Chapter 5-Leadership and Motivation.pdf

© 2005 Prentice Hall Inc. All rights reserved. 1–0
CHAPTER- 5
LEADERSHIP AND
MOTIVATION

Introduction
 Leadership is an important element of the directing
function of management.
 Leadership is a vital management function that helps to
direct an organisation’s resources for improved efficiency
and the achievement of goals. Effective leaders provide
clarity of purpose, motivate and guide the organisation to
realize its mission.
 Leadership is the ability to build up confidence and zeal
among people and to create an urge in them to be led. To
be a successful leader, a manager must possess the
qualities of foresight, drive, initiative, self-confidence and
personal integrity. Different situations may demand different
types of leadership.

After studying this chapter, you should be able to:
L
E
A
R
N
I
N
G
O
B
J
E
C
T
I
V
E
S
1. What is leadership?
2. Contrast leadership and management.
3. Basic Principles of Leadership
4. Traditional Theories of Leadership
5. Contingency Theories of Leadership
6. Contemporary Approaches to Leadership
7. What is Motivation?
8. Early Theories of Motivation
9. Contemporary Theories of Motivation
10.Guidelines for Motivating Employees

What Is Leadership?
Leadership
The ability to influence a
group toward the
achievement of goals.
Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.

11-4
Leadership vs. Management
Leadership
 About coping with change
 Establish direction with a
vision.
 Align resources and
inspire workers to
complete the vision.
Management
 About coping with
complexity
 Brings about order and
consistency
 Draws up plans,
structures, and monitors
results.
Leadership is the ability to influence a group toward the
achievement of a vision or a set of goals.

© 2007 Prentice Hall, Inc. All rights reserved. 17–5
Leaders and Leadership
 Leader – Someone who can influence others and who
has managerial authority
 Leadership – What leaders do; the process of
influencing a group to achieve goals
 Ideally, all managers should be leaders
 Definition of Leadership
 Leadership is the process [social influence] of inspiring,
influencing, and guiding others to participate in a
common effort.
 Leadership is the process of motivating, influencing, and
directing others in the organization to work productively
in pursuit of organization goals.

Cont’d
 Power is the capacity to affect/influence the behavior of
others. Bases of power for a person exerting influence:
1. Legitimate power stems from a position’s placement in the
managerial hierarchy and the authority vested in the
position.
2. Reward power is based on the capacity to control and
provide valued rewards to others.
3. Coercive power is based on the ability to obtain compliance
through fear of punishment.
4. Expert power is based on the possession of expertise that is
valued by others.
5. Referent power results from being admired, personally
identified with, or liked by others.

Basics of Leadership
 Give people a reason to come to work.
 Be loyal to the organization’s people
 Spend time with people who do the real work
of the organization.
 Be more open and more candid about what
business practices are acceptable and proper
and how the unacceptable ones should be
fixed.

Basic Principles of Leadership
Technical proficiency
Developing sense of responsibility
Ensure task understanding, supervision &accomplishment
Keeping workers informed
Keeping for wellbeing of people
Making timely and sound decision
Taking responsibility for action
Setting examples
Broader in scope
Leadership research has tried to answer: What is an
effective leader?

Traditional Theories of Leadership
Leadership Traits:
• Ambition and energy
• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant
knowledge
Traits Theories of
Leadership(1920s-30s)
 Theories that consider
personality, social, physical, or
intellectual traits to differentiate
leaders from non leaders.
 Differentiate leaders from non-
leaders by focusing on personal
qualities and characteristics
 Limitation:
 No universal traits found that
predict leadership in all
situations.

Seven Traits Associated with Leadership

Early Leadership Theories (cont’d)
• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught.
Behavioral Theories of Leadership
 Theories proposing that specific behaviors differentiate
leaders from non-leaders.
 Behaviors can be taught – traits cannot
 Leaders are trained – not born

Behavioral Theories of Leadership (cont’d)

University of Iowa Studies (Kurt Lewin)
 Identified three leadership styles:
–Autocratic style: centralized authority, low
participation
–Democratic style: involvement, high
participation, feedback
–Laissez faire style: hands-off management
• Research findings: mixed results
–No specific style was consistently better for
producing better performance
–Employees were more satisfied under a
democratic leader than an autocratic leader.

11-15
Ohio State Studies
 The extent to which a leader is
likely to define and structure
his or her role and those of
sub-ordinates in the search for
goal attainment.
 Attempts to organize work,
work relationships, and goals
 The extent to which a leader is
likely to have job relationships
characterized by mutual trust,
respect for subordinate’s ideas,
and regard for their feelings.
 Concern for followers’ comfort,
well-being, status, and
satisfaction
Initiating
Structure
Consideration
Developed two categories of
leadership behavior:

11-16
University of Michigan Studies
 Emphasize the technical or
task aspects of the job: people
are means to an end
 One who emphasizes technical
or task aspects of the job.
 Emphasizing interpersonal
relations; taking a personal
interest in the needs of
employees and accepting
individual differences among
members.
Production
Oriented
Employee
Oriented
Developed two dimensions of
leadership behavior:

11-17
Blake and Mouton’s Managerial Grid®
Appraises leadership styles using two dimensions: Try to emphasize
BOTH
Places managerial styles in five categories:
 Impoverished management
 Task management
 Middle-of-the-road management
 Country club management
 Team management
Concern for
Production
Concern for
People
Combination of Ohio State and University of
Michigan studies:

The
Managerial
Grid

Contingency Theories of Leadership
 Contingency Theories of Leadership states that effective
leadership is contingent upon the situation at hand.
Essentially, it depends on whether an individual’s
leadership style befits the situation.
 According to this theory, someone can be an effective
leader in one circumstances and an ineffective leader in
another. They include;
1. The Fiedler’s contingency Theory,
2. The situational Leadership Theory ,
3. The Path-Goal Theory and
4. Decision –Making Theory.

Cont’d..Contingency Theories of Leadership
Attempts to match leadership style with work
conditions:
 The Fiedler Model
– Proposes that effective group performance depends upon
the proper match between the leader’s style of interacting
with followers and the degree to which the situation
allows the leader to control and influence.
– Assumptions:
 A certain leadership style should be most effective in
different types of situations.
 Leaders do not readily change leadership styles.
– Matching the leader to the situation or changing the
situation to make it favorable to the leader is required.

Contingency Theories… (cont’d)
 The Fiedler Model (cont’d)
– Least-preferred co-worker (LPC) questionnaire
– An instrument that purports to measure whether a person
is task- or relationship-oriented.
– Determines leadership style by measuring responses to
18 pairs of contrasting adjectives.
– High score: a relationship-oriented leadership style
– Low score: a task-oriented leadership style
– Situational factors in matching leader to the situation:
• Leader-member relations
• Task structure
• Position power

Fiedler’s Model: Defining the Situation
Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
Position Power
Influence derived from one’s formal structural
position in the organization; includes power to hire,
fire, discipline, promote, and give salary increases.
Task Structure
The degree to which the job assignments are
procedurized.

Findings of the Fiedler Model
Either change leaders or the situation to improve effectiveness

Hersey and Blanchard’s Situational Leadership
Theory
 Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness.
Leader: decreasing need
for support and supervision
Follower readiness:
ability and willingness
Unable and
Unwilling
Unable but
Willing
Able and
Willing
Directive High Task and Relationship
Orientations
Supportive
Participative
Able and
Unwilling
Monitoring

 Hersey and Blanchard’s Situational Leadership Theory
(SLT)
– Argues that successful leadership is achieved by
selecting the right leadership style which is contingent
on the level of the followers’ readiness.
• Acceptance: leadership effectiveness depends on
whether followers accept or reject a leader.
• Readiness: the extent to which followers have the
ability and willingness to accomplish a specific task.
– Leaders must relinquish control over and contact with
followers as they become more competent.

Leadership Styles and Follower Readiness
(Hersey and Blanchard)
Willing
Unwilling
Able
Unable Directive
High Task
and
Relationship
Orientations
Supportive
Participative
Monitoring
Follower
Readiness
Leadership
Styles

 Path-Goal Theory
The theory that it is the leader’s
job to assist followers in attaining
their goals and to provide them the
necessary direction and/or support
to ensure that their goals are
compatible with the overall
objectives of the group or
organization.

 Path-Goal Model
– States that the leader’s job is to assist his or her
followers in attaining their goals and to provide direction
or support to ensure their goals are compatible with
organizational goals.
– Leaders assume different leadership styles at different
times depending on the situation:
• Directive leader
• Supportive leader
• Participative leader
• Achievement oriented leader

The Path-Goal Theory
E X H I B I T 11–4

11-30
Contemporary Approaches to Leadership
 Leaders as communicators
 Framing/Enclosing the meaning of events
 Leaders inspire followers through words, ideas,
and behaviors:
– Charismatic Leadership
– Transformational Leadership
– Authentic Leadership

11-31
Charismatic Leadership
 An enthusiastic, self-confident leader
whose personality and actions
influence people to behave in certain
ways.
Characteristics of charismatic leaders:
1. Have a vision.
2. Are able to articulate the vision.
3. Are willing to take risks to achieve the
vision.
4. Are sensitive to the environment and
follower needs.
5. Exhibit behaviors that are out of the
ordinary.

Cont’d
 How Charismatic Leaders Influence Followers
 Articulate an appealing vision
 Communicates a new set of values
 Model behaviors for those values
 The Potential Dark Side of Charismatic
Leadership
 Use organizational resources for personal benefit
 Remake companies in their own image
 Allow self-interest and personal goals to override
organization’s goals

11-33
Transformational Leadership
 Transactional leaders - motivate their followers in the
direction of established goals by clarifying role and task
requirements
 Transformational leaders - inspire followers to transcend
their own self-interests for the good of the organization
.Leaders who also are capable of having a profound and
extraordinary effect on their followers.
 Why Transformational Leadership Works
1. Creativity --Followers are encouraged to be more innovative
and creative
2. Goals--Followers pursue more ambitious goals and have
more personal commitment to them
3. Vision --Engenders commitment from followers and greater
sense of trust

11-34
Authentic Leadership: Ethics as the Basis for
Leadership?
 Authentic leaders know who they are, what they believe
in and value, and act on those values and beliefs openly
and candidly
– Credibility
– Create trust
– Encourage open
communication
– Socialized Charismatic
Leadership

Developing Credibility and Trust
 Credibility/Reliability (of a Leader)
– The assessment of a leader’s honesty, competence,
and ability to inspire by his or her followers
 Trust
– Is the belief of followers and others in the integrity,
character, and ability of a leader.
• Dimensions of trust: integrity, competence,
consistency, loyalty, and openness.
Is related to increases in job performance,
organizational citizenship behaviors, job
satisfaction, and organization commitment.

Suggestions for Building Trust
Practice openness.
Be fair.
Speak your feelings.
Tell the truth.
Show consistency.
Fulfill your promises.
Maintain confidences.
Demonstrate competence.

11-37
Finding and Creating Effective Leaders
 Selection:
– Personality tests for leadership traits
– Interviews to match relevant situation-specific
experience to job situation
 Training:
– Train those willing to change their behavior
– Teach general management skills
– Teach charismatic and transformational leadership
skills – greatest organizational outcomes result

THE NATURE OF MOTIVATION
 Being able to effectively motivate employees is a challenge that
managers face in all types and sizes of organizations.
“Everything that we give to our workers gets returned to us in
terms of efficiency, quality, loyalty, and innovation.”
 Motivation is a process that starts with a physiological or
psychological need that activates a behavior or a drive that is
aimed at a goal.
 Every employee is expected to show increased and qualitative
productivity by the manager. To achieve this the behavior of the
employee is very important. The behavior of the employees is
influenced by the environment in which they find themselves.
An employee's behavior will be a function of that employee's
innate drives or felt needs and the opportunities he or she has
to satisfy those drives or needs in the workplace.

FEATURES OF MOTIVATION
 “Motivation is the act of stimulating someone or
oneself to get desired course of action, to push right
button to get desired reactions.”
 The following are the features of motivation :
1. Motivation is an act of managers
2. Motivation is a continuous process
3. Motivation can be positive or negative
4. Motivation is goal oriented
5. Motivation is complex in nature
6. Motivation is an art
7. Motivation is different from job satisfaction

Defining Motivation
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial/organizational goal
3. Persistence: how long a person tries
Motivation
Is the process that initiates, guides and maintains goal-oriented
behaviors.
Is the result of an interaction between the person and a situation
.The processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal. Motivation works best
when individual needs are compatible with organizational goals.

MOTIVATIONAL FACTORS
 There are several factors that motivate a person to work. The
motivational factors can be broadly divided into two groups:
 I. MONETARY FACTORS:
 Salaries or wages: Salaries or wages is one of the most
important motivational factors. Reasonable salaries must be
paid on time.
 Bonus: It refers to extra payment to employee over and above
salary given as an encouragement. The employees must be
given adequate rate of bonus.
 Incentives: The organization may also provide additional
incentives such as medical allowance, educational allowance,
HRA etc.

Motivational factors(cont’d)
II. NON MONETARY FACTORS:
1.Status or job title
2.Appreciation and recognition
3.Delegation of authority
4.Working conditions
5.Job security
6.Job enrichment
7.Workers participation
8.Good superiors
9.Cordial relations

Need and importance of motivation
 Motivation offers several Benefits/ importance to the
organization and to the employees:
1. Higher efficiency
2. Reduce absenteeism.
3. Reduces employee turn over.
4. Improves a corporate image.
5. Good relations.
6. Improved morale/self-confidence.
7. Reduced wastages and breakages.
8. Reduced accidents.
9. Facilitates initiative and innovation.

Motivators
 Intrinsic
– A person’s internal desire to do something,
due to such things as interest, challenge,
and personal satisfaction.
 Extrinsic
– Motivation that comes from outside the
person, such as pay, bonuses, and other
tangible rewards.

THEORIES OF MOTIVATION
 Early Theories of Motivation
 Maslow’s Hierarchy of Needs
 MacGregor’s Theories X and Y
 Herzberg’s Two-Factor Theory
 Contemporary Theories of Motivation
 Goal-Setting Theory
 Job Designing Theory
 Expectancy Theory

Hierarchy of Needs Theory (Maslow)
Hierarchy of Needs Theory
There is a hierarchy of five
needs—physiological, safety,
social, esteem, and self-
actualization; as each need is
substantially satisfied, the next
need becomes dominant.

Maslow’s Hierarchy of Needs
1. Physiological
includes hunger, thirst, shelter and other bodily needs
2. Safety
includes security and protection from physical and emotional
harm
3. Social
includes affection, belongingness, acceptance, and friendship
4. Esteem
includes internal esteem factors such as self-respect, autonomy,
and achievement; and external esteem factors such as status,
recognition, and attention
5. Self-actualization
the drive to become what one is capable of becoming; includes
growth, achieving one’s potential, and self-fulfillment

Maslow’s Hierarchy of Needs
Lower-Order Needs
Needs that are satisfied
externally; physiological
and safety needs.
Higher-Order Needs
Needs that are satisfied
internally; social, esteem,
and self-actualization
needs.
E X H I B I T 6–1
Source: Motivation and Personality , 2nd ed,, by A.H. Maslow, 1970.
Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ.

Theory X and Theory Y (Douglas McGregor)
Theory X
Assumes that employees dislike
work, lack ambition, avoid
responsibility, and must be
directed and coerced to perform.
Theory Y
Assumes that employees like
work, seek responsibility, are
capable of making decisions,
and exercise self-direction and
self-control when committed to
a goal.
Assumption: Motivation is maximized by participative decision
making, interesting jobs, and good group relations.

Two-Factor Theory (Frederick Herzberg)
 Job satisfaction and job dissatisfaction are created by different
factors. Attempted to explain why job satisfaction does not result in
increased performance.
 Hygiene factors: extrinsic (environmental) factors that create job
dissatisfaction.
 Motivators: intrinsic (psychological) factors that create job
satisfaction.

Two-Factor Theory -Frederick Herzberg (cont’d)
Two-Factor (Motivation-Hygiene) Theory
Intrinsic factors are related to job satisfaction,
while extrinsic factors are associated with
dissatisfaction.
Hygiene/maintenance Factors
Factors—such as company policy
and administration, supervision,
and salary—that, when adequate
in a job, Satisfy workers. When
factors are adequate, people will
not be dissatisfied.

Goal-Setting Theory
 The theory that specific and difficult goals lead to
higher performance.
– Goals tell an employee what needs to be done and
how much effort will need to be expended.
– Specific goals increase performance; difficult goals,
when accepted, result in higher performance than do
easy goals; and feedback leads to higher performance
than does nonfeed back.
– Specific hard goals produce a higher level of output
than does the generalized goal of “do your best.”
 The specificity of the goal itself acts as an internal
stimulus.

Expectancy Theory
 The strength of a tendency to act in a certain way depends
on the strength of an expectation that the act will be
followed by a given outcome and on the attractiveness of
that outcome to the individual.
 The theory focuses on three relationships:
 Effort-performance relationship or the probability perceived
by the individual that exerting a given amount of effort will
lead to performance.
 Performance-reward relationship or the degree to which the
individual believes that performing at a particular level will
lead to the attainment of a desired outcome.
 Rewards-personal goals relationship or the degree to which
organizational rewards satisfy an individual’s personal goals
or needs and the attractiveness of those potential rewards
for the individual.

Individu
al Effort
Individual
Performance
Organizational
Rewards
Personal
Goals
1 2 3
1. Effort -performance relationship
(expectancy)
2. Performance -reward relationship
(instrumentality)
3. Rewards - personal goals relationship
(valence/attractiveness)
Expectancy Theory(cont’d)

Steps to Increasing Motivation, Using Expectancy Theory

Job Design Theory
Characteristics:
1. Skill variety
2. Task identity
3. Task significance
4. Autonomy
5. Feedback
Job Characteristics
Model
Identifies five job
characteristics and their
relationship to personal
and work outcomes.

Job Design Theory (cont’d)
 Job Characteristics Model
– Jobs with skill variety, task identity, task significance,
autonomy, and for which feedback of results is given,
directly affect three psychological states of
employees:
• Knowledge of results
• Meaningfulness of work
• Personal feelings of responsibility for results
– Increases in these psychological states result in
increased motivation, performance, and job
satisfaction.

The Job Characteristics Model

Skill Variety
The degree to which a job requires
a variety of different activities.
Task Identity
The degree to which the job requires completion of
a whole and identifiable piece of work.
Task Significance
The degree to which the job has a substantial
impact on the lives or work of other people.

Autonomy
The degree to which the job provides substantial
freedom and discretion to the individual in
scheduling the work and in determining the
procedures to be used in carrying it out.

Feedback
The degree to which carrying out the work activities
required by a job results in the individual obtaining
direct and clear information about the effectiveness
of his or her performance.

Computing a Motivating Potential Score
People who work on jobs with high core dimensions are
generally more motivated, satisfied, and productive.
Job dimensions operate through the psychological states in
influencing personal and work outcome variables rather
than influencing them directly.

From Theory to Practice:
Guidelines for Motivating Employees
 Use goals
 Ensure that goals are
perceived as
attainable
 Individualize rewards
 Link rewards to
performance
 Check the system for
equity
 Use recognition
 Show care and
concern for
employees
 Don’t ignore money

Chapter 5-Leadership and Motivation.pdf

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Chapter 5-Leadership and Motivation.pdf