PRINCIPLES OF MANAGEMENTSr. No. Chapter No. Chapter Heading1 1 Management: Science, Theory and Practice (27th September 2010)2 4 Essentials of Planning and Managing by Objectives (4th Oct)3 5 Strategies, Policies and Planning Premises (11th Oct)4 6 Decision Making (18th Oct)

5 7 The Nature of Organizing, Entrepreneuring, and Reengineering (25th Oct)

6 8 Organization Structure: Departmentation (1st Nov)7 9 Line/ Staff Authority, Empowerment and Decentralization (15th Nov)8 10 Effective Organizing and Organization Culture (22nd Nov)9 14 Human Factors and Motivation

10 15 Leadership11 16 Committees, Teams and Group Decision Making12 18 The System and Process of Controlling (29th Nov)

Sessional Evaluation External Evaluation15 15 20 50 50

Quiz per Class Assignment & Presentation Mid-term Total Sessional External Exam

Planning

O r g a n i z i ng

Leading

C o n t r o l l i n g

GROUP WISE ASSIGNMENTS1. Compensatory assignments2. Classes left? Sunday class? Next few classes3. Project (4 groups of 7 each) 15 marks

1. Portfolio Matrix with TOWS (Chap 3)2. Planning stages of a new company (Chap 2,3)3. Departmentation (chap 6) and culture(chap 8)4. Controls (chap 12)

4. Mark dates, assignment to students

Human Factors and Motivationhttp://www.slideshare.net/Subjectmaterial

Chapter 9

TABLE OF CONTENTS1. HUMAN FACTORS IN MANAGING2. MOTIVATION3. AN EARLY BEHAVIORAL MODEL: MCGREGOR’S THEORY X

AND THEORY Y4. MASLOW’S HIERARCHY OF NEEDS THEORY5. ALDERFER’S ERG THEORY6. HERTZBERG’S MOTIVATION-HYGIENE THEORY7. THE EXPECTANCY THEORY OF MOTIVATION8. EQUITY THEORY9. GOAL SETTING THEORY OF MOTIVATION10. SKINNER’S REINFORCEMENT THEORY11. MCCLELLAND’S NEEDS THEORY OF MOTIVATION12. SPECIAL MOTIVATIONAL TECHNIQUES13. JOB ENRICHMENT14. A SYSTEMS AND CONTINGENCY APPROACH TO MOTIVATION

QUIZWHAT MOTIVATES ME… WORK OR NO WORK

What is LeadingLeading:

The process of influencing people so that they will contribute to organizational and group goals

Motivation:Motivation is getting others to do something

because they want to do it. Management is the process of designing and

maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.

HUMAN FACTORS IN MANAGINGMultiplicity of rolesNo Average PersonThe importance of personal dignityConsideration of the whole person

MOTIVATIONMotive: Why an individual wants to workPrimary needs:

Physiological needs such as water, air food, sleep and shelter

Secondary needs:Self esteem, status, affiliation with others,

affection, giving, accomplishment and self assertion

Motivation:A general term which applies to the entire class of

drives, desires, needs, wishes, and similar forces

AN EARLY BEHAVIORAL MODEL: MCGREGOR’S THEORY X AND YThese theories are two sets of assumptions about

the nature of peopleTHEORY X ASSUMPTIONS

Average human beings have an inherent dislike of work and will avoid it if they can

Because of this human characteristic of disliking work, most people must be coerced, controlled, directed and threatened with punishment to get them to put forth adequate effort towards the achievement of objectives

Average human beings prefer to be directed, wish to avoid responsibility, have relatively little ambition, and want security above all.

AN EARLY BEHAVIORAL MODEL: MCGREGOR’S THEORY X AND Y

THEORY Y ASSUMPTIONSThe expenditure of mental and physical effort in work is as

natural as play or restExternal control and the threat of punishment are not the

only means for producing effort towards objectives. People will perform those jobs to which they are committed.

Commitment varies as the rewards or their sizes varyAverage human beings learn under normal conditions, not

only to accept responsibility but also to seek itThe capacity to exercise a relatively high degree of

imagination, ingenuity and creativity in the solution of organizational problems is widely distributed in the population

The intellectual potential of the average human being is only partially utilized

AN EARLY BEHAVIORAL MODEL: MCGREGOR’S THEORY X AND Y

CLARIFICATIONS:First: These are assumptions, not based on

reality or researchSecond: The effective manager recognizes te

dignity and capabilities as well as the limitations of people and adjusts behavior as demanded by the situation

Third: These are completely different views of people and are not based on any scale

Fourth: Theory Y is not against the use of authority, rather it uses authority as one of the many methods of leading

MASLOW’S HIERARCHY OF NEEDS THEORY“When one set of needs is satisfied, this kind of

need ceases to be a motivator”Physiological Needs: For example; food, water,

warmth, shelter and sleep. Security or Safety Needs: physical danger, fear of

losing job, property, food or shelterAffiliation or acceptance Needs: These are social

needs, or belongingness needs and play a very important part in human life

Esteem Needs: for example; power, prestige, status and self confidence etc

Self actualization Needs: to maximize one’s potential and to accomplish something

ALDERFER’S ERG THEORYE: Existence needs are those which are basic

physiological needsR: Relatedness needs pertain to satisfactorily

relating to othersG: Growth needs referring to self development,

creativity, growth and competenceOne may be motivated by several needs at the

same timeWhen people experience frustration on one

level, they may focus on the lower level needs

HERZBERG’S MOTIVATION-HYGIENE THEORY

According to Herzberg’s two factor theory; Dissatisfiers, or hygiene or job content factors are not motivators

While satisfiers are motivators and are related to job content

Satisfiers: Growth oriented needs and lead to job satisfaction and then high performance

Dissatisfiers: Existence and socialization needs and lead to no dissatisfaction and routine performance

Satisfaction vs. DissatisfactionMotivators

Challenging workAchievement

GrowthRecognition

AdvancementResponsibility

HygieneStatus

Interpersonal relationsQuality of Supervision

CompensationFringes

Company policy and administration

Work Conditions

Expectancy theory states that the strength of an individual's motivation will depend on the extent to which they expect the results of their efforts to contribute towards their personal needs or goals.

VRoom suggested that the strength of an individual's motivation is the product of two factors.

1. The strength of preference for a certain outcome - Vroom called this 'valence' stating that it could be positive, negative or zero - since outcomes might be desired, avoided or considered with indifference - 2. The expectation that a particular outcome will result from certain behaviour - Vroom called this 'subjective probability' or 'expectancy', which refers to the individual's perception of the link between behaviour and outcome. It is represented by a number between 1 [probable] and 0 [no chance] -

THE EXPECTANCY THEORY OF MOTIVATION

Vroom – example 1

+ 25th

December=

V = Santa brings presents

E = Christmas Day F = Good Behaviour

Vroom – example 1

+ =

V = reaching targets E = performance related pay agreement

F = efficient working

How Expectancy Theory Works

Expectancy

Effort - Performance Link

E=0

No matter how much effort you put in, probably not possible

to memorise the text in 24 hours

Instrumentality

Performance - Rewards Link

I=0

Your tutor does not looklike someone who has £1 million

Valence

Rewards - Personal Goals Link

V=1

There are a lot of wonderful things you could do with £1 million

Your tutor offers you £1 million if you memorise the textbook by tomorrow morning.

Conclusion: Though you value the reward, you will not be motivated to do this task.

Expectancy theoryMotivation (M), expectancy (E), instrumentality

(I), and valence (V) are related to one another in a multiplicative fashion:

M = E x I x VIf either E, I, or V is low, motivation will be low.

Needs (Internal stimuli)

Incentive(External Stimuli)

Perception EPPIIN

Abilities and traits

Motivation/ Effort

Satisfaction

PerceivedAnd Equitable

Intrinsic & Extrinsic Reward

Performance

Productivity

EP: Effort performance, PI: Performance Incentive, IN: Incentive -Needs

EQUITY THEORYAdams states that employees examine how fairly they have

been treated, relative to the inputs, in comparison with the treatment received by others.

A compatible input-output ratio with others makes him satisfied

He feels guilty, if he is on the higher sideHe gets dissatisfied, if he finds himself under rewarded

Outcomes by a person/ Inputs by a person = Outcomes by another person/ Inputs by another person

Cognitive distortion of inputs & outputs – the employee may distort facts for example how hard they are really working or the relevance of their experience or qualifications

Leaving the field – absenteeism, resignation, request for transfer

Changes to inputs – the employee may attempt to change inputs without changing outputs e.g. rates of pay, holidays, status & recognition

Changing the Object of Comparison – the employee may begin to compare him/herself with different and inappropriate members of the organisation

Changes to inputs – the employee decreases the level of either the amount or quality of their work

Acting on others – the employee may attempt to persuade others to lower their productivity or try to force them out

GOAL SETTING THEORY OF MANAGEMENT

Clear goals if accepted are motivatingThe objectives must be verifiable, meaningful, clear and

attainable or they must be SMART (Specific, Measurable, Attainable, Realistic & Time bound)

Un realistic goals are de-motivatingTo gain commitment to goals, true participation in setting

them is essentialPlanning Actions

Implementation

Control and appraisal

Setting objectives

SKINNER’S REINFORCEMENT THEORYPositive reinforcement or behavior modification: Individuals

can be motivated by proper design of their work environment and by praise for their performance, while punishment for poor performance produces negative results

MCCLELLAND’S NEEDS THEORY OF MOTIVATIONThe basic motivating needs are:

Need for powerNeed for AffiliationNeed for Achievement

SPECIAL MOTIVATIONAL TECHNIQUES1. Money (status, power, monetary means etc)2. Other rewards consideration

1. Intrinsic Rewards1. A feeling of accomplishment and self actualization

2. Extrinsic Rewards1. It includes benefits, recognition, status symbols and

money3. Participation4. Quality of Working Life

JOB ENRICHMENT1. Job enrichment:

1. Building into jobs a higher sense of challenge and achievement

2. Job Enlargement:1. Enlarging the scope of the job by removing

dullness of repetitive tasks and adding similar tasks without enhancing responsibility