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Plan for Session

Block Grid Ch# Chapter Title Time Allocate Start End


1 C 6 Employee behaviour 20 minutes 10:00 10:20
C 7 Motivation 30 minutes 10:20 10:50
2 D 8 Leadership 40 minutes 10:50 11:30
D 9 Team management 20 minutes 11:30 11:50
D 10 Negotiation and conflict 20 minutes 11:50 12:10
3 E 11 Mgt information System 20 minutes 12:10 12:30
4 A 1 Management Concept 25 minutes 12:30 1:00
Jumma Break
A 2 Business Environment 35 minutes 2:00 2:30
5 B 3 Organization Structure 20 minutes 2:30 2:50
B 5 Organization Culture 20 minutes 2:50 3:10
B 4 Managing Change 20 minutes 3:10 3:30
Paper focus & Attitude 20 minutes 3:30 3:50

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
For questions, you may call on
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Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Perception:
Perception is the unique process by which an individual sees,
organizes and interprets other persons, ideas and things in
terms of his own beliefs, values and expectations. The
perceptions of individuals are often quite different from the real
situation and influence individual and organizational behaviour.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Perception:

We use our senses to perceive the


world around us including:
Sight
Hearing
Touch
Taste
Smell Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Three stages of the perception process
The perception process involves three stages:
Stage 1: Selection: Selection involves selecting stimuli to which we
attend. We do this by using our senses – i.e. touch, taste, sight, sound
and smell
Stage 2: Organization: Organization involves mentally arranging
information gained from the stimuli so we can understand and make
sense out of it.
Stage 3: Interpretation: Interpretation is the final stage and the key
stage where we attach meaning to the stimuli. Our interpretations are
subjective and based on our values, beliefs, expectations, needs,
involvement, self-concept and other personal factors

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Factors Influence Perception
Some people not considered all of the factors during process of
perception, we called it Selective Perception
Internal Factors
Habit
Personality
Motivation and interest
Economic and social background
Organizational role and Position
External Factors
Novelty (newness, innovation) and
Familiarity:
Motion:
Repetition:
Contrast:
Size
Intensity .
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
QB32: (a) Explain briefly what is meant by perception. (03)
(b) List any four internal factors which would influence the
perception of a individual towards a particular object. (02)

Q.2 (b) Explain briefly what is meant by Perception. List any four
Internal Factors which would influence the Perception of an
individual towards a particular object. (05 marks) [A11]

QB33 (a) Describe the three stages of the perception process


(03)
(b) Explain any three external factors that might influence
perception (03)

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Attitude
A settled way of thinking or feeling about something.

Attitude means a tendency in an individual to persistently feel and


behave in a particular manner towards any object or situation with
which it is related. Thus in practice it represents an expression of
favour or disfavour towards a person, place or thing (the ‘attitude
object’).
 
Attitudes are formed from a person’s past and present.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Components of Attitude
Attitude comprises a number of components:
a) Knowledge or informational/cognitive component - This component
of attitude consists of beliefs, perceptions and information that an
individual has about an object. For example, “I believe crocodiles are
dangerous”.
b) Feelings or emotional/affective component - A person’s feelings or
emotions may be positive, negative or neutral towards an object or
situation. In certain situations, individuals may be asked to show
particular types of behaviour which may be different from their innate
natural feelings. For example “I am scared of crocodiles but they are part
of natural system”
c) Behavioural component - This attribute consists of an individual’s
tendency to behave, respond or perform in a particular manner towards
an object or in a particular situation. Unlike the other two components of
attitude, the behavioural component can be observed directly. For
example, “I will avoid crocodiles and will run away if I see one”.
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Q.9[A18] (a) Level of job satisfaction can be affected by various
factors such as rewards, recognition, workgroup relationships,
etc. High job satisfaction among the employees has positive
impact on internal and external stakeholders.
Required: List any two positive impacts of high job satisfaction
among employees on:
(i) organizations
(ii) customers (04)
(b) Attitude influences individual’s behaviour towards an object
or situation in a favorable or unfavorable manner.
Required: Identify and briefly explain the components of
attitude. Give one example under each. (06)

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Implicit vs. Explicit Attitude
Explicit Attitude Implicit Attitude
An explicit attitude is the kind of Implicit attitudes are positive and
attitude that you deliberately think negative evaluations that are much
about and report. For example, you less accessible to our conscious
could tell someone whether or not awareness and/or control.
you like math.

Strongly support to strongly Unacknowledged


oppose Reflect the underlying
Highly favorable to highly  morals,
unfavorable  Beliefs
Very good to very bad  values of a person.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Q.6 (a) At times even highly experienced and knowledgeable
individuals make perceptual errors in their assessment of other
people.
List four reasons which in your opinion are responsible for
perceptual errors. (04)
(b) Explain briefly the difference between explicit attitude and
implicit attitude. While interviewing a candidate for the position
of public relations officer for a financial institution, state whether
you would more closely assess the individual’s explicit attitude or
implicit attitude.
Give reason for your answer. (06) [A16]

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Q.9[A18] (a) Level of job satisfaction can be affected by various
factors such as rewards, recognition, workgroup relationships,
etc. High job satisfaction among the employees has positive
impact on internal and external stakeholders.
Required: List any two positive impacts of high job satisfaction
among employees on:
(i) organizations
(ii) customers (04)
(b) Attitude influences individual’s behaviour towards an object
or situation in a favorable or unfavorable manner.
Required: Identify and briefly explain the components of
attitude. Give one example under each. (06)

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Job Satisfaction
Job satisfaction refers to the attitudes and feelings that individuals
have in relation to their jobs. The extent of positive and favourable
attitudes towards the job indicates the level of job satisfaction

Job satisfaction is split between -


Affective job satisfaction – the is the extent of pleasurable emotional
feelings individuals have about their job
Cognitive job satisfaction – this is the extent of individuals’ satisfaction
with particular elements of their job, for example working hours,
pension arrangements and salary

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Benefit to Internal Stakeholders

Employees

Team Organization

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Benefit to External Stakeholders

Suppliers

Customer Shareholders

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Job Stress
Stress in the workplace describes
feelings of tension or exhaustion
typically associated with excessive or
overly demanding work.

Job Stress is a harmful physical and


emotional condition arising from
interaction of individuals with their
jobs.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Symptoms of Job Stress

The Behavioural Symptoms of


job stress are
changes in eating habits,
sleeping disorders,
Behavioural
Changes in eating habits
Sleeping disorders
 Feelings of isolation
Smoking
Nail biting
Loss of concentration
nail biting, etc.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Sources of Conflict
Environmental Factors Organizational Factors Individual Factors

Environmental factors: High rate of inflation,


shrinking economy and job uncertainty, shortages
of essential commodities, threats of political
changes, law and order problems, technological
changes, pollution and environmental hazards.
Organizational factors: Unhealthy working
conditions, work-related hazards, excessive noise, Environmental
extreme pressure to perform, role conflicts, role Factors
ambiguities, unsatisfactory interpersonal or hostile
relations with supervisors, colleagues and
subordinates.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Sources of Conflict
Environmental Factors Organizational Factors Individual Factors

Individual/Personal factors: Poor health, marital


problems, undisciplined children, death of a close
relative or friend, inadequate income to meet
unavoidable expenses, personal legal disputes.

Environmental
Factors

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Dealing with Stress- Coping Strategies

Strategies to cope with stress Employees should consider


multiple strategies designed to help cope with and avoid stress in
the long term.
These might include:
Improving communication skills and relationships with
management and colleagues
Manage situations and avoid repeating the negative reactions
Taking responsibility for improving physical and emotional
well-
A) Break bad habits and eliminate self-defeating behaviours
Don’t try to control the uncontrollable, Switch from negative
thinking to positive thinking, Tidy up your act – be on time, make
to-do lists. Resist perfectionism (which is unrealistic)

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Dealing with Stress- Coping Strategies

B) Dispel Stress
Look for humour in situations, Connect with others at work, Talk
it over with someone, Take a break – go for a walk or visit the
gym (some kind of physical activity will help enormously)
c) Prioritize and organize
a) Time management
Plan regular breaks, Leave earlier in the morning to arrive on
time, Don’t over-commit yourself leaving a schedule that is too
tight. ‘Back-to-back’ meetings leave no time for spontaneity and
flexibility, Create a balanced schedule
b) Task management
Be willing to compromise, Delegate responsibility, Sub-divide
projects into smaller manageable tasks, Prioritize tasks
c) Take care of yourself
Regular exercise, Eat healthily, Avoid nicotine
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Job Stress - Coping Strategies

A) Break bad habits and eliminate self-defeating behaviours


Don’t try to control the uncontrollable
Switch from negative thinking to positive thinking
Tidy up your act – be on time, make to-do lists.
Resist perfectionism (which is unrealistic)
B) Dispel Stress
Look for humour in situations
Connect with others at work
Talk it over with someone
Take a break – go for a walk or visit the gym (some kind of physical
activity will help enormously)
C) Improve your emotional intelligence (EI) –
Self-awareness
Self-management
Social awareness
Relationship management
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Job Stress - Coping Strategies

D) Prioritize and organize


a) Time management
o Plan regular breaks
o Leave earlier in the morning to arrive on time
o Don’t over-commit yourself leaving a schedule that is too tight.
‘Back-to-back’ meetings leave no time for spontaneity and
flexibility.
o Create a balanced schedule
b) Task management
o Be willing to compromise
o Delegate responsibility
o Sub-divide projects into smaller manageable tasks
o Prioritize tasks
c) Take care of yourself
o Regular exercise
o Eat healthily
o Avoid nicotine Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Motivation
The processes that account for individual’s
intensity, direction and persistence of effort
toward attaining a goal.
Intensity:- Power or passion to attain goal.
Direction:- Selection of way or path to reach
or attain the goal
Persistence:- Determination to achieve
objective. 
Theories of Motivation

Many theories try to explain motivation and why and how people can be
motivated. One classification is between content and process theories.

Theories of Motivation

Content Theories Process Theories

‘How can people be motivated?’


What are the things that motivate
They explore the process through
People?
which outcomes become desirable
They assume that human beings
and are pursued by individuals.
have a set of needs or desired
This approach assumes that people
outcomes. Maslow’s hierarchy
are able to select their goals and
theory.
choose the paths towards them.
Hierarchy of Needs Theory:- Abraham Maslow’s
Theory include in the Content theories
assume that human beings have a set of
needs or desired outcomes: motivation
is about offering them the satisfaction of
those needs. Self-
It’s probability safe to say that the most actualization Higher-
will known theory of motivation is Ego order
Abraham Maslow’s Hierarchy of Needs. Needs
He hypothesized that within every Social
human being there exists a hierarchy of
five needs. These are:
Physiological Needs:- Includes hunger,
thirst, shelter,, and other bodily needs.
Safety:- Includes security and protection
Safety Lower-
form physical and emotional harm.
Physiological order
Social:- Includes affection, belongingness,
Needs
acceptance, and friendship.
fulfillment.
Esteem & Ego:- Includes internal esteem factors such as self-respect, autonomy,
and achievement ; and external esteem factors such as status, recognition and
attention.
Self-actualization:- The drive to become what one is capable of becoming;
include growth, achieving and one’s potential, and self-actualization.
Self-actualisation need manifests in being able to be creative in specific pursuits
and accomplishing an outstanding job. In practice, few individuals are motivated
and able to reach the high level of satisfaction of selfactualisation needs.

Higher-order Needs:- Needs that are satisfied internally, social, esteem, and self-
actualization needs.
Lower-order Needs:- Needs that are satisfied externally, physiological and safety
needs.
Solving a case study-Writing Style

Mr. Aslam
Concerned
working o
manager Information
Manager
Of
Cisco

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Theory Writing applied
Managers is a person Mr. Saleem  is responsible for
responsible for ensuring task ensuring task accomplishment
accomplishment and and performance of marketing
performance of its unit to department to achieve goals of
achieve organizational goals Cisco.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
A way of thinking

Theory Patient
Problem Solution
Concept
Topic Man with problem
Term

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Two Factor Theory: Harzberg’s Two Factor Theory
According to Herzberg, two groups or categories of factors cause
dissatisfaction or satisfaction in a work environment. Factors which cause
dissatisfaction among employees are hygiene factors and those which
result in satisfaction are motivator factors.
Herzberg identified the Hygiene factors and Motivator factors as follows:

Hygiene Factors: Motivator Factors:


 company policy  achievement
 supervision  recognition
 relationship with boss  the work itself
 working conditions  responsibility
 salary  advancement & training
 relationship with colleagues /growth
 growth

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Extrinsic rewards are rewards Intrinsic rewards are rewards that
that are outside the control of the are within the control of the
individual. individual himself.
Basic pay (and the size of a pay A sense of achievement in doing
increase) the work
Cash bonuses and incentive A sense of recognition for doing
payments the work
Share options or a gift of some An enjoying the status that the
shares job provides
Pension benefits A pride in doing the work
Free medical insurance (and A personal satisfaction from
other forms of insurance, such as doing the work
disability insurance, or even life A sense of responsibility that the
assurance) individual enjoys.
The award of a company car,
or a company Helicopter or jet
Subsidized loans
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Reading & Understanding a Case Study/ Scenario
Q# Samad is currently employed as Marketing Manager in Hamid
Limited, a leading juice manufacturing and marketing company
and is satisfied in his present position in terms of emoluments,
work environment and relationships with colleagues.
Samad has recently been approached by Sigma Consultants, a firm
of ‘head-hunters’ who have advised him of an opening at
corporate management level position in Koonts Foods Limited
(KFL). KFL is a renowned multinational company engaged in the
manufacture of a wide range of food products and is in the
advanced stage of implementing manufacturing facilities in
Pakistan.
Required: Identify and explain briefly any five motivator factors
which may influence Samad’s decision to accept a position in KFL
in terms of Herzberg’s motivation-hygiene theory. (10)[S17]

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
N-ach person. This person
seeks achievement. Targets for
achievement should be realistic
but challenging goals. The
person also seeks advancement
in the job, and has a need for:
feedback: this is information
about his achievements and
progress towards the goals – the
individual needs to know
whether or not the goals are
being met
a sense of accomplishment
from achieving the goals.
Demand high degree of freedom
They consider achievement more
important than financial rewards
Security and status are not prime
Mubashir Wasim (MSc. Economics, MBA
motivators
Marketing, MS-IT, MS Business for them in their work.
Management)
N-pow person. This person
needs to be
influential and effective, and to
make an impact.
He has a strong need to lead,
and for his ideas to be accepted
rather than the ideas of others.
He needs status and prestige..

N-pow individuals are also poor leaders


strong work ethic
commitment to their organisation and its
goals. ‘people skills’ (skills at dealing with
other people) and also lack Mubashir Wasim (MSc. Economics, MBA
flexibility.
Marketing, MS-IT, MS Business
Management)
N-affil person. This person
needs friendly relationships and
is motivated by interaction with
other people. He needs to be
liked and held in high regard. He
makes a good ‘team player’...

N-affil individuals are usually poor


leaders. This is because their need to be
liked will often affect their objectivity and
prevent them at times from making
Mubashir Wasim (MSc. Economics, MBA
unpopular but necessary decisions.
Marketing, MS-IT, MS Business
Management)
Q.6 [17A] (a) MAG Electricity Company is a power generation and
distribution company which was established 50 years ago. A recent
study by an HR management consultant reveals that:
Chief Financial Officer is driven by high need of power and influence.
His priority is status and prestige.
Chief Information Officer seeks friendly relationship and wants to
please everybody.
Head of Human Resource seeks situations in which he can attain
personal responsibility for finding solutions to problems. He wants his
efforts to be recognised and appreciated.
Required:
Classify the ‘needs’ of the above individuals according to the
McClelland motivational theory and explain how these needs affect
their role in the organisation. (08)
(b) Give four examples each of extrinsic and intrinsic rewards. (04)[17A]

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Theory Case Style
N-pow This person needs to be Chief Finance Officer (CFO)
influential and effective, person can influence &
He has a strong need to convince others
lead, and for his ideas to CFO has a strong need to
be accepted rather than lead, and for his ideas to be
the ideas of others. He accepted rather than the
needs status and prestige ideas of others.
He lack people skill… CFO needs status and
He lack flexibility prestige so take less risk
CFO lack people skill little
inflexible to adjust in team

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Theory Case Style
N-aff This person needs friendly Chief Information Officer
relationships and is (CIO) will mix up with
motivated by interaction people very well.
with other people. He Resolve information need
needs to be liked and held very well
in high regard. He makes a CIO will delay decisions
good ‘team player’...
N-affil individuals are
usually poor leaders. This
is because their need to be
liked will often affect their
objectivity and prevent
them at times from making
unpopular but necessary
decisions.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Theory Case Style
Need-ach The person also seeks Head of Human Resour(HHR)
advancement in the job, and has will work hard, support MAG in
a need for: achieving its goal
feedback: this is information But HHR would likely to take
about his achievements and decision as he like to enjoy
progress towards the goals – the high degree of freedom
individual needs to know Head of Human Resource
whether or not the goals are (HHR) (N-ach person) is a type
being met of person who considers
a sense of accomplishment from achievement more important
achieving the goals. than financial rewards
Demand high degree of Set realistic goals
freedom Further, they like immediate
They consider achievement feedback on how well they
more important than financial have performed.
rewards
Security and status are not
prime motivators for them in
their work.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Q.10[A18] (a) People with strong self-efficacy are regarded as capable
of performing well as they are likely to view challenges as something
to be accomplished rather than avoided.
Required: What do you understand by ‘self-efficacy’? Discuss any
four attributes of a person with strong self-efficacy. (05)
(b) According to McClelland’s motivational needs theory, need for
achievement, need for power and need for affiliation significantly
influence the behavior of an individual which is useful to understand
from a managerial context.
Required: Briefly discuss the characteristics of individuals who are
motivated by each of the above three needs as suggested by
McClelland. Also mention under which dominant need a person would
most likely be a good leader. (05)

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Vroom’s Expectancy Theory
Instrumentality: The strength of a tendency to act in a certain way
depends on the strength of an expectation that the act will be followed by
a given outcomes and on the attractiveness of that outcome to the
individual.
F=VxE
According to Vroom the three factors and their characteristics which
determine the strength of an individual’s motivation are:
(i) Valence – Valence is the strength of an individual’s need for particular
rewards.
(ii) Expectancy – Expectancy denotes the extent of an individual’s belief
that by making extra effort the performance level would improve.
(iii) Instrumentality – Instrumentality refers to an individual’s belief that
by achieving a certain performance target, appropriate rewards would be
received.
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Test Case: Mr. Yousaf works in Sales. There is always a sales competition at
the year end and the winner is likely to be made team leader. Yousaf’s
quite certain that he will be able to win and that he will have more
responsibility, which he would like. But he would also have to work much
longer hours, and he is quite reluctant to do this for family reasons.
Required:
If an expectancy equation were used to assess Yousaf’s motivation to work
hard at the end of the year, based on the information given, which problem
you observe in the above case related with motivation of Mr. Yousaf is
correct and why?

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Law of effect
The law of effect was first published in 1905 and evolved from scientists
investigating the link between stimulus (S) and response (R). They
concluded that once the stimulus and response are associated, the
response is likely to occur without the stimulus necessarily being
present.
They noted that responses that produce a satisfying or pleasant state of
affairs in a particular situation are more likely to occur again in a similar
situation.
Conversely, responses that produce a discomforting, annoying or
unpleasant effect are less likely to occur again in a similar situation.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Thorndike's Puzzle-Box. The
graph demonstrates the
general decreasing trend of the
cat's response times with each
successive trial
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Self-Efficacy Theory-
Self-efficacy refers to an individual’s belief that he or she is capable of
performing a task.
Definition: Self-efficacy as one's belief in one's ability to succeed in
specific situations or accomplish a task. One's sense of self-efficacy can
play a major role in how one approaches goals, tasks, and challenges.
High efficacy & High Performance:
The higher your self-efficacy, the more confidence you have in your
ability to succeed.
Low Self-efficacy Low Performance:
So, in difficult situations, people with low self-efficacy are more likely to
lessen their effort or give up altogether, while those with high self-
efficacy will try harder to master the challenge. High self-efficacy
beyond one’s ability level to complete a task can lead to poor execution
of the task

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Self-efficacy can create a positive spiral
Self-efficacy can create a positive spiral in which those with high efficacy
become more engaged in their tasks and then, in turn, increase
performance, which increases efficacy further.
Changes in self-efficacy over time are related to changes in creative
performance as well.
 
High Self-efficacy & Negative Feedback: Individuals high in self-efficacy
also seem to respond to negative feedback with increased effort and
motivation, while those low in self-efficacy are likely to lessen their effort
after negative feedback. How can managers help their employees achieve
high levels of self- efficacy? By bringing goal-setting theory and self-
efficacy theory together.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Q.10[A18] (a) People with strong self-efficacy are regarded as capable
of performing well as they are likely to view challenges as something to
be accomplished rather than avoided. (05)
Required: What do you understand by ‘self-efficacy’? Discuss any
four attributes of a person with strong self-efficacy.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Reinforcement Theory
Reinforcement theory states that people seek out and remember
information that provides cognitive support for their pre-existing
attitudes and beliefs.
Reinforcement theory includes three primary mechanisms:
Selective exposure - People tend to avoid information that may
discredit their views in order not to have their opinions
challenged.
Selective perception - when exposed to dissonant messages
people will skew their perceptions to coincide with what they
desire.
Selective retention – this describes people only remembering
items which are consistent with their own predispositions.

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Mubashir Wasim (MSc. Economics, MBA
Marketing, MS-IT, MS Business
Management)
Management by Objective
Process of MBO
MBO involves a continuous cycle of following interconnected activities:
(i) Determining overall objectives
(ii) Establishing specific goals cascaded down to the departments and
individual employees
(iii) Agreeing on goals, targets, performance and improvement plans to
enable subordinates to make the optimum contribution
(iv) Formulating action plans
(v) Implementing the plans and creating effective control systems.
(vi) Reviewing, evaluating and monitoring the progress at regular
intervals.
(vii) Appraising the performance

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Management by Objective
Benefits of MBO
(i) It ensures that team members have a clear vision about their work
and how their role would benefit the whole organisation.
(ii) MBO is an effective approach for improving performance and
motivating employees.
(iii) It enables employees and managers to distinguish between tasks
that are necessary and those that do not contribute to the
organisation’s objectives.
(iv) MBO helps managers to control teams and provides a robust
reference point for team briefings, goal setting, performance appraisal,
delegation and feedback.
(v) Past performance is reviewed and objectives (goals) for the future
are identified.
(vi) It provides a sense of purpose for individuals

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)
Management by Objective

Disadvantages of MBO
i. Lengthy to implement needing, and expensive.
ii. Requires commitment employee
iii. Resistance can occur.

Q37 MBO
(a) What is meant by Management by Objectives (MBO)? (02)
(b) State the steps involved in the process of establishing goals and plans
by MBO. (04)

Q37 MBO
Q.9 Management by Objectives (MBO) is a goal setting technique.
Describe the activities which are involved in the process of MBO and
state the benefits of MBO.(09) [17A]

Mubashir Wasim (MSc. Economics, MBA


Marketing, MS-IT, MS Business
Management)

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