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MGMT301-Exam3(Brower): Book

Material
Leadership
I. As a process: the use of non-coercive influence to shape the group's or
organization's goals, motivate behavior toward the achievement of those goals,
and help define group or organizational culture
II. As a property: the set of characteristics attributed to individuals who are
perceived to be leaders

Leaders
People who can influence the behaviors of other without having to rely on force;
those accepted by others as leaders

Management vs. Leadership


-Management and leadership are related, but distinct, constructs
-Managers and leaders differ in how they:
I. Create an agenda
II. Develop a rationale for achieving the agenda
III. Execute plans
IV. types of outcomes they achieve

Creating an agenda (Management):


Planning and Budgeting:
-Establishing detailed steps and timetables for achieving needed results
-Allocating the resources necessary to make those needed results happen

Creating an agenda (Leadership):


Establishing Direction:
-Developing a vision of the future (often distant future), and strategies for
producing the changes needed to achieve that vision

Develop a Human Network for Achieving the Agenda (Management):


Organizing and Staffing:
-Establishing some structure for accomplishing plan requirements
-Staffing that structure w/ individuals
-Delegating responsibility and authority for carrying out the plan
-Providing policies and procedures to help guide people
-Creating methods or systems to monitor implementation

Develop a Human Network for Achieving the Agenda (Leadership):


Aligning People:
-Communicating the direction by words and deeds to everyone whose
cooperation may be needed to influence the creation of teams and coalitions that
understand the visions and strategies and accept their validity

Executing Plans (Management):


Controlling and Problem Solving:
-Monitoring results vs. Planning in some detail
-Identifying deviations
-Then planning and organizing to solve these problems

Executing Plans (Leadership):


Motivating and Inspiring:
-Energizing people to overcome major political, bureaucratic, and resource
barriers by satisfying very basic, but not often unfulfilled, human needs

Outcomes (Management):
-Produces a degree of predictability and order
-Has the potential to produce consistently major results expected by various
stakeholders
Ex. Customers- always being on time
Ex. Stockholders- being on budget

Outcomes (Leadership):
-Produces change (often to a dramatic degree)
-Has the potential to produce extremely useful change
Ex. New products that customers want
Ex. New approaches to labor relations that help make a firm more competitive

Power
The ability to affect the behavior of others

(5)Types of Power
1. Legitimate
2. Reward
3. Coercive
4. Referent
5. Expect Power

Legitimate power
-Power granted through the organizational hierarchy
-The power defined by the organization to be accorded to people occupying
particular positions
-Authority
Ex. A subordinate who refuses to do a task, assigned by a manager, can be
reprimanded or even fired
[Relatively concrete and grounded in objective facets of organizational life]

Reward Power
The power to give or withhold rewards, such as salary increases, bonuses,
promotions, praise, recognition, and interesting job assignments
-In general, the greater the number of rewards the manager controls and the
more important the rewards are to subordinates, the greater is the manager's
reward power
-If the subordinate also wants and appreciate the manager's informal rewards
(praise, gratitude, and recognitions), then the manager is also exercising

leadership
[Relatively concrete and grounded in objective facets of organizational life]

Coercive Power
The power to force compliance by means of psychological, emotional, or physical
threat
-In most organizations today, coercion is limited to: verbal reprimands, written
reprimands, disciplinary layoffs, fines, demotion, and termination
-The more a manager uses coercive power, the less likely he is to provoke
resentment and hostility and the less likely he is to be seen as a leader
[Relatively concrete and grounded in objective facets of organizational life]

Referent Power
The personal power that accrues to someone based on identification, imitation,
loyalty, or charisma (an intangible attribute of the leader that inspires loyalty and
enthusiasm)
-Thus a manager might have referent power, but it is more likely to be associated
w/ leadership

Expert Power
The personal power that accrues to someone based on the information or
expertise that they possess
-Derived from information and expertise
-The more important the information and the fever people who have access to it,
the greater is the degree of expert power possessed by any one individual
-In general, people who are both leaders and mangers tend to have a lot of
expert power

(7)Methods for Using Power


I. Legitimate Request
II. Instrumental Compliance
III. Coercion
IV. Rational Persuasion

V. Personal identification
VI. Inspirational Appeal
VII. Information distortion

Legitimate Request
-Based on legitimate power
-Most day-to-day interactions between manager and subordinate are of this type
Ex. The manager requests that the subordinate comply because the subordinate
recognizes that the organization has given the manager the right to make the
request

Instrumental Compliance
-Based on the reinforcement theory of motivation
-In this form of exchange, a subordinate complies to get the reward the manager
controls
Ex. Suppose that a manager asks a subordinate to do something outside the
range of the subordinate's normal duties (working extra hours on the weekend,
terminating a relationship with a long-standing buyer, or delivering bad news).
The subordinate complies and, as a direct results, reaps praise and a bonus from
the manager. The next time the subordinate is asked to perform a similar activity,
that subordinate will recognize that compliance will be instrumental in his or her
getting more rewards
-Hence the basis of instrumental compliance is clarifying important performancereward contingencies

Coercion
A manager is using coercion when she suggests or implies that the subordinate
will be punished, fired, or reprimanded if he does not do something

Rational Persuasion
Occurs when the manager can convince the subordinate that compliance is in the
subordinate's best interests

Ex. A manager might argue that the subordinate should accept a transfer
because it would be good for the subordinate's career

Personal Identification
A manager who recognizes that she has referent power over a subordinate can
shape the behavior of that subordinate by engaging in desired behaviors: The
manager consciously becomes a model for the subordinate and exploits personal
identification

Inspirational Appeal
Sometimes a manager can induce a subordinate to do something consistent with
a set of higher ideals or values through inspirational appeal
Ex. A plea for loyalty represents an inspirational appeal
-Referent power plays a role in determining the extent to which an inspirational
appeal is successful because its effectiveness depends at least in part on the
persuasive abilities of the leader

Information distortion
-Dubious method of using power
-The manager withholds or distorts information to influence subordinate's
behavior
Ex. If a manger has agreed to allow everyone to participate in choosing a new
group member but subsequently finds one individual whom she really prefers,
she might withhold some of the credentials of other qualified applicants so that
the desired member is selected
-This use of power is dangerous
-May be unethical, and if subordinates find out the manager has deliberately
mislead them, they will lose their confidence and trust in that manager's
leadership

Michigan Studies
Researchers at the University of Michigan, led by Renis Likert, began studying
leadership in the late 1940s. Based on extensive interview w/ both leaders

(managers) and followers (subordinates), this research identified two basic forms
of leader behavior:
1. Job centered [System 1/Rigid/Bureaucratic]
2. Employee Centered [System 4/Organic/Flexible]
-Presumed to be at the ends of a single continuum
-When Likert advocates moving organizations from System 1 to System 4, he is
also advocating a transition from job-centered to employee-centered leader
behavior

Job-Centered Leader Behavior


The behavior of leaders who pay close attention to the job and work procedures
involved with that job
-Consistent w/ the System 1 design
-Rigid and Bureaucratic

Employee-Centered Leader Behavior


The behavior of leaders who develop cohesive work groups and ensure
employee satisfaction
-Primary concern is the welfare of subordinates
-Tends to be more effective
-Consistent w/ System 4 design
-Organic and Flexible

Ohio State Studies


Extensive questionnaire surveys conducted also suggested that there are two
basic leader behaviors or styles:
1. Initiating-Structure Behavior
2. Consideration Behavior

Initiating-Structure Behavior
The behavior of leaders who define the leader-subordinate role so that everyone
knows what is expected, establish formal lines of communication, and determine
how tasks will be performed

-Major difference btw Mich. and Ohio is that the Ohio State researchers did not
interpret leader behavior as being one-dimensional; each behavior was assumed
to be independent of the other
-A leader could exhibit varying levels of initiating structure and at the same time
varying levels of consideration

Consideration Behavior
The behavior of leaders who show concern for subordinates and attempt to
establish a warm, friendly, and supportive climate

Managerial Grid ("Leadership Grid") [ADD PHOTO]


Provides a means for evaluating leadership styles and then training managers to
move toward an ideal style of behavior
-Horizontal Axis: Concern for Production
-Vertical Axis: Concern for People
-5 Extremes:
(1,1): Impoverished Management (exhibits minimal concern for both production
and people)
(9,1): Authority-Compliance (highly concerned about production but exhibits little
concern for people)
(1,9): Country Club Management (little concern about production, High concern
for people)
(55): Middle-of-the-road Management (maintains adequate concern for both
people and production
(9,9): Team Management (exhibits maximum concern for both people and
production)
-The Leadership Grid is a method of evaluating leadership styles
-Overall objective of an organization using the Grid is to train its managers using
organization development techniques so that they are simultaneously more
concerned fro both people and production (9,9 style on the Grid)

Concern for Production

The part of the Managerial Grid that deals with job and task aspects of leader
behavior

Concern for People


The part of the Managerial Grid that deals with the human aspects of leader
behavior

(1,1) Impoverished Management


Exertion of minimum effort to get required work done is appropriate to sustain
organization membership

(9,1) Authority-Compliance Management


Efficiency in operations results from arranging conditions of work in such a way
that human elements interfere to a minimum degree

(1,9) Country Club Management


Thoughtful attention to the needs of the people for satisfying relationships leads
to a comfortable, friendly organization atmosphere and work tempo

(5,5) Middle of the Road Management


Adequate organization performance is possible through balancing the necessity
to get work out while maintaining morale of people at a satisfactory level

(9,9) Team Management


Work accomplishment is from committed people; interdependence through a
"common stake" in organization purpose leads to relationships of trust and
respect
-Ideal style of managerial behavior

Situational Approaches to Leadership


Situational models assume that appropriate leader behavior varies from one
situation to another

-Goal: to identify key situational factors and to specify how they interact to
determine appropriate leader behavior

Tannenbaum and Schmidt's Leadership Continuum


A 1958 study of the decision-making process by Robert Tannebaum and Warren
H. Schmidt that proposed a continuum of leadership behavior
-The Tannenbaum and Schmidt leadership continuum was an important
precursor to modern situational approaches to leadership
-The continuum identifies seven levels of leadership, which range between the
extremes of boss-centered (like job-centered) and subordinate-centered
leadership (like employee-centered)
-Identified several intermediate behaviors that a manager might consider:
[Use of Authority by Manager <---> Area of Freedom for Subordinates]
-Manager makes decision and announces it
-Manager "sells" decision
-Manager presents ideas and invites questions
-Manager presents tentative decision subject to change
-Manager presents problem, gets suggestions, makes decision
-Manager defines limits, asks group to make decision
-Manager permits subordinates to function within limits defined by superior

Tannenbaum and Schmidt's Leadership Continuum (Continued) [ADD PHOTO]


This continuum of behavior moves from one extreme (having the manager make
the decision alone), to the other extreme (having the employees make the
decision with minimal guidance
-Each point on the continuum is influenced by 3 characteristics:
1. Managerial Characteristics
2. Subordinate Characteristics
3. Situational Characteristics

Managerial Characteristics
I. Manager's value system
II. Confidence in subordinates

III. Personal inclinations


IV. Feelings of security

Subordinate Characteristics
I. Need for independence
II. Readiness to assume responsibility
III. Tolerance for ambiguity
IV. Interest in the problem
V. Understanding of goals, knowledge, experience, and expectations

Situational Characteristics
I. Type of organization
II. Group effectiveness
III. The problem itself
IV. Time pressures

(4) Important Situational Theories


1. LPC Theory
2. Path-Goal Theory
3. Vroom's Decision Tree Approach
4. Leader-Member Exchange Approach

LPC Theory ("Least-Preferred Coworker")


A theory of leadership that suggests that the appropriate style of leadership
varies with situational favorableness
-Fred Fiedler began w/ a combined trait and behavioral approach, and identified
two styles of leadership:
1. Task Oriented (analogous to job-centered and initiating-structure behavior)
2. Relationship Oriented (similar to employee-centered and consideration
behavior)
-Argued the style of behavior is a reflection of the leader's personality and that
most personalities fall into one of his two categories (task oriented or relationship
oriented by nature)

-Measures leadership style by means of a controversial questionnaire called the


least-preferred Coworker (LPC) measure

Least-Preferred Coworker (LPC) Measure


The measuring scale that asks leaders to describe the person with whom he or
she is able to work least with -the LPC-by filling in a set of 16 scales anchored at
each end by a positive or negative adjective
-Positive Qualities (High Numbers): helpful, relaxed, and interesting
-Negative Qualities (Low Point Values): frustrating, tense, and boring
-High Total Score - Relationship oriented
-Low Total Score - Task oriented

Favorableness of the Situation (LPC Theory) [ADD PHOTO]


-Key situational factor is the favorableness of the situation from the leader's point
of view
-This factor is determined by:
a. Leader-member relations
b. Task Structure
c. Position Power

Leader-Member relations
Refer to the nature of the relationship between the leader and the work group
Ex.) If the leader and the group have a high degree of mutual trust, respect, and
confidence, and if they like one another, relations are assumed to be good

Task Structure
Degree to which the group's task is well defined
-Task is structured when:
a. Routine
b. Easily understood
c. Unambiguous
d. When the group has standard procedures and precedents to rely on
-Task is unstructured when (Exact opposite)

Ex.) IF the task is unstructured, the group will not know what to do, and the
leader will have to play a major role in guiding and directing its activities
IF the task is structured, the leader will not have to get so involved and can
devote time to non-supervisory activities

Position Power
The power vested in the leader's position
-Strong position power is when the leader has the power to assign work and to
reward and punish employees
-Weak position power is when the leader must get job assignments approved by
someone else and does not administer rewards and punishment (more difficult to
accomplish goals)
-NOT as important as task structure and leader-member relations

Favorableness and Leader Style


-Fiedler and associates conducted numerous studies linking the favorableness of
various situations to leader style and the effectiveness of the group
-Fiedler's LPC theory of leadership suggests that appropriate leader behavior
varies as a function of the favorableness of the situation.
-Favorableness, in turn, is defined by task structure, leader-member relations,
and the leader's position power
-According to LPC theory, the most and least favorable situations call for taskoriented leadership, whereas moderately favorable situations suggest the need
for relationship-oriented leadership

Flexibility of Leader Style


For any given individual, leader style is essentially fixed and cannot be changed;
leaders cannot change thier behavior to fit a particular situation because it is
linked to their particular personality traits
-When a leader's style and the situation do not match, Fiedler argued that the
situation should be changed to fit the leader's style
-According to Fiedler, the leader can make the elements of the situation more

congruent by structuring the task (by developing guidelines and procedures) and
increasing power (by requesting additional authority or by other means)

Path-Goal Theory
A theory of leadership suggesting that the primary functions of a leader are to
make valued or desired rewards available in the workplace and to clarify for the
subordinates the kinds of behavior that will lead to those rewards (leader should
clarify the paths to goal attainment)
-Martin Evans and Robert House
-Direct extension of the expectancy theory of motivation [Recall that the primary
components of expectancy theory include the likelihood of attaining various
outcomes and the value associated with those outcomes]
-The most fully developed version of path-goal theory identifies four kinds of
leader behavior
1. Directive Leader Behavior
2. Supportive Leader Behavior
3. Participative Leader Behavior
4. Achievement-oriented Leader Behavior
-In contrast to LPC, path-goal theory assumes that leaders can change their style
or behavior to meet the demands of a particular situation
-Path-goal theory focuses on the situation factors of:
a. Personal Characteristics of Subordinates
b. Environmental Characteristics of the Workplace

Directive Leader Behavior


Lets subordinates know what is expected of them, gives guidance and direction,
and schedules work

Supportive Leader Behavior


Is being friendly and approachable, showing concern for subordinate welfare, and
treating members as equals

Participative Leader Behavior

Includes consulting with subordinates, soliciting suggestions, and allowing


participation in decision making

Achievement-Oriented Leader Behavior


Means setting challenging goals, expecting subordinates to perform at high
levels, encouraging subordinates, and showing confidence in subordinates'
abilities

Personal Characteristics of Subordinates


I. Subordinates perception of their own abilities
-If people perceive that they are lacking in abilities, they may prefer directive
leadership to help them understand path-goal relationships better
-If they perceive themselves to have a lot of abilities, however, employees may
resent directive leadership
II. Locus of Control- a personality trait
- Internal Locus of Control: People who believe that what happens to them is a
function of their own efforts and behavior (may prefer participative leadership)
- External Locus of Control: People who assume that fate, luck, or "the system"
determines what happens to them (may prefer directive leadership)

Environmental Characteristics
I. Factors outside the Subordinates' Control
-Task structure is one such factor. When structure is high, directive leadership is
less effective than when structure is low (Subordinates do not usually need their
boss to continually tell them how to do an extremely routine job
II. Formal Authority System
-The higher the degree of formality, the less directive is the leader behavior that
will be accepted by subordinates
III. Nature of the Group Work
-When the work group provides the employee w/ social support and satisfaction,
supportive leader behavior is less critical
-When social support and satisfaction cannot be derived from the group, the
worker may look to the leader for this support

The Path-Goal Framework [ADD PHOTO]


The path-goal theory of leadership suggests that managers can use four types of
leader behavior to clarify subordinates' paths to goal attainment
-Personal characteristics of the subordinate and environmental characteristics
within the organization both must be taken into account when determining which
style of leadership will work best for a particular situation

Vroom's Decision Tree Approach


Predicts what kinds of situations call for different degrees of group participation
-Victor Vroom and Philip Yetton
-Assumes that the same leader may display different leadership styles
-Concerns itself with only a single aspect of leader behavior: Subordinate
Participation in Decision Making

Vroom's Decision Tree Approach: Basic Premise


-Assumes that the degree to which subordinates should be encouraged to
participate in decision making depends on the characteristics of the situation
-In other words, no one decision-making process is best fro all situations
-After evaluating a variety of problem attributes (characteristics of the problem or
decision) the leader determines an appropriate decision style that specifies the
amount of subordinate participation
-Vroom's current formulation suggests that managers use on of two different
decision trees:
I. Time-Driven
II. Development-Driven
-Steps to deciding which:
1. The manager first assesses the situation in terms of several factors (this
assessment involves determining whether the given factor is high or low for the
decision that is to be made)
Ex.) the first factor is decision significance (if the decision is extremely important
and may have a major impact on the organization, such as choosing a location
for a new plant, its significance is high)

-This assessment guides the manager through the paths of the decision tree to a
recommended course of action
-The problem attributes (situational factors) are arranged along the top of the
decision tree
-To use the model, the decision maker STARTS at the left side of the diagram and
assesses the first problem attribute DECISION SIGNIFICANCE. The answer
determines the path to the second node on the decision tree, where the next
attribute (IMPORTANCE OF COMMITMENT) is assessed. This process
continues until a terminal node is reached

Vroom's Time-Driven Decision Tree [ADD PHOTO]


This matrix is recommended for situations where time is of the highest
importance in making a decision. The matrix operates like a funnel. You start at
the left with a specific decision problem in mind. The column headings denote
situational factors that may or may not be present in that problem. You progress
by selecting high or low (H or L) for each relevant situational factor. Proceed
down the funnel, judging only those situational factors for which a judgement is
called, until you reach the recommended process

Vroom's Development-Driven Decision Tree


This matrix is to be used when the leader is more interested in developing
employees than in making the decision as quickly as possible. Just as with the
time-driven tree, the leader assesses up to seven situational factors:
1. Decision Significance
2. IMportance of Commitment
3. Leader Expertise
4. Likelihood of Commitment
5. Group Support
6. Group Expertise
7. Team Competence
-These factors, in turn, funnel the leader to a recommended process for making
the decision

(5)Decision-Making Styles
The various decision styles (reflected at the ends of the tree branches) represent
different levels of subordinate participation that the manager should attempt to
adopt in a given situation
I. Decide - the manager makes the decision alone and then announces or "sells"
it to the group
II. Consult (individually) - the manager presents the program to group members
individually, obtains their suggestions, and then makes the decision
III. Consult (group) - the manager presents the problem to group members at a
meeting, gets their suggestions, and then makes the decision
IV. Facilitate - the manager presents the problem to the group at a meeting,
defines the problem and its boundaries, and then facilitates group member
discussion as they make the decision
V. Delegate - the manager allows the group to define for itself the exact nature
and parameters of the problem and then to develop a solution

Leader-Member Exchange (LMX) Model [ADD PHOTO]


Stresses that leaders have different kinds of relationships with different
subordinates
-George Graen and Fred Dansereau
-Each superior-subordinate pair is referred to as a "Vertical Dyad"
-The model differs from earlier approaches in that it focuses on the differential
relationship leaders often establish with different subordinates
- - The LMC model suggests that leaders form unique independent relationships
with each of their subordinates. As illustrated here, a key factor in the nature of
this relationship is whether the individual subordinate is in the leader's out-group
or in-group
-The In-Group:
a. A small number of trusted subordinates that supervisors establish a special
relationship with
b. Usually receives special duties requiring responsibility and autonomy; they
may also receive special privileges
-The Out-Group:

a. Subordinates who are not a part of the in-group


b. Receive less of the supervisor's time and attention
-NOTE: in the figure that the leader has a dyadic, or one-to-one, relationship with
each of the five subordinates
-Early in his or her interaction with a given subordinate, the supervisor initiates
either an in-group or an out-group relationship
-The decision may be based on personal compatibility and subordinates'
competence
-Studies generally have found that in-group members have a higher level of
performance and satisfaction than do out-group members

Substitutes for Leadership Concept


A concept that identifies situations in which leader behaviors are neutralized or
replaced by characteristics of subordinates, the task, and the organization
-Was developed because existing leadership models and theories do not account
for situations in which leadership is not needed
Ex.) When a patient is delivered to a hospital emergency room, the professionals
on duty do not wait to be told what to do by a leader
-Characteristics of the subordinate that may serve to neutralize leader behavior
include:
a. ability
b. experience
c. need for independence
d. professional orientation
e. indifference toward organizational rewards
-Task characteristics that may substitute for leadership include:
a. routineness
b. availability of feedback
c. intrinsic satisfaction
-Organizational characteristics that may substitute for leadership include:
a. formalization
b. group cohesion

c. inflexibility
d. rigid reward structure

Charismatic Leadership Concept


Assumes that charisma is an individual characteristic of the leader (like the trait
theories)
-All else being equal, then, someone with charisma is more likely to be able to
influence others than is someone w/out charisma
-Influence is again a fundamental element of this perspective
-Robert House
-His theory suggests that charismatic leaders are likely to have a lot of selfconfidence, a firm conviction in their beliefs and ideals, and a strong need to
influence people. They also tend to communicate high expectations about
follower performance and express confidence in followers
-There are three elements of charismatic leadership in organizations that most
experts acknowledge today:
1. First, the leader needs to be able to envision the future, set high expectations,
and model behaviors consistent w/ meeting those expectations
2. Next, the charismatic leader must be able to energize others through a
demonstration of personal excitement, personal confidence, and patterns of
success
3. And, finally, the charismatic leader enables others by supporting them,
empathizing with them , and expressing confidence in them

Transformational Leadership
Leadership that goes beyond ordinary expectations by transmitting a sense of
mission, stimulating learning experiences, and inspiring new ways of thinking
-Another new perspective on leadership that has been called by a number of
labels: charismatic leadership, inspirational leadership, symbolic leadership, and
transformational leadership
-Because of rapid change and turbulent environments, transformational leaders
are increasingly being seen as vital to the success of business
-A recent article in the popular press identified seven keys to successful

leadership:
1. Trusting one's subordinates
2. Developing a vision
3. Keeping cool
4. Encouraging risk
5. Being an expert
6. Inviting dissent
7. Simplifying things
(Although this list was the result of a simplistic survey of the leadership literature,
it is nevertheless consistent with the premises underlying transformational
leadership)

(3)Approaches to Leadership
1. Strategic Leadership
2. Cross-Cultural Leadership
3. Ethical Leadership

Strategic Leadership
The capability to understand the complexities of both the organization and its
environment and to lead change in the organization in order to achieve and
maintain a superior alignment between the organization and its environment
-ONe key element of effective strategic leadership is the board of directors
-To be effective in this role:
1. A manager needs to have a thorough and complete understanding of the
organization (its history, its culture, its strengths, and its weaknesses)
2. The leader needs a firm grasp of the organization's environment (current
conditions and circumstances as well as significant trends and issues on the
horizon)
3. The leader also needs to recognize how the firm is currently aligned with its
environment (where it relates effectively and where it relates less effectively with
that environment)
4. Finally the strategic leader works to improve both the current alignment and the
future alignment (looking at environmental trends and issues)

Cross-Cultural Leadership
-Another new approach to leadership which is based on cross-cultural issues
-In this context, culture is used as a broad concept to encompass both
international differences and diversity-based differences within one culture
-Cross-cultural factors play a growing role in organizations as their workforces
become more and more diverse

Ethical Leadership
Most people have long assumed that top managers are ethical people. But in the
wake of recent corporate scandals, faith in top managers has been shaken
-Perhaps now more than ever, high standards of ethical conduct are being help
up as a prerequisite for effective leadership
-More specifically, top managers are being called on to:
a. maintain high ethical standards for their own conduct
b. exhibit ethical behavior unfailingly
c. hold others in their organization to the same standards

Political Behavior
The activities carried out for the specific purpose of acquiring, developing, and
using power and other resources to obtain one's preferred outcomes
-Political behavior may be undertaken by:
a. managers dealing with their subordinates
b. subordinates dealing with their managers
c. managers and subordinates dealing with others at the same level
-In other words, it may be directed upward, downward, or laterally
Ex.) Decisions ranging from where to locate a manufacturing plant to where to
put the company coffee maker are subject to political action
-In any situation, individuals may engage in political behavior to:
a. further their own ends
b. to protect themselves from others
c. to further goals they sincerely believe to be in the organization's best interest
d. or simply to acquire and exercise power

(And power may be sought by individuals, by groups of individuals, or by groups


of groups
-Although political behavior is difficult to study because of its sensitive nature,
one early survey found that many managers believed that politics influenced
salary and hiring decisions in their firm
-Many also believed that the incidence of political behavior was greater at the
upper levels of their organization and lesser at the lower levels

(4)Common Political Behaviors


Research has identified four basic forms of political behavior widely practiced in
organizations:
1. Inducement
2. Persuasion
3. Creation of an Obligation
4. Coercion

Inducement
Occurs when a manger offers to give something to someone else in return for
that individual's support
Ex.) A product manager might suggest to another product manager that she will
put in a good word with his boss if he supports a new marketing plan that she has
developed

Persuasion
Relies on both emotion and logic
Ex.) An operations manager wanting to construct a new plant on a certain site
might persuade others to support his goal on grounds that are objective and
logical (is less expensive; taxes are lower) as well as subjective and personal

Creation of an Obligation
One manager might support a recommendation made by another manager for a
new advertising campaign. Although he might really have no opinion on the new
campaign, he might think that by going along, he is incurring a debt from the

other manager and will be able to "call in" that debt when he wants to get
something done and needs additional support

Coercion
Is the use of force to get one's way
Ex.) A manager may threaten to withhold support, rewards, or other resources as
a way to influence someone else

Impression Management
A direct and intentional effort by someone to enhance his or her image in the
eyes of others
-A subtle form of political behavior that deserves special mention
-People engage in impression management for a variety of reasons:
1. They may do so to further their own careers (by making themselves look good,
they think they are more likely to receive rewards, to be given attractive job
assignments, and to receive promotions
2. They may also do so to boost their self-esteem (when people have a solid
image in an organization, others make them aware of it through compliments,
respect, and so forth
3. Still another reason people use impression management is in an effort to
acquire more power and hence more control
-People attempt to manage how others perceive them through a variety of
mechanisms:
1. Appearance is one of the first things people think of
Ex.) A person motivated by impression management will pay close attention to
choice of attire, selection of language, and use of manners and body posture
2. People interested in impression management are also likely to jockey for
association only w/ successful projects
Ex.) By being assigned to high-profile projects led by highly successful
managers, a person can begin to link his or her own name with such projects in
the minds of others

3. Sometimes people too strongly motivated by impression management become


obsessed with it and may resort to dishonest or unethical means
Ex.) Some people have been known to take credit for others' work in an effort to
make themselves look better
Ex.) People have also been known to exaggerate or even falsify their personal
accomplishments in an effort to build an enhanced image

Managing Political Behavior


By its very nature, political behavior is tricky to approach in a rational and
systematic way.
-But managers can handle political behavior so that it does not do excessive
damage:
1. First, managers should be aware that, even if their actions are not politically
motivated, others may assume that they are
2. Second, by providing subordinates with autonomy, responsibility, challenge,
and feedback, managers reduce the likelihood of political behavior by
subordinates
3. Third, managers should avoid using power if they want to avoid charges of
political motivation
4. Fourth, managers should get disagreements out in the open so that
subordinates will have less opportunity for political behavior through using conflict
for their own purposes
5. Finally, managers should avoid covert activities (behind-the-scenes activities
give the impression of political intent, even if none really exists)
-Other guidelines include;
a. clearly communicating the bases and processes for performance evaluation
b. tying rewards directly to performance
c. minimizing competition among managers for resources
-The well-informed manager should not assume that political behavior does not
exist or, worse yet, attempt to eliminate it by issuing orders or commands
-Instead, the manager must recognize that political behavior exists in virtually all
organizations and that it cannot be ignored or stamped out. It can, however, be
managed in such a way that it will seldom inflict serious damage. It may even

play a useful role in some situations (a manager may be able to use his or her
political influence to stimulate a greater sense of social responsibility or to
heighten awareness of the ethical implications of a decision)
-Recommendations from effective leaders:
1. Develop a routine that keeps personal energy levels high to help cope with
very long hours
2. Low need for sleep and dedication to regular exercise are plusses
3. Be a sponge for information, using many sources and technologies for
communications, but don't neglect face-to-face conversations
4. Carve out time for quiet reflection and concentration
5. And focus on inspiring and satisfying your organization's most important
stakeholders

Morale
The attitude or feelings workers have about the organization and their total work
life

Quality of Work Life (QWL)


Factors in the work environment contributing positively or negatively to workers'
physical and emotional well-being and job satisfaction
-Factors that enhance the quality of work life: employee commitment, absence of
apathy, development and utilization of employees, employee involvement and
influence, advancement based on merit, career goal progress, good relations
with supervisor, positive work-group relations, respect for individuals, confidence
in management, pleasant physical working environment, economic well-being,
positive state of mind, absence of undue job stress, positive impact on personal
life, smooth union-management relations

Motivation
The result of the interaction of a person's internal needs and external influences-involving perceptions of equity, expectancy, previous conditioning, and goal
setting--which determine how a person will behave
-The study of motivation is concerned w/ what prompts people to act, what

influences their choice of action, and why they persist in acting in a certain way.
The starting point is to look at a person's needs by using a motivation model

Needs
Physiological or psychological conditions in humans that act as stimuli for
behavior
-Provides basis for a motivation model
I. Physiological needs: relate to the body and include requirements for air, water,
and food
II. Psychological needs: include the need for affiliation and self-esteem
-Needs create a tension (stimulus) that results in wants. The person then
develops a behavior or set of behaviors to satisfy his or her wants. The behavior
results in action toward goal achievement
Ex.) A person feels hunger (a need). Recognition of the need triggers a want
(food). The person chooses to cook a hamburger (behavior) and then eats it
(takes action to achieve the goal). Satisfied, he feels no hunger (feedback)

Integrated Motivation Model


Unsatisfied needs stimulate wants and behaviors. In choosing a behavior to
satisfy a need, a person must evaluate three factors:
1. Past experiences - All the person's past experiences with the situation at hand
enter into the motivation model (these include the satisfaction derived from acting
in a certain way, any frustration felt, the amount of effort required, and the
relationship of performance to rewards)
2. Environmental Influences - The choices of behaviors are affected by the
environment, which in a business setting make up the organization's values as
well as the expectations and actions of management
3. Perceptions - The individual is influences by perceptions of the expected effort
required to achieve performance and by the value of the reward both absolutely
and in relation to what peers have received for the same effort
-In addition to thse three variables, two other factors are at work:
1. Skills - a person's performance capabilities that result from training

2. Incentives - factors created by managers to encourage workers to perform a


task

(4)Content Theories
A group of motivation theories emphasizing the needs that motivate people
I. Maslow's Hierarchy of Needs
II. Herzberg's Two-Factor Theory
III. McClelland and the Need for Achievement
IV. Alderfer's ERG Theory

Maslow's Hierarchy of Needs


-Based on four premises:
I. Only an unsatisfied need can influence behavior; a satisfied need is not a
motivator
II. A person's needs are arranged in a priority order of importance
III. A person will at least minimally satisfy each level of need before feeling the
need at the next level
IV. If need satisfaction is not maintained at any level, the unsatisfied need will
become a priority once again
-Five Level of Needs
1. Physical (physiological) - primary/basic-level needs: water, air, food, shelter,
comfort
Ex.) Manager provides salaries/wages that allow employees to buy the basic
necessities
2. Safety: security for self and possessions, avoidance of risks/harm/pain
Ex.) Behaviors that reflect safety needs include: joining unions, seeking jobs with
tenure, and choosing jobs on the basis of health insurance and retirement
Ex.) Managers attempt to satisfy safety needs by providing salaries, benefits,
safe work conditions, and job security
3. Social - companionship, acceptance, love and affection, group membership
Ex.) At work employees meet social needs by: interacting frequently with fellow
workers and through acceptance of others, water cooler gathering, groups at

lunchtime
Ex.) Managers can meet these needs by supporting employee get-togethers,
birthday parties, lunches, and sports teams
4. Esteem - responsibility, self-respect, recognition, sense of accomplishment
Ex.) Satisfaction of these needs gives one pride, self-confidence, and genuine
sense of importance (lack of satisfaction of these needs can result in feelings of
inferiority, weakness, and helplessness
Ex.) Work-related activities and outcomes that help meet individual esteem needs
include: successfully completing projects, being recognized by peers and
superiors as someone who makes valuable contributions, and acquiring
organizational titles
5. Self-Realization ("self-actualization") - reaching your potential, independence,
creativity, self-expression (desires for fulfillment, represents the need to maximize
the use of one's skills, abilities, and potential)

Five Common Worker Needs and Appropriate Managerial Responses

Hertzberg's Two-Factor Theory


-Frederick Herzberg developed a needs theory called the two-factor, or "hygienemotivator", theory
-Defines two sets of factors
1. Hygiene Factors (lead to job dissatisfaction)
2. Motivation Factors (produce job satisfaction/motivation)
-Once top management has provided satisfactory hygiene factors, it can focus on
motivation factors

Hygiene Factors ("Maintenance Factors")


Maintenance factors (such as salary, status, working conditions) that do not
relate directly to a person's actual work activity, but when of low quality are the
cause of unhappiness on the job
-A manager's poor handling of hygiene factors is the primary cause of
unhappiness on the job
-Extrinsic to the job (do not relate directly to a person's actual work activity

-High quality hygiene factors are not necessarily stimuli for grown or greater
effort. They seek only to prevent employee's job dissatisfaction
(salary, job security, status, working conditions, company policies, quality of
technical supervision, quality of interpersonal relations among peers,
supervisors, and subordinates)

Motivation Factors
The conditions, intrinsic to the job, that can lead to an individual's job satisfaction
(motivation factors relate to job content)
-Act as stimuli for psychological and personal growth
-These factors are as follows:
a. Achievement
b. Recognition
c. Responsibility
d. Advancement
e. The work itself
f. Possibility of growth
-All supervisors have the power to increase motivation in the workplaces they
manage by: granting more responsibility to employees, praising their
accomplishments, and making them feel that they are succeeding
-Motivated employees believe they have control over their jobs and can make a
contribution
-This belief provides the basis for team management, empowerment, and
intrapreneurship

*McClelland and the Need for Achievement


-In David McClelland's need theory, certain types of needs are learned during a
lifetime of interactions with the environment. He described three needs:
1. Achievement, or the desire to excel or achieve in relation to a set of standards
2. Power, or the desire to control others or have influence over them
3. Affiliation, or the desire for friendship, cooperation, and close interpersonal
relationships
-Achievement relates to individual performance

-Power and affiliation, by contrast, involve interpersonal relationships


-Studies of achievement motivation have produced two important ideas:
1. a strong achievement needs relates to how well individuals are motivated to
perform their work
2. The achievement need can be strengthened by training
-McClelland's needs theory recognizes that people may have different mixtures or
combinations of needs; an individual could be described as a:
I. High Achiever
II. Power-Motivated Person
III. Affiliator

High Achiever
-Mclelland and associate David Burnham defined the characteristics of the high
achiever:
a. Performs a task because of a compelling need for personal achievement, not
necessarily for the rewards associated with accomplishing the task
b. Prefers to take personal responsibility for solving problems rather than leaving
the outcome to others
c. Prefers to set moderate goals that, with stretching, are achievable. For the
achiever, easy goals with a high probability of success provide no challenge and
thus no satisfaction
d. Prefers immediate and concrete feedback about performance, which assists in
measuring progress toward the goal
-Managers should work to identify and encourage the development of high
achievers. Mangers should capitalize on the high achievers' goal-setting ability
and on their desire for responsibility
Ex.) This can be accomplished by providing them with opportunities for
participation, by delegating authority to them, and by using management by
objectives
-To work effectively with high achievers, managers should provide immediate,
concrete feedback

Power-Motivated Person

The person with a strong desire for power needs to acquire, exercise, and
maintain influence over others
-Such persons compete with others if success will allow them to be dominant
-Does not avoid confrontations
- -When dealing with the power-motivated person, managers should recognize
that the use of power is a necessary part of corporate life and that those who are
motivated by power can serve as necessary and useful members of the
organization
- -Managers should be aware of the negative aspect of power as a motivator
- -Many individuals seek power solely for personal benefit. The power-motivated
person may not, therefore, have the organization's best interests at heart

Affiliator
The person with a high need for affiliation wants to be liked by other people,
attempts to establish friendships, and seeks to avoid conflict
-Prefers conciliation
-In working with employees whom McClelland labeled affiliators, managers must
be aware that these employees desire to avoid conflict, which may prevent them
from handling organizational conflict effectively

Comparison of the theories of Maslow, Herzberg and MCClelland

Alderfer's ERG Theory


Psychologist Clayton Alderfer proposed a needs theory that compressed
Maslow's five levels of needs into three:
1. Existence Needs
2. Relatedness Needs
3. Growth Needs
-Maslow and Alderfer agreed that an unsatisfied need is a [motivator], and that as
lower-level needs are satisfied they become less important
-However, he believed that higher-lever needs become more important as they
are satisfied
-Managers should realize that a person may willingly slip down the needs

hierarchy if attempts to achieve needs are frustrated


- To maintain high levels of performance, managers should provide opportunities
for employees to capitalize on higher-order needs
Ex.) Managers can do this by: recognizing employees and encouraging
participation in decision making

Existence Needs
Existence needs relate to a person's physical well-being (In Maslow's model,
existence needs include physiological and safety needs)

Relatedness Needs
This level includes needs for satisfactory relationships with others (relatedness
needs correspond, in Maslow's model, to social needs)

Growth Needs
Growth needs call for the realization of potential and the achievement of
competence (In Maslow's model, growth needs become esteem and selfrealization needs)

Comparison of the theories of Maslow and Alderfer

(4)Process Theories: Motivation Theories Focusing on Behaviors


1. Expectancy Theory
2. Reinforcement Theory
3. Equity Theory
4. Goal-setting Theory
-Each derives from past experiences, environmental influences, and perceptions
(See Integrated Motivation Model Figure 12.3)

Expectancy Theory
A motivation theory stating that three factors influence behavior:
I. The value of rewards
II. The relationship of rewards to the necessary performance

III. The effort required for performance


-Developed by Victor Vroom, expectancy theory states that before choosing a
behavior, an individual will evaluate various possibilities on the basis of
anticipated work and reward
-[Motivation] - the spur to act - is a function of how badly we want something and
how likely we think we are to get it. Its intensity functions in direct proportion to
perceived or expected rewards
Expectancy theory includes three variables:
1. Effort-Performance Link (will the effort achieve performance?/How much effort
will performance require? How probable is success?)
2. Performance-Reward Link (what is the possibility that a certain performance
will produce the desired reward or outcome?)
3. Attractiveness (How attractive is the reward?/This factor relates to the strength
or importance of the reward to the individual and deals with his or her unsatisfied
needs
-Behavior is heavily influenced by perceptions of the outcomes of behavior
-The key factor for successful programs is the effort-performance link
-Incentive pay works when workers feel they can meet targets
-Workers can help attain the goal by increasing their skill levels

Reinforcement Theory
A motivation theory that states a supervisor's reactions and past rewards and
penalties affect employee's behavior
-B. F. Skinner (operant conditioning)
-Much of motivated behavior is learned behavior
Ex.) The employee learns over time what type of performance is acceptable and
what is unacceptable. This learning influences future behavior
-Reinforcement is affected by time... The closer the reinforcement is to the
behavior, the greater the impact it will have on future behavior
-Reinforcement theory has several implications for managers:
1. Managers should bear in mind that motivated behavior is influenced by the
employee's learning what is acceptable and unacceptable to the organization

2. In addition, in working with employees to develop motivated behavior,


managers should to the following:
a. tell individuals what they can do to get positive reinforcement
b. tell individuals what they are doing wrong
c. base rewards on performance
d. administer the reinforcement as close in time to the related behavior as
possible
e. recognize that failure to reward can also modify behavior
-By applying these guidelines, managers can, as they help employees focus on
organizational objectives, modify employee behavior at the same time

(4)Types of Reinforcement
-Managers can choose from four main types of reinforcement:
1. Positive reinforcement
2. Avoidance
3. Extinction
4. Punishment
-Positive reinforcement most often leads to long-range growth in individuals by
producing lasting and positive behavioral changes

Positive Reinforcement
To increase the probability that an individual will repeat a desired behavior, a
manager provides positive reinforcement as soon as possible after the desired
behavior occurs
-Positive reinforcers can be: praise, pay, or promotions (elements normally
regarded as favorable by employees)

Avoidance
This method of reinforcement attempts to increase the probability that a positive
behavior will be repeated by showing the consequences of behavior the manager
does not desire
-The employee avoids those consequences by displaying a desired behavior
Ex.) a manager has a policy of penalizing all employees who do not turn in

reports on time. As long as the threat of punishment is there, employees will be


motivated to meet the required deadline

Extinction
Managers are using extinction when they choose to ignore the behavior of
subordinates in order to weaken the behavior
-This approach is most effective when behavior is temporary, atypical, and not
serious in its negative consequences

Punishment
Managers might attempt to decrease the recurrence of a behavior by applying
negative consequences, or punishment
-Loss of privileges, docked pay, and suspension are forms of punishment
-The trouble with punishment as a response to behavior is that the person will
learn what not to do but will not necessarily learn the desired behavior

Equity Theory
A motivation theory in which comparisons of relative input-outcome ratios
influence behavior choices
-People determine equity by calculating a simple ratio: the effort they are
expected to invest on the job (their input) in relation to what they expect to receive
after investing that effort (the outcome or reward)
-Equity exists when the ratios are equivalent
-[inequity]: exists when , in the employee's mind, inputs exceed the relative or
perceived values
-Two points about equity theory:
1. When an individual perceives himself or herself as the victim of inequity, one of
three responses occurs: the person can decide to escape the situation ("i quit"),
put the input-outcome ration in balance ("I'll do less" or "i want a raise"), or
attempt to change perceptions ("It's actually fair because...")
2. The second point about equity theory concerns the referent the person selects
for comparison. There are two categories: other and system
Ex.) OTher includes those persons in the same job, same team, or same league,

or those with similar backgrounds or in the same circle of friends


Ex.) The system is the referent when the individual recognizes the presence of
organization-wide policies and procedures ("If those people are allowed overtime,
I should have overtime when I need it to complete my work")
-Equity theory emphasizes that employees are motivated by both the absolute
and relative rewards available in the system.
-More important, employees make conscious comparisons of equity, and these
comparisons have the potential to influence employee motivation levels
(managers need to recognize that perceptions of equity are constantly in flux)

Goal-Setting Theory
A motivation theory stating that behavior is influenced by goals, which tell
employees what they need to do and how much effort they need to expend
-Similar to the concepts associated with expectancy theory in that it focuses on
the conscious choices a person makes
-According to the theory, there are two approached to goal setting:
1. Managers may set goals for the employees
2. Employees and managers develop employee goals together
-According to goal-setting theory, managers should:
a. work with employees in setting goals
b. make goals specific rather than general
c. Provide feedback on performance

Philosophy of Management
A manager's attitude about work and the people who perform it, which influences
the motivation approaches he or she selects
-The theories of Maslow, Herzberg, McClelland, and Alderfer offer valuable
insight into the needs that drive motivation. The theories of expectancy,
reinforcement, and goal setting reveal the WHY of management - why employees
display different types of motivated behavior
-A manager's philosophy of management incorporates and reflects: personal
beliefs about human nature in the work-setting about worker attitudes and
characteristics, employee maturity, and the influence of management

expectations on behavior
-To develop a philosophy of management, there are three concepts describing
human nature that should be incorporated:
I. Theory X and Theory Y
II. Argyris's Maturity Theory
III. Development of management expectations

Theory X
A philosophy of management with a negative perception of subordinates'
potential for and attitudes toward work
-Douglas McGregor
-It assumes that subordinates dislike work, are poorly motivated, and require
close supervision
Ex.) A manager with these beliefs tends to control the group, use negative
motivation, and refuse to delegate decision making

Theory Y
A philosophy of management with a positive perception of subordinates' potential
for and attitudes toward work
-It assumes, that subordinates can be self-directing, will seek responsibility, and
find work as natural or play or rest
Ex.) The outcome of this belief is a manger who encourages people to seek
responsibility, involves people in decision making, and works with people to
achieve their goals

Assumptions about workers according to Theory X and Theory Y


-The important point about Theory X and Theory Y is that a manager's
philosophy influences the kind of work climate he or she endeavors to create and,
ultimately, shapes how the manger treat people

Argyris's Maturity Theory


A manager's philosophy incorporates his or her attitude toward employee
maturity

-Chris Argyris (organizational learning)


-Related the development of individual maturity to the structure of organizations
-Argyris believed that people develop along a continuum from immaturity to
maturity. People who have reached maturity:
a. Tend to be active rather than passive
b. Are independent rather than dependent
c. Are self-aware rather than unaware
d. Are self-controlled rather than controlled by others
-Argyris's concern was that a mature personality conflicts with typical
organizations in fur ways:
1. The formal chain of command limits self-determination, making individuals
passive and manager dependent
2. The span of control decreases a person's self-determination
3. Unity of direction places objectives under control of one manager. It limits the
employee's ability to define objectives
4. Specialization of labor limits initiative and self-determination

Development of Expectations
IN developing a philosophy of management, a manager must consider the
importance of expectations
-John L. Single reports that
a. Subordinates do what they believe they are expected to do
b. Ineffective mangers fail to develop high expectations for performance
c. Mangers perceived as excellent create high performance expectations that
their employees can fulfill
-The last point, that employees fulfill their manager's expectations, if often
referred to as the [Self-fulfilling Prophecy]
-Incorporating expectations into management requires two phases:
1. The first consists of developing and communicating expectations of
performance, group citizenship, individual initiative, and job creativity
2. The second involves consistency
(The manager must be consistent in his or her expectations in communicating
them.

-Consistency will produce reinforcement and, in the end, promote stability and
reduce anxiety
-In order to foster communication and consistency, many companies use an
[intranet] - a Web site just fro employees. (information on the intranet provides
current company, industry, customer, and supplier information via automated
news feeds and knowledge management repositories

Managing for Motivation


With a well-rounded, people-centered philosophy in place, a manager is ready to
motivate by creating a positive, supportive work environment
-How to manage for motivation:
a. How to treat people as individuals
b. Offer support
c. Recognize and value diversity
d. Foster empowerment
e. Provide an effective reward system
f. Redesign jobs
g. Promote Intrapreneurship
h. Create flexibility in work

Treating People as Individuals


Successful managers recognize people as individuals and work with their
particular differences
-The successful manager knows that, because each of us in an individual, each
of us is motivated differently

Providing Support
To develop motivated employees, a manager must provide a climate in which
each employee's needs can be met
-A starting point is to facilitate attainment of the employee's goals
-The manager does this by: removing barriers, developing mutual goal-setting
opportunities, initiating training and education programs, encouraging risk taking,
and providing stability

-Two other actions can provide support and enhance the environment:
1. The first is the open appreciation of employee's contributions
2. The second action managers can take is to show sensitivity to employee'
needs for equity. Each employee must feel that he or she is receiving a fair
exchange for his or her input into the company and in comparison to other
employees

Recognizing and Valuing Diversity


The composition of the workforce is changing, and with it, workers' needs, goals,
and values. Mangers are no longer managing a homogenous workforce
-Managers need to respond to this diversity by understanding, appreciating, and
utilizing the differences
-As the diversity in the workforce continues to change, traditional programs for
training, monitoring, ad compensation may have to be modified
-The diversity brings contrasting viewpoints, experiences, and needs to the work
environment

Empowering Employees
Leaders empower employees by: sharing authority and information, providing
needed training, listening to employees, developing relationships based on
mutual trust and respect, and acting on employee recommendations
-Empowerment is designed to unshackle the worker and make the job-not just
part of the job- the worker's
-Employees, by being empowered, make decisions that formerly were made by
the manager
-Empowerment results in greater responsibility and innovation and a willingness
to take risks
-Ownership and trust, along with autonomy and authority, become a motivational
package

Providing an Effective Reward SyStem


To motivate behavior, an organization must provide an effective reward system
-Given the belief that all people are individuals with different needs, values,

expectations, and goals, the reward system must accommodate many variables
-According to David Van Fleet, an effective reward system has the following
characteristics:
1. Rewards must satisfy the basic needs of all employees (pay must be
adequate, benefits reasonable, and vacations and holidays appropriate)
2. Rewards must be comparable to those offered by competitive organizations in
the same area ( the pay offered for the same job should be equal to that offered
by a competitive company/ and benefits too)
3. Rewards must be equally available to people in the same positions and be
distributed fairly and equitably (people performing the same job need to have the
same options for reward and also be involved in the decisions governing which
rewards they receive)
4. The reward system must be multifaceted (because all people are different
managers must provide a range of rewards that focus on different aspects-pay,
time off, recognition, or promotions)
-The last point is worth noting. Many people are beginning to view traditional pay
systems as inadequate
(In a traditional system, workers are paid according to the positions they hold, not
the contributions they make)

Redesigning Jobs
Jobs are important motivational tools because what they contain may provide a
means to meet an employee's needs
-Managers need to know what elements of a job provide motivation and then
apply the concepts of job-redesign

Job Redesign
The application of motivational theories to the structure of work, to increase
output and satisfaction

Principles of Job Redesign


Jobs and organizations has been reexamined with the aim of providing greater
challenges and offering other psychological rewards at work

-Mangers have assigned less interesting repetitive tasks to robots and other kinds
of computer-assisted machines. Training and development programs have been
devised that enable people to preform more demanding tasks and jobs
-Job redesign requires a knowledge of and concern for the human qualities that
people bring with them to the organization-such things are their needs and
expectations ,perceptions and values, and levels of skill and abilities
-Job redesign also requires knowledge of the qualities of jobs- their physical and
mental demands and the environment in which they are performed
-The two approaches to job redesign relate to:
I. Job Scope
II. Job Depth

Job Scope
An element of job redesign that refers to the variety of tasks incorporated into a
job

Job Depth
An element of job redesign referring to the degree of discretion and employee
has to alter the job

Job Enlargement
Increasing the variety or the number of tasks in a job, not the quality or the
challenge of those tasks
-HORIZONTAL LOADING
-Job enlargement may attempt to demand more of the same from an employee or
add to other tasks containing an equal or lesser amount of meaning or challenge
Ex.) Underworked employees can benefit from job enlargement. Their sense of
competence improves as their volume of output does

Job Rotation
Temporarily assigning people to different jobs or tasks on a rotating basis
-The idea is to add variety and to emphasize the interdependence of a group of
jobs

Ex.) Managers involved in job rotation gain knowledge about the operations of
departments outside their own
-Job rotation can be used for cross training, or to facilitate permanent job
transfers or promotions
-Workers who can benefit from job rotation are those who are interested in or
ready for promotion and those who need variety

Job Enrichment
Designing a job to provide more responsibility, control, feedback, and authority for
decision making
-Herzberg
-VERTICAL JOB LOADING
-Job enrichment should include the following elements:
a. Variety of tasks
b. Task Importance
c. Task responsibility
d. Feedback
-Regardless of the approach selected, for job enrichment to be successful,
participation must be voluntary and management must be competent in its dayto-day operations as well as in its efforts at job enrichment
-Also, once introduced, changes do not yield improvements overnight; mistakes
can be made in the implementation of job enrichment programs and setbacks
can occur
-Companies that undertake job enrichment find higher morale and improved
productivity

Intrapreneurship
Entrepreneurship within an organization, allowing employees flexibility and
authority in pursuing and developing new ideas
-As an organization grows, it has a tendency to establish rules, policies, and
procedures-to become mechanistic in nature
-The formal control systems that become established with bureaucratic
procedures cause it to lose innovative energy

-Intrapreneurship in essence, a process whereby an pursues an idea and has the


authority to develop and promote it within the boundaries of the formal
organization
-These individuals become [intrapreneurs]- employees who think and act like
owners (they take responsibility for an idea or project and are empowered to
make it successful)
-A manager can foster intrapreneurship by following theses guidelines:
encourage action, use informal meetings whenever possible, tolerate failure, be
persistent, reward innovation, plan the physical layout to encourage informal
communication, reward and/or promote innovative personnel

Creating Flexibility
Another way managers can motivate workers is to provide them with flexibility in
work through:
I. Flextime
II. Compressed workweek
III. Job Sharing
-Flexibility in work is also facilitated through the use of e-mail communication

Flextime
An employment alternative allowing employees to decide, within a certain range,
when to begin and end each workday
-It thus allows them to take care of personal business before or after work and to
vary their daily schedules
-Companies that have adopted this approach have reported decreases in
absenteeism, lower turnover, less tardiness, and higher morale

Compressed Workweek
A schedule that allows employees to fulfill weekly time obligation in fewer days
than the traditional five-day workweek
-The approach (like flextime) provides more time for personal business and
recreation (employees who adopt it report improved job satisfaction

-Some managers think compressed workweeks make scheduling too


difficult/managers fear loss of control

Job Sharing ("Twinning")


A technique to provide flexibility by permitting two part-time workers to divide on
full-time job
-Such an occupational buddy system is ideal for parents who are raising schoolaged children or people who prefer part-time employment
-The benefit from an employer's standpoint is that creative input comes from two
sources, and the cost is only one salary and one set of benefits

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