15- motivation and leadership
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©2004 by Nelson, a division of Thomson Canada Limited 1
Chapter 15
Motivation and Leadership
©2004 by Nelson, a division of Thomson Canada Limited 2
What Would You Do?Leadership: Dealing with tragedy Sandler O’Neill is an investment
banking firm located in the World Trade Center on September 11
Top leaders are lost in tragedy Can new leadership help the firm
survive this catastrophic event?
©2004 by Nelson, a division of Thomson Canada Limited 3
Learning Objectives:What is Motivation?After reading the next section, you should be able to:
1. explain the basics of motivation
©2004 by Nelson, a division of Thomson Canada Limited 4
Basics of Motivation
Exhibit 15.1
©2004 by Nelson, a division of Thomson Canada Limited 5
Basics of Motivation
Effort and performance Need satisfaction Extrinsic and intrinsic motivation Motivating with the basics
©2004 by Nelson, a division of Thomson Canada Limited 6
Work Performance and Motivation
Exhibit 15.2
©2004 by Nelson, a division of Thomson Canada Limited 7
Effort and PerformanceJob performance = Motivation x Ability x Situational
constraints
Job performance how well someone performs a job
Motivation effort put forth on the job
Ability knowledge, skills, and talent of job incumbent
Situational constraints factors beyond individual’s control impacting
performance
©2004 by Nelson, a division of Thomson Canada Limited 8
Need Satisfaction Needs
physical or psychological requirements that must be met
Unmet needs motivate people Four approaches
Maslow Alderfer McClelland Herzberg
©2004 by Nelson, a division of Thomson Canada Limited 9
Need Satisfaction and Motivation
Exhibit 15.3
©2004 by Nelson, a division of Thomson Canada Limited 10
Extrinsic and Intrinsic Rewards Extrinsic rewards
tangible and visible to others contingent on performance
Intrinsic rewards natural rewards associated with performing a task for
its own sake
©2004 by Nelson, a division of Thomson Canada Limited 11
Rewards and Motivation
Exhibit 15.5
©2004 by Nelson, a division of Thomson Canada Limited 12
Motivating withthe Basics Ask people what their needs are Satisfy lower-order needs first Expect people’s needs to change Satisfy higher-order needs by
looking for ways to allow employees to experience intrinsic rewards
©2004 by Nelson, a division of Thomson Canada Limited 13
Learning Objectives:How Perceptions and Expectations Affect Motivation
After reading the next two sections, you should be able to:
2. use equity theory to explain how employees’ perceptions of fairness affect motivation3. use expectancy theory to describe how
workers’ expectations about rewards, effort, and the link between rewards and
performance influence motivation
©2004 by Nelson, a division of Thomson Canada Limited 14
Equity Theory Components of equity theory How people react to perceived
inequity Motivating with equity theory
©2004 by Nelson, a division of Thomson Canada Limited 15
Components ofEquity Theory Inputs
employee contributions to the organization Outcomes
rewards employees receive from the organization
Referents others with whom people compare themselves
Outcome/Input ratio comparison of outcomes to inputs
©2004 by Nelson, a division of Thomson Canada Limited 16
Outcome/Input Ratios
Exhibit 15.6
©2004 by Nelson, a division of Thomson Canada Limited 17
Inequity When people perceive that their O/I
ratio is different from their referent’s. Underreward
referent’s O/I ratio is greater than yours experience anger or frustration
Overreward referent’s O/I is less than yours possibly experience guilt
©2004 by Nelson, a division of Thomson Canada Limited 18
How People React to Perceived Inequity (Underreward) Reduce inputs Increase outcomes Rationalize inputs or
outcomes Change the referent Leave
©2004 by Nelson, a division of Thomson Canada Limited 19
Equity and Motivation
Exhibit 15.7
©2004 by Nelson, a division of Thomson Canada Limited 20
Motivating with Equity Theory Look for and correct major
inequities Reduce employees’ inputs Make sure decision-making
processes are fair distributive justice procedural justice
©2004 by Nelson, a division of Thomson Canada Limited 21
Expectancy Theory
Components of expectancy theory
Motivating with expectancy theory
©2004 by Nelson, a division of Thomson Canada Limited 22
Components of Expectancy Theory Valence
the attractiveness or desirability of a reward Expectancy
perceived relationship between effort and performance
Instrumentality perceived relationship between performance
and rewardsMotivation = Valence x Instrumentality x Expectancy
©2004 by Nelson, a division of Thomson Canada Limited 23
Expectancy and Motivation
Exhibit 15.8
©2004 by Nelson, a division of Thomson Canada Limited 24
Motivating withExpectancy Theory
Systematically gather information to find out what employees want from their jobs
Clearly link rewards to performance Empower employees to make decisions
that enhance expectancy perceptions
©2004 by Nelson, a division of Thomson Canada Limited 25
Learning Objectives:What is Leadership?After reading the next two sections, you should be able to:
4. explain what leadership is5. describe who leaders are and what effective leaders do
©2004 by Nelson, a division of Thomson Canada Limited 26
LeadershipLeaders versus managers
Substitutes for leadership: Do leaders always matter?
©2004 by Nelson, a division of Thomson Canada Limited 27
Managers versus Leaders
Exhibit 15.9
©2004 by Nelson, a division of Thomson Canada Limited 28
Substitutes for Leadership: Do Leaders Always MatterLeadership substitutes
subordinate, task, or organizational characteristics that make leaders redundant or unnecessary
professional orientation, intrinsically satisfying work, cohesive work groups
Leadership neutralizers subordinate, task, or organizational characteristics
that interfere with a leader’s actions subordinate’s ability, intrinsically satisfying work,
organizational rewards beyond leader’s control
©2004 by Nelson, a division of Thomson Canada Limited 29
Who Leaders Are and What Leaders Do Leadership traits Leadership behaviours
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Leadership Traits Drive Desire to lead Honesty/integrity Self-confidence Emotional stability Cognitive ability Knowledge of the business
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What Really WorksIntelligence
Dominance
Extroversion
Leadership Traits Do Make a Difference
©2004 by Nelson, a division of Thomson Canada Limited 32
What Really WorksPerformance and Charisma
Charisma and Perceived Leader Effectiveness
Charisma and Leader Satisfaction
©2004 by Nelson, a division of Thomson Canada Limited 33
LeadershipBehaviours Initiating structure
degree to which leader structures followers’ roles by setting goals, giving directions, setting deadlines, and assigning tasks
Consideration extent to which a leader is friendly,
approachable, supportive, and shows concern for employees
©2004 by Nelson, a division of Thomson Canada Limited 34
Learning Objectives:Situational LeadershipAfter reading the next two sections, you should be able to:
6. explain Fiedler’s contingency theory7. discuss Hersey & Blanchard’s situational theory
©2004 by Nelson, a division of Thomson Canada Limited 35
Putting Leaders in the Right Situation: Fiedler’s Contingency Theory
Leadership style: Least preferred co-worker
Situational favourableness Matching leadership styles to
situations
©2004 by Nelson, a division of Thomson Canada Limited 36
Fiedler’s Contingency Theory
Exhibit 15.12
©2004 by Nelson, a division of Thomson Canada Limited 37
Leadership Style: Least Preferred Co-worker Leadership style is the way a leader
generally behaves toward followers leaders are generally incapable of changing
their leadership styles Style is measured by the Least
Preferred Co-worker scale (LPC) relationship-oriented task-oriented
©2004 by Nelson, a division of Thomson Canada Limited 38
Situational Favourableness How a particular situation either
permits or denies the leader’s ability to lead
Three factors leader-member relations task structure position power
©2004 by Nelson, a division of Thomson Canada Limited 39
Situational Favourableness
Exhibit 15.14
©2004 by Nelson, a division of Thomson Canada Limited 40
Matching Leadership Styles to Situations
Exhibit 15.15
©2004 by Nelson, a division of Thomson Canada Limited 41
Adapting Leader Behaviour: Hersey & Blanchard’s Situational TheorySituational leadership
leaders need to adjust their leadership styles to match followers’ maturity
Worker maturity ability and willingness of worker to take
responsibility for directing one’s own work four levels of maturity:
M1 – neither willing nor able M2 – willing but not able M3 – able but not willing M4 – able and willing
©2004 by Nelson, a division of Thomson Canada Limited 42
Leadership Styles Leader chooses style based on worker’s
maturity for a specific task Four styles:
telling — high task/low relationship selling — high task and relationship participating — low task/high relationship delegating — low task and relationship
©2004 by Nelson, a division of Thomson Canada Limited 43
Strategic Leadership
After reading this next section, you should be able to:
8. explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership
©2004 by Nelson, a division of Thomson Canada Limited 44
Visionary Leadership
Charismatic leadership
Transformational leadership
©2004 by Nelson, a division of Thomson Canada Limited 45
Charismatic Leadership Creates an exceptionally strong
relationship between leader and followers
Charismatic leaders: articulate a clear vision based on strong
values model those values communicate high expectations to followers display confidence in followers’ abilities
©2004 by Nelson, a division of Thomson Canada Limited 46
Types of Charismatic Leaders Ethical charismatics
provide development opportunities for followers open to positive and negative feedback recognize others’ contributions share information emphasize interests of the group
Unethical charismatics control and manipulate followers do what is best for themselves not the organization only want positive feedback only share information beneficial to themselves
©2004 by Nelson, a division of Thomson Canada Limited 47
TransformationalLeadership
Generates awareness and acceptance of group’s purpose and mission
Gets employees to see beyond their own needs and self-interest
Goes beyond charismatic leadership Different from transactional leadership
©2004 by Nelson, a division of Thomson Canada Limited 48
Transformational Leadership Transformational leaders are
visionary and they use:
Inspirational motivation Intellectual stimulation Individualized consideration
©2004 by Nelson, a division of Thomson Canada Limited 49
What Really Happened?Leadership: Dealing with Tragedy Deceased employees’ families
given pay check for the rest of the year insurance coverage for five years
Jimmy Dunne became manager and provided strong leadership developed skills in negotiation, calmness,
patience, support, while maintaining strong business focus
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