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Chapter 3

Leadership and Motivation

Learning Objectives
1. Understand the difference between
leadership and management.
2. Describe the qualities of a leader and the
differing leadership styles.
3. Understand the importance of motivation.
4. Describe the key principles of employee
improvement theories.
5. Explain how employees can be
empowered in organizations.
Management and Leadership
Management vs. leadership
Leadership: The process of offering
guidance or direction.

Management: The act, manner, or

practice of managing, handling,
supervision, or control.
Leadership Qualities
Many studies but hard to pinpoint traits
Seven sets of qualities that tend to
1. Integrity, ethics, and self-knowledge
2. Having vision, understanding the
business, and understanding the
Leadership Qualities
3. Listening willingly, accepting
constructive criticism, and
4. Openness to change the only
constant in life is change"
5. Being decisive and committed
6. Positive attitude and enthusiasm
7. Taking care of people and inspiring
Not all managers are leaders.
Not all leaders are managers.
Leadership Styles
Formal(authority) and Informal Leadership
Two main types in teams(informal):
Task leader: who plans activities and
helps keep the group on task.
Social leader: who ensures everyone in
the group is getting along and agrees
with the direction the group is going.
Leadership Styles

Transformational leadership
Has vision and can inspire employees to
sacrifice personal interests

Transactional leadership
Reward or punishment (exchange
e drive to satisfy a ne
Importance of Motivation
Intrinsic reward: the personal
satisfaction you feel when you perform
well and achieve goals
Extrinsic reward: a reward given to an
employee, such as a promotion or pay
Taylors Scientific Management
Father of scientific management (Fredrick
Time and motion studies: studies of the
tasks performed to complete a job and the
time needed to do each task.
Scientific management: studying workers
to find the most efficient processes and
then teaching those techniques.
Little concern for human element
Taylors Scientific Management
Principle of motion economy (Frank& Lillian
Gilbreth): every job can be broken down into
a series of elementary motions.
Importance of Motivation
Mayos Hawthorne Studies
Elton Mayo
Western Electric Companys Hawthorne plant
6 year study 1927 to 1933
13 experimental periods Productivity always
went up
Hawthorne Effect: the tendency for people to
behave differently when they know they are
being studied.
Importance of Motivation
Maslows Hierarchy of Needs
Desire to understand motivation
When lower order needs are satisfied, the
next higher order need emerges
Herzbergs Two-Factor Theory
Results showed most important factor:
Sense of achievement
Job content vs. Job environment
Motivators vs. Hygiene factors
Herzbergs Two-Factor Theory

Motivators : job factors that cause

employees to be productive and give them
Hygiene factors : job factors that can cause
dissatisfaction if missing but dont
necessarily motivate employees if increased
Job rotation: a motivation technique that
involves moving employees from one job
to another.
Job enlargement: a motivation technique
that involves combining a series of tasks
into one challenging assignment.
Job enrichment: a motivational strategy
that involves making the job more
interesting in order to motivate employees.
Hot Topic: Motivation is a Hot Topic
(Video Case)
Employee Improvement Theories
MBO and Goal Setting Theory
Goals must be realistic, accepted,
accompanied by feedback, and
supported by organizational conditions
so Goal setting theory is the idea that
setting ambitious but attainable goals
can motivate workers and improve
Employee Improvement Theories
Peter Drucker developed such a system to
involve everyone in the organization in goal
setting and implementation. Called
Management by objective (MBO) a system
of goal setting and implementation that
involves a cycle of discussion, review, and
evaluation of objectives among top and
mid-level managers, supervisors, and
MBO is a motivational tool for the
Reinforcement and Equity Theory

Reinforcement theory: the idea that

positive and negative reinforcement
motivate a person to behave in certain
Individuals act to receive rewards and avoid
Reinforcement and Equity Theory

Equity theory: the idea that employees

try to maintain equity between inputs and
outputs compared to others in similar

Based on perception
Employee Empowerment
Empowerment: allowing employees the
ability and trust to make decisions.
Accepting and correcting if employees
made mistakes
Not punishment
Praise in public
Accept and correct mistakes in private