Module III

Human Relations, Leadership &

Motivation
T.Y.B.Com.
Semester VI
Dr.P.K.Soni
 Content
 Concept and significance of Human Relations
 Leadership-
Transactional Leadership
Transformational Leadership
 Motivation – Maslow’s Need Hierarchy Theory, Vroom’s
Expectancy Theory, McGregor’s Theory X and Theory Y – Pink’s
Theory of motivation
 Employees Morale – concept and factor, Measurement of morale,
EQ and SQ concept and factors
 Employees Grievances – Concept, Causes, Procedure for grievance
redressal.
Employee welfare Measures ,
Health and safety measures
 Human Relations
 “It is a process of an effective  Significance
motivation of individuals in a 1) Makes Management
given situation in order to sensitive to employee needs
achieve a balance of objectives,
which will give greater human 2) Improve moral of
satisfaction and help accomplish employees
company goals” 3) Job satisfaction
 Maintaining and improving 4) Higher Productivity
relations bring benefits to the 5) Innovations
organisation and to the 6) Reduction in conflicts
employees.
7) Effective Communication
8) Reduction in absenteeism
and Labour turnover
Leadership
 It is the activity of influencing
people to strive willingly for
group objectives
 It is the ability to secure
desired actions from a group
of followers, without the use
of coercion
 Every manager develop a
style in managing the
activities. such styles very
from leader to leader, from
situation to situation and
from organisation to
organisation .
Transactional Leadership
 It is a style of leadership  Features
whereby a leader secures 1) Reactive
compliance of the 2) Organisation culture
followers through rewards
3) Objectives
(for good performance)
and punishment (for poor 4) Innovative ideas
performance). 5) Style of leadership
 This style of leadership was 6) Time horizon
first describe by Max 7) Professional growth of
Weber in 1947. employees.
Transformational Leadership
 Transformational leaders  Elements of Transformation
motivate and empower Leadership
employees to achieve goals by 1) Individualized
appealing to higher ideals and consideration
moral values. 2) Intellectual Stimulation
 This concept was first
3) Inspirational Motivation
introduced by James
McGregor Burns in 1978. 4) Idealize Influence
 In 1985, Bernard M. Bass
(Charisma)
expanded Burns idea. He
suggested that
transformational leaders
garner admiration, respect
and trust of the followers.
Motivation - Concept
 This term derived from the  Importance of motivation
word ‘motive’. Motive refers 1) Innovation
to the inner drive that makes
2) Corporate image
a person to do something or
to behave in a certain way. 3) Competitive advantage
 Definition : 4) Generate higher efficiency
“Motivation is the act of 5) Team work
stimulating someone or 6) Optimum use of resources
oneself to get a desired 7) Reduce absenteeism
course of action, to push the 8) Loyalty
right button to get a desired
reaction”
 Maslow’s Need Hierarchy Theory
 Abraham Maslow
propounded this theory
of human motivation. He
identified five sets of
human needs. The five
sets of needs are
arranged in a hierarchy of
their importance to
individuals
Maslow’s Need Hierarchy Theory
 Features
 Human needs are multiple
and inter related
 Human Needs are arranged
into a hierarchy
 Lower level needs to be
satisfied earlier
 A satisfied need is not a
motivator
 Inter dependence of needs
 Importance
 It helps to identify the needs
and motivate employees by
providing right incentives
 Proper wage policies
 Provide job security and
adopt health and safety
measures
 Develop participative system
 Promotion of employees
 Provide challenging job to
dynamic employees
 VROOM’s Expectancy Theory of Motivation
 This model was developed by
Victor H. Vroom
 According to him, motivation is a
product of three variables valence,
instrumentality and expectancy.
 Vroom’s theory is commonly called
as VIE theory
 Motivation = Valence
+Instrumentality + Expectancy
 Valance
It refers to strength of an
individual’s preference for a
particular outcome or reward.
 A valence of zero occurs when
an individual is indifferent
towards the outcome
 A valence is negative when an
individual prefers not achieving
the outcome
 A valence is positive hen an
individual prefers achieving the
outcome
VROOM’s Expectancy Theory
 Instrumentality
 Vroom’s model states that a fist
level outcome is instrumental
(responsible) in obtaining a
desired second level outcome.
 The instrumentality can be zero
when there is a low probability
of the first level outcome in
obtaining a desired second level
outcome.
 The instrumentality can be 1
when there is high probability of
first level outcome resulting in
obtaining a desired second level
outcome.
 Expectancy
 It is the strength of belief that
one’s effort will result in
completion of a task.
 It refers to the effort –
performance relationship
 When employee believes that
efforts will not result in desired
performance, the expectancy is
zero
 When employee believes that
efforts will definitely result in
desired performance, the
expectancy has a value of 1.
What is Vroom's Expectancy Theory?
 Vroom's expectancy theory separates effort, performance and
outcomes, while Maslow and Herzberg focus on the relationship
between internal needs and the resulting effort expended to fulfil them.
 Vroom's expectancy theory assumes that behaviour results
from conscious choices among alternatives whose purpose it
is to maximise pleasure and to minimise pain.
 Vroom realised that an employee's performance is based on individual
factors such as personality, skills, knowledge, experience and abilities.
 He stated that effort, performance and motivation are linked in a
person's motivation.
 He uses the variables Expectancy, Instrumentality and Valence to
account for this.
Expectancy
 Expectancy is the idea that increasing the amount of
effort will increase performance (if I work harder then I
will perform better).
 This is affected by:
 Having the right resources available (e.g. raw materials, time)
 Having the right skills to do the job
 Having the necessary support to get the job done (e.g.
supervisor support, or correct information on the job)
Instrumentality
 Instrumentality is the idea that if you perform better, then
the outcome will be achieved (If I perform well, there I will
achieve the desired outcome).
 This is affected by:
 A clear understanding of the relationship between performance
and outcomes – e.g. the rules of the reward 'game'
 Trust in the people who will take the decisions on who gets what
outcome
 Transparency of the process that decides who gets what outcome

Valence
 Valence is the perceived value the employee puts on the
outcome. For the valence to be positive, the person must prefer
attaining the outcome than not attaining it. (If someone is mainly motivated
by money, he or she might not value offers of additional time off).
 The three elements are important behind choosing one element over
another because they are clearly defined:
 Effort-performance expectancy (E-->P expectancy) and performance-
outcome expectancy (P-->O expectancy).
 E-->P expectancy: our assessment of the probability that our efforts
will lead to the required performance level.
 P-->O expectancy: our assessment of the probability that our
successful performance will lead to certain outcomes.
 Vroom's expectancy theory works on perceptions, so even if a
motivation tactic works with most people in the organisation, it doesn't
mean that it will work for everybody.
McGregor’s Theory X and Theory Y
 In 1960, Douglas McGregor
first presented his idea on
‘Theory X and Theory Y’ in
an article “The Human Side
of Enterprise”.
 Theory X – Traditional
approach of managing people
 Theory Y – The professional
approach of managing
people.
 This theory based on certain
assumptions which are as
follows.
1) Creativity
2) Responsibility
3) Activeness
4) Challenges
5) Followers / Leaders
6) Opportunities
7) Nature of people
8) Self motivation
9) Leadership style
 Pink’s Theory of Motivation
 Daniel H. Pink presented a theory of
motivation in the book –’Drive: The
surprising truth about what motivates
us’ which was published in 2009. His
work based on research undertaken by
three psychologist in 1971. These
psychologist's found that financial
rewards may not improve employees'
work performance
 He classifies motivation in to three
levels of operating system:
 Motivation 1.0
 Motivation 2.0
 Motivation 3.0
 Motivation 1.0
Survival (food gathering or hunting
for survival)
• Motivation 2.0
based on rewards and punishment
‘carrot and stick, approach.
Motivation 2.0 depends on
Extrinsic Factors or “Type X”
behaviour.
 Motivation 3.0
This operating system can put into
force with Intrinsic Motivation or
‘Type I behaviour’ (when people
are self motivated because they are
given freedom to do the work. This
approach revolved around three
elements : autonomy, mastery and
purpose
Three Key Factors of Intrinsic Motivation
 I) Autonomy (desire to have
freedom) -
If managers wants employees to
be more committed and
dedicated in what they are Autonomy
doing, then autonomy (self-
direction) should be provided to
them, in case of complicated
tasks where good deal of
creativity is required. purpose Mastery
 Daniel Pink states four main
elements of autonomy :(4Ts) –
Time, Technology, Team and
Task.
Three Key Factors of Intrinsic Motivation
 II) Mastery  III) Purpose
 management need to improve  Integration of personal goals of
mastery of employees at work employees with that of the
place. organisational goals.
 It is the desire to continuously  Employees should be motivated
improve at something which to make a difference to the
they enjoy doing. society rather than simply
 Lack of opportunity at work working to achieve higher
place demotivate employees . economic gains.
 When employees are motivated
by mastery, they will try to
improve their skills through
learning and practice.
 Management provide Goldilocks
task to employees.
 Employee Morale
 Edwin Flippo states that ‘morale as a
mental condition or attitude of
individuals or groups which
determines their willingness to
cooperate’
 Dalton E. Macfarland states ‘Morale
is basically a group phenomenon. It is
a concept that describes the level of
favourable or unfavourable attitude of
employees collectively to all aspects
of their work – the job, company,
their tasks, working conditions,
fellow workers, superior and so on’
Factors influencing morale
 Image of the organisation
 Clear structure
 Quality of superior
 Nature of team members
 Reward and Recognition
 Working conditions
 Wages and salaries
 Welfare facilities
 Personnel policies
 Nature of Job
 Measurement of employees morale
•Observation
•Informal Monitoring of Morale
•Spying
•Feedback from clients
•Morale surveys
•Periodic Interview
•Exit interviews
•Morale indicators – Absenteeism
rate , Employee turnover rate,
Accidents Rate, Wastages,
Grievances
•Suggestion box
•Morale committee
 Emotional Quotient
 The concept of EQ was proposed and
explained by Waye Payne in 1985.
 In 1995, psychologist Daniel Goleman
popularised this term in his book
“Emotional Intelligence : Why EQ can
matter more than IQ.
 Goleman’s model on EI outlines four
main elements:
1. Self-awareness
2. Self-Management
3. Social awareness
4. Relationship Management
 It involves the degree of
self confidence, risk
taking ability, resilience
to overcome stress and
handle tough situations.
 It helps to control hatred,
anger, excessive ego,
emotional outbursts etc.
Benefits of EQ
1. Emotionally Intelligent persons perform better under
difficult and stressful tasks.
2. EQ combines with IQ helps to take effective decisions and
actions.
3. Managers having EQ are in a better positions to develop
productive team spirit in the organisation.
4. Managers with high EQ show care and concern towards the
subordinates which in turn helps to develop good superior
and subordinate relationship.
5. Spreading positive emotions among a group can enhance
group cooperation and reduce conflicts.
Spiritual Quotient
 It is describe as a measure that
looks at a person’s spiritual
intelligence. It consists of
honesty, integrity and ethical
values of the employees.
 Spirituality brings depth to an
individual’s approach and
understanding.
 The main elements of SQ are
1) Responsibility
2) Humility
3) Happiness
 Benefits of SQ
1) Helps a individual to live an
energetic and balanced life
2) It helps an individual to manage
one’s emotions
3) It builds capacity to face
sufferings and life’s ups and
downs.
4) It makes an individual reluctant
to cause unnecessary harm to
others.
5) It helps to control anger,
disappointment, irritation, fear
and sorrow.
SQ – Spiritual quotient
 is going beyond your cognitive and emotional skills. It is
acknowledging your mortality and thinking of what you
could offer humanity. It is living in humility; bearing in mind
that you are just a tiny compared to the vastness of the
universe. A robust understanding of SQ motivates people to
balance their work commitments, time with family and inner
growth
Factors influencing EQ and SQ
1) Nature of an individual
2) Nature and Character of Superior
3) Training
4) Socio – cultural environment
5) Yoga and Meditation
6) Organisational Environment
7) Age and experience
8) Traumatic Situations
Employee Grievance
 Definition “Grievance is a  Procedure for grievance
written complaint filed by an redressal:
employee and claiming unfair
treatment” 1) Immediate supervisor
 Causes of Employee Grievance :
2) Senior Manager
1) Wages and salaries
2) Working conditions 3) Grievance committee
3) Poor welfare facilities
4) Appeal for Revision
4) Personal Policies
5) Nature of supervisor 5) Voluntary Arbitration
6) Nature of work
6) Final Decision
7) Disciplinary action
 Employees welfare measures
I) Statutory Welfare Schemes II) Non Statutory welfare
1) Drinking water schemes
2) Facilitates for sitting 1) Medical check ups
3) First Aid 2) Flexi Time
4) Latrines and Urinals 3) Counselling
5) Canteen 4) POSH policy
6) Spittoons 5) Mediclaim Insurance
scheme
7) Lighting and ventilations
6) Education facilities
8) Washbasins
7) Housing Facilities
9) Changing rooms
8) Transportation facilities
10) Rest rooms
9) Recreation facilities
11) Maternity leave
12) Crèche facility
Employees health and safety measures
 Fire Protection
 Protective clothing and safety
gears
 Placement of machines
 Maintenance of safety devices
and machines
 Lighting and ventilation
 Safety training
 Safety policies and programmes
 Safety committee
 Safety Audit
 Health and recreation facilities