1. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 21-1

2. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-2 Chapter 21

3. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Leadership: the process of influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it  Effective leaders empower and embolden employees to act in the best interest of the business  Symphony orchestra conductor vs. jazz band leader 21-3

4. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Business leaders should be:  Innovative  Passionate  Willing to take risks  Adaptable  Management vs. leadership 21-4

5. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Effective leaders:  Create a set of values and beliefs for employees and passionately pursue them  Establish a culture of ethics  Define and then constantly reinforce the vision they have for the company  Respect and support employees  Create a climate of trust in the organization  Focus employees’ efforts on challenging goals and keep them driving towards those goals 21-5

6. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Effective leaders (continued):  Celebrate workers’ success  Understand that leadership is multidimensional  Create and environment in which people have the motivation, the training, the resources, and the freedom to achieve the goals they have set  Communicate with employees  Value the diversity of workers 21-6

7. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Effective leaders (continued):  Value new ideas from employees  Understand that success really is a team effort  Encourage creativity and risk taking throughout the organization  Become a catalyst for change  Develop leadership talent  Maintain a sense of humor  Keep an eye on the horizon 21-7

8. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Leadership is a key determinant of a company’s success  But, there is no “single” best style of leadership  Workers tend to respond more to adaptive, humble leaders who are results oriented and who take the time to cultivate other leaders  Servant leadership  Leaders have to earn their followers 21-8

9. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  To be effective, entrepreneurial leaders must: 1.Hire the right employees and constantly improve their skills 2.Build an organizational culture and structure that allows both workers and the company to reach their potential 3.Communicate the vision and the values of the company effectively and create an environment of trust among workers 4.Motivate workers to higher levels of performance 21-9

10. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  The impact of a single hire on a small company is significant  Hiring mistakes are expensive  Survey: 69% of business owners have made at least one bad hire during the last year  HBR: bad hiring decisions cause 80% of employee turnover 21-10

11. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  How to Hire Winners  Commit to hiring the best talent  Elevate recruiting to a strategic position in the company 21-11

12. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Elevate recruiting to a strategic position in the company  Look inside the company first  Encourage employee referrals  Use multiple channels to recruit talent 21-12

13. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-13 Sources of Recruiting Employees

14. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Elevate recruiting to a strategic position in the company  Look inside the company first  Encourage employee referrals  Use multiple channels to recruit talent  Recruit on campus  Forge relationships with schools to gain access to interns  Recruit “retired” workers  Consider using offbeat recruiting techniques  Offer what workers want 21-14

15. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  How to Hire Winners  Commit to hiring the best talent  Elevate recruiting to a strategic position in the company  Create practical job descriptions and job specifications  Job analysis 1.Job description 2.Job specification 21-15

16. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-16 Linking Tasks from the Job Description to the Traits Needed to Perform a Sales Representative’s Job

17. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  How to Hire Winners  Commit to hiring the best talent  Elevate recruiting to a strategic position in the company  Create practical job descriptions and job specifications  Screen resumes  Check references  Plan an effective interview 21-17

18. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Plan an effective interview  Involve others in the interview process  Develop a series of core questions and ask them of every candidate  Ask open-ended questions  Present hypothetical situations  Probe for specific examples in the candidate’s past work experience that demonstrate the necessary traits and characteristics  Inquire about recent successes and failures  Create an informal setting 21-18

19. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-19 Interview Questions for Candidates for a Sales Representative Position

20. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  How to Hire Winners  Conducting the interview  Breaking the ice  Asking questions  Puzzle interview  Situational interview  Peer-to-peer interview 21-20

21. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-21 Is It Legal?

22. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-22 A Guide for Interview Questions

23. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  How to Hire Winners  Conducting the interview  Breaking the ice  Asking questions  Selling the candidate on the company  Background checks  Employment tests  Valid test  Reliable test 21-23

24. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-24 Why Employers Do Not Hire Based on Content of Candidates’ Social Media Pages

25. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-25  Company culture: the distinctive, unwritten code of conduct that governs the behavior, attitudes, relationships, and style of an organization  “The way we do things around here”

26. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-26  Effective executives know that building a positive organizational culture has a direct, positive impact on the financial outcomes of an organization  Need to hire employees who share the organization’s values

27. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-27  Principles to create a productive, fun workplace: 1.Respect for the quality of work and a balance between work life and home life 2.A sense of purpose 3.Diversity 4.Integrity 5.Participative management 6.Learning environment 7.A sense of fun 8.Engagement

28. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-28  Managing Growth and a Changing Culture  A company’s culture changes as the organization grows  Important to balance the need for growth with an effort to retain company culture

29. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-29  Team-Based Management  Corporate grows requires a shift from top- down, single-leader structure to one that is team based  Self-directed work team  Be aware of groupthink and the Abilene paradox

30. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-30  To ensure the success of teams:  Make sure that teams are appropriate for the company and the nature of the work  Form teams around the natural work flow and give them specific tasks to accomplish  Provide adequate support and training for team members and leaders  Involve team members in determining how their performances will be measured, what will be measured, and when it will be measured  Make at least part of team members’ pay dependent on team performance

31. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-31 The Stages of Team Development

32. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-32  Effective communication is essential to a successful company  Study: ROI over the last 5 years in companies with effective communication is 47% higher than in companies with the least effective communication

33. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-33  Improving communication  Need to communicate the company’s vision to everyone in the company and to empower employees to accomplish the vision within the framework of the company’s culture  Technology is making it possible to build a good communication system even when office space isn’t shared

34. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-34  Communicating effectively  Barriers to effective communication:  Managers and employees don’t always feel free to say what they really mean  Ambiguity blocks real communication  Information overload causes the message to get lost  Selective listening interferes with the communication process  Defense mechanisms block a message  Conflicting verbal and nonverbal messages confuse listeners

35. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-35  How to be a better communicator:  Clarify your message before you attempt to communicate it  Use face-to-face communication whenever possible  Be empathetic  Match your message to your audience  Be organized  Encourage feedback  Get out of the office and talk to employees  Tell the truth  Don’t be afraid to tell employees about the business, its performance, and the forces that affect it

36. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-36  Listening  An essential part of the communication process  Use PDCH:  Identify the speaker’s purpose  Recognize the details that support that purpose  See the conclusions they can draw from what the speaker is saying  Identify the hidden meanings communicated by body language and voice inflections

37. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-37  The Informal Communication Network: The “Grapevine”  An important link in the communication network  Study: up to 70% of all organizational communication comes via the grapevine  Can also be an excellent source of organizational feedback

38. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-38  Motivation: the degree of effort an employee exerts to accomplish a task; it shows up as excitement about work  Four aspects of motivation: 1.Empowerment 2.Job design 3.Rewards and compensation 4.Feedback

39. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-39  Empowerment  Empowerment: involves giving workers at every level of the organization the authority, the freedom, and the responsibility to control their own work, to make decisions, and to take action to meet the company’s objectives

40. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-40  Job Design  Study: only 47% of employees are satisfied  Work design and the job itself can affect job satisfaction  Job simplification  Jon enlargement (horizontal job loading)  Job rotation  Job enrichment (vertical job loading)  Flextime  Job sharing  Flexplace  Telecommuting

41. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-41  Rewards and Compensation  Cash is an effective motivator…up to a point  Pay-for-performance compensation systems  Profit-sharing system  To be effective, these systems need to be:  Performance based  Relevant  Simple  Equitable  Inclusive  Timely

42. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-42 The Feedback Loop

43. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-43  Performance Appraisal  Performance appraisal: the process of evaluating an employee’s actual performance against desired performance standards  360-degree feedback  Peer review  Upward feedback

44. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-44  Performance appraisals have three goals: 1.To give employees feedback about how they are performing, which can be an important source of motivation 2.To provide entrepreneurs and employees the opportunity to create a plan for developing employee skills and abilities and for improving their performance 3.To establish a basis for determining promotions and salary increases

45. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 21-45