chap 11
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MOTIVATION THROUGH MBO AND PERFORMANCE APPRAISAL
SATURDAY, December 26, 09
Motivation
Motivation is getting others to do something because they want to do it.
The process which encourages and guides behavior.
The act or process of stimulating to action, providing an incentive or motive, especially for an act.
Motivation is the internal drive to accomplish a particular goal. In a work setting, motivation is what makes people want to work.
Motivation: Goal directed behavior
IMPORTANT POINTS
Presentations on next class Submit all compensatory assignments Check the quiz sheet and discuss if
there are any issues No marks to the student, who does not
present the proof and does not deliver
Course Outline
Sr. |Chap|Final Exam Chapter HeadingNo.|No. |Q. No.1. 1 1 An Introduction to Motivational Concept (260909)2. 2 2 Motivation in the History (101009)3. 3 3 Darwinian Theory of Evolution and Motivation
(171009)4. 4 4 Instinct and Motivation (311009)5. 5 5 The Effect of Frustration, Conflict and Stress (051109
& 071109)6. 6 6 Need Theories of Motivation (211109)7. 7 7 Reinforcement/Incentive Theories (051209)8. 8 8 Expectancy Theories of Motivation (171209)9. 9 9 Motivation, Satisfaction, and Performance (191209)10. 10 10 Motivation and Monetary Rewards (211209)11. 11 11 Motivation Thru MBO & Performance Appraisal
(261209)Marks Distribution:
Number of Quizzes attended + Midterm + Final assignment
INTRODUCTION TO MBO Motivation is a goal directed behavior
Goal setting can serve as a force for releasing human motivation
The employee’s basic needs, the internal motivation i.e. their own motives should be kept into account before the introduction of MBO in an organization
MBO says employees own the tasks when they participate in the goal setting process
INTRODUCTION TO MBO MBO: An approach for improving organizational
performance by aligning organizational, department, and personal goals and tracking achievement of those goals
MBO: A managerial process by which the supervisor and his subordinates jointly assess the accomplishment of their respective task goals
Or A special form of job enrichment which heavily
emphasizes the goal setting process, it operationalizes the major concepts of job enrichment i.e participation, goal setting, autonomy and group management. It also contains a result oriented performance appraisal system
BENEFITS OF MBO The core of management theories is found in essence
in MBO functions such as it involves Planning, organizing, leading and controlling
In these theories goals are set by management MBO involves employee participation in goal setting. Goal-based management began in large corporations
(e.g. IBM, GM, NCR) in the 1920’s Many behavioral scientists such as (Cock and french
48, Follett 42, Mayo 45) emphasized on gaining their commitment to organizational goals
MBO first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'.
BENEFITS OF MBO Drucker suggested MBO as an integrative management tool He presented the MBO philosophy as a method which
integrates various sub units of an organization for achievement of the corporate objectives
MBO is a managerial tool which has sub effects: It’s a good planning and controlling tool It’s a method of developing objective performance criteria It’s a motivational and communicational tool It helps increasing productivity
In 1950s, Mc Gregor proposed a result oriented performance appraisal system
BENEFITS OF MBO In USA, GE, Purex Corporation, Texas instruments
applied MBO in performance appraisal and reported positive results
1n 1960s and early 70s MBO was emphasized as a managerial tool for increasing employee motivation
The existing MBO process involves the establishment and execution of task goals , key performance responsibilities, action plans and performance reviews
MBO LEADS TO BETTER RESOURCE UTILIZATION
Organizational resources are money, manpower, materials, and time
MBO forces good planning and minimizes the induction of crash programs, hence saves money
MBO helps utilization of resources towards the prior and critical tasks to achieve the best possible results
MBO helps employees to review their contributions towards organization’s goals and hence force them to modify those which are non contributory
Employees are self motivated to achieve their goals, they take ownership of. Hence they don’t need any close supervision
NEXT CLASS
HOW GOAL SETTING IMPROVES MOTIVATION
1. Goal specificity and its effects2. Goal difficulty3. Participative Goal Setting4. Performance Feedback
IMPLEMENTING AND MANAGING MBO SYSTEM
1. Arrange goals in Means-Ends sequence2. Identify Key Responsibilities3. Assign priorities to Key responsibilities4. Define the expected outcomes of key responsibilities5. Assign specific tasks to Employees6. Define Authority and Responsibility relationships7. Develop Time Schedules8. Perform Individual Tasks and integrate them into
overall goals9. Undertake periodic performance process reviews10. Conduct Annual Performance review session
A RESULT ORIENTED PERFORMANCE APPRAISAL SYSTEM
PROBLEM OF MBO AND SOLUTIONS
CONTINGENCY APPROACH TO MBO