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IB Year 2 Quarter 2 Corporate Culture and management Summary $5.42   Add to cart

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IB Year 2 Quarter 2 Corporate Culture and management Summary

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All relevant chapters of "Essentials of organizational behavior" summarised for the upcoming exam on Corporate culture and management(Y2Q2). (Avans International Business)

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  • January 14, 2021
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Y2Q2 Corporate Culture and Management summary
Chapter 12 (except 219-221)
Leadership: The ability to influence a group toward the achievement of a vision or set of
goals.
Nonsactioned leadership: the ability to influence that arises outside the formal structure of an
organisation.
Trait theories of leadership: Theories that consider personal qualities and characteristics
that differentiate leaders from nonleaders.
This includes personality traits like those in the Big Five, and characteristics that predict two
distinctive outcomes:
1. leadership emergence
2. leadership effectiveness.
Based on research, we offer two conclusions about personality traits and leadership:
1. traits can predict leadership
2. traits do a better job in predicting the emergence of leaders and the appearance of
leadership than in distinguishing between effective and ineffective leaders
there is a strong link between traits and leadership, however this does not mean that a
person with the right traits will always be an effective leader.
In general, individuals who are extraverted, disciplined and conscientious, and creative and
flexible (open) have an advantage when it comes to leadership.
Big Five traits
in the examination of personality traits it is found that extraversion is the most predictive trait
of effective leadership. However extraversion sometimes relates more to the way leaders
emerge than to their effectiveness.
One study found that leaders who scored very high in assertiveness, a facet of extraversion,
were less effective that those who were moderately high.
So although extraversion can predict effective leadership, the relationship may be due to
unique facets of the trait.
Unlike agreeableness and emotional stability, which do not predict leadership,
conscientiousness and openness to experiences may predict leadership, especially leader
effectiveness.
Consciousness and extraversion are positively related to leader’s self-efficacy, and since
people are more likely to follow someone who is confident he/she is going in the right
direction, these leaders tend to emerge.
What about the dark-side personality traits of Machiavellianism, narcissism, and
psychopathy?
Research indicates that not all are bad for leaders. A study in Europe found that a midrange
score on those traits were optimal and high and low scores were associated with ineffective
leadership. Furthermore, the study suggested that high emotional stability may actually
accentuate ineffective behaviours. However, higher scores on those traits and emotional

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,stability can contribute to leadership emergence. To conclude building self-awareness and
self-regulation skills may be helpful to contain those dark traits.


Emotional intelligence (EI) may indicate effective leadership. A core component of EI is
empathy, which means that leaders can sense other’s needs, listen to followers, read the
reaction of others. A leader who can effectively displays and manages emotions will find it
easier to influence the feelings of followers by expressing genuine sympatry and enthusiasm
for good performance.
Trait theories help us predict leadership, but they do not fully explain leadership. What
makes them effective etc?
Behavioural theories help us define the parameters of leadership. Trait research provides a
basis for selecting the right people for leadership, behavioural theories of leadership imply
we can train people to be leaders.
Behavioural theories of leadership: Theories proposing that specific behaviours
differentiate leaders from nonleaders.
Ohio state studies gives the most comprehensive behavioural theories of leadership, which
sought to identify independent dimensions of leadership behaviour. The study narrowed it
down to two dimensions that substantially account for most leadership behaviour described
by employees:
1. initiating structure: The extent to which a leader is likely to define and structure his
or her role and those of subordinates in the search for goal attainment.
- it includes behaviour that attempts to organise work, work relationships, and
goals.
- A leader high in initiating structure is someone assigns followers with tasks etc
- Initiating structure is more strongly related to higher levels of group organization
productivity, and to more positive performance evaluations.
2. Consideration: The extent to which a leader is likely to have job relationships
characterised by mutual trust, respect for subordinates’ ideas, and regard for their
feelings.
- A leader high in consideration helps employees with personal problems, is
friendly and approachable, treats all employees equal etc
- One review found that followers of leaders high in consideration were more
satisfied with their jobs, were more motivated and had more respect for their
leaders
Leader-participation model: A leadership theory that provides a set of rules to determine
the form and amount of participative decision making in different situations.
The understanding of leadership is a constantly evolving science. Contemporary theories
have build upon the foundation we’ve established to discover the unique ways leaders
emerge, influence, and guide their employees and organisation.




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, Leader-member exchange (LMX) theory: A theory that supports leader’s creation of
ingroups an outgroups: subordinates with ingroup status will likely have higher performance
ratings, less turnover, and greater job satisfaction.
LMX theory proposes that early in the history of the interaction between a leader and a given
follower, the leader implicitly categorizes the follower as ‘in’ or ‘out’, that relationships
becomes relatively stable over time.
Leaders induce LMX by rewarding employees whom they want closer linage with and
punishing those with whom they do not.
There is evidence that the ingroup members have demographic, attitude, and personality
characteristics similar to those of their leaders, or a higher level of competence than those in
the outgroup. Also leaders and followers of the same gender tend to have a closer
relationship. Even though the leader does the choosing, the follower’s characteristics drive
the categorising decision.
Research on LMX has been generally supportive with evidence that leaders so differentiate
between followers; These disparities are far from random, and followers with ingroup status
receive higher performance ratings, engage in more helping or citizenship behaviour at work,
and report greater satisfaction with their superiors.
Both the ingroup and outgroup notice the negative effects of LMX. Various research has
conformed this as it states that, it results in more negative work attitudes and higher levels of
withdrawal. Other research suggests that it hurts team trust and perceptions on justice. To
conclude close-knit teas may be able to help outgroup members to retain their confidence
and self-efficacy by offering a supportive environment.
Charismatic leadership theory: A leadership theory that states that followers make
attributions of heroic or extraordinary leadership abilities when they observe certain
behaviours.
Qualities of charismatic leaders:
1. Vision and articulation
2. Personal risk
3. Sensitivity to follower needs
4. Unconventional behaviour
Vision: A long-term strategy for attaining a goal or goals


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