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Business – Revision Notes : Motivation and Leadership
Leadership influences others to achieve certain aims or objectives. Effective leadership skills
can help a manager carry out their duties.
Leadership Styles
Authoritarian
 Senior managers take decisions with little involvement of juniors
 Sets objectives
 Allocates tasks
 Leader retains control throughout
 Communication goes down from leader to consumer
Paternalistic
 Dictatorial, but decisions are taken in best interests of employees
 Explains decisions
 Ensures workers social / leisure needs met
 Communication mainly downward but some feedback
Democratic
 Running a business based on majority decisions
 Encourages employees to take part in decision making
 Uses delegation
 Extensive two way communication
F.W. Taylor – Scientific Management
Taylor did lots of work in factories and believed that workers should be told how to do a job
quickly
 He believed they should be closely monitored & told what to do
 He devised a piece rate (the amount of production with quality) system
 He believed workers could only be motivated by money
 Division of labour - jobs should be broken down into small tasks to keep employees
motivated
 Identify most productive workers and make all staff use their methods, setting a
standard for the rest of the workforce
 Workers should be given everything they need to complete the job to a decent
standard, therefore giving no excuses for low productivity
Abraham Maslow – Hierarchy of Needs
Maslow believed human needs are split into five types - a hierarchy of needs with the highest
level needs at the top.
Individuals need to meet basic needs before moving up the hierarchy (arranged from bottom
to top according to the Maslow’s theory)
 5. Self- actualization - creating challenges and tasks that are stimulating
 4. Esteem - positive feedback and chances for promotion
 3. Social - team working and other functions that aim at building a bond within the
workforce
 2. Safety - security (safe job), other benefits e.g. sick pay and safe working conditions
 1. Physiological - wage, salaries and working conditions
Frederick Herzberg - Hygiene and motivating factors
According to Herzberg motivating factors are split into two groups. Motivation is a two step
process. Firstly you must meet basic hygiene factors, and from then on can motivate
employees
 1. Hygiene factors - salary and security. Improving these lowers dissatisfaction but
doesn't improve motivation or satisfaction. Hygiene factors remove sources of
unhappiness among workers, such as decent wages, working conditions, security and
safety
 2. Motivators - recognition, responsibility, work itself, achievement, advancement -
these lead to increased motivation. Motivating factors can then be used to make
workers happy, and feel a desire to exceed in their job, such as promotions,
recognition and interesting work.
In reality most managers are trying to maximize the beneficial aspects and minimize those
facts which de-motivate workers.
Elton Mayo – Hawthorne Experiment
Mayo looked at motivation in the Hawthorne laboratories in the USA
 Found that just by being studied the subjects levels of motivation increased
 Highlighted the importance of team work and group dynamics to motivation
 Applied theories of sociology to management, and in the Hawthorne Experiment
found that productivity increased when working closely with management,
highlighting a sociological need
 Workers act accordingly to sentiments and emotion
 If you treat workers with respect and try to meet their needs, they will be better
workers for you, benefitting both management and staff
Douglas McGregor – Theory X and Theory Y
McGregor developed two theories of human behaviour at work: Theory and X and Theory Y.
He did not imply that workers would be one type or the other, the two theories were two
extremes - with a spectrum of possible behaviours in between.
Theory X
 Workers dislike work and will avoid it where possible
 Threat of punishment will encourage work to be done and objectives met
 Individuals who lack ambition, dislike responsibility and prefer to be led
 Managers impose a management system of coercion, control and punishment
Theory Y
 Workers are simply ordinary people who apply self-control and self-direction
themselves in order to complete targets without threat of punishment
 Workers perform best when listened to and their ideas appreciated
 Treat workers with respect, and they will work harder in return
 Managers organise social events and listen to staff
::::::::::::::::::::::::::::::::::::

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Leadership & motivation revision notes

  • 1. Business – Revision Notes : Motivation and Leadership Leadership influences others to achieve certain aims or objectives. Effective leadership skills can help a manager carry out their duties. Leadership Styles Authoritarian  Senior managers take decisions with little involvement of juniors  Sets objectives  Allocates tasks  Leader retains control throughout  Communication goes down from leader to consumer Paternalistic  Dictatorial, but decisions are taken in best interests of employees  Explains decisions  Ensures workers social / leisure needs met  Communication mainly downward but some feedback Democratic  Running a business based on majority decisions  Encourages employees to take part in decision making  Uses delegation  Extensive two way communication F.W. Taylor – Scientific Management Taylor did lots of work in factories and believed that workers should be told how to do a job quickly  He believed they should be closely monitored & told what to do  He devised a piece rate (the amount of production with quality) system  He believed workers could only be motivated by money  Division of labour - jobs should be broken down into small tasks to keep employees motivated  Identify most productive workers and make all staff use their methods, setting a standard for the rest of the workforce  Workers should be given everything they need to complete the job to a decent standard, therefore giving no excuses for low productivity
  • 2. Abraham Maslow – Hierarchy of Needs Maslow believed human needs are split into five types - a hierarchy of needs with the highest level needs at the top. Individuals need to meet basic needs before moving up the hierarchy (arranged from bottom to top according to the Maslow’s theory)  5. Self- actualization - creating challenges and tasks that are stimulating  4. Esteem - positive feedback and chances for promotion  3. Social - team working and other functions that aim at building a bond within the workforce  2. Safety - security (safe job), other benefits e.g. sick pay and safe working conditions  1. Physiological - wage, salaries and working conditions Frederick Herzberg - Hygiene and motivating factors According to Herzberg motivating factors are split into two groups. Motivation is a two step process. Firstly you must meet basic hygiene factors, and from then on can motivate employees  1. Hygiene factors - salary and security. Improving these lowers dissatisfaction but doesn't improve motivation or satisfaction. Hygiene factors remove sources of unhappiness among workers, such as decent wages, working conditions, security and safety  2. Motivators - recognition, responsibility, work itself, achievement, advancement - these lead to increased motivation. Motivating factors can then be used to make workers happy, and feel a desire to exceed in their job, such as promotions, recognition and interesting work. In reality most managers are trying to maximize the beneficial aspects and minimize those facts which de-motivate workers. Elton Mayo – Hawthorne Experiment Mayo looked at motivation in the Hawthorne laboratories in the USA  Found that just by being studied the subjects levels of motivation increased  Highlighted the importance of team work and group dynamics to motivation  Applied theories of sociology to management, and in the Hawthorne Experiment found that productivity increased when working closely with management, highlighting a sociological need  Workers act accordingly to sentiments and emotion  If you treat workers with respect and try to meet their needs, they will be better workers for you, benefitting both management and staff
  • 3. Douglas McGregor – Theory X and Theory Y McGregor developed two theories of human behaviour at work: Theory and X and Theory Y. He did not imply that workers would be one type or the other, the two theories were two extremes - with a spectrum of possible behaviours in between. Theory X  Workers dislike work and will avoid it where possible  Threat of punishment will encourage work to be done and objectives met  Individuals who lack ambition, dislike responsibility and prefer to be led  Managers impose a management system of coercion, control and punishment Theory Y  Workers are simply ordinary people who apply self-control and self-direction themselves in order to complete targets without threat of punishment  Workers perform best when listened to and their ideas appreciated  Treat workers with respect, and they will work harder in return  Managers organise social events and listen to staff ::::::::::::::::::::::::::::::::::::