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
The Motivation Process
Unsatisfied
Need
Search
Behavior
Reduction
of Tension
Tension
Drives
Satisfied
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’s
Hierarchy
of Needs
Self
Esteem
Social
Safety
Physiological
Little Ambition
Theory X
Workers
Dislike Work
Avoid Responsibility
Self-Directed
Theory Y
Workers
Enjoy Work
Accept Responsibility
Herzberg’s Two-Factor Theory
Hygiene Factors
• Quality of supervision
• Salary and benefits
• Company policies
• Working conditions
• Relations with others
• Security and status
High
Job Dissatisfaction
Motivators
• Career advancement
• Recognition
• Work itself
• Responsibility
• Advancement
•Growth
0
Job Satisfaction
High
Contemporary theories of
motivation
•
•
•
•
Three-needs theory
Equity theory
Job characteristics model
Expectancy theory
Need for
Achievement
(nAch)
The Theory
of Needs
Need for
Power
(nPow)
Need for
Affiliation
(nAff)
David
McClelland
Equity Theory
Employee’s
Perception
Ratio
Comparison*
Outcomes A
<
Inputs A
Outcomes A
Inputs A
*Where
Inequity (Under-Rewarded)
Inputs B
=
Inputs A
Outcomes A
Outcomes B
Outcomes B
Equity
Inputs B
>
Outcomes B
Inequity (Over-Rewarded)
Inputs B
A is the employee, and B is a relevant other or referent.
Skill Variety
Task Identity
The Job
Characteristics
Model
Task Significance
Autonomy
Feedback
Examples of High and Low Job Characteristics
Characteristics
Examples
Skill Variety
• High variety
The owner-operator of a garage who does electrical repair, rebuilds engines,
does body work, and interacts with customers
• Low variety
A bodyshop worker who sprays paint eight hours a day
Task Identity
• High identity
A cabinetmaker who designs a piece of furniture, selects the wood, builds the
object, and finishes it to perfection
• Low identity
A worker in a furniture factory who operates a lathe to make table legs
Task Significance
• High significance Nursing the sick in a hospital intensive-care unit
• Low significance Sweeping hospital floors
Autonomy
• High autonomy
A telephone installer who schedules his or her own work for the day, and
decides on the best techniques for a particular installation
• Low autonomy
A telephone operator who must handle calls as they come according to a
routine, highly specified procedure
Feedback
• High feedback
An electronics factory worker who assembles a radio and then tests it to
determine if it operates properly
• Low feedback
An electronics factory worker who assembles a radio and then routes it to a
quality control inspector who tests and adjusts it
The Job Characteristics Model
Core Job
Dimensions
Skill variety
Task identity
Task significance
Critical
Psychological
States
Experienced
meaningfulness
of the work
Autonomy
Experienced
responsibility
for outcomes
of the work
Feedback
Knowledge of the
actual results of
the work activities
Employee Growth
Need Strength
Personal
and Work
Outcomes















High internal
work motivation
High-quality
work performance
High satisfaction
with the work
Low absenteeism
and turnover
The Motivating Potential Score
Motivating
=
Potential
Score (MPS)
Skill + Task +
Task
X Autonomy X Feedback
Variety Identity Significance
High MPS Increases
3
Motivation
Performance
Satisfaction
and Decreases
Absence
Turnover
Expectancy Theory
Individual
Effort
1
Individual
Performance
2
Organizational
Rewards
3
1. Effort-performance relationship
2. Performance-rewards relationship
3. Rewards-personal goals relationship
Individual
Goals
An Integrative Model of Motivation
High
nAch
Ability
Task complexity
Individual
Effort
Individual
Performance
Objective
Performance
Evaluation
System
Equity
Comparison
O
O
IA
IB
Organization
Rewards
Reinforcement
Goals Direct
Behavior
Personal
Goals
Dominant
Needs
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
Honesty
and Integrity
SelfConfidence
Intelligence
Job-Relevant
Knowledge
Behavioral approach to
leadership
• Behavioral theories of leadership
• Ohio State University studies
• The University of Michigan studies
Continuum of Leader Behavior
Manager
sells decision
Autocratic
Consultative
Manager
presents ideas
Manager presents
tentative decision
Participative
Democratic
Employees
make decision
Laissez-faire
Employee-Centered Leadership
Boss-Centered Leadership
Manager
makes decision
Formal Studies
of Behavioral Styles
Ohio State
Initiating Structure
Consideration
University of
Michigan
Employee-Orientation
Production-Orientation
The Managerial Grid
1
(1,9)
(9,9)
Concern for People
2
3
4
5
(5,5)
6
7
8
9
(9,1)
(1,1)
1
2
3
4
5
6
Concern for Production
7
8
9
Contingency approach to
leadership
•
•
•
•
Fiedler model
Path-goal theory
Leader-participation model
Situational leadership
Fiedler’s LPC Scale
8 7 6 5 4 3 2 1
...........................
...........................
...........................
...........................
...........................
...........................
...........................
......................….
Pleasant
Friendly
Rejecting
Helpful
Unenthusiastic
Tense
Distant
Cold
Cooperative
Supportive
Boring
Quarrelsome
Self-assured
Efficient
Gloomy
Open
...........................
..........................
.
...........................
...........................
...........................
...........................
...........................
.....................….
Unpleasant
Unfriendly
Accepting
Frustrating
Enthusiastic
Relaxed
Close
Warm
Uncooperative
Hostile
Interesting
Harmonious
Hesitant
Inefficient
Cheerful
Guarded
Findings of the Fiedler Model
High
Performance
People-Oriented
Task-Oriented
Low
Favorable
• Category
• Leader-Member
Relations
• Task Structure
• Position Power
Moderate
I
II
Good
High
Strong
Unfavorable
Good
III
Good
IV
Good
V
Poor
VI
Poor
VII
Poor
VIII
Poor
High
Weak
Low
Strong
Low
Weak
High
Strong
High
Weak
Low
Strong
Low
Weak
The Path-Goal Theory
Environmental
Situational Factors
Leader
Behavior
Outcomes
Subordinate
Situational Factors
Leader Participation Model
Employee Involvement Continuum
Increased Leader Control
1
2
3
4
Increased Employee Involvement
5
Contingency Variables in the Revised LeaderParticipation Model
Quality
Requirement
Commitment
Requirement
Leader
Information
Problem
Structure
Commitment
Probability
Goal
Congruence
Employee
Conflict
Employee
Information
Time
Constraint
Geographic
Dispersion
Motivation
Time
Motivation
Development
The Situational Leadership Model
Relationship
Behavior
High relationship
and low task
Low relationship
and low task
Style
of Leader
S3
S2
Participating
Selling
Delegating
Telling
Task Behavior
S4
High
S1
Moderate
High task and
high relationship
High task and
low relationship
Low
R4
R3
R2
R1
Able and
willing
Able and
unwilling
Unable and
Willing
Unable and
unwilling
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
Visionary Leadership
Explain
the Vision
Express
the Vision
Extend
the Vision
Transactional
Leaders
Transformational
Leaders
Leadership
Styles
Motivation
versus
Inspiration
Coaches
Liaisons
Team Leader
Roles
Conflict
Managers
TroubleShooters
What Is Trust?
• Integrity
• Competence
• Consistency
• Loyalty
• Openness
Three Types of Trust
DeterrenceBased
KnowledgeBased
IdentificationBased