Managment

Informal organization

"Who do you go to for help and advice to get your work done?"

Strategic Contingency Model of Power

- According to the strategic contingency model, power depends on the environment and the company's strategy, and should shift to different actors as these two things change - However, we don't live in an ideal world. Power doesn't change hands easily. Therefor, there is often a lag in trying to adapt to changing environmental circumstances

McClelland's Acquired Needs Theory (1961)

- David McClelland developed his work on the foundation of Maslow's Hierarchy and was was interested in the higher-order needs. - He proposed that these higher-order needs were not innate characteristics, but acquired over time, though family relationships, personal experiences, and cultural expectations. - Specifically, he focused on the Need for Achievement, the Need for Power, and the Need for Affliation. - Each need was correlated to different attitudes and behaviors, and had different implications for the fit between a person and a job. - People possessed these needs in varying proportions

Maslow's Hierarchy of Needs

- General theory of motivation (not organization specific) but relevant for many firms - The idea is that people can't pursue higher-order self-actualization needs, like creativity, growth, or meaning, unless lower-order needs (like physical and financial security needs) have been met. - The implication for management is that employers must help employees meet their lower-level needs before they encourage them to pursue higher-level needs that benefit the organization and ultimately society.

Cialdini's Principle 5: Liking

- People are influenced by people they like Sources of 'liking': - Physical attractiveness - the 'halo effect' Yet people deny this halo effect. They deny that physical attractiveness played a factor in their decisions to agree with a person, vote for then, hire or promote them, or offer help etc - Similarity, having things in common - Likeness breeds liking - Compliments -- People like people who like them - Familiarity through repeated contact (and positive affect in interactions) - Association with positive others

Cialdini's Principle 2: Consistency

- People want to be consistent with their previous behaviors (and look consistent to themselves and others) - Foot in the door tactic: Initial commitment => Consistency If you want to persuade someone to do something for you, ask for a small, initial commitment first. Ask for the larger favor later. Example: Phone survey about voting behavior => increases election turnout

Scientific Management: Positives

- Provides an analytical framework for looking at work - makes it easier to train workers - centralizes control - gives more jobs to less educated people - increases pay and profits - jobs are safer and healthier (takes into account physiological limits) (higher output and wages)

Cialdini's Principle 6: Scarcity

- Scarcity: If an item is rare or becoming rare, it is seen as being more valuable. - Classic example is 'limited edition' items, or saying that there is a limited number available of something. Example: 'Last chance to buy' section

Social networks

- Social network - (informal) relationships between individuals - Social networks within a company are called the informal organization Who talks to whom? Who goes to whom for advice/help? - Your social network reflects and influences how much you depend on certain people for resources, for information etc. - Diversifying your network will lessen your dependency on particular individuals, and potentially make you more influential

What is power?

- The ability to get things done the way one wants them done (Salancik & Pfeffer, 1989) - You can recognize power (or lack of it) from it's consequences => Power is visible in organizations - Power operates at every level of society

Process theories of motivation

- Vroom's expectancy theory - Adam's equity theory - Objective setting theory These theories assume people have thought processes based on their rational calculations, perceptions, and beliefs, and examine how these thought processes lead to motivation and demotivation - which in turn influence behavior and effort

Cialdini's Principle 3: Social Proof

- We are heavily influenced by what other people around us say and do - Social proof indicates to us what is desirable, what is acceptable. We have a tendency to conform to the group, especially if we feel an affinity to that group

Cialdini's Principle 1: Reciprocation

- When someone does something for us, we are obligated, at a future date, to return the gesture - All cultures have this rule of reciprocity (Gouldner, 1960) - Although the essence of reciprocity is the obligation to repay, what makes the reciprocity rule so easy to exploit, is the obligation to receive. - Because the reciprocity rule is so important for societal functioning, people who don't abide by it are shamed and not liked - Timing matters. You are most influential soon after helping someone out

Job Rotation, Enlargement, Enrichment

- through job rotation the monotonous aspect of this method is relieved. - Job enlargement refers to expanding the tasks performed by employees to increase variety - Job enrichment refers to giving employees more control over how their task is performed. All of these relieve the stressful and monotonous aspect of job specialisation.

Cialdini's Principles of Influence

1. Reciprocation 2. Consistency 3. Social proof 4. Authority 5. Liking 6. Scarcity 7. Unity

Leadership versus Management (Kotter, 2001)

Leadership and management are different, but complementary. Both have their function and characteristic activities. Both are necessary for success in an increasingly complex and volatile business environment. Management is about coping with complexity - Large, complex organizations that emerged in the 20th century => need for good management - Management brings order & consistency to everyday operations - Good managers ensure quality, profitability Leadership is about coping with change - Leaders set direction - Leaders align people - And provide motivation

Time & Motion Studies

The manager's job was to study the work being done in great detail Instigated by Frederick Taylor's philosophies. (Taylor's principles of Scientific Management). He came up with more systematic approaches to production.

Elements of the JCM (Job characteristics model)

These increase the motivating potential of a job: - Skill variety: the extent to which a job requires a person to utilize multiple high-level skills - Task identity: the degree to which a person is in charge of completing an identifiable piece of work from start to finish. - Task significance: Whether a person's job substantially affects other people's work, health, or well-being. - Autonomy: The degree to which a person has to decide how to perform his or her tasks - Feedback: the degree to which people learn how effective they are being at work.

the mystery of the miserable employee

https://moodle.city.ac.uk/pluginfile.php/2918643/mod_resource/content/3/Week%202%20Lecture%20Slides%202022.pdf

Expectancy Theory criticism

■Theory is complicated and involves many variables; it is difficult not only to test but also to implement. ■Quantitative measures of expectancy, instrumentality and valence too difficult to calculate. ■Theory is not fruitful in predicting the motivation of employees in simpler, typical, routinized and lower level jobs and employees in organizations. ■Might work better in some cultures and countries than in others i.e. more likely to explain motivation in United States than in other countries as people from the US tend to be very goal oriented and tend to think they can influence their own success.

Emotional drives of motivation

■to acquire (scarce goods that bolster our sense of well-being) ■to bond (friendship, collaboration, teamwork) ■to comprehend (to make sense and meaningful contribution, challenging jobs) ■to defend (justice, security and confidence) ---------------------------------------------------------------------- ■Drive to acquire •links rewards to performance (praise, recognition, assignments choice) •distinguishes between top and bottom performers (bonuses) ■Drive to bond •takes action that encourage teamwork ■Drive to comprehend •gives challenging and interesting jobs ■Drive to defend •controls how company processes/policies are implemented •is fair and trustworthy

Contemporary leadership research

Focus not on personalities but behaviours => what good leaders and managers do to cope with people, situations, and the organizational environment

Organizational Leaders: Vision and Strategy

Organizational leaders set direction and strategy. In large organizations, this is their key responsibility, instead of dealing with everyday operations What is strategy? - How the organization is going to compete against other organizations - How the organization is going to position itself in its market/sector/industry - How the organization is going to survive in the future

Cialdini's Principle 7: Unity

- People are influenced by people they consider one of them (One of 'us') - Unity is about shared identities (race, ethnicity, nationality, family, political and religious affiliations). - Unity increases the force of other principles of influence

Scientific Management: Negatives

- Doesn't acknowledge workers' knowledge or capacity to innovate - Piece-rate system can lead to exploitation or self-interested behavior - Workers can get bored by repetition - sets up a class system (managers vs laborers)

Cohesive network

- Everyone is connected to one another - In such a network, there is usually a lot of communication and coordination. There is trust and mutual support, mutual dependency - In such a network, there is redundant information

Attribution errors in evaluating leaders

- Fundamental attribution error: Tendency for people to emphasize internal characteristics in other people but to interpret their own behaviour in relation to the situation in which they find themselves (Jones and Harris 1967; Ross 1977) } - Leader attribution error: Tendency for individuals to perceive the leader as the primary cause of group performance, both positive and negative (Hackman & Wageman, 2007)

Empowerement

- Giving authority to subordinates so that they can act more freely to accomplish their jobs - Most people want some level of control, or power, over their own tasks (think back to scientific management) - Empowerment is a discretionary, deliberative and relational process, rather than a feature of a job or role. - The key to empowerment is effective delegation; giving individual contributors ownership of tangible outcomes (Tulgan, 2001)

Human relations: the negatives

- Hard to allocate resources to employer well-being when "times" are bad for the company. - Only indirectly linked to productivity (not like installing more machines or hiring more workers) - Doesn't change job design, power structure, or rewards - Meeting high expectations over a long period of time may be a difficulty

Strategic Contingency Model of Power (Salancik and Pfeffer, 1977)

- Ideally, people/groups who cope with critical environmental problems will have more power (As opposed to having power because of organizational structure, or an individual's personal qualities) For example: if people have certain skills essential to a business's operations they would hold more power in the context of this theory.

What are you more likely to be able to get done as a manager if you have more power?

- Obtain more resources than others - Get items of interest to you on the agenda (Attention => resources) - Influence key hiring and promotion decisions (=>coalition building) - Have strategic decisions go in your favor

Cialdini's Principle 4: Authority

- People defer to those who are in positions of formal authority - People also defer to expert authority. So another way of exercising influence is by demonstrating competence & expertise - In the workplace, self-promotion is not always well received. More powerful if someone else attests to your credentials

Key Takeaways: Maslow's Hierarchy of Needs

- People have the same pyramid of needs -though they vary on where they are on the pyramid - Lower-level needs take precedence over higher-level needs - Organizations need to acknowledge that before asking workers to pursue higher- order achievements, they need to help them meet their basic needs - Criticism - it cannot be verified empirically, because there is no proper method to measure accurately how satisfied one level of need must be before the next higher need becomes operative; the model does not consider the probability of cultural differences as it assumes that the same needs apply equally to all human cultures.

Bridging Network

- People who have bridging networks are boundary spanners - They connect disparate people who are not connected to each other - People who have such bridging networks have access to more novel information from these different sources - Boundary spanners can also decide WHAT information to communicate between these disparate people/groups, WHEN to communicate such information, or HOW to communicate it

Key Takeaways: Herzberg's Two-Factor Theory

- Sometimes "there's no number" and managers can't use financial rewards to motivate people. - Herzberg suggests that you can have highly motivated, but dissatisfied, workers and you can also have satisfied, but unmotivated workers - Managers need to know what the actual problem is - giving more perks or changing someone's supervisor isn't going to work if the employee is actually looking for growth or a better opportunity to make their mark on the world Criticism: sample was limited to the engineers and accountants; theory is not conclusive because the professionals or the white collar workers may like responsibility and challenging jobs but the general workers are motivated by pay and other benefits.

Motivation theories

1.Content theories: focus on what motivates people at work ■Maslow's hierarchy of needs ■Herzberg's two-factor theory ■McClelland's acquired needs theory 2.Process theories - focus on how the content of motivation influences behaviour: ■expectancy theory; goal setting theory; equity theory

McClelland's Motivational Needs

ACHIEVEMENT: the drive to excel; to achieve in relation to a set of standards; to strive to succeed •evaluating performance •achieving a unique accomplishment •setting long-term goals •Competition, winning and success POWER: desire to influence the behavior of others •controlling others •influence or desire to influence •e.g. arguing, ordering, convincing, negotiating, ruling, •superior or subordinate relationship (e.g., boss/worker, child parent) AFFILIATION: desire for friendly and close interpersonal relationships •positive emotional relationships •liking or wanting to be liked •affiliative activities (e.g., parties, reunions, family events, etc.)

Values-based Approaches to Leadership

After various corporate scandals (e.g. Enron, Arthur Andersen, WorldCom, Theranos, Lehman Brothers, the role of greed and hubris in the 2008 financial crisis) people wanted to be able to trust business leaders again Values-based approaches to leadership emerged Authentic Leadership - Leading with purpose, meaning and values => Greater good - Authentic leaders exhibit openness and transparency in their behaviors, share information with stakeholders, accept others' inputs, provide constructive feedback, take accountability (Avolio et al 2007; Gardner et al 2005) - Importance of integrity => Walking the talk - Authentic leaders are self reflective; aware of their strengths as well as weaknesses and try to develop themselves into better leader

From lower to higher levels of leadership summary

At lower levels of the organization, leaders need to: - Understand how to motivate people - Set SMART goals for direct reports - Adopt different styles of leadership to match different employees' levels of development (Situational Leadership Theory) As you move up the hierarchy to middle management, leaders need to: - Be able to set higher-order goals that motivate - Manage the political context to get resources for your teams/projects - This requires "managing up" as well as within a network of potential allies/competitors As you get toward the top of the organization, leaders need to: - Manage relationships with distant followers, based on inspiration - Set vision & strategy, align people by communicating the vision and keep motivation going despite obstacles - Leaders at the top get the credit and the blame for the organization's performance - whether or not this is accurate (Leader attribution error)

Behavioral Theories

Became popular roughly around the 1950's and 1960's Look at what leaders do as opposed to their personality traits Identification of 'leadership style': - 'Results Orientation' vs. 'People Orientation' - or decision making styles: Democratic/Participative, Autocratic, Laissez-faire Researchers could not identify a universal leadership style that was effective across situations. Different styles improved different outcomes (i.e. productivity vs. employee motivation) Situation/context is not taken into consideration

Situational or Contingency Theories

Became popular starting in the 1960's Argument: There is no 'best' leadership approach. Effective leadership is dependent on task/situation, and the abilities and motivations of those being led Fieldler (1964) argued leaders with particular styles should be matched to situations where their style is most appropriate. This is not very practical. Also assumes that leadership style is fixed. Situational leadership theory argued leaders should flexibly adapt their styles based on the needs of their subordinates (Hersey and Blanchard 1969)

Tools for Transactional Leadership

Contingent rewards means rewarding employees for their accomplishments. Active management by exception involves leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring. Passive management by exception involves leaving employees alone, but in this method the manager waits until something goes wrong before coming to the rescue.

Job Specialization

Each job would be carefully planned by managers through close observation of the work process. Employees would be trained and paid to perform simplified tasks specified by managers. division of labor

Summary: Blanchard and Hersey's Situational Leadership Theory

Employees who are at the earliest stages of developing are seen as being highly committed but with low competence for the tasks. Thus, leaders should be highly directive. If the employee becomes more competent, but displays low levels of commitment (maybe due to disillusionment with the work or the organization), the leader should engage in more coaching behaviours. Supporting behaviours are recommended for employees who are competent but whose commitment needs to be maintained. Delegating is the recommended approach for leaders dealing with employees who are both highly committed and highly competent. Key idea of this model is that leaders should behave according to employee needs and be flexible in their approach.

Power of empowerement in motivation

Empowering employees may increase their motivation and so potentially performance.

Leadership Skill: Goal Setting Summary

Given the task / context, leaders must think about: - How to set difficult, but achievable goals that are specific - How to frame the importance of goals - How to enable people to achieve them - How to ensure they give appropriate feedback - Whether to choose distant learning goals or more proximate goals

Leadership Skill: Goal Setting

Goal setting theory (Locke & Latham 1990) - from Week 3 Goal - object or aim of action Specific, challenging yet realistic goals consistently lead to higher performance than simply urging people to do their best Goals impact performance through four mechanisms - Give direction: Direct attention and energy - Energize (until the goal is attained) - Give a sense of challenge and accomplishment - Motivate people to think outside the box, discover new ways of doing things

Comparison of Hygiene Factors and Motivators

Hygiene Factors (extrinsic) ■Company policies ■Supervisor ■Working conditions ■Relationship with peers ■Status ■Security These factors contribute to dissatisfaction. Motivators (intrinsic) ■Recognition ■Achievement ■Work itself ■Responsibility ■Opportunity for advancement ■Growth These factors contribute to motivation. Managers should pay attention to whether employees are dissatisfied or unmotivated because these problems have different causes and need to be addressed accordingly.

Two types of payment systems

INPUT BASED Earnings linked to the time, experience, skills or competencies which employees bring to work ■Examples: hourly rates of pay, overtime premium, career grades which link pay increases to qualifications OUTPUT BASED Base earnings on the product of work measured either in operational terms (i.e. units of output, achievement of goals, customer satisfaction) or financially (i.e. sales profitability, value added) ■Examples: piecework, appraisal related pay, gain sharing, employee share ownership

Tools for Transformational Leadership

Idealized influence (charisma): Demonstrates behaviours that create confidence in, commitment to, and admiration for the leader. Leader is mission oriented and acts as a role model. Inspirational motivation: Communicates the vision and builds commitment to them. Energizes followers to act Intellectual stimulation: Challenges organizational norms and status quo, and encourages employees to think creatively, and work harder Individualized consideration: Leader transcends self-interest, and shows consideration for followers. Tries to create opportunities for development

Empowerment: Individual and organizational benefits

Individual benefits - People who feel powerless feel discontent (think back to scientific management: lack of freedom to decide how to do tasks creates boredom, fatigue, which can result in low job satisfaction, absenteeism, turnover etc.) - Giving people more control over their work can improve their stress level and overall health (Wheatley, 2003) Organizational benefits - Empowerment increases the knowledge of the organization - Increases commitment, creativity and motivation - Empowerment => Proactivity and problem solving => Higher performance

Piece-Rate Pay

Instead of paying by the hour or day, scientific management advocated linking pay to output. The more u produce the more u get paid (motivation). The assumption is that people are primarily economic actors motivated by financial rewards.

Limiting notions of leadership

Leaders are naturally charismatic and power-seeking people "Great leaders are born, not made" The leaders that get the most attention in popular press are the ones who put themselves in the limelight => a very particular kind of person. You may not have heard of many others who displayed great leadership This view of leadership is not helpful - Difficult to identify a set of personality traits that make a good leader in all situations - although studies have tried - Assumes that people cannot learn and develop into leadership roles - Most people become leaders later in their careers Contemporary organizational leadership research focuses on what leaders do rather than who they are.

Leader-Member Exchange (LMX) Theory

Leaders can have differentiated relationships with their employees. The type of relationship is key to understanding how the leader influences an employee. High quality LMX relationships involve mutual liking, trust and respect. Sense of obligation and loyalty Low quality LMX relationships exhibit low levels of trust, liking and respect. Advantage: High quality LMX relationships can make both followers and leaders go above and beyond their job description Disadvantage: Can create in-groups and out-groups, undermining people's sense of fairness in the organization if they perceive others are getting more support from the leader

Leadership at Different Levels of the Organization

Leadership is needed at every level of the organization Leadership behaviours can change at different levels of the organization - Leading individuals - Middle managers as leaders - Organizational leadership

Charismatic and Inspirational Leadership Theories

Leadership theories of the 50s, 60s, and 70s focused on improving organizational efficiency and effectiveness amidst economic growth and stability After the 1973 oil crisis, increasing global competition, and the increasing pace of change gave rise to new models of leadership that focused on leaders' ability to cope with ambiguity, lead change by having a vision, and the charisma to mobilize followers Charisma — the ability to inspire trust and confidence in one's success Vision — a desirable (and achievable future) state Most influential was Transformational Leadership Theory - which still influences how we view and assess our leaders today

Leading Individuals

Managing direct reports through - Situational leadership and adjusting your leadership behaviours based on individual subordinates' needs: directing, coaching, supporting, delegating - Goal setting

Acquired Needs Theory: Implications for Management

McClelland's Needs theory assumes that people have different needs, and that managers must understand how to identify and meet individual needs. These needs shape the fit between a person and a role/task - Someone with high affiliation needs would not do well in a solitary role. - Someone with high power needs would not do well in a role where they have no input. Recognizing and meeting these individual needs is what makes management hard because often people do not even understand what motivates themselves, much less other people. Criticism: it has less practical effect than other theories, because McClelland argued that the three needs are subconscious, meaning that we may be high on these needs without knowing. Measuring them is not very easy.

Instrumentality theory - "People work only for money" (Taylor, 1911)

Money can motivate but it is not the only motivator: - Satisfies the basic needs for survival, security, self-esteem and status - Lack of it causes dissatisfaction but money does not result in lasting satisfaction - 'People do work for money - but they work even more for meaning in their lives. Pay cannot substitute for a working environment high on trust, fun and meaningful work'. (Pfeffer, 1998).

Management Activities

Planning & budgeting: Setting goals for the (near) future, establishing a plan to achieve those goals, and allocating resources accordingly Organizing & staffing: Developing the human capacity, and an organizational structure to accomplish what is planned. Exercising control and solving problems: Creating formal and informal systems to monitor results to ensure deviations from set goals are fixed

Trait theories

Popular until the 1940's Question they were trying to answer: What personality traits distinguish a leader from a follower? Underlying assumption is that leadership is innate and cannot be learned Researchers could not identify universal traits that differentiated effective leaders from followers Contextual factors are not taken into account

Values-based Approaches to Leadership (servant leadership)

Servant Leadership - Role of the leader is serving the needs of others - Servant leaders feel an obligation to employees, customers and larger community - Outcome: positive effects on employee commitment, sense of fairness, increases interpersonal helping and citizenship behavior Example: Colleen Barrett, President of Southwest Airlines - Was the first woman to become president of a major U.S. airline in 2001 - Named on of "World's 100 Most Powerful Women" by Forbes (2005, 2004); - One of the "50 Most Powerful Women in Business" by Fortune (2003, 2002) - One of the "100 Most Influential Women in Aviation" by Women in Aviation International (WAI) (2003);

Middle Managers as Leaders

Set agenda for people they don't necessarily work with directly - Goal-setting to coordinate behaviour among their people/teams => Management by Objectives Requires understanding of power/influence (from Week 4) - Middle managers need to compete for scarce resources in the organization - Often also competing to move up the organizational hierarchy - They need to manage up and manage down

Leadership Activities

Setting direction - Leadership's function is to produce change. - Setting the direction of change involves searching for patterns & relationships (in the environment, in data, etc.). - Setting direction doesn't produce detailed plans. Instead, it results in a vision and an overarching strategy for realizing the vision Aligning people - Communicating the new direction in a way that resonates with potential allies. Growing the coalition - Involves getting a large number of people, inside and outside the company, to believe in an alternative future, and then to take initiative based on that shared vision. Motivating & inspiring - Since high energy is essential to overcoming barriers to change, leaders attempt to touch people at their deepest levels— by appealing to their values and emotions (akin to Transformational Leadership).

Transformational Leadership Theory (Bass, 1985; Burns, 1978)

Transformational Leadership Focuses on a common vision and aligns everyone with that vision Encourages people to transcend self-interest => what is best for the company Outcome : Increases intrinsic motivation of followers, increases performance and creativity, creates higher levels of commitment to organizational change efforts Transactional Leadership Exchanges rewards for effort Provides structure Ensures that followers exhibit the correct behaviours

SMART goals

Specific, Measurable, Achievable, Relevant, and Time-Bound.

Strong vs Weak ties

Strong ties - Frequent interaction - Reciprocated (e.g. both sides ask each other for advice) - Take more effort to maintain Weak ties - Less frequent interaction - 'Acquaintance' as opposed to a close friend - Easy to maintain. You can have many weak ties and you aren't dependent on any one - Weak ties can expose you to more novel information Example: Weak ties are very valuable when job searching

Hawthorne effect

The idea is that when managers pay attention to workers and show care for workers' well-being, workers will increase their productivity because their human needs are being met. - People want to feel useful, important and liked (by management and colleagues). These social and emotional needs are very important to pay attention to.

Blanchard and Hersey's Situational Leadership Theory

The model argues that to be effective, leaders must use the right style of behaviours at the right time in each employee's development, which is assessed according to their levels of competence and commitment.

When do goals motivate? (Beyond the SMART Acronym)

When people are committed to the goal: - When they see the goal itself as important (sense of mission) - Or they value the outcomes that follow from achieving it (Expectancy Theory) - Note, people must believe that their actions will result in the outcomes they desire Goals are also motivating if they are set in a collaborative fashion; and/or a rationale is given by the leader for selecting the goal When people are given feedback When people have a sense of self-efficacy Goals are motivating if appropriate type of goal is chosen; - Learning goals for complex tasks - Proximate, performance goals to complement more distant goals (Example: Research report)

Power and politics

Why do we need to understand power (and politics) better? - The pursuit of power (or 'politics') is considered a less-than honorable, dirty activity. However, the pursuit of power is pervasive in organization life - Politics are merely activities undertaken to acquire, develop, and use power to obtain one's preferred outcomes - Power enables you to get things done that you think should be done - Life, and organizational life, is political because different people have divergent interests What do politically skilled people do? Develop astuteness in assessing situations - What do I want out of the situation? - What does my audience/target/competition want out of this situation? - What is important to them? Are aware of how best to communicate messages (i.e. 'Sell' an issue) - Frame the message/request - to make it more acceptable, desirable - Involve others as necessary (i.e. coalition building) - Preparation/timing Network relentlessly - to strategically shape social networks Exercise interpersonal influence

Frederick Herzberg's Two Factor Theory of Motivation (1966)

■A content model of motivation which says that satisfaction and dissatisfaction in work are created by different factors. ■ "Motivating factors" describe things that have the ability to make individuals satisfied or even happy at work i.e. achievement, recognition, advancement, empowerment, responsibility and intrinsically interesting work. ■"Hygiene factors" describe things whose absence has the ability make individuals unsatisfied or unhappy at work - i.e. salary, safety, security, working environment, working conditions etc. ■The core point is that motivating and hygiene factors are very different and hygiene factors are a per-requisite for a good employee experience and for good employee engagement.

Motivation

■A reason or reasons for acting or behaving in a particular way. ■Motivation involves the biological, emotional, social, and cognitive forces that activate behavior. ■In everyday usage, the term "motivation" is frequently used to describe why a person does something. ■It is the driving force behind human actions.

Objective Setting Theory by Locke and Latham (1990)

■According to Locke and Latham, there are five goal setting principles that can improve our chances of success: clarity, challenge, commitment, feedback and task complexity ■Advantages - a technique used to raise incentives for employees to complete work quickly and effectively; leads to better performance by increasing motivation and efforts, but also through increasing and improving the feedback quality. ■Criticism - at times, the organizational goals are in conflict with the managerial goals; complex goals stimulate riskier behaviour.

Reward management

■Aspect of HRM that deals with the management of remuneration and intrinsic rewards ■More proactive, deliberate approach in which payment systems are used as tools to secure strategic business objectives

Rewards

■Benefits which employees receive in return for working on behalf of an employing organisation: ■Extrinsic rewards - cash payments and benefits (i.e. pensions, insurance, cars) ■Intrinsic rewards - integral to work (i.e. job satisfaction, challenge, recognition, development, social status)

Best practice in reward mangement

■Effectively discriminates between good and poor performance ■Ties rewards clearly to performance ■Gives the best people opportunities for advancement ■Pays as well as the competitors

Benefits

■Form part of remuneration and consist of a broad range of special payments: sick pay, maternity/paternity pay, pensions, company cars, memberships of health clubs, access to education etc. ■Represent statutory provisions and reflect a management style that stresses the employer's obligation to 'care' for employees ■Flexible benefits - systems which allow for a degree of employee choice over the form of remuneration (i.e. paid holiday at the cost of reduced salary) ■Cafeteria benefits - employees choose benefits which suit their particular needs (costly to administer but allows a proportion of the costs to be transferred to the employees)

Adam's Equity Theory (1963)

■Individuals make cognitive evaluations of the difference between their contributions and the outcomes, as compared to others ■What am I getting in exchange for my labour? - people use the other co-worker to judge the fairness of the amount ■Relative deprivation theory (negative feelings results when an individual compares his/her state of affairs to more advantageous alternative) ■The subjectivity of inputs is the reason for the subjectivity of fairness perceptions

Why does someone become unmotivated?

■Lack of action for poor performance ■Companies that don't deal with performance issues bring down the average for everyone. ■When we go to work, we like to be rewarded and recognized for our contributions. If this isn't happening, or worse, people doing mediocre work are getting the same treatment as strong performers, it's natural to just turn off.

Jack Welch approach Chairman & CEO of General Electric (GE) (1981-2001)

■Leaders should fire the bottom 10% of their workforce each year ■This is part of an orderly continuous improvement process ■It imposes discipline ■Clear message on how to deal with underperforming employees

Non-financial rewards

■Non-financial motivators focus on the human need for achievement, recognition, responsibility, influence and personal growth ■Empowerment, opportunity to acquire more expertise and competence, public acknowledgement and public reward

Summary on motivation theories

■The biggest difficulty of using motivation theories to get the most out of your staff is that there's no single approach that works for everyone. ■But motivation theories provide an insight into what makes an employee perform better •It provides managers with a tool to motivate employees and helps them in understanding how the staff can be managed better

Rate of pay

■The factors to be taken into account in relation to rate of pay: inputs, outputs, internal relativities, market worth (external relativities), potential