CHAPTER

18-23
Dr Anjali Motwani
LEADING AND MANAGING INDIVIDUALS AND
TEAMS
• Leadership, Leadership styles – Theories of leadership-
Principles and techniques of directing
• Recruitment and selection of employees – individual
and group behavior in business organizations – team
formation – development and management
• Motivation: Meaning - Theories of motivation-
Motivating individuals and groups - Team formation,
development and management- -
• Learning and training at work- Review and appraisal
of individual performance
CHAPTER 18
 LEADERSHIP
• Leadership is an interpersonal influence
directed toward the achievement of a goal or
goals.
• Leadership is therefore a conscious activity
and is concerned with setting goals and then
inspiring people to achieve them.
MANAGEMENT (MANAGER)
• Management is the effective use and co-ordination of business
resources in order to achieve key objectives with maximum
efficiency.
• Managers have an overall aim of ensuring that everything that
needs to be done within an organization is done on time and to
an appropriate standard. They are usually given authority in the
organization, which will enable them to ensure that staff follow
their instructions.
• Note that a manager is not necessarily a leader. A manager will
only be a leader if he or she is able to influence people to
achieve the goals of the organization without relying on the use
of formal authority.
 SUPERVISION
• A supervisor is a person given responsibility
for planning and controlling the work of a
group of employees. They are responsible for
ensuring that specified tasks are performed
correctly and efficiently by the group.
• Supervisors are therefore the lowest level of
management and act as an interface between
management and the workforce.
 MANAGERIAL AUTHORITY AND
RESPONSIBILITY
• Authority is the right to give orders and the power to
exact obedience. Fayol
• Authority is the right to do something, or ask someone
else to do something, and expect it to be done.
• Responsibility is the liability of a person to be called to
account for his or her actions. It expresses the
obligation a person has to fulfill a given task. A person is
said to be responsible for a piece of work when he or
she is required to ensure that the work is done.
 THE LINK BETWEEN AUTHORITY
AND RESPONSIBILITY
• Responsibility without authority
• Authority without responsibility
 POWER
• Try not to get confused between authority and
power. Authority is the right to do something,
while power is the ability to do something.
FRENCH AND RAVEN IDENTIFIED FIVE TYPES,
OR SOURCES, OF POWER.
• Reward power – this occurs when one person is able to reward another
person for carrying out their orders or meeting other requirements. For
example, some managers may be able to offer pay rises to their
subordinates.
• Coercive power – this is based on one person having the ability to punish
another person for failing to carry out their orders satisfactorily. This
could include the threat of pay cuts or demotion.
• Expert power – this occurs when one person is regarded by others as
having special expertise or knowledge that others do not.
• Referent power – is based on the personal qualities of the individual and
often occurs when one person identifies with, or wishes to imitate
another.
• Legitimate power – this is power derived from being in a position of
authority within the organization. For instance, other employees may
follow the instructions of the senior managers simply because of their
position at the top of the organization's hierarchy.
 THEORIES OF MANAGEMENT
• Classical theories
 Fayol – The five functions of management
 Taylor – Scientific Management
• The human relations school
 Elton mayo
• Modern writers
 Drucker – Five basic operations
 Mintzberg – The ten skills of the manager
HENRI FAYOL
 HENRI FAYOL
• Henri Fayol is considered as the father of modern management
theory. At the beginning of the twentieth century, French engineer
Henri Fayol came up with process control. He focused on the
activities of all managers. According to him, management was a
common event for all businesses.
• He first identified five functions that managers perform in an
organization:
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling
PROCESS OF MANAGEMENT
 TAYLOR – SCIENTIFIC MANAGEMENT

• Taylor believed that by analyzing work in a

scientific manner, it was possible to find the
one best way to perform a task.
• He felt that by organizing work in the most
efficient way, the organization's productivity
would be increased, allowing them to reward
employees with additional remuneration,
which Taylor stated was their only motivation.
 Taylor’s scientific management
consisted of four key principles:
• Tasks should be analyzed in detail to determine the most efficient
methods to use – i.e. they should be planned to maximize
efficiency.
• Staff members should be scientifically managed. Only the most
suitable people should be chosen, trained and developed for
each job.
• Managers should make all key decisions and provide detailed
instructions to workers to ensure that work was carried out in
the most efficient way possible.
• Work was to be divided between managers and workers, with
close co-operation between both groups to maximize efficiency.
 THE HUMAN RELATIONS SCHOOL
• This model was developed by Elton Mayo, during his five-year
study at the Hawthorne Works of the Western Electric Company
in Chicago. Mayo argued that:
• This approach recognized the role of interpersonal relations in
determining workplace behaviour and it demonstrated that
factors other than pay can motivate workers.
• Employee behaviour depends primarily on group relations and
management-worker communication, rather than working
practices or physical conditions (e.g.. Lighting and noise)
• Wage levels were not the dominant motivating factor for most
workers
• Ultimately, worker attitudes, group relationships and leadership
style were the key factors that determined productivity.
DRUCKER’s 5 BASIC OPERATIONS
MINTZBERG – THE TEN SKILLS OF THE
MANAGER
 LEADERSHIP
• TRAIT THEORIES : These argue that good
leaders have certain natural attributes or
qualities that allow them to lead (such as a
cheerful personality, or fairness). Leaders are
therefore born, not made.
BLAKE AND MOUTON – THE MANAGERIAL GRID
 ASHRIDGE MANAGEMENT COLLEGE
• Tells (autocratic) – the manager makes all the decisions
and issues instructions which are to be obeyed without
question.
• Sells (persuasive) – the manager still makes all the
decisions, but believes that team members must be
motivated to accept them in order to carry them out
properly.
• Consults (participative) – the manager confers with the
team and takes their views into account, although still
retains the final say.
• Joins (democratic) – the leader and the team members
make the decision together on the basis of consensus.
CONTINGENCY THEORIES
• These suggest that there is no correct style, or
approach. Instead, successful leadership
involves adapting to the particular
circumstances in which the leader finds
themselves.
ADAIR – ACTION-CENTRED LEADERSHIP
FIEDLER – CONTINGENCY THEORY
• Fiedler studied the relationship between the
style of leadership and the effectiveness of the
work group. First, he identified two distinct
styles of leadership
Psychologically distant managers (PDMs)
• Seek to keep their distance from subordinates by
formalizing roles and relationships within the team
• Are withdrawn and reserved in their interpersonal
relationships
• Prefer formal communication and consultation methods
rather than seeking informal opinions
• Are primarily task-oriented
Psychologically close managers (PCMs)
• Do not seek to formalize roles and relationships
• Prefer informal contacts to regular staff meetings
• Are primarily person-oriented rather than task-oriented
BENNIS – TRANSFORMATIONAL LEADERSHIP

• Bennis argued that there were two types of leaders:

• Transactional leaders – these leaders see the
relationship with their followers in terms of a trade:
they give followers the rewards they want in exchange
for service, loyalty and compliance.
• Transformational leaders – see their role as inspiring
and motivating others to work at levels beyond mere
compliance. Only transformational leadership is said
to be able to change team/organisational cultures and
move them in a new direction.
KOTTER – MANAGING CHANGE
This approach aims to Employees are more likely
Participation involve employees, to support changes made
and usually by allowing some and give positive
involvement input into decision commitment as they ‘own’
making. the change.

This approach aims to This approach relies on the

keep employees hopeful belief that
communication about the
Education and informed, usually through benefits of change to
presentations about the
Communication reasons for the required employees will result in their
change. acceptance of the need to
exercise the changes
necessary.

Facilitation and Employees may need help

For example training or
support counseling. to overcome their fears and
anxieties about change.

The information that is

Manipulation disseminated is Involves covert attempts to
and co-optation selective and distorted sidestep potential resistance.
to only emphasize the
benefits of the change.

Negotiation and This approach enables This bargaining leads to a

several parties with situation of compromise and
agreement opposing interests to agreement.
bargain.
HEIFETZ – LEADERSHIP TO MOTIVATE
• Heifetz argues that the main role of managers is to
help people to face reality and mobilize them to
make changes where necessary.
• A true leader doesn’t necessarily have all the
answers – instead they encourage people to tackle
tough challenges themselves.
• In addition, Heifetz suggested that anyone within an
organization may have to provide some degree of
leadership in certain circumstances.
• This means that leaders may sometimes simply
emerge, rather than being formally appointed by
the organization.
• This is referred to as ‘dispersed leadership’.
 CHAPTER 19
RECRUITMENT
AND
SELECTION
 RECRUITMENT
• Recruitment involves attracting a range of
suitable candidates for a given role within the
organization.
• It is the process of contacting the labour
market (both inside and outside the
organization), communicating opportunities
and information and generating interest.
 SELECTION
• Selection processes are aimed at choosing the
most suitable candidate for the specified position.
• The aim of selection is to identify, from those
coming forward, the individuals most likely to
fulfill the requirements of the organization.
• The overall aim of the recruitment and selection
process is to obtain the quantity and quality of
employees required to fulfill the objectives of
the organization.
IMPORTANCE OF RECRUITMENT AND
SELECTION
• Employees are critical to the success of most
organizations. It is therefore vital to ensure
that the correct staff are selected, who have
the appropriate skills and fit well into the
social structure of the organization.
• If an unsuitable person is hired for a role, they
are likely to be discontent, will be unlikely to
give of their best and will be more likely to
leave, either voluntarily or involuntarily.
 CONSEQUENCES OF POOR
RECRUITMENT AND SELECTION
• High staff turnover
• The high cost of advertising for vacancies
• Management time involved in selection and training
• The expense of dismissal
• The negative effects of high staff turnover on general
morale and motivation within the organization
• Reduced business opportunities
• Reduced quality of the organization's products or
services, leading to Customer dissatisfaction.
RECRUITMENT AND SELECTION PROCESS
Recruitment Selection
AGREE VACANCY APPLICATION
FORMS

JOB ANALYSIS
INTERVIEWS

JOB DESCRIPTION
TESTING

PERSON
SPECIFICATION
REFERENCES

ATTRACT
CANDIDATES
AGREE THE VACANCY TO BE FILLED
• When an employee leaves an organization, the vacancy they
leave presents an opportunity to the business to either reassess
the requirements of the job, or to consider restructuring. The
organization could consider:
• Analyzing the role in more detail – what is its purpose? Has it
changed? This could lead to:
• Not replacing the employee – could the vacant role be handled
by existing staff through retraining, promotion or adjustment of
workloads?
• Replacing the employee with a part-time worker – alternatives to
full-time employment include home working, job-sharing or
flextime contracts.
 JOB ANALYSIS
• The process of job analysis starts with a
detailed study and description of the tasks
that make up the job.
 JOB DESCRIPTION
• Once management fully understand the role
that they wish to fill, they can prepare a job
description.
• A job description is a broad statement of the
purpose, scope duties and responsibilities of
the job.
 PURPOSE OF JOB DESCRIPTIONS
• They form the basis for advertising the role to
prospective candidates
• They can be used to help select the right
candidate for the role
• They are often used as a basis for writing the
contract of employment for the role
• They can be used as a way of setting targets
for employees, once hired.
 PERSON SPECIFICATION
• Once management have a job description,
they can attempt to define the key attributes
and qualities that the jobholder should ideally
have.
• Prospective candidates can then be compared
to this specification as part of the selection
process.
Alec Rodgers devised a seven-point plan which suggests the content of
a person specification. You can remember this using the acronym
SCIPDAG.
 Special aptitudes – what skills and abilities should the candidate
have? (i.e. manual dexterity, skill with words and numbers).
 Circumstances – does the job have any special demands (such as the
requirement to work unsociable hours).
 Interests – is the person active or social in their personal life? This
may aid their success in the job.
 Physical makeup – what is the appropriate personal appearance and
level of health required by the job?
 Disposition – what sort of nature should the ideal candidate have?
Do they need to be social, or calm in a crisis and good under
pressure?
 Attainments – does the ideal candidate need any specific
qualifications or achievements for the role?
 General intelligence – should the ideal candidate be average or
above average to be successful in the role?
 ATTRACTING CANDIDATES
• This stage involves persuading relevant candidates to apply for the
role the organization wishes to fill.
• The first thing to consider when attracting a candidate, is whether
to recruit externally or use an existing member of staff to fill the
role. This could be done via:
 Promotion of existing staff
 Secondment (temporary transfer to another department or office)
of existing staff which may, or may not, become permanent
 Closing the job down by sharing out duties and responsibilities
among existing staff
 Rotating jobs among staff, so that the vacant job is covered by
different staff periodically.
 POTENTIAL SOURCES
• It is important to know where suitable
candidates are likely to be found, in order to
make contact with them. Sources could include:
• Employment service job centres and agencies
• Private recruitment consultants
• Career advisory offices
• Universities, colleges and schools
• The general public
If the business decides to use private recruitment
consultants to source candidates, it would need to
carefully consider:
• Whether the organization has sufficient internal expertise to
find and attract relevant candidates, or whether it would
benefit from the help of an experienced external consultant
• The cost of using consultants, compared with the cost of
advertising and attracting candidates itself
• The level of expertise required of potential employees and
therefore the appropriate knowledge required of the
consultants
• Whether there is sufficient time to select a consultant and
teach them about the vacancy and the type of person that is
required.
 ADVERTISING
The objective of recruitment advertising is to attract the
interest of suitable candidates in the vacancy that the
organization wishes to fill. The advertisement itself should:
• Be concise, but comprehensive enough to be an accurate
description of the job, its requirements and rewards
• Be attractive to as many people as possible
• Be positive and honest about the organization, to avoid
dissatisfaction when the candidate actually comes into
contact with the organization
• Include information on how to apply for the role, including
any deadlines.
 THE MEDIUM CHOSEN WILL TYPICALLY DEPEND ON
SEVERAL FACTORS, INCLUDING:

• The type of organization – a corner shop will clearly advertise

for new staff members in very different places to a large
multinational company!
• The type of job being advertised – more senior positions may
be advertised nationally, while junior positions may only warrant
local advertising
• The readership and circulation of the medium – how many
people it will reach
• The cost of the advertising – national newspapers will usually
cost more than local newspapers or radio advertisements
• The frequency and duration of the advertisements – the longer
the planned advertising will last, the more the organization will
need to consider the cost of medium chosen.
 APPLICATION FORMS
• The first, and often easiest, way of filtering out
less suitable applicants is through the use of
application forms. These will provide the
organization with relevant information about the
candidates. This will allow the organization to:
• Eliminate unsatisfactory applicants
• Save interview time
• Form initial personnel records for successful
candidates
 SELECTION INTERVIEWS
• Once the least appropriate candidates have been
rejected using their application forms, the
remaining applicants can be interviewed.
The purpose of an interview is to:
 find the best person for the job
 ensure that the candidate understands what the
job involves and what the career prospects are
 make the candidate feel that they have been
treated fairly in the selection process.
 SELECTION TESTING
• Testing can be undertaken either before or after the
interview has taken place.
The two basic types of test are:
• Proficiency and attainment – these are used to
examine the applicant’s competences, skills and
abilities in areas that will be required in the job they
have applied for.
• Psychometric – these are more general and test
psychological factors, such as aptitude intelligence and
personality.
 ASSESSMENT CENTRES
(GROUP ASSESSMENTS)
• Assessment centres involve candidates being
observed and evaluated by trained assessors
as they are given a selection of pre-
programmed exercises or trials.
 SELF
APPRAISAL
PEER ROLE
RATING PLAY

SPEECHES GAMES

ASSESSMENT
CENTRES

GROUP WRITTEN
DISCUSSION TESTS

PRESENTATION SIMULATION
QUESTIO
NNAIRE
LIMITATIONS OF TESTING
Testing – whether in groups or as individuals – has several
drawbacks, including:
 There is often no direct relationship between ability in
the test and ability in the job itself.
 They are subject to coaching and practice efforts.
 Interpretation of test results is often complex and
requires training and experience.
 Many tests can be highly subjective (especially
personality tests).
 It may be difficult to exclude bias from the tests.
 REFERENCES
• The purpose of references is to confirm facts about the
candidate and increase the degree of confidence felt about
information they provided during the selection process.
References should contain two types of information:
 Straightforward, factual information, confirming the nature
of the applicant’s previous job, period of employment, pay
and circumstances of leaving.
 Opinions about the applicant’s personality and other
attributes, though these are open to bias and should
therefore be treated with caution.
 RESPONSIBILITY FOR RECRUITMENT AND
SELECTION

SENIOR
MANAGERS/DIRECTORS

HR ROLES AND LINE

DEPARTMENT RESPONSIBILITIES MANAGERS

RECRUITMENT
CONSULTANTS
 EQUAL OPPORTUNITIES
• Equal opportunities refers to the belief that there should
be an equal chance for all workers to apply and be selected
for jobs, to be trained and promoted in employment and to
have employment terminated fairly.
• The two main principles of equal opportunities are:
 Employers should only discriminate according to ability,
experience and potential.
 All employment decisions should be based solely on a
person’s ability to do the job in question, with no
consideration being taken of a person’s gender, age,
religion, racial origin, sexuality, disability or marital status
(amongst others).
TYPES OF DISCRIMINATION
• Direct discrimination
• Indirect discrimination
• Victimization
Positive discrimination. This refers to the
practice of giving preference to protected
groups, such as ethnic minorities, older
workers or women. This is also not permitted
under most legislation.
 THE LEGAL POSITION
Employment legislation varies significantly from
country to country, but typically prevents
discrimination in various areas, including:
• Selection of candidates to interview or employ
• Provision of promotion, training or other
benefits (including pay)
• Working conditions
• Dismissal, or other disadvantages.
 DIVERSITY
• Diversity and equal opportunities are related
ideas, though they are distinct from each
other. Diversity involves valuing all
individuals for their differences and variety.
 DIFFERENCES BETWEEN
DIVERSITY AND EQUAL OPPORTUNITIES
DIVERSITY EQUAL OPPORTUNITIES
• Voluntary • Government initiated
• Productivity driven • Legally driven
• Qualitative • Quantitative
• Opportunity-focused • Problem-focused
• Inclusive • Targeted
• Proactive. • Reactive.
CHAPTER 20
INDIVIDUAL,
GROUP AND
TEAM
BEHAVIOUR
CHARACTERISTICS OF INDIVIDUAL BEHAVIOUR
• Motivation level – this relates to people’s desire to perform tasks
and put effort into their job. It can be affected by many factors,
including reward levels, recognition, social interactions at work
and working conditions.
• Perception – individuals select, organize and interpret the stimuli
they receive. Messages from managers are always subject to
distortion, with the subordinate selecting parts of the message
and interpreting it in light of their own experiences, wants and
needs.
• Attitudes – these are persistent feelings and behavioural
tendencies directed towards specific people, groups, ideas or
objects.
• Personality – this is the combination of emotional, attitudinal and
behavioural responses of an individual.
 ROLE THEORY
• This model suggests that the behaviour of
individuals depends on other people’s
expectations of them and how they are
supposed to behave in a given situation.
• A role is the pattern of behaviour expected by
someone who occupies a particular position.
 KEY TERMS
• Role behaviour – certain types of behaviour can be associated
with a particular role in an organization. For instance, a
member of staff who expects to be promoted shortly may
begin acting as if they have already been put in charge.
• Role set – this describes the people who respond to an
individual in a particular role. For example, a clerk and junior
barristers would form part of a senior barrister’s role set.
• Role signs – these are visible indications of a role. Styles of
dress and uniforms are typical examples of role signs. For
example, in the military, different uniforms and styles of
address indicate status and position in the hierarchy.
Role theory also identifies several problems that these
expected patterns of behaviour may cause.
• Role ambiguity – this arises when an individual is unsure of
what role they are to play, or others are unclear of that
person’s role and so hold back co-operation. This can arise,
for example, when a new member joins an established group.
• Role conflict – this occurs when individuals find a clash
between different roles they have adopted. If an accountant
uncovers a fraud perpetrated by one of their friends, their
roles as a professional and a friend may conflict with each
other.
• Role incompatibility – this occurs when individuals
experience expectations from outside groups about their role
that are different to their own role expectations.
 GROUPS
A group is any collection of individuals who
perceive themselves to be a group.
• Characteristics
1. Sense of identity
2. Loyalty to the group
3. Purpose and leadership
 TYPES OF
GROUPS

FORMAL INFORMAL
 GROUP BEHAVIOUR
• Assertive – this is direct, honest and
professional communication. It often involves
insisting on your rights without violating the
rights of others.
• Aggressive – this violates another person’s
rights and can often lead to conflict.
• Passive behaviour – is giving into another
person in the belief that their rights are more
important than yours.
THE CONTRIBUTION OF INDIVIDUALS AND TEAMS
TO ORGANISATIONAL SUCCESS
• Mixture of skills and abilities
• Synergy
• Increased flexibility
• Better control
• Increased motivation
• Improved communication
• Healthy competition within the organisation
PROBLEMS IN GROUP WORK
• Decision-making can be slow
• Tend to produce decisions that are
compromises
• Group pressure to conform
• Lack of individual responsibility
• Too much social interaction
• Competition and conflict
 TEAMS
• A team is more than a group. A team can be described as any
group of people who must significantly relate with each other
in order to accomplish shared objectives.
Teams usually :
• Share a common goal
• Enjoy working together
• Are committed to achieving certain goals
• Are made up of diverse individuals
• Are loyal to their team and its project
• Have a sense of team spirit.
A team is therefore a formal group. It will have its own culture,
leader and will be geared towards achieving a particular objective
 BELBIN’S TEAM ROLES THEORY
Leader (Coordinator) Pulls group together to work towards a
shared goal
Shaper Promotes activity, dominant, extrovert

Plant Thoughtful and thought provoking, ideas

Belbin person
suggested
that, in Monitor-evaluator Criticizes others ideas, brings the team
order for down to earth
a team to
operate Implementer(company Administrator, organizer, Turns ideas into
effectively worker) practical solutions
, it
needed a Resource-investigator Extrovert, networker, looks for alternative
balance of solutions
nine
different Team worker Concerned with relationships within the
roles.
group
Completer-finisher The progress chaser

Specialist (expert) Provides knowledge and/or skills required

by the project
TUCKMAN’S STAGES OF GROUP
DEVELOPMENT Complacency starts
DORMING:

within the team.

The
Co-
conflict operation
stage begins The team
The team where The team
initially
and roles begins to be completes its
roles and are
comes processe agreed.
productive. objectives and
together. s are disbands.
challenge
d.
 TEAM EFFECTIVENESS
• Peters and Waterman define the five key aspects of successful teams as:
1. The team should be relatively small – inevitably each member will want
to represent the interests of their section/department, meaning that
larger teams will be slower and harder to manage.
2. The team should have a limited duration, existing only to achieve a
particular task.
3. Membership should be voluntary – a team member who does not want
to be part of the group is unlikely to be a fully participating member.
4. Communication should be informal and unstructured – there should be
little documentation and no status barriers.
5. The team should be action-oriented, meaning that the team should
create a plan for action and decide what needs doing to accomplish their
goals.
 BUILDING THE TEAM AND IMPROVING
EFFECTIVENESS
• Improved communication, such as through the
use of problem solving exercises which force all
team members to discuss a problem the group is
facing.
• Building trust between team members, which will
help the individual members work as a group.
• Social interaction between the individuals in the
team can help to reduce conflict and increase the
cohesion of the group.
MEASURING TEAM EFFECTIVENESS
• The degree to which the team achieved its
stated objectives and the quality of its output.
• Team member satisfaction – this could be
measured, amongst other things, by using
labor turnover or absenteeism rates.
• Efficiency – the resources used to achieve
team objectives.
 CHAPTER 21
MOTIVATING
INDIVIDUALS AND
GROUPS
 MOTIVATION
• Motivation is the process that initiates, guides,
and maintains goal-oriented behaviors. It is what
causes you to act.
• Motivation is the reason for people's actions,
willingness and goals. Motivation is derived from
the word motive which is defined as a need that
requires satisfaction. These needs could be wants
or desires that are acquired through influence of
culture, society, lifestyle, etc. or generally innate.
 MOTIVATION V/S SATISFACTION
• Motivation looks at how hard someone is
willing to work, while satisfaction looks at
whether they are content with their existing
job and not looking for another.
 MOTIVATION
THEORIES

CONTENT PROCESS
THEORIES THEORIES

MASLOW’S
HERZBERG’S MC GREGOR’S VROOM’S
NEED
HYGINE THEORY X & EXPECTANCY
HIERARCHY
THEORY THEORY Y THEORY
THEORY
MASLOW’S NEED
HIERARCHY
THEORY
 JOB DESIGN
• Job enrichment (vertical)
• Job enlargement (horizontal)
• Job rotation (This is the planned rotation of
staff between jobs to alleviate monotony and
provide a fresh, challenging job.)
 VROOM'S EXPECTANCY THEORY
• Vroom's expectancy theory assumes that behavior results from
conscious choices among alternatives whose purpose it is to
maximize pleasure and minimize pain. Victor Vroom suggested that
the relationship between people's behavior at work and their goals
was not as simple as was first imagined by other scientists. Vroom
realized that an employee's performance is based on individuals
factors such as personality, skills, knowledge, experience and
abilities. The theory suggests that although individuals may have
different sets of goals, they can be motivated if they believe that:
• There is a positive correlation between efforts and performance,
Favorable performance will result in a desirable reward,
• The reward will satisfy an important need,
• The desire to satisfy the need is strong enough to make the effort
worthwhile.
 The theory is based upon the following
beliefs:
Valence
• Valence refers to the emotional orientations people hold with respect to outcomes
[rewards]. The depth of the want of an employee for extrinsic [money, promotion,
time-off, benefits] or intrinsic [satisfaction] rewards). Management must discover
what employees value.
Expectancy
• Employees have different expectations and levels of confidence about what they
are capable of doing. Management must discover what resources, training, or
supervision employees need.
Instrumentality
• The perception of employees as to whether they will actually get what they desire
even if it has been promised by a manager. Management must ensure that
promises of rewards are fulfilled and that employees are aware of that.
• Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and
Valence interact psychologically to create a motivational force such that the
employee acts in ways that bring pleasure and avoid pain.
 VROOM’S EXPECTENCY THEORY
• Force = Valence × Expectancy ×
Instrumentality
Where,
• Force = the strength of a person’s motivation
• Valence = the strength of an individual’s
preference for an outcome
• Expectancy = the probability of success
According to Vroom’s model, it would depend on two
things:
• Valence – this looks at your preference for the
outcome. If the prize is only a small amount of money,
you may be tempted not to bother. A large prize may
increase your motivation to try and win.
• Expectancy – this looks at your perception of your
probability of success. If the questions are all on a topic
that you have little knowledge of, you will be much less
likely to appear on the show. If the questions are on a
topic you are familiar with, you will perceive your
chances of winning as higher, making you more
motivated to appear on the show.
FORCE =
REWARDS AND INCENTIVES
• Intrinsic rewards – these arise from the performance
of the job itself. Intrinsic rewards include the feeling
of satisfaction that comes from doing a job well,
being allowed to make higher level decisions or
being interested in your job.
• Extrinsic rewards – these are separate from (or
external to) the job itself and are dependent on the
decisions of others (i.e. the workers have no control
over these rewards). Pay, working conditions and
benefits are all examples of extrinsic rewards.
 TYPES OF INCENTIVE SCHEME
1. Performance related pay (PRP)
• Piecework – reward related to the pace of work or amount of effort. The
faster the employee works, the higher the output and the greater the
reward.
• Management by objectives (MBO) – key results are identified for which
rewards will be paid on top of salary.
• Points system – this is an extension to MBO reward systems, where a range
of rewards is available based on a point system derived from the scale of
improvement made, such as the amount of cost reduction achieved.
• Commission – paid on the performance of an individual and typically paid
to salaried staff in sales functions, where the commission earned is a
proportion of total sales made.
2. Bonus schemes
3. Profit sharing
 CHAPTER 22
LEARNING AND
TRAINING AT
WORK
 LEARNING
• Learning can be defined as ‘the process of acquiring knowledge
through experience, which leads to changes in behaviour’.
• There are three types of learning:
• Formal – this is undertaken deliberately and occurs when
individuals ‘learn’ and ‘study’. It is often classroom-based and
highly structured.
• Informal – this is also usually deliberate, but is not highly
structured. Examples include self-directed learning, networking,
coaching and mentoring.
• Incidental – this is a by-product of another activity. For example,
attending a formal classroom course may also help a student to
learn how to keep their attention focused for a long period.
 IMPORTANCE OF LEARNING
• It can lead to increased competence, understanding, self-
esteem and morale – leading to improved productivity.
• It may improve the level of creativity and innovation of
workers in the organization, giving an advantage over
competitors.
• People who enjoy learning are more likely to be flexible in
times of constant change.
• If workers are not given learning opportunities, there is a
risk that they will feel undervalued and will lose
motivation.
 LEARNING PROCESS
• It is important to understand how people
learn new things, as this will allow an
organization to create suitable training
programmes for its employees.
• Two theories that help with this are those
proposed by Kolb and Honey & Mumford
 KOLB: EXPERIENTIAL LEARNING CYCLE
• Kolb suggested that learning is a series of steps based on everyday
experience. He argued that classroom learning is false and that actual
learning comes from actually undertaking tasks and learning from them.
• He identified 4 stages:
• Concrete experience – you may decide to start using the new computer
system, without any training or guidance.
• Reflective observation – having failed to accomplish everything you
wanted, you spend some time identifying the problems you had and
which tasks you were unable to perform successfully on the new system.
• Abstract conceptualization – having identified the problem areas, you go
to the instruction manual and look up how to undertake these tasks.
• Active experimentation – once you have read the instructions relating to
the areas you were uncertain about, you then go back to the computer
system and try them again to see if you are now able to perform all the
tasks you needed to accomplish.
• Kolb also identifies four different learning styles adopted by
individual learners (as shown on the diagram), based on where they
start on the learning cycle. Each style is a combination of two
elements from the cycle.
• Divergent – feeling and watching – these people prefer to watch
rather than do, reflecting on what they are seeing from various angles
before trying it for themselves.
• Assimilative – watching and thinking – these individuals take a
concise, logical approach. They prefer good, clear explanations rather
than undertaking practical examples. They then need time to think
through what they have seen.
• Convergent – thinking and doing – prefer to apply ideas and enjoy
testing ideas out in practice to see if they really work.
• Accommodative – doing and feeling – strong preference for concrete
experiences and active experimentation (hands-on approach).
KOLB: EXPERIENTIAL LEARNING CYCLE
 Honey and Mumford
• Honey and Mumford built on Kolb’s earlier
work and came up with four alternative
classifications of learning styles. They argued
people learn more effectively if they are aware
of their learning style preferences.
HONEY AND MUMFORD: LEARNING STYLES
• Dynamic learners – activists – are primarily interested in self discovery; they ask ‘What
if?’ questions. In terms of learning they need a variety of new and challenging activities
where they can have a lot of the limelight – business games, competitive tasks,
roleplaying exercises. This learner wants to touch everything. Problem solving, small
group discussions or games, peer feedback, and self directed work assignments all help
this learner, who likes to see everything and determine their own criteria for the
relevance of the materials.
• Imaginative learners – reflectors – are primarily interested in personal meaning. They
question, Why? To instruct imaginative learners, teachers need to motivate and provide
expert interpretation. Their preferred method of teaching is simulation or discussion.
They need time to think over, assimilate and prepare for activities, or review what has
happened and reach decisions without pressures and tight deadlines. Lectures are
helpful to this learner. They look for an instructor who is both a taskmaster and a guide.
• Analytic learners – theorists – are primarily interested in facts as they lead to
conceptual understanding. They question, What? Teachers need to give them the facts
that deepen understanding. These learners need opportunities to question, probe and
explore methodically the assumptions and logic, and the interrelationships between
ideas and events, using case studies, theoretical readings and reflective thinking
exercises.
• Common sense learners – pragmatists – are primarily interested in how things work.
To instruct this type of learner teachers need to act as coach. Students need to practise
techniques with coaching/feedback from a credible expert, and they must see a link
between the subject matter and a problem or opportunity on the job. Group work and
peer feedback often leads to success.
TRAINING, DEVELOPMENT AND EDUCATION
• Education is defined as ‘the activities which aim at
developing the knowledge skills, moral values and
understanding required in all aspects of life rather than a
knowledge skill related to only a limited field of activity’.
• Training is ‘the planned and systematic modification of
behaviour through learning events, programmes and
instruction which enable individuals to achieve the level
of knowledge, skills and competence to carry out their
work effectively’.
• Development is ‘the growth or realization of a person’s
ability and potential through conscious or unconscious
learning and educational experiences’.
 PROCESS OF TRAINING

Evaluation
Identification Setting Program and
of training objectives for design & validation of
needs training delivery the training
programme
THE ROLE OF MANAGEMENT IN THE LEARNING
PROCESS
1. THE HR DEPARTMENT
• Create frameworks for job appraisals and the
analysis of learning gaps
• Identify when and if training is needed within the
organization
• Design career pathways for employees (such as the
creation of different employee grades along with
the responsibilities that go along with each grade)
• Informing employees about learning, training
development opportunities that are available to
them.
 2. LINE MANAGERS
• Identification of learning and training needs of
the group or department they are responsible
for
• Monitoring the abilities and knowledge levels
of individual workers within their team
• Organizing specific training programmes
• Offering informal training, such as coaching
and mentoring to employees as needed.
 CHAPTER 23
REVIEW AND
APPRAISAL OF
INDIVIDUAL
PERFORMANCE
 PERFORMANCE ASSESSMENT
• Performance assessment is ‘the regular and
systematic review of performance and the
assessment of potential with the aim of
producing action programmes to develop both
work and individuals’.
 ASSESSMENT CRITERIA MAY INCLUDE THE
FOLLOWING:
1. Volume of work produced
• Within time period
• Evidence of work planning
• Personal time management
• Effectiveness of work under pressure
2. Knowledge of work
• Gained through experience
• Gained through training courses
• Gained prior to employment
3. Quality of work
• Level of analytical ability
• Level of technical knowledge
• Accuracy
• Judgment exercised
• Cost effectiveness
4. Management skills
• Communication skills
• Motivation skills
• Training and development skills
• Delegation skills
5. Personal skills
• Decision-making capabilities
• Flexibility
• Adaptability
• Assertiveness
• Team involvement
• Motivation
PROCESS OF PERFORMANCE ASSESSMENT

Set Monito Action

Review
targets r plan
 PERFORMANCE APPRAISAL
• Appraisal is normally a formal process by
which the progress, performance, results and
sometimes personality of an employee are
reviewed and assessed by his or her
immediate superior.
 PROCESS OF PERFORMANCE
APPRAISAL

Follow
Identify the Production of
Appraisal up/conclusio
criteria for an appraisal
Interview n and action
assessment report
plan
BENEFITS OF EFFECTIVE APPRAISAL
For Employer
• It provides a formal system for assessing the performance and
potential of employees, with a view to identifying candidates for
promotion.
• It provides a system for identifying ways of improving the
competence of employees, in order to raise the general level of
efficiency and effectiveness of the work force.
• It is a valuable system for human resource planning, and ensuring
that employees are ready for promotion, to fill management job
vacancies that arise.
• If it is well managed, communications can be improved between
managers and staff and so improve working relationships.
For Employee
• The employee gets feedback about performance
at work, and an assessment of competence.
• A formal appraisal system offers the employee
an opportunity to discuss future prospects and
ambitions.
• An appraisal interview may be used as a basis
for considering pay and rewards.
• Appraisal can be used to identify and agree
measures for further training and development,
to improve the employee’s competence.
BARRIERS TO EFFECTIVE STAFF APPRAISAL

Lockett suggested that there are six main

barriers to effective appraisals.
• Appraisal as confrontation
• Appraisal as judgment
• Appraisal as chat
• Appraisal as bureaucracy
• Appraisal as annual event
• Appraisal as unfinished business
OVERCOMING THE BARRIERS TO EFFECTIVE
APPRAISALS
• Make sure there is a system of follow-up and feedback
relating to the appraisal
• Agreements between the employee and manager
relating to further training and development should be
made part of the official record of the appraisal interview
• The agreed action plan should be reported to senior
management and/or the HR department
• The manager should ensure that any training and
development agreed on is arranged and this should be
discussed at the next appraisal meeting.
BEST PRACTICE FOR APPRAISALS 4F’S
1. Firm – managers should be willing to discuss
negative as well as favourable aspects of
performance.
2. Factual – subjective aspects of performance
should be avoided.
3. Fair – all employees should be treated the same.
4. Frequent – appraisals should be held on a
regular basis rather than just when a problem
arises.
 EVALUATING THE EFFECTIVENESS OF
PERFORMANCE APPRAISAL
• Calculating the costs and benefits of the appraisal
process
• Monitoring performance results to see if there have
been improvements
• Checking the uptake of training and development
opportunities
• Asking appraisers and appraises for their opinions on
the process
• Review of other indicators, such as staff turnover – a
figure that is too high or too low could indicate a
problem in the organization.
 STAFF TURNOVER
• Discharge – as a result of an employee’s
unsuitability, disciplinary action or
redundancy.
• Unavoidable – because of marriage, moving
house, illness or death.
• Avoidable – due to pay, working conditions,
relationships with work colleagues.