Professional, Practical, Proven

Academy 2019/2020

Business ManagementLeadership and Motivation

Lecture 13

1) Differences between leaders and managers2) Key skills of effective leaders3) Types of leadership behaviour4) The link between leadership and power5) Different theories of motivation6) How to manage communications

Contents

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Leadership and Motivation

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• A process of leading a group and influencing that group to achieve its goals. It’s what leaders do. (Robbins et al 2015)

• Its about persuasion and influence

Leadership Defined

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• An interpersonal process whereby the organisation attempts to influence employees in accomplishing an objective and can be demonstrated by any employee at any level of an organisation

Organisational Leadership

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Difference between Management and Leadership

Managers Leaders

Have subordinates Have followers

Have a work focus Have a people focus

Seek comfort Seek risk

Seek stability Seek change

Are reactive Are proactive

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Skills of Effective LeadersEmpathy Understanding the goals/situations of

others

Competency Strong reasoning and moral principles

Communication Comfortable running meetings and making presentations

Forward looking

Ability to set goals and have a vision ofthe future

Emotional and Socialintelligence

Awareness of one’s own and others emotions and an ability to manage them

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Different Types of Leadership Approaches

Trait

Behavioural

Contingency

Charismatic

Situational

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• Leader born not made • Set of traits shared by leaders

• Adaptability• Assertiveness• Passion• Self-confidence• Social intelligence• These are found in non-leader too

• No single recipe for leadership

The Trait Approach

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The Trait Approach

Benefits Limitations

Certain traits are measurable and can be identified

Situational factors are secondary

Can examine such traits in potential employees

Socio–economic factors have a role to play

Possible to identify futureleaders

Nature versus nurture is not conclusive

Certain traits are flexible and can be learned over time

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• Specific behaviours differentiate leaders from non-leaders• Ohio State University - Two principle dimensions

• Concern for people - mutual trust with subordinates• Concern for task – structuring tasks and goals

• Michigan Leadership studies – three criteria• Task-oriented – guiding employees in setting tasks that

are challenging and rewarding• Relationship oriented – considerate, helpful and

supportive of subordinates• Participative leadership – promote , foster and encourage

collaboration through teamwork

The Behavioural Approach

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The Behavioural Approach

Benefits LimitationsLooks at more dimensions thantrait theory

Very general and may discount peripheral influence such as background and social status

More plausible Situational factors are secondary

Backed up by scientific studies Leadership qualities highlighted in studies will not necessarily guarantee success

Possible to shape behaviour of potential leadership candidates

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• More complicated that simple traits or behaviours • Traits and behaviours interact with situational factors• Fielder’s LPC scale

• Change the leader to suit the situation, or• Change the situation to suit the leader• Favourability (more control) depends on relationship with

and maturity of subordinates, task structure, level and position of power

The Contingency Approach

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• No ideal leader, both task-oriented or relationship-oriented leaders can be effective depending on the situation

• Good leadership-subordinate relation, highly structured task, high leader position power – favourable situation

• Task oriented leaders are more effective in extremely favourable or unfavourable situations

• Relationship-oriented leaders perform better in situations of intermediate favourability

The Contingency Approach

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• Based on an individual's ability to influence others through their own inspirational qualities rather than through formal position power

The Charismatic Approach

Characteristics of Charismatic Leaders

Strong needs for power Portray self-sacrifce on behalf of the company

Self confident Astute ‘reader’ of the business environment

Strong beliefs in their ideas Often unconventional

Visionaries who communicate effectively

Cultivate a certain image

Take innovative actions to achieve their goals

Dominant and have strong desire to influence others

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• Hersey and Blanchard – define leadership in terms of the direction and support the leader provided to subordinates

• Leadership is task relevant and adaptable to the situation• Leadership depends on the style and the group maturity• Four Styles

• Directing - roles defined by the leader and closely monitored

• Coaching – roles defined with input from subordinates• Supporting – leader makes decisions and delegates the

processes, ultimately the control is with the follower• Delegating – leader is involved in decision making but the

follower will decide when and how the leader will be involved

The Situational Approach

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• Hersey and Blanchard identified four levels of maturity;• M1 – workers lack the skill and unwilling to take

responsibility for the job• M2 – workers lacking responsibility for the task being done

but willing to work at the task• M3 – worker capable of doing the task but lack the

confidence to take on responsibility• M4 – workers capable and willing to take on the

responsibility

The Situational Approach

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The Situational Approach

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• Power is the ownership of control or command over others and is a measure of a person’s ability to control others

• Downward power – senior management influence employees

• Upward power - employee influence the decisions of the leader

Leadership and the Use of Power

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• Legitimate Power - based on structure of the organisation. Higher levels dictate to lower levels

• Reward Power - the more valuable the reward available to a manager the more power derived from controlling it

• Coercive Power – power to administer penalties

• Expert power – based on specialised knowledge that others need

• Referent Power – derives from others wishing to be like a manager

Sources of Power

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• Hierarchy of Needs (Abraham Maslow)

• Existence-Relatedness-Growth (ERG)Theory (Clayton Alderfer

• Achievement Theory (David McClelland)

• Two-Factor Theory (Frederick Herzberg)

Motivation Theories – Content Theories

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Maslow’s Hierarchy of Needs

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• When one need is satisfied, others become stronger • A satisfied need is not a motivator so timing is important

Maslow’s Hierarchy of Needs

Benefits Limitations

Helps managers identify motivating factors

Simplistic, over generalised

Separate the physical from the emotional

Doesn’t consider other aspects of human experience such as aesthetics, culture

Self actualisation  can be applied  in workplace scenarios through career and personal development

May satisfy higher level before lower level

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• Existence • Physiological and safety needs

• Relatedness• Social and external esteem needs

• Growth• Self-actualisation and internal esteem needs

Existence-Relatedness-Growth

Existence Relatedness Growth

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Existence-Relatedness-Growth

Benefits Limitations

Simplifies Maslow’s Hierarchy Simplistic

Growth needs are especially relevant to managers who seek to develop employees

Does not address culture

Needs are simultaneous Could be viewed as just a condense version of Maslow’s Hierarchy

Questionable relevance in the contemporary environment

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Main factor in willingness to perform is the intensity of an individual's actual need for achievement

Need for achievement

Need for affiliation

Need for power……………………………….usually one is dominant

Underlines the importance of ‘ person-job fit’

Achievement Theory - McClelland

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Achievement Theory - McClelland

Benefits Limitations

Each element has ramifications in the workplace

Overly general

Managers can develop rewards that encourage achievement

More than one element could be predominant for a given individual

Managers can implement social programmes to unify the workplace and promote cohesion

Values like power can be interpreted very differently across cultures

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• Focussed on the impact of the job and the environment on performance

• Motivating factors primarily intrinsice.g. achievement, recognition, responsibility,

advancement, the work itself (job content)

• Hygiene factors (extrinsic) do not motivate but absence of them can cause dissatisfaction

e.g. policies, quality of supervision, conditions, relationships, salary, status, job security

Herzberg’s Two-Factor Theory

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Herzberg’s Two-Factor Theory

Benefits Limitations

Very applicable to the workplace No attempt to measure the relationship between satisfaction and performance 

Managers can easily determine the motivators and de‐motivators

Some factors are bi‐polar  (both motivate and/or de‐motivate)

Initiatives to develop motivations and reduce de‐motivations can be put in place

No evidence that satisfied workersimprove productivity

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• Theory X, Theory Y (Douglas McGregor)• Expectancy Theory (Victor Vroom)• Equity Theory (John Adams)

Motivation Theories – Process Theories

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• Based on how managers perceive employees

Theory X, Theory Y (Douglas McGregor)

• Theory X (Authoritarian Management)

– Average person dislikes and avoids work– People must be forced with threat of punishment– Average person prefers to be directed, avoid

responsibility, is unambitious and mostly just wants security

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• Based on how managers perceive employees

Theory X, Theory Y (Douglas McGregor)

• Theory Y (Participative Management)

– Employees enjoy work and want a challenge– People apply self-control and self- direction– Commitment is a function of rewards– Usually accept and often seek responsibility– Imaginative, creative problem solving– Intellectual potential only partly utilised

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Relationship between effort put in and expectations of rewardEffort-performance linkagePerformance-reward linkageAttractiveness of reward

Motivation=Expectancy x Instrumentality x Valence

Expectancy =do I believe the effort will lead to performance

Instrumentality =do I believe performance will lead to reward?

Valence = do I value the reward?

Expectancy Theory

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Expectancy Theory

Benefits Limitations

Identifies that people decided on what they want

People ‘s estimates differ

It is measurable Valence is subjective

Aims to be predictive Individuals can never have complete knowledge of outcomes

Clearly states that motivation is made up of positive expectationand positive valence together

Does not measure performance, only motivation

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Sometimes referred to as the “Justice Theory”.

Employees get demotivated if they feel their inputs (efforts, loyalty, flexibility, skill) are greater than their outputs (salary, bonuses, praise, job security)

Idea is to strike a healthy balanceMotivation can only be expected where employees perceive their treatment to be fair.

Equity Theory (John Adams)

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Equity Theory (John Adams)

Benefits LimitationsHelps managers identify whetheremployees are generally satisfied or dissatisfied in job situations

Too simplistic

Doesn’t consider cultural or socio-economic variables

Managers can analyse inputs against outputs and so implement strategies to increase motivation

May be hard to get the balance between inputs and outputs

Helps classify the elements that lead to motivation/de-motivation so that each can be addressed

Doesn’t account for flaws in human work practice, i.e. laziness or lack of experience

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How to Manage Communication

Sender Encoding Channel Decoding Receiver 

Feedback

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What Barriers Keep Communication from Being Effective?BARRIER DESCRIPTION

Filtering Manipulation of information to make it appear more favourable to the receiver

Selective Perception Selectively seeing and hearing

Information Overload Too much information to process

Emotion How receiver feels when a message is received

Language Words have different meanings to different people

Gender Reactions differ

National Culture Different languages and cultural perspectives

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How Can Managers Overcome Communication Barriers?BARRIER DESCRIPTION

Use Feedback  Check the accuracy of what has been communicated – or what you think you heard?

Simplify Language Use words  that the intended audience understands

Listen Actively Listen for the full meaning of the message without making premature judgement or interpretation – or thinking about what you are gong to say in response

Constrain Emotions Recognise when your emotions are running high. When they are, don’t communicate until you have calmed down

Watch Nonverbal Cues

Be aware that your actions speak louder than words, and keep the two consistent.

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