23-08-2023

Learning Objectives Why are Managers Important?

• Explain why managers are important to organizations • Organizations need their managerial skills and abilities more
• Tell who managers are and where they work than ever in these uncertain, complex, and chaotic times.
• Describe the functions, roles, and skills of managers • Managerial skills and abilities are critical in getting things done.
• Describe the factors that are reshaping and redefining the manager’s • The quality of the employee/supervisor relationship is the
job
most important variable in productivity and loyalty.
• Explain the value of studying management

Who Are Managers? Classifying Managers

• First-line Managers - Individuals who manage the work of non-
• Manager
managerial employees.
– Someone who coordinates
and oversees the work of • Middle Managers - Individuals who manage the work of first-
other people so that line managers.
organizational goals can be • Top Managers - Individuals who are responsible for making
accomplished. organization-wide decisions and establishing plans and goals
that affect the entire organization.

Levels of Management Where Do Managers Work?

• Organization - A deliberate arrangement of people assembled
to accomplish some specific purpose (that individuals
independently could not accomplish alone).
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Are composed of people
– Have a deliberate structure

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Characteristics of Organizations What Do Managers Do?

• Management involves coordinating and overseeing the work
activities of others so that their activities are completed
efficiently and effectively.

BASIS FOR COMPARISON LEADER MANAGER

LEADER VS. MANAGER
Meaning A leader is a person who A manager is a person who
influences his subordinates to manages the organisation and is
achieve a specified goal. responsible for planning,
direction, coordination and
control
Approach Sets Direction Plans details
Create circle of Influences Power
Subordinate Followers Employees
Style Transformational Transactional
Decision Facilitates decision Makes decision
Aim Growth and development. Attainment of the required result.

Focus People Process and Procedure

Change Leaders promotes change. Mangers react to change.

Conflict Uses conflict as an asset Avoid conflict

People Aligns people Organizes people

Strives For effectiveness For efficiency
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Efficiency and Effectiveness

Effectiveness and Efficiency in Management

• Efficiency • Effectiveness
– “Doing things right” – “Doing the right things”
– Getting the most output for the – Attaining organizational goals
least inputs

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Management Functions Four Functions of Management

• Planning - Defining goals, establishing strategies to achieve goals, and

developing plans to integrate and coordinate activities.
• Organizing - Arranging and structuring work to accomplish
organizational goals.
• Leading - Working with and through people to accomplish goals.
• Controlling - Monitoring, comparing, and correcting work.

Management Roles Mintzberg’s Managerial Roles

• Roles are specific actions or behaviors expected of a manager.
• Mintzberg identified 10 roles grouped around:
– interpersonal relationships,
– the transfer of information, and
– decision making.

Skills Needed at Different

Skills Managers Need Managerial Levels

• Technical skills
– Knowledge and proficiency in a specific field
• Human skills
– The ability to work well with other people
• Conceptual skills
– The ability to think and conceptualize about abstract and complex
situations concerning the organization

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Important Managerial Skills The Changing Organization

• Managing human capital Traditional New Organization

• Stable • Dynamic
• Inspiring commitment • Inflexible • Flexible
• Job-focused •
• Managing Change • Work is defined by job positions
Skills-focused
• Work is defined in terms of tasks to be
• Structuring and getting things done • Individual-oriented done
• Permanent jobs • Team-oriented
• Facilitating the psychological and social context of work • Command-oriented • Temporary jobs
• Managing decision-making process • Managers always make decisions • Involvement-oriented
• Rule-oriented • Employees participate in decision
• Managing strategy and innovation • Relatively homogeneous workforce making
• Workdays defined as 9 to 5 • Customer-oriented
• Managing logistics and technology • Hierarchical relationships • Diverse workforce
• Work at organizational facility during • Workdays have no time boundaries
specific hours • Lateral and networked relationships
• Work anywhere, anytime

Challenges Impacting the Manager’s Job Why Study Management?

• Universality of Management
Ethics – The reality that management is needed
• in all types and sizes of organizations
Knowledge
Management Diversity • at all organizational levels
• in all organizational areas
Manager
• in all organizations, regardless of location
Innovation Globalization

Customers E-Business

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Universal Need for Management Rewards and Challenges of Being a Manager

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Historical Background of Management Major Approaches to Management

• Ancient Management
 Egypt (pyramids) India (Taj Mahal) and China (Great Wall)
• Adam Smith
 Published The Wealth of Nations in 1776
 Advocated the division of labor (job specialization) to increase the productivity of
workers
• Industrial Revolution
 Substituted machine power for human labor
 Created large organizations in need of management

Major Approaches to Scientific Management

Management • Fredrick Winslow Taylor
 The “father” of scientific management
• Classical  Published Principles of Scientific Management (1911)
• Quantitative  The theory of scientific management
• Behavioral – Using scientific methods to define the “one best way” for a job to be done:
• Putting the right person on the job with the correct tools and equipment.
• Contemporary
• Having a standardized method of doing the job.
• Providing an economic incentive to the worker.

Scientific Management (cont’d) General Administrative Theory

• Frank and Lillian Gilbreth • Henri Fayol
 Focused on increasing worker productivity through the reduction of  Believed that the practice of management was distinct from other
wasted motion organizational functions
 Developed the microchronometer to time worker motions and optimize  Developed principles of management that applied to all organizational
work performance situations
• How Do Today’s Managers Use Scientific Management? • Max Weber
 Use time and motion studies to increase productivity  Developed a theory of authority based on an ideal type of organization
 Hire the best qualified employees (bureaucracy)
 Emphasized rationality, predictability, impersonality, technical competence, and
 Design incentive systems based on output authoritarianism

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Weber’s Bureaucracy
Fayol’s 14 Principles of Management

1. Division of work 7. Remuneration

2. Authority 8. Centralization

3. Discipline 9. Scalar chain

4. Unity of command 10. Order

5. Unity of direction 11. Equity

6. Subordination of 12. Stability of tenure

individual interests of personnel
to the general 13. Initiative
interest
14. Esprit de corps

Quantitative Approach to Understanding Organizational

Management Behavior
• Quantitative Approach • Organizational Behavior (OB)
 Also called operations research or management  The study of the actions of people at work; people are
science the most important asset of an organization
 Evolved from mathematical and statistical methods • Early OB Advocates
developed to solve WWII military logistics and quality  Robert Owen
control problems
 Hugo Munsterberg
 Focuses on improving managerial decision making by
applying:  Mary Parker Follett
 Statistics, optimization models, information models, and  Chester Barnard
computer simulations
 CPM techniques, EOQ model, Linear Programming for
resource allocation, scheduling techniques…..

Early Advocates of OB The Hawthorne Studies

•A series of productivity experiments conducted
at Western Electric from 1924 to 1932.

•Experimental findings
Productivity unexpectedly increased under imposed
adverse working conditions.
The effect of incentive plans was less than
expected.

•Research conclusion
Social norms, group standards and attitudes more
strongly influence individual output and work behavior
than do monetary incentives.

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The Systems Approach The Organization as an Open System

• System Defined
 A set of interrelated and interdependent parts arranged in a manner that
produces a unified whole.
• Basic Types of Systems
 Closed systems
 Are not influenced by and do not interact with their environment (all system input and
output is internal).
 Open systems
 Dynamically interact to their environments by taking in inputs and transforming them
into outputs that are distributed into their environments.

Implications of the Systems The Contingency Approach

Approach • Contingency Approach Defined
 Also sometimes called the situational approach.
• Coordination of the organization’s parts is
essential for proper functioning of the entire  There is no one universally applicable set of management principles
organization. (rules) by which to manage organizations.
 Organizations are individually different, face different situations
• Decisions and actions taken in one area of the (contingency variables), and require different ways of managing.
organization will have an effect in other areas of
the organization.
• Organizations are not self-contained and,
therefore, must adapt to changes in their
external environment.

Popular Contingency Variables

• Organization size
• As size increases, so do the problems of coordination.
• Routineness of task technology
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from
those required by customized or non-routine
technologies.
• Environmental uncertainty
• What works best in a stable and predictable environment Foundations of Planning
may be totally inappropriate in a rapidly changing and
unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.

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MANAGEMENT QUIZ… Planning defined

The following short quiz consists of 4 questions and tells whether you are
qualified to be a "professional". The plan of action is, at one and the same time
The questions are not that difficult. the result envisaged, the line of action to be
1. How do you put a giraffe into a refrigerator?
followed, the stages to go through and the
2. How do you put an elephant into a refrigerator? methods to use
3. The Lion King is hosting an animal conference. All the animals attend
except one. Which animal does not attend? - Henri Fayol

4. There is a river you must cross. But it is inhabited by crocodiles. How do

you manage it?

Planning defined What Is Planning?

Planning is deciding in advance what to do and • Planning
 A primary managerial activity that involves:
how to do it, where to do it and who is to do it.  Defining the organization’s goals
Planning bridges the gap between where we  Establishing an overall strategy for achieving those goals
 Developing plans for organizational work activities
are and where we want to go. It makes it
possible for things to occur which would not  Types of planning
 _______________not written down, short-term focus; specific to an organizational
otherwise happen unit.
 _______________written, specific, and long-term focus, involves shared goals for
the organization.
- Koontz and O’Donnell
Planning is concerned with ends (what is to be done) as
well as with means (how it is to be done).

Planning and Performance LINKING PERFORMANCE TO PLANNING

• The Relationship Between
• The Relationship Between Planning and Performance Planning and Performance
 Formal planning is associated with: – Formal planning is associated
 Higher profits and returns on assets. with:
 Positive financial results. • Higher profits and returns
 The quality of planning and implementation affects performance more on assets.
than the extent of planning. • Positive financial results.
 The external environment can reduce the impact of planning on – The external environment can
performance. reduce the impact of planning
 Formal planning must be used for several years before planning begins to on performance.
affect performance. – Formal planning must be
used for several years before
planning begins to affect
performance.

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Features of planning Importance of planning

Planning is • Makes objectives clear
• Goal oriented • Reduces risks and uncertainty
• Future oriented
• Keeps organization on right track
• Intellectual process
• Improves efficiency of operations
• One of key managerial functions
• Pervasive • Provides basis for control
• Continuous • Facilitates decision making
• Aims at efficiency and effectiveness • Effective coordination

Why Do Managers Plan? How Do Managers Plan?

• Purposes of Planning • Elements of Planning
 Provides direction  Goals (also Objectives)
 Reduces uncertainty  Desired outcomes for individuals, groups, or entire organizations
 Minimizes waste and redundancy  Provide direction and evaluation performance criteria
 Sets the standards for controlling  Plans
 Documents that outline how goals are to be accomplished
 Describe how resources are to be allocated and establish activity schedules

SMART Goals & Objectives Types of Goals

• Financial Goals
 Are related to the expected internal financial performance of the
organization.
• Strategic Goals
 Are related to the performance of the firm relative to factors in its external
environment (e.g., competitors).
• Stated Goals versus Real Goals
 Broadly-worded official statements of the organization (intended for public
consumption) that may be irrelevant to its real goals (what actually goes
on in the organization).

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Stated Goals of Large Global Companies Types of Plans

Execute strategic roadmap—“Plan to Win.” Control inventory.
Grow the business profitably. Maintain industry’s lowest inventory shrinkage rate.
Identify and develop diverse talent. Open 25–30 new locations in fiscal 2006.
Promote balanced, active lifestyles. Live by the code of ethics every day.
(McDonald’s Corporation) (Costco)
Continue to win market share globally. Expand selection of competitively priced products.
Focus on higher-value products. Manage inventory carefully.
Reduce production costs. Continue to improve store format every few years.
Lower purchasing costs. Operate 2,000 stores by the end of the decade.
Integrate diversity. Continue gaining market share.
Gain ISO 14001 certification for all factories. (Target)
(L’Oreal)
Roll out newly-designed environmentally friendly cup
Respect the environment. in 2006.
Respect and support family unity and national Open approximately 1,800 new stores globally in
traditions. 2006.
Promote community welfare. Attain net revenue growth of approximately 20
Continue implementing quality systems. percent in 2006.
Continue to be a strong cash generator. Attain annual EPS growth of between 20 percent to 25
(Grupo Bimbo) percent for the next 3 to 5 years.
(Starbucks)

• Strategic Planning
TYPES OF PLANS • Tactical Planning Strategic Planning
• Operational Planning • Strategic plans
• Contingency Planning  Apply broadly to the entire organization.
 Establish the organization’s overall objectives.
 Seek to position the organization in terms of its environment.
 Provide direction to drive an organization’s efforts to achieve its goals.
 Serve as the basis for the tactical plans.
 Cover extended periods of time.
 Are less specific in their details.

Tactical Planning Types of Plans

• Tactical plans (operational plans) • Long-Term Plans
 Apply to specific parts of the organization.  Plans with time frames extending beyond three years

 Are derived from strategic objectives.

• Short-Term Plans
 Plans with time frames of one year or less
 Specify the details of how the overall objectives are to be achieved.
• Specific Plans
 Cover shorter periods of time.  Plans that are clearly defined and leave no room for interpretation
 Must be updated continuously to meet current challenges. • Directional Plans
 Flexible plans that set out general guidelines and provide focus, yet allow
discretion in implementation

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Types of Plans Planning process

• Single-Use Plan
 A one-time plan specifically designed to meet the need of a unique Define & Establish
situation. Identify Evaluation
describe planning
• Standing Plans alternatives and choice
objectives premises
 Ongoing plans that provide guidance for activities performed repeatedly.

Review & Communicating Formulating

Follow up of & Securing derivative
plans cooperation plans

Setting Goals and Developing Plans The Downside of Traditional Goal Setting

• Traditional Goal Setting

 Broad goals are set at the top of the organization.
 Goals are then broken into sub-goals for each organizational level.
 Assumes that top management knows best because they can see the “big
picture.”
 Goals are intended to direct, guide, and constrain from above.
 Goals lose clarity and focus as lower-level managers attempt to interpret
and define the goals for their areas of responsibility.

Setting Goals and Developing Plans

• Management By Objectives (MBO)
• Maintaining the Hierarchy of Goals  Specific performance goals are jointly determined by employees and
 Means–Ends Chain managers.
 The integrated network of goals that results from establishing a clearly-defined  Progress toward accomplishing goals is periodically reviewed.
hierarchy of organizational goals.
 Rewards are allocated on the basis of progress towards the goals.
 Achievement of lower-level goals is the means by which to reach higher-level goals
(ends).  Key elements of MBO:
 Goal specificity, participative decision making, an explicit performance/evaluation
period, feedback

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Setting Goals and Developing Plans Cascading of Objectives

• Management by Objectives (MBO)
 A system in which specific performance objectives are jointly determined
by subordinates and their supervisors, progress toward objectives is
periodically reviewed, and rewards are allocated on the basis of that
progress.
 Links individual and unit performance objectives at all levels with overall
organizational objectives.
 Focuses operational efforts on organizationally important results.
 Motivates rather than controls.

Elements of MBO Steps in a Typical MBO Program

• Goal specificity 1. The organization’s overall objectives and strategies are formulated.
• Participative decision making 2. Major objectives are allocated among divisional and departmental units.
• Explicit time period for performance/ evaluation period 3. Unit managers collaboratively set specific objectives for their units with
• Performance feedback their managers.
4. Specific objectives are collaboratively set with all department members.
5. Action plans, defining how objectives are to be achieved, are specified
and agreed upon by managers and employees.
6. The action plans are implemented.
7. Progress toward objectives is periodically reviewed, and feedback is
provided.
8. Successful achievement of objectives is reinforced by performance-
based rewards.

Does MBO Work? Well-Written Goals

• Reason for MBO Success
• Written in terms of outcomes, not • Challenging yet attainable
 Top management commitment and involvement actions  Low goals do not motivate.
• Potential Problems with MBO Programs  Focuses on the ends, not the means.  High goals motivate if they can be
• Measurable and quantifiable achieved.
 Not as effective in dynamic environments that require constant resetting • Written down
 Specifically defines how the outcome is
of goals. to be measured and how much is  Focuses, defines, and makes goals
 Overemphasis on individual accomplishment may create problems with expected. visible.
teamwork. • Clear as to time frame • Communicated to all necessary
 How long before measuring organizational members
 Allowing the MBO program to become an annual paperwork shuffle. accomplishment.  Puts everybody “on the same page.”

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Planning in the Hierarchy of Organizations Measures for effective planning

• Must not be left to chance, rather a climate conducive to planning
should be created
• Must have support of top management
• Must be organized for wider participation
• Should be definitive
• Must be properly communicated
• Long term planning should be integrated with short term plans
• Must be flexible; include awareness and acceptance of change
• Continuous monitoring and open system approach should be
adopted

Principles of Planning Principles of Planning

•Principle of contribution to objectives •Principle of flexibility

Should realize organizational objectives Should be capable of changes because of changes in
environment without substantial cost and delays
•Principle of pervasiveness of planning
Should be at all levels of management •Principle of navigational change
Should periodically check on events and redraw plans to keep
•Principle of limiting factors course towards desired goals
Must make into account limiting factors (man, money, material,
machines, management)

Approaches to planning Contemporary Issues in Planning

• Reactive approach (past oriented) • Criticisms of Planning
 Planning may create rigidity.
• Inactive approach (present oriented)  Plans cannot be developed for dynamic environments.
 Formal plans cannot replace intuition and creativity.
 Planning focuses managers’ attention on today’s competition not
• Predictive approach (predict the future) tomorrow’s survival.
 Formal planning reinforces today’s success, which may lead to
tomorrow’s failure.
• Proactive approach (create the future)
 Just planning isn’t enough.

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Defining Organizational Structure

• Organizational Structure
 The formal arrangement of jobs within an organization.
• Organizational Design
 A process involving decisions about six key elements:
 Work specialization
 Departmentalization
 Chain of command
ORGANIZING  Span of control
 Centralization and decentralization
 Formalization

Purposes of Organizing Organizational Structure

• Work Specialization
• Divides work to be done into specific jobs and
departments.  The degree to which tasks in the organization are
divided into separate jobs with each step completed
• Assigns tasks and responsibilities associated with by a different person.
individual jobs.
 Overspecialization can result in human diseconomies
• Coordinates diverse organizational tasks. from boredom, fatigue, stress, poor quality, increased
• Clusters jobs into units. absenteeism, and higher turnover.
• Establishes relationships among individuals,
groups, and departments.
• Establishes formal lines of authority.
• Allocates and deploys organizational resources.

Departmentalization by Type Functional Departmentalization

• Functional • Process
 Grouping jobs by functions  Grouping jobs on the basis of
performed product or customer flow
• Product • Customer
 Grouping jobs by product line  Grouping jobs by type of customer
• Geographical and needs

 Grouping jobs on the basis of • Advantages

territory or geography • Efficiencies from putting together similar specialties and
people with common skills, knowledge, and orientations
• Coordination within functional area
• In-depth specialization
• Disadvantages
• Poor communication across functional areas
• Limited view of organizational goals

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Geographical Departmentalization Product Departmentalization

• Advantages
• More effective and efficient handling of specific
regional issues that arise
+ Allows specialization in particular products and services
• Serve needs of unique geographic markets better
+ Managers can become experts in their industry
• Disadvantages
+ Closer to customers
• Duplication of functions
– Duplication of functions
• Can feel isolated from other organizational areas – Limited view of organizational goals

Process Departmentalization Customer Departmentalization

+ More efficient flow of work activities + Customers’ needs and problems can be met by specialists
– Can only be used with certain types of products - Duplication of functions
- Limited view of organizational goals

Organization Structure (cont’d) Organization Structure (cont’d)

• Chain of Command • Authority
 The continuous line of authority that extends from upper levels of an  The rights inherent in a managerial position to tell people what to do and
organization to the lowest levels of the organization and clarifies who to expect them to do it.
reports to whom. • Responsibility
 The obligation or expectation to perform.
• Unity of Command
 The concept that a person should have one boss and should report only
to that person.

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Organization Structure (cont’d) Contrasting Spans of Control

• Span of Control
 The number of employees who can be effectively and efficiently
supervised by a manager.
 Width of span is affected by:
 Skills and abilities of the manager
 Employee characteristics
 Characteristics of the work being done
 Similarity of tasks
 Complexity of tasks
 Physical proximity of subordinates
 Standardization of tasks

Organization Structure (cont’d) Factors that Influence the Amount of Centralization

• Centralization • More Centralization
 The degree to which decision-making is concentrated at a single point in  Environment is stable.
the organizations.  Lower-level managers are not as capable or experienced at making decisions as upper-
 Organizations in which top managers make all the decisions and lower-level level managers.
employees simply carry out those orders.  Lower-level managers do not want to have a say in decisions.
• Decentralization  Decisions are relatively minor.
 Organizations in which decision-making is pushed down to the managers  Organization is facing a crisis or the risk of company failure.
who are closest to the action.  Company is large and is located at a single place.
• Employee Empowerment  Effective implementation of company strategies depends on managers retaining say over
what happens.
 Increasing the decision-making authority (power) of employees.

Factors that Influence the Amount of Decentralization Common Organizational Designs

• More Decentralization • Traditional Designs
 Environment is complex, uncertain.  Simple structure
 Lower-level managers are capable and experienced at making decisions.  Low departmentalization, wide spans of control, centralized authority, little
 Lower-level managers want a voice in decisions. formalization
 Decisions are significant.  Functional structure
 Corporate culture is open to allowing managers to have a say in what happens.  Departmentalization by function
– Operations, finance, human resources, and product research and development
 Company is geographically dispersed.
 Effective implementation of company strategies depends on managers having  Divisional structure
involvement and flexibility to make decisions.  Composed of separate business units or divisions with limited autonomy under the
coordination and control the parent corporation.

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Contemporary Organizational Designs An Example of a Matrix Organization

Team Structure
• What it is: A structure in which the entire organization is made up of
work groups or teams.
• Advantages: Employees are more involved and empowered. Reduced
barriers among functional areas.
• Disadvantages: No clear chain of command. Pressure on teams to perform.

Matrix-Project Structure
What it is: A structure that assigns specialists from different functional
areas to work on projects but who return to their areas when
the project is completed. Project is a structure in which
employees continuously work on projects. As one project is
completed, employees move on to the next project.
• Advantages: Fluid and flexible design that can respond to environmental
changes. Faster decision making.
• Disadvantages: Complexity of assigning people to projects. Task and
personality conflicts.

Contemporary Organizational Designs Organizational Designs (cont’d)

Boundaryless Structure • Contemporary Organizational Designs (cont’d)
What it is: A structure that is not defined by or limited to artificial
horizontal, vertical, or external boundaries; includes virtual  Boundaryless Organization
and network types of organizations.
 An flexible and unstructured organizational design that is intended to break down
• Advantages: Highly flexible and responsive. Draws on talent wherever it’s
found. external barriers between the organization and its customers and suppliers.
• Disadvantages: Lack of control. Communication difficulties..  Removes internal (horizontal) boundaries:
– Eliminates the chain of command
– Has limitless spans of control
– Uses empowered teams rather than departments
 Eliminates external boundaries:
– Uses virtual, network, and modular organizational structures to get closer to
stakeholders.

Removing External Boundaries

• Virtual Organization
 An organization that consists of a small core of full-time employees and that
temporarily hires specialists to work on opportunities that arise.
• Network Organization
 A small core organization that outsources its major business functions (e.g.,
manufacturing) in order to concentrate what it does best.
• Modular Organization
 A manufacturing organization that uses outside suppliers to provide product
components for its final assembly operations. Motivation

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What Is Motivation? Types of Motivation.

• Motivation Extrinsic Motivation
 The processes that account for an individual’s willingness to exert high 1.Salary.
levels of effort to reach organizational goals, conditioned by the effort’s 2.Bonuses.
ability to satisfy some individual need.
3.Organized activities.
 Effort: a measure of intensity or drive.
4.Fear of failure/punishment
Intrinsic Motivation:
 Direction: toward organizational goals
 Need: personalized reason to exert effort 5.Promotion/Grades.
 Persistence: how long a person tries 6.Punishment/Layoffs 1.Learning and Growth
 Motivation works best when individual needs are compatible with opportunity
organizational goals. 2.Social contact and status.
Satisfied Tension
3.Curiosity
Unsatisfied
Need Tension Effort Need Reduction 4.Respect and Honour.
• Intensity 5.Love
• Direction
• Persistence

What Is Motivation? Early Theories of Motivation

• Need • Maslow’s Hierarchy of Needs Theory
 An internal state that makes certain outcomes appear attractive. Needs were categorized as five levels of lower- to higher-order
 An unsatisfied need creates tension which is reduced by an individual’s needs.
efforts to satisfy the need.
 Individuals must satisfy lower-order needs before they can satisfy
• Early Theories of Motivation higher order needs.
 Maslow’s Hierarchy of Needs  Satisfied needs will no longer motivate.
 MacGregor’s Theories X and Y  Motivating a person depends on knowing at what level that person is
 Herzberg’s Motivation-Hygiene Theory on the hierarchy.
Hierarchy of needs
 Lower-order (external): physiological, safety
 Higher-order (internal): social, esteem, self-actualization

Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs Theory

• Physiological: the need for food, sleep, water, air, and sex
• Security: the need for safety, family, stability, and economic
Self-
security
Actualization
• Social or affiliation: the need to belong, to interact with others, to
Esteem
have friends, and to love and be loved
Social and Love

Safety
• Esteem: the need for respect and recognition of others
Physiological • Self-actualization: the need to realize one’s potential, to grow, to
be creative, and to accomplish

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Early Theories of Motivation (cont’d)

• Herzberg’s Motivation-Hygiene Theory Examples of Motivator and Hygiene Factors
Job satisfaction and job dissatisfaction are created by different Motivator Factors Hygiene Factors
factors. (Sources of Job Satisfaction
and Motivation)
(Sources of Job Dissatisfaction;
Neutral to Motivation)
 Hygiene factors: extrinsic (environmental) factors that create job
Challenge of the work itself Physical working conditions
dissatisfaction.
Responsibility Company policies
 Motivators: intrinsic (psychological) factors that create job satisfaction. Recognition Quality of supervision

Attempted to explain why job satisfaction does not result in Achievement

Job advancement and
Coworker relationships
Salary
increased performance. professional growth Status
Job security
 The opposite of satisfaction is not dissatisfaction, but rather no Benefits, including work habits
satisfaction. and time management

A Graphic Comparison of Two Content Early Theories of Motivation (cont’d)

Approaches to Motivation
• McGregor’s Theory X and Theory Y
 Theory X
Maslow Herzberg  Assumes that workers have little ambition, dislike work, avoid responsibility, and
Self-actualization The work itself require close supervision.
- Responsibility
- Advancement
 Theory Y
Esteem Motivators
Higher - Growth  Assumes that workers can exercise self-direction, desire responsibility, and like to
order work.
needs Belongingness, social, and Achievement
love Recognition  Motivation is maximized by participative decision making, interesting jobs,
Quality of inter-personal and good group relations.
Safety and security relations among peers, with
Hygiene supervisors
Basic
needs conditions
Physiological Job security
Salary

Motivation and Needs

• Three-Needs Theory (McClelland)
 There are three major acquired needs that are major motives in work. The Three-
 Need for achievement (nAch)
Needs Theory
– The drive to excel and succeed
 Need for power (nPow)
– The need to influence the behavior of others
Achievement Affiliation
 Need of affiliation (nAff)
(aAch) (nAff)
– The desire for interpersonal relationships Power
(nPow)

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Need for Achievement - a manifest

(easily perceived) need that concerns Designing Motivating Jobs
individuals’ issues of excellence,
competition, challenging goals, • Job Enlargement
persistence, and overcoming difficulties

Need for Power - a manifest (easily • Job Enrichment

perceived) need that concerns an
individual’s need to make an impact on
others, influence others, change people
or events, and make a difference in life Job Characteristics Model (JCM)
A conceptual framework for designing motivating jobs that
Need for Affiliation - a manifest (easily
perceived) need that concerns an
create meaningful work experiences that satisfy employees’
individual’s need to establish and growth needs.
maintain warm, close, intimate
relationships with other people

Job Characteristics Model

Skill Variety

Task Identity

JOB DESIGN Task Significance

INFLUENCES
Autonomy
MOTIVATION
Feedback
Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott,
Foresman, 1977). With permission of the authors.

Motivation and Goals

• Suggestions for Using the JCM • Goal-Setting Theory
 Combine tasks (job enlargement) to create more meaningful work.  Proposes that setting goals that are accepted, specific, and challenging
 Create natural work units to make employees’ work important and whole. yet achievable will result in higher performance than having no or easy
goals.
 Establish external and internal client relationships to provide feedback.
 Expand jobs vertically (job enrichment) by giving employees more
autonomy.
• Benefits of Participation in Goal-Setting
 Open feedback channels to let employees know how well they are doing.  Increases the acceptance of goals.
 Fosters commitment to difficult, public goals.
 Provides for self-feedback (internal locus of control) that guides behavior
and motivates performance (self-efficacy).

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Additional Suggestions for

Goal-Setting Theory Motivating Employees

Recognize individuals
Match people to jobs
Use goals
Make goals attainable

Further Suggestions for

Motivating Employees

Individualize rewards
Link rewards to performance
Check the system for equity
Don’t ignore money

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