What are continuing management themes

of the 21st century?

• Quality and performance excellence
– Managers and workers in progressive organizations are quality conscious.
• Quality and competitive advantage are linked.
– Total quality management (TQM)
• Comprehensive approach to continuous quality improvement for a total organization.
• Creates context for the value chain.

• Managers and workers in truly progressive organization are quality conscious.

They understand the basic link between competitive advantage and ability to
always deliver quality goods and services to the customer. The best organizational
culture includes quality as a core value and reinforces the quality commitment in
all aspects of the work environment.
• Every effort is made in total quality management to build quality into all aspects
of operations from initial acquisition of resources through the transformation
processes and work system all the way to ultimate product delivery to customers
or clients
Resource Material
People and Finished
And received and
technology products Customers
material organized for
creates distributed served
Flow in use
products

• Figure describes the system context for TQM with respect to the value chain- a specific
sequence of activities that transforms the raw material into finished goods or services.
Quality must be maintained at each point in the value chain, whether it is performed
directly by the organization or is the part of its network of relationship with the
suppliers and contractors.
• Closely aligned with the pursuit of quality is management commitment to the
performance excellence a theme that rose to special prominence over 20 yrs ago when
In search of excellence lesson for America's best run companies was published by the
Thomas peters and Robert waterman. Based on case investigations of successful
companies, they identified 8 attributes of performance excellence.
Eight attributes of performance excellence :
• A bias for action, active decision making - 'getting on with it'. Facilitate
quick decision making & problem solving tends to avoid bureaucratic control
• Close to the customer - learning from the people served by the business.
• Autonomy and entrepreneurship - fostering innovation and nurturing
(promoting)'champions'.
• Productivity through people- treating rank and file employees as a source of
quality.
• Hands-on, value-driven - management philosophy that guides everyday
practice - management showing its commitment.
• Stick to the knitting - stay with the business that you know.
• Simple form, lean staff - some of the best companies have minimal HQ staff.
• Simultaneous loose-tight properties - autonomy in shop-floor activities plus
centralized values.
 Global awareness
– Pressure for quality and performance excellence is created by a highly
competitive global economy.
– Has promoted increasing interest in new management concepts.
– We are just emerging from a decade in which the quality and
performance excellence themes were reflected in the rise of :
• Process engineering
• Virtual organizations
• Agile factories
• Network firms

• But while the best formulas for success continues to be

tested and debated an important fact remains. much of
the pressure for quality and performance excellence is
created by the forces of globalization and highly
competitive global economy.
 LEARNING ORGANIZATION
• A learning organization is the term given to a
company that facilitates the learning of its
members and continuously transforms itself.[1]
Learning organizations develop as a result of the
pressures facing modern organizations and enables
them to remain competitive in the business
environment.[2] A learning organization has five
main features; systems thinking, personal mastery,
mental models, shared vision and team learning.
• Systems thinking. The idea of the learning organization developed from a body of
work called systems thinking This is a conceptual framework that allows people to
study businesses as bounded objects. Learning organizations use this method of
thinking when assessing their company and have information systems that measure
the performance of the organization as a whole and of its various
components.Systems thinking states that all the characteristics must be
apparent(clearly visible) at once in an organization for it to be a learning
organization. If some of these characteristics is missing then the organization will
fall short of its goal. However O’Keeffe believes that the characteristics of a learning
organization are factors that are gradually acquired, rather than developed
simultaneously.
• Personal mastery. The commitment by an individual to the process of learning is
known as personal mastery. There is a competitive advantage for an organization
whose workforce can learn quicker than the workforce of other organizations. [
Individual learning is acquired through staff training and development, ] however
learning cannot be forced upon an individual who is not receptive to learning ,
Research shows that most learning in the workplace is incidental, rather than the
product of formal training, therefore it is important to develop a culture where
personal mastery is practiced in daily life.[A learning organization has been
described as the sum of individual learning, but there must be mechanisms for
individual learning to be transferred into organizational learning.
• Mental models. The assumptions held by individuals and organizations are called
mental models. To become a learning organization, these models must be
challenged. Individuals tend to espouse(adopt) theories, which are what they intend
to follow, and theories-in-use, which are what they actually do. Similarly,
organisations tend to have ‘memories’ which preserve certain behaviours, norms and
values. In creating a learning environment it is important to replace confrontational
attitudes with an open culture that promotes inquiry and trust. To achieve this, the
learning organization needs mechanisms for locating and assessing organizational
theories of action.Unwanted values need to be discarded in a process called
‘unlearning’. Wang and Ahmed refer to this as ‘triple loop learning.’
• Shared vision. The development of a shared vision is important in motivating the
staff to learn, as it creates a common identity that provides focus and energy for
learning. The most successful visions build on the individual visions of the employees
at all levels of the organization,thus the creation of a shared vision can be hindered
by traditional structures where the company vision is imposed from above.Therefore,
learning organizations tend to have flat, decentralized organizational structures.The
shared vision is often to succeed against a competitor, however Senge states that
these are transitory(not permanent) goals and suggests that there should also be
long term goals that are intrinsic(belonging) within the company.
• Team learning. The accumulation(acquisition) of individual learning constitutes
Team learning. The benefit of team or shared learning is that staff grow more
quickly[ and the problem solving capacity of the organization is improved through
better access to knowledge and expertise. Learning organizations have structures
that facilitate team learning with features such as boundary crossing and openness.
Team learning requires individuals to engage in dialogue and discussion ] therefore
team members must develop open communication, shared meaning, and shared
understanding.[Learning organizations typically have excellent knowledge
management structures, allowing creation, acquisition, dissemination, and
implementation of this knowledge in the organization.
• [
• Benefits
• The main benefits are;
• Maintaining levels of innovation and remaining competitive
• Being better placed to respond to external pressures
• Having the knowledge to better link resources to customer needs
• Improving quality of outputs at all levels
• Improving Corporate image by becoming more people oriented
• Increasing the pace of change within the organization
 In the 21 century, manager
st
• Managers of21st century will have to be excel as never before to meet the
expectations held of them and of the organization they lead. Importantly
we must all recognize that new managerial outlooks and new managerial
competencies appropriate to the new time are requirement for the future
leadership success. At the very least the 21st century manager must be :
• Global strategist: understanding the interconnection among nations,
cultures and economies planning and acting with the due consideration
with them.
• Master of technology comfortable with technology and understanding of
technological trends and their implications able to use technology to best
advantage s.
• Inspiring leader: Attracting high motivated workers and inspiring them
with a high performance culture where team and individuals can do their
best work.
• Model of ethical behavior : acting ethically is always setting high ethical
standards for others to follow, building a work culture that values ethical
and social responsibilities.
 Other characteristics
• Personal Characteristics
of a manager
• Self-Motivation: An effective manager can’t motivate others if he or she can’t self-
motivate. Self-motivation, the ability to get yourself going, and take charge of what’s next
for you, is a vital personal characteristic for a manager. You have to keep yourself going —
and motivate those who work with you.
• Integrity: People trust a good manager because they know he or she has personal integrity.
Workers need to know that you will fight for them, do what you say, and follow the rules.
• Dependability/Reliability: As a person, you should be dependable and reliable. Your
superiors, as well as your subordinates, need to know that you can be counted on. Others
in the organization should be able to rely on you.
• Optimism: Do you look to the future with hope? An optimistic attitude can help
build morale in your employees. Your positive attitude can inspire others, and help them
feel good about getting things done.
• Confidence: Do you have confidence in yourself. You need to be able to make decisions in
confidence, and show others that you are capable of making good decisions. Your
confidence will rub off on others, and can be of benefit.
• Calmness: As the manager, you can’t afford to break down when the pressure is on. The
ability to remain calm and do what needs to be done is essential in a good manager.
• Flexibility: A certain amount of flexibility is needed by a manager, since he or she may need
to adapt to changing situations.
• Business Characteristics
• Industry Knowledge: What do you know about the industry you are in? It helps
understand your industry so that you can answer questions and perform your
work more effectively. Workers may not need industry knowledge, but a
manager should have some.
• Know When to Delegate: An effective manager knows that some tasks need to
be delegated. You should be able to identify workers who will do well, and give
them tasks they can succeed at — while helping the project.
• Organization: You need to be organized in order to be a good manager. Keep
track of projects, employees and assignments so that you are on top of what
needs to happen in the business.
• Basic Money Management: Understand basic financial concepts so that you
understand how to manage money as part of a project you have been given.
• Business Hierarchy: You should know how the hierarchy works at your
business, and follow the chain of command. Make sure that you understand
your duties, and to whom you report. You should also know how the
organization affects your subordinates.
• Legal Implications: While you don’t need to be a law expert, you should have a
grasp of the legal implications of sexual harassment, proper hiring and firing
practices, confidentiality, and more.
• Communication Qualities
• Written Communication: Learn how to communicate effectively in writing. A
good manager should be able to write professionally and with correct
grammar, expressing him or herself in email, memos, and thank you notes.
• Public Speaking: As a good manager, you should know how to speak publicly,
annunciating your words, and concisely communicating your ideas, whether
in an interview, or addressing workers.
• Constructive Feedback: Learn how to provide feedback in a way that is
helpful to workers and others.
• Active Listening: One of the most important communication skills is listening.
Make sure you are listening to your workers, superiors and customers, and
that you acknowledge them.
• Specific: When giving instructions, be specific in what you want, and in
expected outcomes. Make sure your employees understand what should
happen.
• Organize Your Presentations: Organize and practice your presentations
before giving them so that you are clear and concise, and so that your
presentation flows well.
• Relationship Qualities
• Customer Service: You might be surprised to discover the customer service is a
relationship quality. However, it is. You need to be able to build good relationships
with customers if you want to be a good manager. Learn how to relate to customers,
and see things from their perspective.
• Mediator: Do you know how to make peace? Often, a good manager needs to be able
to act as a mediator between workers, between a worker and a client, or between a
superior and a worker. Brush up on your mediation qualities, and learn
conflict resolution techniques to be a good manager.
• Team Player: Are you part of a team? You need to be able to function as part of a
team if you want to succeed as an effective manager. Make sure that you are willing to
work with others, and that you will hold up your end.
• Respect: You need to be respectful of your workers if you are to have respect as a
manager in return. It’s up to you to set the example and build relationships of respect.
• Collaboration: You’ll need to set up collaborations with others, and with your team.
You should also be able to work well with others, and understand how to integrate
ideas and personalities.
• Value Others: A good manager helps employees feel valued. Surveys show that
employees want recognition from their superiors, and you need to make sure to
recognize contributions from your workers.
 Decision making approaches

• Management writers, practitioners and

theorists have posited numerous approaches
for effective decision making. Traditionally,
these have be categorised four main ways:
• Logical systems approach;
• Contingency approach;
• Quantitative approach; and
• Qualitative approach.
 The logical systems
• The logical systems approach derived from the rational approach and is a
dominated and directed research in problem-solving until the 1960s and its
influence remains to this day. A logical systems approach to problem solving is
premised on a rational decision making model. Here a manager would undertake
steps towards a solution that maximises goal attainment. A number of phases to
decision making and problem solving can be advanced using the logical systems
approach. Rasberry and Lemoine Effective Managerial Communication , identified
the following very rational set of stages to a logical systems approach to decision
making (1986:366-373).
• Defining the problem
Accurately defining the problem is essential. If you don't identify the real problem
the solution is obviously going to be wrong and likely make the process of decision
making a waste of time.
• Analysing the problem
Analysing the problem necessitates an understanding of process. A process is
essentially the sequence of steps to produce goods and services. If these are
delineated prior to problem solving, analysis of the problem can be undertaking
logically by examining the steps of the production process. Further, if the process is
clearly documented, the cause of the problem is more likely to emerge.
• Generating alternative solutions
It is important to generate as many solutions to the problem as possible within the
parameters defined
• Choosing a solution or course of action
Once a solution is derived it should be evaluated against the established
criteria, the same criteria applying to all possible solutions. The solution that
most effectively meets the criteria should be selected.
• Implementing the solution
There is often a disparity between the solution agreed to in a group and the
solution implemented - much to the dismay of the group involved. This is
because the group fails to determine a plan for implementing the decision. A
plan usually comprises goals, time frames and persons responsible for each
step. Another reason is because the group fails to assess obstacles to
implementing the solution including which groups or agencies might be hostile
to the solution. Such factors need to be accounted for and a strategy for
solution implementation effected.
• Evaluating the effectiveness of the solution
Evaluation of the solution occurs at two levels. First, did the implementation
plan meet the goals and objectives? And second, did the solution via the plan
eliminate the problem? Another factor for evaluation is to determine whether
the solution and/or the plan resulted in any new problems, in which case the
six step process begins again
• This systematic approach is premised on a rational decision making theory that solves
problems in the best interests of the organisation. In reality, there are a number of factors
that mitigate against this:
• The problem is not always well defined, nor are the goals succinct or the range of options
apparent. Therefore, the best path is not always apparent.
• There are limits to a manager's information-processing capacity. This results in managers
simplifying problems in order to understand them. The solution that results may thus be less
than optimal.
• Managers sometimes mix solutions with problems. This refers to management defining a
problem in terms of known and acceptable solutions that can preclude alternative and
perhaps better solutions.
• Managers select solutions for accessibility rather than quality. Thus, a manager may ignore
important factors or information because in is difficult to access.
• Managers sometimes prematurely commit themselves to one solution
• Managers do not always search for alternative solutions when the tried solution fails to work.
Instead, managers often escalate their commitment to a wrong course of action.
• Time and cost constraints reduce the availability of alternative options.
• These factors led some theorists to propose a model of bounded rationality . In this model, a
limited set of criteria for problem solving is identified including a limited range of alternatives
so that a satisfactory (as opposed to optimal) solution is reached. The model also
acknowledges that politics and power will influence the acceptance of, and commitment to,
the solution.
 Contingency approach
• The contingency approach recognises that problems can be categorised a number of
different ways. Simon refers to problems on a continuum from well-structured to ill-
structured (Simon 1973:181). A well-structured problem has identifiable procedures for its
resolution: that is, the problem, when confronted, has a known methodology to resolve it.
• According to Mintzberg, an ill-defined problem involves a task requiring decision processes
that have not been encountered in quite the same form and for which no predetermined
and explicit set of ordered responses exists. (Mintzberg et al 1976:246)
• The contingency approach led theorists to differentiate between programmed decisions to
handle well-structured problems by providing routine and repetitive procedures and non-
programmed decisions to handle a problem requiring a unique solution. Rules and policies
predominate in programmed decisions thereby providing managers with a high degree of
certainty about the appropriateness of the solution. In contrast, non-programmed
decisions bring managers a high degree of uncertainty and therefore risk. The problem
therefore requires both qualitative and quantitative solution methodologies to reduce the
risk. When a manager solves a problem in isolation the risk is higher than when a manager
enrols others to assist with the solution. The risk may be reduced by a factor associated
with the increased number of people who participate in the problem solution. This is why
some managers prefer to solve problems in a group situation
• The advantages of group problem solving are:
• More complete information
• More alternatives are generated
• Acceptance of solutions are increased
• The legitimacy of the solution is increased.
• The disadvantages of group problem solving are:
• Minorities can dominate (more powerful)
• Pressures to conform are applied by more powerful members
• Time consuming
• Responsibility for the solution is ambiguous.
• The contingency approach has spawned two separate
approaches to problem solving: qualitative approaches and
quantitative approaches.
Quantitative - schematic and mathematical approaches

• The quantitative approach to decision making is derived from the concept of

project management that allocates mathematical weightings for managing
problems associated with time, work allocation, costs and co-ordination of a
project. Three illustrative techniques are Decision Trees, PERT and CPM. All
approaches are also major techniques used in risk analysis and quantification
of risk. Making good decisions demands a thorough analysis of all key issues,
with information formulation and input throughout.
• Decision Trees are a schematic representation of the alternatives available
and their possible consequences. PERT (Program Evaluation and Review
Technique) was designed in the late 1950s to help coordinate the US Polaris
Weapon System program that involved more than 3,000 separate
contractors. CPM (Critical Path Method) was devised by US Dupont to
manage a large industrial project also in the 1950s. Both models are similar
although CPM is simpler than PERT. Essentially, CPM allocates a critical path
of activities to where decision making is sequenced to ensure problems are
resolved.
• Decisions are made in a logical sequence that link ultimately to provide
key points of reference, and even time frames to accomplish activities.
PERT also weights optimistic, probable and pessimistic scenarios along
the path. Because of its use of probabilities, PERT is used in problem
solving where there is little precedence for a solution strategy. CPM is
used where there is considerable past experience with similar problems
and so the solution is one of strategic planning rather than exploration.
• Both PERT and CPM are management tools and therefore are only as
good as the managers who implement them and the people who make
input. PERT and CPM are expensive to implement and so various
qualitative adaptations have been made. Software packages for project
management are available of both PERT and CPM and the computer
application of qualitative approaches to problem solving offers
managers a strategic approach to problem solving. The sections on
PERT and CPM should be reviewed with reference to the use of these
tools to measure risk when decisions are made in an environment of
uncertainty.
 Critical Path Analysis
• Critical Path Analysis (CPA) or Critical Path Method (CPM) is part
of a planning system called Network Analysis.
• CPA uses the arrow diagram in which:
• A circle represents an event (or phase)
• The arrow points to the next event (or phase)

1 2
•  
• Figure1 3 The simplest critical path analysis
2 4 5
3

• Figure 4 Four activities linking five events in a critical path analysis

• Suppose we wanted to devise a Critical Path Analysis for planting a tree in
our garden. First, we estimate the duration of each sub-activity or task:
• TASK DURATION
• 1 - 2 Dig a hole 20 minutes
2 - 3 Position the tree 1 minute
3 - 4 Fill in hole 5 minutes
• There are four critical points from start to finish and a total of 26 minutes
duration. This can be represented as follows:
1 2 3 4
• 0 20 21 26

• Dig hole position tree fill in hole

• Figure 5 Critical path analysis activity network

• Not all projects accomplish their phases sequentially. Some project
phases are accomplished simultaneously thereby establishing a network.
 5
2
2 3
4
0 3 5
1 9
1 6
0 5 5 6 9
1 2
4 5
5 7
Figure 6 Simple network critical path analysis
The Network critical path Analysis represents a slightly more
complex project. Note that the network is more than a simple
straight line sequence. Here, there are two paths that lead
from the start to the finish. In fact, there is even a third path
represented by the dotted line and called a "dummy" activity
4 to 3. Here, the start of activity 3 to 6 is dependent not only
on completion of activity 2 to 3, but it must also await
completion of activity 1 to 4. This means activity 3 to 6
cannot start until events 3 and 4 has both been achieved
• Now look at the numbers above the stages and along the arrows. Activity 1 to 2 takes 1
week. Activity 2 to 3 takes 2 weeks. 1 week plus 2 weeks = 3 week but note point 3
allows for 5 weeks! This is because activity 1 to 4 takes five weeks and so as we cannot
proceed past 3 until 4 is completed, we can allow five weeks for 1 to 3 even though it
only requires 3 weeks. This gives us 2 extra weeks up our sleeve during which time staff
can be allocated to another task (possibly on another project). In fact, we can afford to
delay activities by some weeks here because we have allowed time for other phases to
catch up. This allows us a whole range of options. For example:
• Duration of Activity 5 to 6 = 2 weeks
• Earliest possible start = beginning of week 6
• Earliest possible finish (6+2) = end of week 8
• Latest permissible finish = end of week 9
• Total float (free time) = 1 week on activity 5 to 6.
• "Float" or "slack" = the amount of leeway available for starting and finishing an activity.
• When the float = 0 (no leeway allowed between earliest and latest time) = the critical
path.
•
Too much slack time effectively means the project is progressing (in terms of cost and
time) but no useful activity is performed to progress project completion. (Schonberger
1994:483)
 PERT
• Program Evaluation and Review Technique (PERT) is another way of assessing project time. It is
very similar to CPA and with the computerisation of project planning techniques PERT and CPA are
often used as interchangeable terms.
• PERT uses the arrow diagram but differs when it estimates the duration of activities.
• PERT requires three estimates for every activity:
• t (o) = The most optimistic duration
• t (m) = The most likely duration
• t (p) = The most pessimistic duration
• A formula is then used to calculate the expected time or t (e):
• t (o) + 4t (m) + t(p)
• t (e) = _________________ 6
• Note that this is really an averaging exercise with a weighting of four times being given to the most
likely duration. When there are more than fifty separate activities or tasks to the project, a
computer is required to calculate and even update these time estimates.
• Some theorists reckon that this PERT formula is too optimistic and prefer a different weighting:
• t (o) + 3t (m) + 2t(p)
• t (e) = _________________ 6
• In this formula, the pessimistic duration is doubled and the most likely duration reduced to three
before the averaging occurs.
• Approaches to this form of quantitative or risk analysis has been profoundly advanced with the use
of technology. For instance predictive systems, parallel thinking and artificial intelligence systems
are being used to speed up and deal with information programmed against multiple variables.
 Group quantitative approaches
• The basis for quantitative approaches to decision making is the
desire to harness the creative power of groups and use a variety of
techniques to:
• Generate broad parameters to the problems
• Quickly collect a quantity of ideas on the issue
• Collectively assess the alternatives; and
• Agree on an strategy to create a solution.
• There are numerous quantitative approaches.
• Imagineering requires participants to list ideal outcomes of the
problem, list actual or current outcomes, note the differences and
then rank these differences. An option based setting of priorities
then follows so that the group gradually moves the current
problem to the ideal outcome thereby generating a solution.
• The Delphi Technique works from a group basis whose
members never meet face to face. First, the problem is
identified and members are asked to identify potential solutions
via questionnaire. The results of the questionnaire are collated
centrally and a copy sent to each member. After reviewing the
collated results of the questionnaire, members are asked again
by a second questionnaire for their solutions and invariably the
results of the first questionnaire trigger new solutions and
change priorities. The procedure is then repeated as often as
necessary until consensus is reached. The Delphi Technique is
time consuming and does not always generate creative options.
Rather, the approach relies on quantitative analysis of the
problem.
• Brainstorming and the Nominal Group Technique are the two
most commonly used quantitative approaches to problem
solving. These are described in detail later in the second session.
 A qualitative approach
• The Plan, Do, Check, Act quality decision making model
• W. Edwards Deming is regarded as the father of quality management. Although
he worked on statistical control methodologies in the US prior to and during
World War II, his theories were applied and developed while part of an
industry aid contingency sent to Japan in the 1950s. The Japanese adopted
Deming's methodologies to their considerable economic advantage and the
Deming Award is Japan 's most prestigious business award. Quality
improvement does not stop once the improvement is made. When one
impediment is removed, the improvement process begins again and the
process to produce the watch is re-examined until another reduction factor is
found. Therefore decision making to resolve real or anticipated problems in an
ongoing cycle.
• If the manager is to continuously improve the processes to deliver good and
services at a required standard to the customer, it follows that the manager
but continuously be seeking new ways to jig the process. This means the
manager is a problem seeker. Acknowledging its origins as the Shewhart Cycle,
a major contribution of Deming to management has been the P-D-C-A
qualitative decision-making cycle.
• The Deming Cycle is commonly referred to as the P-D-C-A cycle. It epitomizes quality management thinking
about problem solving.
• PLAN
• Beginning with the Planning Phase, management is required to develop a measurable process to provide the
problem solution. Planning , then, is the most significant phase because if the plan is not delineated properly,
the ability to check the outcomes will be diminished and therefore the manager may never know whether
the plan in fact works. Mangers today spend a large percentage of their time attending planning meetings
trying to plot a process to overcome the identified problem. The aim of the plan is to implement what is
needed to eradicate the problem. Sometimes multiple problems exist and so a Pareto Analysis is undertaken
to priorities the most pressing problems. Pareto Analysis is explained in the Measuring quality topic.
• DO
• Doing is undertaken on a small-scale experimental basis. This involves exploring the problems and trying to
identify possible causes. Possible causes then need to be investigated to determine which ones are actually
causing the problem.
• CHECK
• Having identified possible causes to the problem, it is essential to validate that the eradication of these
causes will solve the problem. In other words, valid measures must exist in the checking phase and not just
"gut-feel" solutions.
• ACT
• If the check reveals the problem remains, abandon your ideas and begin a new plan. If the check reveals the
problem is solved, then implement the solution on a wide scale throughout the organisation. If a new
procedure is adopted in consequence, standardise it to make it part of the culture.
• The Deming Cycle is commonly referred to as the P-D-C-A cycle. It epitomises quality management thinking
and decision making for continuous improvement. When the P-D-C-A Cycle is completed, the manager begins
again in a never ending cycle of continuous improvement. In this sense, the manager is a problem-seeker
looking for new ways to achieve the quality outcomes as well as a decision maker or facilitator, planning and
measuring solutions to overcome the impediments to process outcomes.
 MOTIVATION
• The term motivation has been derived form the word motive.
motive is anything that initiates or sustains activity.
• It is an inner state that energizes, activates pr moves and that
directs or channels behavior towards goals.
• Motivation is the process of steering a person’s inner drives
and actions towards certain goals and committing his energies
to achieve these goals
• Motivation may be define as the work a manager performs in
order to induce subordinates act in the desired manner by
satisfying their needs and desires. Thus motivation is
concerned with how behavior gets started, is energized
sustained and directed
 Characteristics
• Motivation is personal and internal feeling
• Motivation is a continuous process.
• Motivation is complex
• Motivation is system oriented.
• Motivation can be either positive or negative.
• Motivation create goal directed behavior
• Motivation is different from job satisfaction.
TECHNIQUES TO INCREASE MOTIVATION
• Every management tries to select certain
motivational techniques which can be employed
for improving performance of its employees.
The techniques may be suitably employed in
one concern, others may be useful in another
concern and so on. Motivational techniques may
be classified into two categories i.e., financial
and non-financial. Both the categories of
motivators are discussed as under.
• Financial motivators may be in the form of more wages and salaries,
bonuses, profit-sharing, leave with pay, medical reimbursements, company
paid insurance or any of the other things that may be given to employees
for performance. The economists and most managers consider money and
financial incentives as important motivators. Behavioural scientists, on the
other hand, tend to place them low. Neither view is probably right.
• Money is the most important to people' who are young and are raising
their families then to those who have aligned at a stage when money
needs are less. Money needs go on' changing from time to time. He may
like to have a comfortable house later on. For some persons money
remains to be a motivator and for others it may never be. According to
Gellerman money is actually used to retain people in the organisation and
not primarily to motivate them. To attract good persons an organisation
will have to offer better wages. Generally, persons engaged in some type of
work are offered equal wages. It is seen as a practice that persons on
comparable levels get the same or usually the same compensation. Under
such circumstances money tends to be dulled as a motivator. Besides all
this money can motivate people if their wages are related to their
performance.
 Non financial Motivators
• These motivators are in the nature of better status, recognition, participation,
• job security etc. Some of these motivators are discussed here:
• 1. Recognition: - Every person wants his work to be recognised by his superiors.
• When he knows that his performance is known to his boss then he will try to improve it more
and more. The recognition may be in the form of a word of praise. a pat on the back, a word
of praise, a latter of appreciation, entry in annual confidential report etc. There may also be
awards, certificates plaque etc. The recognition may be for better output, saving the time,
improving quality of products, suggestions for better ways of doing things etc.
• These types of recognitions will act as motivator. If the performance of persons is not
recognised and everybody treated on the same footing then good persons will not like to put
their best efforts.
• 2. Participation:- Participation has been considered a good technique for
• motivation. It implies physical and mental involvement of people in decision- making process.
It satisfies ego and self-esteem of persons. They feel important when asked to made
suggestions in their field of activity. There is no doubt that most of the people know the
problems they will face and their possible solutions. Participation results in motivation and
knowledge valuable for the enterprise success. Participation gives a sense of affiliation and
accomplishment. It certainly acts as motivator.
• Participation should not mean that managers should abdicate their positions. They should
encourage subordinates to participate in matters where they can help. Managers should
listen various view-points and then take decisions themselves.
• Participation should not mean that managers should abdicate their positions.
They should encourage subordinates to participate in matters where they can
help. Managers should listen various view-points and then take decisions
themselves.
• 4. Competition:- In some organisations competition is used as a motivator.
• Various persons are given certain objectives and everybody tries to achieve
them head of others. There may be praises, appreciation letters, and financial
incentives to those who reach the goals first. The competitions encourage
persons to improve their performance.
• 5. Job Enrichment:- Job enrichment has been recognized as an important
• motivator by various researches. The job is made more important and
challenging for the workers, may be given wide latitude in deciding about their
work methods. The employees will also perform the management functions of
planning and control so far as the work is concerned. According to Heryberg,
job enrichment would provide an opportunity for the employees psychological
growth. The employee is given the dealings and quality standards he must
meet. Within a framework he is given a free-hand to decide and perform the
work. It brings more job satisfaction and high morale. So it is a recognised
device of motivation.
•
 Another motivation technique =
Carrot and stick
• A well known motivational concept is the “Carrot and Stick” approach. This
analogy is about using rewards and penalties in order to obtain desired results. It
refers to the old story that in order to get a donkey to move forward and pull the
cart you would dangle a carrot in front of him or hit him with a stick from behind.
The result is the same; the horse moves forward.
• So the stick represents fear, which can be a good motivator when used sparingly
at the right time. It may produce immediate results that derive from prompt
compliance. It is only useful in the short term though, as over time increasing
levels of punishment would be necessary to obtain the same results and this can
backfire in the form of mutiny and sabotage.
• The carrot is then an incentive, which can work very well as long as the individual
finds the incentive appealing. In this case, the donkey would have to like carrots,
be hungry and/or have a manageable and movable load in order for the carrot to
work. This is very important as the incentive must be perceived to be attractive
enough.