Principles of Supervision

Solving Problems and Decision Making

Chapter 7

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 Explain three different ethical viewpoints Compare and contrast group decision and individual

decision making List three techniques for improving group decision

making

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

The Decision Making Process

Identify the problem

Evaluatedecision

Implement decision

Collect relevantinformation

Evaluatealternatives

Select bestalternative

Develop alternatives

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

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

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

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

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

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

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

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 manager’s information

Are becoming decentralized – pushed down to the end-users

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

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

Way of Thinking Some people are logical and

rational, they process information serially

Others are intuitive and creative, they perceive things as whole

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

The Decision Style Model

Analytic

Directive Behavioral

Conceptual

Rational Intuitive

Low

High

Way of Thinking

ToleranceFor

Ambiguity

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

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

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

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

What’s 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 supervisor’s style

What’s 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

Ethics In Decision Making Common rationalizations

It’s not really illegal or immoral It’s in my (or the organization’s) best

interest No one will find out (MY Favorite) Since it helps the organization, the

organization will condone and protect me

Three Views on Ethics Utilitarian view Rights view Justice view

Does it providethe greatest goodfor the greatest

Number?

Does it respect therights of theindividuals affected?

Is it fair and equitable?

Ethical questions

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

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

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

Group Decision Making Advantages

Provides more complete information

Generates more alternatives Increases acceptance of a

solution Increases legitimacy

Group Decision Making Disadvantages

Time consuming Minority domination Pressures to conform Ambiguous responsibility

Group Decision MakingAdvantages Vs. Disadvantages

ADVANTAGES

More information

More alternatives

Solution acceptance

Legitimacy

DISADVANTAGES

Time consuming

Minority Domination

Conformity

Ambiguous responsibility

Group Decision Making More accurate Less speed More creative More acceptance

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

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

Group Decision Making Techniques Brainstorming Nominal group technique Electronic meetings

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

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

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

Principles of Supervision

Motivating Your EmployeesChapter 8

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 individual’s 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

What Is Motivation? The willingness to do something Is conditioned by the action’s

ability to satisfy some need for the individual

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

Motivation and Needs

Unsatisfied Need

IncreasedTension Drive Decreased

TensionSatisfied

Need

Needs

Motivation

Individual Differences and Motivation You must understand individual

differences – different cultures, backgrounds, ages, values

What motivates one person, may not motivate another

Personality Types Internal Locus of Control

Belief that you control your own destiny

“You are the master of your own domain”

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

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

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 SE’s are dependent on receipt of positive evaluations and more likely to seek approval of others

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

Personality Types Self-monitoring

If low in this trait, they can’t disguise themselves – tend to display their true feeling and beliefs in every situation

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

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

Needs Theories - Maslow Maslow’s 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

Maslow’s Hierarchy of Needs

SA

Esteem Needs

Social Needs

Security Needs

Physiological Needs

Maslow’s 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 doesn’t have to be completely

satisfied, just substantially satisfied

McGregor’s 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

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

Theory X – Theory Y

Think of these theories as a continuum

Theory X Theory Y

Employees fall somewhere in between the two ends

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

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

Contrasting ViewsHerzberg vs. Traditional

Motivators Hygiene Factors

Traditional View

Satisfaction

Satisfaction No Dissatisfaction

Dissatisfaction

No Satisfaction Dissatisfaction

Herzberg’s View

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

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

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

Contrasting Views The classical view says that the

opposite of satisfaction is dissatisfaction

Herzberg’s view - removing dissatisfiers from the job does not necessarily make the job satisfying In other words these factors don’t

motivate positively

Contrasting ViewsHerzberg vs. Traditional

Motivators Hygiene Factors

Traditional View

Satisfaction

Satisfaction No Dissatisfaction

Dissatisfaction

No Satisfaction Dissatisfaction

Herzberg’s View

Herzberg’s Theory

Maintenance factors don’t 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

McClelland’s 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

McClelland’s 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

Don’t always make good supervisors, prefer doing things themselves rather than leading others

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

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

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

Equity Theory

Individual Others’Outcomes Outcomes

Compare with

Individual Others’Inputs Inputs

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

Equity Theory Negative equity behavior

Reduced work effort Production of lower quality work Sabotage Skipped work or missed days Resignation

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

Expectancy Theory Explains why workers aren’t

motivated on their jobs and merely do the minimum necessary

Postulates three relationships Effort-performance Performance-rewards Rewards-personal goals

Expectancy Theory

IndividualEffort

IndividualPerformance

OrganizationalRewards

PersonalGoals

1 32

1

2

3

Effort-performance

Performance-rewards

Rewards-personal goals

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

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.

Rewards-personal Goals “If I’m 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

How Does One Motivate? Recognize individual differences Match people to jobs Set challenging goals Encourage participation

How Does One Motivate? Individualize rewards Link rewards to performance Check for equity Don’t ignore money

Motivating a Diversified Work Force Diversity is the norm

Women Ethnic minorities Immigrants Seniors Cultural differences

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

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

Motivating a Diversified Work Force Methods

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

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

Motivating Professionals Are equity sensitive – compare

salary, job assignments with peers Place high value on certain job

factors Autonomy Personal growth Recognition Challenging work

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

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

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

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

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

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

Job Characteristics Skill variety Task identity Task significance Autonomy Feedback When these characteristics are all

present, the job becomes enriched and potentially motivating

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