CH.

14
MANAGEMENT,
MOTIVATION,
AND LEADERSHIP:
BRINGING BUSINESS TO LIFE
14-1 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 Functions
 Planning: Determining organizational goals and action plans for how to
achieve those goals.

 Organizing: Determining a structure for both individual jobs and the

overall organization.

 Leading: Directing and motivating people to achieve organizational goals.

 Controlling: Monitoring performance and making adjustments as
needed.
14-1a Management Hierarchy and
14-1b Management Skills
Management Hierarchy
Top management: Managers who set the overall direction of the firm,
articulating a vision, establishing priorities, and allocating time, money, and
other resources.
Middle management: Managers who supervise lower-level managers and
report to a higher-level manager.
First-line (supervisory) management: Managers who directly supervise non-
management employees.

Management Skills
Technical skills: Expertise in a specific functional area or department
accounting, computer programming.
Human skills: The ability to work effectively with and through other people in
a range of different relationships. Communication, leadership,
Conceptual skills: The ability to grasp a big-picture view of the overall
organization, the relationships among its various parts, and its fit in the
broader competitive environment.
14-1a Management Hierarchy and
14-1b Management Skills
Skills needed at various levels of management
14-2 Motivation : Lighting the Fire

Theories of Motivation
1. Maslow’s hierarchy of needs theory
○ Self-Actualization Need for fulfillment
○ Esteem Need for self-respect and respect from others
○ Social (Belonging) Need to feel connected to others
○ Safety Need to feel secure
○ Physiological Need for basic survival

2. Theory X and Theory Y (Exhibit 14.2)_ Douglas McGregor

3. Expectancy Theory (Victor H. Vroom )
Effort → Performance → Reward
4. Equity Theory (John Stacey Adams)
Perceptions of fairness
Management Functions
14-3 Planning: Figuring Out Where to Go and How
to Get There

Strategic planning: High-level, long-term planning that

establishes a vision for the company, defines long-term
objectives and priorities, determines broad action steps, and
allocates resources.

Tactical planning: More specific, shorter-term planning that

applies strategic plans to specific functional areas.

Operational planning: Very specific, short-term planning that

applies tactical plans to daily, weekly, and monthly operations.

Contingency planning: Planning for unexpected events, usually

involving a range of scenarios and assumptions that differ from the
assumptions behind the core plans.
Management Functions
14-3 Planning: Figuring Out Where to Go and How
to Get There
14-4 Organizing: Fitting Together the
Puzzle Pieces
14-4a Key Organizing Considerations

Degree of centralization: The extent to which decision-making power is

held by a small number of people at the top of the organization.

Span of control: Span of management; refers to the number of people a

manager supervises.

Departmentalization: The division of workers into logical groups.

■ Functional
■ Product
■ Customer
■ Geographical
■ Process
14-4 Organizing: Fitting Together the
Puzzle Pieces
14-5 Leadership: Directing
and Inspiring
14-5a Leadership Style
Autocratic leaders: Leaders who hoard decision-making power
for themselves and typically issue orders without consulting their
followers.

Democratic leaders: Leaders who share power with their

followers. While they still make final decisions, they typically solicit
and incorporate input from their followers.

Free-rein leaders: Leaders who set objectives for their

followers but give them freedom to choose how they will
accomplish those goals.

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14-6 Controlling: Making
Sure It All Works
Controlling means monitoring
performance of the firm— or
individuals within the firm—and
making improvements when
necessary.

The control process includes

three key steps:
1. Establish clear performance
standards.
2. Measure actual performance against
standards.
3. Take corrective action if necessary.
CH 15: Human Resource Management:
Building a Top-Quality Workforce
Human Resource (HR) Management: The management
function focused on maximizing the effectiveness of the
workforce by recruiting world-class talent, promoting career
development, and determining workforce strategies to boost
organizational effectiveness.
15-4 Human Resource Planning: Drawing the Map
Job analysis: The examination of specific tasks that are
assigned to each position, independent of who might be
holding the job at any specific time.
Job description: An explanation of the responsibilities for a
specific position.
Job specifications: The specific qualifications necessary to
hold a particular position.
Core area of human resource
management

Recruitment

Selection

Training

Evaluation

Compensation

Benefits

Separation
 Core areas of human resource
management
 Recruitment: Finding the Right People
Internal recruitment: The process of seeking employees who are
currently within the firm to fill open positions.
External recruitment: The process of seeking new employees from
outside the firm.

 Selection: Accepting applications, interviewing, testing, checking

references and background, and making the job offer

 Training: Orientation, on the job and off the job training

 Evaluation: Assessing Employee Performance

 Core area of human resource
management
 Compensation: The combination of pay and benefits that
employees receive in exchange for their work.
Wages: The pay that employees receive in exchange for the
number of hours or days that they work.
Salaries: The pay that employees receive over a fixed period,
most often weekly or monthly.

 Benefits: Noncash compensation, such as health insurance,

vacation, and childcare.

 Separation: Breaking Up Is Hard to Do

Legal Issues: HR and the Long Arm of the Law

Chapter 16- Managing Information and
Technology: Finding New Ways to Learn and Link

16-4: Information Technology and the

World of E-Commerce
 e-commerce: The marketing, buying, selling, and
servicing of products over a network (usually the Internet).

 Business-to-Consumer (B2C) e-commerce: E-

commerce in which businesses and final consumers interact.

 Business-to-Business (B2B) e-commerce: E-commerce

in markets where businesses buy from and sell to other
businesses.
Exhibit 16.2: Key Differences between B2C
and B2B e-Commerce