MCO 101 MANAGEMENT

Unit 8B: Motivation, Leadership, Groups and Teams

Managing Expectations
LEARNING OUTCOMES: At the end of the course, students will be able to: Explain fundamental concepts and principles of management including the basic roles, skills, and functions of management Discuss the knowledgeable of historical development, theoretical aspects and practice application of managerial process Examine the environment, technology, human resources, and organisations in order to achieve high performance Discuss the ethical dilemmas faced by managers and the social responsibilities of businesses.

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Managing Expectations
SUBJECTS DISCUSSED: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Management, Managers and evolution of Management theory Personality traits and diversity Organisation, Globalisation and the resulting environments Decision-making and Planning Structure and Strategy Executing and Controlling Human Resources Management as a function Motivation, Leadership, Groups and Teams Communication, conflicts and politics Operations Management. Entrepreneurship. Innovation

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Managing Expectations
TOPIC DETAILS: After going through UNIT 8B, you should be able to: 1. 2. 3. explain the basics of motivation. use equity theory to explain how employees perceptions of fairness affect motivation. use expectancy theory to describe how workers expectations about rewards, effort, and the link between rewards and performance influence motivation. explain how reinforcement theory works and how it can be used to motivate. describe the components of goal-setting theory and how managers can use them to motivate workers. discuss how the entire motivation model can be used to motivate workers.
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4. 5. 6.

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Basics of Motivation

Effort and Performance Extrinsic and Intrinsic Rewards

Need Satisfaction

Motivating People

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Effort and Performance

Effort Initiation Direction Persistence Performance
Job Performance = Motivation x Ability x Situational Constraints

Job performance: how well someone performs the job Motivation: effort put forth on the job Ability: capability to do the job Situational Constraints: external factors affecting performance

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Need Satisfaction
Needs: physical or psychological requirements, must be met to ensure survival and well being. Unmet needs motivate people Three approaches: (1) Maslows Hierarchy of Needs (2) Alderfers ERG Theory (3) McClellands Learned Needs Theory

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Needs Classification
Maslows Hierarchy HigherOrder Needs LowerOrder Needs Self-Actualization Esteem Belongingness Safety Physiological Existence Alderfers ERG Growth Relatedness McClellands Learned Needs Power Achievement Affiliation

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Extrinsic and Intrinsic Rewards

Extrinsic Rewards tangible and visible to others given contingent on performance Intrinsic Rewards natural rewards associated with performing the task for its own sake Good benefits Health insurance Job security Vacation time Interesting work Learning new skills Independent work situations

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Extrinsic and Intrinsic Rewards

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Motivating with the Basics

Effort and Performance Extrinsic and Intrinsic Rewards

Need Satisfaction

Ask people what their needs are

Motivating People

Satisfy lower-order needs first Expect peoples needs to change Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards

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How Perceptions and Expectations Affect Motivation

Equity Theory Components of Equity Theory Reaction to Perceived Inequity Motivating People Using Equity Theory
INEQUITY: When a persons O/I ratio differs from their referents O/I ratio Underreward referents O/I ratio is greater than yours experience anger or frustration Overreward referents O/I ratio is less than yours experience guilt
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COMPONENTS Inputs: employee contributions to the organization Outcomes: rewards employees receive from the organization Referents: comparison others Outcome/input (O/I) ratio

Outcomesself Inputsself
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Outcomesreferent Inputsreferent
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How People React to Perceived Inequity

Motivating with Equity Theory Look for and correct major inequities Reduce employees inputs Make sure decisionmaking processes are fair distributive justice procedural justice

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Expectancy Theory
Components of Expectancy Theory Motivating with Expectancy Theory

Valence Expectancy Instrumentality

Systematically gather information to find out what employees want from their jobs Clearly link rewards to individual performance Empower employees to make decisions which enhance expectancy perceptions
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MCO 101 Issue date: 15 June 2008

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Expectancy Theory

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Reinforcement Theory
Components of Reinforcement Theory
Reinforcement Theory A theory that states that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently.
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Schedules for Delivering Reinforcement

Continuous Schedule A schedule that requires a consequence to be administered following every instance of a behavior.
Fix ed consequences follow behavior after a fixed time has elapsed Variable Consequences follow behavior after different times that vary around an average time Consequences follow a different number of behaviors that vary around an average number

Motivating with Reinforcement Theory

Motivating Reinforcement Theory Identify, measure, analyze, intervene, and evaluate. Dont reinforce the wrong behavior. Correctly administer punishment at the appropriate time. Choose the simplest and most effective schedule of reinforcement.
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I nterval (Time)

R atio (Behavior)

Consequences follow a specific number of behaviors

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Reinforcement Theory
Schedule Intermittent

Fix ed consequences follow behavior after a fixed time has elapsed

Variable Consequences follow behavior after different times that vary around an average time Consequences follow a different number of behaviors that vary around an average number

I nterval (Time)

R atio (Behavior)

Consequences follow a specific number of behaviors

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Goal-Setting Theory
Goal-Setting Theory relates to the basic model: desire to meet a goal prompts effort.

THE THEORY Goal Specificity: the clarity of goals Goal Difficulty: how challenging goals are Goal Acceptance: how well goals are agreed to or understood Performance Feedback: information on goal progress

MOTIVATING Assign specific, challenging goals Make sure workers truly accept organizational goals Provide frequent, specific performance-related feedback

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Goal-Setting Theory

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Motivating with the Integrated Model

Motivating with the Basics

Motivating with Expectancy Theory

Motivating with Equity Theory

Motivating with Goal-Setting Theory

Motivating with Reinforcement Theory

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Motivating with the Integrated Model

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