1

MANG3023 – Management 2 For Engineers

Lecturer: Dr Andrew Stainton

E-mail:a.stainton@soton.ac.uk

Office: rm4051 in Management Building

No. lectures: Up to 18

Core texts:

Payne, A.C., Chelsom, J.V. and Reavill, L.R.P Management for

Engineers, Scientists and Technologists. 2nd

Ed. (2004) Wiley and Sons.

Chapman, C. and Ward, S. Project Risk Management: Processes,

Techniques and Insights. 2nd

Ed. (2003) Wiley and Sons.

Johnson, G., Scholes, K. and Whittington, R, Exploring Corporate

Strategy. 7th Ed. (2005) Harlow: Pearson.

2

Assignments:

- Two essays each of 1000 words

- Reference all sources thoroughly – not doing so is plagiarism

- Have introduction explaining what will be covered, and conclusion

summarising again what was covered

- For each paragraph, introduce content, then explain points, then

summarise at end of paragraph

- Relate and link perspectives of authors

- Include concepts and models from the course

For example,

Are women with families expected to tend the home as well as achieve

within the workplace?

There is theoretical evidence within the literature that generally supports the view that the woman’s

role is also achieving outside the home, in the workplace, although women are generally regarded as

having less freedom to go to work due to family responsibilities. Some literature describes how this

view is stronger amongst certain classes – for example, within the ‘higher class’ lawyer profession.

Women have a harder time than men balancing work and family responsibilities because women

generally have contrasting attitudes and roles relative to men. Married professional women tend to

regard both their work and family roles with equal priority, rather than dedicating more time to their

work (Wallace, 1999). Men see work as a dominating life-long interest which shapes identity and self-

esteem, whilst fatherhood is regarded an obligation (Watts, 2009). In contrast, in the United States, the

expectation is that women are primarily caretakers, responsible for the home. Hence, the perception is

that women are less committed to work which impacts upon their work opportunities (Shapiro, Ingols,

O’Neill and Blake-Beard, 2009). For example, within the Civil engineering industry, factors such as ‘a

culture of presenteeism’, business trips and the need to win business can damage the professional

identity of part-time women engineers (Watts, 2009). Equally, working class women without

professional qualifications are particularly constrained by a lack of affordable childcare, fewer

qualifications and low quality flexible work (Hebson, 2009). Hence, roles, background and attitudes

can mean that family women can have a harder time competing in the workplace than men.

Never-the-less, statistically there has been a drastic rise in the percentage of women going out to work.

In the USA, 60% of all women over 16 are in the workforce. The numbers of married mothers with

children going to work has risen from 19% in 1960 to 71% in 2007 (Shapiro et al, 2009). In the UK,

government policy has also encouraged dual family incomes - women’s incomes are seen as needed to

avoid poverty and to generate personal pensions (Warren, Fox and Pascall, 2009). Hence, there is a

rising trend in family women who go out to work.

Flexible work arrangements have generally helped women to work. Shapiro et al (2009) concluded that

popular stances adopted by women were telecommuting, negotiation around the boundaries of full-time

jobs, and staying in a job with an acceptable work–life balance. Other suggestions were working

flexible hours, and acceptance of lateral rather than promotional job moves. Employer acceptance of

these approaches has helped women to sustain employment within the workplace whilst maintaining a

family.

The strength of opinion concerning whether to work and the need to work varies according to the

disposition, personal attitudes and social class of people. (Hebson, 2009) postulates that, unlike for

men, women can genuinely choose between ‘family work’ and ‘market work’.

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Regarding class, women in ‘higher class’ professions, such as lawyers, may more easily cope with

demanding careers because they can afford external sources of child care and domestic assistance costs.

They are also more likely to be able to schedule their work to cope with long hours (Wallace, 1999).

This implies that women in higher classes may more readily be regarded as achievers outside of the

home.

For lower classes, such as families in which the father is a manual worker, a lack of income may drive

the woman out to work as a more pressing concern than balancing work and home life (Emslie and

Hunt, 2009). Women are forced, by necessity, to cope and manage by accepting the work that is

available (Emslie and Hunt, 2009). This perspective supports the view that lower class women have

dual roles both working and maintaining the home.

Emslie and Hunt (2009) propose that middle-class women have resources and freedom to reduce their

working hours to achieve their desired work–life balance in terms of busy work lives and time for

oneself. Middle class women also have a role outside the family but possess the luxury to be more

selective than working class women concerning work time commitments.

In conclusion, evidence from the literature suggests that family women are increasingly achieving both

within the workplace as well as running the home. This may be out of necessity, as for working class

women, or because women from higher classes have the freedom to be able to work, or to choose when

to work. Flexible work arrangements have helped, although achieving a work-life balance is often

difficult due to pressures of work, costs of childcare and women assuming greater family responsibility

than men.

References

Emslie, C. and Hunt, K. (2009). ‘Live to Work’ or ‘Work to Live’? A Qualitative Study of Gender and

Work–life Balance among Men and Women in Mid-life. Gender, Work and Organisation, 16(1), 151-

172. Blackwell Publishing Ltd.

Hebson, G. (2009). Renewing Class Analysis in Studies of the Workplace: A Comparison of Working-

class and Middle-class Women’s Aspirations and Identities. Sociology, 43 (1), 27-44. London: Sage

Publications.

Shapiro, M., Ingols, C., O’Neill, R. and Blake-Beard, S. (2009). Making Sense of Women as Career

Self-Agents: Implications for Human Resource Development. Human Resource Development

Quarterly, 20(4), 477-501. Wiley and Sons.

Wallace, J (1999). Work-to-nonwork Conflict among married male and female lawyers. Journal of

Organisational Behaviour, 20, 797-816. Wiley and Sons.

Warren, T., Fox, E. and Pascall, G. (2009). Innovative Social Policies: Implications for Work–life

Balance among Low-waged Women in England. Gender, Work and Organisation, 16(1), 126-150.

Blackwell Publishing Ltd.

Watts, J (2009). Allowed into a Man’s World’ Meanings of Work–Life Balance: Perspectives of

Women Civil Engineers as ‘Minority’ Workers in Construction. Gender, Work and Organisation,

16(1), 37-57. Blackwell Publishing Ltd.

4

1) Discipline skills – technical, subject-based skills and knowledge

2) Enterprise skills – enterprising thinking skills concerning drivers of company

performance related to people, marketing, finance and supply chain

Personal Skills

1) Job specification – i.e. tasks

Understanding Workplace Demands

2) Culture – i.e. expectations

3) The need to fulfil objectives – e.g. people, marketing, finance

1) Presentation and selling skills

Ability to Secure Employment

2) Formulating and implementing employment plans

Achievable through training and education

Achievable through work experience

Employability

5

Topics:

1) Operations Management – Strategy, Planning and Control

2) Project Management – Tools and Risk

3) Human Resource Management

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1) Operations Management - Strategy, Planning and Control

The Business Environment

Purpose

- Profit; hence funding

- Customer satisfaction; hence sales

Issues

- Efficiency vs Effectiveness

- Problems vs solutions

- Questions vs answers

- Data vs information

Planning Process

7

Strategic Planning

Where are we now?

Where do we want to be?

Closing the gaps

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Decision-making Processes

Set objectives Need for a

decision

Problem

definition Search

Alternatives

Alternatives

Alternatives

Alternatives

Evaluate Choice Implement

Monitor

Feedback

Inside

Outside

Inside

change

Outside

change

(Gore et al, 1992,Harrison, 1981)

Strategic

objectives

Required

performance

Performance gap

Operational budgets

Business plan

Corporate planning

Forecast future

Environmental

analysis

Position

audit

(Gore et al, 1992)

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Structure

External

Within the engineering/manufacturing supply chain for automotive industry :-

- Land Rover has confrontational shopfloor culture, poor quality, production inefficiency

- Smaller Jaguar models selling insufficient volumes

- Japanese-style working practices at Jaguar Halewood, Land Rover Solihull must follow.

- Hertzberg’s hygiene factors - rest areas, wide aisles, décor - motivation initiatives

- Small work groups with greater autonomy in decision making

- ‘Centres of excellence’

- Open communication to solve problems

- halved defect rate, inventories, improved productivity

- Growth in car production in Britain

- Production base for Europe

- nine volume brands of car makers

- Japanese have powerful brands and better industrial relations in Britain (AMICUS) than

elsewhere in Europe

- Broad supply chain for low costs (China labour cost is 5%, abundance of raw materials, heavy

investment)

- But growth brings losses -

- Peugeot Coventry

- BMW(Mini) Oxford

- Nissan Sunderland (most efficient in Europe)

- Toyota

- Honda

Economics Demography

Politics

Culture

Education

Ecology

Government

Technology

Media

The

Organisation

Customers

Shareholders Finance Orgs.

Suppliers

Competitors Employees

Unions

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- Petrol electric hybrid car (Prius) from Toyota; green,environmentally friendly, high tech, new

technology, new production methods

- Low profit

- Government support

- Reliant on consumer-finance business

- Increasing long-term liabilities > unattractive to stock market

- Increasingly varied needs of customers

- Flexible production lines (from economies of scale to smaller production runs)

- Just-in-time still creating inventory

- Suppliers taking on final assembly

- Cars are lighter and electronically controlled

“You can have any colour you want so long as it is black” (Henry Ford) - a concept from the past!

Sourced from the Economist, September 2004.

- Gap Analysis

Now Future

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Car Production

2001 2003

Italy

Germany

Britain

France

1) Land Rover

- Confrontational shop floor culture

- Poor quality

- Production inefficiency

2) General

- Low profit and good growth

- Need government support

- Reliance upon consumer finance

- Increasing long-term liabilities.

Therefore unattractive to stock

market.

Japanese-style working practices

- Small work groups for greater autonomy

- Herzberg’s hygiene factors

- Centres of excellence e.g. statistical quality

control

- Respond to customer needs

- Product variety

- Flexible production lines

- Ecologically friendly electric hybrid car

- Cost reduction programmes

- Broad supply chain

- Low labour and materials cost of China

- Final assembly by suppliers

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2) Project Management – Tools and Risk

“An endeavour in which human, material and financial resources are

organised in a novel way, to undertake a unique scope of work of given

specification, within constraints of cost and time, so as to achieve unitary,

beneficial change, through the delivery of quantified and qualitative

objectives” (Turner, 1992).

Skills

Required

Contingency

Workload

Estimates

Commitment People Equipment

Task

Priorities

Cost/

Budget Time

Scope

(quality)

Project Management Issues

Design, development, testing, delivery, evaluation

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Project Investment Decisions

Present Value of Future Sum, based on Discounted Value of Future cash

inflows (DCF) :

DCF = Future Sum/(1+ i)

Where,

i = rate of interest per unit time (usually per annum)

n = number of units of time (usually years) that must pass before the

future sum is realised.

Net Present Value of Project = Present Value – Initial Cost

Benefit-to-cost ratio = Present Value of Benefits/Present Value of Costs

Project A

Project B

Project A

PV of earnings = 30/(1.12) + 30/(1.12) + … + 30/(1.12) = 169.51

NPV of project = 169.51 – 100 = £69.51

Project B

PV of earnings = 25/(1.12) + 25/(1.12) + … + 27/(1.12) = 145.35

NPV of project = 145.35 – 80 = £65.35

n

YRS

1 2 3 4 5 6 7 8 9 10

100

30 30 30 30 30 30 30 30 30 30

YRS

1 2 3 4 5 6 7 8 9 10

80

25 25 25 25 25 27 27 27 27 27

2 10

2 10

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An Example – Engineering a software product used in training

Design

- Meeting customer needs requires flexibility

- Precise needs are often hard to define

- Judging volume and difficulty of content is an art

Development

- Getting the right skills at an affordable cost

- Access to useful data

- Workload hard to define, hence budget problems

- Sufficient testing and piloting

Delivery

- Winning commitment to meet deadlines

- Technology errors when first going live

Implementation

- Providing sufficient time

- Guaranteeing level of expertise

Feedback and evaluation

- Usually subjective measures of success

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Illustrating Project Management Issues Using A Project Management

Software Tool (Zurich Financial Services, 2002)

Project Objectives

PERT Chart

15

Personnel Allocation

Priorities

16

Estimates of Cost

Gantt Chart

17

Resource Chart

Critical Path

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Some Advice (IBM UK, 1993)

• Be realistic - don't underestimate project durations

• Consider other commitments - for all concerned as projects are not the only demand on

resources

• Understand capabilities - of individuals when estimating the effort required

• Build in contingency - as things will go wrong

• Allow sensible timescales - especially for the tasks on the critical path

• Communicate - progress and plans to those who need to know

Plan, Implement, Monitor and Control Change

Channel Tunnel – Dover to Calais

• Original estimate, January 1986 - £5.4 billion (including £0.9 billion for inflation, £1 billion for

contingencies)

• Revised estimate, February 1990 - £7.5 billion

• Actual cost – almost £10 billion.

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Bidding – Lowest price wins?

Account Management

The importance of :-

• Quality service/products

• Competence

• Industry expertise

• Strong customer relationships

Partnering – a long term commitment between purchaser and supplier

Requires:-

• A long term core programme

• Careful selection of the right partner

• Mutual trust and confidence between partners

• Commitment to a long term relationship

• Preparedness to adopt each other’s requirements

• Willingness to accept and learn from each other’s mistakes

• A compatibility of culture between customer and contractor

(National Economic Development Council Report, 1991)

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Network Diagrams

Task precedence

Activity Duration (weeks)* Precursor activity(ies)

A 4 -

B 3 -

C 6 A, B

D 1 B

E 7 D

F 2 C

G 5 C, E

H 8 E

J 4 G

K 5 F,G

L 6 J,H

M 3 L,K

*Where duration could be estimated as “estimated workload/estimated work rate”.

0 0

0 0

Start

0

0 4

1 5

A

4

0 3

0 3

B

3

4 10

5 11

C

6

3 4

3 4

D

1

4 11

4 11

E

7

10 12

19 21

F

2

11 16

11 16

G

5

16 20

16 20

J

4

11 19

12 20

H

8

20 26

20 26

L

6

26 29

26 29

M

3

16 21

21 26

K

5

Early

start

Early

finish

Late

start

Late

finish

Duration

For Early Start: Look LEFT – Latest Early Finish Time

For Late Finish: Look right, ELST – Earliest Late Start Time

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Float Table

Task A B C D E F G H J K L M

Float 1 0 1 0 0 9 0 1 0 5 0 0

Where float = Late Start – Early Start

Hence, critical path = Start-B-D-E-G-J-L-M-Finish (where float = 0).

Programme Evaluation and Review Technique (PERT)

t = (a + 4m + b)/6

s = (b – a)/6

Where,

t = expected mean duration

a = most optimistic duration

b = most pessimistic duration

m = most likely duration

s = standard deviation of the distribution

(based upon a beta frequency distribution).

Activity a m B t S Precursor

activity(ies)

A 3 5 9 5.3 1 -

B 4 6 6 6 .67 -

C 5 8 10 7.8 .83 A, B

D 3 6 9 6 1 B

E 6 9 15 9.5 1.5 D

F 3 4 5 4 .33 C

G 8 12 15 11.8 1.17 C, E

H 2 6 8 5.7 1 E

J 4 7 9 6.8 .83 G

K 3 5 10 5.5 1.17 F,G

L 7 9 11 9 .67 J,H

M 10 12 15 12.2 .83 L,K

Standard deviation = √(.67 + 1 + 1.5 + 1.17 + .83 + .67 + .83 ) = 2.63

Hence, 2.3% probability duration > 66.3 (mean) + 2 x 2.63 = 71.6 weeks

0.1% probability duration > 66.3 (mean) + 3 x 2.63 = 74.2 weeks

2 2 2 2 2 2 2

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3) Project Risk Management

Risk

- A negative but well established term

- A detrimental threat or a beneficial opportunity?

- Minimise threats, maximise opportunities e.g. laying oil pipes during

good weather

- “An uncertain event or condition that, if it occurs, has a positive or

negative effect on a project objective” (PMI, 2000)

- “An uncertain event or set of circumstances that, should it occur, will

have an effect on the achievement of the project’s objectives” (APM,

1997)

- Practitioner’s view: Threat management is norm, opportunity

orientation insufficient

Therefore, uncertainty management is a better term (Chapman and Ward,

2003) > understanding and planning around the sources and implications

of uncertainty.

Uncertainty

- Must be managed from the earliest stages of the Project Life Cycle

- Concerns sources of ‘variability’ in cost, duration and quality> hence,

difficult to estimate costs

- Concerns ‘ambiguity’ (lack of clarity) caused by project personnel;

lack of data; insufficient detail, structure, experience, knowledge;

assumptions; ‘known unknowns’; ‘unknown unknowns’; bias;

insufficient effort to achieve clarity> hence, difficulties for design,

logistics, objectives, priorities (commitment of resources to

objectives), inter-personal relationships (responsibilities, roles,

communication, competence, co-ordination, control)

23

Using the Six W’s framework

- An essential approach during the planning stage of the Project Life

Cycle

- An iterative process

- Assists formulation of base plans and contingency plans (dealing with

uncertainty)

1) Who – who are the parties ultimately involved? e.g. sponsor,

customer, resources

2) Why – what do the parties want to achieve? e.g. profit, customer

satisfaction, efficiency, productivity

3) What – what is it the parties are interested in? e.g. design issues to

achieve product superiority

4) Whichway – how is it to be done? e.g order of tasks

5) Wherewithal – what resources are required? e.g. no. people, skills,

equipment

6) When – when does it have to be done? e.g. milestones, deadlines

Objectives

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Base plans versus contingency plans

Offshore oil or gas laying in the North Sea in the 1970’s involved a number of serious sources of

uncertainty. If no proactive planning had been undertaken, the potential for overwhelming crisis

management was obvious.

The pipes laid in the North Sea at this time were constructed from sections of rigid steel pipe coated

with concrete, welded to the pipeline on the lay barge, then eased over the stern of the barge by taking

up the tension on sets of bow anchors, maintaining a smooth S shape of pipe between the barge and the

ocean floor. As bow anchors approached the lay barge, they were picked up by tugs, carried ahead and

reset. Improperly controlled lowering of pipeline sections could result in a pipe buckle – a key pipe

laying threat. Excessive waves greatly increased this threat. Barges were classified or designated to

indicate maximum safe wave heights for working (3 metres or 1.6 metres). In the face of excessive

wave heights, the operators would put a cap on the open end of the pipe, and lower it to the ocean floor,

retrieving it when the waves reduced. These lowering and lifting operations could themselves lead to

buckles.

The base plans for laying pipe assumed no major sources of uncertainty (opportunities or threats)

would be realised, only minor day-to-day variations in performance that could be expected to average

out.

The potential opportunity provided by unusually good weather and the potential threat posed by bad

weather were assessed using historical weather records. Control was exercised by monitoring progress

relative to the base plan, aggregating all reasons for being early or late until significant departure from

the base plan occurred. A control response was then initiated through a revised base plan based upon

cost-effective contingency planning options. In the case of pipe buckles, contingency planning

revolved around ensuring that enough pipe was available most of the time, as this was the most cost-

effective alternative (Chapman and Ward, 2003).

25

The Project Life Cycle

Phases Stages Steps

Conceptualisation Conceive Trigger event

The product Concept capture

Clarification of purpose

Concept elaboration

Concept evaluation

Planning Design Basic design

The product strategically Development of performance criteria

Design development

Design evaluation

Plan Basic activity and resource-based plans

The execution strategically Development of targets and milestones

Plan development

Plan evaluation

Allocate Basic design and activity-based plan detail

Resources tactically Development of resource allocation criteria

Allocation development

Allocation evaluation

Execution Execute Co-ordinate and control

Production Monitor progress

Modification of targets and milestones

Allocation modification

Control evaluation

Termination Deliver Basic deliverable verification

The product Deliverable modification

Modification of performance criteria

Deliver evaluation

Review Basic review

The process Review development

Review evaluation

Support Basic maintenance and liability perception

The product Development of support criteria

Support perception development

Support evaluation

- 6 W’s applies mainly to conceptualisation, planning

- Iterative process

- Need to deal with uncertainty

6 W’s

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Risk Management Process (RMP)

- The importance of documentation. Clearer thinking, communication,

familiarisation, a formal record, knowledge base.

- Qualitative identifying and structuring

- Quantitative choosing and evaluating

- Pursuit of risk efficiency

- Doing the right things in the right way> effectiveness and efficiency

- Holistic and integrated

Risk Efficiency

Within the North Sea offshore oil project described earlier, hook-up of the pipeline to the platform was

scheduled for August using a barge that could cope with waves up to 1.6m high. Risk analysis

demonstrated that, because this hook-up was late in the overall project sequence there was a significant

chance that hook-up would be delayed until November or December when the chance of waves greater

than 1.6m was very high – delaying the project until Spring. The risk-averse route was to use a 3m

wave height barge which, although had a daily cost that was twice as much, was cheaper than waiting

until Spring.

0.5

1.0

Cumulative

probability

3.0 m barge

1.6 m barge

The 3.0m barge has a lower risk cost because the curve is steeper, and a lower expected cost because there

is less cost variation. On average, the 3.0m barge is cheaper.

Expected cost

for 3.0m

barge

Expected cost

for 1.6m

barge

Cost

27

Risk Efficient Options

An organisation must identify what cost risk it is willing to accept relative

to expected cost. Efficiency is minimum level of risk for a given expected

level of performance.

Cost risk

Expected

Cost

• A

• B

• G

• F

• E

• D

• C Risk-efficient

boundary C - G

Feasible solution

area

Non-feasible

solution area

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3) Human Resource Management

Management

‘the process of planning, organising, leading and controlling the efforts of

organisational members and using all organisational resources to achieve

stated objectives’ (Stoner).

Efficiency – achieving output at minimum cost, ‘doing things right’

(Drucker).

Effectiveness – the required impact through the attainment of goals,

‘doing the right things’ (Drucker).

Leadership

The ability to influence others to achieve objectives.

- Leaders vs Managers

• Leaders motivate others to create and achieve new objectives.

• Managers administer resources to achieve goals.

(Kotter)

• Deciding what to do ….

Management planning and budgeting establishing the direction Leadership

• The people side ….

Management organising and staffing aligning people Leadership

• Delivery ….

Management controlling and problem solving motivating the inspiring Leadership

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- Types of leader

• Charismatic or transformational – lead the organisation through

changes by inspiring their followers

Some traits:-

� Self-confidence

� Assertiveness

� Vision

� Conviction

• Power-orientated

Some possible traits:-

� Wealth

� Knowledge

� Character

� Force

� Trust

� Honesty

� Fairness

� Consistency

� Competence

• Transactional – influence followers to achieve goals through task

clarification and human relationships i.e. implementing type leaders

- Path-Goal Theory

Setting goals and tasks together with subordinates, agreeing what is to be

achieved, how, and with what reward.

- Acceptance Authority Theory

Authority comes from subordinates accepting the power that a manager

holds. The manager must be operating within the ‘zone of acceptance’.

30

- Action-centred Leadership

- Fiedler’s Contingency Model of Leadership

Group performance is dependent upon whether the leadership style of the

leader suits the group, and whether the situation enables the leader to

exert influence over the group – given the style adopted.

- Ohio State Leadership Behaviour

Task

needs

Team

needs

Individual

needs

‘A leader is the sort of person (personality,

character) with the appropriate knowledge, who is

able to provide the necessary functions to get the

task done, and hold the group together, but without

doing it all him/herself –s/he draws out the

contribution of other members of the group to

achieve these ends’ (Adair).

Human

Relations Democratic

Laissez-

faire Autocratic

High

Low

Low High

Initiating structure i.e. task

orientated

Showing

consideration

i.e. people

orientated

31

- Hersey Blanchard’s Situational Leadership Theory

Able &

willing

Able &

unwilling

Unable &

willing

Unable &

unwilling

Follower Readiness i.e. job maturity High Low

Leader

Relationship

Behaviour

High

Low

Leader Task Behaviour High Low

Telling

Selling Participating

Delegating

32

- Dealing with conflict

• Traditional view – Conflict is destructive, unnecessary, harmful.

Requires a firm approach for avoidance.

• Behavioural view – Conflict should be expected. It is generally

harmful but can be nurtured to lead to benefits.

• Interactionist view – Conflict is inevitable and a necessary evil

required to avoid a dysfunctional organisation. Through a ‘devil’s

advocate’ approach individuals may be challenged and directions can

be initiated.

• The stages of conflict – The Pondy Model

Feedback shows that conflict may still be latent – needs to be rectified.

Antecedent conditions e.g.

pre-existing situation

For example,

- Competition for resources such as shareholder

profit vs salaries or working conditions

- Use of power to exploit others

- Dishonesty

- Lack of communication, co-operation, empathy,

willingness to listen and understand other side

Latent conflict

Conflict felt/ perceived e.g.

jealousy, humiliation, depravity,

exploitation, disrespect, social pressure

Manifestation

Aftermath

33

Motivation

‘The psychological process that causes the arousal, direction and

persistence of voluntary actions that are goal directed’ (Mitchell).

The willingness to exert high levels of effort to achieve goals. A need

creates tension which stimulates effort (Stoner and Freeman).

‘The amount of performance improvement possible from a turned-on

team is not a percent or two here or there, it’s hundreds, if not thousands

of percent’ (Tom Peters).

- Maslow’s Hierarchy of needs

Lower order needs must be satisfied before next order becomes a

motivator. The importance of a need declines as it is increasingly

satisfied, and at the same time, the importance of the next level increases.

This theory has not been validated by research, but generally and widely

accepted.

Physiological

Security

Social

Self

Actualisation

Self Esteem

34

- Alderfer’s Three Factor Theory – or ERG Theory �

Unlike Maslow’s hierarchy, each of the three areas operates together as a

continuum rather than a hierarchy, such that a need becomes more

important if it is less satisfied. Lower needs become more important if

higher needs remain less satisfied.

- Herzberg’s Two Factor Theory

1) Satisfiers or Motivators . Under the control of the individual (Intrinsic

– job content) e.g. Achievement, recognition, responsibility, work

content.

2) Dissatisfiers or Hygiene factors. Under the control of the organisation

(Extrinsic – job context) e.g. policies, supervision, pay, work conditions.

- Similarities between some of the motivation theories �

Existence e.g.

Physiological and

safety needs

Relatedness e.g.

Social needs

Growth e.g. self

esteem and self

actualisation

Herzberg Maslow Alderfer

Two-factor theory Needs hierarchy ERG theory

Motivators Self actualisation Growth

Ego, status, esteem

Social

Safety, security

Physiological

Hygiene factors

Existence

Relatedness

35

- McClelland’s Theory of Needs

• Need for achievement

� Desire to do things better

� Seek personal responsibility

� Seek rapid feedback

� Set moderately challenging goals

• Need for power

� Seek competitive situations

� Concerned with prestige, influence

• Need for affiliation

� Seek friendship

� Seek co-operative situations

36

- McGregor’s Theory X and Theory Y

Theory X (working is out of necessity)

• The average person has an inherent dislike of work and will avoid it if possible

• Most individuals must be coerced, directed and threatened with punishment to get them to put

forth adequate effort towards the achievement of organisational objectives

• The average person prefers to be directed, wishes to avoid responsibility, has relatively little

ambition and wants security above all

Theory Y (working is to gain reward)

• The average person does not inherently dislike work. Depending on controllable conditions,

individuals may find work satisfying and undertake it voluntarily, or regard it as a source of

punishment and avoid it if possible

• Man will exercise direction and self-control in the service of objectives to which he is

committed

• Commitment to objectives is a function of the rewards associated with their achievements.

Satisfaction of esteem and self actualisation needs can result directly from effort directed

towards achieving organisational objectives

• The average person learns, under appropriate conditions, not only to accept, but to seek

responsibility

• The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the

solution of organisational problems is widely, not narrowly distributed in the population

• Under the conditions of modern industrial life, the intellectual potential of the average person is

only partially utilised

37

- Reinforcement Theory

� Behaviour Consequence � �

Reinforcement

Originates from stimulus-response experiments performed by Skinner on

rats – when a rat experienced pain from an action, it soon learnt to no-

longer perform the action. Hence, applied to people, there is a link

between individual behaviour and outcome:-

� Behaviour that is rewarded is likely to be repeated – positive

reinforcement.

� Behaviour that is punished is less likely to be repeated – negative

reinforcement.

- Locke’s Goal Setting Theory

People work harder with goals than without. Goals need to be achievable

and challenging, but not too challenging.

- Adam’s Equity Theory

The degree of equity that an individual perceives exists within the work

situation is a major input into their job performance and satisfaction i.e.

for each individual, output is related to input leading to perceived

inequity if different relative to others.

Hence, strength of motivation = f (perceived inequity).

Practically, rewards should be linked to performance.

- Expectancy Theory

Individuals hold ideas about the probability that an action/effort on their

part will lead to an intended outcome, and have preferences for outcomes.

Therefore motivation is achieved by attaining expected outcomes as often

as possible i.e. achieving expectations.

- Hawthorne Effect

People work harder when they feel that they are being observed.

38

- Some motivational Job Characteristics

• Skill variety

• Tasks – important and defined

• Autonomy

• Feedback – on performance

• See end Product

• Job enrichment - interest

• Job enlargement - scope

- Management by Objectives

Manager and subordinate agree:-

• Goals

• Plan to achieve goals

• Corrective actions to keep on target

• Periodic measurements, formal reviews, performance appraisals

- Management by wandering around

Encourages lines of communication between managers and subordinates

39

Teamwork � � � � � � � � � � � � � � � � � �

- Characteristics of Effective Workgroups (McGregor et al)

• Shared goals

• Commitment to group

• Acceptance of group values

• Mutual trust

• Full participation

• Consensus decision making

• Good communication

• Open discussion

• Some conflict

• Non-dominating chair

• Constant evaluation

• Moderate size – optimal size 4 to 6? – lose productivity if too big

• Pre-preparation i.e. hard working culture

Empowerment

Co-operation

Goals

Leadership

Roles

Open Communication

Trust

Respect

Commitment

Accountability

Quality Standards

Shared

Expertise

Expectations

Customer Needs

Information

Documentation

40

- Characteristics of Effective Teamwork (Zurich Financial Services)

Communication

Trust Common Ground

Time-management Empowering Rules

Instructing Faith Processes

Helping Patience Understanding

Guiding Relationships Commitment

Listening Sensitivity Objectives

Sharing Honesty Co-ordination

Responding Ethics Success

Constructive feedback Integrity Praise

Informing Appreciation

Co-operation

Milestones

Common incentives

- Stages of communication

Communication – ‘not just telling it but getting it understood’ �

5) Ritual and cliché e.g. “Good morning”

4) Gossip and facts

3) Ideas and judgements

2) Feelings,

emotions

1) Peak Increasing

risk and

trust

41

- The Ground Rules for Human Interaction

Personal gain and survival through relationships based upon

Reciprocal benefit Exploitation of weaknesses/

vulnerability and/or good

nature

Increasing

Risk of exploitation

- Harmony - Blame culture

- Goodwill - Conflict

- Give and take - Aggression

- Support - Selfishness

- Constant appraisal - Intolerance

- Wariness - Deceit

- Vulnerability - Self-preservation

- Peace of mind - Stress

42

- Group Problem Solving

• Advantages

� More strategies

� Increased knowledge and skill

� Successful implementation more likely

� Snowball effect

� Increased legitimacy

� Less errors

� Positive synergy

• Disadvantages

� Leader domination

� Groupthink: symptoms

� Sense of invulnerability

� Pressure to conform

� Rationalisation and discounting of warnings

� Ambiguous responsibility – social loafing

� Clashing ideas

� Different goals

� Extended decision time

43

- Stages in group development

• Tuckman’s Model

�

• Gersick’s Punctuated-Equilibrium Model

�

Adjourning

Performing

e.g.

getting on

with tasks

Norming

e.g.

Closer

relationships

and

cohesiveness,

agreements

Storming

e.g.

Conflict

concerning

ideas

Forming

e.g.

Defining

goals and

acceptable

behaviour

Immature

(inefficient

and

ineffective)

Mature

(efficient

and

effective)

Immature Group

• Sticking to individual

• No listening

• Uncertainty

• Fight and flight

• Fixed ideas

• Jockeying for position

Rational Group

• Polite listening

• Negotiating

• Rigid procedure

• Cool discussion

• Fixed system

Mature Group

• Flexible systems

• Real listening

• Giving up individual aim

• Creativity

• Motivation and commitment

• Total involvement, common purpose

Forming and

norming

Low

performing

Storming High

performing

Adjourning

44

- Decision-making techniques

• Brainstorming – Face-to-face, all thoughts thrown into the “cooking

pot”

• Nominal group technique – Face-to-face, individually written thoughts

suggested in turn

• Delphi Technique – Working remotely, thoughts sent to central

location, compiled and distributed. Process repeats.

- Team roles within a successful team – Belbin

• Company worker

• Shaper

• Resource Investigator

• Team Worker

• Chair

• Plant

• Monitor Evaluator

• Completer Finisher