LECTURE 6: LEADING/DIRECTING ➢ ERG THEORY

•Existence: material requirements for survival

MOTIVATION •Relatedness/Relationships: people's desire
The process of stimulating people to actions to for social support, interpersonal relationships,
accomplish the goals. and favorable recognition
•Growth: intrinsic desire to use and develop
Two types: one's talents
•Intrinsic: personal satisfaction of the work
itself ➢ McCLELLAND'S NEEDS
•Extrinsic: rewards linked to job performance •Achievement: drive to accomplish things
(not sufficient in the long run) •Affiliation: desire to be liked by others and
receive social approval and close interpersonal
THEORIES ON MOTIVATION relationships
THEORY PROPONENT •Power: desire to influence or control other
people
Hierarchy of needs Abraham Maslow
➢ TWO-FACTOR THEORY
ERG Theory Clayton Alderfer

Needs Theory David McClelland

Two-factor Theory Frederick Herzberg

Goal-setting Theory Edwin Locke

Equity Theory John Stacey Adams

Reinforcement Theory Burrhus Frederic Skinner

Expectancy Theory Victor Vroom

➢ HIERARCHY OF NEEDS
➢ GOAL-SETTING THEORY
• Specific and challenging goals along with
appropriate feedback contribute to higher and
better task performance.
• Goals indicate and give direction to an
employee about what needs to be done and
how much efforts are required to be put in.

➢ EQUITY THEORY
• calls for a fair balance to be struck between
an employee's inputs (hard work, skill level,
acceptance, enthusiasm, and so on) and an
employee's outputs (salary, benefits,
intangibles such as recognition, and so on)
• employees are not motivated, both in relation
to their job and their employer, if they feel as
though their inputs are greater than the outputs
 ➢ REINFORCEMENT THEORY
Positive reinforcement
- Pleasurable stimulus or reward following
a desired behavior that induces people
to continue the behavior
Negative reinforcement
- Removal of unpleasant conditions
following desired behavior
Punishment
- Unpleasant consequence following an
undesired behavior which leads to a
decrease in behavior
Extinction
- Remove something to decrease a
behavior
➢ EXPECTANCY THEORY
• The effort put forth on a task will be determined
by the value the person places on the task and
on the belief that he or she can perform the task
• Explains why some people do the minimum
necessary while others give their all
JOB DESIGN
Job enlargement
- Assigning workers additional same level
activities, thus increasing the number of
activities they perform.
Job enrichment
- Redesigning jobs in a way that
increases the opportunities for the
worker to experience feelings of
responsibility, achievement, growth, and
recognition.
Job rotation
- Moving a trainee from department to
department to broaden his or her
experience and identify strong and weak
points to prepare the person for an
enhanced role with the company
LEADERSHIP POWER
Coercive power
• Based on the fear that the leader may cause
people harm unless they support him or her
Reward power
• Leader can provide something that people
value so they trade support for rewards
Legitimate power
• Legal or formal authority to make decisions
Expert power
• Knowledge and skills worthy of respect
Referent power
• Leader as role model
LEADERSHIP THEORIES
• Trait theory: ambition, energy, motivation and
desire to lead, etc.
• Contingency theory: the situation decides the
style of leadership and influences the behavior
of a manager
• Substitute theory: Leadership is irrelevant in
areas where the workers are highly-trained
• Self-leadership: Individual responsibility of
employees to develop their own work priorities
aligned with organizational goals
• Path-Goal theory: Leaders have a
responsibility to provide their subordinates with
the information and support necessary to
achieve the work goals.
• Transactional leadership: uses power to
elicit obedience
• Transformational leadership: uses charisma
to inspire and stimulate employees
• Authentic leadership: true to values
BLAKE-MOUTON'S MANAGERIAL GRID
BLAKE-MOUTON'S MANAGERIAL GRID (x, y)
➢ Country club management (l, 9)
- leader lays more emphasis on the
personal needs of the subordinates and
give less attention to the output
- friendly and comfortable working
environment

➢ Task/Produce-or-perish management (9, 1)

- leader is more concerned with the
production and lay less emphasis on the
personal needs of his subordinates
- the output in the short run may increase
drastically, but there could be a high
labor turnover (McGregor's Theory X)

➢ Impoverished management (1, 1)

- minimal concern for both the people and
production (laissez-faire)
- function merely to preserve their jobs
and seniority

➢ Team management (9, 9)

- most effective leadership style wherein
the leader takes both people and
production hand in hand
- based on McGregor's Theory Y

➢ Middle of the road (5,5)

- leader focuses on an adequate
performance through a balance between
the work requirements and satisfactory
morale
- the organization land up to an average
performance