## 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/

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.

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

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

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?

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)

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

Project Control Professional

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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.

We lead when we manage a football team

or teach a classroom of children.

We lead our own children when we are parents,

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.

A vicar or preacher leads a congregation

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

A monarch and a president are both leaders

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

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.

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 :

• 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)

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

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)

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.

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.

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.

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.

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

– 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”

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”

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”

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:

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

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/

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

Posted in Volunteer_Delano | | 2 Comments

## Volunteer_3_DI_Motivation/Incentives (Behavioral Science) Part V

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:

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

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.

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).

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

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

model2

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’.

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.

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.

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.

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/

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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