Chapter 15 Leadership, mtivating emplyees and wrking with teams are all key elements f management. What is Mtivatin? Mtivatin is the set f frces that initiates, directs and makes peple persist in their effrts t accmplish a gal. Initiatin f effrt Cncerned with the chices that peple make abut hw much effrt t put frth in their jbs Example: I hate writing perfrmance appraisals, s I ll just add a paragraph t last year s appraisals, rather than Perfrmance feedback is imprtant. I m ging t schedule an hur t review each file and an hur t write each appraisal. Directin f effrt Cncerned with the chices that peple make in deciding where t put frth effrt in their jbs Example: I m really excited abut the new cmputer system and can t wait t get started, rather than I ll d what I need t get by with it, but I think my time is better spent wrking directly with emplyees and custmers. Persistence f effrt Cncerned with the chices that peple make abut hw lng they will put frth effrt in their jbs befre reducing r eliminating thse effrts Example: We re nly halfway t ur gal with three mnths t get it dne. We ll never make it, s I m nt ging t wrk at this anymre, rather than We re nly halfway t ur gal with three mnths t g, but if we all keep wrking hard, we can d it. Directin Initiatin Persistence Mtivatin
Basics f Mtivatin Effrt and Perfrmance: When peple think f mtivatin, they think f wrking hard (effrt) shuld lead t ding a gd jb (perfrmance) Effrt Initiatin Directin Persistence Perfrmance Mtivatin is nly ne f three primary determinants f jb perfrmance Jb perfrmance = Mtivatin x Ability x Situatinal Cnstraints Jb perfrmance hw well smene perfrms the requirements f the jb Will suffer is ne f the three determinants are weak Mtivatin the degree t which smene wrks hard t d the jb well Ability the degree t which wrkers pssess the knwledge, skills and talent needed t d the jb well Situatinal cnstraints Factrs beynd the cntrl f individual emplyees, like tls, plicies and resurces that have an effect n jb perfrmance Need Satisfactin Needs are the physical r psychlgical requirements that must be met t ensure survival and well being Peple are mtivated by unmet needs. Once a need is met, it n lnger mtivates. Unsatisfied Need Tensin Energized t Take Actin Effrt Initiatin Directin Persistence Perfrmance Satisfactin Managers must learn what thse unmet needs are and address them Nt straightfrward Different needs theries suggest different needs categries Maslw s Hierarchy Alderfer s Erg McClelland s Learned Needs Herzberg s MtivatrHygiene Thery
Higher Order Needs SelfActualizatin Esteem Belngingness Grwth Relatedness Lwer Order Needs Safety Physilgical Existence Pwer Achievement Affiliatin Mtivatrs gained frm ding the jb well and receiving rewards like recgnitin & advancement. Hygiene assciated with the nature f the jb and wrkplace, like security, wrking cnditins and supervisry plicies Maslw Needs are arranged in a hierarchy frm lw (physilgical) t high (selfactualizatin) Lwer rder needs need t be met first, ne by ne, befre mving up the hierarchy Alderfer Peple can be mtivated by mre than ne need at a time Peple are just as likely t mve dwn the needs hierarchy as up, especially when they are unable t achieve satisfactin at the next higher need level McClelland The degree t which particular needs mtivate varies tremendusly frm persn t persn, with sme peple being mtivated primarily by achievement and thers by pwer r affiliatin Needs are learned, nt innate Herzberg Jb satisfactin and dissatisfactin are nt seen as ppsite ends f the same scale but tw separate scales Imprving things extrinsic t the jb (hygiene) will reduce jb dissatisfactin but will nt imprve mtivatin Only thrugh imprving mtivatrs will yu increase an emplyee s mtivatin Studies indicate there are tw kinds f needs categries: 1. Lwer rder needs Cncerned with safety and with physilgical and existence requirements 2. Higher rder needs Cncerned with relatinships, challenges and accmplishments, and influence Higher rder needs will nt mtivate peple as lng as lwer rder needs are satisfied
Intrinsic Rewards Extrinsic and Intrinsic Rewards Unsatisfied Need Tensin Energized t Take Actin Effrt Initiatin Directin Persistence Perfrmance Satisfactin Extrinsic Rewards Extrinsic Tangible and Rewards visible t thers Given t emplyees cntingent n the perfrmance f specific tasks r behaviurs Managers determine and cntrl the distributin, frequency and amunt f extrinsic rewards such as pay, cmpany stck, benefits and prmtins Need extrinsic rewards t get peple t d things they wuldn t therwise d Rewards are used t mtivate peple t perfrm three basic behaviurs: Jining the rganizatin Regularly attending their jbs Perfrming their jbs well Intrinsic Rewards Natural rewards assciated with perfrming a task r activity fr its wn sake Sense f interest and enjyment frm the activities r tasks that are perfrmed Examples: Sense f accmplishment r achievement A feeling f respnsibility The chance t learn smething new r interact with thers The fun that cmes frm perfrming an interesting, challenging and engaging task Mtivating with the Basics What practical things can managers d t mtivate emplyees t increase their effrt? Start by asking peple what their needs are Satisfy lwer rder needs first Prviding the equipment, training and knwledge t create a safe wrkplace free f physical risks, paying emplyees well enugh t prvide financial security and ffering a benefits package that will prtect emplyees and their families thrugh gd health and disability insurance Expect peple s need t change As ther needs are satisfied When situatins change Satisfy higher rder needs by lking fr ways t allw emplyees t experience intrinsic rewards Create pprtunities fr emplyees t take greater respnsibility fr their wrk Give emplyees the freedm t pursue tasks and prjects they find naturally interesting
Hw Perceptins and Expectatins Affect Mtivatin Equity Thery States that peple will be mtivated when they perceive that they are being treated fairly Stresses the imprtance f perceptins Peple must perceive that, relative t thers, they are being treated fairly In the eye f the behlder If peple truly perceive that they are being treated unfairly, then inequality exists, regardless f the bjective equity Cmpnents f Equity Thery Inputs The cntributins emplyees make t the rganizatin Includes: Educatin and training Intelligence Experience Effrt Number f hurs wrked Ability Outcmes The rewards emplyees receive fr their cntributins t the rganizatin Includes: Pay Fringe benefits Status symbls Jb titles and assignments Leadership style f supervisr Referents Others with whm peple cmpare themselves t determine if they have been treated fairly Usually cmpare themselves t referents wh hld the same r similar jbs, r similar t themselves in sme way (race, gender, age, etc ) Outcme/Input (O/I) Rati An emplyee s perceptin f the cmparisn between the rewards received frm an rganizatin and the emplyee s cntributins t that rganizatin OUTCOMESSELF = OUTCOMESREFERENT INPUTSSELF INPUTSREFERENT If a persn perceives their O/I rati is equal t the referent s O/I rati, they cnclude that they are being treated fairly
If a persn perceives that their O/I rati is different frm their referent s O/I rati, they cnclude that they have been treated inequitably r unfairly Tw kinds f inequality: 1. Underreward Occurs when the referent yu cmpare yurself t is getting mre utcmes relative t inputs than yu are Experience anger r frustratin 2. Overreward Occurs when yu are getting mre utcmes relatives t yur inputs than the referent t whm yu cmpare yurself Experience guilt Hw Peple React t Perceived Inequality: Perceived inequality affects satisfactin Underreward = frustratin r anger Overreward = guilt These reactins lead t tensin and a strng need t take actin t restre equity in sme way 5 ways in which peple try t restre equity when they perceive that they have been treated unfairly: 1. Reducing inputs Decreasing r withhlding effrt 2. Increasing utcmes Asking fr a raise Pinting ut the inequity t the bss and hping that he r she takes care f it Labur unins r prvincial labur bards Jining a unin 3. Ratinalizing inputs r utcmes Emplyees restre equity by making mental r emtinal adjustments in their O/I ratis r the O/I ratis f their referents Things culd be wrse. I still have a jb. Used when ther ways t restre equity aren t available 4. Changing the referent Peple cmpare themselves t smene ther than the referent they had been using fr previus O/I rati cmparisns 5. Simply leaving Used when nne f the abve ptins restre equity Quit jbs Transfer Increase absenteeism Mtivating with Equity Thery: Lk fr and crrect majr inequalities Reduce emplyees inputs Ask emplyees t d less, nt mre
Have them identify and eliminate the 20% f their jbs that des nt increase prductivity r add value fr custmers Have managers eliminate cmpanyimpsed requirements that really aren t critical t managers, emplyees r cmpanies perfrmance Unnecessary meetings, reprts, etc Make sure decisin making prcesses are fair Distributive justice The perceived degree t which utcmes and rewards are fairly distributed r allcated Prcedural justice The perceived fairness f the prcess used t make reward allcatin decisins Emplyees wh were laid ff tend t be hstile twards their emplyer when they perceive that the prcedures leading t the layffs were unfair Emplyees wh perceive layff prcedures were fair tend t cntinue t supprt and trust their emplyers If emplyees perceive that their utcmes are unfair (distributive justice) but that the decisins and prcedures leading t thse utcmes were fair (prcedural justice), they are much mre likely t seek cnstructive ways f restring equity. Discussing matters with managers If emplyees perceive bth distributive and prcedural justice t be unfair, they may resrt t mre destructive tactics: Withhlding effrt Absenteeism Tardiness Sabtage Theft
Expectancy Thery States that peple will be mtivated t the extent t which they believe that their effrts will lead t gd perfrmance, that gd perfrmance will be rewarded and that they will be ffered attractive rewards. Cmpnents f Expectancy Thery: Valence The attractiveness r desirability f a reward r utcmes The greater the sum f valances, the mre effrt peple will chse t put frth n the jb Expectancy The perceived relatinship between effrt and perfrmance Strng expectancies = emplyees believe their hard wrk and effrts will result in gd perfrmance, s they wrk harder Weak expectancies = emplyees figure that n matter what they d r hw hard they wrk, they wn t be able t perfrm their jbs successfully, s they dn t wrk hard Instrumentality The perceived relatinship between perfrmance and rewards When instrumentality is strng, emplyees believe that imprved perfrmance will lead t better and mre rewards, and they will chse t wrk harder When instrumentality is weak, emplyees dn t believe that better perfrmance will result in mre r better rewards, s they will chse nt t wrk as hard Fr peple t be highly mtivated, all three variables must be high If any ne f the variables declines, verall mtivatin will decline t Mtivatin = Valence x Instrumentality x Expectancy
Valence and instrumentality cmbine t affect emplyees willingness t put frth effrt The degree t which they are energized t take actin Expectancy transfrms intended effrt int actual effrt I m really ging t wrk hard in this jb If yu re ffered rewards that yu desire, and yu believe yu will in fact receive these rewards fr gd perfrmance, yu re highly likely t be energized t take actin. Nt likely t exert effrt unless yu als believe that yu can d the jb Mtivating with Expectancy Thery: Systematically gather infrmatin t find ut what emplyees want frm their jbs Survey emplyees regularly t determine their wants, needs and dissatisfactins Managers can take clear steps t link rewards t individual perfrmance in a way that is clear and understandable t emplyees Link between pay and perfrmance D nt restrict what emplyees can d r by ignring emplyees ideas If managers want wrkers t have strng expectancies, they shuld empwer them t make decisins What is Leadership? Leadership is the prcess f influencing thers t achieve grup r rganizatinal gals. Leaders vs. Managers Managers D things right Status qu Shrt term perspective Means hw t get things dne Builders Prblem Slving Leaders D the right things Change Lng term perspective Ends what gets dne Architects Inspiring and mtivating Leaders will begin with the questin, What shuld we be ding? while managers start with Hw can we d what already we re ding better? Leaders fcus n visins, missins, gals and bjectives Managers fcus n prductivity and efficiency
Substitutes fr Leadership: D Leaders Always Matter? In certain situatins and circumstances, leadership is nt necessary, r is unlikely t make much f a difference Knwn as leadership substitutes and leadership neutralizers Leadership Substitutes Subrdinate, task r rganizatinal characteristics that make leaders redundant r unnecessary Take the place f leaders Leadership Neutralizers Subrdinate, task r rganizatinal characteristics that can interfere with a leader s actins r make it impssible fr a leader t influence fllwers perfrmance Create an influence vacuum Create a need fr leadership by irnically preventing leadership frm wrking Spatial difference A situatin in which supervisrs and subrdinates dn t wrk in the same place Telecmmuters Overseas ffices Leads t infrequent feedback Little r n face t face cntact Out f sight, ut f mind
Wh are Leaders and What d Leaders D? Leadership Traits Trait thery: Leadership thery that hlds that effective leaders pssess a similar se f traits r characteristics Traits: Relatively stable characteristics, such as abilities, psychlgical mtives r cnsistent patterns f behaviur Als knwn as Great Persn Thery Leaders are different frm nnleaders n the fllwing traits: Drive High levels f effrt Characterized by achievement, mtivatin, ambitin, energy, tenacity and initiative The desire t lead Want t be in charge and think abut ways t influence r cnvince thers abut what shuld r shuldn t be dne Hnesty/integrity Hnesty Being truthful with thers Integrity the extent t which leaders d what they said they wuld d Selfcnfidence Mre decisive and assertive Mre likely t gain thers cnfidence Admit mistakes Emtinal stability Remain even tempered and cnsistent in their utlk Cgnitive ability Smart Have the capacity t analyze large amunt f seemingly unrelated, cmplex infrmatin and can see patterns r pprtunities r threats where ther might nt see them Knwledge f the business Have superir technical knwledge abut the business they run Understand key technlgical decisins and cncerns facing their cmpanies Traits alne are nt enugh t be a successful leader Traits are a precnditin fr success Leadership Behaviur: Tw basic leader behaviurs: 1. Initiating structure
The degree t which a leader structures the rles f fllwers by setting gals, giving directins, setting deadlines and assigning tasks Affects subrdinates jb perfrmance 2. Cnsiderate leader behaviur The extent t which a leader is friendly, apprachable, supprtive and shws cncern fr emplyees Affects subrdinates jb satisfactin Includes: Listening t emplyees prblems and cncerns Cnsulting with emplyees befre making decisins Treating emplyees as equals Blake/Mutn Leadership Grid: Use tw leadership behaviurs, cncern fr peple (i.e. cnsideratin) and cncern fr prductin (i.e. initiating structure) 9,9 Team Management Style Display high fr peple and high cncern fr prductin 9,1 Authrity Cmpliance Style High cncern fr prductin and lw cncern fr peple 1,9 Cuntry Club Style When leaders really care abut prducing a friendly and enjyable wrk envirnment but d nt pay much attentin t prductin r perfrmance 1,1 Impverished Style Little cncern fr peple r prductin and des the bare minimum needed t keep his r her jb Wrst leadership style 5,5 Middle f the Rad Management Mderate amunt f cncern fr peple and prductin Situatinal Leadership The effectiveness f any leadership style, the way a leader generally behaves twards fllwers, depends n the situatin Fiedler s Cntingency Thery States that in rder t maximize wrk grup perfrmance, leaders must be matched t the situatin that best fits their leadership style Three assumptins: Leaders are effective when the wrk grups they lead perfrm well Assumes leadership styles are cnsistent and difficult t change Leaders must be placed in r matched t a situatin that fits their leadership style The favurableness f a situatin fr a leader depends n the degree t which the situatin permits the leader t influence the behaviur f grup members Assesses leaders by the cnduct and perfrmance f the peple they supervise
Leadership Style: Least Preferred CWrker Fiedler uses a questinnaire called the Least Preferred CWrker (LPC) scale t measure leadership style Peple are instructed t cnsider all the peple with whm they ever wrked and then t chse the ne persn with whm they least preferred t wrk. Then use the scale t describe their LPC If described in a psitive way (scring 64 r abve) have relatinshiprientated leadership styles If described in a negative way (scring 57 r belw) have task rientated leadership styles Mderate scres (frm 58 t 63) smewhat mre flexible in their leadership style and can be smewhat relatinship and task rientated Situatinal Favurableness The degree t which a particular situatin either permits r denies a leader the chance t influence the behaviur r grup In highly favurable situatins: Leaders find that their actins influence fllwers In highly unfavurable situatin: Leaders have little r n success influencing them Three situatinal factrs determine the favurability f a situatin: Leadermember relatins The degree t which fllwers respect, trust and like their leaders Mst imprtant situatinal factr Task structure The degree t which the requirements f a subrdinate s tasks are clearly specified Highly structured tasks emplyees have clear jb respnsibilities, gals and prcedures Psitin pwer The degree t which leaders are able t hire, fire, reward and punish wrkers The mre influence a leader has, the greater their pwer
Matching Leadership Styles t Situatins: Hersey and Blanchard s Situatinal Thery States that leaders need t adjust their leadership styles t match fllwers maturity Based n the idea f fllwer readiness r maturity Emplyees have different levels f readiness fr handling different jbs, respnsibilities and wrk assignments Wrker Readiness: The ability and willingness t take respnsibility fr directing ne s behaviur at wrk Jb readiness the amunt f knwledge, skill, ability and experience peple have t perfrm their jbs Psychlgical readiness a feeling f self cnfidence r self respect Jb and psychlgical readiness are cmbined t prduce fur different levels f readiness: R1 Lwest level Represents insecure peple wh are neither willing nr able t take respnsibility fr guiding their wn wrk R2 Represents peple wh are cnfident and are willing but nt able t take respnsibility fr guiding their wn wrk R3 Represents peple wh are insecure and are able but nt will t take respnsibility fr guiding their wn wrk R4 Represents peple wh are cnfident and will and able t take respnsibility fr guiding their wn wrk
Leadership Styles: Defines leadership styles in terms f: Task behaviur (cncern fr prductin) Relatinship behaviur (cncern fr peple) These tw behaviurs are cmbined t frm fur different leadership styles: Telling High task behaviur and lw relatinship behaviur Based n ne way cmmunicatin Fllwers are tld what, hw, when and where t d particular tasks Used when peple are insecure and neither willing nr able t rake respnsibility fr guiding their wn wrk R1 Selling High task behaviur and high relatinship behaviur Tw way cmmunicatin and psychlgical supprt t encurage fllwers t wn r buy int particular ways f ding things Used when cnfident peple are willing but nt able t take respnsibility fr guiding their wn wrk R2 Participating Lw task behaviur and high relatinship behaviur Based n tw way cmmunicatin and shared decisin making Used when insecure peple are able but nt willing t take respnsibility fr guiding their wn wrk R3 Delegating Lw task behaviur and lw relatinship Leaders let wrkers run their wn shw and make their wn decisins Used when peple are willing and able t take respnsibility fr guiding their wn wrk R4 Strategic Leadership The ability t anticipate, envisin, maintain flexibility, think strategically and wrk with thers t initiate changes that will create a psitive future fr an rganizatin Visinary Leadership Leadership that creates a psitive image f the future that mtivates rganizatinal members and prvides directin fr future planning and gal setting. Tw kinds f visinary leadership: Charismatic Leadership The behaviural tendencies and persnal characteristics f leaders that create an exceptinally strng relatinship between them and their fllws Strng, cnfident, dynamic persnalities that attract fllwers
Charismatic leaders als: Articulate a clear visin fr the future Based strngly n held values r mrals Mdel thse values by acting in a way cnsistent with the visin Cmmunicate high perfrmance expectatins t fllwers Display cnfidence in fllwers abilities t achieve the visin Tw kinds f charismatic leaders Ethical charismatic Prvides develpment pprtunities fr fllwers, are pen t psitive and negative feedback, recgnize thers cntributins, share infrmatin and have mral standards that emphasize the larger interests f the grup, rganizatin r sciety Prduce strnger cmmitment, higher satisfactin, mre effrt, better perfrmance and greater trust Unethical charismatic Cntrl and manipulate fllwers D what is best fr themselves instead f their rganizatins Only want t hear psitive feedback Only share infrmatin that is beneficial t themselves Have mral standards that put their interests befre everyne else s Transfrmatinal Leadership
Leadership that generates awareness and acceptance f a grup s purpse and missin and gets emplyees t see beynd their wn needs and self interest fr the grup f the grup Get fllwers t accmplish mre than they intended and even mre than they thught pssible Fur cmpnents f transfrmatinal leadership: Charismatic leadership r idealized influence Act as rle mdels fr their fllwers Can be cunted n t d the right thing and maintain high standards fr ethical and persnal cnduct Inspiratinal mtivatin Mtivate and inspire fllwers by prviding meaning and challenge t their wrk Help fllwers envisin future states Leads t greater enthusiasm and ptimism abut the future Intellectual stimulatin Encurage fllwers t be creative and innvative, t questin assumptins and t lk at prblems and situatins in new ways, even if it s different frm the leaders Individualized cnsideratin Pay special attentin t fllwers individual needs by creating learning pprtunities, accepting and tlerating individual differences, encuraging tw way cmmunicatin and being a gd listener Transactinal Leadership Based n an exchange prcess, in which fllwers are rewarded fr gd perfrmance and punished fr pr perfrmance