Terms and Notes-HR Theories

8/12/2019 Terms and Notes-HR Theories

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OMET TISS NOTES/FUNDAS HR Theories

In economics , the term glass ceiling refers to "the unseen, yet unbreachable barrier that keeps

minorities and women from rising to the upper rungs of the corporate ladder, regardless of theirqualifications or achievements. "[1] Initially, the metaphor applied to barriers in the careers of womenbut was quickly extended to refer to obstacles hindering the advancement of minority men, as well aswomen .[2]

Matrix management is a type of organizational management in which people with similar skills arepooled for work assignments. For example, all engineers may be in one engineering department andreport to an engineering manager, but these same engineers may be assigned to different projects andreport to a different engineering manager or a project manager while working on that project.Therefore, each engineer may have to work under several managers to get their job done.

Six Sigma is a business management strategy originally developed by Motorola , USA in 1986 .[1][2] As of2010, it is widely used in many sectors of industry. Six Sigma seeks to improve the quality of processoutputs by identifying and removing the causes of defects (errors) andminimizing variability in manufacturing and business processes .[3] It uses a set of qualitymanagement methods, including statistical methods , and creates a special infrastructure of peoplewithin the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods .[3] Each SixSigma project carried out within an organization follows a defined sequence of steps and has quantifiedfinancial targets (cost reduction and/or profit increase) .[3] The term Six Sigma originated fromterminology associated with manufacturing, specifically terms associated with statistical modeling ofmanufacturin gprocesses . The maturity of a manufacturing process can be described by a sigma ratingindicating its yield, or the percentage of defect-free products it creates. A six sigma process is one inwhich 99.99966% of the products manufactured are statistically expected to be free of defects (3.4defects per million). Motorola set a goal of "six sigma" for all of its manufacturing operations, and thisgoal became a byword for the management and engineering practices used to achieve it.

Transactional analysis, commonly known as TA to its adherents, is an integrative approach to the theoryof psychology and psychotherapy . It is described as integrative because it has elementsof psychoanalytic , humanist and cognitive approaches. TA was developed by Canadian-bornUSpsychiatrist , Eric Berne , during the late 1950s. Transactional analysis is a powerful tool to bring abouthuman well being. In psychotherapy, transactional analysis utilizes a contract for specific changes

desired by the client and involves the "Adult" in both the client and the clinician to sort out behaviors,emotions and thoughts that prevent the development of full human potential. Transactional analystsintervene as they work with clients in a safe, protective, mutually respectful-OK/OK--- environment toeliminate dysfunctional behaviors and establish and reinforce positive relationship styles and healthyfunctioning.
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Id, ego and super-ego are the three parts of the psychic apparatus defined in Sigmund Freud's structuralmodel of the psyche; they are the three theoretical constructs in terms of whose activity and interactionmental life is described. According to this model of the psyche, the id is the set of uncoordinatedinstinctual trends; the ego is the organized, realistic part; and the super-ego plays the critical andmoralizing role .[1]Even though the model is structural and makes reference to an apparatus, the id, ego

and super-ego are functions of the mind rather than parts of the brain and do not correspond one-to-one with actual somatic structures of the kind dealt with by neuroscience .

The concepts themselves arose at a late stage in the development of Freud's thought: the "structuralmodel" (which succeeded his "economic model" and "topographical model") was first discussed in his1920 essay "Beyond the Pleasure Principle " and was formalised and elaborated upon three years later inhis "The Ego and the Id ". Freud's proposal was influenced by the ambiguity of the term "unconscious " and its many conflicting uses.

Alderfer's ERG theory

Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory. This theory posits thatthere are three groups of core needs existence, relatedness, and growth, hence the label: ERG theory.The existence group is concerned with providing our basic material existence requirements. Theyinclude the items that Maslow considered to be physiological and safety needs. The second group ofneeds are those of relatedness- the desire we have for maintaining important interpersonalrelationships. These social and status desires require interaction with others if they are to be satisfied,and they align with Maslow's social need and the external component of Maslow's esteem classification.Finally, Alderfer isolates growth needs' an intrinsic desire for personal development. These include theintrinsic component from Maslow's esteem category and the characteristics included under self-actualization.

Trait theory -- In psychology, Trait theory is a major approach to the study of human personality. Traittheorists are primarily interested in the measurement of traits, which can be defined as habitualpatterns of behavior, thought, and emotion. According to this perspective, traits are relatively stableover time, differ across individuals (e.g. some people are outgoing whereas others are shy), andinfluence behavior.This was pioneered by Gordon Allport.

Charismatic Leadership theory - Given by Max Weber. He said that there are a set of people/leaderswho are born with the charisma that makes them leaders. The attraction is due to the charisma and not

by any power of authority. A charismatic leader has a recognized rare gift that sets him apart from thefollowers, something unique that allows him to position himself among his peers almost as a savior.

Behavioral theories - It suggest that personality is a result of interaction between the individual and theenvironment. Behavioral theorists study observable and measurable behaviors, rejecting theories thattake internal thoughts and feelings into account.

Behavioral theorists include B. F. Skinner and John B. Watson.
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Psychodynamic Theory -- Psychodynamic theories of personality are heavily influenced by the work ofSigmund Freud, and emphasize the influence of the unconscious mind and childhood experiences onpersonality. Psychodynamic theories include Sigmund Freud's psychosexual stage theory and ErikErikson's stages of psychosocial development.

Freud believed the three components of personality were the id, the ego, and the superego. The id isresponsible for all needs and urges, while the superego for ideals and moral. The ego moderatesbetween the demands of the id, the superego, and reality.

Erikson believed that personality progressed through a series of stages, with certain conflicts arising ateach stage. Success in any stage depended upon successfully overcoming these conflicts.

Behavioral Theory: AssumptionsLeaders can be made, rather than are born.Successful leadership is based in definable, learnable behavior.

DescriptionBehavioral theories of leadership do not seek inborn traits or capabilities. Rather, they look at whatleaders actually do.If success can be defined in terms of describable actions, then it should be relatively easy for otherpeople to act in the same way. This is easier to teach and learn then to adopt the more ephemeral'traits' or 'capabilities'.DiscussionBehavioral is a big leap from Trait Theory, in that it assumes that leadership capability can be learned,rather than being inherent. This opens the floodgates to leadership development, as opposed to simplepsychometric assessment that sorts those with leadership potential from those who will never have the

chance.A behavioral theory is relatively easy to develop, as you simply assess both leadership success and theactions of leaders. With a large enough study, you can then correlate statistically significant behaviorswith success. You can also identify behaviors which contribute to failure, thus adding a second layer ofunderstanding.

great man theories -Great man theories assume that the capacity for leadership is inherent that greatleaders are born, not made. These theories often portray great leaders as heroic, mythic and destined torise to leadership when needed. The term "Great Man" was used because, at the time, leadership wasthought of primarily as a male quality, especially in terms of military leadership. Learn more about thegreat man theory of leadership.

Trait Theories: Similar in some ways to "Great Man" theories, trait theories assume that people inheritcertain qualities and traits that make them better suited to leadership. Trait theories often identifyparticular personality or behavioral characteristics shared by leaders. If particular traits are key features


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of leadership, then how do we explain people who possess those qualities but are not leaders? Thisquestion is one of the difficulties in using trait theories to explain leadership.

3. Contingency Theories:

Contingency theories of leadership focus on particular variables related to the environment that mightdetermine which particular style of leadership is best suited for the situation. According to this theory,no leadership style is best in all situations. Success depends upon a number of variables, including theleadership style, qualities of the followers and aspects of the situation.

Situational Theories:

Situational theories propose that leaders choose the best course of action based upon situationalvariables. Different styles of leadership may be more appropriate for certain types of decision-making.

Behavioral Theories:

Behavioral theories of leadership are based upon the belief that great leaders are made, not born.Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualitiesor internal states. According to this theory, people can learn to become leaders through teaching andobservation

Participative Theories:

Participative leadership theories suggest that the ideal leadership style is one that takes the input ofothers into account. These leaders encourage participation and contributions from group members and

help group members feel more relevant and committed to the decision-making process. In participativetheories, however, the leader retains the right to allow the input of others.

Management Theories:

Management theories, also known as transactional theories, focus on the role of supervision,organization and group performance. These theories base leadership on a system of rewards andpunishments. Managerial theories are often used in business; when employees are successful, they arerewarded; when they fail, they are reprimanded or punished. Learn more about theories oftransactional leadership.

8. Relationship Theories:

Relationship theories, also known as transformational theories, focus upon the connections formedbetween leaders and followers. Transformational leaders motivate and inspire people by helping groupmembers see the importance and higher good of the task. These leaders are focused on theperformance of group members, but also want each person to fulfill his or her potential. Leaders withthis style often have high ethical and moral standards.


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Rational-legal authority -This type of authority rests on the belief in the "legality" of formal rules and hierarchies, and in the rightof those elevated in the hierarchy to posses authority and issue commands.This type of authority is often seen as legitimate in bureaucratic systems, which enables impersonal,

specific and formal structures of modern companies. People will hence find this type of authoritylegitimate, if the authority is distributed to leaders based on e.g. rationality and capability.

Charismatic authority -This type of authority rests on the belief in an exceptional sanctity, heroism or exemplary character ofan individual, and on the normative patterns or orders revealed and issued by him or her.Charismatic leaders are often seen as legitimate in times of crisis or change when extraordinaryleadership is called for, and when this extraordinary leadership is recognized in the specific authorialfigure by followers.

According to Max Weber, only the traditional and rational-legal types of authority relationships arestable enough to provide the fundament for permanent administrative structures such as e.g. businessorganizations. Structures formed on charismatic authority, will therefore most like need to evolve intomore stable forms of authority. Max Weber (1864 - 1920) conceived of modernisation as a universalprocess of rationalisation that occurs as humanity becomes disenchanted with religious worldviews

According to Weber, rationalisation creates three spheres of value as the differentiated zones ofScience, Art and Law.[4] This fundamental disunity of reason constitutes the danger of modernity. Thisdanger arises not simply from the creation of separate institutional entities but through thespecialisation of cognitive, normative and aesthetic knowledge that in turn permeates and fragments

everyday consciousness. This all-pervasive 'rationalisation' is argued to have profoundly negative effectson socialisation, social integration and cultural production.

This 'disunity of reason' implies that culture moves from a traditional base in a consensual collectiveendeavour to forms which are rationalised by commodification and led by individuals with interestswhich are separated from the purposes of the population as a whole. This 'purposive rational action' issteered by the 'media' of the state, which substitute for oral language as the medium of the co-ordination of social action. There is then antagonism between these two principles of societalintegration - language, orientated to understanding, and 'media', which are systems of successorientated action.

The same 'disunity of reason' caused by the separation of science, morality and art means that culturalproduction moves from a collective basis to a commodified basis led by individuals orientated to theirown success rather than to a collective well being. The Exploding Cinema collective is clearly in thelanguage camp and keeps itself distanced from state 'media'. The point is that for Exploding Cinema tobe understood as part of this area of 'language' it needs to be seen as part of oral culture rather than theliterary culture of formal written discourse.


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zb g w F ct F ck H zb g, nt uc w F ct n 1959. Hesuggested that there are two kinds of factors affect motivation, and they do it in different ways:1) Hygiene factors: A series of hygiene factors create dissatisfaction if individuals perceive them asinadequate or inequitable, yet individuals will not be significantly motivated if these factors are viewedas adequate or good. Hygiene factors are extrinsic and include factors such as salary or remuneration,

job security and working conditions.2) Motivators: They are intrinsic factors such as sense of achievement, recognition, responsibility, andpersonal growth.The hygiene factors determine dissatisfaction, and motivators determine satisfaction. Herzberg theoryc nf m w t t f ct n t w c t t t t f m l t nto work in the same

g n z t n but t t f ct n n t lw ult n b tt f m nc . In t w ,

satisfaction does not correlate with productivity.

Ab m M l w H c f N

. Psychologist Abraham Maslow first introduced his concept of a hierarchy of needsIn his 1943 paper "A Theory of Human Motivation"1.his subsequent book, Motivation and Personality.2hierarchy suggests that people are motivated to fulfil basic needs before moving on to other needs.

M l w c of needs is most often displayed as a pyramid.o Lowest levels of the pyramid -the most basic needs,o The more complex needs are located at the top of the pyramid.o Needs at the bottom of the pyramid -basic physical requirements(need for food, water, sleep andwarmth).

o Once these lower-level needs have been met, people can move on to the next level of needs, whichare for safety and security.o As people progress up the pyramid, needs become increasingly psychological and social.o Soon, the need for love, friendship and intimacy become important.o Further up the pyramid, the need for personal esteem and feelings of accomplishment take priority.o Like Carl Rogers, Maslow emphasized the importance of self-actualization, which is a process ofgrowing and developing as a person to achieve individual potential.Types of NeedsMaslow believed that these needs are similar to instincts and play a major role in motivating behaviour.Physiological, security, social, and esteem needs are deficiency needs (also known as D-needs), meaning

that these needs arise due to deprivation. Satisfying these lower-level needs is important in order toavoid unpleasant feelings or consequences.Maslow termed the highest-level of the pyramid as growth needs (also known as being needs or B-needs). Growth needs do not stem from a lack of something, but rather from a desire to grow as aperson.Five Levels of the Hierarchy of NeedsThere are fiv ff nt l v l n M l w c f n


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Physiological NeedsThese include the most basic needs that are vital to survival, such as the need for water, air, food andsleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchybecause all needs become secondary until these physiological needs are met.

Security NeedsThese include needs for safety and security. Security needs are important for survival, but they are notas demanding as the physiological needs. Examples of security needs include a desire for steadyemployment, health insurance, safe neighborhoods and shelter from the environment.

Social NeedsThese include needs for belonging, love and affection. Maslow considered these needs to be less basicthan physiological and security needs. Relationships such as friendships, romantic attachments andfamilies help fulfill this need for companionship and acceptance, as does involvement in social,community or religious groups.

Esteem NeedsAfter the first three needs have been satisfied, esteem needs becomes increasingly important. Theseinclude the need for things that reflect on self-esteem, personal worth, social recognition andaccomplishment.

Self-actualizing Needs t g t l v l f M l w hierarchy of needs. Self-actualizing people are self-aware,

concerned with personal growth, less concerned with the opinions of others and interested fulfillingtheir potential.

McCLELLAND's -- theory of needs was developed by David McClelland and his associates. The theoryfocuses on three needs: achievement, power, and affiliation. A person's motivation and effectiveness incertain job functions are influenced by these. They are defined as follows :

* Need for achievement (nAch): The drive to excel, to achieve in relation to a set of standards, to striveto succeed.* Need for power: The need to make others behave in a way that they would not have behavedotherwise.* Need for affiliation: The desire for friendly and close interpersonal relationships.

The expectancy theory was proposed by Victor Vroom in 1964. Vroom stresses and focuses onoutcomes, and not on needs unlike Maslow and Herzberg. The theory states that the intensity of atendency to perform in a particular manner is dependent on the intensity of an expectation that theperformance will be followed by a definite outcome and on the appeal of the outcome to the individual.

Ex ct nc t t t t t m l m t v t n n utc m f w muc n n v u l


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wants a reward (valence), the assessment that the likelihood that the effort will lead to expectedperformance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). Inshort, Valence is the significance associated by an individual about the expected outcome. It is anexpected and not the actual satisfaction that an employee expects to receive after achieving the goals.Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by

factors such as possession of appropriate skills for performing the job, availability of right resources,availability of crucial information and getting the required support for completing the job.

Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor.They describe two contrasting models of workforce motivation.

Theory X --In this theory, which has been proven counter-effective in most modern practice, management assumesemployees are inherently lazy and will avoid work if they can and that they inherently dislike work. As aresult of this, management believes that workers need to be closely supervised and comprehensive

systems of controls developed. A hierarchical structure is needed with narrow span of control at eachand every level. According to this theory, employees will show little ambition without an enticingincentive program and will avoid responsibility whenever they can. The Theory X manager tends tobelieve that everything must end in blaming someone. He or she thinks all prospective employees areonly out for themselves. Usually these managers feel the sole purpose of the employee's interest in the job is money. A Theory X manager believes that his or her employees do not really want to work, thatthey would rather avoid responsibility and that it is the manager's job to structure the work andenergize the employee. One major flaw of this management style is it is much more likely to causeDiseconomies of Scale in large businesses.

Theory Y --In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. They possess theability for creative problem solving, but their talents are underused in most organizations. Given theproper conditions, theory Y managers believe that employees will learn to seek out and acceptresponsibility and to exercise self-control and self-direction in accomplishing objectives to which theyare committed. A Theory Y manager believes that, given the right conditions, most people will want todo well at work. They believe that the satisfaction of doing a good job is a strong motivation.

Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivation isthe main priority in the workplace in order to maximize output. In relations to Theory Y the organizationis trying to create the most symbiotic relationship between the managers and workers which relates toMaslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization the manager needsto promote the optimum workplace through morality, creativity, spontaneity, problem solving, lack ofprejudice, and acceptance of facts. It can relate to Esteem when the manger is trying to promote selfesteem, confidence, achievement, respect of others, and respect by others.


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Theory Z is a name applied to three distinctly different psychological theories. One was developed byAbraham H. Maslow in his paper Theory Z and the other is Dr. William Ouchi's so-called "JapaneseManagement" style popularized during the Asian economic boom of the 1980s. The third was developedby W. J. Reddin in Managerial Effectiveness.

FUNDAS ERG THEORY -Given by Alderfer.

E - Existence (Need for basic materials)R - Relatedness (Need for social relationships)G - Growth ( Need for self development)This theory is the redefination of Maslow's need hierarchy theory.

ERG Theories for Al duffers. (Story: All (Al) Engineers (ER) Go (G) Duffer when they read ERG Theory byAlderfer.)

Max Weber distinguishes three types of authority: Traditional authority, Rational-legalauthority and Charismatic authority.

Traditional authority -This type of authority rests on an established belief that leaders have a traditional andlegitimate right to exercise authority, where different traditional circumstances enable and

legitimize those in command to exercise authority.This traditional authority gives rise to patrimonial systems like e.g. patriarchal and feudalisticsystems and societies. These systems are however dependent upon the followers' acceptance ofthis authority, and that the followers see this type of authority as legitimate.

Rational-legal authority -This type of authority rests on the belief in the "legality" of formal rules and hierarchies, and inthe right of those elevated in the hierarchy to posses authority and issue commands.This type of authority is often seen as legitimate in bureaucratic systems, which enablesimpersonal, specific and formal structures of modern companies. People will hence find this

type of authority legitimate, if the authority is distributed to leaders based on e.g. rationalityand capability.

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Charismatic Leadership theory He said that there are a set of people/leaders who are bornwith the charisma that makes them leaders. The attraction is due to the charisma and not by anypower of authority

Types of Leadership --

1 . Autocratic leadership - Also knows as authorisation, directive or monothetic style. In this, themanager centralizes all power to himself.

2 . Participative Leadership - Also called democratic/consultative. In this the manager emphasises onconsultation and participation of subordinates. The level of motivation is high among the subordinates.

3. Free Rein -- In this style, manager determines policy, programmes and limitations for the action andthe entire process is left to subordinates. According to Max Weber, only the traditional and rational-legal types of authority relationships are stable enough to provide the fundament for permanentadministrative structures such as e.g. business organizations. Structures formed on charismatic

authority, will therefore most like need to evolve into more stable forms of authority

Trait theory Gordon Allport.

In psychology, Trait theory is a major approach to the study of human personality. Trait theorists areprimarily interested in the measurement of traits, which can be defined as habitual patterns of behavior,thought, and emotion. According to this perspective, traits are relatively stable over time, differ acrossindividuals (e.g. some people are outgoing whereas others are shy), and influence behavior. (Train andAirport, one should behave well in train as well as at airport as authorities measure them)/ Train atJordon Airport behaving well.

Behavioral theories - B. F. Skinner and John B. Watson .

- It suggests that personality is a result of interaction between the individual and the environment.Behavioral theorists study observable and measurable behaviors, rejecting theories that take internalthoughts and feelings into account. Behavioral theories of leadership do not seek inborn traits orcapabilities. Rather, they look at what leaders actually do. Behavioural is a big leap from Trait Theory,in that it assumes that leadership capability can be learned, rather than being inherent. This opens thefloodgates to leadership development,


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Psychodynamic theories - influenced by the work of Sigmund Freud,

IT emphasizes the influence of the unconscious mind and childhood experiences on. Psychodynamictheories include Sigmund Freud's psychosexual stage theory and Erik Erikson's stages ofpsychosocial development.

Freud believed the three components of personality were the id, the ego, and the superego . The idis responsible for all needs and urges, while the superego for ideals and moral. The ego moderatesbetween the demands of the id, the superego, and reality.

Erikson believed that personality progressed through a series of stages, with certain conflicts arisingat each stage. Success in any stage depended upon successfully overcoming these conflicts

great man theories -Thomas Carlyle, and in 1860 Herbert Spencer.-

Great man theories assume that the capacity for leadership is inherent that great leaders are bornnot made. These theories often portray great leaders as heroic, mythic and destined to rise toleadership when needed. The term "Great Man" was used because, at the time, leadership wasthought of primarily as a male quality, especially in terms of military leadership. Learn more about thegreat man theory of leadership. (Har bar Spencer (Plaza) Thomas ko hi Great Man kehta he kyukiThomas Edison ka invented bulb Car mein jalta he)

Contingency theories of leadership

Focus on particular variables related to the environment that might determine which particular style ofleadership is best suited for the situation. According to this theory, no leadership style is best in allsituations. Success depends upon a number of variables, including the leadership style, qualities of thefollowers and aspects of the situation.

Situational Theories:

Situational theories propose that leaders choose the best course of action based uponsituational variables. Different styles of leadership may be more appropriate for certain types of

decision-making.

Motivational Theory was given by Frederick Herzberg.

Herzberg was the first to show that satisfaction and dissatisfaction at work nearly always arose fromdifferent factors, and were not simply opposing reactions to the same factors, as had always previously


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been believed. (A Moti was Waiting (Motivational Theory) for Hygiene in 2(dual factor) companies viz.Fraud and Dick (Frederick) ----- A M t w w t ng f H g n n 2 c m n v z. F u nDick)Herzberg developed a 'TWO FACTOR THEORY' or 'DUAL FACTOR THEORY' which states that there are

are two kinds of factors affect motivation, and they do it in different ways:1) Hygiene factors : A series of hygiene factors create dissatisfaction if individuals perceive them as

inadequate or inequitable, yet individuals will not be significantly motivated if these factors are viewedas adequate or good. Hygiene factors are extrinsic and include factors such as salary or remuneration,

job security and working conditions.2) Motivators : They are intrinsic factors such as sense of achievement, recognition, responsibility, and

personal growth.The hygiene factors determine dissatisfaction, and motivators determine satisfaction. Herzberg theoryc nf m w t t f ct n t w c t t t t f m l t n t w k n t m

g n z t n but t t f ct n n t lw ult n b tt f m nc . In t w ,satisfaction does not correlate with productivity.

Participative leadership theories

suggest that the ideal leadership style is one that takes the input of others into account. These leadersencourage participation and contributions from group members and help group members feel morerelevant and committed to the decision-making process. In participative theories, however, the leaderretains the right to allow the input of others.

Management theories , also known as transactional theories ,Focus on the role of supervision, organization and group performance. These theories baseleadership on a system of rewards and punishments. Managerial theories are often used inbusiness; when employees are successful, they are rewarded; when they fail, they arereprimanded or punished. Relationship theories, also known as transformational theories ,

Focus upon the connections formed between leaders and followers. Transformational leaders motivateand inspire people by helping group members see the importance and higher good of the task. Theseleaders are focused on the performance of group members, but also want each person to fulfil his or herpotential. Leaders with this style often have high ethical and moral standards.

The Myers-Briggs Type Indicator (MBTI )

Assessment is a psychometric questionnaire designed to measure psychological preferences in howpeople perceive the world and make decisions.

(Mayors and Brigadier were making decision by measuring psychological preferences)


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Big Five Theory

In contemporary psychology, the "Big Five" factors (or Five Factor Model; FFM) of personality are fivebroad domains or dimensions of personality which are used to describe human personality. The Big Fivefactors are openness, conscientiousness, extraversion, agreeableness, and neuroticism (OCEAN).

O nn ct n t ng nt ll ctu l cu t n f nc f n v lt n v t . C n c nt u n x m l b b ng c l n , g n z , n c v m nt-oriented.Extraversion is displayed through a higher degree of sociability, assertiveness, and talkativeness.Agreeableness refers to being helpful, cooperative, and sympathetic towards othersNeuroticism refers to degree of emotional stability, impulse control, and anxiety.

Hierarchy of Needs - Abraham Maslows Maslows hierarchy of needs is most often displayed as apyramid.o Lowest levels of the pyramid -the most basic needs,o The more complex needs are located at the top of the pyramid.o Needs at the bottom of the pyramid -basic physical requirements(need for food, water, sleep andwarmth).o Once these lower-level needs have been met, people can move on to the next level of needs, whichare for safety and security.o As people progress up the pyramid, needs become increasingly psychological and social.o Soon, the need for love, friendship and intimacy become important.

o Further up the pyramid, the need for personal esteem and feelings of accomplishment take priority.o Like Carl Rogers, Maslow emphasized the importance of self-actualization, which is a process ofgrowing and developing as a person to achieve individual potential Maslow termed the highest-level ofthe pyramid as growth needs (also known as being needs or B-needs). Growth needs do not stem from alack of something, but rather from a desire to grow as a person.Five Levels of the Hierarchy of Needs

f v ff nt l v l n M l w c f n Physiological Needs These include the most basic needs that are vital to survival, such as the need for water, air, food andsleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy

because all needs become secondary until these physiological needs are met.

Security Needs These include needs for safety and security. Security needs are important for survival, but they are notas demanding as the physiological needs. Examples of security needs include a desire for steadyemployment, health insurance, safe neighborhoods and shelter from the environment.


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Social NeedsThese include needs for belonging, love and affection. Maslow considered these needs to be less basicthan physiological and security needs. Relationships such as friendships, romantic attachments andfamilies help fulfill this need for companionship and acceptance, as does involvement in social,community or religious groups.

Esteem Needs After the first three needs have been satisfied, esteem needs becomes increasingly important. Theseinclude the need for things that reflect on self-esteem, personal worth, social recognition andaccomplishment.

Self-actualizing Needs t g t l v l f M l w c f n . S lf -actualizing people are self-aware,

concerned with personal growth, less concerned with the opinions of others and interested fulfillingtheir potential.

theory of needs David McClelland and his associates.

The theory focuses on three needs: achievement, power, and affiliation. A person's motivation andeffectiveness in certain job functions are influenced by these. They are defined as follows :

* Need for achievement (nAch): The drive to excel, to achieve in relation to a set of standards, to striveto succeed.* Need for power: The need to make others behave in a way that they would not have behavedotherwise.* Need for affiliation: The desire for friendly and close interpersonal relationships.

The expectancy theory was proposed by Victor Vroom in 1964.

Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and Herzberg. The theorystates that the intensity of a tendency to perform in a particular manner is dependent on the intensity of

an expectation that the performance will be followed by a definite outcome and on the appeal of theoutcome to the individual.

Ex ct nc t t t t t m l m t v t n n utc m f w muc n n v u lwants a reward (valence), the assessment that the likelihood that the effort will lead to expectedperformance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). Inshort, Valence is the significance associated by an individual about the expected outcome. It is an


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expected and not the actual satisfaction that an employee expects to receive after achieving the goals.Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced byfactors such as possession of appropriate skills for performing the job, availability of right resources,availability of crucial information and getting the required support for completing the job.

Theory X and Theory Y are theories of human motivation - Douglas McGregor

Theory X --In this theory, which has been proven counter-effective in most modern practice, management assumesemployees are inherently lazy and will avoid work if they can and that they inherently dislike work. As aresult of this, management believes that workers need to be closely supervised and comprehensivesystems of controls developed. A hierarchical structure is needed with narrow span of control at each

and every level

. Theory Y --In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. They possess theability for creative problem solving, but their talents are underused in most organizations. Given theproper conditions, theory Y managers believe that employees will learn to seek out and acceptresponsibility and to exercise self-control and self-direction in accomplishing objectives to which theyare committed

Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivationis the main priority in the workplace in order to maximize output. In relations to Theory Y theorganization is trying to create the most symbiotic relationship between the managers and workerswhich relates to Maslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization themanager needs to promote the optimum workplace through morality, creativity, spontaneity, problemsolving, lack of prejudice, and acceptance of facts. It can relate to Esteem when the manger is trying topromote self esteem, confidence, achievement, respect of others, and respect by others.

Theory Z is a name applied to three distinctly different psychological theories. One was developed by

Abraham H. Maslow in his paper Theory Z and the other is Dr. William Ouchi's so-called "JapaneseManagement" style popularized during the Asian economic boom of the 1980s. The third wasdeveloped by W. J. Reddin in Managerial Effectiveness.


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b k HR V lu P t n ut b ________?

4 minutes ago Like

Sakshi Kukreja David Ulrich and Wayne Brockbank

230BASICS: ** Henry Fayol considers management to consist of six functions: forecasting, planning,organizing, commanding, coordinating and controlling. He was one of the most influentialcontributors to modern concepts of management.** Mary Parker Follett (1868 1933), defined management as "the art of getting things donethrough people". She described management as philosophy**In 20th century ,basically many mangmnt writers eveolved lyk...taylor,adamsmith,etc....and they gave their books also..20th century .....1)Henry R. Towne's Science of management in the 1890s, Frederick Winslow Taylor's ThePrinciples of Scientific Management2)The Harvard Business School offered the first Master of Business Administration degree(MBA) in 1921. People like Henri Fayol (1841 1925) and Alexander Church described thevarious branches of management and their inter-relationships. In the early 20th century,people like Ordway Tead (1891 1973), Walter Scott and J. Mooney applied the principles ofpsychology to management, while other writers, such as Elton Mayo (1880 1949), MaryParker Follett (1868 1933), Chester Barnard (1886 1961), Max Weber (1864 1920),Rensis Likert (1903 1981), and Chris Argyris (1923 - ) approached the phenomenon ofmanagement from a sociological perspective.Peter Drucker (1909 2005) wrote one of the earliest books on appliedmanagement: Concept of the Corporation (published in 1946).H. Dodge, Ronald Fisher (1890 1962), and Thornton C. Fry introduced statistical techniquesinto management-studies. In the 1940s, Patrick Blackett combined these statistical theorieswith microeconomic theory and gave birth to the science of operations research. Operationsresearch, sometimes known as "management science" (but distinct from Taylor's scientificmanagement), attempts to take a scientific approach to solving management problems,particularly in the areas of logistics and operations.Some of the more recent developments include the Theory of Constraints, management by

objectives, reengineering, Six Sigma and various information-technology-driven theoriesTowards the end of the 20th century, business management came to consist of six separatebranches, namely:Human resource managementOperations management or production managementStrategic managementMarketing managementFinancial managementInformation technology management responsible for management information systems
http://www.facebook.com/profile.php?id=1381184210http://www.facebook.com/profile.php?id=1381184210http://www.facebook.com/profile.php?id=1381184210


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Basic functions of Management: (By Henry Fayol)

Planning Organizing Staffing . Leading/directing Controlling/monitoring . Motivation

Basic roles of Management: (By Henry Mintsberg)

Interpersonal : roles that involve coordination and interaction with employees. Informational : roles that involve handling, sharing, and analyzing information. Decisional : roles that require decision-making.

Management skills

Political : used to build a power base and establish connections. Conceptual : used to analyze complex situations. Interpersonal : used to communicate, motivate, mentor and delegate. Diagnostic : the ability to visualise most appropriate response to a situation .

**Levels of management 1)top level ---jaise CEO,etc2)middle level ---jaise aaka managers3)low level-----jaise team leadsSpiritual capital Theory is a new emerging approach to business purpose, and becomesmore and more influenctial due to the recent financial crisis.Contract theory

Advocates of business contract theory believe that a business is a community of participants

organized around a common purpose. These participants have legitimate interests in howthe business is conducted and, therefore, they have legitimate rights over its affairs. Mostcontract theorists see the enterprise being run by employees and managers as a kind ofrepresentative democracy.Stakeholder theory Stakeholder theorists believe that people who have legitimate interests in a business alsoought to have voice in how. The obvious non-owner, stakeholders are the employees.However, stakeholder theorists take contract theory a step further, maintaining that peopleoutside of the business enterprise ought to have a say in how the business operates. Thus,for example, consumers, even community members who could be affected by what thebusiness does, for example, by the pollutants of a factory, ought to have some control overthe business.

SCIENTIFIC MANAGEMENT

F.W. Taylor - Principles of Scientific Management Use of scientific methods to define the one best way for a job to be done Perspective of improving the productivity and efficiency of manual workers Applied the scientific method to shop floor jobs Frank and Lillian Gilbreth Use of motion pictures to study hand-and-body movements Therbligs - classification system for 17 basic hand motions


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Story: As girls are very concerned about dimensions and all of their dresses.. so.. Funda: (A ladies tailorneeds to be a scientist) Scientific Theory by FW Taylor ;)

TAYLORS FOUR PRINCIPLES OF MANAGEMENT

Develop a science for each element of an individuals work, which will replace the old rule -of-thumb method.

Scientifically select and train, teach, and develop the worker. (Previously, workers chosetheir own work and trained themselves as best they could.)

Heartily cooperate with the worker so as to ensure that all work is done in accordance withthe principles of the science that has been developed.

Divide all work and responsibility equally between management and workers.

General Principles of Management by Henry Fayol Division of Labor by Adam Smith (FATHER OF ECONOMICS) ( Funda: Let's DIVIDE(Division)ADAM Sandler and Will Smith's name and join them it will give.. Adam Smith who is a Father of ModernEconomics) Scientific Management by Frederick Winslow Taylor Bureaucracy by Max Weber (Bureaucracy in India is a web its difficult to get rid ofit) Motivation Theories by Maslow, Alderfer, Herzberg, McCelland, Vroom, Adams andLocke (HALV MAM: Herzberg , Alderfer Locke Vroom, Maslow, Adams, McCelland,,When a student was made a Murga in class he could see only HALV MAM and themam was Moti)

HENRY FAYOL'S :

Concerned with making the overall organization more effective Developed theories of what constituted good management practice .proposed a universal

set of management functions.published principles of management .fundamental, teachable

rules of management

14 principles as the general principles management :1. Division of work: 2. Authority and Responsibility: 3. Discipline: 4. Unity of command: 5. Unity of direction: One head and one plan for a group of activities having the sameobjective. (Note: Organizations write and announce vision and mission statements,objectives and strategies so that the organizations align and go in the same direction).6. Subordination of individual interest to the general interest: This principle calls tomind the fact that in a business the interest of one employee or group of employees shouldnot prevail over that of the concern, that the interest of the home should come before thatof its members and that interest of the state should have pride of place over that of onecitizen or group of citizens. (Note: What about the invisible hand concept of Adam Smith?) 7. Remuneration (payment/compensation) of personnel: .8. Centralization: Everything which goes to increase the importance of the subordinatesrole is decentralization, everything which goes to reduce it is centralization. The question ofcentralization or decentralization is a simple question of proportion, it is a matter of findingthe optimum degree for the particular concern.The degree of centralization must vary according to different cases:


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If the moral worth of the manager, his strength, intelligence, experience and swiftness ofthought allow him to have a wide span of activities he will be able to carry centralization.

If conversely, he prefers to have greater recourse to the experience of his colleagues whilstreserving himself the privilige of giving central directives, he can effect considerabledecentralization.

9. Scalar Chain (line of authority): 10. Order: Fayol defines the formula for order as a place for everyone and everyone in hisplace. He classifies two types of order as material order , which means everthing must bein its appointed place and social order, which presupposes the most succesful execution ofthe two most difficult managerial activities: good organization and good selection. Socialorder demands precise knowledge of the human requirements and resources of the concernand a constant balance between these requirements and resources.11. Equity: Desire for equity and equality of treatment are aspirations to be taken intoaccount in dealing with employees. (Note: In motivation theories of organizationalbehaviour equity is important. John Stacey Adams, (behavioral psychologist) asserted thatemployees seek to maintain equity between the inputs that they bring to a job and theoutcomes that they receive from it against the perceived inputs and outcomes of others in1963.12. Stability of tenure of personnel: Time is required for an employee to get used tonew work and succeed in doing it well, always assuming that he possesses the requisiteabilities. If when he has got used to it, or before then, he is removed, he will not have hadtime to render worthwhile service. If this be repeated indefinetly the work will never byproperly done.13. Initiative: Much tact and some integrity are required to inspire and maintaineveryones initiative, within the limits imposed, by respect for authority and for discipline.The manager must be able to sacrifice some personal vanity in order to grant this sort ofsatisfaction to subordinates.14. Esprit de corps: Means Union is strength . Harmony, union among the personnel ofa concern, is great strenght in that concern. .(a) Personnel must not be split up. Dividing enemy forces to weaken them is clever, but

dividing ones own team is a grave sin against the busi ness.(b) Abuse of written communications. Wherever possible, contacts should be verbal;there is gain in speed, clarity and harmony.ADAM SMITH'S :

division of labour ( breakdown of jobs into narrow and repetitive tasks increasedproductivity)

Industrial Revolution (substitution of machine power for human power) Books Authored-

1) The theory of Model sentiments2) An Inquiry into the Nature and Causes of the Wealth of Nations , Popularly known as The

Wealth of Nations .

Of the Division of Labor In the first chapter of The Wealth of Nations, Adam Smith, explains the optimumorganization of a pin factory. Traditional pin makesrs could produce only a few dozen pins aday. However, when organized in a factory with each worker performing a limited operation,they could produce tens of thousands a day. This was the reason why Smith favoreddivision of labor.Adam Smiths famous invisible hand statement can be read from his original words:


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As every individual, therefore, endeavours as much as he can both to employ his capital inthe support of domestick industry, and so to direct that industry that its produce may be ofthe greatest value; every individual necessarily labours to render the annual revenue of thesociety as great as he can. He generally, indeed, neither intends to promote the publicinterest, nor knows how much he is promoting it . By preferring the support of domestic tothat of foreign industry, he intends only his own security; and by directing that industry in

such a manner as its produce may be of the greatest value, he intends only his own gain,and he is in this , as in many other eases, led by an invisible hand to promote an end whichwas no part of his intention . Nor is it always the worse for the society that it was no part ofit. By pursuing his own interest he frequently promotes that of the society more effectuallythan when he really intends to promote it . I have never known much good done by thosewho affected to trade for the public good . TYLOR'S-----Scientific Management :Workmen thought that it is for their best interests to go slow instead of to go fast becausethey believed that if they were to double their output in the coming year, half of them wouldbe out of a job before the year was out. Taylor asserted that this is a fallacious view.According to him the truth is: even though that labor-saving device may turn out ten,twenty, thirty times that output that was originally turned out by men in that trade, theresult has universally been to make work for more men in that trade, not work for lessmen. He justified his view with the efficiency increase in cotton industry. In Manchester, in1840, there were 5,000 weavers and at the time of Taylor it was 265.000. He asked thequestion: has the introduction of labor-saving machinery (in cotton industry inManchester), which has multiplied the output per man by tenfold, thrown men out ofwork? . Mental Revolution First a change required is in the thinking of the workers...that even if the machines arepromoted ,the men labour would be necessary in industries...!!!Four Principles of Scientific Management: Taylor explained the Principles of Scientific Management in his book which was published in1911:

Replace rule of thumb work methods with methods based on a scientific study of the tasks.Scientifically select and then train, teach, and develop the workman, whereas in the pastthe employee (or workmen) chose his own work and trained himself as best he could.Provide Detailed instruction and supervision of each worker i n the performance of thatworkers discrete task Divide work nearly equally between managers and workers, so that the managers applyscientific management principles to planning the work and the workers actually perform thetasks.MAX WEBER'S:----Characteristics of Bureaucracy Bureaucracy refers to the management of large organizations characterized by hierarchy,fixed rules, impersonal relationships, rigid adherence to procedures, and a highly specializeddivision of labor.Weber suggests the characteristics of bureaucracy as following :1. There is the principle of fixed official jurisdictional areas , which are generally orderedby rules, that is, by laws or administrative regulations.2. The principles of office hieararchy and of levels of grade authority mean a firmlyordered system of super and subordination in which there is a supervision of the loweroffices by the higher ones.3. The management of modern offices is based upon written documents (the files),which are preserved in their original or draught form.


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4. Office management, at least all specialized office management and such managementis distinctly modern usually presupposes thorough and expert training .5. When the office is fully developed, official activity demands the full working capacityof the official , irrespective of the fact that his obligatory time in the bureau may befirmly delimited .6- The management of the office follows general rules which are more or less stable, more

or less exhaustive, and which can be learned.Position of the official Weber asserts that office holding is a vocation . The position of the official is in the natureof a duty. Major characteristic of Weberian Bureaucracy is devoted to impersonal andfunctional purposes. Entrance into an office is considered an acceptance of a specificobligation of faithful management in return for a secure existence. This means tenureshipand job security.Weber suggested that the personal position of the official is patterned in the following way:1. Whether official is in a private office or a public bureau, the modern official always strivesand usually enjoys a distinct social esteem as compared with the governed. His socialposition is guaranteed by the prescriptive rules of rank order and, for the political official, byspecial definitions of the criminal code against insults of the officials and contempt ofstate and church authorities.2. The pure type of bureaucratic official is appointed by a superior authority. An officialelected by the governed is not a purely bureaucratic figure. In principle, an official who is soelected has an autonomous position opposite the superordinate official. The elected officialdoes not derive his position from above but from below. The official who is not elect edbut appointed by a chief normally functions more exactly, from a technical point of view,because, all other circumstances being equal, it is more likely that purely functional pointsof consideration and qualities will determine his selection and career.3. Normally, the position of the official is held for life, at least in public bureaucracies; As afactual rule, tenure for life is presupposed, even where the giving of notice or periodicreappointment occurs.4. The official receives the regular pecuniary compensation of a normally fixed salary andthe old age security provided by a pension . The salary is not measured like a wage in

terms of work done, but according to status, that is, according to the kind of function (the rank ) and, in addition, possibly, according to the length of service.5. The official is set for a career within the hierarchical order of the public service. Hemoves from the lower, less important, and lower paid to the higher positions.A Classification of Motivation Theories (Content vs. Process) Motivation theories can be classified broadly into two different perspectives: Content andProcess theories. Content Theories deal with what motivates people and it is concernedwith individual needs and goals. Maslow, Alderfer, Herzberg and McCelland studiedmotivation from a content perspective. Process Theories deal with the process ofmotivation and is concerned with how motivation occurs. Vroom, Porter & Lawler, Adamsand Locke studied motivation from a process perspec tive.1. Content Theories about Motivation

Abraham Maslows Hierarchy of Needs

. Psychologist Abraham Maslow first introduced his concept of a hierarchy of needs

In his 1943 paper "A Theory of Human Motivation"1. his subsequent book, Motivation and Personality .2


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hierarchy suggests that people are motivated to fulfil basic needs before moving on to otherneeds.

Maslows hierarchy of needs is most often displayed as a pyramid. o Lowest levels of the pyramid -the most basic needs, o The more complex needs are located at the top of the pyramid. o Needs at the bottom of the pyramid -basic physical requirements(need for food, water,

sleep and warmth). o Once these lower-level needs have been met, people can move on to the next level of

needs, which are for safety and security. o As people progress up the pyramid, needs become increasingly psychological and social. o Soon, the need for love, friendship and intimacy become important. o Further up the pyramid, the need for personal esteem and feelings of accomplishment

take priority. o Like Carl Rogers, Maslow emphasized the importance of self-actualization, which is a

process of growing and developing as a person to achieve individual potential.

Types of Needs Maslow believed that these needs are similar to instincts and play a major role in motivatingbehaviour. Physiological, security, social, and esteem needs are deficiency needs (alsoknown as D-needs ), meaning that these needs arise due to deprivation. Satisfying theselower-level needs is important in order to avoid unpleasant feelings or consequences.Maslow termed the highest-level of the pyramid as growth needs (also known as beingneeds or B-needs ). Growth needs do not stem from a lack of something, but rather from adesire to grow as a person.Five Levels of the Hierarchy of Needs There are five different levels in Maslows hierarchy of needs:

1. Physiological Needs

These include the most basic needs that are vital to survival, such as the need for water,air, food and sleep. Maslow believed that these needs are the most basic and instinctiveneeds in the hierarchy because all needs become secondary until these physiological needsare met.

1. Security Needs

These include needs for safety and security. Security needs are important for survival, butthey are not as demanding as the physiological needs. Examples of security needs include adesire for steady employment, health insurance, safe neighborhoods and shelter from theenvironment.

1. Social Needs

These include needs for belonging, love and affection. Maslow considered these needs to beless basic than physiological and security needs. Relationships such as friendships, romanticattachments and families help fulfill this need for companionship and acceptance, as doesinvolvement in social, community or religious groups.


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1. Esteem Needs

After the first three needs have been satisfied, esteem needs becomes increasinglyimportant. These include the need for things that reflect on self-esteem, personal worth,social recognition and accomplishment.

1. Self-actualizing Needs

This is the highest level of Maslows hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others andinterested fulfilling their potential.

Alderfers ERG T heory http://ozgurzan.files.wordpress.com/2011/02/alderger-erg-theory.jpgIn 1969, Clayton P.Alderfer, simplified Maslows theory by categorizing hierarchy of n eeds into three

categories:

Physiological and Safety needs are merged in Existence Needs , Belonging needs is named as Relatedness Needs, Self-esteem and Self-actualization needs are merged in Growth Needs

ERG Theories for Al duffers. (Story: All (Al) Engineers (ER) Go (G) Duffer when they read ERGTheory by Alderfer.)

Herzbergs Two Factor Theory http://ozgurzan.files.wordpress.com/2011/02/herzberg.jpgFrederick Herzberg, introducedhis Two Factor Theory in 1959. He suggested that there are two kinds of factors affect

motivation, and they do it in different ways:1) Hygiene factors: A series of hygiene factors create dissatisfaction if individuals perceivethem as inadequate or inequitable, yet individuals will not be significantly motivated if thesefactors are viewed as adequate or good. Hygiene factors are extrinsic and include factorssuch as salary or remuneration, job security and working conditions.2) Motivators: They are intrinsic factors such as sense of achievement, recognition,responsibility, and personal growth.The hygiene factors determine dissatisfaction, and motivators determine satisfaction.Herzberg theory conforms with satisfacti on theories which assert that a satisfied employeetends to work in the same organization but this satisfaction does not always result in betterperformance. In other words, satisfaction does not correlate with productivity .McClellands Achievement Need Theory in his 1961 book named as The Achieving Society, David McClelland identified three basicneeds that people develop and acquire from their li fe experiences .

(A Moti was Waiting (Motivational Theory) for Hygiene in 2(dual factor) companies viz. Fraud and Dick(Frederick) ----- A M t w w t ng f H g n n 2 c m n v z. F u n D ck)

Needs for achievement : The person who have a high need for achievement seeksachievement and tries to attain challenging goals. There is a strong need for feedback as to
http://ozgurzan.files.wordpress.com/2011/02/alderger-erg-theory.jpgInhttp://ozgurzan.files.wordpress.com/2011/02/alderger-erg-theory.jpgInhttp://ozgurzan.files.wordpress.com/2011/02/herzberg.jpgFrederickhttp://ozgurzan.files.wordpress.com/2011/02/herzberg.jpgFrederickhttp://ozgurzan.files.wordpress.com/2011/02/herzberg.jpgFrederickhttp://ozgurzan.files.wordpress.com/2011/02/alderger-erg-theory.jpgIn


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achievement and progress, and a need for a sense of accomplishment. The person whohave a high achievement need likes to take personal responsibility.

Needs for affiliation : The person who have a high need for affiliation needs harmoniousrelationships with people and needs to be accepted by other people. (People-oriented ratherthan task-oriented).

Needs for power : The person who have a need for power wants to direct and command

other people. Most managers have a high need for power.

Although these categories of needs are not exlusive, generally individuals develop adominant bias or emphasis towards one of the three needs. Entrepreneurs usually have highdegree of achivement needs.(Mc CANT Achieve affiliation and power)Incentive Theory Incentive theory suggests that employee will increase her/his effort to obtain a desiredreward. This is based on the general principle of reinforcement. The desired outcome isus ually money. This theory is coherent with the early economic theories where man issupposed to be rational and forecasts are based on the principle of economic man. 2. Process Theories about Motivation Expectancy Theory Expectancy Theory argues that humans act according to their conscious expectations that aparticular behavior will lead to specific desirable goals.Victor H. Vroom, developed the expectancy theory in 1964, producing a systematicexplanatory theory of workplace motivation. Theory asserts that the motivation to behave ina particular way is determined by an individuals expectation that behaviour will lead to aparticular outcome, multiplied by the preference or valence that person has for thatoutcome.Three components of Expectancy theory are:Expectancy : E -> P. The belief of the person that her/his effort (E) will result in attainmentof desired performance (P) goals.Instrumentality : P -> R. The belief of the person that she/he will receive a reward (R) ifthe performance (P) expectation is met.

Valence : The value of the reward according to the person. (e.g. Is the reward attractive tothe person?)The equation suggests that human behaviour is directed by subjective probability.

VroommmVrooooom (A biker is turning escalator of his bike high wih Vroom Vrooom Soundand EXPECTS( Expectancy Theory ) that his Instrument (bike) will be balanced(valance)even in vroooooming high speed)Goal Theory Edwin Locke proposed Goal Theory in 1968, which proposes that motivation andperformance will be high if individuals are set specific goals which are challenging , butaccepted , and where feedback is given on performance .The two most important findings of this theory are:Setting specific goals (e.g. I want to earn a million before I am 30) generates higherlevels of performance than setting general goals (e.g. I want to earn a lot of money).The goals that are hard to achieve are linearly and positively connected to performance.The harder the goal, the more a person will work to reach it.Goal Theory is by Edwin Locke. Funda: When Ed Locked a Goal, his team win(won). John Stacey Adams Equity Theory Developed by John Stacey Adams in 1963, Equity Theory suggests that if the individualperceives that the rewards received are equitable, that is, fair or just in comparison withthose received by others in similar positions in or outside the organization, then theindividual feels satisfied. Adams asserted that employees seek to maintain equity between


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the inputs that they bring to a job and the outcomes that they receive from it against theperceived inputs and outcomes of others.

CHESTER BERNARD----Chester Barnard looked at organizations as systems of cooperation of human activity, andwas worried about the fact that they are typically rather short-lived. Firms that last more

than a century are rather few, and the only organization that can claim a substantial age isthe Catholic Church.According to Chester Barnard, this happens because organizations do not meet the twocriteria necessary for survival: effectiveness and efficiency .He defines efficiency of an organization as the degree to which that organization is able tosatisfy the motives of the individuals. If an organization satisfies the motives of itsparticipants, and attains its explicit goals, cooperation among them will last.Two of his theories are particularly interesting: the theory of authority and the theoryof incentives. Both are seen in the context of a communication system that should bebased in seven essential rules:

The Channels of communication should be definite Everyone should know of the channels of communication Everyone should have access to the formal channels of communication Lines of communication should be as short and as direct as possible Competence of persons serving as communication centers should be adequate The line of communication should not be interrupted when organization is functioning Every communication should be authenticated

Theory of authority:One might say that managers should treat workers respectfully andcompetently to obtain authority.In the theory of incentives, he sees two ways of convincing subordinates to cooperate:tangible incentives and persuasion. He gives great importance to persuasion, much morethan to economic incentives. He described four general and four specific incentive.McGregor's XY Theory remains central to organizational development, and toimproving organizational culture. Theory x ('authoritarian management' style)

The average person dislikes work and will avoid it he/she can. Therefore most people must be forced with the threat of punishment to work towards

organisational objectives. The average person prefers to be directed; to avoid responsibility; is relatively unambitious,

and wants security above all else.

Theory y ('participative management' style)

Effort in work is as natural as work and play.

People will apply self-control and self-direction in the pursuit of organisational objectives,without external control or the threat of punishment.

Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving

organisational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilised.

Characteristics of The x Theory Manager


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What are the characteristics of a Theory X manager? Typically some, most or all of these: results-driven and deadline-driven, to the exclusion of everything else intolerant issues deadlines and ultimatums distant and detached aloof and arrogant

elitist short temper shouts issues instructions, directions, edicts

etc..........................all negative !!!!!!!!!!!!!!!!!!!!!!Theory z - William Ouchi is often referred to as the 'Japanese' management style, which is essentially what it is. It'sinteresting that Ouchi chose to name his model 'Theory Z', which apart from anything elsetends to give the impression that it's a Mcgregor idea. One wonders if the idea was notconsidered strong enough to stand alone with a completely new name... Nevertheless,Theory Z essentially advocates a combination of all that's best about theory Y and modernJapanese management, which places a large amount of freedom and trust with workers,and assumes that workers have a strong loyalty and interest in team-working and theorganisation.Theory Z also places more reliance on the attitude and responsibilities of the workers,whereas Mcgregor's XY theory is mainly focused on management and motivation from themanager's and organisation's perspective.Mary Parker Follett Mary Parker Follett (1868 1933) was an American social worker, consultant, and author ofbooks on democracy, human relations, and management. She worked as a managementand political theorist, introducing such phrases as "conflict resolution," "authority andpower," and "the task of leadership."HENRY FORD:--Henry Ford was an American industrialist, the founder of the Ford Motor Company,

Mayo Elton Mayo (1880 1949) believed that workers are not just concerned with money butcould be better motivated by having their social needs met whilst at work (something thatTaylor ignored). He introduced the Human Relation School of thought, which focused onmanagers taking more of an interest in the workers, treating them as people who haveworthwhile opinions and realising that workers enjoy interacting together.Mayo conducted a series of experiments at the Hawthorne factory of the Western ElectricCompany in ChicagoHe isolated two groups of women workers and studied the effect on their productivity levelsof changing factors such as lighting and working conditions.He expected to see productivity levels decline as lighting or other conditions becameprogressively worseWhat he actually discovered surprised him: whatever the change in lighting or workingconditions, the productivity levels of the workers improved or remained the same.Herzberg

Frederick Herzberg (1923-) had close links with Maslow and believed in a two-factor theoryof motivation. He argued that there were certain factors that a business could introduce thatwould directly motivate employees to work harder ( Motivators ). However there were alsofactors that would de-motivate an employee if not present but would not in themselvesactually motivate employees to work harder ( Hygienefactors )Motivators are more concerned with the actual job itself. For instance how interesting thework is and how much opportunity it gives for extra responsibility, recognition and


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promotion. Hygiene factors are factors which surround the job rather than the j ob itself.For example a worker will only turn up to work if a business has provided a reasonable levelof pay and safe working conditions but these factors will not make him work harder at his

job once he is there. Importantly Herzberg viewed pay as a hygiene factor which is in directcontrast to Taylor who viewed pay, and piece-rate in particularHerzberg believed that businesses should motivate employees by adopting a democratic

approach to management and by improving the nature and content of the actual jobthrough certain methods. Some of the methods managers could use to achieve this are:Job enlargement workers being given a greater variety of tasks to perform (notnecessarily more challenging) which should make the work more interesting.Job enrichment - involves workers being given a wider range of more complex, interestingand challenging tasks surrounding a complete unit of work. This should give a greater senseof achievement.Empowerment means delegating more power to employees to make their own decisionsover areas of their working life.

From this Mayo concluded that workers are best motivated by:Better communication between managers and workers ( Hawthorne workers wereconsulted over the experiments and also had the opportunity to give feedback)Greater manager involvement in employees working lives ( Hawthorne workersresponded to the increased level of attention they were receiving)Working in groups or teams. ( Hawthorne workers did not previously regularly work inteams)In practice therefore businesses should re-organise production to encourage greater use ofteam working and introduce personnel departments to encourage greater managerinvolvement in looking after employees interests. His theory most closely fits in with apaternalistic style of management.

Taylor Frederick Winslow Taylor (1856 1917) put forward the idea that workers are motivatedmainly by pay. His Theory of Scientific Management argued the following:

Workers do not naturally enjoy work and so need close supervision and controlTherefore managers should break down production into a series of small tasksWorkers should then be given appropriate training and tools so they can work as efficientlyas possible on one set task.Workers are then paid according to the number of items they produce in a set period oftime- piece-rate pay.As a result workers are encouraged to work hard and maximise their productivity.Taylors methods were widely adopted as businesses saw the benefits of increasedproductivity levels and lower unit costs. The most notably advocate was Henry Ford whoused them to design the first ever production line, making Ford cars. This was the start ofthe era of mass production.Taylors approach has close links with the concept of an autocratic management st yle(managers take all the decisions and simply give orders to those below them) andMacgregors Theory X approach to workers (workers are viewed as lazy and wish to avoidresponsibility).However workers soon came to dislike Taylors approach as they were only given boring,repetitive tasks to carry out and were being treated little better than human machines.Firms could also afford to lay off workers as productivity levels increased. This led to anincrease in strikes and other forms of industrial action by dis-satisfied workers.***********************************************************************************************************1) Douglas McGregor -Theory-x & y


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2) Abraham Maslow - Hierarchy of needs3) Max Weber -The Protestant Ethic and the Spirit of Capitalism4) Karl Marx -Marxism5) Georg Simmel -Sociological theory6) Henri Fayol - Theory of Business administration7) Henry Ford - Fordism & Ford model-T

*******************************************************************Some Pointers on Labour Law

- Under the Industrial Disputes Act, 1947 a trade union can appear for the workman beforethe labour tribunals, i.e. the workman is not required to hire lawyers. In fact the Actspecifically says that lawyers are not allowed unless agreed by the party.

- Not all workers are covered by the Industrial Disputes Act, 1947. Only those who aredoing manual, skilled or unskilled job which is not managerial, administrative or supervisoryin nature. However, if you are a supervisor and if your salary is less than 10,000/- eventhen you are covered under the Act (as per latest 2010 Amendment).

-Right to strike is "not" a fundamental right i.e. it is not recognized by the Constitution.

-As per the new 2010 Amendment to Industrial Dispute Act,1947, any workman whoseservices are terminated can directly approach the Labour Court instead of waiting for theGovernment to make a reference to the court.

********************************************************************http://www.citehr.com/125908-busines-knowledge-hr-question-answer.html ---imp site*************************************************************************TRADE UNION: A trade union (British English) or labor union (American English) is an organization ofworkers that have banded together to achieve common goals such as better working

conditions. The trade union, through its leadership, bargains with the employer on behalf ofunion members and negotiates labour contracts (collective bargaining) with employers. Thismay include the negotiation of wages, work rules, complaint procedures, rules governinghiring, firing and promotion of workers, benefits, workplace safety and policies. Theagreements negotiated by the union leaders are binding on the rank and file members andthe employer and in some cases on other non-member workers.Originating in Europe , trade unions became popular in many countries duringthe Industrial Revolution, when the lack of skill necessary to perform most jobs shiftedemployment bargaining power almost completely to the employers' side, causing manyworkers to be mistreated and underpaid. Trade union organizations may be composed ofindividual workers, professionals, past workers, or the unemployed. The most common, butby no means only, purpose of these organizations is "maintaining or improving theconditions of their employment".Over the last three hundred years, many trade unions have developed into a number offorms, influenced by differing political objectives. Activities of trade unions vary, but mayinclude:

Provision of benefits to members: Early trade unions, like Friendly Societies, oftenprovided a range of benefits to insure members against unemployment, ill health, old ageand funeral expenses. In many developed countries, these functions have been assumed bythe state; however, the provision of professional training, legal advice and representationfor members is still an important benefit of trade union membership.
http://www.citehr.com/125908-busines-knowledge-hr-question-answer.htmlhttp://www.citehr.com/125908-busines-knowledge-hr-question-answer.htmlhttp://www.citehr.com/125908-busines-knowledge-hr-question-answer.html


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Collective bargaining: Where trade unions are able to operate openly and are recognizedby employers, they may negotiate with employers over wages and working conditions.

Industrial action: Trade unions may enforce strikes or resistance to lockouts infurtherance of particular goals.

Political activity: Trade unions may promote legislation favourable to the interests of theirmembers or workers as a whole. To this end they may pursue campaigns, undertake

lobbying, or financially support individual candidates or parties (such as the Labour Party inBritain) for public office.

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