Copyright © 2011 by Nelson Education Ltd. 1 Chapter 15: MANAGEMENT MOTIVATION, AND LEADERSHIP: Bringing Business To Life

Copyright © 2011 by Nelson Education Ltd. 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 is the control process? LO1 Discuss the role of management and its importance to organizational success LO2 Explain key theories and current practices of motivation LO3 Outline the categories of business planning and explain strategic planning LO4 Discuss the organizing function of management LO5 Explain the role of managerial leadership and the key leadership styles LO6 Describe the management control process

Copyright © 2011 by Nelson Education Ltd. 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 L01

Copyright © 2011 by Nelson Education Ltd. © 2009 South-Western, a division of Cengage Learning 4 MANAGEMENT HIERARCHY: LEVELS OF RESPONSIBILITY Top Management Middle Management First Line Management Articulate Vision Establish Priorities Facilitate Communication Coordinate Teams Train, Motivate, Evaluate Employees Manage Daily Processes L01

Copyright © 2011 by Nelson Education Ltd. 5 MANAGEMENT SKILLS: HAVING WHAT IT TAKES TO GET THE JOB DONE L01

Copyright © 2011 by Nelson Education Ltd. 6 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 L02

Copyright © 2011 by Nelson Education Ltd. 7 MASLOW HIERARCHY OF NEEDS L02

Copyright © 2011 by Nelson Education Ltd. 8 THEORY X AND THEORY Y Theory X AssumptionsTheory 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 L02

Copyright © 2011 by Nelson Education Ltd. 9 JOB ENRICHMENT Creating jobs with meaningful content, creative work: Skill Variety Task Identity Task Significance Autonomy Feedback L02

Copyright © 2011 by Nelson Education Ltd. 10 EXPECTANCY THEORY Relationship among individual effort, individual performance, and individual reward L02

Copyright © 2011 by Nelson Education Ltd. 11 EQUITY THEORY Perception of fairness directly impacts worker motivation. L02

Copyright © 2011 by Nelson Education Ltd. 12 MOTIVATION TODAY Range of motivation approaches Engaged and productive workers Emphasis on corporate culture Expanded incentives Focus on training and development L02

Copyright © 2011 by Nelson Education Ltd. 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 L03

Copyright © 2011 by Nelson Education Ltd. 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? L03

Copyright © 2011 by Nelson Education Ltd. 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? L03

Copyright © 2011 by Nelson Education Ltd. 16 CONTINGENCY PLANNING PARADIGM L03

Copyright © 2011 by Nelson Education Ltd. 17 STRATEGIC PLANNING: SETTING THE AGENDA Define the mission Evaluate competitive position Set goals Create strategies Implement strategies Evaluate results and incorporate lessons L03

Copyright © 2011 by Nelson Education Ltd. 18 DEFINING YOUR MISSION Organization’s purpose, values, and core goals, providing the framework for all other plans. Retail Council of Canada's mission is to be the voice of retail in Canada by providing advocacy, research, education, and services that enhance opportunities for retail success, and increase awareness of retail’s contribution to the communities and customers it serves. Google's mission is to organize the world's information and make it universally accessible and useful. L03

Copyright © 2011 by Nelson Education Ltd. 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 L03

Copyright © 2011 by Nelson Education Ltd. 20 SETTING YOUR GOALS L03

Copyright © 2011 by Nelson Education Ltd. 21 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 L03

Copyright © 2011 by Nelson Education Ltd. 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 L04

Copyright © 2011 by Nelson Education Ltd. 23 ORGANIZATION CHART L04

Copyright © 2011 by Nelson Education Ltd. 24 KEY ORGANIZING CONSIDERATIONS Degree of Centralization Span of Control Departmentalization –Functional –Product –Customer –Geographical –Process L04

Copyright © 2011 by Nelson Education Ltd. 25 DEPARTMENTALIZATION L04

Copyright © 2011 by Nelson Education Ltd. 26 LINE AND STAFF RELATIONSHIPS Line Organization – clear, simple chain of command. Staff Managers – provide advice and assistance. Legal, Accounting, HR L04

Copyright © 2011 by Nelson Education Ltd. 27 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 L04

Copyright © 2011 by Nelson Education Ltd. 28 LEADERSHIP: DIRECTING AND INSPIRING L05

Copyright © 2011 by Nelson Education Ltd. 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, L05

Copyright © 2011 by Nelson Education Ltd. 30 CONTROLLING: MAKING SURE IT ALL WORKS 1.Establish clear performance standards 2.Measure actual performance against standards 3.Take corrective if necessary L06

Copyright © 2011 by Nelson Education Ltd. 31 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? L06

Copyright © 2011 by Nelson Education Ltd. 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? LO1 Discuss the role of management and its importance to organizational success LO2 Explain key theories and current practices of motivation LO3 Outline the categories of business planning and explain strategic planning LO4 Discuss the organizing function of management LO5 Explain the role of managerial leadership and the key leadership styles LO6 Describe the management control process