Management

Leadership - Path-Goal Theory

Leader Behavior: - Directive - Supportive - Participative - Achievement oriented Environmental Contingency Factors: - Task structure - Formal authority system - Work group Employee Contingency Factors: - Locus of control - Experience - Perceived ability Outcomes: - Performance - Satisfaction

Management Fundamentals are the same

Planning, Organizing, Controlling, Leading

Generation Groups

- Generation Z - Millennial (Generation Y): Born after 1980 - Generation X: Born between 1965 and 1980 - Baby Boomers: Born between 1946 and 1964 - Silent (Greatest) Generation: Born between 1928 and 1945

Key Functions of an Organization's Culture

- Influences the way people carry out processes - Creates pressure for members to act in a way consistent with the culture - Can work to enhance organizational productivity - Can serve as a component of organizational strategy - Provides rationale for staffing - Acts as a guideline for making operational decisions Codified in an organizations 'Code of Conduct' which managers ensure all follow - reinforces the culture!

#1 - Managerial Communications

- Most basic motivation strategy! - Managers should communicate often with employees - Communicating is a basic tool for satisfying human needs of organization members - Recall our discussions in: l> Chapter 6 - Managing Interpersonal Conflict l> Chapter 7 - Building Supportive Communications l> Chapter 8 - Negotiating & Resolving Conflict

Advantages for New Business

- New businesses can be more nimble than their larger counterparts l> Owned and run by the same persons l> Decisions making more quickly - Increased flexibility - no layers of buy-in, little hand-offs - Ability to fill niches in demand for products and services l> Lack of economies of scale offset by fulfilment of smaller markets

Applying Behavior Modification - logical, guidelines for managers

1.) Give different rewards according to quality of employee performance 2.) Tell workers what they are doing wrong 3.) Punish privately! 4.) Always give rewards and punishments that are earned

Two General Types of Motivation Theories

1.) Process Theories (how motivation occurs): a.) Emphasize how individuals are motivated b.) Focus on steps occurring when individual is motivated 2.) Content Theories (understand human needs): a.) Emphasize individual's internal characteristics b.) Focus on understanding what needs individuals have and how to satisfy those needs

Three primary areas of focus - will help shape the analysis and perspective of the emerging business idea

1.) Risk tolerance 2.) Prior experiences & Skills evaluation: a.) Management b.) Leadership c.) Level of Expertise(s) - many hats 3.) Personality orientation of the individual

Behavioral Theory Implications T-S Leadership Continuum (not in text)

1.) University of Iowa Study: Focuses on three leadership behaviors or styles: a.) Autocratic Style: leader who centralizes authority and limits worker participation b.) Democratic Style: leader involved workers in decisions; consultative; more participative c.) Laissez-faire: workers are free to make decisions; leaders offer resources and answer questions

Iowa Study Observations and Findings (cont.)

- Understanding which style is a function of: 1.) What is the managers 'comfort level' 2.) Assess worker's readiness to assume responsibility 3.) Assess the situations (timely-ness; complexity) - Team & individuals satisfaction tends to be better under the democratic style - Employee centered styles tend to improve motivation; morale; decision-making; quality

#2 - McGregor's Factor X/Y Theory

A bit too binary ... - Manager have 2 beliefs about employees: 1.) Theory X: majority of employees need to be closely managed as they generally dislike work a.)Can destroy motivation! 2.) Theory Y: majority of employees seek responsibility, do not need much supervision a.) Can unlock value, strong performance Candidly, this just starts frames a continuum ...

Emotional Intelligence

Ability to manage ourselves and our relationships effectively through awareness of and effective response to our emotions Strong leadership = IQ + EQ IQ: knowledge, competencies, technical skills, business acumen EQ: social skills, likeability, relationship building, intangibles, how being leader, empathetic, diplomacy, how go ab executing IQ skills

Leaders Govern the Strategic Management Process

Three processes/methods to formulate & implement strategy (not mutually exclusive): 1.) Strategic planning a.) A formal, top-down planning approach 2.) Scenario planning a.) A formal, top-down planning approach 3.) Strategy as planned emergence a.) Begins with a strategic plan, but is less formal b.) Leaders must create/nurture an environment: wildcards; innovation moments (free time); % of budget; examples? i.) Google's: 70-20-10 time allocation

Leaders

those able to influence others and possess managerial authority and responsibility

Types of Organizational Cultures (cont.)

- According to the CV Framework, organizational cultures can be divided into four types: 1.) Clan Cultures 2.) Adhocracy 3.) Hierarchy Cultures 4.) Market Cultures

Three Needs Theory in Practice

- Applicable, understandable for most managers ... - For example, do members of your team value: l> Achievement: educational goals ... tuition reimbursement as a benefit? l> Affiliation: may be comfortable simply doing a great job, limited aspiration for "C-suite" l> Power: enjoy public recognition; decision making; collaboration

Types of Organizational Culture

- Competing Values Model: suggests the organizational cultures differ on two sets of opposite values: 1.) Flexibility & Discretion vs. Organizational Stability, Order, and Control 2.) Internal Organizational Focus vs. and External Organizational Focus - Organizational cultures tend to incorporate various combinations of these competing values

Three Primary Areas of Focus: 3rd - Personality Orientation of the Individual - familiar?:

- Gives you a perspective on your relative strengths, characteristics, how you deal with people and the environment - Myers-Briggs focuses on four pairs of variables 1.) Extroversion-introversion - outward vs. internal focused 2.) Sensing-intuiting - how you gather information 3.) Thinking-feeling - decision making processes 4.) Judgment-perception - order vs. flexibility - Enneagram suggests that there are nine different types of personalities: l> Reformer, helper, achiever, individualist, investigator, loyalist, enthusiast, challenger, and peacemaker - Big Five Test looks at five factors: l> Open-mindedness, conscientiousness, agreeableness, emotional stability, and extroversion Example: Facebook - Mark Zuckerman vs. Sheryl Sandberg

Three Primary Areas of Focus: 2nd Element - Prior Experience Influencers:

- Individual each have different experiences, history, culture, and family values ... help individuals interpret the world l> Place boundaries on what a decision maker will consider as he or she makes decisions - Establish what people consider to be both possible and practical l> Referred to as an individual's bounded rationality l> Often leading to fresh insights on business ideas, models, etc. - Individuals' decision making is bounded by their own version of rationality

Motivations...Why Ppl Act As They Do

- Inner state causing an individual to learn in a way that ensures the accomplishment of some goal - Initiative—Persistence—Direction of employee efforts toward job performance - Understanding motivation is a management imperative

#3 - Importance of Job Design

- Job Design = design of organizational members jobs - Four Elements - balancing general vs. specialized roles: 1.) Job Rotation: engagement, reduces absenteeism 2.) Job Enlargement: job rotation and enlargement leads to enrichment & productivity 3.) Job Productivity and Enrichment 4.) Flextime

VYJ Decision Making Effectiveness

- Leader state the problem to be addressed l> Asks a series of clarifying questions: ll> Gains insights on employee knowledge/readiness along with further problem definition - Research has shown evidence decisions consistent with the model are more successful than are decisions inappropriate with the model - Main challenge is the complexity of the model and difficulty in applying the model

Servant Leadership - A View on Transformational Leadership

- Leader's primary role is to help followers in quests to satisfy personal needs, aspirations, and interests - Places high value on service to others over self-interests - Servant Leaders are: good listeners—persuasive—aware of their surroundings—empathetic—stewards

#1 - Life Cycle Theory Leadership

- Leaders should adjust their leadership style in accordance with the readiness of their followers. l> The focus is the situation of the followers, as it is up to them to accept or reject the leader l> Readiness: a follower's ability and willingness to perform a task. Effective Leadership depends on it being appropriately matched with follower readiness - Stated differently, leadership style should reflect maturity level/readiness of the followers: l> Maturity: Ability of followers to perform their jobs independently, assume additional responsibilities, and desire to achieve success l> Manager's leadership style is only effective if it is appropriate for the maturity level of the followers - their Readiness - Flexible matching of relationship and tasks between the leaders and follower: - Examples: l> Low task, low relationship = Leader Delegating ll> Push down decisions - more routine, repetitive jobs l> High task, low relationship = Leader Directive ll> Needs to get done, an urgency

Situational Theories of Leadership

- Leadership success and effectiveness depends on a combination of: l> SL = f(L, F, S): Leader; Follower; Situation - Each instance of leadership is different and requires a unique combination of leaders, followers, and leadership situations - Three notable theories then emerged: 1.) Life Cycle Model 2.) Fiedler Contingency Model 3.) Path-Goal Theory

Support System: Community

- Offers legitimacy and provides basic office functions such as office space at subsidized rates - Most communities have entities that advise new businesses: l> Small business centers l> Economic development councils l> Chambers of Commerce l> Universities

Managers must leverage the potential of each person in the organization

- Planning: diversity training programs and goals - Organizing: recruiting, hiring, and retaining diverse pool of employees - Leading & Influencing: encouraging and supporting diverse work environment - Controlling: evaluating diversity efforts to see if working

Organization Culture

- Set of values organization members share regarding functioning and existence of organization - Personality of the organization - Description of how the organization functions - Describes "how things are done here"

Leadership Lessons From the Olympics

1.) Conditions for success are rarely perfect. We have to lead. We have to decide. 2.) Sacrifice is required. It is not optional. 3.) Little improvements over time, make a big difference. 4.) Celebrate the moment, elevate the experience! 5.) Focus now or pay the price later. 6.) Hard work and passion can be more important than talent. Talent wins games, teamwork wins championships. 7.) Recognize that some things are out of our control. Control what you are able.

Four general approaches which management must embrace

1.) Establishing a Vision of Organization Culture 2.) Building and Maintaining Organization Culture through Artifacts 3.) Integrating New Employees into the Organization Culture 4.) Maintaining the Health of Organization Culture

Building a High-Performance Organizational Culture: the flywheel of 8 steps...

1.) Lead as Champion: explain the 'why' behind organizational climate 2.) Link Work to Organizational Mission: creates pride in the employee efforts and results 3.) Track & Talk About Performance: perspective, feedback matters 4.) Build a Hierarchy of Objectives: 'connect the dots' to corporate priorities 5.) Invest in Talent: attract and retain 6.) Recognize & Reward: 'extrinsic & intrinsics' matter 7.) Hold Managers Accountable: for overseeing performance 8.) Build Organizational Commitment: dedication, psychological bonds over time

Herzberg's Two-Factor Theory

builds on X/Y Theory for motivation: 1.) Hygiene, Maintenance Factors: relate to workplace a.) When these factors are undesirable, the individual becomes dissatisfied 2.) Motivating Factors: relate to the work itself a.) When these factors are compelling, the individual is satisfied and motivated to perform tasks Fundamentally, a combination of the two factors both increase job satisfaction and enhance job performance!

#2 - Vroom Expectancy Theory of Motivation

- A bit more complex than Needs-Goal Theory - Vroom is based on the premise that 'felt needs' drives human behavior - Introduces 'Motivational Strength': l> An individual's desire to perform a behavior l> Their motivation fluctuates as individual's desire increases or decreases

Transformational Leadership - focus on outcomes and how you get there...

- Acting like a leader: integrity with authenticity - Inspire organizational success by affecting follower's beliefs - Create vision: Build commitment—Facilitate organizational change - Know the people you are leading and help them develop - Stimulate action, make others think and take responsibility - Inspire others to transcend their own interests for the benefit of the organization

Pay-for-Performance Programs resonate

- Base compensation - Profit sharing - Lump-sum bonuses - Equity awards Compensation practices matter and are an important motivator!

Raise awareness & provide management training

- Behavioral Awareness - Acknowledgement of Biases and Stereotypes - Focus on Job Performance/Results - Avoidance of Assumptions - Modification of Policy and Procedure Manuals Value = innovation, new ideas, collaboration, engagement, 'performing teams'

#5 - Likert Management Systems

- Categorizes management styles in organizations to: l> System 1: Lack of confidence and trust in subordinates l> System 2: Condescending master-to-servant style, confidence, and trust in subordinates l> System 3: Substantial, not complete, and confidence in subordinates l> System 4: Complete trust and confidence in subordinates Modern management strives to develop & operate from System 3 to System 4

#4 - Porter-Lawler Theory of Motivation

- Comprehensive theory - builds upon Needs-Goal & Vroom - Amount of effort is determined by value of rewards and the probability of reward being received - Task accomplishment is determined by ability to do a task and perception of task required - The value of a reward is determined by intrinsic and extrinsic factors l> Intrinsic rewards come from directly performing the task l> Extrinsic rewards - extraneous to the task, compensation - Perceived fairness of rewards influences amount of satisfaction produced by rewards

#2 - Building & Maintaining Culture Through Artifacts

- Cultural artifacts reinforce an organization's beliefs, values, and norms - Values: l> Heart of any organization; what is considered important; 'for' or 'against' something ... - Values Statement: formal document that summarizes the primary values within the culture of an organization - Norms: appropriate attitudes and behaviors in day-to-day work & interactions - Organizational Myths: popular stories ... the beginnings; events of great significance l> i.e. How we started; M&A; 1st product(s); etc. - Organizational Sagas: like myths, storytelling designed to perpetuate the shared values l> i.e. why we won't open on Sunday or other holidays; life of the founder; etc. - Organizational Language: slogans; nomenclature l> i.e. at Disney, you are a 'cast member' - Organizational Symbols: logos, flags, pictures, etc. l> i.e, McDonalds Golden Arches; Vanguard's Ship - Organizational Ceremonies: formal activities for important occasions l> i.e. organization milestones, anniversaries; sales or production goals; founder's day; etc. - Organization Rewards: for those individuals who uphold the values; can come from within and outside the organization - Well-known companies, their slogans, and the values these slogans reflect:

The Vroom-Yetton-Jago Model (VYJ)

- Decision focused leadership theory: l> Focuses on how much participation to allow subordinates in decision-making process - Two key aspects: 1.) Organizational decisions should be of high quality, geared to improve performance 2.) Subordinates should accept and be committed to organizational decisions that are made - Model suggest 5 leadership decision making styles ...

4th Strategy - Behavior Modification

- Developed by B.F. Skinner, Psychologist, Harvard University - Encouraging appropriate behavior by controlling the consequences of that behavior, though: l> Reinforcement techniques ll> Positive reinforcement ll> Negative reinforcement l> Punishment techniques

Three Primary Areas of Focus: 1st - Risk Tolerance: Perspective for Entrepreneurs

- Entrepreneurs must evaluate: l> Whether they have the risk tolerance to start a new business l> Level of risk they will accept in a given business situation. ll> I.e. Level of personal savings vs. debt contributions - Individual entrepreneurs must be aware of their risk tolerance and establish a business consistent with that tolerance - Specifically, it takes time for the business to reach the break-even point, where revenue sufficiently covers expenses l> Guidance established in the business plan l> Financial risks, strategic risks, market retaliation risks, etc.

2.) Equal Employment and Affirmative Action

- Equal Employment Opportunity Commission (EEOC) l> Federal agency enforcing discrimination in employment laws regulating recruiting & other management practices - Affirmative Action l> Eliminate barriers and increase opportunities for underutilized and/or disadvantaged individuals - Reverse Discrimination: well crafted policy avoids! Regulations which encourage and protect diversity!

How Strategic Leaders Develop

- Ethical & Effective Leadership actions encompass: l> Continuous learnings: theory to practice ... l> Education, career experiences, age l> Personal interpretations of situations l> Lense of their unique perspective l> Outcomes reflect values of top management (Merck vs. WF) l> Active development and engagement

Diversity Challenges: Ethnocentrism

- Ethnocentrism: Beliefs one's group, culture, country, and customs are far superior to those of other groups ... it's challenging: - Prejudice: preconceived judgment, opinion about an issue, behavior, or group of people - Stereotype: positive or negative assessment of a group or their perceived attributes - Discrimination: the act of unjust/inequitable treatment based upon stereotypes or prejudice - Tokenism: unacceptable reference to one of the few members of a group within an organization

Support System: The Family

- Family members resources for support, guidance, suggestions, and potential funding - The role of family is so critical that many ventures end up being family businesses: l> Long-term management is unique because of the level of commitment that accompanies family employees l> Be aware of and think through the 'benefits' and 'drawbacks' ll> Relationships with non family members) ll> Under-performance

2.) Adhocracy Cultures, characterized by

- Flexibility & discretion—External focus - Creative, entrepreneurial workplaces, less P&P - Managers focus on: l> Generating innovation ideas from employees l> Reward new ways to do work, new product service development l> Foster continuous improvement - Google; Zappos; Others?

3.) Hierarchy Cultures, characterized by

- Formal & structured—Internal focus, stability - Efficiency, formal rules of operations - Manager focus on: l> Coordination & organization, standard processes l> Makes sure employees know exactly what is expected of them l> Monitoring systems and regular employee feedback - McDonald's; GM; Government; Others?

#3 - Argyris's Maturity-Immaturity Continuum

- Human needs progress along a continuum focusing on the personal and natural development of people - People naturally progress from immaturity to maturity as they move along the continuum - Generally, more awareness and control over their own destinies - Maturity-Immaturity Progression: l> State of passivity - age related l> State of dependence - decreases generally l> Capable of behaving in many different ways - situational l> Deeper, more lasting interests - know what is more important ... l> Long-time perspective - knowledge to wisdom l> Aspiring to occupy an equal subordinate position l> Control over self actions and reactions

#1 - Ohio State Behavioral Studies

- Identified 2 independent dimensions of leader behavior: l> Structure Behavior (more Task focused): ll> The extent to which a leader defines and structures his or her role and the roles of employees to attain goals l> Consideration Behavior (more Relationship focused): ll> The extent to which a leader has job relationships characterized by mutual trust, respect for employees' ideas, and regard for their feelings - Leaders need to demonstrate trustworthiness, honesty, and ability to collaborate - Trustworthiness is ruined when leaders' behavior demonstrates they are: 1.) Credit Hogs: taking credit ... 2.) Lone Rangers: too independent ... 3.) Egomaniacs: all about me ... 4.) Mules: stubborn, inflexibility *** High Structure/High Consideration = best performance and satisfactions, though ignored situational factors/flexibility ***

#2 - University of Michigan Studies

- Identify the behavioral characteristics of leaders related to performance effectiveness: l> Employee oriented behavioral leader, emphasizes: ll> Interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences. l> Job-centered behavioral leader, emphasizes: ll> Technical or task aspects of a job, is concerned mainly with accomplishing tasks, and regards group members as means to accomplishing goals. Key finding: employee-oriented leader yields higher productivity and satisfaction

Marketing Matters!

- Identify your market: geographic area ... - Target Customer: particular segment of the market ... - Pricing Model: start with the break-even ... loss leader? ... cost plus? - Promotional Strategy: social media; trade shows; print - Sales Management: forecasting, distribution channels

Advantages of Using Flextime Programs

- Improved employee attitude and morale Accommodation of working parents - Decreased tardiness - Fewer commuting problems—workers can avoid congested streets and highways - Accommodation of those who wish to arrive at work before normal workday interruptions begin - Increased production - Facilitation of employee scheduling of medical, dental, and other types of appointments - Accommodation of leisure-time activities of employees Decreased absenteeism - Decreased turnover

#3 Leadership: Path Goal Theory

- It is a leader's job to assist followers in attaining their goals and to provide the necessary direction and support. - Assumes that the leader's style is flexible and can be changed to adapt to the situation at hand. l> Directive (autocratic); Supportive (concerned); Participative (consultative); Achievement Oriented (challenging goals) ---VS.---- - 2 classes of situations: Environmental and employee variables - Basic premise of Path Goal Theory: l> Leader outlines goals for followers l> Leader clears path that followers should take l> Followers achieve goals and earn rewards contingent on doing so - Managers can facilitate job performance by showing employees how their performance directly affects receiving the desired results - Leaders exhibit four primary types of behavior: l> Directive Behavior: telling followers what to do and how to do it l>Supportive Behavior: being friendly with followers and showing interest in them as human beings l> Participative Behavior: seek suggestions from followers regarding business operations to the extent followers are involved in making important organizational decisions l> Achievement Behavior: Setting challenging goals for followers to reach and expressing/demonstrating confidence they measure up to the challenge

Support System: Network of Individuals

- Key support people in an individual's life - Individuals in the network can provide legitimacy to the business and provide feedback and advice to you - Can be a rich source of advice on forming a business and potential sources of funding - Who are your 'personal Board of Directors'?

Disadvantages of Using Flextime Programs

- Lack of supervision during some hours of work - Key people unavailable at certain times - Understaffing at times Problem of accommodating employees whose output is the input for other employees - Employee abuse of flextime program Difficulty in planning work schedules - Problem of keeping track of hours worked or accumulated - Inability to schedule meetings at convenient times - Inability to coordinate projects

Behavioral Approach to Leadership Emerged

- Leadership success goes beyond traits, led to the behavioral studies to what leaders - Looked at what good leaders do, what they concentrate on - Foundational studies centered on leaders generally exhibit specific types of behaviors: 1.) The Ohio State University Study 2.) The University of Michigan Study

The Fundamentals of Management!

- Leadership: commitment; courage - Organization Structure, Governance, Controls l> Simple, low complexity ... at first **plus** - Motivation: adequate evaluation of your skills, risk tolerances - Culture: values system; type of environment you want to create

Top Down Leadership Support - Essential

- Managers (evaluated, on-boarded) skilled at working with a diverse workforce - Effective education and diversity training programs - Foster organizational climate that promotes diversity and fosters peer support for exploring diversity issues - Open communication between employees and managers about diversity issues - Recognition of employees' development of diversity skills and competencies - Recognition of employee contributions to diversity goals (spotlight examples ...) - Organizational rewards (extrinsic & intrinsic) for managers' implementation of organizational diversity goals and objectives Adapt, Evolve, Continuously Improve!

Tannenbaum and Schmidt Leadership Continuum

- Managers are successful decision makers only if the method they use to make decisions appropriately reflects the leader, the follower, and the situation - Depicts a range of how leaders make decisions: l> Autocratic leadership decision making to subordinate-centered decision making ----- - Three primary forces influence managers in making practical and effective decisions (be sure to read more on drivers in text!): l> Forces in Manager: Values—Confidence in Subordinates—Personal Leadership Strengths—Tolerance for Ambiguity l> Forces in Subordinates: Need for Independence—Readiness—Interest— Knowledge—Experience—Expectations l> Forces in Situation: Organization Type—Group Effectiveness—Problem to Solve—Time Available

**Behavioral Theories Summary

- Most seem to work across the following dimensions: l> Work Dimension = Structure, Job-Centered Behaviors l> People Dimension = Consideration, Employee-centered behaviors - Behavioral Leadership Research shows that: l> Desirable leadership behavior is associated with strong leader emphasis on both structure and consideration l> Undesirable leadership behavior is associated with weak leader emphasis on both dimensions - They did advance understandings on leadership... - Results varied though, under different sets of circumstances - Discounted situational factors that influence success or failures (performance and satisfaction) - Difficult to yield consistent results ... too discreet Led to the Situational Approach to Leadership

*Key Elements of Motivation for Managers

- Motivating teams to achieve goals and success, critical competence for successful managers - Listen, ask questions (remember the "talk-listen" ratio) - Know employee softer 'care-abouts': l> Achievement; recognition; growth; meaningful work; equity and camaraderie; flexibility; work environments; respectful treatment; leadership credibility; reasonable degree of job security; etc.

#1 - Needs-Goal Theory of Motivation

- Motivation begins with individual feeling a need - Need transforms into behavior that supports the goal of performance behavior to reduce the felt need - Individuals who set goals have an easier time focusing on relevant activities - Examples: l> Baseball - Yankees pitcher in the text l> Others? Role of Individual Needs in this Theory: - Managers need to understand individual employee needs - Managers need to understand offering unvalued rewards does not motivate employees - Managers must be familiar with employee needs and offer valued rewards to satisfy those needs - How do managers do this? l> Recall C6, C7, C8 discussions ... Related Concept: GOAL-SETTING THEORY - clarity; challenge; commitment; feedback; etc. - Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated. - Recall our earlier chapters such as "Feedback"; SMART goals

Progression of Leaders Through the Pyramid

- Natural progression, each level builds upon the previous one. - Prior levels must be mastered before moving on. - Each level helps individuals develop capacity for greater success. - Level-5 executives (similarities to servant leadership ...): l> Works to help the organization succeed l> Helps others reach their full potential, personal needs l> Good listeners—Persuasive—Aware of their surroundings—Empathetic—Stewards l> Facebook (Mark on Sheryl): "She builds enduring greatness at Facebook through a combination of skill, willpower, and humility"

3.) Promoting Diversity in Organizational Commitment

- Organizational Commitment to Diversity Continuum, a framework for organizations and managers: l> Broad based Diversity Programs and Efforts l> ... to ... l> No Diversity Programs and Efforts Diversity efforts critical to a firm's success, organization systems & structures to support! 1. Broad-based diversity efforts based on: a.) Effective implementation of affirmative action and EEOC policies b.) Organization-wide assessment & management's top-down commitment to diversity c.) Managerial commitment tied to organizational rewards d.) Ongoing processes of organization assessment & programs - creating a climate inclusive and supportive of diverse groups 2. Diversity efforts based on: a.) Effective implementation of affirmative action and EEOC policies b.) Ongoing education and training programs c.) Managerial commitment tied to organizational rewards d.) Minimal attention directed toward cultivating an inclusive and supportive organizational climate 3. Diversity efforts based on: a.) Narrowly defined affirmative action and EEOC policies combined with one-shot education and/or training programs b.) Inconsistent managerial commitment; rewards not tied to effective implementation of diversity programs and goal achievement c.) No attention directed toward organizational climate 4. Diversity efforts based on: a.) Compliance with and enforcement of affirmative action and EEOC policies b.) No organizational supports with respect to education, and training c.) Inconsistent or poor managerial commitment 5. Diversity efforts based on: a.) Compliance with affirmative action & EEOC policies b.) Inconsistent enforcement & implementation (those who breach policies may not be sanctioned unless noncompliance results in legal action) c.) Support of policies not rewarded; organization relies on individual managers' interest/commitment 6. No Diversity efforts: a.) Noncompliance with affirmative action and EEOC

#3 - Integrating New Employees Into the Culture

- Organizational Socialization: process by which management can appropriately integrate new employees into the organization's culture l> During good economic times, more new employers need to be socialized l> The struggle for new recruits to fit-in can be frustrating and lead to high levels of premature turnover l> Not all recruits are suitable for the organization's culture and some may need to be weeded out Alignment with great search, recruiting, and onboarding practices!

#1 - A Classic: Maslow's Hierarchy - Management Perspective

- People have a range & hierarchy of needs which they seek to satisfy - Higher level needs could only be met once the foundations one have been satisfied - Analogous to priority setting in the business world l> Imagine what businesses are doing today to protect their employees! Quick reminder definitions: - Level 1 = Physiological: survival - Level 2 = Safety & Security (jobs) - Level 3 = Social: valued member of organization - Level 4 = Self Esteem: respect, acceptance, recognition - Level 5 = Self Actualization: realize full potential, strive for betterment #1 - Maslow's Hierarchy: good basis, but... Practically speaking for management - People are generally less structured - Understand different cultures, backgrounds, life experiences, etc. - All these levels should be considered for motivating employees ...

4.) Promoting Diversity Through Pluralism

- Pluralism: managers strive to create an environment where differences are acknowledged, accepted, and contributors - Five major categories & strategies to achieve pluralism (effective workplace diversity): 1.) "Golden Rule" Approach: be sure to understand others frame of reference 2.) Assimilation Approach: avoid!, involves exerting undo pressure 3.) "Righting the Wrongs" Approach: policies to create a more equitable set of conditions (embrace diversity - Pinterest!) 4.) Culture-Specific Approach: train on norms and practices of another culture (i.e. cultural immersion training in multinational corporations) 5.) Multicultural Approach: build into the fabric of the organization!

Diversity Challenges: Macro-level Factors

- Population is growing more slowly - Workforce is getting older - Growing presence/impact of women in the workforce - Minorities will make up a larger share of new entrants ... demographics changing ... - Immigration is increasing in the general population and the workforce

Support System: Financial Support

- Potential entrepreneurs MUST FULLY UNDERSTAND THE COST-BENEFIT OF BUSINESS l> Must account for the financial resources required in starting and running a new business l> Cash Flow l> Sources of funding: venture capital, angel investors l> Profit & Loss Statements, Balance Sheets, Budgets - Regardless of the type of business, it is CRITICAL TO OBTAIN THE NECESSARY FUNDING l> Practical, realistic levels to support the rationale, fully analyzed business idea

Strategies for Promoting Diversity in Organizations

- Several approaches to diversity and strategies manager can use in promoting within their organizations: 1.) Hudson Institute Strategies 2.) Equal Employment and Affirmative Action 3.) Diversity Through Organizational Commitment 4.) Promoting Diversity Through Pluralism Balancing regulations vs. policy ...

4.) Market Cultures, characterized by

- Stability and control—emphasizes relationships with all stakeholder (capital, employee, customers, suppliers) - Managers focus on: l> Competition, winning, achieving goals l> Makes sure all know the top critical customers l> Accept only world class quality in products & services - General Electric; Netflix; Berkshire; Others?

Donaldson/Scannell (research) Four-Stage Model

- Stage 1: Unconscious Incompetence - managers are unaware, newly promotes, development required - Stage 2: Conscious Incompetence - on the learning curve! - Stage 3: Consciously Competent - much more deliberate and engaged - Stage 4: Unconscious Competence - most effective, part of a manager's engagement style It's a journey ...

1.) Hudson Institute Strategies (take actions on ...)

- Stimulate balanced world growth - global economy ... rising tide metaphor ... - Accelerate productivity increases in service industries - service economy more-so than manufacturing ... how best to scale ... effectiveness & efficiency - Maintain dynamism of aging workforce - encourage adaptability and flexibility - Reconcile conflicting needs of women, work, and families - equitable distributions more-so ... - Fully integrate underrepresented demographics (i.e. African American, Hispanic workers, etc.) - erase the biases ... we need a skilled and engaged workforce! - Improve education and skill of all workers - invest in greatest asset - human capital

1.) Clan Cultures, characterized by

- Strong internal focus, high degree of flexibility/discretion - Shared values and goals—cohesion - like a family! - Managers focus on: l> Coaching, counseling, empowerment l> Set clear SMART goals for work teams l> Celebrate successes of work teams and individuals - Southwest Airlines; Others?

**#2 Fiedler's Contingency Leadership Model

- Success depends on the proper match between the leader's style of interacting with employees, the job at hand, and the leader's degree of control over the situation - Proposed solution for effective leadership in most situations is to change the organizational situation to fit the leader's style - Three workplace criteria to manipulate, creating a proper match to the behavioral orientation of the leader ... Three primary factors: 1.) Leader-Member Relations: degree of leader acceptance by followers 2.) Task Structure: goals clearly articulated & known to followers 3.) Position Power: extent to which leaders have control of rewards and punishments Examples, in general: 1.) Good leader-member relations + more highly structured task + stronger position power = more leader control and influence (i.e. well-run factory floor, fulfillment center) 2.) Good leader-member relations + more unstructured task + weak leader position power = leader who is more permissive, passive, considerate (i.e. non-profits; committee work) 3.) Poor leader-member relations + more unstructured task + weak leader position power = leader who is more controlling, active, structured leadership (i.e. batch shop operations) ----- - Match the individual's leadership style to the situation - To improve a leader's effectiveness: l> Change leader-member relations: align with 'like-minded' employees, same backgrounds l> Change leader to fit situation (new dept. to be created, existing dept. to be overhauled) l> Change leader's position power: established team?, new hires?, maybe even give a higher rank? - Can be tricky, though emphasizes the importance of situational variables

Strategic Leadership In Practice (remaining charts not in text)

- Successful use of power and influence to direct the activities of others in pursuit of organizational goals - Enables organizational competitive advantage and garnering above average returns for stakeholders. - Power = formal and informally use when implementing strategy: l> Formal = their roles & responsibilities, authority l> Informal = persuasion & influence of others l> Quantifiable and Intangible ..

Leadership - A General Definition

- The process of directing the behavior of others toward the accomplishment of an objective; 'getting things' accomplished through people - Directing: causing individuals to act in a certain way or to follow a particular course of action - WHY's to importance of leadership skills development: l> Enhanced communication technology, l> Growth in international business; l> Face paced changes technology driven business process l> PEOPLE!

#1 - Establishing a Vision of Organizational Culture

- What are the cultural dimensions that best contribute to the mission? - Six dimensions from which to decide then managers must take steps to promote and reinforce 1.) Quality Dimension: from the customer's point of view, builds loyalty 2.) Ethics Dimension: 'do the right thing, emphasize through trainings, examples 3.) Innovation Dimension: encourage development of new ideas, don't over-focus on efficiency 4.) Spirituality Dimension: emphasizes acceptance of spiritual or religious belief and related activities. 5.) Diversity Dimension: embraces and encourages the existence of basic human differences; different perspective on how to solve problems; etc. 6.) Customer Dimension: enduring commitment to customer satisfaction ... 'all about the customer'

Diversity Challenges: Negative Dynamics & Specific Groups...research-based considerations

- Women: high expectation women have on each other - Gender Roles: can be stereotypes surrounding ... - Glass Ceiling: time to eliminate barriers to advancement - Sexual Harassment: unwanted actions in the workplace - Minorities: racial, ethnic, and cultural awareness - Older Workers: understand workplace needs; value add - Workers with Disabilities: must reject negative dynamics Managers: awareness, trainings, actions

Situational Leadership Theories - Recap

1.) Life Cycle Leadership: leadership style adapted to readiness of followers a.) Most sophisticated, leaders aware of external factors 2.) Fiedler Contingency: performance dictated by matching inflexible leadership styles (task vs. relationship) with different scenarios 3.) Path-Goal: adapting leadership behaviors based on environmental & employee factors to help team members succeed

Strategies for Motivating Employees

1.) Managerial Communications 2.) Theory X & Theory Y 3.) Effective Job Design 4.) Behavior Modification 5.) Likert Management Systems 6.) Monetary Incentives 7.) Nonmonetary Incentives Managers use a combination of these strategies!

Content Theories of Motivation

1.) Maslow's Hierarchy of Needs 2.) Alderfer's ERG Theory 3.) Argyris's Maturity-Immaturity Continuum 4.) McClelland's Acquired Needs Theory Continuing to build upon and further develop management thinking on motivation: people having a strong need for self respect, respect for others, psychological growth

Herzberg Hygiene Factors and Motivators

Dissatisfaction: Hygiene or Maintenance Factors 1.) Company policy and administration 2.) Supervision 3.) Relationship with supervisor 4.) Relationship with peers 5.) Working conditions 6.) Salary 7.) Relationship with subordinates Satisfaction: Motivating Factors 1. Opportunity for achievement 2. Opportunity for recognition 3. Work itself 4. Responsibility 5. Working conditions 6. Personal growth

#2 - Alderfer's ERG Theory of Motivation

E = Existence Need l> Need for physical well-being R = Relatedness Need l> Need for satisfying interpersonal relationships G = Growth Need (top pyramid Maslow) l> Need for continuing personal growth and development - Differs from Maslow's in that the three levels (only 3 orders vs. 5) can activated differentially at different time depending upon the situation - Example: job fulfillment may be missing, hence a focus on just 'doing the job' for the compensation l> Lower skills jobs, impact of technology, etc. l> Managers must focus on job design and enrichment l> Attraction and retention implications!

Trigger for Starting a Business

Events or conditions within an individual's environment come from either positive or negative stimulus Examples: - Been thinking about it since high school - Downsized from current company or other life event - Being approached with a new business idea - The risk return level is financially tolerable - Evidence an idea for improvement is doable - Being spurred to action by a book, seminar, and so on - Leverage corporate experiences ... 'things have changed' - Observing community business development efforts - Desire to be one's own boss!

Two General Types of Motivation Theories 1.) Process Theories of Motivation

Four Important Theories that build on one another: #1.) Needs-Goal Theory #2.) Vroom Expectancy Theory #3.) Equity Theory #4.) Porter-Lawler Theory Theories become more sophisticated and build upon each other ...

#3 - Equity Theory of Motivation

Fundamentally, it entails ... - Employees perception and/or view of reality of their inputs in comparison to others in similar situation - Inputs = what I put into my job - Outputs = what I get from my job - Employees will respond in different ways - Perceptions of inequity come from: l> Work assignments l> Promotions l> Compensation l> Ratings reports l> Office assignments - All of these situations are EMOTIONALLY CHARGED as they relate to perceptions of SELF-WORTH - EXAMPLES: American Airlines (executive comp.); State & County - Governments (salary/benefit tradeoff) - When individuals believe they have been treated unfairly in comparison to other coworkers, they react in a way to try to fight the inequity, such as: l> Change work outputs - 'throttle back' l> Change compensation - ask for a raise l> Change perceptions - rationalize?; cognitive dissonance l> Choose a different referent l> Leave situation - becomes a retention problem Note: the inverse can be true if there is over-rewarding

**#4 - Maintaining Health of the Culture**

Healthy Culture: Facilitates achievement of organization's mission and objectives High engagement & performance Disney; Villanova Unhealthy Culture: Does not facilitate achievement of the organization's mission and objectives Poor relationship; lack of trust and engagement Wells Fargo; perhaps Airline industry in pandemic 1.) Openness and humility from top to bottom of the organization 2.) An environment of accountability and personal responsibility 3.) Freedom from risk-taking within appropriate limits 4.) A fierce commitment to "do it right" 5.) A willingness to tolerate and learn from mistakes 6.) Unquestioned integrity and consistency 7.) A pursuit of collaboration, integration, and holistic thinking 8.) Courage and persistence in the face of difficulty

Motivation

In general: - Reason(s) one has for acting or behaving in a particular way - General desire or willingness of someone to do something. From a business point of view: - Internal & external factors that stimulate desire and energy in people to be continually interested and committed to a job; or, to make an effort to attain a goal.

Difference Between Large Organizations and Entrepreneurial Businesses

Large organizations/corporations: - NO ONE PERSON IS CRUCIAL TO THE SURVIVAL OF THE BUSINESS - Knowledge is widely dispersed - Greater excess resources & organizational slack - Abundance of polices, procedures ... Entrepreneurial businesses: - Dependent on individuals/founders ... MORE CRITICAL ROLE TO THE FIRM THAN SENIOR LEADERS OF LARGE ORGANIZATIONS - Concentration of knowledge - Limited slack resources means rigorous allocations

Characteristics of the emerging leader versus characteristics of the manager - not mutually exclusive!

Leader: - Soul l> Visionary l> Passionate l> Creative l> Flexible l> Inspirational l> Innovative l> Courageous l> Imaginative l> Experimental l> Independent Manager: - Mind l> Rational l> Consultative l> Persistent l> Problem-solving l> Tough-minded l> Analytical l> Structured l> Deliberate l> Authoritative l> Stabilizing

Leadership vs. Management

Leadership: - Subset of management (see next chart) - Emphasizes behavioral issues; relationships - Cares about and focuses on people doing the job Management: - Broader in scope - Emphasizes behavioral and nonbehavioral issues - Makes sure the job gets done Leadership = people, relationships, strategy, vision, more-so Management = organizational processes, execution, more-so

Organizational & Social Implications of Diversity

Majority Groups: l> Group of people who hold most of the decision-making power, control of resources and information, and access to rewards Minority Groups: l> Group of people who are assigned to work in positions that do not involve power, resources, acceptance, or social status - Together the two groups form the social system of the organization Seek a wide range of talents from every cultural group as there are a host of business advantages!

**Key Elements of Motivation (cont.)**

Managers must also focus on: 1.) "To each their own"' generally: a.) Recognize individual differences and motivate accordingly. b.) Match people to jobs. c.) Use theories simultaneously. 2.) Set attainable goals and reasonable standards. 3.) Provide frequent, high-quality feedback. 4.) Check the system for equity (HR team support!) 5.) Don't ignore $$ but remember, it isn't the top motivating factor. 6.) Cultural issues abound.

#6 & 7 - Monetary & Non-Monetary Incentives

Monetary Incentives: money-based compensation programs, examples include: - ESOPs—Employee Stock Ownership Plans - Lump-Sum Bonuses - Profits/Gain-Sharing Non-Monetary Incentives: examples include: - Promoting from within - Emphasis on quality - Recognition

Organizational Subculture vs Dominant Organization Culture

Organizational Subculture: A mini-culture within an organization; reflects values and beliefs of specific departments or geographic regions l> research & development vs. a line operation Dominant Organization Culture: The shared values held by the majority of an organization's members. Managers must be able to manage both in order to optimize planning, organizing, controlling

#4 - Acquired Three Needs Theory - McClelland

Suggests the dominant motivator depends upon life experiences and culture Achievement: challenges, risks, responsibilities - Has a strong need to set and accomplish challenging goals. - Takes calculated risks to accomplish their goals. - Likes to receive regular feedback on their progress and achievements. - Often likes to work alone. Affiliation: team centered management style - Wants to belong to the group. - Wants to be liked; often go along with whatever the group wants to do. - Favors collaboration over competition. - Doesn't like high risk or uncertainty. Power: decision making - Wants to control and influence others. - Likes to win arguments. - Enjoys competition and winning.

Diversity Advantages in Business

Table 4.1 Advantages of a Diverse Workforce 1.) Improved ability to gain and keep market share 2.) Cost savings - many perspectives involved; attract & retaining 3.) Increased productivity 4.) A more innovative workforce 5.) Minority and women employees who are more motivated 6.) Better quality of managers 7.) Employees who have internalized the message that "different" does not mean "less than" 8.) A workforce that is more resilient when faced with change

Early Theories Based on Traits

Trait Theories of Leadership: essentially isolate characteristics that differentiate leaders from non-leaders - Assumed leaders are born and not made - Described leaders based on a set of characteristics - Over time, showed inconsistency—no one set of qualities or traits could be used to differentiate leaders from non-leaders - Six general traits emerged ... Common Leadership Traits: 1.) Intelligence, Judgment & Verbal Ability 2.) Past achievement in scholarship & athletics 3.) Emotional maturity & stability 4.) Dependability, persistence, and drive 5.) Social and adaptive skills across groups 6.) Desire for status and socioeconomic position Not complete though ... behavioral & situation factors must be considered (i.e. working with and through others)

Essence of Entrepreneurship

new business ideas and/or doing things differently - Examples: cattle industry vs. 'fake meat'; Uber vs. taxi's; AirBnb vs. Hoteliers; airlines: point to point vs. hub-n-spoke