1

Leadership
& Management
 1-2

Learning Outcomes

• As prospective managers in any discipline, you

are required to effectively work with people in
order to motivate, support and assist in their
development.
• This unit is focused on developing your
knowledge and competencies when it comes to
managing people. We will also explore how, in
your role as a manager, you play a central role
in employee development.
1–2
 1-3

Content

• Chapter 1: Introduction to management

• Chapter 2: Planning and decision making
• Chapter 3: Organizing
• Chapter 4: Control systems
• Chapter 5: Motivating and Rewarding Employee
Performance, Managing Employee Attitudes and
Well-being
• Chapter 6: Effective Leadership,
Communication 1–3
 1-4

References

• Mullins, L. J. (2016) Management and Organisational

Behaviour 11th Ed. Pearson
• Whetten, D.A. and Cameron, K.S. (2015) Developing
Management Skills, Global Edition. Pearson
• York, K.M. (2010) (Electronic Resource). Applied
Humana Resource Management: Strategic Issues and
Experiential Exercises. Sage
• Pierce. J. L, Newstrom, J.W (2014). The Manager’s
Bookshelf: A Mosaic of Contemporary Views 10th Ed.
Pearson
1–4
 1-5

Scheduling

Day Content Notes

1 Chapter 1: Introduction to management
2 Chapter 2: Planning and decision making
3 Chapter 3: Organizing
4 Chapter 4: Control systems
5 Seminar
Chapter 5: Motivating and Rewarding Employee
6 Performance, Managing Employee Attitudes and
Well-being
7 Chapter 6: Effective Leadership, Communication
8 Review
1–5
Chapter
1
Management
 1-7

Learning Objectives

1. Describe the basic functions of management

2. Identify where in an organization managers are
located
3. Discuss the challenges people encounter as they
become first-line managers
4. Describe the roles managers adopt to perform the
basic functions of management
5. Outline the competencies managers must have to be
effective
 1-8

Management and
Managers
• Management: The art of getting things done
through people in the organization
• Managers give organizations a sense of
purpose and direction
• Managers create new ways of producing and
distributing goods and services
• Managers change how the world works through
their actions
 1-9

Leaders versus Managers

Process Management Leadership

Vision * Plans and budgets * Set the direction and develops
Establishment * Develops process steps the vision
and set timelines * Develops strategic plans to
achieve the vision
Development * Organizes and staffs * Aligns organization
and * Maintain structure * Communicates the vision,
Networking mission, and direction
Vision * Controls processes * Motivates and inspires
Execution * Identifies problems * Energizes employees to
overcome barriers to change
Vision Outcome * Manages vision order * Promotes useful and dramatic
and predictability changes
* Provides expected results
Source: Adapted from ―Leadership versus management: What’s the difference?‖, The Journal for Quality and Participation, 2006
 1 - 10

Functions of
Management
Planning &
Strategizing

Controlling Organizing

Leading &
Developing
 1 - 11

Planning & Strategizing

• Planning – a formal process whereby managers choose goals,

identify actions, allocate responsibility for implementing
actions, measuring the success of actions, and revising plans
• Planning is used to develop overall strategies
• A strategy is an action that managers take to attain the goals
• Planning goes beyond strategy development to include the
regulation of a wide variety of organizational activities
• Strategizing – the process of thinking through on a continual
basis what strategies an organization should pursue to attain its
goals
 1 - 12

Who Makes the

Strategic Decisions?

By Senior Group
including CEO
With Formal Strategic
Planning Process
By Business Unit
Leaders
By CEO or Equivalent

By Others
 1 - 13

Organizing

Organizing involves deciding:

• Who will perform the task?
• Where will decisions be made?
• Who reports to whom?
• How will different parts of the organization fit
together to accomplish the common goal?
 1 - 14

Controlling

• The process of monitoring

performance against goals,
intervening when goals are not met,
and taking corrective action
• First step – Drafting plans
• Important aspect is creating
incentives that align employees’ and
organization’s interests
 1 - 15

Benefits & Incentives

1. Performance Bonuses
2. Health Benefits
3. Performance-based Time Off
4. Education and Learning
5. Recognition and Awards
6. Retirement Planning
7. Promotion
8. Child Care and Elder Care Assistance
 1 - 16

Leading & Developing

• Leading – is the process of motivating, influencing,

and directing others in the organization to work
productively in pursuit of organization goals.

• Developing employees – the task of hiring, training,

mentoring, and rewarding employees in an
organization, including other managers.
 1 - 17

Skilled Leaders

• Drive strategic thinking

• Have a plan for organization
• Proactively structure the organization
• Exercise control with a deft hand
• Use the right kind of incentives
• Get the best out of people
• Build a high-quality team
 1 - 18

Types of Managers

General
Managers

Functional
Managers

Frontline
Managers
 1 - 19

Multi-divisional
Management Hierarchy
Corporate-level
general managers CEO

Division Division Division Division

R&D Production Marketing Sales

Team

Business-level Team
general managers
Team
Functional
managers
Frontline
managers
 1 - 20

Becoming a Manager

• From Specialist to Manager

- Journey begins when people are successful at a specialist task
that they were hired to do
- Need to be able to get things done through other people

• Mastering the Job

- Tends to be a large difference between expectations and reality
- Workload is tremendous
- Biggest challenge within the first year = ―People challenges‖
 1 - 21

Management Roles
Interpersonal roles
Leader
Figurehead Liaison

Negotiator Managerial Monitor

Resource roles
Allocator Disseminator
Disturbance
handler Spokesperson
Entrepreneur Informational
Decisional roles
roles
 1 - 22

Interpersonal Roles

• Roles that involve interacting with other people

inside and outside the organization
• Management jobs are people-intensive
• Interpersonal roles:
- Figureheads: Greet visitors, Represent the company at
community events, Serve as spokespeople, and Function as
emissaries for the organization
- Leader: Influence, motivate, and direct others as well as
strategize, plan, organize, control, and develop
- Liaison: Connect with people outside their immediate unit
 1 - 23

Informational Roles

• Collecting, Processing and

Disseminating
• Roles: Monitor,
disseminator, and
spokesperson
 1 - 24

Decisional Roles

• Whereas interpersonal roles deal with people and

informational roles deal with knowledge, decisional roles
deal with action

• Decisional roles:
- Entrepreneur: Managers must make sure their organizations
innovate, change, develop, and adopt
- Disturbance handler: Addressing unanticipated problems as
they arise and resolving them expeditiously
- Resource allocator: How best to allocate scarce resources
- Negotiator: Negotiation is continual for managers
 1 - 25

Management
Competencies

Motivational
Preferences

Skills Includes Values

 1 - 26

Managerial Skills

Conceptual
Skills

Technical
Skills

Human
Skills
 1 - 27

Managerial Values

•Enacted Values
•Espoused Values
•Shared Values
•Ethical Values
 1 - 28

Managerial Motivation

Desire to Compete
Desire to Exercise Power
Desire to be Distinct
Desire to Take Action
Chapter
2
Planning and
Decision Making
 1 - 30

Learning Objectives

1. Describe the different levels of planning in an

organization.
2. Explain the difference between strategic, tactical,
operating, and unit plans.
3. Outline the value of simple-use plans, standing
plans, and contingency plans.
4. Describe the main components of a typical strategic
planning system.
5. Discuss the major reasons for poor decisions, and
describe what managers can do to make better
decisions.
 1 - 31

Steps in Planning

• Choose goals
• Identify actions
• Allocate responsibility
• Review Performance
• Make adjustments
 1 - 32

Levels of Planning

Corporate-level
Strategic plan (CEO)
Sets the context for

Shaped by input from

Business-level strategic plan
(heads of businesses)

Operating plans (heads of functions)

Unit plans (heads of departments, teams, individuals

 1 - 33

Types of Plans

• Strategic plans: A plan that outlines the major goals of an

organization and the organizationwide strategies of attaining
those goals.

• Operating plans: Plans that specify goals, actions, and

responsibility for individual functions.

• Tactical plans: The action managers adopt over the short to

medium term to deal with a specific opportunity or threat that
has emerged.

• Unit plans: Plans for departments within functions, work

teams, or individuals.
 1 - 34

Types of Plans

• Single-use plans: Plans that address unique events that do

not reoccur.
• Standing plans: Plans used to handle events that reoccur
frequently.
• Contingency plans: Plans formulated to address specific
possible future events that might have a significant impact on
the organization.
• Crisis management planning: Plan formulated specifically
to deal with possible future crises.
• Scenario planning: Plans that are based on ―what if‖
scenarios about the future.
 1 - 35

Scenario Planning

Formulate
plans to deal Invest in one
with those plan but …
futures

Switch strategy if
tracking of signposts Hedge your bets
shows alternative by preparing for
scenarios becoming other scenarios
more likely and …
 1 - 36

Scenario Planning Traps

• Treating scenarios as forecasts

• Failing to make scenarios global enough in scope
• Failing to focus scenarios in areas of potential
impact
• Treating scenarios as informational only
• Not using an experience facilitator

Source:www.valuebasedmanagement.net
 1 - 37

The Strategic Planning

Process
Mission, vision,
Feedback
values, and goals

Internal
External analysis
SWOT analysis
analysis (strengths and
formulate strategies
(opportunities and weaknesses)
threats)
Assign subgoals,
Draft action plans roles,
responsibilities,
timelines,
Review progress and budgets
against plan Implement
 1 - 38

Setting the Context:

Mission, Vision, Values, and Goals

• Mission: The purpose of an organization.

• Vision: A desired future state.
• Values: The philosophical properties to which
managers are committed.

• Goals: A desired future state that an organization

attempts to utilize.
 1 - 39

Mission Checklist

• Ends, not means • Brevity

• Effort • Broad vs. narrow
• Verbs • Value added
• Nouns embodying • Unique
activities
• The Unidentifiable
 1 - 40

Characteristics of Goals

• They are precise and measurable.

• They address important issues.
• They are challenging but realistic.
• They specify a time period in which they
should be achieved.
 1 - 41

10 Ingredients for
Successful Goals
• Specific • Measurable
• Simple • Tangible
• Significant • Written
• Strategic • Shared
• Rational • Consistent with your
values

Source:www.topachievement.com
 1 - 42

The Benefits of Planning

• Planning gives direction and purpose to an organization; it is a

mechanism for deciding the goals of the organization.
• Planning is the process by which management allocates scarce
resources, including capital and people, to different activities.
• Planning drives operating budgets-strategic, operations, and
unit plans determine financial budgets for the coming year.
• Planning assigns roles and responsibilities to individuals and
units within the organization.
• Planning enables managers to better control the organization.
 1 - 43

Countering the Pitfalls of

Planning
Pitfall Solution
Too centralized; Decentralized
top-down planning

Failure to
Scenario planning;
question
devil’s advocate
assumption

Failure to Link to goals;

implement tie to budgets

Failure to
anticipate Role-playing
rivals’ actions
 1 - 44

The Rational
Decision-Making Model
Identify Generate
Identify the Weight
decision alternative
problem criteria
criteria courses of
action

Does not meet

expectations
Evaluate Implement Choose one
Meets outcome alternative alternative
expectations

Continue with course of action

 1 - 45

Bounded Rationality
and Satisficing
• Bounded rationality: Limits in human ability to
formulate complex problems, to gather and process the
information necessary for solving those problems, and
thus to solve those problems in a rational way.

• Satisfice: Aiming for a satisfactory level of a

particular performance variable rather than its
theoretical maximum.
 1 - 46

Decision-Making Heuristics
and Cognitive Biases
• Decision heuristics
• 80-20 rule
• Cognitive bias
• Prior hypothesis bias
• Framing bias
 1 - 47

80-20 Rule

Performing in your 20 percent if you’re:

• Engaged in activities that advance your overall
purpose in life
• Doing things you have always wanted to do not what
others want you to do
• Hiring people to do the tasks you are not good at or
don't like doing.
• Smiling.
 1 - 48

Improving Decision Making

• Devil’s advocacy: The generation of both a plan and a

critical analysis of the plan by a devil’s advocate.

• Dialectic injury: The generation of a plan (a thesis) and a

counterplan (an antithesis) that reflect plausible but conflicting
courses of action.

• Outside view: Identifying a reference class of analogies past

strategic initiatives, determining whether those initiatives
succeeded or failed, and evaluating a project at hand against
those prior initiatives.
Chapter
3
Organizing
 1 - 50

Learning Objectives

1. Explain what is meant by organization architecture.

2. Explain the advantages and disadvantages of centralization
and decentralization.
3. Discuss the pros and cons of tall versus flat structures.
4. Outline the different kinds of structure a firm can operate
within and explain how strategy should determine structure.
5. Describe the different integrating mechanisms managers can
use to achieve coordination within a firm, and explain the
link between strategy, environment, and integrating
mechanisms.
 1 - 51

Organization Architecture

• Organization architecture: The totality of a firm’s

organization, including formal organization structure,
control systems, incentive systems, organizational culture,
and people.

• Organization structure: The location of decision-

making responsibilities in the firm, the formal division of
the organization into subunits, and the establishment of
integrating mechanisms to coordinate the activities of
subunits.
 1 - 52

Organization Architecture

• Controls: Metrics used to measure the performance of

subunits and to judge how well managers are running those
subunits.
• Incentives: Devices used to encourage desired employee
behavior.
• Organizational culture: Values and assumptions that are
shared among the employees of an organization.
• People: The employees of an organization, the strategy used
to recruit, compensate, motivate, and retain those individuals,
and the type of people they are in terms of their skills, values,
and orientation.
 1 - 53

Organization Architecture

Structure

Controls People Incentives

Culture
 1 - 54

Designing Structure

• Vertical differentiation: The location of

decision-making responsibilities within a structure.

• Horizontal differentiation: The formal division

of the organization into subunits.

• Integrating mechanisms: Mechanisms for

coordinating subunits.
 1 - 55

Centralization Versus
Decentralization

• Centralization: The concentration of decision-

making authority at a high level in a management
hierarchy.

• Decentralization: Vesting decision-making

authority in lower-level managers or other employees.
 1 - 56

Arguments for Centralization

• Centralization can facilitate coordination.

• Centralization can help ensure that decisions are
consistent with organizational objectives.
• Centralization can avoid duplication of activities by
various subunits within the organization.
• By concentrating power and authority in one
individual or a management team, centralization can
give top-level managers the means to bring about
needed major organizational changes.
 1 - 57

Arguments for Decentralization

• Top management can become overburdened when

decision-making authority is centralized.
• Motivational research favors decentralization.
• Decentralization permits greater flexibility—more
rapid response to environmental changes.
• Decentralization can result in better decisions.
• Decentralization can increase control.
 1 - 58

Centralization vs.
Decentralization in Purchasing

• Centralize for greater cost control and corporate

leverage
• Decentralize for nimbler procurement
responsiveness
• Centralize procurement of common products
• Decentralize procurement of specialized products
• Align purchasing structure with corporate
strategy, structure, and size
Source: Global Best Practices, Pricewaterhousecoopers
 1 - 59

Decentralization
and Control

Decentralization of Which Thereby

decisions to a Increases
increases enhancing
subunit … responsibility …
accountability control.
 1 - 60

Types of Structures

• Functional structure: A structure that follows the obvious

division of labor within the firm, with different functions
focusing on different tasks.

• Multidivisional structure: A structure in which a firm is

divided into different divisions, each of which is responsible for
a distinct business area.

• Geographic structure: A structure in which a firm is

divided into different units on the basis of geography.

• Matrix structure: An organization with two overlapping

hierarchies.
 1 - 61

Integrating Mechanisms

High Matrix
Favored by firms in structure
rapidly changing and
high-technology
Need for coordination

environments
Teams

Liaison
roles

Favored by firms
Direct
in stable and
contact
low-technology
environments
Centralization

Low
Simple Complex
Integrating mechanisms
 1 - 62

Informal Integrating Mechanisms:

Knowledge Networks

• Knowledge network: A network for transmitting

information within an organization based on informal contacts
between managers within an enterprise and on distributed
information systems.
G
B E

C D

A F
 1 - 63

Strategy, Coordination, and

Integrating Mechanisms
• All enterprises need coordination between subunits, whether
those subunits are functions, businesses, or geographic areas.

• There is a high need for coordination in firms that face an

uncertain and highly turbulent competitive environment, where
rapid adaptation to changing market conditions is required for
survival.

• In contrast, if a firm is based in a stable environment

characterized by little or no change, and if developing new
products is not a central aspect of firm’s business strategy, the
need for coordination between functions may be lower.
Chapter
4
Control Systems
 1 - 65

Learning Objectives

1. Discuss the attributes of a typical organizational control

system.
2. Describe the different kinds of controls that are used in
organizations.
3. Explain how different controls should be matched to the
strategy and structure of an organization.
4. Outline the features of the balance score card approach to
control metrics, and explain why it is useful.
5. Discuss informal or backchannel control methods.
 1 - 66

Control System

• Control: The process through which managers

regulate the activities of individuals and units.

• Standard: A performance requirement that the

organization is meant to attain on an ongoing
basis.

• Subgoal: An objective that, if achieved, helps

an organization attain or exceed its major goals.
 1 - 67

A typical Control System

Variance between
Take
performance and
corrective action
goals and standards

Compare
Establish goals Measure
performance against
and standards performance
goals and standards

Performance meets
Provide
or exceeds
reinforcement
goals and standards
 1 - 68

Establishing Goals and

Standards
• Most organizations operate with a hierarchy of goals.

• In the case of a business enterprise, the major goals at the top of

the hierarchy are normally expressed in terms of profitability and
profit growth.

• These goals are normally translated into subgoals that can be

applied to individuals or units within an organization.

• As with major goals, subgoals should be precise and measurable,

address important issues, be challenging but realistic, and specify a
time period.
 1 - 69

Measuring Performance
• Once goals, subgoals, and standards have been established,
performance must be measured against the criteria specified.
• This is not as easy as it sounds. Information systems have to be
put in place to collect the required data; and the data must be
compiled into usable form and transmitted to the appropriate
people in the organization.
• Reports summarizing actual performance might be tabulated daily,
weekly, monthly, quarterly, or annually.
• With the massive advances in computing power that have occurred
over the last three decades, managers have seemingly infinite
quantitative information at their disposal.
 1 - 70

Comparing Performance
Against Goals and Standards

• The next step in the control process is to compare actual

performance against goals and standards.

• If performance is in line with goals or standards, that is

good. However, managers need to make sure the
reported performance is being achieved in a manner
consistent with the values of the organization.
• If reported performance falls short of goals and
standards, managers need to find the reasons for the
variance.
 1 - 71

Taking Corrective Action

• Variance from goals and standards require that managers take
corrective action.

• When actual performance easily exceeds a goal, corrective action

might be increasing the goal.

• When actual performance falls short of a goal, depending on what

further investigation reveals, managers might change strategy,
operations, or personnel.

• Radical change is not always the appropriate response when an

organization fails to reach a major goal.
 1 - 72

Providing Reinforcement

• If the goals and standards are met or exceeded, managers

need to provide timely positive reinforcement to those
responsible.
• Positive reinforcement could include the following:
congratulations for a job well done, awards, pay
increases, bonuses or enhanced career prospects.
• Providing positive reinforcement is just as important an
aspect of a control system as taking corrective action.
 1 - 73

Methods of Control

• Personal controls
• Bureaucratic controls
• Output controls
• Cultural controls
• Control through incentives
• Market controls
 1 - 74

Personal Control

• Personal control: Making sure through personal inspection

and direct supervision that individuals and units behave in a way
that is consistent with the goals of an organization.

• Personal control can be very subjective, with the manager

assessing how well subordinates are performing by observing and
interpreting their behavior.

• Personal control has serious limitations. For example, excess

supervision can be demotivating. Employees may resent being
closely supervised and perform better with a greater degree of
freedom.
 1 - 75

Bureaucratic Controls

• Bureaucratic controls: Control through a formal

system of written rules and procedures.
• The great German sociologist Max Weber was the first
to describe the nature of bureaucratic controls.
• Bureaucratic controls rely on prescribing what
individuals or units can and cannot do—this is, on
establishing bureaucratic standards.
• Almost all large organizations use some bureaucratic
controls.
 1 - 76

Output Controls

• Output controls: Setting goals for units or individuals to

achieve and monitoring performance against those goals.

• Output controls can be used when managers can identify tasks that
are complete in themselves in the sense of having a measurable
output or criterion of overall achievement that is visible.

• The great virtue of output controls is that they facilitate

decentralization and give individual managers within unit much
greater autonomy than either personal controls or bureaucratic
controls
 1 - 77

Cultural Controls

• Cultural control: Regulating behavior by socializing

employees so that they internalize the values and
assumptions of an organization and act in a manner that
is consistent with them.
• Self-control: Occurs when employees regulate their
own behavior so that it is congruent with organizational
goals.
• Although cultural control can mitigate the need for other
controls, thereby reducing monitoring costs, it is not
universally beneficial.
 1 - 78

Control Through Incentives

• Incentives: Devices used to encourage and reward

appropriate employee behavior.
• Many employees receive incentives in the form of annual bonus
pay.
• The idea is that giving employees incentives to work
productively cuts the need for other control mechanisms.
• Control through incentives is designed to facilitate self-
control—employees regulate their own behavior in a manner
consistent with organizational goals to maximize their chance
of earning incentive-based pay.
 1 - 79

More Money?

60

40

20
Want
0
More Money Better Better Work/Family
Healthcare Retirement Balance
 1 - 80

Control Through Incentives

• When incentives are tied to team performance they have the added
benefit of encouraging cooperation between team members and
fostering a degree of peer control.

• Peer control: Occurs when employees pressure others within

their team or work group to perform up to or in excess of the
expectations of the organization.

• In sum, incentives can reinforce output controls, induce

employees to practice self-control, increase peer control, and
lower the need for other control mechanisms.
 1 - 81

Market Controls

• Market controls: Regulating the behavior of individuals and

units within an enterprise by setting up an internal market for
some valuable resource such as capital.
• Market controls are usually found within diversified enterprises
organized into product divisions, where the head office might act
as an internal investment bank, allocating capital funds between
the competing claims of different product divisions based on an
assessment of their likely future performance.
• The main problem with market controls is that fostering internal
competition between divisions for capital and the right to develop
new products can make it difficult to establish cooperation
between divisions for mutual gain.
 1 - 82

Matching Controls to
Strategy and Structure
• Controls in the single business:
• Functional structure with low integration
• Functional structure with high integration

• Controls in diversified firms:

• Controls in the diversified firm with low integration
• Controls in the diversified firm with high integration
 1 - 83

Choosing Control Metrics:

The Balanced Scorecard
• The Balanced scorecard: A control approach that suggest
managers use several different financial and operational metrics to
track performance and control an organization.
• In addition to traditional financial measures, which is referred to as
the financial perspective, managers should use the following
metrics related to:
- How customers see the organization (the customer perspective)
- What the organization must excel at (the operational perspective)
- The ability of the organization to learn and improve its offerings and
processes over time (the innovation perspective)
 Chapter
5
Motivating and
Rewarding Employee
Performance,
Managing Employee
Attitudes and Well-being
 1 - 85

Learning Objectives
1. Describe the characteristics of effective goal setting and
feedback.
2. Discuss the advantages and disadvantages of the four reward
objectives.
3. Discuss ways to measure employee performance more
accurately.
4. Describe the effect of emotions and attitudes on employee
behavior.
5. Identify four ways in which employees respond to job
dissatisfied.
6. Explain how job satisfaction relates to customer service and
satisfaction.
 1 - 86

Employee Engagement

• Employees emotional and rational motivation

- Their perceived ability to perform the job
- Their clear understanding of the organization’s vision
- Their belief that they have been given the resources to
get the job done

• It encompasses the four main factors that

contribute to employee performance
 1 - 87

Motivation: True or False?

• I can motivate people

• Fear is a damn good motivator
• I know what motivates me, so I know what
motivates my employees
• Increased job satisfaction means increased job
performance

Source: Managementhelp.org
 1 - 88

MARS Model

Ability Situational
factors

Motivation
(effort) Employee
*Direction behavior and
*Intensity results
*Persistence

Role
Perceptions
 1 - 89

Ability & Role

Perceptions
• Ability – consists of both the natural aptitudes and
learned capabilities required to successfully complete
a task
- Important factor of employee development

• Role perceptions – they understand the specifics,

importance, and preferred behaviors of the tasks.
Ways to improve is through job description and
ongoing coaching
 1 - 90

Managing Employee
Motivation
1. Drives and
needs

Motivation
(effort) Employee 3. Extrinsic
*Direction behavior and and intrinsic
*Intensity results rewards
*Persistence
2. Goals,
expectations,
and feedback
 1 - 91

Maslow’s Needs
Hierarchy
Self- Challenging tasks, freedom to try new ideas
actualization
Job status, recognition, mastering the job
Esteem
Human interaction, being accepted as a team
Belongingness member
Job security, employee benefits, safe
Safety workplace
Work hours, nourishments, air quality,
Physiological temperature
 1 - 92

Called in Sick?

50
45
40
35
30
25
20
15
10
5
0
Need a break Illness in family Errands

Workers who took a sick day

when not sick

Source: USA Today Snapshots

 1 - 93

Management Implications
of Maslow’s Theory

1. Employees have different needs at different

times
2. Employees have several interdependent needs,
not just one dominant need
3. At some point, most employees want to achieve
their full potential (self-actualization)
4. Employee needs are influenced by values and
norms
 1 - 94

Learned Needs Theory

Need for Need for

Achievement Affiliation
(nAch) (nAff)

Need for Power

(nPow)
 1 - 95

Four-Drive Theory Motivation

Drive to Social Personal Past

norms values experience
acquire

Drive to
Mental skill set
bond Goal-directing
resolves competing choice and effort
Drive to drive demands
learn

Drive to
defend
 1 - 96

Goal Setting

• The process of motivating employees

and clarifying their role perceptions by
establishing performance objectives
• A goal is a desirable future state that
an organization or person attempts to
realize
• Goal setting improves role perceptions
and consequently clarifies the direction
of employee effort
 1 - 97

Expectancy Theory
of Motivation
Outcome valence
E-to-P expectancy P-to-O expectancy (the outcome’s positive
or negative value to the
(probability that (probability that employee)
effort will result in performance will
a specific level of result in specific
performance) outcomes) Outcome 1
+ or -
Effort Performance Outcome 1
+ or -
Outcome 1
+ or -
 1 - 98

Rewards

• Extrinsic Rewards – anything received from another

person that the recipient values and is contingent on his or
her behavior or results
- Paychecks, performance bonuses, praise, and other
forms of recognition

• Intrinsic Rewards – a positive emotional experience

resulting directly and naturally from the individual’s
behavior or results
- Learning a new task, feeling of accomplishment, etc.
 1 - 99

Motivation Through
Extrinsic Rewards

Membership & seniority- Nonfinancial rewards

based rewards
Job status-based rewards Improving performance
appraisals
Competency-based rewards Rewards employees
equitably
Performance-based rewards
 1 - 100

How to Accurately Evaluate

Employee Performance?

1. Use more objective measures of

performance
2. Use anchored performance appraisal
instruments
3. Use multiple sources of
performance information
4. Use performance appraisal training
 1 - 101

Best Practices at Nucor

• Pay for performance – On average two-thirds of a

Nucor steelworker’s pay is based on a production bonus
• Listen to the frontline – According to the Execs, almost
all of the best ideas come from the factory floor
• Push-down authority – minimizing layers of
management
• Protect your culture –compatibility of culture with its
egalitarian philosophy and team spirit is a big focus of
its acquisition research

Source: Business Week, May 1, 2006

 1 - 102

Correcting Inequity
Feelings

• Change Inputs
• Change Outcomes
• Change Perceptions
• Leave the Situation
 1 - 103

Job Characteristics Model

Core job Critical psychological

Outcomes
characteristics states

Skill variety Task Work motivation

Meaningfulness
identity Task
significance Growth
satisfaction
Autonomy Responsibility
General
Satisfaction
Feedback from job Knowledge of results
Work
effectiveness
Individual differences
*Knowledge and skill
*Context satisfaction
*Growth need strength
 1 - 104

Core Job
Characteristics
• Skill variety – the use of different skills and talents to complete
a variety of work activities
• Task identity – the degree to which a job requires completion
of a whole or identifiable piece of work
• Task significance – the degree to which the job affects the
organization and society
• Autonomy – provide freedom, independence, and discretion in
scheduling work and procedures
• Job feedback – the degree to which employees can tell how
well they are doing
 1 - 105

Job enrichment

• A job design practice in which employees

are given more responsibility for
scheduling, coordinating, and planning
their own work
- Combine highly interdependent tasks into
one job
- Establishing client relationships
- Give employees more autonomy over
their work
 1 - 106

Loyal vs. Trapped?

34

33

32

31

30

29

28
Loyal High risk T rapped

Workers

Source: CIO, October 1, 2003

 1 - 107

Empowerment

• A psychological concept represented by four

dimensions:
- Self-determination – they have freedom,
interdependence, and discretion over their work activities
- Meaning – they care about their work and believe that
what they do is important
- Competence – their ability to perform the work well and
have a capability to grow with new challenges
- Impact – Active participants in the organization; that is,
their decisions and actions influence the company’s
success
 1 - 108

Inspiring Employees

• Don’t ask for worker input – use it.

• Tell your people you care about them.
• Show employees what they are learning
• Support people when they make a mistake.
• Set clear goals and celebrate accomplishments.

Source: Business Week, May 1, 2006

 1 - 109

Emotions, Attitudes,
& Behavior
• Emotions – are physiological, behavioral, and psychological
episodes experienced toward an object.
• Attitudes – clusters of beliefs, assessed feelings, and behavioral
intentions toward a person, object, or event.
- Beliefs – These are established perceptions about the attitude object-
what you believe to be true.
- Feelings – represent your positive or negative evaluations of the
attitude object.
- Behavioral intentions – your motivation to engage and attitudes are
connected to each other and to behavior.
 1 - 110

Model of Emotions,
Attitudes, and Behavior
Perceived Environment
Cognitive process Emotional process
Beliefs
Attitude

Feelings Emotional
episodes
Behavioral
intentions

Behavior
 1 - 111

Cognitive Dissonance

An uncomfortable
Cognitive tension experienced
Dissonance when behavior is
inconsistent with our
attitudes.
Depends on how much
the behavior is:

Public Important Voluntary

 1 - 112

Job Satisfaction

Job Satisfaction A person’s

evaluation of his
or her job and
work context.
It is the appraisal
of the perceived:

Work Emotional
Job characteristics
environment experiences at work
 1 - 113

Job Satisfaction
By Location
Denmark 61%

India 55%
Norway 54%
United States 50%

Ireland 49%
Mexico 44%
China 11%
Hungary 9%

0% 10% 20% 30% 40% 50% 60% 70%

 1 - 114

Gender and Pay Gap

Women vs. Men: The Real Pay Gap

Average annual earnings between 1983 and 1998 of workers age 25 to 59

Share Share Pay

Measure Men Women
of men of women Ratio
Everyone who worked at least
99% 96% $48,068 $21,363 44%
one of the 15 years

Those who worked all 15 years,

84 48 52,510 29,507 56
including part-timers
 1 - 115

EVLN Model

EXIT – leaving the

organization, transferring to VOICE – any
another work unit, or at attempt to change, rather than
least trying to make these escape from, a dissatisfying
exits situation.

LOYALTY – NEGLECT –
Employees who respond to reducing work effort, paying less
dissatisfaction by patiently attention to quality, and increasing
waiting. absenteeism and lateness
 1 - 116

Employee-Customer-
Profit-Chain Model
Organizational Practices Higher Revenue and Profits

Employee satisfaction with •Satisfied clients

job and company •More returning clients
•More client referrals

•Lower turnover
•Friendly service
•Motivated staff Clients perceive higher-
value service
 1 - 117

Organizational
Commitment (OC)
• Organizational Commitment - An employee’s emotional
attachment to, identification with, and involvement in a
particular organization.
- Continuance commitment – An employee’s calculative
attachment to an organization. Motivated to stay only because it is
costly to leave.
• Building OC
- Justice and support
- Shared values
- Trust
- Organizational comprehension
- Employee involvement
 1 - 118

Stress

• Stress – an adaptive response to a situation that is perceived as

challenging or threatening to a person’s well-being.
• The stress response is a complex emotion that produces
physiological changes to prepare us for ―fight or flight‖
- Heart rate increases, muscles tighten, and breathing speeds up
• Two types of stress
- Distress (negative) – physiological, psychological deviation from
healthy functioning.
- Eustress (positive) – it activates and motivates people to achieve
goals, change their environments, and succeed in life’s challenges
 1 - 119

Stressed Out

Northwestern National Life Survey

• Percent of workers who report their job is “very or
extremely stressful” – 40%
Families and Work Institute Survey
• Percent of workers who report they are “often or very
often burned out or stressed by their work” – 26%
Yale University Survey
• Percent of workers who report they feel “quite a bit
or extremely stressed at work” – 29%

Source: cdc.gov/niosh/stresswk.html
 1 - 120

Causes of Stress
for College Students
• Change – a big life change, like entering a university
• Loss – someone close to you
• Uncertain Future – thinking about your career
• Wasting Time
- Procrastination
- Disorganization
- Lack of Interest
- Burnout / Exhaustion
- Unnecessary perfectionism
- Visitors / Telephone Calls
Source: Health Information, University of Ottawa
 1 - 121

Consequences of Distress

Impaired job Tension headaches

Muscle pain
performance
Job dissatisfaction Workplace accidents

Poor decision Consequences Depression

making

Lower organizational Cardiovascular

commitment disease

Aggressive behavior Moodiness

 1 - 122

Suicide Risk in Teens:

Signs to Identify Help Needed

Boys Girls
• Impulsive • Withdrawn
• Quick to lose temper • Loss of interest in things that
• Alcohol or drug use used to give pleasure
• Rapid emotional shifts • Decreased ability to
• Aggressive concentrate on school work
or drop in grades
• Violent
• Self-critical
• Despondent
• Irritable
• Irritable
• Change in sleep habits
• Tendency to get into trouble
• Change in appetite
 1 - 123

General Adaptation
Syndrome
Stage 1 Stage 2 Stage 3
Alarm reaction Resistance Exhaustion
Ability to cope

High

Normal state

Low

Time
 1 - 124

Stressors

Low Task Work

Control Overload

Harassment and Incivility -

Psychological harassment -
Sexual harassment
 1 - 125

Workplace-Related Stress
Management Practices
Stress Management Examples
Strategy
Withdraw from the stressor. Work breaks, days off, vacations, and
sabbaticals.

Change stress perceptions. Increasing employee confidence,

providing humor.

Control stress consequences. Relaxation and meditation techniques,

wellness programs.

Receive social support. Supportive leadership, social

interaction, support groups.

Remove the stressor. Reassign employees; minimize noise,

unsafe conditions, harassment.
 1 - 126

Support Work-life Balance

• Offer flexible work hours in which employees can

arrange to begin and end their workdays earlier or
later
• Job-sharing – a position is split between two people
• Personal leave – time and flexibility to raise a family,
care for elderly, or take advantage of a personal
experience
• Telecommuting – employees work from home or a
remote site, usually with a computer connection to the
office.
 1 - 127

Big 5 Personality
Dimensions
Big Five Dimension People with a high score on this
dimension tend to be more:

Conscientiousness Careful, dependable, self-

disciplined
Agreeableness Courteous, good-natured,
empathetic, caring
Neuroticism Anxious, hostile, depressed

Openness to Experience Sensitive, flexible, creative,

curious
Extroversion Outgoing, talkative, sociable,
assertive
 1 - 128

Effects of Personality

Performance Career
Satisfaction

Personality

Stress & Well- Emotions &

Being Attitudes
 1 - 129

Holland’s Six Types

of Personalities
Type Personality Traits

Realistic Practical, shy, materialistic, stable.

Investigative Analytic, introverted, reserved, curious, precise,

independent.
Artistic Creative, impulsive, idealistic, intuitive,
emotional.
Social Sociable, outgoing, conscientious, need for
affiliation.
Enterprising Confident, assertive, energetic, need for power.

Conventional Dependable, disciplined, orderly, practical,

efficient.
Chapter
6
Effective
Leadership,
Communication
 1 - 131

Learning Objectives

1. Explain why good leadership is critical for success as a

manager.
2. Identify the behaviors and skills that are commonly
associated with effective leadership.
3. Discuss the differences between transformational and
transactional leadership.
4. Outline the main elements of a communication system.
5. Explain why it is important to match media to a
message.
 1 - 132

Managing & Leading

Leaders Managers

―Doing the ―Doing things

right things‖ right‖

Focuses on
Focus on vision,
preserving the
mission, and goals
status quo
 1 - 133

Organizational Challenges

The challenges facing organizations and leaders are

becoming increasingly complex. An internet survey by
the Center for Creative Leadership revealed the
following:

Type of Challenge Frequency Percentage

Technical Challenge 43%
Adaptive Challenge 37%
Critical Challenge 10%
Source: Changing Nature of Leadership Research Report, The Center for Creative Leadership
 1 - 134

Perspectives on Leadership

Power- Trait
influence (competency)
perspective perspective
Effective
Leadership

Contingency Behavior
perspective Transformational perspective
perspective
 1 - 135

Perspectives of Leadership

• Power-influence approach – attempts to

explain leadership effectiveness in terms of the
amount of power possessed by a leader.
• Trait/competency perspective – identifies the
traits and competencies of effective leaders
• Behavior approach – asserts that certain
behaviors are related to leadership effectiveness
 1 - 136

Perspectives of Leadership

• Contingency perspective – argues that the

appropriate behaviors for a leader to adopt
depend on context, and that will work in some
situations will not work in others
• Transformational perspective – suggests that
effective leaders ―transform‖ organizations
through their vision
 1 - 137

The Power-Influence
Perspective

Effective leaders rely on:

- the personal power that flows from expertise
- a network of allies
- individual attributes
- power flowing from their position
 1 - 138

What Makes
Leaders Great?
1. Self-awareness 6. Ability to inspire
2. Personal conviction 7. Ability to listen
3. Courage 8. Ability to innovate
4. Creativity 9. Eagerness to
5. Curiosity experience
10.Willingness to
reflect
 1 - 139

Skill Sets Required

by Academic Leaders
Skill set % of Respondents indicating
as Important
Selling, marketing, and public relations 69%
Global business understanding 67%
Human resource and staffing 57%
Risk, cost, and financial management 51%
Project management 48%
E-business and IT knowledge 42%
Negotiation and employment law 27%
 1 - 140

Competency Perspective

Traits that can be acquired through learning

Strategic
Emotional Thinking Achievement
Intelligence Motivation
Power
Charisma
Motivation
 1 - 141

Emotional Intelligence

Self-awareness Self-regulation

Empathy Motivation

Social skills
 1 - 142

Limitations & Implications

of Competency Perspective

• Not all of the traits are equally

important
• Not all great leaders demonstrate all
traits
• Importance of traits is context
dependent
 1 - 143

Behavior Perspective

• Assumption: Certain leadership behaviors result in greater

commitment on the part of subordinates and hence higher
performance in pursuit of organization goals
• People-oriented behavior – A leadership style that includes
showing mutual trust and respect for subordinates,
demonstrating genuine concern for their needs
• Task-oriented behavior – The style of leaders who assign
employees to specific tasks, clarify their work duties and
procedures, ensure that they follow company rules, and push
them to reach their performance capacity
 1 - 144

Fiedler’s Leadership Theory

Contingencies
*Leader-member relations
*Task structure
*Position power

Outcomes
Leadership style *Team, unit, or
*People-oriented organization
*Task-oriented performance
 1 - 145

Predictions of
Fiedler’s Theory
Task-oriented
Good leaders
Leadership effectiveness

People-oriented
leaders

Poor
Favorable Moderately favorable Unfavorable
Situation Situation Situation
 1 - 146

Weaknesses of
Fiedler’s Theory
• Simplistic
• Classification into two broad types seems
an unwarranted generalization
• Division into people-oriented and task-
oriented ignores the fact that some leaders
can exhibit both
• Unrealistic to ―reward‖ an effective leader
by removing him
• Assumes that leaders cannot change their
style
 1 - 147

Path-Goal Theory
Personal characteristics Leadership styles Nature of work
of subordinates *Directive environment
*Skills *Supportive *Task structure
*Needs *Participative *Team dynamics
*Motivations *Achievement-oriented *Formal power

Clarify path
Clear path
Offer rewards

Employee goals Outcomes

Path to goal attainment
(goal attainment)
 1 - 148

Path-Goal Predictions

• If followers lack confidence, supportive

leadership will increase subordinates’
confidence that they can achieve goals,
which raises performance
• If the task of subordinates is ambiguous,
directive leadership may be preferred
because it helps clarify the path
subordinates must follow, which again
increases performance
 1 - 149

Path-Goal Predictions

• If the task of subordinates is standardized and dull,

achievement-oriented leadership can motivate
subordinates by setting high goals and expressing
confidence in their abilities
• If the rewards offered to the employees are
inappropriate, participative leadership may allow
the leader to clarify the needs of subordinates and
change rewards to improve performance
 1 - 150

Limitations of
Path-Goal Theory
• The implicit assumption that a leader can adopt only
one style at a time seems simplistic
• There is still no strong empirical consensus that path-
goal theory does a good job of explaining what is
required for effective leadership
• It has a narrow definition of leadership effectiveness
• Other potentially important factors of the leadership
process are ignored
• It provides only a partial definition
 1 - 151

Behaviors of
Transformational Leaders

Envisioning a Communicating
new future persistently
Creating an
enduring Modeling
organization Transformational desired
behaviors
Leadership
Leading with Meaningful changes Empowering
integrity in strategy and employees
organization
 1 - 152

Gender Differences
in Leadership
• Women:
- have more people-oriented, participative leadership
- are more relationship-oriented, cooperative, nurturing, and emotional
in their leadership roles
• Generally, studies have shown that men and women do not differ in
either task-oriented or people-oriented leadership
• However, women do adopt a participative style more readily
• Overall, subordinates have expectations from their leaders as to how
they should act, and if the leader deviates from this
belief negative evaluations may occur
 1 - 153

Glass Ceiling

Proportion of Female CEO’s, 2000 to 2016:

2000 2006 2010 2016

0.06% 2% 4.90% 6.20%

Source: Business Week, December 4, 2006

 1 - 154

Communication

• The process by which information is exchanged and

understood between people
• Transmitting the sender’s intended meaning is the
essence of good communication
 1 - 155

Managers Use
Communication to:
• Transmit information about their goals, strategies,
expectations, management philosophy, and values
• Build commitment among subordinates to their programs and
policies, convince allies in their network to support them,
persuade their bosses that they are performing well, and
influence stakeholders
• Achieve coordination between different units within an
organization, such as R&D, marketing, and production
• Help shape the image of themselves that they present to the
world
 1 - 156

Professional Business
Communication Advice

• Don’t interrupt – this is really looked down upon

• Use meetings to get to know your co-workers
• Let speakers in meetings speak freely about their
needs
• Value time, so stick to the issues on the agenda
• Avoid personal confrontations
• Don’t tell foreign jokes, they don’t work in
translation
Source: www.professional-business-communications.com
 1 - 157

Model of the
Communication Process
Sender Transit Receiver
message
Receive
Encode Form Decode
encoded
message message message
message

Noise

Receive
Decode Encode Form
feedback encoded feedback
feedback feedback
Transit
feedback
 1 - 158

Communication Channels

Verbal Nonverbal
Communication Communication
 1 - 159

Verbal Communication

• Any oral or written means of transmitting meaning

through words including face-to-face meetings,
telephone conversations, written memos, and e-mail
messages
• Media richness – The volume and variety of
information that a sender and receiver can transmit
during a specific time
• Flaming – The act of sending an emotionally charged
message to others
 1 - 160

Europe Heads
for the E-mail
Audience
Company Country
Reach* 5/04
1. Google 36.7% U.S.
2. MSN 35.7% U.S.
3. Microsoft.com 33.3% U.S.
4. Ebay 20.7% U.S.
5. Yahoo! 19.7% U.S.
6. Wanadoo** 13.2% France
7. Tiscali** 10.1% Italy
8. Lycos Europe** 9.8% Spain
9. Amazon 9.6% U.S.
10. T-Online** 9.3% Germany
 1 - 161

Nonverbal Communication

• Any part of communication that does not use words

• Messages sent through human actions and behavior
rather than words
• Facial gestures, voice intonation, posture, physical
distance, and silence
• Emotional contagion – the automatic process of
―catching‖ or sharing another person’s emotions by
mimicking that person’s facial expressions and other
nonverbal behavior
 1 - 162

Media Richness

1. Rich media simultaneously use multiple communication

methods
2. Rich media such as face-to-face communication allow
immediate feedback from receiver to sender, whereas
feedback in lean media, such as written reports, is
delayed or nonexistent
3. Rich media let the sender customize the message to the
receiver. Most face-to-face conversations are developed
specifically for one or a few people.
 1 - 163

Matching Media
to the Situation
Rich
Medium Overload zone Face-to-face
Video conference
Telephone

Richness of the Instant massaging

Communication E-mail
Medium
Web-logs

Lean Newsletters
Oversimplified zone
Medium Financial statement
Routine/ Communication situation Nonroutine/
clear ambiguous
 1 - 164

Organizational
Communication

Formal Informal
Communication Communication
Channels Channels
 1 - 165

Formal Communication

• Systems of officially sanctioned channels within an

organization that are used regularly to communicate
information
• Downward communication – occurs when information flows
from higher levels within an organization hierarchy
• Upward communication – occurs when information flows
from lower to higher levels within an organization hierarchy
• Horizontal communication – relationships between
individuals
 1 - 166

Informal Communication

• Unofficial communication channels

not formally established by managers
• Personal networks – relationships
between individuals
• Grapevine –the spread of
unsanctioned information (rumor or
gossip) through personal networks
 1 - 167

Communication Barriers
& Breakdowns (Noise)

Language
Perceptions Filtering Barriers

Information Cultural Gender

Overload Differences Differences
 1 - 168

Perceptions

The process of attending to, interpreting,

and organizing information

Selective Attribution
Stereotyping Process
Perception

Fundamental
Attribution Error Self-Serving Bias Recency Effect
 1 - 169

Language Barriers

• Jargon – technical language and acronyms as well

as recognized words with specialized meaning in
specific organizations or social groups

• Drop-off – distortion in the content of a message

as it passes through a communication system
 1 - 170

Information Overload
Episodes of Employee’s
information information
overload processing
capacity
Information Load

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII

Time
 1 - 171

Improving Communication

Facilitate
communication Engage in active Communicate directly
listening with employees
through workspace
design

IMPROVING
Reduce Proactively use
COMMUNICATION the grapevine
information
overload

Get your Match media

message across to message
 1 - 172

Active Listening

Sensing
*Postpone evaluation
*Avoid interruptions
*Maintain interest

Active
Listening

Responding Evaluating
*Show interest *Empathize
*Clarify the message *Organize information
 1 - 173

Communicate Directly
With Employees

Management By
Walking Around
effective way to counteracting
filtering, and it can teach the
manager things that might not
be transmitted upward through
formal channels