In the late sass, Edwin Locke proposed that intentions to work toward a goad are a major source of work motivation. That is, goals tell an employee what needs to be done and how much effort will need to be made. Specific hard goals produce a higher level of output than does the generalized goal of “do your best”. Why? The specificity of the goal itself seems to act as an internal stimulus. For instance, when a trucker commits to making 12 round trips between Toronto and Buffalo, New York, each week, this intention gives him a specific objective to try to attain.
The conclusion is that intentions – as articulated in terms of hard and specific goals – are the motivating force. Under proper conditions, they can lead to higher performance. How a manager can use Goal setting theory for effectiveness: In order to make the goal setting theory operational a manager may use MOB program: Management by objective directly advocates specific goals and feedback. MOB implies, rather than explicitly states, that goals must be perceived as feasible. Consistent with goal setting. MOB program is seen in many businesses like Construction, Educational etc. Reinforcement Theory:
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Reinforcement theory explains that one gets motivated if appreciated for his/her good performance and punished for poor performance. For instance, appreciating a worker in front of colleagues for good work. How a manager can use Reinforcement theory for effectiveness: In order to make reinforcement theory operational, a manager may use Employee Recognition program: Consistent with reinforcement theory, rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition. You can personally congratulate an employee in private for a good job.
You can send a underwrite note or an email message acknowledging something positive that the employee has done. For Employees with a strong need for social acceptance, you can publicly recognize accomplishments. To enhance group highnesses and motivation, you can celebrate team successes. For instance, you can throw a team pizza party to celebrate a team’s accomplishment. Theory X and Theory Y: Douglas McGregor proposed two distinct views of human beings: one basically negative, labeled Theory X and other basically positive, labeled Theory Y. Under theory X, the four assumptions held by managers are: 1.
Employees inherently dislike work and, whenever possible, will attempt to avoid it. 2. Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals. 3. Employees will avoid reprehensibility and seek formal direction whenever possible. 4. Most workers place security above all other factors associated with work and will display little ambition. Under theory Y, the four positive assumptions held by manager are: 1 . Employees can view work as being as natural as rest or play. 2. People will exercise self-direction and self-control if they are committed to the objectives. The average person can learn to accept, even seek, responsibility. 4. The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions. In order to make Theory X and Theory Y operational, a manager may use the Employee involvement program: Employee involvement has become a convenient catchall term to cover a variety of techniques. For instance, it encompasses popular ideas such as employee participation or participative management, representative participation, quality circles etc.
Theory X aligns with the more traditional autocratic style and can be motivated by financial motivational rewards, while Theory Y is consistent with participative management. Theory X programs: Participative Management: A process in which subordinates share a significant degree of decision making power with their immediate superiors. Workers participate in organizational decision making through a small group of representative employees. Quality Circle: A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions.
Job Enrichment: The vertical expansion of jobs, increasing the degree to which the worker controls the planning, execution and evaluation of his her work. Job Enlargement: Increasing the number and barite of tasks that an individual performs results in jobs with more diversity. Job rotation: The periodic shifting of an employee from one task to another. Theory Y programs: Strictly designed jobs: The jobs designed strictly, the rules of which have to be followed by the workers. Fringe Benefits: Benefits offered to the workers for good performance. For e. G. Laptop, free fuel, access to internet etc.
Piece rate system: The system in which employees are paid extra on every extra unit produced. Two Factor theory: Intrinsic factors(Motivators) are related to job satisfaction, while extrinsic factors(Hygiene factors) are associated with dissatisfaction. The two factor theory was proposed by psychologist Frederick Herbert. According to him, the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction. Therefore, managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation.
They will be placating their workforce rather than motivating them. As a result, conditions surrounding the job such as quality of supervision, pay, company policies, physical working conditions, relations with others and job security were characterized by hygiene factors, while promotional opportunities, opportunities for personal growth, recognition, responsibility and achievement were characterized by Motivators. In order to make the Two Factor Theory operational, a manager may use Employee Recognition program, Job Enrichment Program, Employee involvement program.
Recognizing employees to make them feel that they are the part of the organization are cared for which motivates them. Advancing the job of employees to make them have the realization of growth. Involving employees in decision making by using the participative management approach. Expectancy theory: Currently, one of the most widely accepted explanations of motivation is Victor Broom’s expectancy theory. Expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by given outcome and on the attractiveness of that outcome to the individual.
In more practical terms, expectancy theory says that an employee will be motivated to exert a high level of effort when he or she believes that effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards such as a bonus, a salary increase, or a promotion: and that the rewards will satisfy the employees’ personal goals. The theory therefore, focuses on three relationships: 1. Effort-performance relationship: The probability perceived by the individual that exerting a given amount of effort will lead to performance. . Performance reward relationship: The degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. 3. Rewards personal goals relationship: The degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual. In order to make the expectancy theory operational, a manager may use the variable pay programs: Variable pay is probably most compatible with expectancy theory.
Piece rate plans, wage incentives, profit sharing, bonuses and shanghaiing are all forms of variable pay programs. Piece rate pay plan: Workers are paid a fixed sum for each unit of production completed. Profit sharing plans: Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability. Shanghaiing: In incentive plan in which improvements in group productivity determine the total amount of money that is allocated. It involves focusing on productivity gains rather than on profits, employees can receive incentive rewards even when the organization is not profitable.
Flexible benefits: Employees tailor their benefit program to meet their personal needs by picking and choosing from a menu of benefit options. Conclusion for effectiveness: Employees have different needs. Do not treat them all alike. Moreover, spend the time necessary to understand what’s important to each employee. This will allow you to individualize goals, level of involvement, and rewards to align with individual needs. Also, design jobs to align with individual needs and, therefore, maximize the motivation potential in jobs.
The manager should take the following points under consideration before applying the motivation theories: Use Goals and feedback: Employees should have hard, specific goals, as well as feedback on how well they are faring to pursuit of those goals. Allow employees to participate in decisions that affect them: Employees can contribute to a number of decisions that affect them: setting work goals, choosing their own benefits packages, solving productivity and quality problems. This can increase employee productivity, commitment to work goals, motivation and job satisfaction.
Link rewards to performance: Rewards should be contingent on performance. Importantly, employees must perceive a clear linkage. Check the system for equity: Rewards should also be perceived by employees as equating with the inputs they bring to the job. At a simplistic level, this should mean that experience, skills, abilities, effort and other obvious inputs should explain difference in performance and, hence, pay, job assignments and other obvious rewards. Leadership In today’s business world, effective leadership is gaining precedence over effective management.
If effective management principles alone were once considered as the essentials of organizational and business success, today the success of organizations and businesses are equally or perhaps more dependent on effective and futuristic leadership. With the information and communication evolution of the late sass, many glorious business corporations of the past have been doomed to failure, the reason often being attributed as the failure of the leadership to lead and steer the organization through the fast paced changes in the business scenario brought about by the revolution.
Leadership and its Importance: Ever since the development of modern management, business and management experts have considered leadership as an important attribute to effective management from a people management perspective. Leadership essentially involves influencing people to strive willingly for the accomplishment of group r organizational objectives. Chester I Bernard defines leadership as The quality of the behavior of individuals where by they guide people or their activities in organized effort. Leadership and Management Since contemporary literature defines leadership as a process, it is often mistaken with management. According to John Cotter, leadership and management are two distinct and complementary systems of action, both being essential for success in today’s business environment [Cotter, 1 990] The complex business organizations of the twentieth century led to development of management discipline, so as to primarily address organizational complexities.
Along with that, the last decade of twentieth century witnessed wide-ranging changes in business operations, brought about by globalization and the technology boom, which brought the issue of leadership to the fore. If effective management helps to cope with complexities, effective and successful leadership helps to cope with change. It is worthwhile to note that organizations with strong leadership and weak management and those with weak or ineffective leadership and strong management are equally unsuccessful.
Thus both are complementary and the real challenge is to combine strong leadership and strong management and use each to balance the other. [Cotter, 1990] The Theories and Concepts of Successful Leadership Effective leadership is explained within the framework of three main theories as discussed below : – Trait theory 0 The theory proposes that a successful leadership depends on certain personality traits of the leader such as intelligence, initiative and creativity, open mind, self confidence, vision and foresight, sense of responsibility, human relations skill, maturity etc.
Though this theory has led to he notion that Dealers are born, not made,’ it is commonly considered that the traits can be developed by training and practice. However as Jennings remarks fifty years’ of research have failed to identify one personality trait that can be used to distinguish leaders and non-leaders [Jennings, 1961] – Situational theory [l The situational theory suggests that leadership is a function of the situation in which the leader operates.
The three situational variables include leader’s position and power, leader-subordinate relationship and task structure. – Behavioral theory The behavioral theory suggests that leadership effectiveness is a function of effective role behavior; it depends on what the leader does. However, the effectiveness of a particular behavior depends on the situation in which it is applied. Based on the three theories discussed above, many modern management experts and researchers have developed several models and concepts of successful leadership.
Covey’s Principle Centered Leadership, Salesman’s Leadership that gets results’, and Strategic Leadership are discussed below, and would give a definite idea about leadership and decision making skills that is necessary for a leader to be successful in present business settings. Covey’s Principle Centered Leadership According to Stephen R. Covey, principle-centered leaders work on the basis of natural and permanent principles or values and build those principles into every aspect of their lives including business and manifest in their management processes, business dealings, as well as mission statements. Principles- centered leadership is practiced from the inside out on four levels: – Personal: relationships with oneself – Interpersonal: interactions and relationships with others – Managerial: the responsibility to get a job done with others – Organizational: the need to organize people recruit, train and compensate people, build teams, solve problems, and create aligned structure, strategy and systems.
To be effective principle centered leaders Covey identifies 7 habits of which three are habits of independence enabling private victory, three habits of interdependence enabling public victory and renewal The 7 Habits of Highly Effective People Private Victory – Be proactive C Enhance resourcefulness by expanding the circle of influence – Begin with the End in Mind C] Visualizing the consequence of actions – Put First Things First C] Organizing and executing around priorities
Public Victory – Think Win / Win Seeking mutual benefit in human interactions – Seek First to Understand, Then to Be Understood D Highlights the most essential communication skill of listening – Synergies 0 Synergy signifies that the whole is greater than the sum of its parts. Synergy is particularly important in leading today’s culturally diverse business organization Renewal. – Sharpen the Saw њ focus on self-renewal: physical renewal by exercise, stress management; mental renewal by reading, visualizing etc; emotion renewal by enhancing social relationships; spiritual renewal by mediation etc. Obey 1 980) Strategic Leadership The future growth and prospects of a business is dependent on leadership, hence successful leadership implies strategic decision-making. Strategic leadership offers the vision and direction by defining the rationale for growth and the environment for the success of the corporation. It facilitates “outside- the-box” thinking so as to create future growth of the organization. Strategic leadership is not about micromanaging business strategies, it provides the broader perspective for businesses to develop appropriate strategies and aid the creation of value.
Seven Functions of Strategic Leadership – Vision: Providing direction for the organization as a whole – Strategic Planning: Instituting right strategy and policy – Administration: Overall management and executive responsibility – Assessing the Organization Fitness: Assessing the organization, organizing or reorganizing to inculcate appropriate work culture – Confidence, Morale, Energy, Esprit De corps: developing a corporate spirit – Leading and Teaching choosing today’s leaders and developing the leaders of tomorrow. Stakeholders, Associates and Society: relating the organization to there organizations as well as the society. [Adair, 2003] Results Based Leadership Unlike other models, results-based leadership emphasizes results and considers effective leadership as a non-cumulative product of attributes and results. Hence, in order to be successful, leaders must strive for excellence in demonstrating attributes and achieving results.
The four areas of result include: Employee results t] developing human resources Organization results innovation and continued learning Customer results customer satisfaction and delight Investor results Ensuring cash flow Lurch, Zinger, and Smallwood, 1999] In his study, Leadership that Gets Results, Coleman identifies six leadership styles adopted by leaders to influence the followers: – Coercive Demands immediate compliance – AuthoritativeјMobiles people toward a vision – Affiliated Creates harmony and builds emotional bonds – Democratic Forges consensus through participation – Pacesetting] Sets high standards for performance – Coaching Develops people for the future [Coleman, 2000] Pfizer Inc C] A Case of Effective Leadership Pfizer Inc, the world’s largest pharmaceutical company, is one of the few old- economy companies that have emerged successful, despite the business slow down that hit American economy post 9/11 attack.
Pfizer emerged third in the list of “Best 50 Performers” by Business Week in 2003. The company and its management have received many accolades and awards, prominent of them with respect to the leadership and organizational culture include: – Hank McKinley, Pfizer Chairman of the Board and Chief Executive Officer, was listed among “Most Powerful People in Business” by Fortune in July 2003 – Hank McKinley was awarded 2003 Global Leadership Award by United Nations Association of America n October 2003 – Pfizer Pharmaceutical Sales Force was voted as first overall in Perinea’s “Pharmaceutical Sales Force Structures & Strategies for 2003-2004” by a survey of U. S.
Physicians for the ninth consecutive year in January 2004 Thus, Pfizer presents an interesting case of effective and successful leadership. Let us understand the leadership qualities of McKinney and the organizational culture set by the Hank McKinley that had made him successful. In order to understand the leadership qualities and organizational culture from outside the organization, one needs to look into the organizations’ public language that is engage used in the policy documents that describe the organization’s vision, values, and mission, and procedures manual as well as the other brochures and publications of the organization. [Dimension, 1990].
By analyzing these and other material available on Pfizer website, Internet and other sources, the following features emerge: – Values of Integrity 0 Follow and demand high ethical standards – Respect for People њ Treat people with respect and dignity, value diversity – Customer Fasciculation focus on customer satisfaction – Organizational culture C] Open and inclusive Innovation t] Facilitates innovation by tapping the collective knowledge, wisdom, talent, and experience of its diverse employees – Teamwork O Understands the need and importance and promotes teamwork – Performance- – Leadership CLC Believes every employee is a leader, empowering and visionary – Quality CLC Value oriented work, products and relationships – Communicability the role of community in the long-term health of the business.
Muckiness’s people centered, result oriented, strategic leadership with customer focus is evident in all his public statements Collision, mission, public speeches t al. It is only reasonable to conclude that this strong leadership coupled with the strong management practices helped Pfizer Inc, with an employee base of 130,000, to emerge successful in the tumultuous business environment. Conclusion: Management scholars as well as business experts have developed many models and concepts for successful leadership, of which Principle based, People- centered, Result oriented and Strategic Leadership models, when considered together provide the framework of traits and qualities needed for a leader to be successful in today’s challenging business environment.