In this chapter, "we review a number of motivation techniques and programs that have gained varying degrees of acceptance in practice. And for each of the techniques and programs we review, we specifically address how they build on one or more of the motivation theories covered in the previous chapter" ( p. 188/189).

WHAT IS MOTIVATION?

"Maybe the place to begin is to say what motivation isn't. Many people incorrectly view motivation as a personal trait –that is, some have it and others don't. In practice, inexperienced managers often label employees who seem to lack motivation as lazy. Such a label assumes that an individual is always lazy or is lacking in motivation. Our knowledge of motivation tells us that this just isn't true. What we know is that motivation is the result of the interaction of the individual and the situation" (p. 155).

"We'll define motivationas the processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal. While general motivation is concerned with effort toward any goal, we'll narrow the focus to organizational goals in order to reflect our singular interest in work-relatedbehavior" (p. 155).

Servant leadership is a paradox—an approach to leadership that runs counter to common sense. Our everyday images of leadership do not coincide with leaders being servants. Leaders influence, and servants follow.

How can leadership be both service and influence? How can a person be a leader and a servant at the same time? Although servant leadership seems contradictory and challenges our traditional beliefs about leadership, it is an approach that offers a unique perspective.

Servant leadership, which originated in the writings of Greenleaf (1970, 1972, 1977), has been of interest to leadership scholars for more than 40 years. Until recently, little empirical research on servant leadership has appeared in established peer-reviewed journals. Most of the academic and nonacademic writing on the topic has been prescriptive, focusing on how servant leadership should ideally be, rather than descriptive, focusing on what servant leadership actually is in practice (van Dierendonck, 2011). However, in the past 10 years, multiple publications have helped to clarify servant leadership and substantiate its basic assumptions.

Similar to earlier leadership theories discussed in this book (e.g., skills approach and styles approach), servant leadership is an approach focusing on leadership from the point of view of the leader and his or her behaviors. Servant leadership emphasizes that leaders be attentive to the concerns of their followers, empathize with them, and nurture them. Servant leaders put followers first, empower them, and help them develop their full personal capacities. Furthermore, servant leaders are ethical (see Chapter 16, “Leadership Ethics,” for an extended discussion of this topic) and lead in ways that serve the greater good of the organization, community, and society at large.

"Making decisions is a critical element of organizational life. In this chapter, we'll describe how decisions in organizations are made.But first, we discuss perceptual processes and show how they are linked to individual decision making" (p. 121).

Perception:A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

"Why is perception important in the study of OB? Simply because people'sbehavioris based on their perception of what reality is, not on reality itself. The world as it is perceived is the world that is behaviourally important " (p. 122).

WHAT IS PERSONALITY?

"When psychologists talk of personality, they mean a dynamic concept describing the growth and development of a person's whole psychological system. Rather than looking at parts of the person, personality looks at some aggregate whole that is greater than the sum of the parts" (p. 92).

"Regardless of which studies you choose to look at, when American workers are asked if they are satisfied with their jobs, the results tend to be very similar: Between 70 and 80 percent report they're satisfied with their jobs" (p. 61).

"How does one explain these findings? …Because people are likely to seek jobs that provide a good person-job fit, reports of high satisfaction shouldn't be totally surprising. Second, based on our knowledge of cognitive dissonance theory (discussed in this chapter), we might expect employees to resolve inconsistencies between dissatisfaction with their jobs and their staying with those jobs by not reporting the dissatisfaction. So these positive findings might be tainted by efforts to reduce dissonance" (p. 61).

"Intelligence is but one characteristic that people bring with them when they join an organization. In this chapter, we look at how biographical characteristics (such as gender and age) and ability (which includes intelligence) affect employee performance and satisfaction. Then we show how people learn behaviors and what management can do to shape those behaviors" (p. 33).

"We have come to understand that technical skills are necessary but insufficient for succeeding in management. In today's increasingly competitive and demanding workplace, managers can't succeed on their technical skills alone. They also have to have good people skills. This book has been written to help both managers and potential managers develop those people skills" (p. 2).

WHAT MANAGERS DO
"Managers get things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. Managers do their work in an organization. This is a consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals" (p. 2).

As the title suggests, this chapter is about culture and leadership. Like the previous chapter, this one is multifaceted and focuses on a collection of related ideas rather than on a single unified theory. Our discussion in this chapter will center on research that describes culture, its dimensions, and the effects of culture on the leadership process.
 

Since World War II, globalization has been advancing throughout the world. Globalization is the increased interdependence (economic, social, technical, and political) between nations. People are becoming more inter-connected. There is more international trade, cultural exchange, and use of  worldwide telecommunication systems. In the past 10 years, our schools, organizations, and communities have become far more global than in the past. Increased globalization has created many challenges, including the need to design effective multinational organizations, to identify and select appropriate leaders for these entities, and to manage organizations with culturally diverse employees (House & Javidan, 2004). Globalization has created a need to understand how cultural differences affect leadership performance.
 

Globalization has also created the need for leaders to become competent in cross-cultural awareness and practice. Adler and Bartholomew (1992) contended that global leaders need to develop five cross-cultural competencies: First, leaders need to understand business, political, and cultural environments worldwide. Second, they need to learn the perspectives, tastes, trends, and technologies of many other cultures. Third, they need to be able to work simultaneously with people from many cultures.
 

Fourth, leaders must be able to adapt to living and communicating in other cultures. Fifth, they need to learn to relate to people from other cultures from a position of equality rather than cultural superiority (Adler & Bartholomew, 1992, p. 53). Additionally, Ting-Toomey (1999) said that global leaders need to be skilled in creating transcultural visions. They need to develop communication competencies that will enable them to articulate and implement their vision in a diverse workplace. In sum, today’s leaders need to acquire a challenging set of competencies if they intend to be effective in present-day global societies.

When you meet a human being, the first distinction you make is “male or female?” and you are accustomed to make the distinction with unhesitating certainty.
—Sigmund Freud

Writers in the popular press have shown an enduring interest in the topic of gender and leadership, reporting stark and meaningful differences between women and men (Book, 2000; Bowman, Worthy, & Greyser, 1965). These differences turned from a view of women as inferior to men (e.g., some posited that women lacked skills and traits necessary for managerial success; Hennig & Jardin, 1977) to the more modern popular view that extols the superiority of women in leadership positions (Book, 2000; Helgesen, 1990). However, for a variety of reasons, including methodological hindrances, a predominance of male researchers largely uninterested in the topic, and an academic assumption of gender equality in leadership, academic researchers ignored issues related to gender and leadership until the 1970s (Chemers, 1997). The increasing numbers of women in leadership positions and women in academia, brought about by dramatic changes in American society, have fueled the now robust schol-arly interest in the study of female leaders.
 

Scholars started out asking, “Can women lead?” but that is now a moot point. In addition to the increasing presence of women in corporate and political leadership roles, we can point to highly effective female leaders including former prime ministers such as Benazir Bhutto (Pakistan), Margaret Thatcher (UK), Gro Marlem Brundtland (Norway), and Indira Gandhi (India), and current world leaders such as Chancellor Angela Merkel of Germany and President Dilma Rousseff of Brazil. Beyond politics we can point to a number of highly effective female leaders including PepsiCo’s CEO Indra Nooyi, Avon’s CEO Andrea Jung, Four-Star General Ann E. Dunwoody, and the founder of Teach for America, Wendy Kopp. The primary research question now is “Are there leadership style and effectiveness differences between women and men?” which is often subsumed under a larger question: “Why women are underrepresented in elite leadership roles?” This chapter explores empirical evidence related to these issues of gender and leadership by first examining style and effectiveness differences between men and women, then discussing the gender gap in leadership and prominent explanations for it, and, finally, addressing approaches to promoting women in leadership.

The psychodynamic approach consists of several different ways of looking at leadership. There is no single model or theory. One fundamental concept underlies the psychodynamic approach: personality. As used here, the term means a consistent pattern of ways of thinking, feeling, and acting with regard to the environment, including other people. A personality is characterized by a list of tendencies or qualities, such that one person might be shy, intelligent, and rigid in behavior, whereas another is creative, independent, and spontaneous. The list of possible personality traits is large, and psychologists have developed numerous questionnaires that can be used to characterize the personality of an individual. One of those questionnaires, the Myers-Briggs Type Indicator®, is described later in this chapter.
 

This approach is different from the trait approach in Chapter 2 and the style approach in Chapter 4. In the trait approach, certain characteristics of a person are assumed to be important in attaining leadership status or performing leadership tasks. The style approach suggests that a certain leadership style, particularly the team management (9,9) style, is the best (see Figure 4.1).
 

Situational leadership, discussed in Chapter 5, suggests that the key element is the match between the leader’s style or behaviors and the needs of the subordinates. In the psychodynamic approach, personality types are emphasized and evidence is presented that suggests that various personality types are better suited to particular leadership positions or situations.
 

There have been several efforts to describe leadership from a psychodynamic perspective (Berens et al., 2001; Gabriel, 2011; Kets de Vries, 2006; Kets de Vries and Balazs, 2011; Maccoby, 1981; Zaleznik, 1977), but all emphasize the importance of leaders becoming aware of their own personality type and the personalities of their followers. The psychodynamic approach begins with an examination of the roots of the individual in the family. Our first experience with leadership occurs the day we are born.
Mom and Dad, or those who are our primary caregivers, become our leaders, at least for a few years. That is the most basic premise of the psychodynamic approach to leadership. Particularly in the early years of childhood, our primary caregivers (parents, grandparents, et al.) create deep-seated feelings about leadership. The parental image is highlighted in business when we refer to a corporation as paternalistic. Hill (1983) wrote on the law of the father, a psychodynamic examination of leadership. Members of the U.S. Air Force sometimes call their service the Big Blue Mother, refer-ring to the color of the uniforms and the wild blue yonder. The familial metaphor is common in organizations that consider themselves one big happy family, with the natural consequence that the leaders are the parents and the employees the children.

Leadership in organizational work teams has become one of the most popular and rapidly growing areas of leadership theory and research. A team is a specific type of group composed of members who are interdependent, who share common goals, and who must coordinate their activities to accomplish these goals. Examples of such teams include project management teams, task forces, work units, standing committees, quality teams, and improvement teams. Teams have an applied function within an organizational context. A team has specified roles for its members with requisite knowledge and skills to perform these roles (Levi, 2011).
 

Reviews of the historical roots of group research provide a clear explanation of the long and diverse study of human groups (Levi, 2011; McGrath, Arrow, & Berdahl, 2000; Porter & Beyerlein, 2000). Porter and Beyerlein (2000) indicate that the study of groups actually began in the 1920s and 1930s, with the focus of the human relations movement on collaborative efforts at work, as opposed to the individual efforts previously advocated by scientific management theorists. In the 1940s, the focus shifted to the study of group dynamics and the development of social science theory. In the 1950s, the focus moved to sensitivity training and T-groups, and the role of leadership in these groups. Much of this early research was based on laboratory studies of experimental groups, frequently ignoring the con-texts in which the groups were embedded (McGrath et al., 2000).
 

In the 1960s and 1970s, the era of organizational development, researchers focused on developing team and leadership effectiveness through interventions in ongoing work teams. In the 1980s, competition from Japan and other countries encouraged the focus on quality teams, benchmarking, and continuous improvement. In the 1990s, the focus on organizational teams, while still focusing on quality, shifted to a global perspective focusing on organizational strategies for maintaining a competitive advantage. Organizations have faster response capability because of their flatter organizational structure, which relies on teams and new technology to enable communication across time and space (Porter & Beyerlein, 2000). Mankin, Cohen, and Bikson (1996, p. 217) referred to this new organization as being “team-based, technology-enabled.” The organizational team-based structure is an important way to remain com-petitive by responding quickly and adapting to constant, rapid changes.

Authentic leadership represents one of the newest areas of leadership research. It focuses on whether leadership is genuine and “real.” As the title of this approach implies, authentic leadership is about the authenticity of leaders and their leadership. Unlike many of the theories that we have discussed in this book, authentic leadership is still in the formative phase of development. As a result, authentic leadership needs to be considered more tentatively: It is likely to change as new research about the theory is published.
 

In recent times, upheavals in society have energized a tremendous demand for authentic leadership. The destruction on 9/11, corporate scandals at companies like WorldCom and Enron, and massive failures in the banking industry have all created fear and uncertainty. People feel apprehensive and insecure about what is going on around them, and, as a result, they long for bona fide leadership they can trust and for leaders who are honest and good. People’s demands for trustworthy leadership make the study of authentic leadership timely and worthwhile.
 

In addition to the public’s interest, authentic leadership has been intriguing to researchers: It was identified earlier in transformational leadership research but never fully articulated (Bass, 1990; Bass & Steidlmeier, 1999; Burns, 1978; Howell & Avolio, 1993). Furthermore, practitioners had developed approaches to authentic leadership that were not evidence based, and so needed further clarification and testing. In attempts to more fully explore authentic leadership, researchers set out to identify the parameters of authentic leadership and more clearly conceptualize it, efforts that continue today.

One of the current and most popular approaches to leadership that has been the focus of much research since the early 1980s is the transformational approach. Transformational leadership is part of the “New Leadership” paradigm (Bryman, 1992), which gives more attention to the charismatic and affective elements of leadership. In a content analysis of articles published in Leadership Quarterly, Lowe and Gardner (2001) found that one third of the research was about transformational or charismatic leadership. Similarly, Antonakis (2012) found that the number of papers and citations in the field have grown at an increasing rate, not only in traditional fields like management and social psychology, but in other disciplines such as nursing, education, and industrial engineering. Bass and Riggio (2006) suggested that transformational leadership’s popularity might be due to its emphasis on intrinsic motivation and follower development, which fits the needs of today’s work groups, who want to be inspired and empowered to succeed in times of uncertainty. Clearly, many scholars are studying transformational leadership, and it occupies a central place in leadership research.
 

As its name implies, transformational leadership is a process that changes and transforms people. It is concerned with emotions, values, ethics, standards, and long-term goals. It includes assessing followers’ motives, satisfying their needs, and treating them as full human beings. Transformational leadership involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of them. It is a process that often incorporates charismatic and visionary leadership.
 

An encompassing approach, transformational leadership can be used to describe a wide range of leadership, from very specific attempts to influence followers on a one-to-one level, to very broad attempts to influence whole organizations and even entire cultures. Although the transformational leader plays a pivotal role in precipitating change, followers and leaders are inextricably bound together in the transformation process.

Most of the leadership theories discussed thus far in this book have emphasized leadership from the point of view of the leader (e.g., trait approach, skills approach, and style approach) or the follower and the context (e.g., situational leadership, contingency theory, and path–goal theory). Leader–member exchange (LMX) theory takes still another approach and conceptualizes leadership as a process that is centered on the interactions between leaders and followers. As Figure 8.1 illustrates, LMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process.
 

Before LMX theory, researchers treated leadership as something leaders did toward all of their followers. This assumption implied that leaders treated followers in a collective way, as a group, using an average leadership style.
 

LMX theory challenged this assumption and directed researchers’ attention to the differences that might exist between the leader and each of the leader’s followers.

Although several approaches to leadership could be called contingency theories, the most widely recognized is Fiedler’s (1964, 1967; Fiedler & Garcia, 1987). Contingency theory is a leader–match theory (Fiedler & Chemers, 1974), which means it tries to match leaders to appropriate situations. It is called contingency because it suggests that a leader’s effectiveness depends on how well the leader’s style fits the context. To understand the performance of leaders, it is essential to understand the situations in which they lead. Effective leadership is contingent on matching a leader’s style to the right setting.

Fiedler developed contingency theory by studying the styles of many different leaders who worked in different contexts, primarily military organizations. He assessed leaders’ styles, the situations in which they worked, and whether they were effective. After analyzing the styles of hundreds of leaders who were both good and bad, Fiedler and his colleagues were able to make empirically grounded generalizations about which styles of leadership were best and which styles were worst for a given organizational context.

In short, contingency theory is concerned with styles and situations. It provides the framework for effectively matching the leader and the situation.

Path–goal theory is about how leaders motivate subordinates to accomplish designated goals. Drawing heavily from research on what motivates employees, path–goal theory first appeared in the leadership literature in the early 1970s in the works of Evans (1970), House (1971), House and Dessler (1974), and House and Mitchell (1974). The stated goal of this leadership theory is to enhance employee performance and employee satisfaction by focusing on employee motivation.

In contrast to the situational approach, which suggests that a leader must adapt to the development level of subordinates (see Chapter 5), and unlike contingency theory, which emphasizes the match between the leader’s style and specific situational variables (see Chapter 6), path–goal theory emphasizes the relationship between the leader’s style and the characteristics of the subordinates and the work setting. The underlying assumption of path–goal theory is derived from expectancy theory, which suggests that subordinates will be motivated if they think they are capable of performing their work, if they believe their efforts will result in a certain outcome, and if they believe that the payoffs for doing their work are worthwhile.

For the leader, the challenge is to use a leadership style that best meets subordinates’ motivational needs. This is done by choosing behaviors that complement or supplement what is missing in the work setting. Leaders try to enhance subordinates’ goal attainment by providing information or rewards in the work environment (Indvik, 1986); leaders provide subordinates with the elements they think subordinates need to reach their goals.

One of the more widely recognized approaches to leadership is the situational approach, which was developed by Hersey and Blanchard (1969a) based on Reddin’s (1967) 3-D management style theory. The situational approach has been refined and revised several times since its inception (see Blanchard, Zigarmi, & Nelson, 1993; Blanchard, Zigarmi, & Zigarmi, 1985; Hersey & Blanchard, 1977, 1988), and it has been used extensively in organizational leadership training and development.

As the name of the approach implies, situational leadership focuses on leadership in situations. The premise of the theory is that different situations demand different kinds of leadership. From this perspective, to be an effective leader requires that a person adapt his or her style to the demands of different situations.

Situational leadership stresses that leadership is composed of both a directive and a supportive dimension, and that each has to be applied appropriately in a given situation. To determine what is needed in a particular situation, a leader must evaluate her or his employees and assess how competent and committed they are to perform a given task. Based on the assumption that employees’ skills and motivation vary over time, situational leadership suggests that leaders should change the degree to which they are directive or supportive to meet the changing needs of subordinates.

In brief, the essence of situational leadership demands that leaders match their style to the competence and commitment of the subordinates. Effective leaders are those who can recognize what employees need and then adapt their own style to meet those needs.

          The style approach emphasizes the behavior of the leader. This distin-guishes it from the trait approach (Chapter 2), which emphasizes the per-sonality characteristics of the leader, and the skills approach (Chapter 3), which emphasizes the leader’s capabilities. The style approach focuses exclusively on what leaders do and how they act. In shifting the study of leadership to leader style or behaviors, the style approach expanded the study of leadership to include the actions of leaders toward subordinates in various contexts.

          Researchers studying the style approach determined that leadership is composed of two general kinds of behaviors: task behaviors and relationship behaviors. Task behaviors facilitate goal accomplishment: They help group members to achieve their objectives. Relationship behaviors help subordi-nates feel comfortable with themselves, with each other, and with the situ-ation in which they find themselves. The central purpose of the style approach is to explain how leaders combine these two kinds of behaviors to influence subordinates in their efforts to reach a goal.

          Many studies have been conducted to investigate the style approach. Some of the first studies to be done were conducted at The Ohio State Uni-versity in the late 1940s, based on the findings of Stogdill’s (1948) work, which pointed to the importance of considering more than leaders’ traits in leadership research. At about the same time, another group of researchers at the University of Michigan was conducting a series of studies that explored how leadership functioned in small groups. A third line of research was begun by Blake and Mouton in the early 1960s; it explored how managers used task and relationship behaviors in the organizational setting.

Like the trait approach we discussed in Chapter 2, the skills approach takes a leader-centered perspective on leadership. However, in the skills approach we shift our thinking from a focus on personality characteristics, which usually are viewed as innate and largely fixed, to an emphasis on skills and abilities that can be learned and developed. Although personality certainly plays an integral role in leadership, the skills approach suggests that knowledge and abilities are needed for effective leadership.

Researchers have studied leadership skills directly or indirectly for a number of years (see Bass, 1990, pp. 97–109). However, the impetus for research on skills was a classic article published by Robert Katz in the Harvard Business Review in 1955, titled “Skills of an Effective Administra-tor.” Katz’s article appeared at a time when researchers were trying to identify a definitive set of leadership traits. Katz’s approach was an attempt to transcend the trait problem by addressing leadership as a set of develop-able skills. More recently, a revitalized interest in the skills approach has emerged. Beginning in the early 1990s, a multitude of studies have been published that contend that a leader’s effectiveness depends on the leader’s ability to solve complex organizational problems. This research has resulted in a comprehensive skill-based model of leadership that was advanced by Mumford and his colleagues (Mumford, Zaccaro, Harding, Jacobs, & Fleishman, 2000; Yammarino, 2000).

In this chapter, our discussion of the skills approach is divided into two parts. First, we discuss the general ideas set forth by Katz regarding three basic administrative skills: technical, human, and conceptual. Second, we discuss the recent work of Mumford and colleagues that has resulted in a new skills-based model of organizational leadership.

Of interest to scholars throughout the 20th century, the trait approach was one of the first systematic attempts to study leadership. In the early 20th century, leadership traits were studied to determine what made certain people great leaders. The theories that were developed were called “great man” theories because they focused on identifying the innate qualities and characteristics possessed by great social, political, and military leaders (e.g., Catherine the Great, Mohandas Gandhi, Indira Gandhi, Abraham Lincoln, Joan of Arc, and Napoleon Bonaparte). It was believed that people were born with these traits, and that only the “great” people possessed them. During this time, research concentrated on determining the specific traits that clearly differentiated leaders from followers (Bass, 1990; Jago, 1982).

In the mid-20th century, the trait approach was challenged by research that questioned the universality of leadership traits. In a major review, Stogdill (1948) suggested that no consistent set of traits differentiated leaders from nonleaders across a variety of situations. An individual with leadership traits who was a leader in one situation might not be a leader in another situation. Rather than being a quality that individuals possess, leadership was reconceptualized as a relationship between people in a social situation. Personal factors related to leadership continued to be important, but researchers contended that these factors were to be consid-ered as relative to the requirements of the situation.

The trait approach has generated much interest among researchers for its explanation of how traits influence leadership (Bryman, 1992). For example, an analysis of much of the previous trait research by Lord, DeVader, and Alliger (1986) found that personality traits were strongly associated with individuals’ perceptions of leadership. Similarly, Kirkpatrick and Locke (1991) went so far as to claim that effective leaders are actually distinct types of people in several key respects.

Leadership is a highly sought-after and highly valued commodity. In the 15 years since the first edition of this book was published, the public has become increasingly captivated by the idea of leadership. People continue to ask themselves and others what makes good leaders. As individuals, they seek more information on how to become effective leaders. As a result, bookstore shelves are filled with popular books about leaders and advice on how to be a leader. Many people believe that leadership is a way to improve their personal, social, and professional lives.

Corporations seek those with leadership ability because they believe they bring special assets to their organizations and, ultimately, improve the bottom line. Academic institutions throughout the country have responded by providing programs in leadership studies. In addition, leadership has gained the attention of researchers worldwide. A review of the scholarly studies on leadership shows that there is a wide variety of different theoretical approaches to explain the complexities of the leadership process (e.g., Bass, 1990; Bryman, 1992; Bryman, Collinson, Grint, Jack- son & Uhl-Bien, 2011; Day & Antonakis, 2012; Gardner, 1990; Hickman, 2009; Mumford, 2006; Rost, 1991). Some researchers conceptualize leadership as a trait or as a behavior, whereas others view leadership from an information-processing perspective or relational standpoint. Leadership has been studied using both qualitative and quantitative methods in many contexts, including small groups, therapeutic groups, and large organizations. Collectively, the research findings on leadership from all of these areas provide a picture of a process that is far more sophisticated and complex than the often simplistic view presented in some of the popular books on leadership.

This book treats leadership as a complex process having multiple dimensions. Based on the research literature, this text provides an in-depth description and application of many different approaches to leadership. Our emphasis is on how theory can inform the practice of leadership. In this book, we describe each theory and then explain how the theory can be used in real situations.

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LEARNING OBJECTIVES
After completing this supplement, you should be able to:
1. Describe the different environments under which operations decisions are made.
2. Describe and use techniques that apply to decisions making under uncertainty.
3. Describe and use the expected-value approach.
4. Construct a decisions tree and use it to analyze problem.
5. Compute the expected value of perfect information.
6. Conduct sensitivity analysis on a simple decisions problem.

SUPPLEMENT OUTLINE
Introduction
Causes of Poor Decisions
Decisions Environments
Decisions Making under Certainty
Decisions Making under Uncertainty
Decisions Making under Risk
Decisions Trees
Expected Value of Perfect Information (EVPI)
Sensitivity Analysis
Summary
Key Terms
Solved Problems
Discussion and Review Questions
Problems
Selected Bibliography and Further Reading

Keandalan merupakan ukuran kemampuan suatu produk, layanan, bagian, atau sistem untuk melakukan fungsi yang dituju pada suatu set atau kondisi  yang ditentukan. Pada dasarnya, keandalan adalah probabilitas.

Misalkan sebuah item memiliki keandalan .90. Ini berarti bahwa ia memiliki probabilitas 90 persen berfungsi seperti yang di inginkan. Kemungkinan akan gagal adalah 1-0,90 = .10, atau 10 persen. Karenanya, diharapkan, rata-rata, 1 dari setiap 10 item tersebut akan gagal atau, setara, bahwa item akan gagal, rata-rata, sekali dalam setiap 10 percobaan. Demikian pula, keandalan dari 0,985 menyiratkan kegagalan 15 per 1.000 bagian dari percobaan.

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         Semakin banyak perempuan yang bergabung kedalam tenaga kerja dan lebih banyak keluarga yang mengandalkan dua pendapatan, kebiasaan belanja dan makan dari orang Amerika telah berubah. Makanan instan telah menggantikan makanan santai. Ada peningkatan kesadaran makanan sehat. Dan makanan pedas telah menggantikan makanan biasa. Rantan makanan cepat saji, perusahaan makanan, dan supermarket berebut untuk memenuhi tantangan.

      Raksasa rempah-rempah McCormick menemukan bahwa penjualan rempah-rempah tradisional menurun. Untuk menebus, perusahaan mempromosikan bumbu campuran yang dirancang untuk menghemat waktu. Salsa menjadi sangat populer, dan restoran Meksiko yang bermunculan di mana-mana. Supermarket menawarkan beragam makanan siap saji (lihat Tour Wegmans di Bab 1) serta resep untuk makanan instan di toko-toko mereka dan pada halaman web mereka.

Bagi perusahaan ini dan lainnya, dari teknologi tinggi tidak ada teknologi, desain produk dan jasa memainkan peran penting terhadap profitabilitas dan kelangsungan hidup mereka.

Esensi dari setiap organisasi adalah produk atau jasa yang ditawarkan. Itu merupakan hubungan yang jelas antara desain produk atau jasa tersebut dan keberhasilan organisasi. Organisasi yang telah dirancang dengan baik produk atau jasanya lebih besar kemungkinannya untuk mewujudkan tujuan mereka dibandingkan dengan produk atu jasa yang dirancang dengan buruk. Maka, organisasi memiliki tiang penting dalam mencapai desain produk dan jasa yang bagus.

Dalam bab ini Anda menemukan wawasan menarik di dalam desain produk dan layanan. Di antara topik yang dibahas adalah diperlukan untuk desain produk dan jasa atau desain ulang; sumber ide untuk desain atau desain ulang; resmi, lingkungan, dan masalah etika; dan desain elemen untuk kedua manufaktur produk dan jasa.

Desain produk dan jasa atau mendesain ulang harus terkait erat dengan strategi organisasi. itu adalah faktor utama dalam biaya, kualitas, waktu untuk dipasarkan, kepuasan pelanggan, dan keunggulan kompetitif.

Banyak pembeli mobil baru memiliki satu atau dua pemikiran yang sama. Saat mereka memutuskan untuk membeli mobil baru, mereka menginginkannya secepat mungkin. Mereka biasanya tidak ingin memesannya dan mereka harus menunggu pengiriman enam minggu bahkan lebih. Jika penjual mobil yang mereka datangi tidak memiliki mobil yang mereka mau, mereka akan mencari di tempat lain. Oleh karena itu, ini penting untuk sebuah penjual untuk mengantisipasi keinginan pembeli dan memiliki model tersebut, dengan opsi yang diperlukan, dalam persediaan. Penjual yang dapat memperkirakan kemauan konsumen dengan tepat, dan mobil yang mereka miliki tersedia, ini akan menjadi lebih sangat sukses dibanding kompetitor yang menebak daripada memperkirakan-dan tebakannya salah-dan menjadi buntu dengan mobil yang tidak diinginkan konsumen. Jadi bagaimana penjual tahu berapa banyak mobil yang disediakan dari setiap tipe mobil? Jawabannya adalah, penjual tidak mengetahui secara pasti, tetapi berdasarkan analisis dari pola pembelian sebelumnya, dan  mungkin kelonggaran untuk kondisi saat ini, penjual  dapat bangkit dengan  perkiraan beralasan dari apa yang pembeli mau.

Perencanaan adalah  bagian integral dari pekerjaan manajemen. Jika ketidakpastian memperkeruh suasana perencanaan, manajer akan menemukan kerumitan untuk rencana yang efektif.. Perkiraan membantu manajer dengan menurunkan beberapa ketidakpastian, sehingga memungkinkan mereka untuk mengembangkan rencana yang lebih berarti. Perkiraan adalah pernyataan tentang nilai masa depan dari suatu variabel seperti permintaan.
 Pada chapter ini memberikan survei dari peramalan bisnis. Ini memberikan gambaran unsur-unsur peramalan yang baik. , langkah-langkah yang diperlukan dalam mempersiapkan perkiraan, teknik peramalan dasar, dan bagaimana untuk memantau perkiraan.

Buku ini akan membahas tentang manajemen operasi. Materi subjek yang menarik dan terwaktu: produktivitas, kualitas, e-bisnis, kompetisi global, dan pelayanan kostumer yang sangat banyak dalam berita, an seluruh bagian dari manajemen operasi.