Motivational and modern management theories

Management

1. Miss Purnima Sahoo Asst Professor Kalinga Institute of Nursing Sciences KIIT Deemed to be University

2. MOTIVATIONAL AND MODERN MANAGEMENT THEORIES

3. MOTIVATION Motivation is a psychological feature that induces an individual to act towards desired goal. It is the process that account for an individual’s intensity, direction, and persistence of effort towards attaining a goal.

4. TYPES OF MOTIVATION Extrinsic Motivation . Salary. Bonuses/Perks. Organized activities. Promotion/Grades. Punishment/Layoffs Intrinsic Motivation: Learning and Growth opportunity. Social contact and status. Curiosity Respect and Honour .

5. THEORIES OF MOTIVATION CONTENT THEORIES The content theories find the answer to what motivates an individual and is concerned with individual needs and wants . Following theorists have given their theories of motivation in content prospective. 1 .Maslow – Hierarchy Of Needs 2.Herzberg’s Motivation-hygiene Theory 3.Mcclelland’s Needs Theory 4.Alderfer’s ERG Theory 5. Douglas McGregor PROCESSES THEORIES The process theories deal with “ HOW” the motivation occurs,I .e .the process of motivation and following theories were given in the context 1.Vroom’s Expectancy Theory 2.Adam’s Equity Theory 3.Goal Setting Theory 4.Reinforcement Theory

6. Physiological Needs Physiological needs are those required to sustain life, such as: Air Water Food Sleep

7. Safety Needs Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by: Living in a safe area Medical Facilities Job security Law and Order

8. Social Needs Once a person has met the lower level physiological and safety needs, higher level needs awaken. The first level of higher level needs are social needs. Social needs are those related to interaction with others and may include: Friendship Belonging to a group Giving and receiving love

9. Esteem Needs Esteem needs may be classified as internal or external. Internal esteem needs are those related to self-esteem such as self respect and achievement External esteem needs are those such as social status and recognition. Some esteem needs are: Self-respect Achievement Attention Recognition Reputation

10. Self-Actualization Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest of reaching one's full potential as a person. Self-actualized people tend to have needs such as: Peace Truth & Justice Knowledge Meaning of life

11. Limitations of Maslow’s Theory Research have established the motivational forces for physiological, safety, love and esteem needs but have failed to discover a hierarchical arrangement. For example, even if safety need is not satisfied the social need may emerge. The level of motivation may be permanently lower for some people. For example, a person suffering from chronic unemployment may remain satisfied for the rest of his life if only he gets enough food.

12. Herzberg’s Motivation-Hygiene Theory

13. Hygiene Factors : Herzberg identified ten maintenance or hygiene factors, that are not intrinsic parts of a job, but are related to the conditions in which the job has to be performed. These are c ompany policy and administration, technical supervision , job security, working conditions, interpersonal relationship with peers , subordinates and supervisors, salary, job security, personal life , etc. Motivational factors : These factors have a positive effect on the functioning of the employees in the organization. There are six factors that motivate employees: Achievement, Recognition, Advancement, Work-itself, Possibility of growth and Responsibility . An increase in these factors satisfies the employees and the decrease in these will not affect the level of satisfaction. Thus, Herzberg’s Motivation-Hygiene Theory studied the variables which were responsible for the level of satisfaction and had been applied in the industry that has given several new insights.

14. Herzberg's Motivation-Hygiene Theory Factors for Dissatisfaction Company Policies Supervision Relationship with Supervisor and Peers Work conditions Salary/Perks Status Security

15. Herzberg's Motivation-Hygiene Theory Factors for Satisfaction Growth opportunity The work itself Achievement Responsibility Recognition Advancement

16. Limitation of Herzberg's Theory The Two Factor Theory assumes that happy employees produce more. Satisfied workers may not actually be more motivated or more productive than dissatisfied workers. Herzberg's theory is that people differ in their responses to hygiene and motivating factors. Herzberg's theory does not account for these individual differences. What motivates one individual might be a de-motivator for another individual.

17. Maslow’s vs Herzberg's Theory

18. M c Cle l l and’ s N e ed s T h eory proposed by a psychologist David McClelland, who believed that the specific needs of the individual are acquired over a period of time and gets molded with one’s experience of the life. McClelland’s Needs Theory is sometimes referred to as Three .

19. Need for Power (n-pow ): Power is the ability to induce or influence the behavior of others. The people with high power needs seek high-level positions in the organization, so as to exercise influence and control over others. Generally, outspoken, forceful, demanding, practical/realistic-not sentimental, and like to get involved in the conversations. Need for Affiliation (n- affil ): People with high need for affiliation derives pleasure from being loved by all and tend to avoid the pain of being rejected. Since, the human beings are social animals, they like to interact and be with others where they feel, people accept them. Thus, people with these needs like to maintain the pleasant social relationships, enjoy the sense of intimacy and like to help and console others at the time of trouble. Need for Achievement (n-ach): McClelland found that some people have an intense desire to achieve. He has identified the following characteristics of high achievers:

20. High achievers take the moderate risks, i.e. a calculated risk while performing. High achievers seek to obtain the immediate feedback for the work done by them, so as to know their progress towards the goal. Hence, McClelland’s Needs Theory said that the person’s level of effectiveness and motivation is greatly influenced by these three basic needs.

21. Alderfer’s ERG Theory Alderfer’s ERG Theory is the extension of Maslow’s Needs Hierarchy, wherein the Maslow’s five needs are categorized into three categories, Viz. Existence Needs, Relatedness Needs, and Growth Needs. An American psychologist Clayton Paul Alderfer had proposed this theory and believed that each need carries some value and hence can be classified as lower-order needs and higher-order needs. He also found some level of overlapping in the physiological, security and social needs along with an invisible line of demarcation between the social, esteem and self- actualization needs. This led to the formation Alderfer’s ERG theory, which comprises of the condensed form of Maslow’s needs. Existence Needs: The existence needs comprises of all those needs that relate to the physiological and safety aspects of human beings and are a prerequisite for the survival.

22. Thus, both the physiological and safety needs of Maslow are grouped into one category because of their same nature and a similar impact on the behavior of an individual. Relatedness Needs : The relatedness needs refer to the social needs, that an individual seeks to establish relationships with those for whom he cares. These needs cover the Maslow’s social needs and a part of esteem needs, derived from the relationship with other people. Growth Needs: The growth needs cover Maslow’s self-actualization needs as well as a part of esteem needs which are internal to the individual, such as a feeling of being unique, personnel growth, etc. Thus, growth needs are those needs that influence an individual to explore his maximum potential in the existing environment.

23. Douglas McGregor Theory x and y Theory X assumes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management . According to this view, management must actively intervene to get things done. It summaries that workers need to be constantly watched and instructed what to do.

24. CHARACTERSTICS Intolerant Distant and detached short temper Issues instructions, directions Issues threats to make people follow instructions Demands Does not participate Does not team-build unconcerned about staff welfare, or morale proud, sometimes to the point of destruction one-way communicator Poor listener

25. THEORY Y Theory Y shows a participation style of management that is decentralized. It assumes that employees are happy to work, self motivated, creative and enjoy working with greater responsibility. It emphasizes that staff are self-disciplined and would like to do the job themselves

26. CHARACERSTICS Take responsibility and are motivated to fulfill the goals they are given. Consider work as a natural part of life and solve work problems imaginatively. Assumes that people seek fulfilment through work and are willing to work hard. In Y-Type organizations, people at lower levels of the organization are involved in decision making.

27. COMPARISON

28. Process Theories: Vroom’s Expectancy Theory States that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Key to the theory is understanding and managing employee goals and the linkages among and between effort, performance and rewards. Effort: employee abilities and training/development Performance: valid appraisal systems Rewards (goals): understanding employee needs

29. Equity Theory. People value fair treatment. The structure of equity in the workplace is based on the ratio of inputs to outcomes.

30. Goal Setting Theory Goal setting involves establishing SMART goals. People are aware of what is expected from them. On a personal level, setting goals helps people work towards their own objectives. Goals are a form of motivation that sets the standard for self-satisfaction with performance. It is considered an “open” theory, so as new discoveries are made it is modified.

31. MODERN THROEY OF MANAGEMENT

32. CHARASTICS OF MODERN MANAGEMENT THEORY MULTIMOTIVATED AND MULTIDISCIPLINARY OPEN SYSTEM VIEW MULTILEVEL AND MULTI DIMENSIONAL DYNAMIC AND ADAPTIVE

33. SYSTEMS THEORY Several management theories have evolved over a period of time •systems theory is one of the important theories in management •The presentation offers an understanding of the systems theory as it relates to management. System theory provides approach to understanding, analyzing and thinking about organizations • systems theory views an organization as an organism made up of numerous parts (subsystems) that must work together in harmony for the larger system . •departments, work groups, business units, facilities and individual employees can all be viewed as subsystems of the organizations

34. INPUT Man Money Materia l PROCESSING Transformation of input Activity operations OUTPUTS Services Goals profits FEED BACK

35. CHARACTERISTICS Communication mechanisms must be in place for organizational systems to exchange relevant information with its environment •Provides for the flow of information among the subsystems Systems, subsystems and supersystem •Systems: set interrelated parts that turn inputs into outputs through processing •Subsystems: do the processing •Super systems: are other systems in the environment that the system is.

36. TYPES OF A SYSTEM OPEN SYSTEM • Continuously interacts with the environment • There is exchange of materials, energies and information with the environment CLOSED SYSTEM • Theoretical systems that do not interact with the environment • Not influenced by surrounding.

37. STRENGTHS OF SYSTEMS THEORY Deals with complexity •Takes a holistic view •Can easily manage change through interaction with the environment • Utilises feedback – easy to improve • Recognises importance of supersystems

38. LIMITATIONS OF SYSTEMS THEORY Does not specify tools and techniques for practicing managers Too abstract – difficult to apply in practical problems Does not adequately address power and social inequalities and their causes.

39. Relevance and usefulness of system theory A manager operates with a view to complete all tasks which would give relevant results to the organization He thinks before he acts, evaluates works before and after implementation. It makes a good balance between various parts of organization and goals.

40. CONTINGENCY THEORY In the mid-1960s,the contingency view of management approach emerged. This view emphasized the relationship between organization processes and the characteristics of the situation. It calls for fitting the structure of the organization to various possible or chance events. It questions the use of universal management practices and advocate using traditional ,behavioral and system viewpoints independently . The contingency approach assumes that managerial behavioral is dependent on a wide variety of elements .Thus it provides a framework for integrating the knowledge of management thought.

41. IMPORTANT ELEMENTS OF CONTIGENCY THEORY Effective management varies with the organization and its environment. Spells out the relationship of organization to its environment clearly. Each organization is unique It is more pragmatic and action oriented It tries to identify nature of interdependent between various parts of organization and their impact on various things. A manager is someone skilled in knowing how to analyze and improve the ability of an organization to survive and grow in a complex and changing world .

42. Management system INTERNAL ENVIORNMENT The first level of management system involves the organizations internal environment ,that takes input (Labor Money Materials equipment)from external environment ( I,e outside the world) convert them to useful products ,goods and services and make them available to customers as outputs. EXTERNAL ENVIORNMENT The second level of management consist of all the outside the institutions and forces that have an actual or potential interest on the organizational ability to achieve its objectives. Environmental forces create challenges and opportunities for the organization. manager must react and adopt to changes in internal and external environment.