Principles of Supervision

1
Principles of Supervision

• Solving Problems and Decision Making
• Chapter 7

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Learning Goals

• List the seven steps in the decision-making
  process
• Describe expected value analysis
• Explain the four types of decision styles
• Identify and explain the common decision-making
  errors
• Describe the two types of decision problems and
  the two types of decisions that are used to solve
  them
• Compare and contrast group decision and
  individual decision making
• List and describe three techniques for improving
  group decision making
• Explain three different ethical viewpoints

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The Decision Making Process

• Identify the problem
• Collect relevant information
• Develop alternatives
• Evaluate each alternative
• Select the best alternative
• Implement the decision
• Follow up and evaluate

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The Decision Making Process
Identify the problem
Collect relevant information
Develop alternatives
Evaluate alternatives
Evaluate decision
Implement decision
Select best alternative
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The Decision Making Process

• Identify the problem
• Discrepancy between an existing and desired state
  of affairs
• Identify the problem not just the symptom
• Identify the correct problem
• Collect relevant information
• All facts relevant to the problem
• Requires quality information

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The Decision Making Process

• Develop alternatives
• Creative endeavor that should embrace all
  alternatives
• The more alternatives the better the solution may
  be
• Evaluate each alternative
• Strengths and weaknesses
• Cost and time
• Best case/worst case

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The Decision Making Process

• Select the best alternative
• The ingenuity in developing and analyzing
  alternatives and your risk propensity will play a
  role
• Implement the decision
• Convey the decision to those affected and get
  their commitment
• Assign responsibilities, allocate necessay
  resources, clarify deadlines

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The Decision Making Process

• Follow up and evaluate
• Measure results
• Did it work on the problem you identified
• Did it create any new problems or challenges
• The decision process will be used in many
  situations

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Decision Tools

• Expected value analysis calculates the expected
  value of a particular alternative by weighting
  its possible outcomes by the possibility of
  achieving the alternative, then summing up the
  totals derived from the weighting process
• Permits decision makers to place a monetary value
  on the various consequences of a decision

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Decision Tools

• Decision trees a diagrammatic techniques for
  analyzing a decision by assigning probabilities
  to various outcomes and calculating payoffs for
  each
• Useful for analyzing hiring, marketing,
  investment, equipment purchases
• Encompasses expected value analysis by assigning
  probabilities to each possible outcome

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Decision Tools

• Marginal analysis
• Helps decision makers optimize returns or
  minimize costs by by dealing with the additional
  cost in a particular decision rather than the
  average cost
• Analyzes decisions in terms of their incremental
  costs and revenues

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Management Information Systems

• Provides managers with needed and accurate
  INFORMATION on a regular and timely basis
• Collects raw, unanalyzed facts and figures (data)
  and turns it into information
• The quality of a decision depends on the quality
  of a managers information
• Are becoming decentralized pushed down to the
  end-users

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Information Vs. Data

• Data raw, unanalyzed facts such as names,
  numbers, or quantities
• Information analyzed and processes data, used
  by managers to make decisions
• End users users responsible for decision and
  control of systems

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Decision Making Styles

• Recognize people differ along two dimensions
• Way of thinking logical and rational vs.
  intuitive and creative
• Tolerance for ambiguity high vs. low

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Way of Thinking

• Some people are logical and rational, they
  process information serially
• Others are intuitive and creative, they perceive
  things as whole

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Tolerance for Ambiguity

• Some people have a high need to structure
  information in ways that minimize ambiguity
• Others are able to process many thoughts at the
  same time

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The Decision Style Model
Analytic
Conceptual
High
Tolerance For Ambiguity
Directive
Behavioral
Low
Intuitive
Rational
Way of Thinking
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Directive Style

• Low tolerance for ambiguity
• Very efficient and rational
• May make hasty decisions on little information
  without assessing alternatives
• Make decisions fast
• Tend to focus on the short run

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Analytical Style

• Both logical and high tolerance for ambiguity
• No snap decisions they want more information
  to consider alternatives
• Very deliberate and thoughtful
• Careful decision-makers with the ability to adapt
  or cope with new situations

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Conceptual Style

• High tolerance for ambiguity and more intuitive
  than rational
• Very broad in their outlook,consider many
  alternatives
• Focus is long-range and they are good at finding
  creative solutions to problems

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Behavioral Style

• Low tolerance for ambiguity
• Good interpersonal skills, work well with others
• Concern with achievements of subordinates
• Attempt to avoid conflict and seek acceptance

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Whats the Point of the 4 Styles

• Style used
• Some supervisors rely on their dominant style
• Others can shift their style depending on the
  situation
• Problem solving influenced by the supervisors
  style

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Whats the Point of the 4 Styles

• Education
• Can develop rational decision-making skills
• Explains why business students, managers and
  executives tend to score the highest in
  analytical style
• Conflict
• Arises when styles clash
• This emphasizes the value of being able to shift
  styles, depending on the situation

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Ethics In Decision Making

• Common rationalizations
• Its not really illegal or immoral
• Its in my (or the organizations) best interest
• No one will find out (MY Favorite)
• Since it helps the organization, the organization
  will condone and protect me

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Three Views on Ethics

• Utilitarian view
• Rights view
• Justice view

Ethical questions
Does it provide the greatest good for the
greatest Number?
Does it respect the rights of the individuals
affected?
Is it fair and equitable?
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Utilitarian View

• Decisions based solely on the basis of outcomes
• Goal is to provide the greatest good for the
  greatest number
• Consistent with the business goals of efficiency,
  productivity, and high profits, tends to dominate
  business decision making

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Rights View

• Decisions emphasize respect and protecting the
  basic rights of individuals
• Decision making is consistent with fundamental
  liberties and privileges and privileges as set
  forth in documents like the bill of rights

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Justice View

• Decisions that seek fair and impartial
  distribution of benefits and costs
• Typically favored by unions as it justifies
  paying people the same wage for a given job,
  regardless of performance differences
• Protects the interests of the underrepresented
  but reduces risk taking, innovation and
  productivity

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Group Decision Making

• Advantages
• Provides more complete information
• Generates more alternatives
• Increases acceptance of a solution
• Increases legitimacy

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Group Decision Making

• Disadvantages
• Time consuming
• Minority domination
• Pressures to conform
• Ambiguous responsibility

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Group Decision MakingAdvantages Vs. Disadvantages
ADVANTAGES More information More
alternatives Solution acceptance Legitimacy
DISADVANTAGES Time consuming Minority
Domination Conformity Ambiguous responsibility
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Group Decision Making

• More accurate
• Less speed
• More creative
• More acceptance

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Stimulating Creative Problem Solving

• Attribute listing individualized brainstorming,
  isolation of major characteristics of traditional
  alternatives, which are considered in turn and
  changed in every conceivable way

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Stimulating Creative Problem Solving

• Vertical Thinking highly rational, orderly
  thinking
• Lateral Thinking sideways, nonconsequential
  thinking
• Synectics use of analogies to make the strange
  familiar and the familiar strange

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Group Decision Making Techniques

• Brainstorming
• Nominal group technique
• Electronic meetings

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Brainstorming

• A technique for overcoming pressures to conform
  that retard creative idea development
• A process that specifically encourages
  alternatives by keeping criticism at bay
• Free-wheeling, no holds barred

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Nominal Group Technique

• All members are present but are required to
  operate independently, unlike traditional
  interacting groups
• Reduces the term
• It restricts discussion but does not restrict
  independent thinking

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Electronic Meetings

• A group of individuals make decisions by
  communicating anonymously on computer networks
• Blends nominal group technique with sophisticated
  computer technology
• Excellent way to exchange information and make
  decisions

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Principles of Supervision

• Motivating Your Employees
• Chapter 8

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Learning Goals

• Define motivation
• Identify and define five personality
  characteristics relevant to understanding the
  behavior of employees at work
• Explain the elements and the focus of the three
  early theories of motivation
• Identify the characteristics that stimulate the
  achievement drive in high achievers
• Identify the three relationships in expectancy
  theory that determine an individuals level of
  effort
• List actions a supervisor can take to maximize
  employee motivation
• Describe how supervisors can design individual
  jobs to maximize employee performance
• Explain the effect of workforce diversity on
  motivating employees

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What Is Motivation?

• The willingness to do something
• Is conditioned by the actions ability to satisfy
  some need for the individual

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Need

• A physiological or psychological deficiency that
  makes certain outcomes seem attractive
• An unsatisfied need (need deficiency) creates
  tension
• This tension causes a person to act in such a way
  (is driven) to reduce tension, thereby satisfying
  the need
• The higher the degree of tension, the greater the
  drive

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Motivation and Needs
Motivation
Unsatisfied Need
Increased Tension
Drive
Decreased Tension
Satisfied Need
Needs
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Individual Differences and Motivation

• You must understand individual differences
  different cultures, backgrounds, ages, values
• What motivates one person, may not motivate
  another

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Personality Types

• Internal Locus of Control
• Belief that you control your own destiny
• You are the master of your own domain

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Personality Types

• External Locus of Control
• Belief that you are a pawn of fate
• What happens to you is based on luck or chance
• Usually results in lower job satisfaction
• More alienation on job a bad evaluation is
  because of uncontrollable external factors

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Personality Types

• Machiavellianism (High Machs)
• Tendency to be manipulative
• Ends justify the means
• Tend to be motivated on jobs that require
  bargaining skills or where there are substantial
  rewards for winning
• Are frustrated when forced to follow rules

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Personality Types

• Self-esteem
• The degree to which people like or dislike
  themselves
• People with high SE believe they possess more of
  the ability they need to succeed
• People with low SE are more susceptible to
  external influence
• Low SEs are dependent on receipt of positive
  evaluations and more likely to seek approval of
  others

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Personality Types

• Self-monitoring
• Those with high self-monitoring are very
  adaptable and can easily adjust their behavior to
  external situational factors (as opposed to
  others who are rigid and inflexible)
• If high are sensitive to external cues and
  capable of presenting striking contradictions
  between public and private personas

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Personality Types

• Self-monitoring
• If low in this trait, they cant disguise
  themselves tend to display their true feeling
  and beliefs in every situation

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Personality Types

• Risk Propensity
• The willingness of a person to take chances
• If high, the person can make decisions faster
  with less information
• Tend to prefer riskier jobs such as stock broker
  or firefighter

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Understanding Personality Effective Supervision

• Match people to jobs
• Knowing personality traits allows you better
  understand how people approach problem-solving,
  decision making, job interactions, job
  responsibility and job satisfaction
• Understanding locus of control can help you
  understand your employees degree of job
  satisfaction and their willingness to accept
  responsibility for their own actions

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Needs Theories - Maslow

• Maslows Hierarchy of Needs
• Physiological hunger, thirst, shelter
• Safety security and protection
• Social affection, interpersonal relationships
• Esteem self-respect, achievement status
• Self-actualization achieving full potential
• Usually thought in the form of a pyramid

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Maslows Hierarchy of Needs
SA
Esteem Needs
Social Needs
Security Needs
Physiological Needs
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Maslows Hierarchy of Needs

• Propositions
• A need needs to be satisfied before moving on to
  the next level
• A satisfied need no longer motivates
• A need doesnt have to be completely satisfied,
  just substantially satisfied

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McGregors Theory X Theory Y

• Theory X The Slug Theory
• Employees dislike work, will attempt to avoid it
• Employees must be coerced, forced, controlled, or
  threatened to work
• Will shirk responsibilities and seek formal
  direction
• Security is paramount, will display little
  ambition

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Theory Y

• Employees view work as being as natural as rest
  or play
• A person will exercise self-direction and
  self-control if he or she is committed to the
  objectives
• Employees can learn to accept, even seek
  responsibility
• The ability to make good decisions is spread
  throughout the population, not just by supervisors

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Theory X Theory Y
Think of these theories as a continuum
Theory X
Theory Y
Employees fall somewhere in between the two ends
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Theory X Theory Y

• Are you a Theory X or a Theory Y supervisor?
• Theory X may become a self-fulfilling prophecy
• Theory X managers may believe their assumptions
  apply to all people, same for Theory Y managers

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HerzbergMotivation Hygiene Theory

• States that the opposite of satisfaction is not
  dissatisfaction but no satisfaction
• States that the opposite of dissatisfaction is
  no dissatisfaction
• The factors leading to job satisfaction are
  separate and distinct from those that lead to
  dissatisfaction

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Contrasting ViewsHerzberg vs. Traditional
Traditional View
Satisfaction
Dissatisfaction
Herzbergs View
Motivators
Hygiene Factors
Satisfaction
No Dissatisfaction
No Satisfaction
Dissatisfaction
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HerzbergMotivation - Maintenance

• What this means is supervisors who seek to
  eliminate dissatisfaction on the job will not
  necessarily create satisfaction
• They will only placate instead of motivate

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HerzbergMotivation - Hygiene

• Hygiene factors also known as maintenance
  factors can create dissatisfaction but if
  properly managed will only provide no
  dissatisfaction not satisfaction or motivation
• Company policy/administration
• Quality of supervision
• Relationships with supervisor/peers/subordinates
• Work conditions -Safety
• - fall here
• Security

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HerzbergMotivation - Hygiene

• Motivators also known as satisfiers
• Certain characteristics of the organization tend
  to be related to job satisfaction, include
• Achievement
• Recognition
• The work itself
• Responsibility
• Advancement
• Growth

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Contrasting Views

• The classical view says that the opposite of
  satisfaction is dissatisfaction
• Herzbergs view - removing dissatisfiers from the
  job does not necessarily make the job satisfying
• In other words these factors dont motivate
  positively

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Contrasting ViewsHerzberg vs. Traditional
Traditional View
Satisfaction
Dissatisfaction
Herzbergs View
Motivators
Hygiene Factors
Satisfaction
No Dissatisfaction
No Satisfaction
Dissatisfaction
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Herzbergs Theory

• Maintenance factors dont motivate but if they
  are bad or not taken care of they cause
  dissatisfaction (motivate negatively)
• To motivate you must emphasize the motivation
  factors achievement, recognition, the work
  itself, responsibility and growth

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McClellands Need for Achievement

• The drive to do something better than it has ever
  been done before
• Intrinsic motivation - people high in nAch are
  self-motivated and require little direct
  supervision
• Set challenging goals but are not gamblers

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McClellands Need for Achievement

• People high in achievement avoid very easy or
  very difficult tasks
• Prefer jobs with personal responsibility,
  feedback, and an intermediate degree of risk
• Dont always make good supervisors, prefer doing
  things themselves rather than leading others

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Reinforcement Theory

• States that people will exert higher levels of
  effort in tasks that are reinforced
• Totally ignores the inner state of the individual
  and concentrates solely on what happens to a
  person when he or she takes some action

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Reinforcement Theory

• Behavior that is reinforced is repeated
• Proposes that feelings, attitudes, expectations,
  and similar cognitive variables have no impact on
  behavior
• Has an important influence on motivation but it
  is not the only influence

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Equity Theory

• Employees perceive what they get (outcomes) from
  their efforts in relation to what they give
  (inputs) to their job situation
• Employees compare their input-outcome ratios with
  the input-outcome ratio of others

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Equity Theory
Individual Others Outcomes Outcomes
Compare with Individual Others I
nputs Inputs
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Equity Theory

• If the perception is that ratios are equal,
  equity exists and the employee feels fairly
  treated
• If the perception is that ratios are unequal,
  inequity exists and the employee will attempt to
  correct the situation, whether it is negative or
  positive inequity

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Equity Theory

• Negative equity behavior
• Reduced work effort
• Production of lower quality work
• Sabotage
• Skipped work or missed days
• Resignation

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Expectancy Theory

• Postulates that individuals analyze
  effort-performance, performance reward, and
  rewards-personal goals relationships, and that
  their level of effort depends on the strengths of
  their expectations that these relationships can
  be achieved

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Expectancy Theory

• Explains why workers arent motivated on their
  jobs and merely do the minimum necessary
• Postulates three relationships
• Effort-performance
• Performance-rewards
• Rewards-personal goals

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Expectancy Theory
Individual Effort
Individual Performance
Organizational Rewards
Personal Goals
1
3
2
Effort-performance
1

• Performance-rewards

2
Rewards-personal goals
3
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Effort-performance

• If I give maximum effort, will it be recognized
  in my performance evaluation?
• If the skill level is deficient, or if the
  appraisal system is poorly designed, the employee
  may believe no matter how hard they work, they
  may not get a good appraisal result low
  motivation

80
Performance-rewards

• If I get a good appraisal, will it lead to
  organizational rewards?
• Many employees see this relationship as weak
  because organizations reward a lot of things
  other than appraisals.

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Rewards-personal Goals

• If Im rewarded, are they the rewards that I
  find personally attractive?
• If the perceived value of the reward is not worth
  it to the employee, motivation will be sub
  maximized

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How Does One Motivate?

• Recognize individual differences
• Match people to jobs
• Set challenging goals
• Encourage participation

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How Does One Motivate?

• Individualize rewards
• Link rewards to performance
• Check for equity
• Dont ignore money

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Motivating a Diversified Work Force

• Diversity is the norm
• Women
• Ethnic minorities
• Immigrants
• Seniors
• Cultural differences

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Motivating a Diversified Work Force

• Recognize the need for flexibility
• Employees have different needs and goals
• Men value autonomy more than women
• Women value the opportunity to learn, convenient
  work hours, and good interpersonal relationships
• What motivates a single mother may not motivate
  an older male

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Motivating a Diversified Work Force

• Recognize cultural differences
• Capitalism/individualism vs collectivisim
• Self-interest vs. loyalty to organization or
  society
• Willingness to accept risk vs. concern with
  performance

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Motivating a Diversified Work Force

• Methods
• Flexible work schedules
• Benefit needs
• Physical work settings
• Child care
• Job sharing
• Schooling

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Motivating Low-pay Service Workers

• Challenges these jobs pay little and offer
  limited opportunities for advancement
• Options for motivation
• Job flexibility scheduling and variety
• Provide recognition
• Job rotation
• Capitalize on the role of social support, group
  cohesion

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Motivating Professionals

• Are equity sensitive compare salary, job
  assignments with peers
• Place high value on certain job factors
• Autonomy
• Personal growth
• Recognition
• Challenging work

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Motivating Professionals

• Allegiance priorities
• Will often place their allegiance to their field
  of expertise over the organization that employees
  them
• Rewards offered outside the organization often
  take precedent over those from within

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Pay-for-Performance Programs

• Compensation plans that pay employees on the
  basis of some performance measure instead of the
  time on the job
• Piece-rate plans
• Competency-based compensation
• Gain sharing
• Wage incentives
• Lump-sum bonuses

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Pay-for-Performance Programs

• Can be used with individuals, teams, departments
  or based on overall organizational productivity
  and profits
• Very compatible with Expectancy Theory
• Motivational viewpoint pay is based on
  performance
• Cost viewpoint performance based bonuses avoid
  the fixed expense of salary increases

93
Employee Stock Ownership Plans

• A compensation program in which employees become
  part owners of their organization by receiving
  stock as a performance incentive
• Allows employees to purchase additional stock at
  attractive prices

94
Employee Stock Ownership Plans

• In effect, employees become part- owners of the
  organization
• Research indicates that ESOPS, given time,
  increase employee satisfaction and frequently
  result in higher performance

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Designing Motivating Jobs

• Job design the way tasks are designed to form
  complete jobs
• Some jobs are routine tasks are standardized
  and repetitive
• Some jobs are nonroutine tasks are varied
  requiring a large number of diverse skills

96
Job Characteristics

• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback
• When these characteristics are all present, the
  job becomes enriched and potentially motivating

97
Job Enrichment

• Increases the degree to which a worker controls
  the planning, execution, and evaluation of his or
  her work
• Accomplished by organizing tasks so as to allow
  the worker to do a complete activity