LECTURE OUTLINE AND LECTURE NOTES

LECTURE OUTLINE AND LECTURE NOTES

CHAPTER OPENING PROFILE

Nucor Corporation and Motivation (Text pages 208-209)

The opening profile focuses on Nucor Corporation. The company has nurtured one of the most engaged workforces in existence. Nucor has a flattened hierarchy and emphasizes pushing power to the front line. The company’s mission statement clearly defines the focus on employees.

Management talk to employees, listens to them, take risks on their ideas, and accepts the occasional failure. Money can be a motivating factor, and Nucor uses a bonus program tied to the production of defect-free steel by an employee’s entire shift.

LECTURE OUTLINE LECTURE NOTES

I. INTRODUCTION TO LEADERSHIP

AND MOTIVATION

Leadership and employee motivation are key factors in an organization’s success.

POWERPOINT 7-1

Chapter Title

(Refers to text page 208)

POWERPOINT 7-2

Learning Objectives


II. MANAGEMENT AND LEADERSHIP

►

LEARNING OBJECTIVE 1

Understand the difference between management and leadership. (Text pages 210-211)

A. Differences Between Management and

Leadership

1. Leadership is the process of offering guidance or direction.

2. Management is the act, manner, or practice of managing, handling, supervision, or control.

3. A leader provides guidance, while a manager oversees and manages the activities that must be done to reach goals.

B. A leader must be able to motivate others to want to do the things that need to be done.

1. A leader does not need to have organizational power.

TEXT REFERENCE

Real World Business Apps

(Box in text on page 211)

Sam Anderson is the owner of a sporting goods store called Casey’s Sports. The store’s sales have been declining, and Sam is concerned about the longterm survival of the business.

He has concluded that the decline is related to employee motivation. Sam needs to figure out what he can do to motivate his employees.

POWERPOINT 7-3

Management and

Leadership (Refers to text

pages 210-211)

TEXT FIGURE 7.1

Not Every Manager Is a

Leader—Separate and

Overlapping Roles (Box in


2. Anyone can be a leader if they are willing to provide guidance and motivate others.

C. Not every manager is a leader, and not every leader is a manager.

1. It is hard to be an effective manager without also being a leader.

2. But there is no reason that a leader must be a manager.

3. Leadership is a quality found at any level of the organization.

SELF CHECK QUESTIONS (Text page 212)

1.

What are some differences between managers and leaders? Similarities? text on page 211)

LECTURE LINK 7-1

Best Business Leaders of the 20 th Century

These are the top executives of the 20 th century, as chosen through a survey of executives. (See complete lecture link on page

7.

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of this manual.)

TEXT FIGURE 7.2

Typical Characteristics

Associated with

Management and

Leadership (Box in text on page 212)

III. LEADERSHIP QUALITIES

►


Describe the qualities of a leader and the differing leadership styles.

(Text pages 212-217)

A. What Makes Leaders Different From

Others?

1. It is hard to identify one set of distinct qualities that all leaders have.

2. However, researchers have identified seven sets of qualities that help leaders succeed.

B. Integrity, Ethics, and Self-Knowledge

1. Effective leaders tend to be highly ethical, trustworthy, and reliable.

2. Self-knowledge a. These leaders also know their strengths and limitations and what their principles, beliefs, and values

POWERPOINT 7-4

Leadership Qualities

(Refers to text pages 212-

217)

BONUS INTERNET

EXERCISE 7-1

Are Leaders Born or Can

They Be Taught?

This Internet exercise explores the research and rationale behind this question. (See complete exercise on page 7.

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Закладка не определена.

of this manual.)

TEXT REFERENCE

Study Skills: Can You

Read This?


An additional exercise and

LECTURE OUTLINE LECTURE NOTES are. b. Leaders who identify their limitations can surround themselves with people who bring complementary skills.

3. The text features the example of Yvon

Chouinard, founder of outdoor company Patagonia.

a. Patagonia strives to be a “green” business emphasizing environmental sustainability through less waste and recyclable material. b. Chouinard also supports his em ployees’ outdoor interests through flextime.

C. Having Vision, Understanding the

Business, and Understanding the Tasks

1. Great leaders have a deep understanding of the business.

2. Successful leaders can visualize the big picture and see the organization 5-

10 years in the future.

3. The text uses the example of Ken

Hendricks, founder of ABC Supply.

4. Ken and Diane Hendricks believe in offering quality products and a great place for their employees to work.

D. Listening Willingly, Accepting

Constructive Criticism, and

Communicating

1. Great leaders are approachable, accessible, and willing to listen.

2. Often managers, and especially discussion is available on page 7.


of this manual.

CRITICAL THINKING

EXERCISE 7-1

Traits of Leaders

What traits are common to great leaders? (See complete exercise on page 7.

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of this manual.)

TEXT REFERENCE

Career Development:

Communication and

Leadership


The most important leadership skill is good communication. What are some of the things that can cause poor communication?

An additional exercise and discussion is available on page 7.


of this manual.

LECTURE OUTLINE LECTURE NOTES entrepreneurs, believe they have the answers, a formula for disaster.

3. An effective leader listens to others and is willing to accept constructive criticism and act on it. a. The text uses the example of

Christine White, owner of Boudoir

Baskets.

b. A sales rep brought up a complaint about a new product, but White ignored it. c. Soon other complaints came in, and White had to pull the product.

4. Leaders must recognize, accept, admit, and act upon mistakes.

5. Effective leaders are also great communicators, articulating the vision in a simple, yet inspiring way.

6. A 2007 BusinessWeek article lists the most desirable traits that top organizations look for in new hires: a. college degrees; b. leadership skills; c. communication skills.

E. Openness to Change

1. Many managers do not like change.

2. However, leaders must be willing to stay open to change. a. Great leaders figure out a way to change, innovate, and adapt. b. Instead of making drastic changes, leaders can make continuous, small, incremental

TEXT FIGURE 7.3

Undesirable Leader

Qualities (Box in text on page 218)

LECTURE OUTLINE LECTURE NOTES changes.

3. The text uses the example of Julie

Rodriguez, owner of Epic Divers &

Marines, who faced massive changes after Hurricane Katrina.

a. Her business suffered severe damage due to the storm. b. She kept her employees on the payroll and dealt with the changes. c. Rodriquez found that a participative management worked best.

4. However, change also brings tremendous challenges.

5. Embracing change and working through it brings out the best in a company’s leader and employees.

F. Being Decisive and Committed

1. Decision making is choosing among two or more alternatives.

2. Great leaders seek opinions and feedback from others but, in the end, make the decision and are committed to it.

3. Many managers fail to make decisions or procrastinate.

4. Amy Rees Lewis, CEO of

MediConnect Global, is an example of a decisive leader who is committed to the success of her company.

G. Positive Attitude and Enthusiasm

1. Attitude is contagious.

2. Effective leaders exude positive


Three Types of Great

Leaders

According to one business writer, there are three basic types of brilliant bosses. (See complete lecture link on page

7.


of this manual.)


EXERCISE 7-2

Crisis Management

This exercise explores management reaction to rapid, unexpected change.

(See complete exercise on page 7.


of this manual.)

BONUS INTERNET

EXERCISE 7-2

The Most Powerful Women in Business

Each year Fortune magazine lists the most powerful women in business. This exercise directs the students to research the listing for the current year. (See complete exercise on page 7.

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of this manual.)

BONUS CASE 7-1

When Failure Is the Norm

How do you motivate employees when 96% of

LECTURE OUTLINE LECTURE NOTES attitude and enthusiasm.

H. Take Care of People and Inspire Them

1. Effective leaders find ways to take care of their employees and inspire them to achieve uncommon goals.

2. Example: Google, named Fortune ’s

2007 “Best Company to Work For”

3. The text also uses the example of

Graham Weston, co-founder of

Rackspace, who uses creativity to inspire employees to perform better on the job.

I. Great leaders make great things happen through:

1. communicating their vision;

2. possessing a willingness to listen and change;

3. exuding ethical actions, a positive attitude, and enthusiasm;

4. committing to always take care of their people.


1.

What are the different characteristics between managers and leaders?

2.

What are seven qualities of a good leader? Which do you have and which do you plan to work on? their projects fail? (See complete case, discussion questions, and suggested answers on page 7.

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of this manual.)

BONUS INTERNET

EXERCISE 7-3

Which Are the Best

Companies to Work For?

This exercise asks students to use the Internet to research which companies are rated best places to work. (See complete exercise on page

7.


of this manual.)


Smucker’s: Jams and

Thank Yous

A key motivation philosophy at J. M. Smucker is to say

“thank you” for a job well done. (See complete lecture link on page 7.

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of this manual.)


EXERCISE 7-3

Managing a Family

Business

Management and motivation can be difficult in family firms. This exercise presents such a situation. (See complete exercise on page

7.


of this manual.)

IV. LEADERSHIP STYLES POWERPOINT 7-5

Leadership Styles


A. Formal and Informal Leadership

1. In FORMAL LEADERSHIP , someone has been given authority to make decisions or lead a group.

2. In informal leadership someone does not have “official” authority, but is recognized as a leader by the group.

3. Informal leadership often occurs in a team or group without a designated leader.

4. According to Shannon Kalvar, two main types of leaders exist in groups: a. A TASK LEADER is a leader who plans activities and helps keep the group on task. b. A SOCIAL LEADER is a leader who ensures everyone in the group is getting along and agrees with the direction the group is going. c. The same person may play both roles, or there may be two leaders.

5. Task and social leaders in a group do not need to have specific titles.

B. Transformational Leadership

1. A TRANSFORMATIONAL LEADER is a leader who can transform the ideas of employees through inspiration, charisma, and a shared vision.

2. He or she has lots of energy and charisma and is able to inspire employees to achieve the organizational vision.


221)

TEXT REFERENCE

Study Skills: Being a

Leader Now


Here are some ways students can practice leadership skills while still in school. An additional exercise and discussion is available on page 7.


of this chapter.

TEXT REFERENCE

Thinking Critically:

Leadership Self-Test



McClelland’s Acquired

Needs Theory

Psychologist David

McClelland proposed that humans acquire different needs over time because of life experiences. He classified these needs into three categories. (See complete lecture link on page

7.


of this manual.)

TEXT FIGURE 7.4

Transactional Versus

Transformational Leaders



3. Steps in developing a vision: a. The vision comes either from the leader or from other employees or managers. b. The leader articulates the vision and gets collective buy-in. c. The transformational leader works with employees to develop strategies to make the vision a reality. d. The leader “leads the charge” in executing strategies.

4. Yvon Chouinard of Patagonia is an example of a transformational leader.

C. Transactional Leadership

1. A transactional leader is a leader who gets people to do things by providing structure and guidelines based on the exchange process.

2. This leadership style is based on the exchange process.

3. Most managers tend to follow the transactional leadership style.


The L Factor

According to one author, likeability, not intimidation, is the real key to conquering the workplace. (See complete lecture link on page

7.


of this manual.)


1.

What are the differences between formal and informal leaders?

2.

What are the main differences between transformational and transactional leaders? Which aspects of these leadership characteristics do you plan to work on?

Explain.

V. IMPORTANCE OF MOTIVATION

► LEARNING OBJECTIVE 3

Understand the importance of motivation.


POWERPOINT 7-6


A. MOTIVATION is the drive to satisfy a need.

1. People gain motivation in many ways.

2. An INTRINSIC REWARD is the personal satisfaction you feel when you perform well and complete goals.

3. An EXTRINSIC REWARD is a reward given to an employee, such as a promotion or pay raise.

4. Although motivation , the drive to satisfy a need, ultimately comes from within an individual, there are ways to stimulate people to do a good job.

B. Taylor ’s Scientific Management

1. Very little attention was paid to motiva tion until Fredrick Taylor’s work the early 20 th century. a. His book The Principles of

Scientific Management was published in 1911. b. Taylor used TIME AND MOTION

STUDIES , studies of the tasks performed to complete the job and the time needed to do each task.

2. As researchers determined the most efficient way of doing tasks, efficiency became the standard for setting goals.

3. SCIENTIFIC MANAGEMENT is studying the most efficient ways of doing things and then teaching people those techniques.

4. Taylor’s philosophy has shortcomings. a. Scientific management viewed people as machines that needed

Importance of Motivation


224)

TEXT FIGURE 7.5

Extrinsic vs. Intrinsic

Rewards (Box in text on page 222)

TEXT FIGURE 7.6

Taylor’s Scientific

Management Principles


TEXT REFERENCE

Career Development:

Understanding That

Results Matter


An additional exercise and discussion is available on page 7.


of this manual.

LECTURE OUTLINE LECTURE NOTES b. There was little concern for the psychological or human aspects of work.

5. Some of Taylor’s ideas are still being used. a. Many hospitals and restaurants use scientific management b. UPS uses scientific management to increase efficiency and

6. Frank and Lillian Gilbreth used

Frederick Taylor ’s ideas in a study of brick laying. a. The PRINCIPLE OF MOTION

ECONOMY theory, developed by

Frank and Lillian Gilbreth, states that every job can be broken down into a series of elementary motions. b. They analyzed every motion

( “therblig”) to make it more efficient.

C. Mayo ’s Hawthorne Studies to be properly programmed. principles to increase efficiency. productivity.

1. The Hawthorne Studies were conducted by Elton Mayo at the

Western Electric Company ’s

Hawthorne plant in Cicero, Illinois. a. Begun in 1927, the studies ended six years later. b. The purpose of the studies was to determine the effect of environmental variables, such as

POWERPOINT 7-7



225)

LECTURE OUTLINE LECTURE NOTES lighting. c. The productivity of the experimental group increased compared to the control group — whether the lighting was bright or dim.

2. Productivity increased during each of the 13 experimental periods.

3. When conditions were returned to their original status (before the studies were started), productivity continued to go up . Why? a. The workers in the test room thought of themselves as a social group —they felt special and worked hard to stay in the group. b. The workers were involved in the planning of the experiments —they felt that their ideas were respected. c. The workers enjoyed the special atmosphere and additional pay for the increased productivity.

4. The term HAWTHORNE EFFECT refers to the tendency of people to behave differently when they know they are being studied. a. The results of this study encouraged researchers to study human motivation and the managerial styles that lead to more productivity. b. Mayo ’s findings led to new assumptions about employees. c. Money was found to be a

POWERPOINT 7-8



226)

TEXT FIGURE 7.7

Maslow’s Hierarchy of

LECTURE OUTLINE LECTURE NOTES relatively ineffective motivator.

D. Maslow ’s Hierarchy of Needs

1. Psychologist Abraham Maslow believed that motivation arises from need . a. One is motivated to satisfy unmet needs. b. Satisfied needs no longer motivate. c. Maslow placed needs on a hierarchy of importance.

2.

MASLOW ’S HIERARCHY OF NEEDS is a theory of motivation based on unmet needs, from basic physiological needs to safety, social, esteem, and self-actualization needs. a. Physiological needs : basic survival needs including the need for food, water, and shelter b. Safety needs: the need to feel secure at work and at home c. Social needs: the need to feel loved, accepted, and part of the group d. Esteem needs: the need for recognition and acknowledgment from others, as well as selfrespect and a sense of status or importance e. Self-actualization needs: the need to develop to one ’s fullest potential

3. When one need is satisfied, the person is motivated to do something to

Needs (Box in text on page

226)


EXERCISE 7-4

Testing Maslow’s

Hierarchy of Needs

This exercise asks each student to evaluate his or her needs based on Maslow’s hierarchy of needs. (See complete exercise on page

7.


of this manual.)


Recognition: Making

Heroes

Companies often make the mistake of equating pay with rewards. The reward for outstanding performance should be a special gain for special achievement. (See complete lecture link on page

7.


of this manual.)

LECTURE OUTLINE LECTURE NOTES satisfy a higher-level need. a. A satisfied need is no longer a motivator. b. If lower-level needs are not met, they may reemerge and take attention away from higher-level needs. c. Lower level needs are met and higher level needs dominate in developed countries.

E. Herzberg ’s Two-Factor Theory

1. Frederick Herzberg tried to identify the factors that are most effective in generating enthusiastic work effort.

2. Herzberg surveyed workers to find out how they rank job-related factors. The motivating factors were: a. sense of achievement; b. earned recognition; c. interest in the work itself; d. opportunity for growth; e. opportunity for advancement; f. importance of responsibility; g. peer and group relationships; h. pay; i. supervisor ’s fairness; j. company policies and rules; k. status; l. job security; m. supervisor ’s friendliness; n. working conditions.

3. Herzberg noted that the highest

TEXT FIGURE 7.8

Herzberg’s Motivators and

Hygiene Factors (Box in text on page 228)

POWERPOINT 7-9

Herzberg’s Two-Factor

Theory (Refers to text pages

227-229)

BONUS CASE 7-2

Hot Topic: Motivation is a

Hot Topic (Video Case)

This bonus case ties in with the video available for use with this chapter. Hot Topic stores sell clothing and accessories that appeal to an alternative culture. This case highlights the company’s emphasis on employee empowerment. (See complete case, discussion questions, and suggested answers on page 7.

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of this manual.)

BONUS CASE 7-3

LECTURE OUTLINE LECTURE NOTES ranking factors dealt with job content.

4. The other factors had to do with job environment and were not considered to be motivating.

5. Herzberg ’s conclusions a. In Herzberg ’s theory of motivating factors, MOTIVATORS are job factors that cause employees to be productive and that give them satisfaction. b. HYGIENE FACTORS are job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased. c. The best way to motivate employees is to: i. make the job interesting; ii. help them achieve their objectives; iii. recognize their achievement through advancement and added responsibility.

6. Managers can use these findings in several ways a. Managers can ensure employees have a path for promotion and are challenged by their jobs. b. JOB ROTATION , is a motivation technique that involves moving employees from one job to another. c. JOB ENLARGEMENT is a motivation technique that involves

Managing Volunteers

How does motivating volunteers differ from managing employees? (See complete case, discussion questions, and suggested answers on page 7.

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of this manual.)


EXERCISE 7-5

Motivation Survey

This exercise gives the result of a motivation survey for two supervisors and asks students to interpret the results. (See complete exercise on page 7.

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of this manual.)

BONUS CASE 7-4

Using Compensation to

Motivate

This case presents one manager’s motivation incentive: a quarterly bonus for employees if labor costs are kept below 11% of company sales. (See complete case, discussion questions, and suggested answers on page 7.

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LECTURE OUTLINE LECTURE NOTES combining a series of tasks into one challenging and interesting assignment. d. JOB ENRICHMENT is a motivational strategy that involves making the job more interesting in order to motivate employees.

7. The five characteristics of work that affect motivation and performance are: a. Skill variety , the extent to which a job demands different skills of the person; b. Task identity, the degree to which the job requires doing a task with a visible outcome from beginning to end; c. Task significance , the degree to which the job has a substantial impact on the lives of others in the company; d. Autonomy , the degree of freedom, independence, and discretion in scheduling work and determining procedures; e. Feedback , the amount of direct, clear information received about job performance.

8. Job enrichment is what makes work fun. a. The text uses the example of

Google, ranked as one of the best places to work.

b. Employees enjoy their jobs and are fully engaged in working toward organizational goals. of this manual.)



1.

Define intrinsic and extrinsic rewards.

Provide examples of each.

2.

How did scientific management set the stage for further research on employee motivation?

3.

Describe how Maslow’s hierarchy of needs theory can be used by managers in the workplace.

VI. EMPLOYEE IMPROVEMENT

THEORIES

► LEARNING OBJECTIVE 4

Describe the key principles of employee improvement theories.


A. MBO and Goal Setting Theory

1. GOAL-SETTING THEORY is the idea that setting ambitious but attainable goals can motivate workers and improve performance. a. In effective goal-setting the goals must be: i. realistic; ii. accepted; iii. accompanied by feedback; iv. facilitated by organizational conditions. b. All organization members should have basic agreement about the organization ’s goals and the specific objectives of each unit. c. Peter Drucker developed one system in the 1960s called management by objectives

(MBO.)

2. MANAGEMENT BY OBJECTIVES

(MBO) is a system of goal setting and

POWERPOINT 7-10

Employee Improvement

Theories (Refers to text

pages 230-232)

LECTURE OUTLINE LECTURE NOTES implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.

3. Steps in the MBO process: a. Managers and employees establish mutually agreed upon goals. b. Criteria for assessing work performance are determined. c. Employees develop action plans to achieve their goals. d. Managers provide intermittent feedback. e. At the end of the period, employee performance is measured and compared to established goals. f. Appropriate rewards are tied to goal accomplishment.

B. Reinforcement and Equity Theory

1. REINFORCEMENT THEORY is the idea that positive and negative reinforcement motivate a person to behave in certain ways. a. Individuals act to receive rewards and avoid punishment. b. Positive reinforcements are rewards such as praise, recognition, or a pay raise. c. Negative reinforcement includes reprimands, reduced pay, and layoff or firing. d. Extinction is trying to stop

TEXT FIGURE 7.9

The Cycle of Management by Objectives (Box in text on page 230)

TEXT FIGURE 7.10

Reinforcement Theory (Box in text on page 231)


EXERCISE 7-6

Does Money Motivate?

This exercise involves a debate among small groups as to whether or not money is a motivator. (See complete exercise on page 7.

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of this manual.)

LECTURE OUTLINE LECTURE NOTES undesirable behavior by not responding to it.

2. EQUITY THEORY is the idea that employees try to maintain equity between inputs and outputs compared to people in similar positions. a. When workers do perceive inequity, they will try to reestablish equitable exchanges. b. Equity judgments are based on perceptions , and are therefore subject to errors in perception.


1.

Define goal setting theory as it relates to employee performance.

2.

Explain the steps in the cycle of management by objectives.

3.

Compare and contrast reinforcement and equity theory.

VII. EMPLOYEE EMPOWERMENT

►


Explain how employees can be empowered in organizations. (Text pages 232)

A. Empowerment is allowing employees the ability and trust to make decisions.

1. If an employee makes a mistake, it should be accepted and corrected, but not punished.

2. Empowerment makes employees feel a sense of ownership within the company.

B. Motivation begins with acknowledging a job well done.


1.

Define empowerment . Discuss a job you had in which you were not empowered, and a job you had in which

BONUS CASE 7-5

Turning Tyco Around

After Tyco’s former CEO

Dennis Kozlowski’s conviction for looting $600 million from the company,

Ed Breen was brought in to rescue the troubled company.

(See complete case, discussion questions, and suggested answers on page

7.


of this manual.)

POWERPOINT 7-11

Employee Empowerment


TEXT REFERENCE

Career Spotlight: So, You

Want to Be … a Leader?


LECTURE OUTLINE you were empowered. Was your motivation level different at the two jobs?

LECTURE NOTES

TEXT REFERENCE

Real World Business Apps


Steve Anderson, the small business owner, now recognizes that he needs to work on his leadership style.

He has decided to involve employees in goal setting and employ participative management. He is also using Maslow’s hierarchy of needs in employee motivation plans.

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LECTURE OUTLINE AND LECTURE NOTES

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