Night 1

Session I

An Overview of

Management and Leadership

A Rapidly Changing World

Change is accelerating Power shifting from sellers to buyers The power of the Internet Unlimited substitution over competition Leadership and management domain is worldwide now Knowledge age New world

Management

The process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling.

It characterizes the process of planning, leading, and directing all or part of an organization, through the deployment or manipulation of resources.

Leadership

Leadership is the ability to influence others towards the achievement of goals

Leadership and Management

Leadership may sound like another name for management, but the terms are generally viewed as distinct.

Management aims to give consistency and order to organizations; leadership seeks to provide constructive and adaptive change.

Management is directed toward coordinating activities in order to get the job done; leadership is concerned with the process of developing mutual purposes.

Management relies more on a one-way authority relationship, while leadership relies more on a multidirectional influence relationship.

“Managers are people who do things right and leaders are people who do the right things.”

Effectiveness vs. Efficiency

Effectiveness – the ability to choose appropriate goals

and achieve them.

Efficiency – the ability to make the best use of available

resources in the process of achieving goals.

Effectiveness vs. Efficiency

Effectiveness – Ability to achieve stated goals or

objectives, judged in terms of both output and impact.

Efficiency – producing the desired result with the least

waste

Three Competences of Leadership

Diagnosing– Understanding the situation you are trying to influence

Adapting– Altering your behavior and the other resources you have

available to meet the contingencies of the situation

Communicating– Interacting with others in a way that people can easily

understand and accept

The Need for Management Skills

The Need forManagement Skills

ManagerialSkills and

Life Success

ManagerialSkills and

Hiring

ManagerialSkills in theNew Work

Environment

The 16 Basic Skills Employees Need

Knowing How to Learn Reading Writing Mathematics Listening Oral Communication Problem Solving Creative Thinking

Self-Confidence Motivational Goal Setting Personal and Career Development Interpersonal Skills Negotiation Teamwork Organizational Effectiveness Leadership

Ranking of HR Managers’ Perceptions of Criteria for Evaluating Business Graduates

Criterion Mean Oral Communication Skills 4.6

Listening Skills 4.5

Resume 4.4

Interpersonal Communication Skills 4.3

Problem-Solving Skills 4.2

Work Experience 3.7

College Attended 3.1

Contacts within the Organization 2.2

BLS Prediction

The Bureau of Labor Statistics predicted that the average 22-year-old college graduate in the year 2000 would have more than eight different employers before he or she reaches the age of 32; that is a change of employers every 15 months.

Managerial Skills in the New Work Environment

Demand forManagerial

Skills

Entrepreneurship

Downsizing andDelayering

Job Enrichmentand Empowerment

Self-ManagedWork Teams

Hiring for theSecond Job

Growth inManagement Positions

Managerial Skills Sets

Technical skills include knowledge about methods, processes, and techniques needed to carry out some specialized activity as well as the ability to use tools and equipment related to the activity.

Human skills deal with human behavior and interpersonal processes, communication, cooperation, and social sensitivity.

Conceptual skills include analytical ability, creativity, efficiency in problem solving, and ability to recognize opportunities and potential problems.

Thus, the typology distinguishes between abilities to deal with things, people, and ideas and concepts.

Management Skills Needed for Success by Organizational Level

Conceptual

Conceptual

Conceptual

Human

Human

Human

Technical

Technical

Technical

Top-Level Managers

Middle-LevelManagers

First-Level Managers

Attitudes toward Management - 1

I will only need management skills if I get a job as a manager or supervisor in an organization

Management skills will not be an important determinant of my long-term career success

Management skills are something that people have or don’t have

Once you become a manager, your job becomes easier because you are telling other people to do things rather than having to do them yourself

Attitude toward Management - 2

A person who demonstrates outstanding performance in an entry-level job will almost always be an outstanding manager as well

Management is basically just a bunch of common sense ideas I already know anyway

Managers need to develop the big picture perspective of their work units and organizations in order to be effective

Attitude toward Management - 3

The study of management is really only relevant to business students who are majoring in management

Soft management skills, such as managing teams, communication skills, and leadership, are among the most important things needed for a person to be successful

Poor management is responsible for a large percentage of company failures or bankruptcies

What makes an Effective Manager?

Managerial Education

Managerial Experience

Is Management an Art or a Science?

Fundamentals of Motivation

Motivation comes from the Latin movere, “to move” Motivation requires:

– *Initiation (arousal to initiate behavior toward a goal)– *Inclination (direction to properly focus that behavior)– *Industriousness (persistence to ultimately attain the goal)

The motivation “toolkit” contains:– content or need theories to help us understand what people want– process theories to understand the motivation process

The Relationship of Motivationto Performance

Motivation Performance

Ability

Situation

Understanding Employee Needs

A need is something that people require. Satisfaction is the condition of need fulfillment Motivation is the attempt to satisfy a need.

The Need Satisfaction Process

NeedDeficiency

Search forPotential Need-

SatisfyingGoal

Perception ofPotential Need-

SatisfyingGoal

Attempt toAttain Goal

GoalAttainment or

Frustration

Theories Of Motivation

Need (or Content) Theories– Maslow’s Need Hierarchy– Alderfer’s ERG Theory– McClelland’s Manifest Needs

Process Theories– Learning Theory– Goal Setting Theory– Equity Theory– Expectancy Theory

Need Theories of Motivation

Maslow’s Hierarchy of Needs – Abraham Maslow Alderfer’s ERG Theory – Clayton Alderfer McClelland’s Manifest Needs – David McClelland Herzberg’s Motivation-Hygiene Theory – Fredrick

Herzberg

Maslow’s Needs

Physiological: the need for food, sleep, water, air, and sex Security: the need for safety, family, stability, and economic security Social or affiliation: the need to belong, to interact with others, to

have friends, and to love and be loved Esteem: the need for respect and recognition of others Self-actualization: the need to realize one’s potential, to grow, to be

creative, and to accomplish

Maslow’s Need Hierarchy

Self-Actualization

Esteem

Social

Security

Physiological

SatisfactionProgression

Maslow’s Hierarchy of Needs

Maslow’s Hypotheses

Needs cluster into five sets Needs at the lowest unsatisfied level are most salient A satisfied need is not a motivator There is a hierarchy of successive prepotency -- once

needs at a given level are satisfied, those at the next higher level become most important

Maslow’s Hierarchy of Needs

Criticismsoverly simplistic ignores the intensity of

needs ordering of needs may

not be consistent across cultures

Evidence Concerning Maslow’sNeed Hierarchy

People do have a variety of needs which vary in levels of satisfaction and importance.

Satisfaction of lower level needs is generally necessary before higher level needs become more important.

Other than this, people don’t move up the hierarchy in any predictable fashion.

It appears that people have two or three distinct sets of needs, not five. For higher level needs, satisfaction and importance are positively

related.

Alderfer’s Sets of Needs (ERG)

Existence -- all forms of material and physical desires (Physiological and Safety needs)

Relatedness -- all needs involving relationships with significant other persons (Social needs)

Growth -- All needs involving a person making creative and productive efforts on the self and the environment (Esteem and Self-Actualization needs)

Alderfer’s ERG Theory

GrowthNeeds

RelatednessNeeds

ExistenceNeeds

Frustration

Regression

Satisfaction

Progression

Differences Between Maslow’s Need Hierarchy and Alderfer’s ERG Theory

Alderfer collapses Maslow’s five levels into three Alderfer says growth need strength is positively related

to growth need satisfaction Alderfer sees a hierarchy only in terms of increasing

abstractness Alderfer recognizes frustration regression as well as

satisfaction progression

McClelland’s Manifest Needs

Need for Achievement: The need to do well no matter what goal is pursued.

Need for Affiliation: The desire to establish and maintain friendly and warm relations with other people.

Need for Power: The desire to control other people, to influence their behavior, and to be responsible for them.

Characteristics of Individuals withStrong Need for Achievement

Desire to attain goals. Desire for personal responsibility. Desire for quick feedback on performance.

Herzberg’s Motivation-Hygiene factors

Motivators: The job itself (affect willingness)– Achievement, Recognition for accomplishment, Challenging

work, Increased responsibility, and Growth and development

Hygiene factors: The environment (affect ability)– Policies and administration, Supervisions, Working

conditions, Interpersonal relations, and Money, status, and security

The Bottom Line: Need Theories

AssessEmployee

Needs

AssessEmployee

Needs

Identify the MostActive Needsof Employees

Identify the MostActive Needsof Employees

Develop SpecificStrategies toSatisfy Active

Employee Needs

Develop SpecificStrategies toSatisfy Active

Employee Needs

ImplementStrategies

ImplementStrategies

Evaluatethe Plan

Evaluatethe Plan

What rewards are important to you?

What rewards do you consider to be most important? Have these rewards changed much over the past several years?

To what extent are these rewards present/lacking in the current position? What is your organization's philosophy regarding rewards?