Module Code and Title:      MGT205 Motivation and Control Systems

Programme:                                      Bachelor of Business Administration

Credit Value:                                     12

Module Tutors:                                 Shreejana Pradhan, Enchu Lhamo,Dip Raj Pradhan,Kezang Wangchuk,Carl Wonder,Priyanka Sharma,Jeroen Uittenbogaard

Module Coordinator:                        Carl Wonder

General Objective: This module aims to develop students’ understanding of various motivational theories and different types of incentives to motivate employees of an organization. Students will examine and analyse both short-term and long-term incentives with their benefits and limitations. In addition, students will be provided strong grounding on various control systems used by organizations to implement business strategies.

Learning Outcomes – On completion of the module, students should be able to:

1. Design an appropriate mixture of motivation systems for a sample organization, consistent with its vision, mission and specific objectives
2. Identify types of incentives that are likely to be most effective in a particular sort of organization, and minimize undesirable outcomes
3. Design appropriate control systems for a sample business to assure measurement of achievement of the goals, and identify undesirable side effects from various incentives put in place
4. Identify when internal or external situations in specific business situations have changed in the way that will require modifications to the incentive systems and/or control systems to keep employees focused and productive in achieving corporate goals
5. Propose changes in the motivation and control systems in sample business situations either as market forces change or new technology is available
6. Identify budget variances in a sample organization
7. Analyse how collective human behaviour is shaped by what is happening in a business, and use that analysis to shape incentive and control systems
8. Evaluate changes in the relationships and structures in sample businesses that shape behaviour and experiences within a system

Teaching and Learning Approach:

Assessment Approach:

A. Case Studies: Portion of Final Marks-10%

Each student will complete 1 case study report of 800 words, based on current management issues in the news.

3%       defining the business problem presented by real situations

5%       reaching reasonable conclusions using appropriate motivation and control system analysis techniques

2%       answering questions based on the presentation

B. Role-playing, Class Discussion: Portion of Final Marks-20%

Each student will contribute to role playing and class discussions by answering questions, stating their opinions, and thoughts on various issues relating to motivation and control systems in an organization.

10%     role playing

7%       contributing to class discussion

3%       listening to and responding logically to the viewpoints of others

C. Project: Portion of Final Marks-20%

Select and analyse a business problem related to corporate world in a group of 4 using techniques taught in class. The paper will be approximately 2000 words, and include problem definition, data, analysis, conclusions and references.

2%       clear definition of a problem

3%       using appropriate analysis techniques

2%       gathering data and information from multiple sources

5%       analysis of the problem

3%       conclusion

5%       individually assessed process score (contribution to the group output)

D. Presentation: Portion of Final Marks-10%

There will be a presentation of 15 minutes per group and include slides. Each group will present to the class the findings of the research projects.

5%       group coordination and professionalism of presentation

5%       individually assessed presentation

Organization: 1%

Clarity: 1%

Persuasiveness: 1.5%

Comprehensiveness: 1.5%

E. Midterm Examination: Portion of Final Marks-15%

Students will take a written exam of 2-hour duration covering topics up to the mid-point of the semester.

F. Semester-end Examination: Portion of Final Marks-25%

The module will have a semester-end exam for 2 hours covering the entire syllabus. The question will be divided into two parts – Part A (carrying 40% of the exam weightage) will be mostly of short answer including objective questions. Part-B (carrying almost 60% of the exam weightage) will be mostly of essay type or an extended response to the given question. This part of the question requires students to apply, analyse, and evaluate or construct knowledge and skills. Cases will also be used to test the levels of knowledge.

Pre-requisites: MGT102 Management Theory and Practice

Subject Matter:

1. Introduction to Motivation and Control Systems
   • Overview of motivational theories: Hertzberg’s Two-Factor Theory, Maslow’s Hierarchy of Needs and Expectancy Theory
   • Control systems: Diagnostic control system and boundary control system
   • Striking a balance between motivating employees and using control systems to assure achievement of the organizational goals
   • Vision, mission and goals for the organizations

2. Incentive Systems, Benefits and Limitations
   • Short-term incentives: Salary, bonuses, promotions, trainings and recognition
   • Longer-term incentives: Promotion tied to performance, career path visibility, stock options, recognition, post-retirement benefits and contract renewal
   • Individual versus group incentives: relate to the nature of the work, group versus individual contribution/control toward achieving corporate goals, integration of functions and people within the organization
   • Gratuity, contact renewal bonus and other incentives to foster longevity in the organization
   • Designing appropriate incentives for organizations in Bhutan

3. Control Systems
   • Introduction to control systems
   • Effective organizational control systems: integration into established process, acceptance by employees, availability of information when needed and economic feasibility
   • Organizational control techniques: Financial control, budget control and human resource control
   • Organizational control objectives: effective plans, consistency in organizational activities, effectiveness and efficiency of organization, feedback on projects and decision making
   • Organizational control process: Establishment of standards to measure performance, measurement of actual performance, comparison of performance with standards, corrective measures
   • Types of organizational control systems: Fit forward, concurrent and feedback.
   • Study of control systems used in Bhutan
   • Use of meetings: set specific short-term goals; follow-up on action; coordination of team members; foster learning by younger/support staff
   • Carrot and stick theory: foster desired behaviours, minimize undesirable behaviours
   • Rewards for exceeding targets versus penalties for failures
   • Automatic consequences, versus negotiation about failures

4. Modifying Incentives and Control Systems
   • Reasons for modifying control systems
     • Controversies over assessment and incentives
     • Failure of system to foster desired behaviour
     • Distortion of incentives

Reading Lists:

1. Essential Readings
   • Course pack for MGT205 Motivation and Control Systems
   • Latham, G., P. (2011). Work motivation: History, theory, research and practice (2nd ed.). Sage Publications.
   • Thomas, K.W. (2009). Intrinsic motivation at work: What really drives employee engagement. Berrett-koehler Publishers.
   • Ankli, R.E., & Palliam, R. (2012). Enabling a motivated workforce: exploring the sources of motivation. Development and Learning in Organizations: An International Journal, 26(2), 7-10.
   • Hassard, J. (1991). Multiple paradigms and organizational analysis: A case study. Organization Studies,12(2), 27-299.
   • Normann, R. (1971). Organizational innovativeness: Product variation and reorientation. Administrative Science Quarterly, (2), 203-215.
   • Stringer, C., Didham, J., & Theivananthampillai, P. (2011). Motivations, pay satisfaction, and job satisfaction of front-line employees. Qualitative Research in Accounting and Management, 8(2), 161-179.
2. Additional Readings
   • Lund, B. (2003). Organizational culture and job satisfaction. Journal of Business & Industrial Marketing,18(3), 219-236.
   • Anthony, R., & Govindarajan, V. (2006). Management control systems (12th ed.). McGraw-Hill Education.
   • Merchant, K., & Stede. (2011). Management control systems (3rd ed.). Pearson.

Date: July, 2017