Organization and Management SA3 PDF

Organization and Management SA3 Motivation, Leadership, Control Unit 6 - Leading Motivation Psychological force that helps explain what inspires, directs, and maintains human behavior 2 broad bas...

Organization and Management SA3 Motivation, Leadership, Control Unit 6 - Leading Motivation Psychological force that helps explain what inspires, directs, and maintains human behavior 2 broad bases ○ Natural (innate characteristics) ○ Nurture (socialization, culture) Natural Bases of Motivation 1. Personality ○ Unique and relatively stable pattern of behavior, thought and emotions of an individual ○ Big Five Personality i. Extraversion - sociable, talkative, assertive ii. Agreeableness - good natured, cooperative, trustful, not jealous iii. Conscientiousness - achievement-oriented, responsible, persevering iv. Openness to experience - intellectual, imaginative, cultured v. Emotional stability - calm, placid, poised, not neurotic ○ Myers-Briggs Type Indicator (MBTI) i. Less evaluative in terms of “good” and “bad” and is more focused on description and understanding ii. Four dimensions 1. Introversion-extraversion 2. Thinking-feeling 3. Sensing-intuiting 4. Judging-perceiving ○ Assumptions about Human Nature  i. Theory X managers assume people are inherently lazy ii. Theory Y managers assume that work is as natural as play iii. Theory Z (William Ouchi) suggests that people like to be a member of a group and will work most productively in stable groups 2. Innate Needs ○ Needs that you have within yourself ○ Hierarchy of Needs - Maslow i. Self-actualization ii. Self-esteem iii. Love iv. Safety v. Physiological (basic need) ○ ERG Theory - Alderfer i. Existence ii. Relatedness iii. Growth ○ Two-Factor Theory - Herzberg i. Motivator factors - job satisfaction ii. Hygiene factors - job dissatisfaction ○ Job Characteristics Model i. Hackman and Oldham suggest how to increase the motivating potential of a job by increasing: meaningfulness, autonomy, feedback Nurtured Bases of Motivation Intrinsic vs. Extrinsic Intrinsic - comes from enjoyment Extrinsic - factors outside of task itself (praise, money, etc.) McClelland’s Acquired Needs Theory - Serves as guiding framework showing learned/nurtured needs for achievement, power and affiliation 1. Need for Achievement ○ Satisfied by being productive and accomplishing goals ○ Theories:  i. Locke’s Goal Setting Theory → Commitment to goals influences → Goals should be SMART → Confidence influences motivation and success ii. Merton’s Self Fulfilling Prophecy → Self-efficacy refers to a person’s belief that he or she is capable of completing a task successfully → Self-fulfilling prophecy effect is the idea that subordinates often live up (or down) to the expectations of their managers iii. Vroom’s Expectancy Theory → Motivation is a function of three separate calculations → Expectancy - expectation as a person → Instrumentality - reward component → Valence - are the rewards desirable? iv. Skinner’s Reinforcement Theory → Operant conditioning → Theory uses consequences to promote learning or shape behavior → Positive reinforcement: administration of pleasant consequence following desired behavior → Punishment: administering on unpleasant consequence following an undesired behavior → Negative reinforcement: removing an unpleasant consequence following a desired behavior → Extinction: the absence of any reinforcement following a behavior to work weaken an unwanted behavior 2. Need for Affiliation ○ Satisfied by forming meaningful relationships and being part of a supportive team or community i. Organizational Commitment → Seek to identify or affiliate with others to learn from them, gain support, and feel good about themselves ii. Principles of Exchange → Organizational relationships and interactions are based on give-and-take dynamic 3. Need for Power ○ Having control  i. Legitimate Power → Power from position ii. Reward Power → Power to give or withhold rewards iii. Coercive Power → Ability to gain compliance through threat of punishment iv. Expert Power → Power that come from special knowledge, skills, and expertise that the person possesses v. Referent Power → Ability to motivate through identification with, admiration for, or friendship with others 4. Need for Equity ○ Receiving fair treatment and recognition based on one’s contributions and performance, ensuring a balanced and just environment i. Equity → Judge what other people have → Equity: people judge their own outcome/input ratio is equal to others’ outcome/input ratios → Under-rewarded: occurs when people feel their own outcome/input ratio is less favorable than the comparison → Over-rewarded: occurs when less competent people are rewarded more Leadership Ability to influence others to success Leaders are made Leading vs. Managing All leaders are managers, but not all managers are leaders Leadership Traits 1. Charisma: Special trait that some leaders have to attract and inspire others Leadership Styles Use of Authority Autocratic Managers make decisions Laissez-faire Employees make decisions, minimum guidance from management Democratic Group makes decisions Everyone is encouraged to make contributions Leadership Behavior Developed by Robert Blake and Jane Mouton Team Style Concern for people and production Task Style Production > people Clubhouse Style People > production Impoverished Style Concern for non Leadership Situations Situation determines which leadership style is effective at maximizing productivity 1. Directing ○ High task direction ○ Low relationship behavior 2. Coaching ○ High task direction ○ High relationship behavior 3. Supporting ○ Participating ○ Low task direction ○ High relationship behavior 4. Delegating ○ Low task direction  ○ Low relationship behavior Contingency Models 1. Fiedler’s Contingency Theory ○ Assumes that a leader’s style is either relationship-oriented or task-oriented that this style is fixed ○ Leaders will need to seek out or be assigned positions 2. House’s Path-Goal Theory ○ Focuses on what leaders can do 3. Hersey and Blanchard’s Situational Leadership Theory ○ Focused on the characteristics of followers Types of Leaders 1. Transactional a. Fair exchanges with members to motivate achieving goals 2. Transformational a. Inspiring change in members and organization b. Innovative 3. Servant Leader a. Followers are prioritized more than oneself 4. Spiritual a. Spirituality = state of heightened sensitivity to one’s human or transcendent spirit b. Spiritual Leadership i. Vision, faith, hope, and love as means to align values and build commitment Teams and Communication Group Affiliation Big or small Team Achievement-oriented Smaller in size Interdependently  A. Team Development a. Conflict may rise from individuality i. Habits start to form within the team (understanding of weaknesses and strengths) ii. Common cause of conflict: 1. Scarce resource 2. Conflicting goals 3. Personal conflict styles B. Group Think a. Tendency to be unanimous rather than considering alternatives i. CONFLICT: Limit to potential ii. REMEDY: Devil’s Advocate - person who questions why things are the way they do it iii. REMEDY: Dialectical Inquiry - Asking “Why?” Communication Process of transferring information by using meaningful symbols from one to another Sender -> receiver 4-Step Comm. Process Verbal or written 1. Sender identifies a message ○ Filtering: information is withheld → Positive filtering: withholding non-relevant info → Negative filtering: withholding relevant info 2. Sender encodes and transmits message ○ Identify and overcome communication barriers → Noise → Time → Length of message → Semantic problems: vocabulary/language barriers 3. Message heard and decoded by receiver ○ Decoding: attributing meaning ○ Perception → Stereotyping  → Selective perception 4. Feedback ○ Receiver lets sender know whether the message has been received as intended Richness of Comm Media Information Channels - Formal - Chain of command - Informal - Skips hierarchical levels - Grapevine - Unofficial information flows Unit 7 - Control ○ Ensuring that members are acting consistently with the organization’s values and standards 4-Step Control Process 1. Establish key performance standards ○ They cannot control everything ○ Managers must be selective in identifying which activities are most important to control Value Chain ○ Shows sequence of activities needed to convert an organization’s inputs into outputs ○ Helps design control systems that minimize costs ○ IPO - Input, Process, Output ○ Drawbacks: ends remain unconnected, treated as sequential and linear which does not recognize the interplay and the processes in the “links” in the chain Value Loop  ○ Activities whereby an organization’s inputs are converted into outputs, which in turn are linked to the organization’s future inputs ○ Your output can be somebody’s input ○ Makes it more sustainable 2. Monitor performance ○ Data - facts and figures, majority are not useful ○ Information - data that have been given meaning and demand to have value Types of Inventory ○ Raw materials ○ Work-in-Progress ○ Finished Goods 3. Evaluate performance ○ Compare information collected in second step to goals or standards in the first step ○ Evaluate system or individual performance? ○ TQM - Total Quality Management: seeking continuous improvement in work systems so that products or services better meet the quality desired by customers According to Deming ○ There will always be variation in performance of systems and workers ○ Individual performance is determined more by systemic (organizational) factors than the individual ○ Management’s responsibility to improve system ○ Less variation yields higher quality output = Less inconsistencies yields higher quality 4. Respond accordingly ○ Ongoing activity that involves any step or stakeholder Controlling Tools Types of Control Systems 1. Bureaucratic Control ○ Makes use of rules, regulations and formal authority  2. Market Control ○ Makes use of market mechanism such as pricing and market share 3. Clan Control ○ Makes use of shared values, norms and goals Types of Control 1. Feedforward a. Anticipates problem 2. Concurrent a. Corrects problem as it happens 3. Feedback a. Corrects problem after it occurred Budget as Control Most widely used method for managerial control Financial budgets pertain to revenues, costs, cash, and capital Non-financial budgets Financial Ratios Financial measures of performance from accounting records a. Liquidity ratios ○ Current ratio = current assets = current liabilities ○ Short term obligations b. Activity measurements ○ Inventory turnover = cost of goods sold + average inventory ○ Generate sales/manage operation c. Profitability ratios ○ Return on investment = net profit after taxes + total assets ○ Company’s ability to generate profit relative to its revenue, assets, or equity d. Factor productivity ○ Total factor productivity = value of outputs + (value of labor + capital + materials + energy) ○ Efficiency to turn input into output Balance Scorecard Control - Company is concerned about multiple aspects 1. Financial 2. Customer 3. Employee