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© 2009 South-Western, a division of Cengage Learning
1
Chapter 15: MANAGEMENT MOTIVATION AND LEADERSHIP:
Bringing Business To Life
© 2009 South-Western, a division of Cengage Learning
2
LOOKING AHEAD
• Why is management important to an organization’s success?
• What are important motivation theories for managers to understand?
• What are the different types of planning?
• What is the role of organizing in managing?
• What are the key leadership styles?
• What are the steps in the control process?
© 2009 South-Western, a division of Cengage Learning
3
BRINGING RESOURCES TO LIFE
Achieving the goals of an organization through planning,
organizing, leading, and controlling organizational
resources including people, money and time.
PLANNING
CONTROLLING
LEADINGORGANIZING
© 2009 South-Western, a division of Cengage Learning
4
MANAGEMENT HIERARCHY: LEVELS OF RESPONSIBILITY
TopManagement
MiddleManagement
First LineManagement
• Articulate Vision• Establish Priorities
• Facilitate Communication• Coordinate Teams
• Train, Motivate, Evaluate Employees
• Manage Daily Processes
© 2009 South-Western, a division of Cengage Learning
5
MANAGEMENT SKILLS: HAVING WHAT IT TAKES TO GET THE JOB DONE
© 2009 South-Western, a division of Cengage Learning
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MOTIVATION: LIGHTING THE FIRE
• Good managers motivate others to reach their best
• Motivated workers feel great about work
• Workers who feel good, produce more
• Diverse range of motivation theories
© 2009 South-Western, a division of Cengage Learning
7
MASLOW HIERARCHY OF NEEDS
© 2009 South-Western, a division of Cengage Learning
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THEORY X AND THEORY Y
Theory X Assumptions Theory Y Assumptions
Workers dislike work and will avoid it
Work is as natural as play or rest—workers do not dislike it
Fear is motivating—coercion and threats are vital
Rewards can motivate—people can exercise self-direction and self-control
People prefer to be directed, avoiding responsibility
People can accept, and even seek responsibility
Imagination, creativity, and ingenuity is widely distributed
Intellectual capacity of average workers is underutilized
© 2009 South-Western, a division of Cengage Learning
9
JOB ENRICHMENT
Creating jobs with meaningful content, creative work:
• Skill Variety
• Task Identity
• Task Significance
• Autonomy
• Feedback
Creating jobs with meaningful content, creative work:
• Skill Variety
• Task Identity
• Task Significance
• Autonomy
• Feedback
© 2009 South-Western, a division of Cengage Learning
10
EXPECTANCY THEORY
Relationship among individual effort, individual performance
and individual reward
© 2009 South-Western, a division of Cengage Learning
11
EQUITY THEORY
Perception of fairness directly impacts
worker motivation.
© 2009 South-Western, a division of Cengage Learning
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MOTIVATION TODAY
• Range of motivation approaches
• Engaged and productive workers
• Emphasis on corporate culture
• Expanded incentives
• Focus on training and development
© 2009 South-Western, a division of Cengage Learning
13
PLANNING: FIGURING OUT WHERE TO GO AND HOW TO GET THERE
The planning function is core to effective
management. The best plans keep the organization
on track, but flexible
• Cut Throat Competition
• Rapid Change
• Economic Uncertainty
© 2009 South-Western, a division of Cengage Learning
14
TYPES OF PLANNING
Type of Planning
Management Level
Examples of Planning Questions and Concerns
Strategic Planning
Senior Management
• Should we acquire a new company?• Should we outsource?
Tactical Planning
Middle Management
• Should we invest in new equipment?• Should we spend fewer ad dollars?
Operational Planning
First line management
• How should employees be scheduled? • How should customers be greeted?
© 2009 South-Western, a division of Cengage Learning
15
CONTINGENCY PLANNING
• How should we respond if our competitors start a price war?
• What should we do if the government regulates our industry?
• How can we restart our business if a natural disaster destroys our plant?
• How will we evacuate employees if terrorists strike our headquarters?
© 2009 South-Western, a division of Cengage Learning
16
CONTINGENCY PLANNING PARADIGM
© 2009 South-Western, a division of Cengage Learning
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STRATEGIC PLANNING: SETTING THE AGENDA
• Define the mission
• Evaluate competitive position
• Set goals
• Create strategies
• Implement strategies
• Evaluate results and incorporate lessons
© 2009 South-Western, a division of Cengage Learning
18
DEFINING YOUR MISSION
Organization’s purpose, values, and core goals, providing the framework for all other plans.
State Farm's mission is to help people manage the risks of everyday life, recover from the unexpected and realize their dreams.
Google's mission is to organize the world's information and make it universally accessible and useful.
Nike’s mission is to bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete.
© 2009 South-Western, a division of Cengage Learning
19
EVALUATING YOUR COMPETITIVE POSITION
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Potential internal strengths:• Premium brand name• Proven management team• Lower costs/higher margins
Potential external opportunities:• Higher consumer demand• Complacent competitors• Growth in foreign markets
Potential internal weaknesses:• Low employee satisfaction• Inadequate financial resources• Poor location
Potential external threats:• A powerful new competitor• A deep recession• New government regulations
© 2009 South-Western, a division of Cengage Learning
20
SETTING YOUR GOALS
© 2009 South-Western, a division of Cengage Learning
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CREATING YOUR STRATEGIES
• Creating Your Strategies– SWOT is a starting point– Respond to environment– Dynamic and flexible
• Implementing Your Strategies– Tactical planning– Coordination of middle managers
• Evaluating Your Results and Incorporating Lessons– Continual process– Controlling function– Factor in lessons
© 2009 South-Western, a division of Cengage Learning
22
ORGANIZING: FITTING TOGETHER THE PUZZLE PIECES
• Logical structure for people, their jobs, and interaction
• Multiple options for structure• Managers consider:
– Goals and objectives– Products– Technology– Size– Competitors
© 2009 South-Western, a division of Cengage Learning
23
ORGANIZATION CHART
© 2009 South-Western, a division of Cengage Learning
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KEY ORGANIZING CONSIDERATIONS
• Degree of Centralization• Span of Control• Departmentalization
– Functional– Product– Customer– Geographical– Process
© 2009 South-Western, a division of Cengage Learning
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DEPARTMENTALIZATION
© 2009 South-Western, a division of Cengage Learning
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LINE AND STAFF RELATIONSHIPS
Line Organization – clear, simple
chain of command.
Staff Managers – provide advice and assistance.
Legal, Accounting, HR
© 2009 South-Western, a division of Cengage Learning
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MATRIX ORGANIZATION
Functional Manager
Project Manager
Matrix Organization – • Brings together specialists to work on projects. • No clear chain of command• Effective for project type work
© 2009 South-Western, a division of Cengage Learning
28
LEADERSHIP: DIRECTING AND INSPIRING
© 2009 South-Western, a division of Cengage Learning
29
LEADERSHIP PRACTICES
• Challenge the process
• Inspire a shared vision
• Enable others to act
• Model the way
• Encourage the heart
What the best leaders actually do:
(Source: The leadership challenge approach by Jim Kouzes and Barry Posner, The Leadership Challenge Website, accessed November 13, 2005, http://www.leadershipchallenge.com/WileyCDA/Section/id-131055.html)
© 2009 South-Western, a division of Cengage Learning
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CONTROLLING: MAKING SURE IT ALL WORKS
1. Establish clear performance standards
2. Measure actual performance against standards
3. Take corrective if necessary
© 2009 South-Western, a division of Cengage Learning
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CONTROLLING IN ACTION
Your department must write 1,000 tickets a month.
You are the manager of all the traffic cops in your city
There are ten officers, so you establish a performance standard of 100 tickets a month for each officer.
You check the numbers weekly. The second week you notice that one of your officers has only written 20 tickets.
How should you handle this?
© 2009 South-Western, a division of Cengage Learning
32
LOOKING BACK
• Why is management important to an organization’s success?
• What are important motivation theories for managers to understand?
• What are the different types of planning?
• What is the role of organizing in managing?
• What are the key leadership styles?
• What are the steps in the control process?