Motivation

nMotivation

nClassification of Motives

–Primary motives

§Physiological or Biological motives

§Competence or Capacity motives

–Secondary motives

§Security motives

§Status or Prestige motives

nMotivation

nTypes of Motivation

–Positive or incentive motivation

§Praise – Prestige – Promotion – Pay - cheque 

–Negative or fear motivation

–

–Extrinsic Motivation

–Intrinsic Motivation

nMotivation

nSelf Motivation or Attitude Motivation

–Monotonous Work

–Driven by boss

–Bad Physical Conditions

–Does not get along with associates

–Dissatisfied with work or achievement

–Financial troubles

nMotivation

nSelf Motivation or Attitude Motivation

–Unwilling to work

–Craves Sympathy

–Thinks the world owes him a living

–Has some sort of inferiority complex

–Hates his wife – does not want to support her or her children

–

nMotivation

nSelf Motivation or Attitude Motivation

–Making the job more interesting

–Thinking Constructively

–Making the best possible use of one’s strong points and not dwelling on weakness

–Adopting oneself to the situation

–Acquiring a sensible and worthwhile philosophy of life

§One can motivate oneself by setting certain objectives and goals before oneself.

nMotivation

nGroup Motivation

–informed of ideas, plans, inventions or systems

–Communication

–Fairness, truthfulness, honesty, loyalty, stability, tolerance, ability to assume responsibility and cooperate, give and take, constructive criticism and compromise when necessary, orderliness in mind and action, control of temper, a sense of humor, broad – mindedness

nMotivation

nSteps in Motivation

–Sizing Up

–Preparing a Set of Motivating Tools

–Selecting and Applying Motivators

–Feedback

§Variability

§Self interest and Motivation

§Attainability

§Participation

§Proportioning Rewards

§The Human Element

§Individual Group Relationships

§Stimulation

nMotivation

nSupervisor’s Role and Motivation Model

–Responsibility to assess the motives and needs of the workers

–Observation, interview, written attitude survey, previous goal achievement

–What motivates people?

–Money, Good Working Environment, Challenging work and responsibility, praise for good work

nMotivation

nSupervisor’s Role and Motivation Model

–Selection and provision of incentives

–Incentive will attract and sustain the type of effect needed to help organization attain its objectives

–Cost of providing the incentives

–Incentives must be attractive, realistic, and worthwhile

–Role should be informative and supportive

nMotivation

nManagement Techniques Designed to Increase Motivation

–Financial Motivators

–Non – Financial Motivators

§Appraisal, Praise or Recognition

§Status and Pride

§Competition

§Delegation of Authority

n

n

nMotivation

nParticipation

nJob Security

nJob Enlargement or Whole Job Concept

nJob Rotation

nJob Loading

nJob Enrichment

nReinforcement

nQuality of Work Life

nOthers

–Job Sharing or Twinning

–Flexi - time or Flexible Working Hours

nMotivation

nExecutive Motivation

–The managers tend to exhibit a greater degree of the need for achievement than do those who are non managers

–Managers are more concerned about self actualization, needs, esteem and social needs than are clerical and unskilled workers

–

nMotivation

nExecutive Motivation

–They are doing something that they call their own

–They do tasks they have set for themselves

–They can see what they have done

–They feel that their job is important

–They are secure

–They are doing something useful

nMotivation

nExecutive Motivation

–Challenge in work

–Belief in the value of work

–Status

–Urge to achieve leadership

–Environment which encourages a full utilization of an individual’s capacity

nMotivation

nExecutive Motivation

–Unsatisfactory bosses

–Advancement is limited

–Poor pay

–Security threatened

n

WAGES AND INCENTIVES

WAGES AND INCENTIVES

Introduction

Concept of wages

nNominal Wage

nReal Wage

nMinimum Wage, Fair  Wage and Living Wage 

n

WAGES AND INCENTIVES

Desirable Characteristics of Good Wage System 

nGuarantee an adequate minimum wage

nSimple and easy system

nFair for both employee and employer

nReward the worker according to his efficiency and merit

nBonus should not be left for future periods

WAGES AND INCENTIVES

Factors affecting Wages

nDemand and Supply Position in Labor Market

nLegal or Statutory Provisions

nCapacity of Bargain

nCost of Living Index

nNature of Employment

WAGES AND INCENTIVES

Factors affecting Wages

nOrganization’s Ability

nRegularity and Irregularity of Employment

nSupplementary Incomes

nWorking Hours

nProspects of Promotion

WAGES AND INCENTIVES

Types of wage Plans

nTime Rate System

nAdvantages, Disadvantages and Applications

n

n Piece Rate System

nAdvantages, Disadvantages and applications

n

n Combination of Piece Rate and Time Rate System

WAGES AND INCENTIVES

Incentives

nIncentives is an inducement or reward given to the worker for his efficiency and hard work.

nAn incentive scheme may be defined as a system of wage payment under which earnings of an employee or a group of employees or all employees in an organization is directly related to the output of an acceptable quality and over and above a standard laid down by means of predetermined formula.

WAGES AND INCENTIVES

Incentives

nFinancial Incentives

nBonus and Profit Sharing

nNon Financial Incentives

n Semi – Financial Incentives\

nIncentive Schemes

nIndividual Incentive Scheme

nGroup Incentive Scheme

WAGES AND INCENTIVES

Wage Incentive Plan

nStraight Piece Rate System

nAdvantages and Disadvantages

nTaylor’s Differential Piece Rate System

nAdvantages and Disadvantages

nMerrick Differential or Multiple Piece Rate  

  Plan

WAGES AND INCENTIVES

WAGES AND INCENTIVES

WAGES AND INCENTIVES

Gantt Task and Bonus System

 Halsey Incentive Plan

nTime Saved = (Ts – Ta)  

nBonus Earned = (Ts – Ta) × (50/100) × R

nWages Earned = Ta × R + ½ R (Ts – Ta)

nAdvantages and Disadvantages  

WAGES AND INCENTIVES

WAGES AND INCENTIVES

The Rowan System

nBonus = {(Standard Time – Actual Time)/Standard Time} × Actual time × Ratio

nEarning = Ta × R + {(Ts – Ta )/Ts} × R

nR – Hourly Rate (Rs.)

nTs – Standard Time (Hrs)

nTa – Time actually taken (Hrs)

n

nAdvantages and Disadvantages

n

WAGES AND INCENTIVES

The Bedaux Point System

nE = R × Ta + 0.75 (Ts – Ta)

nAdvantages and Disadvantages

WAGES AND INCENTIVES

Emersion Efficiency Plan

nEfficiency = (Actual Output for the period/Standard Output for the period) × 100

n= Actual Time taken/ Standard Time × 100

nη < 66.76 % = Only Time wages

n66.76 < η < 100 % = Time wages + Bonus at different percentages increasing rapidly to 10% at 90% efficiency and 20% at 100%

nη > 100% = Time wage + 20% Bonus + 1 % bonus for each 1 % increase in efficiency beyond 100 %

WAGES AND INCENTIVES

Group Incentive

nAdvantages

nBetter co – operation among workers

nLess Supervision

nEqual distribution of bonus

nDis advantages

nNo equality

nDifficult if members are at different capacity

WAGES AND INCENTIVES

 The Scanlon Plan

nLabor cost during base month = Lb

nLabor cost for the assessment month = La

nTotal Sales during the base month = Sa

nTotal Sales during the assessment month = Sb

n% reduction in the labor index = [{(Lb /Sb) – (La/Sa)} / (Lb/Sb) ] × 100

n (Lb/Sb)×100> (La/Sa)×100

WAGES AND INCENTIVES

The Priestman Production Plan

nStandard Production in the base month = Pb

nActual output during the assessment month = Pa

nNumber of workers in employment during the base month = Wb

nNumber of worker in employment during the assessment month = Wa

WAGES AND INCENTIVES

The Priestman Production Plan

nStandard Production per worker during base month = Pb/Wb

nActual Production per worker during the assessment month = Pa/Wa

nBonus Payable if, Pa/ Wa > Pb/Wb

n

n% Productivity bonus payable to each employee = [{(Pa/Wa) – (Pb/Wb)} / (Pb/Wb) ] × 100

WAGES AND INCENTIVES

Profit Sharing

nAdvantages

nImproved Industrial Relations

nGreater Productivity

nReduction in labor turnover, absenteeism, irregularities

nDisadvantages

nEqual share irrespective of efficiency

nNo sharing of losses

WAGES AND INCENTIVES

Incentive Payment

nAdvantages

nMotivation to workers

nMaximum cooperation

nEffective use of materials

nDisadvantages

nInvolves extra cost

nDisputes between labor and management

nDelay may cause suspicion among workers

QUESTIONS?

THANK YOU!

INTRODUCTION TO ORGANIZATIONAL MANAGEMENT FUNCTIONS OF MANAGEMENT

INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
FUNCTIONS OF MANAGEMENT
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Functions of Management
Planning
Organizing
Staffing
Directing
Motivating
Controlling
Coordinating
Communicating
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Planning
Planning means thinking before doing.
It is a function to decide about what, where, when, who, why and how a particular activity should be done.
Planning includes forecasting, formulation of objectives, policies, programs, schedules, procedures and budgets.
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Objectives of planning
Effective Forecasting
Certainty in the activities
Performance Standards
Specific Direction to the Organization
Organization to tune with the environment
Economy in management
Helpful in preparing Budgets
Constant Change
Towards Efficiency

INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Steps in Planning
Determination of Objectives
Planning begins with decisions about what the organization wants to achieve during a specified period.
Forecasting
Internal Premises
External Premises
Decide the Planning Period
Collection, Classification and Processing of Information
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Steps in Planning
Deciding alternative courses of action
Evaluation of alternative
Selection of best Plan
Subsidiary Plans to aid Master plan
Controlling Plans
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Advantages of Planning
Maximum utilization of resources
Minimization of unproductive work
Reduces uncertainty
Basis for managerial action
Basis for control

INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Advantages of Planning
Avoids bottlenecks in Production
Encourages innovation and creativity
Improves motivation
Facilitates effective delegation of authority
Gives Competitive edge to the enterprise
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Limitations of Planning
Limitations of Forecast
Costly affair
Influence of External Factors
Resistance to Change
Rigidity and Inflexibility
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Types of Plan
Goals – Relatively long run targets
Objectives – Ends towards which the activities of an organization are directed
Policies – Provide the framework for executive action on recurrent managerial problems
Rules – Simplest type of plan chosen from alternatives
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Types of Plan
Procedure – Means of implementing a policy
Programs – Designed to accomplish policies and objectives – Gives step by step approach to guide action necessary to reach pre – determined targets
Schedule – Specifies the time when each of series of action should take place
Budgets – Projection defining anticipated costs of attaining an objective
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Organizing
Involves determining activities needed to fulfill objectives, grouping these activities into manageable units or departments and assigning such groups of activities to manager
Planning decides what management wants to do, while organizing provides an effective machine for achieving the plan or objectives
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Staffing
Recruitment
Selection
Placement
Training
Development of personnel
Developing system for remuneration of personnel and evaluating their performance
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Directing
Actual activity starts only when manager issues directions to his sub – ordinates as to what is to be done and how it should be done
Involves motivating, guiding and supervising subordinates towards company objectives
Issue of orders and instructions
Guidance and training of subordinates
Supervision of subordinates’ work
INTRODUCTION TO ORGANIZATIONAL MANAGEMENT
Motivating