BO 6
MANAGEMENT SKILLS 1
LEADERSHIP AND MOTIVATION
Leadership
Definition: The ability to influence people to achieve a common goal.
It involves: planning, organisation and control (management activities)
Styles of leadership
1. Autocratic
Features:
 no trust
 uses fear
 does not consult
 no delegation
 control freak
Advantages
 fast
 needed for certain jobs (army)
 needed where there is a wide span of control
 good control
Disadvantages
 valuable opinions ignored
 overloaded manager
 poor motivation
 little staff development
 high turnover
2. Democratic
Features
 seeks views
 delegates
 trusts
 encourages
 persuades
Advantages
 good ideas = better decisions
 not overloaded
 well motivated staff
 staff developed
 low turnover
Disadvantages
 slow decisions
 doesn’t suit low skilled jobs or army or wide span of control
3. Laissez-faire or Spectator or Free Rein
Features
 staff decide (empowerment)
 little interference
 almost total delegation
 teamwork
 supervision rotation
Advantages:
 high motivation
 managers free to do other things
 good ideas
 staff developed
 very low turnover
Disadvantages
 staff must be highly trained
 a lot of experienced staff needed
 Loose control
Motivation
Definition: the skill of getting people to work, to the best of their ability, towards
achieving the goals of the business.
Importance
 Greater quantity
 Greater quality
 Positive atmosphere
 Enhanced reputation
 Greater innovation and creativity
Maslow’s Theory of Motivation
Hierarchy of needs. When one level of need is satisfied, then the next level above it
becomes the dominant-motivating factor in a person's behaviour.
 Physiologcal needs.
 Safety needs (security)
 Social acceptance needs. (friendship, company)
 Esteem needs (status, respect)
 Self- actualisation. (realising our potential)
Higher needs V lower needs.
Everything we do is motivated by needs. There is a hierarchy of needs and as each
need is satisfied, another becomes important:
Maslow’s theory important because;
 recognises that money is not the only motivation
 teaches managers other ways of unlocking potential

workers are motivated by higher order needs
McGregor’s Theory X and Y
Theory X managers (autocratic) appeal to lower order needs and believe:
 workers lazy and need a ‘controller-manager’
 workers not ambitious and avoid responsibility
 workers need threats and incentives
 workers dislike change
 workers need to be told what to do all the time
McGregor believe staff resent this approach, become unco-operative, and do as little
work as they can. This reinforces the manager’s view.
Theory Y managers (democratic or laissez-faire) believe;
 workers enjoy working, if it is interesting
 workers can be encouraged to change
 workers can be involved in decision making (facilitator-manager)
 workers can be trusted
 workers can be motivated by higher order needs
This should lead to better motivation, intrepreneurship, and low turnover of staff and
improved industrial relations.