BUSN Ch.14 Management Motivation, and Leadership: Bringing Business to Life

Management

Achieving the goals of an organization through planning, organizing, leading, and controlling organizational resources including people, money, and time.

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.

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 nonmanagement employees.

Technical Skills

Expertise in a specific functional area or department.

Human Skills

The ability to work effectively with and through other people in a range of different relationships.

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.

Maslow's Hierarchy of Needs Theory

A motivation theory that suggests that human needs fall into a hierarchy and that as each need is met, people become motivated to meet the next-highest need.

Theory X and Theory Y

A motivation theory suggesting management attitudes toward workers fall into two opposing categories based on assumptions about worker capabilities and values.

Job Enrichment

The creation of jobs with more meaningful content, under the assumption that challenging, creative work will motivate employees.

Expectancy Theory

A motivation theory concerning the relationship among individual effort, individual performance, and individual reward.

Equity Theory

A motivation theory proposing that perceptions of fairness directly affect worker motivation.

Strategic Planning

High-level, long-term planning that establishes a vision, defines long-term objectives, 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 core plans.

Mission

The definition of an organization's purpose, values, and core goals, providing the framework for all other plans.

SWOT Analysis

A strategic planning tool evaluating an organization in terms of internal strengths and weaknesses, and external opportunities and threats.

Organization Chart

A visual representation of the company's formal structure.

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

Refers to the number of people a manager supervises.

Departmentalization

The division of workers into logical groups such as functional, product, customer, geographical, or process.

Line Organizations

Organizations with a clear, simple chain of command from top to bottom.

Line-and-Staff Organizations

Organizations where line managers form the primary authority chain and staff departments work alongside them to provide advice and assistance.

Matrix Organizations

Organizations with a flexible structure that brings together specialists from different areas to work on temporary projects.

Autocratic Leaders

Leaders who hoard decision-making power and issue orders without consulting followers.

Democratic Leaders

Leaders who share power, making final decisions after soliciting and incorporating input from followers.

Free-Rein Leaders

Leaders who set objectives and give followers the freedom to choose how to accomplish them.

Maslow's Hierarchy of Needs: Physiological

Need for basic survival (food, water, clothing, shelter); Workplace Example: A job with enough pay to buy the basics.

Maslow's Hierarchy of Needs: Safety

Need to feel secure, free of harm and fear; Workplace Example: Safety equipment, healthcare plans, life insurance, job security.

Maslow's Hierarchy of Needs: Social (Belonging)

Need to feel connected to others and accepted; Workplace Example: Teamwork, positive corporate culture, department outings.

Maslow's Hierarchy of Needs: Esteem

Need for self-respect and respect from others; Workplace Example: Acknowledgment, feedback, promotions, perks, raises.

Maslow's Hierarchy of Needs: Self-Actualization

Need for fulfillment and realizing fullest potential; Workplace Example: Challenging, creative jobs, meaningful work, volunteer opportunities.

SWOT Analysis: Internal Strengths Examples

Premium brand name, proven management team, lower costs/higher margins, diverse workforce.

SWOT Analysis: Internal Weaknesses Examples

Low employee satisfaction, inadequate financial resources, poor location, bad safety record.

SWOT Analysis: External Opportunities Examples

Higher consumer demand, complacent competitors, growth in foreign markets, new social trends.

SWOT Analysis: External Threats Examples

A powerful new competitor, a deep recession, new government regulations, significant new taxes.

Mission Statement Example: IKEA

To create a better everyday life for the many people by offering well-designed, functional home furnishing products at low prices.

Mission Statement Example: Google

To organize the world's information and make it universally accessible and useful.

Mission Statement Example: Warby Parker

To offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.

Motivation

Lighting the fire to motivate workers to reach their best selves and accomplish more than they ever thought possible.

Leadership

Directing and inspiring people; doing the right things to guide an organization.

Job Enrichment Factor 1: Skill Variety

Workers can use a range of different skills.

Job Enrichment Factor 2: Task Identity

Workers complete tasks with clear beginnings and endings.

Job Enrichment Factor 3: Task Significance

Workers understand the impact of the task on others.

Job Enrichment Factor 4: Autonomy

Workers have freedom and authority regarding their jobs.

Job Enrichment Factor 5: Feedback

Workers receive clear, frequent information about their performance.

Strategic Planning Step 1

Define the mission of the organization.

Strategic Planning Step 2

Evaluate the organization's competitive position.

Strategic Planning Step 3

Set goals for the organization.

Strategic Planning Step 4

Create strategies for competitive differentiation.

Strategic Planning Step 5

Implement strategies.

Strategic Planning Step 6

Evaluate results, and incorporate lessons learned.

Management Control Process Step 1

Establish clear performance standards.

Management Control Process Step 2

Measure actual performance against standards.

Management Control Process Step 3

Take corrective action if necessary.

Changing Role of Successful Management

The successful manager has transformed from boss to coach, from disciplinarian to motivator, and from dictator to team builder.

Management in Smaller Companies

Smaller companies usually lack a management hierarchy, requiring the owner to act as top-, middle-, and first-line manager simultaneously.

Mark Zuckerberg's Early Motivation

As a toddler, he dismantled his crib, and before college, he was recruited to work for Microsoft and AOL.

Warren Buffett's Early Business Success

Began delivering papers on his bicycle at age 13, earning $5,000 by the time he finished high school in 1947.

Richard Branson's Early Independence

Attributes at least some of his motivation to his mother, who made him find his own way home at age six after pushing him out of the car.

Front-Line Managers and Technical Skills

Require a high degree of technical skills to hire, train, evaluate employees, avoid mistakes, and ensure high-quality production.

Middle-Level Managers and Human Skills

Require an especially high level of human skills to act as a bridge between departments and coordinate people and projects with mismatched priorities.

Top-Level Managers and Conceptual Skills

Must demonstrate excellent conceptual skills to formulate a vision, interpret marketplace trends, and plan for the future.

Critical Thinking in Management

Helps managers find value even in an overload of information.

Email Management Time

The average knowledge worker spends 28% of work time managing email, and deleting unwanted emails can take over 16 hours per year.

Managerial Promotion Pitfall

Workers often get promoted for great technical skills but struggle to advance further because they fail to develop human and conceptual skills.

Western Union Telephone Rejection (1876)

Rejected buying rights to the telephone, claiming the device had too many shortcomings and was inherently of no value.

Coca-Cola Bottling Rights Sale (1899)

Asa Candler sold exclusive US bottling rights for Coca-Cola for the grand sum of $1.

20th Century Fox Star Wars Deal

Traded all Star Wars merchandising rights for a $20,000 pay cut, missing out on over $3 billion in revenue.

Excite Google Rejection (1999)

Rejected an offer to buy Google for $1 million because they considered the asking price too high.

Mylan EpiPen Price Increase (2016)

Raised the EpiPen price from $57 to over $500, leading to a 34% stock drop and demonstrating that increased profits aren't always worth the cost.

Samsung Galaxy Note 7 Recall (2016)

Suffered a massive recall costing up to $17 billion due to phones catching fire, highlighting the risk of releasing untested products.

Decca Records Beatles Rejection (1962)

Mike Smith of Decca Records rejected the Beatles, stating that 'groups are out; four-piece groups with guitars particularly are finished.'

House of Blues Motivation Strategy

Uses self-actualization needs by inspiring employees through a mission to promote racial and spiritual harmony.

Hustle Culture

A culture focused on moving fast, testing and learning, and pushing relentlessly forward, which can become toxic if not balanced with empathy and respect.

Equity Theory Responses

Actions taken in response to perceived inequity, including demanding a raise, altering work habits, distorting perceptions, or leaving the company.

Hot Topic Expectancy Theory Example

A retailer that successfully linked hard work to performance and rewards, helping it perform well during the 2008 recession.

Richard Branson's Leadership Approach

Giving managers autonomy and a stake in their companies to keep people motivated and fully engaged.

Jeff Sinelli's Hustle Philosophy

CEO of Which Wich who encourages teams to maintain a sense of urgency and hustle in serving customers.

Google Corporate Culture & Perks

Offers free perks like haircuts, massage, 25 cafes, and a safe, inclusive environment that boosts productivity and engagement.

Baird's "No A**holes" Policy

Zero tolerance for those who don't play well with others, combined with two-thirds employee shareholding to build equality.

Burns & McDonnell Employee Ownership

100% employee-owned engineering and architecture firm praised for tight-knit, collaborative teams and the stance that selfish behavior gets you nowhere.

Kimpton Hotels & Restaurants Workplace Care

Pet-friendly workplace, pet grief accommodations, and senior manager month-long sabbaticals after seven years requiring unplugging from work.

Sabbatical Programs (Adobe, Genentech, David Weekley)

Generous paid time off and sabbaticals ranging from 4 to 6 weeks after years of service, with David Weekley even providing a $2,000 travel/education grant.

KPMG Summer Gift Program

An annual program sending barbecue and ice cream packages to employees' homes to celebrate success and thank them for contributions.

Workday Personal Concierge Service

A concierge service provided to staffers to help schedule appointments, run errands, and go shopping.

Quicken Loans Open Culture

Nurtures an open culture where CEO Bill Emerson gives his personal cell phone number to all 8,500 employees.

Facebook's "Hack Culture" ("The Hacker Way")

An approach of continuous improvement and iteration, believing that something can always be better and nothing is ever complete.

Elite SEM Millennial Benefits

Unlimited paid vacation days with a mandatory requirement to take a solid week of paid time off every year.

Kimley-Horn Employee Engagement

Takes employee ideas and solutions seriously at all levels and sponsors monthly outings like kickball tournaments, ice cream socials, and cooking contests.

Executive Value of Planning

A Wall Street Journal survey found that 80% of executives identify planning as their most valuable management tool.

Balance in Effective Planning

The best plans keep the organization on track without sacrificing flexibility and responsiveness to internal and external change.

Planning Feedback Flow

Successful firms encourage a flow of feedback up and down the organization to ensure key plans are sound and key players buy in.

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.