Management Notes

Reference Notes for Management

Value Engineering – Product and Service Design | Operations Management

Value Engineering

Value Engineering | Value Analysis | Value Management | Product and Service Design | Operations Management Value Engineering Value Engineering or Value analysis or Value Management is the cost reduction technique that is used without diminishing the effectiveness of the product and fulfilling the customer’s satisfaction. It is carried out to eliminate unnecessary features and … Read more

Expectancy Theory of Motivation – Vroom’s Expectancy Theory | Theories of Motivation

Expectancy Theory of Motivation

Expectancy Theory 

Expectation Theory


➦ In the present situation, expectancy theory is a widely accepted motivation theory because it focuses on the outcome.

➦ The theory states that the intensity of a tendency to perform is dependent on the intensity of expectation that performance will be followed by the definite outcome of an individual.

➦ It means that the expectancy theory of motivation focuses on the willingness of an individual to act in a certain way depends on the fulfillment of his expectation followed by the outcome.

➦ People are motivated when they know how to earn rewards, expect they will be able to earn rewards, and expect they will be worthwhile rewards.

➦ The expectation theory states that incentives will be high when people know what is required of them to earn rewards. In 1964, Vroom (1964) formulated the valency-instrumentality-expectancy (VIE) theory.

➦ The term value stands for value, instrumentality means a belief that if we do one thing it will lead to another, and expectancy means the probability of success.

➦ While expectations may be reinforced by past experiences (reinforcement), individuals are often faced with new situations – a change in job, payment system, or working conditions imposed by management – where past experiences are inadequate indicators of implications.

➦ Motivation is diminished under these circumstances.

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ERG Theory – Existence, Relatedness, and Growth | Alderfer’s ERG theory

ERG Theory

Alderfer’s ERG theory

Alderfer extends and refines the theory of Maslow’s Need Hierarchy Theory. It classifies human need into three levels of hierarchy i.e ERG. The ERG stands for three basic categories; Existence, Relatedness, and Growth. This theory argues that there is no rigid hierarchy need. People may operate more than one need at a single time. For example, physiological and security needs could be operated at the same time.

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Importance of Motivation – Concept of Motivation | Organizational Behavior

Importance of Motivation

Importance of Motivation | Concept of Motivation | Organizational Behavior | Management Notes

Motivation is an important part of the managerial function. Managers must be able to motivate subordinates. There is a direct relationship between motivation and performance. Motivation helps to improve the efficiency in goal achievement since it is always action-oriented. Motivation also helps to avoid unhealthy and adaptive behavior such as risk-taking and addiction. It also helps with competition and social connection. Lack of motivation also leads to illness and depression in person and lack of efficiency in the performance of an individual. Some of the importance of motivation in the organization can be explained below:

Profitable operation with proper utilization of production factors

A motivated employee always performs his duties and responsibility well. He also had self-responsibility for the best utilization of organizational resources like materials, money machines, etc. He has the ability to use the production factors properly and efficiently. He has the best idea of technology, location setup, organizational structure, production process, etc. Therefore, he is always active to give his best in every sector which leads to a profitable business. Also, the organization can run its profitable operation in different areas with the help of motivated employees who are always active to perform their best. It ultimately increases the productivity of the business.

Coordination, Satisfaction, and Efficiency in work

A motivated employee is always interested and willing for the new creation of ideas and job structure. It helps to develop a satisfied employee as the satisfaction of employees is essential for organizational effectiveness. Motivation also helps to develop morality, loyalty, and dedication among employees. Motivation can be in the form of financial or non-financial and intrinsic or extrinsic. Motivated employees develop better understanding among subordinates and appreciate their mutual problems and resolve differences through mutual consent. Such type of coordination among employees helps to develop the attitude of team spirit and group effort for common goals.

Best Use of Human Resource to Increase Performance

Manpower is the main active factor of production and is responsible for the best utilization of organizational resources. Motivated manpower is always willing to create the best possible way to perform tasks better. Also, a motivated employee is stable in an organization for a better opportunity. Retention of motivated manpower is an asset for organizations. In any organization,  when there are motivated employees it ultimately increases the performance in the organization.


Minimize Supervision Cost

Motivated employees perform their work themselves since they have the feeling of self-responsibility to perform work smoothly. For such employees simple guidance and timely suggestion are sufficient. Regular and close supervision is not needed for those employees. They always work with the full ability for best performance in an organization which helps to minimize supervision cost for the organization.


Goal Achievement

Every organization has its defined objective to be fulfilled. And fulfill all those objectives timely, effectively, and efficiently. A motivated employee plays a vital role in it. Motivated workers who put their effort toward the attainment of organizational objectives by the best utilization of Machine, method, resources, raw materials, etc. Moreover, the best utilization of human resources contributes to the proper utilization of other resources. This will help to minimize the cost of output or service and maximize profitability which is the ultimate goal of every organization.


Readiness to Change

Change is the inevitable part of every organization. Such changes may be in technology, environments, etc. In general, there is a tendency to resist the change or hesitate to accept the change in the organization but a motivated employee is always ready to accept the changes. Motivated employees are always already aware of the benefit and need of newness in organization and business environments. Non-motivated employees are always scared of their job security and stability So they never adopt the changes. Thus, every manager should create an environment to motivate employees along with a positive attitude of job security and stability.

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What is Motivation ? – Concept of Motivation | Organizational Behavior

What is Motivation

What is Motivation ? | Concept of Motivation | Organizational Behavior Motivation is derived from the word ‘Motive’ which means desire, needs, wants, or drives within an individual. Motivation is a psychological process. It encourages and stimulates people to action to accomplish the desired goal. It creates willingness among employees to perform to the best … Read more

Types of Motives – Concept of Motives | Understanding Individual Behavior

Types of Motives

Types of Motives

Concept of Motives

Motives are the reason for choosing specific action behavior from several alternative choices to fulfill needs. Human motives are created whenever there is psychological or physical imbalance.

It is the reason for action, purpose and direction of certain behavior, individuals are different from nature and different types of motive help them for successful motivation.

Understanding such motives help manager to apply most appropriate technique to motivate every employee.

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Which of the following is false about sensation?

Which of the following is false about sensation?

Which of the following is false about sensation?

A. Sensation refers to the way sensory information is organized, interpreted, and consciously experienced.
B. We have a sensory system that provides information about balance, called the vestibular sense.
C. We have more than five senses.
D. When sensory information is detected by a sensory receptor, sensation has occurred.

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Sensation – Factors Affecting Sensation | Organizational Behavior



Sensation is a process in which a sensory receptor is stimulated producing nerve impulses that travel to the brain. It is the process of receiving signals from external stimuli through sense organs and paying attention to them. Sense organs are the ear, eyes, nose, tongue, and skin.

The individual receives sense in terms of vision, hearing, touch, smell, and taste. Individuals pay attention to stimuli and try to interpret such information. It shows an individual behavior and personality. In addition, there are six senses that generally make intuition on the basis of past experience.

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