Transcript Material Review Motivating for High Performance (12) Power, Politics, Negotiations, Conflict & Stress (9) Decision Making and Problem Solving (4) Leading with Influence (12) PowerPoint Presentation by Charlie Cook The University.

Material Review
Motivating for High
Performance (12)
Power, Politics,
Negotiations, Conflict &
Stress (9)
Decision Making and
Problem Solving (4)
Leading with Influence
(12)
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Copyright © 2006 Thomson Business and Economics.
All rights reserved.
How Motivation Affects Performance
• Expectations, Motivation, and Performance
– Self-fulfilling prophecy
•
•
“If you believe you can, or if you believe you can’t,
then you are right”—Henry Ford
If you think you will be successful, then you will be.
• The Performance Formula
– Performance = Ability × Motivation × Resources
•
For maximum performance levels, all three factors
must be high.
Copyright © 2006 Thomson Business and Economics. All rights reserved.
13–2
How Managers
Motivate Based on
Maslow’s Hierarchy of
Needs Theory
Exhibit 12–2
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13–3
Herzberg’s Two-Factor Theory
Proposes that employees are motivated by
motivators rather than by maintenance factors
Exhibit 12–3
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13–4
Individual Goals & Objectives Setting
•
•
One of the toughest Management Tasks!!
Keys to success:
–
Clearly define objectives and the performance needed to
achieve them.
• Define various levels of achievement, e.g. C = -------------, B= ------------, etc.
• Objective/Quantifiable:
– Percentage on Time, Cost per Unit, Cal Handle Time, Customer
Satisfaction, Repeat Customer Problems
• Subjective/Quality:
– Project Due Dates, Customer Acceptance, Team Satisfaction,
• How as important as What with teamwork expectations.
–
Issue today - No one wants to be a “C” Employee
• Yet Organizations Continue to Raise the Bar
• 50% of Employees Do Not Believe they are fairly rated – at best
places to work!
–
–
–
Tie performance to rewards.
Be sure rewards have value to employees.
Make sure employees believe that management will do what it
says it will.
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13–5
Do Motivation Theories Apply Globally?
• Cultural Differences in Motivation
– The source of motivation (intrinsic vs. extrinsic)
– The level of needs on which people focus
varies.
– Individualistic societies tend to value individual
accomplishment; collective societies tend to
value group accomplishment and loyalty.
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13–6
Sources and Bases of Power
• How to Increase Your Power
– You can increase your power without taking
power away from others.
– Generally, power is given to those who get
results and have good human relations skills.
Exhibit 9–2
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13–7
Political Behaviors and Guidelines for Developing Political Skills
Exhibit 9–3
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13–8
Managing Conflict (cont’d)
• Functional Conflict
– Exists when disagreement and opposition
support the achievement of organizational
goals.
• Dysfunctional Conflict
– Exists when conflict prevents the achievement
of organizational goals.
– Complacency and confrontation are both
dysfunctional forms of conflict.
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13–9
Conflict Management Styles
Exhibit 9–4
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13–10
Negotiation, Collaboration, and Mediation
•
When are you Negotiating?
–
–
–
–
–
•
–
Peers (resources, etc.)
Project Teams
Internal “Infrastructure”
Society (Govt., Others)
Others?
A process in which two or more parties in conflict attempt
to come to an agreement.
Can be hampered by zero-sum attitudes of parties.
• Japan Example
Collaboration
–
•
–
–
–
–
–
Negotiating
–
•
Customers
Suppliers
Boss
Employees
Unions
The parties work together to solve a problem.
Mediation (Facilitator, Mediator, Arbitrator or Courts)
–
The use of a neutral third party to help the parties resolve
a conflict.
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13–11
The Negotiation Process
5. Understand the
needs and build RFP or
provide vision, goals,
etc.
Planning should be the most time consuming
What are you “willing to give up to get”?
Copyright © 2006 Thomson Business and Economics. All rights reserved.
Exhibit 9–5
13–12
Stress
•
Stress
–
•
Stressors
–
•
Factors that cause people to feel overwhelmed by anxiety,
tension, and/or pressure.
Functional Stress
–
•
The body’s reaction to environmental demands.
Helps improve performance by challenging and
motivating people to meet objectives.
Dysfunctional stress
–
Stress that is severe enough to lead to burnout.
• Burnout is a constant lack of interest
and motivation to perform one’s job
due to stress.
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13–13
The Stress Tug-of-War
Exhibit 9–8
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13–14
The Decision-Making
Model
• A six-step process that
when properly utilized
increases chances of
success in decision
making and problem
solving.
Exhibit 4–1
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13–15
Decision-Making Styles
• Reflexive Style (a.k.a…………….)
– Makes quick decisions without taking the time
to get all the information that may be needed
and without considering all the alternatives.
• Reflective Style (a.k.a……………..)
– Takes plenty of time to make decisions,
gathering considerable information and
analyzing several alternatives.
• Consistent Style
– Tends to make decisions without either rushing
or wasting time.
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13–16
Four Temperament Quadrants
Rational (NT) – 5% Pop. (3)
Strategic Analysis (Task)
Idealist (NF) – 10% Pop. (7)
Diplomatic Integration (People)
Pros: Visionary, Logical, Expertise,
Understand Complex, Task Oriented,
Organized
Trouble: Too competitive, abstract, quick to
decide, offend others
Needs: Challenge their imagination
Pros: Energizer, Persuasive, Catalyst,
Inclusive, People Oriented, “E” likes Groups
Trouble: Too Idealistic, overlook details,
overextend self
Needs: Congruence with who they are.
Artisan (SP) – 40% Pop. (0)
Tactical Variation (Task)
Guardian (SJ) – 45% Pop. (5)
Logistics (Task/People)
Pros: Common Sense, Resourceful,
Negotiator, Factual, Efficient
Trouble: Too expedient, short term, can be
blunt, risky
Needs: Freedom to do things as they see fit
Pros: Thorough, Logical, Detail, Sense of
Duty, Supporting
Trouble: Bureaucratic, may avoid conflict,
short range, may overlook interpersonal
needs
Needs: Knowledge of the Goal and Steps to
get there.
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13–17
Decision Structure
• Programmed Decisions
– Recurring or routine situations in which the
decision maker should use decision rules or
organizational policies and procedures to make
the decision.
• Nonprogrammed Decisions
– Significant and nonrecurring and nonroutine
situations in which the decision maker should
use the decision-making model.
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13–18
Decision Structure Continuum
Nonprogrammed Decision:
Significant, nonrecurring, and nonroutine
(Longer period of time to make decisions)
OPTIMIZING ------------ DECISION MODEL--------- SATISFICING*
Programmed Decision:
Nonsignificant, recurring, and routine
(Shorter period of time to make decisions)
UNCERTAINTY -----------------RISK------------------- CERTAINTY
GROUP ---------------------PARTICIPATION --------- INDIVIDUAL
* SATISFICING = FIRST ALTERNATIVE THAT MEETS MINIMUM CRITERIA
Exhibit 4–2
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13–19
Potential Advantages and Disadvantages of Using Group Decision Making
• Potential Advantages
• Potential Disadvantages
1. Better-quality decisions
2. More information,
alternatives, creativity,
and innovation
3. Better understanding of
the decision (VISION)
4. Greater commitment to
the decision (RESULTS)
5. Improved morale and
motivation (RESULTS)
6. Good training
(CONTINUOUS
LEARNING
ENVIRONMENT)
1. Wasted time and slower
2. Satisficing
3. Domination and goal
displacement
4. Conformity and
groupthink
Exhibit 4–4
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13–20
DOES LEADERSHIP STYLE INFLUENCE
DECISION MAKING PROCESS?
Looks Like…….
“SPONSORED” TEAM
Source: Adapted from Robert Tannenbaum and Warren Schmidt, “How to
Choose a Leadership Pattern,” Harvard Business Review, May/June, 1973.
Copyright © 2006 Thomson Business and Economics. All rights reserved.
SELF MANAGED GROUP
Exhibit 13–3
13–21
Define the Problem
•
Distinguish Symptoms from the Cause of the Problem
–
–
–
List the observable and describable occurrences
(symptoms) that indicate a problem exists.
Determine the cause of the problem.
Removing the cause should cause the symptoms to
disappear or cease.
• Symptom: Customer dissatisfaction
• Cause: Poorly trained employees
• Penalty (So what? – what are the impacts to Goals and
Objectives of the Organization)
• Problem Definition based on Root Causes
• Alternatives
• Solution: Implement customer relations training program
for employees
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13–22
“Asking Why 5 Times” by Robert Pojasek
• Helps Teams Identify Alternatives Faster
– Spend More Time Diagnosing  Better Solutions
•
•
•
•
•
Promotes Use of Higher Order Thinking Skills
Cut through layers of bureaucracy
Cut across organizational boundaries
Encourages People to Challenge
Find issues that affect the whole organization
• Focus on the Process Not the Person(s)
• Difficulties:
– Team Management to Follow the Process
– Can Be Complex – Cause and Effect Diagram
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13–23
Generating Creative Alternatives
•
Brainstorming (Very frequent)
–
–
–
•
Synectics (Used to Invent Items we don’t have a need)
–
•
The process of suggesting many possible alternatives
without evaluation.
Build on Ideas, NO Evaluation
Group into Alternatives
The process of generating novel alternatives through role
playing and fantasizing.
Nominal Grouping (Can Follow Brainstorming)
–
The process of generating and evaluating alternatives
using a structured voting method that includes listing,
recording, clarification, ranking, discussion, and voting to
select an alternative.
Copyright © 2006 Thomson Business and Economics. All rights reserved.
13–24
Analyzing the Feasibility of Alternatives
• Quantitative Techniques
– Break-even analysis**
– Capital budgeting (Investment)***
•
•
Payback
Discounted cash flow
– Net Present Value (NPV)
– Linear programming
– Queuing theory
– Probability theory
•
Sensitivity Analysis - Used on all
– Combination***
Use Whatever the Organization Uses Unless It’s Wrong
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13–25
Balmer Cafe
• Symptom – Long Lines
during Class Passing
Period.
• Penalties - So What?
– Late Students to Class
• Student Stress
• Faculty Dissatisfaction
– Lost Contribution Margin
• Estimate = $160/day
• $24,000 per year
– Hungry Students
– Non-caffeinated students
• #1 Why for lost business
– Long lines discourage
students
• #2 Why Long Lines
– Passing Period Demand Up
• Can’t do anything about this.
– Not Enough Help/Equipment
• #3 Why Not Enough
Help/Equipment?
– Custom Drinks Take Time
– Equipment too slow and not
enough cash registers
• #4 Why not buy equipment or
hire people?
– Never understood penalty or
alternatives
• #5 Why never studied?
– No Metrics to measure
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13–26
Balmer Café – Objectives & Why
1. ___________________________
2. ___________________________
3. ___________________________
4. ___________________________
5. ___________________________
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13–27
Balmer Cafe - Decision Criteria & Why
1. __________________________
2. __________________________
3. __________________________
4. __________________________
5. __________________________
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13–28
Financial Analysis – Net Present Value (NPV)
(@ 10% Discount, No Inflation)
Year 1
Year 2
Year 3
Year 4
Year 5
Income - 80 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000
Customers
Per Day
Option 1 - Hire New
Cost
(8,400)
(8,400)
(8,400)
(8,400)
(8,400)
Cash Flow
15,600
15,600
15,600
15,600
15,600
NPV
$59,136
Option 2 - Buy New Equipment
Cost
(35,000)
Cash Flow
(11,000)
24,000
24,000
24,000
24,000
NPV
$59,161
Option 3 - Change Menu
Cost
(15,000) (15,000) (15,000) (15,000) (15,000)
Cash Flow
9,000
9,000
9,000
9,000
9,000
NPV
$ 34,117
Copyright © 2006 Thomson Business and Economics. All rights reserved.
Total
$ 120,000
$ (42,000)
78,000
$ (35,000)
85,000
$ (75,000)
45,000
13–29
Alternatives Decision Matrix
Option
Criteria
Option 1
Hire Person
Option 2
Option 3
Buy Equipment Reduce Menu
BEST
FINANCIAL
NPV = $59K
NPV = $59K
NPV = $34K
IMPROVE
HIGH
CUSTOMER
SATISFACTION
HIGH
LOW
LOW RISK
HIGH RISK
MEDIUM
$35k purchase
More customers
leave
MEDIUM
LOW
GOOD
EMPLOYEE
IMPACT
LOW RISK
HIGH
OTHERS?
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13–30
Cost-Benefit (Pros and Cons) Analysis
• Cost-Benefit Analysis
– A technique for comparing the cost and benefit
of each alternative course of action using
subjective intuition and judgment along with
math. (often financials become cost/benefit)
• Continuum of Analysis Techniques:
Exhibit 4–10
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13–31
Leadership Trait Theory
• Leadership Trait Theorists
– Have been unsuccessful in identifying a
universal set of traits that all leaders possess.
• Ghiselli Study (1971)
– Concluded that certain traits are important to
effective leadership; supervisory ability (getting
work done through others) being the most
important.
– From Chapter 1: 6) Initiative, 5)self-assurance,4)
decisiveness, 3) intelligence, 2) need for
occupational achievement, and 1) supervisory
ability
Copyright © 2006 Thomson Business and Economics. All rights reserved.
13–32
The Leadership Continuum
Looks Like…….
“SPONSORED” TEAM
Source: Adapted from Robert Tannenbaum and Warren Schmidt, “How to
Choose a Leadership Pattern,” Harvard Business Review, May/June, 1973.
Copyright © 2006 Thomson Business and Economics. All rights reserved.
SELF MANAGED GROUP
Exhibit 13–3
13–33
Situational Leadership® Model
• Situational Leadership® Model (Hersey and
Blanchard)
– Used to select one of four leadership styles that
match the employees’ maturity level in a given
situation.
•
•
•
•
Telling: giving employees explicit directions about
how to accomplish a task
Selling: explaining decisions to gain understanding
Participating: facilitating decision making among
subordinates
Delegating: giving employees responsibility for their
decisions and their implementation
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13–34