Unit 3

Directing and Controlling at

supervisory level
Course Outcome: Use principles of directing and
controlling for implementing the plans

Topic 2: Elements of Direction

 Elements of Direction
• There are three elements of direction namely,
• Communication – communication is the process of passing
information and understanding from one person to other
person
• Leadership – leadership is the process in which a
manager/supervisor guides and influences the effort of his
subordinates
• Motivation - motivation means arousing desire or wish in
the minds of workers to give their greatest to the organization.
 Motivation
• Motivation is inspiring the subordinates to contribute
with zeal and enthusiasm towards organizational goals.
• Performance of an employee depends on two factors:
• Ability to work
• Willingness to work
• Mathematical representation is as follows:
• Performance = Ability x Willingness
• Thus, motivation is enhancing the willingness to work
which improves the performance.
 Motivational Theories.

• Maslow’s Need Hierarchy Theory

• McClelland’s Need Theory
• Vroom’s Expectancy Theory
• Herzberg’s Two Factors Theory
• Adam’s Equity Theory
• Carrot and Stick Approach
• Skinner’s Reinforcement Theory
 Maslow’s Need Hierarchy Theory

• In the early 1940s, Abraham Maslow created his theory of needs .

• This identified the basic needs that human beings have, in order of
their importance: physiological needs, safety needs, and the needs
for belonging, self-esteem and "self-actualization".
• Maslow's hierarchy of needs is a motivational theory in psychology
comprising a five-tier model of human needs, often depicted as
hierarchical levels within a pyramid.
• Needs lower down in the hierarchy must be satisfied before
individuals can attend to needs higher up.
• From the bottom of the hierarchy upwards, the needs are:
physiological, safety, love and belonging, esteem, and
self-actualization.
.

Maslow’s Need Hierarchy Theory

 McClelland’s Need Theory
• David McClelland in 1961 wrote a book, "The Achieving
Society”, in which he identified three motivators that he believed
we all have:
• a need for achievement,
• a need for affiliation, and
• a need for power.
• People will have different characteristics depending on their
dominant motivator.
• According to McClelland, these motivators are learned (which is
why this theory is sometimes called the Learned Needs Theory).
• McClelland says that, regardless of our gender, culture, or age, we
all have three motivating drivers, and one of these will be our
dominant motivating driver. This dominant motivator is largely
dependent on our culture and life experiences.
 McClelland’s Need Theory
These characteristics are as follows:
Dominant
Characteristics of This Person
Motivator
•Has a strong need to set and accomplish challenging goals.
•Takes calculated risks to accomplish their goals.
Achievement •Likes to receive regular feedback on their progress and
achievements.
•Often likes to work alone.
•Wants to belong to the group.
•Wants to be liked, and will often go along with whatever the
Affiliation rest of the group wants to do.
•Favors collaboration over competition.
•Doesn't like high risk or uncertainty.
•Wants to control and influence others.
•Likes to win arguments.
Power
•Enjoys competition and winning.
•Enjoys status and recognition.
 McClelland’s Need Theory
• Those with a strong power motivator are often divided into two
groups: personal and institutional.
• People with a personal power drive want to control others, while
people with an institutional power drive like to organize the efforts
of a team to further the company's goals.
• As you can probably imagine, those with an institutional power
need are usually more desirable as team members.
• McClelland's theory can help to identify the dominant motivators
of people on the team.
• The manager can then use this information to influence how to set
goals and provide feedback, and how to motivate and reward team
members.
• The manager can also use these motivators to craft, or design, the
job around team members, ensuring a better fit.
 Vroom’s Expectancy Theory
• Vroom’s Expectancy Theory assumes that behavior results from
conscious choices among alternatives whose purpose is to
maximize pleasure and minimize pain.
• Together with Edward Lawler and Lyman Porter, Victor Vroom
suggested that the relationship between people's behavior at work
and their goals was not as simple as was first imagined by other
scientists.
• Vroom realized that an employee's performance is based on
individuals factors such as personality, skills, knowledge,
experience and abilities.
• The theory suggests that although individuals may have different
set of goals, they can be motivated if they believe that:
• There is a positive correlation between efforts and performance,
• Favorable performance will result in a desirable reward,
• The reward will satisfy an important need,
• The desire to satisfy the need is strong enough to make the effort
worthwhile.
 Vroom’s Expectancy Theory
• The theory is based upon the following beliefs:
Force = Valence x Expectancy
• Force
• Is the strength of a person’s motivation
• Valence
• Valence refers to the emotional orientations people hold with
respect to outcomes [rewards]. The depth of the want of an
employee for extrinsic [money, promotion, time-off, benefits] or
intrinsic [satisfaction] rewards. Management must discover what
employees value.
• Expectancy
• Employees have different expectations and levels of confidence
about what they are capable of doing. Management must discover
what resources, training, or supervision employees need.
 Vroom’s Expectancy Theory
• Instrumentality
• The perception of employees as to whether they will actually get
what they desire even if it has been promised by a manager.
Management must ensure that promises of rewards are fulfilled and
that employees are aware of that.
• Vroom suggests that an employee's beliefs about Expectancy,
Instrumentality, and Valence interact psychologically to create a
motivational force such that the employee acts in ways that bring
pleasure and avoid pain.
 Herzberg’s Two Factors Theory
• In 1959, Frederick Herzberg, a behavioral scientist proposed a
two-factor theory or the motivator-hygiene theory.
• According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent
dissatisfaction.
• According to Herzberg, the opposite of “Satisfaction” is “No
satisfaction” and the opposite of “Dissatisfaction” is “No
Dissatisfaction”.
Herzberg’s view of
satisfaction and
dissatisfaction

• Herzberg classified these job factors into two categories-

• Hygiene factors
• Motivational factors
Herzberg’s Two Factors Theory
 Herzberg’s Two Factors Theory
• Hygiene factors- Hygiene factors are those job factors which are
essential for existence of motivation at workplace.
• These do not lead to positive satisfaction for long-term. But if these
factors are absent / if these factors are non-existant at workplace, then
they lead to dissatisfaction.
• In other words, hygiene factors are those factors which when
adequate/reasonable in a job, pacify the employees and do not make
them dissatisfied. These factors are extrinsic to work.
• Hygiene factors are also called as dissatisfiers or maintenance
factors as they are required to avoid dissatisfaction.
• These factors describe the job environment/scenario.
• The hygiene factors symbolized the physiological needs which the
individuals wanted and expected to be fulfilled.
• Hygiene factors include:
• Pay - The pay or salary structure should be appropriate and
reasonable. It must be equal and competitive to those in the same
industry in the same domain.
 Herzberg’s Two Factors Theory
• Company Policies and administrative policies - The company
policies should not be too rigid. They should be fair and clear. It
should include flexible working hours, dress code, breaks, vacation,
etc.
• Fringe benefits - The employees should be offered health care plans
(mediclaim), benefits for the family members, employee help
programmes, etc.
• Physical Working conditions - The working conditions should be
safe, clean and hygienic. The work equipments should be updated
and well-maintained.
• Status - The employees’ status within the organization should be
familiar and retained.
• Interpersonal relations - The relationship of the employees with his
peers, superiors and subordinates should be appropriate and
acceptable. There should be no conflict or humiliation element
present.
• Job Security - The organization must provide job security to the
 Herzberg’s Two Factors Theory
• Motivational factors- According to Hertzberg, the hygiene factors
cannot be regarded as motivators. The motivational factors yield
positive satisfaction. These factors are inherent to work.
• These factors motivate the employees for a superior performance.
• These factors are called satisfiers.
• These are factors involved in performing the job. Employees find
these factors intrinsically rewarding.
• The motivators symbolized the psychological needs that were
perceived as an additional benefit.
 Herzberg’s Two Factors Theory

• Motivational factors include:

• Recognition - The employees should be praised and recognized for
their accomplishments by the managers.
• Sense of achievement - The employees must have a sense of
achievement. This depends on the job. There must be a fruit of some
sort in the job.
• Growth and promotional opportunities - There must be growth
and advancement opportunities in an organization to motivate the
employees to perform well.
• Responsibility - The employees must hold themselves responsible
for the work. The managers should give them ownership of the work.
They should minimize control but retain accountability.
• Meaningfulness of the work - The work itself should be
meaningful, interesting and challenging for the employee to perform
and to get motivated.
 Adam’s Equity Theory
• Adams' Equity Theory is named for John Stacey Adams, a
workplace and behavioral psychologist, who developed his job
motivation theory in 1963.
• The Adam’s Equity Theory is based on the following assumptions:
• Individuals make contributions (inputs) for which they expect certain
rewards (outcomes).
• To validate the exchange, an individual compares his input and
outcomes with those of others and try to rectify the inequality.
• Adams' Equity Theory calls for a fair balance to be struck between
an employee's inputs (hard work, skill level, acceptance, enthusiasm,
and so on) and an employee's outputs (salary, benefits, intangibles
such as recognition, and so on).
• In this theory, equity is defined as a ratio between the individual’s
job inputs compared to the rewards others are receiving for similar
job inputs.
Person’s Reward = Others Reward
Person Input Others Input
Adam’s Equity Theory
 Adam’s Equity Theory
• There are three types of exchange relationships that arise when an
individual input/outcomes are compared with that of the other
persons.
1. Overpaid Inequity: When an individual perceives that his
outcomes are more as compared to his inputs, in relation to others.
The overpaid inequity can be expressed as:

2. Underpaid Inequity: When an individual perceives that his

outcomes are less as compared to his inputs, in relation to others.
The Underpaid Equity can be expressed as:

3. Equity: An individual perceives that his outcomes in relation to

his inputs are equal to those of others. The equity can be expressed
as:
 Adam’s Equity Theory
• Thus, Adam’s equity theory shows the level of motivation among the
individuals in the working environment.
• An individual is said to be highly motivated if he perceives to be
treated fairly. While the feelings of de-motivation arise, if an
individual perceives to be treated unfairly in the organization.
• Thus, an individual’s level of motivation depends on the extent he
feels being treated fairly, in terms of rewards, in comparison to
others.
 Carrot and Stick Approach
• The Carrot and Stick approach of motivation is based on
the principles of reinforcement and is given by a philosopher
Jeremy Bentham, during the industrial revolution.
• The Carrot and Stick Approach of Motivation is a traditional
motivation theory that asserts, in motivating people to elicit desired
behaviors, sometimes the rewards are given in the form of money,
promotion, and any other financial or non-financial benefits and
sometimes the punishments are exerted to push an individual
towards the desired behavior.
• This theory is derived from the old story of a donkey, the best way to
move him is to put a carrot in front of him and jab him with a stick
from behind.
• The carrot is a reward for moving while the stick is the punishment
for not moving and hence making him move forcefully.
• Thus, an individual is given carrot i.e. reward when he performs
efficiently and is jabbed with a stick or is given a punishment in case
of non-performance.
Carrot and Stick Approach
 Carrot and Stick Approach
• While giving the punishments, the following points need to be taken
care of:
• Punishment is said to be effective in modifying the behavior if an
individual selects a desirable alternative behavior.
• If the above condition does not occur the behavior will be
temporarily suppressed and may reappear after the punishment is
over.
• The punishment is more effective when given at the time the
undesirable behavior is actually performed.
• The management should make sure, that punishment is properly
administered and does not become a reward for the undesirable
behavior.
• Thus, carrot and stick approach of motivation should be applied
carefully such that, both have the positive motivational effect on the
people in the organization.
 Skinner’s Reinforcement Theory
• Reinforcement theory of motivation was proposed by B F Skinner
and his associates.
• It states that individual’s behavior is a function of its consequences.
• It is based on “law of effect”, i.e, individual’s behavior with positive
consequences tends to be repeated, but individual’s behavior with
negative consequences tends not to be repeated.
•Reinforcement theory of motivation overlooks the internal state of
individual, i.e., the inner feelings and drives of individuals are ignored
by Skinner.
•This theory focuses totally on what happens to an individual when he
takes some action.
•Thus, according to Skinner, the external environment of the
organization must be designed effectively and positively so as to
motivate the employee.
• This theory is a strong tool for analyzing controlling mechanism for
individual’s behavior. However, it does not focus on the causes of
individual’s behavior.
 Skinner’s Reinforcement Theory

•The managers use the following methods for controlling the behavior
of the employees:
•Positive Reinforcement- This implies giving a positive response
when an individual shows positive and required behavior.
•For example - Immediately praising an employee for coming early for
job. This will increase probability of outstanding behavior occurring
again.
•Reward is a positive reinforce, but not necessarily. If and only if the
employees’ behavior improves, reward can said to be a positive
reinforcer.
•Positive reinforcement stimulates occurrence of a behavior. It must be
noted that more spontaneous is the giving of reward, the greater
reinforcement value it has.
 Skinner’s Reinforcement Theory

•Negative Reinforcement- This implies rewarding an employee by

removing negative / undesirable consequences. Both positive and
negative reinforcement can be used for increasing desirable / required
behaviour.
•Punishment- It implies removing positive consequences so as to lower
the probability of repeating undesirable behavior in future.
•In other words, punishment means applying undesirable consequence
for showing undesirable behavior.
•For instance - Suspending an employee for breaking the organizational
rules.
• Punishment can be equalized by positive reinforcement from
alternative source.
 Skinner’s Reinforcement Theory
•Extinction- It implies absence of reinforcements.
•In other words, extinction implies lowering the probability of
undesired behavior by removing reward for that kind of behavior.
•For instance - if an employee no longer receives praise and admiration
for his good work, he may feel that his behavior is generating no
fruitful consequence.
•Extinction may unintentionally lower desirable behavior.
•Implications of Reinforcement Theory
•Reinforcement theory explains in detail how an individual learns
behavior.
•Managers who are making attempt to motivate the employees must
ensure that they do not reward all employees simultaneously.
•They must tell the employees what they are not doing correct.
•They must tell the employees how they can achieve positive
reinforcement.
Skinner’s Reinforcement Theory