Chapter Six & Seven.pdf

Chapter Six
Leading/ Directing
1/26/2023 By G/medhn A. (MA) 1

Unit Objectives
At the end of this chapter, students should be able to:
– Define the leadership function of management.
– Explain why leadership is needed
– Differentiate Managers Vs Leaders
– Identify and discuss the different theories leadership
– Identify and discuss the different source of power
– State & Distinguish the different styles of leadership
– Analyze Why some leaders are effective in their
activities while others may fail.
– Define what is motivation mean & Theories of
motivation ?
– Define what communication mean is and explain its
processes
– Identify & discuss the types of communication on the
bases of different classifications
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What is Mean by Leadership?
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 Meaning of Leading
• Different authors define leading in different ways, but the general ideas of
each definition give the same messages. Therefore, directing is simply defined as;
– The process of influencing people so that they will contribute to the
organization & group goals or stimulating organizational members to
work efficiently & effectively for the attainment of organizational goals
/objectives.
– Influencing means motivating people to contribute their maximum efforts
for the achievement of organizational goals; but it does not to mean
coercing/ forcing, imposing sanctions or pushing people at the behind.
– A function of management which is related with instructing, guiding and
inspiring human factor in the organization to achieve organizational
mission and objectives.
– Directing is a challenging function of management, because it deals with
the human element of the organization
• Elements of Directing: Managers to direct individuals require
1. Leadership
2. Motivation &
3. Communication
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Meaning of Leadership
No single and universal definition for the term leadership.
o Some of the Common definitions are -
Leadership is “the process of influencing the activities of an
organized group toward goal achievement.” Rauch & Behling, (1984)
“it is defined as a process whereby an individual influences a group
of individuals to achieve a common/shared goal.” Northouse (2007).
It is the act of influencing and inspiring followers to perform their
duties willingly, competently and enthusiastically for the
achievement of group objectives.
Leadership is “the ability of an individual to influence, motivate,
and understand behaviors of others which enable to contribute
toward the effectiveness and success of the organization.
Leadership is about articulating visions, embodying values, and
creating the environment within which things can be accomplished.
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 Components of leadership From the above definitions.
Leadership is a Process:
Leadership is a two-way, interactive event
leadership is not a characteristic or trait with which
only a few, certain people are endowed with at
birth
leaders affect and are affected by their followers
either positively or negatively.
Leaders and followers share objectives:
leaders work with their followers to achieve
objectives that they all share.
Goals imposed by leaders are generally harder and
less effectively achieved than goals developed
together.
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 Components of leadership From the above definitions.
Articulating Visions, Missions, Goals and embodying
values,
Leadership Operates in Groups:
Leadership is about influencing a group of people
who are engaged in a common goal or purpose.
Leadership is about influence & motivating others
It is the ability to influence followers, peers, and
bosses in a work by exercising their influence
ethically. Without influence, it is impossible to be
a leader.
It is primarily a process of positive influence. i.e-
the power to change or affect something with out
directly forcing and controlling
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1.2. Characteristics of Creative and successful Leaders
A creative & Successful leader possesses the following
characteristics
1. Ethical: An ethical leader is always fair & no favorites
and treats every one equally. They respect for the law
2. Leadership by example/Role models:
3. Confidence: If a leader does not belief in himself, no
one else will.
4. Persuasiveness: The ability to persuade others to
one‟s own point of view, make persons under your
want to do what he/she wants them to do.
5. Critical and creative thinkers: They have the capacity
to recognize problems and to have evidence to draw
on when asserting something as fact.
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1.2. Characteristics of Creative ….
6. Trustworthy: They foster a positive, collaborative r/ship
where that trust is returned, allowing us to rely on each
other
7. Timing: A creative & Successful leader consists of a
combination of alertness, imagination and foresight
8. Faith: a leader must believe in his people as well as in
the goal towards which he is leading them.
9. Emotional Stability/Maturity: they are not moved by
emotion or sentiment, but he should analyze the problem
rationally and take decisions without bias.
10. Goodwill: understands the feeling of others and take
decisions on the basis of his followers, and then he will
win the goodwill of his followers. Etc.
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Characteristics of Bad Leadership
Some of the Characteristics of Bad Leadership are
– Attempting to control employees through orders,
control and creating of fear
– Exhibiting the Do as I say, not as I do mentality
– Providing inadequate support
– Withholding information/not being transparent
– Treating them as if they are lucky to have a job
– Not respecting the rules, regulations, discipline
– Staying only in your office and being report focused
– Disconnecting themselves from the people they are
leading
– Us versus them mentality…
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 The Need for Leadership
 The successful achievement of organizational objective is greatly the manifestation
of the leaders‟ ability to lead his followers.
 The following points justify the need/importance of leadership
– Internal change– Leadership helps to coordinate the efforts of diverse
organizational units & to solve internal conflicts and settle differences
of opinion.
– External change- Organizations exist in a changing environment. Due to this,
leaders are needed to identify the strategic mission of the organization to
adapt to its changing environment.
– Directing group activities
– A source of motivation or Inspiration
– To complete organizational structure- Leaders are needed to structure the
tasks, decide who should do what, and delegate work assignments.
– Builds sound work environment- An efficient work environment helps in
sound and stable growth. Therefore, human relations should be kept into
mind by a leader.
– Providing guidance: A leader has to not only supervise but also play a guiding
/instructing/role for his/her subordinates
– Developing good human relations…
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 Are Leaders Born or Made?
o Many people believe that leaders are born not
made. Because they believe that, there are certain
inborn qualities such as initiatives, courage,
intelligence and humor, which could be gained
inborn and together help a man to be a leader
but they are not the only factors to become a
leader.
oEnvironment, past opportunities,
oFormal education, personality, and many other
factors play important roles in the development of
leadership quality.
– Leadership style is not static. But it is an achievement,
not only an inheritance.
– Everyone can have some leadership potential that can
be more fully actualized.
– Hence, it is Both
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 Leadership Style
– Leadership style is the behavior exhibited by a leader
during influencing followers to accomplish organizational
objectives.
– It is the ways in which the functions of leadership are
carried out.
– Leadership style is the ways how the leaders behave
towards their followers in the accomplishment of the
work.
Some of the leadership styles are discussed below:
1. Autocratic or Dictatorial Leadership
2. Participative or Democratic Leadership
3. Laissez-faire Leadership
– Classifying the style of leadership gives possibility to identify
conditions in which one or the other style is the most appropriate in
a given system.
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1. Autocratic or Dictatorial Leadership style ( ‟‟I‟‟ Approach).
These kinds of leaders are characterized by:
– Limiting discussion on ideas and new ways of doing things
– Do not welcome suggestions from employees,
– Communication tends to be primarily in one direction from top to bottom.
– Such a leader usually shows high concern for the task and low concern for the
people.
– workers are not involved in decision making.
– Decision making powers is centralized in the leader.
– Rigidity/ inflexibility
– followers are expected to do what they are told.
– give definite instructions, emphasize task performance,
– Staffs are expected to obey orders without receiving any explanations
– Production is good when the leader is present, but poor in the
leader‟s absence.
– Closely supervises and controls people when they perform certain tasks.
– Use coercion, threat and authority to enforce discipline and ensure
performance.
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Advantages of Autocratic leadership when;
– The followers are new & unfamiliar for the job and have had no
experience.
– Time is limited
– If the leader is solely responsible for making and carrying out a
decision.
– Individuals/group lack skill and knowledge.
– The group does not know each other
– During crisis or emergency situation
– Organizational rules and regulation are violated;
Disadvantage
– Reduces morale resulting in poor productivity in the long run.
– It is unsuitable when the work-force is knowledgeable about their
jobs
– If the job calls for team work and cooperative spirit.
– It can be very dangerous in this age of technological and sociological
complexity.
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2. Democratic Leadership Style (“We approach”)
– It is also known as participative leadership.
– This ensures better management-labor relations, higher morale and
greater job satisfaction
Characteristics Democratic Leadership Style
– Decision making is shared by the leader and the group
– The leader shows greater concern for his people‟s interest,
through friendly and helpful to them.
– Takes followers as co-operative partners and takes into
consideration their competence.
– A democratic leader follows the majority opinion as expressed
by his group.
– New ideas/change proposed by a group are respected
– Develops a feeling of responsibility with in the group
– Increases the quality of work and productivity.
– Information flows from top to bottom and vice-versa etc.
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Advantages of Democratic Leader Ship Style
– It allows active participation of employees
– Increase productivity and satisfaction.
– Workers develop a greater sense of self-esteem, due to importance
given to their ideas and their contribution.
– It results in higher employee morale.
Disadvantages of Democratic Leader Ship Style
This kind of L/ship style is Disadvantageous when:
– It requires some favorable conditions in that the labor must be literate,
informed and organized. This is not always possible.
– Group members lack skill and knowledge
– A high degree of conflict is present.
– Lack of necessary motivation, self-control and discipline within the
collective as whole;
– Some group members may feel alienated if their ideas are not accepted
for action. This may create a feeling of frustration and ill-will.
– This approach is very time consuming
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3. Laissez-Faire Leadership style (“free-rein” or “Hands-off” style.
This is characterized by:
o Allowing the employees to establish their own goals and to make their
own decisions.
o The leader exerts little or no influence on the group.
o It allows greater freedom and responsibility for people.
o Concentrated on complete delegation of authority to subordinates.
o It can be failed if the leader does not know well the competence and integrity of
his people and their ability to handle this kind of freedom.
Advantages of Laissez-Faire
o It creates an environment of freedom, individuality as well as the team
spirit.
o It is highly creative, highly motivated and achievement-oriented.
Disadvantages of Laissez-Faire:
o It may result in disorganized activities which may lead to inefficiency and
disorder.
o Insecurity and frustration may develop due to lack of specific decision
making authority and guidance.
o Some members may put their own interests above the group and team
interests.
o It is not suitable if group members have a low degree of skill and
knowledge. Or if the group members expects to be told what to do.
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Conclusion
Three factors that influence which leadership style to use.
The manager‟s personal background: What
personality, knowledge, values, ethics, and
experiences does the manager have. What does he or
she think will work?
Staff being supervised: Staff individuals with different
personalities and backgrounds; the leadership style
used will vary depending upon the individual staff and
what he or she will respond best to.
The organization: The traditions, values, philosophy,
and concerns of the organization influence how a
manager acts
No one best style - leaders must adjust their leadership style
to the situation as well as to the people being led
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Leadership Theories/Approaches
A theory is a coherent group of tested/researched
general propositions, that can be used as
principles of explanation and prediction for a
given of phenomena:. Synonyms, principle,
law, doctrine.
Some of leadership theories are as follows:-
1. Trait theories of Leadership
2. Behavioral theories of leadership
3. Situational theories
4. McGregor's Theory X and Theory Y
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1. Trait Theories of Leadership
– Trait means quality. According to this theory, leadership
behavior is influenced by certain qualities of a person
/leader/.
– This theory believes leaders possess certain specific inborn
traits, which are inherited rather than acquired/made
which may include:
• Empathy, Confidence, Emotional Stability/Social
Maturity, Courage, Achievement Drives, Intelligence,
etc
– These theories were content theories, focusing on "what"
an effective leader is, not on 'how' to effectively lead.
– In short, people become leaders because, in some special way
they are different from others.
– This theory believes that leadership traits are inherited and
cannot be learned.
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Criticism of Trait theories of Leadership
There is no finite set of traits to distinguish
successful from unsuccessful leaders.
It is difficult to indicate what mix of traits is
necessary to make an effective leader. Its
measurement is problematic.
All the traits are not identical with regard
to the essential characteristics of a leader.
It ignores the environmental factors, which
may differ from situation to situation.
Some traits can be acquired by training and
may not be inherited.
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2. Behavior Approach or Theory of Leadership
– This theory studies leadership by looking at leaders in terms of
what they do.
– It is not based on a person‟s traits rather based on his acts.
– The leader‟s effectiveness is judged in terms of individual
subordinate outcome.
– concentrated on explaining the behavior of leaders.
– The behavior of followers is changed according to the changes
in the behavior of the leaders
3. Situational Approach or Theory of Leadership
– The Situational Leadership Model suggests that there is no “one
size fits all” approach to leadership.
– According to this theory, a leader is strongly affected by the
situation.
– Thus, it is the situation that shapes the leadership qualities.
– It believes that, there is a link between the group of workers
and its leaders.
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4. McGregor's Theory X and Theory Y
McGregor's advocated that leadership strategies are influenced by a leader's
assumptions about human nature.
As a result, McGregor summarized two contrasting sets of assumptions
(Theory X and Theory Y) made by managers in an organization.
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5.5. Leadership Vs. Management
– Leadership requires eliciting teamwork and cooperation
from a large network of people and motivating a
substantial number of people in that network. But
oManagement is less concerned about motivating a
large network of people.
Leadership focuses on potential- creating and supporting
change to vitalize the organization by:
Establishing direction,
Aligning, motivating and inspiring of people Where as:
Management means setting objectives and focusing on
consistently producing key results through:
Planning and budgeting,
Organizing and staffing, and Controlling
– A leader makes frequent use of creative problem solving and
imagination to bring about change.
o While, a manager tends toward making more frequent
use of standard, well-established solutions to problems.
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Management Vs Leaders
Manager
1. Administers
2. Focuses on systems and
structure
3. Relies on control
4. Has a short range view
5. Doing things right
6. Asks “how” and “when”
7. Focuses on the present
8. Management is responsive
9. Use Authority
10. Managers put in to practice
Leader
1. Innovative and creative
2. Focuses on people
3. Inspires or empower trust
4. Has long-range perspective
5. Doing the right thing
6. Asks “what” and “why”
7. Looks toward the future
8. Leadership is proactive
9. Use Power
10. Leaders have good visionary
ideas
27
By Ins.G.A (MA)
1/26/2023
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Source of Power
– Power is the ability to influence others„ behavior to accomplish
preferred result. This can be classified on the bases of:
a. Positional Power ( Legitimate, Reward & Coercive Powers)
b. Personal Power ( Expert & referent Powers)
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a. Position power: is derived from top management and is delegated
down the chain of command. OR
It is the ability to influence others through authority.
Position power consists of:
1. Legitimate Power
It is based on one‟s position in the formal hierarchy/position.
Subordinates will follow a manger‟s orders because the
organization defines him or her as the boss.
2. Reward Power (the carrot): Leaders also use rewards to shape the
attitudes and behaviors of staff.
This power is based upon the ability to give or influence the
rewards and incentives for the subordinates in the form of:
Promotions, Increase in pay,
Bonuses or other form of recognition for a job well done.
3. Coercive Power (the stick)
This is the ability to influence others by punishment or threats of
punishment. Example
Psychological, Emotional, or Physical threat can be a basis for
coercive power. 29

2. Personal Power
This source of power refers to the ability to influence others'
behavior simply because of the relationship they have with you.
The capacity of influencing others is dependent on the power you
have. These consists of Expert & Referent Power
 Expert Power
This power derives from special ability and knowledge that the
leader have, depends on education, experience…
Expert power can be exercised even when a person does not occupy a
formal leadership position.
Expertise will not be sufficient on its own, however leaders
can continue build their expertise power base by:
Keeping up to date with and sharing information on strategic initiatives.
Progressively building your reputation as a competent leader.
 Referent Power
This power is not designated or acquired because of a position, but
because of the ability to develop followers from the strength of their
own personality (charismatic style).
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Concepts of Motivation
The word motivation is derived from the Latin word ‟motive‟
which means needs, desires, wants or drives within the individuals
Motivation is the act of stimulating someone or oneself to get a
desired course of action.
It is the set of psychological processes that cause the arousal,
direction, and persistence of individual‟s behaviour toward
attaining a goal.
All motives are directed towards goals and the needs and desires
affect or change behavior, which becomes goal oriented.
Motivation is the internal drive to accomplish a particular goal. In
a work setting, motivation is what makes people want to work.
The performance of an organization is determined by :
a. The level of ability to do certain work and
b. Level of motivation
Performance= Ability X Willingness. Hence motivation is needed to
create willingness in the minds of workers to do a job.
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Importance of Motivation
– successful job performance is determined not only by ability
but also by motivation.
• Motivation is important for an organization because it :-
– Puts human resources into action
– Improves level of efficiency of employees
– Reduced employee turnover-
o incentive schemes help to retain the existing labors.
– Willingness to work-
o Creates willingness on the part of the worker to do the work in a
better way
– Help in realizing organizational goals
– Encouraging Potential Employees- To Join The Organization
– Sense of belongingness-
o Proper motivation scheme promotes closer rapport between
workers & the organization.
o This creates workers to feel that their organization belongs to them.
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 Types of Motivation
– Motivation can be classified on several bases.
 On the basis of approach, motivation can be classified as positive and negative.
Negative Motivation-
– is made based on force of fear. It has benefit in the short run.
– It results the disloyalty to the group as well as to the organization
– it is also used when the worker fails to complete the work which may be treated as
demotion, dismissal, layoff, play-cut, etc.
Positive Motivation- is based on rewards such as praise, involvement, pride, delegation of
authority and responsibility...
 On the basis of the nature of reward used, motivation may be extrinsic or intrinsic.
Extrinsic motivation is available only after the completion of the job. Example:
Increase in wages, retirement benefits, rest periods, health insurance and the like
While:
Intrinsic motivation is available at the time of performance of the work. This
motivation is independent of financial rewards.
Praise, recognition, power and the like are also examples of intrinsic motivations.
 On the basis of the type of incentives used, motivation may be financial or non-financial.
Financial motivation: is directly or indirectly associated with money
– Refer to Chapter Three ( Compensation part of staffing process)
Non financial motivation- is motivation which is not associated with monetary
rewards. In detail Refer to Chapter Three ( Compensation part of staffing process)
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 Theories of Motivation
– Human behavior is complex in nature. Motivational theories are not
universally accepted to explain the complex human behavior. But they
help managers to improve their understanding of why people behave as
they do.
– Human needs or desires, which are internalized and which give drive to
individual behavior.
– They examine what specific factors within individuals or their
environment arouse, sustain or stop certain behavior.
– Theories of motivation are generally categorized into content and process
theories of motivation,
1. Content Theories of Motivation
I. Maslow's Hierarchy of Needs Theory
II. Herzberg's two-factor theory
III. McClelland Achievement Needs theory
IV. Alderfer‟s ERG theory
2. Process Theories of Motivation
a) Equity Theory
b) Expectancy Theory
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I. Maslow's Hierarchy of Needs Theory
– Maslow proposes that humans are motivated by multiple needs
and these needs exist in five hierarchical order ranges from "lower"
to "higher" needs
– As lower needs are fulfilled there is a tendency for other, higher
needs to emerge.”
 This motivation theory is based on two assumptions.
1. Only needs not yet satisfied can influence behavior. A satisfied need
cannot influence or motivate behavior.
2. Needs are arranged in a hierarchy of importance. Once one need is
satisfied, another emerges and demands satisfaction.
– The first three level needs at the bottom are known as
“deficiency” needs, because they must be satisfied in order to
ensure the individual's very existence and security and make him
fundamentally comfortable.
– The top two sets of needs are termed "growth" needs because they
are concerned with personal growth, development and realization
of one‟s potential.
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Maslow‟s need hierarchy theory
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1. Physiological needs
– They are biological needs required to survive & preserve human life.
e.g. the desire for food, water, air, and shelter etc.
– It is the lowest level in Maslow‟s hierarchy. They have to be met before higher
level needs emerge.
– It can be satisfied through providing incentives like adequate wages and salary,
bonuses and other fringe benefits will will be highly motivational.
– Employees will accept any job that meets those needs.
2. Safety/Security needs
– Includes the desire for safety, job security, stability, and the absence of
pain, threat, or illness, Protection from physical and emotional harm.
Example providing pension plan, medical plans, insurance
3. Affiliation needs (Social need)
– Are the desire for friendship, love, acceptance and a feeling of belonging in
one‟s relationships with other person
• The management can satisfy these needs by providing opportunities for
employees to interact society with each other through:
– organize sports programs, cultural events, and company celebrations,
social get together
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4. Esteem Needs
– This need includes the need or the desire for feelings of achievement,
prestige, status, power and the desire to attain recognition from others,
– The management can satisfy these needs through:
o Designing more challenging tasks and provide positive feedback on
performance of employees.
o Give recognition and encouragement for performance and
contribution and delegate additional authority to subordinates
– People then would begin to feel that they are useful and have
some positive effect on their surrounding environment
5. Self-Actualization /fulfillment Needs
The desire to become what one is capable of becoming; includes
growth, achieving one‟s potential, and self-fulfillment
At this level, the person seeks challenging work assignments that allow
for creativity and opportunities for personal growth and advancement.
Individuals who strive for self-actualization seek to increase their
problem-solving abilities.
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Limitations of Maslow‟s Theory
– It is important that all employees do not have the same types of
needs.
– Different people could have different needs that motivate them at any
given point in time.
– The order suggested by Maslow may not be applicable to everybody.
– A single need cannot motivate an individual. There may be several &
that too in combinations, existing.
– Hence, the theory may not have universal validity.
II. Herzberg's Two-Factor Theory
• He suggested that people‟s satisfaction and dissatisfaction are
influenced by two independent sets of factors. Such as:
1. Motivator factors- are the primary cause of job satisfaction and
2. Maintenance /hygiene‟s- are job dissatisfaction
Factors that result in job satisfaction are termed 'motivators' while
those that simply prevent dissatisfaction are termed as „Maintenance‟/
'hygiene„ factors.
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1. Motivational factors or Satisfiers
– These factors are related to the nature of work (job content)
and are intrinsic to the job itself.
– These factors have a positive influence on morale, satisfaction,
efficiency and higher productivity.
– The presence of these factors motivates workers & at the same
time, absence of these does not cause dissatisfaction.
– These positive feelings associated with achievement,
recognition & responsibility, the job itself, advancement&
Growth etc.
2. Maintenance or Hygiene factors:
– Hygiene factors do not motivate people. They simply prevent
dissatisfaction and maintain status quo.
– The presence of these factors maintains motivation at zero level, but
absence of these factors causes serious dissatisfaction
– They are related to the environment in which the job is performed.
They are extrinsic factors, or factors external to the job
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Maintenance or hygiene factors include
– company policy to administration,
– technical supervision, salary, fringe benefits,
– working conditions, job security & interpersonal relations
In general Herzberg believed that,
– hygiene factors cause much dissatisfaction if they are not
present, but don‟t provide strong motivation when they are
present.
– Motivational factors lead to strong motivation & satisfaction when
they are present but don‟t cause much dissatisfaction when they
are absent.
 Limitations of the Two Factor Theory
 Herzberg„s two factor theory does not consider situational
variables
 He believed in a relation between productivity and satisfaction.
His research focused on satisfaction rather than productivity.
 This theory does not use any all inclusive measure.
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III. The McClelland's need Achievement Theory
– This theory uses need as the central focus. He identified three learned or
acquired needs, he called manifest needs. These are needs for
achievement, affiliation & power.
1. The need for Power (nPaw): is the need to dominate, influence &
control the behavior of other people and to manipulate the
surroundings
2. The need for Affiliation (nAff): The need for affiliation is concerned
with establishing and maintaining warm, close, intimate relationships
with other people.
– People with a high need for affiliation are motivated to
express their emotions and feelings to others while expecting
other people to do the same in return.
3. The need for Achievement(is known as nAch): is defined as a desire to
succeed in competitive situations based upon an established or perceived
standard of excellence.“
– It concerns issues of excellence, completion, challenging goals, persistence,
and overcoming difficulties.
– McClelland found that people with a high need for achievement perform
better than those with a moderate or low need for achievement
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IV. Alderfer‟s ERG theory
The E, R and G of Alderfer's theory stand for:
 Existence,
 Relatedness and
 Growth
A. Existence needs
– Are desires for physiological and material well-being.
– They represent (physiological and safety needs)
B. Relatedness needs
– Are desires or satisfying interpersonal relationships.
– relatedness correspondence to social needs of Maslow's
C. Growth needs
– Are desires for continued psychological growth and
development.
– growth needs include esteem and self-realization needs of
Maslow‟s model
 ERG theory of Alderfer argues, as Maslow did, that people do
have needs and those needs are arranged in a hierarchy and that
needs are important determinants of human behavior.

2. Process Theory
While "need theories" of motivation concentrate upon "what" motivates
persons, "process theories" concentrate upon "how" motivation occurs. i.e.
how behavior is initiated, directed, sustained & stopped. Process theories
includes:
a) Equity Theory
b) Expectancy Theory
A). Equity theory
According to J. Stacy Adams, workers compare the reward potential
to the effort they exert.
Equity here refers to fair treatment of employees,
Proposes that people are motivated :-
– to maintain fair/equitable, relationships between themselves and
others, and
– To avoid those relationships that are unfair, or inequitable
Rewards that are received with feelings of equity can foster job
satisfaction and performance and Vise Versa.
1/26/2023 By G/medhn A. (MA) 44

2. Process Theory…
B) Expectancy theory of motivation (Victor Vroom)
 Vroom‟s expectancy theory of motivation focuses on personal
perceptions or outcomes, but not on needs unlike Maslow and
Herzberg.
– The logic is that individuals exert work effort to achieve
performance that results in preferred rewards
– The person's level of effort (motivation) depends upon:
1. Valence: The Value of a reward or outcome. (Effort 
performance Relation ship) example: “If I work hard, I get the
job done.”
2. Expectancy: is the belief that, effort leads to performance. is the
perceived relationship between effort and performance.
 example, “If try harder, I can do better”.
3. Instrumentality: is the perceived relationship between
performance and rewards. For example, “If I perform better, I
will get more pay”.
1/26/2023 By G/medhn A. (MA) 45

Expectancy theory focuses on three relationships.
1. The effort-performance relationship is the probability
perceived by the individual that exerting a given amount of
effort will lead to performance.
– If I give a maximum effort, will it be recognized in my
performance appraisal?
2. The performance-rewards relationship is the degree to which
an individual believes that performing at a particular level
will lead to the attainment of a desired outcome.
– If I get a good performance appraisal, will it lead to
organizational rewards?
3. The rewards-personal goals relationship is the degree to which
the rewards of an organization satisfy an individual‟s
personal goals or needs and the attractiveness of those
rewards.
– if I am rewarded, are the rewards the ones that I find
personally attractive?
1/26/2023 By G/medhn A. (MA) 46

Expectancy theory insists that managers should:
– first determine the outcomes each
employee is likely to want.
–Then they should decide what kinds and
levels of performance are needed to meet
organizational goals, making sure that the
desired levels of performance are
attainable.
–Managers then need to ensure that desired
outcomes and desired performance are
linked.
1/26/2023 By G/medhn A. (MA) 47

 Overall Implications of Motivation Theories
 For the leader/manager in an organization, this review of
motivation theories stimulates
Recognize Individuals Differences -employees are not
homogeneous.
Match people to Jobs- carefully matching people matching
people to jobs
Ensure that employees have hard, specific goals, and feedback
on how well they are doing in pursuit of those goals
Ensure that Goals are perceived as attainable
Individualize rewards because employees have different needs,
Link Rewards to performance Mangers need to make rewards
contingent on performance.
Check the System for Equity Employees
Use better reinforcement strategies
1/26/2023 By G/medhn A. (MA) 48

Communication Defined
– An organization is a group of people working together to achieve a
common goal, and communication is a vital part of that process.
Some of these definitions are the following:
– It is the sharing of information between the sender to the
receiver with the information being understood by the
receiver.
– Communication is the sharing of information from one
source to another
– “Communication is a two way process of exchanging ideas
or information between human beings.” – Murphy & Peck
– “Communication is the process of conveying messages
(facts, ideas, attitudes, & opinions) from one person to
another so that they are understood.” – M.W. Cumming
1/26/2023 49
By G/medhn A.(MA)

Definition…
– Communication can easily be defined as a process of reaching
mutual understanding, in which participants not only exchange
(encode-decode) information but also create and share meaning.
– A process whereby information is encoded and imparted by
sender to a receiver via a channel/medium
Communication cannot exist in the absence of any of the following
four components/elements.
– There are at least two parties (sender & receiver) i.e.
Two-way process
– There is a message (either oral or written) that is intended
to be communicated
– The receiver understands the message passed on to
her/him.
– The receiver responds/conforms the message by nodding or
giving some kind of gesture or by verbally responding; i.e.
there is some kind of feedback.
• Therefore, communication is a process of „sharing‟ rather than simply
sending information.
1/26/2023 50
By G/medhn A.(MA)

Nature of Communication
–Communication is a process
–Communication involves meaning
–Communication is a two way- It shares
thoughts and ideas, which produce
response.
–Communication may be positive, negative
or neutral
–Communication may involve one or more
channels
1/26/2023 By G/medhn A.(MA) 51

 Significance of Communication
– The reason for the growing significance of communication can be
judged from the following main points.
Communication enhance knowledge and skill
Increase Productivity and Efficiency
– When there is a proper communication process taking place
then the productivity and efficiency of the employees
increases.
– This is because the right information is dispelled and the
correct action executed. Therefore there is no, or very less
scope for mistakes to happen.
[[
Helps in decision making
– Good communication system provides all the necessary
information which enables the manager to take strong and
accurate decision making or quality decisions in the proper time.
1/26/2023 52
By G/medhn A.(MA)

Significance of Communication ….
An aid to managerial performance
– With the help of communication, an organization can take appropriate
decision; may solve problems without difficulty; can get things done by
subordinates; can impart the objectives of the organization to the
subordinates.
– Communication relates the organization with the external environment,
and also facilitates managerial functions.
Achieving coordination
– in an organization they may have a large number of employees. There is a
need for coordination among such works to attain organization„s goals.
The coordination is obtained through communication.
Cooperation: Mutual cooperation and understanding between management
and the employees promote organizational peace and maximum
performance.
Increased Productivity: Communication helps in achieving maximum
productivity with minimum cost and eliminates (or at least minimizes) waste.
etc.
1/26/2023 53
By G/medhn A.(MA)

Types of Communication in an Organization
• Communication can be classified into following types-
1. Formal And Informal
2. Verbal And Non-Verbal
3. Internal and External
1. Formal and Informal Communication:
 Formal Communication:
– is communication that occurs within the framework of the
formal organization along the lines of authority established by
the management.
– Formal channels of communication are intentionally defined &
designed by the organization.
– They represent the flow of communication within the formal
organizational structure.
– Typically, communication flows in four separate directions such
as: downward, upward, horizontal, & diagonal communication.
1/26/2023 54
By G/medhn A.(MA)

Types of formal communication in organization
i. Downward communication:
 The Flow of formal messages from
managers/supervisors to subordinates.
 It involves job directions, assignment of tasks &
responsibilities, performance feedback etc.
 its main purpose is to advise, instruct, direct
inform etc. to their subordinates
 Insufficient or unclear messages, message over
load, message distorted as it passes through one
or more intermediaries are some of the potential
problems associated with downward
communication.
1/26/2023 55
By G/medhn A.(MA)

ii. Upward Communication
– Formal messages also flows upward from subordinates to supervisors
and managers.
– Without upward communication, management would never know
how their downward messages were received & interpreted by the
employees
– It includes progress reports on activities, suggestions and complaints
of the worker, staff meetings with supervisors…
• The following types of messages are valuable when communicated
upward.
– What subordinates are doing: highlights of their work, achievements,
progress, & future job plan.
– Outlines of unsolved work problems on which subordinates now
need aid or may require help in the future.
– Suggestions or ideas for improvements within departments or in the
organization as a whole.
– How subordinates think & feel about their jobs, their associates, &
their organization.
1/26/2023 56
By G/medhn A.(MA)

iii. Diagonal communications
– It is the exchange of information among employees in
different work units who are neither subordinate nor
superior to each other.
– Diagonal communication cuts across different functions
and level in an organization.
– It occurs between officers who are at different levels of
authority and who serve under different commands.
– Example: A message transfers from the chief financial
officer sent down to all department heads.
iv. Horizontal (Lateral ) Communication
– it is communication between people or groups at the
same level.
– It helps in task co-ordination, problem solving,
information sharing and conflict resolution.
1/26/2023 57
By G/medhn A.(MA)

 Informal Communication
– Is a communication type that fall outside the formal
channels.
– It does not follow lines of authority as is the case of
formal communication.
– It arises due to the personal needs of the members of
organization.
– Informal communication is based on the informal
relationships that grow up in an organization and is
commonly referred to as "the grapevine".
– Grapevine Communication is an informal or unofficial
flow of communication between the organizational
members through rumors and gossip.
– It may be conveyed by a nod, a glance, a gesture, a
smile, and even silence.
1/26/2023 By G/medhn A.(MA) 58

2. Verbal and Non Verbal Communication
 Verbal Communication:
– Verbal communication consists of the use of spoken words or
verbalization to send messages to others.
– There are two forms in which verbal communication can take:
Such as:
a. Oral Communication and
b. Written Communication.
a. Oral Communication
– Oral communication or the spoken word is a speech. occur
face-to-face with one person or with a group of people. It
occurs via face-to-face communication may be with managers,
peers, or persons external to the organization.
– Oral face-to-face, Telephone, radio, telephone conversations
etc. verbally with words.
– Speeches, presentations, discussions are all forms of oral
communication.
– Oral communication is not only time saving, but it also saves
upon money and efforts.
1/26/2023 By G/medhn A.(MA) 59

1/26/2023 By G/medhn A.(MA) 60
b. Written Communication
– Written communication occurs through a variety of means, such as
business letters, memorandums, reports, telephone messages,
newsletters…
– Effective writing involves careful choice of words, correct order in
sentences formation as well as cohesive composition of sentences
– It has the advantage of recording of the message, can be disseminated
widely with a minimum effort, & allows the sender to think through the
intended message carefully.
Written communication also has several disadvantages, including
– The expense of preparation, Possible misunderstanding by the receiver, &
– The delay of feedback regarding the effectiveness of the message.
The transmission channel or the medium you choose depend on the message
you want to convey and on other factors, such as the, location of your audience,
the need for speed, and the formality of the situation. Here are some examples:
– When immediate feedback is necessary, oral communication channels are
more effective.
– If there is a need to document the communication, written channels are
the best choice.
– If the message should have detailed accuracy, written channels are best.

1/26/2023 By G/medhn A.(MA) 61
Non-Verbal Communication (body language)
– Nonverbal communication refers to information conveyed by
actions & behaviors rather than by spoken or written words.
– most shared understanding comes from nonverbal messages,
such as facial expressions, voice and hand gestures,
– It is also possible to tell the mood of a person by bodily and
facial expressions. It includes
 Body Language, Sign Language(Symbols)
 Facial expressions and eye behavior, Gestures and postures
 Personal appearance…
• Some of the importance of non-verbal communication is:
– To create impressions beyond the verbal element of
communication;
– To repeat and reinforce what is said verbally;
– To manage and regulate the interaction among participants in
the communication exchange;
– To express emotion beyond the verbal element;
– To convey relational messages of affection, power, dominance,
respect, and so on;

3. Internal Communication and External communication
Internal Communication
– Is communication within an organization, which is usually
formal.
– It helps in achieving an organization's goals by informing the
general and specific objectives of the organization either at the
macro or at the micro level to the members of organization.
– Meetings, face-to-face discussions, teleconference, instructions,
seminars etc. are examples of internal communication.
External Communication.
– Refers to interaction with outside members of the
organization such as shareholders, service companies,
customers, general public through
opress releases, advertisements, telegrams, telemessages,
proposals, etc.
– Effective communication to people outside the
organization can help create a good reputation and have a
positive impact on its ultimate success.
1/26/2023 By G/medhn A.(MA) 62

Communication Process
– Communication can easily be defined
as a process of reaching mutual
understanding, in which participants
not only exchange (encode-decode)
information but also create and share
meaning.
– The followings are the common
stages in the communication process.
1/26/2023 63
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1/26/2023 64
By G/medhn A.(MA)

Communication Process
– Source: Is the person who creates a message. It is also
referred to as a sender.
– Encoding is the process of organizing ideas into a series of
symbols, such as words and gestures, designed to
communicate with the receiver.
– Message: is the information that is going to be sent.
– Channel: Messages are conveyed through either verbal or
non verbal
– Decoding : In decoding the receiver interprets the message
and translates it into meaningful information.
– Receiver: a person who receives a message. It is the
destination of the messages
– Feedback: Feedback is any response, verbal or nonverbal,
that a receiver makes to a message.
1/26/2023 65
By G/medhn A.(MA)

Barriers to Communication
–Communication barriers are obstacles
that hinder communication.
–Noise can stop or hinder the process
of actually receiving messages but
other factors, either environmental or
personal can also prevent or distort
communication.
• The major barriers of communication include
the following:
1/26/2023 66
By G/medhn A.(MA)

Barriers…
1. Channel selection:
– Communication may be oral, written, visual or
audio-visual.
– All the media have their relative merits and
limitations. While a properly chosen medium can
add to the effectiveness of a communication, an
unsuitable medium may act as a barrier to it.
– If a salesperson is required to submit a report
based on the comparative sales figures of the last
five years, he will fail to communicate anything if
he writes a lengthy paragraph about it. He has to
present the figures in a tabular form, or in a bar
diagram
1/26/2023 67
By G/medhn A.(MA)

Barriers…
2. Physical barriers
– These include noise, and time & distance.
a. Noise: Anything that interferes with communication
& distorts or blocks the message such as poor
telephone connections, loud noise of machines
around you, distraction that prevents the receiver
from paying attention
b. Time and distance: also act as barriers to
communication. Modern communication facilities
like fax, telephone and Internet are not available
everywhere.
– Even when these technologies are available,
sometimes-mechanical breakdowns render these
facilities ineffective.
– In such cases, the distance between the transmitter
and the receiver becomes a barrier.
1/26/2023 By G/medhn A.(MA) 68

Barriers…
3. Semantic Barriers:
These barriers occur due to differences in individual
interpretations of words and symbols.
4. Perception of reality
– The reality of an object, an event, or a person is
different to different people.
– Reality is not a fixed concept; it is complex, infinite
and continually changing. Besides, each human being
has limited sensory perceptions-touch, sight, hearings,
smell, and taste and each person‟s mental filter is
unique.
– People perceive reality in different ways. No two
persons perceive reality in identical manners. We
make various abstractions, inferences, and evaluations
of the world around us.
1/26/2023 69
By G/medhn A.(MA)

Overcoming Communication Barriers
• It is very important for the management to recognize and
overcome barriers to effective communication using the following
activities
– Striving for accuracy and completeness: defective and partial
messages lead to mistakes and confusion.
– Using proper language or messages: Semantic distortions can be
minimized by communicating the message in direct, simple and
meaningful language.
– Selecting appropriate channels
– Assisting receivers in decoding and interpreting
– Developing proper interpersonal relations: Superiors and
subordinates should develop a feeling of mutual trusts and
confidence. Wherever possible, managers should communicate
through personal contacts and emphasize that communication is
a two-way process.
– Providing an efficient and effective feedback system etc.
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1/26/2023 By Ins. G/medhn A.(MA) 71

Definition
♠ Controlling is any process that guides activity towards
some predetermined goals.
♠ The essence of control lies in checking existing actions
against some desired results determined in the planning
process.
♠ Controlling depends on accurate, reliable and
enforceable standards and on monitoring performance by
people.
♠ Controlling is most closely associated with planning,
because planning establishes goals and the methods for
achieving them.

Importance of Controlling
The purpose of controlling is to define whether people and the
various parts of an organization are on target , achieve the progress
towards the planned objective.
Moreover, an effective system of control helps in realizing the
following benefits:
♠ Basis for future action: Control helps the management to avoid
repetition of past mistakes and provides the basis for future action
♠ Facilitates decision-making: It helps in determining the future
course of action whenever there is a deviation between the
standard and the actual performance.
♠ Policy Verification: For organizational functioning, managers set
certain policies and they become basis in the sense that
organizational performance is reviewed in these lights.
♠ Enables to ensures the performance leads to some pre-
determined goal.
♠ Organizational Efficiency and Effectiveness

Controlling Process
The various steps in controlling, may broadly be
classified into four parts as follows.

Controlling Process….
Step 1. Establish standards/ Predetermined Goals
A control system begins with a set of performance
standards that are realistic and acceptable to the people
involved.
The essence of the control system is to identify and
analyze the causes of deviations to match performance
with standard.
These standards should be properly communicated to
the workers.
Standards can be quantitative and/or qualitative. And it
is based on the objectives predetermined in the
organizational plan.

Controlling Process….
Step 2 Measurement of Performance
♠ Monitoring and measurement is a continuous
activity
♠ Involves collection of data that represents the
actual performance of the activity.
♠ This may be obtained through personal
observation, statistical reports, oral reports and
written reports
♠ Comparison can be made between what is
accomplished and what was intended to be
accomplished.

Step3 Comparing Actual and Standard Performance
♠ During comparison, some deviation might be observed.
♠ These deviations might be significant that can draw the attention
of managers or insignificant and may not need much attention.
♠ If the deviation is significant, managers need to trace back to the
root cause of the deviation.
♠ Such performance is compared with the standard one to find
out whether the various segments and individuals of the
organization are progressing in the right direction.
Step 4 Taking Corrective actions
Once the root cause is find out, the next step is looking for
alternative course of actions that are required to alleviate the
problem.
The selected course of action should be implemented properly so
as not to face the same problem in the future.
No corrective action is required if the evaluation reveals that
events are proceeding according to plan.

Types of Control
Controls can be classified according to the time at which
the control is applied to the activity these are;
1. Preventive control
Takes place prior to the performance of an activity.
Preventive controls are generally the most cost-
effective and it is also called feed forward controls.
– Proper Job descriptions,
– Good training programs, and
– Effective communication of task requirements
– Well established plan- are examples of preventive
controls.

2. Concurrent Controls
It takes place while the task or operation is being
performed.
Management can correct problems before they become
too costly.
This type of control is also known as ongoing control
• Example- direct supervision.
3. Feedback controls
It is a post action and focus on the end results of the
process.
The information derived is not used for corrective
actions on the project because it has been completed.
This helps to prevent mistakes in the future.
• Examples- Financial statements, yearly reports….

 Principles of Controlling
Every organization needs to design its unique control system in
terms of its-
– philosophy, culture, work environment,
– socio-technical system, objectives, and
– external environment.
The following principles are suggested as guidelines for
developing an effective control system.
a. Controls should be based on Objective and Plans
– The actual operational results should be measured
against these standards.
– Aimed at ensuring that strategies, policies and plans
are being implemented properly, and the desired
objectives are being achieved.

Principles of Controlling…
b. Control should be Understandable
– If controls are to be accepted and implemented
effectively, those responsible for operating them
and those affected by them should clearly
understand their purpose and mechanism.
C. Control should be Flexible
– Control should be flexible so as to be adaptable
to changes in objectives, plans, operating
conditions and external environment.

d. Control Should Aim at Corrective Action.
– Controls should not be used as an end in themselves but as a
means to the end of improving performance.
– Control should also ensure that corrective action is taken
promptly with a view to bringing the actual results in line with
the desired objectives.
– An effective control should also point out who is responsible for
them.
e. Controls should be related to Position
– Controls should be related to the position of the manager
concerned.
– Example- Production manager and sales manger need
different kinds of control systems.
– Controls will, therefore, have to be designed to suit the
requirements of each individual manager.

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