3. Define Leadership
List & explain different types of leaders
Explain what is meant by motivation
Outline Maslow’s theory of motivation
Outline McGregor’s theory of motivation
4. ‘Leadership refers to the ability to
influence other people to go in
a particular direction & achieve a
particular goal’
1. Leaders provide direction
2. Leaders set an example
3. Leaders delegate work
Let’s see box p.83!
5. 1. Autocratic or Authoritarian (Dictatorial)
2. Democratic
3. Laissez Faire
These styles differ in terms of: How??
Ability to trust
Decision-making style
Methods of persuasion
6. No discussion or consultation with staff
Expects work to be done immediately without
question- ‘Do not question the Boss’
Only form of communication is top – down
Can yield success in short term
(If boss is an expert?)
7. Boss is not popular with staff (support is low)
Does not consider important opinions of
others and leads to low staff morale & high
staff turnover
May result in delays
Let’s see the Army example p.84
8. Allows & encourages workers to give
their opinion and contribute to business decisions
Inclusive approach
Good atmosphere & morale leading to a
motivated & satisfied workforce
Two-way communication
Encourages ‘intrapreneurship’
Let’s see example p.85!
9. Consultation can take longer and result
in a missed business opportunity
‘Life of Brian’
Accommodating all viewpoints may result in
a poor final decision
High morale = Increase in worker productivity
10. Giving staff general goals and targets
to aim for and then giving
them authority to achieve these in
whatever way they thing best
Let’s see Richard Branson
Example p. 86!
11. Lacks leadership (non-involvement etc.)
Wrong to expect correct decisions will
always be made
Communication is difficult
Leads to inconsistency & inefficiency
May work in research based work
12. ‘Motivation is the willingness of people
to work hard and contribute their
best effort’
Workers/Students must be motivated to
find their work interesting
Motivated staff = efficiency = good morale
Leads to:
1. Increased productivity
2. Greater intrapreneurship
3. Improved IR
4. Easier recruitment & retention
5. Repeat business
13. Not every worker is motivated by money?
Non-financial motivators include:
◦ Job Security
◦ Job Status
◦ Job Aspiration
◦ Job Praise
14. 1. Abraham Maslow (1908 – 1970)
2. Douglas Mc Gregor (1906 – 1964)
15. All human needs are arranged in
a hierarchy (Pyramid) in order of their
importance
Every person has a need which
must be satisfied
When a need is satisfied you
move to the next level
Needs are arranged in progressive levels
(in terms of importance)
A persons job can help satisfy these needs
17. Once financial needs are satisfied, workers
will seek additional rewards
Employee’s attitudes and effort are dependent
on satisfying their non-financial needs
Morale will be low if the work is boring
regardless of pay & this may increase
absenteeism, lower efficiency & profit
18. Strengths:
Recognises that people are motivated by more
than money
Recognises that different things motivate different
people at different times
Allows business identify the need for
different types of motivations for staff
Weaknesses:
People are complex, this is simplistic
Do not satisfy one need at a time See p.88!
19. Analysed how employer’s & employee’s look
at work
Employer =
the boss, pays the wages, gives instructions, does
not like unions
Employee =
does the job, takes the wages, accepts no
responsibility
20. During his research McGregor noticed two
contrasting styles of management (X & Y)
He argued that large firms tend to
be run on one of these totally opposite
approaches
X y
21. Employees are lazy, need to be supervised and do
not like working
Management need to motivate lazy employee’s
through incentives
Employee’s priorities are safety & security needs
Employee’s lack ambition so need to be motivated
Employee’s resist change & are easily influenced
by others
Controller Approach
22. Employee’s enjoy working & are willing to work
as a result of positive management approaches
Employee’s are self-motivated, no need for
supervision
Satisfying self-actualisation needs results in full
commitment of staff
All workers should receive training
Workers abilities are not fully utilised to
the benefit of the firm
Facilitator Approach
23. Limitations of Theory X Strengths of Theory Y:
Reduced motivation High motivation
Less creativity More creativity
Poor reputation Better business reputation
Higher staff turnover Lower staff turnover
Reduced profitability More positive IR
Increased profitability
24. Theory X - Autocratic & dictatorial
Theory Y - Democracy
Theory X - Workers perceived in a poor light
Theory Y – Workers perceived positively & as a
resource
How would you compare Maslow’s approach
to that of McGregor?
Editor's Notes
AerLingus and Willie Walsh example.p.81
Refer back to Willie Walsh example throughoutIs the power to exercise control over peopleEffective managers lead from the front and get the rest to follow exampleCo-operation depends on type of leadership styleStudents take a few notes from below:By communicating clear instructions about what is do be done, everyone understands role and know what to do to achieve goalsDemonstrate attitude and behaviour expected in the workplace, so are respected and trusted by staff. Leaders set tone for corporate culture.Giving authority for carrying out tasks to others. Some find it easy some dont.
A-Ability to trust staff and willingness to delegate authority and responsibilityB- When making decisionsC-Used to get people to go along with leaders views and decisions
Prefer to make decisions themselves.Have little trust in staffUnwilling to delegateIgnore views of others during decision makingUse position to get own wayResort to intimidation to get own way
Advantages:Decisions made quicklyWork gets done the way manager wantsSuits orgs where discipline is NB E.G. Army, emergency responseUseful in crisis or emergency situationsDisadvantages:Can become stressed if overloadedStaff demotivated, little training, no power, may leaveIR Conflicts due to a lack of trust
Have trust in subordinatesReadily delegate authorityTake decisions after consultationPrefer to persuade through reasonable arguments
Advantages:Better quality decisions through shared inputMore time and less stress for managers as work is sharedStaff are more motivated and loyal to businessPromotes staff initiative and intrapreneurshipDisadvantages:Slower decision making as consultation takes placeQuality of decision may decline if take too may opinions on board
Mgt have considerable trust in ability of staff so delegateOnly get involved in NB issuesVery willing to listen to opinions of others before making a decisionPersuade through reasonable argumentsLets see the example on Richard Branson p.86
Advantages:Speedy decisions can be made by those closest to issueDelegation and empowerment leads to motivated staff giving their bestIntrapreneurship is encouragedDisadvantage:Inexperienced staff unable to handle responsibility and stressLack of supervision may result in poor decisions being made
High Morale:Employees receive satisfaction from their workEmployees take pride in their workHigh level of co-operation between staffStaff feel that they are making a worthwhile contributionResults in low absenteeism, high productivity & higher profit
Aspiration is job promotionPraise is job recognition
Most recognised theorists are above.Go into more detail if you go onto to study Business or Commerce
According to Maslow, human needs begin with the most basic need for food and water and lead up to the most complex psychological needs for self esteem and self actualisationWhen one level of need is satisfied, then the next level is the most important motivating factor and so onIndividuals can be at diff levels at any time and it is up to managers to identify what workers are motivated byIf basic needs such as wages are not met workers will remain demotivated even if other higher needs are being met i.e. Social needs , friendly co workers etcPhysiological: Food, drink, clothes, wagesSecurity: Job security, employment contract, pensionSocial: Friendship, social club membershipEsteem needs: Job title, promotionSelf Actualisation: Being ambitious, being given more responsibility, becoming an entrepreneurDirect students to table p. 88!
Direct students to diagram p.88!
Psychologist Douglas McGregor conducted research and He noticed two contrasting styles of management
Ask class as to which style of leadership they would associate above?This style is associated with autocracy, dictatorial style of leadership. Orders are to be carried out without an reaction by the lazy, uninterested workersTheory X Managers believe: Only offer financial incentives to get things doneClosely supervise staff to check they are workingAvoid consulting with staff when deciding how work is to be doneThreaten staff with sanctions to ensure co-op i.e. Lose bonusesMgt-AutocraticWorkers-Uncooperative and resent approach
Again which style would you associate?Democratic, ee’s treated properly, given a say and get involvedTheory Y Managers believe:Provide interesting and challenging work to stimulate staffProvide staff with freedom to get on with jobConsult regularly with staff on work to be doneProvide plenty of encouragementWorkers:More likely to be co-operative, better morale, motivationDemocratic/laissez faire managers adopt this approachJapan s economic success attributable to theory y approach
Direct Students to Microsoft example p. 91!
Both theories based on human relationsMaslow’s theory is seen as better one as it is based on a series of human needs that range from instinctive to the ambitious.His approach can be applied also to consumerism and OB
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