Description
assignment
Subject : Organisational Behaviour
1. Discuss advantages and disadvantages of different motivational strategies as applied in various Organizational cultures with the relevant models. Motivation can be defined as a condition that is initiated by a physiological or psychological deficiency or need in an individual, which causes the individual to behave in a certain manner in order to achieve a particular goal or incentive. Motivation consists of three interacting and interdependent elements – needs, drives and incentives. Needs forms the basis for drives, which in turn seek the attainment of certain incentives. Advantages and disadvantages of different motivational strategies . 1. Team Work Skillful managers form work groups when possible with the hope that peer pressure will induce high levels of performance. This is reported to be an effective means of motivation because individuals appear to be more concerned with living up to the expectations of fellow workers rather than the expectations of their bosses. Complexities arise when a group conforms to a level of achievement rather than a high performance level, or when a particular work setting makes it difficult to structure group activities. 2. Personal involvement Workers who are allowed to set their own performance levels will usually try to meet their own expectations. It is important to have the worker make a verbal commitment regarding their anticipated achievement levels. Also,
individuals and groups are most likely to attain goals when they make a public commitment to do so. This may be due to the fact that such commitments are promises and most people view themselves as persons who keep their word. The chief problem with this strategy results from workers who maintain a low self-image. At this point, managers are faced with the problem of motivating a worker to think positively about himself so his self-image will correlate with high performance. On the whole, this strategy is effective, but it might demand a manager to reinforce an employee's strengths first. 3. Work Enhancement With this method, managers structure jobs so the work provides fulfillment. The experiment in job enrichment underway at the Saab-Volvo automobile plant in Sweden illustrates rather nicely how job enrichment works. They use a team-assembly concept in which workers rotate the tasks required for building an automobile. Basically, the entire group is responsible for assembling the complete automobile. This is in contrast to the monotonous production system which now characterizes auto manufacturing in the United States. One of the difficulties with this type of motivational strategy is that workers want to be compensated adequately for the work they do. When employees are expected to perform more complicated job skills, they expect increased compensation. When this does not happen, the work may no longer offer an internal incentive.
4. Rewards This type of planning is based on the behavior modification approach that workers will increase or repeat the desired work performance if they are given rewards. It is also hoped that poor performance will be eradicated once the subordinate comprehends the relationship between commendable performance and rewards. Generally, the reward approach is successful but it is not without its complications. Individuals are unique and maintain different value systems. What may be considered rewarding to one worker may be no incentive whatsoever to the next employee. Some people prefer pay increases. Others seek promotions. Still others may desire new rugs on their office floors. Establishing meaningful incentives for performance with individuals can be a difficult task for a manager. 5. Mutual Exchange Sometimes, managers promise special privileges for the exchange of desired work performance. A supervisor may allow a worker to leave work early if he completes his task for the day, or he may be allowed a day away from the job if he finishes a required project within a specified time. Mutual exchange is a frequently used strategy, but not necessarily the most effective. Problems arise when the employee feels the exchange is out of balance, or when he cannot come to an agreement with his supervisor as to what would be a fair exchange.
6. Competitive measures In this design, workers compete against others for certain bonuses or prizes. Banners, plaques, vacations, and free dinners are examples of some rewards offered. This strategy is often used for sales incentives. Difficulties emerge when managers design contests that do not offer a fair opportunity to achieve the specified goals. If the same individuals and groups consistently win the prizes due to the contest design, interest in competing is likely to grow lukewarm for many of the workers. Also, competition does not promote a cooperative strategy and work performance can actually be sabotaged due to the hostility that competition can trigger. 7. Punishment and Fear Although frequently used, the least effective method of motivating a worker is with a negative consequence, such as a verbal dressing-down, suspension, or the loss of the job. Punishment may achieve immediate results, but it does not accomplish internal motivation for several reasons. First, adults are not inclined to remain in employment where they are threatened and intimidated. Second, workers who are backed by a strong union may dissolve the threat with a higher level of authority. Third, scares and intimidation can create animosity toward a superior and employees may respond with hostility and subversion. Another problem with the fear strategy is that it creates a punitive climate in which individuals are afraid of being different from or of offending others. This particular situation has a tendency to diminish creativity and lead to intellectual stagnation.
2 How does power effect in decision making for Corporate Social responsibilities. Kindly discuss one such initiative in details. Power is, “the ability to influence and control anything that is of value to others.” Max Weber, a pioneering sociologist, defined power as follows, “the probability that an actor within a social relationship will be in a position to carry out his own will despite resistance.” In the words of Jeffrey Pfeffer, an organizational behavior theorist, power is, “the potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do.”
The existence of power is inevitable in organizations it comes with authority and hierarchy and played major role in decision making in CSR. In fact, power is one of the most controversial topics in the study of OB. Quite often; people in organizations use their power to make their decision. However, power is not always a negative concept. For example, it is essential for superiors to exercise their power to deal with some employees and get work done through them. Hence, understanding power and its role in the working of an organization is essential for a proper understanding of the dynamics of OB. Bases of power Reward power Employees can be influenced by reward power when they believe that their superior has the authority to reward them if their performance is in
compliance with the superior’s orders. Reward power exerts a positive influence on individuals.
•
Is dependent upon the perception of the recipient. If the individual
believes that the reward is of no importance to him/her, then the reward power will have no influence on him/her.
•
Gives managers the power to administer positive reinforcements to
others, which encourage repetition of positive behavior. Managers can offer pay increase, promotions, new equipment, praise, favorable work assignments, and recognition as rewards to their subordinates. Legitimate Power People derive legitimate power from their position in the organizational hierarchy. Legitimate power enables individuals to punish or reward their subordinates. It has been observed that legitimate power forms the source for most of the bases of power. It is closely associated with authority. Expert Power Expert power is bestowed upon individuals who possess some specialized skill or knowledge. Their expertise in a certain skill or area gives them the confidence and self-esteem with which they can influence others. However, expert power can be enforced only when the specialized knowledge or skill is of relevance to the person on whom the power is being exerted. For example, an engineer has expert power in the field of production, but not in areas like finance, human resources, and so on. Referent Power
The base for referent power is identification with an individual who has desirable resources or personal traits. If individual X admires and identifies himself/herself with individual Y, then Y can exercise power over X. However, it is not always necessary for Y to know the power he/she has over X. Sometimes, Y can influence X without even being aware of it. A person’s admiration for another can cause him/her to change his/her behavior and attitudes to resemble those of the person possessing the referent power.
Dependency of power factor The study of power is incomplete without understanding the role of ‘dependency’ in the process of application of power. When a person is dependent on another for a certain thing, then the other person is said to have power over him/her. The extent of ‘dependency’ is inversely proportionate to the availability of substitute sources. The level of dependency depends upon the importance, scarcity, and nonsubstitutability of the resource controlled by a person.
Importance The importance of resources as perceived by an individual is a major element in deciding the level of dependency of a person. For example, the marketing department in a manufacturing company might have a greater influence if the company gives more importance to it. Similarly, the
research and development department may influence an organization if the organization lays more emphasis on product innovation. Scarcity The dependency levels of individuals on people who control scarce resource/s is higher. For instance, when the demand for employees possessing certain skills is more than their supply, then they are paid much higher salaries than other employees. Non-Substitutability When a particular resource does not have any viable substitutes, then the person who controls that resource will have power over those who require that resource. When the resources possessed by a person cannot be substituted, then people who are in need of such resources have to be dependent on the person who possesses them. Contingencies approaches of power The different contingency approaches to power are: Interdependence and Influencability The extent to which the various departments in an organization are interdependent also influences the extent of power and also how important a certain department is. Influencability represents the extent to which an individual is influenced by a powerful person. It is dependent upon the following factors:
•
Degree of dependence of the target person (person who is being
influenced)
•
Uncertainty of the target person regarding attainment of a certain
outcome
• • • •
Personality traits of the target person Level of intelligence possessed by the target person Age of the target person Cultures which guide the personality of the target person.
Overall Contingency Model for Power According to Herbert Kelman, a social psychologist, there are three main processes of power. They are compliance, identification, and internalization (Refer Figure 19.1). Compliance In this process, the subject conforms to the power of another person, as he/she expects to gain a favorable response or avoid a negative consequence. However, an agent (person who is exerting power over another) must possess the authority to reward or punish to enforce power over the target. The target complies with power because he/she wants to obtain a favorable response from the agent or because he/she wants to avoid a negative response.
Identification In this process, the agent has a referent power due to which the target identifies with or tries to emulate him/her. In identification, the target neither anticipates the obtaining of positive gains nor fears negative consequences. Internalization When the target feels that the value system he/she holds is in accordance with that of the agents, he/she tends to internalize the control the agent has over his/her actions. For this condition to exist, an agent must possess expert or legitimate power. A major aspect in this process is that the power the agent possesses must be of relevance to the target. Power in groups: coalitions It is not always easy to attain or regain power. Therefore, people tend to develop individual power while trying to regain their lost power or
attempting to attain power. If they are unsuccessful in assimilating individual power, they try to form a ‘coalition.’ A coalition essentially consists of a group of people who come together with the aim of improving their bargaining power or their influence over other people. A coalition generally consists of individuals who share similar interests and strive to achieve common goals as for instance, the trade union of a certain company. Here, the trade union is formed to enhance their bargaining power or influence within the organization. The opinions of various experts regarding the formation and working of ‘coalitions’ are summarized as follows:
• •
Political coalitions are different from organizational coalitions. Coalitions take place among people who are highly interdependent
on each other.
The ethics of power Organizations of today are laying great emphasis on ethics and social responsibility. So much so that multinational companies are including ‘corporate governance’ as part of their business strategies. A lot of importance is also being given to the ethical dimensions of power and politics. Misuse of power and illegitimate use of politics not only have adverse effects on organizations, they are also unethical. However, differentiating between ethical and unethical behavior is not an easy task. According to Fred Luthans, every person must consider the following guidelines before determining the ethics of a certain decision or action:
•
An individual must give priority to organizational interest instead of
placing his/her individual interest first.
•
An individual’s actions must not violate the basic rights of another
person.
•
An individual’s behavior and action must be in accordance with the
standards of equity and justice.
doc_824472918.doc
assignment
Subject : Organisational Behaviour
1. Discuss advantages and disadvantages of different motivational strategies as applied in various Organizational cultures with the relevant models. Motivation can be defined as a condition that is initiated by a physiological or psychological deficiency or need in an individual, which causes the individual to behave in a certain manner in order to achieve a particular goal or incentive. Motivation consists of three interacting and interdependent elements – needs, drives and incentives. Needs forms the basis for drives, which in turn seek the attainment of certain incentives. Advantages and disadvantages of different motivational strategies . 1. Team Work Skillful managers form work groups when possible with the hope that peer pressure will induce high levels of performance. This is reported to be an effective means of motivation because individuals appear to be more concerned with living up to the expectations of fellow workers rather than the expectations of their bosses. Complexities arise when a group conforms to a level of achievement rather than a high performance level, or when a particular work setting makes it difficult to structure group activities. 2. Personal involvement Workers who are allowed to set their own performance levels will usually try to meet their own expectations. It is important to have the worker make a verbal commitment regarding their anticipated achievement levels. Also,
individuals and groups are most likely to attain goals when they make a public commitment to do so. This may be due to the fact that such commitments are promises and most people view themselves as persons who keep their word. The chief problem with this strategy results from workers who maintain a low self-image. At this point, managers are faced with the problem of motivating a worker to think positively about himself so his self-image will correlate with high performance. On the whole, this strategy is effective, but it might demand a manager to reinforce an employee's strengths first. 3. Work Enhancement With this method, managers structure jobs so the work provides fulfillment. The experiment in job enrichment underway at the Saab-Volvo automobile plant in Sweden illustrates rather nicely how job enrichment works. They use a team-assembly concept in which workers rotate the tasks required for building an automobile. Basically, the entire group is responsible for assembling the complete automobile. This is in contrast to the monotonous production system which now characterizes auto manufacturing in the United States. One of the difficulties with this type of motivational strategy is that workers want to be compensated adequately for the work they do. When employees are expected to perform more complicated job skills, they expect increased compensation. When this does not happen, the work may no longer offer an internal incentive.
4. Rewards This type of planning is based on the behavior modification approach that workers will increase or repeat the desired work performance if they are given rewards. It is also hoped that poor performance will be eradicated once the subordinate comprehends the relationship between commendable performance and rewards. Generally, the reward approach is successful but it is not without its complications. Individuals are unique and maintain different value systems. What may be considered rewarding to one worker may be no incentive whatsoever to the next employee. Some people prefer pay increases. Others seek promotions. Still others may desire new rugs on their office floors. Establishing meaningful incentives for performance with individuals can be a difficult task for a manager. 5. Mutual Exchange Sometimes, managers promise special privileges for the exchange of desired work performance. A supervisor may allow a worker to leave work early if he completes his task for the day, or he may be allowed a day away from the job if he finishes a required project within a specified time. Mutual exchange is a frequently used strategy, but not necessarily the most effective. Problems arise when the employee feels the exchange is out of balance, or when he cannot come to an agreement with his supervisor as to what would be a fair exchange.
6. Competitive measures In this design, workers compete against others for certain bonuses or prizes. Banners, plaques, vacations, and free dinners are examples of some rewards offered. This strategy is often used for sales incentives. Difficulties emerge when managers design contests that do not offer a fair opportunity to achieve the specified goals. If the same individuals and groups consistently win the prizes due to the contest design, interest in competing is likely to grow lukewarm for many of the workers. Also, competition does not promote a cooperative strategy and work performance can actually be sabotaged due to the hostility that competition can trigger. 7. Punishment and Fear Although frequently used, the least effective method of motivating a worker is with a negative consequence, such as a verbal dressing-down, suspension, or the loss of the job. Punishment may achieve immediate results, but it does not accomplish internal motivation for several reasons. First, adults are not inclined to remain in employment where they are threatened and intimidated. Second, workers who are backed by a strong union may dissolve the threat with a higher level of authority. Third, scares and intimidation can create animosity toward a superior and employees may respond with hostility and subversion. Another problem with the fear strategy is that it creates a punitive climate in which individuals are afraid of being different from or of offending others. This particular situation has a tendency to diminish creativity and lead to intellectual stagnation.
2 How does power effect in decision making for Corporate Social responsibilities. Kindly discuss one such initiative in details. Power is, “the ability to influence and control anything that is of value to others.” Max Weber, a pioneering sociologist, defined power as follows, “the probability that an actor within a social relationship will be in a position to carry out his own will despite resistance.” In the words of Jeffrey Pfeffer, an organizational behavior theorist, power is, “the potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do.”
The existence of power is inevitable in organizations it comes with authority and hierarchy and played major role in decision making in CSR. In fact, power is one of the most controversial topics in the study of OB. Quite often; people in organizations use their power to make their decision. However, power is not always a negative concept. For example, it is essential for superiors to exercise their power to deal with some employees and get work done through them. Hence, understanding power and its role in the working of an organization is essential for a proper understanding of the dynamics of OB. Bases of power Reward power Employees can be influenced by reward power when they believe that their superior has the authority to reward them if their performance is in
compliance with the superior’s orders. Reward power exerts a positive influence on individuals.
•
Is dependent upon the perception of the recipient. If the individual
believes that the reward is of no importance to him/her, then the reward power will have no influence on him/her.
•
Gives managers the power to administer positive reinforcements to
others, which encourage repetition of positive behavior. Managers can offer pay increase, promotions, new equipment, praise, favorable work assignments, and recognition as rewards to their subordinates. Legitimate Power People derive legitimate power from their position in the organizational hierarchy. Legitimate power enables individuals to punish or reward their subordinates. It has been observed that legitimate power forms the source for most of the bases of power. It is closely associated with authority. Expert Power Expert power is bestowed upon individuals who possess some specialized skill or knowledge. Their expertise in a certain skill or area gives them the confidence and self-esteem with which they can influence others. However, expert power can be enforced only when the specialized knowledge or skill is of relevance to the person on whom the power is being exerted. For example, an engineer has expert power in the field of production, but not in areas like finance, human resources, and so on. Referent Power
The base for referent power is identification with an individual who has desirable resources or personal traits. If individual X admires and identifies himself/herself with individual Y, then Y can exercise power over X. However, it is not always necessary for Y to know the power he/she has over X. Sometimes, Y can influence X without even being aware of it. A person’s admiration for another can cause him/her to change his/her behavior and attitudes to resemble those of the person possessing the referent power.
Dependency of power factor The study of power is incomplete without understanding the role of ‘dependency’ in the process of application of power. When a person is dependent on another for a certain thing, then the other person is said to have power over him/her. The extent of ‘dependency’ is inversely proportionate to the availability of substitute sources. The level of dependency depends upon the importance, scarcity, and nonsubstitutability of the resource controlled by a person.
Importance The importance of resources as perceived by an individual is a major element in deciding the level of dependency of a person. For example, the marketing department in a manufacturing company might have a greater influence if the company gives more importance to it. Similarly, the
research and development department may influence an organization if the organization lays more emphasis on product innovation. Scarcity The dependency levels of individuals on people who control scarce resource/s is higher. For instance, when the demand for employees possessing certain skills is more than their supply, then they are paid much higher salaries than other employees. Non-Substitutability When a particular resource does not have any viable substitutes, then the person who controls that resource will have power over those who require that resource. When the resources possessed by a person cannot be substituted, then people who are in need of such resources have to be dependent on the person who possesses them. Contingencies approaches of power The different contingency approaches to power are: Interdependence and Influencability The extent to which the various departments in an organization are interdependent also influences the extent of power and also how important a certain department is. Influencability represents the extent to which an individual is influenced by a powerful person. It is dependent upon the following factors:
•
Degree of dependence of the target person (person who is being
influenced)
•
Uncertainty of the target person regarding attainment of a certain
outcome
• • • •
Personality traits of the target person Level of intelligence possessed by the target person Age of the target person Cultures which guide the personality of the target person.
Overall Contingency Model for Power According to Herbert Kelman, a social psychologist, there are three main processes of power. They are compliance, identification, and internalization (Refer Figure 19.1). Compliance In this process, the subject conforms to the power of another person, as he/she expects to gain a favorable response or avoid a negative consequence. However, an agent (person who is exerting power over another) must possess the authority to reward or punish to enforce power over the target. The target complies with power because he/she wants to obtain a favorable response from the agent or because he/she wants to avoid a negative response.
Identification In this process, the agent has a referent power due to which the target identifies with or tries to emulate him/her. In identification, the target neither anticipates the obtaining of positive gains nor fears negative consequences. Internalization When the target feels that the value system he/she holds is in accordance with that of the agents, he/she tends to internalize the control the agent has over his/her actions. For this condition to exist, an agent must possess expert or legitimate power. A major aspect in this process is that the power the agent possesses must be of relevance to the target. Power in groups: coalitions It is not always easy to attain or regain power. Therefore, people tend to develop individual power while trying to regain their lost power or
attempting to attain power. If they are unsuccessful in assimilating individual power, they try to form a ‘coalition.’ A coalition essentially consists of a group of people who come together with the aim of improving their bargaining power or their influence over other people. A coalition generally consists of individuals who share similar interests and strive to achieve common goals as for instance, the trade union of a certain company. Here, the trade union is formed to enhance their bargaining power or influence within the organization. The opinions of various experts regarding the formation and working of ‘coalitions’ are summarized as follows:
• •
Political coalitions are different from organizational coalitions. Coalitions take place among people who are highly interdependent
on each other.
The ethics of power Organizations of today are laying great emphasis on ethics and social responsibility. So much so that multinational companies are including ‘corporate governance’ as part of their business strategies. A lot of importance is also being given to the ethical dimensions of power and politics. Misuse of power and illegitimate use of politics not only have adverse effects on organizations, they are also unethical. However, differentiating between ethical and unethical behavior is not an easy task. According to Fred Luthans, every person must consider the following guidelines before determining the ethics of a certain decision or action:
•
An individual must give priority to organizational interest instead of
placing his/her individual interest first.
•
An individual’s actions must not violate the basic rights of another
person.
•
An individual’s behavior and action must be in accordance with the
standards of equity and justice.
doc_824472918.doc