Amity School of Business: Management Foundations
Amity School of Business: Management Foundations
Management Foundations
-Napoleon Hill
MOTIVATION
Motivation is the willingness to
exercise high levels of effort
towards organizational goals,
conditional by the effort’s ability to
satisfy some individual needs.
Motivation
• Defined as the psychological forces
within a person that determine:
1) direction of behavior in an organization;
2) the effort or how hard people work;
3) the persistence displayed in meeting
goals.
– Intrinsic Motivation: behavior
performed for its own sake.
• Motivation comes from performing the
work.
– Extrinsic Motivation: behavior
performed to acquire rewards.
• Motivation source is the consequence of
How does
Motivation work?
•
DEFENCE MECHANISM
1. Aggression
2. Compromise FRUSTRATION
3. Withdrawal
Importance
of Motivation
•
• Motivation is important to
organizations because in
conjunction with ability and
environment it determines
performance.
M-Motivation.
E-Environment.
Motivation
& Performance
Factors affecting motivation at
work
• Individual Differences
•
• Job Characteristics
•
• Organizational Practices
What motivates
Employees?
• Clear Expectations & Goals
• Materials and Resources
• Accurate/timely feedback
• Interesting work
• Challenges
• Responsibility
• Recognition
• Respect
• Being Informed
• Being Listened to
• Being Treated fairly
• Opportunities for growth/advancement
• Autonomy
• Participation in decision-making
•
Being a Member of team
Relationship
with Job Performance
Theories of
Motivation
•
• To motivate a person:
1)Managers must determine what needs worker has.
performing well.
• Major theories:
– Maslov’s Need-Hierarchy theory
– McGregor’s Theory X and Y
– Herzberg Two-factor theory
– ERG theory
Maslow’s
Hierarchy of Needs
Self-
Actualization
Esteem
Safety
Physiological
Hierarchy of Needs
Need Level Description Examples
Self-
Self- Realize
Realizeone’s
one’s Use
Useabilities
abilities
Actualization
Actualization full
fullpotential
potential to
tothe
thefullest
fullest
Feel
Feelgood
good Promotions
Promotions
Esteem
Esteem about
aboutoneself
oneself &&recognition
recognition
Interpersonal
Interpersonal
Social
Social
Belongingness
Belongingness relations,
relations,
interaction,
interaction,love
love parties
parties
Job
Jobsecurity,
security,
Security,
Security,
Safety
Safety health
health
stability
stability insurance
insurance
Food,
Food,water,
water, Basic
Basicpay
paylevel
level
Physiological
Physiological shelter
shelter to
tobuy
buyitems
items
Lower level needs must be satisfied before higher needs are addressed.
Theory X and Theory Y
(Douglas McGregor)
Theory
Theory XX Theory
Theory YY
Avoid
Avoid Work
Workis
is Natural
Natural
Work
Work
Must
Mustbe
be Self-
Self-
Controlled
Controlled Direction
Direction
Avoid
Avoid Seek
Seek
Responsibility
Responsibility Responsibility
Responsibility
Good
Good Decisions
Decisions
Seek
Seek Security
Security Widely
Widely
Dispersed
Dispersed
Herzberg’s
two-factor theory
Hygiene factors Motivators
Achievement
Recognition
Work Itself
Responsibility
Advancement
Growth
Supervision
Relationship
With supervision
Company Policies
Salary
50% 40% 30% 20% 10% 0 10% 20% 30% 40% 50%
Herzberg’s
two-factor theory
Factors are related to the job and Factors are related to the content
may be considered support factors. of the job and advancement and
the work itself.
Supervision, Company policies,
working conditions, Achievement, Recognition, work
Salary, security itself, responsibility, challenging
job.
Alderfer’s ERG
Need Level Description Examples
Highest
Self-development,
Self-development, Worker
Workercontinually
continually
Growth
Growth creative
creativework
work improves
improvesskills
skills
Interpersonal
Interpersonal Good
Goodrelations,
relations,
Relatedness
Relatedness relations,
relations,feelings
feelings feedback
feedback
Lowest
Food,
Food,water,
water, Basic
Basicpay
paylevel
level
Existence
Existence shelter
shelter to
tobuy
buyitems
items
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.
Growth Opportunities Satisfying
• Challenging Job
• Creativity
•
•
Autonomy
Interesting Work Existence,
• Organizational Advancement
• Responsibility
•
•
Achievement
Participation
Relatedness,
and Growth
Needs
Relatedness Opportunities
• Friendship • Quality Supervision
• Interpersonal Security • Work Teams
• Athletic Teams • Social Events
• Social Recognition
Existence Opportunities
• Heat • Air Conditioning • Clean Air
• Lighting • Rest Rooms • Drinking Water
• Base Salary • Cafeteria • Safe Conditions
• Insurance • Job Security • No Layoffs
• Retirement • Health Programs • Time Off
McClelland’s
Needs Theory
Affiliatio
Achieve
n
ment
Power
28
David McClelland’s
Theory of Needs
nPow
nAch nAff
Implications
•
Self-Actualization
Growth Motivators Need for Achievement
Esteem
Need for Power
Affiliation Relatedness
Hygiene
Need for Affiliation
Security Factors
Existence
Physiological
Process
Theories
•
• Major Theories
– Expectancy Theory
– Equity Theory
– Goal Setting Theory
–
Expectancy
Theory
Developed by Victor Vroom and is a
Expectancy
– the perception that effort (input) will result in a level of
performance.
– You will work hard if it leads to high performance.
– You would be less willing to work hard if you knew that the
best you would get on a paper was a D regardless of
how hard you tried.
Inputs
Inputsfrom
from Outcomes
Outcomes
Organization
Organization Performance
Performance received
receivedby
by
al
al members
members
members
members
Contribute
Contribute
Time
Time Pay
Pay
to
to
Effort
Effort Job
JobSecurity
Security
organization
organization
Education
Education Benefits
Benefits
efficiency,
efficiency,
Experience
Experience Vacation
Vacation
effectivenes
effectivenes
Skills
Skills Autonomy
Autonomy
ss
Knowledge
Knowledge Responsibili
Responsibili
and
and
Work
WorkBehav.
Behav. ty
ty
attain
attaingoals
goals
Adam’s Equity Theory
– Considers worker’s perceptions of the
fairness of work outcomes in
proportion to their inputs.
• Adams notes it is the relative rather than
the absolute level of outcomes a person
receives.
– The Outcome/input ratio is compared by
worker with another person called a
referent.
– The referent is perceived as similar to the
worker.
• Equity exists when a person perceives
their outcome/input ratio to be equal to
the referent’s ratio.
Equity Theory
Condition
Condition Person
Person Referent
Referent Example
Example
Worker
Workercontributes
contributes
Outcomes
Outcomes == Outcomes
Outcomes more
more inputsbut
inputs butalso
also
Equity
Equity Inputs Inputs gets same outputs
Inputs Inputs gets same outputs
than
thanreferent
referent
Worker
Workercontributes
contributes
Underpayment
Underpayment Outcomes
Outcomes << Outcomes
Outcomes more
more inputsbut
inputs butalso
also
Equity Inputs
Inputs Inputs
Inputs gets less outputs
gets less outputs
Equity
as
asreferent
referent
Worker
Workercontributes
contributes
Overpayment
Overpayment Outcomes
Outcomes >> Outcomes
Outcomes same
same inputsbut
inputs butalso
also
Equity Inputs
Inputs Inputs
Inputs gets more outputs
gets more outputs
Equity
than
thanreferent
referent
Inequity
• Inequity exists when worker’s
outcome/input ratio is not equal to
referent.
– Underpayment inequity: ratio is less
than the referent. Worker feels they are
not getting the outcomes they should
given inputs.
– Overpayment inequity: ratio is higher
than the referent. Worker feels they are
getting more outcomes then they should
given inputs.
• Restoring Equity: Inequity creates
tension in workers to restore equity.
In underpayment, workers reduce input levels to
correct.
Overpayment, worker can change the referent to
adjust.
Goal Setting Theory
– Focus worker’s inputs in the direction
of high performance & achievement
of organizational goals.
• Goal is what a worker tries to
accomplish.
– Goals must be specific and difficult for
high performance results.
– Workers put in high effort to achieve
such goals.
• Workers must accept and be committed
to them.
– Feedback on goal attainment also is
important.
– Goals point out what is important to the
firm.
Reinforcement
– Theory
–
– Emphasizes that proper management of
reinforcement can change the direction, level, and
persistence of an individual’s behavior
– Focus is that behavior is a function of its
consequence
Concepts:
Concepts:
Behavior
Behaviorisisenvironmentally
environmentallycaused.
caused.
Behavior
Behaviorcan
canbe
bemodified
modified(reinforced)
(reinforced)by
by
providing
providing(controlling)
(controlling)consequences.
consequences.
Reinforced
Reinforcedbehavior
behaviortends
tendsto
tobe
berepeated.
repeated.
•Behaviors are responses to the stimuli individuals
are exposed to
•By changing the cues / stimuli in people’s environ,
behavior can be molded, shaped, changed or
eliminated
•People will do what they are rewarded for doing
•Rewards must be close in time to the desired
behavior
•Punishments should be used sparingly, only for very
important reasons
Relationship
between motivation, job satisfaction,
and job performance?
COORDINATION
Coordination
• Co-ordination is the process
which ensures smooth interplay
of the functions of
management. Common
objectives are achieved without
much wastage of time, efforts
and money with the help of co-
ordination.
PLANNING
03/24/11 CO-ORDINATION 50
Definition
•
• Co-ordination is balancing and
keeping the teams together by
ensuring a suitable allocation of
working activities to the various
members and seeing that these are
performed with due harmony
among the members themselves.
Features or
Characteristics
•
• Provides unity of action
• Co-ordination is necessary to all
levels of organization
• Relevant for group efforts.
• Continuous and dynamic process
• Systems concept
Need & importance
of co-ordination
• Creates ‘Unity in diversity’
• Achieves unity of direction while
supporting functional differentiation
& specialization
• Enables reconciliation of goals
• Effective management of large number
of employees
• Ensure congruity in work flow across
teams
• ‘Empire building’
Essentials of
effective coordination
Continuity simplified
organization
Principles of
Self Effective
coordination
coordination communicati
on
Clear definition
Clear cut Reciprocal of authority
Effective and
objectives relationship leadership responsibility
Modes of
ensuring Co-ordination
–
• External coordination
Internal
coordination
Vertical coordination:
Horizontal coordination:
General public
Financial
Different Institutions
Competitors
institution
Technological Different
Agencies commercial
government organizations
Technological Customers agencies
organization
Problems of
Co-ordination
•
• Natural hindrance
• Lack of administrative talent
• lack of techniques of coordination
• Ideas and objectives
• Misunderstanding
Steps of effective
Co-ordination
•
• Proper delegation of authority and
responsibility
• Preparing and adherence to rigid rules
and regulations, procedures,
policies, etc.
• Establishment of an effective
communication system
Steps of effective
Co-ordination
•
• Establishment of employees’ grievances
cell
• Rewarding congenial & skilled workers
adequately
• The management should induce the
employees to take active part in
meeting, committees and encourage
them to develop friendly relationships
COMMUNICATION
Overview
•
• The Communication Process
• Functions of Communication
• Communication Fundamentals
• Key Communication Skills
Communication Process
Trans
Receiv
mitted
Encodi Messa er
on
ng ge decode
mediu
s
m
Receiv
er
Sender Noise creates
meanin
g
Trans
Source mitted
Messa Encodi
decode on
ge ng
s mediu
m
Communication
Contd….
Functions of Communication
•
• Control
• Motivation
• Emotional Expression
• Information
Communication Fundamentals
Direction:
• Downward
• Upward
• Crosswise
Networks:
• Formal vs. Informal
Directional Flows
All
Chain Wheel
Channels
Barriers to Effective
Communication
•
• Filtering
• Selective Perception
• Emotions
• Language
Barriers to Communication
Basic Communication Skills Profile
________________________________________________
Communication Order Learned Extent Used Extent Taught
____________________________________________
• Listening Skills
• Feedback Skills
• Presentation skills
•
Barriers to Active Listening
•
• Environmental barriers
• Physiological barriers
• Psychological barriers
v Selective Listening
v Negative Listening Attitudes
v Personal Reactions
v Poor Motivation
How to Be an Effective Listener
•
• Focus on specific behaviours
• Keep feedback impersonal
• Keep feedback goal oriented
• Make feedback well timed
• Ensure understanding
• Direct feedback toward behaviour that is
controllable by the recipient
Presentation Skills
can be developed
Preparation is the Key
Presentation Skills
Presentation Skills
Visual Aids
So to conclude :
Always prepare
Channelize you fear
Interact with your audience
LEADERSHIP
What Is Leadership?
Leadership
The ability to influence a
group toward the
achievement of goals.
Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.
Leadership
“Leadership is the activity of
influencing people to strive willingly
for group objectives”.
“It is the process of influencing the
1.Trait approach
2.
3.Behavioural approach
4.
5.Situational approach
•
Trait Approach
Keith davis has summarized four of
the major traits that have an impact
on successful organizational
leadership.
They are:
• Intelligence
• Social maturity and breadth
• Inner motivation and
achievement drives
• Intelligence:Research has shown that generally
a leader has higher intelligence that the
average intelligence of the followers. However
the leader cannot be exceedingly much more
intelligent than his followers
• Social maturity and breadth: Leaders tend to
be emotionally stable and mature and to have
broad interests and activities. They have an
assured, respectful self concept
• Inner motivation and achievement drives:
Leaders have relatively intense motivational
drives of the achievement type. The strive for
intrinsic than extrinsic rewards.
• Human relations attitude: Successful leaders
recognize the worth and dignity of their
followers and are able to emphasize with them.
According to research studies leaders possess
consideration and are employee centered
Trait Approach
According to this theory leaders exhibit certain
traits that followers admire. The traits which
might have an impact on successful
organizational leadership are:
• Physical traits- age, height, weight.
• Background characteristics- education, social
class or status, mobility
• Intelligence- ability, judgment, knowledge
• Personality- aggressiveness, alertness, self
confidence, authoritarian
• Task related characteristics- achievement
need, responsibility, initiative
• Social characteristics- supervisory ability,
cooperativeness, popularity, prestige
Behavioural Approach
•
• Democratic or Autocratic
• Participative or supportive
• Person or Task oriented
• Autocratic: An autocratic leader is one who commands
and expects compliance. He is dogmatic and positive
and leads by his ability to withhold or give rewards
and punishments.
Followers’ undergo
development in stages when
following a leader, and based
on where a follower is in the
stage of development, a
leader must modify his
leadership style..
Readiness=
Ability+Willingness
108
Leadership
Continuum
Boss –centered Employee-centered
leadership leadership
Range of Behavior