Assignment # 4

Business Corporative in Aviation Management

Name: Shumile Akhter Mir

Roll no: BAMM-S18-002

Topic: Behavioral Approaches and Theory Z – Modern Approaches

Elton Mayo in 1933:

They contributions came as part of the Hawthorne studies, a series of experiments
that rigorously applied classical management theory only to reveal its shortcomings.
The Hawthorne experiments consisted of two studies conducted at the Hawthorne
Works of the Western Electric Company in Chicago from 1924 to 1932. The first
study was conducted by a group of engineers seeking to determine the relationship
of lighting levels to worker productivity. Surprisingly enough, they discovered that
worker productivity increased as the lighting levels decreased — that is, until the
employees were unable to see what they were doing, after which performance
naturally declined. 
A few years later, a second group of experiments began. Harvard researchers Mayo
and F. J. Roethlisberger supervised a group of five women in a bank wiring room.
They gave the women special privileges, such as the right to leave their workstations
without permission, take rest periods, enjoy free lunches, and have variations in pay
levels and workdays. This experiment also resulted in significantly increased rates of
productivity.
In this case, Mayo and Roethlisberger concluded that the increase in productivity
resulted from the supervisory arrangement rather than the changes in lighting or
other associated worker benefits. Because the experimenters became the primary
supervisors of the employees, the intense interest they displayed for the workers
was the basis for the increased motivation and resulting productivity. Essentially, the
experimenters became a part of the study and influenced its outcome. This is the
origin of the term Hawthorne effect, which describes the special attention
researchers give to a study's subjects and the impact that attention has on the
study's findings. 
The general conclusion from the Hawthorne studies was that human relations and
the social needs of workers are crucial aspects of business management. This
principle of human motivation helped revolutionize theories and practices of
management.

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Abraham Maslow:

A practicing psychologist, developed one of the most widely recognized need

theories, a theory of motivation based upon a consideration of human needs . His
theory of human needs had three assumptions: 

Human needs are never completely satisfied.

Human behavior is purposeful and is motivated by the need for satisfaction.
Needs can be classified according to a hierarchical structure of importance,
from the lowest to highest.
Maslow broke down the needs hierarchy into five specific areas:

 Physiological needs:
Maslow grouped all physical needs necessary for maintaining basic human
well‐being, such as food and drink, into this category. After the need is
satisfied, however, it is no longer is a motivator.
 Safety needs: 
These needs include the need for basic security, stability, protection, and
freedom from fear. A normal state exists for an individual to have all these
needs generally satisfied. Otherwise, they become primary motivators.
 Belonging and love needs:
After the physical and safety needs are satisfied and are no longer motivators,
the need for belonging and love emerges as a primary motivator. The
individual strives to establish meaningful relationships with significant others.
 Esteem needs. An individual must develop self‐confidence and wants to
achieve status, reputation, fame, and glory.
 Self‐actualization needs. Assuming that all the previous needs in the
hierarchy are satisfied, an individual feels a need to find himself.

Maslow's hierarchy of needs theory helped managers visualize employee motivation.

Douglas McGregor:
It was heavily influenced by both the Hawthorne studies and Maslow. He believed
that two basic kinds of managers exist. One type, the Theory X manager, has a
negative view of employees and assumes that they are lazy, untrustworthy, and
incapable of assuming responsibility. On the other hand, the Theory Y manager
assumes that employees are not only trustworthy and capable of assuming
responsibility, but also have high levels of motivation. 
An important aspect of McGregor's idea was his belief that managers who hold
either set of assumptions can create self‐fulfilling prophecies — that through their
behavior, these managers create situations where subordinates act in ways that
confirm the manager's original expectations. 
As a group, these theorists discovered that people worked for inner satisfaction and
not materialistic rewards, shifting the focus to the role of individuals in an
organization's performance.

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Frederick Herzberg:
Frederick Herzberg’s well known Two-Factor Theory was designed in year 1959.
Based on two hundred engineers and accountant feedback collected in the USA
regarding their personal feelings towards their working environments. Herzberg
defined two sets of factors in deciding employees working attitudes and level
of performance, named Motivation & Hygiene Factors (Robbins, 2009). Motivation
Factors are Intrinsic Factors that will increase employees’ job satisfaction; while
Hygiene Factors are Extrinsic Factors to prevent any employees’
dissatisfaction. Herzberg furthered that full supply of Hygiene Factors will not
necessary result in employees’ job satisfaction. In order to increase employees’
performance or productivity, Motivation factors must be addressed.
Two-Factor Theory is closely related to Maslow's hierarchy of needs but it introduced
more factors to measure how individuals are motivated in the workplace. This theory
argued that meeting the lower-level needs (extrinsic or hygiene factors) of individuals
would not motivate them to exert effort, but would only prevent them from being
dissatisfied. In order to motivate employees, higher-level needs (intrinsic or
motivation factors) must be supplied. The implication for organizations to use this
theory is that meeting employees’ extrinsic or hygiene factors will only prevent
employees from becoming actively dissatisfied but will not motivate them to
contribute additional effort toward better performance. To motivate employees,
organizations should focus on supplying intrinsic or motivation factors (Robbins,
2009).
According to the setting of theory, Extrinsic Factors are less to contribute to
employees’ motivation need. The presences of these factors were just to prevent
any dissatisfaction to arise in their workplaces. Extrinsic Factors are also well known
as job context factors; are extrinsic satisfactions granted by other people for
employees (Robbins, 2009). These factors serve as guidance for employers in
creating a favourable working environment where employees feel comfortable
working inside. When all these external factors were achieved, employees will
be free from unpleasant external working conditions that will banish their feelings of
dissatisfactions, but remains themselves neutral in neither satisfied nor motivated;
however, when employers fail to supply employees’ Extrinsic Factors needs,
employees’ job dissatisfaction will arise. Intrinsic Factors are the actually factors that
contribute to employees’ level of job satisfactions. It has widely being known as job
content factors which aim to provide employees meaningful works that able to
intrinsically satisfy themselves by their works outcomes, responsibilities
delegated experience learned, and achievements harvested (Robbins, 2009).
Intrinsic Factors are very effective in creating and maintaining more durable
positive effects on employees’ performance towards their jobs as these factors
are human basic needs for psychological growth. Intrinsic Factors will propel
employees to insert additional interest into their job. When employees are
well satisfied by motivational needs, their productivity and efficiency will improved.
This theory further proposed the Intrinsic and Extrinsic Factors are
interdependence to each other. Presence of Extrinsic Factors will only eliminate
employees’ work dissatisfaction; however, it will not provide job satisfaction. On

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the other hand, sufficient supply in Intrinsic Factor will cultivate employees’ inner
growth and development that will lead to a higher productivity and performance;
however, absent of this factor will only neutralize their feeling neither satisfy nor
dissatisfy on their jobs. Extrinsic Factors only permit employees willingness to work
while Intrinsic Factors will decide their quality of work. These two groups of
Extrinsic and Intrinsic Factors are not necessary opposite with each other, as
opposite of satisfaction are not dissatisfaction, but rather no satisfaction. Similarly,
opposite of dissatisfaction are not satisfaction, but no dissatisfaction (Robbins,
2009). For instance, a study by Wan Fauziah and Tan (2013) among 124 employees
from electronic companies in Malaysia revealed the employees have some
differences in their intrinsic and extrinsic motivation factors. Hence, organizations
should modulate their operations and procedures to satisfy both intrinsic and
extrinsic motivation factors of their employees.

Chester Barnard:
In 1931, he was asked to organize and direct the New Jersey Emergency Relief
Administration. Barnard also spent time teaching a series of lectures at Harvard in
1937, which served as the basis of his only book, entitled The Functions of the
Executive, written in 1938.
Barnard viewed organizations as cooperative systems, which he defined as a
complex of physical, biological, personal and social components which are in a
specific systematic relationship by reason of the cooperation of two or more persons
for at least one definite end. Basically, according to Barnard, we enter into
cooperative arrangements to accomplish things we cannot do alone.
He viewed organizations in biological terms akin to a living organism that seeks to
survive in a hostile environment. Similarly, he recognized that an organization is not
self-sufficient, but needs to rely upon resources from the outside environment that
allow it to function and also limits an organization's actions. For example, an
organization needs capital, labor, equipment, and resources to function and
accomplish its goals. On the other hand, science and technologies are resources in
the environment that can be tapped by an organization but also limit what it can
accomplish. We can't achieve a goal that is outside the laws of physics, for example.
According to Barnard, an organization needs to achieve system equilibrium. In the
context of his theory, achieving equilibrium involves two interrelated processes. The
first process relates to the equilibrium between the organization's characteristics and
its external environment. The second process tries to balance the contributions that
members of the organization make to the organization's collective purpose and the
degree of satisfaction both the organization and members receive in the exchange.

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Theory Z - Modern approach:
Approach to management based upon a combination of American and Japanese
management philosophies and characterized by, among other things, long-term job
security, consensual decision making, slow evaluation and promotion procedures,
and individual responsibility within a group context.

W. Edwards Deming – Quality Guru:

The 14 points for Managing Deming's fourteen points are management for
transformation.
The Deming Cycle PDCA Cycle for continual improvement.
The system of Profound Knowledge (How managers should acquire new knowledge
of the system?)

A Brief Introduction:
Edwards Deming was a prominent consultant, teacher, and author on the subject
of Quality Management. Deming has published more than 200 works, including well-
known books "Quality, Productivity and Competitive Position" and "Out of the
Crisis". 

Timeline:
1946: After sharing his expertise in statistical quality control to help the US war effort
during World War II, the War Department sent Deming to Japan to help the nation
recover from its wartime losses. Deming taught Statistical Process Control (SPC) to
the leaders of prominent Japanese organizations.
1951: The Deming Prize was established. The first Deming Prize ceremony was
held on Sept 22, 1951. 
1956: Deming was awarded the Shewhart medal by the American Society for Quality
Control (ASQC - Now ASQ)
1960: Deming was honored by the Japanese Emperor with the Second Order of the
Sacred Treasure for his teachings
This was an American television episode broadcast by NBC News. This was as part
of the television show NBC White Paper on June 24, 1980. This TV documentary is
credited with beginning the Quality Revolution in America and introducing the
methods of W. Edwards Deming to American managers.

The Deming Cycle – PDCA:

PDCA (Plan-Do-Check-Act) is an iterative four-step management method used in
business for the control and continuous improvement of processes and products. It
is also known as the Deming circle or, Shewhart cycle.

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A variation of this is the Plan-Do-Study-Act (PDSA) cycle.

Plan:
Plan the action. Assess the current state, and the future state, and plan how to close
the gap. Identify alternate solutions.

Do:
Try out or test the solutions (sometimes at a pilot level).

Check:
Check to see if the tested solutions accomplished the objective.

Act:
Analyze the difference between actual and planned results. If the gap is significant,
determine the root cause and request a corrective action.

The Deming System of Profound Knowledge:

The System of Profound Knowledge, or management by positive co-operation, is
described in its four interrelated elements.

Appreciation for a System:

The need for managers to understand the relationships between functions and
activities, and that the long-term aim is for everyone to win employees, shareholders,
customers, suppliers and the environment.

Knowledge of Variation:
Knowledge and understanding of variation, process capability, control charts,
interactions and the loss function.

Theory of Knowledge:
As all plans require prediction based on historical information, the theory must be
understood before it can successfully be copied.

Knowledge of Psychology:
The understanding of human interactions, how people are motivated and what
disillusions them.

The 14 points of managing:

Deming's fourteen points for Total Quality Management include:

1. Create constancy of purpose:

Create constancy of purpose toward improvement of product and service, with the
aim to become competitive and to stay in business, and to provide jobs.

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2. Adopt the new philosophy:
Adopt the new philosophy. We are in a new economic age. Western management
must awaken to the challenge, must learn their responsibilities, and take on
leadership for change.

3. Cease dependence on inspection:

Cease dependence on inspection to achieve quality. Eliminate the need for
inspection on a mass basis by building quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag:

End the practice of awarding business on the basis of the price tag. Instead,
minimize total cost. Move toward a single supplier for any one item, on a long-term
relationship of loyalty and trust.

5. Improve constantly:
Improve constantly and forever the system of production and service, to improve
quality and productivity, and thus constantly decrease costs.

6. Institute training:
Institute training on the job.

7. Institute leadership:
Institute leadership the aim of supervision should be to help people and machines
and gadgets to do a better job. Supervision of management is in need of an
overhaul, as well as supervision of production workers.

8. Drive out fear:

Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers:

Break down barriers between departments. People in research, design, sales, and
production must work as a team, to foresee problems of production and in use that
may be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets:

Eliminate work standards (quotas) on the factory floor. Substitute leadership.
Eliminate management by objective. Eliminate management by numbers, numerical
goals. Substitute leadership.

11. Pride of workmanship:

Remove barriers that rob the hourly worker of his right to pride of workmanship. The
responsibility of supervisors must be changed from sheer numbers to quality.

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12. Abolishment of the annual or merit rating:
Remove barriers that rob people in management and engineering of their right to
pride of workmanship. This means, among other things, the abolishment of the
annual or merit rating and of Management by Objectives.

13. Education and self-improvement:

Institute a vigorous program of education and self-improvement.

14. Transformation:
Put everybody in the company to work to accomplish the transformation. The
transformation is everybody's job.