Adams’ Equity Theory in Management (Midterms)

The core of the equity theory is the principle of balance or equity. As per this motivation theory, an individual’s motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Higher is individual’s perception of fairness, greater is the motivation level and vice versa. While evaluating fairness, employee compares the job input (in terms of contribution) to outcome (in terms of compensation) and also compares the same with that of another peer of equal cadre/category. D/I ratio (output-input ratio) is used to make such a comparison.

The theory is built-on the belief that employees become de-motivated, both in relation to their job and their employer, if they feel as though their inputs are greater than the outputs. Employees can be expected to respond to this is different ways, including de-motivation (generally to the extent the employee perceives the disparity between the inputs and the outputs exist), reduced effort, becoming disgruntled, or, in more extreme cases, perhaps even disruptive.

Equity Theory consists of four proposed mechanisms for (de)motivation:

1. Individuals seek to maximize their outcomes (where outcomes are defined as rewards minus costs).
2. Groups can maximize collective rewards by developing accepted systems for equitably apportioning rewards and costs among members. Systems of equity will evolve within groups, and members will attempt to induce other members to accept and adhere to these systems. The only way groups can induce members to equitably behave is by making it more profitable to behave equitably than inequitably. Thus, groups will generally reward members who treat others equitably and generally punish (increase the cost for) members who treat others inequitably.
3. When individuals find themselves participating in inequitable relationships, they become distressed. The more inequitable the relationship, the more distress individuals feel. According to equity theory, both the person who gets "too much" and the person who gets "too little" feel distressed. The person who gets too much may feel guilt or shame. The person who gets too little may feel angry or humiliated.
4. Individuals who perceive that they are in an inequitable relationship attempt to eliminate their distress by restoring equity. The greater the inequity, the more distress people feel and the more they try to restore equity.

An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (and input) is higher. The way people base their experience with satisfaction for their job is to make comparisons with themselves to people they work with. If an employee notices that another person is getting more recognition and rewards for their contributions, even when both have done the same amount and quality of work, it would persuade the employee to be dissatisfied. This dissatisfaction would result in the employee feeling under-appreciated and perhaps worthless. This is in direct contrast with the idea of equity theory, the idea is to have the rewards (outcomes) be directly related with the quality and quantity of the employees contributions (inputs). If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative.

Employee believes that their work outputs are not equal or greater than their inputs then the employee will become de-motivated. Adams’ theory includes the assertion that when an employee is assessing whether the outputs they receive are fair the employee will often compare their colleague’s work inputs and outputs with their own. The comparison will often be made with an employee at a similar level in the organisation to the employee. 

Let us summarize this blog with a quote of great meaning .

Application of Skinner's Reinforcement Theory in Management (Midterms)

Skinner’s Reinforcement Theory or just Reinforcement Theory is one of the theories focusing on human motivation. 

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that individual’s behaviour is a function of its consequences. It is based on “law of effect”,  individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative consequences tends not to be repeated.

The theory is based on the principles of causality and knowledge that a worker’s behavior is regulated by the type of reward. The theory does not assess personality, but focuses on behavior and recognizes three basic rules of consequences:

• -Reward for positive behavior reinforces positive behavior
• -Punishment for negative behavior weakens negative behavior
• -If there is no reward or punishment, behavior is fading

The managers use the following methods for controlling the behaviour of the employees:

According to this theory, environmental consequences are powerful tools that managers can use to shape behavior. Skinner observed that either positive or negative behaviors can be targeted, but in a business setting, focusing on rewarding desired behavior helps employees develop positive habits and is less likely to foster resentment than a more punitive approach.

Positive Reinforcement- This implies giving a positive response when an individual shows positive and required behaviour. For example - Immediately praising an employee for coming early for job. This will increase probability of outstanding behaviour occurring again. Reward is a positive reinforce, but not necessarily. If and only if the employees’ behaviour improves, reward can said to be a positive reinforcer. Positive reinforcement stimulates occurrence of a behaviour. It must be noted that more spontaneous is the giving of reward, the greater reinforcement value it has.

Negative Reinforcement- This implies rewarding an employee by removing negative / undesirable consequences. Both positive and negative reinforcement can be used for increasing desirable / required behaviour.

Punishment- It implies removing positive consequences so as to lower the probability of repeating undesirable behaviour in future. In other words, punishment means applying undesirable consequence for showing undesirable behaviour. For instance - Suspending an employee for breaking the organizational rules. Punishment can be equalized by positive reinforcement from alternative source.

Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the probability of undesired behaviour by removing reward for that kind of behaviour. For instance - if an employee no longer receives praise and admiration for his good work, he may feel that his behaviour is generating no fruitful consequence. Extinction may unintentionally lower desirable behaviour.

 Reinforcement theory explains in detail how an individual learns behaviour. Managers who are making attempt to motivate the employees must ensure that they do not reward all employees simultaneously. They must tell the employees what they are not doing correct. They must tell the employees how they can achieve positive reinforcement.

Application of Maslow's Hierarchy Of Needs in Management (Midterms)

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five tier model of human needs, often depicted as hierarchical levels within a pyramid.

Maslow wanted to understand what motivates people. He believed that people possess a set of motivation systems unrelated to rewards or unconscious desires.

Maslow  stated that people are motivated to achieve certain needs and that some needs take precedence over others. Our most basic need is for physical survival, and this will be the first thing that motivates our behaviour. Once that level is fulfilled the next level up is what motivates us, and so on.It argues that while people aim to meet basic needs, they seek to meet successively higher needs.

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep.

2. Safety needs - protection from elements, security, order, law, stability, freedom from fear.

3. Love and belongingness needs - friendship, intimacy, trust and acceptance, receiving and giving affection and love. Affiliating, being part of a group (family, friends, work).

4. Esteem needs - achievement, mastery, independence, status, dominance, prestige, self-respect, respect from others.

5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.

. The first four levels are often referred to as deficiency needs (D-needs), and the top level is known as growth or being needs (B-needs).

The deficiency needs are said to motivate people when they are unmet. Also, the need to fulfil such needs will become stronger the longer the duration they are denied. For example, the longer a person goes without food, the more hungry they will become.

One must satisfy lower level deficit needs before progressing on to meet higher level growth needs. When a deficit need has been satisfied it will go away, and our activities become habitually directed towards meeting the next set of needs that we have yet to satisfy. These then become our salient needs. However, growth needs continue to be felt and may even become stronger once they have been engaged. Once these growth needs have been reasonably satisfied, one may be able to reach the highest level called self-actualization.

Every person is capable and has the desire to move up the hierarchy toward a level of self-actualization. Unfortunately, progress is often disrupted by a failure to meet lower level needs. Life experiences, including divorce and loss of a job may cause an individual to fluctuate between levels of the hierarchy. Therefore, not everyone will move through the hierarchy in a uni-directional manner but may move back and forth between the different types of needs.

How to Apply Maslow’s Theory to the Workplace

With Maslow’s theory, an employee’s beginning emphasis on the lower order needs of physiology and security makes sense. Generally, a person beginning their career will be very concerned with physiological needs such as adequate wages and stable income and security needs such as benefits and a safe work environment.

1.Physiological needs – This includes having a place to work, regular monthly salary, comfortable working environment and essential facilities (such as a tea/coffee making facilities)

2.Safety needs – These needs include having formal contracts of employment as well as benefits such as a pension scheme and sick pay. There should also be an emphasis on health and safety in the working environment.

3.Social needs – Promoting group working across teams, departments and different levels, as well as encouraging team building through social activities can help satisfy these needs. If you have employees who work from home or other remote locations (perhaps field-based) then it is important to ensure that you and their manager are fulfilling their social needs.

4.Self-esteem – At the self-esteem level respect for others and praise is important. A 360-degree feedback and appraisal system can help recognise employees’ contributions and a peer to peer or social recognition programme will celebrate employees’ achievements and confer prestige and respect.

5.Self-actualisation – At the highest level personal development plans, training, secondments, mentoring, and the opportunity for promotion enable staff to be the very best they can be. By implementing regular talent planning meetings among managers and HR, having career discussions with employees and offering options such as fast-track management programmes your organisation can fulfil employees’ self-actualisation needs while ensuring they have the expertise to fill future vacancies.

This simple motivation tool remains important and as such it can help management  achieve many organisational goals, such as improved staff retention and employee engagement, as long as they understand how to apply it in a practical manner and continually adapt to meet their employees’ changing needs.

Management Skills(Prelim)

Management Skills can be branched into four different skills , individually known as Organizational,People,Financial Management,Technical skills. Let us dwell in each skill and understand how each skill further improves the management skill.

Organizational Skills 
o is the ability to conceptualized and apply the management process 
o Systematic work flow 
o Make decisions based on the management process
o ability to communicate with co-workers 

Organizational skills is one of the most important transferable job skills a worker can possess. Companies need workers who can stay organized and focus on the projects at hand. However, company managers must also organize the work of their employees. Organizational skills in the workplace can include general organizing, planning, time management, scheduling, coordinating resources and meeting deadlines.

General Organizing Skills

Employees in the workplace must have general organizational skills, which allow them to determine the supplies they need, how to arrange their files and whom to contact for specific information. Managers who work with employees will often organize the work of employees to keep them busy, especially those that require a lot of direction, like file clerks or contract workers.

-Planning

Planning is a needed workplace skill, and it is particularly important as person advances into more supervisory or managerial roles. Most work is centered around certain projects that must be completed within a specific time period. Projects are usually divided into many different tasks, and workers must plan their tasks ahead of time to bring the project to fruition. A person can also plan ahead in case certain problems come up that could potentially delay the project.

-Scheduling

Scheduling involves allocating a time period for specific tasks or workload, and then assigning tasks to certain employees. It is important to account for peak periods when scheduling. Managers must also schedule dates for specific project tasks to be completed. Many small company managers use organizers to stay on track with their assignments.

-Coordinating Resources

Coordinating resources is another important organizational skill in the workplace. Managers must know how to coordinate both internal and external resources. Subsequently, the marketing manager analyzes the data, writes the report and prints or emails it to upper management to complete the project. Managers must also know how to use internal resources. For example, a manager that has an invoice about an overdue bill from a vendor will need to see accounts payable to resolve the issue.

-Meeting Deadlines and Time Management

One of the most important organizational skills is the ability to meet deadlines and use time wisely. It usually takes a little experience before a manager can properly assign tasks, allocate resources and complete a project on time. Meeting deadlines requires time management skills, which is an important organizational skill itself. Managers that meet deadlines consistently have the ability to prioritize tasks, delegate and be productive, according to Reference for Business.

People Skill 
o Understanding of human needs and work motivation 
o Ability to work with, understand and motivate other people. 
o Work with other organization members and to lead their own work groups

People skills are an asset in nearly every line of work. In general, good people skills are defined as the ability to listen, to communicate and to relate to others on a personal or professional level. Good people skills also extend to include problem-solving abilities, empathy for others and a willingness to work together toward the common good.

-Communication

Good people skills in the communications arena include the ability to take in information, clarify comments and participate in effective verbal and written exchanges. These skills can be developed by learning to participate in active listening in which you focus on the speaker’s words rather than using the time to formulate your own point of view or response. Good communication skills involve choosing your words carefully, issuing clarifying statements and reiterating complex conversations to verify information. Communication skills are an especially valuable people skill in publishing, advertising and media roles.

-Empathy

Empathy is the ability to have a visceral understanding of what another person is going through. Empathy skills allow you to put yourself in another person’s place and recognize the thoughts, emotions and experiences that person is having. The ability to have empathy allows a person to give more personal levels of attention and care and to provide a sympathetic listening platform. Empathy is an important type of people skill for those working in healthcare, childcare or educational roles.

-Conflict Resolution

Having the ability to mediate disputes and resolve conflict among customers and colleagues is an important professional skill. Conflict resolution involves the ability to clarify a specific dispute, listen in a non-judgmental manner to both perspectives and offer suggestions for reaching an equitable compromise. Conflict-resolution skills can help keep peace in a workplace, stem inner-office issues and maintain high customer satisfaction levels. This trait is especially helpful for those working in managerial or oversight capacities.

-Patience

Patience is an exceptional people skill that is valuable in every profession. Patience involves being able to maintain an even temper, to repeat and explain information as necessary, and to control anger in even the most trying situations. Patience is an important people skill to have in areas such as customer service, complaint departments and human resources roles.

-Tolerance

Professional workplaces are made up of people from all walks of life. Having tolerance and understanding for the differences of others is vital to long-term business success. Tolerant people have the ability to accept differences, even when they don’t personally agree with or condone them. This is an especially valuable skill in workplace environments that cater to people of vastly different ethnic, religious and cultural backgrounds.

Financial Management Skill 

o Effective use of and accounting for the monetary assets of the company 

Financial Management is  being able to effectively managing your finances is a critical. You will need to be able to forecast your cash flow and sales, as well as, monitor your profit and loss.

Having sound financial management skills will help you to run your business profitably and protect your financial investment.

-Marketing, sales and customer service

It is important to be able to promote your products or services effectively. Providing good customer service and having a marketing strategy in place will help you to generate sales.

-Communication and negotiation

You will need to communicate and negotiate with your suppliers, potential investors, customers and employees. Having effective written and verbal communication skills will help you to build good working relationships. Every communication should reflect the image you are trying to project.

-Leadership

If you employ people leadership will be a key skill. You must be able to motivate your staff in order to get the best out of them and improve productivity. Allocate time to mentor and coach your employees.

-Project management and planning

Starting a business means you will have to manage a range of projects, such as setting up a website, arranging the fit-out of your premises and developing a range of policies and procedures. Knowing how to effectively manage your resources, including time, money and staff will help you to achieve your goals.

-Delegation and time management

Failure to delegate is a trap many business owners fall in to usually because they are reluctant to let go of control. Managing your time effectively may mean delegating responsibility to someone else in the business or outsourcing. Identifying who you can delegate tasks to allows you to concentrate on those tasks that generate revenue.

-Problem solving

However much you plan, you will encounter problems in your business. This means you need to be able to make good decisions, sometimes under pressure.

-Networking

Building good relationships through networking will help you to grow your business and give you the support you’ll need.

Technical Skills 

o Synthesis of the first three skills and the management of physical resources into the operational parameters unique to each organization. 

o Ability to use equipment procedures and techniques of specialized fields. 

Technical skills are abilities and knowledge needed to perform specific tasks. They are practical, and often relate to mechanical, IT, mathematical, or scientific tasks. 

-Big Data Analysis
Nearly every industry today relies on data, whether it is data about their clients, or the success of their product. While it is easy for companies to get data, they need employees who can collect, organize, and then interpret that data.

-Project Management
This might seem to be more of a soft skill than a hard, technical skill, but project management is critical for all technical projects. Being a good project manager means being a good leader, delegating tasks, and measuring the success of each project. Being a good project manager means more successful projects, which employers always want.

-Technical Writing
Many jobs that involve written communication require you to explain complex things in a way that is easy to understand. You might have to send messages to clients or manufacturers, or write press releases, web content, or manuals for clients. Being able to communicate complex ideas in a clear way will make you stand out in many jobs.

Having discussed and enumerated each skill we must engrave into our mind that we should use these skills to further develop others not just ourselves in order to attain more heights and reach higher obstacles , A team with a lot of similar skill set or different skill set working together can achieve more than a single man with a variety of skill set in his arsenal working alone and using others because power and authority alone may suppress the skills and talents of those around which may eventually lead to dissatisfaction and failure.  Let us teach each other different skills in order to aid one another in this race of life. Let us end this blog with a quote of a similar sense or message.

Management Levels (Prelims)

 Management level is defined as the line of demarcation various managerial positions in an organization , or it is defined as the number of levels in management force as it increases and vice versa, it can also be used to determine the direct chain of command within the organization.

Let us briefly tackle each level of management in order to understand the chain of command and authority bestowed and exercised by each level in order to gain a further insight and knowledge on each level.

Top level or Administrative level is the ultimate source of authority and it manages goals and policies for an enterprise devoting more time in planning and coordinating functions in order to control and coordinate the activities of all departments, it is also responsible for maintaining a contact with the outside world and  providing guidance and direction and has the responsibility towards the shareholders for the performance of enterprise.Consists of board of directors, chief executive or managing director.

The role of the top management can be summarized as follows 

1. Top management lays down the objectives and broad policies of the enterprise.
2. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
3. It prepares strategic plans & policies for the enterprise.
4. It appoints the executive for middle level i.e. departmental managers.
5. It controls & coordinates the activities of all the departments.
6. It is also responsible for maintaining a contact with the outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the shareholders for the performance of the enterprise.

Middle level or  Executory level  interprets and explains policies from top level in order to execute the plans on the organization in accordance with the policies and directives of the top management , it also  make plans for the sub-units of the organization even participating in employment and training of lower management but they devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management.

Consists of branch of managers and departmental managers.

The role of the middle management can be summarized as follows 

1. They execute the plans of the organization in accordance with the policies and directives of the top management.
2. They make plans for the sub-units of the organization.
3. They participate in employment & training of lower level management.
4. They interpret and explain policies from top level management to lower level.
5. They are responsible for coordinating the activities within the division or department.
6. It also sends important reports and other important data to top level management.
7. They evaluate performance of junior managers.
8. They are also responsible for inspiring lower level managers towards better performance.

Lower level or Supervisory or First line of Defense  refers to those executives whose work has to be largely with personal oversight and direction of operative employees which has the main responsibility of directing and controlling functions . they also assign jobs and tasks to various workers in which they guide and instruct workers for day to day activity responsible for the quality as well as quantity of production.They are also entrusted with the responsibility of maintaining good relation on the organization.

The role of the top management can be summarized as follows 

1. Assigning of jobs and tasks to various workers.
2. They guide and instruct workers for day to day activities.
3. They are responsible for the quality as well as quantity of production.
4. They are also entrusted with the responsibility of maintaining good relation in the organization.
5. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.
6. They help to solve the grievances of the workers.
7. They supervise & guide the sub-ordinates.
8. They are responsible for providing training to the workers.
9. They arrange necessary materials, machines, tools etc for getting the things done.
10. They prepare periodical reports about the performance of the workers.
11. They ensure discipline in the enterprise.
12. They motivate workers.
13. They are the image builders of the enterprise because they are in direct contact with the workers.

The management level can be compared to a food chain or food web in which the highest or the peak position is feared by all but let us take into consideration not all the time that the top is always at the top sometimes those below can overpower and dominate those above them eventually causing a shift and a sudden change in the web or chain. Let us remember that this may apply to us that we should treat others accordingly and that we should never abuse the power and right given to us because if we mistreat others or act unfairly there might come a time that we will be below them and that they are above us.

Hierarchy of Plans (Prelims)

  The hierarchy of plans is divided into eight steps respectively, Purpose/mission →Objectives→ Strategies → Policies → Procedures →Rules → Programs→ Budget. Each and every step is essential in Management Planning, let us discuss and understand each step carefully.

Purpose/Mission is the first and foremost the basic foundation of the hierarchy , this is the step where  it states and defines the purpose of the organization and its main goal is to direct the organization to its further development and to its best opportunities. After the purpose comes the Objectives in which planning, organizing,staffing, leading and controlling is aimed and done in the purpose of fulfilling and building the mission goal. Next comes Strategies where there is devotion and compliance to the objectives in order to achieve the goals, in this step a generalized process of action with commitment of emphasis and discipline is given in order to attain and finish a broad spectrum of objectives.

Policies is the step in which guides and channel thinking and the action in decision making is based and should be complied with and followed in order to have a uniform result and have a common goal and objectives which slowly aid in solidifying and reaching the Mission goal of the organization. The following step is Procedures it is a plan that establish a required method of handling future activities , it is a guide to action rather than thinking due to its nature of having to be followed in order to reproduce a desired,expected and satisfactory result.Rules it is essentially a spectrum of specific and definite action that should be taken and strictly followed except when the a dire situation arises in which required actions should be chosen among the alternatives.

Programs is the result of complying to the goals,policies,procedures,task assignment and other steps to be taken to carry out a given course of action, it is the result of combining and following the previous steps thus it is the "expected results" from the actions and strict compliance to the mission.Finally the Budget is the statement of expected results in expressed in numerical terms it is also called the numberized program

Each of the following steps should be followed schematically in order to obtain the desired end result, one should carefully take each step and ensure it is solid enough in order to ensure that it will not slowly crumble in the end. With each planned and determined step forward each and every effort and hard work will piece together in order to create a masterpiece. I will end this blog with this quote