The 3rd core management function: Leading

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

Leading Process Leadership Motivation Performance

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

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

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

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”

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

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

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

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

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: http://www.ruralhealth.utas.edu.au/comm-lead/leadership/maslow-diagram.htm

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: http://www.ruralhealth.utas.edu.au/comm-lead/leadership/maslow-diagram.htm

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

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

Satisfaction vs. Dissatisfaction

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

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

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

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

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