MANAGEMENT THEORY

1. MANAGEMENT THEORY Year 3 Built Asset Management Dr. Margaret Nelson Room M1-06 M.Nelson@bolton.ac.uk

2. LECTURE OUTLINE • Lecture Overview • Motivational Theories • Maslow – Hierarchy of Needs • McGregor – Theory X & Y • Hertsberg – Hygiene Factor Theory • McClelland – Three Needs Theory • Handy – Motivational Calculus Theory • Adams – Goal Setting/Equity Theory • Vroom – Expectancy Theory • Leadership Theories • Group Theories

3. MASLOW • Abraham Maslow is considered to be the father of Humanistic Psychology, also known as the "Third Force". • Maslow's motivation theory states that man's behaviour is controlled by both internal and external factors. • In addition he emphasizes that humans have the unique ability to make choices and exercise free-will.

4. MASLOW’S HIERARCHY OF NEEDS

5. McGREGOR • Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'. • McGregor's XY Theory remains central to organizational development, and to improving organizational culture. • McGregor maintained that there are two fundamental approaches to managing people. Many managers tend towards theory x, and generally get poor results. Enlightened managers use theory y, which produces better performance and results, and allows people to grow and develop

6. McGREGOR’S THEORY X & Y

7. 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. McGREGOR’S THEORY X & Y (2)

8. HERTZBERG • Herzberg was the first to show that satisfaction and dissatisfaction at work nearly always arose from different factors, and were not simply opposing reactions to the same factors, as had always previously been (and still now by the unenlightened) believed. • He showed that certain factors truly motivate ('motivators'), whereas others tended to lead to dissatisfaction ('hygiene factors'). • According to Herzberg, Man has two sets of needs; • one as an animal to avoid pain, and • two as a human being to grow psychologically. • He illustrated this through Biblical example: • Adam after his expulsion from Eden having the need for food, warmth, shelter, safety, etc., - the 'hygiene' needs; and • Abraham, capable and achieving great things through self-development - the 'motivational' needs.

9. HERZBERG’S MOTIVATORS & HYGIENE FACTORS

10. HERZBERG’S MOTIVATIONAL THEORY

11. McCLELLAND • David McClelland is most noted for describing three types of motivational need, which he identified in his 1987 book, Human Motivation: • achievement motivation (n-ach) • authority/power motivation (n-pow) • affiliation motivation (n-affil)

12. HANDY • Charles Handy's Motivation Calculus is an extension of Maslow's Hierarchy of Needs. • It addresses cognitive and external reference points that the original Hierarchy of Needs five-level model of does not. • Handy's Motivation Calculus attempts to cater for complexities and variations in people's situations beyond the reach of the original Hierarchy of Needs model. • Motivation Calculus • Needs - maslow factors, personality characteristics, current work environment, outside pressures and influences. • Results - we must be able to measure the effect of what our additional efforts, resulting from motivation, will produce. • Effectiveness - we decide whether the results we have achieved meet the needs that we feel.

13. ADAMS • John Stacey Adams, workplace and behavioural psychologist, put forward his Equity Theory on job motivation in 1963. • Has similarities with Charles Handy's extension and interpretation of previous simpler theories of Maslow, Herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and variable factors affect each individual's assessment and perception of their relationship with their work, and thereby their employer

14. ADAM’S EQUITY THEORY

15. VROOM • Vroom's expectancy theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). • Rewards may be either positive or negative. • The more positive the reward the more likely the employee will be highly motivated. • Conversely, the more negative the reward the less likely the employee will be motivated. • Introduced three concepts • Valence is the importance that the individual places upon the expected outcome of a situation. • Expectancy is the belief that output from the individual and the success of the situation are linked, e.g. if I work harder then this will be better. • Instrumentality is the belief that the success of the situation is linked to the expected outcome of the situation, e.g. it's gone really well, so I'd expect praise

16. LEADERSHIP

17. LEADERSHIP THEORIES • Great Man Theory • Path-Goal Theory • Trait Theory • Behavioral Theories • Role Theory • The Managerial Grid • Participative Leadership • Lewin's leadership styles • Likert's leadership styles • Situational Leadership • Hersey and Blanchard's Situational Leadership • Vroom and Yetton's Normative Model • House's Path-Goal Theory of Leadership • Contingency Theories • Fiedler's Least Preferred Co-worker (LPC) Theory • Cognitive Resource Theory • Strategic Contingencies Theory • Transactional Leadership • Leader-Member Exchange (LMX) Theory • Transformational Leadership • Bass' Transformational Leadership Theory • Burns' Transformational Leadership Theory • Kouzes and Posner's Leadership Participation Inventory

18. READING LIST • Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (ed.), Advances in experimental social psychology. Volume 2. London: Academic Press. • Handy, C. (1993), Understanding Organizations, Penguin Books Ltd • Handy, C. (1995), The Age of Unreason, Random House. 1989 edition in library. • Herzberg, F (1968), Work and the Nature of Man, London : Crosby Lockwood Staples. • Herzberg, F. (1993), The Motivation to Work, Transaction Publishers. 1959 edition in library. • Maslow, A. H. (1987), Motivation and personality, London: Harper Collins. • Maslow, A. H. (1998), Toward a Psychology of Being, 3rd Revised Edition, John Wiley & Sons. 1968 edition in library. • McClelland, D. C. (1987), Human Motivation, Cambridge, UK: Cambridge University Press. • McGregor, D. (1968), Leadership and Motivation, Boston, Mass: MIT Press. • McGregor, D. (2006), The Human Side of Enterprise, McGraw-Hill Publishing Co. • Vroom, V. H. (1994), Work and Motivation, Jossey Bass Wiley. Originally published in 1964.

19. READING LIST • www.businessballs.com • http://www.joe.org/joe/1998june/rb3.html • http://www.arrod.co.uk/archive/concept_vroom.php • http://changingminds.org/disciplines/leadership/theories/leadership_theories.htm • http://www.valuebasedmanagement.net/methods_goleman_leadership_styles.html • http://www.valuebasedmanagement.net/methods_tannebaum_leadership_continuum.htmlhttp://www.valuebasedmanagement.net/methods_tannebaum_leadership_continuum.html • http://www.valuebasedmanagement.net/methods_path_goal_theory.html • http://www.infed.org/leadership/traditional_leadership.htm • http://www.swlearning.com/management/leonard/leonard_9e/Text_14-1.pdf • http://www.onepine.info/mgrp3.htm