Week 3 - Leadership, Management and Motivation

14 Management, Motivation and Leadership: Bringing Business to Life
BUSN ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14 Management, Motivation and
Leadership:
Bringing Business to Life
• What is the role of management and why is it important to

organizational success?
• What are the key theories and current practices of
motivation?
• What are the categories of business planning?
• What is strategic planning?
• What is the purpose of organizing as a management
function?
• What is the role of managerial leadership and key
leadership roles?
• What is the management control process?
Bringing Resources to Life
Management
Achieving the goals of an
organization through planning,
organizing, leading, and
controlling organizational
resources including people,
money and time
Management Hierarchy: Levels of Responsibility
Top Management
• Articulate Vision
• Establish Priorities
Middle Management
• Facilitate Communication
• Coordinate Teams
First Line Management

• Train, Motivate, Evaluate Employees
• Manage Daily Processes
© 2009 South-Western, a division of Cengage Learning
Management Skills:
Having What it Takes to Get the Job Done
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
Theories of Motivation:
Maslow’s Hierarchy of Needs Theory
Theories of Motivation: Theory X and Theory Y
Theory X Assumptions Theory Y Assumptions

Workers dislike work and will Work is as natural as play or
avoid it rest—workers do not dislike it
Fear is motivating—coercion and Rewards can motivate—people
threats are vital can exercise self-direction and
self-control
People prefer to be directed, People can accept, and even
avoiding responsibility seek responsibility
Imagination, creativity, and
ingenuity is widely distributed
Intellectual capacity of average
workers is underutilized
Theories of Motivation: Job Enrichment
Creating jobs with meaningful

content, creative work:
 Skill Variety
 Task Identity
 Task Significance
 Autonomy
 Feedback
Theories of Motivation: Expectancy Theory
Relationship among individual

effort, individual performance
and individual reward
Theory of Motivation: Equity Theory
• Perception of fairness directly impacts

worker motivation.
• The response to inequity almost always
involves:
 Challenges to the system
 Changing work habits (negatively)
 Distorting your perceptions
 Leaving the company
Motivation Today
• Range of motivation approaches

• Engaged and productive workers
• Emphasis on corporate culture
• Expanded incentives
• Focus on training and development
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
BUSN ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning:
Figuring Out Where to Go and How to Get There
Type of Management Examples of Planning Questions and

Planning Level Concerns
Strategic Senior • Should we acquire a new company?
Planning Management • Should we outsource?
Tactical Middle • Should we invest in new equipment?

Planning Management • Should we spend fewer ad dollars?
Operational First line • How should employees be scheduled?

Planning Management • How should customers be greeted?
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?
Strategic Planning: Setting the Agenda
• Define the mission

• Evaluate competitive position
• Set goals
• Create strategies
• Implement strategies
• Evaluate results and incorporate lessons
Defining Your Mission
Organization’s purpose, values, and core goals, providing the

framework for all other plans
Nike’s mission is to bring inspiration and innovation to every

athlete* in the world. *If you have a body, you are an athlete.
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.
Evaluating Your Competitive Position:

SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Potential internal strengths: Potential external opportunities:

• Premium brand name • Higher consumer demand
• Proven management team • Complacent competitors
• Lower costs/higher margins • Growth in foreign markets
Potential internal weaknesses: Potential external threats:

• Low employee satisfaction • A powerful new competitor
• Inadequate financial resources • A deep recession
• Poor location • New government regulations
Setting Your Strategic Goals
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
Goal Setting: Getting it Right
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
Organization Chart
Key Organization Considerations
• Degree of Centralization
• Span of Control
• Departmentalization
 Functional
 Product
 Customer
 Geographical
 Process
Organizational Models
Line Organization –
clear, simple
chain of command.
Staff Managers –
provide advice
and assistance.
Legal, Accounting, HR
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
Hybrid Departmentalization
Leadership: Directing and Inspiring
• Autocratic leaders hoard decision-making power

for themselves.
• Democratic leaders share power with their

followers.
• Free-reign leaders set objectives for their

followers but give them freedom to choose how
they accomplish those goals.
Leadership: Power & Influence
Leadership traits go hand-and-hand with

power and influence
• Position provides a leader formal authority
to either reward or punish.
• Expertise comes from a person’s abilities

and experience.
• Personality comes from a person’s character.
Controlling: Making Sure It All Works
1. Establish clear performance

standards
2. Measure actual
performance against
standards
3. Take corrective action if
necessary
14 Looking Back
• What is the role of management and why is it important to

organizational success?
• What are the key theories and current practices of
motivation?
• What are the categories of business planning?
• What is strategic planning?
• What is the purpose of organizing as a management
function?
• What is the role of managerial leadership and key
leadership roles?
• What is the management control process?

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14 Management, Motivation and Leadership: Bringing Business to Life

• What is the role of management and why is it important to

Bringing Resources to Life

Management Hierarchy: Levels of Responsibility

First Line Management

Motivation: Lighting the Fire

• Good managers motivate others to

Theories of Motivation: Theory X and Theory Y

Theory X Assumptions Theory Y Assumptions

Theories of Motivation: Job Enrichment

Creating jobs with meaningful

Theories of Motivation: Expectancy Theory

Relationship among individual

Theory of Motivation: Equity Theory

• Perception of fairness directly impacts

• Range of motivation approaches

• The planning function is core to effective

Type of Management Examples of Planning Questions and

Tactical Middle • Should we invest in new equipment?

Operational First line • How should employees be scheduled?

How should we respond if our competitors

What should we do if the government

How can we restart our business if a natural

How will we evacuate employees if terrorists

Strategic Planning: Setting the Agenda

• Define the mission

Defining Your Mission

Organization’s purpose, values, and core goals, providing the

Nike’s mission is to bring inspiration and innovation to every

State Farm's mission is to help people manage the

Google's mission is to organize the world's information and

Evaluating Your Competitive Position:

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Potential internal strengths: Potential external opportunities:

Potential internal weaknesses: Potential external threats:

Setting Your Strategic Goals

Creating Your Strategies

Goal Setting: Getting it Right

Organizing: Fitting Together the Puzzle Pieces

• Logical structure for people, their

Key Organization Considerations

Leadership: Directing and Inspiring

• Autocratic leaders hoard decision-making power

• Democratic leaders share power with their

• Free-reign leaders set objectives for their

Leadership: Power & Influence

Leadership traits go hand-and-hand with

• Expertise comes from a person’s abilities

• Personality comes from a person’s character.

Controlling: Making Sure It All Works

1. Establish clear performance

• What is the role of management and why is it important to

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