1. The 3rd core management function: Leading

2. What is LEADING? Motivate subordinates(lower positions)
Help resolve group conflicts
Influence individuals or teams as they work
Select the most effective communication channel
Deal with employee behavior issues

3. Leading Process
Leadership
Motivation
Performance

4. Managers & Leaders: Not Always the Same
Management is about coping with complexity
Leadership is about coping with change

5. 5 Sources of Leader Power
Legitimate Power: influencing behavior because of one’s formal position
Reward Power: influencing behavior by promising or giving rewards
Coercive Power: influencing behavior by threatening or giving punishment
Expert Power: influencing behavior because of one’s expertise
Referent Power: influencing behavior because of one’s personal attraction

6. What is MOTIVATION?
The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal
The psychological processes that arouse and direct goal-directed behavior
Motivation Model: People have certain needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original need

7. Why is motivation important?
You want to motivate people to…
Join your organization
Stay with your organization
Show up for work at your organization: no absenteeism or lateness
Perform better for your organization: high productivity
Do extra for your organization: not only their duty but also be organizational “good citizens”

8. Motivation Theories McClelland’s Three-Needs Theory
Maslow’s Hierarchy of Needs
McGregor’s Theory X and Theory Y
Herzberg’s Two-Factor Theory
McClelland’s Three-Needs Theory

9. I. Maslow’s Hierarchy of Needs: 5 Levels
Higher- order needs = internal
Lower- order needs = external

10. 5 Levels of Needs
Physiological Needs: the most basic human physical needs, in which one is concerned with having food, clothing, shelter, and comfort and with self-preservation
Safety Needs: concern with physical safety and emotional security, so that a person is concerned with avoiding violence and threats
Belongingness Needs: once basic needs and security are taken care of, people look for love, friendship, and affection
Esteem Needs: after they meet their social needs, people focus on such matters as self-respect, status, reputation, recognition, and self-confidence
Self-Actualization Needs: it is self-fulfillment—the need to develop one’s fullest potential, to become the best one is capable of being

11. Organization fulfills employee’s need by…
Offer training, creativity, promotions, employee control over jobs
Offer recognition, status, challenges, merit pay, employee participation in making decisions
Offer interaction with others, participation in workgroup, good relations with supervisors
Offer safe working conditions, job security, health and retirement benefits
Offer adequate ventilation, heat, water, base pay

12. Lower-order Needs Physiological Needs
Physiological needs are the very basic needs such as air, water, food, sleep, sex, etc. When these are not satisfied we may feel sickness, irritation, pain, discomfort, etc. These feelings motivate us to alleviate them as soon as possible to establish homeostasis. Once they are alleviated, we may think about other things.
Safety Needs
Safety needs have to do with establishing stability and consistency in a chaotic world. These needs are mostly psychological in nature. We need the security of a home and family. However, if a family is dysfunctional, family members cannot move to the next level because they have safety concerns. Love and belongingness have to wait until they are no longer in fear. Many in our society cry out for law and order because they do not feel safe enough to go for a walk in their neighborhood. Unfortunately many people, particularly those in the inner cities, are stuck at this level.
Source:

13. Higher-order Needs Need to Belong
Love and sense of belonging are next on the ladder. Humans have a desire to belong to groups: clubs, work groups, religious groups, family, gangs, etc. We need to feel loved (non- sexual) by others, to be accepted by others. Performers appreciate applause. We need to be needed. We see numerous examples in advertising where our need for group belonging is tied to consumption of a particular product.
Esteem Needs
There are two types of esteem needs. First is self-esteem which results from competence or mastery of a task. Second, there's the attention and recognition that comes from others. This is similar to the sense of belonging level, however, wanting admiration has to do with the need for power. People who have all of their lower needs satisfied, often drive very expensive cars because doing so raises their level of esteem.
Self-Actualization
The need for self-actualizations is "the desire to become more and more what one is, to become everything that one is capable of becoming." People who have everything can maximize their potential. They can seek knowledge, peace, aesthetic experiences, self- fulfillment, oneness with God etc. It is usually middle-class to upper-class students who take up environmental causes, go off to a monastery, etc.
Source:

14. II. McGregor’s Theory X and Theory Y
It should guide management practice which would maximize employee motivation
Theory X: negative view of people such as workers have little ambition, dislike work, want to avoid responsibility, need to be closely controlled to work effectively
Theory Y: positive view of people such as workers enjoy work, seek out and accept responsibility, exercise self-direction

15. III. Herzberg’s Two-Factor Theory: From Dissatisfying Factors to Satisfying Factors
Also called “motivation-hygiene theory”
This theory proposed that work satisfaction and dissatisfaction arise from 2 different factors:
motivating factors (motivators)— “What will make my people satisfied?”
The higher-level needs or simply motivators are factors associated with job satisfaction—such as achievement, recognition, responsibility, and advancement—all of which affect the job content or the rewards of work performance
hygiene factors—“Why are my people dissatisfied?”
The lower-level needs are factors associated with job dissatisfaction—such as salary, working conditions, interpersonal relationships, and company policy—all of which affect the job context in which people work

16. Satisfaction vs. Dissatisfaction

17. IV. McClelland’s Three-Needs Theory: Achievement, Affiliation, and Power
3 needs—achievement, affiliation, and power—are major motives determining people’s behavior in the workplace
3 needs are as follows:
Need for achievement– “I need to excel at task”: the desire to do something better or more efficiently, to solve problems, to achieve excellence in challenging tasks
Need for affiliation– “I need close relationships”: the desire for friendly and warm relations with other people
Need for power– “I need to control others”: the desire to be responsible for other people to influence their behavior or to control them

18. Fitting Jobs to People Techniques (Job Design)
Job Enlargement: putting variety into a job
It consists of increasing the number of tasks in a job to increase variety and motivation
This increases job scope which expand scope of knowledge
Job Enrichment: putting more responsibility & other motivating factors into a job
It consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement
This increases job depth which enable more employee’s empowerment

19. Motivation & Compensation
Characteristics of the best incentive compensation plans:
Rewards must be linked to performance and be measurable
Rewards must be agreed on by manager and employees
Rewards must be perceived as being equitable, believable, and achievable by employees

20. Motivation & Compensation
Popular incentive compensation plans:
Pay for performance (merit pay): it bases pay on one’s results, according to measurable criteria
Bonuses: they are cash awards given to employees who achieve specific performance objectives
Profit sharing: the distribution to employees of a percentage of the company’s profits (profitability measure)
Gainsharing: the distribution of savings or “gains” to groups of employees who reduced costs and increased measurable productivity (productivity measure)
Stock options: with stock options, certain employees are given the right to buy stock at the future date for a discounted price
Pay for knowledge (skill-based pay): it ties employee pay to number of job-relevant skills or academic degrees they earn

21. Nonmonetary Ways of Motivating Employees
Thoughtfulness: the value of being nice
Work-life benefits
Surroundings
Skill-building & educational opportunities
Sabbaticals (leave)