This document provides an overview of principles of management related to leading and motivation. It defines leading as influencing people to contribute to goals, and motivation as energizing directed and sustained effort toward goals. Key motivation theories are discussed, including Maslow's hierarchy of needs, McGregor's Theory X/Y, Herzberg's two-factor theory, and McClelland's three needs theory. Leadership is defined as influencing willing enthusiasm toward goals. Different leadership styles like charismatic, contingent, and path-goal theories are outlined. The difference between leaders and managers is that leaders have followers while managers have employees working for them.

1. Principles of Management
Leading
Prepared by:
Prof. Seyed Ali Fallahchay

2. Learning outcome
• Definition of leading
• Definition of Motivation and key elements of
motivation.
• Theories of Motivation
• Definition of leadership
• Difference between leaders and managers
• Different leadership styles
• Path-goal theory

3. Leading
• The process of influencing people so that they
will contribute to organizational and group goals.
• Managing requires the creation and
maintenance of an environment in which
individuals work together toward the
accomplishment of common objectives.

4. What is Motivation?
• Motivation refers to the process by which a
person’s efforts are energized directed and
sustained towards attaining a goal.
• Three key elements:
 Energy
 Direction
 Persistence

5. Energy
• The energy element is a measure of intensity
or drive. A motivated person puts forth effort
and works hard however the quality of effort
must also be considered.

6. Direction
• High levels of effort do not necessarily need to
favorable job performance unless the effort is
channeled in a direction that benefits the
organization.

7. Persistence
• Effort that is directed toward and consistent with
organization goals is the kind of effort we want
from employees.
• Finally motivation includes a persistence
dimension. We want employees to persist in
putting forth effort to achieve those goals.

8. Theories of Motivation
• Maslow’s Hierarchy Of Needs Theory
• McGregor’s Theory X and Theory Y
• Herzberg’s Two-Fact Theory
• McClelland’s Three-Needs Theory

9. Maslow’s Hierarchy of Needs Theory
• Maslow argues that each levels in needs hierarchy
must be substantially satisfied before the next need
becomes dominant.
• An individual moves up the needs hierarchy from
one level to the next.
• He considered physiological and safety needs
(lower order needs)
• He considered belongingness, social needs,
esteem, self actualization needs (higher order
needs)
• Lower order needs are predominantly satisfied
externally.
• Higher order needs are satisfied internally.

11. 11
McGregor’s Theory X And Theory Y
• Theory X: the assumption that
employees dislike work, are lazy,
dislike responsibility, and must be
coerced to perform
• Theory Y: the assumption that
employees like work, are creative,
seek responsibility, and can
exercise self-directionDouglas McGregor
(1906-1964)

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• Employees inherently
dislike work and, whenever
possible, will attempt to
avoid it.
• Since employees dislike
work, they must be coerced,
controlled, or threatened
with punishment to achieve
goals.
• Employees will avoid
responsibilities and seek
formal direction whenever
possible.
• Most workers place security
above all other factors
associated with work and
will display little ambition.
• Employees can view work
as being as natural as rest
or play.
• People will exercise self-
direction and self-control if
they are committed to the
objectives.
• The average person can
learn to accept, even seek,
responsibility.
• The ability to make
innovative decision is
widely dispersed throughout
the population and is not
necessarily the sole
province of those in
management positions.
Labeled theory X (Negative) Labeled theory Y (Positive)

13. Herzberg’s Motivation-Hygiene theory
• Developed by Fredrick Herzberg.
• Also known as Two Factor Theory.
• Portrays two different factors – hygiene factors
and motivator factors – as the primary causes of
job dissatisfaction and job satisfaction.

14.  Hygiene factors. (Mostly Extrinsic)
• Source of job dissatisfaction.
• Associated with the job context or work setting.
• Improving hygiene factors prevent people from
being dissatisfied but do not contribute to
satisfaction.

15.  Motivator factors. (Mostly Intrinsic)
• Source of job satisfaction.
• Associated with job content.
• Building motivator factors into the job enables
people to be satisfied.
• Absence of motivator factors in the job results in
low satisfaction, low motivation, and
performance.

16. Herzberg’s “Motivation-Hygiene” Theory
Two independent scales:
Satisfaction and No Satisfaction
• These are the motivators
Dissatisfaction and No Dissatisfaction
• Hygiene or maintenance factors

18. McClelland’s Three-Needs Theory
• David C. McClelland has contributed to the
understanding of motivation by identifying three
types of basic motivating needs.
• He classified three basic motivating needs to:
I. Need for Achievement
II. Need for Power
III. Need for Affiliation

19. Leadership
• The art of process of influencing people so that
they will strive willingly and enthusiastically
toward the achievement of group goals.
• Ideally, people should be encourage to work with
zeal and confidence.
• Zeal is ardor, earnestness, and intensity in the
execution of work.
• Confidence reflects experience and technical
ability.

20. Ingredients of Leadership
• Power,
• A fundamental understanding of people,
• The ability to inspire followers to apply their full
capabilities,
• The leader’s style and development of a
conductive organizational climate.

21. Principles of Leadership
• Since people tend to follow those who offer them
a means of satisfying their personal goals, the
more managers understand what motivates their
subordinates and more they reflect this
understanding in their actions, the more effective
they are likely to be as leaders.

22. Difference Between Leaders and Managers
• The main difference between leaders and
managers is that leaders have people follow
them while managers have people who work for
them.
• A successful business owner needs to be both a
strong leader and manager to get their team on
board to follow them towards their vision of
success.

23. Leaders Vs. Managers
Managers Leaders
Managers have employees. Leaders win followers.
Managers react to change. Leaders create change.
Managers communicate. Leaders persuade.
Managers direct groups. Leaders create teams.
The manager maintains. The leader develop.
The manager administers. The leader innovates.
Try to be heroes. Make heroes of everyone
around them.
Managers are focused. Leaders create shared focus.
Managers relies on control. Leaders inspires trust.
The manager does things right. The leader does the right thing.

24. Charismatic Leadership
“Charismatic Leadership is resting on devotion to
the exceptional sanctity, heroism or exemplary
character of an individual person, and of the
normative patterns or order revealed or ordained
by him”.
Max Weber

25. Qualities of a Charismatic leader
The charismatic leader gather followers through
dint of personality and charm, rather than any form
of external power or authority. Some prominent
qualities of a charismatic leader are as follow:
• Vision
• Speech
• High Principles
• Emotional Sensitivity
• Personality
• Charisma

26. Advantages of Charismatic leadership
• Ability to affect change
• Energetic and driving leader
• Sensitivity to people emotions
• Supportive environment
• Vision and articulation

27. Disadvantages of Charismatic Leaders
• Over reliance on leader
• Lack of clarity
• Failure of vision
• Misarticulating of goals
• Poor management
• Autonomy
• Broken trust

28. Leadership styles based on use of
authority
• Authoritarian or autocratic leader - the leader tells
his or her employees what to do and how to do it,
without getting their advice.
• Participative or democratic leader - the leader
includes one or more employees in the decision
making process, but the leader normally maintains
the final decision making authority.
• Delegative or laissez-fair (free-rein) leader - the
leader allows the employees to make the decisions,
however, the leader is still responsible for the
decisions that are made.

30. Contingency theory of leadership
People become leaders not only because of their
personality attributes but also because of various
situational factors and the interactions between
leaders and group members.

31. Path-goal theory
The main function of the leader is to clarify and set
goals with subordinates, help them find the best
path for achieving the goals, and remove
obstacles.
The theory categorizes leader behavior into four
groups:
1. Supportive leadership behavior gives
consideration to the needs of subordinates,
shows concern for their well-being, and creates
a pleasant organizational climate.

32. 2. Participative leadership allows subordinates
to influence the decisions of their superiors,
which may increase motivation.
3. Instrumental leadership gives subordinate
rather specific guidance and clarifies what is
expected of them. It involves aspects of
planning, organizing, coordinating, and
controlling by the leader.
4. Achievement-oriented leadership involves
setting challenging goals, seeking improvement
of performance, and having confidence that
subordinates will achieve high goals.

33. Transactional leaders identify what needs to be
done to achieve goals, including clarifying roles
and tasks, rewarding performance, and providing
for the social needs of followers.
Transformational leaders articulate a vision,
inspire and motivate followers, and create a
climate favorable for organizational change.