MANAGEMENT COLLEGE OF SOUTHERN AFRICA

(MANCOSA)

ASSIGNMENT COVER SHEET

SURNAME MUKUVISI

FIRST NAME ZANELE

STUDENT NUMBER 124148

MODULE NAME ORGANISATIONAL BEHAVIOUR

ASSIGNMENT NUMBER 02

TUTOR’S NAME

EXAMINATION VENUE DURBAN

DATE SUBMITTED 27 SEPTEMBER 2013

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P. O. BOX 183

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SOUTH AFRICA

E-MAIL ADDRESS zanelemukuvisi@gmail.com

CONTACT NUMBERS

WORK:

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MOBILE: 079 271 1987

COURSE / INTAKE BCOM HONS HRM – JULY 2013

DECLARATION

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

SIGNATURE: Zanele Mukuvisi DATE: 27 SEPTEMBER 2013

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TABLE OF CONTENTS

ITEM PAGE

Table of Contents 2

Question 1 3

Question 2 10

Question 3 16

Question 4 20

Bibliography 24

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QUESTION ONE

There is much debate about the relationship between pay and motivation. Using

relevant theories on motivation, discuss in detail the circumstances around Alex’s

motivation experiences at the National Home Manufacturers. (25)

Motivation is defined as psychological forces that determine the direction of a person’s level

of effort, and a person’s level of persistence in the face of obstacles. The direction of a

person’s 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 organisation’s

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 Alex’s motivation experiences at the National Home

Manufacturers:

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(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

didn’t 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.

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(b) Maslow’s 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 self-

actualization 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

Maslow’s 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.

Maslow’s 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 Alex’s more into training

which meant a big increase in salary. Alex’s 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 Alex’s graduate schoolmates who majored in the same programme.

Despite all this the company C.E.O observed in the biweekly meetings that Alex

wasn’t happy. Martin noticed that Alex’s morale was low because he felt that he kept

teaching the same things repeatedly in his seminars, and business memos weren’t 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 Alex’s 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).

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(c) Alderfer’s 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 Alex’s

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 self-

actualisation. By training the floor workers Alex achieved his self esteem and self-

actualisation 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

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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) McClelland’s 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 master’s 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 company’s 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 Alex’s 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

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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 brass’s 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 Alex’s 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 master’s degree in English.

Though Alex was fresh from graduate school, Martin’s 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

position.

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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).

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QUESTION TWO

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. (25)

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 one’s 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

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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 Martin’s vision on how to take National Home

Manufacturers as a company to market leading, allowed him to be able to choose the

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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

organisation’s 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 master’s 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

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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 Martin’s 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 manager’s 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:

i. 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 manager’s 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

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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).

ii. 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 manager’s initiatives and wins support from others. Martin did

this by employing Alex who had a master’s degree and who by training the subordinates

made a large difference to the organisation’s 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).

iii. 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.

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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 committee’s 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).

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QUESTION THREE

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. (25)

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) Fielder’s 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). Fielder’s contingency theory of leadership proposes that

a fit between the leader’s need structure and the favourableness of the leader’s situation

determine the team’s effectiveness in work accomplishment. The leader’s 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 Alex’s 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).

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The conclusions of the Fielder model are that in highly unstructured situations the leader’s

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:

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(i) Directive leadership – The leader focuses on performance and work schedules.

(ii) Supportive behaviours – The manager demonstrates concern for employees’

well being and needs, while trying to create a pleasant work environment.

(iii) 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.

(iv) 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).

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(d) Emotional Intelligence Mode

A leader’s 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:

445).

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QUESTION FOUR

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. (25)

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 organisation’s 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 organisation’s human resources:

(Jones & George, 2011: 305).

(a) The Organisational Environment

An organisation’s environment is composed of institutions or forces outside the organisation

that potentially affect the organisation’s 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).

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(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 organisation’s 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 organisation’s 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.

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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 decision-

making. 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 organisation’s future strategy (Jones & George, 2011: 307).

(d) Human Resources

The important factor affecting an organisation’s 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 organisation’s external environment, strategy, technology and human

resources are the factors to be considered by managers seeking to design the best structure

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and culture for an organisation. The greater the level of uncertainty in the organisation’s

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 organisation’s 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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Mullins, L.J. (2010). Management & Organisational Behaviour. 9th Edition. London. UK:

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