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Managing Work and Leading People

Beginner Investing • 10 min

What this lesson is about

Management is four repeating activities. Leadership is a different job, and paying people more does not reliably produce either.

Key termsPlanningOrganisingLeadingControllingextrinsic

3 parts · a quick check after each · then the quiz

Part 1 of 3

Management, involves, four, key, activities., Planning, sets, goals, and, the, way, to, reach, them., Organising, brings, together, people,, money,, and, equipment, to, support, that, plan., Leading, inspires, people, to, take, action., Controlling, checks, what, happened, against, what, was, planned, and, makes, adjustments., The, loop, is, more, important, than, the, list., Controlling, feeds, back, into, planning., A, manager, who, doesn’t, close, that, loop, isn’t, really, managing;, they’re, just, giving, orders.

Management, and, leadership, are, different, roles,, even, if, the, same, person, often, fills, both., Management, is, about, dealing, with, complexity., It, involves, schedules,, budgets,, staffing,, and, keeping, a, known, system, running, smoothly., Leadership,, on, the, other, hand,, is, about, navigating, change., It’s, about, setting, a, direction,, convincing, people, it’s, worthwhile,, and, maintaining, momentum, when, things, get, tough., An, organisation, that, is, well, managed, but, poorly, led, moves, smoothly, toward, the, wrong, destination., One, that, is, well, led, but, poorly, managed, knows, its, goal, but, fails, to, reach, it.

What motivates peopleRewards aimed above the level that is missing do very little.

Quick check

The four functions of management are planning, organising, leading and

Part 2 of 3

When, it, comes, to, motivation,, the, key, distinction, is, extrinsic, versus, intrinsic., Extrinsic, motivation, comes, from, outside, the, job., Think, pay,, bonuses,, promotions,, or, avoiding, trouble., Intrinsic, motivation, comes, from, the, work, itself., This, includes, interest,, challenge,, autonomy,, and, the, satisfaction, of, getting, better, at, something, that, matters.

Extrinsic, rewards, are, effective, for, simple,, well-defined, tasks, where, results, are, easy, to, measure., But, they, don’t, work, as, well, for, tasks, that, require, judgment,, creativity,, or, collaboration., Here’s, a, surprising, fact:, paying, people, for, something, they, already, enjoy, can, reduce, their, motivation., Why?, It, turns, the, activity, into, work, done, for, money, rather, than, something, they, chose, to, do, for, its, own, sake., This, effect, is, real,, often, unexpected,, and, something, examiners, love, to, highlight.

Quick check

A manager who sets plans and issues instructions but never measures outcomes against them is failing at

Part 3 of 3

That’s, why, non-financial, motivators, shouldn’t, be, seen, as, a, budget-saving, alternative., Genuine, responsibility,, control, over, how, work, is, done,, recognition,, and, opportunities, for, advancement, can, change, behavior, more, effectively, than, another, raise,, especially, when, pay, is, already, reasonable.

Insider, Angle:, The, default, answer, students, give, for, motivation, issues, is, "pay, them, more.", Sometimes, that’s, correct., If, pay, is, below, market, value, or, doesn’t, match, the, demands, of, the, job,, nothing, else, will, fix, it., But, if, the, scenario, indicates, that, people, are, already, paid, fairly, and, still, feel, disengaged,, more, money, won’t, help., In, that, case,, read, the, scenario, carefully, to, see, if, the, pay, issue, is, actually, mentioned, before, jumping, to, conclusions, about, needing, to, increase, pay.
Try, This:, Think, of, something, you, enjoy, doing, and, are, good, at., Picture, being, paid, for, each, unit, you, complete,, with, a, supervisor, checking, the, quality., Write, down, honestly, whether, you’d, do, more, or, less, of, it,, and, what, specifically, changed.

Quick check

The clearest distinction between management and leadership is that management deals mainly with

Quiz

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