Principles of Management, BBA, AIS, JU, 1st year 2nd semester

Team Point Blank

We Shoot For Excellence

Members Name: ID NO :
Fatema Tuz Zohra (L) 1766
Shakhawat Hossoin 1770
Sayada Mahmuda 1748
Kajal Mondal 1778
Priyonti Roy 1767
Md. Murad Hasan 1777
Aka Rani Roy 1749
Farjana Rahman 1763
Suranjana Zaman 1752
Israt Jahan Eva 1753
Meherubin Parash Moumita 1764
Theories of Leadership and Motivation
Introduction:
Leadership and motivation are two aspects of organisation that function simultaneously together.
Leadership is needed to direct a team towards a goal with guidelines while motivation is also a
must to keep the employees active and encouraged for the work. A leader does it both because
these two ways are how he achieves his goal using through his employees and their point of
interests.
So leadership and motivation is a chemistry which can take any difficult task to success.
Leadership without motivation is futile. If a leader keeps leading but does not motivate
employees, there will be time when the employees will stop working because their interests are
declining. Also if a leader keeps motivating but does not provide guidance, the organisation will
drift away from the goal. Leadership and motivation as a combination and both individually is
helpful in management sector whether it is in business or in the team; every individual possesses
leadership but the one who practices on the go become a perfect leader.
The main aspect of a leader is to consist a vision for the certain purpose. When a task or project
is taken over by a company the company searches for a leader who posses knowledge on the
project and vision how to develop the project, make use of colleagues and give the organization a
profit on it. A leader tends to influence the task to be continued and change to be taken place to
make the organization profitable.

There are several theories on leadership by great leaders some of them say that “leadership is an
action not position or person”. These theories help to prepare a perfect leader, all these theories
are proposed and practiced by great leaders and managers but latest management considers a
leader who follows his role.
 Leadership in Management

Definition:

Leadership is the action of leading a group of people or an organization to achieve a certain

goal.

The Importance of Leadership:

1. Leaders are able to inspire other individuals to achieve a high level of success
2. Leaders set the tone for their businesses or organizations
3. Central leadership is essential to ensure that everyone is on the same path
4. Leaders are needed in order to select the right people for the right jobs
5. Leaders act as spokespeople for their businesses and organizations
6. Leaders help to maintain the hierarchical flow of work.

Theories of Leadership:

Considering leadership reveals school of thoughts giving different leadership theories such as
Great Man theory, trait theory, behaviorist theory, situational leadership theory, contingency
theory, transactional theory and transformational theory.

1. The Great Man theory:

Great man theory is the first theory about leadership proposed before twentieth century where it
says that leaders are born with charismatic features of a leader like iconic heroism, courage,
faith, intellect, intuition etc. People with these natural attributes would generally be chosen as the
leader by everyone as they are to stand out from the crowd. The idea of a leader having to be a
man was held back then. This idea leads to the next theory, the trait theory.

2. Trait theory:
The trait theory rose from the concepts of the ‘Great Man ‘approach. This theory leads to
identification of the important characteristics of a successful leader. The people who got the
characters as defined by the traits approach are isolated or shortlisted and those are recruited as
leaders. This type of approach was mostly implemented in military and still used in some of the
area.
According to the trait theory the person who got the following skills is said to be a trait.

 Ambitious and success oriented

 Adaptable to all kinds of situations
 Co- operative to all the members in the organization
 Highly active or energetic
 Dominative
 Good decision making ability
 Self-confident
 Adaptable to stress conditions and
 Dependable.

These are the characters which make a person trait and they should posses some skills which are

 Technical Skills
 Intelligence
 Strong conceptuality
 Creativity
 Fluency in Communication
 Tactfulness
 Self motivation and self belief
 Socialising capability

When these kinds of skills and characters are identified in the person, the person is recruited in
the team as a potential leader.

3. Behavioural theory:
The trait study doesn’t give any conclusive result and it was hard to measure some more critical
issues such as honesty, integrity and loyalty. This leaded the attention to be diverted on to the
behavioral theories. The behavioral theory focuses on human relationship and success
performance as well.
According to behavioral theory the manager believes that the working environment should be
like an entertainment place where the expenditure of mental and physical efforts is treated to be
play and rest. The idea of manager is that an average person not only learns to accept but also
seeks responsibility. The people will automatically learn to exercise self-control and self
direction to achieve the goal or target. The organizational problems can become imaginative and
creative.

So basically this theory of leadership style emphasizes on the mental state maintenance of
employees more than the restricting over and over for course of actions.

4. Contingency theory model:

This theory illustrates that there are many ways for the manager to lead the team to get best
outcome. According to the situation the manager can find a best way to get the best outcome.

Austrian psychologist Fiedler worked on contingency theory according to that he looked for
three situations which define the condition of a managerial task.

 Leader and team member relationship

 Work structure or project structure
 Position and power

The manager should maintain relation with their team members to get along and create
confidence and make them feel free to think about the task and give their ideas to help the task to
be finished. Project structure is the job highly structured or unstructured or in between. Because
according to contingency theory, there is no best way to organize a company, instead it focuses
on the optimal course of action contingent upon the internal and external situation.

This theory rates the manager whether the manger is relationship oriented or task oriented. The
task oriented managers gets success in such situations where there is good leader and team
member relationship and structured projects or tasks doesn’t matter whether the position power
is weak or strong. And get success when the project is unstructured and does have any sort of
good vision by having a strong power and position. The variables which affect the task such as
environmental variables are combined in a heavy some and differentiated as favorable and
unfavorable situations. The task oriented management style depends on the favorable and
unfavorable environment variables but the relationship management style stays in the middle by
managing or changing the variables to accumulate with their style.

Both styles of managements get their sides to be successful when all the performance and team
work well in the tasks. There is no good or bad management in these two managements. Task
motivated management style leaders do best when the team performs well and they are good in
achieving good sales record and performance better than their competitor where as the
relationship oriented leaders are helpful to gain positive customer service and build a positive
image to the organization.

5. Transactional and Transformational Leadership Theory:

The transactional style of leadership was first described by Max Weber in 1947 and then
by Bernard Bass in 1981. This style is most often used by the managers. It focuses on the basic
management process of controlling, organizing, and short-term planning.

Leadership expert James McGregor Burns introduced the concept of transformational

leadership in his 1978 book, "Leadership." He defined transformational leadership as a process
where "leaders and their followers raise one another to higher levels of morality and motivation."

Implication:

Since the discussions started regarding leadership, over all these years numerous scholars have
found their own opinions on how to lead the way for a team. All this theories have their own
validation but also limitations. Because at the end, the situations of the modern world are
dynamic. Not always, a single theory is applicable. Most importantly, the leadership style
depends on the mentality of the employees, the overall picture of the team's personality. Without
studying the team as a whole, it is impossible to lead and handle them.
We know there are mainly 8 types of leadership:

1. Democratic leadership

2. Autocratic leadership

3. Laissez Faire leadership

4. Strategic leadership

5. Transformational leadership

6. Transactional leadership

7. Coach style leadership

8. Bureaucratic leadership

Democratic and autocratic leadership follows the contingency theory of leadership. Democratic
leaders focus on maintaining relationships with the employees and let them participate in
decision making for giving opinions to make them feel important and dedicated. Whereas
autocratic leaders are completely work and goal oriented and decision making is completely
centralized. ‘Laissez Faire' on the other hand seeks the behavioral theory. The leaders let the
employees be creative for mental exercise and set them free. Transformational leadership and
transactional leadership styles respectively follow the transformational leadership theory and
transactional leadership theory.

So we can clearly see that each leadership style is an outcome or a follower of each theory. There
is no fixed way defined as the best way to lead a team. Instead the best one depends on how the
whole team acts, what kind of leader they love to follow, what kind of leader with what traits
knows how to handle the employees and has enough intellect to work and take the team towards
the goal in the most effective way.
 Motivation in Management:
Definition:

Motivation is the process by which a person’s efforts are energized, directed, and sustained
toward attaining a goal.

Importance of Motivation:

 Puts human resources into action

 Improves level of efficiency of employees

 Leads to achievement of organizational goals

 Builds friendly relationship

 Leads to stability of work force

Theories of motivation:
The theories of motivation can be divided into 3 broad categories.

 Reinforcement theories – Emphasize the means through which the process of

controlling an individual’s behavior by manipulating its consequences takes place.

 Content theories – Focus primarily on individual needs – the physiological or

psychological deficiencies that we feel a compulsion to reduce or eliminate.
  Process theories – Focus on the thought or cognitive processes that take place within the
minds of people and that control their behavior.

Early Theories of Motivation:

 Hierarchy of Needs Theory

 Theory X and Theory Y
 Two-Factor Theory

Contemporary Theories of Motivation:

 ERG Theory
 Three-Needs Theory
 Cognitive Evaluation Theory
 Expectancy Theory
 Goal-Setting Theory
 Equity Theory

A. Early Theories of Motivation:

1. Hierarchy of Needs Theory:

Abraham Maslow hypothesized that within every human being there exists a hierarchy of five
needs:

1. Physiological.
2. Safety.
3. Social.
4. Esteem
5. Self-actualization.
Maslow then categorized these 5 needs into lower-order needs and higher-order needs. Lower-
order needs are needs that are satisfied externally: physiological and safety needs. Higher-order
needs are needs that are satisfied internally (within the person): social, esteem, and self-
actualization needs.

2. Theory X and Theory Y of Douglas McGregor:

Theory X and Theory Y are theories of human work motivation and management. They were
created by Douglas McGregor while he was working at the MIT Sloan School of Management in
the 1950s, and developed further in the 1960s.

Theory X is based on assumptions regarding the typical worker:

 This management style assumes that the typical worker has little ambition, avoids
responsibility, and is individual-goal oriented.

  Managers believe their employees are less intelligent, lazier, and work solely for a
sustainable income.

 Management believes employees' work is based on their own self-interest.

 Employees operate in this manner are more likely to use rewards or punishments as
motivation.

 Employees naturally dislike work and, whenever possible, will attempt to avoid it.

 Since employees dislike work, they must be coerced, controlled, or threatened with
punishment to achieve goals.

 Employees will avoid responsibilities and seek formal direction whenever possible
Theory Y organizations also give employees frequent opportunities for promotion:

 This style of management assumes that workers are:

 Happy to work on their own initiative.
 More involved in decision making.
 Self-motivated to complete their tasks.
 Enjoy taking ownership of their work.
 Seek and accept responsibility, and need little direction.
 View work as fulfilling and challenging

3. Two-Factor Theory:
According to Herzberg, the factors leading to job satisfaction are dividing and distinct from those
that leads to job dissatisfaction. Hygiene factors include factors such as: company policy and
administration, supervision, interpersonal relations, working conditions, and salary. These are
factors that do not create any positive effect on the workers, but if any of this are missing or not
provided at a fair value, it creates a massive turnover and demotivation and work flow declines
very quickly. Hygiene factors are treated as the prime factors which are a much.

Motivator factors include factors such as: attainment, recognition, the work itself, responsibility
and growth. These are factors that do not create negative impact with its absence but enhances
the work outcome by satisfying folds when provided. Motivator factors as per the name are not
absolutely needed but helps to increases the speed of the working process and the dedication of
the workers.

 Hygiene Factors

o Company rule and management;

o Supervision;
o Association with supervisor;
o Work circumstances;
o Salary;
o Relationship with peers;
o Personal life;
 o Association with subordinates;
o Status;
o Safety

 Motivator Factors:

o Attainment;
o Rewards;
o credit;
o Work itself;
o Responsibility;
o Progression;
o Growth;

Comparison of Early Theories of Motivation:

In Maslow's hierarchy, individuals move up the hierarchy of needs (physiological, safety, social,
esteem and self- actualization) as needs are substantially satisfied. A need that substantially
satisfied no longer motivates.

A theory X manager believes people don't like to work or won't seek out responsibility. So they
have to be threatened and coerced to work. A theory Y manager assumes people like to work and
seek out responsibilities. So they will exercise self-motivation and self-direction.

Herzberg’s theory proposed that intrinsic factors associated with job satisfaction where what
motivated people. Extrinsic factors associated with job dissatisfaction simply kept people from
being dissatisfied.

Three -needs theory proposed three acquired needs that are major motives in work: need for
achievement, need for affiliation, and need for power.

4. Z theory :
Theory Z of Ouchi is Dr. William Ouchi's so-called "Japanese Management" style popularized
during the Asian economic boom of the 1980s.

For Ouchi, 'Theory Z' focused on increasing employee loyalty to the company by providing a
job for life with a strong focus on the well-being of the employee, both on and off the job.
According to Ouchi, Theory Z management tends to promote stable employment, high
productivity, and high employee morale and satisfaction. This theory is basically a combination
of the American and Japanese theories and ideas and creating a better motivational model for the
employees.

B. Contemporary Theories of Motivation:

1. ERG Theory:
ERG Theory proposed by Clayton Alderfer of Yale University: Alderfer fights that there are
three groups of core needs:

 Existence

 Relatedness
 Growth

Existence group is worried with providing our basic material existence requirements.
Relatedness group is the desire we have for maintaining important interpersonal relationships.

2. Three- Needs Theory:

McClelland’s theory of needs focuses on three needs:

 Achievement
 Power
 Affiliation

This theory states how man’s need for these three things affects the managerial context and
shapes the motivational factors towards the workers.
 3. Cognitive Evaluation Theory:

Allocating extrinsic rewards for behaviour that had been previously intrinsically rewarded tends
to decrease the overall level of motivation. (This concept was proposed in the late 1960s.)The
interdependence of extrinsic and intrinsic rewards is a real phenomenon.

4. Expectancy Theory:

The most comprehensive explanation of how employees are motivated is Victor Vroom’s
expectancy theory. Although the theory has its critics, 51 most research evidence supports it.

Expectancy theory states that an individual tends to act in a certain way based on the expectation
that the act will be followed by a given outcome and on the attractiveness of that outcome to the
individual. It includes three variables or relationships.

 Expectancy or effort–performance linkage is the probability perceived by the individual

that exerting a given amount of effort will lead to a certain level of performance.
 Instrumentality or performance–reward linkage is the degree to which the individual
believes that performing at a particular level is instrumental in attaining the desired
outcome.
 Valence or attractiveness of reward is the importance that the individual places on the
potential outcome or reward that can be achieved on the job. Valence considers both the
goals and needs of the individual.

5. Goal-setting theory:
Specific and difficult goals lead to higher performance. Feedback leads to higher performance
than non-feedback. In addition to feedback, 2 other factors have been found to influence the
goals-performance relationship.

These are:

 Goal commitment.
 Sufficient self-efficacy.
 6. Equity Theory:

Individuals make comparisons of their job inputs and outcomes relatives to those of others and
then act in response so as to remove any inequities’. Stacy Adams proposed that this negative
tension state provides the motivation to do something to correct it.

There are 4 referent comparisons that employee can use:

o Self-inside.
o Self-outside.
o Other – inside.
o Other – outside

Comparison of Contemporary theories of motivation:

Goal-setting theory says that a specific goals increase performance, and difficult goals, when
accepted, result in higher performance than easy goals. Important points in goal-setting theory
include intention to work toward a goal as a major source of job motivation; specific hard goals
that produce higher levels of output than generalized goals; participation in setting goals as
preferable to as assigning goals, but not always; feedback that guides and motivates behaviour,
especially self- generated feedback; and contingencies that affect goal setting - goal
commitment, self -efficacy, and national culture. Reinforcement theory says that behaviour is a
function of its consequences. To motivate, use positive reinforcers to reinforce desirable
behaviours. Ignore undesirable behaviour rather than punishing it.

Job enlargement involves horizontally expanding job scope by adding more tasks or increasing
how many times the tasks are done. Job enrichment vertically expands job depth by giving
employees more control over their work. The job characteristics model says five core job
dimensions (skill variety, task identity, task significance, autonomy and feedback) are used to
design motivating jobs. Another job design approach proposed looking at relational aspects and
proactive aspects of jobs.

Equity theory focuses on how employees compare their inputs-outcomes ratios to relevant
other ratios. A perception of inequity will cause an employee to do something about it.
Procedural justice has a greater influence on employee satisfaction than distributive justice

Expectancy theory says an individual tends to act in a certain way based on the expectation that
the act will be followed by a desired outcome. Expectancy is the effort-performance linkage
(how much effort do I need to exert to achieve a certain level of performance); instrumentality is
the performance-reward linkage (achieving a certain level of a performance will get me a
specific reward); and valence is the attractiveness of the reward (is it the reward that I want).

Implication:

Like leadership theories are based on how a manager or leader acts and the traits are likewise
discussed, motivation is a subject fully based on the employees' interests. Motivation is the use
of the general interest of the workers, influencing them with rewards and other need fulfilments
to get them accomplish the desired goal of the company. As there are lot of theories about it each
theory applies for each kind of working groups. Because their general interests and needs vary.
The biggest example is the difference of the need of the white collar employees and blue collar
employees. White collar employees are suit-tied office workers with less physical labour while
blue collar employees are the direct physical labourers of the least level management. The basic
want of survival with lack of will to work of a Garment worker will never be the same as that of
a degree holding corporate officer or job holder. A leader will never use the same factors to
motivate these two types of workers.

So the implementation of motivation and its theories are based on the study of what kind of set of
employees a manager works with, what their general level of need is.

Conclusion:
The change in the leadership theories time by time says that the leader should posses certain
characters which lead the organisational success whether to believe in maintaining a relationship
or to go on tactically the manager or the leader should act to the situation and get success at the
end. Depending on the companies motive the leader should react or behave with the team
members to achieve the target. Usually maintaining a good relation helps to make the team
members life easy and manage the work happily. The team members become more innovative
and achieve targets easily where as with tactical style leadership may create some sort of
pressure on the team members, there is no guarantee that in every situation relational ship
management is successful. The leader should adapt himself for the situation and act according to
a particular situation. We have discussed above only a collection of the motivation theories and
thoughts of the various proponents of management .In some of the theories and opinion
presented, however, one can observe some ‘glimpses’ of the person and how, perhaps, he or she
could be motivated. This is satisfying in itself. But, as noted earlier, practice has been in advance
of theory in this field, so let us now move to the realistic side of management of human
behaviour and motivation in the workplace. Leading is handling and directing the employees
while motivating is the leader using their wants to make them achieve the organisational goal.
These two functions combined are completely based on optimisation of the staff/human
resources in the best way possible along with other available resources to gain organisational
goal as a whole.