Principles of Supervision
Solving Problems and Decision Making
Chapter 7
Learning Goals List the seven steps in the decision-making process Describe expected value analysis Explain the four types of decision styles Identify and explain the common decision-making
errors Describe the two types of decision problems and the
two types of decisions that are used to solve them Explain three different ethical viewpoints Compare and contrast group decision and individual
decision making List three techniques for improving group decision
making
The Decision Making Process Identify the problem Collect relevant information Develop alternatives Evaluate each alternative Select the best alternative Implement the decision Follow up and evaluate
The Decision Making Process
Identify the problem
Evaluatedecision
Implement decision
Collect relevantinformation
Evaluatealternatives
Select bestalternative
Develop alternatives
The Decision Making Process Identify the problem
Discrepancy between an existing and desired state of affairs
Identify the problem not just the symptom
Identify the correct problem Collect relevant information
All facts relevant to the problem Requires quality information
The Decision Making Process Develop alternatives
Creative endeavor that should embrace all alternatives
The more alternatives the better the solution may be
Evaluate each alternative Strengths and weaknesses Cost and time Best case/worst case
The Decision Making Process Select the best alternative
The ingenuity in developing and analyzing alternatives and your risk propensity will play a role
Implement the decision Convey the decision to those affected
and get their commitment Assign responsibilities, allocate
necessay resources, clarify deadlines
The Decision Making Process Follow up and evaluate
Measure results Did it work on the problem you
identified Did it create any new problems or
challenges
The decision process will be used in many situations
Decision Tools Expected value analysis – calculates
the expected value of a particular alternative by weighting its possible outcomes by the possibility of achieving the alternative, then summing up the totals derived from the weighting process Permits decision makers to place a
monetary value on the various consequences of a decision
Decision Tools Decision trees – a diagrammatic
techniques for analyzing a decision by assigning probabilities to various outcomes and calculating payoffs for each Useful for analyzing – hiring, marketing,
investment, equipment purchases Encompasses expected value analysis by
assigning probabilities to each possible outcome
Decision Tools Marginal analysis
Helps decision makers optimize returns or minimize costs by by dealing with the additional cost in a particular decision rather than the average cost
Analyzes decisions in terms of their incremental costs and revenues
Management Information Systems Provides managers with needed and
accurate INFORMATION on a regular and timely basis
Collects raw, unanalyzed facts and figures (data) and turns it into information
The quality of a decision depends on the quality of a manager’s information
Are becoming decentralized – pushed down to the end-users
Information Vs. Data Data – raw, unanalyzed facts such
as names, numbers, or quantities
Information – analyzed and processes data, used by managers to make decisions
End users – users responsible for decision and control of systems
Decision Making Styles Recognize people differ along two
dimensions Way of thinking – logical and rational
vs. intuitive and creative Tolerance for ambiguity – high vs. low
Way of Thinking Some people are logical and
rational, they process information serially
Others are intuitive and creative, they perceive things as whole
Tolerance for Ambiguity Some people have a high need to
structure information in ways that minimize ambiguity
Others are able to process many thoughts at the same time
The Decision Style Model
Analytic
Directive Behavioral
Conceptual
Rational Intuitive
Low
High
Way of Thinking
ToleranceFor
Ambiguity
Directive Style Low tolerance for ambiguity Very efficient and rational May make hasty decisions on little
information without assessing alternatives
Make decisions fast Tend to focus on the short run
Analytical Style Both logical and high tolerance for
ambiguity No snap decisions – they want more
information – to consider alternatives Very deliberate and thoughtful Careful decision-makers with the
ability to adapt or cope with new situations
Conceptual Style High tolerance for ambiguity and
more intuitive than rational Very broad in their
outlook,consider many alternatives
Focus is long-range and they are good at finding creative solutions to problems
Behavioral Style Low tolerance for ambiguity Good interpersonal skills, work well
with others Concern with achievements of
subordinates Attempt to avoid conflict and seek
acceptance
What’s the Point of the 4 Styles Style used
Some supervisors rely on their dominant style
Others can shift their style depending on the situation
Problem solving influenced by the supervisor’s style
What’s the Point of the 4 Styles Education
Can develop rational decision-making skills
Explains why business students, managers and executives tend to score the highest in analytical style
Conflict Arises when styles clash This emphasizes the value of being able
to shift styles, depending on the situation
Ethics In Decision Making Common rationalizations
It’s not really illegal or immoral It’s in my (or the organization’s) best
interest No one will find out (MY Favorite) Since it helps the organization, the
organization will condone and protect me
Three Views on Ethics Utilitarian view Rights view Justice view
Does it providethe greatest goodfor the greatest
Number?
Does it respect therights of theindividuals affected?
Is it fair and equitable?
Ethical questions
Utilitarian View Decisions based solely on the basis
of outcomes Goal is to provide the greatest
good for the greatest number Consistent with the business goals
of efficiency, productivity, and high profits, tends to dominate business decision making
Rights View Decisions emphasize respect and
protecting the basic rights of individuals
Decision making is consistent with fundamental liberties and privileges and privileges as set forth in documents like the bill of rights
Justice View Decisions that seek fair and impartial
distribution of benefits and costs Typically favored by unions as it
justifies paying people the same wage for a given job, regardless of performance differences
Protects the interests of the underrepresented but reduces risk taking, innovation and productivity
Group Decision Making Advantages
Provides more complete information
Generates more alternatives Increases acceptance of a
solution Increases legitimacy
Group Decision Making Disadvantages
Time consuming Minority domination Pressures to conform Ambiguous responsibility
Group Decision MakingAdvantages Vs. Disadvantages
ADVANTAGES
More information
More alternatives
Solution acceptance
Legitimacy
DISADVANTAGES
Time consuming
Minority Domination
Conformity
Ambiguous responsibility
Group Decision Making More accurate Less speed More creative More acceptance
Stimulating Creative Problem Solving Attribute listing – individualized
brainstorming, isolation of major characteristics of traditional alternatives, which are considered in turn and changed in every conceivable way
Stimulating Creative Problem Solving Vertical Thinking – highly rational,
orderly thinking Lateral Thinking – sideways,
nonconsequential thinking Synectics – use of analogies to
make the strange familiar and the familiar strange
Group Decision Making Techniques Brainstorming Nominal group technique Electronic meetings
Brainstorming A technique for overcoming pressures
to conform that retard creative idea development
A process that specifically encourages alternatives – by keeping criticism at bay
Free-wheeling, no holds barred
Nominal Group Technique All members are present but are
required to operate independently, unlike traditional interacting groups
Reduces the term It restricts discussion but does not
restrict independent thinking
Electronic Meetings A group of individuals make decisions
by communicating anonymously on computer networks
Blends nominal group technique with sophisticated computer technology
Excellent way to exchange information and make decisions
Principles of Supervision
Motivating Your EmployeesChapter 8
Learning Goals Define motivation Identify and define five personality characteristics
relevant to understanding the behavior of employees at work
Explain the elements and the focus of the three early theories of motivation
Identify the characteristics that stimulate the achievement drive in high achievers
Identify the three relationships in expectancy theory that determine an individual’s level of effort
List actions a supervisor can take to maximize employee motivation
Describe how supervisors can design individual jobs to maximize employee performance
Explain the effect of workforce diversity on motivating employees
What Is Motivation? The willingness to do something Is conditioned by the action’s
ability to satisfy some need for the individual
Need A physiological or psychological
deficiency that makes certain outcomes seem attractive
An unsatisfied need (need deficiency) creates tension
This tension causes a person to act in such a way (is driven) to reduce tension, thereby satisfying the need
The higher the degree of tension, the greater the drive
Motivation and Needs
Unsatisfied Need
IncreasedTension Drive Decreased
TensionSatisfied
Need
Needs
Motivation
Individual Differences and Motivation You must understand individual
differences – different cultures, backgrounds, ages, values
What motivates one person, may not motivate another
Personality Types Internal Locus of Control
Belief that you control your own destiny
“You are the master of your own domain”
Personality Types External Locus of Control
Belief that you are a pawn of fate What happens to you is based on luck
or chance Usually results in lower job satisfaction More alienation on job – a bad
evaluation is because of uncontrollable external factors
Personality Types Machiavellianism (High Machs)
Tendency to be manipulative “Ends justify the means” Tend to be motivated on jobs that
require bargaining skills or where there are substantial rewards for winning
Are frustrated when forced to follow rules
Personality Types Self-esteem
The degree to which people like or dislike themselves
People with high SE believe they possess more of the ability they need to succeed
People with low SE are more susceptible to external influence
Low SE’s are dependent on receipt of positive evaluations and more likely to seek approval of others
Personality Types Self-monitoring
Those with high self-monitoring are very adaptable and can easily adjust their behavior to external situational factors (as opposed to others who are rigid and inflexible)
If high – are sensitive to external cues and capable of presenting striking contradictions between public and private personas
Personality Types Self-monitoring
If low in this trait, they can’t disguise themselves – tend to display their true feeling and beliefs in every situation
Personality Types Risk Propensity
The willingness of a person to take chances
If high, the person can make decisions faster with less information
Tend to prefer riskier jobs such as stock broker or firefighter
Understanding Personality & Effective Supervision Match people to jobs Knowing personality traits allows you
better understand how people approach problem-solving, decision making, job interactions, job responsibility and job satisfaction
Understanding locus of control can help you understand your employees’ degree of job satisfaction and their willingness to accept responsibility for their own actions
Needs Theories - Maslow Maslow’s Hierarchy of Needs
Physiological – hunger, thirst, shelter Safety – security and protection Social – affection, interpersonal relationships Esteem – self-respect, achievement status Self-actualization – achieving full potential
Usually thought in the form of a pyramid
Maslow’s Hierarchy of Needs
SA
Esteem Needs
Social Needs
Security Needs
Physiological Needs
Maslow’s Hierarchy of Needs Propositions
A need needs to be satisfied before moving on to the next level
A satisfied need no longer motivates A need doesn’t have to be completely
satisfied, just substantially satisfied
McGregor’s Theory X – Theory Y Theory X – “The Slug Theory”
Employees dislike work, will attempt to avoid it
Employees must be coerced, forced, controlled, or threatened to work
Will shirk responsibilities and seek formal direction
Security is paramount, will display little ambition
Theory Y Employees view work as being as
natural as rest or play A person will exercise self-direction and
self-control if he or she is committed to the objectives
Employees can learn to accept, even seek responsibility
The ability to make good decisions is spread throughout the population, not just by supervisors
Theory X – Theory Y
Think of these theories as a continuum
Theory X Theory Y
Employees fall somewhere in between the two ends
Theory X – Theory Y Are you a Theory X or a Theory Y
supervisor? Theory X may become a self-
fulfilling prophecy Theory X managers may believe
their assumptions apply to all people, same for Theory Y managers
HerzbergMotivation – Hygiene Theory States that the opposite of
satisfaction is not “dissatisfaction” but “no satisfaction”
States that the opposite of dissatisfaction is “no dissatisfaction”
The factors leading to job satisfaction are separate and distinct from those that lead to dissatisfaction
Contrasting ViewsHerzberg vs. Traditional
Motivators Hygiene Factors
Traditional View
Satisfaction
Satisfaction No Dissatisfaction
Dissatisfaction
No Satisfaction Dissatisfaction
Herzberg’s View
HerzbergMotivation - Maintenance What this means is supervisors
who seek to eliminate dissatisfaction on the job will not necessarily create satisfaction
They will only placate instead of motivate
HerzbergMotivation - Hygiene Hygiene factors –also known as
maintenance factors – can create dissatisfaction but if properly managed will only provide “no dissatisfaction – not satisfaction or motivation Company policy/administration Quality of supervision Relationships with supervisor/peers/subordinates Work conditions -Safety $$$$$$$$$$$$$$$$ - fall here Security
HerzbergMotivation - Hygiene Motivators also known as satisfiers Certain characteristics of the organization
tend to be related to job satisfaction, include: Achievement Recognition The work itself Responsibility Advancement Growth
Contrasting Views The classical view says that the
opposite of satisfaction is dissatisfaction
Herzberg’s view - removing dissatisfiers from the job does not necessarily make the job satisfying In other words these factors don’t
motivate positively
Contrasting ViewsHerzberg vs. Traditional
Motivators Hygiene Factors
Traditional View
Satisfaction
Satisfaction No Dissatisfaction
Dissatisfaction
No Satisfaction Dissatisfaction
Herzberg’s View
Herzberg’s Theory
Maintenance factors don’t motivate but if they are bad or not taken care of they cause dissatisfaction (motivate negatively)
To motivate you must emphasize the motivation factors – achievement, recognition, the work itself, responsibility and growth
McClelland’s Need for Achievement
The drive to do something better than it has ever been done before
Intrinsic motivation - people high in nAch are self-motivated and require little direct supervision
Set challenging goals but are not gamblers
McClelland’s Need for Achievement People high in achievement avoid
very easy or very difficult tasks Prefer jobs with personal
responsibility, feedback, and an intermediate degree of risk
Don’t always make good supervisors, prefer doing things themselves rather than leading others
Reinforcement Theory States that people will exert higher
levels of effort in tasks that are reinforced
Totally ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action
Reinforcement Theory Behavior that is reinforced is
repeated Proposes that feelings, attitudes,
expectations, and similar cognitive variables have no impact on behavior
Has an important influence on motivation but it is not the only influence
Equity Theory Employees perceive what they get
(outcomes) from their efforts in relation to what they give (inputs) to their job situation
Employees compare their input-outcome ratios with the input-outcome ratio of others
Equity Theory
Individual Others’Outcomes Outcomes
Compare with
Individual Others’Inputs Inputs
Equity Theory If the perception is that ratios are
equal, equity exists and the employee feels fairly treated
If the perception is that ratios are unequal, inequity exists and the employee will attempt to correct the situation, whether it is negative or positive inequity
Equity Theory Negative equity behavior
Reduced work effort Production of lower quality work Sabotage Skipped work or missed days Resignation
Expectancy Theory Postulates that individuals analyze
effort-performance, performance reward, and rewards-personal goals relationships, and that their level of effort depends on the strengths of their expectations that these relationships can be achieved
Expectancy Theory Explains why workers aren’t
motivated on their jobs and merely do the minimum necessary
Postulates three relationships Effort-performance Performance-rewards Rewards-personal goals
Expectancy Theory
IndividualEffort
IndividualPerformance
OrganizationalRewards
PersonalGoals
1 32
1
2
3
Effort-performance
Performance-rewards
Rewards-personal goals
Effort-performance “If I give maximum effort, will it be
recognized in my performance evaluation?”
If the skill level is deficient, or if the appraisal system is poorly designed, the employee may believe no matter how hard they work, they may not get a good appraisal – result – low motivation
Performance-rewards “If I get a good appraisal, will it
lead to organizational rewards?” Many employees see this
relationship as weak because organizations reward a lot of things other than appraisals.
Rewards-personal Goals “If I’m rewarded, are they the
rewards that I find personally attractive?”
If the perceived value of the reward is not worth it to the employee, motivation will be sub maximized
How Does One Motivate? Recognize individual differences Match people to jobs Set challenging goals Encourage participation
How Does One Motivate? Individualize rewards Link rewards to performance Check for equity Don’t ignore money
Motivating a Diversified Work Force Diversity is the norm
Women Ethnic minorities Immigrants Seniors Cultural differences
Motivating a Diversified Work Force Recognize the need for flexibility
Employees have different needs and goals
Men value autonomy more than women Women value the opportunity to learn,
convenient work hours, and good interpersonal relationships
What motivates a single mother may not motivate an older male
Motivating a Diversified Work Force Recognize cultural differences
Capitalism/individualism vs collectivisim
Self-interest vs. loyalty to organization or society
Willingness to accept risk vs. concern with performance
Motivating a Diversified Work Force Methods
Flexible work schedules Benefit needs Physical work settings Child care Job sharing Schooling
Motivating Low-pay Service Workers
Challenges – these jobs pay little and offer limited opportunities for advancement
Options for motivation Job flexibility – scheduling and variety Provide recognition Job rotation Capitalize on the role of social support,
group cohesion
Motivating Professionals Are equity sensitive – compare
salary, job assignments with peers Place high value on certain job
factors Autonomy Personal growth Recognition Challenging work
Motivating Professionals Allegiance priorities
Will often place their allegiance to their field of expertise over the organization that employees them
Rewards offered outside the organization often take precedent over those from within
Pay-for-Performance Programs
Compensation plans that pay employees on the basis of some performance measure instead of the time on the job Piece-rate plans Competency-based compensation Gain sharing Wage incentives Lump-sum bonuses
Pay-for-Performance Programs
Can be used with individuals, teams, departments or based on overall organizational productivity and profits
Very compatible with Expectancy Theory Motivational viewpoint – pay is based on
performance Cost viewpoint – performance based
bonuses avoid the fixed expense of salary increases
Employee Stock Ownership Plans
A compensation program in which employees become part owners of their organization by receiving stock as a performance incentive
Allows employees to purchase additional stock at attractive prices
Employee Stock Ownership Plans
In effect, employees become part- owners of the organization
Research indicates that ESOPS, given time, increase employee satisfaction and frequently result in higher performance
Designing Motivating Jobs Job design – the way tasks are
designed to form complete jobs Some jobs are routine – tasks are
standardized and repetitive Some jobs are nonroutine – tasks
are varied requiring a large number of diverse skills
Job Characteristics Skill variety Task identity Task significance Autonomy Feedback When these characteristics are all
present, the job becomes enriched and potentially motivating
Job Enrichment Increases the degree to which a
worker controls the planning, execution, and evaluation of his or her work
Accomplished by organizing tasks so as to allow the worker to do a complete activity
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