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conditions。 Every change resulted in an improvement in productivity�察�
except when two 10´minute pauses morning and a。。ernoon were expanded 
to six 5´minute pauses。 These frequent work pauses�察�they felt�察�upset their 
work rhythm。 
Mayo¨s conclusion was that showing `someone upstairs cares¨�察�engendering 
a sense of ownership and responsibility were important 
motivators that could be harnessed by management。 A。。er Mayo came 
a flurry of theories on motivation。 William McDougall in his book The 
Energies of Men ��1932�察�published by Methuen�� listed 18 basic needs that 
he referred to as instincts ��eg curiosity�察�sell´assertions�察�submission��。 H A 
Murray�察�assistant director of the Harvard Psychological Clinic�察�catalogued 
20 core psychological needs�察�including achievement�察�affiliation and power。 
The motivation theories most studied and applied by business school 
graduates are those espoused by Maslow ��see Chapter 3�� and these below。 
Theory X and theory Y 
Douglas McGregor�察�an American social psychologist who taught at two 
top schools�察�Harvard and the Massachuse。。s Institute of Technology ��MIT���察�
developed these theories to try to explain the assumptions about human 
behaviour that underlies management action。 
Theory `X¨ makes the following assumptions�此�
。 The average person has an inherent dislike of work and will avoid it 
if possible。 So management needs to put emphasis on productivity�察�
incentive schemes and the idea of a `fair day¨s work¨。 
。 Because of this dislike of work�察�most people must be coerced�察�controlled�察�
directed and threatened with punishment to get them to achieve the 
pany¨s goals。 
。 People prefer to be directed�察�want to avoid responsibility�察�have li。。le 
ambition and really want a secure life above all。 
But�察�while Theory `X¨ does explain some human behaviour�察�it does not 
provide a framework for understanding behaviour in the best businesses。 
McGregor�察�and others�察�have proposed an alternative。 
Theory `Y¨ has as its basis the belief that�此�
。 Physical or mental effort at work is as natural as either rest or play。 
Under the right conditions�察�hard work can be source of great satisfaction。 
Under the wrong conditions it can be a drudge�察�which will inspire li。。le 
effort and less thought from those forced to participate。 
。 Once mi。。ed to a goal�察�most people at work are capable of a high 
degree of self´management。
142 The Thirty´Day MBA 
。 Job satisfaction and personal recognition are the highest `rewards¨ that 
can be given�察�and will result in the greatest level of mitment to the 
task in hand。 
。 Under the right conditions�察�most people will accept responsibility and 
even wele more of it。 
。 Few people in business are being `used¨ to anything like their capacity。 
Neither are they contributing creatively towards solving problems。 
A typical Theory´X boss is likely to keep away from their employees as 
much as possible。 However small the business�察�for example�察�they may make 
sure that they have an office to themselves�察�and its door is kept tightly shut。 
Contact with others will be confined to giving instructions about work and 
plaining about poor performance。 A Theory´Y approach will involve 
collaborating over decisions rather than issuing orders�察�and sharing 
feedback so that everyone can learn from both success and failures�察�rather 
than just reprimanding when things go wrong。 
Hygiene and motivation theory 
Frederick Hertzberg�察�professor of psychology at Case Western Reserve 
University in Cleveland�察�United States�察�discovered that distinctly separate 
factors were the cause of job satisfaction and job dissatisfaction。 His research 
revealed that five factors stood out as strong determinants of job 
satisfaction。 
Motivators 
。 Achievement�此�People want to succeed�察�so if you can set goals that people 
can reach and be。。er�察�they will be much more satisfied than if they are 
constantly missing targets。 
。 Recognition�此�Everyone likes their hard work to be acknowledged。 Not 
everyone wants that recognition made in the same way�察�however。 
。 Responsibility�此�People like the opportunity to take responsibility 
for their own work and for the whole task。 This helps them grow as 
individuals。 
。 Advancement�此�Promotion or at any rate progress are key motivators。 
In a small firm�察�providing career prospects for key staff can be a fundamental 
reason for growth。 
。 The a。。ractiveness of work itself ��job interest���此�There is no reason why a 
job should be dull。 You need to make people¨s jobs interesting and give 
them a say in how their work is done。 That will encourage new ideas on 
how things can be done be。。er。 
When the reasons for dissatisfaction were analysed they were found to be 
concerned with a different range of factors。
Organizational Behaviour 143 
Hygiene factors 
。 pany policy�此�Rules�察�formal and informal�察�such as start and finish 
times�察�meal breaks�察�dress code。 
。 Supervision�此�To what extent are employees allowed to get on with the 
job�察�or do people have someone looking over their shoulders all day�拭�
。 Administration�此�Do things work well�察�or is paperwork in a muddle and 
supplies always e in late�拭�
。 Salary�此�Are employees ge。。ing at least the going rate and benefits 
parable with others�拭�
。 Working conditions�此�Are people expected to work in substandard 
conditions with poor equipment and li。。le job security�拭�
。 Interpersonal relationships�此�Is the atmosphere in work good or are 
people at daggers drawn�拭�
Hertzberg called these causes of dissatisfaction `hygiene factors¨。 He 
reasoned that the lack of hygiene will cause disease�察�but the presence of 
hygienic conditions will not�察�of itself�察�produce good health。 So the lack of 
adequate `job hygiene¨ will cause dissatisfaction but hygienic conditions 
alone will not bring about job satisfaction�察�to do that you have to work on 
the determinants of job satisfaction。 
Other theories of motivation 
There are a plethora of theories of how to motivate people at work and elsewhere。 
��See the partial list below。�� As the subject has matured�察�researchers 
have segmented the market into ever´smaller sub´topics�察�for example 
focusing on certain subgroups�察�difficult people for example�察�or special situations 
such as a。。er a merger or closure of part of a business。 
。 Achievement motivation theory ��Atkinson�察�1964�� 
。 Action´oute expectancy ��Heckhausen�察�1991�� 
。 A。。ributional theory of achievement motivation ��Weiner�察�1972�� 
。 Cognitive dissonance theory ��Festinger�察�1957�� 
。 Effectance motivation ��White�察�1959�察�Harter�察�1978a�� 
。 Expectancy times value theory ��Vroom�察�1964�� 
。 Goal´se。。ing theory ��Locke�察�1968�� 
。 Intrinsic motivation ��Deci�察�1975�� 
。 Learned helplessness theory ��Seligman�察�1975�� 
。 Neuro´linguistic programming �C NLP ��Bandler and Grinder�察�1976�� 
。 Reactance theory ��Brehm�察�1966�� 
。 Self´efficacy theory ��Bandura�察�1977�� 
The guiding principle for all motivation practice is that people respond 
to a much wider range of stimulations other than life and death�察�fear and 
144 The Thirty´Day MBA 
greed or stick and carrot。 There is a thumbnail sketch of the 50 or so people 
whose theories on motivation and organizations have brought them to 
prominence and that an MBA should have at least an appreciation of at this 
website ��onepine。info/people。htm��。 
LEADERSHIP 
However great the employees are�察�unless a business has effective leadership 
nothing of great value can be made to happen。 While the boss may have a 
pre。。y clear idea of what the business is all about and what makes it special 
and different�察�it may not be so clear to those who work further down。 
Employees o。。en just keep their heads down and get on with the task in 
hand。 While that¨s a useful trait�察�it is not sufficient to make a business a 
great place to work。 To make that happen�察�the boss has to have a precise 
idea of where the business is heading and use their leadership skills to 
achieve results。 
Tasks 
Leaders have three major tasks�此�to determine the direction�察�chart the course 
and set the goals。 The direction of a business has a number of ponents 
that can be best understood if thought of as being parts of a pyramid。 ��See 
Figure 4。8。�� 
Figure 4。8 The purpose pyramid 
Action plans 
Key tasks 
Objectives 
Mission 
Start the 
planning 
process 
Derive 
from the 
planning 
process 
Vision 
A vision is about stretching the organization¨s reach beyond its grasp。 Few 
now can see how the vision can be achieved�察�but can see that it would be 
great if it could be done。
Organizational Behaviour 145 
Microso。。¨s vision of a puter in every home�察�formed when few offices 
had one�察�is one example of a vision that has nearly been reached。 As a 
mission statement in 1990 it might have raised a wry smile。 A。。er all�察�it was 
only a few decades before then that IBM had estimated the entire world 
demand for its puters as seven� �
NASDAQ�察�the entrepreneurs¨ stock market�察�has as its vision�此�To build the 
world¨s first truly global securities market。 `A world´wide market of markets 
built on a world´wide network of network linking pools of liquidity and 
connecting investors from all over the world thus assuring the best possible 
price for securities at the lowest possible costs。¨ That certainly points to 
beyond the horizon envisaged by business today。 
Having a vision will make it easier to get employees to buy into a longterm 
mitment to a business �C they will see that they could have career 
opportunities and progression in an organization that knows where it is 
going。 
Mission 
A mission is a direction statement�察�intended to focus your a。。ention on the 
essentials that encapsulate your specific petence��s�� in relation to the 
market/customers you plan to serve。 First�察�the mission should be narrow 
enough to give direction and guidance to everyone in the business。 This 
concentration is the key to business success because it is only by focusing 
on specific needs that a small business can differentiate itself from its larger 
petitors。 Nothing kills off a business faster than trying to do too many 
different things too soon。 Second�察�the mission should open up a large 
enough market to allow the business to grow and realize its potential。 You 
can always add a bit on later。 
In summary�察�the mission statement should explain�此�
。 what business you are in and your purpose�察�
。 what you want to achieve over the next one to three years�察�ie your 
strategic goal�察�
。 how�察�ie your ethics�察�values and standards。 
Above all�察�mission statements must be realistic�察�achievable �C and brief。 
Objectives 
The milestones on the way to realizing the vision and mission are measured 
by the achievement of business objectives。 These objectives `cascade¨ 
through the organization from the top�察�where they are measures of profit�察�
through to measures such as output�察�quality�察�reject rates�察�absenteeism and 
so forth。
146 The Thirty´Day MBA 
Objective se。。ing is a primary process in which clear performance measures 
are agreed with every employee。 The achievement of specific objectives is 
the ultimate measure of effective leadership。 
MANAGEMENT 
Leadership and management are not the same thing�察�but you need both。 A 
leader challeng

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