A function of management

Directing
• Refers to the process of motivation, communication,
supervision and leadership
• It deals with the relationship of managers and non
managers
• Managers as leaders should understand the motives of
people, and they should maintain or improve the
interpersonal relationship in an organization so that
people can be satisfied from contributing to the
achievement and development of objectives of the
enterprise
• Comes from the Latin word “movere” which
means to move
• Numerous definitions are given for the term –
aim, desire, end, impulse, intention, objective
and purpose
Common Characteristics of Motivation
• Motivation is concerned with what activates
human behavior
• Motivation is concerned with what directs this
behavior toward a particular goal
• Motivation is concerned with how this
behavior is sustained
• Motivation can be analyzed using the
following causative sequence:
 Needs
• Produce motives which lead to the
accomplishment of goals.
• Are caused by deficiencies, which can be
either physical or psychological
 Motive

• Is a stimulus which leads to an action that

satisfies the need.
• Motives produces actions
 Achievement

• Achievement of the goal satisfies the need

and reduces the motive
• When the goal is reached, balance is restored.
 Traditional Theory
• From the work of Frederick Taylor and the
management movement that took place at the turn of
this century

• Taylor’s ideas were based on his belief that existing

reward system were not designed to reward
individuals for high production.

• He felt that when highly productive people discover

that they are being compensated basically the same as
less productive people, then the output of highly
productive people will decrease.
• He designed a system whereby an employee
was compensated according to individual
production, thus, employees could in many
cases significantly increase their pay
production above the standard.
• The theory is based on the assumption that
money is the primary motivator.
• Financial rewards are directly related to
performance in the belief that if the reward is
great enough employees will produce more.
 The Hierarchy of Needs
• Postulated by Abraham W. Maslow
• He stated that human needs in the form of
hierarchy should be satisfied in order, from
the lowest to the highest needs.
Hierarchy of Needs
 Physiological Needs
• Physiological needs are those required to sustain life,
such as:
• air
• water
• nourishment
• sleep
• According to Maslow's theory, if such needs are not
satisfied then one's motivation will arise from the
quest to satisfy them. Higher needs such as social
needs and esteem are not felt until one has met the
needs basic to one's bodily functioning.
 Safety Needs
• Once physiological needs are met, one's attention
turns to safety and security in order to be free from
the threat of physical and emotional harm. Such needs
might be fulfilled by:
• Living in a safe area
• Medical insurance
• Job security
• Financial reserves
• According to Maslow's hierarchy, if a person feels that
he or she is in harm's way, higher needs will not
receive much attention.
Love and Belongingness(social needs)
• Once a person has met the lower level
physiological and safety needs, higher level
needs become important, the first of which
are social needs. Social needs are those
related to interaction with other people and
may include:
• Need for friends
• Need for belonging
• Need to give and receive love
 Esteem Needs
• Once a person feels a sense of "belonging", the need to feel
important arises. Esteem needs may be classified as internal or
external. Internal esteem needs are those related to self-esteem
such as self respect and achievement. External esteem needs are
those such as social status and recognition. Some esteem needs
are:
• Self-respect
• Achievement
• Attention
• Recognition
• Reputation
• Maslow later refined his model to include a level between esteem
needs and self-actualization: the need for knowledge and
aesthetics.
 Self Actualization
• Self-actualization is the summit of Maslow's hierarchy of needs. It is
the quest of reaching one's full potential as a person. Unlike lower
level needs, this need is never fully satisfied; as one grows
psychologically there are always new opportunities to continue to
grow.
Self-actualized people tend to have needs such as:
• Truth
• Justice
• Wisdom
• Meaning
• Self-actualized persons have frequent occurrences of peak
experiences, which are energized moments of profound happiness
and harmony. According to Maslow, only a small percentage of the
population reaches the level of self-actualization.
 Implication for Management of MASLOW
THEORY
• There are opportunities to motivate employees through
management style, job design, company events, and compensation
packages, some examples of which follow:
• Physiological needs: Provide lunch breaks, rest breaks, and wages
that are sufficient to purchase the essentials of life.
• Safety Needs: Provide a safe working environment, retirement
benefits, and job security.
• Social Needs: Create a sense of community via team-based projects
and social events.
• Esteem Needs: Recognize achievements to make employees feel
appreciated and valued. Offer job titles that convey the importance
of the position.
• Self-Actualization: Provide employees a challenge and the
opportunity to reach their full career potential.
Achievement-Power-Affiliation Theory
• David McClelland proposed that an
individual's specific needs are acquired over
time and are shaped by one's life
experiences. Most of these needs can be
classed as either achievement, affiliation, or
power. A person's motivation and
effectiveness in certain job functions are
influenced by these three needs. McClelland's
theory sometimes is referred to as the three
need theory or as the learned needs theory.
 Need for Achievement
• Desire to do something better or more
efficiently than it has been done before
• People with a high need for achievement seek
to excel and thus tend to avoid both low-risk
and high-risk situations. Achievers avoid low-
risk situations because the easily attained
success is not a genuine achievement. In high-
risk projects, achievers see the outcome as
one of chance rather than one's own effort.
 Need for Power
• A concern for influencing people- to be strong
and influential
• A person's need for power (nPow) can be one of
two types - personal and institutional. Those who
need personal power want to direct others, and
this need often is perceived as undesirable.
Persons who need institutional power (also
known as social power) want to organize the
efforts of others to further the goals of the
organization..
 Need for Affiliation
• A need to be liked- to establish or maintain
friendly relations with others.
• Those with a high need for affiliation (nAff)
need harmonious relationships with other
people and need to feel accepted by other
people. They tend to conform to the norms of
their work group.
 Implications for Management of
Achievement, power & Affiliation Theory
• People with different needs are motivated differently.

• High need for achievement - High achievers should be given challenging

projects with reachable goals. They should be provided frequent
feedback. While money is not an important motivator, it is an effective
form of feedback.

• High need for affiliation - Employees with a high affiliation need perform
best in a cooperative environment.

• High need for power - Management should provide power seekers the
opportunity to manage others.

• Note that McClelland's theory allows for the shaping of a person's needs;
training programs can be used to modify one's need profile.
 McGregor’s Theory X and Y
• McGregor categorizes the assumptions upon
which traditional organizations are based into
theory X and the assumptions consisted with
the modern organization s and current
literature into theory Y
 Theory X
• Views human beings as inherently lazy and
hence must be motivated by force
• The individual must be threatened with
punishment in order to make him increase his
productivity.
• The direction and control comes from outside
the individual to motivate him.
Theory X - The Hard Approach and Soft
Approach
• The hard approach relies on coercion, implicit
threats, close supervision, and tight controls,
essentially an environment of command and
control. The soft approach is to be permissive
and seek harmony with the hope that in return
employees will cooperate when asked to do so.
However, neither of these extremes is optimal.
The hard approach results in hostility, purposely
low-output, and hard-line union demands. The
soft approach results in ever-increasing requests
for more rewards in exchange for ever-
decreasing work output.
 The Problem with Theory X
• Drawing on Maslow's hierarchy, McGregor argues that a
satisfied need no longer motivates. Under Theory X the
firm relies on money and benefits to satisfy employees'
lower needs, and once those needs are satisfied the source
of motivation is lost. Theory X management styles in fact
hinder the satisfaction of higher-level needs. Consequently,
the only way that employees can attempt to satisfy their
higher level needs in their work is by seeking more
compensation, so it is quite predictable that they will focus
on monetary rewards. While money may not be the most
effective way to self-fulfillment, in a Theory X environment
it may be the only way. Under Theory X, people use work to
satisfy their lower needs, and seek to satisfy their higher
needs in their leisure time. But it is in satisfying their higher
needs that employees can be most productive.
 Theory Y
• Contends that external force or punishment is
not the best way of motivating individuals
because they are capable of exercising self-
direction and self control.
• Besides monetary needs, the individual also
has self-ego and self-realization needs.
• Fulfillment of this needs can be achieved by
giving freedom of action as a responsibility of
the individual.
 Theory Y Management Implications
• If Theory Y holds, the firm can do many things to harness the
motivational energy of its employees:
• Decentralization and Delegation - If firms decentralize control and
reduce the number of levels of management, each manager will have
more subordinates and consequently will be forced to delegate some
responsibility and decision making to them.
• Job Enlargement - Broadening the scope of an employee's job adds
variety and opportunities to satisfy ego needs.
• Participative Management - Consulting employees in the decision
making process taps their creative capacity and provides them with
some control over their work environment.
• Performance Appraisals - Having the employee set objectives and
participate in the process of evaluating how well they were met.
 Achievement Theory
• Proposed by David McClelland
• An individual’s ambition to do things better or
achieve something is due to a very specific
motive or need- need for achievement
• This need is not something inborn but it can
be acquired through training and teaching the
trainees to think and behave in terms of
achievement
 Characteristics of people with a high
need for achievement
• They set moderately difficult but potentially
achievable goals.
• Likes situations in which he takes personal
responsibility for finding solutions to problems
• He depends on his own abilities, not on
chance
• He has tendency to get concrete feedback as
how well he is doing
• Achievement-motivated people take the
middle ground, preferring a moderate degree
of risk because they feel their efforts and
abilities will probably influence the outcome.
In business, this aggressive realism is the mark
of the successful entrepreneur
• Another characteristic of achievement-
motivated people is that they seem to be
more concerned with personal achievement
than with the rewards of success. They do not
reject rewards, but the rewards are not as
essential as the accomplishment itself.
• They are not interested in comments about
their personal characteristics, such as how
cooperative or helpful they are.
• Affiliation-motivated people might want social
or attitudinal feedback.
• Achievement-motivated people might want
job-relevant feedback. They want to know the
score.
 Achievement-motivated people as
managers
• when they are promoted, when their success
depends not only on their own work but on the
activities of others, they may be less effective.
Since they are highly job-oriented and work to
their capacity, they tend to expect others to do
the same. As a result, they sometimes lack the
human skills and patience necessary for being
effective managers of people who are competent
but have a higher need for affiliation than they
do. In this situation, their overemphasis on
producing frustrates these people and prevents
them from maximizing their own potential.
• while achievement-motivated people are
needed in organizations, they do not always
make the best managers unless they develop
their human skills. Being a good producer is
not sufficient to make an effective manager.
• McClelland has found that achievement-
motivated people are more likely to be
developed in families in which parents hold
different expectations for their children than
do other parents.
Barnard-Simon’s Theory of Equilibrium
• Inducements provided by the organization
must be kept in equilibrium with the
contributions made by the employee.
• Contends that the individual evaluates not
only his personal position but that of others as
well.
• People are motivated not only by the way
they get but also by what they see or believe
others are getting.
 Reinforcement Theory
• By B.F. Skinner
• According to him the following are the
components of motivated behavior:
• 1. Stimulus: the environmental setting in
which behavior occurs (performance)
• 2. Response: the behavior level itself
• 3. reinforcement: reward given for good
performance only
• Performance is conditioned by reward giving
• This theory assumes that the results or
consequences of an individual’s behavior will
determine his level of motivation.
 Maturity Theory
• Proposed by Chris Argyrie
• Contends that as people grow
(psychologically) and mature they strive
toward the highest level of need in Maslow’s
need hierarchy: self-actualization
• Immature people are dependent on others
and lack self-initiative, mature people are
independent.
 Immature Mature
Passive Active
Dependent Independent
Short term perspective Long term perspective
Subordinate position Equal or superordinate position
Lack of self Awareness Awareness of self

To motivate the employess Argyrie recommends a

psychologically healthy environment in which
individual can strive toward self-actualization, that is
“to become everything one is capable of becoming”
 Job Enlargement
Involves redesigning of jobs so that related activities
are added to those currently being performed. It is
the process of allowing individual workers to
determine their own working place (within limits) to
serve as their own inspectors by giving them
responsibility for quality control, to correct their
own mistakes, to be responsible for their own
machine set-up and repair, and to attain choice of
method. This method motivates the individual by
offering challenge, interest and meaning
 Job Enrichment
• A modern and more permanent approach to
motivate is through job enrichment
• Involves putting meaning into jobs. In other
words, it is putting Herzberg two-factor theory
into effect by building motivators into the job.
Theses motivators include achievement,
growth, responsibility, advancement and
recognition.
 references
• http://www.netmba.com/mgmt/ob/motivation/
maslow/
• http://www.healthline.com/images/gale/big/
gemd_02_img0100.jpg
• http://www.netmba.com/mgmt/ob/
motivation/herzberg/
• http://www.netmba.com/mgmt/ob/
motivation/mcgregor/
• http://www.accel-team.com/human_relations/
hrels_06_mcclelland.html
• http://www.netmba.com/mgmt/ob/
motivation/mcgregor/
• http://www.emc.maricopa.edu/faculty/
bradley/organizational_leadership/MGT251/
leadmotvroom.htm
• http://www.suite101.com/content/
motivational-management-a206104