Principles of Supervision

1. Principles of Supervision Solving Problems and Decision Making Chapter 7

2. Learning Goals List the seven steps in the decision-making process Describe expected value analysis Explain the four types of decision styles Identify and explain the common decision-making errors Describe the two types of decision problems and the two types of decisions that are used to solve them Compare and contrast group decision and individual decision making List and describe three techniques for improving group decision making Explain three different ethical viewpoints

3. The Decision Making Process Identify the problem Collect relevant information Develop alternatives Evaluate each alternative Select the best alternative Implement the decision Follow up and evaluate

4. The Decision Making Process

5. The Decision Making Process Identify the problem Discrepancy between an existing and desired state of affairs Identify the problem not just the symptom Identify the correct problem Collect relevant information All facts relevant to the problem Requires quality information

6. The Decision Making Process Develop alternatives Creative endeavor that should embrace all alternatives The more alternatives the better the solution may be Evaluate each alternative Strengths and weaknesses Cost and time Best case/worst case

7. The Decision Making Process Select the best alternative The ingenuity in developing and analyzing alternatives and your risk propensity will play a role Implement the decision Convey the decision to those affected and get their commitment Assign responsibilities, allocate necessay resources, clarify deadlines

8. The Decision Making Process Follow up and evaluate Measure results Did it work on the problem you identified Did it create any new problems or challenges The decision process will be used in many situations

9. Decision Tools Expected value analysis � calculates the expected value of a particular alternative by weighting its possible outcomes by the possibility of achieving the alternative, then summing up the totals derived from the weighting process Permits decision makers to place a monetary value on the various consequences of a decision

10. Decision Tools Decision trees � a diagrammatic techniques for analyzing a decision by assigning probabilities to various outcomes and calculating payoffs for each Useful for analyzing � hiring, marketing, investment, equipment purchases Encompasses expected value analysis by assigning probabilities to each possible outcome

11. Decision Tools Marginal analysis Helps decision makers optimize returns or minimize costs by by dealing with the additional cost in a particular decision rather than the average cost Analyzes decisions in terms of their incremental costs and revenues

12. Management Information Systems Provides managers with needed and accurate INFORMATION on a regular and timely basis Collects raw, unanalyzed facts and figures (data) and turns it into information The quality of a decision depends on the quality of a manager�s information Are becoming decentralized � pushed down to the end-users

13. Information Vs. Data Data � raw, unanalyzed facts such as names, numbers, or quantities Information � analyzed and processes data, used by managers to make decisions End users � users responsible for decision and control of systems

14. Decision Making Styles Recognize people differ along two dimensions Way of thinking � logical and rational vs. intuitive and creative Tolerance for ambiguity � high vs. low

15. Way of Thinking Some people are logical and rational, they process information serially Others are intuitive and creative, they perceive things as whole

16. Tolerance for Ambiguity Some people have a high need to structure information in ways that minimize ambiguity Others are able to process many thoughts at the same time

17. The Decision Style Model

18. Directive Style Low tolerance for ambiguity Very efficient and rational May make hasty decisions on little information without assessing alternatives Make decisions fast Tend to focus on the short run

19. Analytical Style Both logical and high tolerance for ambiguity No snap decisions � they want more information � to consider alternatives Very deliberate and thoughtful Careful decision-makers with the ability to adapt or cope with new situations

20. Conceptual Style High tolerance for ambiguity and more intuitive than rational Very broad in their outlook,consider many alternatives Focus is long-range and they are good at finding creative solutions to problems

21. Behavioral Style Low tolerance for ambiguity Good interpersonal skills, work well with others Concern with achievements of subordinates Attempt to avoid conflict and seek acceptance

22. What�s the Point of the 4 Styles Style used Some supervisors rely on their dominant style Others can shift their style depending on the situation Problem solving influenced by the supervisor�s style

23. What�s the Point of the 4 Styles Education Can develop rational decision-making skills Explains why business students, managers and executives tend to score the highest in analytical style Conflict Arises when styles clash This emphasizes the value of being able to shift styles, depending on the situation

24. Ethics In Decision Making Common rationalizations It�s not really illegal or immoral It�s in my (or the organization�s) best interest No one will find out (MY Favorite) Since it helps the organization, the organization will condone and protect me

25. Three Views on Ethics Utilitarian view Rights view Justice view

26. Utilitarian View Decisions based solely on the basis of outcomes Goal is to provide the greatest good for the greatest number Consistent with the business goals of efficiency, productivity, and high profits, tends to dominate business decision making

27. Rights View Decisions emphasize respect and protecting the basic rights of individuals Decision making is consistent with fundamental liberties and privileges and privileges as set forth in documents like the bill of rights

28. Justice View Decisions that seek fair and impartial distribution of benefits and costs Typically favored by unions as it justifies paying people the same wage for a given job, regardless of performance differences Protects the interests of the underrepresented but reduces risk taking, innovation and productivity

29. Group Decision Making Advantages Provides more complete information Generates more alternatives Increases acceptance of a solution Increases legitimacy

30. Group Decision Making Disadvantages Time consuming Minority domination Pressures to conform Ambiguous responsibility

31. Group Decision MakingAdvantages Vs. Disadvantages

32. Group Decision Making More accurate Less speed More creative More acceptance

33. Stimulating Creative Problem Solving Attribute listing � individualized brainstorming, isolation of major characteristics of traditional alternatives, which are considered in turn and changed in every conceivable way

34. Stimulating Creative Problem Solving Vertical Thinking � highly rational, orderly thinking Lateral Thinking � sideways, nonconsequential thinking Synectics � use of analogies to make the strange familiar and the familiar strange

35. Group Decision Making Techniques Brainstorming Nominal group technique Electronic meetings

36. Brainstorming A technique for overcoming pressures to conform that retard creative idea development A process that specifically encourages alternatives � by keeping criticism at bay Free-wheeling, no holds barred

37. Nominal Group Technique All members are present but are required to operate independently, unlike traditional interacting groups Reduces the term It restricts discussion but does not restrict independent thinking

38. Electronic Meetings A group of individuals make decisions by communicating anonymously on computer networks Blends nominal group technique with sophisticated computer technology Excellent way to exchange information and make decisions

39. Principles of Supervision Motivating Your Employees Chapter 8

40. Learning Goals Define motivation Identify and define five personality characteristics relevant to understanding the behavior of employees at work Explain the elements and the focus of the three early theories of motivation Identify the characteristics that stimulate the achievement drive in high achievers Identify the three relationships in expectancy theory that determine an individual�s level of effort List actions a supervisor can take to maximize employee motivation Describe how supervisors can design individual jobs to maximize employee performance Explain the effect of workforce diversity on motivating employees

41. What Is Motivation? The willingness to do something Is conditioned by the action�s ability to satisfy some need for the individual

42. Need A physiological or psychological deficiency that makes certain outcomes seem attractive An unsatisfied need (need deficiency) creates tension This tension causes a person to act in such a way (is driven) to reduce tension, thereby satisfying the need The higher the degree of tension, the greater the drive

43. Motivation and Needs

44. Individual Differences and Motivation You must understand individual differences � different cultures, backgrounds, ages, values What motivates one person, may not motivate another

45. Personality Types Internal Locus of Control Belief that you control your own destiny �You are the master of your own domain�

46. Personality Types External Locus of Control Belief that you are a pawn of fate What happens to you is based on luck or chance Usually results in lower job satisfaction More alienation on job � a bad evaluation is because of uncontrollable external factors

47. Personality Types Machiavellianism (High Machs) Tendency to be manipulative �Ends justify the means� Tend to be motivated on jobs that require bargaining skills or where there are substantial rewards for winning Are frustrated when forced to follow rules

48. Personality Types Self-esteem The degree to which people like or dislike themselves People with high SE believe they possess more of the ability they need to succeed People with low SE are more susceptible to external influence Low SE�s are dependent on receipt of positive evaluations and more likely to seek approval of others

49. Personality Types Self-monitoring Those with high self-monitoring are very adaptable and can easily adjust their behavior to external situational factors (as opposed to others who are rigid and inflexible) If high � are sensitive to external cues and capable of presenting striking contradictions between public and private personas

50. Personality Types Self-monitoring If low in this trait, they can�t disguise themselves � tend to display their true feeling and beliefs in every situation

51. Personality Types Risk Propensity The willingness of a person to take chances If high, the person can make decisions faster with less information Tend to prefer riskier jobs such as stock broker or firefighter

52. Understanding Personality & Effective Supervision Match people to jobs Knowing personality traits allows you better understand how people approach problem-solving, decision making, job interactions, job responsibility and job satisfaction Understanding locus of control can help you understand your employees� degree of job satisfaction and their willingness to accept responsibility for their own actions

53. Needs Theories - Maslow Maslow�s Hierarchy of Needs Physiological � hunger, thirst, shelter Safety � security and protection Social � affection, interpersonal relationships Esteem � self-respect, achievement status Self-actualization � achieving full potential Usually thought in the form of a pyramid

54. Maslow�s Hierarchy of Needs

55. Maslow�s Hierarchy of Needs Propositions A need needs to be satisfied before moving on to the next level A satisfied need no longer motivates A need doesn�t have to be completely satisfied, just substantially satisfied

56. McGregor�s Theory X � Theory Y Theory X � �The Slug Theory� Employees dislike work, will attempt to avoid it Employees must be coerced, forced, controlled, or threatened to work Will shirk responsibilities and seek formal direction Security is paramount, will display little ambition

57. Theory Y Employees view work as being as natural as rest or play A person will exercise self-direction and self-control if he or she is committed to the objectives Employees can learn to accept, even seek responsibility The ability to make good decisions is spread throughout the population, not just by supervisors

58. Theory X � Theory Y

59. Theory X � Theory Y Are you a Theory X or a Theory Y supervisor? Theory X may become a self-fulfilling prophecy Theory X managers may believe their assumptions apply to all people, same for Theory Y managers

60. HerzbergMotivation � Hygiene Theory States that the opposite of satisfaction is not �dissatisfaction� but �no satisfaction� States that the opposite of dissatisfaction is �no dissatisfaction� The factors leading to job satisfaction are separate and distinct from those that lead to dissatisfaction

61. Contrasting ViewsHerzberg vs. Traditional

62. HerzbergMotivation - Maintenance What this means is supervisors who seek to eliminate dissatisfaction on the job will not necessarily create satisfaction They will only placate instead of motivate

63. HerzbergMotivation - Hygiene Hygiene factors �also known as maintenance factors � can create dissatisfaction but if properly managed will only provide �no dissatisfaction � not satisfaction or motivation Company policy/administration Quality of supervision Relationships with supervisor/peers/subordinates Work conditions -Safety $$$$$$$$$$$$$$$$ - fall here Security

64. HerzbergMotivation - Hygiene Motivators also known as satisfiers Certain characteristics of the organization tend to be related to job satisfaction, include: Achievement Recognition The work itself Responsibility Advancement Growth

65. Contrasting Views The classical view says that the opposite of satisfaction is dissatisfaction Herzberg�s view - removing dissatisfiers from the job does not necessarily make the job satisfying In other words these factors don�t motivate positively

66. Contrasting ViewsHerzberg vs. Traditional

67. Herzberg�s Theory Maintenance factors don�t motivate but if they are bad or not taken care of they cause dissatisfaction (motivate negatively) To motivate you must emphasize the motivation factors � achievement, recognition, the work itself, responsibility and growth

68. McClelland�s Need for Achievement The drive to do something better than it has ever been done before Intrinsic motivation - people high in nAch are self-motivated and require little direct supervision Set challenging goals but are not gamblers

69. McClelland�s Need for Achievement People high in achievement avoid very easy or very difficult tasks Prefer jobs with personal responsibility, feedback, and an intermediate degree of risk Don�t always make good supervisors, prefer doing things themselves rather than leading others

70. Reinforcement Theory States that people will exert higher levels of effort in tasks that are reinforced Totally ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action

71. Reinforcement Theory Behavior that is reinforced is repeated Proposes that feelings, attitudes, expectations, and similar cognitive variables have no impact on behavior Has an important influence on motivation but it is not the only influence

72. Equity Theory Employees perceive what they get (outcomes) from their efforts in relation to what they give (inputs) to their job situation Employees compare their input-outcome ratios with the input-outcome ratio of others

73. Equity Theory

74. Equity Theory If the perception is that ratios are equal, equity exists and the employee feels fairly treated If the perception is that ratios are unequal, inequity exists and the employee will attempt to correct the situation, whether it is negative or positive inequity

75. Equity Theory Negative equity behavior Reduced work effort Production of lower quality work Sabotage Skipped work or missed days Resignation

76. Expectancy Theory Postulates that individuals analyze effort-performance, performance reward, and rewards-personal goals relationships, and that their level of effort depends on the strengths of their expectations that these relationships can be achieved

77. Expectancy Theory Explains why workers aren�t motivated on their jobs and merely do the minimum necessary Postulates three relationships Effort-performance Performance-rewards Rewards-personal goals

78. Expectancy Theory

79. Effort-performance �If I give maximum effort, will it be recognized in my performance evaluation?� If the skill level is deficient, or if the appraisal system is poorly designed, the employee may believe no matter how hard they work, they may not get a good appraisal � result � low motivation

80. Performance-rewards �If I get a good appraisal, will it lead to organizational rewards?� Many employees see this relationship as weak because organizations reward a lot of things other than appraisals.

81. Rewards-personal Goals �If I�m rewarded, are they the rewards that I find personally attractive?� If the perceived value of the reward is not worth it to the employee, motivation will be sub maximized

82. How Does One Motivate? Recognize individual differences Match people to jobs Set challenging goals Encourage participation

83. How Does One Motivate? Individualize rewards Link rewards to performance Check for equity Don�t ignore money

84. Motivating a Diversified Work Force Diversity is the norm Women Ethnic minorities Immigrants Seniors Cultural differences

85. Motivating a Diversified Work Force Recognize the need for flexibility Employees have different needs and goals Men value autonomy more than women Women value the opportunity to learn, convenient work hours, and good interpersonal relationships What motivates a single mother may not motivate an older male

86. Motivating a Diversified Work Force Recognize cultural differences Capitalism/individualism vs collectivisim Self-interest vs. loyalty to organization or society Willingness to accept risk vs. concern with performance

87. Motivating a Diversified Work Force Methods Flexible work schedules Benefit needs Physical work settings Child care Job sharing Schooling

88. Motivating Low-pay Service Workers Challenges � these jobs pay little and offer limited opportunities for advancement Options for motivation Job flexibility � scheduling and variety Provide recognition Job rotation Capitalize on the role of social support, group cohesion

89. Motivating Professionals Are equity sensitive � compare salary, job assignments with peers Place high value on certain job factors Autonomy Personal growth Recognition Challenging work

90. Motivating Professionals Allegiance priorities Will often place their allegiance to their field of expertise over the organization that employees them Rewards offered outside the organization often take precedent over those from within

91. Pay-for-Performance Programs Compensation plans that pay employees on the basis of some performance measure instead of the time on the job Piece-rate plans Competency-based compensation Gain sharing Wage incentives Lump-sum bonuses

92. Pay-for-Performance Programs Can be used with individuals, teams, departments or based on overall organizational productivity and profits Very compatible with Expectancy Theory Motivational viewpoint � pay is based on performance Cost viewpoint � performance based bonuses avoid the fixed expense of salary increases

93. Employee Stock Ownership Plans A compensation program in which employees become part owners of their organization by receiving stock as a performance incentive Allows employees to purchase additional stock at attractive prices

94. Employee Stock Ownership Plans In effect, employees become part- owners of the organization Research indicates that ESOPS, given time, increase employee satisfaction and frequently result in higher performance

95. Designing Motivating Jobs Job design � the way tasks are designed to form complete jobs Some jobs are routine � tasks are standardized and repetitive Some jobs are nonroutine � tasks are varied requiring a large number of diverse skills

96. Job Characteristics Skill variety Task identity Task significance Autonomy Feedback When these characteristics are all present, the job becomes enriched and potentially motivating

97. Job Enrichment Increases the degree to which a worker controls the planning, execution, and evaluation of his or her work Accomplished by organizing tasks so as to allow the worker to do a complete activity