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.

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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.

3
 Employability

Personal Skills
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

Understanding Workplace Demands

1) Job specification – i.e. tasks
2) Culture – i.e. expectations
3) The need to fulfil objectives – e.g. people, marketing, finance

Ability to Secure Employment

1) Presentation and selling skills
2) Formulating and implementing employment plans

Achievable through work experience

Achievable through training and education

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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

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Strategic Planning

Where do we want to be?

Closing the gaps

Where are we now?

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 Decision-making Processes

Outside
change Outside

Alternatives
Set objectives Need for a Problem Search Alternatives Evaluate Choice Implement
decision definition Alternatives
Alternatives

Inside Inside
change Monitor

Feedback

(Gore et al, 1992,Harrison, 1981)

Strategic Position Environmental

objectives audit analysis

Required Forecast future

performance

Performance gap

Corporate planning

Business plan

Operational budgets

(Gore et al, 1992)

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 Structure

External

Demography
Economics
Politics
Education Shareholders
Finance Orgs.
Customers The
Suppliers
Ecology Culture
Organisation
Unions Competitors
Employees
Government
Media

Technology

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

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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!

Car Production

Britain

France
Germany

80 Italy

2001 2003

Sourced from the Economist, September 2004.

- Gap Analysis

Now Future
1) Land Rover

- Confrontational shop floor culture Japanese-style working practices

- Poor quality - Small work groups for greater autonomy
- Production inefficiency - Herzberg’s hygiene factors
- Centres of excellence e.g. statistical quality
control
2) General
- Low profit and good growth - Respond to customer needs
- Need government support - Product variety
- Reliance upon consumer finance - Flexible production lines
- Increasing long-term liabilities. - Ecologically friendly electric hybrid car
Therefore unattractive to stock - Cost reduction programmes
market. - Broad supply chain
- Low labour and materials cost10of China
- Final assembly by suppliers
 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).

Project Management Issues

Time Cost/
Budget
Scope
(quality)

Workload

Contingency Estimates

Task
Priorities
Skills Commitment People Equipment
Required

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) :

n
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

30 30 30 30 30 30 30 30 30 30

Project A YRS
1 2 3 4 5 6 7 8 9 10

100

25 25 25 25 25 27 27 27 27 27

Project B YRS
1 2 3 4 5 6 7 8 9 10

80

Project A
2 10
PV of earnings = 30/(1.12) + 30/(1.12) + … + 30/(1.12) = 169.51
NPV of project = 169.51 – 100 = £69.51

Project B
2 10
PV of earnings = 25/(1.12) + 25/(1.12) + … + 27/(1.12) = 145.35
NPV of project = 145.35 – 80 = £65.35

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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

14
Personnel Allocation

Priorities

15
Estimates of Cost

Gantt Chart

16
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”.

Early Early
start finish

0 4 10 12 16 21

A F K
1 4 5 19 2 21 21 5 26
4 10
0 0 11 16 16 20

C
Start G J
5 6 11
0 0 0 11 5 16 16 4 20

0 3
3 4 4 11
B 11 19 20 26 26 29
0 3 3 D E
3 1 4 4 7 11 H L M
12 8 20 20 6 26 26 3 29

For Early Start: Look LEFT – Latest Early Finish Time

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

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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
2 2 2 2 2 2 2
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

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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)

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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 Objectives

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

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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).

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 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
6 W’s
Plan
The execution strategically
Development of performance criteria
Design development
Design evaluation
Basic activity and resource-based plans
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

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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.

1.0

3.0 m barge
Cumulative
probability
1.6 m barge

0.5

Cost
Expected cost Expected cost
for 3.0m for 1.6m
barge 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.

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 Risk Efficient Options

Non-feasible
solution area
Cost risk

•A

•G
Feasible solution
•B area
•F

•E
•D •C
Risk-efficient
boundary C - G

Expected
Cost

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.

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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.

• 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

(Kotter)

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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’.

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- Action-centred Leadership

‘A leader is the sort of person (personality,

Task character) with the appropriate knowledge, who is
needs 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
Team Individual
needs needs
contribution of other members of the group to
achieve these ends’ (Adair).

- 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

High

Human Democratic
Relations

Showing
consideration
i.e. people
orientated Laissez- Autocratic
faire

Low

Low High

Initiating structure i.e. task

orientated

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- Hersey Blanchard’s Situational Leadership Theory

Low Leader Task Behaviour High

High

Participating Selling

Leader
Relationship
Behaviour

Delegating Telling

Low

Able & Able & Unable & Unable &

willing unwilling willing unwilling

High Follower Readiness i.e. job maturity Low

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- 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

Antecedent conditions e.g. For example,

- Competition for resources such as shareholder
pre-existing situation 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

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

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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

Self
Actualisation

Self Esteem

Social

Security

Physiological

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.

33
- Alderfer’s Three Factor Theory – or ERG Theory

Existence e.g. Relatedness e.g. Growth e.g. self
Physiological and Social needs esteem and self
safety needs actualisation

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


Herzberg Maslow Alderfer
Two-factor theory Needs hierarchy ERG theory

Motivators Self actualisation Growth

Ego, status, esteem

Hygiene factors Social Relatedness

Safety, security Existence

Physiological

34
- 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

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 - 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

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- 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.

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- 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

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Teamwork


Accountability
Leadership

Expectations
Co-operation

Open Communication
Roles
Shared Goals
Expertise Information Respect

Empowerment Trust

Commitment Quality Standards

Documentation Customer Needs

- 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

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 - 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’


Increasing
risk and 1) Peak
trust
2) Feelings,
emotions

3) Ideas and judgements

4) Gossip and facts

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

40
- 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

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- 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

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 - Stages in group development

• Tuckman’s Model

Mature
(efficient
and
effective)

Immature
(inefficient
and
ineffective)

Forming Storming Norming Performing Adjourning

e.g. e.g. e.g. e.g.
Defining Conflict Closer getting on
goals and concerning relationships with tasks
acceptable ideas and
behaviour cohesiveness,
agreements

Immature Group Rational Group Mature Group

• Sticking to individual • Polite listening • Flexible systems
• No listening • Negotiating • Real listening
• Uncertainty • Rigid procedure • Giving up individual aim
• Fight and flight • Cool discussion • Creativity
• Fixed ideas • Fixed system • Motivation and commitment
• Jockeying for position • Total involvement, common purpose

• Gersick’s Punctuated-Equilibrium Model


Forming and Low Storming High Adjourning
norming performing performing

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- 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

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