ENGINEERING MANAGEMENT now proceed to describe more thoroughly the 3.

Opportunity
remaining portion of his job, which management.
What is Engineering Management?  Managerial ability refers to the capacity of an engineer
 Management may be defined as the creative problem manager to achieve organizational objectives
 Engineering management refers to the activity
solving-process of planning, organizing, leading, and effectively and efficiently.
combining “technical knowledge with the ability to
controlling an organization’s resources to achieve its
organize and coordinate worker power, materials,  Effectiveness, according to Higgins, refers to a
mission and objectives.
machinery, and money. description of “whether objectives are accomplished”,
Requirements for the Engineer Manager’s Job while efficiency is a description of the relative amount
 When the engineer is assigned to supervise the work
of resources used in obtaining effectiveness.
of even a few people, he is already engaged in the first  Depending on the type of products or services a firm
phase of engineering management. His main produces, the engineer must have the following Motivation to Manage
responsibility is to lead his group into producing a qualifications:
 Many people have desire to work and finish specific
certain output consistent with the required
1. A bachelor’s degree in engineering from a tasks assigned by superiors, but not many are
specifications.
reputable school; In some cases, a master’s motivated to manage other people so that they may
 The top position an engineer manager may hope to degree in engineering or business contribute to the realization of the organization’s
occupy is the general managership or presidency of management is required; objectives.
any firm, large or small. As he scales the management
2. A few years’ experience in a pure engineering  A management researcher, John B. Miner, developed a
ladder, he finds that the higher he goes up, the less
job; psychometric instrument to measure objectively an
technical activities he performs the more management
individual’s motivation to manage. The test is
tasks he accepts. In this case, it is proper that the 3. Training in supervision;
anchored to the following dimensions:
management functions taught in pure management
courses be well understood by the engineer manager. 4. Special training in engineering management.
1. Favorable attitude toward those in positions of
The Process of Management  These qualifications will be great help to engineer authority, such as superiors.
manager in the performance of the various 2. Desire to engage in games or sports competition
 Management is a process consisting of planning, management functions. with peers.
organizing, directing (or leading), and controlling. 3. Desire to engage in occupational or work-related
How one may become a Successful Engineer Manager competition with peers.
 Explained in a simple manner, management must seek
 Successful engineer managers do not happen as a 4. Desire to assert oneself and take charge.
to find out the objectives of the organization, think of
matter of chance, although luck is a contributory 5. Desire to exercise power and authority over
ways on how to achieve them, decide on the ways to
factor. It is very important for the engineer manager to others.
be adapted and the material resources to be used,
know the various factors leading to successful 6. Desire to behave in a distinct way, which includes
determine the human requirements of the total job,
management. standing out from the crowd.
assign specific tasks to specific persons, motivate
7. Sense of responsibility in carrying out the routine
them, and provide means to make sure that the  Kreitner indicates at least three general preconditions duties associated with managerial work.
activities are in the right direction. for achieving lasting success as a manager. They are as
follows:  High scores in the foregoing dimensions are associated
Management Defined
with high motivation to manage.
 Since the engineer manager is presumed to be 1. Ability
technically competent in his specialization, one may 2. Motivation to manage
Opportunity DECISION MAKING 7. Implement decision

 Successful managers become possible only if those Decision Making as a Management Responsibility 8. Evaluate and adapt decision results
having the ability and motivation are given the
 Decisions must be made at various levels in the work Approaches in solving problems
opportunity to manage. The opportunity for successful
place.
management has two requirements:  In decision making, the engineer manager is faced with
 Decision making is responsibility of the engineer problems which may either be simple or complex. To
1. Obtaining a suitable managerial job, and
manager. It is understandable for manager to make provide him with some guide, he must be familiar with
2. Finding a supportive climate once on the job. wrong decision at times. The wise manager will correct the following approaches:
them as soon as they are identified.
 Newspaper advertisements abound with needs for 1. Qualitative evaluation
engineer managers. It is a little difficult to determine if  The higher the management level, the bigger and the
2. Quantitative evaluation
the firms requiring their services provide a supportive more complicated decision making becomes.
climate for effective and efficient management. A  Qualitative Evaluation- this term refers to evaluation of
What manager do?
supportive climate is characterized by the recognition alternatives using intuition and subjective judgement.
of managerial talent through financial and nonfinancial  Tasked to provide leadership in the quest for the Stevenson states that managers tend to use the
rewards. attainment of the organization’s objectives. qualitative approach when:
Summary  Decision making skills will be very crucial to his success 1. The problem is fairly simple.
as a professional.
 Engineers are known for their great contributions to 2. The problem is familiar.
the development of the world’s civilization. There are  Good decisions will provide the right environment for
many years where their presence is necessary like 3. The cost involved are not great/low cost.
continuous growth and success.
research, design and development, testing, 4. Immediate decisions are needed.
manufacturing, construction sales, consulting, What is decision making?
government, teaching, and management.  Quantitative Evaluation- this term refers to the
 Decision making the process of identifying and
evaluation of alternatives using any technique in a
 Engineers may be found contributing their share in the choosing alternative courses of action in a manner
group classified as rational and analytical.
various levels of organization. appropriate to the demands of the situation.
 The types of quantitative techniques which may be
 Engineering activities need to be managed and Decision making process
useful in decision making are as follows:
engineers are sometimes placed in positions where  Rational decision making, according to David H. Holt, is
they have to learn management skills. 1. Inventory models
a process involving the following steps:
 Management is concerned with planning, organizing, 2. Queuing theory
1. Diagnose problem
leading, and controlling an organization’s resources to 3. Network models
achieve its mission and objectives. 2. Analyze environment
4. Forecasting
 There are certain qualifications requires of the 3. Articulate problem or opportunity
engineer manager. 5. Regression analysis
4. Develop viable alternatives
 Once may become a successful engineer manager if 6. Simulation
5. Evaluate alternatives
the preconditions of ability, motivation to manage, and
7. Linear programming
opportunity to mange are met. 6. Make a choice
 8. Sampling theory complex projects by employing three time  Linear programming is very useful as a decision making
estimates for each activity. tool when supply and demand limitations at plants,
9. Statistical decision theory
warehouse, or market areas are constraints upon the
2. The Critical Path Method (CPM) - this is a
Inventory models system.
network technique using only one time factor
 Consist of several types all designed to help the per activity that enables engineer managers to Sampling Theory
engineer manager make decisions regarding inventory. schedule, monitor, and control large and
 Quantitative technique where samples of populations
They are as follows: complex projects.
are statically determined to be used for a number of
1. Economic order quantity model - calculate the Forecasting processes, such as quality control and marketing
number of items that should be ordered at one research.
 Forecasting may be defined as “the collection of past
time to minimize the total yearly cost.
and current information to make predictions about the Statistical Decision Theory
2. Production order quantity model- economic future”.
 It refers to the “rational way to conceptualize, analyze,
order quantity technique applied to
Regression analysis and solve problems in situations involving limited, or
production orders.
partial information about the decision environment.”
 The regression model is a forecasting method that
3. Back order inventory model- this is an
examines the association between two or more  What has not been included in the discussion on the
inventory model used for planned shortages.
variables. evaluation of alternatives, but is very important, is
4. Quantity discount model- minimize the total subjecting the alternatives to Bayesian analysis.
 It may be simple or multiple depending on the number
cost when quantity discount are offered by
of independent variables present. When one  The purpose of Bayesian analysis is to revise and
suppliers.
independent variable is involved, it is called simple update the initial assessments of the event
Queuing theory regression; when two or more independent variables probabilities generated by the alternative solutions.
are involved, it is called multiple regression. The use of probabilistic decision rule is called the Bayes
 Determine the number of service units that will criterion.
minimize both customer waiting time and cost of Simulation
service.  Bayes criterion selects the decision alternative having
 Simulation is a model constructed to represent reality,
the maximum expected payoff, or the minimum
 The queuing theory applied to companies where one which conclusions about real- life problems can be
expected loss if he is working with a loss table.
waiting lines are a common situation. used. It is a highly sophisticated tool by means of which
the decision maker develops mathematical model of
Network models the system under consideration.
PLANNING TECHNICAL ACTIVITIES
 These are models where large complex tasks are  Simulation does not guarantee an optimum solution,
broken into smaller segments that can be managed  Nature of Planning
but it can evaluate the alternatives fed into the process
independently. by the decision maker.  A Plan, which is the output of planning, provides a
 The two most prominent network models are: Linear Programming
methodical way of achieving desired results. In the
implementation of activities, the plan serves as a
1. The Program Evaluation Review Technique  It is quantitative technique that is used to produce an useful guide.
(PERT)- enables engineer managers to optimum solution within the bounds imposed by
schedule, monitor, and control large and  PLANNING, according to Nickels and others, refers to
constraints upon the decision.
“the management function that involves anticipating
 future trends and determining the best strategies and  Under intermediate planning, the goals of a subunit Developing strategies or tactics to achieve goals
tactics to achieve organizational objectives.” are determined and a plan is prepared to provide a
 After determining the goals, the next task is to devise
guide to the realization of the goals. The intermediate
 Aldag and Stearns, on the other hand, defined planning some means to realize them. The ways to realize the
plan is designed to support the strategic plan.
as “the selection and sequential ordering of tasks goals are called strategies and these will be the
required to achieve an organizational goal.” Types of Planning concern of top management. The middle and lower
 The definition of Cole and Hamilton provide a better MANAGEMENT LEVEL PLANNING HORIZON management will adapt their own tactics to implement
guide on how to effectively perform this vital activity. their plans.
Strategic planning
Planning, according to them is “deciding what will be Top Management
CEO, Presidents, (One to two years)  A strategy may be defined as “a course of action aimed
Vice-Presidents, Gen.
done, who will do it, where, when and how it will be Manager, Division at ensuring that the organization will achieve its
done, and the standards to which it will be done.” heads objectives.”
 For our purpose, it will suffice to define planning as Intermediate planning  A tactic is a short-term action taken by management to
Functional Managers, (Six months to two
selecting the best course of action so that the desired Middle Management adjust to negative internal or external influences.
Product Line Managers, years)
result may be achieved. It must be stressed that the Department Heads
Determining Resources Needed
desired result takes first priority and the course of Operational planning
Unit Managers
(one week to one
action chosen is the means to realize the goal. Lower Management First Line Supervisors
year)
 The quality and quantity of resources needed must be
correctly determined. Too much resources in terms of
Planning At Various Management Levels
Operational Planning either quality or quantity will be wasteful. Too little will
 Planning activities undertaken at various levels are as mean loss of opportunities for maximizing income.
follows:  The term operational planning refers to “the process  To satisfy strategic requirements, a general statement
of determining how specific tasks can best be of needed resources will suffice. The specific
1. Top management level – strategic planning accomplished on time with available resources.” This requirements will be determined by the different units
2. Middle management level – intermediate planning type of planning is a responsibility of lower of the company.
management. It must be performed in support of the
3. Lower management level – operational planning. strategic plan and intermediate plan. Setting Standards

Strategic Planning The Planning Process  A standard may be defined as “quantitative or

qualitative measuring device designed to help monitor
 The term strategic planning refers to the “process of  The planning process consists of various steps the performances of people, capital goods, or
determining the major goals of the organization and depending on the management level that performs the processes.”
the policies and strategies for obtaining and using planning task. Generally, however, planning involves  An example of standard is the minimum number of
resources to achieve these goals.” the following: units that must be produced by a worker per day in a
 In strategic planning, the whole company is given work situation.
considered, specifically its objectives and current 1. Setting organizational, divisional, or unit goals
resources. Types of Plans
2. Developing strategies or tactics to reach those
Intermediate Planning goals  Functional Area Plans
1. Marketing Plan- this is the written document or
 Intermediate planning refers to “the process of 3. Determining resources needed and
blueprint for implementing and controlling an
determining the contributions that subunits can 4. Setting standards organization’s marketing activities related to a
makes with allocated resources.” This type of planning particular marketing strategy.
is undertaken by middle management.
 2. Production Plan- this is a written document that Single-use plans may be further classified as 1. Company or corporate mission
states the quantity of output of a company must follows: 2. Objective or goals
produce in broad terms and by product family. 3. Strategies
1. Budgets
3. Financial Plan- it is a document that summarizes  Company of corporate mission refers to the “strategic
2. Programs, and
the current financial situation of the firm, analyses statement that identifies why an organization exists, its
3. Projects.
financial needs, and recommends a direction for philosophy of management, and its purpose as
financial activities. Parts of the Various Functional Area Plans distinguished from other similar organizations in terms
4. Human resource management plan- it is a of products, services, and markets.
document that indicates the human resource  The contents of the marketing plans
1. The Executive Summary – which represents an Making Planning Effective
needs of a company detailed in terms of quantity
overall view of the marketing project and it’s
and quality and based on the requirements of the  Planning is done so that some desired results may be
company’s strategic plan. potential.
achieved. At times, however, failure in planning occurs.
2. Table of Contents
 Planning may be made successful if the following are
 Plans With Time Horizon 3. Situational Analysis and Target Market
observed:
Plans with time horizon consist of the following: 4. Marketing Objectives and Goals
1. Recognize the planning barriers
1. Short-range – these are plans intended to cover a 5. Marketing Strategies
2. Use of aids to planning
period of less than one year. First-line supervisors 6. Marketing Tactics
7. Schedules and Budgets
are mostly concerned with these plans.  The planning barriers, according to Plunkett and
2. Long-range plans – these are plans covering a time 8. Financial Data and Control
Attner, are as follows:
span of more than one year. These are mostly 1. Manager’s inability to plan
undertaken by middle and top management.  The Contents of the Financial Plan
2. Improper planning process
1. An analysis of the firm’s current financial condition
3. Lack of commitment to the planning process
 Plans According to Frequency of Use as indicated by an analysis of the most recent
4. Improper information
statements.
5. Focusing on the present at the expense of the
According to frequency of use, plans may be classified 2. A sales forecast
future
as: 3. The capital budget
6. Too much reliance on the planning department
4. The cash budget
1. standing plans and 7. Concentrating on only the controllable variables
5. A set of pro forma (or projected) financial
2. Single - use plans. statements
 Among the aids to planning that may be used are:
6. The external financing plan.
 Standing Plans. These are plans that are used 1. Gather as much information as possible
again and again, and they focus on managerial Contents of the Human Resources Plan 2. Develop multiple sources of information
situations that recur repeatedly. Standing 3. Involve others in the planning process
 The human resources plan must contain the following:
plans may be further classified as Policies,
1. Personnel requirements of the company
Procedures, and Rules.
2. Plans for recruitment and selection
 Single-Use Plans. These plans are specifically ORGANIZING TECHNICAL ACTIVITIES
3. Training plans
developed to implement courses of action that
4. Retirement plans Organizing Defined
are relatively unique and are unlikely to be
repeated. Parts of the Strategic Plan  Is a management function which refers to “ the
structuring of resources and activities to accomplished
 The strategic plan must contain the following:
objectives in a efficient and effective manner”
  The arrangement or relationship of position within an Types of Organizational Structures  Forecasting – which is an assessment of future
organization is called the structure. human resource needs in relation to the
1. Functional Organization
 The result of the organizing process is the structure current capabilities of the organization.
2. Product or Market Organization
Purpose of the Structure 3. Matrix Organization  Programming – which means translating the
forecasted human resource needs to personal
 It defines the relationship between tasks and authority The Purpose of Committees
objectives and goals.
for individuals and departments.
 A committee is a formal group of persons formed for a
 It defines formal reporting relationships, the number  Evaluation and control – which refers to
specific purpose.
of levels in hierarchy of the organization, and the span monitoring human resource action plans and
 Committees are very useful most especially to
of control. evaluating their success.
engineering and manufacturing firms. When a certain
 It defines the groupings of individuals into
concern, like product development is under  Methods of Forecasting:
departments and departments into organization.
consideration, a committee is usually formed to
 It defines the system to effect coordination of efforts  Time series methods – which use historical
provide the necessary line-up of expertise needed to
in both vertical (authority) and horizontal (tasks) data to develop forecasts of the future.
achieve certain objectives.
direction.
 Committees maybe classified as follows:  Explanatory, or causal models – which are
 when structuring an organization, the engineer
1. Ad Hoc committee attempts to identify the major variables that
manager must be concern with the following:
2. Standing Committee are related to or have caused particular past
1. Division of labor
2. Delegation of authority conditions and then use current measures of
3. Departmentation these variables to predict future conditions.
4. Span of control STAFFING THE ENGINEERING
The three major types of explanatory
5. Coordination ORGANIZATION
models are as follows:
The Formal Organization Staffing
 Regression models
 The formal organization is “the structure that details  Staffing may be defined as “the management function
 Economic models – a system
lines of responsibilities, authority, and position.” that determines human resource needs, recruits,
of regression equations
 The formal structure is described by management selects, trains, and develops human resources for jobs
estimated from past time-
through: created by an organization.”
series data and used to show
1. Organization chart  Staffing is undertaken to match people with jobs so the effect of various
2. Organizational Manual that the realization of the organization’s objectives will independent variables on
3. Policy Manuals be facilitated. various dependent variables.
Informal Groups The Staffing Procedure  Monitoring methods – are those that provide
 When members of an organization spontaneously early warning signals of significant changes in
Human Resource Planning
form a group with friendship as a principal reason for established patterns and relationships so that
belonging.  Human resource planning may involve three the engineer manager can assess the likely
 The informal organization, useful as it is, is “vulnerable activities, as follows: impact and plan responses if required.
to expediency, manipulation, and opportunism,”
according to Valentine.
Recruitment  References – are those written by previous Induction and Orientation
employers, co-workers, teachers, club officers,
 Refers to attracting qualified persons to apply for  Induction – the new employee is provided with the
etc. Their statements may provide some vital
vacant positions in the company so that those who are necessary information about the company. His duties,
information on the character of the applicant.
best suited to serve the company may be selected. responsibilities, and benefits are relayed to him.
 Interviews – Information may be gathered in Personnel and health forms are filled up, and passes
 When management wants to fill up certain vacancies,
an interview by asking a series of relevant are issued. The company history, its products and
the following sources may be tapped:
questions to the job candidate. services, and the organization structure are explained
 The organization’s current employees to the new employee.
 Testing – this involves an evaluation of the
 Newspaper advertising future behaviour or performance of an  Orientation – the new employee is introduced to the
individual. immediate working environment and co-workers. The
 Schools following are discussed: location, rules, equipment,
 Types of Test:
 Referrals from employees procedures and training plans. Performance
 Psychological tests – which is “an objective, expectations are also discussed. The new employee
 Recruitment firms standard measure of a sample behavior”. It is also undergoes the “socialization process” by pairing
 Competitors classified into: him with an experienced employee and having a one-
on-one discussion with the manager.
Selection  Aptitude test – one used to measure a
person’s capacity or potential ability Training and Development
 Refers to the act of choosing from those that are to learn.
available the individuals most likely to succeed on the  Training refers to the “learning that is provided in
job.  Performance test – one used to order to improve performance on the present job”.
measure a person’s current
 A requisite for effective selection is the preparation of  Training programs consist of two general types,
knowledge of a subject.
a list indicating that an adequate pool of candidates is namely:
available.  Personality test – one used to measure
 Training programs for nonmanagers
personality traits as dominance,
 Selection produces may be simple or complex sociability, and conformity.  Training and educational programs for
depending on the costs of a wrong decision. executive.
 Interest test – one used to measure a
 Ways of Determining the Qualifications of a Job person’s interest in various fields of  Training Program for Nonmanagers:
Candidate: work.
 On-the-job training – where the trainer is
 Application Blanks – provides information  Physical examination – a type of test given to placed in an actual work situation under the
about a person’s characteristics such as age, assess the physical health of an applicant. It is direction of his immediate supervisor, who
marital status, address, educational given “to assure that the health of the acts as trainer. This situation motivates
background, experience, and special interests. applicant is adequate to meet the job strongly the trainee to learn.
After reading the application blank, the requirements.
evaluator will have some basis on whether or  Vestibule school – where the trainee is placed
not to proceed further in evaluating the in a situation almost exactly the same as the
applicant. workplace where machines, materials, and
time constraints are present. As the trainer
 works full time, the trainee is assured of provided with a script or description of a given  Multiple management – premised on the idea
sufficient attention from him. problem and of the key persons they are to that junior executives must be provided with
play. means to prepare them for higher
 Apprenticeship program – where a
management positions.
combination of on-the-job training and  Behavior modelling – attempts to influence
experiences with classroom instruction in the trainee by “showing model persons Performance Appraisal
particular subjects are provided to trainees. behaving effectively in a problem situation.”
 Performance appraisal is the measurement of
 Special courses – where those taken which  Sensitivity training – awareness and sensitivity employee performance.
provide more emphasis on education rather to behavioural patterns of oneself and others
 The purposes for which performance appraisal is made
than training. Examples are those which are developed.
are as follows:
concern specific uses of computer like
 Transactional analysis – intended “to help
computer-aided design and building  To influence, in a positive manner, employee
individuals not only understand themselves
procedures. performance and development
and others but also improve their
 Training Programs for Managers interpersonal communication skills.”  To determine merit pay increase
 In-basket – where the trainee is provided with  In acquiring knowledge about the actual job the  To plan for future performance goals
a set of notes, messages, telephone call, manager is currently holding, the following methods
letters, and reports, all pertaining to a certain are useful:  To determine training and development needs
company situation. He is expected to handle  To assess the promotional potential of
 On-the-job experience – provides valuable
the situation within a given period of 1 or 2 employees
opportunities for the trainee to learn various
hours.
skills while actually engaged in the  Ways of Appraising Performance:
 Management games – where “trainees are performance of job
faced with simulated situation and are  Rating scale method – each trait or
 Coaching – requires a senior manager to assist characteristic to be rated is represented by a
required to make an ongoing series of
a lower-level manager by teaching him the line or scale on which the rater indicates the
decisions about the situation.
needed skills and generally provides degree to which the individual possesses the
 Case studies – presents actual situations in directions, advice and helpful criticism. trait or characteristics.
organizations and enable one to examine
 Understudy – a manager works as assistant to  Essay method – the evaluator composes
successful and unsuccessful operations. It
a higher-level manager and participates in statements that best describe the person
emphasizes “the manager’s world, improves
planning and other managerial functions until evaluated.
communication skills, offers rewards of solving
he is ready to assume such position himself.
a mystery, possesses the quality of illustration,  Management by objectives method – specific
and establishes concrete reference points for  In the attempt to increase the trainee’s knowledge of goals are set collaboratively for the
connecting theory with practice. the total organization, exposure to information and organization as a whole, for various subunits,
events outside of his immediate job is made: and for each individual member.
 The interpersonal competence of the manager may be
developed through any of the following methods:  Position rotation – the manager is given  Assessment center method – evaluated by
assignments in a variety of departments. persons other than the immediate superior.
 Role-playing – the trainees are assigned roles
to play in a given case incident. They are
  Checklist method – the evaluator checks presence of a defect in the organization is Process of Motivation
statements on a list that are deemed to determined, corrective action is necessary.
characterize an employee’s behavior or  Involuntary separation (or termination) – is the last
Plus
performance. option that the management exercises when an NEEDS MOTIVA
employee’s performance is poor or when he/she TION
 Work standards method – standards are set
committed an act violating the company rules and
for the realistic worker output and later on
regulations.
used in evaluating the performance of Which leads to Leads
nonmanagerial employees. readiness for to
the next need
 Ranking method – each evaluator arranges
MOTIVATION
employees in rank order from the best to NEED
poorest. What is Motivation? SATISFACTIO ACTION/GOAL
N -DIRECTED
Which results to BEHAVIOR
 Critical-incident method – the evaluator recalls  Refers to the act of “giving employees reasons or
and writes down specific (but critical) incidents incentives to work to achieve organizational
that indicate the employee’s performance. objectives”.
 The process of ACTIVATING behavior, SUSTAINING it,
Employment Decisions (Monetary Rewards, Transfer,
and DIRECTING it toward a particular goal.
Promotions and Demotions)
Factors Contributing to Motivation
 Monetary rewards – given to employees whose
performance is at par or above standard requirements.  Willingness to do a job.

 Promotion – a movement by a person into a position  Self-confidence in carrying out a task.

of higher pay and greater responsibilities and which is
 Needs satisfaction.
given as a reward for competence and ambition.
Theories of Motivation
 Transfer – movement of person to a different job at the
same or similar level of responsibility in the  Maslow’s Needs Hierarchy
organization.
 Herzberg’s Two-Factor Theory
 Demotion – movement from one position to another
which has less pay or responsibility attached to it.  Expectancy Theory Relevance of Needs Theory to Engineering
Management
Demotion is used as a form of punishment or as a  Goal Setting Theory
temporary measure to keep an employee until he is
Needs Hierarchy Theory of Motivation  A fulfilled need no longer motivates an individual
offered a higher position.
 Based on this knowledge, the engineer manager
Separations  ABRAHAM MASLOW must identify an unfulfilled need and work out a
 Theorized that human beings have 5 basic needs. scheme so that the subordinate will be motivated
 Separation is either a voluntary or involuntary  One need will have to be satisfied before going on to work thus satisfying the unfulfilled need.
termination of an employee. the next need.
 Voluntary separation – the organization’s
management must find out the real reason. If the
Two – Factor Theory Expectancy Theory are Based on These Assumptions Goal – Setting Theory

 FREDERICK HERZBERG  A combination of forces within the individual and in the  EDWIN LOCKE
 Motivation is determined by expectancies and environment determines behavior.  This theory states that goal setting is
valences  People make decisions about their own behavior and essentially linked to task performance.
 The expectancy theory of motivation explains the that of organizations  In simple words, goals indicate and give
behavioral process of why individuals choose one  People have different types of needs, goals, and direction to an employee about what needs to
behavioral option over the other. desires. be done and how much efforts are required to
 People make choices among alternative behaviors be put in.
 Expectancy Theory based on the extent to which they think a certain  Process of “improving performance with
 Expectancy behavior will lead to a desired outcome. objectives, deadlines or quality standard”
 A belief about the likelihood or probability that  Components:
a particular behavioral act (training sessions) 1. Goal content
will lead to a particular outcome (promotion).  Goals must be challenging,
 Valence attainable, specific and
 The value an individual places on the expected measurable, time-limited, and
outcomes or rewards relevant
Valence + 2. Goal commitment
Second-level  The group or individual should be
Outcome (ability to commited to the goal in order to
EXPECTANCY purchase house & lot)
EXPECTANCY achieve it.
First-level Outcome Valence - 3. Work behavior
Perceived probability Perceived probability of
(Compensation)
of successful receiving an outcome, given  Goal influence behavior in terms
performance, given performance Second-level Outcome
effort (ability to be with of direction, effort, persistence,
EFFORT PERFORMANCE
family) and planning. When an individual
OUTCOMES
is provided with direction,
Valence +
performance is facilitated.
Second-level
Outcome (Self- 4. Feedback aspects
First-level Outcome esteem)  Feedbacks provide the individuals
(Recognition)
Valence - with a way of knowing how far
they have gone in achieving
Second-level
Outcome (esteem of objectives.
others)  Feedbacks also facilitate the
introduction of corrective
measures whenever they are
found to be necessary.
Motivational Technique  Share Profit to Improve Performance Bases of Power
 Motivate employees with incentives of a profit
 Create a Positive Work Environment  LEGITIMATE POWER-a person who occupies a higher
sharing program. In this way, employees increase
 Motivate employees by offering an upbeat, position has legitimate power over a persons in lower
earning while helping the business income rise.
positive work environment. Encourage positions within the organization
This approach simultaneously promotes collective
teamwork and idea sharing and make sure
goal-setting and teamwork.  REWARD POWER- when a person has the ability to give
staffers have the tools and knowledge to
rewards to anybody who follows orders or requests.
perform well. Eliminate conflict as it arises,
 Solicit Employee Input Rewards may be classified into two forms: Material
and give employees freedom to work
 Regularly survey employee satisfaction. Soliciting and Psychic
independently when appropriate.
employee input also shows staffers that you care
about the opinions of workers and want to 1. Material Reward-refers to money or other tangible
 Set Goals that are Reasonable and Achievable benefits
continually improve working conditions.
 Help employees become self-motivated by 2. Psychic Reward-consists of recognition, praises,
helping establish professional goals and etc.
 Provide Professional Enrichment
objectives. Not only does this give employees
 Encourage employee to pursue additional  COERCIVE POWER- when a person compels another to
something to strive for, but your business
education or participate in industry organizations. comply with orders through threats or punishments
benefits when goals are tied to corporate
Promote from within whenever possible and
contributions. Make sure that goals are  REFERENT POWER- when a person can get a
create opportunities to help employees develop
reasonable and achievable so employees don’t compliance from another because the latter would
from a professional standpoint.
get discourage. Offer encouragement when want to be identified with the former.
workers hit notable milestone.
 EXPERT POWER- provides specialized information
LEADING regarding their specific lines of expertise. It is
 Increase Motivation by Providing Incentives
 Increase motivation by providing incentives to What is LEADING? possessed by people with great skills in technology
work toward. You can create individual incentives The Nature of Leadership
for each employee or team incentives to motivate  Leading is that which “involves others to engage in the
employees as a group. Financial incentives can work behaviors necessary to reach organizational goals  One cannot expect a unit or a division to achieve
include cash prizes, gift cards or restaurant gift  LEADING refers to the function while LEADERSHIP objective in the absence of effective leadership. Even
certificates. Nonfinancial incentives can include refers to the process if a leader is present, but if he is not functioning
extra vacation days, compressed work weeks or How Leaders Influences Others properly, no unit or division objectives can be expected
choice office space or parking spots.
 Manager are expected to maintain effective Traits of Effective Leaders

 Recognize Achievements and Accomplishments workforces. To be able to do so, they are required to  High Level of Personal Drive- persons with drive are
 Celebrate employee achievements through perform leadership roles. Leaders are said to be able to those identified to accept responsibility, possess vigor,
employee-of-the month or star performer awards. influence others because of the power they possess. initiative, persistence, and health
Make a big deal out of accomplishments by Power refers to the ability of a leader to exert force on
another.  The Desire to Lead- leaders with a desire to lead will
celebrating at staff meetings. Recognize team
always have a reservoir of extra efforts which can be
accomplishments as well as individual efforts.
used whenever needed.
  Personal Integrity-one who does not have personal  Human Skills 3. Free-rein Leaders -leaders who set objectives and
integrity will have a hard time convincing his allow employees or subordinates relative freedom to
 These skills refers to the ability of a leader to deal
subordinates about the necessity of completing do whatever it takes to accomplish the objectives.
with people, both inside and outside the
various task.
organization. Good leaders must know how to get Leaders Orientation toward Tasks and People
 Self Confidence- the step of conceptualizing, along with people, motivate them and inspire
1. Employee Orientation -a leader is said to be employee-
organizing, and implementing will be completed if them.
oriented when he considers employees as human
sustained effort are made. For the moves to be
 Conceptual Skills beings of intrinsic importance and with individual and
continuous and precise self-confidence is necessary.
personal need to satisfy
 This skills refers to “the ability to think in abstract
 Analytical Ability-the ability to analyze is one desirable
terms, to see how parts fit together to form the 2. Task Orientation -a leader is said to be task-oriented if
trait that a leader can use to tide him over many
whole”. A leader without sufficient conceptual he places stress on production and the technical
challenging aspects of leadership.
skills will fail to achieve this. aspects of the job and the employees are viewed as the
 Knowledge of the Company, Industry or Technology– a means of getting the work done.
Behavioral Approaches to Leadership Styles
leader who is well informed about his company, the
Contingency Approaches to Leadership Style
industry where the company belongs, and the 1. According to ways how leaders approach people to
technology utilized bu industry, will be in a better motivate them  The contingency approach is an effort to determine
position to provide directions to his unit. through research which managerial practice and
2. According to the way the leader uses power.
techniques are appropriate in specific situations.
 Charisma-when a person has a sufficient personal
magnetism that leads people to follow his directives 3. According to the leader’s orientation towards task and
Fiedler’s Contingency Model
people.
 Creativity-Ronnie Millevo defines creativity as “the  “Leadership is effective when the leader's style is
ability to combine existing data, experience and Ways Leaders Approach People
appropriate to the situation”. The situational
preconditions from various sources regarded as new,  Positive leadership -when a leaders approach characteristics is determined by three principal factors.
valuable, and innovative, and as a direct solution to an emphasizes rewards. 1. The relations between leaders and followers.
identified problem situation. 2. The structure of the task.
 Negative Leadership -when punishment is emphasized 3. The power inherent in the leader’s position.
 Flexibility-people differ in the way they do their work. by the leader.
One will adapt different method from another person’s
Ways Leaders Uses Power  The situational characteristics vary from organization
method.
to organization. To be effective the situation must fit
Leadership Skills 1. Autocratic Leaders -leaders who make decisions the leader. If this is not so the following may be tried.
themselves without consulting subordinates. 1. Change the leader’s trait or behaviors
 Technical Skills Motivation takes the form of threats, punishments, 2. Select leaders who have traits or behaviors
 These are skills a leader must possess to enable and intimidation of all task. fitting the situations.
him to understand and make decisions about work 2. Participative Leaders -are leaders that openly invites 3. Move leaders around in the organization until
processes, activities, and technology. Technical his subordinates to participate or share in decisions, they are in positions that fit them.
skill is a specialized knowledge needed to perform policy-making and operation methods 4. Change the situation.
a job.
Hersey and Blanchard Situational Path-Goal Model of Leadership then seriously considers those suggestions when
Leadership Model making decisions.
 Espoused by Robert J. House and Terence R. Mitchelle
 Suggests that the most important factor affecting the stipulates that leadership can be made effective 4. Achievement Oriented Leadership -where the leader
selection of a leader’s style is the development or because leaders can influence subordinates set challenging goals, emphasize excellence, and seek
maturity level of subordinate. The leader should match perceptions of their work goals personal goals and continuous improvement while maintaining a high
his or her style to this maturity level: paths to goal attainment. degree of confidence that subordinates will meet
difficult challenges in a responsible manner.
1. Job skills and Knowledge  By using the path-goal model, it assumemd that
2. Psychological Maturity effective leaders can enhance subordinate motivation Vroom’s Decision-Making Model
by:
Leadership Styles Appropriate for Various Maturity Level  It prescribes the proper leadership style for various
1. Clarifying the subordinates perception of work
situations, focusing on the appropriate degrees of
1. Directing - is for people who lack competence but are goals
delegation of decision making authority.
enthusiastic and committed. 2. Linking meaningful rewards with goal
attainment Degree of
2. Coaching - is for people who have competence but lack 3. Explaining how goals and desired rewards can Symbol Decision-Making Style Subordinate
commitment Participation
be achieved
3. Supporting - is for people who have competence but The Path-Goal Process AUTOCRATIC LEADERS
lack of confidence or motivation.
Leader solves the problems or makes the
A-1 None
4. Delegating - is for people who have both competence decision himself using available information.

and commitment.
Leader obtains necessary information from
A-2 Low
Development Stage of Subordinates and Recommended subordinates, then decides.

Leadership Styles
CONSULTATIVE LEADERS

Development Stage Recommended Style

Leader appreciate subordinates individually
C-1 Moderate
getting their ideas then makes decisions.
1. Low ability + low Style 1: DIRECTING –structure,
willingness control, and supervise Leadership Styles. The leadership styles which may be used
by Path-Goal proponents are as follows: Leader shares the problem with subordinates as
2. Low ability + high Style 2: COACHING –direct and C-2 a group, obtaining their collective ideas and Moderate
1. Directive Leadership -where the leader focuses in clear suggestions, then decides.
willingness support
task assignments, standards of successful performance
and work schedules. GROUP DIRECTED
3. High ability + low Style 3: SUPPORTING –praise,
willingness listen, and facilitate 2. Supportive Leadership -where the subordinates are
treated as equals in a friendly manner while striving to Leader shares the problem with subordinates as
a group. Let’s the group generate and evaluate
Style 4: DELEGATING –turn over improve their well-being. G-2
alternative solutions, and then collectively
High
4. High ability + high
responsibility for day-to-day decides.
willingness 3. Participative Leadership -where the leader consults
decision making
with the subordinates to seek their suggestions and