 The Human Relations Theory has human beings at its center as can be understood by the

name, but it also had more to it. It viewed human beings not as machine models but as
individuals with differing psychological motivations and with distinct and dynamic group
behavior affecting performances.

Work satisfaction --- leads to ---- enhanced worker performance

- A management model that views the employee as socially motivated and operates from
the assumption that a social need-satisfied worker is a productive worker.

Human Relations Theory of Public Administration

The Human Relations Theory has human beings at its center as can be understood by the
name, but it also had more to it. It viewed human beings not as machine models but as
individuals with differing psychological motivations and with distinct and dynamic group
behavior affecting performances.

There was an experiment conducted on the workers of the Hawthorne Works of the Western
Electricals in the spring of 1927 in Chicago. The experiment was being conducted by Elton
Mayo and Fritz Roethlisberger, the former being an Australian organizational theorist and the
latter was his employee. The experiment was later known as the Hawthorne experiment and the
findings were called the Hawthorne effect. Elton Mayo is often coveted as the father of the
Human Relations Movement and his experiment and studies are the most referenced piece of
work not just in public administration but also in people management in organizations.

The Hawthorne experiment set out to find the relationship between the work conditions, the
general fatigue and resulting monotony in the employees. It was believed that the relationship
can be gauged by studying the effect of temperature, humidity lighting and hours of sleep.

The findings of the Hawthorne experiment shocked the social scientists in many ways. The
experiment was carried out on a piece rate wage system for the participant workers. It was seen
that the workers were motivated to work for money only till the time when they would ensure an
adequate income and refused to work more than that. This simple but startling revelation created
quite a shakeup for the scientists as it clearly challenged the Taylorian principle of scientific
management. At the next level, some female workers were separated from the rest of the workers
and were put under observation. It was observed that with time and changed in the working
conditions like lighting, humidity etc, their productivity kept raising. This puzzled the scientists
even more, it was later discovered that the girls were aware of the experiment being conducted
on them and therefore displayed their best performance.

The experiment conducted for over a year ended in some new understanding regarding people
and performance. It was understood that human beings are motivated by several factors and not
alone economic. They are greatly influenced by their social environment, form groups, have
goals, beliefs, conducts and ethics which might not be in sync with that of the organization. So,
for all practical purposes they were thinking, acting, conscious individuals who needed to be
treated like one.
This was a theory which made the thinkers move away from the earlier popular classical theory
which proposed and emphasized on the structure, organizational planning etc as its core. It
became very clear after the Hawthorne experiments that the informal relationships, the group
dynamics and day to day functions of an organization are no less complex than the study of the
mechanism of the organization. At the end of the day, it becomes important that the employees
perform and their performance is sometimes far removed from the parameters and motivators
understood by the organization.

Industrial psychology, also known as industrial-organizational or I-O psychology, is concerned with the
study of human behavior in the workplace. Industrial psychologists study and evaluate a company's culture,
employee behavior, and work processes, and create or recommend programs and practices to improve
employee productivity and organizational performance.
Industrial psychology refers to the practice of applying psychological theories and principles to workplace
environments. Industrial psychologists observe and evaluate human behavior and interactions in the workplace
and provide guidance and recommendations to improve human and organizational efficiency.

The Role of Industrial Psychology in the Workplace:

Industrial psychologists work with an organization's human resources department, observing employees' behavior in the work
environment, assessing organizational workflows and practices, and identifying opportunities for improvement. The following
constitute the main subject areas of industrial psychology:

Recruitment.

Industrial psychologists assist the human resources department with the development of recruitment processes and the selection of
personnel. This includes the development of job announcements, defining key qualifications, and developing selection assessments.

Employee training and development.

Industrial psychologists perform job analyses whereby the skills and abilities necessary to perform a specific job effectively are
determined. The information and insights gained from these analyses are used to develop and evaluate employee skills development
and training programs.

Employee satisfaction and work-life.

This area of industrial psychology is concerned with employee satisfaction, motivation, health, safety, and well-being. In this respect,
the role of the industrial psychologist is to evaluate employees' well-being and happiness at work and find ways to improve the work
environment, and implement work-life balance programs, if necessary.

Performance management.

Industrial psychologists help organizations with the measurement and management of employee performance by developing and
conducting performance assessments, identifying skills gaps, and providing feedback and recommendations. The information gained
from these assessments is often used to inform decisions regarding compensation and promotions.

Organizational development and management.

This area of industrial psychology is concerned with organizational structure and performance. An organization would engage an
industrial psychologist to determine how efficient, productive, and profitable the organization is and to assist with matters pertaining
to corporate culture and structural changes within the organization.

How Employers can Implement Industrial Psychology in the Workplace:

Employers can engage the services of an industrial psychologist to help them address specific problems or issues
within the workplace, establish and maintain a healthy work environment, and optimize employee and organizational
performance. While an in-house psychologist is advisable for most mid-to-large sized organizations, small businesses
with five to 10 employees generally do not warrant a full-time industrial psychologist and are better served with a
consultant.

While employers can make use of and implement principles of industrial psychology in their organization in the
absence of an on-staff industrial psychologist, a professional consultant should be engaged to conduct, analyze, and
present feedback on employee assessments.

FAQs:

What is meant by industrial psychology?

Industrial psychology refers to the practice of applying psychological theories and principles to workplace
environments. Industrial psychologists observe and evaluate human behavior and interactions in the workplace
and provide guidance and recommendations to improve human and organizational efficiency.

Why is industrial psychology important?

Industrial psychology plays an important role in establishing and maintaining a conducive work environment and
optimizing human and organizational efficiency. Key benefits include better workplace cooperation, higher levels of
job satisfaction, and increased productivity.
What are the benefits of industrial psychology to an organization?

 Improved recruitment practices.

 Efficient personnel selection.

 Increased employee productivity.

 Higher job satisfaction levels.

 Better work environment.

 Work-life balance.

 Greater workplace cooperation .

 The Human Relations Theory has human beings at its center as can be understood by the
name, but it also had more to it. It viewed human beings not as machine models but as
individuals with differing psychological motivations and with distinct and dynamic group behavior
affecting performances.
 There was an experiment conducted on the workers of the Hawthorne Works of the Western
Electricals in the spring of 1927 in Chicago. The experiment was being conducted by Elton Mayo
and Fritz Roethlisberger, the former being an Australian organizational theorist and the latter was
his employee. The experiment was later known as the Hawthorne experiment and the findings
were called the Hawthorne effect. Elton Mayo is often coveted as the father of the Human
Relations Movement and his experiment and studies are the most referenced piece of work not
just in public administration but also in people management in organizations.
 The Hawthorne experiment set out to find the relationship between the work conditions, the
general fatigue and resulting monotony in the employees. It was believed that the relationship can
be gauged by studying the effect of temperature, humidity lighting and hours of sleep.
 The findings of the Hawthorne experiment shocked the social scientists in many ways. The
experiment was carried out on a piece rate wage system for the participant workers. It was seen
that the workers were motivated to work for money only till the time when they would ensure an
adequate income and refused to work more than that. This simple but startling revelation created
quite a shakeup for the scientists as it clearly challenged the Taylorian principle of scientific
management. At the next level, some female workers were separated from the rest of the workers
and were put under observation. It was observed that with time and changed in the working
conditions like lighting, humidity etc, their productivity kept raising. This puzzled the scientists
even more, it was later discovered that the girls were aware of the experiment being conducted
on them and therefore displayed their best performance.
 The experiment conducted for over a year ended in some new understanding regarding people
and performance. It was understood that human beings are motivated by several factors and not
alone economic. They are greatly influenced by their social environment, form groups, have
goals, beliefs, conducts and ethics which might not be in sync with that of the organization. So,
for all practical purposes they were thinking, acting, conscious individuals who needed to be
treated like one.
 This was a theory which made the thinkers move away from the earlier popular classical theory
which proposed and emphasized on the structure, organizational planning etc as its core. It
became very clear after the Hawthorne experiments that the informal relationships, the group
dynamics and day to day functions of an organization are no less complex than the study of the
mechanism of the organization. At the end of the day, it becomes important that the employees
perform and their performance is sometimes far removed from the parameters and motivators
understood by the organization.

 Studies of how characteristics of the work setting affected

worker fatigue and performance at the Hawthorne Works
of the Western Electric Company from 1924-1932.
 Human relations movement – advocates that supervisors
be behaviorally trained to manage subordinates in ways
that elicit their cooperation and increase their productivity
o Worker productivity was measured at various levels of
light illumination.
 o Researchers found that regardless of whether the
light levels were raised or lowered, worker productivity
increased.

Human Relations Implications

– Hawthorne effect — workers’ attitudes toward their

managers affect the level of workers’ performance

Implications

• Behavior of managers and workers in the work setting is as

important in explaining the level of performance as the
technical aspects of the task
• Worker productivity was measured at various levels of
light illumination.
• Researchers found that regardless of whether the
light levels were raised or lowered, worker productivity
increased.
Organizations are focused on improving productivity and profits. For instance, one of
the major trends is improving employee engagement through policies like workplace
flexibility. These types of strategies can motivate employees, impacting productivity and
profitability.

Another option is available through the field of organizational behavior management,

which takes a more scientific approach to achieving business goals.

What Is Organizational Behavior

Management?
Organizational behavior management (OBM) applies behavioral principles to individuals
and groups in business, industry, government and human service settings, according to
Psychological Services, a publication from the American Psychological Association.
OBM can be seen as the intersection between behavioral science and improvement in
organizational environments.
OBM is rooted in the field of applied behavior analysis (ABA), which develops
techniques to produce socially significant behavior in a wide range of areas and
behavioral problems. ABA is one of three disciplines of behavior analysis, or the science
of behavior, which includes:

 Applied wing of the discipline of behavior analysis (ABA)

 Experimental analysis of behavior, focusing on basic principles of behavior
 Branch of behavior analysis that focuses on the conceptual and philosophical
underpinnings of the science of behavior (behaviorism)

Like ABA, OBM is focused almost exclusively on practical strategies that can be used to
change behavior. For instance, instead of focusing on personality traits that are most
predictive of high performers, ABA and OBM are more concerned about investigating
methods to improve performance.

The growth of OBM has resulted in three primary specialty areas.

 Performance management applies behavioral principles to manage the

performance of employees. This used to be synonymous with the term “OBM,”
but it is now its own field, contrasted by specialty areas geared toward other
levels of the organization.
 Systems analysis refers to the analysis and modification of organizational
processes to benefit the organization. This field focuses on how individuals or
groups of workers can complete interdependent tasks that lead to created
products or services important to the entire organization.
 Behavior-based safety is a fast-growing specialty that analyzes and modifies
work environments to reduce injuries and promote safe behavior. Instead of other
disciplines’ approach to safety from the standpoint of mechanical or structural
engineering, behavior-based safety concentrates on changing employees’
behavior to reduce injuries and make safe performance more common.

How Organizational Behavior

Management Works
Organizational behavior management (OBM) applications isolate, analyze and modify
environment events that most directly affect performance. Specific interventions allow
practitioners to effectively modify behavior in organizational environments.

Sample Interventions
There are two categories of OBM interventions: antecedent-based interventions and
consequence-based interventions.
Antecedent-based interventions include task clarification, equipment modification, goal
setting, prompting and training.

 Task clarification involves clearly defining employees’ tasks.

 Equipment modification involves altering equipment used for tasks.
 Goal setting involves setting performance goals and then access to rewards.
 Prompting involves prompts to perform or continue performing an activity.
 Training involves identifying and modifying inadequate employee knowledge,
skills or capacity.

Consequence-based interventions include feedback, praise and monetary and

nonmonetary incentives.

 Feedback involves delivering information about past performance to the

employee, which can vary according to format (verbal, written, graphic) and
delivery agent (manager-supervisor, consultant-researcher or fellow employee).
It is by far the most common intervention used in OBM.
 Monetary and nonmonetary incentives involve money, benefits or tangible items
contingent on performance; in practice and research, they are often combined.

Steps in an OBM Consultation

Here are some common steps that take place during an OBM consultation, regardless
of problem, setting and intervention, according to Psychological Services.

1. Determine key results. Typically, the practitioner or researcher works with

managers and executives to identify desired results.
2. Find the pinpoints. The practitioner works with managers and executives to
determine important behaviors and immediate results required to accomplish the
key results. These behaviors and results are often referred to as “pinpoints” or
“targets.”
3. Develop a measurement system. The practitioner helps the target audience
develop an accurate and reliable way to measure the pinpointed behavior and
results. This method often involves tracking costs associated with the pinpoints.
Measurements will provide information about the current levels of the behavior
and results, as well as providing a baseline comparison that can be used to
evaluate the effects of solutions.
4. Diagnose the problem. The practitioner teaches managers to ask questions and
conduct observations of the work environment and completed tasks to help
determine the cause of performance deficiencies. Asking questions and
collecting data typically involves four broad areas of potential causes:
antecedents, knowledge and skills, equipment and processes (including a
systems analysis), and consequences.
 5. Develop and implement a solution. After the results of the assessment, the
practitioner then works with managers to develop and implement solutions that
address identified deficiencies.
6. Evaluate the effects. Typically, results are measured before, during and after
solution implementation. There are at least three types of results that are of
interest to the OBM practitioner: behavior change results, treatment acceptability
and cost-benefit results. Behavior change results help verify whether the solution
changed the intended behavior and produced the intended outcomes. Treatment
acceptability is important in OBM because the solution will not be maintained if
employees and managers deem it unpalatable. Cost-benefit results help the
practitioner calculate return-on-investment figures.

Applying Organizational Behavior

Management to Health Care
A paper in Advances in Patient Safety: New Directions and Alternative
Approaches examined applications for OBM in health care.

“The relevance of OBM to improving health care is obvious,” according to the authors of
the paper. “While poorly designed systems contribute to most medical errors, OBM
provides a practical approach for addressing a critical component of every imperfect
health care system —behavior. Behavior is influenced by the system in which it occurs,
yet it can be treated as a unique contributor to many medical errors, and certain
changes in behavior can prevent medical error.”

One study found that providing feedback to caregivers on the frequency of hand
washing led to an increase in hand washing following patient contacts, from 63 percent
at baseline to 92 percent after intervention. Other OBM intervention studies found that
behavior-based interventions demonstrated significant increases in hand washing
among caregivers. Nonbehavioral attempts were deemed likely to fail at altering actual
behavior.

Other OBM interventions were successful. A quota system for emergency patients’
admission to internal medicine departments reduced length of stay without altering
outcomes. Education, discussion and feedback on proper laboratory tests reduced the
overall number of tests ordered without reducing patient outcomes. “Standardizing the
handoff communication procedure using antecedent reminders and feedback improved
patient satisfaction, medication administration record-keeping, completion of cardiac
enzyme regimens, and patient transportation without a cardiac monitor,” the paper
states. As a result, there were 67.5 additional hours of nursing time available each
month.
Advancing as a Business Leader
Managers, executives and other business leaders can work with behavioral specialists
to enhance behavior and ultimately lead to better business outcomes. It is one of many
strategies and tools for helping an organization achieve its goals.

Aurora University’s online bachelor’s in business administration and online MBA help

students develop the knowledge and skills needed to advance their careers. Students
receive instruction in current business practices from faculty members with real-world
experience. Each program takes place in a fully online learning environment.

Management Approaches and techniques

MOTIVATION:
 Derived from the word “motive” meaning to move, impel or induce to
act to satisfy a need of want.
 Refers to the forces either within or external to a person that arouse
enthusiasm and persistence to pursue a certain course of action.
 Willingness to exert efforts and interests to achieve a goal or
objectives for rewards.

Importance of Motivation:
 Directs activities towards the achievement of a goal.
 Controls and direct human behaviour.
 Inculcate spiritual and moral values
 Give satisfaction and happiness to the individual

Kinds of Motivation:
1. Intrinsic Motivation – natural desire of an individual to learn.
2. Extrinsic Motivation – outside forces that arise to an individual such as
honor, monetary reward and punishment.

Types of Motivation:
1. Achievement Motivation – the drive to pursue and attain goals, in which
achievement is important than rewards.
2. Affiliation Motivation – the drive to relate to people on social basis and
perform work better for favourable attitudes and cooperation.
3. Competence Motivation – the drive to do good, people seeks job mastery,
take pride in developing and using their skill in problem solving.
4. Power Motivation – the drive to influence people and change situations and
wish to create an impact on the organization and willing to take risks.
5. Attitude Motivation – it is the self-confidence and attitude to life.
6. Incentive Motivation – it is the awards and prizes that drive people to work.
7. Fear Motivation – the drive to coerce a person to act against will.

MOTIVATION THEORIES:
1. Douglas McGregor Theory

Theory X – an assumption that most people dislike work and will try to avoid it.
Workers are inclined to restrict work output, having little ambition and avoiding
responsibility.
People are believed to be self-centered, indifferent to organizational needs and
resistant to change.
Rewards cannot overcome the dislike for work, so management will coerce, control
and threaten employees to have satisfactory performance.

Theory Y – implies a humanistic and supportive approach to managing people.

Assumes the people are not inherently lazy, but seems to appear that way, as a result
of their experiences with less enlightened organization.
If management will provide the proper environment to release their potential, work
will be as natural as recreation.
Management believes that employees are capable of exercising self-direction and
self-control in the service of objectives to which they are committed.

THEORY X THEORY Y
The typical dislikes work and will avoid Work is natural as play or rest.
it if possible.
Typical person lacks responsibility. People are not inherently lazy, they have
become that way as a result of
experience.
Has little ambition and seeks security People will exercise self-direction and
above all. self-control in the service of objectives
to which they are committed.
Most people must be coerced, controlled People have potentials, under proper
and threatened with punishment to get conditions they learn to accept & seek
them to work. responsibility. They have ingenuity &
creativity that can apply to work.
With these assumptions the With these assumptions the
managerial role is to coerce and managerial role is to develop the
control employees. potential of the employees and help
them release that potential toward
common objectives.

2. Maslow’s Hierarchy of Needs Theory

Abraham H. Maslow developed the hierarchy of needs in 1940s better known as
Need Theory.
He said that human needs are not of equal strength.
They emerge in a definite sequence and assume that human needs are arranged in
hierarchy of importance.
 Maslow’s Hierarchy of Needs

Self-actualization
Personal growth and fulfillment

Esteem Needs
Achievement, status, responsibility, reputation

Belongingness and Love Needs

Family, affection, relationships, work group, etc.

Safety Needs
Protection, security, order, law , limits, stability, etc.

Biological and Physiological Needs

Basic life needs – are food, drink, shelter, warmth, sex, sleep, etc.

3. Alderfer’s Modified Need Hierarchy Theory

Clayton Alderfer a Yale Psychologist developed the E-R-G Need Theory of
Motivation. This theory modified Maslow’s need hierarchy concepts.

E-R-G stands three basic need categories:

Existence Needs – those necessary for basic human survival, psychological and
security needs, pay, physical working conditions, job security and fringe benefit.

Relatedness Needs – involving the need to relate to others, being understood and
accepted by people above, below, and around the employee at work, similar to
Maslow’s belongingness and esteem needs.

Growth Needs – analogous to Maslow’s needs for self-esteem and self-

actualization.
Growth
Needs
Relatedness
Needs
Existence
 Needs

4. Herzberg’s Two-Factor Theory

Frederick Herzberg in 1950s developed Maintenance and Motivational Factor or

the “content theory of motivation”.
From this research, Herzberg suggested s two-step approach to understanding
employee motivation and satisfaction.

Hygiene Factors
 Based on the need of unpleasantness in the work which includes:
o Company policy and administration
o Wages, salaries and other financial remuneration
o Quality of supervision
o Quality of inter-personal relations
o Working conditions
o Feelings of job security

Motivator Factors
 Based on an individual’s need for personal growth and if it exists in the work
it will create job satisfaction and can motivate individual to achieve above-
average performance.
 Motivator factor include:
o Status
o Opportunity for advancement
o Gaining recognition
o Responsibility
o Challenging/ stimulating work
o Sense of personal achievement and personal growth in a job

Herzberg’s Model to De-motivated Workers

Evidence of de-motivated workers:
o Low productivity
o Poor production or service quality
o Strikes/ industrial disputes / breakdown in employee communication and
relationships
o Complaints about wages/salaries and working conditions
Ways that management can do not make factors effective according to
Herzberg:
o Job enlargement
o Job rotation
o Job enrichment
 Employees not
Dissatisfaction Positive satisfaction
dissatisfied, but not
And Demotivation and motivation
motivated

Hygiene Motivator
Factors Factors

THEORIES OF MOTIVATION

Model of Maslow’s Herzberg’s Adelfer’s

Hierarchy of needs Two-factor model E-R-G model

Work itself
Motivational factors

5. Self-actualization and Achievement

fulfilment needs Possibility of growth Growth needs
Responsibility

Advancement
Recognition
4. Esteem and status
needs

Relations needs
Status
3. Belonging and social
Maintenance factors

needs Relationships with supervisors

Peer relations
Relations with subordinates
Quality of supervision
2. Safety and security
needs Company policy
 Job security
Existence needs
Working conditions
1. Physiological needs Pay

5. McClleland’s Achievement Motivation Theory

David C. McClleland of Harvard University conducted a study and developed a
classification scheme drives of motivation.

1. The needs for Achievement

o The desire to accomplish a task or goal more effectively than in the
past. They are described as “achievers”.
2. The needs for Affiliation
o The need for human companionship
o Revealed that people with affiliation, work better when complemented
for their favourable attitudes and cooperation
3. The needs for Power
o The desire to control resources in one’s environment.
o A drive that influence people and changes situation.

6. Equity Theory of Motivation

John Stacy Adams believed those personal efforts and rewards, other similar
“give and take” issues, and employees at work tend to judge fairness by
comparing the “outcomes” they receive, with their relevant “inputs” in their job.

Inputs – include the rich and diverse elements that an employee believe they
bring and contribute to the job, such as education, seniority, prior work
experience, loyalty, commitment, time and effort, creativity and job performance.

Outcomes – the rewards they get from their jobs, such as direct pay/salary,
bonuses, fringe benefits, job security, social rewards and psychological rewards.

One ' sownoutcomes Othe r ' s outcomes

=
On e' sown inputs Other ' s
 One’s Inputs One’s Outcomes
(also compared with others inputs) (also compared with others inputs)

Actual pay and

benefits
Job effort Social rewards
Education Psychological
Seniority rewards
Performance
Job difficulty
Other Inputs

7. Goal Theory of Motivation

Assumes that if one decides to pursue a goal, the person regulates his/her
behaviour to reach the goal.
Gary Ryan Blair picture the anatomy of goal as a triangle and the three points of
the triangle stands for WHAT, WHY and HOW.

o The what – is the goal

o The why – is the motive
o The how – is the method by which the goal is achieve

Key Point: the WHY is the most important, since we only achieve goals to
satisfy our motives and in satisfying our motives, two categories associated to
“why”, Pain and Pleasure. If goal is achieved, there is pleasure but if goal is a
failure, it’s pain.

8. Psychological and Economic Contract Theory

 The concept was developed by Jean Jacques Rousseau, which describe the
reciprocal acts of expectations between the individual and the organization.
 When an employee joins an organization, they make an unwritten
psychological contract, although they are not conscious of it and in addition
there is the economic contract.
  The psychological contract defines the conditions of each employee’s
psychological involvement both contribution and expectations to the social
system.
 The economic contract is the time, talent and energy exchanged for wages,
working hours and working conditions.
 Employees agree to give amount of loyalty, creativity and extra efforts, but in
return they expect more economic rewards from the organization/system.
 They seek job security, fair treatment and human dignity, rewarding
relationships with co-workers and organizational support in fulfilment their
development expectations.
 This theory builds upon the concept of exchange theory, whenever a
continuing relationship exists between two parties, each party examines the
rewards and costs of that interaction.

Result of Psychological Contract and Economic Contract:

1. If the organization only honors economic contract, employees have
lower satisfactions, since not all expectations are met and may also
withhold work-related contributions.
2. If both psychological and economic expectations are met, employees are
satisfied, stay with the organization and perform well.
3. If organization responds to economic contract and psychological
contract, it expects high performance of employees, quality
improvements, commitment to the organization and friendly services
to the customers, the employees are retained and may earn promotion.
4. If cooperation and performance do not meet expectations, corrective
actions and termination may occur.
LEADERSHIP

 The art of influencing people to strive willingly and enthusiastically to work with zeal
and confidence toward the achievement of goals.(zeal – enthusiastic devotion)
 In this survey of Ralph M. Stogdill (1989), leadership is the process of directing,
influencing and supporting others work toward task-related activities to achieve goals
and objectives.
 Help an individual or group to identify its goals, motivates people and assists in
achieving the goals.
 When one can influence others to do something of their own volition, instead of
doing something because it is required or fear the consequences of non-compliance.

Implications of the definitions:

1. Leadership involves people, employees or followers, their willingness to accept
directions will help leader status and make leadership possible.
2. Leadership involves un-equal distribution of power between leaders and members.
Members can do activities, but the leaders have more power.
3. Leadership is the ability to use different forms of power to influence follower’s
behavior. Leaders influence employees to make personal sacrifices for the good of the
company.
 4. Leadership is about values. James McGregor Burns (1978) argues that, leadership is
concern with moral values, thus followers are given knowledge of alternatives to make
intelligent choices to respond to a leader’s proposal.

Successful leadership depends on the leader’s appropriate behaviour, skills and actions less on
personal traits.
Behaviour and skills can be learned and changed, but traits are relatively fixed.
Aggressiveness and constant interaction with people will not guarantee good leadership, at
times, it is better to stay in the background keeping pressures off the group, to keep quiet so that
others may talk, to be calm in times of uproar and delay decisions.

Leader, Followers and Situation are elements or variables that affect one another in
determining appropriate leadership behaviour.

Leadership Involves:
1. Setting a direction for the organization.
2. Aligning people with that direction through communication.
3. Motivating people to action, through empowerment and basic need gratification.
4. Creates uncertainty and change in an organization.

LEADER – advocates changes and new approaches.

- Must be decisive, directive and controlling.
- Recognizes different situations and adapt to them on a conscious basis.
- Has a personal and active attitude, believes that goals arise from desire and
imagination.
- Looks for new approaches to old problems, seeks high risk positions especially with
high pay.
- Comfortable in solitary work activity, encourage close, intense working relationships.
- Has the ability to follow, being an effective follower exhibits a potential leadership.

Thus a Leader Must Have the:

 Ability to use power effectively and in a responsible manner.
 Ability to comprehend that human being has different motivation forces at
different times and in different situations.
 Ability to inspire.
 Ability to act in a manner that will develop a climate conducive to responding and
arousing motivations.

Leader Should Have the Following Skills:

1. Technical skill – refers to a person’s knowledge and ability, in any type of process or
technique.
2. Human skill – the ability to work effectively with people and to build teamwork.
 It involves energizing individuals, giving feedback, coaching, care-giving,
demonstrating empathy and sensitivity and showing compassion and support for
people who need it.
3. Conceptual skill – the ability to think ideas in terms of models, frameworks and broad
relationships such as lone-range plans.

LEADERSHIP STYLE – a consistent combination of philosophy, skills, and traits that

are exhibited in a person’s behaviour and reflect a manager’s beliefs on subordinate’s
capabilities.

TYPES OF LEADERSHIP:
1. Positive Leadership
The approach of leaders is to motivate people, emphasizes on reward, economic
improvement, better employee education, greater demands for independence,
generally the job result has higher satisfactory performance.
2. Negative Leadership
The approach of leader is on threats, fear, harshness and penalties to get work
done. Penalties as loss of job, reprimand in the presence of others, and few days
off without pay.
3. Autocratic Leadership
- An approach that satisfy the leader for quick decisions, allow less competent
subordinates, commands and expects compliance.
- Can withhold or give rewards and punishment.
4. Consultative Leadership
- A leader approach that consults one or more employees and ask them inputs and
ideas prior to making decisions.

5. Democratic or Participative Leadership

- Leader use inputs from followers.
- Employees are informed about conditions affecting their jobs, they are
encouraged to express their ideas, make suggestions, and take action.
- Involves subordinates in decision making so that they feel jointly responsible in
achieving goals and objectives.
6. Consideration or “Employee Orientation” Leadership
- Leader behaviour aimed at nurturing friendly, warm working relationships with
subordinates, encouraging mutual trust and interpersonal respect within the work
unit of an organization.
- Leader behaviour is concern about human needs of employee, build teamwork,
psychological support and help employees with their problems thus attaining high
performance and job satisfaction.
- Leader looks toward achieving good interpersonal relations with subordinates.

7. Initiating Structure or “Task-Oriented” Leadership

- Leader behaviour aimed at defining and organizing work relationships and roles,
establishing clear patterns of organization, communication and ways of getting
things done.
- Leader behaviour believe that they get results by keeping employees constantly
busy, ignoring personal issues, emotions and urging them to produce.
- Leader gains satisfaction from seeing the task performed.
 8. Managerial Grid or Leadership Grid
[Grid – a system or arrangement of interesting parallel lines dividing a chart to squares]
- Developed by Robert R. Blake and Jane S. Mouton with focus on attitudes, with
two independent attitudinal dimensions labelled as Concern for Results or
Production and Concern for People with the purpose to transform leader to lead in
the “one best way” in an organization.
- The grid is on a 9-point scales, addresses both behaviour and attitude of leader, it
shows how two dimensions are related and establishes a uniform language and
framework for communication and can help identify, not only leadership but also
“back-up scale”.
The back-up style is use when normal style does not get results, managers tend to
be more autocratic and concerned with results or production.

Managerial Grid or Leadership Grid

High 9 1.9 9.9

8
7
Concerns for People

6
5 5.5
4
3
2
1 1.1 9.1
Low 1 2 3 4 5 6 7 8 9
Concerns for Results High

(5.5) – Organization Man Manager – a middle of the road leader, attempts to balance the
concern for people and production without commitment to either.
- Adequate organization performance is possible through balancing the necessity to get
work done while maintaining morale of people at a satisfactory level.

(9.1) – Authority-Compliance Manager – has a great concern for production and little
concern for people. Leader desires right control to get tasks done efficiently and considers
creativity and human relations unnecessary.
 - Efficiency in operations result from arranging conditions of work in such a way that
human elements interfere to minimum degree.

(1.9) – Country Club Management – has great concern for people and little concern for
production. Leader attempts to avoid conflict. The leader’s goal is to keep people happy through
good interpersonal relations than the tasks.
- Thoughtful attention to needs of people for satisfying relationships leads to comfortable
friendly organization atmosphere and work tempo.

(9.9) – Team Manager – is considered ideal and has great concern for people and
production. Leader works to motivate employee to reach their highest levels of accomplishment.
The leader is flexible and reasonable, responsive to change and understands the need for change.
- Work accomplishment is from committed people interdependence through a “common
stake” in organization which leads to relationships of trust and respect.

(1.1) – Impoverished Manager – often refers to laissez-faire leader. Leader has little concern
for people or production, avoids taking sides, stays out of conflicts and does enough to get
by.
- Exertion of minimum effort to get work done is appropriate to sustain organization
membership.

ADDITIONAL LEADERSHIP STYLE:

1. Paternalistic “father knows best”
- Leader promises rewards for compliance and threatens punishment for
noncompliance.
2. Opportunistic “what’s in it for me”
- Leader has personal interest, thinks of self-benefit.
3. Benevolent-Autocrat
- Leaders listen to his subordinates ideas and opinions before making decision but
ultimately the decision is his own.
4. Liberal or Free-rein
- Leader uses rarely his powers, depend on subordinates to set goals and means of
achieving them, give subordinates high degree of independence in their operations.

5. Laissez-faire
 - It means “let people do as they choose”, leader let members work out details on
how the organization is to function. Leader is just figure-head and concern only on
the title and what he desires.
6. Manipulative-Inspirational
- Leader sets rules and interprets as they see fit, high pressure tactics or emotionalism
is use to let people follow the direction set by the leader.

LIKERT’S SYSTEM MANAGEMENT:

The “principle of supportive relationship” developed by Rensis Likert states that,
leadership and other processes of the organization must ensure a maximum probability of
interactions and relationships with the organization. Each member depending on the individual’s
background, values, and expectations will view their experience as supportive, thus builds and
maintains sense of personal worth and importance.
- Effective leader relies on communication to keep all employees working, adopt a
supportive attitude which they share in common needs, values, aspirations, motivations,
expectations and goals.
- An organization is a social system, so workers are important element, wherein the worker is
not a simple tool but complex personality that is difficult to understand, therefore, it is
important for a leader to understand people and give supportive supervision.
- The leader assumes that employees are not passive and resistant to organizational needs, but
if given the chance, they will take responsibilities and develop a drive to improve themselves.
- Psychological result of this theory is that, employees have the feeling of participation and
task involvement in the organization thus they are motivated to work because their status and
recognition needs are met.

Likert’s System Management Leadership Style:

1. Exploitative-Authoritative
 Leaders are highly autocratic, have little trust in subordinates, motivate people
through fear and punishment and occasional rewards.
 Engage in downward communication and limit decision-making in the top.
2. Benevolent-Authoritative
 Leaders have patronizing confidence and trust in subordinates, motivates with
rewards and some fear and punishment.
 Permit some upward communication and solicit ideas and opinions from
subordinates and allow some delegation of decision-making but with close policy
control.
3. Consultative
 Leaders have substantial skill but no complete trust and confidence with
subordinates; they make use of subordinates ideas and opinions, use rewards for
motivation with occasional punishment.
  Engage in communication flow both down and up, make broad policy and
general decisions at the top, but allow some specific decisions to be made at lower
levels.
4. Participative Group
 Leaders have complete trust and confidence in subordinates in all matters
affecting the organization, gets ideas from subordinates and constructively use
them, give economic rewards on the basis of group participation and involvement
in setting goals.
 Engage in communication down and up with peers, encourage decision-making
throughout the organization and operate themselves with the subordinates as a
group.

HOWEVER, there are times, Positive, Participative, and Considerate Leadership is not always
the best style to use, and leaders should know how to identify when to use different styles.
They are called CONTINGENCY APPROACHES – using appropriate leadership style
depending on the nature of the situation facing the leader.
1. Fiedler’s Contingency Approach
Developed by Fred Fiedler, which suggests that the most appropriate leadership style
depends on the overall situation, whether favourable, unfavourable or an intermediate
stage of favourability to the leader.
 Leader’s effectiveness is determined by the interaction of employee, the task and
the organization.
They are:
1. Leader-member relations – determined by the manner which the leader is
accepted by the group.
2. Task structure – reflects the degree to which one is required to do the job.
3. Leader position power – describes the organizational power that goes with the
position the leader occupies
Examples: Power to hire and fire, status symbols and power to give pay raises and
promotions.
2. Situational Leadership Approach
Developed by Paul Hersey and Kenneth Blanchard, suggest that, the leader’s
behaviour should adjust to the readiness level of the followers, which can be
determined by the follower’s ability and willingness to complete a specific task.

Styles of leader behaviour associated with Readiness Levels of Employee:

1. Telling Style – a follower is unable and unwilling to do certain task.
 Leader provides instructions to followers and closely monitoring their
performance.
 Involves considerable task behaviour and low relationship behaviour.
 2. Selling Style –as follower is unable but willing and confident to do a task.
 Leader coach and explains decisions and provide opportunities for employees
to seek clarification or help.
 There is high task behaviour and high relationship behaviour.

3. Participating Style – a follower will be able to complete a task, but seen unwilling
or insecure in doing.
 Leader explains decisions and provides opportunities for the employee to seek
clarification or help.
 There is high relationship but low task behaviour.

4. Delegating Style – s follower is able and willing.

 Leader encourages the follower to participate in decision making.
 Follower readiness is high and lower levels of leader involvement.
 Characterized by low task behaviour and low relationship behaviour.

3. Pat-Goal Leadership Approach

Developed by Robert House, the theory assumes that leaders adapt their behaviour and
style to fit the characteristics of the followers and the environment in which they work.

The leader considers both the advantages and the work environment.

Styles of leader behaviour advantageous to followers:

1. Directive style
 Leader gives specific guidance about work tasks, schedule work and
let followers know what is expected.

2. Supportive style
 Leader express concern on the well-being of followers, their needs
and social status.

3. Participative style
 Leader engages in joint decision making activities with followers.

4. Achievement-oriented style
 Leader set challenging goals for followers and show strong
confidence to followers.

4. Vroom-Yetton-Jago Normative Decision Approach

Developed by Victor Vroom, Phillip Yetton and Arthur Jago, to help leaders and
managers know, when to let employees participate in the decision making process.
 They developed five forms of decision making which recognizes the benefits from
authoritative, democratic and consultative styles of leader behaviour.
1. Decide – manager makes decision alone and either announces it or “sells” it to the
group.
2. Consult individually – manager presents the problem to the group members
individually, gets their input and then makes the decision.
3. Consult group – managers presents the problem to the group members in a meeting
gets their inputs and then makes the decision.
4. Facilitate – manager presents the problem to the group in a meeting and acts as a
facilitator, defining the problem and the boundaries that surround the decision. The
manager ideas are not given weight and any other group member’s ideas. The
objective is to get concurrence.
5. Delegate – manager permits the group to make the decision within the prescribed
limits, providing needed resources and encouragement.

5. Leader-Member Exchange (LMX) Approach

In the organization, leader form two groups, the in-group and the out-group with
different relationships to the followers.

In-group Members – are those within the leader’s inner circle of communication, they
are given greater responsibility, more rewards and attention. Followers are more
satisfied but stress comes from additional responsibilities.

Out-group Member – are those outside the circle and receive less attention and fewer
rewards. They are managed by formal rules and policies of the organization network.
Followers stress comes from being left out of the communication network.

6. Transformational Leadership Approach

Leaders motivate, inspire and excite followers to high levels of performance by

raising a sense of importance and value to their tasks.
They rely on personal attributes instead of their official position to manage
followers by going beyond self-interest for the sake of the organization.
And do not use rewards and punishment to make deals with subordinates.
Four I’s of transformational Leadership:

1. Idealized Influence
Leaders display conviction, emphasize trust, take stands on difficult issue, present
important values, purpose, commitment and ethical consequences of decision.
 Leaders are admired as models, the generate pride, confidence and alignment
around a shared purpose.

2. Inspirational Motivation
Leaders articulate an appealing vision of the future, challenge followers with high
standards, talk optimistically with enthusiasm and provide encouragement and
meaning to the needs to be done.

3. Intellectual Stimulation
Leaders question old assumptions, traditions and beliefs, thus stimulate new
perspective and ways of doing things.
Encourage the expression of ideas and reasons.

4. Individual Consideration
Leaders treats each followers as an individual and provides coaching, mentoring
and growth opportunities. They consider their individual needs, abilities and
aspirations.

7. Charismatic Leadership Approach

Charisma is a Greek word meaning “gift”, followers view charismatic leaders as

one who possess superhuman or mystical qualities.

 Leaders use the force of personal abilities and talents to have profound and
extraordinary effects on followers.
 This is effective in times of uncertainty, and have high levels of achievement
and performance of the followers but there is also risks of destructive courses of
action that might leads to struggle, harm, conflict and death to followers.

THEREFORE in using Contingency Approach, leaders and managers should:

o Examine their situation – the people, task and organization.
o Be flexible in the use of various skills within the overall style.
o Consider modifying elements in their jobs to obtain a better preferred
style.