Presented By MONARK BAG Lecturer Indian Institute of Information Technology, Allahabad

22 July 2010

Indian Institute of Information Technology, Allahabad

Basis of difference

Administration It is concerned about the determination of objectives and major policies of an organization. It is a determinative function. It takes major decisions of an enterprise as a whole. It is a top-level activity.

Management It puts into action the policies and plans laid down by the administration. It is an executive function. It takes decisions within the framework set by the administration. It is a middle level activity.

Nature of work

Type of function Scope Level of authority

Nature of status

It is a group of managerial personnel who It consists of owners who invest capital in and use their specialized knowledge to fulfill the receive profits from an enterprise. objectives of an enterprise. It is popular with government, military, educational, and religious organizations. Its decisions are influenced by public opinion, government policies, social, and religious factors. Planning and organizing functions are involved in it. It needs administrative rather than technical abilities.

Nature of usage

It is used in business enterprises.

Decision making

Its decisions are influenced by the values, opinions, and beliefs of the managers. Motivating and controlling functions are involved in it. It requires technical activities. 2

Main functions Abilities 22 July 2010

Indian Institute of Information Technology, Allahabad

The willingness to exert high levels of effort to reach organizational goals, conditioned by the efforts ability to satisfy some individual need
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Intrinsic vs. Extrinsic Rewards

Extrinsic = Outside

Recognition Promotions

Intrinsic = Inside

Praise

Feeling of Job Well Done Pride

Salary Increase
Status

Gifts

Sense of Achievement

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Indian Institute of Information Technology, Allahabad

Credit/Debit Card Use Time Off Job Individual Travel Merchandise Awards Gift Certificates Cash Awards 0% 10% 20% 30% 40% 50% 60% 70%

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Unsatisfied Need

Tension Drives
Search Behavior Satisfied Need Reduction of Tension
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Maslows Hierarchy of Needs

5 needs motivate until substantially satisfied

McGregors Theory X and Theory Y Herzbergs MotivationHygiene Theory

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Self
Actualization

Esteem

Social

Safety

Physiological

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Douglas McGregor (1906-1964)

Articulated basic principles of human relations theory The Human Side of Enterprise (1960, 1985) To understand human behavior, one must discover the theoretical assumptions upon which behavior is based Especially interested in the behavior of managers toward workers Every managerial act rests on assumptions, generalizations, and hypotheses--that is to say, on theory . . . Theory and practice are inseparable. Two Objectives: Predict and control behavior Tap Unrealized potential
Theory X - Classical Theory Theory Y - Human Relations Theory FOCUS: Managers assumptions about HUMAN NATURE

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Theory X
Avoid Work Must be Controlled Avoid Responsibility

Theory Y
Work is Natural SelfDirection Seek Responsibility Good Decisions Widely Dispersed
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Seek Security
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Indian Institute of Information Technology, Allahabad

Douglas McGregor Theory X & Y

1906-1964
Theory X Assumptions

Dislike work will avoid it Theory Y Assumptions Must be coerced, controlled, Do not dislike work directed, or threatened with Self direction and self punishment control Prefer direction, avoid Seek responsibility responsibility, little Imagination, creativity ambition, want security widely distributed Intellectual potential only partially utilized

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Few companies today still use Theory X Many are trying Theory Y techniques

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Ouchis Theory Z
1. 2. 3. 4. 5. 6. 7. Long-Term Employment Collective Decision-making Individual Responsibility Slow Evaluation/ Promotion Implicit Informal Control with Explicit, Formalized Control Specialized Career Path Holistic Concern for Employees

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Theory Z Manager: A manager who believes that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.

Combination of Theory Y and Japanese management techniques Emphasizes mutual commitment between the organization and the employee Theory developed by William Ouchi

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Traditional View
Satisfaction Dissatisfaction

Herzbergs View
Motivators
Satisfaction No Satisfaction

Hygiene Factors No Dissatisfaction

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Dissatisfaction
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Achievement Recognition Work Itself Responsibility Advancement Growth

Supervision Company Policy Supervisor Relations Working Conditions Salary Peers Personal Life Subordinate Relations Status Security
Extremely Dissatisfied
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Extremely Satisfied
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Neutral

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McClelland - 3 needs Theory Adams - Equity Theory Vroom - Expectancy Theory

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Need for Achievement (nAch)

Drive to excel, strive to succeed Want personal responsibility, feedback and an intermediate amount of risk
Desire to be influential Best managers Desire to be liked and accepted
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Need for Power (nPow)

Need for Affiliation (nAff)

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McClelland - 3 needs Theory Adams - Equity Theory Vroom - Expectancy Theory

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People compare their job inputsoutputs ratio with relevant others Adjust work motivation according to results

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PERCEIVED RATIO COMPARISON*

EMPLOYEES ASSESSMENT

Outcomes A Inputs A

< = >

Outcomes B Inputs B

Inequity (under-rewarded)

Outcomes A
Inputs A Outcomes A Inputs A

Outcomes B
Inputs B Outcomes B Inputs B Equity

Inequity (over-rewarded)

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You

Comparison

You

Comparison

2 2

<

4 2

2 1

4 2

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Equity Theory
Inputs Outcomes

Referents

Perceived Inequities May Lead To:

Distort Change Change New Others Indian Institute of Information Technology,Referent Allahabad Self Quit

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McClelland - 3 needs Theory Adams - Equity Theory Vroom - Expectancy Theory

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Individuals tend to act in certain ways based on the expectation that the act will be followed by a given outcome and the attractiveness of the outcome. Focus is on the linkages:

Effort and Performance Performance and Rewards Attractiveness (Rewards and Individual Goals)

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Individual Effort A Individual Performance B Organizational Rewards A B C

= Effort-performance

linkage = Performance-reward linkage = Attractiveness

C Individual Goals

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