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P. O. BOX 183




MOBILE: 079 271 1987



I declare that the assignment submitted is an original piece of work produced by myself.

Zanele Mukuvisi




Table of Contents

Question 1

Question 2


Question 3


Question 4





There is much debate about the relationship between pay and motivation. Using
relevant theories on motivation, discuss in detail the circumstances around Alexs
motivation experiences at the National Home Manufacturers. (25)
Motivation is defined as psychological forces that determine the direction of a persons level
of effort, and a persons level of persistence in the face of obstacles. The direction of a
persons behaviour refers to the much possible behaviour a person could engage in. Effort
refers to how hard people work and persistence when face with roadblocks and obstacles,
people keep trying or give up. Motivation is control to management because it explains why
people behave the way they do in organisations. Jones and George (2011:400) explain that
some managers truly put their organisations best interest first in ensuring a motivated
workforce, whereas others are more concerned with maximising their salaries and why some
workers put forth twice as much effort as others.
Motivation can come from intrinsic and extrinsic sources. Intrinsically motivated behaviour is
behaviour that is performed for its own sake, the source of motivation is actually performing
the behaviour, for an example, managers derive a sense of accomplishment and achievement
form helping the organisation achieve its goals and gain competitive advantage. Extrinsically
motivated behaviour is a behaviour that is performed to acquire material or social rewards or
to avoid punishment. The source of motivation is the consequences of the behaviour, not the
behaviour itself, for example, a car salesman who is motivated by receiving a commission on
all cars sold, or a factory worker who is motivated by the opportunity to earn a secure income
are all extrinsically motivated. Their motivation comes from the consequence they receive as
a result of their work behaviours (Jones & George, 2011: 403).
Organisations hire people to obtain important inputs that contribute to an organisations
achievements. Inputs such as time, effort, education, experience, skills, knowledge and actual
work behaviours managers strive to motive members of an organisation to contribute inputs
through their behaviour, effort and persistence by using outcomes. Giving employees
outcomes when they contribute their inputs and perform well aligns the interest of employees
with the goals of the organisation as a whole (Jones & George, 2011: 402). The following are
the motivation theories that outline Alexs motivation experiences at the National Home
(a) Expectancy Theory

Formulate by Vroom, posits that motivation is high when workers believe high levels
of effort lead to high performance, and high performance leads to attainment of
desired outcomes. The expectancy model is a valuable tool for helping Alex thinks
about the mental processes though which motivation occurs. When Alex started
holding English classes for some of the floor workers, who thought that they had no
future with the company because many of them could write nothing. The floor
workers had not attended the English classes simply because of strong internal drives,
unmet needs, or the application of rewards and punishments. Instead, they were
thinking individually, whose beliefs, perceptions and probability estimates powerfully
influence their behaviour (Newstroom & Davids, 2002: 121).
The expectancy theory reflects Theory Y assumptions about people as capable
individuals and is willing to work to achieve their goals, and in this way values human
dignity. The expectancy approach, also encouraged Alex to design a motivated climate
that stimulated, appropriated employee behaviour. This is illustrated in the case study
when word got around that Alex was serious about what he was doing and didnt treat
the workers like kids in a remedial class. Alex needed to communicate to the workers
the importance of identifying among themselves the rewards they valued most.
Though the English classes he held took workers off the job for a couple of hours a
week, Alex that there were going to bring about a difference within the organisation,
but agreeing to a reduced salary and holding the English classes. Even if the workers
did not receive all that they desire, their expectations were more realistic after
effective communication through learning of the English language had occurred. This
was is shown by the increase in productivity, employee turnover dropped and for the
first time after more than a decade, some of the floor workers had began to apply for
supervisory positions (Newstroom & Davids, 2011:121).
As a manager, Alex realized the importance of high levels of expectancy,
instrumentality, and valence and took concrete steps to ensure that the employees are
highly motivated by teaching them the English language.

(b) Maslows Hierarchy of Needs

Maslow proposed that all people seek to satisfy five basic kinds of needs,
physiological needs, safety needs, belonging needs, esteem needs and selfactualization needs. Maslow argued that these lowest-level needs must be met before

a person strives to satisfy needs higher up in the hierarchy. Research does not support
Maslows contention that there is a need hierarchy. Nevertheless, a key conclusion can
be drawn from Maslow theory that people try to satisfy different needs at work.
Maslows need hierarch model essentially says that people have needs they wish to
satisfy and that gratified needs are not as strongly motivating as unmet needs.
Employees are more enthusiastically motivated by what they are currently seeking
than by receiving more of what they already have. A fully satisfied need will not be a
strong motivate. This is illustrated in the case study by Alexs more into training
which meant a big increase in salary. Alexs CEO, Martin knew he was making more
than many executives who had been with the company three times long and twice as
much as any of Alexs graduate schoolmates who majored in the same programme.
Despite all this the company C.E.O observed in the biweekly meetings that Alex
wasnt happy. Martin noticed that Alexs morale was low because he felt that he kept
teaching the same things repeatedly in his seminars, and business memos werent as
interesting as the literature Alex has been trained on. Alex felt redundant, thus as a
result his morale low (Newstroom & Davids, 2011:108).
Managers today need to identify and accept employee needs. They have to recognise
that needs may differ among employees. Martin is a leader who wants to see all
employees happy and enjoying their daily activities, thus he accepted Alexs proposal
to stop giving short seminars on executive writings to company top brass and start
holding classes for some of the floor workers who could not write in English. Martin
has offered Alex a higher salary as he trained the top brass but when Alex started
holding English classes for floor workers, he accepted a reduced salary. This made
Martin realize that giving more of the same reward may have a diminishing impact on
motivation (Newstroom & Davids, 2011: 108).
(c) Alderfers ERG Theory
Alderfer believed that a person can be motivated by different needs at more than on
level at the same time, for example a cashier at the supermarket may be motivated by
both existence needs at relatedness needs. The existence needs motivated the cashier
to come to work regularly and not make mistakes so his job will be secure, and he will
be able to pay his rent and buy food. In the National Home Manufacturers this is
illustrated by the workers attendance to the English classes, they showed up only as
an excuse to get away from the nailing guns job.

The relatedness needs motivate the cashier to become friends with some of the other
cashiers and have a good relationship with the store manager. The senior managers
cultivated eagerness in working with Alex on revising the brochures. Second Alexs
training the senior management officials, the prestigious training department, and the
floor workers, this earned Alex a good working relationship with Martin, the C.E.O.
this resulted in Alex being paid three times more than the company executives in the
company and twice as much as his graduate school classmates.
Alex also received a good bonus from a good bonus from the vice president in charge
of production. Growth needs involve the desire for both self-esteem and selfactualisation. By training the floor workers Alex achieved his self esteem and selfactualisation goals. This was seen by Martin as he watched Alex smiling after the
learning of English by the workers. The floor workers through learning how to write
English, it improved their self esteem and reached their self-actualisation, when for
the first time in a decade, they were able to apply for supervisory positions (Jones and
George, 2011: 408).
In conclusion, managers of National Home Manufacturers must understand that
employees have various needs that must be satisfied at the same time. According to
the ERG theory, if the managers concentrate solely on one need at a time, this will not
effectively motivate the employees. Also, frustration- regression aspect of ERG theory
has an added effect on workplace motivation. For example, if employees are provided
with growth and advancement opportunities within the organisation, they might revert
to the relatedness need such as socializing needs and to meet those socializing needs,
if the environment does not permit, they might revert to the need for money to fulfil
those socializing needs. The sooner the managers realize and discover this, the more
immediate steps they will take to fulfil those needs which are frustrated until such
time that the employees can again pursue growth (Jones, and George, 2011: 408).
(d) McClellands Theory of Needs
McClelland extensively researched the needs for achievement, affiliation and power.
The need for achievement is the extent to which an individual has a strong desire to
perform challenging tasks well and to meet personal standards of excellence. Alex
first achievement was in attaining a masters degree in English. He went on to set
clear goals for himself and made sure he received performance feedback. He did this
by developing a good relationship with senior management as he guided them in
writing and revising company brochures. After working with them, the senior

management applied their understanding by displaying eagerness to taking on the next

writing task. After training the companys top brass, he noticed the flawlessly polished
memos filtering through the annual report. Martin, the C.E.O made time to meet
subordinates as he regarded all employees equal, this illustrated his affiliation need.
At the same time, when Alexs morale was low, Martin was concerned, and asked
Alex about the problem, at the same time lack of participation in the biweekly
meetings by Alex, prompted Martin to have a meeting with Alex, because Martin
could not tolerate any nonsense that would like to derail company progress. This was
a display of power by Martin (Jones & George, 2011: 408).
(e) Goal-setting Theory
Goal-setting theory focuses on motivating workers to contribute their inputs to their
jobs and organisation. This theory takes the focus a step further by considering as well
as how managers can ensure that organisational members focus their inputs in the
direction of high performance and the achievement of organisational goals (Jones &
George, 2011: 411).
The goals organisational members strive to attain are prime determinants of their
motivational and subsequent performance. At National Home Manufactures this is
seen by Alex as he worked with first, the senior management officials. By working
well with them the officials gained confidence in the writing of company brochures
and after completion of the writing they were then eager to take on the next writing
skills. As Alex worked with supervisors, manager and executive at the prestigious
training department, he trained them to such a point the Alex ended up feeling
redundant, the company top brasss performance after the training through reading the
annual report, indicated that the memos filtering down through the company was
flawlessly polished.
Fourthly, by holding lessons for English classes and proving to the floor workers that
he was serious about teaching them writing skills, the workers were motivated and
themselves to Alexs class a couple of hours a week. Learning the English writing
lessons motivated the employees to a point that productivity improved, employee
turnover dropped and the workers even applied for supervisory positions, something
that was done the first time in d decade (Jones & George, 2011:412). Martin, as the
C.E.O. of the company, helped the employees to focus on items of greater importance
to the organisation, encourage better planning for the allocation of critical resources,

and stimulate the preparation of action plans for goal attainment though recruiting
qualified human resource capital such as Alex with a masters degree in English.
Though Alex was fresh from graduate school, Martins vision is to transform the
company into market leader in home improvements. Alex was the desired candidate to
stir the company through training to that direction (Newstroom & Davids, 2002: 116).
Martin also made time to meet company subordinates, for discussion on the
challenges they meet and solution to that, and also to give praise where it was due,
despite job position. By doing so Martin, exercised fairness and this motivated
employees into high performance, for example, senior management officials as they
worked with Alex excelled in report writing. The floor workers turn over dropped
because they felt important as they were taught on how to read and write English. As
a result productivity improved, positioning the company into marketing leading
Goal-setting works as a motivational process because it creates a discrepancy between
current and expected performance, this results in a feeling of tension, which the
employee can diminish through future goal attainment. Managers can promote high
motivation and performance by ensuring that people are striving to achieve specific,
difficult goals. It is important for people to accept the goals, be committed to them
and receive feedback about how they are doing (Jones & George, 2011: 420).

There are various ways in which leaders can increase and exercise their power bases.
Discuss the ways in which Martin could increase and exercise the power he has as a
manager at the National Home Manufactures.


Organisational politics has been defined as the deliberate management of influence to obtain
ends not sanctioned by the organisation or to obtain sanctioned ends through non sanctioned
influence means. Whereas power can be a latent force, a capability, politics involves
deliberate actions to develop and use power to counter the goals, ideas, or plans advanced by
competing interests. Because it functions outside the official system, the purpose of politics is
to shift otherwise ambiguous outcomes to ones personal advantage. Politics has been found
to be an integral part of organisations and critical to the management of change and
innovation (Cook & Hunsaker, 2001:470).
For managers to accomplish innovation and change in organisations requires more than the
ability to solve technical to analytic problems. Innovation almost invariably threatens the
status quo, and consequently, innovation is an inherently political activity (Cook & Hunsaker,
2001:470). Martin may increase and exercise the power he has as a manager at the National
Home Manufacturers through the strategies for increasing power and political strategies for
exercising power. Strategies for increasing power:

(a) Controlling Uncertainty

Conflict often results when performance criteria are ambiguous, goals inconsistent or
dissimilar, communication lacking, or organisational participants highly competitive. Conflict
among those variables is amplified when the stakes are high or power is diffused. Political
behaviours are likely to be intense under such conditions. By contrast, when performance
standards are explicit and rewards rationally allocated, political activity usually declines, this
is illustrated in the case study when Martin pays high salaries for high performers. Martin
also encouraged communication at all levels and would address challenges and implement
solutions with all subordinates in the firm (Cook & Hunsaker, 2001: 471).
Other conditions that incite conflict and political behaviour, they emerge for example, when
resources are scarce or insufficient, so that people are motivated to manoeuvre outside the
formal system to get fair share. Furthermore, it is difficult to avoid political behaviour when
interacting with authoritarian personalities or people who externally attribute outcomes. Since
authoritarian personalities are less aware of their behaviour, they may take greater political
risks wanting to squash those who get in their way. Politics is also likely to occur when there
is little trust among members and rewards are allocated on a zero sum basis. Most
significantly, political behaviour often occurs when peers work in lateral relationships in
which no one has authority over the others.
As means of dealing with in consisted and uncertain conditions, organisational politics serves
several positive functions, such as that political behaviour can help get the job done in spite
of personnel inadequacies by working around the weak link, Martin observed this when the
confidence of senior management officials was boosted and they were able to excel in report
writing and afterwards they were eager to take on the next writing task. Politics can also be a
force for change when politically active employees tackle problems that do not conform to
formal solutions. Martin used Alex as means to training the company trainers such as
managers, executives and supervisors skills on how to motivate the plant floor workers. A
political network also serves as a grapevine for communication with and influencing
individuals throughout the organisation.
By allowing Alex to teach English writing skills, Martin used the opportunity to have floor
workers circulate amongst themselves information about the English classes and how those
who had already attended were gaining skills through learning, this brought about a
commitment to the rest of the floor workers and this resulted in the increase in productivity
within the company and also reduced employee turnover. Martin gained power the

knowledge he had about global demand for organisation products as he had a vision to
transform National Home Manufacturers into market leader in home improvements (Cook &
Hunsaker, 2001: 471).
(b) Making Oneself Irreplaceable
Managers gain power when they have valuable knowledge and expertise that allow them to
perform activities no one else can handle. This is the essence of being irreplaceable. The
more central those activities are to organisational effectiveness, the more power managers
gain from bring being irreplaceable. Through Martins vision on how to take National Home
Manufacturers as a company to market leading, allowed him to be able to choose the
qualified candidate who had the ability to turn the organisation around. Engaging Alex as the
trainer for the organisation proved a success as he has the expertise skills in the quality
training that changed the writing skills of the organisation, motivation among employees plus
and increase in productivity plus an effective drop in employee turnover. This brought about
knowledge and expertise in the organisation that his competitors would not likely acquire
(Mullins, 2010: 677).
(c) Being in a Central Positions
Managers in central positions are responsible for activities that are directly connected to an
organisations goals and sources of competitive advantage and often are located in central
positions in important communication networks in an organisation. Managers in key positions
have control over crucial organisational activities and have access to important information.
Other organisational members depend on them for their knowledge, expertise, advice and
support, and the success or the organisation as a whole is seen as riding on these managers.
Through training, Martin ensured that the senior management officials acquired skills in
report writing, so the organisation would produced good reports. The managers who were
trained managed to motivate their subordinates resulting in overall motivated workforce that
met targets and began having high performance. Martin also opened avenues of
communication to address important issue within the organisation and he also praised high
performers and gave support to Alex when he initiated the proposal to hold English classes to
floor workers. This produced and increase in company productivity plus the floor workers
gain skills and were motivated by this leading to decrease in employee turnover (Jones &
George, 2011: 526).
(d) Generating Resources

Organisations need three kinds of resources to be effective, input resources such as raw
materials, skilled workforce, this is when Martin engaged Alex who had a masters degree to
train the departments, also he provided room for all members in the organisation to be trained
according to their departments and skill set so as for them to be equipped in being qualified
human resources to be able to produce results. The organisation had enough financial
resources as Martin employed workers according to their qualifications and had no concern in
the amount he paid the human capital as long as they did their jobs well. High performers
were also paid generously. Secondly, technical resources such as machinery and computers,
Martin ensured that his managers and supervisors were trained in technical skills as Alex
worked with the prestigious training department. Through the training Martins human capital
acquired knowledge, resources such as marketing, information technology, or engineering
expertise. Martin as a manager, if he can generate one or more of these kinds of resources for
an organisation, that his power is likely to increase (Jones & George, 2011: 526).
(e) Building Alliances
When managers build alliances, they develop mutually beneficial relationships with people
both inside and outside the organisation. The parties to an alliance support one another
because doing this so is in their best interests, and all parties benefit from the alliance.
Alliance give managers power because they provide the managers with support for their
initiatives. Partners to alliance provide support because they know the managers will
reciprocate when their partners need support. . Martin ensured that his alliance with the board
of directors remained in place, this is illustrated when Alex brought a proposal of holding
English classes to the floor workers, before Martin could consent to that, he took the idea and
presented it to the board of directors, who agreed on the conditions on the implementation of
the English classes training. Only then was Martin able to go back to Alex to present the
board of directors terms and allow Alex to hold the English class lessons. Alliances can help
managers achieve their goals and implement needed changes in organisation because they
increase managers levels of power (Jones, et al., 2011: 526).
Political strategies for exercising power
Political skilled managers not only understood and use the five strategies to increase their
power; they also appreciate strategies for exercising their power. Political strategies for
exercising power to gain the support and concurrence of others include:

Relying on Objective Information


Managers require the support of others to achieve their goals, implement changes, and
overcome opposition. Managers achieve these by relying on objective information that
supports the managers initiative; we see this in the study case when the company trainers
gave updates in biweekly meetings and the flawlessly polished reports produced by the
department. Reliance on objective information leads others to support the manager because of
the facts; objective information causes others to believe that what the manager is proposition
is the proper course of action. This is illustration by floor workers when they believed in the
information that Alex was serious on teaching them English writing skills and they started to
attend the classes in their numbers. By relying on objective information political skilled
managers unobtrusively exercise their power to influence others (Jones & George, 2011:528).

Bringing In An Outside Expert

Bringing in of an outside experts to support decision-making or proposals can at times
provide managers with some of the same benefit as those of objective information does. By
doing so, lends credibility to a managers initiatives and wins support from others. Martin did
this by employing Alex who had a masters degree and who by training the subordinates
made a large difference to the organisations performance. Although the assumption is that
consultants are neutral or objective, they sometimes are hired by managers who want them to
support a certain position or decision in an organisation. For instance, when managers face
strong opposition from others who fear that a decision will harm their interests, the managers
may bring in an outside expert, with the hope that the expert will be perceived as a neutral
observer to lend credibility and objective to their point of view. The support of a consultant
may be perceived by many as an independent decision (Jones & George, 2011: 528).


Controlling the Agenda

Managers also can exercise power unobtrusively by controlling the agenda-influencing which
alternatives are considered or even whether a decision is made. When managers influence the
alternatives that are considered, they can make sure that each considered alternative is
acceptable to them and that undesirable alternatives are not in the feasible set, for example,
when Martin can exert power unobtrusively by ensuring that job candidates he did not find
acceptable do not make their way on to the list of finalist for an open position. They do so by
making sure the candidates drawbacks are communicated to everyone involved in making the
hiring decisions. Managers seem to exert little power or influence on discussions in selection
decision-making, or agree with other selection panel, however, the manager may have exerted
power in the hiring process unobtrusively by controlling which candidates make to the final
stage of recruitment.

Sometimes managers can prevent a decision from being made. They can do so by exerting
influence by not including the proposal on the agenda for the committees next meeting.
Besides that, he can place the proposal at the end of the agenda at the end of the agenda for
the meeting and feel confident that the committee will run out of time and not get to the last
items on the agenda, because that is what always happens. Either approach enables the
manager to obtrusively exercise power. Others will not view this as trying to influence them
in rejecting the proposal but rather, the manager has made the proposal into a nonissue that is
not even considered (Jones & George, 2011: 529).
iv. Making Everyone a Winner
Politically skilled managers can exercise their power unobtrusively by making sure that
everyone whose support they need benefits personally from providing that support. Martin
did so by paying the highest salaries to those who performed well. By making everyone a
winner, a manager can easily influence the organisational members because those members
see supporting the manager as being in their best interest. When top management turn around
troubled companies, organisational members suffer due to these restructurings that often
entail painful layoffs. However, the power of the turnover C.E.O such as Martin often
accelerates the process as it becomes clear that the future of the company is on surer footing
and the organisation and its stakeholders are winners as a result of the change effort.
Making everyone a winner not only is an effective way of exercising power but when used
consistently and forthright, can increase managers power and influence over time. Thus
when a manager makes everyone a winner, all stakeholders will see it as in their best interest
to support the manager and his initiatives. When managers make everyone a winner have
strong ethical values, everyone really is a winner (Jones & George, 2011: 529).


The National Home Manufactures seem to have had a fair share of management related
challenges over the years. With reference to the management theories you have studied,
discuss how the senior managers of the Manufacturing firm could have dealt with some
of the challenges.


The positive, participative, considerate leadership style is not always the best style to use, at
times there are exceptions and the prime need for leaders is to identify when to use a different
style. A number of models have been developed that explain these exceptions and they are
called contingency approaches: (Newstroom & Davids, 2002: 171).
(a) Fielders Contingency Theory
Fred E. Fielder was among the first theorists to acknowledge that effective leadership is
contingent on, or depends on the characteristic of the leader and of the situation. This model
helps to explain why a manager may be an effective leader in one situation and ineffective in
another (Jones & George, 2011: 43). Fielders contingency theory of leadership proposes that
a fit between the leaders need structure and the favourableness of the leaders situation
determine the teams effectiveness in work accomplishment. The leaders effectiveness is
determined by the interaction of employee orientation with three variables that relate to the
followers, task and organisation.
The first variable is leader-member relations determined by the manner in which a leader is
accepted by the group. If for example, there is a group friction with the leader, rejection of
the leader, and reluctant compliance with orders, then leader-member relations are low. If the
floor workers had rejected Alexs coaching them on English writing skills, the workers would
not have performed well, as a result there was not going to be an increase in productivity and
the employee turnover would have not increased. The second task structure reflects the
degree to which a specific way is required to do the job. The third variable states that leader
position power describes the organisational power that goes with the position the leader
occupies, examples are power to recruit, and fire, and power to give pay raises and
promotions, such as the high salaries paid to high performers by Martin the C.E.O. of
National Home Manufactures (Nelson and Quick, 2009: 344).
The conclusions of the Fielder model are that in highly unstructured situations the leaders
structure and control are seen as removing undesirable ambiguity and the anxiety that results
from it, employees prefer a structured approach. Where task is highly routine and the leader
has good relations with the workers, they may perceive a task orientation as supportive to

their job performance. For better leader relations to be established, a more considerate,
employee-oriented leader is effective (Newstroom & Davids, 2002: 172).
(b) Path-Goal Theory
House focused on what leaders can do to motivate their subordinates to achieve group and
organisational goals. The premise of path-goal theory is that effective leaders motivate
subordinates to achieve goals by clearly identifying the outcomes that subordinates are trying
to obtain from the workplace. Secondly, by rewarding subordinates with these outcomes for
high performance and meeting work goals. Path-goal theory proposes the steps managers
should take to motivate subordinate depend on the nature of the subordinates and the kind of
job they do (Jones & George, 2011: 439).
Based on the expectancy theory of motivation described above, path-goal theory gives
managers the following guidelines to being effective leaders:

Providing clear indication of the outcome of the work to be performed

The outcomes can range from satisfactory pay and job security to reasonable working
hours and interesting and challenging job assignment. After identifying the outcomes,

the manager has to reward power needed to distribute or withhold the outcomes.
Rewards: Reward subordinates for high performance and goal attainment with the
outcomes they desire.
Path Improvement
The manager removes any obstacles to high performance and express confidence in
subordinate capabilities. This does not entail that the manager needs to tell
subordinates what to do, but rather it means that a manager needs to make sure
subordinates are clear about what they should be trying to accomplish and have the
capabilities, resources and confidence levels needed to be successful (Jones &
George, 2011: 439).

Path-goal theory identifies four kinds of leadership behaviour that motivate subordinates:
Directive leadership The leader focuses on performance and work schedules.
Supportive behaviours The manager demonstrates concern for employees

well being and needs, while trying to create a pleasant work environment.
Achievement-oriented behaviours - The leader set high expectations for
employees, communicates, has confidence in the ability to achieve challenging


goals, and enthusiastically models the desired behaviour.

Participants behaviours The leader gives subordinates a say in matters and
decisions that affect them.


In conclusion, depending on the contingent on, the nature of the subordinates and the kind of
work they do, directive behaviours may be beneficial when employees are having difficulty
completing assigned tasks. Supportive behaviours can be effective when employees are
experiencing high levels of stress. Participative behaviour is effective when subordinates
support the decision- making. And achievement-oriented behaviour increase motivation of
high performers, but may backfire if used to employees with high stress (Jones & George,
2011: 440).
(c) The Leader Substitute Model
The leader substitute model suggests that leadership is sometimes unnecessary because
substitute of leadership are present. The model suggests that under certain conditions
managers do not have to play a leadership role as the employees of the organisation would be
performing at high levels with supervision. For example, in the case study Alex is seen as a
highly motivated and high performing manager, after he was done training the managers and
supervisors, he still needed to do something that he would enjoy, thus he started tutoring
English knowing that the floor workers would acquire English skills of fluency to be able to
conduct business well. Alex enjoyed not only teaching them English but also learning about
the work they do. This he did without the influence of money or Martin the C.E.O. in Alex
situation leadership is unnecessary because substitutes for leadership are present.
Substitutes for leadership can increase organisational efficiency and effectiveness because
they free up some of managers valuable time and allow managers to focus their efforts on
discovering new ways to improve organisational effectiveness (Nelson & Quick, 2009: 350).

(d) Emotional Intelligence Mode

A leaders level of emotional intelligence may play a particularly important role in leadership
effectiveness. For example, emotional intelligence may help managers develop a vision for
their organisations, motivate their subordinates to commit to their vision and energise them to
enthusiastically work to achieve this vision. More so, emotional intelligence enable leaders to
develop a significant identity for the organisation and instil high levels of trust and
cooperation throughout the organisation while maintaining the flexibility needed to respond
to changing environment.
Emotional intelligence directs managers on how to relate to and deal with subordinates on
motivation issues. Creativity in organisations in an emotional- laden process, it often entails

challenging the status quo, taking risks, and being creative in products, services or procedures
and process where uncertainty is bound to be high. Leaders who are high on emotional
intelligence are more likely to understand all the emotions surrounding creative endeavours,
to be able to awaken and support the creative pursuits of subordinates and support behaviours
that enable creativity to flourish in organisations. Emotional intelligence also helps managers
respond appropriately when they realize they have made mistakes (Jones & George, 2011:

The National Home Manufacturer, like any other organisation is prone to the
detrimental effects of the forces of the general environment of business. With reference
to this statement, discuss the impact of any FIVE forces of the general environment of
business to the National Home Manufacture.


When an organisation decides on the scope of their work attitudes and behaviours it wants
from employees, managers create a particular arrangement of task and authority relationships,
and promote specific cultural values and norms to obtain these desired attitudes and
behaviours. The challenge facing all companies is to design a structure and culture that
motivate managers and employees to work hard and develop supportive job behaviours and


attitudes and coordinate the actions of employees, groups, functions and divisions to ensure
they work together efficiently and effectively (Jones & George, 2011: 304).
Managers desire organisational structure to fit the factors that are affecting the organisation
the most and causing the most uncertainty. Thus, there is no best way to design an
organisation; design reflects each organisations specific situation and researchers have
argued that in some situations stable, mechanistic structure or culture managers select the
nature of the organisational environment, the type of strategy the organisation pursue, the
technology the organisation use and the characteristics of the organisations human resources:
(Jones & George, 2011: 305).
(a) The Organisational Environment
An organisations environment is composed of institutions or forces outside the organisation
that potentially affect the organisations performance. The more the external environment
changes, and the greater are the uncertainty within it, the greater are the problems managers
face in trying to gain access to scarce resources. In such a situation to speed decision-making
and communication to make it easier to obtain resources, managers typically make organising
choices that result in more flexible structures and entrepreneurial cultures. Managers are
likely to decentralise authority, empower lower-level employees to make important operating
decisions, and encourage values and norms that emphasize change and innovation. In contrast
if the external environment is stable, resources are readily available and uncertainty is low,
then less coordination and communication among members and functions is necessary to
obtain resources (Jones & George, 2011: 306).
(b) Strategy
Different strategies often call for the use of the use of different organisational structures and
cultures, for examples, a differentiation strategy aimed at increasing the value customers
perceive in an organisations goods and services usually succeeds best in a flexible structure
with a culture that values innovation. Flexibility facilitates a differentiation strategy because
managers can develop new or innovation products quickly, an activity that requires
cooperation among organisational functions.
In contrast, a low-cost strategy is a strategy aimed at driving down production costs in all
functions usually fares best in a more formal structure with more conservative norms, which
gives managers greater control over the activities of an organisations various departments. At
corporate level, when managers decided to expand the scope of organisational activities by


vertical integration or diversification for example they will need to design a flexible structure
to provide sufficient coordination among different business division (Anonymous, 2013: 01).
Corporate strategy is the pattern of major objectives, purpose or goals and essential policies
for achieving those goals, stated in such a way as to define what business the company is in.
Organisations follow an imitation strategy to try to capitalise on the best of both the previous
strategies. They seek to minimize risks and maximize opportunity for profit their strategy is
to move into new products or new market only after viability has been prove by innovators
(Mullins, 2010: 543).
(c) Technology
Technology in this scenario is a combination of skills, knowledge, machines and computer
that are used to design, make, distribute good and services. The more complicated the
technology used by an organisation, the more difficult it is to regulate it because more
unexpected event can arise. When an organisation uses complicated technology, the greater
the need for a flexible structure and progressives culture to enhance managers ability to
respond to unexpected situations and give them the freedom and desire to work out new
solutions to the challenges they encounter. In contrast, the more routine the technology, the
more appropriate is formal structures because tasks are simple and the steps needed to
produce goods and services have been worked out in advance.
Therefore, two factors that determine how complicated or non-routine technologies are:
Task variety these are new and unexpected problems that a function encounters in

performing tasks.
Task analyzability this is the degree to which programmed solutions are available to
functions to solve the problems they encounter. Non-routine or complicated
technologies are characterised by high task variety and low task analyzability. This
means many varied problems occur and solving these problems requires significant non
programmed decision-making. Opposite the this fact, routine technologies are
characterised by low task variety and high task analyzability, this means the problems
encountered do not very much and are easily resolved through programmed decisionmaking. Routine technologies are low task variety and high task analyzability, this
means the problems resolved through programmed decision-making.

Examples of non routine technologies are found in research and development (R&D)
laboratories, who develop new products or discover new drugs, and are in top management
that charts the organisations future strategy (Jones & George, 2011: 307).

(d) Human Resources

The important factor affecting an organisations choice of structure and culture is the
characteristics of human resources it employs. The more highly skilled its workforce, the
greater the number of employees who work together in groups and teams and the more likely
an organisations is to use a flexible, decentralized structure and a professional culture based
on values and norms that foster employee autonomy and self control. Highly skilled
employees with eternalised strong professional values and behaviour usually desire greater
freedom and less direct supervision. Flexible structures are characterized by decentralised
authority and empowered employees, as well as suited to the needs of highly skilled
personnel. Similarly, when employees work in teams, they must be allowed to interact freely
and develop norms to guide their own work interactions, which is possible in a flexible
organisational structure. Thus, when designing organisational structure and culture, managers
must pay close attention to the needs of the workforce and to the complexity and kind of
work employees perform (Jones & George, 2011: 308).
In conclusion, an organisations external environment, strategy, technology and human
resources are the factors to be considered by managers seeking to design the best structure
and culture for an organisation. The greater the level of uncertainty in the organisations
environment, the more complex its strategy and technologies, and the more highly qualified
and skilled its workforce, the more likely managers are to design a structure and a culture that
are flexible can change quickly, and allow employees to be innovative in their responses to
problems, customer needs.
The more stable the organisations environment, the less complex and more well understood
its strategy or technology, and the less skilled its workforce. The more likely managers are to
design an organisational structure that is formal and controlling and a culture whose values
and norms prescribe how employees should act to particular situations (Jones & George,
2011: 308).


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