~   Involves subordinates, consults, asks and uses suggestions

~   Use when performance incentives are poor

Vroom-Jago Leadership Participation Theory

  • Helps leaders choose the method of decision making
  • Choices:
    • Authority decision
    • Consultative decision
    • Group decision

Superleaders: person whose vision and strength of personality has an extraordinary impact on others

Charismatic Leaders: develop special leader-follower relationships and inspire others in extraordinary ways

Transactional Leadership: someone who directs the efforts of others through tasks, rewards, and structures

Transformational Leadership: someone who is truly inspirational as a leader and who arouses others to seek extraordinary performance accomplishments

Drucker’s Old Fashioned Leadership

  • Leadership is more than charisma; it is good old fashioned hard work

Common Problems with Teams

  • Personality conflicts
  • Ambiguous agendas
  • Individual difference in work styles
  • Ill-defined problems
  • Poor readiness to work

Team Effectiveness=quality for inputs + (process gains-process loss)

Stages of Team Development

  1. Forming
  2. Storming
  3. Norming
  4. Performing
  5. Adjourning

Motivation: The forces within the individual that account for the level, direction, and persistence of effort expended at work

Reward: A work outcome of positive value to the individual

Intrinsic Reward: valued outcomes that occur naturally as a person works on a task

Extrinsic Reward: valued outcomes given to someone by another person

When linking reward and performance:

  • respect diversity and individual differences, understanding what everyone wants
  • allocate rewards to satisfy interests of both organization and individual

Content Theories of Motivation


Maslow: Hierarchy of Needs

  • Deficit Principle: a satisfied need is not a motivator of behaviour
  • Progression Principle: a need at one level does not become activates until the previous is satisfied

Alderfer: ERG Theory

  • Frustration Regression Principle: an already satisfied lower-level need becomes reactivated when a higher level need becomes reactivated when a higher-level need is frustrated

Herzberg: Two-Factor Theory

  • Hygiene Factor: Source of job dissatisfaction; external
  • Satisfier Factor: Source of job satisfaction and motivation; internal

McClelland: Acquired Needs Theory

  • Need for Achievement (nAch)- desire to do something better
  • Need For Power (nPower)- desire to control others
  • Need for Affiliation- (nAff)- desire to establish relationships

Equity Theory of Motivation

  • When people think there is unfairness, they try to eliminate discomfort and restore perceived equity
  • Employees change work inputs, rewards received, comparison points and situation
  • Do not underestimate pay as a source of equity controversy (overpaid=guilt, underpaid= anger)

Expectancy Theory- Victor Vroom

  • Expectancy- belief that working hard will result in desired level of performance
  • Instrumentality- belief that successful performance will be followed by reward
  • Valence- value a person assigns to rewards
  • M= ExIxV (if one is low, motivation will be low)

Goal Setting Theory

  • Developed by Edwin Locke
  • Properly set and well managed task goals are very motivating
  • Motivational effects and key principles:
    • Provide direction with specific goals
    • Set challenging goals with clear expectations
    • Establish a frame of reference for and provide goal feedback
    • Reward goal accomplishments
    • Management by Objective(MBO) promotes participation


Incentive Compensations

  • Skill-Based Pay: pay links to job relevant skills
  • Bonus Pay Plan: lump-sum pay based on specific performance
  • Profit-Sharing Plans: employees receive portion of profits
  • Gain-Sharing Plans: group share in savings realized through their specific efforts
  • Employee Stock Ownership Plans: employee s own stock in their employer




Operant Conditioning Strategies

  • Controls behaviour by manipulating its consequence
  • Law of Effect- impact of type of consequence on future behaviour

Unpleasant                 Pleasant




Communication: The process of sending and receiving symbols with meanings attached Elements of Communication Process: Sender, Message, Communication Channel, Receiver, Meaning, and Feedback

Communication Barriers

  • Anything that interferes with the communication process
  • Includes noise, poor choice of channels, poor written or oral expression, failure to recognize non-verbal signals, physical distractions and status effects.


Active Listening: the process of taking action to help someone say exactly what he or she really means

Feedback: The process of telling others how you feel about something they did, said, or the situation in general

Constructive Feedback Guidelines: direct, specific, when willing to accept, valid, in small doses



  • the use of interpersonal space, an important non-verbal cue
  • workspace layout has an impact on communication and behaviour


Ethnocentrism: the tendency to consider one’s culture superior to any or all others and act in a negative way towards them


Barriers to Effective Communication

  • Stereotypes: when attributes commonly associated with a group are assigned to an individual
  • Halo Effect: when one attribute is used to develop an overall impression of a person or situation
  • Selective Perception: the tendency to define problems from one’s own point of view
  • Projection: the assignment of personal attributes to an individual


Major Causes of Conflict

¾    Role ambiguity

¾    resource scarcities

¾    task interdependencies

¾    competing objectives

¾    structural differentiation

¾    unresolved prior conflict

Types of Conflict

  • Substantive: disagreements about specific goals, resources etc
  • Emotional: disagreement from feelings
  • Functional: constructive conflict
  • Dysfunctional: destructive conflict


Co-operativeness: desire to satisfy someone else’s needs

Assertiveness: desire to satisfy own needs

Distributive Negotiation: focuses on claims made by each party, leading to a win-lose outcome


Principled Negotiation: based the outcome of merit of individual claims, leading to win-win outcome


Mediation: a neutral third party aims to improve communication, coming up with solution ideas

Arbitration: a neutral third party acts as a judge and creates a binding decision

Corporate Strategy: sets long term direction for the total enterprise

Electronic Commerce: the process of buying and selling goods thought the use of the internet

B2B: Business to Business

B2C: Business to Consumer

Programmed Decisions: applies solutions that are readily available

Non-Programmed Decisions: develop novel solutions to meet demands of unique situations

Crisis: an unexpected problem that could lead to a disaster

Decision Support System: interactive system that allows users to organize and analyze data for complex problem solving

Problem Avoiders: inactive in gathering information

Problem Seekers: Proactive in anticipating difficulties

Problem Solvers: reactive in gathering information

Systematic Thinkers: approaches problems rationally, step by step

Intuitive Thinker: flexible approach, spontaneous and uses gut feelings

Short Range Plan: covers one year or less

Long Range Plan: Covers three or more years into the future

Management by Objective (MBO)- structured process of regular communication where supervisors and workers jointly set objectives

Strategic Plans: Identifies long term directions for the organization

Operational Plans: Identifies activities to implement strategic plan

Retrenchment: corrects weaknesses by making changes to current ways of operating

Diversification: Acquiring of new investment in new and different business areas

Strategic Alliance: Organizations join together in partnership to pursue an area of mutual interest

Portfolio Planning: Seeks the best mix of investments amount alternative business opportunities

Planning Process

  1. Define Objective
  2. Where you stand
  3. Develop Premise of future condition
  4. Analyze/choose among alternatives
  5. Implement plan/evaluate results


BCG Matrix

  • Analyzes business opportunities according to market growth rate and market share


Control Process

  1. Establish objectives
  2. Measure actual performance
  3. Compare results with objectives
  4. Take corrective action

Concurrent Controls: Focuses on what happens during action

Feedback Controls: focuses on past action

Standing plan: used more than once i.e. policies

Zero-based budget: allocate resources as if it were the first time

Progressive discipline: tying reprimands to the severity of the infraction

Expert Systems: software systems use AI to mimic the thinking of human experts using codes “if…then…”

Availability Heuristic: people use information that is readily available from memory as a basis for assessing a current event/situation

Representative Heuristic: people assess the likelihood of something happening based upon its similarities to a stereotypes set of occurrences

Anchoring and Adjustment Heuristic: people make decisions based on adjustments to a previously existing value or starting point

Escalating Commitment: tendency to increase effort and apply more resources to a course of action that is not working

Mechanistic Designs- stability

  • Predictable goals
  • Centralized authority
  • Many rules and procedures
  • Narrow spans of control
  • Specialized tasks
  • Few teams and task forces
  • Formal and impersonal means of coordination

Organic Designs- growth

  • Adaptable goals
  • Decentralized authority
  • Few rules and procedures
  • Wide spans of control
  • Shared tasks
  • Many teams and task forces
  • Informal and personal means of coordination

Stress: Is a state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities.

Stressor: Is anything that causes stress

Type A personality: Is a person oriented toward extreme achievement, impatience, and perfectionism

Constructive stress: Acts in a positive way to increase effort, stimulate creativity, and encourage diligence in one’s work.

Destructive stress: Impairs the performance of an individual.

Job burnout: Is a physical and mental exhaustion

Small-batch production: A variety of custom products are tailor-made to order.

Mass production: A large number of uniform products are made in an assembly-line system.

Continuous-process production: A few products are made by continuously feeding raw materials through a highly automated production system with largely computerized controls

Top-down change

  • Strategic and comprehensive change that is initiated with the goals of comprehensive impact on the organization and its performance capabilities.
  • Success depends on support of middle-level and lower-level workers

Bottom-up change

—  The initiatives for change come from any and all parts of the organization, not just top management.

—  Made possible by:

–        Employee empowerment, involvement and participation

Integrated change leadership.

  • Successful and enduring change combines advantages of top-down and bottom-up approaches.

Transformational and incremental change

  • Unplanned change

Organizational Design: the process of creating structures that accomplish the organization’s objectives

Organizational Structure: a system of reporting relationships and communication linkages

Divisional Structure: Divisional structures are derived from groups working on a similar product, in the same geographical location, serve the same customers or participate in the same work process and are grouped together under common management

Functional Structure: groups together people with similar skills who work on similar tasks

Matrix Structure: combines functional and divisional approaches to create a permanent cross functional project

Functional Chimney’s Problem: a lack of communication across functions

Boundaryless Organization: eliminates internal boundaries among subsystems and external boundaries with the external environment

The Phases of Planned Change

  1. Unfreezing

~   The situation is prepared for change

  1. Changing

~   The change takes place

  1. Refreezing

~   He change is stabilized

Departmentalization: the process of grouping people together in formal work units or teams

Organizing: arranging people an resources to work toward a goal

Process re-engineering: systematically analyzes work processes to design new and better ones