THE 3RD CORE MANAGEMENT FUNCTION: LEADING

What is LEADING?

Motivate subordinates(lower positions) Help resolve group conflicts Influence individuals or teams as they

work Select the most effective communication

channel Deal with employee behavior issues

Leading Process

Leadership MotivationPerformanc

e

5 Sources of Leader Power

1. Legitimate Power: influencing behavior because of one’s formal position

2. Reward Power: influencing behavior by promising or giving rewards

3. Coercive Power: influencing behavior by threatening or giving punishment

4. Expert Power: influencing behavior because of one’s expertise

5. Referent Power: influencing behavior because of one’s personal attraction

What is MOTIVATION?

The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal

The psychological processes that arouse and direct goal-directed behavior

Motivation Model: People have certain needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original need

Why is motivation important? You want to motivate people to…

Join your organization Stay with your organization Show up for work at your organization: no

absenteeism or lateness Perform better for your organization: high

productivity Do extra for your organization: not only

their duty but also be organizational “good citizens”

Motivation Theories

I. Maslow’s Hierarchy of NeedsII. McGregor’s Theory X and Theory YIII. Herzberg’s Two-Factor Theory

IV. McClelland’s Three-Needs Theory

I. Maslow’s Hierarchy of Needs: 5 Levels

Higher- order needs = internal

Lower- order needs = external

5 Levels of Needs

1. Physiological Needs: the most basic human physical needs, in which one is concerned with having food, clothing, shelter, and comfort and with self-preservation

2. Safety Needs: concern with physical safety and emotional security, so that a person is concerned with avoiding violence and threats

3. Belongingness Needs: once basic needs and security are taken care of, people look for love, friendship, and affection

4. Esteem Needs: after they meet their social needs, people focus on such matters as self-respect, status, reputation, recognition, and self-confidence

5. Self-Actualization Needs: it is self-fulfillment—the need to develop one’s fullest potential, to become the best one is capable of being

Organization fulfills employee’s need by…

Offer training, creativity, promotions, employee control over jobs

Offer recognition, status, challenges, merit pay, employee participation in making decisionsOffer interaction with

others, participation in workgroup, good relations with supervisorsOffer safe working

conditions, job security, health and retirement benefits

Offer adequate ventilation, heat, water, base pay

II. McGregor’s Theory X and Theory Y

Theory X: negative view of people such as workers have little ambition, dislike work, want to avoid responsibility, need to be closely controlled to work effectively

Theory Y: positive view of people such as workers enjoy work, seek out and accept responsibility, exercise self-direction

It should guide management

practice which would maximize

employee motivation

III. Herzberg’s Two-Factor Theory: From Dissatisfying Factors to Satisfying Factors Also called “motivation-hygiene theory” This theory proposed that work satisfaction and

dissatisfaction arise from 2 different factors: motivating factors (motivators)— “What will make my

people satisfied?” The higher-level needs or simply motivators are factors

associated with job satisfaction—such as achievement, recognition, responsibility, and advancement—all of which affect the job content or the rewards of work performance

hygiene factors—“Why are my people dissatisfied?” The lower-level needs are factors associated with job

dissatisfaction—such as salary, working conditions, interpersonal relationships, and company policy—all of which affect the job context in which people work

Satisfaction vs. Dissatisfaction

IV. McClelland’s Three-Needs Theory: Achievement, Affiliation, and Power 3 needs—achievement, affiliation, and power—are

major motives determining people’s behavior in the workplace

3 needs are as follows: Need for achievement– “I need to excel at task”: the

desire to do something better or more efficiently, to solve problems, to achieve excellence in challenging tasks

Need for affiliation– “I need close relationships”: the desire for friendly and warm relations with other people

Need for power– “I need to control others”: the desire to be responsible for other people to influence their behavior or to control them

Fitting Jobs to People Techniques (Job Design)

Job Enlargement: putting variety into a job• It consists of increasing the number of tasks in a job

to increase variety and motivation• This increases job scope which expand scope of

knowledge

Job Enrichment: putting more responsibility & other motivating factors into a job• It consists of building into a job such motivating factors as

responsibility, achievement, recognition, stimulating work, and advancement

• This increases job depth which enable more employee’s empowerment

Motivation & Compensation

Characteristics of the best incentive compensation plans: Rewards must be linked to performance

and be measurable Rewards must be agreed on by manager

and employees Rewards must be perceived as being

equitable, believable, and achievable by employees

Motivation & Compensation

Popular incentive compensation plans:

Pay for performance (merit pay): it bases pay on one’s results, according to measurable criteria

Bonuses: they are cash awards given to employees who achieve specific performance objectives

Profit sharing: the distribution to employees of a percentage of the company’s profits (profitability measure)

Gainsharing: the distribution of savings or “gains” to groups of employees who reduced costs and increased measurable productivity (productivity measure)

Stock options: with stock options, certain employees are given the right to buy stock at the future date for a discounted price

Pay for knowledge (skill-based pay): it ties employee pay to number of job-relevant skills or academic degrees they earn

Nonmonetary Ways of Motivating Employees

Thoughtfulness: the value of being nice Work-life benefits Surroundings Skill-building & educational opportunities Sabbaticals (leave)