Thursday, May 02, 2013

INTRODUCTION TO MANAGEMENT-7(MOTIVATION)


Motivation
Some indicators of Motivation and de-motivation
Indicator of Motivation
Indicator of de-motivation
-         Higher work efficiency
-         Increase Absenteeism
-         Willing work
-         Excessive turnover/ need gap
-         Be responsible and accountable
-         Low output/ result/ productivity
-         Belongness in work
-         Low profile discipline/ attitude
-         Best result
-         Frustration
-         Regular in work
-         Violent behavior

-         Motivation is the inner power or energy that pushes toward acting/ working, performing action and achieving goals.
-         Motivation means to inspire, instigate (activate) and encourage a person to do their best.
-         Motivation strength the ambition, increase initiative and its direction, courage, energy and the persistence to follow one goals.
-         Motivation becomes strong when you have vision, a clear mental image of what you want to achieve, and also a strong desire to materialize it.
-         Motivation awakens and pushes you forward toward taking action and making the vision a reality.

Motivation and Performance
There is an old saying, you can take a horse to the water but you can’t force it to drink water. It will drink only if it is thirsty so with people as same. They will do what they want to do or otherwise motivate to do.
Job performance = Ability + Motivation
ð Motivation = Job performance – Ability

Motivation leads to job performance (This is wrong).
Job performance leads to motivation (This is correct).

The link between performance and motivation is positive. Means increased motivation result in improved performance. However improvement performance also reinforces motivation resulting from the sense of achievement. So that job performance leads to motivation.
In other word, relationship between motivation and performance is something of chicken and egg situation.
Theory of motivation
The job of manager in the work place is to get things done through employees. To do this the manager should be able to motivate employees. But that’s easier said than done motivation practices and theories are different subject where touching in several discipline.
1.    Abraham Maslow’s “Need Hierarchy theory”: One of the widely mentioned theories of the motivation is the hierarchy of needs theory, which puts forth by psychologist Abraham Maslow. Maslow saw human needs in the form of hierarchy ascending from the lowest to highest and concluded that when set of needs is satisfied, this kind of need cease to by motivator. As per his theory this needs are:
-         Physiological need
-         Security / safety need
-         Social / love need
-         Esteem need
-         Need for self actualization

                   I.            Physiological needs: These are important needs for sustaining the human life. Food, water shelter, properly, etc. It also includes protection against any emotional harm.
                 II.            Security or safety needs: These are the needs to free of physical danger and of the fear of losing job. E.g. security, safety shelter, warm clothes, etc.
              III.            Social/ love needs: Since people are social beings, they need to be belonging and be accepted by others. People try to satisfy their needs for affection, acceptance and friendship.
             IV.            Esteem needs: This kind of need produces such satisfaction as power, prestige, status, self confidence. It includes both internal esteem factors like self respect, autonomy and achievement and external esteem factors such as status recognition, attention, physical personality and etc. Esteem need cannot be met without fulfillment of the lower level needs.
                V.            Need for self actualization: Maslow regards this as the highest need in this hierarchy. It is the drive to become what one is capable of becoming. It includes growth, achieving ones potential and self-fulfillment. It is to maximize one’s potential and to accomplish something.







2.    Frederick Herzberg’s Motivation-Hygiene theory (This is two factor theories): Motivation Hygiene theory – Frederick Herzberg, a professor of psychology at case Western Reserve University, studied the attitudes of workers towards their job. Herzberg proposed that an individual will be moved to action based on the desire to avoid deprivation (deficiency). However this motivation does not provide positive satisfaction because it deep not provides a dense of growth. Herzberg’s research found that positive job attitudes were associated with a feeling of psychological growth. The thought that people work for two reasons: for financial reasons to avoid physical deprivation and for achievement because of the happiness and meaning it provides. Herzberg also identified the concept of job enrichment where by the responsibilities of a job are changed to provide greater growth and challenge. Each motivation- hygiene theory is called two factor theories.

Motivator (Esteem and self actualization need)
Hygiene factors ( Basic, Security and Social needs)
-Achievement
-Recognition for accomplishment
-Challenging work
-Growth and development
(Higher Level Need)
-Policies and administration
-Supervision
-Working condition
-Interpersonal relation
-Money, security, benefits
(Lower Level Need)

Maslow Theory                   Herzberg (Motivation – Hygiene Theory)
Achievement, growth potential, work itself
and responsibilities

Basic Physiological
 

Security
 

Social
 

Esteem
 

Self actualization
 
                                    Advancement, recognition, status


                                                                                                                                Interpersonal relationship with
Supervisor, peers, subordinates
Job security working condition, company policies
Administration, supervision
Salary, personal life, food, water, shelter


INTRODUCTION TO MANAGEMENT-6


Components of HRM
While looking human resources management more specifically, we can find the four major components/functions/process of it. They are respectively –
1.    Acquisition
2.    Development and training
3.    Utilization
4.    Maintenance
Acquisition: It begins with manpower planning. It includes job analysis, recruitment, selection and socialization of employees.
a.     Job analysis: Job analysis is a technique to identify of job nature, characteristics, and required skills to perform that job and number of person that perform that job.
b.    Recruitment: Recruitment is attracting more applicant, post to be filled, number of person need to selection, duties to be performed by selected person, qualification required to be select, advertising and collection of application from potential candidates
c.     Selection: Selection is the process of short listing arranging interview and selection test and selection of competent applicant which was collected in recruitment process.
d.    Socialization: Socialization is familiarity of organization goals, objectives, organization environment, organization rules, regulation, working procedural and other existing employees.

Development and training: Development and training activities will conduct after the selection of potential candidates. This function will be implicated to those existing employees to. It has four activities:
a.    Analysis of development needs: It involves human resource development planning for employees to predetermine future human resource development needs.
b.    Employee training: It involves skill development and change of attitude and behavior ability.
c.     Career development: It matches long-term individual and organization needs.

Utilization: This function ensures willingness of employees for increasing productivity by doing job effectively. It consists of employing people productively through motivation, job design work schedule, and performance appraisal and compensation management.
Maintenance function: This function maintains the commitment employee to the organization. It consists of employee discipline, attitudes, behaviors, skill correction, maintain relation and employee welfare.

[Organization : End]

INTRODUCTION TO MANAGEMENT-PART5


Human Resource Management (HRM)
It is the function within an organization that focuses on recruitment selection, development and utilization of human skills of management and providing direction for the people who work in the organization. HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organizational development, safety, wellness, benefits, employees motivations, communication, administration and training.
HRM functions includes a variety of activities and key among them is deciding what staffing need you have and whether to use independent contractors or hiring employees to fill these needs, recruiting and training the best employees ensuring they are high performers, dealing with performance issue and ensuring your personnel and management practices confirm to various regulation.
HRM is an open system. It consists of input, processing, output and feedback components.




 
 


INTRODUCTION TO MANAGEMENT-PART4


Decentralization
Decentralization is a systematic delegation of authority at all level of management and in all of the organization. In a decentralization concern, authority in retained by top level management for taking major decision and formality policy concerning the whole organization. Rest of the authority may be delegate to the middle level and lower level management.
The degree of decentralization will depend upon amount of authority delegated to lower level.
According to Allen – “Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central point.
Decentralization is a technique where everything that increases the role of subordinates is decentralization and that decreases the role of centralization. Decentralization is wider in scope and the subordinates respectively.
Decentralization is not the same as delegation. In fact, decentralization is an extension of delegation of authority.  Decentralization pattern is wider in scope and the authorities are diffused to the lowest level management.
Types of decentralization:-
1.     Geographical decentralization
2.     Administrative decentralization

Factors affecting the decentralization:
·        Management philosophy
·        Organization’s size
·        Organization’s history
·        Cost of decentralization
·        Dispersal of operating work
·        Capacity of lower workers
·        Organizational environment
·        Planning and control

Merits of decentralization:
·        Quicker and better decentralization
·        Diversification
·        Competitive organization climate
·        Easy environmental adaptation
·        Less burden of top level
·        Higher motivation and moral

Demerits:
·        Problems of coordination and control
·        High cost
·        Unstable for specialization services
·        Handicap for emergency
·        Lack of managerial capacity
·        Managerial desire and fear


Q. Different between centralization and decentralization. (Homework)




Centralization
Decentralization
1. Decision making is in a few hands

1. Decision making is in a more hands

2. Delegates authority is by top levels of management.
2. Delegates authority throughout the organization and to all levels of management.
3.Faster decision making
3.  Faster decision making
4.Is able to keep tight grip on all aspect of business
4. Is not able to keep tight grip on all aspect of business
5. More stress is imposed upon the top level of management
5. Less stress is imposed upon the top level of management
6. Lower implementation cost
6. Higher implementation cost
7. Is suitable for emergency condition.
7. Is not suitable for emergency condition.
8. Higher the centralization greater is the job specialization.
8. Higher the decentralization lesser is the job specialization.
9. Less job opportunity
9. More job opportunity



INTRODUCTION TO MANAGEMENT-PART3


3. Functional Organization Structure

            Functional organization has been divided to put the specialists in the top position throughout the organization. This is an organization in which we can define as a system in which functional department are created to deal with the problem of business at various levels. Functional authority remains confided to functional guidance to different departments. This helps in maintaining quality and uniformity of performance of different functions through the enterprise.
            Organization by function brings together in one department everyone engaged in one activity or several related activities that are called functions. Example, an organization divided by function might have separate manufacturing, marketing, account and finance, production, human resource etc. A sales/marketing manager in such organization would be responsible for the sale of all manufactured product by the firm same as other manager eg. Manufacturing, accounting/finance, production, HR are performed their related activities.
GM/CEO >
>Manufacturing specialist (manager)
            -Raw materials collection officers
                        --workers
            -Raw material store officers
                        --workers
            -Manufacturing process officers
                        --workers
            -Engineers
                        --workers
>Marketing/sales specialists (manager)
            -Promotion officers
                        --workers
            -Distribution officers
                        --workers
            -sales officers
                        --workers
           
>Accounting/Finance specialists (manager)
            -A/c officers
                        --workers
            -Record keeping officers
                        --workers
>Human resources specialist (manager)
            -Recruiment officers
                        --workers
            -Training officers
                        --workers
            -Employee record officers
                        --workers

>Research and development specialist (manager)
            -Data keeping officers
                        --workers
            -Data collecting officers
                        --workers
            -Data tabulation officers
                        --workers
            -Data analysis officers
                        --workers


Features
-         Organizational activities are divided into functional department such as MFG, MKT, ACC, HR, R&D.
-         It is complex than the line and line - staff organization
-         Three authority is exist; Line, Staff and Function
-         Each functional area lead by each specialists
-         Work specialization
-         Economy than the Matrix organizational structure
Merits of functional organization structure
-         Specialization in work
-         Effective control by specialist
-         Efficiency in work
-         Economy (specialized person can work fast & qualitative)
-         Expansion (Knowledge expansions, facilities expansions, etc.)
Demerits
-         Confusion to the lower level workers
-         Lack of coordination
-         Difficulties in fixing responsibility
-         Conflict
-         Costly than Line & Line - staff organization


4. Matrix organization structure
The matrix organization structure, sometime referred to as “multiple commands” system, is hybrid that attempt to combine benefits of both type (functional and pure project org. structure) of design while avoiding their drawbacks. An organization with matrix structure has two types of structures (functional and pure project org. structure) existing simultaneously. Employees have in effect two bosses i.e. they work in two chains of commands.

Features
-         A hybrid forms that combines some characteristics of functional and pure-project org.
-         Project manager and functional shares responsibilities
-         Project manager decides what task will be done, when they will be done, how that will be done, etc. and project manager is called task manager.
-         Functional manager decides what types of resources should be allocate to the particular work or functional manager is called resource manager.
-         Decision making right remains in both (resource decision and task decision).

Merits
-         High level of integration among key people.
-         Improve communication
-         Suitable to complex decision
-         Provides opportunity for functional and project skill development
-         Best in highly uncertain environment

Demerits
-         Dual boss/authority
-         Confusion
-         Duplication of efforts
-         Power struggle
-         High cost

GM/CEO >
>Manufacturing specialist (manager)
           
>Marketing/sales specialists (manager)
           
>Accounting/Finance specialists (manager)
           
>Human resources specialist (manager)
           
>Research and development specialist (manager)

Centralization and Decentralization
Centralization:
Centralization is said to be a process where the concentration of decision making and resource control is in few hands. All the important decision and actions at lower level, all subjects and action at the lower level are subject to the approval of the top level management.
According to Allen: “Centralization is systematic and consistent reservation of authority at central points in the organization. ”
The implication of centralization:-
-         Reservation of decision making power at top level
-         Reservation of operating authority with middle level manager
-         Reservation of operation at lower level at the direction the top level
Under the centralization, the important and key decisions are taken by the top level management and the other levels are into implementation as per the direction of top level. eg. In a business house, the father and son being the owners decide above the important matters by fathers and all the rest of the functions like production, finance, marketing and etc. by the son is centralization.

Advantages of centralization
-         Greater the centralization, higher the job specialization
-         Able to manage specialization or narrow span of complex job
-         Suitable for environmentally stable situation
-         Improve capacity of lower level
-         Able to handle crises management
-         Cost effective/economy

Disadvantages of centralization
-         Poor environmental adaptation
-         Poor diversification according to the geographical region
-         Unsuitable for programmed decision
-         Poor management development
-         Delay in decision