FOUNDATIONS OF DECISION-MAKING...

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Cordelia Hawkins
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1 Table f Cntents FOUNDATIONS OF DECISION-MAKING... Errr! Bkmark nt Describe the decisin-making prcess pp Errr! Bkmark nt Explain the three appraches managers can use t make decisins pp Errr! Bkmark nt Describe the types f decisins and decisin-making cnditins managers face pp Errr! Bkmark nt Discuss grup decisin making pp Errr! Bkmark nt Discuss cntemprary issues in managerial decisin-making pp Errr! Bkmark nt Define grup and describe the stages f grup develpment pp Errr! Bkmark nt Describe the majr cncepts f grup behaviur pp Errr! Bkmark nt Discuss cntemprary issues in managing teams pp Errr! Bkmark nt FOUNDATIONS OF DECISION-MAKING SUMMARY:... Errr! Bkmark nt FOUNDATIONS OF PLANNING... Errr! Bkmark nt Discuss the nature and purpse f planning p Errr! Bkmark nt Explain what managers d in the strategic management prcess p Errr! Bkmark nt Cmpare and cntrast appraches t gal setting and planning p Errr! Bkmark nt Discuss cntemprary issues in planning p Errr! Bkmark nt FOUNDATIONS OF PLANNING SUMMARY... Errr! Bkmark nt FOUNDATIONS OF ORGANISING... Errr! Bkmark nt Describe the six key elements in rganisatinal design p Errr! Bkmark nt Identify the cntingency factrs that favur either the mechanistic mdel r the rganic mdel f rganisatinal design p Errr! Bkmark nt Describe the key cmpnents f the human resurces management prcess and the imprtant influences n that prcess p Errr! Bkmark nt Discuss techniques fr stimulating innvatin p Errr! Bkmark nt Define rganisatinal change and cmpare the cntrast views n the change prcess p Errr! Bkmark nt FOUNDATIONS OF ORGANISING SUMMARY... Errr! Bkmark nt FOUNDATIONS OF BEHAVIOUR... Errr! Bkmark nt Identify the fcus and gals f rganisatinal behaviur p Errr! Bkmark nt Explain the rle that attitudes play in jb perfrmance p Errr! Bkmark nt Describe different persnality theries p Errr! Bkmark nt Define and explain mtivatin p Cmpare and cntrast early theries f mtivatin p Cmpare and cntrast cntemprary theries f mtivatin p FOUNDATIONS OF BEHAVIOUR SUMMARY... Errr! Bkmark nt FOUNDATIONS OF LEADING... Errr! Bkmark nt Define leader and leaderships p Errr! Bkmark nt Describe mdern views f leadership and the issues facing tday s leaders p Errr! Bkmark nt Discuss trust as the essence f leadership p Errr! Bkmark nt Describe what managers need t knw abut cmmunicating effectively p Errr! Bkmark nt FOUNDATIONS OF LEADING SUMMARY... Errr! Bkmark nt

2 FOUNDATIONS OF CONTROL... Errr! Bkmark nt Explain the nature and imprtance f cntrl p Errr! Bkmark nt Describe the three steps in the cntrl prcess p Errr! Bkmark nt Discuss the types f cntrls rganisatins and managers use p Errr! Bkmark nt Discuss cntemprary issues in cntrl p Errr! Bkmark nt FOUNDATIONS OF CONTROL SUMMARY... Errr! Bkmark nt Define and explain mtivatin p.274 Mtivatin refers t the prcess by which a persn s effrts are energised, directed and sustained twards attaining a gal. This definitin has three key elements: energy, directin and persistence. 1. Energy is the measure f an emplyee s intensity and drive. A mtivated persn wrks hard. Hwever, the quality f the effrt must be cnsidered as well as its intensity. High levels f effrt dn t necessarily lead t favurable jb perfrmance. 2. All emplyees have t direct their effrt twards achieving the rganisatin s gals. 3. Emplyees need t persist in striving t achieve thse gals. Cmpare and cntrast early theries f mtivatin p Maslw s Thery f Mtivatin Maslw's Thery f Mtivatin carries the belief that rganisatins shuld attempt t satisfy the level f needs that an emplyee lacks thrugh a '5 step Hierarchy f Needs' that rders human needs in rder f relative imprtance. His thery states that emplyees are mtivated thrugh satisfying needs in a sequential rder in rder frm imprtance, frm basic needs such as shelter and pay (physilgical needs) t higher rder needs such sense f fulfilment (self-actualisatin needs). Maslw emphasised that all emplyees have needs and will be mtivated t achieve thse needs. Only nce a need has been satisfied can the emplyee be mtivated by the next need. Needs that are nt satisfied, mtivate r influence behaviur hwever needs that are satisfied d nt mtivate behaviur. The 5 stages f the Hierarchy f Needs are 'Physilgical needs' which are basic survival needs such as satisfactry payment fr survival; 'Safety and Security needs' which are physical and emtinal needs such as jb security; 'Scial and Belnging needs' such as having lve, affectin and being empwered within the business and having gd relatinships with management; 'Esteem needs' which is being respected and having a sense f accmplishment such as having a jb title and 'Selfactualisatin needs' which refer t fulfilling ptential and persnal grwth such as challenging wrk. Maslw's Hierarchy f Needs 1. Physilgical needs: Basic survival needs such as fd and water & satisfactry payment fr survival. 2. Safety and Security needs: Physical and emtinal needs such as safe wrking cnditins and jb security. 3. Scial/Belnging needs: Lve, affectin, sense f wellbeing and belnging such as emplyees being invlved in decisin making, being empwered and having gd relatinships with management and wrk. (e.g. Team building) 4. Esteem needs: Respect and having a sense f accmplishment such as having

3 respnsibilities, prmtin and recgnitin r a 'jb title'. 5. Self-actualisatin needs: Fulfilling ptential, persnal grwth and develpment. Challenging wrk allws creativity and pprtunities fr persnal grwth and advancement. Lwer Order Needs = extrinsic needs (fair pay and safe wrking cnditins) Higher Order Needs = intrinsic needs (fulfilling ptential) Advantages: Managers can identity the levels f needs that their emplyees may see as unfulfilled and apply different strategies t satisfy these needs and prvide mtivatin. Managers have cntrl f mtivating emplyees Disadvantages: Assumes that needs are satisfied in a sequential rder which may nt always be the case, emplyees may have many levels f needs rather than just ne at a time. There is n evidence t suggest that because a need is satisfied, it ceases t mtivate. e.g fair pay may cntinue t mtivate an emplyee thrughut their emplyment Emplyees may blame Emplyers if they are nt mtivated Time Cnsuming Applying Maslw's thery t a Manager Managers shuld create an envirnment in which emplyees can fulfil needs, identifying the level f needs fr individual emplyees which remains unsatisfied Satisfying 'needs' mtivates emplyees; emplyees whse needs are met are likely t have higher jb satisfactin and mrale, higher labur prductivity and cntribute t an enhanced crprate culture HRM must be able t understand that emplyees may be at different stages f the hierarchy and implement strategies tailred t individual emplyees. McClellan s Three-Needs Thery David McClelland s three-needs thery suggests that there are three acquired needs that mtivate emplyees. These are: 1. The need fr achievement (which is the drive t succeed in relatin t a set f standards); 2. The need fr pwer (which is the need t make thers behave in a way that they wuld nt have behaved therwise); and 3. The need fr affiliatin (which is the desire fr friendly and clse interpersnal relatinships). The need fr achievement has been researched the mst. Peple with a high need fr achievement aim t cmplete persnal gals rather than aim t achieve rewards f success. They desire t d smething mre efficiently than it has been dne befre. They prefer jbs

4 that prvide respnsibility fr finding slutins t prblems. High achievers avid what they think are very easy tasks r very difficult tasks. McGregr s Thery X and Thery Y Dugal McGregr prpsed an alternative thery as t what mtivates peple s behaviur. Thery X is a negative view f peple and assumes that emplyees have little ambitin, dislike wrk, are lazy, avid respnsibility and must be frced t wrk t wrk effectively. Thery Y is a psitive view and assumes emplyees enjy wrk, accept respnsibility and exercise self-directin. McGregr believed Thery Y wuld maximise emplyee mtivatin. Hwever, n evidence cnfirms that Thery Y is the nly way t mtivate emplyees. Herzberg's Thery f Mtivatin Herzberg's Thery f Mtivatin carries the belief that factrs which influence mtivatin culd be gruped int tw, lwer rder needs knwn as hygiene factrs and higher rder needs knwn as mtivatin factrs. Hygiene Factrs are lwer level needs such as jb security, wrking cnditins and fair pay. Failure t meet these needs may inhibit mtivatin and result in jb dissatisfactin, but achievement f these factrs themselves d nt mtivate emplyees. Mtivatin Factrs are higher rder needs such as achievement, recgnitin and chance fr persnal develpment. Achievement f these needs may mtivate emplyees hwever failure t meet these needs will nt cause dissatisfactin. Applying Herzberg's thery t a manager Managers must initially identity and satisfy 'Hygiene Factrs' t prevent dissatisfactin frm emplyees Then, mre fcus can be placed n mtivating factrs such as achievement and recgnitin that may prmte mtivatin in emplyees. Advantages Emplyee is in cntrl f hygiene factrs s they can ensure dissatisfactin is avided Suggests that emplyees may have multiple needs at nce (a failure f Maslw) Recgnises that sme 'basic' needs will nt mtivate emplyees Allws emplyees t be in cntrl f ensuring emplyees are satisfied Disadvantages Emplyees can place blame n the emplyer if Hygiene Factrs are nt satisfied Time Cnsuming Cmpare and cntrast cntemprary theries f mtivatin p The current cntemprary theries f mtivatin include: gal-setting, jb design and equity and expectancy. The Gal-Setting Thery Gal-setting thery says that specific gals increase perfrmance and difficult gals, when accepted, result in higher perfrmance than d easy gals.

The specificity f a gal acts as an internal mtivatr. Fr example, when a sales rep has the task f making eight sales per day, this gives him/her a specific gal t reach.

5 The specificity f a gal acts as an internal mtivatr. Fr example, when a sales rep has the task f making eight sales per day, this gives him/her a specific gal t reach. Emplyees might nt always try harder if they participate in setting f gals sme prefer t be assigned gals. Hwever, participatin is usually preferable as sme emplyees might resist accepting difficult challenges. They are mre likely t accept challenges int which they had input. Self-generated feedback (where an emplyee mnitrs their wn prgress) has been fund t be a mre pwerful mtivatr than feedback frm smene else. Three ther elements influence the gal-setting thery: gal cmmitment, adequate self-efficacy and natinal culture. 1. Gal-setting thery assumes an individual is cmmitted t the gal. Emplyees are mre cmmitted when the gals are made public, when the individual has an internal lcus f cntrl and when the gals are self-set rather than assigned. 2. Self-efficacy refers t an individuals belief that he r she is capable f perfrming a task. In difficult situatins, peple with lw self-efficacy tend t reduce their effrt r give up, whereas thse with high-self efficacy will try harder t cmplete the challenge. Similarly, individuals with high self-efficacy respnd t negative feedback with increased effrt and mtivatin, whereas thse with lw-self efficacy are likely t reduce their effrt. 3. The gal-setting thery depends n the natinal culture. It wrks well in cuntries like Australia/USA as these ideas align well with thse cultures. It assumes subrdinates will be reasnably independent, peple will seek challenges and perfrmance is cnsidered imprtant. Gal setting is unlikely t lead t higher emplyee perfrmance in cuntries where cultural characteristics are nt like this. Jb Design Jb design can influence mtivatin. Managers shuld design jbs thughtfully t reflect the rganisatin s envirnment, emplyees skills and preferences. When jbs are designed as such, emplyees are mtivated t wrk hard. Oldham and Hackman s jb characteristic mdel (JCM) describes the ways that managers can design mtivating jbs.

1. Skill variety: jbs must require a variety f activities s the wrk can use a number f different skills. 2. Task identity: jbs must require the cmpletin f a whle piece f wrk. 3.

6 1. Skill variety: jbs must require a variety f activities s the wrk can use a number f different skills. 2. Task identity: jbs must require the cmpletin f a whle piece f wrk. 3. Task significance: jbs must affect the lives r wrk f ther peple. 4. Autnmy: jbs need t prvide freedm, independence and discretin t the individual in scheduling the wrk and determining the prcedures t be used in carrying it ut 5. Feedback: jbs need t result in emplyee s btaining clear infrmatin abut the effectiveness f their perfrmance. The mdel presents three dimensins: skill variety, task identity and task significance t create meaningful wrk. If these three elements exist in a jb, it is likely that an emplyee will see their jb as imprtant and wrthwhile. Jbs that pssess autnmy result in an emplyee feeling persnally respnsible fr the jbs end result. If a jb prvides feedback, an emplyee will knw hw effectively they are perfrming. The JCM suggests it mtivates when an emplyee learn that he r she persnally has perfrmed well n a task that he r she cares abut (feedback + respnsibility/autnmy + meaningfulness f jb). The mre this ccurs, the greater the emplyee s mtivatin. The JCM guides managers fr jb design fr bth individuals and teams. The JCM shws managers hw jbs can be changed in rder t imprve the key jb elements. They may cmbine tasks t increase task identity and skill variety. They might expand jbs vertically and increase autnmy. Feedback may be imprved by pening feedback channels. By using JCM, managers can tailr jb characteristics t individuals t make their wrk mre rewarding.

Job Satisfaction. Job Satisfaction. Financial rewards, benefits, flexible work hours and stress among lest cited reasons

Job Satisfaction. Job Satisfaction. Financial rewards, benefits, flexible work hours and stress among lest cited reasons Jb Satisfactin Zapps - Las Vegas-based e-cmmerce site specializing in shes, apparel and electrnics - CEO hsts pajama parties and excessively blgs abut varius subjects - During caching sessins emplyees