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Motivation Theories

Safe Shaikh — Fri, 20 Mar 2009 00:55:28 +0000

Ever since the beginning of time, all the people have been motivated succeed, motivated to conquer, and motivated to be the best. However, what is this we call motivation? “Motivation refers to forces within an individual that account for level, direction, and persistence of effort expended at work (Page 120).” In other word, Motivation is the energizing and directing of behavior.
The success of any organization depends on the ability of managers to provide a motivating environment for its employees. Motivated employees are more productive, happier, and stay with the organization longer. One of the main tasks a manager faces is to find out what motivates their staff. By understanding employee needs, managers can understand what rewards to use to motivate them. To understand what motivation is and difference between various motivations theories, we will look at different theories concerning our motivated behavior.
Abraham Maslow’s theory called hierarchy of needs theory. Maslow believed that within every individual, there exists a hierarchy of five needs and that each level of need must be satisfied before an individual pursues the next higher level of need. As the individual progresses through the levels of needs, the preceding needs lose their motivational value. There are five levels of needs, according to Maslow: 1. Physiological Needs. These needs include food, water, and sex, which are essential for us to survive. If these needs are not met, then all other needs will not be a source of motivation. 2. Safety Needs. This refers to the need to feel safe from physical and emotional harm. 3. Social Needs. These needs are concerned with social interactions with others. The individual needs to feel a sense of belonging, affection, acceptance, and friendship. 4. Esteem Needs. Esteem is concerned with the feelings of self-confidence derived from achieving something, and the recognition and prestige that comes with that achievement. 5. Self-Actualization Needs. This level of needs is concerned with achieving ones full potential and dreams. Maslow’s hierarchy of needs theory is too simple. Humans are very complex with needs that overlap each other at different times. In other words, even if a level of need has been met in the past, this does not mean that this same level of need will not again become a source of motivation in a different situation.
The Equity Theory by J. Stacy Adams is based on the social comparisons that exist when people gauge the fairness of their work outcomes relative to the efforts of their coworkers. Adams states in his theory that the perceived inequity from the comparison becomes a motivating state of mind. When a worker feels that the compensation he is receiving for his work contributions is not equal to the compensation received by fellow workers for the same work, the perception of inequity exist. This type of inequity is classified as felt negative inequity. Felt positive inequity exist when the worker feels he or she is receiving more compensation than his fellow workers for the same work contribution. When the worker feels a positive inequity, he would tend to increase the quality or quantity of his work. When the worker feels a negative inequity, the quality or quantity of work would decrease. Adams claims in his theory that when such an inequity is perceived, the worker in question will be motivated to act in ways that will help him restore his sense of felt equity. The ways in which the worker can attempt to restore his sense of equity are by giving less effort, asking for a raise, quitting, or convincing his or her self that the perceived inequity is only temporary.
Victor Vroom’s expectancy theory states that in order for a person to be motivated he or she must believe that an action must have acceptable results, those results are going to be rewarded, and the rewards are highly positive. Much of expectancy theory is based on probabilities. If a person believes that a task or level of performance is absolutely impossible then expectancy would equal zero, however if a person believes that a task or level of performance is 100 percent attainable then expectancy equals one. Instrumentality, or “the probability that performance will lead to various work outcomes,” (Schermerhorn, Hunt, and Osborn, 2005) can be measured from zero to one, as well. Valence, which is the value that is attributed to various work outcomes, can be measured from negative one, very undesirable, to positive one, very desirable.
All of these values are directly related to motivation and as they change and vary the level of motivation an individual experiences. As the level of valence, instrumentality, or expectancy approaches zero the desire to perform decreases. The theory allows for rewards and performances to show being linked in different ways and may cause different reactions in different cultures. A pay increase could motivate a person to work harder and longer, or could have the adverse effect in allowing an individual to work fewer hours for the same pay rate. Careful monitoring of these levels is required to ensure that maximum performance can be achieved and the desired outcome is attained.
The valence of expectancy theory can be broken into two reward sections. The first, extrinsic rewards deal with positively valued rewards from an external source or person. Examples of these include pay raises, gift cards, being allowed to leave work early or come in late, and promotions. The second, intrinsic rewards, are positively valued work outcomes that are results of performance. Feelings of achievement and pride would be good examples of intrinsic rewards. There is no way to accurately define which of these may work best for any particular task, and managers need to take into account a worker’s needs or wants when planning a reward program. In some cases a bonus plan may work best with one employee, but it may best to let another make a presentation on a completed project.
Fredrick Herzburg developed theory of motivation called the two-factor theory. Herzburg’s findings suggest there are two factors that contribute to employee satisfaction and dissatisfaction. The first is referred to as motivators, which includes responsibility, advancement, and recognition. The other is known as hygiene factors. These factors include the work environment, management, salaries, and company policies. Unsatisfactory hygiene factors can act as de-motivators, but if satisfactory, their motivational affect is limited without motivators
The two-factor theory is what Frederick Herzberg argues, the primary causes of job satisfaction and job dissatisfaction. “He wants workers to report the times they felt exceptionally good about their jobs and the times they felt exceptionally bad about them.” (UOP, Chapter 6)
From the study that was done they developed the two-factor theory, also known as the motivator-hygiene theory. He wants to know the satisfaction and dissatisfaction the workers have. For example, some hygiene factors that affect job dissatisfaction is organization policies, working conditions and relationships with peers. Some hygiene factors that affect job satisfaction is, achievement, recognition and advancement.
Clayton Paul Alderfer is an American Psychologist who further expanded Maslow’s hierarchy of needs by categorizing the hierarchy into his ERG theory of existence, relatedness and growth needs. (Wikipedia, 2006). Existence needs are the desire for physiological and material well being, such as hunger, thirst and sex. Relatedness needs are social and external esteem such as involvement with family, friends, coworkers and employers. Growth needs are internal actualization and self-esteem such as the desire to be creative, productive and to complete meaningful tasks.
Alderfer’s ERG theory does not require completion of one stage of motivation prior to moving to the next stage as in Maslow’s theory. Alderfer emphasizes satisfaction and progression along with frustration and regression components. When an individual is satisfied at one level such as the relatedness needs, he or she can then work towards the next level of growth needs. When needs in a higher category are not met or the individual becomes frustrated with his or her attempts to reach the next level, then individuals redouble the efforts invested in a lower category need. Finally, unlike Maslow’s hierarchy theory, Alderfer contends that more than one need may be activated at same time.
Aldefer’s ERG theory would be best suited for an organization employing sales, production, and administrative groups. Under this theory, manager has to recognize that employees have multiple needs that must be satisfied simultaneously. The hierarchical aspect of the ERG theory is not as rigid as the above described theories. Furthermore, ERG theory has three levels of needs which are independent of the each others, whereas Maslow’s theory consists of five levels of needs which must be followed in ascending order.
What motivates people all depends upon their perception of attraction to a goal. The theories mentioned above are but a few of the many theories that exist. Regardless of which theory is followed, it is important to remember that the key to motivating employees is to know and understand what motivators are available and how to apply them to obtain the best results.

Reference
Wikipedia (2006). Retrieved August 28, 2006 from http://en.wikipedia.org/wiki/Clayton_Alderfer
Schermerhorn, J., Osborn, R. and Hunt, J. Organizational Behavior, 9th edition. Chapter 6: Motivation Theories. John Wiley & Sons, Inc. 2005.

Organizing Functions of Management

Safe Shaikh — Fri, 20 Mar 2009 00:47:54 +0000

In today’s business world, due to very competitive market and constantly changing environment, Management function of business is extremely crucial to business survival. These days managers are facing great challenge due to constant changes in technology, economy, and government laws. In order to be successful manager, they must be very organized.
Organizing is one of the functions of management. Author defines organize as “assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals” (Page 15). In other word, organizing is simply gathering all information and planning necessary action to achieve goal. Organizing is very important. Organizing allows individuals to be more efficient and manage time wisely. Organized manager have clear view of scheduled event and therefore they are able to make proper decision. My department is very organized. We have process and procedure in place for each activity. We have tasked assigned to each of us. We all have specific duties which we are responsible for. This helps everyone communicate easily with one another.
Traditional view of organizing was to create an organizational chart and manage all departments. The new view of the organizing is not only to develop organizational chart but also to view the employee as added value, as the employee will build the flexible, adaptive and responsive organization. For Example, many companies are investing heavily on training for all their employees rather than just managerial position. Since, corporate Enron sandal, ethic has been the hot topic. All complies are investing in their employees by sending them to ethic classes. Leadership is also one of the growing tread where many companies are sending all its employees to the leadership training. The whole purpose of these training to increase the knowledge of employees, in return employee will create the dynamic organization.
Organizing at ABB in done very uniquely compared to many other companies. ABB was formed with merger of two European companies. Asea was founded in 1890. Brown Boveri which was founded in 1891. In 1987 both of these companies merged resulting in creation of ABB. The creation of ABB was unique as the reconstruction and organizing of the company globally was a great challenge. Today ABB generate revenue of more than 30 billion dollars and employs over 260,000 people around the world. Current organizing structure of ABB is complex yet very effective. Similar to most companies, at the top sit CEO followed by twelve executive boards of directors. Reporting to these twelve executive boards are about 60 business areas (BAs). BAs are grouped in to eight business segments where each segments consist of BAs anywhere from five to ten BAs. Each of these BAs have a leader who leads their organization to success. This might sound complicated perhaps from where CEO sits. However, where the real work gets done, all of the operations work closely with stand alone operations. All managers have clear defined sets of responsibilities, and accountability. There has been a lot of coordination and ongoing improvement for ABB to stand where it is now. Organizing the physical structure and thousands of employees around the world has proven to be great challenge and ABB has done well.
When it comes to organizing any strategy such as hiring, marketing, logistics, and operation, ABB has to consider many aspects of the global market. These include political, religious, cultural, and economic factors for the given targeted region.. To achieve the goal of the corporation, the chief executive officer along with thirteen executive board members may set the goals for the corporation, but the head of each BA must ensure that the goals are carried out properly. Individual plans for each BA must also be well organized so that the planning can be properly implemented. Proper implementation of any plan can only be achieved by the delegation of authority and a trusted staff of well educated, highly motivated employees. Any corporation that is represented and sold in more than 180 countries around the world has to think, plan, organize, and implement strategies to achieve global success. In other words, ABB must think and act like a global while remaining local at same time respect the cultural, political, and religious views of the country that they are selling products in. Failing to organize properly, ABB could loose it market share forever, as well as losing jobs for thousands of people.
Organizing in human resource (HR) is also quite unique as the ABB employs about 100,000 people around the world. Human resource manager must not only act global but local as well. HR manager must utilize organize function of the management to keep up with constant changing industry. Similar to demand for product, there is also demand for highly technical people. For that very reason, HR manager at ABB uses well organized plan.
Organizing in terms of finance is concerned, ABB has well organized its process and procedure to insure all the controls are in place to protect it assets financially. As I like to call it “A Big Bank” when referring to ABB. Lets face it, as the company gets bigger, more risk needs to be evaluated and to insure that company does not end up closing its chapters because it was not organized well enough to support its operation financially. As I mentioned before, ABB generate more than 30 billion in revenue annually. For this very reason, having organized planed for handing finance is important.
In past, large corporation had more advantage over the small firm. Today, small size corporation have advantage as they are able to react quickly to customers demand due to simplicity of organization structure. For these very reason, large corporation have to take organizing function of management serious. Large firm should organize not only their physical asset but aloes organize in terms of employees, finance, and technology.
In Conclusion, ABB has become a world leader in various industries by effectively utilizing globalization, diversification, innovation and most important organizing in respect to function of management. ABB will continue to grow. In respect to ABB’s success, its manager must be organized. Organizing can be done easily by reviewing plan than coordinating all information in way to complete task successfully. Organizing is one of the few qualities of leader. To lead manager must organize and lead the staff in way that will shape the future on their organization. Without these great leader, ABB would not be where it is today.

References
T.S. Bateman, S.A. Snell (2007). Management: The New Competitive Landscape (7th ed.). New York: McGraw-Hill/Irwin.
The ABB Inc (2006). Retrieved July 23rd, 2006 from http://www.abb.com

Management Planning and Ethics

Safe Shaikh — Fri, 20 Mar 2009 00:46:34 +0000

In today’s business world, management function of business is extremely important to business survival. These days, managers are facing great challenge due to constant changes in technology, economy, and government laws. Further more, they must take legal issues, ethics, and corporate social responsibility in to consideration during planning stage of management.
Planning is one of the functions of management. Planning is taking appropriate actions to achieve goals. The whole concept behind the planning is to take action or rather scheduling proper actions in order to achieve specific goals and there by completing tasks. Planning can be shot term or long term. Planning involves reviewing past situation, forecasting future situation base anticipation and than planning current events. These days, due to competitive and constant changing business market, planning is crucial to business. In my opinion, managers without plan are similar to mechanics with out tools. There is no way manager will be able to succeed without proper plan. At ABB we have many managers from low end to executive. Decisions made by all have huge impact on how company performs. ABB is in over 180 countries with thousands of employees all through out the world. ABB has done well establishing itself globally. With that in mind, legal issues, ethics, and corporate social responsibility also impact how planning function of management is performed.
Business ethics defines how a company integrates a core values such as honesty, trust and fairness into policies, practices, process and procedure. Businesses also have many on going trainings for their employees to ensure all employees are following policies and procedures. Some time even good managers commit unethical act because they do not carefully think through. All companies have policies that are supposed to help managers make right decision. Even than sometime manager gives in to what they perceive to be the pressure For example, when boss tells them “Achieve specific sale, period,” In my opinion, those manger will do every thing they can to achieve specific sale, even if they have to break their own beliefs. This action is not acceptable. These actions are unethical. It is manager’s obligation to do what is right, just and fair.
Since Enron corporate scandal, the ethic in business world has taken more attention. All businesses are reviewing their process, procedure, and ethical policies to ensure all employees are making right decisions. Companies are paying more attention to their actions. They are also performing internal audits to insure managers are not taking any unethical action. Many big companies such as ABB, IBM, and GM Motor are hiring auditor from outside addition to its internal audits. This allows them monitor activities effectively and to ensure business is operating to its policies.
Sarbanes Oxley act has also been implemented. This ate is in place in United State where all business are required to review all there process and procedure to insure that they are in compliance with Sarbanes Oxley act. Due to this Sarbanes Oxley Act, ABB had SOX plan implemented where all departments, such was operation, purchasing, sales, human resource, receiving and legal, were required to go though their own departmental process and procedure. Once the process and procedure were reviewed, a process flow map was to be created and insure proper controls were in place and also to make sure that ABB is in compliance with SOX. I remember those weeks where I spent many hours creating process flowchart for my department. My responsibility was to insure purchasing portion of the SOX plan was completed successfully. I mentioned earlier, each department had to go through their process. To get understanding as to how be these tasks were, my department alone which is Supply Chain Management, had eight flowcharts for different activities and it took about six weeks to complete. Other departments such as operation, is way bigger than supply chain, creating process map could such size department could create some headache.
ABB also has ethic code policies which set some legal standards and provide guidance for internal rules and regulation. ABB is constantly utilizing its global present and effectively using its resources around the world for support in developing and strengthening its ethics programs. Many successful companies such as ABB have built ethical values and goals into their mission and vision statements. This helps managers and employees understand that values and ethical standards are important to company’s day to day operation and management planning.
Legal standard covers almost all aspect of company’s operation. Companies have strict guidelines for how all employees should comply with all legal standards. In United States, all companies must compile with U.S. laws. If for some reason, employee does not follow the laws than Federal Sentencing Guidelines is used to influence how U.S. laws should respond to misconduct of such employees.
Corporate Social Responsibility is additional corporate role beyond making money. It includes legal, ethical, and voluntary responsibilities. Legal responsibility of business is to obey local, federal, and international law. Ethical responsibility of business is to do what is right, just, and fair. Voluntary responsibility of business is to participate and support community. Basically, Managers should consider human needs in their business world in same way they consider business needs in economy. ABB worldwide has made all its facility ISO certified to take it’s social responsibility toward the environment.
Many people believes that big company should do more than just gives community money to solve social problems. They think that big company should get involve, participate in social problems, and perhaps even help solve those problems. In my opinion, I also believe that companies should participate in community and take social responsibility. I also feel that, its not just responsibility of company but all people as well. Let face it, all people uses resources from around the world so why not take care of planet and the environment by taking social responsibility as employee of the company as well as on personal level.
In conclusion, the legal, ethical, & social responsibility, which I described are very important part of management’s responsibility. There is an also constant change in technology, economy, and government laws. Therefore, managers must make right, just and fair decision when planning.

References
T.S. Bateman, S.A. Snell (2007). Management: The New Competitive Landscape (7th ed.). New York: McGraw-Hill/Irwin.
The ASEA Brown Boveri (2006). Retrieved July 15th, 2006 from the World Wide Web: http://www.abb.com
Press release from ABB Ltd. (2005) Retrieved July 14, 2006 from the World Wide Web: http://www.csrwire.com/article.cgi1333.html

Delegation

Safe Shaikh — Fri, 20 Mar 2009 00:44:31 +0000

The traditional role of the manager has always been plan, organize, lead and control. While these activities have there own place, some manager forget the most important aspect of their role which is to delegate. Delegation is effectively utilizing others to complete work. In other word, delegating work to others so that manager can free up their time to work on important things such as setting goals, and improving team efficiency, or process and procedures. Managers can accomplish much more by having others do some (or even most) of the tasks they are now doing themselves.
Mangers can not carry the load of entire team. Mangers can not be responsible for entire team’s workload. As result, manager delegate. Delegation is simply assigning work that fall under employee’s job descriptions. However, effective delegation is to give employee the responsibility and power to complete the tasks which is normally part of manager’s job. Effective delegation can be done in many ways.
Effective delegation takes some efforts. Manager must first, examine the motive. They must ask themselves, why delegate? They must be certain that they are not just passing the work along. There goal should be to teach, couch, mentor and inspire the staff, not delegate work and boss staff around. Second step for effective delegation is to define the tasks. Managers must be able to understand and describe the purpose of the tasks. This allow them efficiently select right person for that task. Once the full scope of tasks are understood than, its time to move on to step three which is to select the right person to assign the task. Person of the choice should be the best person to perform the tasks. When assigning the tasks, manager should have a clear communication so that there is no misunderstanding. Manger should also explain in detail what the expectation are as well was how to complete the given task. Manager needs to somehow motivate employee positively so that employee does not feel as being bossed around. Deadline should be properly set. Best way to do so is to have the employee select there own dates so that they feel important and will pay better attention to given tasks. Final step of effective delegation is to follow up. This final step is crucial. Manager must follow up with employee in timely manner. When the work assigned is completed manager should thank that employee and should appreciate the work done and give the proper credit due or perhaps reward them for job well done. When the work is not done correctly than manager should speak to employee in private and teach, couch and get the employees proper training so the work is done correctly the next time.
A good boss sometime stimulates creativity and determination simply by providing challenges. While some boss insist on knowing everything and checking everything prior to its completion. As a result, the employee’s moral deteriorate. This leads to failure in creativity and determination. ABB has many managers, all with there unique management skill. My boss in particular utilizes delegation. Some time its effective and some time its not. I also work is many project managers, some are very good at what they do and some aren’t. While some delegate effectively, others dictate. For example, one of my project manager name is Mike Sanderbeck. I think of him as a very good manager. He knows how to delegate well. He motivates positively and lifts the overall moral of the staff. He also communicates very clearly, and he is always there to support, couch, and train. He also follows up and appreciates the job well done by taking out staff for lunch, and some time awards gift certificates. I think he leads the team well which makes him a good leader.
Some managers see delegation as reducing their workload and bossing people around. While other delegate effectively and becomes a leader. Manager should be good leader. They should always be there to support there team when needed. They should be the one who are looked up on and followed by example. Along with many functions of management, they should effectively utilize delegation. Organization depends on their leaders to set direction and obviously to lead. Those leaders whose time is consumed by day to day work has no time for important factor of their job. So leader needs to delegate and pass some portion of there responsibilities to others. As result, there time becomes free to work on important factor of there job which is to set direction, goals and be the leader.
Effective delegation not only benefits the managers but also the staff and organization. Delegation is the key to efficiency. Effective delegation can also increase moral, build confidence and even relieve some stress. Manager should have confidence in there staff. In return, the staff will become more confident and loyal to managers. Manager have to learn to cut loose, coach, encourage, mentor, critique, recognize and even reward the staff. If the manager wants to succeed, grow the business, and have fun at the same time then they must learn to effectively delegate along with other basic function of managements.

References
T.S. Bateman, S.A. Snell (2007). Management: The New Competitive Landscape (7th ed.). New York: McGraw-Hill/Irwin.

Four Functions of Management

Safe Shaikh — Fri, 20 Mar 2009 00:43:23 +0000

In today’s business world, due to very competitive market, Management function of business is extremely crucial to business survival. These days managers are facing great challenge due to constant changes in technology, economy, and government laws. In order to be successful manager, they must follow four basic functions which are plan, organize, lead and control. My purpose of this paper is to simply define and explain each of these functions and how they are related in my organization. As I read the chapter one, I notice that ASEA Brown Boveri (ABB) was mentioned in couple of section, knowledge of management and globalization. I was glad to see ABB in textbook as I work there as project buyer.
First function of management is planning. Planning is taking appropriate actions to achieve goals. The whole concept behind the planning is to take action or rather scheduling proper actions in order to achieve specific goals and there by completing tasks. Planning can be shot term or long term. Planning involves reviewing past situation, forecasting future situation base anticipation and than planning current events. These days, due to competitive business market, planning is crucial to business. Managers without plan are similar to mechanics with out tools. There is no way manager will be able to succeed without proper plan. At ABB we have many managers from low end to executive. Decisions made by all have huge impact on how company performs.
Second function of management is organizing. Author defines organize as “assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals” (Page 15). In other word, organizing is simply gathering all information and planning necessary action to achieve goal. Organizing is very important. Organizing allows individuals to be more efficient and manage time wisely. Organized manager have clear view of scheduled event and therefore they are able to make proper decision. My department is very organized. We have process and procedure in place for each activity. We have tasked assigned to each of us. We all have specific duties which we are responsible for. This helps everyone and makes easy to communicate.
Third function of management is leading. Author defines Leading as “stimulating people to be high performers” (Page 15). In other word, motivating them positively and raising standard to achieve goals. Manager must be a good leader in order to lead the team to achieve goals. Some people may think that leading is telling others to do. But that’s not true. That may be considered dictating but defiantly not leading. Leading is influencing others by example. True leader will never tell other what to do, rather invest time teaching what they know so that others can follow and achieve the goals which are set. In my organization, there are many leaders whom I look up to. Each with there own unique personality. In fact, one of them is my mentor who mentors me on regular basis and teaches me something new all the time. My mentor is a project manager. He has unique personality with excellent communication, critical thinking, and leadership skills which raises my standard.
Forth function of management is controlling. Controlling is basically monitoring and making necessary changes to insure successful outcome of the first three function of management which are plan, organize, and lead. Many times when manager implement plans, outcome is not what was expected due to unexpected changes in technology, economy or even government laws. Controlling allows manger to see the plan in action and make changes to achieve good outcome of plan. For example, Due to 911, government has implemented Sarbanes Oxley act which requires all companies to follow strict laws and regulations. Due to this law changes, my department with in ABB had review entire process and procedure and than implement changes to comply with SOX. Controlling allows us to see the current situation, and make changes if needed depending on how good or bad the situation is.
These four functions which I described are very important part of management. As I mentioned before, there is constant changes in technology, economy, and government laws. Therefore, managers must use these four functions regularly in order to be successful. First, manager must have plan, it can be short term or long term. They must review the goal and plan accordingly. Second, manager must be organized. Organizing can be done easily by reviewing plan than coordinating all information in way to complete task successfully. Third, manager must be a great leader. Leading in way that will shape the future on there organization. Finally, manager must know how to control. They must monitor progress and make any changes to ensure success. In order to grantee success of plan, organize and lead, manager must control.

References
T.S. Bateman, S.A. Snell (2007). Management: The New Competitive Landscape (7th ed.). New York: McGraw-Hill/Irwin.