Unit-6

Motivation & Leadership

Motivation: Meaning, theories of motivation-needs theory, two factor theory, Theory X and Y,
application of motivational theories
Leadership: Meaning, styles of leadership, leadership theories, trait theory, behavioural
theories, managerial grid, situational theories
MOTIVATION
The processes that account for an individual’s intensity, direction, and persistence of effort
toward attaining a goal
Key Elements
 Intensity: how hard a person tries
 Direction: toward beneficial goal
 Persistence: how long a person tries

THEORIES OF MOTIVATION
Maslow’s Hierarchy of Needs

Assumptions of needs theory

• Unsatisfied needs motivate or influence behavior.
• Needs are arranged in hierarchy
 • Needs at any level of the hierarchy emerge as a significant motivator only when the lower
level needs is reasonably well satisfied.
There is a hierarchy of five needs—
• Physiological: includes hunger, thirst, shelter and other bodily needs
• Safety: security & protection from physical & emotional balance
• Social: Affection, belongingness, acceptance & friendship
• Esteem: internal factors such as self-respect, autonomy & achievement and external
factors such as status, recognition and attention
• Self-actualization: The drive to become what one is capable of becoming includes
growth, achieving one’s potential & self-fulfillment
As each need is substantially satisfied, the next need becomes dominant.
APPLICATION OF NEEDS THEORY IN HR
Physiological needs – This includes having a place to work, regular monthly salary, comfortable
working environment and essential facilities (such as a tea/coffee making facilities).
Safety needs – These needs include having formal contracts of employment as well as benefits
such as a pension scheme and sick pay. There should also be an emphasis on health and safety in
the working environment.
Social needs – Promoting group working across teams, departments and different levels, as well
as encouraging team building through social activities can help satisfy these needs. If you have
employees who work from home or other remote locations (perhaps field-based) then it is
important to ensure that you and their manager are fulfilling their social needs.
Self-esteem – At the self-esteem level respect for others and praise is important. A 360-degree
feedback and appraisal system can help recognize employees’ contributions and a peer to peer or
social recognition programme will celebrate employees’ achievements and confer prestige and
respect.
Self-actualisation – At the highest level personal development plans, training, mentoring, and
the opportunity for promotion enable staff to be the very best they can be. By implementing
regular talent planning meetings among managers and HR, having career discussions with
employees and offering options such as fast-track management programmes your organisation
can fulfil employees’ self-actualisation needs while ensuring they have the expertise to fill future
vacancies.
Douglas Mcgregor’s Theory X And Theory Y
Theory X:
1. The average human being inherently dislikes work and will try to avoid it, whenever possible.
2. As the employees are lazy, they must be controlled coerced threatened with punishment to
achieve goals to which they are indifferent.
3. Average employees will try to avoid responsibility and seek formal directions whenever
possible, because they have relatively little ambition.
4. Most workers place security above all other factors associated with work. These assumptions
about human nature are negative in their approach.
Theory Y:
1. The average human being does not inherently dislike work. He can view work as natural
or enjoyable as rest or play.
2. Employees will exercise self-direction and self-control in the attainment of the objectives
to which they are committed.
3. Given proper working conditions, average person can learn to accept and even to seek
responsibility
4. Commitment to objectives is a function of the rewards associated with their achievement
5. All the people are capable of making innovative and creative decisions and the decision
making is not the sole province of the people in management positions.
DISTINCTION BETWEEN X & Y THEORIES

Basis of X theory Y theory

distinction

Attitude Most people have an Given proper environment, most people

towards work inherent dislike for work. will take to work as naturally as play.

Acceptance of Most people not ambitious With proper motivation, most people
responsibility Prefer to be directed by would willingly accept responsibility &
others go in for self-direction

Creativity Most people lack creativity Creativity is not the monopoly of a few
in resolving organisational & in a right environment people can be
problems made to display this trait on wide scale.

Motivation Only satisfaction of Satisfaction of physiological & safety

physiological & safety needs needs is not the only source of
will motivate workers. motivation, which also occurs at social,
esteem & self-actualisation level

Control Close, often coercive, With proper motivation people may be

control is the only means to self directed and creative
achieve organisational
objectives

TWO-FACTOR THEORY (FREDERICK HERZ BERG)

It is also called as Herzberg's Motivation-Hygiene Theory and Frederick Herzberg, a behavioural
scientist proposed a two-factor theory in 1959. According to him, there are some job factors that
result in satisfaction while there are other job factors that prevent dissatisfaction. According to
Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of
“Dissatisfaction” is “No Dissatisfaction”.
Herzberg classified these job factors into two categories-
• Hygiene factors
• Motivational factors
Hygiene factors
• Hygiene factors are those job factors which are essential for existence of motivation at
workplace.
• These do not lead to positive satisfaction for long-term. But if these factors are absent / if
these factors are non-existant at workplace, then they lead to dissatisfaction.
• In other words, hygiene factors are those factors which when adequate/reasonable in a
job, pacify the employees and do not make them dissatisfied.
• These factors are extrinsic to work.
• Hygiene factors are also called as dissatisfiers or maintenance factors as they are
required to avoid dissatisfaction.
• These factors describe the job environment/scenario. The hygiene factors symbolized the
physiological needs which the individuals wanted and expected to be fulfilled.
Hygiene factors include:
• Pay - The pay or salary structure should be appropriate and reasonable. It must be equal
and competitive to those in the same industry in the same domain.
• Company Policies and administrative policies - The company policies should not be
too rigid. They should be fair and clear. It should include flexible working hours, dress
code, breaks, vacation, etc.
• Fringe benefits - The employees should be offered health care plans (mediclaim),
benefits for the family members, employee help programmes, etc.
• Physical Working conditions - The working conditions should be safe, clean and
hygienic. The work equipment's should be updated and well-maintained.
• Status - The employees’ status within the organization should be familiar and retained.
 • Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or
humiliation element present.
• Job Security - The organization must provide job security to the employees.
Motivational factors
• The motivational factors yield positive satisfaction. These factors are inherent to work.
• These factors motivate the employees for a superior performance.
• These factors are called satisfiers.
• These are factors involved in performing the job.
• Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit.
Motivational factors include:
• Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
• Sense of achievement - The employees must have a sense of achievement. This depends
on the job. There must be a fruit of some sort in the job.
• Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
• Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control but
retain accountability.
• Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
Limitations of Two-Factor Theory
• The two-factor theory overlooks situational variables.
• Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
• The theory ignores blue-collar workers.
• The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters
may spoil the findings by analyzing same response in different manner.
LEADERSHIP:
According to Alan Keith, “leadership is ultimately about creating a way for people to contribute
to making something extraordinary happen”.
According to gary yuke, “leadership involves influencing task objectives and strategies
influencing commitment and compliance in task behaviour to achieve these objectives,
influencing group maintenance and identification and influencing the culture of an organisation.
Leadership involves:
• Establishing a clear vision,
• Sharing that vision with others so that they will follow willingly,
• Providing the information, knowledge and methods to realize that vision, and
• Coordinating and balancing the conflicting interests of all members and stakeholders

LEADERSHIP STYLES
1) autocratic/dictatorial leadership style:
The autocratic leader gives orders, which must be obeyed by the subordinates. He determines
policies for the group without consulting them, and does not give detailed information about
future plans, but simply tells the group what immediate steps they must take. He gives personal
praise or criticism to each member on his own initiative and remains detached from the group for
the major part of the time.
2) democratic/ participative leadership
A democratic leader is one who gives instructions only after consulting the group. He sees to it
that policies are worked out in group discussions and with the acceptance of the group. He makes
it clear that praise or blame is a matter for the group and participates in the group as a member.
Participative leadership style favours decision-making by the group
Free rein or laissez faire leadership style
A free rein leader does not lead, but leaves the group entirely to itself. He is represented by the
chairman of the board who does not manage, but leaves all responsibility for most of the work to
his subordinates. The free rein leader avoids power. He depends largely upon the group
LEADERSHIP THEORIES
TRAIT THEORIES
Leaders are born, not made.
Trait leadership is defined as integrated patterns of personal characteristics that reflect a range
of individual differences and foster consistent leader effectiveness across a variety of group and
organizational situations
Theories that consider personality, social, physical, or intellectual traits to differentiate leaders
from non-leaders
Among the core traits identified are:
• Achievement drive: High level of effort, high levels of ambition, energy and initiative
• Leadership motivation: an intense desire to lead others to reach shared goals
• Honesty and integrity: trustworthy, reliable, and open
• Self-confidence: Belief in one’s self, ideas, and ability
• Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and
conceptually skilled
• Knowledge of business: Knowledge of industry and other technical matters
• Emotional Maturity: well adjusted, does not suffer from severe psychological disorders.
• Others: charisma, creativity and flexibility
Limitations Of trait theories
• No universal traits found that predict leadership in all situations.
• Traits predict behavior better in “weak” than “strong” situations.
• Unclear evidence of the cause and effect of relationship of leadership and traits.
• Better predictor of the appearance of leadership than distinguishing effective and
ineffective leaders.
BEHAVIOURAL THEORIES
Behavioral theories of leadership are classified as such because they focus on the study of
specific behaviors of a leader. For behavioral theorists, a leader behavior is the best predictor of
his leadership influences and as a result, is the best determinant of his or her leadership success.
MANAGERIAL GRID THEORY OR ROBERT R. BLAKE AND JANE MOUTON
THEORY OF LEADERSHIP
The concept of managerial grid was created by R R Blake and Jane S mouton of USA.
The managerial grid model (1964) is a style leadership model developed by Robert R. Blake
and Jane Mouton. The optimal leadership style in this model is based on Theory Y. This model
originally identified five different leadership styles based on the concern for people and the
concern for production.
• The Indifferent or Impoverished (1,1)
These leaders have minimal concern for people and production.
In short, the indifferent leaders are ineffective and are greatly lacking in any of the traits that can
be attributed to successful and effective leaders.
• Impact on employees:
 Employees have a high degree of dissatisfaction
 No harmony within the group
 High turn over
• Impact on organization:
 Inefficient operation
• The Country Club or Accommodating (1, 9)
These leaders will go above and beyond to ensure that the needs and desires of his employees are
met. These leaders are making the assumption that their staff will yield maximum results as they
are likely to be self-motivated when they are lead in such environment. These leaders will have
behaviours that will yield and comply with the needs of their staff. The productivity of the group
however, can suffer from the lack of attention on tasks.
• Impact on employees:
 Employees are Happy
 Good team harmony
• Impact on organization:
 Low productivity
 The Status Quo or Middle-of-the-Road (5, 5)
 These leaders balance out the needs of their staff with those of the organization, while not
adequately achieving either. These leaders will balance and compromise their decisions,
often endorsing the most popular one. They dedicate minimal efforts towards facilitating
the achievements of their staff or the production results in average or below average
levels.
 Impact on employees:
 Employees are not really discontent nor are they happy
 Good harmony within the group
 Impact on organization:
 Average performance
The Dictatorial or Produce, Perish or Control (9, 1)
These leaders focus all of their attention to production-related matters and very little towards the
needs of their employees. These leaders will direct and dominate while holding the belief that
efficiency gains can only be achieved through rigid disciplines especially those that don't require
human interaction. Employees are considered expendable resources. Productivity is usually short
lived as high employee attrition is unavoidable. The dictatorial style is inspired by the McGregor
X theory.
Impact on employees:
 Employees experience a high level of dissatisfaction
 High level of conflict within the group
• Impact on organization:
 High employee turnover
 Peak performance is short lived
The Sound or Team (9, 9)
It is the sound leader is the most effective leadership style. These leaders will contribute and are
committed, can motivate and are motivated while holding the belief that trust, respect,
commitment and employee empowerment are essential for fostering a team environment where
team members are motivated, thus resulting in maximum employee satisfaction as well as the
most efficient productivity. This sound leadership style is also inspired by the McGregor Y
theory.
Impact on employees:
 Employees are forming a highly cohesive team
 Employees are satisfied
 Employees are motivated and work as a team
Impact on organization:
 Low employee turnover
 Attracts highly skills employees
 Efficient organization

OHIO STATE STUDIES

In 1945, the Bureau of Business Research at Ohio State University initiated a series of studies on
leadership. These studies sought to identify independent dimensions of leader behaviour. These
studies identified two independent leadership dimensions called initiating structure and
consideration.
Consideration
Consideration is the extent to which a leader exhibits concern for the welfare of the members of
the group.
With a focus on interpersonal relationships, mutual trust and friendship, the consideration
leadership style is people-oriented. This focuses primarily on:
 Being friendly and approachable
 Maintaining equality between leaders, team members, and stakeholders
 Ensuring the personal welfare of group members
 Being accessible to group members
Initiating Structure
The second behavioral element the study identified revolves around roles, objectives, activities,
planning, and delegation. Unlike the people-oriented style above, this is a task-oriented
perspective that focuses on behaviors such as:
 Setting individual expectations
 Maintaining performance standards
 Scheduling and planning tasks
 Ensuring the group maintains organizational expectations

UNIVERSITY OF MICHIGAN STUDIES or RENIS LIKERT THEORY OF

LEADERSHIP
A famous series of studies on leadership were done in Michigan University, starting in the 1950s
with the objective of identifying the principles and types of leadership styles that led to greater
productivity and enhanced job satisfaction among workers. This study was led by the famous
organizational psychologist, Dr. Rensis Likert at University of Michigan Survey Research Centre
and identified two major styles of leadership orientations-Employee Orientation and Production
Orientation. The studies also identified three critical characteristics of effective leaders: task-
oriented behavior, relationship-oriented behavior, and participative leadership. The studies
concluded that an employee orientation rather than a production orientation, coupled with
general instead of close supervision, led to better results.
Their main objectives are:
1. To classify the leaders as effective and ineffective by comparing the behaviour of leaders
2. To determine reasons for effective leadership.
The University of Michigan leadership model stated that a leader is either more job-centered or
more employee-centred as illustrated in below Figure
The job-centered style has scales measuring two job-oriented behaviours of goal emphasis and
work facilitation. Job-centered behavior refers to the extent to which the leader takes charge to
get the job done. The leader closely directs subordinates with clear roles and goals, while the
manager tells them what to do and how to do it as they work toward goal achievement.
The employee-centered style has scales measuring two employee-oriented behaviours of
supportive leadership and interaction facilitation. Employee-centered behaviour refers to the
extent to which the leader focuses on meeting the human needs of employees while developing
relationships. The leader is sensitive to subordinates and communicates to develop trust, support,
and respect while looking out for their welfare.
SCANDINAVIAN STUDIES
Some Finnish and Swedish theorists began reviewing earlier theories to find new dimensions that
could incorporate the dynamics of the environment. The new dimension found was called as
‘development–oriented behavior’. According to this dimension leaders were ready to experiment
with new ideas and practices and embrace change. Leaders who were inclined towards this
dimension were found to be more efficient by the subordinates.
SITUATIONAL/CONTINGENCY THEORIES
Situational leadership theory, a leader's effectiveness is contingent on his ability to modify his
management behavior to the level of his subordinates' maturity or sophistication. The style a
leader uses under situational leadership is based upon combining levels of directive behavior and
supportive behavior.
There are four main leadership styles:
• Telling (S1) – Leaders tell their people what to do and how to do it.
• Selling (S2) – Leaders provide information and direction, but there's more
communication with followers. Leaders "sell" their message to get people on board.
• Participating (S3) – Leaders focus more on the relationship and less on direction. The
leader works with the team, and shares decision-making responsibilities.
• Delegating (S4) – Leaders pass most of the responsibility onto the follower or group. The
leaders still monitor progress, but they're less involved in decisions.
Maturity level: knowing when to use each style is largely dependent on the maturity of the
person or group you're leading. They break maturity down into four different levels:
• M1 – People at this level of maturity are at the bottom level of the scale. They lack the
knowledge, skills, or confidence to work on their own, and they often need to be pushed
to take the task on.
• M2 – at this level, followers might be willing to work on the task, but they still don't have
the skills to complete it successfully.
• M3 – Here, followers are ready and willing to help with the task. They have more skills
than the M2 group, but they're still not confident in their abilities.
• M4 – These followers are able to work on their own. They have high confidence and
strong skills, and they're committed to the task.

TRANSACTIONAL LEADERSHIP
Transactional leadership styles are more concerned with maintaining the normal flow of
operations. Transactional leadership can be described as "keeping the ship afloat."
Transactional leaders use disciplinary power and an array of incentives to motivate employees to
perform at their best.
The term "transactional" refers to the fact that this type of leader essentially motivates
subordinates by exchanging rewards for performance.
A transactional leader generally does not look ahead in strategically guiding an organization to a
position of market leadership; instead, these managers are solely concerned with making sure
everything flows smoothly today.
TRANSFORMATIONAL LEADERSHIP
A transformational leader goes beyond managing day-to-day operations and crafts strategies for
taking his company, department or work team to the next level of performance and success.
Transformational leadership styles focus on team-building, motivation and collaboration with
employees at different levels of an organization to accomplish change for the better.
Transformational leaders set goals and incentives to push their subordinates to higher
performance levels, while providing opportunities for personal and professional growth for each
employee.