Leaders shouldn’t attach moral significance to their ideas: Do that, and you can’t compromise.

The leaders who work most effectively, it seems to me, never say “I.” And that’s not because they have trained themselves not to say “I.” They don’t think “I.” They think “we”; they think “team.” They understand their job to be to make the team function. They accept responsibility and don’t sidestep it, but “we” gets the credit. This is what creates trust, what enables you to get the task done.

“Erroneous assumptions can be disastrous.”

“The most serious mistakes are not being made as a result of wrong answers. The truly dangerous thing is asking the wrong questions.”

Management means, in the last analysis, the substitution of thought for brawn and muscle, of knowledge for folkways and superstition, and of cooperation for force. It means the substitution of responsibility for obedience to rank, and of authority of performance for the authority of rank.

What is the manager’s job? It is to direct the resources and the efforts of the business toward opportunities for economically significant results. This sounds trite — and it is. But every analysis of actual allocation of resources and efforts in business that I have ever seen or made showed clearly that the bulk of time, work, attention, and money first goes to problems rather than to opportunities, and, secondly, to areas where even extraordinarily successful performance will have minimal impact on results.What is the major problem? It is fundamentally the confusion between effectiveness and efficiency that stands between doing the right things and doing things right. There is surely nothing quite so useless as doing with great efficiency what should not be done at all. Yet our tools especially our accounting concepts and detail focus on efficiency. What we need is (1) a way to identify the areas of effectiveness (of possible significant results), and (2) a method for concentrating on them.

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1.0  Market Risk which relates to business environment, industry,  political situation,

2.0  Liquidity Risk which relates to cash-flow, funding, capital,

3.0  Credit Risk which relates to customers’ reputation, settlement, accounts,  payment,

4.0  Operational or Process Risk which relates to the systems, policies and procedures, internal controls and management supervision

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It is imperative that managers need to understand the importance of managing the risk in an organization. By doing so, numerous benefits are reaped like for example:

• Once we have established a sound risk management culture into the organisation’s business framework, it promote productivity in the sense that senior management and line managers can focus more on their primary responsibilities instead of squandering resources on “fire-fighting” the challenges that may arise due to the lack of such practices,

• Its strengthen the business planning processes by allowing decision-makers to make contingency plans to avert possible “ mishaps” thereby producing more realizable opportunities for the organization on the whole and leading to increased shareholder value,

• It’s enhance shareholder value as it assist in reducing expenses as there are many direct and indirect cost of risk.

• Management is able to avoid paying the direct and indirect of risk namely:
• For Direct cost of risk, it comprises: cost of replacement, loss of revenue, damages paid.
• Indirect cost of risk comprises: loss of market, loss of reputation, management time, paid absence from work, effects on insurance premiums, product or service recall, write-offs of plant or material, medical expenses and effect on morale,
• It’s provide a sort of peace of mind for senior management,

• It’s might be matter of business survival or failure,

• The reputation of the organization for social responsibility has been enhanced in relation to another organization who ignores risk management which affects the overall community or society,

• With the current emphasis on good corporate governance by outsiders like investors, it’s a must that risk management is a tool to convince outsiders that the company has what it’s take. The presence of sound and effective risk management and controls systems inspires confidence in the investing public and others.

• It safe-guard an organization’s credibility and goodwill.

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Two extreme theories Of Workers’ Work Behavior:

In the workplace, how Does Management Suppose To Apply Mcgregor X & Y Theory

In the case of Theory X:

To achieve organizational objectives, management if based on Theory X should impose a management system of coercion, control and punishment.

In the case of Theory Y:

To achieve organizational objectives, management if based on Theory Y  should provide rewards of varying kinds to motivate the workers . With the proper incentives established, this will create a create a working environment (or culture) where workers can show and develop their creativity.

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Monistic Or Economic Theory postulates that:

1. Motivation is more effective and direct when based upon individual incentives rather than group incentive
2. Incentive is more effective where reward immediately follows the efforts. For example, incentives/bonus paid at the end of the month is more stimulating than paid at the end of the year and

1. Quantum of effort is directly related to the amount of reward. For example, the deliberate marginal increase in reward for added output can motivate people to the same extent as the substantial increase in reward does.

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Mc Clelland’s  Needs Theory Of Motivation

Based on his researches, he advocated the need to group human motivation or needs into the following three categories:

1. The needs for POWER (n/PWR) – most management have high need for power which in turn leads to constructive authoritarianism. The need, combined with needs for achievement or urge for excellence can lead to productive and satisfying results
2. The needs for AFFILIATION (n/AFF) - people with a high need for affiliation usually derive pleasure from being loved and tend to avoid the pain of being rejected by a social group. These sort of people are often seen as ineffective go-getters probably because they are not task oriented enough. This need is present managers, but is seldom dominant in successful individuals
3.  The needs for ACHIEVEMENT (n/ACH) -people with a high need for achievement like personnel responsibility, moderate and calculated risks, feedback on how they are doing. Unless moderated by other needs a high achiever tends to become individualistic to surpass other and success in any organization.

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In brief, they are simply divided into the following factors:

The PHYSICAL factor:

• A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e.g. food, shelter)
• Once these physiological needs have been satisfied, they are no longer a motivator. the individual moves up to the next level

The SECURITY factor:

• Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against unemployment, loss of income through sickness etc)

The SOCIAL factor: 

• Social needs recognise that most people want to belong to a group. These would include the need for love and belonging (e.g. working with colleague who support you at work, teamwork, communication)

The EGO factor:

• Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this

The SELF-ACTUALISATION factor: 

• Self-actualisation is about how people think about themselves – this is often measured by the extent of success and/or challenge at work 

Importance Of Understanding Maslow’s Hierarchy Of Needs:

In an organization, if Management able to understand at which level of needs their workforce/staff are in, then, they can decide on the relevant rewards/incentive to motivate the workforce.

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His two step approaches asked management to review:

• the HYGIENE FACTORS – the need for a business to avoid unpleasantness at work otherwise it cause dissatisfaction amongst the workforce.

• the MOTIVATOR FACTORS -based on an individual’s need for personal growth. These motivator factors create job satisfaction. If they are effective, then they can motivate an individual to achieve above-average performance and effort.

Difference between Maslow and Herzberg’s theory of motivation:

• To a certain extent, there is some similarity between Herzberg’s and Maslow’s models. Both suggest that needs have to be satisfied for the employee to be motivated. For Herzberg argues that only the higher levels of the Maslow Hierarchy (e.g. self-actualisation, esteem needs) act as a motivator. The remaining needs can only cause dissatisfaction if not addressed.

The Hygiene Factors includes the following: 

• Wages, salaries and other financial remuneration
• Company policy and administration
• Working conditions
• Quality of supervision
• Quality of inter-personal relations
• Feelings of job security

 The Motivator Factors includes the following:

•  Status
•  Opportunity for advancement
• Gaining recognition
• Responsibility
• Challenging / stimulating work
• Sense of personal achievement & personal growth in a job

 Implication of Management Applying Hertzberg’s model.

According to Herzberg, management should focus on rearranging work so that motivator factors can take effect. He suggested three ways in which this could be done viz: Job enrichment, Job rotation and Job enlargement

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Motivating the staff is a very critical factor for the success of an organization due to the  following reasons:

• It results in higher output or productivity meaning that given a certain level of resources, a highly motivated workforce will generate very much more than a de-motivated workforce
• It reduces wastages and produce more higher quality works.
• Its motivated staff are generally more pro-active and has greater sense of urgency hence making things happen faster
• Its motivated staff will give their best to the company hence helping management to achieve the organization objectives like achieving sales and profit targets.

[ See all articles under Motivation theories]

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