Module 5: Leading Section 2: Motivating and rewarding employees

Learning objectives Describe the motivation process Define needs and explain the hierarchy of needs theory Differentiate Theory X from Theory Y Describe the motivation-hygiene theory and equity theory Explain the key relationships in expectancy theory Describe how managers can design individual jobs to maximize employee performance Describe the effect of workforce diversity on motivational practices

Learning objectives (Contd.) Define leader and explain the difference between managers and leaders Summarize the conclusions of trait theories of leadership Be familiar with Fiedler contingency model Describe the path-goal model of leadership Explain situational leadership Describe characteristics of charismatic leaders and visionary leaders Explain four specific roles of effective team leaders Identify five dimensions of trust

Motivation and individual needs Motivation: the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual needs Need is defined as an internal state that makes certain outcomes appear attractive

Drives Search Behavior Tension Reduction of Tension Satisfied Need The Motivation Process Unsatisfied Need

Classical theories of motivation Maslow’s Hierarchy of Needs Theory Theory X and Theory Y Herzberg’s Two-factor Theory

Early theories of motivation Maslow’sHierarchy of Needs SelfEsteemSocialSafetyPhysiological

Theory X Workers Dislike Work Avoid Responsibility Little Ambition Theory Y Workers Enjoy Work Accept Responsibility Self-Directed

Herzberg’s Two-Factor Theory Hygiene FactorsMotivators High Job Dissatisfaction Job Satisfaction 0 Quality of supervision Salary and benefits Company policies Working conditions Relations with others Security and status Career advancement Recognition Work itself Responsibility Advancement Growth

Contemporary theories of motivation Three-needs theory Equity theory Job characteristics model Expectancy theory

The Theory of Needs DavidMcClelland The Theory of Needs DavidMcClelland Need for Achievement(nAch) Achievement(nAch) Power(nPow) Power(nPow) Affiliation(nAff) Affiliation(nAff)

Equity Theory Ratio Comparison* Employee’s Perception Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < = > Inequity (Under-Rewarded) Equity Inequity (Over-Rewarded) * Where A is the employee, and B is a relevant other or referent.

The Job CharacteristicsModel Skill Variety Task Identity Task Significance Autonomy Feedback

CharacteristicsExamples Skill Variety High varietyThe owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and interacts with customers Low varietyA bodyshop worker who sprays paint eight hours a day Task Identity High identityA cabinetmaker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection Low identityA worker in a furniture factory who operates a lathe to make table legs Task Significance High significanceNursing the sick in a hospital intensive-care unit Low significanceSweeping hospital floors Autonomy High autonomyA telephone installer who schedules his or her own work for the day, and decides on the best techniques for a particular installation Low autonomyA telephone operator who must handle calls as they come according to a routine, highly specified procedure Feedback High feedbackAn electronics factory worker who assembles a radio and then tests it to determine if it operates properly Low feedbackAn electronics factory worker who assembles a radio and then routes it to a quality control inspector who tests and adjusts it Examples of High and Low Job Characteristics

Personal and Work Outcomes Core Job Dimensions Critical Psychological States The Job Characteristics Model Skill variety Task identity Task significance Experienced meaningfulness of the work Experienced responsibility for outcomes of the work Knowledge of the actual results of the work activities Autonomy Feedback High internal work motivation High-quality work performance High satisfaction with the work Low absenteeism and turnover Employee Growth Need Strength

The Motivating Potential Score Motivating Potential Score (MPS) Autonomy Feedback = Skill Variety Task Identity Task Significance ++ 3 X X High MPS Increases Motivation Performance Satisfaction and Decreases Absence Turnover

Expectancy Theory 3. Rewards-personal goals relationship 1. Effort-performance relationship 2. Performance-rewards relationship IndividualEffortIndividualPerformance IndividualGoals OrganizationalRewards 1 2 3

An Integrative Model of Motivation Personal Goals Personal Goals Ability Task complexity High nAch High nAch Individual Performance Individual Performance Objective Performance Evaluation System Objective Performance Evaluation System Reinforcement Individual Effort Individual Effort Dominant Needs Dominant Needs Equity Comparison O I A I B Equity Comparison O I A I B Organization Rewards Organization Rewards Goals Direct Behavior Goals Direct Behavior

Leaders and leadership Leaders are people who are able to influence others and who possess managerial authority Leadership is an influence process; therefore, leaders are people who, by their actions, encourage a group of people to move toward a common or shared goal.

Trait Theories of Leadership Ambition and Energy Desire to Lead Self-ConfidenceHonesty and Integrity IntelligenceJob-RelevantKnowledge

Behavioral approach to leadership Behavioral theories of leadership Ohio State University studies The University of Michigan studies

Continuum of Leader Behavior Manager makes decision Manager sells decision Manager presents ideas Manager presents tentative decision Employees make decision Autocratic Laissez-faire Consultative Participative Democratic Boss-Centered Leadership Employee-Centered Leadership

Formal Studies of Behavioral Styles Ohio State Initiating Structure Consideration Employee-Orientation Production-Orientation University of Michigan

The Managerial Grid Concern for People Concern for Production (1,9) (1,1) (5,5) (9,9) (9,1)

Contingency approach to leadership Fiedler model Path-goal theory Leader-participation model Situational leadership

Fiedler’s LPC Scale PleasantFriendlyRejectingHelpfulUnenthusiasticTenseDistantColdCooperativeSupportiveBoringQuarrelsomeSelf-assuredEfficientGloomyOpen UnpleasantUnfriendlyAcceptingFrustratingEnthusiasticRelaxedCloseWarmUncooperativeHostileInterestingHarmoniousHesitantInefficientCheerfulGuarded … …

Findings of the Fiedler Model Category Leader-Member Relations Task Structure Position Power I Good High Strong II Good High Weak III Good Low Strong IV Good Low Weak V Poor High Strong VI Poor High Weak VII Poor Low Strong VIII Poor Low Weak High Low Performance People-Oriented Task-Oriented FavorableModerateUnfavorable

The Path-Goal Theory Environmental Situational Factors OutcomesLeaderBehavior Subordinate

Increased Employee Involvement Increased Leader Control Employee Involvement Continuum Leader Participation Model

Contingency Variables in the Revised Leader- Participation Model Quality Requirement Problem Structure Employee Conflict Geographic Dispersion Commitment Requirement Commitment Probability Employee Information Motivation Time Leader Information Goal Congruence Time Constraint Motivation Development

ParticipatingSelling DelegatingTelling The Situational Leadership Model Style of Leader High task and high relationship High relationship and low task Low relationship and low task High task and low relationship Task Behavior Relationship Behavior Able and willing Unable and unwilling R4 Able and unwilling R3 Unable and Willing R2 R1 HighModerateLow S3S2 S4S1

Emerging approach to leadership Charismatic leadership Visionary leadership Transactional and transformational leadership

Charismatic Leadership Self-confidence Vision and articulation Strong convictions Extraordinary behavior Image as a change agent Environmental sensitivity

Extend the Vision Explain Express Visionary Leadership

Leadership Styles Motivation versus Inspiration Transformational Leaders Transactional Leaders

Team Leader Roles ConflictManagers Trouble-Shooters CoachesLiaisons

What Is Trust? Integrity Competence Consistency Loyalty Openness

Deterrence-Based Knowledge-BasedIdentification-Based Three Types of Trust