Chap002 (1)

ChapterChapter

22ChapterChapter

22

PowerPoint Presentation by Charlie Cook© Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved.

Who Are Managers and Who Are Managers and Entrepreneurs?Entrepreneurs?

Who Are Managers and Who Are Managers and Entrepreneurs?Entrepreneurs?

Essentials ofContemporary Management

© Copyright 2004 McGraw-Hill. All rights reserved. 2–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• After studying the chapter, you should be able to:After studying the chapter, you should be able to:Distinguish between entrepreneurship and Distinguish between entrepreneurship and

management.management.Describe the various Describe the various personalitypersonality traits that affect traits that affect

how managers and entrepreneurs think, feel, and how managers and entrepreneurs think, feel, and behave.behave.

Understand the personal characteristics of Understand the personal characteristics of entrepreneurs.entrepreneurs.

Explain what values, Explain what values, attitudesattitudes, and moods and , and moods and emotions are, and describe their impact on emotions are, and describe their impact on managerial action.managerial action.

Define organizational Define organizational cultureculture, and explain the role , and explain the role managers and entrepreneurs play in creating it.managers and entrepreneurs play in creating it.


EntrepreneurshipEntrepreneurshipEntrepreneurshipEntrepreneurship

• EntrepreneurshipEntrepreneurshipThe mobilization of resources to take The mobilization of resources to take

advantage of an opportunity to provide advantage of an opportunity to provide customers with new and improved goods and customers with new and improved goods and services.services.

Entrepreneurship differs from management:Entrepreneurship differs from management:• Management encompasses all the decision making Management encompasses all the decision making

necessary to plan, organize, lead, and control necessary to plan, organize, lead, and control resources.resources.


EntrepreneursEntrepreneursEntrepreneursEntrepreneurs

• EntrepreneursEntrepreneursIndividuals who notice opportunities and take Individuals who notice opportunities and take

the responsibility for mobilizing the resources the responsibility for mobilizing the resources necessary to produce new and improved necessary to produce new and improved goods and services.goods and services.

• Entrepreneurs start new businesses and carry out all Entrepreneurs start new businesses and carry out all of the management functions.of the management functions.

• Entrepreneurs assume all of the risks for losses and Entrepreneurs assume all of the risks for losses and receive all of the returns (profits) from their ventures.receive all of the returns (profits) from their ventures.


Entrepreneurship (cont’d)Entrepreneurship (cont’d)Entrepreneurship (cont’d)Entrepreneurship (cont’d)

• IntraIntrapreneurspreneursIndividuals (managers, scientists, or Individuals (managers, scientists, or

researchers) who work inside an existing researchers) who work inside an existing organization and notice an opportunity for organization and notice an opportunity for product improvements and are responsible product improvements and are responsible for managing the product development for managing the product development process.process.

• Intrapreneurs frustrated with the lack of support or Intrapreneurs frustrated with the lack of support or opportunity at their firm often opportunity at their firm often leave and form their leave and form their own new venturesown new ventures..


Personality TraitsPersonality TraitsPersonality TraitsPersonality Traits

• Personality TraitsPersonality TraitsEnduring tendencies to feel, think, and act in Enduring tendencies to feel, think, and act in

certain wayscertain waysCharacteristics that Characteristics that influenceinfluence how people how people

think, feel and behave on and off the jobthink, feel and behave on and off the jobThe personalities of managers account for The personalities of managers account for

the different the different approachesapproaches that managers that managers adopt to management.adopt to management.

Traits are viewed as continuums (from high Traits are viewed as continuums (from high to low) along which individuals fall.to low) along which individuals fall.


The Big The Big Five Five

Personality Personality TraitsTraits

The Big The Big Five Five

Personality Personality TraitsTraits

Figure 2.1


The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)

• ExtroversionExtroversionThe tendency to experience positive The tendency to experience positive

emotions and moods and to feel good about emotions and moods and to feel good about oneself and the rest of the world.oneself and the rest of the world.

• Managers high on this trait are sociable and friendly.Managers high on this trait are sociable and friendly.

• Negative AffectivityNegative AffectivityThe tendency to experience negative The tendency to experience negative

emotions and moods, to feel distressed, and emotions and moods, to feel distressed, and to be critical of oneself and others.to be critical of oneself and others.

• Managers high on this trait are often critical and feel Managers high on this trait are often critical and feel angry with others and themselves. angry with others and themselves.


The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)The Big Five Personality Traits (cont’d)

• AgreeablenessAgreeablenessThe tendency to get along well with other The tendency to get along well with other

people.people.• Managers high on this trait are likable, and care about Managers high on this trait are likable, and care about

others.others.

• ConscientiousnessConscientiousnessThe tendency to be careful, scrupulous, and The tendency to be careful, scrupulous, and

persevering.persevering.

• Openness to ExperienceOpenness to ExperienceThe tendency to be original, have broad The tendency to be original, have broad

interests, to be open to a wide range of stimuli, interests, to be open to a wide range of stimuli, be daring, and take risks.be daring, and take risks.


A Measure A Measure of Negative of Negative AffectivityAffectivity

A Measure A Measure of Negative of Negative AffectivityAffectivity

Figure 2.2

Source: Tellegen, Brief Manual for the Differential Personality Questionnaire (unpublished manuscript, University of Minnesota, 1982).


Traits and ManagersTraits and ManagersTraits and ManagersTraits and Managers

• Successful managers vary widely on the “Big Successful managers vary widely on the “Big Five”. Five”. It is important to understand these traits It is important to understand these traits

since it helps explain a manager’s since it helps explain a manager’s approachapproach to planning, leading, organizing, and to planning, leading, organizing, and controlling.controlling.

Managers should also be aware of their own Managers should also be aware of their own style and try to style and try to tonetone down problem areas. down problem areas.


Other Personality Traits…Other Personality Traits…Other Personality Traits…Other Personality Traits…

• Internal Locus of ControlInternal Locus of ControlThe tendency to locate responsibility for The tendency to locate responsibility for

one’s own fate within oneself.one’s own fate within oneself.• People believe they are responsible for their fate and People believe they are responsible for their fate and

see their actions as important to achieving goals.see their actions as important to achieving goals.

• External Locus of ControlExternal Locus of ControlThe tendency to locate responsibility for The tendency to locate responsibility for

one’s fate within outside forces and to one’s fate within outside forces and to believe that one’s own behavior has little believe that one’s own behavior has little impact on outcomes.impact on outcomes.

• People believe external forces decide their fate and People believe external forces decide their fate and their actions make little difference.their actions make little difference.


Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)

• Self-EsteemSelf-EsteemThe degree to which people feel good about The degree to which people feel good about

themselves and abilities.themselves and abilities.• High self-esteem causes a person to feel competent, High self-esteem causes a person to feel competent,

and capable.and capable.

• Persons with low self-esteem have poor opinions of Persons with low self-esteem have poor opinions of themselves and their abilities.themselves and their abilities.

• Need for AchievementNeed for AchievementThe extent to which an individual has a The extent to which an individual has a

strong desire to perform challenging tasks strong desire to perform challenging tasks well and meet personal standards for well and meet personal standards for excellence.excellence.


Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)Other Personality Traits… (cont’d)

• Need for AffiliationNeed for AffiliationThe extent to which an individual is The extent to which an individual is

concerned about establishing and concerned about establishing and maintaining good maintaining good interpersonal relationsinterpersonal relations, , being liked, and having other people get being liked, and having other people get along.along.

• Need for PowerNeed for PowerThe extent to which an individual desires to The extent to which an individual desires to

control or influence others.control or influence others.


Who are Entrepreneurs?Who are Entrepreneurs?Who are Entrepreneurs?Who are Entrepreneurs?

• Characteristics of entrepreneurs—most share Characteristics of entrepreneurs—most share these common traits:these common traits:Open to experience: they are original Open to experience: they are original

thinkers and take risks.thinkers and take risks.Internal locus of control: they take Internal locus of control: they take

responsibility for their own actions.responsibility for their own actions.High self-esteem: they feel competent and High self-esteem: they feel competent and

capable.capable.High need for achievement: they set high High need for achievement: they set high

goals and enjoy working toward them.goals and enjoy working toward them.


Values, Attitudes, andValues, Attitudes, andMoods and EmotionsMoods and Emotions

Values, Attitudes, andValues, Attitudes, andMoods and EmotionsMoods and Emotions

• ValuesValuesDescribe what managers try to achieve Describe what managers try to achieve

through work and how they think they should through work and how they think they should behave.behave.

• AttitudesAttitudesCapture managers’ thoughts and feelings Capture managers’ thoughts and feelings

about their specific jobs and organizations.about their specific jobs and organizations.

• Moods and EmotionsMoods and EmotionsEncompass how managers actually feel when Encompass how managers actually feel when

they are managing.they are managing.


Values: Terminal and InstrumentalValues: Terminal and InstrumentalValues: Terminal and InstrumentalValues: Terminal and Instrumental

• Terminal ValuesTerminal ValuesA personal conviction about life-long goalsA personal conviction about life-long goals

• A sense of accomplishment, equality, and self-respect.A sense of accomplishment, equality, and self-respect.

• Instrumental ValuesInstrumental ValuesA personal conviction about desired modes of A personal conviction about desired modes of

conduct or ways of behavingconduct or ways of behaving• Being hard-working, broadminded, capable.Being hard-working, broadminded, capable.

• Value SystemValue SystemThe terminal and instrumental values that are The terminal and instrumental values that are

the guiding principles in an individual’s life.the guiding principles in an individual’s life.


Terminal and Terminal and Instrumental Instrumental

ValuesValues

Terminal and Terminal and Instrumental Instrumental

ValuesValues

Figure 2.3

Source: Rokeach, The Nature of Human Values (New York: Free Press, 1973).


AttitudesAttitudesAttitudesAttitudes

• AttitudesAttitudesA collection of feelings and beliefs.A collection of feelings and beliefs.

• Job SatisfactionJob SatisfactionA collection of feelings and beliefs that A collection of feelings and beliefs that

managers have about their current jobs.managers have about their current jobs.• Managers high on job satisfaction have a positive Managers high on job satisfaction have a positive

view of their jobs. view of their jobs.

• Levels of job satisfaction tend increase as managers Levels of job satisfaction tend increase as managers move up in the hierarchy in an organization.move up in the hierarchy in an organization.

Devotion to work


Sample Items Sample Items from Two from Two

Measures of Measures of SatisfactionSatisfaction

Sample Items Sample Items from Two from Two

Measures of Measures of SatisfactionSatisfaction

Figure 2.4

Source: R.B. Dunham and J. B. Herman, “ Development of a Female Face Scale for Measuring Job Satisfaction.” Journal of Applied Psychology 60 (1975): 629–31.

-2-1

0

12


Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)

• Organizational Organizational CitizenshipCitizenship Behaviors BehaviorsBehaviors that are not required of Behaviors that are not required of

organizational members but that help the organizational members but that help the firm in gaining a competitive advantage.firm in gaining a competitive advantage.

• Managers with high satisfaction are more likely Managers with high satisfaction are more likely perform these “above and beyond the call of duty” perform these “above and beyond the call of duty” behaviors.behaviors.

• Managers who are satisfied with their jobs are less Managers who are satisfied with their jobs are less likely to quit.likely to quit.

Emphasis of theory Z

The Isolated, or unappreciated feeling


Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)Attitudes (cont’d)

• Organizational CommitmentOrganizational CommitmentThe collection of feelings and beliefs that The collection of feelings and beliefs that

managers have about their organization managers have about their organization as a as a wholewhole

• Committed managers are loyal to and are Committed managers are loyal to and are proudproud of of their firms.their firms.

• Commitment can lead to a strong organizational Commitment can lead to a strong organizational culture.culture.

• Commitment helps managers perform their Commitment helps managers perform their figurehead and spokesperson roles.figurehead and spokesperson roles.

• The commitment of international managers is affected The commitment of international managers is affected by job security and personal mobility.by job security and personal mobility.


A Measure of A Measure of Organizational Organizational CommitmentCommitment

A Measure of A Measure of Organizational Organizational CommitmentCommitment

Figure 2.5

Source: L. W. Porter and F. J. Smith, “Organizational Commitment Questionnaire,” in J. D. Cook, S. J. Hepworth, T. D. Wall, and P. B. Warr, eds., The Experience of Work: A Compendium and Review of 249 Measures and Their Use (New York: Academic Press, 1981), 84–86.


Moods and EmotionsMoods and EmotionsMoods and EmotionsMoods and Emotions

• MoodMoodA feeling or state of mind.A feeling or state of mind.

• Positive moods provide excitement, elation, and Positive moods provide excitement, elation, and enthusiasm.enthusiasm.

• Negative moods lead to fear, distress, and Negative moods lead to fear, distress, and nervousness.nervousness.

• Current situations and a person's basic outlook affect Current situations and a person's basic outlook affect a person’s current mood.a person’s current mood.

A manager’s mood affects their treatment of A manager’s mood affects their treatment of others and how others respond to them.others and how others respond to them.

• Subordinates perform better and relate better to Subordinates perform better and relate better to managers who are in a positive mood.managers who are in a positive mood.


A Measure of Positive and Negative Mood at A Measure of Positive and Negative Mood at WorkWork

A Measure of Positive and Negative Mood at A Measure of Positive and Negative Mood at WorkWork

Figure 2.6Source: A. P. Brief, M. J. Burke, J. M. George, B. Robinson, and J. Webster, “ Should Negative Affectivity Remain an Unmeasured Variable in the Study of Job Stress?” Journal of Applied Psychology 73 (1988): 193–98.


Emotional IntelligenceEmotional IntelligenceEmotional IntelligenceEmotional Intelligence

• Emotional IntelligenceEmotional IntelligenceThe ability to understand and manage one’s The ability to understand and manage one’s

own moods and emotions and the moods and own moods and emotions and the moods and emotions of other people.emotions of other people.

• Assists managers in coping with their own emotions.Assists managers in coping with their own emotions.

• Helps managers carry out their interpersonal roles of Helps managers carry out their interpersonal roles of figurehead, leader, and liaison.figurehead, leader, and liaison.

EQ: Emotion Quotient


Organizational CultureOrganizational CultureOrganizational CultureOrganizational Culture

• Organizational CultureOrganizational CultureThe set of The set of sharedshared values, norms, standards for values, norms, standards for

behavior, and shared expectations that behavior, and shared expectations that influence the way in which individuals, groups, influence the way in which individuals, groups, and teams interact with each other and and teams interact with each other and cooperate to achieve organizational goals.cooperate to achieve organizational goals.

• Attraction-Selection-AttritionAttraction-Selection-Attrition Framework FrameworkA model that explains how personality may A model that explains how personality may

influence organizational culture.influence organizational culture.• Founders of firms tend to hire employees whose Founders of firms tend to hire employees whose

personalities that are to their own, which may or may personalities that are to their own, which may or may not benefit the organization over the long-term.not benefit the organization over the long-term.

Documents

Chap002 (1)