Pom unit iv

MG8591 PRINCIPLES OF MANAGEMENT
UNIT - IV DIRECTING
Foundations of individual and group behaviour –
motivation – motivation theories – motivational
techniques – job satisfaction – job enrichment –
leadership – types and theories of leadership –
communication – process of communication –
barrier in communication – effective communication
–communication and IT

Motivation
• Motivation is the willingness to exert high
levels of effort to reach organizational goals,
conditioned by the effort’s ability to satisfy
some individual need.
• Need is some internal state that makes certain
outcomes appear attractive.
Performance=Ability x Motivation
Types of Motives
• Primary Motives
• General Motives
• Secondary Motives

Primary Motives
• Hunger, Thirst, Clothing, Sleep, Shelter (physiologically
based and need not to be learned)
General Motives (physiologically based but must not be learned)
• Motives which cannot be termed primary or
secondary
• Primary needs try to reduce the tension or
stimulation whereas the general need induces the
individual to enhance the amount of stimulation.
Secondary Motives
Secondary motives are not physiologically based and
must be learned
Ex: Need for status, affiliation, Power, etc
Curiosity is an important aspect of human behavior, which also leads to
manipulation and/or general activity.

The Motivation Process
Unsatisfied
need
Tension Drives
Search
behavior
Satisfied
need
Reduction
of
tension

Strategies for Motivating
subordinates
1. Reward risk taking instead of risk avoiding
2. Reward creativity instead of mindless conformity
3. Reward smart work instead of busy work
4. Reward simplification instead of needless complication
5. Reward quietly effective behaviour instead of squeaking
joints
6. Reward working together instead of working against

Remember important words as a
Motivator
 Six important words - “ I admit I made a mistake”
 Five important words- ” You did a good job”
 Four important words -“ What is your opinion?”
 Three important words - “Let’s work together.”
 Two most important words - “ Thank you”
 Single most important word is ”WE”.

MAJOR THEORIES OF MOTIVATION
I.Need Approaches:
- Maslow’s Hierarchy of Needs
- Alderfer’s ERG Theory
- Herzberg’s Two Factor Theory
- McClelland’s Learned Needs Theory
II. Cognitive Approaches:
- Expectancy Theory
- Equity Theory/ Social Comparison
- Goal Setting Theory
III.Reinforcement Theory :
How Rewards & Reinforcements Sustain Motivation Over
Time

Maslow’s Hierarchy of Needs Theory
Works on the assumption that the behaviour of
individuals at a particular moment is usually determined
by their strongest need.
Five needs:
 1. Physiological : Basic needs of hunger, thirst and shelter.
 2. Safety: security and protection from physical and emotional harm
 3. Social: affection, belongingness, acceptance and friendship
 4. Esteem: Need for both self esteem(self respect, autonomy and
achievement) and external esteem (status, recognition and attention)
 5.Self-actualization the drive to become what one is capable of
becoming: includes growth, achieving one’s potential, self fulfillment.

Alderfer’s ERG Theory
Growth Needs NeedNeed
Progression
Relatedness Needs
Existence Needs
ERG theory groups human needs into three broad categories: Existence,
Relatedness, and Growth.
Existence needs include a person’s physiological and physically related safety
needs, such as the need for food, shelter, and safe working conditions.
Relatedness needs include a person’s need to interact with other people, receive
public recognition, and feel secure around people (i.e., interpersonal safety).
Growth needs consist of a person’s self-esteem through personal achievement as
well as the concept of self-actualization.
ERG theory states that an employee’s behavior is motivated simultaneously by
more than one need level. Thus, you might try to satisfy your growth needs (such
as by completing an assignment exceptionally well) even though your relatedness
needs aren’t completely satisfied.

McClelland’s Achievement-Power-Affiliation
Theory (Three Needs Theory)
• This theory is based on the assumption that through life
experiences, people develop various needs.
– The three needs include:
• (1) The need for achievement
– the desire to do something better than it has been done before.
• (2) The need forpower
– the desire to control, influence, or be responsible for other people.
• (3) The need for affiliation
– the desire to maintain close and friendly personal relationships.
• People have all of these needs to some extent.
• The relative strength of the needs influences
the motivation of a person.

• Employees inherently dislike work and, whenever
possible, will attempt to avoid it.
• Because employees dislike work, they must be coerced,
controlled, or threatened with punishment to achieve
desired goals.
• Employees will shirk responsibilities and seek formal
direction whenever possible.
• Most works place security above all other factors
associated with work and will display little ambition.
McGregor THEORY X and THEORY Y
Theory X offered by McGregor assumes that employees dislike
work, are lazy, seek to avoid responsibility, and must be
coerced to perform. It is a negative view about people.
A manager who view employees from a Theory X perspective
believes:

THEORY Y
Theory Y assumes that employees are creative, seek
responsibility, and can exercise self-direction. It is a positive
view about people.
A manager who view employees from a Theory Y
perspective believes:
• Employees can view work as being as natural as rest or
play
• Men and women 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 good decisions widely dispersed
throughout the population and is not necessarily the
sole province of managers.

Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
Motivators (Intrinsic Factors) Hygiene factors (ExtrinsicFactors)
Supervision
Company policy
Relationship with supervisor
Working conditions
Salary
Relationship with peers
Personal life
Relationship with subordinates
Status
Security
Extremely
Neutral
Satisfied Dissatisfied
Extremely
Herzberg’ Motivation-Hygiene Theory
(Two Factor Theory)

This is the recognition by others for a job well done or personal accomplishment.
Motivational Factors
Factors that deal with job content and lead to job satisfaction
Growth
This includes actual learning of new skills, with greater possibility of advancement within
the current occupational specialty as well as personal growth.
Work Itself
The actual content of the job and its positive or negative effect upon the employee
whether the job is Characterized as interesting or boring, varied or routine, creative ,
excessively easy or excessively difficult.
Responsibility
Responsibility refers to the employee’s control over his or her own job or being given the
responsibility for the work of others.
Achievement
Personal satisfaction of completing a job, solving problems, and seeing the results of
one’s efforts.
Advancement
The actual change in upward status in the company.
Recognition

This includes all forms of compensation and focuses on wage or salary increases.
Hygiene Factors
Factors that deal with job context and lead to job dissatisfaction
Company Policies & Administration
The feelings about the adequacy or inadequacy of company and management. This includes
poor communications, lack of delegated authority, policies, procedures, and rules.
Supervision
The competency or technical ability of the supervisor. This includes the supervisors
willingness to teach or delegate authority, fairness, and job knowledge.
InterpersonalRelations
The relationships between the worker and his or her superiors, subordinates, and peers.
Status
Factors that involve some indication of status: private office, important sounding title,
secretary, company car, and other “perks.” Changes in status would be considered under
advancement
Working Conditions
Factors such as physical environment of the job: amount of work, facilities for performing
work, light, tools, temperature, space, ventilation, and appearance of work place.
Job Security
The employee’s job tenure and/or the company’s stability or instability.
Salary

Perceived ratio comparison Employee’s assessment
OutcomesA

OutcomesB
InputsA InputsB
OutcomesA

OutcomesB
InputsA InputsB
OutcomesA

OutcomesB
InputsA InputsB
Inequity (underrewarded)
Equity
Inequity(overrewarded)
*Person A is the employee, and Person B is a relevant other or referent.
Equity Theory Relationship

Equity Theory Propositions
• If paid according to time, over rewarded
employees will produce more than equitably
paid employees and under rewarded
employees will produce less or poorer-quality
output.
• If paid according to quantity of production,
over rewarded employees will produce fewer
but higher-quality units and under rewarded
employees will produce a large number of low-
quality units in comparison with equitably paid
employees.

Expectancy Theory (VIE Theory) – Vroom,1964
Expectancy theory
motivated to exert
claims that people will be
effort on the job when they
believe that doing so will help them achieve the
things they want
Components of motivation:
– Expectancy: The belief that one’s effort will affect
performance
– Instrumentality: The belief that one’s
performance will be rewarded
– Valence: The perceived value of the expected
rewards

Expectancy Theory (Porter/Lawler,1968)
22

GOAL
23
A goal serves as a motivator because it
causes people to compare their present
capacity to perform with that required to
succeed at the goal.
– Goal Setting: The process of setting goals in a
manner that motivates workers to raise their
performance
– Self-Efficacy: One’s own belief about being able
to perform the task.
– Goal Commitment: The extent to which people
invest themselves in meeting a goal and
determination to reach a goal strengthened by
choice, Openness, explicitness

GOAL SETTING PROCESS
Example : we will increase the production by 2
units per employee per hour from next month
• Identify the need or purpose of the goal
• Meet the employees, discuss the need for goal
setting
• Action plan (SMART )
• Ensure facilities available
• Meet at the end of the time frame to get the
reports

Example of Goal Setting
• Specific : A goal is to generate 3 types of financial
statement namely cash flow, budget vs actual and
income
• Measurable : Should be able to assess whether
the three types of statements were generated or
not
• Achievable : The goal would be irrelevant, if the
person had no access to the financial information
• Relevant : The goal would not be useful, if the
organization has no plan to make decision based
on financial statement
• Timely : The statement should be generated by a
certain dead line. Ex: Before board meeting

Goal-Setting Theory (Locke, 1968)
• Locke's research showed that there was a
relationship between how difficult and specific a
goal was and people's performance of a task. He
found that specific and difficult goals led to better
task performance than vague or easy goals.
Five Principles of Goal Setting
Goals must have:
• Clarity.
• Challenge.
• Commitment.
• Feedback.
• Task complexity.
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Reinforcement Theory of Motivation
• How motivation is sustained over time.
• Does not have to rely on needs, perceptions or
cognitions. Managers can design work environment
to provide “reinforcers” that strengthen desired
behaviors & weaken undesired behaviors.
“Motivation is a function of the environment”.
• Others allow for cognitions in that people can
observe rewards and punishments applied to others.
Called social learning or vicarious learning.

Motivation as a Form of Learning:
The Law of Effect
• Behavior that leads toward rewards tends to be repeated
• Behavior that tends to lead toward no rewards or toward
punishment tends to be avoided
• The type of reinforcer & the timing (schedule) of
reinforcement are key
• Positive reinforcement--rewards contingent on exhibiting
the correct behavior.
• Negative Reinforcement or Avoidance Learning
withholding something unpleasant when a desired behavior
is engaged in (e.g., an annoying alarm is avoided when a
machine is used properly) Or, using social learning, noticing
how engaging in some behavior avoids an unpleasant
outcome (e.g., arrive on time and the boss does not shout).

JCM—five Core Job Dimensions
• Skill variety: the degree to which the job requires a variety
of activities so the worker can use a number of different
skills and talents
• 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 affects the
lives or work of other people.
• Autonomy: the degree to which the job provides freedom,
independence, 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 the job results in the individual’s
obtaining direct and clear information about the
effectiveness of his or her performance.

Core job
dimensions
Critical
Psychological
states
Personal
and work
outcomes
High internal
work motivation
High-quality
work performance
High-satisfaction
with the work
Low absenteeism
and turnover
Skill variety
Task identity
Task significant
Autonomy
Feedback
Experienced
Meaningfulness of
the work
Experienced
responsibility for
outcomes of the work
Knowledge of the
actual results of the
work activities
Employee growth-need
strength
The Job Characteristics Model ( JCM)

Contemporary Issues in Motivation
• What is the key to motivating a diverse
workforce?
• Should employees be paid for performance or
time on the job?
• How can managers motivate minimum-wage
employees?
• What’s different in motivating professional
and technical employees?
• How can flexible work options influence
motivation?(compressed workweek, flextime work,
job sharing, telecommuting )

Definitions
• Robert Kreitner:
“leadership is a social influence process in
which the leader seeks the voluntary
participation of subordinates in an effort to reach
organizational objectives.”
• Stephen P.Robbins :
“Leadership is the ability to influence a group
towards achievements of goals.”
LEADERSHIP

• Three key elements of Leadership
Leadership as Process – influence of position
to direct, motivate, and coordinate the group
activities
Leadership as Property- use personal traits
and characteristics to change the attitude of
others. Special trait differentiate him from
the rest.
Leadership as Power- ability to exert force in
getting things done or making things happen.

Characteristics of Leadership
• Process of interpersonal influence
• Leader and followers
• Common goals
• Blend of inspiration, motivation and
• communication
• Continuous exercise

Leadership Vs Management
• Both of them are inter- related
• Leadership is a component of management
• Management includes planning, organizing, leading
and controlling functions for achieving goals.
• Leadership involves influencing people in achieving the
goals set by the management .
• Management uses formal authority in making people
work
• Leadership involves creating influence by the use of
personal traits in motivating and inspiring people to
give better performance.

Function of Leadership
Directing, Supervising, Mediating, Motivating
Directing
• Sharing organizational mission, vision and
objective
• Guiding and leading people
• Divide jobs
• Give instructions
• Assign responsibilities

Function of Leadership Supervising
• Watching, coaching and examining the subordinates
• Ensuring the execution of orders in time
• Helps to improve the performance
Motivating
• Creating willingness to work
• Making others work to achieve organization’s objectives as a
means to satisfy their needs
• Motivate by giving challenging jobs, healthy environment,
sense of belongingness etc
Mediating
• Negotiating between two conflicting parties
• Act as a mediator to resolve the conflict
• Solve problem

LeadershipStyles
• Autocratic (Authoritarian)
• Bureaucratic
• Democratic
• Coercive
• Transactional
• Transformational
• Laissez-Faire

Autocratic(Authoritarian)
• Manager retains power (classical approach)
• Manager is decision-making authority
• Manager does not consult employees for input
• Subordinates expected to obey orders without
• explanations
• Motivation provided through structured rewards
• and punishments

When to use Autocratic
• leadership style
• High-volume production needs
• Limited time for decision making
• New, untrained employees
• Employees are motivated
• Employees do not respond to any other
• Manager’s power is challenged by an
employee

Autocratic Style
ADVANTAGES
• Quick decision making
• Maintain discipline
DISADVATAGES
• Negative motivation
• Lack development of
subordinates
• One way communication
• Not preferred by
subordinates

Bureaucratic
• Manager manages “by the book¨
• Everything must be done according to
procedure or policy
• If it isn’t covered by the book, the manager
refers to the next level above him or her
• Police officer more than leader

When to use
Bureaucratic
• Performing routine tasks
• Need for standards/procedures
• Use of dangerous or delicate equipment
• Safety or security training being conducted
• Tasks that require handling cash

Democratic
• Often referred to as participative style
• Keeps employees informed
• Shares decision making & problem solving responsibilities
• Gathers information from staff members before making
decisions
• Help employees evaluate their own performance
• Allows employees to establish goals
• Encourages employees to grow on the job and be
promoted
• Recognizes and encourages achievement
• Can produce high quality and high quantity work for
long periods of time

When to use
Democratic
• Tokeep employees informed
• To encourage employees to share in decision-making
and problem-solving
• To provide opportunities for employees to develop a
high sense of personal growth and job satisfaction
• Complex problems that require a lots of input
• Toencourage team building and participation.

Democratic style
ADVANTAGES
• Development of
subordinates
• Better decision making with
the views of subordinates
• Increase employee
satisfaction
• Subordinates become
responsible
• Two way communication
DISADVANTAGES
• Time consuming for
decision making
• Leader may be
misinterpreted as
incompetent and
inefficient
• Leaders may try to avoid
responsibility
• May cause indiscipline

• Power from a person’s authority to punish
• Most obvious types of power a leader has.
• Good leaders use coercive power only as a last resort:
– In today’s sophisticated and complex workplace, excessive use
of coercive power unleashes unpredictable and destabilizing
forces which can ultimately undermine the leader using it.
• Tomeet very short term goals
• When left with no other choice
• In times of crisis
When to use Coercive
COERCIVE

Transactional
• Motivate followers by appealing to their own self-interest
• Motivate by the exchange process.
– EX: business owners exchange status and wages for the work
effort of the employee.
• Focuses on the accomplishment of tasks & good worker
relationships in exchange for desirable rewards.
• Encourage leader to adapt their style and behaviorto
meet expectations of followers
When to use it
• Leader wants to be in control
• When there are approaching deadlines that must be met
• Relationship is short term

Transformational
• Charismatic and visionary
• Inspire followers to transcend their self-interest for
the organization
• Appeal to followers' ideals and values
• Inspire followers to think about problemsin new or
different ways
• Common strategies used to influence followers
include vision and framing
Research indicates that transformational leadership is more strongly
correlated with lower turnover rates, higher productivity, and higher
employeesatisfaction.

• When leaders want members to be an active part of
the organization and have ownership to it
• When leaders are building a sense of purpose
• When the organization has a long term plan
• When people need to be motivated
When to use
Transformational

Laissez-Faire
• Also known as the “hands-off style"
• Little or no direction
• Gives followers as much freedom as possible
• All authority or power is given to the followers
• Followers must determine goals, make decisions, and
resolve problems on their own.
When to use it
• Employees are highly skilled, experienced, and educated
• Employees have pride in their work and the drive to do it
successfully on their own
• Outside experts, such as staff specialists or consultants are
being used
• Employees are trustworthy and experienced

Laissez-Faire or Free rein Style
• ADVANTAGES
• High level of motivation
as group runs on its own
• High development of
employees
• Higher job satisfaction
• DISADVATAGES
• No proper direction
• provided (lack focus)
• Lack of prompt decision
• making
• People avoids
responsibility
• Problem of coordination
is created

Qualities of Leadership
• Vision and Foresight
• Intelligence
• Sense of responsibility
• Trustworthy
• Emotional maturity
• Technical knowledge
• Organizing ability
• Motivation and communication skill
• Ability of judgment
• Human relation expert

BASIS MANAGER LEADER
Origin
Aperson becomes a manager by
virtue of his position.
A person becomes a leader on basis of
his personal qualities.
Formal Rights Manager has got formalrights Rights are not available to aleader.
Followers
The subordinates are the followersof
managers.
The group of employees whom the leadersleads
are his followers.
Functions
A manager performs all five
functions of management.
Leader influences people to work willingly
for group objectives.
Necessity
A manager is very essential toa
concern.
A leader is required to create cordial relation
between person working in and for
organization.
Stability It is more stable. Leadership istemporary.
Mutual
Relationship All managers areleaders. All leaders are notmanagers.
Accountability
Manager is accountable for self and
subordinates behaviour,
performance.
Leaders have no well defined accountability.
Concern
A manager’s concern isorganizational
goals.
A leader’s concern is group goals and
member’s satisfaction.
Followers
People follow manager by virtue of
job description. People follow them on voluntarybasis.

LEADERSHIP THEORIES
•
•
•
Trait theories
Behavioral theories
Situational/contingency theories
– Fiedler's Contingency Model
– Path-Goal Theory
– Situational Theory
239

Six Traits (Qualities) that Differentiate Leaders
From non-leaders (Great Man Theory)
• Drive
• Desire to lead
• Honesty and integrity
• Self-confidence
• Intelligence
• Job-relevant knowledge

Behavioural Theory of Leadership
• Imply that leaders can be trained – focus on the way
of doing things
– Structure based behavioural theories – focus on the leader
instituting structures – task orientated
– Relationship based behavioural theories – focus on the
development and maintenance of relationships – process
orientated
• LEADERSHIP TYPES (Michigan Studies ):
– 1. Production Oriented Leaders:
• Focus on the technical or task aspects of the job
• See people as a means to goal accomplishment
– 2. Employee Oriented Leaders:
• Emphasize interpersonal relations
• Take a personal interest in subordinate needs
• Accept individual differences

Blake/Mouton LeadershipGrid
High
Low
9
7
6
5
4
3
2
1
5 6 7 8 9
High
1 2 3 4
Low
1,1 Impoverished Management
He/she has neither a high regard for creating
systems for getting the job done, nor for
creating a work environment that is satisfying
and motivating. The result is disorganization,
dissatisfaction and disharmony.
Most concerned about the needs and feelings of
members of team. These people operate under the
assumption that as long as team members are
8 happy and secure then they will work hard. But
result is a work environment that is very relaxed
and fun but where production suffers.
9,1 Authority ( Produce or Perish)
People in this category believe employee needs
are always secondary to the need for efficient and
productive workplaces. This type of leader is very
autocratic, has strict work rules, policies, &
procedures, and views punishment as the most
effective means to motivate employees.
1,9 Country Club Management 9,9 TeamManagement
Employees understand the organizations purpose
& needs. When employees are committed to
organization’s success, their needs and
production needs coincide. This creates a team
environment, which leads to high satisfaction and
motivation and, as a result, high production.
5,5 Middle of the Road Management
Balance of the two concerns, and it may appear to be an
ideal compromise. When you compromise, you
necessarily give away a bit of each concern, so that
neither production nor people needs are fully met.
Leaders who use this style settle for average
performance.

Situational or contingency approaches to leadership
(spirit of time)
• Some traits and behaviours are effective in a particular situation
and ineffective in another situations.
• According to situation theory, no leadership style is the best for all
times and all situations.
• Situation helps the persons to develop their leadership qualities
and emerge as leaders.
• The leader should adjust his style according to the nature of task,
the type of followers and the environment to improve his
leadership effectiveness.

63
Theoretical Perspectives on Leadership:
The Contingency/Situational Approaches
Situational
Theory
Path–Goal
Theory
Contingency
Model

Fiedler's Contingency Theory of Leadership
65
• Leader Effectiveness = f (leader style, situation favorability)
– Group performance is a result of interaction of
two factors.
1. Leadership style
2. Situational favorableness
• Leadership Style
– This is the consistent system of interactions
that takes place between a leader and work
group.
– An individual's leadership style depends upon
his or her personality and is, thus, fixed.

Least Preferred Coworker (LPC)
66
•
n
The least-preferred coworker (LPC) scale
classifies leadership styles.
– Describe the one person with whom he or she
worked the least well with.
– From a scale of 1 through 8, describe this person
on a series of bipolar scales:
Unfriendly 1 2 3 4 5 6 7 8Friendly
Uncooperative 1 2 3 4 5 6 7 8 Cooperative
Hostile 1 2 3 4 5 6 7 8 Supportive
Guarded 1 2 3 4 5 6 7 8 Open
DEFINITION of 'Least Preferred Coworker Scale ' A scale developed by American scientist
Fred Fiedler to identify whether an individual's leadership style is relationship-oriented or
task-oriented.

Selection of Leadership Styles
67
Relationship oriented:
A high LPC score suggests that the leader has a human relations
orientation
Taskoriented:
A low LPC score indicates a taskorientation.
Fiedler's logic:
Individuals who rate their least preferred coworker in a favorable
light, derive satisfaction out of interpersonal relationship; those
who rate the coworker unfavorably get satisfaction out of
successful task performance

Situation Favorability
68
1. Leader-memberrelations:
The degree to which the employees accept theleader
2. Taskstructure:
The degree to which the subordinates jobs are described in
detail
3. Positionpower:
The amount of formal authority the leader possesses by virtue
of his or her position in theorganization.
The degree a situation enables a leader to exert influence over a group
The focus is on three key situational factors

69
When to Use Which Style?
Low LPCs High LPCs
Low
LPCs
Leader-Member
Relations
Task Structure
Position
Power
Preferred
Leadership
Style
Contingency Model
1
Strong
2
Weak
High
3
Strong
4
Weak
Low
Good
5
Strong
6
Weak
High
7
Strong
8
Weak
Low
Poor

Fielder’s Contingency Model
When to Use Which Style??

Determining the effective leadership Style
• For instance, imagine that you've just started working at a
new company, replacing a much-loved leader who recently
retired. You're leading a team who views you with distrust (so
your Leader-Member Relations are poor). The task you're all
doing together is well defined (structured), and your position
of power is high because you're the boss, and you're able to
offer reward or punishment to the group.
• The most effective leader in this situation would be high LPC
– that is, a leader who can focus on building relationships
first.
• Or, imagine that you're leading a team who likes and respects
you (so your Leader-Member relations are good). The project
you're working on together is highly creative (unstructured)
and your position of power is high since, again, you're in a
management position of strength. In this situation a task-
focused leadership style would be most effective.

Contingency theory: Strengths & Weakness
Strength
•
•
•
•
•
•
•
Supported by a lot of empirical research
Looks at the impact of the situation on leaders
It is predictive
People need not be effective in all situations
Way to assess leader style that could be useful to an
organization
Weakness
Doubt whether the LPC is a true measure of leadership
style
It is cumbersome to use
Doesn't explain what to do when there is a mismatch
between style and situation
• Other situational variables, like training and experience,
have an impact in a leader's effectiveness 249

Implications
• 1. The favorableness of leadership situations should be
assessed
• 2. Candidates for leadership positions should be
evaluated using the LPC scale
• 3. If a leader is being sought for a particular leadership
position, a leader with the appropriate LPC profile should
be chosen
• 4. If a leadership situation is being chosen for a particular
candidate, a situation should be chosen which matches
his/her LPC profile
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House & Mitchell’s Path–Goal
Theory
Leaders can influence subordinates’ motivation by:
1. Teaching employees competencies needed
2. Tailoring rewards to meet employees’ needs
3. Acting to support subordinates’ efforts
Assumptions
1. A leader’s behavior is acceptable and satisfying to
subordinates to the extent that they view it as either an
immediate source of satisfaction or future satisfaction.
2. A leader’s behavior will increase subordinates’ efforts if it
links satisfaction of their needs to effective performance and
supports their efforts to achieve goals.

Path–Goal Theory
Leadership Behavior
Instrumental behavior
(task-oriented)
Supportive behavior
(employee-oriented)
Achievement-oriented behavior
(employee-oriented)
Participative behavior
(employee-oriented)

Path–Goal Theory
Situational Factors
76
Personal characteristics of subordinates
Work environment

Path–Goal Theory Situational
Factors
77
Personal Characteristics of Subordinates
Abilities
Self-Confidence
Personal Needs
and Motivations
Perception of
Leaders

Path–Goal Theory Situational
Factors
78
Work Environment
Exercise of
Power
Culture and
Subculture
Policies
and Rules
Structure
of Tasks
Management
Philosophy

Path-Goal Theory
79
Leader Behaviors
Directive, Supportive
Participative, Achievement Oriented
Subordinate Characteristics
Task Characteristics
Subordinates Goals/ProductivityMotivation

Path Goal Theory: Strengths/Weakness
80
he
e.
p.
cal
or
er
It specifies four conceptually distinct varieties of leadership
Explains how task and subordinate characteristics affect t
impact of leadership
Informs leaders how to choose an appropriate leadership styl
Integrates the motivation principles into a theory of leadershi
Provides a practical model
akness
It is very complex.
It has received only partial support from the many empiri
research studies that have been conducted to test its validity.
It fails to explain the relationship between leadership behavi
and worker motivation.
This approach treats leadership as a one-way event-the lead
Strength
•
•
•
•
•
We
•
•
•
•
affects the subordinate.

The Situational Leadership Theory developed
by Hershey and Blanchard:
• Is there an optimum way for leaders to adjust their behavior with
different followers and thereby increase their likelihood of
success?
• If so, then what factors should the leader base his behavior on?
Four Level of Readiness
• Style 1- High task and low relationship. The “telling” style is
directive.
• Style 2- High task and high relationship. The “selling” style is also
directive, but in a more persuasive, guiding, manner.
• Style3- High relationship and low task. In the “participating”
leadership style there is less direction and more collaboration
between leader and group members.
• Style 4- Low relationship and low task. In the “delegating” style,
the leader delegates and is kept informed of progress

Hersey and Blanchard’s
Situational Leadership Model

Evaluation of the Theory:
• Best used with new hires
• Can be valuable in training and development
• Competent people require the least specific
direction
• Gives false impression that all situations are clear-
cut
• Popular because of its commonsense approach
but not a lot of empirical research to support its
validity
• Situational Leadership is a useful way to get
leaders to think about how leadership
effectiveness may depend somewhat on being
flexible with different subordinates, not on acting
the same way toward them all.

JOB ENRICHMENT• A job design technique that is a variation on the concept of job
enlargement.
• Job enrichment adds new sources of job satisfaction by increasing
the level of responsibility of the employee.
• While job enlargement is considered a horizontal restructuring
method, job enrichment is a vertical restructuring method by virtue
of giving the employee additional authority, autonomy, and control
over the way the job is accomplished. Also called job enhancement
or vertical job expansion.
Tomake jobs which
Have a greater variety.
Requires higher level of knowledge and skills.
Give workers more autonomy.
Give workers more responsibility.
Give workers opportunities for personal growth, and
A meaningful work experience

JOB EVALUATION
• An assessment of the relative worth of various jobs on the
basis of a consistent set of job and personal factors, such as
qualifications and skills required.
• The objective of job evaluation is to determine which jobs
should get more pay than others. Several methods such as
job ranking, job grading, and factor comparison are
employed in job evaluation. Research indicates, however,
that each method is nearly as accurate and reliable as the
other in ranking and pricing different jobs. Job evaluation
forms the basis for wage and salary negotiations
•

The Communication Process
• Idea to communicate
• Encoding
• Transmission
• Receiving
• Decoding
• Action
Sender Encoding Channel Decoding Receiver
Message Message Message Message
feedback
Noise Noise
Noise Noise
Message

Interpersonal Communication
• Message
– Source: sender’s intended meaning
• Encoding
– The message converted to symbolic form
• Channel
– The medium through which the message travels
• Decoding
– The receiver’s retranslation of the message
• Noise
– Disturbances that interfere with communications
14–87

The Interpersonal Communication
Process
14–88

Four Functions of Communication
14–90
Functions of
Communication
Control Motivation
Emotional
Expression
Information

Characteristics & Purpose of Effective Communication
Characteristics
• Complete communication
• Understanding in the same sense
• Message to have substance
• May be written or Oral
• Continuous process
• Mutual understanding

Characteristics & Purpose of effective communication
Purpose
• Sharing ideas ., Toreduce time and cost
• Toimprove relationship., Tosatisfy human needs
• Toavoid gossip and rumors
• Totransmit information -
• To increase managerial efficiency – success of manager depends on
the ability to communicate (75-95% of time spent on
communication)
• To persuade potential employees in the recruitment process of the
merits of working for the enterprise. (The recruits are told about the
company’s organization structure, its policies and practices)
• To enable employees to perform their functions effectively.
• To teach employees about personal safety on the job (This is
essential to reduce accidents, to lower compensation and legal
costs and to decrease recruitment and training costs for
replacements).

Types of Communication
• Formal - official, superior to subordinate
recognised communication system
• Informal – not recognised, originates from informal
group, inaccurate, rumor, private interpretation, it
spreads like wild fire. This is called as grapevine
• Oral
talks, public address, telephonic talk, lectures
Audio visual aids
• Written
Instructions, Orders, Policy, Procedures, posters,
memo, report, information bulletin, news letter,
magazines, newspaper
Methods of Communication

Types of Communication• ORAL (VERBAL) COMMUNICATION
• Face to Face or through a telephone or intercom system.
Generally, in meetings, lectures, interviews, conferences etc., the
communication is oral.
• MERITS OF ORAL COMMUNICATION
• It is a time and money saving device
• There is an element of personal touch
• Doubts can be clarified on the spot
• Important points can be emphasized through body language
• DEMERITS OF ORAL COMMUNICATION
• Not suitable for lengthy communication
• If the communicator is poor in vocal expression, oral
communication is likely to be misunderstood and
misinterpreted.

• WRITTEN COMMUNICATION
• Form of report, statement, circular, note, manual, handbook, letter,
memo.
• MERITS OF WRITTEN COMMUNICATION
• Suitable for lengthy communication
• It can be kept as a permanent record and at times be referred to as
evidence
• Serves as a solid base for taking action against a subordinate who
disobeys it.
• DEMERITS OF WRITTEN COMMUNICATION
• There is a greater chance of the communication being
misunderstood.
• It is very time consuming
• It is difficult to maintain secrecy about the matter communicated
• Suffers from lack of flexibility

• NON-VERBAL COMMUNICATION
• Nonverbal Communication has been defined as communication
without words. It includes apparent behaviors such as facial
expressions, eyes, touching, and tone of voice, as well as less
obvious messages such as dress, posture and spatial
distance between two or more people.
• Everything communicates, including material objects, physical
space, and time systems. Although verbal output can be turned
off, nonverbal cannot. Even silence speaks.

• INFORMAL COMMUNICATION
• People who know each other in the organization talk together
informally.
• One thing they have in common is the organization they work for, so
they talk about the happenings in the organization.
• The grapevine carries two types of organization- work related, people
related
• Work related – employees want to know what is going on in the
organization. When they are not kept informed through formal
channels, they seek information from the grapevine.
• People related – They are curious about the people they work with.
The grapevine carries the type of personal information not generally
communicated through formal channels.

Flow of Communication
• Downward - from executives to subordinates
issue work order, explain policy, explain procedure,
reward/punishment
• Upward - workers to immediate supervisor
Projection of ideas, comments, reactions, report on production
• Horizontal - One person in one level to other
person in same level
Between heads of different dept.

Barriers to Communication
• Physical
Distance, Lack of time, Noise in different divisions,
environmental
• Psychological
Differences in position, absence of mind, fear, status,
bias
• Semantics
Faulty expressions and listening
Eg: Rama and seetha saw the pet animals whenthey
were playing in the park.
Confusion whether animals were playing or rama and
seetha

Barriers to Communication
• Filtering
• Emotions
• Information overload

Methods to overcome Barriers
• Use feedback
• Simplify language
• Listen actively
• Constrain emotions
• Watch nonverbal cues
• Information through proper channel
• Adequate communication facility
• Known language

Malaysia experienced the worst haze since 2005
Forest fires in Indonesia have resulted in a smoky haze blanketing the
South East Asian region for months.

Functions of Communication
• Emotional Expression
– Social interaction in the form of work group
communications provides a way for employees to
express themselves.
• Information
– Individuals and work groups need information to
make decisions or to do their work.
14–104

Distortions in Communications
• Message Encoding
– The effect of the skills, attitudes, and knowledge of the
sender on the process of encoding the message
– The social-cultural system of the sender
• The Message
– Symbols used to convey the message’s meaning
– The content of the message itself
– The choice of message format
– Noise interfering with the message
14–105

Distortions in Communications
• The Channel
– The sender’s choice of the appropriate channel or
multiple channels for conveying the message
• Receiver
– The effect of skills, attitudes, and knowledge of the
receiver on the process of decoding the message
– The social-cultural system of the receiver
• Feedback Loop
– Communication channel distortions affecting the
return message from receiver to sender 14–106

Methods
• Hotlines
• E-mail
• Computer conferencing
• Voice mail
• Teleconferences
• Videoconferences
• Face-to-face
• Telephone
• Group meetings
• Formal presentations
• Memos
• Traditional Mail
• Fax machines
• Employee publications
• Bulletin boards
• Audio- and videotapes
14–107

Evaluating Communication Methods
• Time-space constraint
• Cost
• Interpersonal warmth
• Formality
• Scalability
• Time consumption
• Feedback
• Complexity capacity
• Breadth potential
• Confidentiality
• Encoding ease
• Decoding ease
14–108

• Nonverbal Communication
– Communication that is transmitted without words.
• Sounds with specific meanings or warnings
• Images that control or encourage behaviors
• Situational behaviors that convey meanings
• Clothing and physical surroundings that imply status
– Body language: gestures, facial expressions, and
other body movements that convey meaning.
– Verbal intonation: emphasis that a speaker gives to
certain words or phrases that conveys meaning. 14–109

Interpersonal Communication Barriers
14–110
Defensiveness
National
Culture Emotions
Information
Overload
Interpersonal
Communication
Language
Filtering

Barriers to Effective Interpersonal Communication
• Filtering
– The deliberate manipulation of information to make it appear
more favorable to the receiver.
• Emotions
– Disregarding rational and objective thinking processes and
substituting emotional judgments when interpreting messages.
• Information Overload
– Being confronted with a quantity of information that exceeds
an individual’s capacity to process it.
14–111

Barriers to Effective Interpersonal Communication
• Defensiveness
– When threatened, reacting in a way that reduces the ability to
achieve mutual understanding.
• Language
– The different meanings of and specialized ways (jargon) in
which senders use words can cause receivers to misinterpret
their messages.
• National Culture
– Culture influences the form, formality, openness, patterns, and
use of information in communications.
14–112

Overcoming the Barriers to Effective Interpersonal
Communications
14–113
• Use Feedback
• Simplify Language
• Listen Actively
• Constrain Emotions
• Watch Nonverbal Cues

Active Listening Behaviors
14–114

Types of Organizational Communication
• Formal Communication
– Communication that follows the official chain of command or is
part of the communication required to do one’s job.
• Informal Communication
– Communication that is not defined by the organization’s
structural hierarchy.
• Permits employees to satisfy their need for social
interaction.
• Can improve an organization’s performance by creating
faster and more effective channels of communication.
14–115

Communication Flows
14–116
Lateral
D
o
w
n
w
a
r
d
U
p
w
a
r
d

Direction of Communication Flow
• Downward
– Communications that flow from managers to employees to
inform, direct, coordinate, and evaluate employees.
• Upward
– Communications that flow from employees up to managers to
keep them aware of employee needs and how things can be
improved to create a climate of trust and respect.
14–117

Direction of Communication Flow
(cont’d)
• Lateral (Horizontal) Communication
– Communication that takes place among
employees on the same level in the organization
to save time and facilitate coordination.
• Diagonal Communication
– Communication that cuts across both work areas
and organizational levels in the interest of
efficiency and speed.
14–118

Types of Organizational Communication Networks
• Chain Network
– Communication flows according to the formal
chain of command, both upward and downward.
• Wheel Network
– All communication flows in and out through the
group leader (hub) to others in the group.
• All-Channel Network
– Communications flow freely among all members
of the work team.
14–119

Three Common Organizational
Communication Networks and How They
Rate on Effectiveness Criteria
14–120

The Grapevine
• An informal organizational communication network
that is active in almost every organization.
– Provides a channel for issues not suitable for
formal communication channels.
– The impact of information passed along the
grapevine can be countered by open and honest
communication with employees.
14–121

STEPS IN OPERATIONS
MANAGEMENT• Planning to plan
• Performing a values scan
• Mission formulation
• Strategic business Modeling
• Performance audit and gap analysis
• Integrating action plans
• Contingency plans
• Strategy implementation

Seven major elements of communication process are: (1) sender (2) ideas (3) encoding (4)
communication channel (5) receiver (6) decoding and (7) feedback.
Communication may be defined as a process concerning exchange of facts or ideas
between persons holding different positions in an organisation to achieve mutual harmony.
The communication process is dynamic in nature rather than a static phenomenon.
Communication process as such must be considered a continuous and dynamic inter-
action, both affecting and being affected by many variables.
(1) Sender:
The person who intends to convey the message with the intention of passing information
and ideas to others is known as sender or communicator.
(2) Ideas:
This is the subject matter of the communication. This may be an opinion, attitude, feelings,
views, orders, or suggestions.
(3) Encoding:
Since the subject matter of communication is theoretical and intangible, its further passing
requires use of certain symbols such as words, actions or pictures etc. Conversion of
subject matter into these symbols is the process of encoding.

(4) Communication Channel:
The person who is interested in communicating has to choose the channel for
sending the required information, ideas etc. This information is transmitted to
the receiver through certain channels which may be either formal or informal.
(5) Receiver:
Receiver is the person who receives the message or for whom the message is
meant for. It is the receiver who tries to understand the message in the best
possible manner in achieving the desired objectives.
(6) Decoding:
The person who receives the message or symbol from the communicator tries
to convert the same in such a way so that he may extract its meaning to his
complete understanding.
(7) Feedback:
Feedback is the process of ensuring that the receiver has received the
message and understood in the same sense as sender meant it.

Noise
 Noise hinders effective communication throughout the communication
process. Noise can be from the external (surrounding) environment, such
as from too many messages at the same time or background noise that
interferes with a clear understanding of the message.
 We also refer to some receiver characteristics as ‘noise’, and this is where
their emotions, ethnic background, age, education level or disabilities
may distort or make a message misunderstood.
 Noise in communication, is any distraction that interferes with the proper
transmission of communication, so that the message from the sender
cannot reach the receiver as it was intended by the sender to be
understood.
 It is a major communication barrier, as we will see further on in this
discussion. In tour guiding for example, noise can be the background
sounds of animals at a site while the tour guide is explaining the
attractions.
 It could also be the accent of the local tour guide, which may make it
difficult for the tourists to understand the message he/she is trying to
convey.

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