ENGINEERING MANAGEMENT Notes.ppt
- 2. Plan of the Presentation - Definition of Engineer - Definition of Management - Managerial Skills - Managerial Roles - Functions of Managers - Definition of Engineering Management 2/137
- 3. What is an Engineer? - Ingenium (Latin), - Skillful, talent, natural capacity or clever invention, - Early applications of clever inventions based on military, - Builders of talent military machines. 3/137
- 4. What is an Engineer? The first issue (1866) of the English Journal Engineering; The art of directing the great sources of power in nature, for the use and convenience of man. Is it an art or profession? 4/137
- 5. Modern Definition of Engineering By ABET (Accrediting Board for Engineering and Technology); What is an Engineer? The profession in which a knowledge of the technical, mathematical and natural sciences gained by study, experience and practice is applied with judgement to develop ways economically in order to utilize the materials and forces of the nature for the benefit of mankind. 5/137
- 6. Engineer : A person applying his mathematical and science knowledge properly for mankind. It is a discipline not an art. What is an Engineer? 6/137
- 7. What is Management? • Directing the actions of a group to achieve a goal in most efficient manner • Getting things done through other people • Process of achieving organizational goals by working with and through people and organizational resources 7/137
- 8. What is Management? - Top-level management (president, executive vice president) - Middle-level management (chief engineer, division head etc.) - First-line management (foreman, supervisor, section chief) 8/137
- 9. First-line management: - Directly supervise non-managers. - Carry out the plans and objectives of higher management using the personnel & other resources assigned to them. - Short-range operating plans governing what will be done tomorrow or next week, assign tasks to their workers, supervise the work that is done and evaluate the performance of workers. What is Management? 9/137
- 10. Middle-level management: - Manage through other managers, - Make plans of intermediate range to achieve the long-range goals set by top management, - Establish departmental policies, evaluate the performance of subordi- nate work units & their managers, - Provide; Integrating and coordinating function, - Orchestrate the decisions & activities of first-line management. What is Management? 10/137
- 11. Top-level management: - Represent the the whole enterprise, - Responsible for defining the character, mission and objectives of the enterprise - Establish & review criterias for long-range plans. - Evaluate the performance of major departments. What is Management? 11/137
- 12. Managerial Skills Managers need three (3) types of skills: Technical: Specific subject related skills such as engineering, accounting, etc… Interpersonal: Skills related to dealing with others and leading, motivating or controlling them. Conceptual: Ability to realize the critical factors that will determine as organization’s success or failure. Ability to see the forest in spite of the trees. 12/137
- 13. First-line Middle Top Managerial Skills Managerial Level: % 45 % 45 % 15 % 40 % 15 % 40 13/137
- 14. (What Managers Do) • Interpersonal roles • Informational Roles • Decisional Roles Managerial Roles 14/137
- 15. Interpersonal roles: Figurehead role: Outward relationship Leader role: Downward relation Liaison role: Horizontal relation Outward Horizontal Downward Managerial Roles 15/137
- 16. Informational Roles: Monitor Role: Collects information about internal operations and external events. Disseminator Role: Transforms information internally to everybody in organization (like a telephone switchboard) Spokesman Role: Public relations Managerial Roles 16/137
- 17. Decisional Roles: Entrepreneurial Role: Initiates changes, assumes risks, transforms ideas into useful products. Disturbance Handler Role: Deals with unforeseen problems and crisis. Resource Allocator Role: Distributing resources. Negotiator Role: Bargains with suppliers, customers etc. in favor of enterprise. Managerial Roles 17/137
- 18. Planning: Selecting missions and objectives. Requires decision making. Organizing: Establishing the structure for the objective. Staffing: Keeping filled the organization structure Leading: Influencing people to achieve the objective Controlling: Measuring and correcting the activities Functions of Managers 18/137
- 19. Management can be classified into one of four categories: 1) An organizational or administrative process, 2) A science, discipline or art, 3) The group of people running an organization, 4) An occupational career. Functions of Managers 19/137
- 20. - Management has a body of specialized knowledge. - This knowledge need not to be obtained in formal disciplined programs. Management: Is it an art or science? Somewhere between art and science. Functions of Managers (Engineering + Management = Discipline+Art) Again somewhere between art and science. 20/137
- 21. Directing supervision of engineers and/or engineering functions. Definition of Engineering Manager: An engineer possessing both abilities to apply engineering principles and skills in organizing and directing people and projects. What is Engineering Management? 21/137
- 22. Why Engineering Managers? Competition is global and companies need these people to compete successfully. What is Engineering Management? The advantages of having an engineer as a manager; 1. Has the ability of thinking sistematically, 2. Has technical, mathematical & natural sciences talents, 3. Seizes the research & development as an oppurtinity, not a cost. 22/137
- 23. Advantages of Understanding Technology in Top Management • Understanding the business thoroughly, • Understanding technology driving the business today and technology that will change the business in future, • Treating Research and Development as an investment not an expense to be minimized, What is Engineering Management? 23/137
- 24. Advantages of Understanding Technology in Top Management • Spending more time on strategic thinking, • Dedicating a customer’s problem (true marketing via customer relations), • Place a premium on innovation. What is Engineering Management? 24/137
- 25. 25/137 Organizations • Organization – A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations—for-profit as well as not-for-profit organizations. – Where managers work (manage) • Common characteristics – Goals – Structure – People
- 26. 26/137 Common Characteristics of Organizations
- 27. 27/137 People Differences • Operatives – People who work directly on a job or task and have no responsibility for overseeing the work of others • Managers – Individuals in an organization who direct the activities of others
- 29. 29/137 Identifying Managers • First-line managers – Supervisors responsible for directing the day-to- day activities of operative employees • Middle managers – Individuals at levels of management between the first-line manager and top management • Top managers – Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members
- 31. 31/137 Management Process Activities Management process: planning, organizing, leading, and controlling
- 32. 32/137 Management Process • Planning – Includes defining goals, establishing strategy, and developing plans to coordinate activities • Organizing – Includes determining what tasks to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made
- 33. 33/137 Management Process • Leading – Includes motivating employees, directing the activities of others, selecting the most effective communication channel, and resolving conflicts • Controlling – The process of monitoring performance, comparing it with goals, and correcting any significant deviations
- 34. 34/137 Mintzberg’s Managerial Roles • Interpersonal – Figurehead – Leader – Liaison • Informational – Monitor – Disseminator – Spokesperson • Decisional – Entrepreneur – Disturbance hander – Resource allocator – Negotiator
- 35. 35/137 Is The Manager’s Job Universal? • Level in the organization – Do managers manage differently based on where they are in the organization? • Profit versus not-for-profit – Is managing in a commercial enterprise different than managing in a non-commercial organization? • Size of organization – Does the size of an organization affect how managers function in the organization? • Management concepts and national borders – Is management the same in all economic, cultural, social and political systems?
- 36. 36/137 Distribution of Time per Activity by Organizational Level
- 37. 37/137 Importance of Managerial Roles in Small and Large Businesses
- 38. 38/137 General Skills for Managers • Conceptual skills – A manager’s mental ability to coordinate all of the organization’s interests and activities • Interpersonal skills – A manager’s ability to work with, understand, mentor, and motivate others, both individually and in groups • Technical skills – A manager’s ability to use the tools, procedures, and techniques of a specialized field • Political skills – A manager’s ability to build a power base and establish the right connections
- 39. 39/137 Specific Skills for Managers • Behaviors related to a manager’s effectiveness: – Controlling the organization’s environment and its resources. – Organizing and coordinating. – Handling information. – Providing for growth and development. – Motivating employees and handling conflicts. – Strategic problem solving.
- 40. 40/137 Management Charter Initiative Competencies for Middle Managers 1. Initiate and implement change and improvement in services, products, and systems 2. Monitor maintain, and improve service and product delivery 3. Monitor and control the use of resources 4. Secure effective resource allocation for activities and projects 5. Recruit and select personnel 6. Develop teams, individuals, and self to enhance performance 7. Plan, allocate, and evaluate work carried out by teams, individuals and self 8. Create, maintain, and enhance effective working relationships 9. Seek, evaluate, and organize information for action 10.Exchange information to solve problems and make decisions
- 41. 41/137 How Much Importance Does The Marketplace Put On Managers? • Good (effective) managerial skills are a scarce commodity. – Managerial compensation packages are one measure of the value that organizations place on them. – Management compensation reflects the market forces of supply and demand. • Management superstars, like superstar athletes in professional sports, are wooed with signing bonuses, interest-free loans, performance incentive packages, and guaranteed contracts.
- 42. 42/137 Why Study Management? • We all have a vested interest in improving the way organizations are managed. – Better organizations are, in part, the result of good management. • You will eventually either manage or be managed – Gaining an understanding of the management process provides the foundation for developing management skills and insight into the behavior of individuals and the organizations.
- 43. 43/137 How Does Management Relate To Other Disciplines? Anthropology Economics Philosophy Political Science Psychology Sociology Management
- 44. 44/137 Taylor’s Four Principles of Management • Develop a science for each element of an individual’s work, which replaces the old rule-of-thumb method. • Scientifically select and then train, teach, and develop the worker. (Previously, workers chose their own work and trained themselves as best they could.) • Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. • Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the responsibility were thrown upon the workers).
- 45. 45/137 Scientific Management Contributors • Frank and Lillian Gilbreth – Bricklaying efficiency improvements – Time and motion studies (therbligs) • Henry Gantt – Incentive compensation systems – Gantt chart for scheduling work operations
- 46. 46/137 Administrative Management • General administrative theorists – Writers who developed general theories of what managers do and what constitutes good management practice – Henri Fayol (France) • Fourteen Principles of Management: Fundamental or universal principles of management practice – Max Weber (Germany) • Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships
- 47. 47/137 Fayol’s Fourteen Principles of Management • Division of work • Authority • Discipline • Unity of command • Unity of direction • Subordination of the individual • Remuneration • Centralization • Scalar chain • Order • Equity • Stability of tenure of personnel • Initiative • Esprit de corps
- 48. 48/137 Weber’s Ideal Bureaucracy • Division of Labor • Authority Hierarchy • Formal Selection • Formal Rules and Regulations • Impersonality • Career Orientation
- 49. 49/137 Human Resources Approach • Robert Owen – Claimed that a concern for employees was profitable for management and would relieve human misery. • Hugo Munsterberg – Created the field of industrial psychology— the scientific study of individuals at work to maximize their productivity and adjustment.
- 50. 50/137 Human Resources Approach • Mary Parker Follett – Recognized that organizations could be viewed from the perspective of individual and group behavior. • Chester Barnard – Saw organizations as social systems that require human cooperation. – Expressed his views in his book The Functions of the Executive (1938).
- 51. 51/137 Hawthorne Studies • A series of studies done during the 1920s and 1930s that provided new insights into group norms and behaviors – Hawthorne effect • Social norms or standards of the group are the key determinants of individual work behavior. • Changed the prevalent view of the time that people were no different than machines.
- 52. 52/137 The Quantitative Approach • Operations research (management science) – Evolved out of the development of mathematical and statistical solutions to military problems during World War II. – Involves the use of statistics, optimization models, information models, and computer simulations to improve management decision making for planning and control.
- 53. 53/137 Social Events That Shaped Management Approaches • Classical approach – Desire for increased efficiency of labor intensive operations • Human resources approach – The backlash to the overly mechanistic view of employees held by the classicists. – The Great Depression. • The quantitative approaches – World War II
- 54. 54/137 The Process Approach • Management theory jungle (Harold Koontz) – The diversity of approaches to the study of management—functions, quantitative emphasis, human relations approaches— each offer something to management theory, but many are only managerial tools. • Planning, leading, and controlling activities are circular and continuous functions of management.
- 55. 55/137 The Systems Approach • Defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole – Closed system : a system that is not influenced by and does not interact with its environment – Open system: a system that dynamically interacts with its environment – Stakeholders: any group that is affected by organizational decisions and policies
- 56. 56/137 The Organization and its Environment
- 57. 57/137 Organization Design and Structure Organization Design A process in which managers develop or change their organization’s structure. Work Specialization A component of organization structure that involves having each discrete step of a job done by a different individual rather than having one individual do the whole job
- 58. 58/137 The Contingency Approach • The situational approach to management that replaces more simplistic systems and integrates much of management theory • Four popular contingency variables – Organization size – Routineness of task technology – Environmental uncertainty – Individual differences
- 59. 59/137 Economies and Diseconomies of Work Specialization
- 60. 60/137 Organizational Structure: Control Chain of command The management principle that no person should report to more than one boss. Span of control The number of subordinates a manager can direct efficiently and effectively.
- 61. 61/137 Organizational Structure: Control (cont’d) • Authority – The rights inherent in a managerial position to give orders and expect them to be obeyed • Power – An individual’s capacity to influence decisions • Responsibility – An obligation to perform assigned activities
- 62. 62/137 Types of Organizational Authority • Line authority – The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees • Staff authority – Positions that have some authority (e.g., organization policy enforcement) but that are created to support, assist, and advise the holders of line authority
- 65. 65/137 Authority Versus Power (cont’d)
- 66. 66/137 Types of Power Coercive power Power based on fear. Reward power Power based on the ability to distribute something that others value. Legitimate power Power based on one’s position in the formal hierarchy. Expert power Power based on one’s expertise, special skill, or knowledge. Referent power Power based on identification with a person who has desirable resources or personal traits.
- 68. 68/137 Departmentalization • Functional departmentalization – The grouping of activities by functions performed • Product departmentalization – The grouping of activities by product produced • Customer departmentalization – The grouping of activities by common customers • Geographic departmentalization – The grouping of activities by territory • Process departmentalization – The grouping of activities by work or customer flow
- 69. 69/137 Mechanistic and Organic Organizations • Mechanistic organization – The bureaucracy; a structure that is high in specialization, formalization, and centralization • Organic organization – An adhocracy; a structure that is low in specialization, formalization, and centralization Structure follows strategy
- 70. 70/137 Mechanistic versus Organic Organizations • Rigid hierarchical relationships • Fixed duties • Many rules • Formalized communication channels • Centralized decision authority • Taller structures • Collaboration (both vertical and horizontal) • Adaptable duties • Few rules • Informal communication • Decentralized decision authority • Flatter structures
- 71. 71/137 Organization Design Applications • Simple structure – An organization that is low in specialization and formalization but high in centralization • Functional structure – An organization in which similar and related occupational specialties are grouped together • Divisional structure – An organization made up of self-contained units
- 74. 74/137 Other Organizational Structures • Matrix structure – An organization in which specialists from functional departments are assigned to work on one or more projects led by a project manager • Team-based structure – An organization that consists entirely of work groups or teams • Boundaryless organization – An organization that is not defined or limited by boundaries or categories imposed by traditional structures
- 76. 76/137 Characteristics of a Learning Organization
- 77. 77/137 Organization Culture • Organization culture – A system of shared meaning within an organization that determines, to a large degree, how employees act – Shared values are shown in cultural elements: • Stories, rituals, material symbols, and language unique to the organization. • Results from the interaction between: • The founders’ biases and assumptions • What the first employees learn subsequently from their own experiences.
- 78. 78/137 Ten Characteristics of Organization Culture • Member identity • Group emphasis • People focus • Unit integration • Control • Risk tolerance • Reward criteria • Conflict tolerance • Means-end orientation • Open-systems focus
- 79. 79/137 Human Resources Management (HRM) • The management function that is concerned with getting, training, motivating, and keeping competent employees • Balancing the supply of employees with the demand for employees. • Matching the talents and skills of employees with those required by the organization • Creating a working environment that fosters high employee performance • Meeting the pay and benefits needs of employees
- 80. 80/137 The Strategic Human Resources Management Process
- 81. 81/137 The Legal Environment Of HRM • The impact of federal, state and local laws on HRM practices Affirmative action programs • Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups
- 82. 82/137 Employment Planning • The process by which management ensures it has the right number and kinds of people in the right places at the right time, who are capable of helping the organization achieve its goals • Steps in the planning process: 1. Assessing current human resources. 2. Assessing future human resources needs and developing a program to meet those needs.
- 83. 83/137 Job Analysis Components • Job description – A written statement of what a job holder does, how it is done, and why it is done • Tasks, duties and responsibilities that the job entails • Job specification – A statement of the minimum acceptable qualifications that an incumbent must possess to perform a given job successfully • Knowledge, skills, and abilities required of the job holder
- 84. 84/137 Recruitment And Selection • Recruitment –The process of locating, identifying, and attracting capable applicants • Selection process –The process of screening job applicants to ensure that the most appropriate candidates are hired
- 85. 85/137 Traditional Recruiting Sources • Internal searches • Advertisements • Employee referrals • Public employment agencies • Private employment agencies • School placement • Temporary help services • Employee leasing and independent contractors
- 86. 86/137 Downsizing Options • Firing • Layoffs • Attrition • Transfers • Reduced workweeks • Early retirements • Job sharing
- 88. 88/137 Selection Devices • Written tests – Intelligence, aptitude, ability, and interest test batteries • Performance-simulation tests – Selection devices that are based on actual job behaviors; work sampling and assessment centers • Interviews – Effective if conducted correctly • Realistic job preview (RJP) – Providing positive and negative information about the job and the company during the job interview
- 89. 89/137 Potential Biases in Interviews • Prior knowledge about the applicant will bias the interviewer’s evaluation. • The interviewer tends to hold a stereotype of what represents a good applicant. • The interviewer tends to favor applicants who share his or her own attitudes. • The order in which applicants are interviewed will influence evaluations. • The order in which information is elicited during the interview will influence evaluations.
- 90. 90/137 Potential Biases in Interviews (cont’d) • Negative information is given unduly high weight. • The interviewer may make a decision concerning the applicant’s suitability within the first four or five minutes of the interview. • The interviewer may forget much of the interview’s content within minutes after its conclusion. • The interview is most valid in determining an applicant’s intelligence, level of motivation, and interpersonal skills. • Structured and well-organized interviews are more reliable than unstructured and unorganized ones.
- 91. 91/137 Employee Orientation • Orientation – The introduction of a new employee to the job and the organization • Objectives of orientation – To reduce the initial anxiety all new employees feel as they begin a new job – To familiarize new employees with the job, the work unit, and the organization as a whole – To facilitate the outsider–insider transition.
- 92. 92/137 Training • Employee training – A learning experience in that it seeks a relatively permanent change in employees such that their ability to perform on the job improves. • Changing skills, knowledge, attitudes, or behavior. • Changing what employees know, how they work; or their attitudes toward their jobs, co-workers, managers, and the organization.
- 93. 93/137 Determining if Training Is Needed
- 94. 94/137 Performance Management • Performance management system – A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions and to provide documentation to support personnel actions.
- 95. 95/137 Other Appraisal Methods • Adjective rating scales –Rating an individual on each job performance factor on an incremental scale. • 360-degree appraisal –An appraisal device that seeks feedback from a variety of sources for the person being rated.
- 96. 96/137 Direct Comparison Methods • Group-order ranking – Requires the evaluator to place employees into a particular classification such as “top fifth” or “second fifth.” • Individual ranking approach – requires the evaluator merely to list the employees in order from highest to lowest.
- 97. 97/137 Direct Comparison Methods (cont’d) • Paired comparison approach – Each employee is compared with every other employee in the comparison group and rated as either the superior or weaker member of the pair. – Each employee is assigned a summary ranking based on the number of superior scores achieved. • MBO – Employees are evaluated by how well they accomplish a specific set of objectives determined to be critical in the successful completion of their jobs.
- 98. 98/137 Performance Appraisal Methods METHOD ADVANTAGE DISADVANTAGE Written essay Simple to use More a measure of evaluator’s writing ability than of employee’s actual performance Critical incidents Rich examples Time-consuming; lack behaviorally based quantification Graphic rating Provide quantitative Do not provide depth of job scales data; less time- behavior assessed consuming than others BARS Focus on specific Time-consuming; difficult to and measurable job develop measures behaviors Multiperson Compares employees Unwieldy with large number of with one another employees MBO Focuses on end goals; Time-consuming results oriented 360°Appraisal More thorough Time-consuming
- 99. 99/137 When Performance Falls Short • Performance impediments – Mismatched skills – Inadequate training – Employee’s personal problems • Discipline – Actions taken by a manager to enforce an organization’s standards and regulations • Employee counseling – A process designed to help employees overcome performance-related problems
- 100. 100/137 Compensation And Benefits • Compensation administration – Determining a cost-effective pay structure that will attract and retain competent employees, provide an incentive for them to work hard, and ensure that pay levels will be perceived as fair. • Factors influencing pay levels – Employee’s job – Kind of business – Environment surrounding the job – Geographic location – Employee performance levels and seniority.
- 101. 101/137 Benefits • Employee benefits – Nonfinancial rewards designed to enrich employees’ lives • Types of benefits – Social Security – Workers’ and unemployment compensations – Paid time off from work – Life and disability insurance – Retirement programs – health insurance
- 102. 102/137 Workforce Diversity • Improving workforce diversity – Widen the recruiting net to broaden the pool of applicants. – Ensure the selection process is nondiscriminatory – Assist new employees in assimilating into the firm’s culture. – Conduct specialized orientations and workshops for new employees
- 103. 103/137 Sexual Harassment • Sexual harassment – Sexually suggestive remarks, unwanted touching and sexual advances, requests for sexual favors, or other verbal and physical conduct of a sexual nature • Creates an intimidating, offensive, or hostile environment; • Unreasonably interferes with an individual’s work; or • Adversely affects an employee’s employment opportunities.
- 104. 104/137 Sexual Harassment (cont’d) • Hostile (or offensive) environment – Meritor Savings Bank v. Vincent • Organization can be held liable for harassment • Harassing act (not subsequent outcome) is deciding factor • Protecting the organization – Educating employees about sexual harassment – Having a sexual harassment policy in place that is enforced fairly – Taking action on the first instance of a sexual harassment complaint
- 105. 105/137 Labor Relations and Unions • Labor–management cooperation – Involves mutual efforts on the part of a labor union and the management of an organization. • Successful efforts to increase productivity, improve quality, and lower costs require employee involvement and commitment. – Labor unions have come to recognize that they can help their members more by cooperating with management than fighting it.
- 106. 106/137 Violence in the Workplace • Workplace violence – The increase in violent crimes being committed at the work site. • Preventing violence in the workplace – Training supervisory personnel to identify troubled employees before the problem results in violence. – Designing employee assistance programs (EAPs) specifically to help individuals in need. – Implementing stronger security mechanisms. – Preventing violence paraphernalia from entering facilities altogether.
- 107. 107/137 Layoffs and Downsizing • Layoff-survivor sickness – The set of attitudes, perceptions, and behaviors of employees who remain after involuntary staff reductions. • Dealing with the “Survivor Syndrome” – Provide opportunities for employees to talk to counselors about their guilt, anger, and anxiety. – Provide group discussions for the survivors to vent their feelings. – Implement employee participation programs such as empowerment and self-managed work teams.
- 110. 110/137 Early Theories Of Motivation • Hierarchy of needs theory (Maslow) – there is a hierarchy of five human needs; as each need becomes satisfied, the next need becomes dominant. – Physiological: food, drink, shelter, sex – Safety: physical safety – Social: affiliation with others, affection, friendship – Esteem: Internal (self-respect, autonomy, and achievement); external (status, recognition, and attention) – Self-actualization: personal growth and fulfillment
- 111. 111/137 Maslow’s Hierarchy of Needs
- 112. 112/137 Early Theories Of Motivation (cont’d) • Theory X (McGregor) – The assumption that employees dislike work, are lazy, seek to avoid responsibility, and must be coerced to perform • Theory Y – The assumption that employees are creative, seek responsibility, and can exercise self-direction
- 113. 113/137 Theory X Premises • A manager who views employees from a Theory X (negative) perspective believes: – Employees inherently dislike work and, whenever possible, will attempt to avoid it – Because employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve desired goals – Employees will shirk responsibilities and seek formal direction whenever possible – Most workers place security above all other factors associated with work and will display little ambition
- 114. 114/137 Theory Y Premises • A manager who views employees from a Theory Y (positive) perspective believes: – Employees can view work as being as natural as rest or play – Men and women will exercise self-direction and self- control if they are committed to the objectives – The average person can learn to accept, even seek, responsibility – The ability to make good decisions is widely dispersed throughout the population and is not necessarily the sole province of managers
- 115. 115/137 Early Theories Of Motivation (cont’d) • Motivation-Hygiene theory (Herzberg) – intrinsic factors are related to job satisfaction and extrinsic factors are related to job dissatisfaction • Hygiene factors – Factors, such as working conditions and salary, that, when adequate, may eliminate job dissatisfaction but do not necessarily increase job satisfaction • Motivators – Factors, such as recognition and growth, that increase job satisfaction
- 117. 117/137 Contrasting Views of Satisfaction-Dissatisfaction
- 118. 118/137 Contemporary Theories Of Motivation • Three-needs theory (McClelland) – The needs for achievement, power, and affiliation are major motives in work • Need for achievement (nAch): the drive to excel, to achieve in relation to a set of standards, to strive to succeed. • Need for power (nPow): The need to make others behave in a way that they would not have behaved otherwise. • Need for affiliation (nAff): The desire for friendly and close interpersonal relationships.
- 119. 119/137 Contemporary Theories Of Motivation (cont’d) • Equity theory (Adams) – Employees perceive what they get from a job situation (outcomes) in relation to what they put into it (inputs) and then compare their input-outcome ratio with the input- outcome ratios of relevant others.
- 120. 120/137 Equity Theory Relationships EMPLOYEE’S ASSESSMENT Inequity (under rewarded) Equity Inequity (overrewarded) *Person A is the employee, and Person B is a relevant other or referent.
- 121. 121/137 Equity Theory • When employees perceive an inequity they may: – Distort either their own or others’ inputs or outcomes. – Behave so as to induce others to change their inputs or outcomes. – Behave so as to change their own inputs or outcomes. – Choose a different comparison referent. – Quit their job.
- 122. 122/137 Equity Theory Prepositions • If paid according to time, overrewarded employees will produce more than equitably paid employees. • If paid according to quantity of production, overrewarded employees will produce fewer but higher- quality units than equitably paid employees. • If paid according to time, underrewarded employees will produce less or poorer-quality output. • If paid according to quantity of production, under-rewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.
- 123. 123/137 Job Design And Motivation • Job characteristics model (JCM) – Hackman and Oldham’s job description model: • The five core job dimensions are skill variety, task identity, task significance, autonomy, and feedback. – Internal rewards are obtained when: • An employee learns (knowledge of results) through feedback) that he or she personally (experienced responsibility through autonomy of work) has performed well on a task that he or she cares about (experienced meaningfulness through skill variety, task identity, and/or task significance).
- 124. 124/137 Core Job Dimensions • Skill variety – The degree to which the job requires a variety of activities so the worker can use a number of different skills and talents • Task identity – The degree to which the job requires completion of a whole and identifiable piece of work • Task significance – The degree to which the job affects the lives or work of other people
- 125. 125/137 Core Job Dimensions (cont’d) • Autonomy – The degree to which the job provides freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out • Feedback – The degree to which carrying out the work activities required by the job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance
- 126. 126/137 The Job Characteristics Model
- 127. 127/137 Guidelines for Job Redesign
- 128. 128/137 Expectancy theory (Vroom) • A comprehensive theory of motivation that an individual tends to act in a certain way, in the expectation that the act will be followed by given outcome, and according to the attractiveness of that outcome to the individual. The extent to which individuals are motivated to perform to get a reward of value to them is based on their belief that their performance will result in the reward they want.
- 129. 129/137 Expectancy theory (Vroom) • Emphasizes self interest in the alignment of rewards with employee wants. • Addresses why employees view certain outcomes (rewards) as attractive or unattractive. • Emphasizes the connections among expected behaviors, rewards, and organizational goals. • Is concerned with individual perceptions and the provision of feedback.
- 130. 130/137 Expectancy Relationships (Linkages) • Effort–performance – The perceived probability that exerting a given amount of effort will lead to performance • Performance–reward – The belief that performing at a particular level will lead to the attainment of a desired outcome • Attractiveness – The importance placed on the potential outcome or reward that can be achieved on the job.
- 131. 131/137 Simplified Expectancy Theory Performance appraisal system Human resources management Training and development
- 132. 132/137 Integrating Theories of Motivation
- 133. 133/137 Flexibility: The Key To Motivating A Diverse Workforce • Recognizing the different personal needs and goals of individuals • Providing a diversity of rewards to match the varied needs of employees • Being flexible in accommodating the cultural differences within a diverse workforce when attempting to motivate workers.
- 134. 134/137 Motivation and Compensation • Pay-for-performance programs –Compensation plans such as piece-rate plans, profit sharing, and the like that pay employees on the basis of performance measures not directly related to time spent on the job.
- 135. 135/137 Compensation Alternatives • Competency-based compensation – A program that pays and rewards employees on the basis of skills, knowledge, or behaviors they possess • Broad-banding – Pre-set pay level, based on the degree to which competencies exist and allow an employee to contribute to the organization. • Stock options – A program that allows employees to purchase company stock at a fixed price and profit when company performance increases its stock value.
- 136. 136/137 Work-Life Balance: Alternative Work Schedules • Flextime – A scheduling option that allows employees select what their work hours will be within some specified parameters. • Job sharing – A type part-time work that allows two or more workers to split a traditional 40-hour-a-week job • Telecommuting – A system of working at home on a computer that is linked to the office
- 137. 137/137 Employee empowerment: How Entrepreneurs Motivate Employees • Giving employees power by: – Allowing them to complete the whole job. – Having employees work together across departments and functions in the organization. – Using participative decision making in which employees provide input into decisions. – Delegating decisions and duties, turning over the responsibility for carrying them out to employees. – Redesigning their jobs so they have discretion over the way they do their work.