The products lifecycle

DECLINE

- Low costs , falling sales and falling profits – maybe loss making

- Withdraw loss – making product

- Keep decline product if it makes a profit in a niche market

Extend lifecycle by:

-selling more to existing customers

-Market development : seek new customers

- product development: minor product modification

What is motivation>?

“the degree to which an individual wants and chooses to engage in certain

specified behaviours”

Needs ---- goals

Food- to eat at gourmet restraints

Friendship – to go out with the person

Mental stimulation- to do a particular job

Respect – to reach a certain level

NEEDS------ DRIVING FORCE -----GOALS

APPROACHES TO UNDERSTAND

CONTENT THEORIES

- What are people’s needs?

 - What goals do they pursue?

- What do they value as rewards?

PROCESS THEORIES

-COGNITIVE PROCESS

DYNAMIC RELATIONSHIP BETWEEN INFLUENCING FACTORS

HOW THE SYSTEM WORKS

Rewards- the strength of our motivation is governed by

Taylorism: “ economic mean”

Rewards

-Extrinsic rewards

-Intrinsic rewards

Rewards from work

- Extrinsic rewards

- Salary

- Benefits

- Holidays

- Promotion

- Work conditions

Instrinsic rewards

- Opportunity to use your ability

- Challenge and achievement

- Interesting work

- Receiving praise

- Recognition

- Acceptance and support

Maslow’s hierarchy of needs

Self actualisation

Self esteem

Love/ belonging

Safety/security

Physiological

As one level becomes satisfied, ne next becomes important

-PHYSIOLOGICAL

-good working conditions

-adequate wage and salary

-SAFETY

- safe working conditions

-A no redundancy policy

Belonging

- Christmas party

- Sports/ social club

- Open communication

ESTEEM

- Regular positive feedback

- Company cars

SELF- ACTUALIZATION

- Challenging work

- Career development

- Increased discretion

HERBERGS’S TWO FACTOR THEORY

MOTIVATORS+ SATISFACTION
HYGIENE FACTORS – DISSATISFACTION

MOTIVATORS

- Responsibility

- Growth

- Recognition

- Advancement

- Work itself

HYGIENE FACTORS

- Salary

- Security

- Status

- Company policy

- Working conditions

CONTENT THEORY- MCCLELLAND’S ACHIEVEMENT NEEDS THEORY

- Mcclelland’s research indicates three main types of need that motivate

people at work: the need for achievement , affiliation, power

- Most people are motivated by the predomination of one or more of these

needs

PROCESS THEORY _ EXPECTANCY THEORY

VICTOR VROOM - “our willingness to act is governed by our perception of

the value of any potential reward and our expectation that the action will
lead to the reward”.

How much extra effort shall I put into studying?

Do i think extra studying will result in higher marks?

How much do i value getting higher marks?

M= E *V
Process theory – EQUITY THEORY

Equity theory focuses on our perceptions about how fairly we have been
treated in comparision with others

We seek an equitable balance between inputs and outcomes

Inputs- time, skills, loyalty to org., effort, personal appearance, creativity

Outcomes – pay/ bonuses, status symbol, work environment, recognition,

job security, promotion.

If we think our ratio of inputs: outcomes is greater or less than another

person’s then we feel tension- anger or guilt

If we feel anger we then try to bring the ratio into balance by reducing our
input or seeking higher levels of outcome.

If we feel guilty we may increase input to try to justify and differential.

PROCESS THEORY _ GOAL SETTING THEORY

PRINCIPLES

-People aim to satisfy needs and strive to attain goals

- when people are given challenging goals, their belief about their ability
to achieve it is increased

- if we believe in our capacity to reach a goal we will be motivated to

achieve it

-if we believe the goal is beyond our capabilities we lose motivation and
may abandon the task.

- goals commitment is increased if the goal is made public.

 What is a group?

A group is a number of people who interact with one another, are

psychologically aware of one another, and perceives themselves to be a
group.

- A team is a group working towards common objectives... its members may

have distinct roles.

- It has some autonomy.

Why do people like working in groups?

- Synergy

- Natural unit

- Social interaction

- Democratic

- Freedom from supervision

- Share in management

- Multi- skilled

Formal and informal groups

 - Formal group

- Created to achieve tasks

- Structure to impose

Informal groups

- Arise from social processes

- Many have changing structure or leadership

- Members may work to support or undermine the goals of formal groups

Group cohesiveness

- Stable membership

- Members of similar status

- Common background

- Similar training, qualifications

- The right size

- Intergroup competition

- External threat

Stages of group development-

1 forming – uncertainity about purpose, structure and leadership. No, decision to

remain in group

2 storming – members resist group conformity. Challenge purpose of group,

conflict over leadership

3 norming – group structure is accepted. Normal group behaviour is established

4 performing – fully functioning . concerned with achieving task rather than

relationships

The behaviour groups at work

Team roles

-co- ordinator

-plant

Shaper

Resource investigator
Monitor- evaluator

Team worker

Implementer

Completer

Specialist

What can go wrong in terms?

Group think – when groups are highly cohesive they may become unreasonable
convinced taht their chosen course of action is right (even when its not)

Symptoms of groupthink: - there is a sense of group invulnerability , - there is

pressure on individual members to confirm, - they need to create an illusion of
unanimity may result in warnings being discounted.

RISKY- SHIGT PHENOMENON- groups have a tendancy to make decisions which

are riskier than those the members of the group would have recommended
individually

Possible reasons-

- Responsibility for consequences of decisions is shared

- Members who like risk may dominate the discussion

- In cultures where risk is valued, arguments which favour boldness,

courage and daring maybe highly regarded for reasons for social
conformity

THE BCG MATRIX

Questions marks

- High growth markets

- Low market share

 - Another product is current market leader

- Unlikely to be profitable

- High investment is required if a question mark is to become a market

leader

Stars

- Market leaders in growth markets

- Require investment to maintain market leadership in a growth market

- Are marginally profitab;e

Cash cows

- Are mature products

- In slower growth markets

- Need less investment

- Are most profitable products in a portfolio

- Are used to fund products in other quadrants

Dogs

-occupy no growth markets

- have low market share

- maybe previous cash cows

- maybe marginally profitable

- should be withdrawn before they become loss making