© Copyright 2004 McGraw-Hill. All rights reserved.2–12–1 EntrepreneurshipEntrepreneurship EntrepreneurshipEntrepreneurship  The mobilization of resources to take advantage of an opportunity to provide customers with new and improved goods and services.  Entrepreneurship differs from management: Management encompasses all the decision making necessary to plan, organize, lead, and control resources.Management encompasses all the decision making necessary to plan, organize, lead, and control resources.

© Copyright 2004 McGraw-Hill. All rights reserved.2–22–2 EntrepreneursEntrepreneurs EntrepreneursEntrepreneurs  Individuals who notice opportunities and take the responsibility for mobilizing the resources necessary to produce new and improved goods and services. Entrepreneurs start new businesses and carry out all of the management functions.Entrepreneurs start new businesses and carry out all of the management functions. Entrepreneurs assume all of the risks for losses and receive all of the returns (profits) from their ventures.Entrepreneurs assume all of the risks for losses and receive all of the returns (profits) from their ventures.

© Copyright 2004 McGraw-Hill. All rights reserved.2–32–3 Entrepreneurship (cont’d) IntrapreneursIntrapreneurs  Individuals (managers, scientists, or researchers) who work inside an existing organization and notice an opportunity for product improvements and are responsible for managing the product development process. Intrapreneurs frustrated with the lack of support or opportunity at their firm often leave and form their own new ventures.Intrapreneurs frustrated with the lack of support or opportunity at their firm often leave and form their own new ventures.

© Copyright 2004 McGraw-Hill. All rights reserved.2–42–4 Personality Traits Personality TraitsPersonality Traits  Enduring tendencies to feel, think, and act in certain ways  Characteristics that influence how people think, feel and behave on and off the job  The personalities of managers account for the different approaches that managers adopt to management.  Traits are viewed as continuums (from high to low) along which individuals fall.

© Copyright 2004 McGraw-Hill. All rights reserved.2–52–5 The Big Five Personality Traits Figure 2.1

© Copyright 2004 McGraw-Hill. All rights reserved.2–62–6 Who are Entrepreneurs? Characteristics of entrepreneurs—most share these common traits:Characteristics of entrepreneurs—most share these common traits:  Open to experience: they are original thinkers and take risks.  Internal locus of control: they take responsibility for their own actions.  High self-esteem: they feel competent and capable.  High need for achievement: they set high goals and enjoy working toward them.

© Copyright 2004 McGraw-Hill. All rights reserved.2–72–7 Values, Attitudes, and Moods and Emotions ValuesValues  Describe what managers try to achieve through work and how they think they should behave. AttitudesAttitudes  Capture managers’ thoughts and feelings about their specific jobs and organizations. Moods and EmotionsMoods and Emotions  Encompass how managers actually feel when they are managing.

© Copyright 2004 McGraw-Hill. All rights reserved.2–82–8 Terminal and Instrumental Values Figure 2.3 Source: Rokeach, The Nature of Human Values (New York: Free Press, 1973).

© Copyright 2004 McGraw-Hill. All rights reserved.2–92–9 AttitudesAttitudes AttitudesAttitudes  A collection of feelings and beliefs. Job SatisfactionJob Satisfaction  A collection of feelings and beliefs that managers have about their current jobs. Managers high on job satisfaction have a positive view of their jobs.Managers high on job satisfaction have a positive view of their jobs. Levels of job satisfaction tend increase as managers move up in the hierarchy in an organization.Levels of job satisfaction tend increase as managers move up in the hierarchy in an organization.

© Copyright 2004 McGraw-Hill. All rights reserved.2–10 Attitudes (cont’d) Organizational Citizenship BehaviorsOrganizational Citizenship Behaviors  Behaviors that are not required of organizational members but that help the firm in gaining a competitive advantage. Managers with high satisfaction are more likely perform these “above and beyond the call of duty” behaviors.Managers with high satisfaction are more likely perform these “above and beyond the call of duty” behaviors. Managers who are satisfied with their jobs are less likely to quit.Managers who are satisfied with their jobs are less likely to quit.

© Copyright 2004 McGraw-Hill. All rights reserved.2–11 Attitudes (cont’d) Organizational CommitmentOrganizational Commitment  The collection of feelings and beliefs that managers have about their organization as a whole Committed managers are loyal to and are proud of their firms.Committed managers are loyal to and are proud of their firms. Commitment can lead to a strong organizational culture.Commitment can lead to a strong organizational culture. Commitment helps managers perform their figurehead and spokesperson roles.Commitment helps managers perform their figurehead and spokesperson roles. The commitment of international managers is affected by job security and personal mobility.The commitment of international managers is affected by job security and personal mobility.

© Copyright 2004 McGraw-Hill. All rights reserved.2–12 Moods and Emotions MoodMood  A feeling or state of mind. Positive moods provide excitement, elation, and enthusiasm.Positive moods provide excitement, elation, and enthusiasm. Negative moods lead to fear, distress, and nervousness.Negative moods lead to fear, distress, and nervousness. Current situations and a person's basic outlook affect a person’s current mood.Current situations and a person's basic outlook affect a person’s current mood.  A manager’s mood affects their treatment of others and how others respond to them. Subordinates perform better and relate better to managers who are in a positive mood.Subordinates perform better and relate better to managers who are in a positive mood.

© Copyright 2004 McGraw-Hill. All rights reserved.2–13 Emotional Intelligence Emotional IntelligenceEmotional Intelligence  The ability to understand and manage one’s own moods and emotions and the moods and 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 figurehead, leader, and liaison.Helps managers carry out their interpersonal roles of figurehead, leader, and liaison.