Leading --- Inspiring and influencing people in the organization to achieve a common goal

Managing ----- The process of working with and through others to achieve organizational
objectives efficiently and ethically amid constant change. Deals with planning, organizing,
staffing, leading, and controlling.
Big Five Personality Characteristics
1. Extraversion – degree to which someone is sociable, talkative, and assertive.
2. Agreeableness –degree to which someone is good natured, cooperative, and trusting.
3. Emotional Stability –degree to which someone is calm, enthusiastic, and secure or,
tense, nervous, depressed, or insecure.
4. Conscientiousness –degree to which someone is responsible, persistent, and
achievement-oriented.
5. Openness to Experience –degree to which someone is imaginative, artistically sensitive,
and intellectual.

What is the relationship of the personality of managerial function of leading and the organization
performance? ---- Work behavior:
A. Organizational Citizenship Behavior
Refers to employee behavior that exceed work role requirement and
behavior that goes beyond duty.
B. Organizational Commitment
Refers to extent to which an employee identifies with an organization and its
goals.
C. Job Satisfaction and Productivity
Refers to employee’s general attitude toward their respective jobs.
MOTIVATION
1. Maslow’s Hierarchy of Needs Theory – refers to Maslow’s Hierarchy of Five Human
Needs: physiological, safety, social, esteem, and self-actualization.
a. Physiological Needs refer to the human need for food, water, shelter, and other physical
necessities.
b. Safety Needs refer to human needs for security and protection from physical and
psychological harm.
c. Social Needs pertain to the human desire to be loved and to love, as well as the need for
affection and belongingness.
d. Esteem Needs include the human need for self-respect, self-fulfillment, and become the
best according to one’s capability.
e. Self-actualization Needs are the final needs in Maslow’s hierarchy.
2. McGregor’s Theory X and Theory Y – refers to the theory that was proposed by Douglas
McGregor.
Assumptions of Theory X
 An average employee intrinsically does not like work and tries to escape it whenever
possible.
 Since the employee does not want to work, he must be persuaded, compelled, or warned
with punishment so as to achieve organizational goals. A close supervision is required on
part of managers. The managers adopt a more dictatorial style.
Assumptions of Theory Y
 Employees can perceive their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
 Employees may not require only threat, external control and coercion to work, but they
can use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.

Managers must be guided by Theory Y, so McGregor proposed that they must give
employees a chance to participate in decision-making, assign them challenging jobs to
exercise their responsibility in handling complex situations, and allow them to have good
work relations with others, which would enhance their motivation.

3. Herzberg’s Two Factor Theory – was proposed by Frederick Herzberg. States that intrinsic
factors are associated with job satisfaction, while extrinsic factors are associated with job
dissatisfaction. Intrinsic factors are the motivators while the extrinsic factors are called hygiene
factors.
1. Hygiene factor or Extrinsic motivators
Represent more tangible, basic needs. Extrinsic motivators include company policy, status, job
security, salary, and benefits. It’s important for managers to realize that not providing the
appropriate and expected extrinsic motivators will cause dissatisfaction and decrease motivation
among employees.
2. Motivation factors or intrinsic motivators
Tend to represent more emotional needs—i.e., the kinds of needs identified in the “relatedness”
and “growth” categories of needs in the ERG theory and in the higher levels of Maslow’s
hierarchy of needs. Intrinsic motivators include challenging work, recognition, relationships, and
growth potential. Managers need to recognize that while these needs can be critical to strong
individual and team performance.
4. McClelland’s Three Needs Theory – was proposed by David McClelland and states that
individuals have three needs that serve as motivators at work. The three motivators are:

A. Achievement: 
A need to accomplish and demonstrate own competence. People with a high need for
achievement prefer tasks that provide for personal responsibility and results based on their own
efforts.  They also prefer quick acknowledgment of their progress.
B. Affiliation: 
A need for love, belonging and social acceptance. People with a high need for affiliation are
motivated by being liked and accepted by others.  They tend to participate in social gatherings
and may be uncomfortable with conflict.
C. Power: 
A need for controlling own work or the work of others. People with a high need for power desire
situations in which they exercise power and influence over others.  They aspire for positions with
status and authority and tend to be more concerned about their level of influence than about
effective work performance.
Managers are advised to be observant of these needs among their subordinates so that
they could be given job assignments that would satisfy their highest needs, if possible. In
doing so, they may be more motivated to work well.

5. Alderfer’s ERG Theory – was developed by Clayton Alderfer in the 1960s. For Alderfer, a
set of core needs explains behavior.

 E stands for existence needs - concern our basic material requirements for living.
These include what Maslow categorized as physiological needs and safety-
related needs (such as health, secure employment, and property).

 R refers to relatedness needs - The importance of maintaining interpersonal relationships.

These needs are based in social interactions with others and align with Maslow’s levels of
love/belonging-related needs
Ex. Need for friendship, family, and sexual intimacy) and esteem-related
needs (gaining the respect of others).

 G pertains to growth needs. Our intrinsic desire for personal development. The needs or
desire for physiological and materialistic well-being, to have meaningful relationships
with others, and to grow as a human being are similar to the needs presented in Maslow’s
Theory.
Examples: self-esteem, self-confidence, and achievement and self-
actualization needs such as morality, creativity, problem-solving, and
discovery.
Modern Theories of Motivation are process theories that focus on the notion that motivation is
a function of employees’ perceptions, thoughts, and beliefs. Among these are:
a. Goal Setting Theory - In 1960’s, Edwin Locke put forward the Goal-setting theory of
motivation. This theory states that goal setting is essentially linked to task performance.
It states that specific and challenging goals along with appropriate feedback contribute to higher
and better task performance. In simple words, goals indicate and give direction to an employee
about what needs to be done and how much efforts are required to be put in.
 Goals should be realistic and challenging. This gives an individual a feeling of pride and
triumph when he attains them, and sets him up for attainment of next goal.
 The more challenging the goal, the greater is the reward generally and the more is the
passion for achieving it.
b. Reinforcement Theory – a theory which states that behavior is a function of its
consequences. The reinforcement theory of motivation aims to motivate staff through
reinforcement, punishment and extinction. Reinforcement theory in the workplace can be
positive or negative as long as it reinforces the desired employee experience and behavior.
Positive reinforcement
A key idea in the reinforcement theory of motivation is that positive reinforcement with rewards
reinforces desired behaviors. For example, providing an employee with rewards or benefits for
good performance in their job.
Negative reinforcement
Negative reinforcement involves forcing one to follow rules or to completer their job by taking
away privileges or by punishing them.

a. Job Design Theory

– a theory which states that employees are motivated to work well by combining tasks to
form complete jobs.
 Managers are advised to design jobs that will meet the requirements of the ever-
changing environment, the firm’s technology, and the workers’ skills, abilities,
and preferences. In doing so, employees are motivated to perform well.
 Examples are:
job enlargement—the horizontal expansion of a job by increasing job scope;
job enrichment—the increasing of job depth by empowering employees to
assume some tasks usually done by their managers; and
job characteristics model—where employees are motivated to perform well
because the task assigned to them have the five core job dimensions that serve as
motivators.
d. Equity Theory – a theory developed by J. Stacey Adams.
- States that employees assess job outcomes in relation to what they put into it and then
compare these with their co-workers. If the employee perceives that his job is equitable in
 comparison to those of his coworkers, there is no problem. However, if the opposite is
true, this will become a demotivator to his or her job performance. Managers must see to
it that they exercise fairness or equity in their company.

f. Expectancy Theory – Employees or Organization members will act based on their

expected gain.
- Managers are advised to understand an employee’s goal so that he or she would be able
to link the rewards or outcomes to be offered with the said goals.
REWARDS SYSTEM
A. Monetary Rewards
Salary -- financial remuneration
Benefits ---- Health insurance, vacation leaves, retirement benefits, etc.
Incentives ---- Bonuses, incentive pay
Executive pay ----basic payment, benefits, stock option, bonuses, and prequisites
Stock Options ---- Organization stocks
B. Non-monetary Rewards
Award --- Examples include medals, certificates, trophies etc.
Praise ---- verbal or oral expression of appreciation

LEADERSHIP STYLES AND THEORIES

A. Early Leadership Theories (Kreitner and Kinicki, 2013).

1. Trait Theory – a theory which states that leaders were born with some innate ability to
lead.
2. Behavioral Theory – a theory that focuses on the behavior, action, conduct, demeanor,
or deportment of a leader instead of his or her personality traits.
 Based on the belief that the leader’s behavior affects work group effectiveness.
Further studies on this theory emphasized that since behavior is learned, leader
behaviors can also be learned. In short, leaders are made and not born.

B. Contemporary Theories of Leadership

1. Fiedler Model – it is a situational leadership theory proposed by Fred Fiedler, an

organizational behavior scholar. This theory is based on the assumption that a leader’s
effectiveness is contingent or dependent on the extent to which a leader’s style is fitted to
actual situations in the organization’s internal and external environment.
2. Hersey-Blanchard Model – another situational leadership theory proposed by Paul Hersey
and Ken Blanchard. The theory focused on subordinates’ readiness or extent to which the
said subordinates have the ability and willingness to accomplish a specific work
assignment.
3. Path-Goal Theory – a theory developed by Robert House which states that the leader’s
task is to lead his other followers or subordinates in achieving their goals by providing
them direction needed in order to ensure compatibility of these said goals with the
organization’s goal
Modern Leadership Views
Similarly, views on leadership evolved over time. Among the modern views on and
approaches to leadership are the following:
1. Transactional Leadership Model –states that leaders guide their subordinates toward
the achievement of their organization’s goals by using social exchange or transactions
and by offering rewards in exchange for their productivity.

2. Transformational Leadership Model – a view that developed from transactional

leadership. It states that leaders inspire or transform followers to achieve extraordinary
outcomes. Through their leadership, they are able to excite and inspire followers to exert
extra effort to achieve group goals.
3. Charismatic Leadership Theory –states that leaders who have a charismatic personality
are able to influence their subordinates to follow them. Charismatic leaders pertain to leaders
who are self-confident, enthusiastic, and sensitive to both environmental constraints and
subordinates’ needs. Charismatic leaders take risks to achieve their vision, and have the
ability to communicate well—verbally or nonverbally—through their behavior, among
others.
4. Visionary Leadership Theory – is a theory which states that leaders are able to make
their subordinates follow because of their ability to create and articulate a realistic, credible,
and attractive vision that may improve present conditions or circumstances.
 Visions that are clearly explained are easily grasped and accepted by
subordinates/followers, thus giving them high energy to perform their tasks well.
5. Team Leadership Theory – is a theory that emerged because of the fact that leadership is
increasingly taking place within a team context and that more companies are now utilizing
work teams led or guided by leaders.
 Many managers are now trying to learn how to become effective team leaders.
Among the skills that they must learn are information sharing, trusting others,
lessening their authority by empowering subordinates, and proper timing for
mediation, among others.
6. Servant Leadership Theory – a theory proposed by Robert Greenleaf in 1970 stating that
servant-leaders must focus on increased service to others rather than to one’s self.
 Barriers to Communication
Organization members may encounter various types of barriers that can alter the meaning of
communications that they receive. These barriers include:
1. Filtering – the shaping of information communicated in order to make it look good or
advantageous to the receiver.
2. Emotions – the interpretation of communications which may be influenced by extreme
emotions felt by the receiver.
3. Information overload – another barrier to good communication since there are too many
pieces of information received by an individual may have a negative effect on a person’s
processing capacity.
4. Defensiveness – the act of self-protection when people are threatened by something or
someone.
5. Language – could also hamper good communications because words used may have
different meanings to different people belonging to different age, educational
background, or cultural group.
6. National culture – just like language, the prevailing national culture may also cause
problems in communication among members of an organization, especially if it is
multinational company

Overcoming Communication Barriers

To avoid conflicts resulting from communication problems, managers try to overcome
communication barriers though the following means:
1. Using feedback – This is usually done by asking questions about a memo sent to
subordinates or by asking them to give their comments or suggestions.

2. Using simple language – Language used must fit the level of understanding of the
intended recipients of the communication.

3. Active listening – This means listening well in order to grasp the full meaning of the
communication. Hearing without giving full attention to what others seek to
communicate usually results in misinterpretations and communication distortions.

4. Controlling emotions – When the receiver is affected by extreme anger, his

interpretation of a message received may not be accurate. On the other hand, when the
sender is affected by extreme emotions, he/ she may also send or transmit inaccurate
information. Therefore, it is important to practice emotional restraint.

5. Observing body language – This also influences how communication is interpreted.

Actions of the message receiver, Nonverbal cues must always be watched because, as the
saying goes, actions speak louder than words.