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 |PowerPoint 7-1 |

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

| |(Refers to text page 208) |

| | |

| |PowerPoint 7-2 |

| |Learning Objectives |

| |(Refers to text page 209) |

| II. Management and Leadership | |

|Learning objective 1 |TEXT REFERENCE |

|Understand the difference between management and leadership. (Text pages 210-211) |Real World Business Apps |

|A. Differences Between Management and Leadership |(Box in text on page 211) |

|1. Leadership is the process of offering guidance or direction. |Sam Anderson is the owner of a |

|2. Management is the act, manner, or practice of managing, handling, supervision, or control. |sporting goods store called Casey’s |

|3. A leader provides guidance, while a manager oversees and manages the activities that must be done |Sports. The store’s sales have been |

|to reach goals. |declining, and Sam is concerned about |

|B. A leader must be able to motivate others to want to do the things that need to be done. |the long-term survival of the |

|1. A leader does not need to have organizational power. |business. He has concluded that the |

|2. Anyone can be a leader if they are willing to provide guidance and motivate others. |decline is related to employee |

|C. Not every manager is a leader, and not every leader is a manager. |motivation. Sam needs to figure out |

|1. It is hard to be an effective manager without also being a leader. |what he can do to motivate his |

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

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

|SELF Check Questions (Text page 212) |PowerPoint 7-3 |

|What are some differences between managers and leaders? Similarities? |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 text on |

| |page 211) |

| | |

| |Lecture link 7-1 |

| |Best Business Leaders of the 20th |

| |Century |

| |These are the top executives of the |

| |20th century, as chosen through a |

| |survey of executives. (See complete |

| |lecture link on page 7.34 of this |

| |manual.) |

| | |

| | |

| | |

| |TEXT FIGURE 7.2 |

| |Typical Characteristics Associated |

| |with Management and Leadership (Box in|

| |text on page 212) |

| III. Leadership Qualities | |

|Learning objective 2 |PowerPoint 7-4 |

|DESCRIBE THE QUALITIES OF A LEADER AND THE DIFFERING LEADERSHIP STYLES. (TEXT PAGES 212-217) |Leadership Qualities |

|A. What Makes Leaders Different From Others? |(Refers to text pages 212-217) |

|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. |bonus internet |

|B. Integrity, Ethics, and Self-Knowledge |exercise 7-1 |

|1. Effective leaders tend to be highly ethical, trustworthy, and reliable. |Are Leaders Born or Can They Be |

|2. Self-knowledge |Taught? |

|a. These leaders also know their strengths and limitations and what their principles, beliefs, and |This Internet exercise explores the |

|values are. |research and rationale behind this |

|b. Leaders who identify their limitations can surround themselves with people who bring complementary|question. (See complete exercise on |

|skills. |page 7.39 of this manual.) |

|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 employees’ outdoor interests through flextime. |TEXT REFERENCE |

|C. Having Vision, Understanding the Business, and Understanding the Tasks |Study Skills: Can You Read This? |

|1. Great leaders have a deep understanding of the business. |(Box in text on page 213) |

|2. Successful leaders can visualize the big picture and see the organization 5-10 years in the |An additional exercise and discussion |

|future. |is available on page 7.33 of this |

|3. The text uses the example of Ken Hendricks, founder of ABC Supply. |manual. |

|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 entrepreneurs, believe they have the answers, a formula for | |

|disaster. |critical thinking |

|3. An effective leader listens to others and is willing to accept constructive criticism and act on |exercise 7-1 |

|it. |Traits of Leaders |

|a. The text uses the example of Christine White, owner of Boudoir Baskets. |What traits are common to great |

|b. A sales rep brought up a complaint about a new product, but White ignored it. |leaders? (See complete exercise on |

|c. Soon other complaints came in, and White had to pull the product. |page 7.42 of this manual.) |

|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 changes. | |

|3. The text uses the example of Julie Rodriguez, owner of Epic Divers & Marines, who faced massive | |

|changes after Hurricane Katrina. |TEXT REFERENCE |

|a. Her business suffered severe damage due to the storm. |Career Development: Communication and |

|b. She kept her employees on the payroll and dealt with the changes. |Leadership |

|c. Rodriquez found that a participative management worked best. |(Box in text on page 215) |

|4. However, change also brings tremendous challenges. |The most important leadership skill is|

|5. Embracing change and working through it brings out the best in a company’s leader and employees. |good communication. What are some of |

|F. Being Decisive and Committed |the things that can cause poor |

|1. Decision making is choosing among two or more alternatives. |communication? An additional exercise |

|2. Great leaders seek opinions and feedback from others but, in the end, make the decision and are |and discussion is available on page |

|committed to it. |7.25 of this manual. |

|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 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. | |

|SELF Check Questions (Text page 218) | |

|What are the different characteristics between managers and leaders? | |

|What are seven qualities of a good leader? Which do you have and which do you plan to work on? | |

| | |

| | |

| |TEXT FIGURE 7.3 |

| |Undesirable Leader Qualities (Box in |

| |text on page 218) |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |lecture link 7-2 |

| |Three Types of Great Leaders |

| |According to one business writer, |

| |there are three basic types of |

| |brilliant bosses. (See complete |

| |lecture link on page 7.34 of this |

| |manual.) |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |critical thinking |

| |exercise 7-2 |

| |Crisis Management |

| |This exercise explores management |

| |reaction to rapid, unexpected change. |

| |(See complete exercise on page 7.43 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 |

| |7.40 of this manual.) |

| | |

| | |

| |Bonus Case 7-1 |

| |When Failure Is the Norm |

| |How do you motivate employees when 96%|

| |of their projects fail? (See complete |

| |case, discussion questions, and |

| |suggested answers on page 7.50 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 7.41 of this|

| |manual.) |

| | |

| | |

| |lecture link 7-3 |

| |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 7.35 of this manual.) |

| | |

| | |

| |critical thinking |

| |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 7.44 of|

| |this manual.) |

| IV. Leadership Styles |PowerPoint 7-5 |

|A. Formal and Informal Leadership |Leadership Styles |

|1. In formal leadership, someone has been given authority to make decisions or lead a group. |(Refers to text pages 218-221) |

|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. |TEXT REFERENCE |

|4. According to Shannon Kalvar, two main types of leaders exist in groups: |Study Skills: Being a Leader Now |

|a. A task leader is a leader who plans activities and helps keep the group on task. |(Box in text on page 219) |

|b. A social leader is a leader who ensures everyone in the group is getting along and agrees with the|Here are some ways students can |

|direction the group is going. |practice leadership skills while still|

|c. The same person may play both roles, or there may be two leaders. |in school. An additional exercise and |

|5. Task and social leaders in a group do not need to have specific titles. |discussion is available on page 7.33 |

|B. Transformational Leadership |of this chapter. |

|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. | |

|3. Steps in developing a vision: |TEXT REFERENCE |

|a. The vision comes either from the leader or from other employees or managers. |Thinking Critically: |

|b. The leader articulates the vision and gets collective buy-in. |Leadership Self-Test |

|c. The transformational leader works with employees to develop strategies to make the vision a |(Box in text on page 220) |

|reality. | |

|d. The leader “leads the charge” in executing strategies. | |

|4. Yvon Chouinard of Patagonia is an example of a transformational leader. |lecture link 7-4 |

|C. Transactional Leadership |McClelland’s Acquired Needs Theory |

|1. A transactional leader is a leader who gets people to do things by providing structure and |Psychologist David McClelland proposed|

|guidelines based on the exchange process. |that humans acquire different needs |

|2. This leadership style is based on the exchange process. |over time because of life experiences.|

|3. Most managers tend to follow the transactional leadership style. |He classified these needs into three |

|SELF Check Questions (Text page 222) |categories. (See complete lecture link|

|What are the differences between formal and informal leaders? |on page 7.36 of this manual.) |

|What are the main differences between transformational and transactional leaders? Which aspects of | |

|these leadership characteristics do you plan to work on? Explain. | |

| |TEXT FIGURE 7.4 |

| |Transactional Versus Transformational |

| |Leaders (Box in text on page 221) |

| | |

| | |

| | |

| | |

| |lecture link 7-5 |

| |The L Factor |

| |According to one author, likeability, |

| |not intimidation, is the real key to |

| |conquering the workplace. (See |

| |complete lecture link on page 7.37 of |

| |this manual.) |

| | |

| | |

| V. Importance of Motivation | |

|Learning objective 3 | |

|UNDERSTAND THE IMPORTANCE OF MOTIVATION. (TEXT PAGES 222-229) | |

|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 |PowerPoint 7-6 |

|goals. |Importance of Motivation |

|3. An EXTRINSIC REWARD is a reward given to an employee, such as a promotion or pay raise. |(Refers to text pages 222-224) |

|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 motivation until Fredrick Taylor’s work the early 20th 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 |TEXT FIGURE 7.5 |

|time needed to do each task. |Extrinsic vs. Intrinsic Rewards (Box |

|2. As researchers determined the most efficient way of doing tasks, efficiency became the standard |in text on page 222) |

|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 to be properly programmed. | |

|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 principles to increase efficiency. | |

|b. UPS uses scientific management to increase efficiency and productivity. | |

|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 | |

|1. The Hawthorne Studies were conducted by Elton Mayo at the Western Electric Company’s Hawthorne |TEXT FIGURE 7.6 |

|plant in Cicero, Illinois. |Taylor’s Scientific Management |

|a. Begun in 1927, the studies ended six years later. |Principles (Box in text on page 223) |

|b. The purpose of the studies was to determine the effect of environmental variables, such as | |

|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 |TEXT REFERENCE |

|respected. |Career Development: |

|c. The workers enjoyed the special atmosphere and additional pay for the increased productivity. |Understanding That Results Matter |

|4. The term HAWTHORNE EFFECT refers to the tendency of people to behave differently when they know |(Box in text on page 225) |

|they are being studied. |An additional exercise and discussion |

|a. The results of this study encouraged researchers to study human motivation and the managerial |is available on page 7.25 of this |

|styles that lead to more productivity. |manual. |

|b. Mayo’s findings led to new assumptions about employees. | |

|c. Money was found to be a 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 self-respect 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 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 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. |PowerPoint 7-7 |

|c. The best way to motivate employees is to: |Importance of Motivation |

|i. make the job interesting; |(Refers to text pages 224-225) |

|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 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. | |

|SELF Check Questions (Text page 229) | |

|Define intrinsic and extrinsic rewards. Provide examples of each. | |

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

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

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |PowerPoint 7-8 |

| |Importance of Motivation |

| |(Refers to text pages 225-226) |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |TEXT FIGURE 7.7 |

| |Maslow’s Hierarchy of Needs (Box in |

| |text on page 226) |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |critical thinking |

| |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 7.45 of this|

| |manual.) |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |lecture link 7-6 |

| |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 7.37 of this manual.) |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |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 7.52 of this|

| |manual.) |

| | |

| | |

| | |

| |Bonus Case 7-3 |

| |Managing Volunteers |

| |How does motivating volunteers differ |

| |from managing employees? (See complete|

| |case, discussion questions, and |

| |suggested answers on page 7.54 of this|

| |manual.) |

| | |

| | |

| | |

| | |

| |critical thinking |

| |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 7.47 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 7.56 of |

| |this manual.) |

| | |

| VI. Employee Improvement Theories | |

|Learning objective 4 | |

|DESCRIBE THE KEY PRINCIPLES OF EMPLOYEE IMPROVEMENT THEORIES. (TEXT PAGES 230-232) | |

|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: |PowerPoint 7-10 |

|i. realistic; |Employee Improvement Theories (Refers |

|ii. accepted; |to text pages 230-232) |

|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 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 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. | |

|SELF Check Questions (Text page 232) | |

|Define goal setting theory as it relates to employee performance. | |

|Explain the steps in the cycle of management by objectives. | |

|Compare and contrast reinforcement and equity theory. | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| | |

| |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) |

| | |

| | |

| | |

| | |

| | |

| | |

| |critical thinking |

| |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 7.49 of this manual.)|

| | |

| VII. Employee Empowerment |Bonus Case 7-5 |

|Learning objective 5 |Turning Tyco Around |

|EXPLAIN HOW EMPLOYEES CAN BE EMPOWERED IN ORGANIZATIONS. (TEXT PAGES 232) |After Tyco’s former CEO Dennis |

|A. Empowerment is allowing employees the ability and trust to make decisions. |Kozlowski’s conviction for looting |

|1. If an employee makes a mistake, it should be accepted and corrected, but not punished. |$600 million from the company, Ed |

|2. Empowerment makes employees feel a sense of ownership within the company. |Breen was brought in to rescue the |

|B. Motivation begins with acknowledging a job well done. |troubled company. (See complete case, |

|SELF Check Questions (Text page 233) |discussion questions, and suggested |

|Define empowerment. Discuss a job you had in which you were not empowered, and a job you had in which|answers on page 7.58 of this manual.) |

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

| |PowerPoint 7-11 |

| |Employee Empowerment |

| |(Refers to text page 232) |

| | |

| |TEXT REFERENCE |

| |Career Spotlight: So, You Want to Be …|

| |a Leader? |

| |(Box in text on page 233) |

| | |

| |TEXT REFERENCE |

| |Real World Business Apps |

| |(Box in text on page 234) 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. |

-----------------------

►

►

►

►

►

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download