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Motivation theories and management practice

EXECUTIVE SUMMARY

This report contains information about the motivation theories & its management practice and the factors, which really have an important influence on the behaviour of individuals and teams along with their application in Nike's company. It is also helpful to make decisions regarding management style and selection of the individuals for an organization.

LEADERSHIP

Leadership is the backbone for the success of an organization. Normally there are four types of leadership styles, which are Autocratic, Persuasive, Participative and Democratic. These leadership styles have different effectiveness in different circumstances.

MOTIVATION THEORIES AND

MANAGEMENT PRACTICE

Motivation is get the maximum output from an individual by providing him different types facilities and fulfilling various needs. There are three types of motivation theories, which are Hierarchy Of Needs, Two-Factor motivation theory and Expectancy theory. There is a profound link between motivation theories and management practice, because without implementing these theories, an organization cannot get maximum output from its employees.

INDIVIDUAL BEHAVIOUR

Behaviour of an individual in an organization is very much important, because better working environment in an organization cannot be developed as far as individuals in that organization do not behave decently and manner fully.

GROUPS AND GROUP

BEHAVIOUR

Any collection of people together is called Group. There are two types of groups; formal and informal. Each group consists of a Leader and Team members. Formal groups are also called teams. When a group of people comes together, they do behave in a similar way, such as all people in the ground come to see the Match, which is common behaviour of all these people.

The analysis of:

1.MOTIVATION: THEORIES AND

MANAGEMENT PRACTICES

2. BEHAVIOUR OF INDIVIDUALS

3. GROUP AND GROUP DYNAMICS

INTRODUCTION

The analysis of Motivation theories, and behaviour of an individual & group in an organization and their application is very much necessary to lead an organization, because knowledge of these areas helps to get the maximum output from the employees and to run and organization effectively.

PURPOSE, SCOPE AND LIMITATION

The purpose of this report is to analyze the Motivation theories, leadership styles, and behaviour of individuals and groups along with their application in the Nike's company. Tried best to get the maximum information about these issues, but due to national boundary limitations and terrible circumstances of the country, it is not very much detailed report.

SOURCES AND METHODS

In preparing this report, hints took from Syllabus book of Marketing and Organization & Behaviour, although Internet also paid an important role in its preparation. The sites visited and magazines for references are also mentioned in the Endnotes.

REPORT ORGANIZATION

This report evaluates the Motivation theories and leadership style, also the behaviors of individuals and groups during the work time in Nike company. General information about these areas is also covered.

LEADERSHIP

Usually there is no big difference in the leader and manager. Manager performs seven functions, which are planning, organizing, staffing, directing, coordinating, reporting and budgeting.

Whereas the some special functions make leader different from manager, which are:

FIG.1: Special Leadership Functions

Normally there are four types of leadership styles, which are:

> Autocratic (Tells)

> Persuasive (Sells)

> Participative (Consults)

> Democratic (Joins)

1. AUTOCRATIC

In this type of leaderships leader dominates rest of the team members, by using his authority, to attain a particular goal. It is not very much effective to get the utmost performance and outcomes from the team members. This type of leadership style faces a huge confrontation from the team members, but in order to get the things done, leader keeps a pressure over his team members.

Effectiveness

In some cases Autocratic leadership is very much effective, especially where urgent decisions are required. For example in a battlefield, soldiers need to take a quick decisions, there they don't get time for consultation, so there Autocratic leadership is required and on this point it works very efficiently.

2. PERSUASIVE

In this type of leadership all the decisions are taken by leader, but in order to persuade the team members, for their motivation & involvement in the task and to make them feel that they are also involved in decision-making, leader describes his decision to his employees or subordinates. It makes the leader little lenient and the team members not very much loyal to all decisions.

Effectiveness

Up to some extend this type of leadership is also very effective. Such as nowadays in our country Pakistan, Persuasive leadership is working; all the political decisions are taken by Gen. Musharaf, but in order to persuade the citizens and other politicians, he involves Prime Minister and other few politicians.

3.PARTICEPATIVE

This leadership style includes taking reviews and suggestions from all the team members regarding the decision-making, but still leader holds the authority to take the final decision. This type of decision-making takes a long time, but as many people think over the same aspect, so decision is more accurate. This makes subordinates motivated and involved in that task.

Effectiveness

This leadership style is very much effective, it makes team members involved and motivated along with the final decision taking right only to the leader. Such as in EDWARDES COLLEGE, before making a new rule or taking any decision, Principal consults to the staff, but still he got the authority to implement or reject that rule or decision.

4. DEMOCRATIC

In democratic leadership whole team together takes the decision; it means that the leader alone does not take the decision, but according to the willingness, suggestions and reviews of the team. Team members can select tasks for themselves. It makes them very much involved and motivated, because they work according to their wish. Decisions become more accurate but on other hand, leader loses the authority of decision making lonely.

Effectiveness

In few cases this leadership is very effective, such as in our HND class, group assignments are given, in each group one leader is selected to observe all the members, but he has no authority to take decisions, because in each group everybody selects the task himself, which is convenient to him. There is no compulsion of doing any specific task.

MOTIVATION THEORIES

"Motivation is the process by which the behaviour of an individual is influenced by others, through their power to offer or withhold satisfaction of the individual's need and goals".

(Organizations and Behaviour)

HND Text Book

Normally there are three types of motivation theories. These theories work significantly according to the circumstances. These theories are:

1. The hierarchy of needs

2. Two-factor theory

3. Expectancy theories

1. THE HIERARCHY OF NEEDS

Abraham Maslow proposed the hierarchy of needs, which describes the motivation priorities that an ordinary employee keeps:

FIG.2: Maslow's Hierarchy of Needs

According to this theory an employee or group member will be motivated if the above given needs are fulfilled.

> Physiological needs represent the needs for food and air etc

> Safety needs represent needs for security from danger & threats etc

> Social needs represent needs for relationship and belongingness etc

> Esteem needs represent needs for position, recognition and respect from other etc

> Self actualization needs represent needs for achievement of self fulfillment etc

In order to fulfill this theory requirement, Nike has established The SHAPE inspection Team. It is working since 1997 and its basic purpose is to measure the overall performance of the company towards its employees, including environment, safety and health needs. For this purpose Nike factories are safe, environmental friendly. The following are some places where Nike appoints its employees:

Source: www.nike.com FIG.3: Nike's Safe and Environment friendly Buildings

For further fulfillment of this theory in 2003, Nike has founded its Global Women's Leadership Council (GWLC), the purpose of this Council is to promote the professional development of women, within the company.

2. TWO-FACTOR THEORY

Fedrick Herzberg, who was an American psychologist, interviewed 203 Pittsburgh employees in 1950s. He asked them that what thing motivated them and what demotivated. After this interview he came to a conclusion that there are two basic requirements of individuals:

> Need of the 'hygiene factors' which includes, company conditions, wages, interpersonal relations, job safety and management etc, if these are according to employee requirements, he will be motivated and if not, it means dissatisfaction of the employees.

> Motivator factors are more concern about individuals higher needs such as self-actualization and personal development. These factors motivate individuals, which leads them towards more performance and efforts regarding their work and job fulfillment. These factors include, responsibility, promotion and achievements etc.

The fulfillment of this theory at Nike is done by providing various facilities to its employees. For example Nike's wages to its employees are more than rest of its competitors; therefore people love to work here. About Ethical values Nike believes:

Our code of ethics is called Inside the Lines; it defines the standards of conduct we expect of our employees. Every year, all employees are required to verify that they have read and understand Inside the Lines.

(Jill Ker Conway)

Committee Chairman

The relation among employees and administration is very good and each employee submits its annual confidential report regarding the administration and other employees, which is given due importance.

3. EXPECTANCY THEORIES

It consists of two theories, which are Vroom's and Handy's theories.

a) VROOM'S THEORY

Victor Vroom was another American psychologist; in 1964 he developed the formula, supported by expectancy theory for the measurement of human motivation degree. He recommended that the strength or motivation degree of an individual, is the product of two factors:

F = V x E

FIG.4: Vroom's formula for Human Motivation Measurement

> V stands for the strength of an individual's preference for certain outcome. V can be zero, negative or positive integer.

> E stands for an individual's expectation, which will be the resultant of that outcome from certain behaviour. As it is just an imagination of an individual's expectation, so it can be any number from 0 (no chance) to

1 (certainty)

b) HANDY'S MOTIVATION

CALCULUS

Charles Handy introduced a model, which describes the way that an individual deals with own decision for the fulfillment or rejection of that decision. This model is different from the expectancy model.

Handy recommends that there is a motivation calculus, which can be deliberate or insensible. It evaluates following:

> An individual's own requirement

> Preferred results or outcomes

> E factors, which include, energy, excitation, enthusiasm, emotion and expenditure etc

At Nike this theory is fulfilled by providing its employees their preferred jobs, which makes them motivated and they start putting their more efforts on their jobs. For example if a distributor gets some new design idea and (s)he shares it with the design makers, his or her suggestion is appreciated, which makes them feeling an importance in the company.

RELATION BETWEEN MOTIVATION THEORIES AND MANAGEMENT PRACTICE

There is a profound relation between the management theories and management practices, because without the application of these theories in an organization, the management of that organization cannot work effectively and cooperatively with the workers of that organization.

At Nike, in order to promote the employees, Nike has made such a rule that the 'Compensation Committee' is responsible for overseeing the performance evaluation of even the CEO. It means that at Nike, in order to make the employees satisfied from its management, management deals equally to its entire personnel. Global Alliance was launched in 1999, it interviewed workers more than 16,000 and it launched a number of development projects towards making management more effective and efficient towards personnel.

FACTORS INFLUENCING INDIVIDUAL BEHAVIOUR

Mainly there are seven factors, which influence the behaviour of an individual at work. The relation between these six factors including seventh 'ability', is given by following:

Source: www.busi.mun.ca

FIG.5: Mars Model of Individual Behaviour

1. VALUES

Values are the perceptions or expected behaviour that an individual keeps to achieve the result. At Nike, employees believe that satisfaction of the customer and the good interpersonal relation between personnel can lead Nike towards leading Sportswear Company and that makes them very much successful.

2. PERSONALITY

It is the overall outline of characteristics of an individual's consistent internal states that explains the behaviour of that individual. Nike appoints people with impressive personality and creative mentality, because without innovation Nike is nothing. So personality has an important role at Nike.

3. PERCEPTION

Perception is the point of view of an individual, which he keeps towards its surrounding environment. Nike prefers broad-minded people, because it deals with almost people from all nations, races and religions, and a narrow-minded person cannot work according to the equalizing policies of Nike.

4. EMOTIONS

Emotions are the inner feelings, sentiments or passion of an individual towards any work. Most of the Nike's personnel are also athletes. This is, because it is natural thing that people like that which they can do practically. So therefore athlete people will be more concerned or passionate about those things, which facilitate athletes. So therefore Nike personnel try to produce best possible thing passionately, for its athlete customers.

5. ATTITUDE

Attitude consists of the manners in which an individual acts or reacts to the different people and situations or circumstances. Nike employees possess a very much positive attitude towards their colleagues, administration and their organizational culture. It means there is a respect for seniors and support for juniors etc along with almost no interpersonal conflicts.

6. STRESS

Stress is a state of feeling tension or pressure, due to any harsh circumstances, overburden of work and insecurity of something. Stress influences a lot efficiency and behaviour of an individual. So in order to avoid this, Nike encourages its employees to contribute some time for refreshment. For this, Nike has constructed many parks for its employee's community and no employee is overburdened due to work, in order to avoid the stress.

7. ABILITY

Ability stands for capabilities or skills that and individual possesses. Nike appoints individuals with multi-skills and creative mentality, because Nike's whole business depends upon innovation, so only people with extra qualities can make it possible.

INTERPERSONAL BEHAVIOUR

An individual's own behaviour in an organizational role is very much important, because organizational role is the role, which an individual gets in relation to his surrounding. For example same person would be son at home, boss in office player in a ground.

OWN BEHAVIOUR

IN NIKE

As Nike is an internationally recognized, well reputed and no.1 sportswear manufacturing company in the world, so an individual's own behaviour in Nike means a lot.

We consider the example of Nike's sales Manager Mr. Alexander Mathew, in order to understand an individual's behaviour in relation to Nike's organizational role.

Mr. Alexander is working here from last 8 years. His job is to manage the promotion and sales of the Nike products. He has a big Number of subordinates, which makes him senior to them. On the other hand he is junior to CEO and other Directors. His organizational role is to guide the subordinates regarding the selling and promotion of the products.

To fulfill the social roles, he gives respect and importance to his juniors and seniors both. This makes him close to them. His communication style is very effective; he delivers the orders in such a polite way that every employee obeys his order. He works with cooperation with all employees. He has such a job, where he has to supervise a number of employees and in order to keep them together he does not let the conflicts to come among their relation. He has a number of interpersonal skills such as the fluent message delivery, awesome personality the very much important and effective managing style, through which he is managing for last eight years.

GROUPS

A group can be defined as:

A group is any collection of people who perceive themselves to be a group

(Organizations and Behaviour)

HND Text Book

Source: www.learnthings.co.uk

FIG.6: A photo of a Group doing Business Meeting

There are two types of groups, which are:

> FORMAL: Groups are those, which are formed deliberately to achieve any specific objects. These groups are also called teams. It consists of team members and one Leader from the same team, such as platoon of the soldiers etc. These groups are self made or made by organization.

> INFORMAL: Groups are those, which are loosely structured. It means there is no pre-planning for their development. For example a group of friends going to a trip. These have no specific objective and leader; leader can be different at different situations, depending upon circumstances.

GROUP BEHAVIOUR

When a large number of people come together, they form group or large group. At this situation they all behave in a similar way, which is different from the individual behaviour. For example when a large number of people come to the ground, either they march or protest for something, which is their collective or group behaviour. There are some special behaviors of groups:

> CROWD: When their would be panic among the people

> SPECTATORS: When group of people come together to participate in any event, such as Cricket Match and Movie in Cinema.

> PUBLIC: Exclusion to the rule that group must reside in same physical place. People watching same channel on television may react in the same way, as they are occupying the same type of place - in front of TV - although they may physically be doing this all over the world

FACTORS INFLUENCING

TEAMWORK

The factors, which make a team an effective and ineffective team, are given below:

FACTORS TO EFFECTIVE

TEAMWORK

Usually there are a large number of factors, which lead a tem to effective team, but some of them are given below:

> Team object or purpose must be clear to all team members.

> All the team members must be committed and sincere regarding their job.

> Individual interest should not overcome the group objective.

> There must be 'Democratic' leadership style in the group.

> Each member of the group should be given due respect.

> Members must be cleared about their job.

> There must be no conflicts among the group members and there should be trust and open discussion among the members.

> Members should obey the leader.

> No member should be overburdened.

> Leader's behaviour should be balancing towards all team members.

> Each member should fulfill own job within the specified time.

THREATS INFLUENCING

TEAMWORK

As there are a large number of factors, which make teamwork effective, similarly there are threats, which influence the performance of team. Some of them are given below:

> When there would be 'Autocratic' leadership style.

> Each member tries to achieve own interest.

> A big number of conflicts among the members.

> Everyone in the group agrees to a decision thinking that everyone else supports the decision, but in fact no one supports the decision.

> Leader only supports to the people, which are more close to him or her.

> There is no estimated outcome.

> No coordination among the team members.

> No trust and helping spirit among the team members.

ENDNOTES

References for the preparation of this report are taken from the following sources:

WEBSITES

> www.nike.com

> www.see.ed.ac.uk

> www.learnthings.co.uk

> www.busi.mun.ca

> www.niketown.nike.com

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