Leadership and Motivational Theories.

1. ORGANIZATIONAL LEADERSHIP
18MBAHR402
UNIT-3
LEADERSHIP BEHAVIOR AND MOTIVATION, AND
CONTINGENCY LEADERSHIP
4/17/202
0
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
1
ONLINE LEARNING SESSION -1

2. LEARNING OUTCOME
• Understanding the Leadership Behavior and Trait.
• Understanding the Styles of Leadership.
• Learning about University of Michigan and Ohio State
University studies.
• Learning about Leadership Grid.
4/17/2020
Prof.Kiran Kumar M., East West Institute of Technology, Dept. of MBA
2

3. MEANING
• Leadership Behaviors: Leadership Behaviors are easy to understand, though perhaps
requiring effort to perform consistently. Behavior change gives every leader a path
forward to increasing effectiveness. Behaviors can be learned whereas characteristics,
such as charisma, seem inborn and more difficult to practice.
• Leadership Traits: Leadership traits are the personal qualities that shape effective
leaders. Many leadership traits are transferrable across industries. Emotional
intelligence, resourcefulness and flexibility, for example, enable people in positions of
authority to help employees complete initiatives and meet business goals, whether in
business, government or education.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
3

4. LEADERSHIP STYLES
• Leadership style is the manner and approach of providing direction,
implementing plans, and motivating people. As seen by the employees, it
includes the total pattern of explicit and implicit actions performed by
their leader.
• In 1939, a group of researchers led by psychologist Kurt Lewin set out to
identify different styles of leadership. While further research has identified
more distinct types of leadership, this early study was very influential and
established three major leadership styles that have provided a springboard
for more defined leadership theories.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
4

5. TYPES LEADERSHIP STYLES
• Authoritarian Leadership (Autocratic): Authoritarian leaders, also
known as autocratic leaders, provide clear expectations for what needs to
be done when it should be done, and how it should be done. This style of
leadership is strongly focused on both command by the leader and control
of the followers. There is also a clear division between the leader and the
members. Authoritarian leaders make decisions independently with little
or no input from the rest of the group.
• Participative Leadership (Democratic): Democratic leaders offer
guidance to group members, but they also participate in the group and
allow input from other group members. Participative leaders encourage
group members to participate but retain the final say in the decision-
making process. Group members feel engaged in the process and are more
motivated and creative. Democratic leaders tend to make followers feel like
they are an important part of the team, which helps foster commitment to
the goals of the group.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
5

6. TYPES LEADERSHIP STYLES Cont.
• Delegative Leadership (Laissez-Faire): Delegative leaders offer little or no
guidance to group members and leave the decision-making up to group
members. While this style can be useful in situations involving highly
qualified experts, it often leads to poorly defined roles and a lack of
motivation. Lewin noted that laissez-faire leadership tended to result in
groups that lacked direction where members blamed each other for mistakes,
refused to accept personal responsibility, and produced a lack of progress
and work.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
6

7. UNIVERSITY OF MICHIGAN STUDY
• These empirical studies were conducted slightly after WORLD WAR II by the
institute of Social Research at the university of Michigan. The purpose of these
studies was to identify styles of leadership behavior that results in higher
performance and satisfaction of a group.
• These studies distinguished between two distinct styles of leadership:
Production centered Leadership: also known as task oriented leadership. Stressed
on certain points:
• Rigid work standards, procedures and rules.
• Close supervision of the subordinates
• Technical aspect of the job & Employees are considered as a tool to accomplish the
goal (not treating like a human being).
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
7

8. UNIVERSITY OF MICHIGAN STUDY Cont.
• Employee centered Leadership: (relation oriented leadership)
• To treat subordinates as a human beings.
• To show concern for the employees needs, welfare etc…
• To foster employee participation in decision making.
• To motivate employees.
• Following are the findings:
• Both styles led to increase in production, but it was slightly more in production
oriented style.
• But production oriented style led to decrease satisfaction and increase turnover and
absenteeism.
• Whereas employee centered style increases satisfaction and decreases absenteeism
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
8

9. OHIO STATE UNIVERSITY STUDY
• In 1945 the Bureau of Business Research at Ohio State
University initiated a series of studies on leadership.
• The main objective of the studies was to identify the major
dimensions of leadership and to investigate the effect of
leader’s behavior on employee behavior and satisfaction.
• Ultimately, these studies narrowed the description of leader
behavior to 2 dimensions:
• Initiating structure
• Consideration
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
9

10. Initiating structure: defines and organizes relationship between
himself and members of the group.
• Establishes well defined patterns of organization.
• Develop channels of communication and methods or procedure.
• To supervise the activities of employees.
Consideration: behavior characterized by:
• Friendliness & Mutual trust
• Respect & Supportiveness
• Openness & Concern for the welfare of employees
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
10
OHIO STATE UNIVERSITY STUDY Cont.

11. OHIO STATE UNIVERSITY STUDY Cont.
• Findings of this Study:
• There is a positive relationship between consideration and
regularity of employees and low grievances. But consideration
is negatively related to performance.
• There is a positive relationship between initiating structure
and employee performance. But initiating is also structure is
also associated with absenteeism and grievances.
• When both these dimensions are high, performance and
satisfaction tended to be high. But in some cases high
productivity was accompanied by absenteeism and grievances.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
11

12. LEADERSHIP GRID
• Robert Blake and Jane Mouton [1960s] proposed a graphic portrayal of leadership
styles through a managerial grid[sometimes called leadership grid]
• The grid depicted two dimensions of leader behaviour ,concern for people on y-axis and
concern for production on x-axis both ranging from low [1] to high [9] thus creating 81
different positions in which the leaders style may fall.
• Managerial Grid is model originally identified five different leadership styles based on
the concern for people and the concern for production.
• The grid is offered as a model of scientifically verified principles to be learned for
effective managerial behaviour.
• The managerial grid fundamentally asserts that mangers have two central motivations:
• 1. The desire to obtain ones own goal.
• 2. The desire to use the organizational hierarchy best in an effort to maximize
production with and through interpersonal relationship.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
12

13. FIVE KEY ELEMETS OF GRID THEORY
• Initiative – taking action ,driving, and supporting.
• Inquiry – questioning, researching, verifying and understanding.
• Advocacy- expressing convictions and championing ideas .
• Decision making-evaluating resources ,choices and consequences.
• Conflicts resolution –challenging and resolving disagreements
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
13

14. LEADERSHIP GRID Cont.
• Concern for people: Is the degree to which a leader considers
the needs of team members, their interest and areas of
personal development when deciding how best to accomplish
a task.
• Concern for production: Is the degree to which a leader
emphasizes concrete objectives, organizational efficiency and
high productivity when deciding how best to accomplish a
task. Consider employees and team members. Decision
making. Democratic leadership style.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
14

15. Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
15
Grid Styles are:
1. Impoverished management[1;1]
2. Middle road[5,5]
3. Task management[9,1]
4. Country club leadership[1,9]
5. Team management[9,9]

16. STYLE OF MANAGERIAL GRID
1. Impoverished management[1;1]
• Managers with this approach are low on both the dimensions
and exercise minimum effort to get the work done from
subordinates.
• The leader has low concern for employee satisfaction and
disorganization prevail within the organization.
• The leaders termed ineffective wherein their action is merely
at preserving job and seniority.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
16

17. STYLE OF MANAGERIAL GRID Cont.
2. Middle road[5,5]
• This is basically a compromising style wherein the leader tries
to maintain a balance between goals of company and the
needs of people.
• The leader does not push the boundaries of achievements
resulting in average performance for organization.
• Here neither employee nor production needs are fully met.
• Average performance.
• Compromising leader.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
17

18. 3. Task management[9,1]
• Also called dictatorial or perish style. Here leaders are more
concerned about production and have less concern for people.
• The style is based on theory x of McGregor. The employees’ needs
are not taken care of and they are simply a means to an end.
• The leader believes that efficiency can result only through proper
organization of work systems and through elimination of proper
wherever possible.
• Such a style can definitely increase the output of organization in
short run but due to the strict policies and procedures, high labour
turnover is inevitable.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
18
STYLE OF MANAGERIAL GRID Cont.

19. 4.Country club leadership[1,9]
• Here the Boss is more of big brother than Autocratic, Social
relationship are more important.
• The leader feels that such a treatment with employees will
lead to self motivation and will find people working hard on
their own.
• The aim is to achieve friendly and harmony among members
of the organization.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
19
STYLE OF MANAGERIAL GRID Cont.

20. 5. Team management[9,9]
• A basic need of this style is to involve and commitment toward
work.
• It aims at integrating the people and production dimension of work
under condition of high concern for growth.
• The leader feels that empowerment ,commitment, trust, respect and
the elements in creating a team atmosphere which will
automatically result in high employees satisfaction and production.
• It brings team spirit that leads high organizational accomplishment.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
20
STYLE OF MANAGERIAL GRID Cont.

21. ADVANTAGES AND DISADVANTAGES
ADVANTAGES:
• The management of leadership grid is used to help managers analyse their own
leadership style through a technique known as grid training.
• This is done by administering a questionnaire that helps managers identify how they
stand with respect to their concern for production and people.
• The training is aimed at basically helping leaders reach to the ideal state of 9,9.
DISADVANTAGES:
• The model ignores the importance of internal and external limits ,matter and
scenario.
• Also there are some more aspects of leadership that can be covered but are not.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
21

22. SUMMARY
• Understood the Leadership Behavior and Trait.
• Understood the Styles of Leadership.
• Learnt about University of Michigan and Ohio State University
studies.
• Learnt about Leadership Grid.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
22

23. ORGANIZATIONAL LEADERSHIP
18MBAHR402
UNIT-3
LEADERSHIP BEHAVIOR AND MOTIVATION, AND
CONTINGENCY LEADERSHIP
4/17/2020
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
23
ONLINE LEARNING SESSION - 2

24. LEARNING OUTCOME
• Understanding Content and Process theories.
• Understanding Reinforcement theory
• Learning Contingency Leadership theories and Models
• Learning Leadership Continuum theory, Normative
Leadership theory and Leadership Substitute theory.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
24

25. CONTENT THEORY
• Content motivation theories focus on explaining and predicting behavior
based on people’s needs. The primary reason people do what they do is to
meet their needs or wants to be satisfied.
• According to content motivation theorists, if you want to have satisfied
employees you must meet motivation theorists, if you want to have satisfied
employees you must meet their needs.
• Content Theory Includes:
Hierarchy of Needs
Two-Factor Theory
Acquired Needs Theory
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
25

26. HIERARCHY OF NEEDS
• Physiological needs
• Safety needs
• Belongingness needs
• Esteem needs
• Self-actualization needs
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
26
TWO-FACTOR THEORY
• Maintenance-Extrinsic Factors
• Motivators-Intrinsic Factors
ACQUIRED NEEDS THEORY
• Motivating employees with a high n Ach
• Motivating employees with a high n Pow.
• Motivating employees with high n Aff.

27. PROCESS MOTIVATION THEORIES:
• Process motivation theories focus on understanding how people choose behavior to fulfill their
needs. Process motivation theories are more complex than content motivation theories.
• Content motivation theories simply focus on identifying and understanding people’s needs.
Process motivation theories go a step further, attempting to understand why people have
different needs, why their needs change, how and why people choose to try to satisfy needs in
different ways, the mental process people go through as they understand situations, and how
they evaluate their need satisfaction.
• It Includes:
• Equity Theory
• Expectancy Theory
• Goal-Setting Theory
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
27

28. REINFORCEMENT THEORY
• B. F. Skinner, reinforcement motivation theorist, contends that to
motivate employees it is not necessary to identify and understand
needs (content motivation theories), nor to understand how
employees choose behaviors to fulfill them (process motivation
theories).
• All the manager needs to do is understand the relationship between
behaviors and their consequences, and then arrange contingencies that
reinforce desirable behaviors and discourage undesirable behaviors.
• Skinner states that behavior is learned through experiences of positive
and negative consequences.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
28

29. TYPES OF REINFORCEMENT
• Positive Reinforcement
• Avoidance Reinforcement
• Extinction:
• Punishment
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
29

30. CONTINGENCY LEADERSHIP THEORY AND
MODELS:
• In 1951, Fred E. Fiedler began to develop the first situational leadership theory. It was
the first theory to specify how situational variables interact with leader personality
and behavior.
• He called the theory “Contingency Theory of Leader Effectiveness. Fiedler believed
that leadership style is a reflection of personality (trait theory–oriented) and behavior
(behavioral theory–oriented), and that leadership styles are basically constant.
Leaders do not change styles, they change the situation.
• The contingency leadership model is used to determine if a person’s leadership style
is task- or relationship-oriented, and if the situation (leader–member relationship,
task structure, and position power) matches the leader’s style to maximize
performance.
• Leadership Style and the LPC
• Situational Favorableness
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
30

31. LEADERSHIP CONTINUUM THEORY:
• Robert Tannenbaum and Warren Schmidt also developed a
contingency theory in the 1950s. They stated that leadership behavior
is on a continuum from boss centered to subordinate-centered
leadership. Their model focuses on who makes the decisions. They
noted that a leader’s choice of a leadership pattern should be based on
forces in the boss, forces in the subordinates, and forces in the
situation.
• Boss
• Subordinates
• Situation (time):
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
31

32. NORMATIVE LEADERSHIP THEORY:
• The normative leadership model has a time-driven and development-driven decision
tree that enables the user to select one of five leadership styles (decide, consult
individually, consult group, facilitate, and delegate) appropriate for the situation
(seven questions/variables) to maximize decisions.
• Decision Significance
• Importance of Commitment
• Leader Expertise:
• Likelihood of Commitment
• Group Support for Objectives
• Group Expertise
• Team Competence
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
32

33. LEADERSHIP SUBSTITUTES THEORY
• Steven Kerr and John Jermier argued that certain situational variables
prevent leaders from affecting subordinates’ (followers’) attitudes and
behaviors. Substitutes for leadership include characteristics of the
subordinate, task, and organization that replace the need for a leader
or neutralize the leader’s behavior.
• Characteristics of followers
• Characteristics of the task
• Characteristics of the organization
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
33

34. SUMMARY
• Understood Content and Process theories.
• Understood Reinforcement theory
• Learnt Contingency Leadership theories and Models
• Learnt Leadership Continuum theory, Normative Leadership
theory and Leadership Substitute theory.
Prof. Kiran Kumar M., East West Institute of Technology, Dept. of MBA
4/17/2020
34
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