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Im 1013 Chapter 15 & 16


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Im 1013 Chapter 15 & 16

  1. 1. <ul><li>CHAPTER 15: MOTIVATING EMPLOYEES </li></ul><ul><li>Manager need to know about motivational concepts and practices in order to encourage their employees to make a maximum effort. Motivation is defined as the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy individual need. A need is an internal state that makes certain outcomes appear attractive. </li></ul><ul><li>Early theories of motivation </li></ul><ul><li>Hierarchy of needs theory was developed by Abraham Maslow. The five needs are: Lower; (1) Physiological (2) Safety; Higher; (3) Social (4) Esteem (5) Self actualization. </li></ul><ul><li>Theory X; assume employees dislike work, avoid responsibility and must be coerced to perform; and Y; opposite of X; were developed by Douglas McGregor. </li></ul><ul><li>Motivation-hygiene theory was developed by Frederick Hertzberg suggests extrinsic factors are associated with dissatisfaction, eliminated by Hygiene factors and intrinsic factors are related to job satisfaction; increased by factors of Motivators. </li></ul>
  2. 2. <ul><li>Contemporary theories </li></ul><ul><li>Managers need to design motivating jobs: </li></ul><ul><li>David McClelland says the needs for achievement; strive to achieve a set of standards;, power; make others behave in a way that they would not have behaved; and affiliation; desire for friendly and close interpersonal relationships; as major motives in work. </li></ul><ul><li>Goal setting theory says that specific goals increase performance and difficult goals result in higher performance than easy goals. </li></ul><ul><li>Reinforcement theory suggests what control behavior is reinforcement i.e. any consequence immediately following a response increases the probability of the behavior repeating. Job enlargement is the horizontal expansion of a job through increasing job scope i.e. the different and frequency tasks repeated. </li></ul><ul><li>Job enrichment is the vertical expansion of job by adding planning and evaluating responsibilities. </li></ul><ul><li>Job Characteristics Model (JCM) provides a framework for analyzing and designing jobs. </li></ul>
  3. 4. <ul><li>Equity theory says an employee compares his or her job’s inputs/ outcomes ratio to that of relevant others and then corrects any inequity. The theory establishes four propositions relative to inequitable pay: </li></ul><ul><li>effort performance linkage - the probability perceived by the individual that exerting a given amount of effort will lead to performance. </li></ul><ul><li>performance reward linkage – degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. </li></ul><ul><li>Attractiveness – importance that the individual places on the potential outcome or reward that can be achieved on the job. </li></ul><ul><li>There are four steps inherent in the theory: </li></ul><ul><li>What perceived outcomes does the job offer the employee? </li></ul><ul><li>How attractive do employees consider these outcomes to be? </li></ul><ul><li>What kind of behavior must the employee exhibit to achieve these outcomes? </li></ul><ul><li>How does the employee view his or her chances of doing what is asked? </li></ul>
  4. 5. <ul><li>Contemporary issues </li></ul><ul><li>To develop appropriate motivation programs for today’s diversified work force managers need to think cultural differences and in terms of being flexible e.g. family friendly programs, flexible working hours (flexitime), compressed work week (four 10 hour days), job sharing (two or more people split a forty hour a week job) and telecommunicating (work at home linked by computer). </li></ul><ul><li>Pay for performance programs are compensation plans that pay employees on the basis of some performance measure. Employee Stock Ownership Plan (ESOP) is a compensation program in which employees become part owners of the organization by receiving stock as a performance incentive. Other types of rewards are employee recognition programs. </li></ul><ul><li>Suggestions for motivating employees </li></ul><ul><li>Recognize individual differences in terms of needs, attitudes, personality and other important individual factors. </li></ul>
  5. 6. <ul><li>Match people to jobs by identifying what needs are important to individuals and trying to provide jobs that allow them to fulfill those needs. </li></ul><ul><li>Use goals / objectives / targets which must be SMART (Specific, Measurable, Achievable within Realistic Time) </li></ul><ul><li>Ensure that goals are perceived as attainable. Employees who see goals as unattainable will reduce their level of effort. </li></ul><ul><li>Individualize rewards. Employee have different needs, what is a reward and reinforce to one may not work for another. </li></ul><ul><li>Link rewards to performance by making rewards contingent on desired levels of performance </li></ul><ul><li>Check the system for equity. Employees should perceive that the rewards or outcomes are equal to the inputs given. </li></ul><ul><li>Don’t ignore money. The allocation of performance based wage increases piecework bonuses and other pay incentives is important in determining employee motivation </li></ul>
  6. 7. <ul><li>CHAPTER 16: LEADERSHIP </li></ul><ul><li>Managers are appointed and have legitimate power within the organization. Leaders are those who are able to influence others and who possess managerial authority. </li></ul><ul><li>The trait theories of leadership are theories isolating characteristics that differentiate leaders from non-leaders are: Drive, The Desire to Lead, Honesty/Integrity, Self confidence, Cognitive ability, Knowledge of the business. </li></ul><ul><li>The behavioral theories are theories identifying behaviors that differentiate effective from ineffective leaders. One of the studies of leadership behavior was the autocratic-democratic continuum: </li></ul><ul><li>An autocratic style – tends to centralize authority, dictate work methods, make unilateral decisions and limit subordinate participation. </li></ul><ul><li>A democratic – tends to involve subordinates in decision making, delegate authority, encourage participation in deciding work methods and goals and use feedback as an opportunity for coaching </li></ul>
  7. 8. <ul><li>Laissez-faire – gives group complete freedom to make decisions and complete the work in whatever way it sees fit. </li></ul><ul><li>Continuum – a range of leadership behaviors all the way from boss centered (autocratic) to subordinate centered (democratic) and manager choose would depend on forces within the leader, forces within the subordinates and forces within the situation. </li></ul><ul><li>The University of Michigan came up with two dimensions of leadership behavior: </li></ul><ul><li>Leaders who were employee oriented were described as emphasizing interpersonal relations, taking a personal interest in subordinates’ needs and accepting of individual differences. </li></ul><ul><li>Leaders who were production oriented emphasized the technical or task aspects of the job. They were concerned mainly with accomplishing the group’s tasks and regarded group members as a means to that end. </li></ul>
  8. 9. <ul><li>The managerial grid is a two dimensional portrayal of leadership based on concerns for people and for production developed by Blake and Mouton who concluded that manager perform best using (9,9) style. </li></ul>
  9. 10. <ul><li>The model is represented as a grid with concern for production as the X-axis and concern for people as the Y-axis ; each axis ranges from 1 (Low) to 9 (High). The resulting leadership styles are as follows: </li></ul><ul><li>The indifferent (previously called impoverished) style (1,1): evade and elude. In this style, managers have low concern for both people and production. Managers use this style to preserve job and job seniority, protecting themselves by avoiding getting into trouble. The main concern for the manager is not to be held responsible for any mistakes, which results in less innovative decisions. </li></ul><ul><li>The accommodating (previously, country club) style (1,9): yield and comply. 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 of the employees, in hopes that this will increase - performance . The resulting atmosphere is usually friendly, but not necessarily very productive. </li></ul><ul><li>The dictatorial (previously, produce or perish) style (9,1): control and dominate. With a high concern for production, and a low concern for people, managers using this style find employee needs unimportant; they provide their employees with money and expect performance in return. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or perceived failure. This style is often used in case of crisis management. </li></ul><ul><li>The status quo (previously, middle-of-the-road) style (5,5): balance and compromise. Managers using this style try to balance between company goals and workers' needs. By giving some concern to both people and production, managers who use this style hope to achieve suitable performance but doing so gives away a bit of each concern so that neither production nor people needs are met. </li></ul><ul><li>The sound (previously, team) style (9,9) : contribute and commit. 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. </li></ul><ul><li>The opportunistic style: exploit and manipulate. Individuals using this style, which was added to the grid theory before 1999, do not have a fixed location on the grid. They adopt whichever behaviour offers the greatest personal benefit. </li></ul><ul><li>The paternalistic style: prescribe and guide. This style was added to the grid theory before 1999. In The Power to Change , it was redefined to alternate between the (1,9) and (9,1) locations on the grid. Managers using this style praise and support, but discourage challenges to their thinking. </li></ul>
  10. 11. <ul><li>CONTINGENCY THEORIES </li></ul><ul><li>The first management theorists, Taylorists , assumed there was one best style of leadership. Fiedler’s contingency model postulates that the leader’s effectiveness is based on ‘situational contingency’ which is a result of interaction of two factors: leadership style and situational favourableness (later called situational control). </li></ul><ul><li>Least preferred co-worker (LPC) </li></ul><ul><li>The leadership style of the leader, thus, fixed and measured by what he calls the least preferred co-worker (LPC) scale, an instrument for measuring an individual’s leadership orientation. The LPC scale asks a leader to think of all the people with whom they have ever worked and then describe the person with whom they have worked least well, using a series of bipolar scales of 1 to 8, such as the following: </li></ul><ul><li>Unfriendly1 2 3 4 5 6 7 8 Friendly </li></ul><ul><li>Uncooperative1 2 3 4 5 6 7 8 Cooperative </li></ul><ul><li>Hostile1 2 3 4 5 6 7 8 Supportive </li></ul><ul><li>....1 2 3 4 5 6 7 8.... </li></ul><ul><li>Guarded1 2 3 4 5 6 7 8Open </li></ul>
  11. 12. <ul><li>The responses to these scales (usually 18-25 in total) are summed and averaged: a high LPC score suggests that the leader has a human relations orientation , while a low LPC score indicates a task orientation . </li></ul><ul><li>Fiedler assumes that everybody's least preferred coworker in fact is on average about equally unpleasant. But people who are indeed relationship motivated, tend to describe their least preferred coworkers in a more positive manner, e.g., more pleasant and more efficient. Therefore, they receive higher LPC scores. People who are task motivated, on the other hand, tend to rate their least preferred coworkers in a more negative manner. Therefore, they receive lower LPC scores. </li></ul><ul><li>So, the Least Preferred Coworker (LPC) scale is actually not about the least preferred worker at all, instead, it is about the person who takes the test; it is about that person's motivation type. This is so, because, individuals who rate their least preferred coworker in relatively favorable light on these scales derive satisfaction out of interpersonal relationship, and those who rate the coworker in a relatively unfavorable light get satisfaction out of successful task performance. </li></ul><ul><li>This method reveals an individual's emotional reaction to people they cannot work with. Critics point out that this is not always an accurate measurement of leadership effectiveness . </li></ul>
  12. 13. <ul><li>Situational favourableness </li></ul><ul><li>According to Fiedler, there is no ideal leader. Both low-LPC (task-oriented) and high-LPC (relationship-oriented) leaders can be effective if their leadership orientation fits the situation. The contingency theory allows for predicting the characteristics of the appropriate situations for effectiveness. Three situational components determine the favourableness or situational control: </li></ul><ul><li>Leader-Member Relations, referring to the degree of mutual trust, respect and confidence between the leader and the subordinates. </li></ul><ul><li>Task Structure, referring to the extent to which group tasks are clear and structured. </li></ul><ul><li>Leader Position Power, referring to the power inherent in the leader's position itself. </li></ul><ul><li>When there is a good leader-member relation, a highly structured task, and high leader position power, the situation is considered a &quot;favorable situation.&quot; Fiedler found that low-LPC leaders are more effective in extremely favourable or unfavourable situations, whereas high-LPC leaders perform best in situations with intermediate favourability. </li></ul>
  13. 14. <ul><li>Leader-Situation Match and Mismatch </li></ul><ul><li>Since personality is relatively stable, the contingency model suggests that improving effectiveness requires changing the situation to fit the leader. This is called &quot;job engineering.&quot; The organization or the leader may increase or decrease task structure and position power, also training and group development may improve leader-member relations. In his 1976 book Improving Leadership Effectiveness: The Leader Match Concept Fiedler (with Martin Chemers and Linda Mahar) offers a self paced leadership training programme designed to help leaders alter the favourableness of the situation, or situational control. </li></ul><ul><li>Examples </li></ul><ul><li>Task -oriented leadership would be advisable in natural disaster, like a flood or fire. In an uncertain situation the leader-member relations are usually poor, the task is unstructured, and the position power is weak. The one who emerges as a leader to direct the group's activity usually does not know subordinates personally. The task-oriented leader who gets things accomplished proves to be the most successful. If the leader is considerate (relationship-oriented), they may waste so much time in the disaster, that things get out of control and lives are lost. </li></ul><ul><li>Blue-collar workers generally want to know exactly what they are supposed to do. Therefore, their work environment is usually highly structured. The leader's position power is strong if management backs their decision. Finally, even though the leader may not be relationship-oriented, leader-member relations may be extremely strong if they can gain promotions and salary increases for subordinates. Under these situations the task-oriented style of leadership is preferred over the (considerate) relationship-oriented style. </li></ul><ul><li>The (relationship-oriented) style of leadership can be appropriate in an environment where the situation is moderately favorable or certain. For example, when (1) leader-member relations are good, (2) the task is unstructured, and (3) position power is weak. Situations like this exists with research scientists , who do not like superiors to structure the task for them. They prefer to follow their own creative leads in order to solve problems. In a situation like this a considerate style of leadership is preferred over the task-oriented </li></ul>
  14. 15. <ul><li>The Heresy & Blanchard situational theory is a contingency theory that focuses on followers’ maturity. Maturity is defined as the ability and willingness of people to take responsibility for directing their own behavior. Situational leadership uses the same two leadership dimensions that Fiedler identified: task and relationship. Heresy & Blanchard, however, combined these into four specific leadership styles: </li></ul><ul><li>Telling – high task, low relationship </li></ul><ul><li>Selling – high task, high relationship </li></ul><ul><li>Participating – low task, high relationship </li></ul><ul><li>Delegating – low task, low relationship </li></ul><ul><li>Heresy & Blanchard also defined four stages or follower readiness </li></ul><ul><li>R1 – people unwilling and unable to take responsibility </li></ul><ul><li>R2 – people unable but willing to do job tasks </li></ul><ul><li>R3 – people able but unwilling to do job tasks </li></ul><ul><li>R4 – people able and willing to do what is asked of them </li></ul>
  15. 16. <ul><li>EMERGENCY APPROACHES TO LEADERSHIP </li></ul><ul><li>Attribution theory of leadership proposes that leadership is merely an attribution that people make about other individuals. </li></ul><ul><li>Charismatic leadership theory is an extension of attribution theory and suggests that followers make attributions of heroic or extraordinary leadership abilities e.g. extremely high confidence, dominance and strong convictions in his or her beliefs. There is a connection between charismatic leadership and high performance and satisfaction among followers. Individuals can be trained to exhibit charismatic behaviors. </li></ul><ul><li>Transactional versus transformational leadership. Transactional leaders guide and motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational leaders provide individualized consideration, intellectual stimulation and possess charisma. </li></ul>
  16. 17. <ul><li>CONTEMPORARY ISSUES IN LEADERSHIP </li></ul><ul><li>Leaders and power – Power is the capacity to influence decisions and leadership is about the process of influence. French and Raven identified sources or bases of power: Legitimate (authority) power as a result of his or her position in the formal organizational hierarchy, Coercive power is on application, or the threat of application of physical sanction such as infliction of pain and etc., Reward power derives from positive benefits or rewards, Expert power is influence from expertise, special skills or knowledge and finally Referent power arises from identification with a person who has desirable resources or personal traits. Most effective leaders rely on several different bases of power. </li></ul><ul><li>Leading through empowerment. Managers are increasingly leading by empowering their employees. The increased use of empowerment is being driven by two forces i.e. the need for quick decisions by those people who are most knowledgeable about the issues and the reality that organizational downsizing has left managers with larger spans of control and in order to cope with these demands, managers are empowering their employees. </li></ul>
  17. 18. <ul><li>Gender and leadership. Generally males and females do use different styles of leadership e.g. women tend to adopt a more democratic or participative style and a less autocratic or directive style than men do. Women are more likely to encourage participation, share power and information and attempt to enhance followers’ self worth. Men are more likely to use a directive, command and control style. Men rely on the formal authority of their position for their influence base. The best managers listen, motivate and provide support to their people. They inspire and influence rather control. Generally women seem to do these things better than men. </li></ul><ul><li>Leadership styles and different cultures. National culture is certainly an important situational variable in determining which leadership style will be most effective. </li></ul><ul><li>Sometimes leadership is irrelevant. Certain individual, job and organizational variables can act as ‘substitutes for leadership’. </li></ul>