1

MOTIVATION
Ê LEADING
Motive and Motivation

Motive:
Defined as an inner state that energies, activates or
moves and directs behavior towards goals

Motivation:
The drive and effort to satisfy a want or a goal.

Satisfaction:
The contentment experienced when a want is satisfied
 Maslow's
HIERARCHY OF NEEDS
THE HIERARCHY NEEDS THEORY
Maslow's hierarchy of needs is a theory of psychology explaining human
motivation based on the pursuit of different levels of needs.
PHYSIOLOGICAL
SAFETY
SOCIAL
ESTEEM and
SELF-ACTUALIZATION

as each need is substantially satisfied,

the next need becomes dominant.
Self-Actualization
The drive to become what one is capable of becoming.
THE HIERARCHY NEEDS THEORY

LOWER-ORDER NEEDS
Needs that are satisfied externally;
1 PHYSIOLOGICAL NEEDS &
2 SAFETY NEEDS

HIGHER ORDER NEEDS

Needs that are satisfied internally;
3. SOCIAL NEEDS,
4. ESTEEM NEEDS, &
5. SELF-ACTUALIZATION NEEDS
Organizations help employees meet their self-actualization needs by providing
them with opportunities for skill development, the chance to be creative,
promotions and the ability to have complete control over their jobs.

Organizations meet employees’ esteem needs with merit pay rises, recognition,
challenging tasks, participation in decision making and opportunity for
advancement.

Organizations meet employees’ social needs by providing them with the

opportunity to interact with others, to be accepted and to have friends. Many
organizations schedule employee parties, picnics, trips and support office sport
teams

Organizations meet employees’ safety needs by providing safe working conditions,

job security, and fringe benefits (medical insurance / sick pay / pensions)

Organization meet employees’ physiological needs by providing adequate salary,

work breaks, and safe working conditions.
McGregor’s
THEORY X AND THEORY Y
THEORY-X AND THEORY-Y

Theory X and theory Y are part of motivational theories.

Both the theories, which are very different from each other, are
used by managers to motivate their employees.

Theory X gives importance to supervision,

while theory Y stresses on rewards and recognition.
THEORY-X AND THEORY-Y

Assumptions of Theory X (Traditional Belief)

Ê An average employee intrinsically does not like work and tries to escape it whenever
possible.
Ê Since the employee does not want to work, he must be persuaded, compelled, or
warned with punishment so as to achieve organizational goals. A close supervision is
required on part of managers. The managers adopt a more dictatorial style.
Ê Many employees rank job security on top, and they have little or no aspiration/
ambition.
Ê Employees generally dislike responsibilities.
Ê Employees resist change.
Ê An average employee needs formal direction.
THEORY-X AND THEORY-Y

Assumptions of Theory Y (Belief based on research)

Ê Employees can perceive their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
Ê Employees may not require only threat, external control and coercion to work, but
they can use self-direction and self-control if they are dedicated and sincere to achieve
the organizational objectives.
Ê If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
Ê An average employee can learn to admit and recognize the responsibility. In fact, he
can even learn to obtain responsibility.
Ê The employees have skills and capabilities. Their logical capabilities should be fully
utilized. In other words, the creativity, resourcefulness and innovative potentiality of
the employees can be utilized to solve organizational problems.
BASIS FOR COMPARISON
THEORY X THEORY Y
Meaning Theory X is a motivational theory, which Theory Y, is an advanced theory, wherein it is
involves high supervision and control assumed that the workers are self-directed and self-
over the subordinates, and greater motivated, for growth and development and takes
degree of centralization. active part in decision making.
Work Dislikes work Work is natural
Ambition Little to no ambition Highly ambitious
Responsibility Avoids responsibility. Accept and seek responsibility.
Leadership style Autocratic Democratic
Direction Constant direction is required. Little to no direction is required.
Control Tight Lenient
Authority Centralized Decentralized
Self-motivation Absent Present
Focuses on Psychological needs and Security needs Social needs, esteem needs and self-actualization
needs.
 Herzberg's
TWO FACTOR THEORY
HERZBERG TWO FACTOR THEORY

The two-factor motivation theory,

otherwise known as
HERZBERG’S MOTIVATION-HYGIENE THEORY
or DUAL-FACTOR THEORY, argues that
there are separate sets of
MUTUALLY EXCLUSIVE FACTORS
in the workplace that either cause
JOB SATISFACTION OR DISSATISFACTION
HERZBERG TWO FACTOR THEORY
Comparison Maslow vs. Herzberg
MOTIVATIONAL TECHNIQUES
Motivational Techniques (Positive)

• Praise the workers and give them due credit for all good work .
• Take sincere interest in subordinates as individual persons.
• Promote healthy competition among the individual employees.
• Find ways to develop and utilize the appeal of pride in or about the workplace.
• Delegate substantial amount of responsibility to the subordinates.
• Fix fair wages and monetary individual or group incentives for employees.
• Formulate a suitable suggestion system.
• Provide opportunities for growth and promotion.
 Motivational Techniques (Negative)

• Reprimanding the employees

• Demotion
• Lay-offs
• Discharge
• The proper proportioning of positive and negative techniques is the mark of a skillful
manager.

Reprimanding means Scolding, Lecturing

Special Motivational Techniques

Money (Economists and most managers have tended to place money

high on the scale of motivators, but behavioral scientists place it low)

Positive reinforcement

Job enrichment

Participation
34
35
LEADERSHIP
“It is defined as influence,
that is the art or process of
influencing people so that they will
strive willingly and enthusiastically
toward the achievement of group goals.”
36
What is leadership?
37
Managers vs. Leaders
MANAGERS LEADERS
¨Focus on things ¨Focus on people
¨Do things right ¨Do the right things
¨Plan ¨Inspire
¨Organize ¨Influence
¨Direct ¨Motivate
¨Control ¨Build
¨Follows the rules ¨Shape entities
38
Ingredients of Leadership
Ø The ability to USE POWER EFFECTIVELY and in a RESPONSIBLE
MANNER.

Ø The ability to UNDERSTAND that human beings have different

MOTIVATION FORCES at different times and different situations.

Ø The ability to INSPIRE.

Ø The ability to act in a manner that will DEVELOP A CLIMATE

conducive to responding to and affecting motivations.
39
Qualities of an effective leader
¨ Shouldn’t be arrogant
¨ Shouldn’t be miserly

¨ Should be as open as possible with subordinates

¨ Should ensure his troops understand what is expected of them

¨ Should promote competency and inspire

¨ Must be able to see things from others point of view

¨ Must consider the needs of the organization above his or her own
40

THREE
THEORIES
1 LEADERSHIP BASED ON
THE USE OF AUTHORITY

on
LEADERSHIP
2 LIKERT’S FOUR-SYSTEMS
OF MANAGING

3
BEHAVIOR AND
THE MANAGERIAL GRID
STYLES
 1. Styles based on USE OF AUTHORITY
41

¨ Leadership style is the manner and approach of providing

direction, implementing plans, and motivating people.

¨ Kurt Lewin (1939) led a group of researchers to identify different

styles of leadership.

¨ This early study has been very influential

and established three major leadership
styles.
ü AUTOCRATIC LEADER
ü DEMOCRATIC/PARTICIPATIVE LEADER
 1.1 Autocratic Leadership
42

The Autocratic leader commands and

expects compliance, is positive and leads
by ability to withhold or give rewards and
punishment.
 1.1 Autocratic Leadership
43

This style is used when leaders tell their employees

what they want and how they want it accomplished,
without getting the advice of their followers.

Some of the appropriate

conditions to use it is when you
have all the information to solve
the problem, you are short on
time, and your employees are
well motivated.
 1.1 Autocratic Leadership
44

¨ The autocrat leadership style manages the

direction of all goals and work, with little to no
input from the team.
¨ They have all the power to make decisions, and
they use it.
¨ They don’t worry about input, and do not leave
room for subordinates to sub-manage.
¨ The authoritarian style should normally only be
used on rare occasions.

For example: Military, manufacturing, construction

 1.2 Democratic / Participative leader
45

The Democratic/Participative leader consults

with subordinates on proposed actions and
decisions and encourages participation from
them.
 1.2 Democratic / Participative leader
46

This style involves the leader including

one or more employees in the decision
making process (determining what to do
and how to do it).

However, the leader maintains the final

decision making authority.

Using this style is not a sign of

weakness,
rather it is a sign of strength that your
employees will respect.
 1.2 Democratic / Participative leader
47

This is normally used when you have

part of the information, and your
employees have other parts.

Note that a leader is not expected to know

everything — this is why you employ
knowledgeable and skillful employees.

Using this style is of mutual benefit — it

allows them to become part of the team
and allows you to make better decisions.
 1.3 Delegative / Free Reign Leader
48

The Free-rein leader uses his/her power very little, if at all giving
subordinates a high degree of independence in their operations.
Such leaders depend largely on subordinates to set their own goals and the
means of achieving them.
 1.3 Delegative / Free Reign Leader
49

In this style, the leader allows the employees to

make the decisions.

However, the leader is still responsible for the

decisions that are made.

This is used when employees are able to analyze

the situation and determine what needs to be
done and how to do it.
 1. Styles based on USE OF AUTHORITY

POWER STLYE
Autocratic Leadership Democratic / Participative leader Delegative / Free Reign Leader

POWER SHARED
POWER WITH LEADER

POWER WITH EMPLOYEE

LEADER LEADER LEADER

EMPLOYEES EMPLOYEES EMPLOYEES

 Forces that influence the style to be used :
51

¨ How much time is available.

¨ Are relationships based on respect and trust or on disrespect?
¨ Who has the information — you, your employees, or both?
¨ How well your employees are trained and how well you know the
task.
¨ Internal conflicts.
¨ Stress levels.
¨ Type of task. Is it structured, unstructured, complicated, or simple?
¨ Laws or established procedures such as training plans.
 2. Likert’s 4 Systems of Managing
52

Rensis Likert along with his associates in Michigan University, USA conducted
System 1 System 2
research to study the patterns and styles of managers
Management over three decades,
Management
“EXPLOITATIVE
across 200 organizations “BENEVOLENT
and developed a four-fold model of the management
AUTHORITATIVE” AUTHORITATIVE”
system that helped in understanding the leadership behavior.

The proposed four systems of management, can also be thought of as

System 3 System 4
leadership styles. Each describes the relationships,
Management involvement, and roles of
Management
“CONSULTATIVE”
managers and subordinates in an industrial“PARTICIPATIVE”
setting.
 2.1 Exploitative Authoritative
53

Ø Managers are highly autocratic with no trust nor

System 1 confidence in subordinates
Management Ø Motivate people through fear & punishment and only
“EXPLOITATIVE occasional rewards
Engage in downward communication and limit
AUTHORITATIVE” Ø

decision making to the top

Ø Responsibility lies in the hands of the people at the
The teamwork or upper levels of the hierarchy.
Ø The decisions are imposed on subordinates and
communication is they do not feel free at all to discuss things about
very little and the the job with their superior.
motivation is based
on threats.
 2.2 Benevolent Authoritative
54

Ø Managers have a patronizing confidence and trust

System 2 in subordinates
Management Ø Motivate with rewards and some fear and
“BENEVOLENT punishment
Permit some upward communication
AUTHORITATIVE” Ø

Ø Ask some ideas and opinions from subordinates

Ø Allows some delegation of decision-making but
The teamwork or with close control
Ø Responsibility lies at the managerial levels but not
communication is very at the lower levels of the organizational hierarchy
little and motivation is Ø Subordinates do not feel free to discuss things
based on a system of about the job with their superior

rewards.
 2.3 Consultative
55

Ø Managers have substantial but not complete

confidence and trust in subordinates
System 3 Ø Usually try to make use of subordinates ideas and
Management opinions
“CONSULTATIVE” Ø Use rewards for motivation with occasional
punishment and some participation
Ø Engage in communication flow both up and down
Has fair amount of Ø Make broad policy and general decisions at the top
while allowing specific decisions to be made at lower
teamwork, motivation levels, and act consultatively in other ways.
is based on rewards Ø Responsibility is spread widely through the
and involvement in the organizational hierarchy.

job.
 2.4 Participative
56

Ø Managers have complete trust and confidence in

subordinates in all matters
System 4 Ø Seek ideas & opinions from subordinates and
Management constructively use them
“PARTICIPATIVE” Ø Engage in downwards and upwards communication
Ø Encourage decision making throughout the
organization
There is a high level Ø Operate among themselves and with their
subordinates as a group.
of teamwork, Ø Responsibility for achieving the organizational
communication, & goals is widespread throughout the organizational
participation. hierarchy.
 2. Likert’s 4 Systems of Managing
57

In general, Likert found that those managers who applied the

SYSTEM 4 approach to their operations had greatest success as
leaders.

Moreover, he noted that departments and companies managed

by the system 4 approach were more effective in setting goals
and achieving them and were generally more productive.
 3. The Managerial Grid
58

The managerial grid model is a self-assessment tool by which individuals

and organizations can help identify a manager's or leader's style.

The grid was originally developed by Robert R. Blake and Jane S. Mouton
in the 1960s and has evolved in subsequent decades.
 3. The Managerial Grid
59

"CONCERN FOR PRODUCTION" runs

along the horizontal axis on a 9-point scale.
A 1, or low concern for production, is
placed to the far left of the horizontal line, Each dimension ranging
close to the right angle; a 9, or high concern from low (1) to high (9),
for production, is located on the far right of
the horizontal line. thus creating 81 different
positions in which the
"CONCERN FOR PEOPLE" runs along the
vertical axis on a 9-point scale. leadership’s style may fall.
A 1, or low concern, falls at the bottom of
the vertical line, close to the base near the
right angle, while a 9, or high concern for
people, is placed at the top of this vertical
axis.
 9.9 TEAM MANAGEMENT
1.9 COUNTRY CLUB MANAGEMENT
Work accomplishment is from committed people;
Thoughtful attention to needs of people for satisfying
interdependence through a “common stake” in
relationship leads to a comfortable, friendly
organization purpose leads to relationships of trust
organization atmosphere and work tempo.
and respect.

1.1 IMPOVERISHED MANAGEMENT

5.5 MIDDLE OF THE ROAD MANAGEMENT
9.1 AUTHORITY-COMPLIANCE MANAGEMENT
Exertion of minimum effort to get required work done
is appropriate to sustain organizationAdequate organization performance is possible
membership.
Efficiency in operations results
through from arranging
balancing the necessity to get out work with
conditions of work in such a waymorale
maintaining that human
of people at a satisfactory level.
elements interfere to a minimum degree.

60
 3. The Managerial 1.1 MANAGEMENT
Grid minimum effort is required

PRODUCTION
PEOPLE
to get work done and
1.9 MANAGEMENT sustain organizational
morale
thoughtful attention to needs of
PRODUCTION

people leads to a friendly and

PEOPLE

comfortable organizational
atmosphere and work tempo. 5.5 MANAGEMENT
PEOPLE adequate performance
PRODUCTION
through balance of work
9.1 MANAGEMENT requirements & maintaining
efficiency results from arranging satisfactory morale.
work in such a way that human
PEOPLE

PRODUCTION

elements have little effort. 9.9 MANAGEMENT

work accomplished is from
committed people with

PRODUCTION
PEOPLE
interdependence through a
common stake in organization
 3. Extreme Styles of Managing

PRODUCTION
PEOPLE
62

1.1 MANAGEMENT

(Referred to as “ Impoverished management”).

Here managers concern themselves very little with either people or production
and have minimum involvement in their jobs, to all intents and purposes, they
have abandoned their jobs and only act as messengers communicating
information from superiors to subordinates.
 3. Extreme Styles of Managing

PRODUCTION
63

PEOPLE
1.9 MANAGEMENT

(Referred to as “Country club management”).

It is one in which managers have little or no concern for production but are
concerned only for people. They promote an environment in which everyone is
relaxed, friendly and happy and no one is concerned about putting forth
coordinated effort to accomplish the enterprise objectives.
 3. Extreme Styles of Managing
PEOPLE
64
PRODUCTION

5.5 MANAGEMENT

(Referred to as “ Middle of the roads”)

Here the managers have medium concern for production and for people. They
obtain adequate, but not outstanding morale and production. They do not set
goals too high and they are likely to have rather benevolently autocratic
attitude toward people.
 3. Extreme Styles of Managing

PEOPLE
65

PRODUCTION
9.1 MANAGEMENT

(Referred to as “Autocratic task managers”.

Here the managers are concerned only with developing an efficient operation,
who have little or no concern for people, and who are quite autocratic in their
style of leadership.
 3. Extreme Styles of Managing
66

PRODUCTION
PEOPLE
9.9 MANAGEMENT

(Referred to as “Team managers”).

This is on the other extreme. The managers here display in their actions the
highest possible dedication both to people and to production. They are real
team managers who are able to mesh the production needs of the enterprise
with the needs of the individuals.
 Leadership as a CONTINUUM
67

Developed by Robert Tannenbaum and W. H. Schmidt.

They see leadership as involving a variety of styles, ranging from one

that is highly boss centred to one that is that is highly subordinate
centred.

The styles vary with the degree of freedom a

leader/manager grants to subordinates.

Thus instead of suggesting a choice between the two styles of

 Leadership as a CONTINUUM
68

The continuum theory

recognizes which style of
AUTHORITARIAN FREE REIGN
leadership is appropriate,
AREA OF FREEDOM
depending on the leader, for managers AREA OF FREEDOM
followers and the situation for non-managers
faced by the organization.
DEMOCRATIC
Ellipse is placed around the
model to represent the
influences on style imposed
by both the organizational
environment and societal
environment.
COMMUNICATION
COMMUNICATION
Communication is viewed as the
means by which people are
linked together in an
organization to achieve common
goals.

Group activities in organizations

are impossible without proper
communication because
coordination and change cannot
be affected.
COMMUNICATION
Communication is essential for the INTERNAL FUNCTIONING of the
organization, because it integrates the managerial functions of planning,
organizing, staffing, leading, and controlling.

Communication also relates an enterprise to its EXTERNAL ENVIRONMENT. It

is through communication that managers become aware of the needs of
the customers, the availability of suppliers, the claims of stockholders, the
regulations of the government and the concerns of the community
Communication
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TYPES OF COMMUNICATION
Formal communication is an officially created
procedure for the flow of communication between
the various positions in the organizational set-up.
Memos
Intranet
Meetings
Conferences
Formal One-on-Ones
Bulletin Boards
Handouts
Letters
Presentations
Speeches
Notice Boards
Organizational blogs
Emails from managers and leaders
 TYPES OF COMMUNICATION
Informal communication is one that is outside the formed,
recognized communication system, such as conversations among
workers and the grapevine (gossip).

Single Strand – a form of informal communication wherein

each person communicates with the next in a single sequence.

Cluster - a very common form of informal communication, in

cluster networks a person will receive information and choose
to pass it on to their cluster network or keep the information to
themselves. Each individual will pass on the information to the
next cluster network

Probability Chain – each individual randomly tells another

individual the same piece of information.
 TYPES OF COMMUNICATION
Downward communication flows from people at higher
levels to those at lower levels in the organizational
hierarchy.

• This kind of communication exists especially in organizations

with an authoritarian atmosphere.
• The kinds of media used in downward oral communication
include instructions, speeches, meetings, telephone,
loudspeakers etc.
• Written downward communication includes letters,
memoranda, pamphlets, policy statements, procedures etc.
• The downward flow of communication through the different
levels of the organization is time-consuming.
• Information is often lost/distorted as it comes down the
chain of command.
TYPES OF COMMUNICATION
Upward communication travels from subordinates to
superiors and continues up the organizational hierarchy.

• Unfortunately, this flow is often hindered by managers in the

communication chain that filters the messages and does not
transmit all the information, especially unfavorable news to their
bosses.
• Upper management needs to know specifically about production
performance, marketing information, financial data, what
lower-level employees are thinking etc.
• Upward communication is primarily non-directive and is usually
found in participative/demographic organizational
environments.
• Effective upward communication requires an environment in
which subordinates feel free to communicate
TYPES OF COMMUNICATION
Crosswise communication or Horizontal
communication refers to communication between
individuals who are at the same or similar levels within
an organization but have different areas of
responsibility.

Horizontal communication is slightly more fluid and

dependent on cross-individual communication.

Typical examples exist as communication between managers of

different departments (HR, Marketing, Sales, etc.).
TYPES OF COMMUNICATION
Diagonal flow among people at different levels who
have no direct reporting relationships.

This kind of information flow is used to speed up the

process of communication, to improve understanding
and to coordinate efforts for the achievement of
organizational objectives.

Communication between a floor manager and a Sales team is a

prime example of diagonal communication.
TYPES OF COMMUNICATION
Written communication has the advantage of
providing records, references, and legal defense.

The message can be carefully planned, prepared, and

then directed to a large audience through mass mailing.

It can promote uniformity in policy, and procedure.

The disadvantages are that written messages may

create mountains of paper, maybe poorly expressed by
ineffective writers, and may not provide immediate
feedback.
TYPES OF COMMUNICATION
Oral communication can occur in a face-to-face
meeting of two people or in a manager’s presentation
to a large audience, which can be formal or informal, or
it can be planned or accidental.

The advantage being it makes possible speedy

interchange with immediate feedback.

People can ask questions and clarify points.

TYPES OF COMMUNICATION
Non-verbal communication – what a person
says can be reinforced (or contradicted) by non-
verbal communication, such as facial
expressions, and body gestures.

Non-verbal communication is expected to

support verbal, but it does not always do so.
 Lack of planning

EFFECTIVE COMMUNICATION
COMMUNICATION Un-clarified assumptions
Semantic distortion - can be deliberate or accidental.
“We sell for less” is deliberate (less than what?)
BARRIERS TO
Poorly expressed messages.
Loss by transmission
Poor retention
Poor listening and beforehand evaluation
Distrust, threat, and fear
Insufficient period for adjustment to change
Information overload
Other communication barriers

• Selective perception
• Attitude influence
• Differences in status and power
• A large number of levels in the organizations
 TOWARDS EFFECTIVE COMMUNICATION
Following are the guidelines for effective communication / improving communication:

• Senders of messages must clarify in their minds what they want to communicate.
• Encoding and decoding be done with symbols that are familiar to the sender and receiver of the
message.
• Planning for communication should not be done in a vacuum.
• It is very important to consider the needs of the receivers of the information.
• In communication tone of voice, choice of language, and the congruency between what is said
and how it is said to influence the reactions of the receiver of the message.
• Communication is complete only when the message is understood by the receiver of the
information.
• The function of communication is more than transmitting information.
• It also deals with emotions that are important in interpersonal relationships between superiors &
subordinates.
Effective communication is the responsibility of both the sender and the
receiver of the information.

“Listening is the key to understanding.”

Listening is a skill that can be developed

by following the guidelines listed below:
• Stop talking
• Put the talker at ease
• Show the talker that you want to listen
• Remove distraction
• Empathize with the talker
• Be patient
• Hold your temper
• Go easy with arguments
• Ask questions
guidelines to improve written communication
Following are the guidelines to improve written communication:

• Use simple words and phrases

• Use short and familiar words
• Use personal pronouns (Such as I, You etc) whenever applicable.
• Give illustrations and examples.
• Use short sentences and paragraphs
• Use active verbs (Such as the manager plans)
• Avoid unnecessary words and sentences.