SCRIPT

Subject: Management
Chapter 6: LEADING
Topic 1: Leadership

Slide Content
Hello everyone, nice to see you again. We are going to the topic of Leadership.
After studying this topic, you should be able to:
✓ Explain what leadership is, when leaders are effective and ineffective, and
the sources of power that enable managers to be effective leaders.
✓ Identify the traits that show the strongest relationship to leadership, the
Slide 2 behaviors leaders engage in, and the limitations of the trait and behavior
models of leadership.
✓ Explain how contingency models of leadership enhance our understanding
of effective leadership and management in organizations.
✓ Describe what transformational leadership is, and explain how managers
can engage in it.

Leadership is the process by which a person exerts influence over other people
and inspires, motivates, and directs their activities to help achieve group or
organizational goals.
Slide 3
Empowerment: the process of giving employees at all levels the authority to make
decisions, be responsible for their out-comes, improve quality, and cut costs.

We know that power is the key to leadership. There are five types of power:

− Legitimate power is the authority a manager has by virtue of his or her

position in an organization’s hierarchy.
Slide 4
− Reward power is the ability of a manager to give or withhold tan-gible
rewards (pay raises, bonuses, choice job assignments) and intangible
rewards (verbal praise, a pat on the back, respect).
 − Coercive power is the ability of a manager to punish others. Pun-ishment
can range from verbal reprimands to reductions in pay or working hours to
actual dis-missal.

− Expert power is based on the special knowledge, skills, and exper-tise that
a leader possesses.

− Referent power is a function of the personal characteristics of a leader; it is

the power that comes from subordinates’ and coworkers’ respect,
admiration, and loyalty.

The Trait Model: The trait model of leadership focused on identifying the personal
characteristics that cause effective leadership. The following table shows the effect
of traits in the leading process.

Trait Helps managers …

Intelligence Understand complex issues and solve problems.

Knowledge and Make good decisions and discover ways to increase

expertise efficiency and effectiveness.

Dominance Influence their subordinates to achieve organizational goals.

Slide 5 Effectively influence subordinates and persist when faced

Self-confidence
with obstacles or difficulties.

High energy Deal with the many demands they face.

Tolerance for
Deal with uncertainty and make difficult decisions.
stress

Integrity and Behave ethically and earn their subordinates’ trust and
honesty confidence.

Avoid acting selfishly, control their feelings, and admit

Maturity
when they have made a mistake.
 The Behavior Model: Two main types of leaders in term of their behaviors:

− Consideration when they show their subordinates that they trust, respect,
and care about them.
Slide 6
− Initiating structure when they take steps to make sure that work gets done,
subordinates perform their jobs acceptably, and the organization is efficient
and effective.

We move to the Contingency Models of Leadership

Contingency models of leadership take into account the situation or context within
which leadership occurs and the need for adopting leadership styles suitable to the
management environment.

We start with the Fiedler’s Contingency Model.

Leader style:

− Relationship-oriented leaders are primarily concerned with developing

good relation-ships with their subordinates and being liked by them.

− Task-oriented leaders are primarily concerned with ensuring that

Slide 7 subordinates perform at a high level and focus on task accomplishment.

Situational characteristics:

− Leader–member relations: the extent to which followers like, trust, and are
loyal to their leader.

− Task structure: the extent to which the work to be performed is clear-cut so

that a leader’s subordinates know what needs to be accomplished and how
to go about doing it.

− Position power: the amount of legitimate, reward, and coercive power a

leader has by virtue of his or her position in an organization.

Combining leader style and the situation:

 Now we continue with the House’s Path–Goal Theory.

Based on the expectancy theory of motivation, path–goal theory gives

managers three guidelines to being effective leaders:

− Find out what outcomes your subordinates are trying to obtain from their

Slide 8 jobs and the organization.

− Reward subordinates for high performance and goal attainment with the
outcomes they desire.

− Clarify the paths to goal attainment for subordinates, remove any obstacles
to high per-formance, and express confidence in subordinates’ capabilities.

Next we discuss about The Leader Substitutes Model.

A leadership substitute is something that acts in place of the influence of a leader

and makes leadership loosen or unnecessary. The application of this practice
depends on:

Slide 9 − Characteristics of subordinates: skills, abilities, experience, knowledge, and

motivation.

− Characteristics of the situation or context: the extent to which the work is

interesting and enjoyable.

− The degree of empowerment or the use self-managed work teams.

One important type of leadership is Transformational Leadership.

Slide 10 Transformational leadership occurs when managers change (or transform) their
subordinates in three important ways:
 − Making subordinates aware of how important their jobs are for the
organization and how necessary it is for them to perform those jobs as best
they can so the organization can attain its goals.

− Making their subordinates aware of the subordinates’ own needs for personal
growth, development, and accomplishment.

− Motivating their subordinates to work for the good of the organization as a

whole, not just for their own personal gain or benefit.

Conditions for transformational leadership: transformational managers:

− Are charismatic: an enthusiastic, self-confident leader who is able to clearly

communicate his or her vision of how good things could be.

− Intellectually stimulate subordinates: engagement in making followers

aware of problems and view these problems in new ways, consistent with
the leader’s vision.

− Engage in developmental consideration: to support and encourage followers

and help them develop and grow on the job.

The distinction between Transformational and Transactional Leadership:

transactional leadership motivates subordinates by rewarding them for high
performance and reprimanding them for low performance.

Thank you for your listening and see you by next topic!
SCRIPT
Subject: Management
Chapter 6: LEADING
Topic 2: Motivation

Slide Content
Hello everyone, nice to see you again. We are going to the topic of Motivation.
After studying this topic, you should be able to:
➢ Explain what motivation is and why managers need to be concerned about
it.
➢ Describe from the perspectives of expectancy theory and equity theory what
Slide 2
managers should do to have a highly motivated workforce.
➢ Explain how goals and needs motivate people and what kinds of goals are
especially likely to result in high performance.
➢ Identify the motivation lessons that managers can learn from operant
conditioning theory and social learning theory.

Motivation may be defined as psychological forces that determine the direction of

a person’s behavior in an organization, a person’s level of effort, and a person’s
level of persistence in the face of obstacles.

− Intrinsically motivated behavior is behavior that is performed for its own

sake; the source of motivation is actu-ally performing the behavior, and
Slide 3 motivation comes from doing the work itself.

− Extrinsically motivated behavior is behavior that is performed to acquire

material or social rewards or to avoid punishment.

− Prosocially motivated behavior is behavior that is performed to benefit or

help others.

We first start with the Expectancy theory.

Slide 4 Expectancy theory posits that motivation is high when workers believe that high
levels of effort lead to high performance and high performance leads to the
 attainment of desired outcomes. Expectancy theory identifies three major factors
that determine a person’s motivation:

− Expectancy: person’s perception about the extent to which effort (an input)
results in a certain level of performance.

− Instrumentality: person’s perception about the extent to which

performance at a certain level results in the attainment of outcomes.

− Valence: how desirable each of the outcomes available from a job or

organization is to a person.

Now we come for the Need Theory. The basic premise of need theories is that
people are motivated to obtain outcomes at work that will satisfy their needs.
Therefore, a manager must determine what needs the person is trying to satisfy at
work and ensure that the person receives outcomes that help to satisfy those needs
when the person performs at a high level and helps the organization achieve its
goals.

The first theory in this group is from Maslow.

Maslow’s Hierarchy of Needs

Slide 5 Needs (from Description Examples of how managers

highest to can help people satisfy
lowest) these needs at work

By giving people the

Self-
To realize one’s full potential opportunity to use their skills
actualization
as a human being. and abilities to the fullest
needs
extent possible.

To feel good about oneself By granting promotions and

Esteem needs and one’s capabilities, to be recognizing
respected by others, and to accomplishments.
 receive recognition and
appreciation.

By promoting good
For social interaction, interpersonal relations and
Belongingness
friendship, affection, and organizing social functions
needs
love. such as company picnics and
holiday parties.

By providing job security,

For security, stability, and a
Safety needs adequate medical benefits,
safe environment.
and safe working conditions.

Basic needs for things such as By providing a level of pay

Physiological food, water, and shelter that that enables a person to buy
needs must be met in order for a food and clothing and have
person to survive. adequate housing.

Then we go for the Alderfer’s ERG Theory:

Needs (from Description Examples of how

highest to managers can help people
lowest) satisfy these needs at work

For self-development and By allowing people to

Slide 6 creative and productive work. continually improve their
Growth needs
skills and abilities and
engage in meaningful work.

To have good interpersonal

By promoting good
Relatedness relations, to share thoughts
interpersonal relations and by
needs and feelings, and to have open
providing accurate feedback.
two-way communication.
 Basic needs for food, water, By providing enough pay for
Existence needs clothing, shelter, and a secure the basic necessities of life
and safe environment. and safe working conditions.

The third in the group is Herzberg’s motivator-hygiene theory. According to this ,

people have two sets of needs or requirements: motivator needs and hygiene needs:

− Hygiene needs are related to the physical and psychological context in which
the work is performed. Hygiene needs are satisfied by outcomes such as
pleasant and comfortable working conditions, pay, job security, good
relationships with coworkers, and effective supervision.

− Motivator needs are related to the nature of the work itself and how
Slide 7
challenging it is. Outcomes such as interesting work, autonomy,
responsibility, being able to grow and develop on the job, and a sense of
accomplishment and achievement help to satisfy motivator needs.

When hygiene needs are met, workers are not dissatisfied. Satisfying hygiene needs,
however, does not result in high levels of motivation or even high levels of job
satisfaction. For motiva-tion and job satisfaction to be high, motivator needs must
be met.

The fourth of the group is McClelland’s Needs for Achievement, Affiliation, and
Power .Psychologist David McClelland extensively researched the needs for
achievement, affiliation, and power:

− The need for achievement: strong desire to perform challenging tasks well
and to meet personal standards for excellence.
Slide 8
− The need for affiliation: concerns about establishing and maintaining good
interpersonal relations, being liked, and having the people around him or her
get along with each other.

− The need for power: desires to control or influence others.

 Another view of the need theory the Equity Theory. Equity exists when a person
perceives his or her own outcome–input ratio to be equal to a referent’s outcome–
input ratio.

Inequity, or lack of fairness, exists when a person’s outcome–input ratio is not

perceived to be equal to a referent’s. Inequity creates pressure or tension inside
people and motivates them to restore equity by bringing the two ratios back into
balance.
Slide 9
Underpayment inequity exists when a person’s own outcome–input ratio is
perceived to be less than that of a referent. In comparing yourself to a referent, you
think you are not receiving the outcomes you should be, given your inputs.

Overpayment inequity exists when a person perceives that his or her own
outcome–input ratio is greater than that of a referent. In comparing yourself to a
referent, you think you are receiving more outcomes than you should be, given your
inputs.

The last motivation theory is the Goal-setting theory. This approach focuses on
motivating workers to contribute their inputs to their jobs and organizations.

In addition to the expectancy theory and equity theory, the goal-setting theory focus
Slide 10
a step further by considering as well how managers can ensure that organizational
members focus their inputs in the direction of high performance and the
achievement of organizational goals.

One important for individual’’motivation as well as his/her performance is their

learning process.

Learning can be defined as a relatively permanent change in a person’s knowledge

or behavior that results, such as a pay raise or praise from a supervisor, from practice
Slide 11
or experience.

Operant Conditioning Theory: people learn to perform behaviors that lead to

desired consequences and learn not to perform behaviors that lead to undesired
consequences.
 − Positive reinforcement gives people outcomes they desire when they
perform organizationally functional behaviors.

− Negative reinforcement eliminates or removing undesired outcomes when

people perform organizationally functional behaviors.

In contrast with the above, the social aspect also affects to the way we learn.

Social Learning Theory: motivation results not only from direct experience of
rewards and punishments but also from a person’s thoughts and beliefs.

− Vicarious learning, often called observational learning, occurs when a

person (the learner) becomes motivated to perform a behavior by watching
another person (the model) performing the behavior and being positively
reinforced for doing so.
Slide 12
− Self-reinforcers are any desired or attractive outcomes or rewards that
people can give to themselves for good performance, such as a feeling of
accomplishment, going to a movie, having dinner out, buying a new CD, or
taking time out for a golf game.

− Self-efficacy is a person’s belief about his or her ability to perform a

behavior successfully.

Thanks for your listening, see you soon in next chapter!