Chap 11

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  • 1. MOTIVATION THROUGH MBO AND PERFORMANCE APPRAISAL SATURDAY, December 26, 09
  • 2. 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
  • 3. 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
  • 4. Course Outline
    • Sr. | Chap|Final Exam Chapter Heading
    • No.|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
  • 5. 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
  • 6. 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
  • 7.  
  • 8. 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'.
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. NEXT CLASS
  • 13. HOW GOAL SETTING IMPROVES MOTIVATION
    • 1. Goal specificity and its effects
    • Goal difficulty
    • Participative Goal Setting
    • Performance Feedback
  • 14. IMPLEMENTING AND MANAGING MBO SYSTEM
    • Arrange goals in Means-Ends sequence
    • Identify Key Responsibilities
    • Assign priorities to Key responsibilities
    • Define the expected outcomes of key responsibilities
    • Assign specific tasks to Employees
    • Define Authority and Responsibility relationships
    • Develop Time Schedules
    • Perform Individual Tasks and integrate them into overall goals
    • Undertake periodic performance process reviews
    • Conduct Annual Performance review session
  • 15. A RESULT ORIENTED PERFORMANCE APPRAISAL SYSTEM
  • 16. PROBLEM OF MBO AND SOLUTIONS
  • 17. CONTINGENCY APPROACH TO MBO