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 for Management Skills Managerial Skills and Life Success Managerial Skills and Hiring Managerial Skills in the New 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

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 for Managerial Skill s Entrepreneurship Downsizing and Delayering Job Enrichment and Empowerment Self-Managed Work Teams Hiring for the Second Job Growth in Management 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 Human Technical Top-Level Managers Middle-Level Managers 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 Motivation to 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 Need Deficiency Search for Potential Need- Satisfying Goal Perception of Potential Need- Satisfying Goal Attempt to Attain Goa l Goal Attainment 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 Satisfaction Progression

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 Criticisms overly simplistic ignores the intensity of needs ordering of needs may not be consistent across cultures

Evidence Concerning Maslow’s Need 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 Growth Needs Relatedness Needs Existence Needs 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 with Strong 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 Assess Employee Needs Assess Employee Needs Identify the Most Active Needs of Employees Identify the Most Active Needs of Employees Develop Specific Strategies to Satisfy Active Employee Needs Develop Specific Strategies to Satisfy Active Employee Needs Implement Strateg ies Implement Strateg ies Evaluate the Plan Evaluate the 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?