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Organizat ion Behaviourhttp://www.veryard.com/orgmgt/student.htm

Behaviour & Motivation

© Copyright 2002 Veryard Projects Ltd & Antelope Projects Ltd. All rights reserved. 1


Theory XYZ

Productivity

Motivation

Measurement

Performance

Satisfaction

Core Notions

• EFF words: Effect, Effectiveness,Efficiency, Effor t.

• Hygiene Factors

• Job Satisfaction

• Motivation - Extrinsic andIntrinsic

• Performance

• Productivity

• We tend to measure thingsthat are easy to measure andthis affects our notion ofperformance

• There are huge culturaldifferences in whether hygienefactors are considered to bethe business of organisations

• The psychological contractbetween individual, team andorganisation is rarely explicit

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Systems

We are interested in the (observed) behaviour of systems atall levels: including individuals, groups and organizations.

Behaviour

GroupsIndividuals Organizations

Observer

we recognize

Performance

• How do we respond to agood performance?

– From a musical group or

sports team? – From a computer or

motor car?

– From an employee orproject team?

– From a company

• How do we respond to apoor performance?

• How do we tell the difference?

– Objectively

– Subjectively

• Performance has several dimensions

– Quality of output

– Quantity of output

– Speed, effort , efficiency,productivity, throughput,effectiveness, consistency

– Competit ive success

– …

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Performance& Risk

• Outstanding performancecomes from taking risks, notfrom playing safe.

• Learning and developmentoften demand that you leaveyour “comfort zone”.

Musical Example

• You don’t go to a concert hallto hear a competent,technically perfect performance

• You go to hear someone takingthe music to new heights of

passion and articulation - evenif they play a few wrong notesalong the way.

Business Example

• For class discussion …

but performance of

What exactly?

• Suppose a child gets good score onschool test.

• Does this measure:

– The Ability of the Child?

– The Genetic or Cultural Inheritance?

– The Socio-Economic Power orDetermination of the Parents?

– The Skill and Dedication of the Teachers?

• It seems we are measuring theperformance of a test-passing system.The child is one important component ofthis system.

• Performance always belongsimplicitly to a system.

• When a FormulaOne driver

wins a race, or when acomputer beats a humangrandmaster at chess ...

• … this success rightlybelongs to the team ...

• … and the driver orcomputer is merely themember of the team withthe fastest reactions

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PerformanceMeasurement

Dilemma

• Measurements are always unfair

– Variations in individual or teamor business performance may bedue to external factors

• Measurements are always

necessary – Encourage and motivate success

– Allocate scarce resources

– Learn and improve

• So what do we do?

Possible t actics

• Eliminate external factorsaltogether - “ level playingfield”

• Adjust performance toallow for external factors

• Positive discrimination

• “Golf handicap” system -to give all players an equalchance.

• Accept unfairness as a factof life.

ManagingPerformance

• W hat is management for?

– What purpose do managers fulfil?

– What roles and responsibilities

do managers have?

• W hat is management wort h?

– How can management activity bevalued and evaluated?

– How can management activity beenhanced?

• Influencing controlling &improving performance

– Effect of measurement on themix of tasks performed

– Sub-optimisation of outputsdue to incentives

– Collusion with manager inpresenting performance

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Motivationcan improve

performance

Int rinsic Mot ivat ion

• Job Satisfaction

– Knowledge Fit

– Psychological Fit

– Efficiency Fit

– Task Structure Fit

• Task Variety & Interest

• Autonomy & DirectFeedback

• Task Identity, Meaning &Significance

– Ethical Fit

Extrinsic Mot ivat ion

• Hierarchy of Needs (Maslow)

• Posit ive

– Pay & Conditions

– Encouragement / Praise

– Reward / Incentive Schemes• Negative (Hygiene Factors)

– Survival

– Comfort (Anxiety / Stress)

– Fairness (Actual / Perceived)

Intrinsic motivators are typically

better (more powerful, lasting,effective) than extrinsic motivators

Excessive levels of str essmay inhibit creativity anddissipate effort

Stress andAnxiety can

affect performance

P e r f o r

m a n c e

Stress

Moderate levels of stressmay stimulate creativityand encourage effort

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Automation

Purpose of Aut omat ion

• Improved performance: speed,efficiency, productivity,reliability

• Improved management &manageability: predictability,

feedback, control.

Measuring the Impact

• Cost

• Risk

• Return

• Side-Effects

eff words

Effort Efficiency Effect iveness• We can measure or estimate

the input, output or both.

• We can observe or infer the

internal behaviour of thesystem.

• The performance of a systemmay depend on

– task / scenario

– competit ion / benchmark

– environment / context

• The measurement depends onwhat is included.

Investment ProductivityReturn onInvestment

Fuel Power &Efficiency

SpeedDistance

Input Process Output

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Measurement

Business Perfor mance

• Revenue

• Profit

• “Bottom Line”

• Shareholder Value

• Who makes these measurements?

• How are these measurements used, by whom?

Team Performance

• Effort

• Contribution

• Achievement of SpecifiedTargets

• Who makes these measurements?

• How are these measurements used, by whom?

EmployeeShare & Bonus

Schemes

• How might the followingstakeholders regard employeeshareholding schemes?

• Investors • Top Managers

• Line Managers

• Shop Floor Workers

• Trades Unions

• Customers

• Government

Int erest ing Example

• Large American company

• Senior management pay variesby ± 25% according tocompany performance.

• In the current year, someonesaw that all senior managementpay would be badly hit.

• Senior managers collectivelyagreed to recalibrate thescheme, so that their pay isunaffected by the downturn.

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Efficiency

Personal Efficiency

• Adequate rewards forreasonable effort.

• Reduce unnecessary orunrewarded effort.

W orkforce Efficiency

• Enough rewards to motivateadequate effort.

• Increase useful effort , eliminateineffective rewards.

Productivityratio of input

and output

Achieving Productivity

• Working Harder

• Working Smarter

• Automation / CapitalInvestment

Measuring Productivit y

• Productivity of Labour

• Productivity of Capital

Stakeholders

• Possible benefits to employees,management, shareholders, customers,suppliers, environment.

Product ivity Bonus

• Productivity may result in increasedquality or quality of output.

• Productivity gains may be taken in

various ways: – greater rewards

– reduced effort & cost

– increased quality

• Productivity gains are often subject tonegotiation and power games.

• Some stakeholders may believe theyhave not received a fair share of theproductivity gain.

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ConnectingMotivation &Performance

Input Process Output

• Job satisfaction may improvemotivation and thereforeperformance.

• Good performance may enhance job satisfaction and thereforemotivation.

• Some jobs with poor extr insic

rewards can have high levels of jobsatisfaction.

– People may be willing to work for lessmoney.

– People sometimes make sense of theirwillingness to work for less money bytelling themselves how important andinteresting the work is.

Motivation

Energy Conversion Ratio

•Efficiency

•Productivity

Performance

Division ofLabour

Pioneers

• Adam Smith

– “Wealth of Nations”

• Eli Whitney

– Mass production

– Interchangeable parts

• FW Taylor

– “Scientific Management”

• Henry Ford

– “Fordism”

– Production-line factory

Technical Aspects

• Specialization of skills and equipment.

• Efficient utilization of labour andcapital.

Socio-Political Aspects

• Largest share goes to the bosses whodivide up the work.

• Alienation

– Charlie Chaplin’s film Modern Times

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SeparatingOrganizationfrom Behaviour

“ Scient ific Management”

• Divide mental work(management thinking) frommanual work (doing).

• Brain power more highlyvalued than manual skill.

Alternatives

• Self-Managed Teams

• Outsourcing

Questions

• What are the consequences oftrying to separate mental andmanual labour?

– Organizational

– Political

– Social

• What are the implications forautomation?

– General

– Information Technology

Division ofPsychological

Labour

Pioneers

• Belbin

– Team Roles

• Myers-Briggs

– MBTI

• Kirton

– Adaptor / Innovator

• Hirschhorn

– Workplace Within

Technical Aspects

• Specialization of social attitudes andaptitudes.

• Effective orchestration of diversepersonal styles.

Or ganizational Aspects

• Maturity / Character

• Intelligence

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PersonalityTypes

Myers Briggs (MBTI)

• Extravert / Introvert

• iN tuitive / Senser

• Feeler / Thinker

• Judger / Perceiver

Kirton Scale

• Adaptor

• Innovator

Relevance for Management

• Understand and address thestrengths and weaknesses ofyour own type

• Appreciate and communicatewith other people

• Build balanced teams

• Understand and address thestrengths and weaknesses ofyour organization’s culture.

Theory XYZ

Theory X

• People are naturally selfish and lazy. They workbecause they have to, and skive whenever they can.

Theory Y

• People are naturally eager and interested, althoughthis can be damaged by clumsy management.

Source: McGregor

Theory Z

• People and organizations may have life-longcommitments to one another. This results in higherlevels of productivity.

Source: Ouchi

An individual manager or group of managersor organization may act in accordance withone or other theory.

What is important here is not which theoryis true, but which theory is believed andacted upon.

Thus we can talk about “ a theory Xmanager” , or “ a theory Z organization” .

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Example FoodDistributor

• Small shops cost more tosupply than large multiples

– Higher costs

– Greater effort

– Lower returns

– Lower profits

• Small shops are seen as lessefficient

– for the company

– for the worker

• Business survival and missiondemands balance between smallshops and large multiples.

– It is not good for us if the smallshops are driven out of business.

– It is not good for us if we are seento favour the large multiples.

• Need to align company values withindividual values.

Variation Variation

Example: FoodDistributor

manager

delivery

My Effort My Job Job Done

Effort Outcome

Effort Outcome

Standard

?efficiency

motivation

customer

satisfaction

feedback

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• High rewards

– Drive all resources to maximumdegree

• Telling

– Be absolutely clear as to what isexpected

• Total commitment – Stick to the plan no matter what

• Internal motivation

– Make use of available resources

• Listening

– Pay attention to what othersperceive

• Constructive doubt

– Question everything to find a betterway

PracticalPerformance

Tips

Tiredness

Q Which workers in which organizationsmay be affected by extreme tiredness?

A Examples:

– Shift workers in factor ies, call centres,hospitals - e.g. nurses.

– Transport wor kers - e.g. long-distance lorry drivers.

– Military personnel.

Q How does this tiredness manifest itself?

– Immediate effect on task performance

– Longer-term effect on person

Q Which employers wouldyou expect to be most/leastwilling to recognize and dealwith this problem?

Q How might this willingnessbe interpreted

– favourably to theorganization?

– unfavourably to t heorganization?

• What kinds of solutionmight be preferred?

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DiscussionQuestions

• Why do managers care about the motivation of their staff? What canthey do about it?

• Who benefits from improved productivity?

• It is said that there is an optimum level of stress above and belowwhich performance falls. Comment on this statement and describehow you would assess this effect in a real organization.

• Some measurements are described as 3M – Mood ModifyingMeasurements – that only ever affect how we feel about what we do.Are such measurements useful?

• Can you identify any cultural features of the United States that mayhave helped the development of Fordism?To what extent do youthink Fordism may work differently in other cultures?

Reading

Required

• Handy Chapters 2 & 3.

Suggested

• Belbin

• Larry Hirschhorn, Theworkplace within

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