1. © 2009 South-Western, a division of Cengage Learning 1 Chapter 15: MANAGEMENT MOTIVATION AND LEADERSHIP: Bringing Business To Life

2. © 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?

3. © 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

4. © 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

5. © 2009 South-Western, a division of Cengage Learning 5 MANAGEMENT SKILLS: HAVING WHAT IT TAKES TO GET THE JOB DONE

6. © 2009 South-Western, a division of Cengage Learning 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

7. © 2009 South-Western, a division of Cengage Learning 7 MASLOW HIERARCHY OF NEEDS

8. © 2009 South-Western, a division of Cengage Learning 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

9. © 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

10. © 2009 South-Western, a division of Cengage Learning 10 EXPECTANCY THEORY Relationship among individual effort, individual performance and individual reward

11. © 2009 South-Western, a division of Cengage Learning 11 EQUITY THEORY Perception of fairness directly impacts worker motivation.

12. © 2009 South-Western, a division of Cengage Learning 12 MOTIVATION TODAY Range of motivation approaches Engaged and productive workers Emphasis on corporate culture Expanded incentives Focus on training and development

13. © 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

14. © 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?

15. © 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?

16. © 2009 South-Western, a division of Cengage Learning 16 CONTINGENCY PLANNING PARADIGM

17. © 2009 South-Western, a division of Cengage Learning 17 STRATEGIC PLANNING: SETTING THE AGENDA Define the mission Evaluate competitive position Set goals Create strategies Implement strategies Evaluate results and incorporate lessons

18. © 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.

19. © 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

20. © 2009 South-Western, a division of Cengage Learning 20 SETTING YOUR GOALS

21. © 2009 South-Western, a division of Cengage Learning 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

22. © 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

23. © 2009 South-Western, a division of Cengage Learning 23 ORGANIZATION CHART

24. © 2009 South-Western, a division of Cengage Learning 24 KEY ORGANIZING CONSIDERATIONS Degree of Centralization Span of Control Departmentalization –Functional –Product –Customer –Geographical –Process

25. © 2009 South-Western, a division of Cengage Learning 25 DEPARTMENTALIZATION

26. © 2009 South-Western, a division of Cengage Learning 26 LINE AND STAFF RELATIONSHIPS Line Organization – clear, simple chain of command. Staff Managers – provide advice and assistance. Legal, Accounting, HR

27. © 2009 South-Western, a division of Cengage Learning 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

28. © 2009 South-Western, a division of Cengage Learning 28 LEADERSHIP: DIRECTING AND INSPIRING

29. © 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)http://www.leadershipchallenge.com/WileyCDA/Section/id-131055.html

30. © 2009 South-Western, a division of Cengage Learning 30 CONTROLLING: MAKING SURE IT ALL WORKS 1.Establish clear performance standards 2.Measure actual performance against standards 3.Take corrective if necessary

31. © 2009 South-Western, a division of Cengage Learning 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?

32. © 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?