Module 5: Leading

Section 2: Motivating and rewarding employees

Learning objectives• Describe the motivation process• Define needs and explain the hierarchy of needs theory• Differentiate Theory X from Theory Y• Describe the motivation-hygiene theory and equity

theory• Explain the key relationships in expectancy theory• Describe how managers can design individual jobs to

maximize employee performance• Describe the effect of workforce diversity on

motivational practices

Learning objectives (Contd.)• Define leader and explain the difference between

managers and leaders• Summarize the conclusions of trait theories of

leadership• Be familiar with Fiedler contingency model• Describe the path-goal model of leadership• Explain situational leadership• Describe characteristics of charismatic leaders and

visionary leaders• Explain four specific roles of effective team leaders• Identify five dimensions of trust

Motivation and individual needs

• Motivation: the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual needs

• Need is defined as an internal state that makes certain outcomes appear attractive

Drives

SearchBehavior

Tension Reductionof Tension

SatisfiedNeed

The Motivation Process

UnsatisfiedNeed

Classical theories of motivation

• Maslow’s Hierarchy of Needs Theory

• Theory X and Theory Y

• Herzberg’s Two-factor Theory

Early theories of motivationMaslow’sMaslow’sHierarchyHierarchyof Needsof Needs

Maslow’sMaslow’sHierarchyHierarchyof Needsof Needs

SelfSelf

EsteemEsteem

SocialSocial

SafetySafety

PhysiologicalPhysiological

Theory XTheory XWorkersWorkers

Dislike WorkDislike Work

Avoid ResponsibilityAvoid Responsibility

Little AmbitionLittle Ambition

Theory YTheory YWorkersWorkers

Enjoy WorkEnjoy Work

Accept ResponsibilityAccept Responsibility

Self-DirectedSelf-Directed

Herzberg’s Two-Factor Theory

Hygiene Factors Motivators

High HighJob Dissatisfaction Job Satisfaction0

• Quality of supervision• Salary and benefits• Company policies• Working conditions• Relations with others• Security and status

• Career advancement• Recognition• Work itself• Responsibility• Advancement•Growth

Contemporary theories of motivation

• Three-needs theory

• Equity theory

• Job characteristics model

• Expectancy theory

The TheoryThe Theoryof Needsof Needs

DavidDavidMcClellandMcClelland

The TheoryThe Theoryof Needsof Needs

DavidDavidMcClellandMcClelland

Need forNeed forAchievementAchievement

(nAch)(nAch)

Need forNeed forAchievementAchievement

(nAch)(nAch)

Need forNeed forPowerPower(nPow)(nPow)

Need forNeed forPowerPower(nPow)(nPow)

Need forNeed forAffiliationAffiliation

(nAff)(nAff)

Need forNeed forAffiliationAffiliation

(nAff)(nAff)

Equity TheoryEquity TheoryRatio

Comparison*Employee’sPerception

Outcomes A

Inputs A

Outcomes A

Inputs A

Outcomes A

Inputs A

Outcomes B

Inputs B

Outcomes B

Inputs B

Outcomes B

Inputs B

<

=

>

Inequity (Under-Rewarded)

Equity

Inequity (Over-Rewarded)

*Where A is the employee, and B is a relevant other or referent.

The JobThe JobCharacteristicsCharacteristics

ModelModel

Skill Variety

Task Identity

Task Significance

Autonomy

Feedback

Characteristics Examples

Skill Variety• High variety The owner-operator of a garage who does electrical repair, rebuilds engines,

does body work, and interacts with customers• Low variety A bodyshop worker who sprays paint eight hours a day

Task Identity• High identity A cabinetmaker who designs a piece of furniture, selects the wood, builds the

object, and finishes it to perfection• Low identity A worker in a furniture factory who operates a lathe to make table legs

Task Significance• High significance Nursing the sick in a hospital intensive-care unit• Low significance Sweeping hospital floors

Autonomy• High autonomy A telephone installer who schedules his or her own work for the day, and

decides on the best techniques for a particular installation• Low autonomy A telephone operator who must handle calls as they come according to a

routine, highly specified procedure

Feedback• High feedback An electronics factory worker who assembles a radio and then tests it to

determine if it operates properly• Low feedback An electronics factory worker who assembles a radio and then routes it to a

quality control inspector who tests and adjusts it

Examples of High and Low Job Characteristics

Personaland WorkOutcomes

Core JobDimensions

CriticalPsychological

States

The Job Characteristics Model

Skill variety

Task identity

Task significance

Experiencedmeaningfulnessof the work

Experiencedresponsibilityfor outcomesof the work

Knowledge of theactual results ofthe work activities

Autonomy

Feedback

High internalwork motivation

High-qualitywork performance

High satisfactionwith the work

Low absenteeismand turnover

Employee GrowthNeed Strength

The Motivating Potential Score

MotivatingPotentialScore (MPS)

Autonomy Feedback=Skill

VarietyTask

IdentityTask

Significance+ +

3

X X

High MPS IncreasesMotivationPerformanceSatisfaction

and DecreasesAbsenceTurnover

Expectancy Theory

3. Rewards-personal goals relationship

1. Effort-performance relationship

2. Performance-rewards relationship

IndividualIndividualEffortEffort

IndividualIndividualPerformancePerformance

IndividualIndividualGoalsGoals

OrganizationalOrganizationalRewardsRewards

1 2

3

An Integrative Model of MotivationAn Integrative Model of Motivation

PersonalGoals

PersonalGoals

AbilityAbility

Task complexityTask complexity

HighnAchHighnAch

IndividualPerformance

IndividualPerformance

Objective PerformanceEvaluation

System

Objective PerformanceEvaluation

System

ReinforcementReinforcement

IndividualEffort

IndividualEffort

DominantNeeds

DominantNeeds

EquityComparison

O O IA IB

EquityComparison

O O IA IB

OrganizationRewards

OrganizationRewards

Goals DirectBehavior

Goals DirectBehavior

Leaders and leadership

• Leaders are people who are able to influence others and who possess managerial authority

• Leadership is an influence process; therefore, leaders are people who, by their actions, encourage a group of people to move toward a common or shared goal.

Trait Theories of LeadershipTrait Theories of Leadership

AmbitionAmbitionand Energyand Energy

DesireDesireto Leadto Lead

Self-Self-ConfidenceConfidence

HonestyHonestyand Integrityand Integrity

IntelligenceIntelligence Job-RelevantJob-RelevantKnowledgeKnowledge

Behavioral approach to leadership

• Behavioral theories of leadership

• Ohio State University studies

• The University of Michigan studies

Continuum of Leader BehaviorManager

makes decision

Managersells decision

Managerpresents ideas

Manager presents tentative decision

Employees make decision

Autocratic

Laissez-faire

Consultative

Participative

Democratic

Bo

ss-C

ente

red

Lea

der

ship

Em

plo

yee-Cen

tered L

eadersh

ip

Formal Studies of Behavioral Styles

Ohio State Ohio State Initiating StructureInitiating Structure

ConsiderationConsideration

Employee-OrientationEmployee-Orientation

Production-OrientationProduction-Orientation

University ofUniversity ofMichiganMichigan

The Managerial Grid1

2

3

4

5

6

7

8

9 1 2 3 4 5 6 7 8 9

Co

nce

rn f

or

Peo

ple

Concern for Production

(1,9)

(1,1)

(5,5)

(9,9)

(9,1)

Contingency approach to leadership

• Fiedler model

• Path-goal theory

• Leader-participation model

• Situational leadership

Fiedler’s LPC Scale

PleasantPleasantFriendlyFriendly

RejectingRejectingHelpfulHelpful

UnenthusiasticUnenthusiasticTenseTense

DistantDistantColdCold

CooperativeCooperativeSupportiveSupportive

BoringBoringQuarrelsomeQuarrelsomeSelf-assuredSelf-assured

EfficientEfficientGloomyGloomy

OpenOpen

UnpleasantUnpleasantUnfriendlyUnfriendlyAcceptingAcceptingFrustratingFrustratingEnthusiasticEnthusiasticRelaxedRelaxedCloseCloseWarmWarmUncooperativeUncooperativeHostileHostileInterestingInterestingHarmoniousHarmoniousHesitantHesitantInefficientInefficientCheerfulCheerfulGuardedGuarded

...........................

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8 7 6 5 4 3 2 1

Findings of the Fiedler ModelFindings of the Fiedler Model

• Category• Leader-Member Relations• Task Structure• Position Power

I

Good

HighStrong

II

Good

HighWeak

III

Good

LowStrong

IV

Good

LowWeak

V

Poor

HighStrong

VI

Poor

HighWeak

VII

Poor

LowStrong

VIII

Poor

LowWeak

High

Low

Per

form

ance

People-Oriented

Task-Oriented

Favorable Moderate Unfavorable

The Path-Goal Theory

Environmental Environmental Situational FactorsSituational Factors

OutcomesOutcomesLeaderLeaderBehaviorBehavior

Subordinate Subordinate Situational FactorsSituational Factors

1 2 3 4 5

Increased Employee InvolvementIncreased Employee Involvement

Increased Leader ControlIncreased Leader Control

Employee Involvement ContinuumEmployee Involvement Continuum

Leader Participation ModelLeader Participation Model

Contingency Variables in the Revised Leader-Participation Model

QualityRequirement

ProblemStructure

EmployeeConflict

GeographicDispersion

CommitmentRequirement

CommitmentProbability

EmployeeInformation

MotivationTime

LeaderInformation

Goal Congruence

TimeConstraint

MotivationDevelopment

Participating Selling

Delegating Telling

The Situational Leadership ModelStyle

of LeaderHigh task and

high relationshipHigh relationship

and low task

Low relationshipand low task

High task andlow relationship

Task Behavior

Rel

atio

nsh

ipB

ehav

ior

Able andwilling

Unable andunwilling

R4

Able andunwilling

R3

Unable andWilling

R2 R1

High Moderate Low

S3 S2

S4 S1

Emerging approach to leadership

• Charismatic leadership

• Visionary leadership

• Transactional and transformational leadership

Charismatic Leadership

• Self-confidence

• Vision and articulation

• Strong convictions

• Extraordinary behavior

• Image as a change agent

• Environmental sensitivity

ExtendExtendthe Visionthe Vision

ExplainExplainthe Visionthe Vision

ExpressExpressthe Visionthe Vision

Visionary Leadership

LeadershipStyles

Motivationversus

Inspiration

TransformationalLeaders

TransactionalLeaders

Team LeaderTeam LeaderRolesRoles

ConflictConflictManagersManagers

Trouble-Trouble-ShootersShooters

CoachesCoaches LiaisonsLiaisons

What Is Trust?

• Integrity

• Competence

• Consistency

• Loyalty

• Openness

Deterrence-Deterrence-BasedBased

Knowledge-Knowledge-BasedBased

Identification-Identification-BasedBased

Three Types of Trust