Management Skills of Leadership &

Motivation

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Define Leadership List & explain different types of leaders Explain what is meant by motivation Outline Maslow’s theory of motivation Outline McGregor’s theory of motivation

Learning Objectives

‘Leadership refers to the ability toinfluence other people to go ina particular direction & achieve aparticular goal’

1. Leaders provide direction2. Leaders set an example3. Leaders delegate work

Let’s see box p.83!

1. Leadership

1. Autocratic or Authoritarian (Dictatorial)2. Democratic3. Laissez Faire

These styles differ in terms of: How?? Ability to trust Decision-making style Methods of persuasion

Leadership Styles

No discussion or consultation with staff Expects work to be done immediately

withoutquestion- ‘Do not question the Boss’

Only form of communication is top – down Can yield success in short term

(If boss is an expert?)

A. Autocratic or Authoritarian

Boss is not popular with staff (support is low)

Does not consider important opinions ofothers and leads to low staff morale & high staff turnover

May result in delays

Let’s see the Army example p.84

Implications of Authoritarianism

Allows & encourages workers to givetheir opinion and contribute to business decisions

Inclusive approach Good atmosphere & morale leading to a

motivated & satisfied workforce Two-way communication Encourages ‘intrapreneurship’

Let’s see example p.85!

B. Democratic Leadership

Consultation can take longer and resultin a missed business opportunity‘Life of Brian’

Accommodating all viewpoints may result ina poor final decision

High morale = Increase in worker productivity

Implications of Democracy

Giving staff general goals and targetsto aim for and then givingthem authority to achieve these inwhatever way they thing best

Let’s see Richard BransonExample p. 86!

C. Laissez-Faire (Free Rein) Leadership

Lacks leadership (non-involvement etc.) Wrong to expect correct decisions will

always be made Communication is difficult Leads to inconsistency & inefficiency May work in research based work

Implications of Free Rein

‘Motivation is the willingness of peopleto work hard and contribute theirbest effort’ Workers/Students must be motivated to

find their work interesting Motivated staff = efficiency = good morale Leads to: 1. Increased productivity2. Greater intrapreneurship3. Improved IR4. Easier recruitment & retention5. Repeat business

2. Motivation

Not every worker is motivated by money? Non-financial motivators include:

◦ Job Security◦ Job Status◦ Job Aspiration◦ Job Praise

Non-Financial Motivation

1. Abraham Maslow (1908 – 1970)2. Douglas Mc Gregor (1906 – 1964)

Motivation Theorist’s

All human needs are arranged ina hierarchy (Pyramid) in order of theirimportance

Every person has a need which must be satisfied

When a need is satisfied you move to the next level

Needs are arranged in progressive levels (in terms of importance)

A persons job can help satisfy these needs

Maslow’s Hierarchy of Needs

Self-Actualisation

Esteem Needs

Social Needs

Security Needs

Physiological Needs

Maslow’s Hierarchy of Needs

Once financial needs are satisfied, workerswill seek additional rewards

Employee’s attitudes and effort are dependenton satisfying their non-financial needs

Morale will be low if the work is boringregardless of pay & this may increase absenteeism, lower efficiency & profit

Implications for Business?

Strengths: Recognises that people are motivated by

more than money Recognises that different things motivate

differentpeople at different times

Allows business identify the need fordifferent types of motivations for staff

Weaknesses: People are complex, this is simplistic Do not satisfy one need at a time See

p.88!

Strengths & Weaknesses of Maslow’s Theory

Analysed how employer’s & employee’s lookat work

Employer = the boss, pays the wages, gives instructions, does not like unions

Employee =does the job, takes the wages, accepts no responsibility

McGregor’s Theory X & Theory Y

During his research McGregor noticed twocontrasting styles of management (X & Y)

He argued that large firms tend tobe run on one of these totally opposite approaches

X y

Theory X & Theory Y

Employees are lazy, need to be supervised and do not like working

Management need to motivate lazy employee’s through incentives

Employee’s priorities are safety & security needs

Employee’s lack ambition so need to be motivated

Employee’s resist change & are easily influenced by others

Controller Approach

Theory X - Assumptions

Employee’s enjoy working & are willing to workas a result of positive management approaches

Employee’s are self-motivated, no need for supervision

Satisfying self-actualisation needs results in full commitment of staff

All workers should receive training Workers abilities are not fully utilised to

the benefit of the firm Facilitator Approach

Theory Y - Assumptions

Limitations of Theory X Strengths of Theory Y:

Reduced motivation High motivation

Less creativity More creativity

Poor reputation Better business reputation

Higher staff turnover Lower staff turnover

Reduced profitability More positive IR

Increased profitability

Strengths & Limitations of Theory X Theory Y

Theory X - Autocratic & dictatorial Theory Y - Democracy Theory X - Workers perceived in a poor light Theory Y – Workers perceived positively &

as a resource

How would you compare Maslow’s approach

to that of McGregor?

Theory X V’s Theory Y