Earn Value Sample Question


Problem Definition

Your team has been assigned to construct a road of 5.5 km including a bridge of 500m in 35 days.

The total cost for the project is Rs. 35,000,000/- and the cost for constructing the bridge is Rs. 10,000,000/- .

You expect to complete the bridge in 10 days and the remaining road in 25 days .

You are monitoring daily progress and the data for the first 20 days shows the following progress : Day 1-12 – Bridge completed ,

Daily road work progress from day 13 to 20 – 240 m , 300m , 200m, 160m. 220m, 250m , 290m, 140m. The cost spent till date is as follows : Bridge Rs. 12,500,000/- , daily cost from day 13 to 20 days is Rs. 1,100,000/- per day .

What is the schedule and cost variance on Day 20 ?

a) SV = + Rs. 1,000,000/- CV = + Rs1,300,000/-

b) SV = – Rs. 1,000,000/- CV = – Rs1,300,000/-

c) SV = – Rs. 1,000,000/- CV = – Rs 2,300,000/-

d) SV = – Rs. 2,000.000/- CV = – Rs. 1,30,000/

Answer (Author Analysis)

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Figure 1 – Scheduled and Actual Project

Bridge day 12

500m in 10 days budget of 10 Million, BAC Bridge = 10 Million

Scheduled Daily rate Bridge = BAC Bridge / scheduled duration = 10Million / 10 days = 1Million /days

Scheduled Productivity Rate Bridge= BAC Bridge / scheduled duration= 500m/10 days = 50m/days

BCWS Bridge = Daily rate Bridge x scheduled days = 1Million /days x 10 days = 10 Million,

BCWP Bridge = BAC Bridge = 10Million,

ACWP Bridge = 12.5 Million.

Bridge done in day 12th. Consuming 12 working days behind schedule by 2 days.

Road day 20

5 Km = 5000m in 25 days

Road Budget = Total Budget – Bridge Budget = 35Million – 10 Million = 25 Million

Scheduled Daily Rate Road = BAC Road / scheduled duration = 25 Million / 25 days = 1 Million / days

Scheduled Productivity Rate Road = BAC Road / scheduled duration = 5000m / 25 days = 200m/days

BCWS Road scheduled to be started in day 11 to day 20 which means 10 days duration

BCWS = Daily rate Road x scheduled days = 1Million /days x 10 days = 10 Million.

Or BCWS worth for 10 days x Scheduled Productivity Rate Road = 10 days x 200m/days = 2000m

BCWP Road is cumulative work progress from day 13 to 20 – 240 m , 300m , 200m, 160m. 220m, 250m , 290m, 140m. Cumulative of 1800m.

Day 13 to day 20 in 8 days duration scheduled to accomplished = 8 days x Scheduled Productivity Rate Road = 8 days x 200m/days = 1600m

It means in 8 days accomplished 1800m, 1800m -1600m= 200m more than scheduled, ahead of schedule by 200 m or equal as one day more, equal to 9 days work (9 day x 200m / day = 1800m)

Scheduled 1600 m equal to 8 days worth value of = 8 days x Daily Rate Road = 8 days x 1 Million / days = 8 Million.

200m variance worth of 1 days work which worth for 1 days x  Daily Rate Road = 1 days x 1 Million /days = 1 Million.

So BCWP value is 1800m = 1600m + 200m = 8 Million + 1 Million = 9 Million

ACWP Road  = Variable Cost x Actual Duration = 1.1 Million / days x 8 days = 8.8 Million

SV = (BCWPbridge+ BCWProad) – (BCWSbridge + BCWSroad)

SV = (10M + 9M) – (10M + 10M) = 19M – 20M = -1M behind schedule by value worth of 1 M

CV =(BCWPbridge +BCWProad) – (ACWPbridge+ ACWProad)

CV = (10 M + 9M) – (12.5 + 8.8M) = 19M – 21.3M = -2.3M

Answer C

References:

  1. Rao, Alakananda (2013). I want to be a PMP® linkedin group . Questions from PMBok Fifth edition – Cost. Retrieved September 17, 2013 from http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=273704434&gid=2356441&commentID=164805938&goback=%2Enpv_94027909_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_nav*4responsive*4tab*4profile_*1&trk=NUS_DISC_Q-subject#commentID_164805938
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Create New Baseline In the middle of Project (Re-Baseline)Scope changing study case


Problem Definition

You are managing a project with a budget of 500 to be completed in 6 months.

Due to various causes there have been substantial delays and cost overruns on the project and at the end of 3 months you find that you have already spent 400 and only 200 – worth of deliverables have been completed.

After discussions with your team you find that based on the past experiences and lessons learnt you can now commit to a CPI of 1.5 for the remaining duration of the project.

What should be the budgetary enhancement that you would ask for based on this data?

 

Answer (Author Analysis)

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Figure 1- Month 3rd Preliminary Analysis

Educated Guess for BCWS record ( 1/6, 2/6, 3/6, 4/6, 5/6, 6/6 from 500)

Educated Guess for BCWP & ACWP Record in Month 1 until Month 2

Preliminary Analysis Month 3rd

ACWP = 400; BCWP = 200; BCWS = 500*(3month/6month) = 250;

BAC = 500; BAC is scope of the project value. BAC = BCWS at month 6th =  final value of BCWP.
CPI = BCWP/ACWP = 0.5; SPI = BCWP / BCWS = 0.8

SV = BCWP – BCWS = 200 – 250 = -50 ;Behind schedule by 50 worth value

CV = BCWP – ACWP = 200 – 400 = -200 Cost Overrun by 200 worth value

Note for commit to a CPI of 1.5 for the remaining duration of the project

Current CPI is abnormal ==>Recalculating EAC

EAC is ACWP at the end of project, ACWP in month 6th  is = EAC

ETC = BAC – BCWP = 500 – 200 = 300

EAC = ACWP + ETC

EAC = ACWP + (BAC – BCWP)

EAC = 400 + (500 – 200) = 700

 

Creating new Baseline (Re-Baseline)

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Figure 2 – New Baseline (Re-Baseline month 3rd)

New Baseline (Re-Baseline) in Month 3rd

–          Adjusting BAC, old BAC = 500, new BAC = EAC = 700, Because BAC changing which means scope is changing BCWS affected to change. Remember that if scope remain still, BAC not change then BCWS and BCWP will be remain as it is. See Humprey references1

–          ACWP remain same = 400

–          BCWS = ACWP = 400 ; Because cost overrun worth value 200 distributed to remaining month 4th until month 6th

–          BCWP = ACWP = 400; Because cost overrun worth value 200 distributed to remaining month 4th until month 6th

–          In other word New Baseline is old project scope worth value 500 added by cost overrun  worth value 200 become Project with worth value 700

 

Disputation for Note “for commit to a CPI of 1.5 for the remaining duration of the project”

When we commit to get CPI 1.5 at the end of project month 6th the analysis is (Consider only New Baseline month 4th until month 6th)

CPI= ETC /ACWP cumulative month4 to month 6

1.5 = ETC / ACWP cumulative month4 to month 6

3/2 = 300/ ACWP cumulative month4 to month 6

ACWP cumulative month4 to month 6 = 200 or ETC for CPI 1.5 = 200 to complete work deliverable worth of 300 values

From Old BAC = 500, already expense ACWP = 400,

Remaining Budget = Old BAC – ACWP = 500 – 400 = 100

To commit CP 1.5 at we need to ask budgetary enhancement for = ACWP cumulative month4 to month 6 – Remaining Budget = 300 – 200 = 100

Dissention

Usually in normal practices CPI is calculated on all the lifetime period of project. So for this study case CPI should be normally counted from month 1st until month 6th. Calculation CPI from month 4 to month 6 is not normal practice.

Bottom line

Eventhough there are dissention in this study case about how CPI calculated but this study case is a good practice how to create new baseline (re-baseline) concept when BAC or scope changes

This study case was taken from PMBOK 5th edition. In I want to be a PMP® linkedin group discussion 17 September 2013 Questions from PMBok Fifth edition – Cost Alakananda Rao, PMP

References:

  1. Humphreys, Gary C. (2011). What is Scheduling? Schedule Types. Project Management Using Earned Value 2nd Edition,(pp. 137-146). Orange, United States Of America : Humphreys & Associates Inc
  2. TestEagle. (2013). how-to-calculate-estimate-at-completion-eac-for-the-pmp-exam. Retrieved September 17, 2013 from http://testeagle.com/blog/2012/03/how-to-calculate-estimate-at-completion-eac-for-the-pmp-exam/
  3. Rao, Alakananda (2013). I want to be a PMP® linkedin group . Questions from PMBok Fifth edition – Cost. Retrieved September 17, 2013 from http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=274036493&gid=2356441&commentID=164825079&goback=%2Enpv_94027909_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_*1_nav*4responsive*4tab*4profile_*1&trk=NUS_DISC_Q-subject#commentID_164825079
Posted in Volunteer_Delano | Tagged | 3 Comments

Announcement


Dear All my friends which follow this blog,

Currently I’m in rush to prepare my exam for CCP/CCE/CCEC AACE certification.

My plan is to sit for exam best case in first week of September 2013, most likely second week of September 2013, worst case third week of September 2013. So wish me luck to pass 😀 and become certified professional.

Actually I have created raw material to be published for mercure aace 2013 blog but not finish yet. Its about organizational behaviour  from Bruce Tuckman, and deeper concept scheduling in project management.

So I will update to you all when “hopefully” pass the exam successfully. I will still maintain and posting the blog for you all to learn.

Bottom line

Don’t worry the blog still alive and will be posted regularly after I took exam in September 2013. Currently I’m in big hurry in rush to exam preparation as my first priority.

Warm Regards

Delano Irawadi

Project Control Professional

success-bucket_15320

Posted in Uncategorized | 1 Comment

Leadership, Management, Situational Leadership


Leadership is a vast and important subject, yet full of confusing ideas and terminology, open to widely different interpretations. Leadership definitions and descriptions also vary enormously. Examples of leadership can be extremely diverse too.

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We lead when we manage a football team

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or teach a classroom of children.

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We lead our own children when we are parents,

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and we lead when we organize anything.

We certainly lead when we manage projects, or develop a new business. We lead the moment we take the first supervisory responsibility at work, and we may lead even before we assume official responsibility to do anything.

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A vicar or preacher leads a congregation

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A writer or visionary may lead when he or she puts pen to paper and creates a book, or poem, or article which inspires and moves others to new thoughts and actions

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A monarch and a president are both leaders

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So is a local councilor, and so can be a community fund-raiser.

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A ruthless dictator is a leader. So was Mother Theresa, and so was Mahatma Gandhi.

We can find leadership in every sort of work and play, and in every sort of adventure and project, regardless of scale, and regardless of financial or official authority.

And so, given the many ways in which leadership operates, it is no surprise that leadership is so difficult to define and describe.

Differences Between Leadership and Management

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Figure 1 – Leadership and Management Illustration4

There are lots of confusions and overlaps, and also big differences, when comparing leadership with management.

A very big difference between leadership and management, and often overlooked, is that :

  • leadership always involves (leading) a group of people,
  • management need only be concerned with responsibility for things, (for example IT, money, advertising, equipment, promises, etc).

Of course many management roles have major people-management responsibilities, but the fact that management does not necessarily include responsibility for people, whereas leadership definitely always includes responsibility for people, is a big difference.

The biggest most fundamental overlap between leadership and management – there are many individual points – is that 

“good leadership always includes responsibility for managing

Lots of the managing duties may be delegated through others, but the leader is responsible for ensuring there is appropriate and effective management for the situation or group concerned. The opposite is not the case.

It would be incorrect to suggest that management includes a responsibility to lead, in the true sense of both terms.

We therefore may see management as a function or responsibility within leadership, but not vice-versa.

(Incidentally – Where a manager begins to expand his or her management responsibility into leadership areas, then the manager becomes a leader too. The manager is leading as well as managing)

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Table 1 – Management and Leadership Typical Responsibilities1

Management vs leadership – (differences in responsibilities)

Observant readers will notice that the final entry in the leadership list is ‘All management… (delegated to others…)’.

This emphasizes that:

  • Leadership is (usually*) a bigger responsibility than management, and also,
  • Leadership includes the responsibility for the management of the group/situation, which is typically mostly by delegation to others

* N.B. Management may of course be a bigger responsibility than leadership where the scale of a management role is much bigger than the scale of a leadership role, for example the quality assurance manager for a global corporation compared to the leader of a small independent advertising agency.)

Also, it is important to note again that many managers are also leaders, and so will be doing, or perhaps will be asked to do, things which appear in the leadership list. Where a manager does things which appear in the leadership list, then actually he or she is leading, as well as managing.

Kouzes and Posner – trait theory

Leadership trait theory featured strongly in the best-selling book, The Leadership Challenge, by James Kouzes and Barry Posner, based on their research from 1983-87.

The authors initially surveyed 630 managers about their positive leadership experiences, augmented by 42 in-depth interviews. From this, they identified a number of key leadership traits.

Here are Kouzes and Posner’s suggested ten primary or key leadership traits (sought by followers):

Kouzes and Posner’s top ten leadership traits

1.            Honest                                                 2.            Forward-looking

3.            Inspirational                                       4.            Competent

5.            Fair-minded                                       6.            Supportive

7.            Broad-minded                                    8.            Intelligent

9.            Straightforward                                10.          Dependable

It is important to see the difference between classical leadership traits theory and Kouzes and Posner’s work. They were not analyzing the actual traits of effective leaders – which is the thrust of traditional traits theory. Instead, they asked people what they wanted in their leaders. In other words, they were compiling a profile of the ideal leader. Classical leadership traits theory is different – it aims to explain the common traits of real-life leaders.

The Situational Leadership method from Kenneth Blanchard and Paul Hersey holds that managers must use different leadership styles depending on the situation. The model allows you to analyze the needs of the situation you’re in, and then use the most appropriate leadership style. Depending on employees’ competences in their task areas and commitment to their tasks, your leadership style should vary from one person to another. You may even lead the same person one way sometimes, and another way at other times.

Blanchard and Hersey characterized leadership style in terms of the amount of direction and of support that the leader gives to his or her followers, and so created a simple matrix (figure 2)

sit_leader_blanch

Figure 2 – Situational Leadership5

The best managers learn how to tailor their management style to the needs of their employees.  For example, if an employee is new to a task, a successful manager will use a highly directive style—clearly setting goals and deadlines.  If an employee is struggling with a task, the manager will use equal measures of direction and support.  If the employee is an expert at a task, a manager will use a delegating style on the current assignment and focus instead on coming up with new challenges and future growth projects. Effective leaders are versatile in being able to move around the matrix according to the situation, so there is no style that is always right. However,    we tend to have a preferred style, and in applying Situational Leadership you need to know which one that is for you.

If you decide to manage people in this way, make sure you let them know what you are doing.  If you don’t they will be confused: one will say you are really directive and another will perceive you as laissez-faire.  All you need to do is be overt and say I’m managing you this way becuase this is what you need at the moment.

Leadership Behavior of the Leader

S1 – Telling / Directing – High task focus, low relationship focus – leaders define the roles and tasks of the ‘follower’, and supervise them closely. Decisions are made by the leader and announced, so communication is largely one-way. For people who lack competence but are enthusiastic and committed. They need direction and supervision to get them started.

S2 – Selling / Coaching – High task focus, high relationship focus – leaders still define roles and tasks, but seeks ideas and suggestions from the follower. Decisions remain the leader’s prerogative, but communication is much more two-way. For people who have some competence but lack commitment. They need direction and supervision because they are still relatively inexperienced. They also need support and praise to build their self-esteem and confidence to perform the task, and involvement in decision-making to restore their commitment. In this case, the leader needs to have more direct control over the follower’s attempt to accomplish the task, but the leader should also provide a lot of encouragement along the way.

S3 – Participating / Supporting – Low task focus, high relationship focus – leaders pass day-to-day decisions, such as task allocation and processes, to the follower. The leader facilitates and takes part in decisions, but control is with the follower. For people who have competence, but lack confidence or motivation. They do not need much direction because of their skills, but support is necessary to bolster their confidence and motivation.

Something else to think about:  depending on the task or the context, your normally High Fliers might need more support and direction than you might anticipate to ensure getting the best from them.

Most managers prefer to use a supportive leadership style that encourages direct reports to seek out their own solutions in accomplishing their tasks at work.  But that style is only appropriate when the direct report has moderate to high levels of competence and mostly needs encouragement to develop the confidence to become self-sufficient.

What about the other times when people are brand new to a task, disillusioned, or looking for new challenges?  In these three cases, just being supportive will not provide people with the direction they need to succeed.  In fact, just being supportive will often delay or frustrate performance.

S4 – Delegating – Low task focus, low relationship focus – leaders are still involved in decisions and problem-solving, but control is with the follower. The follower decides when and how the leader will be involved. For people who have both competence and commitment. They are able and willing to work on a project by themselves with little supervision or support.

Likewise, the competence and commitment of the follower can also be distinguished in 4 quadrants.

Development Level of the Follower

D4 – High Competence, High Commitment – Experienced at the job, and comfortable with their own ability to do it well. May even be more skilled than the leader.

D3 – High Competence, Variable Commitment – Experienced and capable, but may lack the confidence to go it alone, or the motivation to do it well quickly.

D2 – Some Competence, Low Commitment – May have some relevant skills, but won’t be able to do the job without help. The task or the situation may be new to them.

D1 – Low Competence, High Commitment – Generally lacking the specific skills required for the job in hand, but has the confidence and / or motivation to tackle it.

Similar to the leadership styles, the development levels are also situational. A person could be skilled, confident and motivated for one part of his job, but could be less competent for another part of the job.

Blanchard and Hersey said that the Leadership Style (S1 – S4) of the leader must correspond to the Development level (D1 – D4) of the follower – and it’s the leader who adapts. By adopting the right style to suit the follower’s development level, work gets done, relationships are built up, and most importantly, the follower’s development level will rise to D4, to everyone’s benefit.

And finally over time, people can shift from D4 back to D3, losing momentum or getting bored or just losing their motivation.

Are your managers able to flex their style?

Research by The Ken Blanchard Companies shows that leadership flexibility is a rare skill. In looking at the percentage of managers who can successfully use a Directing, Coaching, Supporting, or Delegating style as needed, Blanchard has found that 54 percent of leaders typically use only one leadership style, 25 percent use two leadership styles, 20 percent use three leadership styles, and only 1 percent use all four leadership styles.

managers-ability-to-flex-leadership-style

Figure 3 – Ability to Flex Leadership Style3

From Blanchard Ignite! Newsletter June 2012 its shows Task Development Levels. It possible equivalent to development level of follower.

critical-task-distribution

Figure 4 – Typical Task Development Levels3

Blanchard goes on to explain that, “If you operate with 75% of your people at a Disillusioned Learner or only a Capable, But Cautious, Performer level, you are going to have very anemic financial performance and low levels of passion and engagement.

“This is exactly what we are seeing in today’s work environment. The result is an organization operating at 65 to 70% of potential. In our research into The High Cost of Doing Nothing, the impact of this untapped potential is costing the average organization over $1 million per year.”

 

Leverage development levels effectively

For senior leaders looking to develop their people more effectively, Blanchard has some recommendations.

“When people start off as Enthusiastic Beginners it’s important that you grab a hold of their momentum and enthusiasm and prepare them for the inevitable Disillusioned Learner stage. It will come, so it’s important to acknowledge it, make it OK, and help people push through it.”

“When you get to the Capable, but Cautious, Performer stage remember that you can’t stop there—that will only get you lackluster financial performance. Instead, push through to a place where employees become Self-Reliant Achievers.”

Summary

My personal opinion since I have done review the behavioral science of Maslow, Hertzberg, Argyris, Mcgregor, Mouton, Likert, Kouzes, Posner, Blanchard and Hersey. Based also personal working experience leadership is need to be correspond to development level group or follower.

And the reality that I faced was usually the first stage of group or follower is D1 Low Competence, High Commitment or Enthusiastic Beginner the first step is always the hardest one.

This stage where leader apply the S1 Telling or Directing Leadership. This first step is where leadership by example take place, and everybody know lead by example is not easy task.

It can be illustrated like nurturing a child, me myself is father with one daughter.

Parenting (leadership)

1. Lead by example (Role – Model). “See What I Do

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– Vision: my daughter is my legacy of my goodwill, I need to prepare her to contribute goodness, virtue to the world.

– Mission: I convince her, inspire her that important to be good people, it is great to have honest job which deliver good service or good item to help people live, It is honorable to be brave and take responsibility. It is wonderful to have balanced live between work, family and personal achievement. It’s meaningful and satisfying to achieve peak of your career. and it is necessary keep our body healthy.

And doing all that mission is first step of the leader “Be the change you want to see by show to her how its done”

2. Coaching. “Help me doing what I Do to make you understand how its work”

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At this level my daughter should understand about my vision and my mission, But she must know how it works by understand each action is related to supporting vision and mission by work together with me as coach. I will teach her all knowledge which she may need in future, hard skill and soft skill.

3. Supporting. “You do what I have taught you, and I will help you”

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The next level is where she placed in front to take decision and responsibility. But she still need someone to talk to or sharing about her wisdom, guidance or asks opinion and advice or even someone to listen her thoughts. That’s why I should be there for her.

4. Delegating. “You do what I have taught you, and I see what you do”

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At the end, She should be become independent and mature leader, where she can create self-actualization for her own life. And that’s which I consider a honor for me to see her happiness. She is living proof that dreams do come true.

Not many people has courage to do the first step to be role-model by show how it’s done, and also not many people care to take the second step for coaching other, usually they just want to involve in supporting and delegating which is not good practice. First step should be do it successfully first and then the second step and so on consecutively that’s the brutal truth of leadership.

That’s why great good leader is rare because the true leadership is service for goodness of other people.

Motivation without service to others is manipulation, not leadership.

Good leader same like good parents which are not many and rare but it is possible.

“Yes, a leader is like a hero, they are not motivated for their personal glory, they are the first in battle and the last ones to leave the ship.

They are empathic with every single person in their team and see themselves more as the one serving them all, helping them all, often seeing their own job as complimentary to that of the others, than thinking of themselves and their success, and considering their team as a flock of aids that compliment their job.

A Leader, just like a hero, puts the goal and the team ahead of themselves. They see themselves as the tool, the spear that opens the road, the wall that protects and contains,

The messenger that takes the important cargo so diligently produced by the team they have been entrusted with. Not everybody is a leader, but all of us can be heroes in our own courts.”

So The Organization or Project should and must have clear vision to be realized. The vision should be goodness for other people, virtue, pure. Why? Because everybody down deep in their heart wants to be a good people which give benefit to other people.

For example:

Vision: To support my country Indonesia generations to become more resourceful and knowing for good sake like technology, science and knowledge for better live. That’s why our project to expand internet bandwidth in Indonesia must success.

Mission:

–      Successfully completing Microwave Upgrade in Jawa Bali Area

–      Raise our market by 75% more than last semester serve more people make their life easier and to make our organization or company deliver more monetary bonus to all employee and investor.

That’s ideally win win solution should happen, customer, employee, owner and investor are get the benefit  🙂

“Being deeply loved by someone gives you strength, while loving someone deeply gives you courage.” Lao Tzu

Next posting Situational Leadership will be matched with Organizational behavior stage Bruce W. Tuckman

References:

1. Chapman, Alan. (2013). leadership theories. Accessed August 2, 2013 from http://www.businessballs.com/leadership-theories.htm

2. S.Wrench, Jason. (2013). Organizational Communication: Theory, Research, and Practice. Approaches to Leadership. Accessed August 2, 2013 from http://2012books.lardbucket.org/books/organizational-communication-theory-research-and-practice/section_09_01.html

3. Witt, David. (2012). Situational Leadership II. Accessed August 2, 2013 from http://leaderchat.org/category/situational-leadership-ii-2/

4. DTSInternational.(2013). Difference Between Leadership & Management. Accessed August 2, 2013 from http://www.dtssydney.com/blog/difference_between_leadership_and_management_(leader_vs_manager)

5. Frodsham, Barbara. (2012). Leadership : How To Change Your Style Depending on What A Person Needs. Accessed August 2, 2013 from http://www.barbarafrodsham.co.uk/2012/08/leadership-how-to-change-your-style-depending-on-what-a-person-needs/

6. Bradley, Myrt. (2011). What is situational leadership? Accessed August 2, 2013 from http://www.business-development-1st.co.uk/blog/142/What-is-situational-leadership

7. 12manage.com. (2013). Situational Leadership. Accessed August 2, 2013 from http://www.12manage.com/methods_blanchard_situational_leadership.html

8. Rusling, Andrew. (2013). Iteration Manager to Iteration Leader. Accessed August 2, 2013 from http://www.journey-to-better.com/2013/01/iteration-manager-to-iteration-leader.html

9. Bunny, Storm. (2012). Boss or Leader. Accessed August 2, 2013 from http://stormberry.blogspot.com/2012/04/boss-or-leader.html

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Volunteer_3_DI_Motivation/Incentives (Behavioral Science) Part V


The Blake Mouton Managerial Grid Balancing Task- and People-Oriented Leadership

 Origin of The Managerial Grid (Leadership Grid), History.

Built from the work of researchers at University of Michigan and Ohio State University, while acting as advisors to Exxon, Robert Blake and Jane Mouton concluded that there are many behaviors and motivations in the middle of the X and Y extremes of Douglas McGregor. Blake and Mouton found that a management behavior model with three axes (concern for production, concern for people, motivation) was a more accurate representation of reality.

Understanding the Model

The Managerial Grid is based on two behavioral dimensions:

  • Concern for People (Relationships) – This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task.
  • Concern for Production (Tasks) – This is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.
  • Motivation – It’s a bipolar scale, running from a minus motivation (below the Grid) through neutral to a plus motivation (above the Grid). The negative motivations are driven by fear, the positive ones by desire

Using the axis to plot leadership ‘concerns for production’ versus ‘concerns for people’, Blake and Mouton defined the following five leadership styles:

2ccea4c801d39208164ac12efc193719

Figure 1 – Blake and Mouton’s Managerial Grid12

 

1. The Impoverished (indifferent) management (1, 1):

If seen from good perspective this is the type of situational leadership delegating. It would be best applied when follower or subordinates are ready, well trained, has solid team work so they can work independently allowing team to gain self-reliance. Leader able to leave the team to build another team or do another project.

If seen from bad perspective it can be very harmful to project. It can happen when follower or subordinates has no experience, not mature, and not ready to engage the project. It can be told by term evade and elude or delegate and disappear management style. This happen usually when leader believe the project is not worthy, useless, or management doesn’t care with project existence which makes no control in project which likely will be abandoned.

Example for bad perspective it can be illustrated. When manager asking senior engineer to coach junior engineer or intern student about working environment organization or project. Since senior engineer believe this coaching doesn’t have benefit for him, he abandon this task and do other else which he consider more important. And also the manager never ask or care about junior engineer or intern student readiness or adaptation after he delegate to senior engineer. It can happen also in nonprofit organization that based on volunteerism.

2. The Country Club (Accommodating, Yield and comply) management (1, 9):

This style has a high concern for people and a low concern for production. Managers using this style pay much attention to the security and comfort (needs and feelings) of the employees, in hopes that this will increase performance based on assumption that as long as team members are happy and secure then they will work hard and self motivated.

The resulting atmosphere is usually friendly (very relaxed and fun), but not necessarily very productive (production suffers due to lack of direction and control).  Manager is almost incapable of employing the more punitive, coercive and legitimate powers. The style is common among leaders who are afraid of upsetting people, and/or who fear rejection and being disliked.

Affecting factor:

–          Usually subordinates come based on volunteerism (they may go if not satisfied, followers have the option to walk away).

–          Manager or Leader doesn’t have “stick or carrot” authority to reward and punish.

–          Manager or Leader still has little experience in leading team or manager less competence knowledge about project.

–          Subordinates more senior than the manager.

3.  Authority – Compliance management (9, 1) :

In good perspective this is the type of situational leadership directing. A directing leader is needed by followers who do lack both the skill and the motivation to perform a task.

But when this type of leaderships is not followed by healthy communication these types of leaderships go into harmful way. a high concern for production, and a low concern for people.

Produce or perish, controlling, direct and dominate, desired for control and mastery.

Manager who implement this leadership are very much task oriented and are hard on their workers (autocratic). There is little or no allowance for cooperation or collaboration. Heavily task oriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate. The manager is intolerant of what they see as dissent (it may just be someone’s creativity), so it is difficult for their subordinates to contribute or develop. Production oriented or task oriented.

Result will be high level of dissatisfaction and conflict within the group, high output is achievable in the short term (peak performance is short lived), much will be lost through an inevitable high labor turnover.

Affecting factor:

–          it can be effective in the short term, and interestingly, where a group is failing to react suitably to a serious crisis then it may actually be a viable style for a short period, but the approach is not sustainable.

–          These type leaderships will not suitable in volunteerism approach when followers have the option to walk away.

–          Manager has “stick and carrot” authority to give reward and punishment.

–          Subordinates or follower has little experience less competence knowledge about project.

–          Manager more senior than the subordinates.

4. Middle of the road (status quo) management (5, 5):

Balance and compromise.  Managers using this style try to balance between company goals and workers’ needs.

This style seems to be a balance of the two competing concerns. It may at first appear to be an ideal compromise. Therein lies the problem, though: When you compromise, you necessarily give away a bit of each concern so that neither production nor people needs are fully met.

Leaders who use this style settle for average performance and often believe that this is the most anyone can expect. Medium Production/Medium People. The leader does not push the boundaries of achievement resulting in average performance for organization.

5. Team (sound) management (9, 9):

Contribute and commit, High Production/High People. In this style, high concern is paid both to people and production. As suggested by the propositions of Theory Y, managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel themselves to be constructive parts of the company.

According to the Blake Mouton model, this is the pinnacle of managerial style. These leaders stress production needs and the needs of the people equally highly. The premise here is that employees are involved in understanding organizational purpose and determining production needs. When employees are committed to, and have a stake in the organization’s success, their needs and production needs coincide. This creates a team environment based on trust and respect, which leads to high satisfaction and motivation and, as a result, high production. The leader feels that empowerment, commitment, trust, and respect are the key elements in creating a team atmosphere which will automatically result in high employee satisfaction and production.

This style normally requires that followers/the group are suitably mature and skilled for a high level of involvement. The style is difficult to use, and may be inadvisable, when leading inexperienced people to produce challenging and vital results in a new or strange area.

Criticism from James Scouller:

“Adopting the Team Style of leadership will not always be appropriate – for example at times of major crisis when the task is necessarily more important than people’s/worker’s interests, or when leading very inexperienced people towards a tough aim and tight deadline, who under such circumstances normally require very direct and firm instruction. “

“Also, concerning the leader’s own personality make-up, not every leader can or will adopt the ideal Team Style, even after training, because of inner psychological blocks or basic personality. Some leaders are simply much more skilful in ‘non-people’ areas, such as strategy, visioning, building systems and structures, innovating, etc., than they are when relating to others. It is not sensible to imply that such leaders, many of whom can very effectively delegate the people/team aspects of leading, are not good leaders.”

6. The Opportunistic management:

Exploit and manipulate. They adopt whichever management style offers the greatest personal benefit. Persuade others to support results that offer private benefit. If others also benefit, that’s even better in gaining support. Relying on whatever approach is needed to secure an advantage.

7. The Paternalistic Management:

Prescribe and guide. It was redefined to alternate (swings between two extremes) between the Country Club (1, 9) and Authority Compliance (9,1) locations on the grid. Managers using this style praise and support, but discourage challenges to their thinking. There is a need to control and dominate and resistance is met with punishment. At the other extreme compliance is reinforced by recognition and appreciation. Limiting others ability to contribute, provide leadership by defining initiatives for others and offer praise and appreciation for support and discourage challenges to their thinking.

Practical Implementation:

If your company is in the midst of a merger or some other significant change, it is often acceptable to place a higher emphasis on people than on production. Likewise, when faced with an economic hardship or physical risk, people concerns may be placed on the back burner, for the short-term at least, to achieve high productivity and efficiency.

References:

1. Mind Tools. (2013). The Blake Mouton Managerial Grid. Accessed July 26, 2013 from http://www.mindtools.com/pages/article/newLDR_73.htm

2. Zeidan, Hania. (2009). The Blake Mouton Managerial Grid. Retrieved July 26, 2013 from http://www.lacpa.org.lb/Includes/Images/Docs/TC/TC409.pdf

3. managementstudyguide. (2013). Blake and Mouton’s Managerial Grid. Accessed July 26, 2013 from http://www.managementstudyguide.com/blake-mouton-managerial-grid.htm

4. bumc.bu.edu. (2013). The Blake and Mouton Managerial Grid Leadership Self Assessment Questionnaire. Retrieved July 26, 2013 from http://www.bumc.bu.edu/facdev-medicine/files/2010/10/Leadership-Matrix-Self-Assessment-Questionnaire.pdf

5. Koponen, Maritza. (2013). The Blake Mouton Managerial Grid. Accessed July 26, 2013 from http://www.slideshare.net/mkoponen14/blake-and-moutons-managerial-grid

6. Van Eersel. F.M. (2013). Managerial Grid (Blake and Mouton). Accessed July 26, 2013 from http://www.12manage.com/methods_blake_mouton_managerial_grid.html

7. coachingcosmos. (2013). The Blake Mouton Managerial Grid. Accessed July 26, 2013 from http://coachingcosmos.com/34.html

8. leadership-central. (2013). Managerial Grid Model – Also known as Leadership Grid. Accessed July 26, 2013 from http://www.leadership-central.com/managerial-grid.html#axzz2ZScbxN9K

9. Dr. IAJ. (2011). How the Leadership Managerial Grid works. Accessed July 26, 2013 from http://driaj2009.blogspot.com/2011/05/how-leadership-managerial-grid-works.html

10. Chapman, Alan. (2013). leadership theories. Accessed July 26, 2013 from http://www.businessballs.com/leadership-theories.htm

11. Rehmat, Nadeem. (2012). Leadership Grid – Power to Change. Accessed July 26, 2013 from http://www.slideshare.net/NadeemRehmat/leadership-grid-power-to-change-by-nadeem-rehmatat

12. S. Wrench, Jason. (2013). Approaches to Leadership. Accessed July 26, 2013 from http://2012books.lardbucket.org/books/organizational-communication-theory-research-and-practice/section_09_01.html

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Volunteer_3_DI_Motivation/Incentives (Behavioral Science) Part IV


Likert’s Management Systems are management styles developed by Rensis Likert in the 1960s. He outlined four systems of management to describe the relationship, involvement, and roles of managers and subordinates in industrial settings as shown in Figure 1.

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Figure 1 – Rensis Likert four management systems1

References:

1. Tipyx. (2012). Typology of management style by Rensis Likert. Accessed July 11, 2013 from http://stripgenerator.com/strip/621434/typology-of-management-style-by-rensis-likert/view/all/

2. shkaminski.com. (2001). Likert’s Four Systems. Accessed July 11, 2013 from http://www.shkaminski.com/Classes/Handouts/Perspectives%20on%20OrgComm.htm

3. changeminor. (2008). Likert. Accessed July 11, 2013 from http://changeminor.wordpress.com/2008/10/23/likert/

4. change.freeuk. (2013). Systems 1 to 4. Accessed July 11, 2013 from http://www.change.freeuk.com/learning/business/systems1to4.html

5. ofs.edu.sg. (2013). Rensis Likert’s four management styles (1967). Accessed July 11, 2013 from http://www.ofs.edu.sg/BACCpacks/Human_resources_student/page_80.htm

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Volunteer_3_DI_Motivation/Incentives (Behavioral Science) Part III


Theories of action: theory in use and espoused theory Chris Argyris and Donald Schön  (1974)

1.  Espoused Theory & Theory-in-Use  (We are All Liars4)

One of famous theory of Argyris is the theory-in-action concept. There is a clear gap between what individuals say they want to do (espoused theory) and what they actually do (theory-in-use). People always behave consistently with their mental models (theory-in-use) even though they often do not act in accordance with what they say (espoused theory).

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Figure 1 – Split between theory and action2

Without any doubt in times of transition and change people are constantly eaten by dilemmas of how they should behave what they should believe.

It helps to be aware of this duality in order to understand the dynamics of what is happening below the surface. In order to effectively come to grips with new situations, the espoused theories need to be aligned with the theories in use.

Original Description of Argyris and Schon suggest that two theories of action:

  • Espoused Theory: The words we use to convey what we do, or what we would like others to think we do. The espoused theory of action for that situation is the answer he usually gives when someone is asked how he would behave under certain circumstances.  This is the theory of action to which he gives allegiance, and which, upon request, he communicates to others.
  • Theory-in-useThe theory that actually governs his actions is his theory-in-use.  They govern actual behavior and tend to be tacit structures.  Their relation to action, ‘is like the relation of grammar-in-use to speech’; they contain assumptions about self, others, and environment – these assumptions constitute a microcosm of science in everyday life.

2. Single Loop and Double Loop Learning

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Figure 2 – Original Chris Argyris and Donald Schön single loop and double loop learning

model2

AL-2 Figure 3 –single loop and double loop learning description3

There is a difference between “doing things the right way” and making sure that you are “doing the right things”. It’s a different kind of thinking. Argyris refers to this as ‘single loop’ versus ‘double loop’.

double-loop-learning

Figure 3 – Doing Things Right vs. Doing the Right Things6

Single-loop learning is like a thermostat that learns when it is too hot or too cold and turns the heat on or off. The thermostat can perform this task because it can receive information (the temperature of the room) and take corrective action.

Double-loop learning occurs when an error is detected and corrected in ways that involve the modification of an organization’s underlying norms, policies and objectives. Double loop learning uses feedback from past actions to question assumptions underlying current views. Double loop learning is exactly what you do when you work yourself or your organization through a change.

Well here are some Action Learning questions to help you achieve some double loop learning:

  • What am I trying to do?
  • What is stopping me from doing it?
  • What can I do about it
  • Who knows what I am trying to do?
  • Who else can do anything to help?

3. We see the World as We are (Not as it is)4

Argyris was the first to introduce the ladder of inference (Peter Senge made extensive use of this concept in the The Fifth Discipline). This is a model of how people process information and assign meaning. In other words: ‘how we make sense’. It can described by example in Figure 4.

fig1

Figure 4 – ladder of inference5

4. Theory of immaturity to Maturity stages

Chris Argyris also developed the Theory of Immaturity-Maturity. Individuals progress at different rates from the total immaturity of early childhood (being passive, dependent, shallow, limited activity) to maturity (active, independent, deeper thoughts, more varied interests). Most organizations have bureaucratic or pyramidal values that foster immaturity in workers and “in many cases, when people join the workforce, they are kept from maturing by the management practices utilized in their organizations”.

Argyris’s Immaturity-Maturity Theory is the most intriguing of these motivational theories. Unfortunately, most organizations still adopt the bureaucratic or pyramidal style of leadership. This authoritarian style often resembles a family with a dominating parent (management) exercising almost total control over the children (employees). It is no wonder in these environments that trust and creativity are rare. There are exceptions however. The leadership of the author’s employer, the Young Women’s Christian Association (YWCA) of Nashville, values employees and treats them with respect. As a result, YWCA staff members are more independent and have room to grow.

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Figure 5 – Chris Argyris Value System Organization with Maturity Theory

It is easy to apply this theory to many circumstances outside the workplace.

  • Families in which parents are either over-protective or, on the other extreme, do not protect their children at all may have offspring who are immature and have trouble forming long-term relationships.
  • Governments with strong central authority where people have little personal freedom usually have citizens who are dependent financially and psychologically.
  • Schools where rigid rules are more important than the free flow of ideas will probably graduate students with narrow views and a lack of creativity.

It is obvious that human beings flourish only when they are in an environment with trust, support and independence.”

The fact that bureaucratic/ pyramidal values still dominate most organizations, according to Argyris, has produced many of our current organizational problems.

According to Argyris, seven changes should take place in the personality of individuals if they are to develop into mature people over the years.

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Figure 6 – Chris Argyris Seven Stages Immaturity to Maturity

Maturity Theory Implementation in organization

1. Passivity to activity

  • Managers should be able to detect which employees possess this “change” and use it to the advantage of the company. Allowing these employees to take on more tasks and responsibilities to ensure maximum productivity.
  • Managers should build relationships with employees and get to know them on a more personal basis, in which they could assess their skills and interests and direct them to tasks and responsibilities that would be beneficial to the employee and the company / business.

2. Dependence to independence

This “change” strays away from the classic managerial style which is inconsistent with present adult personalities, and heads in Argyris’ direction of allowing more task and responsibility to be given to employees to inhibit adult maturation in the workplace.

  • Managers should always keep an open door to their office for those employees who still need guidance as well ass allow them to accomplish tasks and responsibilities on their own without being restricted to the office.

3. Few behaviors to many behaviors

As infants our only knowledge of how to act/behave is typically happy/good, sad, angry/bad, during the transition from infant to adult we have learned the many ways to act/behave. This “change” is also essential to managers as they want an employee who is capable of acting maturely in any given situation whether they are happy with it or not.This capability of behaving in many ways creates trust and respect between managers and employees and give both the opportunity to further develop the relationship and possibly success of the business/company.

  • Managers shouldn’t restrict the jobs of employees to the desk but be able to include them in important meetings and decision making of the company.

4. Shallow interests to deep interests

In argyris theory he suggest that managers who treat their employees as mature adults tend to show more interest in their jobs. Managers who are aware of this “change” within their employees can use this to the advantage of the company/business, in which they can use these further developed interests to benefit the company/business. If a manager were to use the interests of their employees and assign tasks and responsibilities based on this, they would be done more accurately and effectively.

  • As well as employee happiness would increase within the workplace as employees would enjoy what they are doing. Managers should experiment with small work tasks when assigning them to employees to discover what interests each individual.

5. Short-term perspective to long-term perspective

  • Although a managers job is to loosen the reins and have more employee involvement within the company / business. –             A manager wants to be able to be updated and stay on track of the work of their employees. It would be beneficial to a manager working under this theory to keep an organizer such as a smart phone or day planner /calendar to keep themselves updated on the work of their employees, to keep track of any finished or unfinished task and / or responsibilities.

6. Subordination to equality or superiority

This change suggest that as infants we possess a subordinate position (less important) and develop into equal or superior positions as we mature into adults.

  • Managers working under this theory should ensure that they don’t take advantage of the role title “manager”, in which they’re the boss who makes all the decisions has all the ideas and tell everyone what to do. Instead a manager should look at themselves more as a part of a team (equal part) in which the ideas and responsibilities are shared between manager and employees. A manager should essentially ensure equality within the workplace.

7. Non self-awareness to self-awareness/self-control.

During childhood, individuals are not aware of the need to control the way they act based on the way they feel. As adults we have become fully aware of ourselves and are capable to not act based on how we feel, but act appropriately based on the situation.

  • A manager working under this theory should be aware of the behaviors of their employees and should compliment, award or make notice to said employee about ability or inability to control their feelings and act in a respectful and mature manner in the workplace. Simple gestures such as “Employee of the Month” awards can encourage others to follow in the footsteps of the noticed employee and increase productivity and keep good moods up.

Argyris Maturity Theory Practical in Organization

  • Argyris believed that managers should alter supervisory styles to permit more team participation and stimulate relationships, to accomplish this managers should organize work retreats and team building exercises, which will involve the participation of all employees as well as the manager themselves all working as equals to create better and stronger relationships.
  • He believed that the miscommunication between employees mature adult personality and outdated management practices to be the blame for employee absence and lack of interest or motivation, managers working under this theory should keep an open door or email for any employees with questions or confusion they may have, this will reassure their employees that you actually care about the work that your employee does for the company and are always there to help guide them in the right direction.
  • Chris Argyris also believed that management practices should be consistent with the mature adult personality, meaning that a manager working under this theory should be able to change their managerial styles to accommodate the employees mature adult personality instead of having them having to change to accommodate their practices this will ensure employee encouragement and development within the workplace and that your company is open to change.

Maturity  Attitudes

According to Argyris, whenever an employee with high maturity level is before a situation tends to take one of three attitudes:

  • Escape: reflects into resignation, absenteeism, etc.
  • Fight: through structures like unions or even through an informal organization.
  • Adaptation: is the most common reaction and consists in developing an apathy and indifference attitude, in which the monthly salary represents compensation for the “punishment” that the work represents.

References:

1. Smith, M. K. (2001). Chris Argyris: theories of action, double-loop learning and organizational learning. Accessed July 8, 2013 from http://infed.org/mobi/chris-argyris-theories-of-action-double-loop-learning-and-organizational-learning/

2. loopn.net (2013). THEORIES OF ACTION: THEORY-IN-USE AND ESPOUSED THEORY. Accessed July 8, 2013 from http://www.lopn.net/TheoryofAction.html

3. Bryant, Andrew. (2009). Reflecting and Learning: 2009 to 2010. Accessed July 8, 2013 from http://www.selfleader.com/blog/coaching/reflecting-and-leaning-2009-to-2010/

4. Galoppin, Luc. (2009). What about Chris Argyris? Accessed July 8, 2013 from http://www.reply-mc.com/2009/10/26/what-about-chris-argyris/

5. thehrpractice. (2013). Ladder of Inference. Accessed July 8, 2013 from http://www.thehrpractice.in/prerana/v5i1/

6. Falle, Rainer. (2013). Doing Things Right vs. Doing the Right Things. Accessed July 8, 2013 from http://bsix12.com/double-loop-learning/

7. accel-team.(2013).Human Relations Contributors Chris Argyris. Accessed July 16, 2013 from http://www.accel-team.com/human_relations/hrels_06i_argyris.html

8. accel-team.(2013).Human Relations Contributors Maturity Theory. Accessed July 16, 2013 from http://www.accel-team.com/human_relations/hrels_06ii_argyris.html

9. know.net.(2008). Argyris Maturity Theory. Accessed July 16, 2013 from http://www.knoow.net/en/sceconent/management/argyris_maturity_theory.htm

10. business.com.(2013). Management Theory of Chris Argyris. Accessed July 16, 2013 from  http://www.business.com/guides/management-theory-of-chris-argyris-7633/

11. Aquino, Melvin. (2013). Argyris theory of adult personality. Accessed July 16, 2013 from  http://prezi.com/rzsttxcj8zuk/copy-of-argyris-theory-of-adult-personality/

12. Aquino, Melvin. (2013). Chris Argyris presentation. Accessed July 16, 2013 from  http://prezi.com/jubabtit0j55/copy-of-chris-argyris-presentation/

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Volunteer_3_DI_Motivation/Incentives (Behavioral Science) Part II


Continuing from Volunteer_3_DI_Motivation/Incentives (Behavioral Science) Part I, some reference about  Theory X  and Theory Y Management Style.  As part of required skills and knowledge of cost engineering based on AACEI it include Motivation/Incentives (Behavioral Science) which will be shared here from some of good references.

Douglas Murray McGregor Management Style

theoryxy

Figure 1 – McGregor Theory X Y 1

McGregor identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, which he called theory X and theory Y, respectively.

Theory Y is the practical application of Dr. Abraham Maslow’s Humanistic School of Psychology, or Third Force psychology, applied to scientific management. Theory Y, the organization is trying to create the most symbiotic relationship between the managers and workers, which relates to Maslow’s needs for self-actualization and Esteem. For self-actualization, the manager promotes the optimum workplace through morality, creativity, spontaneity, problem solving, lack (or minimization) of the effects of prejudice, and acceptance of facts.

Theory X and Theory Y have to do with the perceptions managers hold on their employees, not the way they generally behave. It is attitude not attributes.

 

Theory X (‘authoritarian management’ style)

Theory X assumptions are these individuals dislike their careers. Theory X people have to be supervised.

Theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed.

  • In this theory, which has been proven counter effective in most modern practice
  • One major flaw of this management style is it is much more likely to cause diseconomies of scale in large business (forces that cause larger firms and governments to produce goods and services at increased per-unit costs)

Management assumption

–  Employees lazy

–  Employees will avoid work if they can

–  Employees inherently dislike work

Management Action

– workers need to be closely supervised and comprehensive systems of controls developed

– establish hierarchical structure with narrow span of control at each and every level

– theory X managers rely heavily on threat and coercion to gain their employees’ compliance

–  X manager tends to believe that everything must end in blaming someone

–  managers feel the sole purpose of the employee’s interest in the job is money

–  blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame.

Effect on Employee

– show little ambition without an enticing incentive program

– will avoid responsibility whenever they can

Working Conditions

– distrust

– highly restrictive supervision

– a punitive atmosphere

Theory Y (‘participative management’ style)

Theory Y assumptions are individuals like their careers and are willing to take part in responsibility. Theory Y people don’t need supervision and can be expected to turn good productive value in their jobs.

Management assumption

–  employees may be ambitious

–  employees may be self-motivated

–  employees may be exercise self-control

–  employees enjoy their mental and physical work duties

–  work is as natural as play

–  employees possess the ability for creative problem solving

–  the satisfaction of doing a good job is a strong motivation

Management Action

–  given the right conditions, most people will want to do well at work, creating a comfortable environment in which subordinates can develop and use their abilities

–  managers communicating openly with subordinates

–  minimizing the difference between superior-subordinate relationships

Working Conditions

– Sharing of decision making so that subordinates have say in decisions that influence them.

“how to manage upwards – managing your X theory boss

Working for an X theory boss isn’t easy – some extreme X theory managers make extremely unpleasant managers, but there are ways of managing these people upwards. Avoiding confrontation (unless you are genuinely being bullied, which is a different matter) and delivering results are the key tactics.

  • Theory X managers (or indeed theory Y managers displaying theory X behavior) are primarily results oriented – so orientate your own discussions and dealings with them around results – i.e. what you can deliver and when.
  • Theory X managers are facts and figures oriented – so cut out the incidentals, be able to measure and substantiate anything you say and do for them, especially reporting on results and activities.
  • Theory X managers generally don’t understand or have an interest in the human issues, so don’t try to appeal to their sense of humanity or morality. Set your own objectives to meet their organizational aims and agree these with the managers; be seen to be self-starting, self-motivating, self-disciplined and well-organized – the more the X theory manager sees you are managing yourself and producing results, the less they’ll feel the need to do it for you.
  • Always deliver your commitments and promises. If you are given an unrealistic task and/or deadline state the reasons why it’s not realistic, but be very sure of your ground, don’t be negative; be constructive as to how the overall aim can be achieved in a way that you know you can deliver.
  • Stand up for yourself, but constructively – avoid confrontation. Never threaten or go over their heads if you are dissatisfied or you’ll be in big trouble afterwards and life will be a lot more difficult.
  • If an X theory boss tells you how to do things in ways that are not comfortable or right for you, then don’t questioning the process, simply confirm the end-result that is required, and check that it’s okay to ‘streamline the process’ or ‘get things done more efficiently’ if the chance arises – they’ll normally agree to this, which effectively gives you control over the ‘how’, provided you deliver the ‘what’ and ‘when’.

And this is really the essence of managing upwards X theory managers

 – focus and get agreement on the results and deadlines

 – if you consistently deliver, you’ll increasingly be given more leeway on how you go about the tasks, which amounts to more freedom.

 Be aware also that many X theory managers are forced to be X theory by the short-term demands of the organization and their own superiors – an X theory manager is usually someone with their own problems, so try not to give them any more.”

 

Theory z – William Ouchi / based on 14 Key Principles Dr. W. Edwards Deming’s

For Ouchi, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Ouchi, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.

Theory Z essentially advocates a combination of all that’s best about theory Y and modern Japanese management, which places a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in team-working and the organisation.

Ironically, “Japanese Management” and Theory Z itself were based on Dr. W. Edwards Deming’s famous “14 points Key Principles”

Deming offered fourteen key principles to managers for transforming business effectiveness. The points were first presented in his book Out of the Crisis. Although Deming does not use the term in his book, it is credited with launching the Total Quality Management movement.

  1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive, stay in business and to provide jobs.
  2. 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 to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place.
  4. End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust.
  5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
  6.  Institute training on the job.
  7. Institute leadership. The aim of supervision should be to help people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.
  8. Drive out fear, so that everyone may work effectively for the company. Break down barriers between departments. People in research, design, sales, and production must work as a team, in order to foresee problems of production and usage that may be encountered with the product or service.
  9.  Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
  10. a. Eliminate work standards (quotas) on the factory floor. Substitute with leadership.

b. Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership.

11. a. 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.

b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objectives .

12. Institute a vigorous program of education and self-improvement.

13. Put everybody in the company to work to accomplish the transformation. The transformation is everybody’s job.

“Massive training is required to instill the courage to break with tradition. Every activity and every job is a part of the process.”

Theory X, Y and Z can be summarized in Figure 2 and Figure 3 below.

7-16-2013 9-14-19 PM

Figure 2 – Theory X, Y and Z compared together2

800B%20XYZ

Figure 3 – Theory X, Y and Z illustration3

References:

1. businessballs.(2012). douglas mcgregor – theory x y. Accessed July 1, 2013 from http://www.businessballs.com/mcgregor.htm

2. umich.edu.(2012). Theory X Y and Z. Accessed July 16, 2013 from http://www.umich.edu/~psycours/360/lec_07/sld007.htm

3. monapihl.se.(2012). Lean drawings .Accessed July 16, 2013 from http://www.monapihl.se/w_gallery91.htm

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W19_AK_CPM and PERT analysis


1.Problem Definition

We have a project for new server monitoring installation for one of the biggest operator in Indonesia.  We want to create CPM schedule for this project and find out also which path become the critical path.

Please find below list installation activity :

W19-P1

Please find below the activity breakdown structure :

W19-P2

2.Feasible alternatives

We want to analyze the schedule by using this two method :

  • CPM
  • PERT

3. Develop the outcomes

# Activity Path

We try to create the activity path base on the duration time on the previous table to find out the critical path. Please find below the activity path :

P19-P3

# Define the critical path

Four statement will always be true about critical path :

  • It is the longest path in the network
  • It is the path that define the earliest completion date of the project
  • It is usually the path with the least total float
  • It is the path on which any activity expansion or delay will lengthen the total project duration

So by definition above, we can find the critical path is :

Critical Path : B-D-F-G-J-K-L-M-N

Based on our experiences then we can make up the data for low duration, most likely duration and high duration :

W19-P5

# Using CPM Approach

The step involve in assessing the risk of schedule are as follow :

  • Create a complete CPM network
  • Develop three duration estimates (optimis, pessimistic and most likely) for each activity.
  • Identify the duration for all activities
  • Evaluate the result (estimate completion date and identified the highest risk path)
  • Initiate status monitoring

CPM Formula (with triangular distribution):

Expected duration : (Low + Most Likely + High)/3

W19-P4

4. Select Acceptable Criteria

# Using PERT Method

PERT was develop as formal technique by US Navy program in 1958.  PERT was intended not so much to manage a project better , but to determine the mean(average) and standard deviation of the completion date of the project. The basic concept is the pert critical path uses average duration based on the range of possible durations. Pert recalculate activity durations to incorporate the full range of possible duration.

Please find below PERT Formula :

a = best case

m = most likely

b = worst case

te = Expected time = (a + 4m + b)/6

Ϭ = standard deviation = (b – a)/6

Ϭ2 = variance

W19-P6

Base on the table, we can find result as below : (Path :B-D-F-G-J-K-L-M-N)

Ϭ = √0.25+0.09+0.25+0.09+0.09+0.25+0.09+0.36+0.09 = 1.24 round up to 1.5 days

Total Expected time become te = 20

bell-curve

5.  Compare the outcome

# CPM Table

The table summarizes the information from the CPM and risk analysis for duration of critical path, the most likely estimate is 19 days . The risk assessment show that the average duration is 21 days, an “expected” or average schedule slippage of 2 days.

Result of risk analysis :

  • The CPM path duration is not the most likely
  • The most likely duration is 19 days
  • The average duration is 21 days

# PERT Table

Path B-D-F-G-J-K-L-M-N , means that probability that this path shows that it is 68% likely that the project will take between 18.5 and 20 days. It also mean that is is 84% likely (50% + 34%) that this path will be complete within 21.5 days and 97.5% likely (50% + 34% + 13.5%) that it will be complete within 23 days.

6. Best criteria from mimimum

# From CPM by triangular distribution

By triangular distribution, in general it is good assumption and easy distribution to use.  It clearly provide information about risk analysis. That’s why CPM is a the beginning of a complete scheduling exercise not the end result.

# Pert Data

Because we have experience on this project then we can calculate  for low, most likely and high data for the critical path. I think we can use pert for this project, because we have experience data about it and also this Beta distribution is not as risky as the CPM triangular method.  This method will weight all tree values equally , Average in PERT : (Low + 4xMost Likely +High)/6

7. Performance monitoring and post result

We must really take concern on the activities that lies on the critical path, as we know that in some activities management want that the activities finish on the “low time” which is different with our experiences, the activities usually finished on the “most likely time”. We must really take performance and control on those activities.

8. Conclusion

Because I just do analyze using CPM and PERT, then I just made summary about the two method. Please find below about it :

W19-conclusion

References

Critical Path Analysis and PERT Charts, Planning & scheduling more complex projects . Retrieved from http://www.mindtools.com/critpath.html. 

Pert and CPM. Retrieved from http://cacareer.weebly.com/uploads/2/0/4/0/2040831/cpm__pert.pdf , web 29 june 2013

Acuna, R. (2009) , ANALYSIS OF PROJECT PLANNING USING CPM AND PERT , In Partial Fulfillment of Math 4395-Senior Project. Retrieved from http://cms.uhd.edu/faculty/redlt/leoaseniorproject.pdf.

Dwivedi, U. Critical Path Method and Critical Chain Project Management , retrieved from http://www.refresher.com/CriticalChainProjectManagement.pdf , web 29 njune 2013.

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Volunteer_3_DI_Motivation/Incentives (Behavioral Science) Part I


As part of required skills and knowledge of cost engineering based on AACEI it include Motivation/Incentives (Behavioral Science) which will be shared here from some of good references.

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Figure 1 – Required Skills and Knowledge of Cost Engineering7

Motivation2 as the force that Energizes, Directs, and Sustains behavior.

  • Energies Behavior– What initiates a behavior, behavioral pattern, or a change in behavior? What determines the level of effort and how hard a person works? This aspect of motivation deals with the question of “What motivates people?” It attempts to explain the amount of effort or energy and individual puts into a task.
  • Directs Behavior– What determines which behaviors an individual chooses among the alternative actions, behaviors, or problem solutions? This aspect of motivation deals with the question of choice and conflict among competing behavioral alternatives. It deals directly with the direction of one’s effort.
  • Sustains Behavior– What determines an individual’s level of persistence with respect to behavioral patterns? Why do some individuals keep working at something long after others have quit? This aspect of motivation deals with how behavior is sustained and stopped. It deals with the persistence and consistency of behavior.

1. Abraham Maslow’s Hierarchy of Needs motivational model

Maslow's_Hierarchy_of_Needs.svg

Figure 2 – Hierarchy of needs3

Each of us is motivated by needs. Our most basic needs are inborn, having evolved over tens of thousands of years. Abraham Maslow’s Hierarchy of Needs helps to explain how these needs motivate us all.

Maslow’s Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself.

Only when the lower order needs of physical and emotional well-being are satisfied are we concerned with the higher order needs of influence and personal development.

Conversely, if the things that satisfy our lower order needs are swept away, we are no longer concerned about the maintenance of our higher order needs.

Maslow’s original Hierarchy of Needs model was developed between 1943-1954, and first widely published in Motivation and Personality in 1954. At this time the Hierarchy of Needs model comprised five needs. This original version remains for most people the definitive Hierarchy of Needs.

maslow's_hierarchy_businessballs

Figure 3 – Maslow’s hierarchy of needs1

Physiological / Biological – health, fitness, energizing mind and body, etc.

Safety – order and structure needs met for example by some heavily organized, structural activity

Belongingness – team sport, club ‘family’ and relationships

Esteem – competition, achievement, recognition

Self-Actualization drivers – challenge, new experiences, love of art, nature, etc.

Examples in use:

You can’t motivate someone to achieve their sales target (level 4) when they’re having problems with their marriage (level 3).

You can’t expect someone to work as a team member (level 3) when they’re having their house re-possessed (level 2).

interpreting behavior according to Maslow’s hierarchy of needs:

For example: the common broad-brush interpretation of Maslow’s famous theory suggests that that once a need is satisfied the person moves onto the next, and to an extent this is entirely correct. However an overly rigid application of this interpretation will produce a rigid analysis, and people and motivation are more complex. So while it is broadly true that people move up (or down) the hierarchy, depending what’s happening to them in their lives, it is also true that most people’s motivational ‘set’ at any time comprises elements of all of the motivational drivers. For example, self-actualizers (level 5 – original model) are mainly focused on self-actualizing but are still motivated to eat (level 1) and socialize (level 3). Similarly, homeless folk whose main focus is feeding themselves (level 1) and finding shelter for the night (level 2) can also be able it to a lesser extent, still concerned with social relationships (level 3), how their friends perceive them (level 4), and even the meaning of life (level 5 – original model).

Like any simple model, Maslow’s theory not a fully responsive system – it’s a guide which requires some interpretation and thought, given which, it remains extremely useful and applicable for understanding, explaining and handling many human behavior situations.

  • Self-actualization, employees and organizations

Maslow’s work and ideas extend far beyond the Hierarchy of Needs.

Maslow’s concept of self-actualization relates directly to the present day challenges and opportunities for employers and organizations – to provide real meaning, purpose and true personal development for their employees. For life not just for work.

Maslow saw these issues fifty years ago: the fact that employees have a basic human need and a right to strive for self-actualization, just as much as the corporate directors and owners do.

Increasingly, the successful organizations and employers will be those who genuinely care about, understand, encourage and enable their people’s personal growth towards self-actualization – way beyond traditional work-related training and development, and of course way beyond old-style X-Theory management autocracy, which still forms the basis of much organized employment today.

The best modern employers and organizations are beginning to learn at last: that sustainable success is built on a serious and compassionate commitment to helping people identify, pursue and reach their own personal unique potential.

When people grow as people, they automatically become more effective and valuable as employees.

In fact virtually all personal growth, whether in a hobby, a special talent or interest, or a new experience, produces new skills, attributes, behaviors and wisdom that is directly transferable to any sort of job role.

The best modern employers recognize this and as such offer development support to their staff in any direction whatsoever that the person seeks to grow and become more fulfilled.

2. Frederick Herzberg Motivator-Hygiene Theory (The Dual Structure theory) – Two factor theory of job satisfaction.

Motivator Factors Hygiene Factor
Achievement Company Policy and Administration
Recognition Supervision—technical
Work Itself Salary
Responsibility Supervision—personal
Promotion / Advancement Working Conditions
Personal Growth Fringe benefits
Interpersonal relations with subordinates, superior and peers.
Job Security
Personal Life

Table 1 – Herzberg Motivator-Hygiene factors6

The two-factor theory (also known as Herzberg’s motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. job satisfaction and job dissatisfaction act independently of each other.

Two-factor theory distinguishes between:

  • Motivators that give positive satisfaction, arising from intrinsic conditions of the job itself
  • Hygiene factors that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself

hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed to motivate an employee to higher performance.

3

Figure 4 – Herzberg’s motivators and hygiene factors4

Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related action because you have to then that is classed as “movement”, but if you perform a work related action because you want to then that is classed as “motivation”.

According to Herzberg, Man has two sets of needs; one as an animal to avoid pain, and two as a human being to grow psychologically.

Although Herzberg is most noted for his famous ‘hygiene’ and motivational factors theory, he was essentially concerned with people’s well-being at work. Underpinning his theories and academic teachings, he was basically attempting to bring more humanity and caring into the workplace. He and others like him, did not develop their theories to be used as ‘motivational tools’ purely to improve organisational performance. They sought instead primarily to explain how to manage people properly, for the good of all people at work.

Herzberg’s research proved that people will strive to achieve ‘hygiene’ needs because they they are unhappy without them, but once satisfied the effect soon wears off – satisfaction is temporary. Then as now, poorly managed organisations fail to understand that people are not ‘motivated’ by addressing ‘hygiene’ needs. People are only truly motivated by enabling them to reach for and satisfy the factors that Herzberg identified as real motivators, such as achievement, advancement, development, etc., which represent a far deeper level of meaning and fulfilment.

Herzberg addressed money particularly (referring specifically to ‘salary’ in his study and analysis). Herzberg acknowledged the complexity of the salary issue (money, earnings, etc), and concluded that money is not a motivator in the way that the primary motivators are, such as achievement and recognition.

“Lots of other evidence is found in life, wherever you care to look. Consider what happens when people win big lottery prize winners.

While many of course give up their ‘daily grind’ jobs, some do not. They wisely recognise that their work is part of their purpose and life-balance.

Others who give up their jobs do so to buy or start and run their own businesses. They are pursuing their dream to achieve something special for them, whatever that might be. And whatever it means to them, the motivation is not to make money, otherwise why don’t they just keep hold of what they’ve got? Why risk it on a project that will involve lots of effort and personal commitment? Of course the reason they invest in a new business venture is that pursuing this sort of plan is where the real motivators are found – achievement, responsibility, advancement, etc – not money.

The people who are always the most unhappy are those who focus on spending their money. The lottery prize-winners who give up work and pursue material and lifestyle pleasures soon find that life becomes empty and meaningless. Money, and spending it, are not enough to sustain the human spirit. We exist for more.

Money is certainly important, and a personal driver, if you lack enough for a decent civilized existence, or you are striving for a house or a holiday, but beyond this, money is not for the vast majority of people a sustainable motivator in itself.”

4

Figure 5 – Maslow’s and Herzberg’s Ideas Compared5

Certain parallels can clearly be seen with Maslow in figure 4.

References:

1. businessballs.(2012). maslow’s hierarchy of needs. Accessed June 17, 2013 from http://www.businessballs.com/maslow.htm

2. Schmidt, Charles T.(2002). Work Motivation Overview. Accessed June 17, 2013 from

http://www.uri.edu/research/lrc/scholl/webnotes/Motivation.htm

3. Simons, Janet A.(1987).  MASLOW’S HIERARCHY OF NEEDS. Accessed June 17, 2013 from http://web.archive.org/web/20100211014419/http://honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm

4. businessballs.(2012). frederick herzberg motivational theory. Accessed June 25, 2013 from http://www.businessballs.com/herzberg.htm

5. whatishumanresource(2013). Herzberg two factor theory. Accessed June 25, 2013 from http://www.whatishumanresource.com/herzberg-two-factor-theory

6. Herzberg, Frederick. (1959). The Motivation to Work, New York: John Wiley and Sons, ISBN 978-1-56000-634-3

7. AACE.(2012). AACE International Recommended Practice No. 11R-88.West Virginia, United States of America: AACE International.

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