Exam 3 Competitive Effectiveness

Motivation

Internal and External factors that stimulate desire and energy in people to be continually interested and committed to a job; to make an effort to attain a goal

Process Theories (How Motivation Occurs)

• Emphasize how individuals are motivated

• Focus on steps occurring when individual is motivated

Content Theories (Understand Human Needs)

• Emphasize individual’s internal characteristics

• Focus on understanding what needs individuals have and how to satisfy those needs

Four Important Theories of Motivation (How motivation occurs)

• Needs-Goal Theory

• Vroom Expectancy Theory

• Porter-Lawler Theory

• Equity Theory

Needs-Goal Theory

• Motivation begins with individual feeling a need

• Need transforms into behavior that supports the goal of performance behavior

• Individuals who set goals have an easier time focusing on relevant activities

• Examples, Sports - Draft Picks, Changing Academic Majors, Internships

Goal-Setting Theory

Setting ambitious but attainable goals can motivate workers and improve the performance if the goals are accepted, accompanied by feedback, and facilitated

Vroom Expectancy Theory of Motivation

• A bit more sophisticated than Needs-Goal Theory

• Vroom is based on the premise that ‘felt needs’ drives human behavior

• Introduces Motivational Strength:

  • An individual’s desire to perform a behavior

  • Their motivation fluctuates as individual’s desire increases or decreases

• Formula:

• Motivation Strength = Perceived value of the result of performing behavior x Perceived probability that the result will materialize

Porter Lawler Theory of Motivation

• Comprehensive Theory - Builds upon Needs-Goal And Vroom

• Amount of effort is determined by value of rewards and the probability of reward being recieved

• Task accomplishment is determined by ability to do a task and perception of task required

• Value of reward is determined by intrinsic and extrinsic factors

• Perceived fairness of rewards influences amount of satisfaction produced by rewards

Intrinsic Rewards

Come from directly performing the task

Extrinsic Rewards

Extraneous to the task, compensation

Equity Theory of Motivation

• Employee’s perception and/or view of reality of their inputs in comparison to others in similar situation

• Inputs = what I put into my job

• Outputs = what I get from my job

• Employees will respond in different ways

• Perceptions of equity or inequity

  • Work Assignments, Promotions, Compensation, Rating Reports, Office Assignments

• All of these situations are emotionally charged as they relate to perceptions of self-worth

Content Theories of Motivation (Employee Internal Characteristics)

1. Maslow’s Hierarchy of Needs

2. Alderfer’s ERG Theory

3. Argyri’s Maturity-Immaturity Continuum

4. McClelland’s Acquired Needs Theory

Maslow’s Hierarchy - Management Perspective

• People have a range & hierarchy of needs which they seek to satisfy

• Higher level needs could only be met once the foundation ones have been satisfied

• Analogous to priority setting in the business world

• 

Alderfer’s ERG Theory of Motivation

• E = Existence Need

  • Need for physical well-being

• R = Relatedness Need

  • Need for satisfying interpersonal relationships

• G = Growth Need

  • Need for continuing personal growth and development

• Differs from Maslow’s in that the levels can be activated differentially at different times, depending upon the situation

• Example: work for income, though look elsewhere for fulfillment … community service

Argyris’s Maturity-Immaturity Continuum

• Human needs progress along a continuum focusing on the personal and natural development of people

• People naturally progress from immaturity to maturity … more awareness and control over their own destinies

Maturity-Immaturity Progression (Argyri’s Maturity-Immaturity Continuum)

• State of passivity - age related

• State of dependence - decreases generally

• Capable of behaving in many different ways - situational

• Deeper, more lasting interests - know what is more important

• Long-time perspective - knowledge to wisdom

• Control over self actions and reactions

Acquired Three Needs Theory - McClelland

Achievement - challenges, risks, responsibilities

• Has a strong need to set and accomplish challenging goals

Affiliation - Team centered management style

• Favors collaboration over competition

Power - Decision Making

• Wants to control and influence others

Suggests the dominant motivator depends upon life experiences and culture

Strategies for Motivating Employees (with the process and content theories as a backdrop)

1. Managerial Communications

2. Theory X & Theory Y

3. Effective Job Design

4. Monetary Incentives

5. Nonmonetary Incentives

Managerial Communications

• Most basic motivation strategy for managers

• Verbal, nonverbal, written … communicate often!

• Communicating is a basic tool for satisfying human needs of organization members

McGregor’s Factor X/Y Theory

Managers have 2 beliefs about employees:

1. Theory X - Majority of employees need to be closely managed as they generally dislike work

2. Theory Y - Majority of employees seek responsibility, do not need much supervision

• Can unlock value, strong performance

Importance of Job Design and Characteristics

Job Design = Design of organizational members’ roles

Four Elements - balance general vs. specialized roles

• Job Rotation - engagement, reduces absenteeism

• Job Enlargement - leverage, satisfaction

• Job Productivity and Enrichment

• Flextime/Flexibility

Herzberg’s Two-Factor Theory

1. Hygiene, Maintenance Factors - relate to workplace

• When these factors are undesirable, the individual becomes dissatisfied

• Examples: Supervision, Relationship with Peers, Salary

2. Motivating Factors - relate to the work itself

• When these factors are compelling, the individual is satisfied and motivated to perform tasks

• Examples: Opportunity for Recognition, Responsibility, Personal Growth

Fundamentally, a combination of the two factors both increase job satisfaction and enhance the job performance!

*All falls into point 3, Job Productivity and Enrichment

Flextime (Advantages vs. Disadvantages)

Advantages:

• Improved employee attitude and morale

• Accommodation of working parents

• Decreased Absenteeism (the practice of regularly staying away from work or school without good reason.)

Disadvantages:

• Leadership capable of adjusting?

• Difficulty in planning work schedules

• Collaboration - Spotaneously

Monetary Incentives (Extrinsic)

• Base Competition

• 401 (k)’s, ESOPs - Employee Stock Ownership Plans

• Profits Sharing & Bonuses

• Paid ‘Leaves’

Nonmonetary Incentives (Intrinsic)

• Promoting from within policy

• Emphasis on Quality

• Recognition!!

Autonomy

Freedom to make decisions, take ownership of work, fosters a sense of personal responsibility

the capacity to make informed, uncoerced decisions and act according to one's own values, rather than external control

Leaders

Those able to influence others and possess managerial authority and responsibility

The process of directing the behavior of others toward the accomplishment of an objective; getting things accomplished through people

Directing

Causing individuals to act in a certain way or to follow a particular course of action

Leadership vs. Managment

Leadership:

• Subset of management

• Emphasizes vision; relationships; strategy

• Cares about and focuses on people doing the job

Management:

• Organization processes; execution

• Emphasizes behavioral and nonbehavioral issues

• Makes sure the job gets done

Leaders focus on vision, innovation, and empowering people, while managers focus on processes, structure, and executing tasks

Social Influence Conecept

The leader’s ability to effect a change in the motivation, attitudes, and behaviors of others

Evolution (components) of leadership development:

Traits, behaviors, situational, transformative

Trait Theories of Leadership

Isolate characteristics that differentiate leaders from non-leaders

• Assumed leaders are born and not made (the great person theory of leadership)

• Described leaders based on a set of characteristics

Ohio State Behavioral Studies Highlights

• Structure Behavior

• Consideration Behavior

Structure Behavior (more task focused/job centered)

Extent to which a leader defines and structures his or her role and the roles of employees to attain goals

Consideration Behavior (More relationship focused/people)

Extent to which a leader has job relationships characterized by mutual trust, respect for employees’ ideas and regard for their feelings

Situational Theories of Leadership

Leadership success and effectiveness depends on a combination of

• SL = f(L,F,S): Leader, Follower; Situation

Life Cycle Theory Leadership

Leaders need to focus on the maturity and readiness of followers - be flexible

Leaders should adjust their leadership style in accordance with the readiness of their followers

Maturity

Ability of followers to perform their jobs independently, assume additional responsibilities, and desire to achieve success

Life Cycle Theory of Leadership
Leader Delegating

Low task, low relationship

• Push down decisions - more routine, repetitive jobs

Life Cycle Theory of Leadership
Leader Directive

High task, low relationship

• Needs to get done, more of an urgency

Fiedler’s Contingency Leadership Model

A bit more rigid and difficult to sustain proper match between the leader’s style of interacting with employees, the job at hand, and the leader’s degree of control over a situation

Change the organization situation to match the individual’s leadership style

• Change leader-member relations - align with like minded employees, same backgrounds

• Change leader to fit situation - (new dept. to be created existing dept. to be overhauled)

• Change leaders position power - established team? new hires? maybe even give a higher rank?

Leadership: Path Goal Theory

Leaders’ style is flexible, can change to adapt to a situation

1. Leader outlines goals for followers

2. Leaders clears path that followers should take

3. Followers achieve goals and earn rewards contingent on doing so

4. Two classes of situations: Environmental and Employee variables

Assumes leader’s style is flexible and can be changed to adapt to the situations at hand

Path Goal Theory: Four Primary Types of Behavior

1. Directive Behavior

2. Supportive Behavior

3. Participative Behavior

4. Achievement Behavior

Directive Behavior

Telling followers what to do and how to do it

Supportive Behavior

Being friendly with followers and showing interest in them as human beings

Participative Behavior

Seek suggestions from followers regarding business operations to the extent followers are involved in making important organizational decisions

Achievement Behavior

Setting challenging goals for followers to reach and expressing/demonstrating confidence they measure up to the challenge

Employee oriented behavioral leader

Interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences

Job centered behavioral leader

Technical or task aspects of a job, is concerned mainly with accomplishing tasks, and regards group members as means to accomplishing goals

Tannenbaum and Schmidt Leadership Continuum

• Continuum of Leadership that emphasizes decision-making processes, popular common refrenced

• Leaders and Managers are successful decision makers only if the method they use to make decisions appropriately reflects the leader, the follower, and the situation

• Depicts a range of how leaders make decisions

Boss-Centered Leadership

Use of authority by the manager

Subordinate-Centered Leadership

Area of freedom for subordinates

Tannenbaum and Schmidt Leadership Continuum; Three Primary Forces

1. Forces in Manager

2. Forces in Subordinates

3. Forces in Situations

Tannenbaum and Schmidt Leadership Continuum;
Forces in Manager

Values-Confidence in Subordinates- Personal Leadership Strengths - Tolerance for Ambiguity

Tannenbaum and Schmidt Leadership Continuum;
Forces in Subordinates

Need for Independence - Readiness - Interest - Knowledge - Experience - Expectations

Tannenbaum and Schmidt Leadership Continuum;
Forces in Situation

Organization Type - Group Effectiveness - Problem to Solve - Time Available

Laissez-Faire

Area of freedom for employees

Participative

A mix of Laissez-Faire and Autocratic

Autocratic

Use of authority by the manager

Transformational Leadership (Focus on outcomes and how you get there)

• Acting like a leader - integrity with authenticity

• Inspire organizational success by affecting follower’s beliefs

• Create vision - Build Commitment - Facilitate organizational change

• Know the people you are leading, coach and council them

• Stimulate action, make others think and take responsibility

• Inspire others to transcend their own interests for the benefit of the organization

Emotional Intelligence

• Ability to manage ourselves and our relationships effectively through awareness of and effective response to our emotions

Strong Leadership = IQ + EQ

IQ - Knowledge, competencies, technical skills

EQ - Social skills, engagement, relationship building

Servant Leadership (A term on Transformational Leadership)

Servant Leaders: Good listeners, persuasive, aware of their surroundings, empathetic, stewards, consultative coaches

• Places high value on service to others over self-interests

• Leader’s primary role is to help followers in quests to satisfy personal needs, aspirations, and interests

• Moral courage - strength to take actions consistent with moral beliefs

Defining DEI, Surface Level

• generally immutable

• almost immediately observable

• measured in simple and valid way

• Examples: Race, ethnicity, sex, age

Defining DEI, Deep Level

Subject to more interpretation

More mutable

Examples: attitudes, knowledge, value, skills

Diversity - Macro Level Factors

• Population is growing more slowly

• Workforce is getting older

• Growing presence/impact of women in the workforce

• Minorities will make up a larger share of new entrants, demographics changing

• Immigration is increasing in general population and the workforce

Reverse Mentoring

Pairing a senior employee with a junior employee to transfer new knowledge

Ethnocentrism

Belief one’s group, culture, country, and customs are far superior to those of other groups

Prejudice

Preconceived judgment, opinion about an issue, behavior, or group of people

Stereotype

Positive or negative assessment of a group or their perceived attributes

Discrimination

Unjust/inequitable treatment based upon stereotypes or prejudice

Tokenism

Definition: The superficial or symbolic effort to promote equality and inclusion by hiring or featuring a small number of people from underrepresented groups to avoid accusations of discrimination.

Unacceptable reference to one of the few members of a group within an organization

Strategies for Promoting Diversity in Organizations

1. Hudson Institute Strategies

2. Equal Employment and Affirmative Action

3. Diversity Through Organizational Commitment

4. Promoting Diversity Through Pluralism

Hudson Institute Strategies (“think tank” take actions on)

The Hudson Institute is a prominent Washington, D.C.-based right-of-center think tank established in 1961, known for promoting American leadership, global security, and free-market economics. It focuses on interdisciplinary studies, particularly in defense, international relations, technology, and energy.

• Reconcile the conflicting needs of women, work, and families, for equitable distributions

• Erase the biases for a broader skilled and engaged workforce

• Improve the education and skill of all workers, invest in greatest asset; HUMAN CAPITAL

Equal Employment Opportunity Commission (EEOC)

A federal agency that enforces laws prohibiting workplace discrimination, harassment, and retaliation based on race, color, religion, sex (including pregnancy and LGBTQ+ status), national origin, age (40+), disability, or genetic information

Affirmative Action (Positive Action)

Eliminate barriers and increase opportunities for underutilized and/or disadvantaged individuals

Reverse Discrimination

the alleged unfair treatment of members of a dominant or majority group (e.g., race, gender, age) in favor of historically disadvantaged minorities

Promoting Diversity in Organizational Commitment

Commitment to Diversity (continuum), a framework for organizations and managers

from

Broad based diversity programs and efforts

to

no diversity programs and efforts

Promoting Diversity Through Pluralism

Pluralism: Managers strive to create an environment where differences are acknowledged, accepted, and contributed

ChatGPT: an active, positive engagement with diversity rather than mere tolerance, where distinct religious, ethnic, or social groups coexist, interact, and contribute to a shared society

Five major categories and strategies to achieve pluralism

1. Golden Rule Approach

2. Assimilation Approach

3. Righting the Wrongs Approach

4. Culture-Specific Approach

5. Multicultural Approach

Golden Rule Approach

Be sure to understand others frame of reference … empathy!

Assimilation Approach

avoid! involves exerting undo pressure

Righting the Wrongs Approach

embrace policies to create a more equitable set of conditions

Culture-Specific Approach

Train on norms and practices of another culture (Example: cultural immersion training in multinational corporations)

Multicultural Approach

Build into the fabric of the organization!

Managing a Diverse Workforce; Donaldson/Scannell Four Stage Model

Stage 1: Unconscious Incompetence - managers unaware, development required

Stage 2: Conscious Incompetence - on the learning curve

Stage 3: Consciously Competent - much more deliberate and engaged

Stage 4: Unconscious Competence - most effective, part of a managers engagement style

Corporate Social Responsibility Skill

Ability to take action that protects & improves both the welfare of society and the interests of the organization

Environmental Protection Agency

Formulates and enforces environmental standards in such areas as water, air, and noise pollution

Consumer Product Safety Commission

Strives to reduce consumer misunderstanding of manufacturer’s product design, labeling, and so on, by promoting clarity of these messages

Occupational Safety and Health Administration

Regulates safety and health conditions in nongovernment workplaces

Approaching to Meeting Social Responsibilites
Continuum of managerial studies

1. Requirement: Firm only does what is required by law … the must do’s …

2. Recognition: Firm has obligations to pursue both profit and social goals

3. Believing: Firm has both profit and social goals

Management: The Philanthropy Challenge

Promote welfare of others through general monetary donations to social causes

• Aim to increase the well-being of people and society

• Managers should donate to causes that in some way benefit both the organization and the society

Sustainability

Degree to which a person or entity can meet its present needs without compromising the ability of others to meet their needs

Examples: conservating natural resources, reducing waste, recycling, environment/climate, carbon credits

Sustainable Organization

An organization that can meet their present needs without compromising future generation’s ability to meet theirs

The Triple Bottom Line

Management should work toward making their organizations sustainable in three areas: economy, environment, and society

• People, Profit, Planet

Why companies should purse Sustainability?

Three reasons why managers should build sustainable organizations

1. Increased Profits

2. Increased Productivity and Engagement

3. Increased innovation

Other Considerations: Talent Attraction and Retention; Stakeholder Management

Ethical Management

• The capacity to reflect on values in the corporate decision-making process

• To determine how these values and decisions affect various stakeholder groups

• Establish and reinforce how to use ethics in daily operations

Value

Heart of any organization; what is considered important for or against something

Values Statement

Formal document that summarizes the primary values within the culture of an organization

Norms

appropriate attitudes and behaviors in day-to-day work and interactions