Lecture Outline / Chapter 14
Chapter 14
Management, Motivation, and Leadership: Bringing Business to Life
Slide 1
In Part 1, I hope you really picked up on the motivation theories. This is extremely important to know
as a manager. We will continue with Sections 3, 4 and 5.
Slide 2
Effective management depends largely on how well things have been planned out. A good plan
includes one where the organization can keep track of its functions without curbing flexibility and
responsiveness. The plan should be able to respond to changes made both inside and outside the
organization. It includes strategic planning, tactical planning, operational planning and contingency
planning.
Contingency plans are the responsibility of the senior management but they also take inputs from
other management levels.
Slide 3
This slide shows different types of planning, the management level involved in it, its scope, and
examples.
Slide 4
One of the fundamental parts of the planning process is strategic planning because all the other
management decisions are based on this plan.
The mission statement states the reasons for the existence of an organization. It encompasses the
organization’s purpose, values, and core goals providing the framework for all other plans.
It is important for companies to evaluate their competitive position when making a strategic plan.
Many companies use a SWOT analysis which includes strengths, weaknesses, opportunities, and
threats to evaluate where they stand relative to the competition. Strengths and weaknesses arise
due to internal factors, whereas opportunities and threats arise from external factors.
Slide 5
Strategic goals need to be tied to the firm’s mission as well as its competitive position. Goals are
specific and measurable, tied to a time frame and are realistic but challenging.
The main objective of creating strategies is that they can create an advantage over competition.
Slide 6
The implementation of strategies is carried out by middle level managers for the most part.
Evaluation is an important art of the planning process. The lessons learned in one planning cycle
should be incorporated in the next planning cycle.
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Lecture Outline / Chapter 14
Slide 7
There are a number of ways in which something can be organized but it is essential to select the one
that would help achieve the management’s goals.
The organization chart visually shows the company’s formal structure.
Companies that have a centralized structure, bestow the power to make decisions with a few people
at the top of the company.
The right span of control depends on the managers’ and their subordinates’ abilities, the nature of
work, and many other factors.
Slide 8
Departmentalization is breaking workers into logical groups. Functional divisions allow for better
coordination.
Divisions based on products help workers gain expertise on the products and build customer
relations.
Divisions based on customers help employees understand the needs of specific customer groups.
Geographical divisions help companies’ better serve particular regions within a country.
Divisions based on process are common in manufacturing industries.
Slide 9
The line organization, line-and-staff organizations, and matrix organizations are three different
patterns of company structures. However, these structures are not independent of each other.
In a line organization, each employee is accountable to the person above him or her.
In a line-and-staff organization, the line managers form the primary chain of authority and the staff
departments work together with the line departments.
In a matrix organization, specialists from various departments work on projects on temporary basis.
Slide 10
The way in which leaders use their power defines their leadership style. There is a range of specific
styles that can be used and they have been clustered into three broad styles—autocratic leaders,
democratic leaders, and free-rein leaders. The autocratic leader tend to hoard decision-making
powers and issue orders without consulting their followers. Democratic leaders share power with
followers but make final decisions.
Slide 11
Free-rein leaders set objectives for their followers but give them freedom to choose how they
accomplish those goals. When a quick decision is paramount, autocratic leadership may make
the most sense. But when creativity is the top priority free-rein management would probably
work best.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Lecture Outline / Chapter 14
Most leaders use a combination of all three styles and consider their followers, the situation, and
their customers while making their decisions.
They tend to shift their leadership style, depending on the followers and the situation. The
democratic leadership style typically provides customers with a balance of consistency and
flexibility, which works across a wide range of industries.
Slide 12
Monitoring performance of the firm and making improvements when necessary is part of the
controlling process of management. When changes take place in the environment, the control
process changes as well. The control process establishes clear performance standards which are
specific and measurable, realistic but challenging and tied to a time frame.
Slide 13
In order to establish clear performance, there has to be sound planning. The objectives should
remain consistent with the company’s strategic plan and mission plan at every level of planning.
Measuring performance becomes a lot easy if the management has a strong information tracking
system in place.
Regular communication with the employees goes a long way in ensuring that they remain focused on
the goals.
I want to share something fun and interesting from an article “Is your boss a psychopath?” by Alan
Deutschman, July 2005
Watch out! That good-looking guy on the corporate fast track may be a psychopath…
Check out the profile: Psychopaths demonstrate hypnotic charm, coupled with a fundamental lack of
empathy and conscience. They can perceive your feelings—often with spooky accuracy—but they just
don’t care. Canadian researcher Robert Hare describes them as “callous, cold-blooded individuals… They
have no sense of guilt or remorse.” And they take real pleasure from leveraging their power.
While not every psychopath is a budding Charles Manson, Hare has found that the psychopaths in the
workplace share a basic personality profile with their more violent counterparts. Corporate
psychopaths, however, score higher in the “selfish, callous, remorseless use of others” category, and
much lower in the “unstable, antisocial, and socially deviant lifestyle” category that lands people in
jail for more brutal crimes.
The headlines are filled with stories of corporate psychopaths gone way wrong for crimes that range
from creative accounting to stock manipulation. CEOs such as Enron’s Bernie Ebbers and Bernie Madoff
have plundered their companies at the expense of thousands of people losing their jobs or their savings
or both. But countless corporate psychopaths have stayed on the right side of the law, delivering
bottom-line results at a staggering personal cost to the colleagues they betray and demoralize on a
daily basis.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Lecture Outline / Chapter 14
Another unpleasant personality in the corner office is the productive narcissist. Examples include Oprah
Winfrey, Jack Welch, and Martha Stewart. These characters don’t always have much empathy, but they
often have a powerful vision, a flair for innovation, and a knack for attracting committed followers. While
their goal may be helping humanity in the abstract, they’re often insensitive to the real people around
them. Bill Gates—widely respected for his razor-sharp mind, his visionary strategic management, and his
world-changing philanthropic generosity—has been known to deflate eager subordinates with comments
such as “That’s the stupidest thing I’ve ever heard.” And when engineers asked Steve Jobs why they were
creating the iMac, he replied, “Because I’m the CEO, and I think it can be done.” But despite their abrasive
approach, productive narcissists are much less scary than psychopaths, since they’re committed to their
vision for the company rather than simply to themselves, which often makes them stars in their fields.
Today’s chaotic, results-driven business environment may be a magnet for corporate psychopaths
and productive narcissists, since both personalities thrive on constant, chaotic change. And the
broader culture doesn’t help. Americans idealize the idea of the corporate cowboy—the charismatic
maverick who delivers against all odds, regardless of the cost. You can protect yourself by learning to
recognize and steer clear of unhealthy personalities, no matter how charming they may initially
seem.
Slide 14
We are finished with Chapter 14. We will use the information from this chapter over and over, so it is
important for you to understand. You are ready to complete the Chapter 14 – part 2 self-check and
to complete the discussion forum and assignments for the week.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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