CHAPTER – 14

Interpersonal and Organizational Communication

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 CHAPTER – 17
Motivation
Motivation
The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal.

Early Theories of Motivation

Hierarchy of needs theory
Maslow’s theory that human needs— physiological, safety, social, esteem, and self-actualization—form
a sort of hierarchy

The best-known theory of motivation is probably Abraham Maslow’s hierarchy

of needs theory. Maslow was a psychologist who proposed that within every person
is a hierarchy of five needs:

1. Physiological needs: A person’s needs for food, water, sleep, drink, shelter, sex, and other physical
requirements.
2. Safety needs: A person’s needs for security and protection from physical and emotional harm as well
as assurance that physical needs will continue to be met. Protection from elements and enemies,
shelter, clothing.
3. Social needs/ Affiliation needs: A person’s needs for affection, belongingness, acceptance, and
friendship.
4. Esteem needs: A person’s needs for internal esteem factors such as self-respect, autonomy, and
achievement and external esteem factors such as status, recognition, and attention. Self-perception as a
worthwhile person, respect.
5. Self-actualization needs: A person’s needs for growth, achieving one’s potential, and self-fulfillment;
the drive to become what one is capable of becoming.

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Hierarchy of needs

 Lower-order (external): Physiological, safety

 Higher- order (internal): Social, esteem, self-actualization

Needs were categorized as five levels of lower to higher-order needs.

 Satisfied needs will no longer motivate.

 Motivating a person depends on knowing at what level that person is on the hierarchy.

McGregor’s Theory X and Theory Y

Theory X
The assumption that employees have little ambition, dislike work, are lazy, avoid responsibility, and
must be coerced to perform, require close supervision.
Theory Y
The assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-
direction.
Assumption

Motivation is maximized by participative decision making, interesting jobs, and good group relations.

Motivation and needs

Three needs theory (McClelland)
The motivation theory that says three acquired (not innate) needs— achievement, power, and affiliation
—are major motives in work

1. Need for achievement (nAch)

The drive to succeed and excel in relation to a set of standards
2. Need for power (nPow)
The need to make others behave in a way that they would not have behaved otherwise
3. Need for Affiliation (nAff)
The desire for friendly and close interpersonal relationships

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Motivation and Goals
Goal-setting theory
The proposition that specific goals increase performance and that difficult and challenging goals, when
accepted, result in higher performance than do easy goals or no goals.

Benefits of participation in goal-setting

 Increase 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-efficiency) (An individual’s belief that he or she is capable of performing a task)

Motivation and Behavior

Reinforcement theory
Assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced,
s likely to be repeated.

 Positive reinforcement is preferred for its long-term effects on performance.

 Ignoring behavior is better than punishment which may create additional dysfunctional behaviors.

Designing Motivating Jobs

Job design
The way tasks are combined to form complete jobs
Factors influencing job design:
 Changing organizational environment-structure
 The organization’s technology
 Employees’ skill, ability and preference
Job enlargement
The horizontal expansion of a job by increasing job scope (number and frequency of tasks)

Job enrichment
The vertical expansion of a job by adding planning and evaluating responsibilities and autonomy (depth)

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Motivation and Perception
Equity theory
Proposes that employees perceive what they get from a job situations (outcomes) in relation to what
they put in (inputs) and then compare their inputs-outcomes ratio with the input-outcomes ratio of
relevant others.

If the ratios are perceived as equal then a state of equity (fairness) exists.

If the ratios are perceived as unequal, inequity exists and the person feels under- or over rewarded.

When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).

Person A is the employee, and person B is a relevant other or referent

Employee responses to perceived inequities

 Distort own or other’s ratio
 Induce others to change their inputs or outcomes
 Change own inputs or outcomes (seek greater rewards)
 Choose a different comparison
 Quit their job
Employees are concerned with both the absolute and relative nature of organizational rewards

Distributive justice
Perceived fairness of the amount and allocation of rewards among individuals.
Influences an employee’s satisfaction
Procedural justice
Perceived fairness of the process used to determine the distribution of rewards.
Affects an employee’s organizational commitment

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Motivation and Behavior
Expectancy theory (Victor Vroom) important
Expectancy theory states that an individual tends to act in a certain way based on the expectation that
the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
Key to the theory is understanding and managing employee goals and the linkage among and between
effort, performance and reward.
 Effort: employee abilities and training/development
 Performance: valid appraisal system
 Rewards ( goals): understanding employee needs

Expectancy relationships
1. Expectancy or effort-performance linkage is the probability perceived by the individual that exerting a
given amount of effort will lead to a certain level of performance.
2. Instrumentality or performance-reward linkage is the degree to which the individual believes that
performing at a particular level is instrumental in attaining the desired outcome (reward).
3. Valence or attractiveness of reward is the importance an individual place on the potential outcome or
reward that can be achieved on the job. Valence considers both the goals and needs of the individual.

Current issues in motivation

Flexible work/job schedules
 Compressed workweek
Longer daily hours, but fewer days
 Flexible work hours (flextime)
Specific weekly hours with varying arrival, departure, lunch and break times around
certain core hours during which all employees must be present.
 Job Sharing

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 Two or more people split a full-time job.
 Telecommuting
Employees work from home using computer links.

Designing appropriate rewards program

 Open-book management
A motivational approach in which an organization’s financial statements (the “books”)
are shared with all employees

 Employee recognition programs

Personal attention and expressing interest, approval, and appreciation for a job well
done

From Theory to Practice: Guidelines for Motivating Employees

• Recognize individual differences
• Match people to jobs
• Use goals
• Ensure that goals are perceived as attainable
• Individualize rewards
• Link rewards to performance
• Check the system for equity
• Use recognition
• Show care and concern for employees
• Don’t ignore money

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 CHAPTER – 16
Leadership
Who Are Leaders and What Is Leadership
• Leader – Someone who can influence others and who has managerial authority

• Leadership – What leaders do; the process of influencing a group to achieve goals

• Ideally, all managers should be leaders

• Although groups may have informal leaders who emerge, those are not the leaders we’re studying

Leadership research has tried to answer: What is an effective leader?

Early Leadership Theories

Trait Theories (1920s -1930s)
Research focused on identifying personal characteristics that differentiated leaders from nonleaders was
unsuccessful.
Later research on the leadership process identified seven traits associated with successful leadership:
Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge,
and extraversion.

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 Moha important

Managers vs Leaders
Mangers Leaders
Administers Innovates
Is a copy Is an original
Maintains Develops
Focuses on systems and structures Focuses on people
Relies on control Inspires trust
Short range view Long range perspective
Asks “how” and “when” Asks “what” and “why”
Eye on the bottom line (profitability) Eye on the horizon
Imitates Originates
Accepts the status quo Challenges the status quo
Classic good soldier Is their own person
Does things right Does the right thing

Behavioral Theories
Ohio State Studies
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  Identified two dimensions of leader behavior:

– Initiating structure: the role of the leader in defining his or her role and the roles of group members.

– Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings.

 Research findings: mixed results

– High-high leaders generally, but not always, achieved high group task performance and satisfaction.

– Evidence indicated that situational factors appeared to strongly influence leadership effectiveness.

The Managerial Grid

Managerial Grid

 Appraises leadership styles using two dimensions:

Concern for people

Concern for production

 Places managerial styles in five categories:

Impoverished management

Task management

Middle-of-the-road management

Country club management

Team management

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 important

Contemporary Views of Leadership

Transactional Leadership
Leaders who guide or motivate their followers in the direction of established goals by clarifying role and
task requirements.

Transformational Leadership
Leaders who inspire followers to transcend their own self-interests for the good of the organization by
clarifying role and task requirements.

Contemporary Views of Leadership

Charismatic Leadership
An enthusiastic, self-confident leader whose personality and actions influence people to behave in
certain ways.

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Characteristics of charismatic leaders:

 Have a vision.
 Are able to articulate the vision.
 Are willing to take risks to achieve the vision.
 Are sensitive to the environment and follower needs.
 Exhibit behaviors that are out of the ordinary.

Leadership Issues in the 21st Century

Managing Power

 Legitimate power

The power a leader has as a result of his or her position.

 Coercive power

The power a leader has to punish or control.

 Reward power

The power to give positive benefits or rewards.

 Expert power

The influence a leader can exert as a result of his or her expertise, skills, or knowledge.

 Referent power

The power of a leader that arise because of a person’s desirable resources or admired
personal traits.

Developing Trust
Credibility (of a Leader)
The assessment of a leader’s honesty, competence, and ability to inspire by his or her followers

Trust

 Is the belief of followers and others in the integrity, character, and ability of a leader

Dimensions of trust: integrity, competence, consistency, loyalty, and openness

 Is related to increases in job performance, organizational citizenship behaviors, job satisfaction,

and organization commitment.

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 CHAPTER – 18
Controlling Activities and Operations
The word control is nit a good word in some senses.

What Is Control?
Controlling
The process of monitoring activities to ensure that they are being accomplished as planned and of
correcting any significant deviations.

The Purpose of Control

To ensure that activities are completed in ways that lead to accomplishment of organizational goals.

Why Is Control Important?

As the final link in management functions:

 Planning

Controls let managers know whether their goals and plans are on target and what future actions to take.

 Empowering employees

Control systems provide managers with information and feedback on employee performance.

 Protecting the workplace

Controls enhance physical security and help minimize workplace disruptions.

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The Process of Control
1. Measuring actual performance.

2. Comparing actual performance against a standard.

3. Taking action to correct deviations or inadequate standards.

1. Measuring: How & What We Measure

• Sources of Information (How)

Personal observation

Statistical reports

Oral reports

Written reports

• Control Criteria (What)

Employees

Satisfaction

Turnover

Absenteeism

Budgets

Costs

Output

Sales

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2. Comparing
Determining the degree of variation between actual performance and the standard.

Significance of variation is determined by:

 The acceptable range of variation from the standard (forecast or budget).

 The size (large or small) and direction (over or under) of the variation from the standard
(forecast or budget).

3. Taking Managerial Action

 “Doing nothing”

Only if deviation is judged to be insignificant.

 Correcting actual (current) performance

Immediate corrective action to correct the problem at once.

Basic corrective action to locate and to correct the source of the deviation.

A. Corrective Actions

– Change strategy, structure, compensation scheme, or training programs; redesign jobs; or fire
employees

 Revising the standard

Examining the standard to ascertain whether or not the standard is realistic, fair, and
achievable.

– Upholding the validity of the standard.

– Resetting goals that were initially set too low or too high.

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Controlling for Organizational Performance
What Is Performance?
The end result of an activity

What Is Organizational Performance?

The accumulated end results of all of the organization’s work processes and activities

Designing strategies, work processes, and work activities.

Coordinating the work of employees.

Organizational Performance Measures

Organizational Productivity
Productivity: the overall output of goods and/or services divided by the inputs needed to generate that
output.

Output: sales revenues

Inputs: costs of resources (materials, labor expense, and facilities)

Ultimately, productivity is a measure of how efficiently employees do their work.

Three types of controlling

Feedforward Control
A control that prevents anticipated problems before actual occurrences of the problem.

Building in quality through design.

Requiring suppliers conform to ISO 9002.

Concurrent Control
A control that takes place while the monitored activity is in progress.

Direct supervision: management by walking around.

Feedback Control
A control that takes place after an activity is done.

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 Corrective action is after-the-fact, when the problem has already occurred.

Provide managers with information on the effectiveness of their planning efforts.

Enhance employee motivation by providing them with information on how well they are doing.

Tools for controlling organizational performance: Financial Controls

Traditional Controls
Ratio analysis

 Liquidity
 Leverage
 Activity
 Profitability

Budget Analysis

 Quantitative standards
 Deviations

Other measures

 Economic value added (EVA)

 Market value added (MVA)

Balanced Scorecard
Is a measurement tool that uses goals set by managers in four areas to measure a company’s
performance:

 Financial
 Customer

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  Internal processes
 People/innovation/growth assets

Is intended to emphasize that all of these areas are important to an organization’s success and that
there should be a balance among them.

Benchmarking of Best Practices

Benchmark
The standard of excellence against which to measure and compare.

Benchmarking
Is the search for the best practices among competitors or noncompetitors that lead to their superior
performance.

Is a control tool for identifying and measuring specific performance gaps and areas for improvement.

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