- What is expectancy theory of motivation? Itemize and explain its three components, formula and examples.
- What is the difference between Management and Scientific management? Explain why Frederick Taylor is still considered to be the father of scientific management.
- What is bureaucracy? Briefly discuss four advantages and disadvantages of bureaucracy.
- Why do plans fail? Identify and briefly explain the three theories of motivation that are need-based and their general focus.
- What is informal organization? Itemize and explain the two reasons why informal organizations exist and the four main activities of the management process.
- What is leadership? Identify and explain three key approaches to the study of leadership.
- What is authority? Compare and contrast line, staff and functional authority. Briefly explain authoritarian, laissez fair and democratic types of leadership.
- What is globalization? Briefly explain the four important conditions that managers must consider in the globalization of their actions.
SOLUTIONS
1. Expectancy Theory of Motivation Vroom’s theory: motivation depends on the belief that effort leads to reward. Formula: Motivation = Expectancy × Instrumentality × Valence
- Expectancy: belief that effort → performance (e.g., “if I study hard, I’ll pass”)
- Instrumentality: belief that performance → reward (e.g., “if I pass, I’ll get a certificate”)
- Valence: value placed on the reward (e.g., how much I actually want that certificate) If any factor is zero, motivation is zero.
2. Management vs Scientific Management
- Management: general process of planning, organizing, leading, controlling resources to achieve goals.
- Scientific Management: a specific approach (Taylor) using scientific methods (time-motion studies) to find the “one best way” to do a job, focusing on efficiency and productivity at the shop-floor level. Taylor is still “father of scientific management” because he pioneered systematic study of work methods, standardized tools/procedures, tied pay to output, and laid the foundation for modern industrial engineering and productivity science.
3. Bureaucracy A formal organization structure with clear hierarchy, rules, division of labor, and impersonal relationships (Weber).
- Advantages: (1) clear division of labor, (2) consistency via rules, (3) clear hierarchy of authority, (4) merit-based advancement.
- Disadvantages: (1) rigidity/red tape, (2) slow decision-making, (3) impersonal treatment of employees, (4) resistance to change.
4. Why Plans Fail / Need-Based Motivation Theories Plans fail due to poor goal-setting, inadequate resources, poor communication, unrealistic timelines, or resistance to change. Three need-based theories:
- Maslow’s Hierarchy of Needs: people are motivated by satisfying needs in order — physiological, safety, social, esteem, self-actualization.
- Herzberg’s Two-Factor Theory: hygiene factors (pay, conditions) prevent dissatisfaction; motivators (achievement, recognition) drive satisfaction.
- McClelland’s Acquired Needs Theory: people are driven by needs for achievement, affiliation, or power.
5. Informal Organization Unofficial network of relationships among people in an organization, not defined by formal structure. Reasons it exists: (1) satisfies social/psychological needs (belonging, friendship), (2) provides support and information exchange management doesn’t formally give. Four functions of management process: Planning, Organizing, Leading, Controlling.
6. Leadership The ability to influence people toward achieving goals. Three approaches:
- Trait approach: leaders possess specific inborn qualities (intelligence, confidence).
- Behavioral approach: focuses on what leaders do (task-oriented vs people-oriented behaviors).
- Situational/Contingency approach: effective leadership depends on the situation/context.
7. Authority & Leadership Styles Authority = the right to make decisions and direct others’ work.
- Line authority: direct command over subordinates (chain of command).
- Staff authority: advisory role, supports line managers with expertise.
- Functional authority: right to control specific processes/practices across departments (e.g., HR policies).
Leadership styles:
- Authoritarian: leader makes decisions alone, tight control.
- Laissez-faire: leader gives freedom, minimal direction.
- Democratic: leader involves group in decision-making.
8. Globalization The process of businesses operating and competing on a worldwide scale. Four conditions managers must consider:
- Economic conditions (currency, trade agreements, market stability)
- Political/legal conditions (regulations, stability, trade policy)
- Cultural conditions (values, customs, communication styles)
- Technological conditions (infrastructure, digital access)