part Chapter © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 1 McGraw-Hill Leadership and Motivation 1 Chapter 7

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2 McGraw-Hill 1.Understand the difference between leadership and management. 2.Describe the qualities of a leader and the differing leadership styles. 3.Understand the importance of motivation. 4.Describe the key principles of employee improvement theories. 5.Explain how employees can be empowered in organizations. Learning Objectives

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 3 McGraw-Hill Management vs. leadership Not all managers are leaders. Not all leaders are managers. Management and Leadership

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 4 McGraw-Hill Many studies but hard to pinpoint traits Seven sets of qualities that tend to help: 1.Integrity, ethics, and self-knowledge 2.Having vision, understanding the business, and understanding the tasks 3.Listening willingly, accepting constructive criticism, and communicating 4.Openness to change 5.Being decisive and committed 6.Positive attitude and enthusiasm 7.Taking care of people and inspiring them Leadership Qualities

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 5 McGraw-Hill Formal and Informal Leadership Two main types: –Task leaders –Social leaders Transformational leadership Has vision and can inspire employees to sacrifice personal interests Transactional leadership Reward or punishment Leadership Styles

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill Intrinsic reward Extrinsic reward Taylor’s Scientific Management Father of scientific management Time and motion studies Little concern for human element Principle of motion economy Importance of Motivation

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 7 McGraw-Hill Importance of Motivation Mayo’s Hawthorne Studies Elton Mayo Western Electric Company’s Hawthorne plant 6 year study – 1927 to experimental periods – Productivity always went up Hawthorne Effect

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 8 McGraw-Hill Importance of Motivation Maslow’s Hierarchy of Needs Desire to understand motivation When lower order needs are satisfied, the next higher order need emerges

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 9 McGraw-Hill Herzberg’s Two-Factor Theory Results showed most important factor: –Sense of achievement Job content vs. Job environment Motivators vs. Hygiene factors Job rotation Job enlargement Job enrichment

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 10 McGraw-Hill MBO and Goal Setting Theory Goals must be realistic, accepted, accompanied by feedback, and supported by organizational conditions Peter Drucker -- MBO Problems can arise Reinforcement and Equity Theory Reinforcement theory –Positive, Negative, and Extinction Equity theory –Inequity –Based on perception Employee Improvement Theories

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 11 McGraw-Hill Employee Empowerment Trusting employees to make decisions Accepting and correcting if employees made mistakes Not punishment Praise in public Punish in private