CHAPTER FOUR: LEADERSHIP AND CHANGE

MANAGEMENT

1
 4.1. LEADERSHIP
What’s Leadership?
There are almost as many definitions of
leadership as there are many theories.
Some Of The Definitions Are:
1) Leadership is the process whereby one
individual influences other group members
towards the attainment of defined group, or
organizational goals‟ – Barron and Greenberg,
1990.
2) Leadership is “the ability of a superior to
induce subordinates to work with confidence
and zeal.” – Koontz and O’Donnell 2
Cont…………..

Therefore, from the above and other definitions, the

following concepts can be extracted.
Leadership is
the process of influencing people

providing an environment for them to achieve team or

organizational objectives.

Interpersonal influence exercised in a particular

situation through communication to stimulate people to
strive willingly towards the attainment of common
objectives. 3
Cont…..
Generally, it answers the question

“How can I interact with people to improve

their performance, give them just enough
stretch to keep them motivated and help
them realise their potential?”

4
4.1.1.FEATURES OF LEADERSHIP

SITUATIONAL

FOLLOWERS: The essence of leadership is follower

ship

UNITY OF INTERESTS

CONTINUOUS PROCESS

INTERPERSONAL INFLUENCE 5
WHO IS A LEADER?
A person who influences individuals and groups in
an organization, helps them in the establishment of
goals, and guides them toward achievement of those
goals, thereby allowing them to be effective.

influences the followers in such a way that both the

organization and the individuals obtain satisfaction.
Effective leaders help groups of people define their
goals and find ways to achieve them.

They use power and persuasion to ensure that

followers have the motivation and role clarity to
achieve specified goal
6
LEADERS EFFECTIVENESS:
Leader is effective when their followers achieve
their goals, can function well together, and can
adapt to the changing demands from external
forces.

S/he is effective if s/he is helpful for group

members in attaining their goals in a productive
and efficient manner.
Leaders are Effective When:
The group achieves its goals
Internal processes are smooth
The group can adapt to external forces
7
Cont……

Leader’s Function In Shaping

Organizational Culture

LEADER

Role Reward Hiring Structure

Model System Decisions & Strategy

CULTURE
8
 Cont……..
 According to a leadership study of 25,000
employees, 69 percent of employee job satisfaction
stems from the leadership skills of the employees’
manager. It is also learnt that the major reason for
employee failure is poor leadership.

 Thus, leadership is probably the most important

characteristic people need to have to be effective on
the job. After all, we should avoid the idea that
leaders are people in certain positions. Anyone may
be a leader at an appropriate time and place.
9
Generally, the following are traits of effective leaders

Locus of
Integrity
Control

High energy 9 Flexibility

Traits of
Dominance
Effective Sensitivity
to others
Leaders
Self-confident Intelligence
Stability

2-6

10
cont.....

A. Dominance:
Successful leaders want to be managers and to take
charge. However, they are not overly bossy, nor do
they use a bullying/ harassment/ style.

To reach full leadership potential, you’ve got to want

to be a leader, work to develop your skills, and enjoy it.

B. High Energy:
Leaders have high energy with a positive drive to work
hard to achieve goals.
They are optimistic and have high tolerance for
frustration as they strive to overcome obstacles through
persistence. 11
C. Self-Confidence: Self-confidence influences
individual goals, efforts, and task persistence.
D Locus of Control: Locus of Control is on a
continuum between external and internal belief in
control over one’s destiny. Effective leaders have
internal locus of control.
E. Stability: Being too emotional can cause
problems. Stable leaders are emotionally in
control of themselves.
F. Integrity: This Refers to behavior that is honest
and ethical, making a person trustworthy.
G. Intelligence :refers to cognitive ability to think
critically, to solve problems, and to make decisions.

12
H. Emotional Intelligence:
EI is the ability to work well with people, and EI is essential to
healthy relationships. EI increases job performance.

i. Self-awareness
ii. Social awareness

iii. Self-management

iv. Relationship management

I.Flexibility
J. Sensitivity to Others 13
 THE EIGHT HABITS OF HIGHLY EFFECTIVE PEOPLE (by Stephen Covey)

1. They take initiative. (“Be Proactive”)

2. They focus on goals. (“Begin with the End in Mind”)
3. They set priorities. (“Put First Things First”)
4. They only win when others win. (“Think Win/Win”)
5. They communicate. (“Seek First to Understand, Then
to Be Understood”)
6. They cooperate. (“Synergize”)
7. They reflect on and repair their deficiencies.
(“Sharpen the Saw”)
8. They find their voice and help others find theirs.

14
 3. They Set Priorities. (“Put First Things First”)

 Stephen Covey in his book, First

Things First, shares the following
story experienced by one of his
associates:

I attended a seminar once where the

instructor was lecturing on time. At
one point, he said, "Okay, time for a
quiz." He reached under the table and
pulled out a wide-mouthed gallon jar.
He set it on the table next to a platter
with some fist-sized rocks on it. "How
many of these rocks do you think we
can get in the jar?" he asked .
43

15
Cont….

After we made our guess, he

said, "Okay. Let's find out." He set
one rock in the jar . . . then
another . . . then another. I don't
remember how many he got in,
but he got the jar full. Then he
asked, "Is this jar full?" Everyone
looked at the rocks and said,
"Yes."

16
Cont……

Then he said, "Ahhh" He

reached under the table
and pulled out a bucket of
gravel. Then he dumped
some gravel in and shook
the jar and the gravel went
in all the little spaces left by
the big rocks. Then he
grinned and said once
more, "Is the jar full?"

17
Cont…

By this time the class was

on to him. "Probably not,"
we said. "Good!" he
replied. He reached under
the table and brought out a
bucket of sand. He started
dumping the sand in and it
went into all of the little
spaces left by the rocks and
the gravel. Once more he
looked and said, "Is this jar
full?" "No!" we roared.

18
Cont…..

He said, "Good!" and he

grabbed a pitcher of water
and began to pour it in. He
got something like a quart
of water in that jar. Then he
said, " Well, what's the
point?" Somebody said,
"Well, there are gaps, and if
you work really hard you
can always fit some more
things into your life."

19
Cont……

"No," he said, "that's

not really the point.
The point is this:

Put the
Big Rocks
in First
20
 4.2. LEADERSHIP
THEORIES AND STYLES

21
Factors Affecting the Choice of Leadership Styles and
Theories
The choice of particular type
of style of leadership and the
effectiveness of leadership
depends on a number of
factors. Some of the most
important factors include:
The leader’s personality
The nature of the task and the
type of activities involved
The type of people involved
in the task
The expectation of the group
The relationship between the
leader and the other members
of the group
The nature of the
organization
Level of interaction and
cooperation among the
members of the group
Commonality of objectives
and goals
The level at which decisions
are made
The larger environment
which the organization or
group operates
22
4.3 Theories in Leadership

The Evolution of
Leadership Research
1900: Traits approaches

1950: Behavioral theories

1990s
1960: Contingency theories

23
Here Under Are The Various Leadership Theories .

A. GREAT MAN THEORIES

Assumption
Based on the belief that leaders are exceptional
people, born Leaders and not made with innate
qualities, destined to lead.

The term “Great Man” was used because, at the

time, leadership was thought of primarily as a
male quality, especially in terms of military
leadership.

24
 B. TRAIT THEORY

 The Ideology of this theory is that effective leaders are born,

not made……What can you say on this?

It tries to seek personality, social, physical, or intellectual

traits that differentiate leaders from non-leaders.

 As it was found out through research, the six traits on

which leaders tend to differ from non-leaders are:-
ambition and energy
the desire to lead
honesty and integrity
self confidence
intelligence and
job relevant knowledge
25
 LIMITATIONS OF TRAIT THEORY

There are no universal traits that predict

leadership in all situations.

There is no clear evidence separating cause from

effect, that is to whether the leader’s self
confidence caused success or success as a leader
builds self confidence.

Generally, it fails to clarify the relative importance

of various traits.

It ignores situational factors. 26

 C. BEHAVIORAL THEORY OF LEADERSHIP

 These concentrate on what leaders actually do

rather than on their qualities
IN BEHAVIORAL THEORIES
There are behavioral determinants of
Leadership which can be learned.
People can be trained to be effective leaders.
Knowledge and Experience are basics for effective
leadership
Leaders are made

27
Cont……
If trait research had been successful, it would have provided
a basis for selecting the “right” person to assume formal
position in groups and organizations requiring leadership.

In contrast, if behavioral studier were to turn up critical

behavioral determinants of leadership, we could train
people to be leaders.

If training worked, we could have an infinite supply of

effective leaders.

The difference between trait and behavioral theories, in

terms of application, lies in their underlying
assumptions. 28
Cont…..
If trait theories is valid, then leadership is
basically inborn. You either have it or you do not.

On the other hand, if there were specific

behaviors that identify leaders, then we could
teach leadership-we could design programs that
implanted these behavioral patterns in
individuals who desired to be effective leaders.

29
Cont..

Under this theory, leaders were found to be

either task oriented or people (relationship
oriented).

 The following are the various research results on

this theory.

RESEARCH AT OHIO STATE UNIVERSITY

This research has been conducted in late 1940’s
These researchers sought to identify independent
dimensions of leader behavior.

The two dimensions of leadership behaviors as 30

 I. Initiating structure
Refers to the extent to which a leader is likely to
define and structure his or her role and those of
subordinates in the search for goal attainment

assigning group member to particular tasks,

expects workers to maintain definite standards of
performance and” emphasis is the meeting of
deadlines
II. CONSIDERATION
is described as the extent to which a person
is likely to have job relationships that are
characterized by mutual trust, respect of
subordinates’ ideas and regard for their feelings. 31
 L,H
High H, H
Initiative
structure
L, L H, L
Low consideration High
The researchers of these two dimensions found
that leaders high in initiating structure and
consideration (H, H leaders) tend to achieve high
employee performance and satisfaction more
frequently than those who rated low on either
consideration, initiating structure or both. 32
University of Michigan Studies (Employee Oriented and
Production (Task) Oriented)
Leadership studies undertaken at the University of
Michigan’s survey research center at about the same
time as those being done at Ohio State, Proposed
two leadership behaviors: -

 employee oriented and

they took a personal interest in the needs of their
subordinates and accepted individual differences among
members.

 production (task) oriented.

Their main concern was in accomplishing their
group’s tasks, and the group members were a means
to that end. 33
CONT……
The conclusion arrived by the Michigan
researchers strongly favored the leaders who were
employee oriented in their behavior.

Employee oriented leaders were associated with

higher group productivity and higher job
satisfaction. Production oriented leaders tended to
be associated with low group productivity and
low job satisfaction.

34
3. The Managerial Grid
Developed by R. Blake and J. Mouton
It measures a manager’s concern for people and
concern for production and then plots the results
on the nine- position grid that places concern for
people on the vertical axis and concern for
production on the horizontal axis, as shown in the
figure below.

35
Cont……
1,9 9,9

5,5

1,1 9,1

1 2 3 4 5 6 7 8 9

36
 Cont…

 As the above figure shows, each type of concern is

ranked on a scale from 1 to 9 resulting in five major
contribution of leader behavior.
(1, 1) Minimal concern for production and people.
(9,1) Autocratic style – high concern for production
and low concern for People.
(1, 9) Laissez-faire – low concern for production and
high concern for people.
(5, 5) Moderate level of concern for both people and
production. This style balances needs through
compromise, resulting in adequate performance.
(9, 9) high levels of concern for people and
production. 37
 Leadership Grid
High
1,9 9,9
Country Club Team Leader
C
O
N
C
E
R
N
- 5,5
P
Middle of the Road
E
O
P
L Impoverished Authority-Compliance
E

Low 1,1 9,1

1 CONCERN for PRODUCTION 9
Low High
3-7
 D. CONTINGENCY LEADERSHIP THEORY

 situation, the people, the task, the organization,

and other environmental variables.

 The failure to obtain consistent results led various

researchers to focus on situational

 leadership effectiveness was dependent up on the

situation and another to be able to isolate those
situational conditions.

 The following are the classifications of this theory.

39
 1. FIEDLER’S CONTINGENCY THEORY OF LEADERSHIP

 Effectiveness depends on leader’s behavioral style

and the situation.

 Leader style is measured by the LPC (least

preferred co-worker) scale

 Situational favorableness is assessed by the

following three things:

Leader-member
Task structure Position power
relations

40
Cont…
LEADER- MEMBER RELATIONSHIP: - The
degree to which a leader is respected, accepted,
and had friendly interpersonal relationships with
followers. If they like, trust and have confidence
in one another, the situation is more favorable.

TASK STRUCTURE: - the extent to which job

assignments are defined/structured/
procedurized from the leader’s vantage point.
The situation is more favorable with high task
structure. When task structure is low the group
will need more guidance.
41
Cont…
POSITION POWER: - the degree of influence a
leader has over power variables such as hiring,
discipline, promotion, and salary increases. The
higher the leader’s position, the more favorable
the situation.

42
2. PATH GOAL THEORY

The term path-goal is derived from the belief that

effective leaders clarify the path to help their
followers get from where they are to the
achievement of their work goals and make the
journey along the path easier by reducing road
backs and pitfalls.
making valued outcomes available,
assisting followers in attaining these out
comes by providing the necessary
direction.
show employees the path towards the
desired goal.
43
 Cont….
A leader’s behavior is motivational to the degree
it:
Makes subordinates need satisfaction
contingent on effective performance, and
Provides the coaching, guidance, support
and rewards that are necessary for effective
performance.
Path-goal theory proposes two classes of situational
or contingency variables that moderate the
leadership behavior- outcome relationship (internal
and external to the employee)

44
E. CHARISMATIC LEADERSHIP

Charisma is a form of interpersonal attraction

whereby followers develop a respect for and trust in
the charismatic individual.

Charismatic leadership therefore extends beyond

behaviors to personal traits that provide referent
power over followers.
when a leader uses his/her personal abilities and
talents in order to have profound and
extraordinary impacts or effects on followers.

Some say charismatic leaders are born, and others

say they are taught. 45
Cont……
1. The leaders have convincing vision or sense of
purpose
2. The leaders could communicate that vision in
clear terms that their followers could readily
identify with
3. The leaders demonstrate consistency and
focus in the pursuit of their vision, and
4. The leaders know their own strengths and
capitalize on them.

Research studies suggest that charismatic

leadership produces high performance and
satisfaction among followers. 46
F. TRANSACTIONAL LEADERSHIP

emphasizes on the importance of the relationship

between leader and followers.

focusing on the mutual benefits derived from a

form of ‘contract ‘through which the leader
delivers such things as rewards or recognition in
return for the commitment or loyalty of the
followers.
Transactional leadership is 'managing'– helping
organizations achieve their current objectives
more efficiently, such as linking job performance
to valued rewards and ensuring that employees
have resources needed to get the job done. 47
G. TRANSFORMATIONAL LEADERSHIP
an approach to leadership which seeks to bring about
success and sustainable growth within groups through
a change within the consciousness of participants.

Transformational leadership is related to charismatic

leadership in that charisma is often required to
bring about the kind of change those results from
transformation leadership.

Transformational leadership is radically changing

followers‟ ways of thinking so that they unite in
carrying out a common purpose, raise their
aspirations, and do more than they had originally
48
 Transformational leadership is about „leading‟- changing the
organization’s strategies and culture so that they have a better fit
with the surrounding environment.

TRANSFORMATIONAL LEADERS HAVE:

1. Staff Who......
have higher levels of satisfaction, motivation, and performance
have lower levels of stress & burnout
2. Teams that….
are more innovative, collaborative and effective
3. Organisations which…
respond more quickly and productively to change
are more effective
have healthier, more humane cultures
49
2. BASIC LEADERSHIP STYLES
A manager’s leadership style is composed of three parts:
1. His/her areas of emphasis (orientation) in the work
environment
2. His/her decision
3. How the manager chooses to motivate subordinates
Concern to leadership style is very important because
style also determine the level of success and effectiveness.

Generally, the leadership styles can assume the

characteristics of the following continuum nature of
leadership.

50
Cont….

51
1. S1: Directing/Telling Leaders define the roles and tasks of the '
follower', and supervise them closely. Decisions are made by the
leader and announced, so communication is largely one-way.

2. S2: Coaching/Selling Leaders still define roles and tasks, but

seek ideas and suggestions from the follower. Decisions remain
the leader's prerogative, but communication is much more
two-way.

3. S3: Supporting/Participating Leaders pass day-to-day decisions,

such as task allocation and processes, to the follower. The leader
facilitates and takes part in decisions, but control is with the
follower.

4. S4: Delegating Leaders are still involved in decisions and

problem-solving, but control is with the follower. The follower
52
decides when and how the leader will be involved.
 Based on the above points, there are three types of
leadership styles:
Autocratic leadership
Democratic leadership
Laissez-faire leadership

 Autocratic style is a style of leadership in which the

leader uses strong, directive, and controlling actions
to enforce the rules, regulations, activities, and
relationships in the organizations.

 The Autocratic leader/manager uses Theory X

assumption as his philosophical base for leadership.
53
 Problems Of This Style
Creates frustration/low morale
Kills initiative and creativity
Develops conflicts and hostility
Decreases/discourages team work
Employees ideas will not be used /subordinates may have
better ideas than the superior about a particular problem.
Subordinates would not be motivated

THIS STYLE IS APPROPRIATE WHEN

 Employees consistently misuse authority
 Employees are new and with unfamiliar jobs
 organization’s rules are violated
54
2. DEMOCRATIC OR PARTICIPATIVE LEADERSHIP

 Recent thinking gives more emphases to group-centered or

democratic style of leadership.

 Employees‟ participation in management operation creates

employees‟ cooperation and sense of responsibility.

 A democratic manager delegates authority to the staff, giving

them responsibility to complete the task.

 Advantages For Democratic Leadership Include:

 Higher motivation and improved morale
 increased cooperation with the management
 improved job performance
 Reduction of grievances
 Reduction of absenteeism and employee turnover 55
 3. LAISSEZ-FAIRE (FREE-REIN) LEADERSHIP
gives staff complete freedom to complete the task.

It works for teams in which the individuals are very

experienced and skilled self-starters.

the leader’s role is to serve as a logistics specialist or

representative of the group to outside groups.

It permits self-starters to do things as they see fit

without leader

56
57
Leadership vs.. Management
Leadership & management are distinct, yet
complementary systems of action

Effective leadership
Effective management
produces useful change
controls complexity

Effective leadership + good management =

healthy organizations
58
Management is efficiency in climbing the
ladder whereas leadership determines
whether the ladder is leaning against the
right wall.

59
Cont….
 Management is about coping with complexity

 Leadership, in contrast, is about coping with

change.

 After all, a manager can have leadership position

without being a true leader because of formal
authority. But there are managers who are not
leaders because they do not have the ability to
influence others.

60
 LEADERSHIP – SOFT SKILLS
 Communications
 Motivation
 Stress Management
 Team Building
 Change Management

MANAGEMENT – HARD SKILLS

 Scheduling
 Staffing
 Activity Analysis
 Project Controls
To sum up, both strong leadership and strong management are
necessary for optimum organizational effectiveness. 61
 4.2. Types of leadership powers

Why do people accept the

influence of a leader? Having power can increase
the effectiveness of a
One major reason is that manager by enabling the
leaders have power. Power manager to influence people
is the capacity to affect the to what is wanted.
behavior of others, in other• Leaders in organizations
words, power is the ability of typically rely on some or all
individuals or groups to of five major types of power:
induce or influence the  legitimate,
beliefs or actions of other  reward,
persons or groups.  coercive,
 expert and
 referent
62
a. Legitimate power/position power
 It refers to the power a leader possesses as a result of
occupying a particular position or role in the organization, i.e.
it is a power that stems from a position’s placement in the
managerial hierarchy.

 It corresponds to authority
 Legitimate power exists when a subordinate or the influenced
acknowledges that the influencer has a “right” or is lawfully
entitled to influence within certain bounds.
 It is related to the position, rather than to the person
 Thus, the higher a manager is in the organizational hierarchy,
the greater is the “perceived power” thought by subordinates.
b. Reward Power
• It refers to the leader's capacity to give or withhold rewards for
followers.
• It is based on the capacity to control and provide valued
rewards to others.
• Rewards that may be under the control of individual manager
include:
 salary increases /pay raises,
 bonus,
 interesting projects,
 promotion recommendations, a better office, support for training
programs,
 assignments with high responsibility in the organization,
 recognition,
 positive feedback etc.
c. Coercive Power
• It is a power based on fear
• It is the negative side of reward power; it is opposite of reward power
• Coercive power is the ability to coerce or punish the influencees/followers
when they do not engage in desired behaviors.
• Forms of coercion or punishment include:
 criticisms,
 terminations,
 reprimand,
 suspension,
 warning letters that go into an individual’s personnel file,
 negative performance appraisals,
 demotions and
 withheld pay raises;
• Coercive power is usually used to maintain a minimum standard
performance or conformity among subordinates.
• The greater the freedom to punish others, the greater a manager’s coercive
power.
d. Expert Power
• It refers to power that a leader possesses as a result of his or
her knowledge and expertise regarding the tasks to be
performed by subordinates.
• It is power based on the possession of:
 expertise,
 knowledge,
 skill or
 information
• To the extent that a leader possesses expertise and
information that is needed or desired by others, the leader has
expert power.
• Physicians, lawyers, and university professors may have
considerable influence on others because they are respected
for their special knowledge
e. Referent Power / Charismatic Power
• It is power that results from being admired, personally identified with
or liked by others.
• When we admire people, want to be like them, or feel friendship
toward them, we more willingly follow their directions and exhibit
loyalty toward them.
• For example,
 a Movie Star,
 a Great Athlete,
 a Great Football Player,
 a Musician or
 a Military Hero might possess considerable referent power
• The more that a leader is able to cultivate the liking, identification, and
admiration of others, the greater the referent power
• The more power a leader has at his/her disposal, the more likely that
s/he will be successful in influencing followers to do the work assigned
to them except coercive power.
4.3. Motivation

 What do we mean by motivation?

 What factors make a person behave things

persistently?

 What is reward?

 How many reward types do you know so far?

68
Cont….
The Concept of Motivation
 The term motivation derived from the Latin word
‘movere ‘ meaning “to move.”

 In the present context, motivation represents “those

psychological processes that cause arousal, direction,
and persistence of voluntary actions that are goal
oriented.

 Managers need to understand these psychological

processes if they are to successfully guide employees
toward accomplishing organizational objectives. 69
 Cont….
 As managers analyze their workforces, they can always
see some people who outperform others of equal skill.

 A closer look might reveal instances in which a person

with outstanding talents is consistently outperformed by
someone having lesser talents. Why?

 These latter employees appear willing to exert more

effort, to try harder, to accomplish their goals, often
these hard workers are described by their bosses as
“motivated employees.”

70
Motivators

 Motivators are things, which induce an individual to perform.

 While motivation reflects wants, motivators are the identified rewards, or
incentives that sharpen the derive to satisfy these wants.
 A motivator is something that influences an individual’s behavior.

The Motivation Cycle

 The starting point in this cycle is a need or a deficiency or a state of felt
deprivation an individual experiences at a particular time.

 This deficiency causes tension (physiological or psychological

 imbalance), which will be modified by one’s culture and personality to cause
certain wants leading /motivating the individual to some kind of goal directed
behavior.
 This leads to satisfaction and one cycle of motivation will be completed.
71
 The Motivation Process

1. Need
Deficiency

3. Need 2. Goal
directed
satisfaction behaviour
From this we can understand that deficiency triggers a
drive for need satisfaction, which causes an individual to
take a certain course of action that will alleviate a need
and reduce a drive.

The need for food for example will result in hunger and
hunger will drive or motivate the individual to take action
(eating food), which will achieve the goal.

This goal attainment will restore the physiological or

psychological balance and reduce or cutoff the drive for
food.
Motivation Vs Satisfaction
• Motivation refers to the drive and effort to satisfy a want or a
goal.
• Satisfaction refers to the happiness experienced when a want is
satisfied.
• In other words, motivation implies a drive toward an outcome,
and satisfaction is the outcome already experienced.

Motivation and Performance

• All too often, motivation and performance are assumed to be
one and the same.
• This faulty assumption can lead to poor managerial decisions.
 The following formula for performance helps put
motivation into proper perspective:

Performance = Ability x Motivation x

Environmental conditions.

 Thus, we see motivation is a necessary but

insufficient contributor to job performance.

 The multiplication sign is used to emphasize how

a weakness in one factor can negate the other.
 The above relationship between performance and
motivation clearly shows us that managers should hire
individuals who have the ability to do what is required.

 After that, the management challenge is providing

environmental conditions that foster and support
individual motivation to work toward organizational
goals.

 Keeping other variables constant, motivation and

performance have neither positive nor negative
relationship. As motivation increases, job performance
increases, reaches its maximum and the decreases.
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Theories of Motivation
a. Carrot and Stick Approach
This metaphor relates the use of rewards and penalties in order to
induce desired human behavior.

It comes from the old story that to make a donkey move one must put
a carrot in front of it and if it does not move beat it with stick from
behind.

Despite all the researches and theories of motivation that have come to
the front in recent years, reward and punishment are still
recognized/considered by strong motivators. ????

Carrot - money in the form of pay or bonuses.

Stick – fear such as fear of loss of job, loss of income, reduction of

bonuses demotion or some other penalty.
b. Money as a Motivator
• Even if under the carrot and stick approach money as a
sole motivator has been criticized, it is used as a
motivator (motivating factor) but not the only one.
Money can be used as a motivator under the following
conditions:

 For people who have low-level standards of living and who

badly need it for their life
 When the amount is so significant that the organization uses it
for competitive purposes.
 When the payment is so differentiated that even at equal position
discriminatory payment is made for people with different levels
of performance.
c. Maslow’s Need Hierarchy
• It is one of the motivation theories developed by
psychologist Abraham Maslow.
• Maslow proposed that:
motivation is a function of needs,
human needs are arranged hierarchically
• The hierarchy of needs is based on four premises:
 Only an unsatisfied need can influence behavior; a satisfied
need is not a motivator. What motivates a person is what s/he
does not have but not what s/he has.

 A person’s needs are arranged in a priority order of importance.

Thus, the priorities (hierarchy) go from the most basic needs to
the most complex.

 As the person’s needs are met on one level, the person

advances to the next level of needs. S/he will focus on the first
level need until it is minimally satisfied before moving to the
next level.

 If satisfaction is not maintained for a once-satisfied need, it will

become a priority need again.
d. Herzberg’s Two Factor Theory
• Herzberg developed a theory known as the two-factor
theory of motivation.

• The initial framework for the two-factor was derived from

interviews with accountants and engineers

• The accountants and engineers were asked to provide

interviewers with examples of time they felt exceptionally
good or exceptionally bad about their jobs or job related
issues that made them feel good or bad.
• According to the analysis, although an unpleasant work
environment might be a reason given for job dissatisfaction,
a pleasant work environment is rarely cited as a reason for
job satisfaction.

• This suggested that job satisfaction and job dissatisfaction

are not simple opposites.

• Traditionally, managers viewed job satisfaction and job

dissatisfaction as opposite ends.

• In contrast, Herzberg's findings suggested the opposite of

satisfaction is not dissatisfaction, but rather ‘no satisfaction’
• Herzberg labeled the factors that produced job
satisfaction as motivators.

• His analysis indicated these factors are directly

related to job content.

• The absence of motivational factors may not result

in dissatisfaction, but their presence is likely to
motivate employees to excel.

• When motivators are absent, workers are neutral

toward work, but when motivators are present,
workers are highly motivated and satisfied.
• Herzberg labeled the factors that led to job
dissatisfaction as hygienes and found they are related
more to the work setting, or job context, than to job
content.

• These factors do not necessarily motivate employees to

excel, but their absence may be a potential source of
dissatisfaction, low morale, and high turnover.

• When hygiene factors are poor, work is dissatisfying.

• However, good hygiene factors simply remove the

dissatisfaction; they do not by themselves cause people
to become highly satisfied and motivated in their work.84
 Herzberg's Motivators and Hygiene's
Motivators Leading to Job Hygienes Leading to
satisfaction Dissatisfaction

• Policies and
• Achievement
administration
• Recognition • Supervision

• Work it self • Relations with peers

• Responsibility • Working Condition

• Advancement • Pay

• Personal growth • Job Security

• Thus, to the degree that motivators are present in a job,
satisfaction will occur, when absent, motivators do not lead to
dissatisfaction.

• And, to the degree that hygienes are absent from a job,

dissatisfaction will occur, when present hygienes prevent
dissatisfaction but do not lead to satisfaction.
Theory X and Theory Y Assumptions about People
• A manager’s philosophy about work and the people who
perform the work will influence his/her approach to
leadership.

• Douglas McGregor has hypothesized two sets of assumptions

about people that serve as a philosophical base for leadership
action; these are :
 Theory X and
 Theory Y Assumptions

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a. Theory-X
• Theory X – pessimistic and negative: A manager basing an
operating philosophy on Theory X would:
 Impose a directive leadership style on the individual or
work group s/he is supervising.
 Coercion, negative motivation, and refusal to allow
employee participate in decision-making would probably
be the actions of the manager.

• Why? Because the manager assumes:

• The average human being has an inherent dislike of work and
will avoid it if s/he can; workers are lazy

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• Because of this dislike, most people must be coerced,
controlled, directed, and threatened with punishment to get
them to put forth adequate effort toward the achievement of
organizational objectives.
• The average human being:
 prefers to be directed,
 wishes to avoid responsibility,
 has relatively little ambition and
 wants security above all.

89
b. Theory -Y
Theory Y- adopts a developmental approach/
modern + positive set of assumptions

• A manager with Theory Y assumption will

prepare him/herself to work with people as
individuals, to involve people in the process of
decision-making, to openly encourage people to
seek responsibility and to work with people
achieve their goals.

90
• Why? Because the manager assumes:
 The average human being does not inherently dislike work; the
physical and mental effort involved is as natural as play or rest.
 External control and threat of punishment are not the only
means for bringing about effort toward organizational
objectives. A person will exercise self-direction and self control
in the service of objectives to which s/he is committed.
 People generally become committed to organizational objectives
if they are rewarded for doing so.
 The average human being learns, under proper conditions, not
only to accept, but also they seek responsibility.
 Many people have a relatively high degree of imagination,
ingenuity, and creativity in the solution of organizational
problems.
 The average person’s intellectual potential is only partially
utilized under the conditions of modern industrial life. 91
• The assumptions in Theory -Y have remarkably different
implications for managers than do those of Theory X.

• Instead of blaming poor performance on basic human nature,

Theory Y places squarely on management the responsibility
for tapping the reservoir of creativity, hard work, and
imagination.
• The worker’s performance is limited only by management’s
ability to use human resources effectively.

• Theory Y also has implications for decision-making.

• Because it recognizes worker’s intellectual potential, this
philosophy suggests that organizational goals are best
achieved if workers have voice in decisions.
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