1. Chapter 6

3.  DEFINITION:  Expressing and passing a clear vision, energizing and enabling organizational members so that they understand the part they play in achieving organizational goals;  Leading is one of the four principal tasks of Management. .

4.  Leadership is the process by which a person has influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals.

5.  Leader is the person who has such influence. When leaders are effective, the influence they have over others helps in achieving group or organizational performance goals. When leaders are ineffective their influence is not a positive one and often detracts from goal attainment.

6.  DEFINITION  MOTIVATION may be defined as psychological forces that determine the direction of a person’s behavior in an organisation, a person’s level of effort and a person’s level of persistence in the face of obstacles.  Motivation is central to Management because it explains why people behave the way they do in organizations.  Motivation can come from internal or external sources.

7.  MOTIVATION THEORIES  1. Expectancy Theory.-formulated by Victor H.Vroom in 1960. Is the theory which supports that motivation will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes.  Expectancy theory proposes that an individual will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be.[

8. Three components of Expectancy theory: Expectancy, Instrumentality, and Valence. Expectancy is the belief that one's effort will result in attainment of desired performance goals. Instrumentality is the belief that a person will receive a reward if the performance expectation is met. This reward may come in the form of a pay increase, promotion, recognition or sense of accomplishment. Instrumentality is low when the reward is the same for all performances given.

9.  Valence: the value an individual places on the rewards of an outcome, which is based on their needs, goals, values and Sources of Motivation.

10.  2. Need Theories – Focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs.  Need theory complement Expectancy theory by exploring in depth which outcomes motivate people to perform at a high level.

13. Maslow’ Hierarchy of needs – formulated by Abraham Maslow. Is an arrangement of five basic needs that according to Maslow motivate behavior. Maslow proposed that the lowest level of unmet needs is the prime motivator and that only one level of needs is motivational at a time.  Hierarchy of Needs  High to Low  Self-actualization needs- The needs to realize one’s full potential as a human being  Esteem needs – The needs to feel good about one self and one’s capabilities, to be respected by others, and to receive recognition and appreciation. 

14.  Belongingness needs – Needs for social interaction, friendship, affection and love  Safety needs – Needs for security, stability, and a safe environment.  Physiological needs- Basic needs for things such as food, water and shelter that must be met in order for a person to survive.  The lowest level of unsatisfied needs motivates behavior; once this level of needs is satisfied, a person tries to satisfy the needs of the next level as above.

15.  ALDERFER’S ERG THEORY- Is the theory that three universal needs – for existence, relatedness, and growth,-constitute a hierarchy of needs and motivate behavior. Alderfer proposed that needs at more than one level can be motivational at the same time.  NEEDS  HIGH – LOW  1. Growth needs: The needs of self-development and creative and productive work.  2. Relatedness needs : The needs to have good interpersonal relations, to share thoughts and feelings, and to have open two-way communication.  3. Existence needs: Basic needs for food, water, clothing,shelter and secure and safe environment. 

16.  As lower level needs are satisfied a person is motivated to satisfy higher level needs.  ERG theory collapses the five categories of Maslow’s hierarchy of needs into THREE. Unlike Maslow, Alderfer believes that a person can be motivated by needs at more than one level at the same time. 

18.  HERZBERG’S MOTIVATOR-HYGIENE THEORY  Definition: A need theory that distinguishes between motivator needs (related to the nature of work itself) and hygiene needs (related to the physical and psychological context in which the work is performed) and proposes that motivator needs must be met for motivation and job satisfaction to be high.

19.  Motivator needs are related to the nature of the work itself.  Hygiene needs are related to the physical and psychological context in which the work itself is performed.  Outcome such as interesting work, sense of accomplishment and achievement,autonomy, responsibility to grow and develop on the job, working conditions, pay etc.

21.  McClelland’s THEORY OF Needs for Achievement,Affiliation and Power.  Need for Achievement.-The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence.  Need for Affiliation-The extent to which an individual is concerned about establishing and maintaining good interpersonal relations,being liked, and having the people around him or her get along with each other.  Need of Power.- The extent to which an individual desires to control or influence others.

22.  EQUITY THEORY  A THEORY OF MOTIVATION that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs.  EQUITY THEORY complements expectancy and Need theories by focusing on how people perceive the relationship between the outcomes they receive from their jobs and organizations and the inputs they contribute.

23.  GOAL SETTING THEORIES  A theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects.  Focuses on motivating workers to contribute their inputs to their jobs and organizations.

24.  IT IS SIMILAR TO EXPECTANCY THEORY AND EQUITY THEORY but goal setting theory goes a step further by considering as well how managers can ensure that organizational members focus their inputs in the direction of high performance and the achievement of organizational goals.

25.  Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behavior and the attainement of goals.  LEARNING can be defined as a relatively permanent change in a person’s knowledge or behavior that results from practice to experience.

26.  OPERANT CONDITIONING THEORY i.e. people learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.  AND SOCIAL LEARNING THEORY are learning theories also which provide the most guidance to Managers in their efforts to have highly motivated workforce.

27.  POSITIVE REINFORCEMENT- Giving people outcomes they desire when they perform organizationally functional behaviors.  NEGATIVE REINFORCEMENT. Eliminating or removing undesired outcomes when people perform organizational functional behaviors.  IDENTIFYING THE RIGHT BEHAVIOR FOR REINFORCEMENT- a) EXTINCTION- Limiting the performance of dysfunctional behaviors by eliminating whatever is reinforcing them b) Punishment – Administering an undesired or negative consequence when dysfunctional behavior occurs.

28.  A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior.  Vicarious Learning often called observational learning AS PART OF SOCIAL LEARNING THEORY occurs when a person (the learner) becomes motivated to perform a behavior by watching another person perform it and be reinforced for doing so.

29.  Self reinforce- Any desired or attractive outcome or reward that a person gives to himself or herself for good performance.  Self efficacy- A person’s belief about his or her ability to perform a behavior successfully.

30.  EACH OF THE THEORIES DESCRIBED ABOVE REGARDING MOTIVATION DECREASES THE IMPORTANCE OF PAY AND SUGGESTS THAT PAY SHOULD BE BASED ON PERFORMANCE.  1. Merit Pay Plan  2. Salary Increase or bonus  etc

31. LEADERSHIP TRAITS : LeadErship traits represent the personal characteristics that differentiate Leaders from followers - Historic findings reveal that leaders and followers vary by: - intelligence - dominance - self-confidence - level of energy and activity - Task-relevant knowledge -Contemporary findings show that - people tend to perceive that someone is a leader when he or she exhibits traits associated with intelligence, masculinity and dominance - people want their leaders to be credible - credible leaders are honest, forward looking, inspiring and competent.

32.  1.EXTRAVERSION – The tendency to experience positive emotions and moods and to feel good about oneself and the rest of the world.  2. Negative Effectivity- The tendency to experience negative emotions and moods, to feel distressed, and to be critical of oneself and others.  3. Agreeableness-The tendency to get along well with other people.  4. Conscientiousness- The tendency to be careful, scrupulous, and persevering.  5. Openness to experience.-The tendency to be original, have broad interests, be open to a wide range of stimuli, be daring and take risks.

33. 1. Focus on Control – Internal and External - Internal-the tendency to locate responsibility for ones fate within oneself. External- the tendency to locate responsibility for ones fate in outside forces and to believe that ones own behavior has little impact on outcomes. 2. Self esteem - The degree to which individuals feel good about themselves and their capabilities.

34. 3.Neeeds for Achievement, Affiliation and Power. -Achievement-the extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards of excellence. -Affiliation- the extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked and having other people get along. - Power- the extent to which an individual desires to control or influence others.

35.  Communication- Is the sharing of information between two or more individuals or groups to reach a common understanding  COMMUNICATION Process- Consists of two Phases  1. The transmission phase –transmission of information between two or more individuals or groups  2. Feedback phase – common understanding is ensured.

36.  3. Transmission phase- includes the Sender, message encoding, noise, receiver, medium  4. Feed back- decoding, verbal communication, non verbal communication Effective Communication Non-Effective Communication

37. Organizational effectiveness depends on the ability of Managers (and other members of the organization) to effectively send messages to people both inside and outside the organization. -SEVEN COMMUNICATION SKILLS FOR MANAGERS 1. send messages that are clear and complete 2.encode messages in symbols that the receiver understands. 3. select a medium that is appropriate for the message 4. select a medium that a receiver monitors 5. avoid filtering and information distortion. 6. ensure that a feedback mechanism is built into messages. 7. provide accurate information to ensure that misleading rumors are not spread.

39. Is an essential part of the Managerial function. Organizing and controlling are inseparable and effective Managers must learn to make them work together in an harmonious way. CONTROLLING is the process whereby Managers monitor and regulate how efficiently and effectively an organization and Its members are performing the activities necessary to achieve organizational goals.  Controlling is a four steps process  1. establishing performance standards  2. measuring actual performance  3.comparing actual performance against performance standards  4.evaluating the results and initiating corrective action if necessary.

40.  Management means the planning, organizing, leading and controlling of human recourses to achieve organizational goals efficiently and effectively.  -Manager is a person responsible for supervising the use of an organizations resources to meet its goals.

41.  Today’s global environment presents many interesting challenges to managers. One of the main challenges is building a competitive advantage by increasing efficiency, quality,speed,flexibility and innovation and customer responsiveness. Other competitors maybe are behaving in an ethical and socially responsible way toward people inside and outside the organization, managing a diverse workforce, utilizing new IT, and practicing global crisis management.