1-1 Management The complete story By Norris Dorsey

1-1 Management The complete story By Norris Dorsey

1-1 Management The complete story By Norris Dorsey McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1-2 Managing In The New Era Managerial practices will always separate effective from ineffective organizations Four key elements are new elements in business today Internet Globalization New Era Management Knowledge Management McGraw-Hill

Collaboration Across Boundaries 2003 The McGraw-Hill Companies, Inc. All rights rese Managing In The New Era (cont.) The 1-3 Internet communication technologies are driving massive change initial enthusiasm for e-business has dwindled 25% of publicly-held Web companies became profitable in 2002 most profitable Web companies sell information-based products that dont require shipping old economy types now using the Internet as a tool to solidify their future McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights rese Managing In The New Era (cont.) 1-4 Globalization far more than in the past, enterprises are global competing globally is not easy companies often overestimate the attractiveness of foreign markets even small firms that do not operate on a global scale must make strategic decisions based on international considerations McGraw-Hill face intense competition from high-quality foreign producers 2003 The McGraw-Hill Companies, Inc. All rights rese Managing In The New Era (cont.) Knowledge

1-5 management practices aimed at discovering and harnessing an organizations intellectual resources unlock peoples expertise, skills, wisdom, and relationships intellectual capital is the collective brainpower of the organization Collaboration across boundaries capitalize on the ideas of people outside the traditional company boundaries occurs between as well as within organizations

McGraw-Hill e.g., must effectively capitalize on customers brains 2003 The McGraw-Hill Companies, Inc. All rights rese Managing For Competitive Advantage Best 1-6 managers and companies deliver all four Cost Competitiveness Innovation Competitive Advantage Quality McGraw-Hill Speed 2003 The McGraw-Hill Companies, Inc. All rights rese Managing For Competitive Advantage

(cont.) 1-7 Innovation the introduction of new goods and services comes from people must be a strategic goal must be managed properly Quality excellence of a product, including its attractiveness, lack of defects, reliability, and long-term durability importance of quality has increased dramatically catering to customers other needs creates more perceived quality McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Managing For Competitive Advantage (cont.) 1-8

Speed fast and timely execution, response, and delivery of results often separates winners from losers in world competition requirement has increased exponentially Cost competitiveness costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers key is efficiency - accomplishing goals by using resources wisely and minimizing waste little things can save big money McGraw-Hill cost cuts involve tradeoffs 2003 The McGraw-Hill Companies, Inc. All rights rese The Functions Of Management 1-9 Management

the process of working with people and resources to accomplish organizational goals good managers must be: effective - achieve organizational goals efficient - achieve goals with minimum waste of resources there are timeless principles of management still important for making managers and companies great must add fresh thinking and new approaches McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese The Functions Of Management (cont.) 1 - 10 The manager who does not devote adequate attention and resources to all four functions will fail

Leading Organizing Controlling Planning McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese The Functions Of Management (cont.) 1 - 11 Planning specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals delivering strategic value - planning function for the new era a dynamic process in which the organization uses the brains of its members and of stakeholders to identify opportunities to maintain and increase competitive advantage process intended to create more value for the customer McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese

The Functions Of Management (cont.) 1 - 12 Organizing assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals building a dynamic organization - organizing function for the new era viewing people as the most valuable resource the future requires building flexible organizations McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese The Functions Of Management (cont.) 1 - 13 Leading stimulating people to be high performers in the new era, managers must be good at mobilizing people to contribute their ideas

Controlling monitoring progress and implementing necessary changes makes sure that goals are met new technology makes it possible to achieve more effective controls for the future, will have to be able to monitor continuous learning and changing McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 14 Management Levels Top-level managers (strategic managers) senior executives responsible for the overall management and effectiveness of the organization focus on long-term issues emphasize the survival, growth, and effectiveness of the firm concerned with the interaction between the organization and its external environment titles include Chief Executive Officer (CEO), Chief Operating Officer (COO), company presidents and vice presidents

McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Management Levels (cont.) Middle-level 1 - 15 managers (tactical managers) located between top-level and frontline managers in the organizational hierarchy responsible for translating strategic goals and plans into more specific objectives and activities traditional role was that of an administrative controller who bridged the gap between higher and lower levels provide operating skills and practical problem solving the keep the company working McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Management Levels (cont.) Frontline

1 - 16 managers (operational managers) lower-level managers who supervise the operational activities of the organization directly involved with nonmanagement employees increasingly being called on to be innovative and entrepreneurial titles include supervisor or sales manager Working leaders with broad responsibilities in small firms and large firms that have adapted to the times, managers have strategic, tactical, and operational responsibilities McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 17 Management Skills Skill

- specific ability that results from knowledge, information, and aptitude Technical skill ability to perform a specialized task that involves a certain method or process managers at higher levels rely less on technical skills Conceptual and decision skills ability to identify and resolve problems for the benefit of the organization assume greater importance as manager acquires more responsibility McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Management Skills (cont.) Interpersonal ability 1 - 18 and communication skills

to lead, motivate, and communicate effectively with others people skills important throughout your career at every level of management McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 19 You And Your Career Jobs are no longer as secure for managers as they used to be organizations still try to develop and retain good employees employee loyalty and commitment are still important Companies

offering employability to workers tend to be more successful provide training and other learning experiences employees perform work with greater responsibility McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese You And Your Career (cont.) Be 1 - 20 both a specialist and generalist specialist - expert in something provide concrete, identifiable value to the firm generalist - knowing about a variety of business functions so that you can understand work with different perspectives

Be self-reliant take responsibility for yourself, your actions, and your career regardless of where you work think and act like an entrepreneur look for opportunities to contribute in new ways generate constructive change McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese You And Your Career (cont.) Be 1 - 21 connected establish many good working relationships be a team player with strong interpersonal skills all business is a function of human relationships

McGraw-Hill competitive advantage depends upon you and other people 2003 The McGraw-Hill Companies, Inc. All rights rese Keys to Career Management 1. 2. 3. 4. 5. 6. 7. 8. 1 - 22 Think of yourself as a business. Define your product: What is your area of expertise? Know your target market: To whom are you going to sell this? Be clear on why your customer buys from you. What is your value proposition - what are you offering that causes him to use you? As in any business, strive for quality and customer satisfaction, even if your customer is just someone else in your organization - like your boss. Know your profession or field and whats going on there. Invest in your own growth and development, the way a company

invests in research and development. What new products will you be able to provide? Be willing to consider changing your career. McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese You And Your Career (cont.) Actively 1 - 23 manage your relationship with your organization two ways to think about the nature of the relationships between you and your employer view yourself as an employee two-way, mutually-beneficial exchange relationship

McGraw-Hill model for just getting by contributions likely to be minimal think about how you can contribute and act accordingly figure out new ways to add value organization likely provide full and fair rewards, support further personal development, and offer more gratifying work environment 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 24 Managerial Action Is Your Opportunity To Contribute You Your Organization McGraw-Hill Managerial Actions 1. Delivering Strategic Value 2. Building a Dynamic Organization 3. Mobilizing People

4. Learning and Changing 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 25 Environmental Analysis Environmental Scanning Scenario Development Benchmarking Forecasting McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 26 Characteristics Of Managerial Decisions McGraw-Hill Risk

Uncertainty Lack of Structure Conflict 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 27 Characteristics Of Managerial Decisions (cont.) Lack of structure the usual state of affairs in managerial decision making programmed decisions - decisions that have been encountered and made in the past have objectively correct answers are solvable by using simple rules, policies, or numerical computations nonprogrammed

decisions - new, novel, complex decisions having no proven answers McGraw-Hill decision maker must create or impose a method for making the decision 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 28 Characteristics Of Managerial Decisions (cont.) Uncertainty and risk certainty - have sufficient information to predict precisely the consequences of ones actions uncertainty - have insufficient information to know the consequences of different actions cannot estimate the likelihood of various consequences of their actions

risk - available information permits estimation of the likelihood of various consequences probability of an action being successful is less than 100 percent, and losses may occur good managers prefer to manage risk McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 29 Characteristics Of Managerial Decisions (cont.) Conflict opposing pressures from different sources occurs at two levels psychological conflict - individual decision makers:

conflict between individuals or groups few McGraw-Hill perceive several attractive options perceive no attractive options decisions are without conflict 2003 The McGraw-Hill Companies, Inc. All rights rese An Overview Of Planning Fundamentals 1 - 30 Planning the conscious, systematic process of making decisions about goals and activities to be pursued in the future importance of formal planning has grown dramatically Basic planning process Step

one: situational analysis a process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration study past and current conditions, and forecast future trends focuses on internal forces and influences from the external environment McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese An Overview Of Planning Fundamentals (cont.) Basic 1 - 31 planning process (cont.) Step two: alternative goals and plans generate alternative future goals and plans to achieve them goals - targets or ends the manager wants to reach

plans - the actions or means intended to achieve goals McGraw-Hill should be specific, challenging, and realistic should be acceptable to those charged with achieving them identify alternative actions, needed resources, and potential obstacles single use plans - designed to achieve goals that are unlikely to be repeated in the future standing plans - designed to achieve an enduring set of goals contingency plans - actions to be taken when initial plans fail or if events in the external environment require a sudden change 2003 The McGraw-Hill Companies, Inc. All rights rese An Overview Of Planning Fundamentals (cont.) Basic 1 - 32

planning process (cont.) Step three: goal and plan evaluation evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan prioritize those goals consider the implications of alternative plans Step four: goal and plan selection identify the priorities and trade-offs among goals and plans leads to a written set of goals and plans that are appropriate and feasible within a predicted set of circumstances scenario - narrative that describes a set of future conditions McGraw-Hill a contingency plan is attached to each scenario 2003 The McGraw-Hill Companies, Inc. All rights rese

An Overview Of Planning Fundamentals (cont.) Basic 1 - 33 planning process (cont.) Step five: implementation plans are useless unless they are implemented properly managers must understand the plan, have the necessary resources, and be motivated to implement it implementation likely to be more successful if managers and employees have participated in the previous planning steps the plan should be linked to other systems in the organization Step six: monitor and control must continually monitor the actual performance in relation to the goals and plans develop control systems to take corrective action McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights rese McGraw-Hill Identifying and diagnosing the problem Situational analysis Generating alternative solutions Alternative goals and plans Evaluating alternatives Goal and plan evaluation Making the choice Goal and plan selection Implementing

Implementation Evaluation Monitor and control Specific formal planning steps General decisionmaking stages Decision-Making Stages And Formal Planning Steps 1 - 34 2003 The McGraw-Hill Companies, Inc. All rights rese An Overview Of The HR Planning Process Planning 1 - 35 Programming Evaluation

Human resources activities Results Organizational strategic planning HRM environmental scanning Labor markets Technology Legislation Competition Economy McGraw-Hill Human resources planning Demand forecast Internal labor supply External labor supply Job analysis Employee recruitment Employee selection

Outplacement Training and development Performance appraisal Reward systems Labor relations Productivity Quality Innovation Satisfaction Turnover Absenteeism Health 2003 The McGraw-Hill Companies, Inc. All rights rese The Global Environment Global 1 - 36 environment becoming more integrated than ever before World Trade Organization (WTO) rules apply to over 90 percent of international trade has 144 member nations, including China

moved from reducing tariffs to eliminating nontariff barriers International Monetary Fund (IMF) established by the United Nations has 184 member countries McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese The Global Environment (cont.) European 1 - 37 unification European Union (EU) allows goods, services, capital, and human resources to flow freely across national borders goal is to strengthen Europe as an economic superpower Maastrict Treaty

impact of EU is hard to predict McGraw-Hill agreement to adopt a common European currency Euro Fortress Europe may restrict trade with countries outside of the EU 2003 The McGraw-Hill Companies, Inc. All rights rese The Global Environment (cont.) Pacific Rim important economic players include Japan and China four tigers - Korea, Taiwan, Singapore, and Hong Kong

Asia-Pacific reduce trade barriers establish general rules for investment develop policies that encourage foreign investment holds promise in facilitating and strengthening international business relationships McGraw-Hill Economic Cooperation (APEC) trying to: 1 - 38 member countries represent 40 percent of the worlds population and 50 percent of the worlds economic output 2003 The McGraw-Hill Companies, Inc. All rights rese

The Global Environment (cont.) North 1 - 39 America North American Free Trade Agreement (NAFTA) an economic pact that combined the economies of the U.S., Canada, and Mexico constitutes the worlds largest trading bloc provides access to previously protected markets in each country Mexico will have to bolster its infrastructure and take care of troubling environmental issues McGraw-Hill Border Environment Cooperation Commission (BECC) - addresses environmental concerns of communities on the border 2003 The McGraw-Hill Companies, Inc. All rights rese The Global Environment (cont.) Rest

1 - 40 of the world globalization has left out three huge, high-potential regions Middle East Africa Latin America these regions have a major share of the earths natural resources McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Conventional Organization Chart 1 - 41 President Finance

R&D Marketing Chemical Products Personnel Metal Products Personnel Finance Personnel Finance Manufacturing Sales Manufacturing Sales McGraw-Hill

2003 The McGraw-Hill Companies, Inc. All rights rese The Vertical Structure (cont.) 1 - 42 Delegation assignment of authority and responsibility to a subordinate can occur between any two individuals in any type of structure with regard to any task responsibility - assignment of a task that an employee is supposed to carry out should delegate enough authority to complete the task accountability - expectation that employees perform a job, take corrective action when necessary, and report upward on the status and quality of their performance managers remain responsible and accountable for their own actions and those of their subordinates McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese The Vertical Structure (cont.)

Delegation 1 - 43 (cont.) advantages of delegation permits getting work done through others manager saves time manager frees herself/himself to devote energy to other important, higher-level activities provides subordinates with more important jobs provides subordinates with the opportunity to develop new skills and to demonstrate potential from the organizations perspective, jobs are done more efficiently and cost-effectively McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Steps In Effective Delegation 1 - 44 Define the goal succinctly

Select the person for the task Solicit the subordinates view about suggested approaches Give the subordinate the authority, time, and resources (people, money,equipment) to perform the assignment Schedule checkpoints for reviewing progress Follow through by discussing progress at appropriate intervals McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 45 Diversity Today Diversity broad term used to refer to all kinds of differences members of different groups share common values, attitudes, and perceptions there is still much diversity within each group U.S. businesses must learn to manage a diverse workforce

Managing diversity must be aware of characteristics common to a group must manage employees as individuals must support, nurture, and utilize these differences to the organizations advantage McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 46 Components Of A Diversified Workforce Gender Age Racial and ethnic minorities in the United States Immigrants Physically and mentally disabled McGraw-Hill

Workforce Diversity Other Religious affiliation Veteran status Sexual orientation Expectations and values Lifestyle Skill level Educational level Economic class Workstyle Function and/or position within the company 2003 The McGraw-Hill Companies, Inc. All rights rese How Effective Is Your Diversity Program? Ineffective 2% Somewhat ineffective Undecided 13% Very

Effective 8% 8% 1 - 47 Effective 22% Somewhat effective 49% McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 48 Diversity Today (cont.) Size of the workforce U.S. civilian labor force is expected to reach 158 million by 2010

slowing in both the number of people joining the labor force and the rate of labor force growth U.S. traditionally had a surplus of labor number of jobs created expected to exceed the growth of the labor force employers McGraw-Hill likely to outsource some work 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 49 Diversity Today (cont.) Workers of the future until recently, white, American born males dominated the U.S. workforce McGraw-Hill

now, they only account for 15 percent of the net growth 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 50 Women In The Workforce Women make up about 47 percent of the workforce 99 percent of women will work for pay at some point in their lives Overall labor force participation rate of women continues increasing while the participation rate of men declines The long-term increase in the female labor force largely reflects the greater frequency of paid work by mothers Today, 40 percent of multiple job holders are women One of every five married women who works outside the home earns more than her husband McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Minorities And Immigrants 1 - 51 Nonwhites make up about one-third of the growth rate in the workforce Ethnic Americans now comprise nearly 25 percent of the total

population By 2020, most of Californias entry-level workers will be Hispanic English has become the second language for much of the population in California, Texas, and Florida The number of foreign-born U.S. residents is at its highest level in U.S. history (one in ten residents) The younger Americans are, the more likely they are to be persons of color 6.8 million people in the U.S. identify themselves as multiracial McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Percentage Of Minority Managers 1995 1 - 52 10.60% Senior 1992 7.40% 1995

15.10% Middle 1992 11.20% 1995 19.30% Front-line 1992 McGraw-Hill 14.50% 2003 The McGraw-Hill Companies, Inc. All rights rese Vision 1 - 53 Vision a mental image of a possible and desirable future state of the organization having a vision and communicating it to others are essential

components of great leadership the best visions are both: ideal - communicates a standard of excellence and clear choice of positive values unique - communicates and inspires pride in being different from other organizations McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 54 Vision (cont.) Important points about visions a vision is necessary for effective leadership a person or team can develop a vision for any job many people, including managers who do not develop into strong leaders, do not develop a clear vision Visions can be inappropriate may

reflect merely the leaders personal needs may ignore stakeholders needs the vision must change when circumstances change McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Leading And Managing 1 - 55 Ability to lead effectively sets excellent managers apart from average ones managers deal with ongoing organizational activities planning and budgeting routines, structuring the organization leadership includes orchestrating organizational change creating a vision for the firm and inspiring people to attain it

management and leadership are both vitally important supervisory leadership - provides guidance, support, and corrective feedback for day-to-day activities of work unit members strategic leadership - gives purpose and meaning to organizations McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Leading And Following Organizations 1 - 56 succeed or fail because of how well followers follow effective followers: are capable of independent thinking are actively committed to organizational goals are enthusiastic about ideas and purposes beyond their own self interest master skills that are useful to the organization hold performance standards that are higher than required

McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 57 Power And Leadership Power ability Sources to influence other people of power legitimate power - leader has organizational authority employees are obligated to comply with legitimate orders reward power - leader has control over valued rewards coercive power - leader has control over punishments referent power - leader has personal characteristics that appeal

to others and make them desirous of the leaders approval expert power - leader has knowledge that others feel will be of benefit to them McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 58 Sources Of Power Authority Control over rewards Expertise Power Appealing personal characteristics McGraw-Hill Control over punishments 2003 The McGraw-Hill Companies, Inc. All rights rese Traditional Approaches To

Understanding Leadership Leader 1 - 59 traits trait approach - focussed on individual leaders to determine the personal characteristics that great leaders share characteristics that distinguish effective leaders drive - characteristics that reflect a high level of effort leadership motivation - they want to lead integrity - actions correspond to words self-confidence - expectation that one is able to overcome obstacles and make good decisions in the face of uncertainty knowledge of the business - ability to interpret information ability to perceive the needs of others and to adjust ones behavior accordingly McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Traditional Approaches To Understanding Leadership (cont.) Leader

1 - 60 behaviors behavioral approach - sought to identify what behaviors good leaders exhibit task performance - leaders efforts to ensure that the work unit reaches its goals focus on work speed, quality and quantity of output, and rules group maintenance - actions taken to ensure satisfaction develop and maintain harmonious work relationships leader-member exchange theory - focuses on the leaders behavior toward individuals McGraw-Hill focus is primarily on group maintenance behaviors potential for cross-cultural differences

2003 The McGraw-Hill Companies, Inc. All rights rese Traditional Approaches To Understanding Leadership (cont.) Leader 1 - 61 behaviors (cont.) participation in decision making - leader behaviors that managers perform in involving their employees in making decisions autocratic leadership - makes decisions and then announces them to the group democratic leadership - solicits input from others McGraw-Hill uses consensus or majority vote to make the final choice 2003 The McGraw-Hill Companies, Inc. All rights rese Traditional Approaches To Understanding Leadership (cont.)

Leader behaviors (cont.) effects of leader behavior decision styles McGraw-Hill 1 - 62 democratic approach resulted in the most positive attitudes autocratic approach resulted in somewhat higher performance laissez-faire - leadership philosophy characterized by an absence of managerial decision making characteristics of the situation, leader, and the follower determine the appropriate decision-making style 2003 The McGraw-Hill Companies, Inc. All rights rese Behaviors That Companies Want

Employees To Exhibit 1 - 63 Join the organization Exhibit good citizenship Achieve high output McGraw-Hill Companies must motivate workers to: Remain in the organization Come to work regularly 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 64 Setting Goals

Goal setting theory people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end Goals that motivate goals should be acceptable to employees goals should be challenging but attainable goals should be specific, quantifiable, and measurable Limitations of goal setting individualized goals create competition and reduce cooperation single productivity goals interfere with other dimensions of performance McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese

The Consequences Of Behavior 1 - 65 Positive reinforcement or negative reinforcement Same behavior likely to be repeated Punishment or extinction Same behavior less likely to be repeated Behavior McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Understanding Peoples Needs Content

1 - 66 theories indicate the kinds of needs that people want to satisfy the extent to which and the ways in which a persons needs are met or not met affect her/his behavior on the job Maslows human need hierarchy needs are organized into five major types physiological - food, water, sex, and shelter safety or security - protection against threat and deprivation social - friendship, affection, belonging, and love ego - independence, achievement, freedom, recognition, and self-esteem self-actualization - realizing ones potential McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Understanding Peoples Needs (cont.) Maslows

1 - 67 need hierarchy (cont.) postulates that people satisfy these needs one at a time, from bottom to top people motivated to satisfy lower needs before they try to satisfy higher needs once satisfied, a need is no longer a powerful motivator not altogether accurate theory of human motivation nonetheless, made three major contributions identified important need categories helped to think in terms of lower- and higher-level needs increased salience of personal growth and self-actualization McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Understanding Peoples Needs (cont.) Alderfers 1 - 68

ERG theory postulates that people have three basic need sets Existence needs - material and physiological desires Relatedness needs - involve relationships with other people satisfied by the process of mutually sharing thoughts and feelings Growth needs - motivate people to productivity or creativity satisfied by fully utilizing personal capacities and developing new capacities postulates that several different needs can be operating at once has greater scientific support than Maslows hierarchy McGraw-Hill

both theories remind managers of the types of reinforcers or rewards that can be used to motivate people 2003 The McGraw-Hill Companies, Inc. All rights rese Comparison Of Maslows Need Hierarchy And ERG Theory S actu elfaliza tion 1 - 69 th Grow Ego Soc ia Safe t Phy sio Mas lo McGraw-Hill

w logi c al l s edne t a l e R s y ence t s i x E rfer e

d l A 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 70 The Contributions Of Teams Building block for organization structure Force for innovation Effects on organizations Force for change Force for speed McGraw-Hill Force for productivity Force for

quality Force for cost reduction 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 71 Benefits Of Groups Benefits derived by organizations groups have greater total resources than individuals do groups have a greater diversity of resources groups can aid decision making Benefits derived by members a group is a useful learning mechanism a group can satisfy important personal needs group members can provide one another with feedback identify opportunities for growth and development train, coach, and mentor

McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese The New Team Environment 1 - 72 Definitions working group - collection of people who work in the same area or have been drawn together to undertake a task do not necessarily come together as a unit and achieve significant performance improvements team - small number of people with complementary skills who are committed to a common purpose, common performance goals, and a common approach for which they hold themselves mutually accountable real teams are more fully integrated into the organizational structure authority of teams is increasing

McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese The New Team Environment Traditional environment Managers determine and plan the work Jobs are narrowly defined Cross-training is viewed as inefficient Most information is management property Training for nonmanagers focuses on technical skills Risk taking is discouraged and punished People work alone Rewards based on individual performance Managers determine best methods McGraw-Hill 1 - 73 Team environment Managers and teams jointly determine and plan the work Jobs require broad skills and knowledge

Cross-training is the norm Most information is freely shared Continuous learning requires training for all Encourage and support measured risk taking People work together Rewards based on contributions to the team and individual performance Everyone works to improve methods and processes 2003 The McGraw-Hill Companies, Inc. All rights rese Improving Communication Skills Improving 1 - 74 sender skills presentation and persuasion skills redundancy - state your viewpoint in a variety of ways powerful messages are simple and informative writing

skills - require clear, logical thinking strive for clarity, organization, readability, and brevity first draft rarely is as good as it could be be critical of your own writing language - word choice can enhance or interfere with communications consider the receivers background and adjust your language learn something about foreign language for overseas business McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Improving Communication Skills (cont.) Nonverbal 1 - 75 skills signals

other than those that are spoken or written can support or undermine the stated message nonverbal cues may make a greater impact than other signals can send a positive message with nonverbal signals by: using time appropriately arranging the office to foster open communication remembering your body language facial expression and tone of voice Nonverbal need McGraw-Hill signals in different countries to correctly interpret the nonverbal signals of others 2003 The McGraw-Hill Companies, Inc. All rights rese Improving Communication Skills (cont.) Improving 1 - 76 receiver skills

listening - good listening is difficult and not nearly as common as needed reflection - process by which a person states what s/he believes the other person is saying listening begins with personal contact good listening leads to development of trust listening more important for innovation than for routine work reading - reading mistakes are common and costly read memos promptly and carefully note important points for later referral read materials outside of your immediate concerns McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Ten Keys To Effective Listening 1. 2. 3.

4. 5. 6. 7. 8. 9. 10. McGraw-Hill 1 - 77 Find an area of interest Judge content, not delivery Hold your fire Listen for ideas Be flexible Resist distraction Exercise your mind Keep your mind open Capitalize on thought speed Work at listening 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 78 Managing Change Organizational change is managed effectively when:

the organization is moved from its current state to a planned future state the change works as planned the transition is accomplished without excessive costs to the organization or to individual organizational members People are the key to successful change people must take an interest and active role in helping the organization as a whole permanent rekindling of individual creativity and responsibility should be a consequence of change McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Managing Change (cont.) Motivating people 1 - 79 people to change

must be motivated to change people often resist change general reasons for resistance - arise regardless of the content of the change inertia - people dont want to disturb the status quo timing - managers should introduce change when people are receptive surprise - resistance is likely when change is sudden, unexpected, or extreme peer pressure - work teams may band together in opposition to change McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Managing Change (cont.) Motivating 1 - 80 people to change (cont.) change-specific

reasons for resistance - arise from the specific nature of a proposed change self-interest - fear that something of value will be lost misunderstanding - people may resist because they dont fully understand the purpose of the change different assessments - employees receive different - and usually less information than management receives management tactics - many fail to commit employees to change McGraw-Hill such discrepancies in knowledge cause people to develop different assessments of proposed changes force the change on employees do not provide the necessary resources, knowledge, or leadership 2003 The McGraw-Hill Companies, Inc. All rights rese 1 - 81 Reasons For Resistance To Change General Reasons For Resistance

Inertia Timing Surprise Peer pressure Resistance to Change Self-Interest Misunderstanding Different assessments Management tactics Change-specific Reasons for Resistance McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese Implementing Change Unfreezing (breaking from

the old ways of doing things) McGraw-Hill Moving (instituting the changes) 1 - 82 Refreezing (reinforcing and supporting the new ways) 2003 The McGraw-Hill Companies, Inc. All rights rese Characteristics Of Controls System control Bureaucratic control 1 - 83 Features and requirements Uses formal rules, standards, hierarchy, legitimate authority. Works best where tasks are certain and workers are independent. Market control

Uses prices, competition, profit centers, exchange relationships. Works best where tangible output can be identified and market can be established between parties. Clan control Involves culture, shared values, beliefs, expectations, and trust. Works best where there is no one best way to do a job and where employees are empowered to make decisions. McGraw-Hill 2003 The McGraw-Hill Companies, Inc. All rights rese

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