Module 5: Leading

1. Module 5: Leading Section 2: Motivating and rewarding employees

2. 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

3. 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

4. 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

5. The Motivation Process Unsatisfied Need Search Behavior Tension Reduction of Tension Satisfied Need Drives

6. Classical theories of motivation • Maslow’s Hierarchy of Needs Theory • Theory X and Theory Y • Herzberg’s Two-factor Theory

7. Early theories of motivation Maslow’s Hierarchy of Needs Self Esteem Social Safety Physiological

8. Little Ambition Theory X Workers Dislike Work Avoid Responsibility Self-Directed Theory Y Workers Enjoy Work Accept Responsibility

9. Herzberg’s Two-Factor Theory Hygiene Factors Motivators • Quality of supervision • Salary and benefits • Company policies • Working conditions • Relations with others • Security and status • Career advancement • Recognition • Work itself • Responsibility • Advancement • Growth 0 Job Satisfaction High Job Dissatisfaction High

10. Contemporary theories of motivation • Three-needs theory • Equity theory • Job characteristics model • Expectancy theory

11. Need for Achievement (nAch) The Theory of Needs David McClelland Need for Power (nPow) Need for Affiliation (nAff)

12. Equity Theory Ratio Comparison* Employee’s Perception 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.

13. Skill Variety Task Identity Task Significance Autonomy Feedback The Job Characteristics Model

14. Examples of High and Low Job Characteristics • CharacteristicsExamples • 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

15. The Job Characteristics Model Core Job Dimensions Critical Psychological States Personal and Work Outcomes Skill variety Task identity Task significance High internal work motivation High-quality work performance High satisfaction with the work Low absenteeism and turnover Experienced meaningfulness of the work Experienced responsibility for outcomes of the work Autonomy Knowledge of the actual results of the work activities Feedback Employee Growth Need Strength

16. Motivating Potential Score (MPS) Skill Variety Task Identity Task Significance + + X Autonomy X Feedback = 3 Motivation Performance Satisfaction Absence Turnover High MPS Increases and Decreases The Motivating Potential Score

17. Expectancy Theory 1. Effort-performance relationship 2. Performance-rewards relationship 3. Rewards-personal goals relationship Individual Effort Individual Performance Organizational Rewards 1 2 3 Individual Goals

18. An Integrative Model of Motivation High nAch Equity Comparison OO IA IB Ability Task complexity Individual Effort Individual Performance Organization Rewards Personal Goals Objective Performance Evaluation System Reinforcement Dominant Needs Goals Direct Behavior

19. 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.

20. Ambition and Energy Desire to Lead Honesty and Integrity Self- Confidence Intelligence Job-Relevant Knowledge Trait Theories of Leadership

21. Behavioral approach to leadership • Behavioral theories of leadership • Ohio State University studies • The University of Michigan studies

22. Continuum of Leader Behavior Manager makes decision Autocratic Manager sells decision Consultative Manager presents ideas Manager presents tentative decision Participative Boss-Centered Leadership Employee-Centered Leadership Democratic Employees make decision Laissez-faire

23. Formal Studies of Behavioral Styles Initiating Structure Ohio State Consideration Employee-Orientation University of Michigan Production-Orientation

24. The Managerial Grid 1 2 3 4 5 6 7 8 9 (1,9) (9,9) (5,5) Concern for People (9,1) (1,1) 1 2 3 4 5 6 7 8 9 Concern for Production

25. Contingency approach to leadership • Fiedler model • Path-goal theory • Leader-participation model • Situational leadership

26. Fiedler’s LPC Scale 8 7 6 5 4 3 2 1 ........................... Unpleasant Unfriendly Accepting Frustrating Enthusiastic Relaxed Close Warm Uncooperative Hostile Interesting Harmonious Hesitant Inefficient Cheerful Guarded Pleasant Friendly Rejecting Helpful Unenthusiastic Tense Distant Cold Cooperative Supportive Boring Quarrelsome Self-assured Efficient Gloomy Open ........................... ........................... ........................... ........................... ........................... ........................... ......................…. ........................... ........................... ........................... ........................... ........................... ........................... ........................... .....................….

27. High People-Oriented Task-Oriented Performance Low Favorable Moderate Unfavorable • Category • Leader-Member • Relations • Task Structure • Position Power I Good High Strong II Good High Weak III Good Low Strong IV Good Low Weak V Poor High Strong VI Poor High Weak VII Poor Low Strong VIII Poor Low Weak Findings of the Fiedler Model

28. The Path-Goal Theory Environmental Situational Factors Leader Behavior Outcomes Subordinate Situational Factors

29. 4 5 2 1 3 Leader Participation Model Employee Involvement Continuum Increased Leader Control Increased Employee Involvement

30. Contingency Variables in the Revised Leader-Participation Model Quality Requirement Commitment Requirement Leader Information Problem Structure Commitment Probability Goal Congruence Employee Conflict Employee Information Time Constraint Geographic Dispersion Motivation Time Motivation Development

31. R3 R2 Able and unwilling Unable and Willing The Situational Leadership Model Style of Leader High relationship and low task High task and high relationship S3 S2 Participating Selling Relationship Behavior Delegating Telling Low relationship and low task High task and low relationship Task Behavior S4 S1 High Moderate Low R4 R1 Able and willing Unable and unwilling

32. Emerging approach to leadership • Charismatic leadership • Visionary leadership • Transactional and transformational leadership

33. Self-confidence Vision and articulation Strong convictions Extraordinary behavior Image as a change agent Environmental sensitivity Charismatic Leadership

34. Visionary Leadership Explain the Vision Express the Vision Extend the Vision

35. Transactional Leaders Leadership Styles Motivation versus Inspiration Transformational Leaders

36. Coaches Liaisons Team Leader Roles Conflict Managers Trouble- Shooters

37. What Is Trust? • Integrity • Competence • Consistency • Loyalty • Openness

38. Three Types of Trust Deterrence- Based Knowledge- Based Identification- Based