当代商业概论 当代商业概论 Fundamentals of BusinessFundamentals of Business

Lecture 7:Lecture 7:Leadership and Leadership and

Employee MotivationEmployee Motivation

What to cover todayWhat to cover today ：：

1.1. Business leadership Business leadership

2.2. Business communication Business communication

3.3. Motivational theories Motivational theories

4.4. Motivational strategies Motivational strategies

ExercisesExercises

1. Business leadership1. Business leadership

Leadership Leadership 领导力领导力 is:is:-- the use of one’s personality, beliefs, values, soci-- the use of one’s personality, beliefs, values, soci

al skills, knowledge, and power to influence otheal skills, knowledge, and power to influence other people’s thoughts, feelings, and behaviorr people’s thoughts, feelings, and behavior

An An effective leadereffective leader is one who can influence, p is one who can influence, persuade, and engage their followers or employeersuade, and engage their followers or employees to work hard, perform well, and feel good aboes to work hard, perform well, and feel good about their job.ut their job.

An An charismatic leadercharismatic leader is one who is exceptiona is one who is exceptionally respected by employees on a personal level, lly respected by employees on a personal level, and regarded as a hero who personifies the comand regarded as a hero who personifies the companypany

1.1 Sources of a leader’s power1.1 Sources of a leader’s power

Leader power isa function of:

Legitimatepower

Coercivepower

Rewardpower

Expertpower

Referentpower

Legitimate powerLegitimate power: the legal authority to direct and : the legal authority to direct and control employees’ activities control employees’ activities

Reward powerReward power: the ability to recognize and : the ability to recognize and acknowledge employees who perform their jobs acknowledge employees who perform their jobs in a way that meets or exceeds the requirements in a way that meets or exceeds the requirements for their job and companyfor their job and company

Coercive powerCoercive power: the ability to sanction or punish : the ability to sanction or punish employees who fail to meet job and company employees who fail to meet job and company requirements requirements

Expert powerExpert power: a person’s recognized expertise or : a person’s recognized expertise or superior skill in a particular functional area of superior skill in a particular functional area of business business

Referent powerReferent power: the ability to influence and : the ability to influence and persuade other people because of personal persuade other people because of personal quality, such as personality, physical attributes, quality, such as personality, physical attributes, social status, fame or personal wealthsocial status, fame or personal wealth

1.2 Leadership approaches1.2 Leadership approaches

1.2.1 Three styles of leadership 1.2.1 Three styles of leadership

Boss-centered styleBoss-centered style Democratic styleDemocratic style Subordinate-centered styleSubordinate-centered style

1.2.2 Four approaches to leadership1.2.2 Four approaches to leadership

The Contingency Theory The Contingency Theory 权变方式理论权变方式理论 isis-- the theory that effective leadership occurs -- the theory that effective leadership occurs

when managers adopt a leadership approwhen managers adopt a leadership approach that matches the characteristics of theach that matches the characteristics of their employees and the work settingir employees and the work setting

Two types of contingency:Two types of contingency: Employee contingency Employee contingency Work-situation contingencyWork-situation contingency

1.3 The Contingency Theory of 1.3 The Contingency Theory of leadershipleadership

Two types of contingencyTwo types of contingency

Need for achievementNeed for achievement: a person’s desire or : a person’s desire or drive to excel at a certain activity drive to excel at a certain activity

Internal locus of controlInternal locus of control: the belief that good : the belief that good things will happen to them because of their own things will happen to them because of their own effortsefforts

External locus of controlExternal locus of control: the belief that how : the belief that how well they perform depends much more on the well they perform depends much more on the nature of the situation they are in and factors nature of the situation they are in and factors out of their control, such as luck, fortunate job out of their control, such as luck, fortunate job assignments, or able co-workersassignments, or able co-workers

Group cohesivenessGroup cohesiveness: the attractiveness of a : the attractiveness of a team to its members; it affects their desire to team to its members; it affects their desire to cooperate with each other to get a job done cooperate with each other to get a job done quickly and reliably quickly and reliably

The effect of various contingency factorsThe effect of various contingency factors

2. Business communication2. Business communication Some experts hold that leadership is a kind of “game” Some experts hold that leadership is a kind of “game”

in which leaders seek to in which leaders seek to influence employeesinfluence employees, but , but employees also seek to employees also seek to influence leadersinfluence leaders in order to in order to get what they want. The four approaches to leadership get what they want. The four approaches to leadership are therefore viewed as different styles of are therefore viewed as different styles of two-way two-way influenceinfluence. At the center of influence lies . At the center of influence lies communicationcommunication. .

Various types of communication within a Various types of communication within a business:business:

board of directors -- stakeholdersboard of directors -- stakeholders CEO – board of directorsCEO – board of directors manager -- CEOmanager -- CEO manager – managermanager – manager function/division department – function/division function/division department – function/division

departmentdepartment

A model of communication processA model of communication process

A persuasive sender: has appropriate pace of speaking marshals arguments logically returns to the same important points time and time again

to highlight the key facts invites questions to clarify issues and generate interest emotionally charges his words to convince his listeners

An active receiver: pays attention not only to the words but also to

paralinguistic features and non-verbal cues avoids interrupting or finishing the other party’s

sentences, and maintains his interest in what the other party is saying

asks questions to elicit more information and to learn more about the other party’s intentions

Content of the message: presents all sides of an argument always shifts back to the major theme of the message uses strong arguments to persuade appeals to the receiver’s feelings, emotions and intellect

Case studyCase study: A fatal failure : A fatal failure to communicate at NASA to communicate at NASA

Questions:1. What partially led to the tragic crash of the Space

Shuttle Columbia?2. Which method of communication is more persuasive,

the written form or the oral?

Method of communication: Letters, reports, proposals, memos, fax and email: best suite

d to convey the detailed, factual information that requires time and effort to digest and act upon, used at the beginning of the decision-making process

FtF and telephone: most effective for persuasive communication, allow for the processing of complex information, both logical and emotional, to make the optimal decision, used at the later stages of the decision-making process

Comparison of communication methods:Comparison of communication methods:

3. Motivational theories 3. Motivational theories 3.1 The value of motivation 3.1 The value of motivation Motivation Motivation 激励 激励 is:is:-- the psychological force within people that arouses -- the psychological force within people that arouses

their interest, directs their attention, and causes ththeir interest, directs their attention, and causes them to persist to achieve their work goalsem to persist to achieve their work goals

Work motivations is influenced and measured by Work motivations is influenced and measured by job job satisfaction satisfaction 工作满意度工作满意度

-- the degree to which employees are satisfied with t-- the degree to which employees are satisfied with their jobsheir jobs

Although some people naturally make more of an Although some people naturally make more of an effort to perform well, they will still need a work enveffort to perform well, they will still need a work environment that satisfies and therefore motivates theironment that satisfies and therefore motivates them. m.

ListeningListening: Marks & Spencer’s wa: Marks & Spencer’s ways to motivate its staff (08:19)ys to motivate its staff (08:19)

Word bank:Word bank:

perk perk 附带福利附带福利hygienic hygienic 卫生的卫生的dignity dignity 尊严尊严

Task 1: Listen to the first part of the passage and fill in the blanks with the missing information.

What is Marks & Spencer reputed for? -- It is reputed for ______, with things like goo

d perks, good canteen, that sort of thing. What can people do when they come off the sal

es floor? -- They can go to the staff restaurant and obvi

ously they can have tea, coffee, or a drink provided free of charge, and can then ______, if they want one, or a roll and cheese, in pleasant environment, ______, food of the highest quality, there’re areas where they can rest and read papers, ______, yeah, that is very important because ______

Task 2: Listen to the second part of the passage and write T or F for each statement.

1. The staff are highly motivated and they don’t need to relax at busy times.

2. In terms of the health-screening programs, the staff will be having medicals.

3. The staff can purchase any merchandise at a discounted rate.

4. The Christmas bonus for the general staff is 10% of their salary.

5. Marks & Spencer does well in motivating its staff.

Keys:

Task 1: 1. job security and looking after its staff2. buy at very reduced rates a full cooked

breakfast3. in a hygienic environment4. or play pool or something 5. they need a break from the customers

Task 2: F T F T T

Case studyCase study: Anna and Marie: Anna and Marie Anna and Marie were equally intelligent and tend to exert the

same amount of effort in the workplace. They were then hired by two different firms in the same industry for the same type of job. They work the same number of hours and receive the same salary, but their workplaces differ as follows:

Given these conditions, Anna would be much more motivated to perform well than Marie if they swap jobs. The point is, the firm has a major influence on the motivation of the employees.

Firm A

(which Anna is with)

Firm B

(which Marie is with)

Employee work interactionEmployee work interaction Frequent Frequent Seldom Seldom

Employee social interactionEmployee social interaction Frequent Frequent Seldom Seldom

Input provided by managers to Input provided by managers to employeesemployees

Frequent Frequent Seldom Seldom

Input requested from Input requested from employees by managersemployees by managers

Frequent Frequent Seldom Seldom

3.2 Taylor’s Classical Theory (1911)3.2 Taylor’s Classical Theory (1911) motivated by nothing by money; higher pay, high

er productivity time-and-motion studies 时间——动作分析 applicable for manual work

3.3. The Hawthorne Studies (1924-1932) 3.3. The Hawthorne Studies (1924-1932) 霍索恩研究 霍索恩研究

money: not the only factor, may cause resentment

human relations: special attention from the management also increases productivity

Hawthorne Effect 霍索恩效应

3.4 Maslow’s Hierarchy of Human Nee3.4 Maslow’s Hierarchy of Human Needs (1943) ds (1943) 需求理论需求理论

the most comprehensive theory of human needs Once people achieve a given category of needs,

they become motivated to reach the next. Different employees many be at different places

in the hierarchy, and their most immediate needs may differ. Managers should identify their specific needs and offer rewards accordingly.

Maslow’s Hierarchy of Human NeedsMaslow’s Hierarchy of Human Needs

3.5 Herzberg’s Two-factor Theory (1950) 3.5 Herzberg’s Two-factor Theory (1950) 双因子双因子理论理论

hygienic/maintenance factors 保健因素 : work-related factors that can fulfill basic needs and prevent job dissatisfaction

motivating factors 激励因素 : work-related factors that can lead to job satisfaction and motivate employees

Employees become dissatisfied when they perceive factors in the left column as inadequate; they are commonly satisfied when factors in the right column are offered.

Common factors identified

by dissatisfied workers

Common factors identified

by satisfied workers

Working conditionsWorking conditions AchievementAchievement

Supervision Supervision Responsibility Responsibility

Salary Salary Recognition Recognition

Job security Job security Advancement Advancement

Status Status Growth Growth

3.6 McGregor’s Theory X and 3.6 McGregor’s Theory X and Theory Y (1960)Theory Y (1960)

Two ways of viewing and treating employees: Theory X managers: use tight control, retain

more authority Theory Y managers: delegate more authority,

allow employees to use their creativity, higher level of job satisfaction and motivation

3.7 Theory Z (1980)3.7 Theory Z (1980) based on the Japanese style of management allow all employees to participate in decision

making and have more sense of responsibility less specialized job descriptions to foster varied

skills and more flexible career path

3.8 Vroom’s Expectancy Theory 3.8 Vroom’s Expectancy Theory 期望理期望理论论

An employee’s efforts are influenced by the expected outcome and reward for those efforts.

Employees will be more motivated by achievable goals (e.g. 1/20 salespeople) and desirable reward (e.g. one-week vacation in Bali).

= +Work motivation

Efforts-to-performance

linkage

Performance-valued outcome

linkage

3.9 Adams’ Equity Theory 3.9 Adams’ Equity Theory 公平理论公平理论-- suggests that compensation should be equitable ,

or in proportion to each employee’s contribution

3.10 Skinner’s Reinforcement Theory 3.10 Skinner’s Reinforcement Theory 强化理论强化理论

-- suggests that both positive (rewards for high performance) and negative (punishment for low performance) reinforcement can influence employees’ behavior, and thus lead to high motivation; based on Skinner’s behavior modification 行为修正

4. Motivational strategies4. Motivational strategies

4.1 Motivational guidelines offered by 4.1 Motivational guidelines offered by theories theories

1. Employees commonly compare their compensation and perceived contribution with others. To prevent job dissatisfaction, supervisors should ensure that employees are compensated for their contributions.

2. Even if employees are offered high compensation, they will not necessarily be very satisfied. They may have higher levels of needs such as responsibility, respect and self-development. Jobs that can fulfill these needs may provide satisfaction and therefore motivation.

3. Employees may be motivated if they believe that it is possible to achieve a certain performance level that will result in a desirable reward.

4.2 Compensation programs4.2 Compensation programs align raises with performance align bonuses with performance provide stock as partial compensation

4.3 Job enrichment programs4.3 Job enrichment programs job rotation job enlargement job enrichment job redesign

4.4 Employee involvement programs 4.4 Employee involvement programs

4.4.1 Participative Management4.4.1 Participative Management 参与管理参与管理-- an involvement program that allows employees to

participate in various decisions at all management levels

most commonly at the bottom and middle levels quality circle 质量管理小组 e.g. DaimlerChrysler has a program in which ind

ividual workers are asked for suggestions on cost cutting or improved quality. Managers review these suggestions and respond to the workers within a few days.

4.4.2 Management by objectives (MBO) 4.4.2 Management by objectives (MBO) 目标管理目标管理

-- a work-performance review program that involves (1) setting specific and challenging goals, (2) developing an action plan together, (3) reviewing employees’ progress towards achieving those goals, and (4) providing feedback to employees

used to strengthen the effort-to-performance and performance-valued outcome linkages

commonly applied to salespeople by assigning a monthly sales quota or goal that is based on historical sales

4.4.3 Open-book management 4.4.3 Open-book management 开卷管理开卷管理-- a form of employee involvement that educates employees o

n their contribution to the firm and enables them to periodically assess their own performances levels, and in this way encourage them to make decisions and conduct tasks as if they were the firm’s owners

Three distinct characteristics: The firm educates all employees on the key performance

measurements, and makes these measurements widely available, e.g. various revenue, expense and production figures may be displayed daily or weekly in the work area.

As employees are given the power to make decisions, they are also trained to understand how the results of their decisions will affect the overall performance, e.g. how salespeople’s efforts affect the firm’s total revenue, how engineers’ efforts reduce the production cost.

The compensation of employees is typically aligned with their contribution to the firm’s overall performance; they may be given some stock so that they are both shareholders and employees.

4.5 Flextime programs4.5 Flextime programs -- programs that allow employees flexibility

on the timing and arrangement of their work schedules

flexible working hours 弹性工作时间 telecommuting 远程办公 : vs. mass comm

uting workshare/job sharing 工作共享

Examples of firms with very high job Examples of firms with very high job satisfactionsatisfaction

Firm Methods to achieve high job satisfaction

Southwest Southwest AirlinesAirlines

Treats employees with respectTreats employees with respect Empowers employees to solve problemsEmpowers employees to solve problems Gives awards and recognition to employeesGives awards and recognition to employees

MBNAMBNA

(a U.S. credit (a U.S. credit card company)card company)

Focuses on hiring employees who get along with Focuses on hiring employees who get along with other people other people Provide on-site child careProvide on-site child care

MicrosoftMicrosoft Casual work environmentCasual work environment Empowers employees to solve problemsEmpowers employees to solve problems

Eddie BauerEddie Bauer

(a U.S. outdoor (a U.S. outdoor outfit retailer)outfit retailer)

Two-week paid sick leave for new parentsTwo-week paid sick leave for new parents Flexible work schedulesFlexible work schedules

Case studyCase study: What’s wrong? : What’s wrong?

Tasks:1. Discuss which leadership approach Feng

took before, and which approach she decided to follow in the future.

2. Use relevant theories on motivation to analyze what led to Feng’s unsatisfactory management, and which programs or techniques can be applied to improve the situation.

ExercisesExercises

1. Translation1. Translation(1) (1) 远程办公 远程办公 (2) (2) 工作轮换工作轮换(3) (3) 工作共享 工作共享 (4) (4) 需求理论需求理论(5) (5) 权变方式 权变方式 (6) (6) 质量管理小组质量管理小组(7) (7) 工作满意度 工作满意度 (8) (8) 员工激励员工激励(9) (9) 士气 士气 (10)(10) 领导力领导力(11) (11) 开卷管理 开卷管理 (12)(12) 目标管理目标管理

2. Cloze test and sentence rearrangement2. Cloze test and sentence rearrangement (p.1 (p.167)67)

3. Group project 3. Group project

In the first half of year 2010, a series of abnormIn the first half of year 2010, a series of abnormal suicide occurred at the Shenzhen-based electroal suicide occurred at the Shenzhen-based electronics manufacturing company Foxcoon (nics manufacturing company Foxcoon ( 富士康富士康 ). ). The tragic and also thought-provoking “13 consecThe tragic and also thought-provoking “13 consecutive jumps” shocked the whole country, and madutive jumps” shocked the whole country, and made people re-evaluate how to satisfy assembly line e people re-evaluate how to satisfy assembly line laborers’ needs at various levels. laborers’ needs at various levels.

Work with your group members to collect relevaWork with your group members to collect relevant background information on this issue, use applint background information on this issue, use applicable theories to interpret the causes of the Foxcocable theories to interpret the causes of the Foxcoon event, and give feasible suggestions on how to on event, and give feasible suggestions on how to help the dissatisfied workers out. help the dissatisfied workers out.

4. Supplementary reading4. Supplementary reading

(1)(1) A Fatal Failure to CommunicateA Fatal Failure to Communicate

(2)(2) Employee Communication at FedEx (14:15)Employee Communication at FedEx (14:15)

(3)(3) How to Run a Restaurant How to Run a Restaurant

(4)(4) Employee Efficiency and MotivationEmployee Efficiency and Motivation

(5)(5) The Human Touch (00:00)The Human Touch (00:00)