Learning outcomes

 Define leadership and explain its importance

for organizations.
 Explain and identify leadership styles.
 Explain and identify Leadership Approaches:
 Trait theory
 Behavioural Theories
 Contigency approaches
 Define Power and give example for each type
The nature of leadership
Leadership
The ability to
influence people
toward the
attainment of
organizational
goals
Leadership vs management
Managers Versus Leaders
“Not all leaders are managers, nor are
all managers leaders”
 Managers
 Persons whose influence on others is limited to
the appointed managerial authority of their
positions
 Leaders
 Persons with managerial and personal power
who can influence others to perform actions
beyond those that could be dictated by those
persons‟ formal (position) authority alone
Management and Leadership
Two distinctive and complementary
systems
Ideal world, they‟re balanced,
integrated
 One person is both

*A good leader needs to manage, but

not always the case, sometimes
more necessary than others
 MANAGERS LEADERS
 Plan, coordinate  Facilitate interpersonal
interaction
 Evaluate and supervise
 Charisma
 Negotiate, budget
 Innovate, inspire
 Reality check, sets time
 Vision, communicate it
limits, copes with
 Ability to change things,
complexity set direction, look at larger
picture, align people, look
 Bring order and at competition and do
consistency better and different, willing
to listen and learn,
sensitive to concerns
 Planning complement to  Gains trust, empowers,
direction enable others to reach
potential
 MANAGERS LEADERS
 Administers  Innovates
 Is an original
 Is a copy
 Develops
 Maintains
 Investigates it
 Accepts reality  Focuses on people
 Focuses on system &  Inspires trust
structure  Has a long-range plan
 Relies on control  Asks what and why
 Has short-range view  Has eye on horizon
 Asks how and when
 Has eye on bottom  Originates
 Imitates
 Accepts status quo  Challenges it
 Does things right  Does the right thing
What is power?
It is the potential ability to
influence the behaviour of others.
It represents the resources with
which a leader effects the change
in employee behaviour.
Power and Leadership
• Legitimate Sources of Power
– Position in the organization (formal authority)
• Reward power
- Power that results from the authority to reward
others
• Coercive power
- Power that results from the authority to punish
or
recommend punishment
• Expert power
– Referent power (charisma)
– Control over information or access to resources
(gatekeeper)
Leadership Traits and Skills
Traits Skills
• Adaptable to situations • Clever (intelligent)
• Conceptually skilled
• Alert to social environment
• Creative
• Ambitious and achievement • Diplomatic and tactful
orientated • Fluent in speaking
• Assertive • Knowledgeable about group
task
• Cooperative
• Organised (administrative
• Decisive ability)
• Dependable • Persuasive
• Socially skilled
• Dominant (desire to influence others)
Stogdill, 1974
• Energetic (high activity level)
• Persistent
• Self-confident
• Tolerant of stress
• Willing to assume responsibility
Leadership Styles
1. Autocratic
(Authoritarian)
2. Bureaucratic
3. Democratic
4. Laissez-Faire
1. 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
 New, untrained employees
 Employees are motivated
 Employees do not respond to
any other leadership style
 High-volume production needs
 Limited time for decision
making
 Manager‟s power is challenged
by an employee
Autocratic (Authoritarian)
Who are Autocratic Leaders?
2. 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.
 Useful in organization where
employees do routine tasks
(manufacturing)
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

Bureaucratic
Who are Bureaucratic Leaders?
3. Democratic
 Often referred to as participative
style

 Keeps employees informed

 Shares decision making and

problem solving responsibilities

 “Coach” who has the final say,

but…

 Gathers information from staff

members before making
decisions
Democratic, Cont…….
 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
 To keep 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
 To encourage team building and
participation.
Democratic
Who are Democratic Leaders?
“We made workers into
robots; we made them
into machines…
...Now, we want them to become a
different kind of person: to come
up with new ideas.”
Jack Smith, CEO, General Motors
4. 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 Laissez-Faire
 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
Leadership Theories
 Leadership Theories
1. Trait Approach
i. Behavioral Approach
 Leadership Functions
 Leadership Styles
2. Contingency (Situational) Approaches
 Hersey and Blanchard
 Fiedler Model
 Path-Goal
3. Future of Leadership Theory
 Transformational or Charismatic
Trait Theory
 Tries to identify what qualities a leader possesses
 Trait – predisposition to act in a certain way
 Over time it is a relatively permanent feature of
behavior, thus behavior is relatively consistent
and predictable
 Underlying assumption – LEADERS ARE BORN
 Two approaches
 Compare traits who emerged as leaders with
those who did not emerge
 Compare traits of effective leaders with
ineffective leaders
Behavioral Theory
 Trait research was unsuccessful, thus tried to
isolate behavior characteristics of effective leaders
 What effective leaders WERE and what they DID
 Behavior can be learned, thus if supported we
could train people to be leaders and teach
leadership
 Several studies were done to examine leader
behavior and focused on two aspects of
Leadership behavior
 Leadership Functions: task-related activities that must
be performed by leader to perform effectively
 Leadership Styles: various patterns of behavior favored
by leaders during process of directing and influencing
 Leadership Styles
(High)
- Ohio State

Low Structure High Structure

And And
Consideration

High Consideration High Consideration

Democratic

Low Structure High Structure

And And
Low Consideration Low Consideration
(Low)

Laissez-Faire Authoritarian
(Low) Initiating Structure (High)
Situational Leadership Theory
 Basically can‟t change our style, thus
better to match leader and situation
 Leader-member relations (good-poor)
 Degree of confidence, respect, trust
workers have for leader
 Task structure (structured-unstructured)
 Degree to which jobs are procedurized

 Position-power (strong-weak)
 Degree of influence a leader has over
promoting, hiring, and disciplinary
Situational Leadership Theory
 Hersey & Blanchard (1980s)
 Move through Four Phases, correlated to life cycle
 Varies depending on “maturity” of followers
 Desire for achievement (capacity of setting high,
attainable goals)
 Willingness to accept responsibility

 Task-related ability and experience

 As maturity levels increase, leader lessens task,

increases relationship
 Then as maturity proceeds, decrease task and
relationship behavior
 Future of Leadership Theory
 Transformational or Charismatic Leadership
 Leaders who, through their personal vision and
energy, inspire followers and have a major impact on
their organizations
 Seeks change, proactive
 Innovative, creative
 Leaders who determine what followers need to do to
achieve objectives, classify those requirements, and
help followers become confident they can reach their
objectives
 Inspire others to do more than expected
 Raise level to self-actualization
 Empower others
Questions
1. Which leadership style do you think is the most
effective? Why?
2. Which leadership style do you think is the least
effective? Why?
3. Which style do you like leaders to use when they
are in charge of you? Why?
4. What leadership style best describes you?
Questions
Scenario
 You are in a company‟s meeting. The leader is
talking about ways on how to achieve their goals.
 What would an autocratic leader do?
 What would a democratic leader do
 What would a laissez faire leader do?
Motivation
Learning outcomes
1. Define motivation
2. Explain and identify the theories of motivation:
• Maslow‟s Hierarchy of Needs
• Herzberg Two-actor theory
• Acquired Needs Theory
• Expectancy Theory
• Equity Theory
• Reinforcement Theory
• Goal-setting theory
Motivation
Motivation is derived from the Latin
word „movere’ which means to
move or to energize or to activate
Definition

Motivation is a psychological process that causes

the arousal, direction, and persistence of
voluntary actions that are goal directed
 Introduction (Cont.)
that that
Motivation results in Some level
leads to Choice of
is the of job
psychological behavior
performance
process

The Motivation-Behavior-Job Performance Sequence

 Simple model of motivation

• Motivation can lead to behaviors that reflect high performance

within organizations.

• High employee motivation is related to high organizational

performance and profits.
Theories on Motivation
These theories emphasize the needs that
motivate people.

 Hierarchy of Needs Theory

 ERG Theory
 Two-Factor Theory
 Acquired Needs Theory

50
Maslow’s Hierarchy
of Needs

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51
Maslow’s Hierarchy
of Needs
 Once a need is satisfied, it declines in importance and
the next higher need is activated

 There are opportunities for fulfillment off the job and

on the job in each of the five levels of needs

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ERG Theory
 ERG is a simplification of Maslow.
 Three categories of needs:
 Existence needs. The needs for physical well-being.
 Relatedness needs. The needs for satisfactory
relationships with others.
 Growth needs. The needs that focus on the
development of human potential and the desire for
personal growth.

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Two-Factor Motivation Theory

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Acquired Needs Theory
• Need for Achievement. desire to accomplish
something difficult, master complex tasks, and
surpass others.
• Need for Affiliation. desire to form close personal
relationships, avoid conflict, and establish warm
friendships.
• Need for Power. desire to influence or control
others.

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Process Perspectives on Motivation
These theories explain how people select
behavioral actions to meet their needs.

 Goal-Setting Theory
 Equity Theory
 Expectancy Theory

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Goal-Setting
 Specific, challenging targets significantly enhance
people’s motivation and performance.
 Managers can improve performance by setting specific
goals.
 Goal-setting theory requires:
 Specific Goals
 Difficult Goals
 Acceptance
 Feedback

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 Equity Theory

Focuses on individuals’ perceptions of how

fairly they are treated compared with others

Motivated to seek social equity in the rewards

they expect for performance

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 Methods for Reducing Perceived
Inequities

 Change Work Efforts

 Change Outcomes
 Change Perceptions
 Leave the Job

Employees evaluate the perceived equity of their rewards

compared to others’.
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Expectancy Theory
Motivation depends on individuals’
expectations about their ability to perform
tasks and receive desired rewards

Focuses on the thinking process that

individuals use to achieve rewards

Based on the effort, performance, and

desirability of outcomes

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Major Elements of Expectancy Theory

Valence – the value or attraction an individual has for an outcome

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Reinforcement Perspective
on Motivation

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Job Design for Motivation
Job Design - application of motivational theories to
the structure of work

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Job Design for Motivation
Job Simplification - improve task efficiency by reducing
the number of tasks
Job Rotation - moving employees from one job to another
to provide them with variety and stimulation
Job Enlargement - combining a series of tasks into one
new, broader job to give employees variety and challenge

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Job Design for Motivation
Job Enrichment - incorporating achievement,
recognition, and other high-level motivators into the work
Work redesign – altering jobs to increase both the quality
of employee’s work experience and their productivity

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Job Characteristics
Model

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Innovative Ideas for Motivating

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 Empowering People
to Meet Higher Needs

 Information - Employees receive information about

company performance

 Knowledge - Employees have knowledge and skills to

contribute to company goals

 Power - Employees have the power to make substantive

decisions

 Rewards - Employees are rewarded based on the

company performance

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 A Continuum of
Empowerment

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Giving Meaning to Work Through
Engagement
There is growing
recognition that it
is the behavior of
managers that
makes the biggest
difference in
whether people
feel engaged at
work.
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The Organization as an Iceberg
Metaphor