Cont.….

of Module 3 – Managers Vs Leader

Motivation
Motivation is the process that initiates, guides, and maintains goal-oriented
behaviors.
It is what causes you to act, whether it is getting a glass of water to reduce
thirst or reading a book to gain knowledge.
Motivation involves the biological, emotional, social, and cognitive forces that
activate behavior.

Uses of Motivation
There are many different uses for motivation. It serves as a guiding force for all
human behavior, but understanding how it works and the factors that may
impact it can be important in a number of ways.
Understanding motivation can:
Help improve the efficiency of people as they work toward goals
Help people to take actions
Encourage people to engage in health-oriented behaviors
Help people avoid unhealthy or maladaptive behaviors such as risk-taking and
addiction
Help people feel more in control of their lives
Improve overall well-being and happiness

Characteristics and nature of motivation

1. Motivation is an internal feeling – Motivation is a psychological

phenomenon which is a force within an individual that drives
him to behave in a certain way.
 2. Motivation produces goal-directed behavior – An individual ‘s
behavior is directed towards a goal.

3. Motivation is related to needs – Needs are deficiencies which

are created whenever there is a physiological or psychological
imbalance.

4. Motivation can be positive or negative – Positive or

incentive motivation is generally based on rewards. Negative
or fear motivation is based on force and fear.

5. Motivation is dynamic – Needs of a person today may be

different from needs of tomorrow. So, motivation is highly
dynamic.

Importance and benefits of Motivation

1. A manager directs or guides the workers ‘a c t i o n s in the

desired direction for accomplishing the goals of the
organization by motivating the workers.

2. Workers will try to be efficient as possible by improving upon

their skills and knowledge so that they are able to contribute to
the progress of the organization.

3. Ability to work and willingness to work are necessary for

performing any task. These two things can be created only by
motivation.

4. Motivation contributes to good industrial relations in the

organization.
5. Motivation is the best remedy for resistance to changes. If the
workers of an organization are motivated, they will accept any
change whole-heartily for the organizational benefits.

6. Motivation facilitates the maximum utilization of all the factors

 of production and thereby contributes to higher production.

7. Motivation promotes a sense of belonging among the workers.

8. Motivation leads to lower turnover and absenteeism because a

satisfied employee will not leave the organization.

Theories of Motivation

Motivation is a state of mind, filled with energy and enthusiasm, which drives a
person to work in a certain way to achieve desired goals.

Motivation is a force that pushes people to work with a high level of

commitment and focus, even if things are going against them.

There are many different forces that guide and direct our motivations. It is
important to ensure that every team member in an organization is motivated
to achieve goals.

Various psychologists have studied human behaviour and have formalized their
findings in the form of various motivational theories. These motivational
theories provide insights into the way people behave and what motivates
them.

Motivation theory is a way of looking at the motivation of a person and how

this influences their behaviour, whether for personal or professional reasons.
It's important to every aspect of society but is especially relevant to business
and management. Motivation is the key to more profitable employees, as a
motivated employee is more productive.

1. Maslow’s Theory of Hierarchical Needs

Abraham Maslow postulated that a person will be motivated when all his
needs are fulfilled. People do not work for security or money, but they work to
contribute and to use their skills.

He demonstrated this by creating a pyramid to show how people are motivated

and mentioned that one cannot ascend to the next level unless lower level
needs are fulfilled.

The lowest level needs in the pyramid are basic needs and unless these lower-
level needs are satisfied people do not look at working toward satisfying the
upper-level needs.

Below is the hierarchy of needs:

 Physiological needs: are basic needs for survival such as air, sleep, food,
water, clothing, sex, and shelter.
 Safety needs: Protection from threats, deprivation, and other dangers
(e.g., health, secure employment, and property)
 Social (belongingness and love) needs: The need for association,
affiliation, friendship, and so on.
 Self-esteem needs: The need for respect and recognition.
 Self-actualization needs: The opportunity for personal development,
learning, and fun/creative/challenging work. Self-actualization is the
highest-level need to which a human being can aspire.
2. Hertzberg’s two-factor Theory

Hertzberg classified the needs into two broad categories; namely –

 hygiene factors

 motivating factors

The Two-Factor theory implies that the managers must stress upon
guaranteeing the adequacy of the hygiene factors to avoid employee
dissatisfaction. Also, the managers must make sure that the work is stimulating
and rewarding so that the employees are motivated to work and perform
harder and better.
This theory emphasizes upon job-enrichment so as to motivate the employees.
The job must utilize the employee’s skills and competencies to the maximum.
Focusing on the motivational factors can improve work-quality.

3. McClelland’s Theory of Needs

McClelland affirms that we all have three motivating drivers, which do not
depend on our gender or age. One of these drives will be dominant in our
behaviour. The dominant drive depends on our life experiences.

The three motivators are:

 Achievement:

Need to accomplish and demonstrate own competence. People with a

high need for achievement prefer tasks that provide for personal
 responsibility and results based on their own efforts. They also prefer
quick acknowledgment of their progress.

 Affiliation:

Need for love, belonging and social acceptance. People with a high need
for affiliation are motivated by being liked and accepted by others. They
tend to participate in social gatherings and may be uncomfortable with
conflict.

 Power:

Need for controlling own work or the work of others. People with a high
need for power desire situations in which they exercise power and
influence over others. They aspire for positions with status and
authority and tend to be more concerned about their level of influence
than about effective work performance.

4. McGregor’s X and Y Theory

The style adopted by a manager in managing his subordinates is basically

dependent upon his assumption about human behavior. Theory X is
negative, traditional and autocratic style while theory Y is positive,
participatory and democratic. Thus these two theories are contrasting set
of assumptions about human behavior.

Theory X – This is the traditional theory of human behavior which

makes the following assumptions
 The average human being has an inherent dislike of work and will avoid
it if he can.
 He lacks ambition, dislikes responsibility and prefers to be directed.
 He is inherently self-centered, indifferent to organizational needs.
 He is by nature resistant to change.
  Working method of the people is generally traditional and hence
there is little scope for the development and research.
 People would be passive without active intervention by
management. Hence, they must be persuaded, rewarded, punished
and properly directed.
 He is gullible, not very bright.

Theory Y – As a result of many psychological and social researches Mc

Gregor developed an opposing theory- theory Y.

Theory Y is based on the following assumptions

 Work is natural as play or rest, provided the conditions are

favorable. The average human being does not inherently dislike
work.
 External control; and the thrust of punishment are not the only
means for bringing about efforts towards organizational objectives.
Man will exercise self-direction and self-control in the service of
objectives to which he is controlled.
 Commitment to objectives is a result of the rewards associated with their
achievement.
 The average humans being, under proper conditions learn not only
to accept responsibility but also to seek it.
 He has capacity to exercise a relatively high degree of imagination,
ingenuity and creativity in the solution of organizational problems
in widely, not narrowly distributed in the population.
 Under conditions of modern industrial life, the intellectual
potentialities of people are only partially utilized.
 Difference between Theory X and Theory Y

Theory X Theory Y
1 Theory X assumes human beings inherently Theory Y assumes that work is as
dislike work and are dissatisfied with natural as play or rest
towards
work.
2 Theory X emphasizes that people do not Theory Y assumes just reverse. Given
have ambition and they shrink proper conditions, people have
responsibility. ambitions
and accept responsibility.
3 Theory X assumes that people in general According to Theory Y, the creativity
have is
little capacity for creativity. widely distributed in the population.
4 According to Theory X, people lack self- In Theory Y people are self- directed
motivation and require be externally and creative and prefer self-control.
controlling and closely supervising in
order to get
maximum output.
5 Theory X emphasizes upon centralization of Theory Y emphasizes the
decentralization and greater
authority in decision making process participation in decision making
process.

Management by Objectives (MBO)

MBO is both a philosophy and approach of management.

It is a process whereby superiors and subordinates jointly identify the
common objectives, set the results that should be achieved by the
subordinates, assess the contribution of each individuals, and integrate
individuals with the organization so as to make the best use of
organizational resources. Thus, MBO is a system for integrating
managerial activities.

According to Koontz - MBO is a comprehensive managerial system that

integrates many key managerial activities in a systematic manner,
consciously directed towards the effective and efficient achievement of
organizational objectives.

Features of MBO
The following are the important features of MBO
1. MBO is an approach and philosophy to management and not merely
a technique.
2. MBO gives emphasis on objectives.
3. MBO is concerned with the participation of concerned
managers I objective setting and performance reviews.
4. MBO reviews performance periodically.
5. Objectives in MBO provide guidelines for appropriate systems and
procedures.
6. MBO establishes a community of interest and a shared
sense of vision among all the managers.

Process of MBO

The following are the stages involved in the MBO process

Setting of organizational objectives

The first step in MBO is the definition of organizational objectives and
purpose. Usually the objective setting starts at the top level of
organization and moves downward to the lowest managerial levels. The
setting objective include defining the purpose of organization, long range
and short-range organizational objectives, divisional or departmental
objective and individual managers objectives.
Identification of Key Result Areas
Organizational o0bjectves provide the basis for the identification of Key
Result Areas. KRAs are derived from the expectations of various
stakeholders and they indicate the priorities for organizational
performance such as profitability, market standing, innovation,
productivity, social responsibility etc.
Setting subordinates objectives
The achievement of organizational goals is only possible through
individuals. So, each individual manager must know in advance what he is
expected to attain.
Every manager in the managerial hierarchy is both superior and
subordinate (except the managers at top and bottom level).
Matching resources with objectives
Resource availability is an important aspect of objective setting because it
is the proper application of resources which ensures objective
achievement. So, there should be a matching between objectives and
resources.
Appraisal
Appraisal tries to measure whether subordinate is achieving his objective
or not. Appraisal is undertaken as an on-going process with a view to find
out deficiency in the working and also to remove it promptly in order to
attain the objectives of organization.
Recycling
Though appraisal is the last aspect of MBO process, it is used as an input
for recycling objectives and other actions. Recycling process include
setting of objectives at various levels, action planning on the basis of
those objectives and performance review. Each of these three aspects
gives base for others. This process goes on a continuous basis.

Benefits of MBO
 1. MBO helps in better managing the organizational resources and
activities.
2. Since organizational objectives are defined very clearly in MBO,
they help in relating the organization with its environment.
3. MBO provides greatest opportunity for personnel
satisfaction because of their participation in objective setting
and rational performance appraisal.
4. MBO stimulates o9rganisational change and provides a frame
work and guidelines for organizational change.

Problems and Limitations of MBO

1. MBO is a time consuming and costly process

2. Manager ‘s failure to teach MBO philosophy
3. Problems in objective setting
4. more emphasis on short term objectives
5. Danger of inflexibility in the organization in a dynamic environment
6. MBO creates frustration among managers

Performance Management

Performance management (PM) includes activities that ensure that goals

are consistently being met in an effective and efficient manner.
Performance management can focus on the performance of an
organization, a department, employee, or even the processes to build a
product or service, as well as many other areas.

This is used most often in the workplace, can apply wherever people
interact — schools, churches, community meetings, sports teams, health
setting, governmental agencies, and even political settings - anywhere in
the world people interact with their environments to produce desired
effects.
Baron defined Performance Management as a ―strategic and integrated
approach to increasing the effectiveness of organizations by improving
the performance of the people who work in them and by developing the
capabilities of teams and individual contributors.

It may be possible to get all employees to reconcile personal goals with

organizational goals and increase productivity and profitability of an
organization using this process. It can be applied by organizations or a
single department or section inside an organization, as well as an
individual person. The performance process is appropriately named the
self-propelled performance process (SPPP).
Advantages of performance management

Performance based conversations

Managers get busy with day-to-day responsibilities and often neglect the
necessary interactions with staff that provide the opportunity to coach
and offer performance feedback.
Performance management process forces manager to discuss
performance issues. It is this consistent coaching that affects changed
behaviors.
Targeted Staff Development
If done well, a good performance management system can be a positive
way to identify developmental opportunities and can be an important
part of a succession planning process.
Encouragement to staff
Performance Appraisals should be a celebration of all the wonderful
things an employee does over the course of a year and should be an
encouragement to staff. There should be no surprises if issues are
addressed as they arise and not held until the annual review.
Rewards staff for a job well done
If pay increases and/or bonuses are tied to the performance appraisal,
process staff can see a direct correlation between performance and
financial rewards.
Underperformers identified and eliminated
An effective performance management process can help identify
and document underperformers, allowing for a smooth transition if the
relationship needs to be terminated.
Documented history of employee performance
It is very important that all organizations keep a performance record on all
employees.
This is a document that should be kept in the employee ‘s HR file.
Allows for employee growth
Motivated employees value structure, development and a plan for
growth. An effective performance management system can help an
employee reach their full potential and this is positive for both the
employee and manager. A good manager takes pride in watching an
employee grow and develop professionally.

Disadvantages of Performance Management

Time Consuming
It is recommended that a manager spend about an hour per employee
writing performance appraisals and depending on the number of people
being evaluated, it can take hours to write the departments performance
appraisal but also hours meeting with staff to review the performance
appraisal.

Discouragement
If the process is not a pleasant experience, it has the potential to
discourage staff. The process needs to be one of encouragement, positive
reinforcement and a celebration of a years’ worth of accomplishments. It
is critical that managers document not only issues that need to be
corrected, but also the positive things an employee does throughout the
course of a year, and both should be discussed during a performance
appraisal.
Inconsistent Message
If a manager does not keep notes and accurate records of employee
behavior, they may not be successful in sending a consistent message to
the employee. We all struggle with memory with as busy as we all are so
it is critical to document issues (both positive and negative) when it is
fresh in our minds.
Biases
It is difficult to keep biases out of the performance management process
and it takes a very structured, objective process and a mature manager to
remain unbiased through the process.

Process Group & Group Dynamics

Groups exist in every organization and they affect the behavior of their
members. Many groups may be created for specific purposes in the
organization. Besides this, there may be groups not created by the
organization but are created by the people themselves. These groups
become essential for functioning of the organization.

A group mat be defined as ―the aggregate of small number of persons

who work for common goals, developed a shared attitude, and aware
that they are part of a group.
Group dynamics refers to the study of forces operating within a group.
Group dynamics is defined in different ways-
First, it describes how a group should be organized and operated.
Second, group dynamics consists of a set of techniques such as role
playing, sensitivity training etc.
third, it deals with internal nature of groups, there formation, structure
and processes, and the way they affect individual members, other groups
and the organization as a whole.

Group Process

Group process is the process that goes on within a group. A process can
be defined as the method used by the leaders to convert the inputs int
finished goods.

A group process consists of the following five stages

Forming – when a group is initially formed, its members cannot

accomplish much until they agree on what their purpose is, how they will
work together and so on. In this stage, the focus is on the interpersonal
relations among the members. The members assess one another with
regard to trustworthiness, emotional comfort and evaluative acceptance.
Thus, this stage is characterized by a great deal of uncertainty about the
group ‘s purpose, structure and leadership.

Storming – The storming stage is one of inter group conflict. Members

accept the existence of the group, but resist the constraints, the group
imposes on individuality. Further there is a conflict over who will control
the group.

Norming – In this stage, close relationships develop and the group

demonstrates cohesiveness. A new leader may emerge or the existing
leader may become more aware of how much others in the group
contribute.

Performing – The fourth stage is performing. The structure at this point is

fully functional and accepted. Group energy has moved from nth setting
to know and understand each other to performing the task at hand.
Members a t t e n t i o n is directed to self-motivation and the motivation
of other group members for task accomplishment.
Adjourning – For permanent work groups performing is the last stage in
their development. However, for temporary groups there is an adjourning
stage. In this stage, the group prepares for its disbandment and attention
is directed towards wrapping up activities.

Work Group
A work group is a group that interacts primarily to share information and
to make decisions to help each member to perform within his area of
responsibility.

Characteristics of a work group

 The members are skilled in all leadership and membership role.

 The members of the group are attracted to it and are loyal to its
members including the leader.
 The members and leaders have a high degree of confidence and trust in
each other.
 The values and goals of the group are a satisfactory combination
and expression of the relevant values and needs of its members.
 The group is eager to help each member to develop to his full potential.
 All the interaction, problem solving, decision making activities of
the group occur in a supportive atmosphere.
 Each member accepts willingly and without dislike the goals and
expectations that the individual and the group establish for
themselves.
 The leader and members believe that each group member is
possible to accomplish the objectives.
 The supportive atmosphere of the highly effective group stimulates
creativity.
 There is high motivation in the group to use the communication
process so that it best serves the interests and goals of the group.
Work Group Behaviour and Productivity

As groups function and interact with other groups, they develop their
own unique set of characteristics including structure, cohesiveness, roles,
norms and processes. As a result, groups may co-operate or compete
with other group, and inter group competition can lead to conflict.

While people work in groups they develop ways of thinking and behaving
that are different from their individual behavior which is required to
perform job. They may do more or less work than they are supposed to
do and different ways which is prescribed. Each member of the group
contributes something towards the accomplishment of the common goal.
Work group cohesiveness affects productivity.

The productivity of members of work group tends to be more uniform.

This is due to high group cohesiveness, promotes high control over the
level of production of the individual member and reduces the variation
among those members. The relationship of cohesiveness and productivity
depend upon the level of groups attitude towards organizational goals.

Team Creation and Management

A team is relatively permanent work group whose members must co-
ordinate their activities to achieve one or more common objectives. As
achievement of team ‘s objectives require co-ordination, team members
depend on one another and must interact regularly.

A work team generates positive synergy through co-ordinate effort.

Teams have far-reaching impact in the today ‘s work place. They have
become an essential part of the way business is being done.

A team is a group, but only some groups have the high degree of
interdependence and commitment to success we associate with a team.
 Types of Teams

Problem solving teams:

Problem solving teams consist of groups of five to ten employees from

the same department who meet for a few hours each week to discuss
ways of improving quality, efficiency and the work environment.

Self- managed work teams:

A self-managed team includes collective control over the pace of work,

determination of work assignments, and organization of breaks and
collective choice of inspection procedures.

Cross functional teams:

Cross functional teams are made up of employees from about the same
hierarchical level, but from different work areas, who come together to
accomplish a task.

Difference Between Work Groups and Teams

Work Groups Teams

Individual accountability Individual and mutual accountability

Come together to share information Frequently come together for

and perspectives discussion, decision making, problem
solving, and planning.
Focus on individual goals Focus on team goals

Produce individual work products Produce collective work products

Define individual roles, Define individual roles,

responsibilities, and tasks responsibilities, and tasks to help team
do its work; often share and rotate
them
Concern with one's own outcome Concern with outcomes of everyone
and challenges and challenges the team faces

Purpose, goals, approach to work Purpose, goals, approach to work

shaped by manager shaped by team leader with team
members

Team Management

Team management refers to techniques, processes and tools for

organizing and co- ordinating a group of individuals working toward a
common goal.

Modern managers should possess the essential skills like the ability to
work with other functional talents in teams and lead, not by authority
of command, but by expertise.

Thank You