1. Ass. Prof. Dr. Özgür KÖKALAN İstanbul Sabahattin Zaim University

2. Chapter Objectives 1. Define what leading function is 2. Classify leadership theories 3. Define what the motivation is 4. Classify motivation theories 5-2

3. Leading It is defined as use of influence to direct and motivate the employees to accomplish the organizational goals. This function mainly focuses on people in the organization.

4. Leadership in Managing People Leadership is linked with behavior. It is a process that an individual influences other people to do their work toward the attainment of the overall organizational goals. Leadership needs followers. The role of leader is to direct the followers toward the goals. The style of leadership and the reaction of followers will be determined by the situations such as the task, positions, relations, external pressures and so on.

5. The Classification of Leadership Theories Leadership theories are classified into three groups: Trait Theory of Leadership Behavioral (Styles) Theories of Leadership Contingency Theories

6. Trait Theory of Leadership The success of leaders is undoubtedly due to their personal qualities. Personal traits such as intelligence, appearance, social maturity, human relation attitudes and so on have an impact on successful leadership in the organization.

7. Behavioral (Styles) Theories of Leadership These theories see leadership as an aspect of behavior at work rather than as personal characteristics. Some well-known behavioral theories of leadership are: Authoritarian – Democratic Leadership Style in a Continuum. Two Dimensional Leadership Style.

8. Authoratarian – Democratic Leadership Styles in a Continuum According to this theory, managers have a choice between being either authoratarian or democratic. The main weakness of this theory is that it puts more importance and stresses on the leader’s behavior than the other key variables of leadership.

9. Two-Dimensional Leadership Style Two important and seperate dimensions in leadership behavior are Consideration – considerate of employee feelings, relationship orientations. Initiating structure – behavior concerned with work processes, formal task formalities. It is possible for manager to score high in both dimensions that contrast with the leadership styles in the continuum.

10. High Consideration Low Structure High Consideration High Structure Low Consideration Low Structure Low Consideration High Structure High Consideration for People Low Low Initiating Structure High Leaders with best performance and greater satisfaction are in this sectiom

11. Contingency Theories of Leadership There is no one best leadership behavior that fits every other business situation. Fred Fiedler categorizes the two dimension of leadership behavior as Relationship – oriented behavior ; leaders have positive and considerable relationship with subordinates. Task –oriented behavior; leaders are concerned much about task accomplishment. These two dimension of leadership behavior are studied under three situational variables, Leader – member relation Degree of task’s structure (complexity of tasks) Power and authority of the position

13. Motivating People in Organizations A motive is a need. Motives create an internal tension in humans that directs spesific behavior resulting in actions to fulfill the needs. If the behavior is succesful so the person gets rewards that satisfy the needs. These rewards can be intrinsic (individual’s inner satisfaction received in accomplishment) or extrinsic ( reward given to an individual by another person for successful accomplishment.

14. Motivation is mainly classified into two types of theories: Content theories of motivation Process theories of motivation.

15. Content Theories of Motivation They attempt to determine what generally motivates people at work. They are concerned with the study of needs that motivate people There are two important content theories in motivation: Maslow’s Hierarchy of Needs’ Theory Herzberg’s Two Factor Theory of Motivation

16. Maslow’s Hierarchy of Needs’ Theory Self Actualization Needs Esteem Needs Social Needs Safety Needs Physiological Needs

17. Physiological needs: people’s basic needs such as hunger, sleep… Safety needs: people need secure physical and emotional enviroment protected from violence and threats Social needs: people need to make friendship or to be a part of a group. Esteem needs: People need for power, status and recognition by other people. Self – actualization needs: They are the higher needs for self-fullfillment, developing one’s full potential, competence.

18. Herzberg’s Two- Factor Theory of Motivation. In this theory, There are two factor affecting people’s motivation: Hygiene factors: are equal to Maslow’s lower level needs such as physiological, safety and social needs. They are very important and should be present in workplace to prevent dissatisfaction, but they do not motivate people. Motivators: equal to Maslow’s higher levels of needs ( esteem and self –actualization). According to Herzberg, to motivate people at work, managers should give the higher level needs, the motivators.

20. Process Theory of Motivation They are concerned with how to direct behavior at work. They explain how workers choose behavioral actions to satisfy their needs. There are two important process theories in motivation: Vroom’s Expectancy Theory of Motivation The Equity Theory

21. Vroom’s Expectancy Theory of Motivation Motivation depends on people’s expectation about their ability to perform tasks that will be followed by a desired outcome.

22. To be motivated individuals should believe that: Their efforts will lead to high performance High performance will lead to outcome The outcome is desired by them ( The value of outcome for the individual is called as valence) The process can be formulated as follows: Motivation = Effort x Performance x Valence

23. Equity Theory of Motivation This theory focuses on an individual’s perception of how fairly he is treated relative to other people in similar jobs. An individual will evaluate equity by a ratio of input to outcome. Inputs are effort, experience, education, ability, etc. Outcomes are pay, recognition, promotion, status etc. An individual’s outcome to input ratio will be compared with the other individual’s outcome and input ratios. If the ratios are out of balance then perceived inequity will create tensions within the individuals. In such situation individuals will be motivated to bring equity into balance