MANAGEMENT THEORYMANAGEMENT THEORY

Year 3 Built Asset ManagementYear 3 Built Asset Management

Dr. Margaret NelsonDr. Margaret NelsonRoom M1-06Room M1-06

M.Nelson@bolton.ac.ukM.Nelson@bolton.ac.uk

LECTURE OUTLINELECTURE OUTLINE

Lecture OverviewLecture Overview– MotivationalMotivational Theories Theories

Maslow – Hierarchy of NeedsMaslow – Hierarchy of Needs

McGregor – Theory X & YMcGregor – Theory X & Y

Hertsberg – Hygiene Factor TheoryHertsberg – Hygiene Factor Theory

McClelland – Three Needs TheoryMcClelland – Three Needs Theory

Handy – Motivational Calculus TheoryHandy – Motivational Calculus Theory

Adams – Goal Setting/Equity TheoryAdams – Goal Setting/Equity Theory

Vroom – Expectancy TheoryVroom – Expectancy Theory

– Leadership Theories Leadership Theories – Group Theories Group Theories

MASLOWMASLOW

Abraham Maslow is considered to be the Abraham Maslow is considered to be the father of Humanistic Psychology, also father of Humanistic Psychology, also known as the "Third Force". known as the "Third Force".

Maslow's motivation theory states that Maslow's motivation theory states that man's behaviour is controlled by both man's behaviour is controlled by both internal and external factors. internal and external factors.

In addition he emphasizes that humans In addition he emphasizes that humans have the unique ability to make choices have the unique ability to make choices and exercise free-will. and exercise free-will.

MASLOW’S HIERARCHY OF NEEDSMASLOW’S HIERARCHY OF NEEDS

McGREGORMcGREGOR

Douglas McGregor, an American social psychologist, Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'. Human Side Of Enterprise'.

McGregor's XY Theory remains central to organizational McGregor's XY Theory remains central to organizational development, and to improving organizational culture. development, and to improving organizational culture.

McGregor maintained that there are two fundamental McGregor maintained that there are two fundamental approaches to managing people. Many managers tend approaches to managing people. Many managers tend towards theory x, and generally get poor results. towards theory x, and generally get poor results. Enlightened managers use theory y, which produces Enlightened managers use theory y, which produces better performance and results, and allows people to better performance and results, and allows people to grow and develop grow and develop

McGREGOR’S THEORY X & YMcGREGOR’S THEORY X & Y

McGREGOR’S THEORY X & Y (2)McGREGOR’S THEORY X & Y (2)

Theory x ('authoritarian management' Theory x ('authoritarian management' style)style)

– The average person dislikes work and The average person dislikes work and will avoid it he/she can. will avoid it he/she can.

– Therefore most people must be forced Therefore most people must be forced with the threat of punishment to work with the threat of punishment to work towards organisational objectives. towards organisational objectives.

– The average person prefers to be The average person prefers to be directed; to avoid responsibility; is directed; to avoid responsibility; is relatively unambitious, and wants relatively unambitious, and wants security above all else. security above all else.

Theory y ('participative management' Theory y ('participative management' style)style)

– Effort in work is as natural as work and Effort in work is as natural as work and play. play.

– People will apply self-control and self-People will apply self-control and self-direction in the pursuit of organisational direction in the pursuit of organisational objectives, without external control or objectives, without external control or the threat of punishment. the threat of punishment.

– Commitment to objectives is a function Commitment to objectives is a function of rewards associated with their of rewards associated with their achievement. achievement.

– People usually accept and often seek People usually accept and often seek responsibility. responsibility.

– The capacity to use a high degree of The capacity to use a high degree of imagination, ingenuity and creativity in imagination, ingenuity and creativity in solving organisational problems is solving organisational problems is widely, not narrowly, distributed in the widely, not narrowly, distributed in the population. population.

– In industry the intellectual potential of In industry the intellectual potential of the average person is only partly the average person is only partly utilised. utilised.

HERTZBERGHERTZBERG

Herzberg was the first to show that satisfaction and Herzberg was the first to show that satisfaction and dissatisfaction at work nearly always arose from different dissatisfaction at work nearly always arose from different factors, and were not simply opposing reactions to the same factors, and were not simply opposing reactions to the same factors, as had always previously been (and still now by the factors, as had always previously been (and still now by the unenlightened) believed.unenlightened) believed.

He showed that certain factors truly motivate ('motivators'), He showed that certain factors truly motivate ('motivators'), whereas others tended to lead to dissatisfaction ('hygiene whereas others tended to lead to dissatisfaction ('hygiene factors').factors').

According to Herzberg, Man has two sets of needs; According to Herzberg, Man has two sets of needs; – one as an animal to avoid pain, and one as an animal to avoid pain, and – two as a human being to grow psychologically.two as a human being to grow psychologically.

He illustrated this through Biblical example: He illustrated this through Biblical example: – Adam after his expulsion from Eden having the need for food, Adam after his expulsion from Eden having the need for food,

warmth, shelter, safety, etc., - the 'hygiene' needs; and warmth, shelter, safety, etc., - the 'hygiene' needs; and – Abraham, capable and achieving great things through self-Abraham, capable and achieving great things through self-

development - the 'motivational' needs.development - the 'motivational' needs.

HERZBERG’S MOTIVATORS & HYGIENE HERZBERG’S MOTIVATORS & HYGIENE FACTORSFACTORS

HERZBERG’S MOTIVATIONAL THEORYHERZBERG’S MOTIVATIONAL THEORY

McCLELLANDMcCLELLAND

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

HANDYHANDY

Charles Handy's Motivation Calculus is an extension of Charles Handy's Motivation Calculus is an extension of Maslow's Hierarchy of Needs. Maslow's Hierarchy of Needs.

It addresses cognitive and external reference points that It addresses cognitive and external reference points that the original Hierarchy of Needs five-level model of does the original Hierarchy of Needs five-level model of does not. not.

Handy's Motivation Calculus attempts to cater for Handy's Motivation Calculus attempts to cater for complexities and variations in people's situations beyond complexities and variations in people's situations beyond the reach of the original Hierarchy of Needs model. the reach of the original Hierarchy of Needs model.

Motivation CalculusMotivation Calculus– NeedsNeeds - maslow factors, personality characteristics, current - maslow factors, personality characteristics, current

work environment, outside pressures and influences. work environment, outside pressures and influences. – ResultsResults - we must be able to measure the effect of what our - we must be able to measure the effect of what our

additional efforts, resulting from motivation, will produce. additional efforts, resulting from motivation, will produce. – EffectivenessEffectiveness - we decide whether the results we have - we decide whether the results we have

achieved meet the needs that we feel.achieved meet the needs that we feel.

ADAMSADAMS

John Stacey Adams, workplace and behavioural John Stacey Adams, workplace and behavioural psychologist, put forward his Equity Theory on psychologist, put forward his Equity Theory on job motivation in 1963. job motivation in 1963.

Has similarities with Charles Handy's extension Has similarities with Charles Handy's extension and interpretation of previous simpler theories of and interpretation of previous simpler theories of Maslow, Herzberg and other pioneers of Maslow, Herzberg and other pioneers of workplace psychology, in that the theory workplace psychology, in that the theory acknowledges that subtle and variable factors acknowledges that subtle and variable factors affect each individual's assessment and affect each individual's assessment and perception of their relationship with their work, perception of their relationship with their work, and thereby their employer and thereby their employer

ADAM’S EQUITY THEORYADAM’S EQUITY THEORY

VROOMVROOM

Vroom's expectancy theory is based on the belief that Vroom's expectancy theory is based on the belief that employee effort will lead to performance and performance employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). will lead to rewards (Vroom, 1964). – Rewards may be either positive or negative. Rewards may be either positive or negative.

The more positive the reward the more likely the employee will be The more positive the reward the more likely the employee will be highly motivated. highly motivated. Conversely, the more negative the reward the less likely the employee Conversely, the more negative the reward the less likely the employee will be motivated.will be motivated.

Introduced three conceptsIntroduced three concepts– Valence is the importance that the individual places upon the Valence is the importance that the individual places upon the

expected outcome of a situation. expected outcome of a situation. – Expectancy is the belief that output from the individual and the 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 success of the situation are linked, e.g. if I work harder then this will be better. will be better.

– Instrumentality is the belief that the success of the situation is Instrumentality is the belief that the success of the situation is linked to the expected outcome of the situation, e.g. it's gone linked to the expected outcome of the situation, e.g. it's gone really well, so I'd expect praise really well, so I'd expect praise

LEADERSHIPLEADERSHIP

LEADERSHIP THEORIESLEADERSHIP THEORIES

Great Man Theory Great Man Theory Path-Goal TheoryPath-Goal Theory Trait Theory Trait Theory Behavioral Theories Behavioral Theories

– Role Theory Role Theory – The Managerial Grid The Managerial Grid

Participative Leadership Participative Leadership – Lewin's leadership styles Lewin's leadership styles – Likert's leadership styles Likert's leadership styles

Situational Leadership Situational Leadership – Hersey and Blanchard's Situational Leadership Hersey and Blanchard's Situational Leadership – Vroom and Yetton's Normative Model Vroom and Yetton's Normative Model – House's Path-Goal Theory of Leadership House's Path-Goal Theory of Leadership

Contingency Theories Contingency Theories – Fiedler's Least Preferred Co-worker (LPC) Theory Fiedler's Least Preferred Co-worker (LPC) Theory – Cognitive Resource Theory Cognitive Resource Theory – Strategic Contingencies Theory Strategic Contingencies Theory

Transactional Leadership Transactional Leadership – Leader-Member Exchange (LMX) Theory Leader-Member Exchange (LMX) Theory

Transformational Leadership Transformational Leadership – Bass' Transformational Leadership Theory Bass' Transformational Leadership Theory – Burns' Transformational Leadership Theory Burns' Transformational Leadership Theory – Kouzes and Posner's Leadership Participation Inventory Kouzes and Posner's Leadership Participation Inventory

READING LISTREADING LIST

Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (ed.), Advances in Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (ed.), Advances in experimental social psychology. Volume 2. London: Academic Press. experimental social psychology. Volume 2. London: Academic Press.

Handy, C. (1993), Understanding Organizations, Penguin Books Ltd Handy, C. (1993), Understanding Organizations, Penguin Books Ltd Handy, C. (1995), The Age of Unreason, Random House. 1989 edition in library.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 Herzberg, F (1968), Work and the Nature of Man, London : Crosby Lockwood

Staples. Staples. Herzberg, F. (1993), The Motivation to Work, Transaction Publishers. 1959 edition in Herzberg, F. (1993), The Motivation to Work, Transaction Publishers. 1959 edition in

library. library. Maslow, A. H. (1987), Motivation and personality, London: Harper Collins.Maslow, A. H. (1987), Motivation and personality, London: Harper Collins. Maslow, A. H. (1998), Toward a Psychology of Being, 3Maslow, A. H. (1998), Toward a Psychology of Being, 3 rdrd Revised Edition, John Wiley Revised Edition, John Wiley

& Sons. 1968 edition in library.& Sons. 1968 edition in library. McClelland, D. C. (1987), Human Motivation, Cambridge, UK: Cambridge University McClelland, D. C. (1987), Human Motivation, Cambridge, UK: Cambridge University

Press.Press. McGregor, D. (1968), Leadership and Motivation, Boston, Mass: MIT Press.McGregor, D. (1968), Leadership and Motivation, Boston, Mass: MIT Press. McGregor, D. (2006), The Human Side of Enterprise, McGraw-Hill Publishing Co. 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 Vroom, V. H. (1994), Work and Motivation, Jossey Bass Wiley. Originally published in

1964.1964.

READING LISTREADING LIST

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