APEC AppendixC

							         Wilder Ferreira, M.S.                 Clemson University, SC


                                    Welcome!

                                         APEC 319
                                   Agribusiness Operations
                                        Management



Strategic Thinking and Decision Analysis in the Agribusiness Firm.
Leadership, Motivation
     and Change




                    Appendix C
                Leadership

• Leadership is not the same as management.
• Management is about: planning, organizing,
  staffing, leading, and controlling.
What is leadership?

Peter Drucker : "The only definition of a leader is
someone who has followers."

John C Maxwell : "leadership is influence - nothing
more, nothing less."

                                                 Appendix C
    More on Leadership

• Leadership is a process by which a
  person influences others to accomplish
  an objective and directs the
  organization in a way that makes it
  more cohesive and consistent.




                                 Appendix C
      Traits of a Leader
1. Makes others feel important.
2. Promotes a vision.
3. Follows the golden rule: treat others as
   you would like to be treated.
4. Admits mistakes.
5. Criticizes others only in private.
6. Stays close to the action.
7. Inspires through example.
8. Succeeds in getting others to follow.
                                      Appendix C
           Types of
           Leaders
  Autocratic Leaders: They make most decisions
  instead of allowing their followers to make
  them. These leaders are usually thought of as
  “pushers,” somewhat like the image of the
  military drill instructor.

• An autocratic style works when there is no need for
  input on the decision, where the decision would not
  change as a result of input, and where the motivation
  of people to carry out subsequent actions would not
  be affected whether they were or were not involved in
  the decision-making.
                                              Appendix C
           Types of
           Leaders
  Democratic Leaders: They involve their
  followers heavily in the decision process. They
  use group involvement in setting the group’s
  basic objectives, establishing strategies, and
  determining job assignments.
• Democratic decision-making is usually appreciated
  by the people, especially if they have been used to
  autocratic decisions with which they disagreed. It
  can be problematic when there are a wide range of
  opinions and there is no clear way of reaching an
  equitable final decision.
                                              Appendix C
          Types of
          Leaders
Laissez-faire Leaders: These leaders are
“loose” and permissive and let followers do
basically what they want, although they may
still be responsible for the outcome.
• Laissez-faire works best when people are capable
  and motivated in making their own decisions, and
  where there is no requirement for a central
  coordination, for example in sharing resources
  across a range of different people and groups.


                                          Appendix C
   Leaders Orientation




Any Leadership Skills?
                         Appendix C
      Factors that Influence
       Leadership behavior
                            MACRO
                                                       Historical
   Economic                                               And
   Situation                 Superior’s                 Cultural
                            expectations
                            and behavior



                            Leadership        Leader’s
     Organizational level
                                             background
       and group size        Behavior
                                            and personality


                            Subordinate’s
                            Expectations
Organizational              and behavior
                                                       Industry
                              MICRO

                                                       Appendix C
Motivation




             Appendix C
Motivation




             Appendix C
Motivation




             Appendix C
    What motivates people?

•   Incentive (external stimulus).
•   Motive (internal stimulus).
•   Goal (the final picture).
•   Desire (wish for possession).
•   Spiritual (God’s will).




                                     Appendix C
Motivation in Management
          (Now)

1.   “Salary”
2.   “Promotion possibilities”
3.   “Recognition”
4.   “Working conditions”
5.   “Job security”
6.   “Job safety”
7.   “Job supervision”

                                 Appendix C
Motivation in Management
        (10 Years)

1.   “Recognition”
2.   “Salary”
3.   “Promotion possibilities”
4.   “Job supervision”
5.   “Working conditions”
6.   “Job safety”
7.   “Job security”

                                 Appendix C
Motivation in Management
        (30 Years)

1.   “Job security”
2.   “Job safety”
3.   “Working conditions”
4.   “Salary”
5.   “Job supervision”
6.   “Recognition”
7.   “Promotion possibilities”

                                 Appendix C
Motivation
- Money -




             Appendix C
- Productivity -




                   Appendix C
            Incentives
             - Money -

• Money is a powerful force in motivation
  if it is related directly to achievement
  and performance.
• Other factors influence behavior and job
  satisfaction other than money.
• When people believe their efforts will
  lead to the desired reward, they will
  produce it with superior performance.
                                  Appendix C
             Incentives
           - Promotion -

• “What is in it for me” type of behavior.
• People’s expectations of a promotion
  due to hard work and superior
  performance will induce greater effort.
• Reinforcing good behavior
  (showing up on time) also
  encourages superior
  performance .
                                    Appendix C
             Incentives
              - Equity -
• Adverse motivational effects on
  performance occurs when inequity
  exists or is perceived.
• People will compare:
  The inputs they bring to the job in the form of
  education, experience, training and effort.
  The outcomes (rewards) they receive as
  compared to those of other employees in
  comparable jobs.
                                          Appendix C
          Expectancy
        - Self-Concept -

• A person's perception of himself or
  herself.
• Sometimes a conflict between the real
  self and the other components (ideal
  and public self) results in anxiety.
• This can be detrimental to performance.



                                 Appendix C
           Expectancy
         - Self-Concept -

• Self-concept requires consistency, stability,
  and tends to resist change. If self-concept
  changed readily, the individual would lack a
  consistent and dependable personality.
• Self-concept development is a continuous
  process. In the healthy personality there is
  constant assimilation of new ideas and
  expulsion of old ideas throughout life.
• Self-concept continuously guards itself
  against loss of self-esteem (failures).

                                        Appendix C
Overcoming Resistance
      to Change




                  Appendix C
 Overcoming Resistance
       to Change

• Effective change occurs only when
  organization members modify their
  behavior in the desired direction.
• Resistance to change may not be bad.
  It allows management to reexamine the
  proposed change and see whether a
  solution acceptable to all can be found.


                                  Appendix C
Behavioral Change
  Permanent ?




               Appendix C
Why Change Takes Time

People are slow learners: we often have to
relearn a lesson forty or fifty times to really get
it.
People have a lot to unlearn: new lessons face
old habits, patterns, and practices that need to
be removed and replaced.
People stick to their thoughts: changing
behavior is motivated by belief and the way we
think.

                                             Appendix C
Why Change Takes Time

People are afraid to face the truth: we often
start changing our attitudes when we accept
our faults and failures.
People are afraid of losing something: every
change involves a loss of some kind and we
often try to avoid it.
New habits take time to develop: if people
practice something over time, they become
good at it.

                                           Appendix C
        Organizational
        Development

• Many organizations attempt to cope
  with changes by developing innovative
  ways not only to deal with change but
  also to promote it.
• OD is a process of change in an
  organization’s culture through the
  utilization of behavioral science
  knowledge.

                                 Appendix C
        Organizational
       Development (OD)
Increase the level of trust and support among
organization members.

Create an environment in which authority is based on
expertise and knowledge.
Increase the level of personal - and group –
responsibility in planning and implementation.

Increase the openness of communication between
organization members.

Find synergistic solutions to problems with greater
frequency.
                                                 Appendix C
        Organizational
        Development

• Synergy is the action of two or more
  organisms working together to achieve
  an effect of each alone is incapable.
• If we were to discuss synergy in
  economic terms, we would describe it
  as an increasing ratio of the Marginal
  Physical Product.


                                 Appendix C
Marginal Physical Product


MP AP
                             MP = AP when AP is max

        MP above AP



                      MP below AP
                                              AP
                                       MP



                                             Appendix C
Conflict Resolution




                  Appendix C
Conflict Resolution




                  Appendix C
Conflict Resolution




                  Appendix C
    Causes of Conflict

Communication: misunderstandings due to
semantics, unfamiliar language, or ambiguous
or incomplete information.
Structure: power struggles between
departments with conflicting objectives and
reward systems, competition for resources, etc.
Personal: incompatibility of personal goals or
social values of employees, and dogmatism or
authoritarianism may lead to conflict.

                                          Appendix C
     Conflict Resolution

• Successful conflict resolution occurs by
  listening to and providing opportunities to
  meet each side's needs, and adequately
  address their interests so that they are each
  satisfied with the outcome.
• The key is use appropriate techniques and/or
  skills to open and/or improve dialogue
  between disputants.


                                       Appendix C
      Conflict Resolution
             Styles
Competitive: operates from a position of power
(position, rank, expertise, or persuasive ability)

Collaborative: tries to meet the needs of all people
involved, acknowledging that everyone is important.
Compromising: finds a solution that partially satisfies
everyone. Everyone is expected to give up something.

Accommodating: when peace more valuable, solution
is found at the expense of one’s own needs.

Avoiding: evades the conflict entirely when solution is
not forthcoming.
                                                     Appendix C
        Final Thoughts

Cultivating harmony takes honesty: people
can build fellowship by speaking the truth.

Cultivating harmony takes humility: people
with stubborn pride destroy fellowship. Pride
builds walls, humility builds bridges.
Cultivating harmony takes courtesy: people
who respect differences, someone’s feelings,
and are patient with other’s faults will become
effective leaders.
                                          Appendix C
        Final Thoughts

Cultivating harmony takes confidentiality:
people will open up and share their deepest
needs and mistakes if total secrecy exists.
Cultivating harmony takes frequency:
fellowship takes time to develop. A reliable
and efficient group is not built on convenience,
but on the conviction that interdependency is
needed in order to lessen conflicts and
resistance to change and to develop true
leaders.
                                           Appendix C