Leadership

Dr. Aye Thu Htun

Professor
Dept. of Commerce
Yangon University of Economics

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Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.
 Learning Objectives
After the presentation, you should know:
• To understand why do we learn management and
leadership
• To describe the management versus leadership
• To discuss the relationship between management and
leadership
• To explain the different source of power between
manager and leader
• To describe the characters of a leader

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 The Business World Today

• Constant change!

– Globalization

– Technology

– Competition

– Diversity

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Why We Need to Learn Management and
Leadership

What is Organization?
An organization is a group of individuals who work together

toward common goals.

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 Types of Organization

• Profit-seeking organizations

• Non-profit seeking organizations

– Government
– Ministry of Education
– Ministry of Health Care
– Religious
– Social

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 Performance of Organizations

• Depends on

• Attitudes

• Perceptions

• Behavior of individual members in that

organization.

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 The Definition of Management

• Management is the attainment of

organizational goals in an effective and
efficient manner through planning,
organizing, leading, and controlling
organizational resources

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 What is your personal style?
Sr. No. Statement Mostly Mostly
True False
1 I am a modest, unassuming person.
2 When a part of a group, I am more concerned
about how the group does than how I do.
3 I prefer to lead with quite modestly rather than
personal assertiveness.
4 I feel personally responsible if the team does
poorly.
5 I act with quite determination.
6 I resolve to do whatever needs doing to produce
the best result for the group.
7 I am proactive to help the group succeed.
8 I facilitate high standards for my group’s
performance 9
 Scoring and Interpretation
 One point for

• each item marked Mostly True

• Humility: items 1,2,3,4

• Will: item 5,6,7,8

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 Scoring and Interpretation

• Humility: a quiet, modest, self-effacing manner

• Will: a quiet but fierce resolve to achieve the

group’s outcome and to help the group succeed

• If score 3 or 4 on either humility or will, ordinary

people often make excellent leaders

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 Leadership

The ability to influence people toward the

attainment of organizational goals.
Leadership is reciprocal, occurring among
people.
Leadership is a “people” activity, distinct from
administrative paper shuffling or problem-
solving activities.

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 What is the impact of leadership?
Sr. Statement Mostly Mostly
No. True False
1 The quality of leadership is the most important influence on
the performance of an organization.
2 People in top-level leadership positions have the power to
make or break an organization.
3 Most activities in an organization have little to do with the
decisions or activities of the top leader.
4 Even in a bad economy, a good leader can prevent a
company from doing poorly.
5 A company cannot do well unless it has high quality
leadership at the top.
6 High versus low quality leadership has a bigger impact on a
firm’s performance than the business environment
7 Poor organizational performance is if often due to factors
beyond the control of even the best leader.
8 Eventually bad leadership at the top will trigger poor
organizational performance.
9 Leaders typically should not be held responsible for a firm’s 13
poor performance.
 Scoring and Interpretation
One point for

• each item 1, 2, 4 ,5, 6 & 8 marked as Mostly

True

• Each item 3, 7, & 9 marked as Mostly False

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 Scoring and Interpretation
A score of seven or higher suggests belief in
leaders that have more control over
performance outcomes

If three or less, underestimate the impact of

leader

If four to six suggests a balanced view of

leadership

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 From Manager to Leader
• Good management is essential to organizations, but good
manager must be leaders

• Management promotes stability, order and problem solving

• Leadership motivates towards vision and change

• Leadership cannot replace management, there should be a

balance of both

• Good management Meet current commitment

• Good leadership Moves into the future

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“If You Do The Right Things, Right People
Will Follow You”

Mitch Sala

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LEADERSHIP IS INFLUENCE

A LEADER
Knows The Way
Goes The Way
&
Shows The Way
A Leader is a Dealer of HOPE
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 Leaders are Effective When:

 The group achieves its goals

 Internal processes are smooth

 The group can adapt to external forces

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 Leadership versus Management
Management Power:
comes from organizational structure, it
promotes stability, order, and problem solving
within the structure
Leadership Power:
comes from personal sources, such as personal
interests, goals, and values
promotes vision, creativity, and change
The major difference between the leader and the
manager relates to their source of power
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 Power
The potential ability to influence others’ behavior

Sources of Power
 Legitimate Power: power coming from a formal management
position.
 Reward Power: stems from the authority to bestow rewards on
other people.
 Coercive Power: the authority to punish or recommend
punishment.
 Expert Power: leader’s special knowledge or skill regarding the
tasks performed by followers.
 Referent Power: personality characteristics that command
subordinates’ respect, and admiration so they wish to emulate
the leader 22
The Key To The Leadership

Priorities

The discipline to prioritize and

ability to work towards a stated
goals are essential to a leader’s
success

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 The Most Important Ingredient of
Leadership
Integrity

Integrity means living it myself before

leading others

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 The Ultimate Test of Leadership

Creating Positive Change

A leader is a change agent

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 The Laws of Change

Change is Inevitable
People Resist Changes

All Changes May Not Bring Positive

Development
But, No positive development is possible
without changes 26
 Commitment

Commitment Starts in the Heart

Commitment is Tested by Action

It Opens the Doors to Achievement

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 When it comes to commitment, there are
really four types of people

Cop –outs : People who have no goals and do not commit

Holdouts : People who do not know if they can reach their

goals, so they are afraid to commit
Dropouts : People who start towards a goal but quit when
the going gets tough

All-outs : Leaders who Set Goals, Commit to them,

and Pay the Price to reach them

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 Communication

Communicators take something complicated and make

it simple.

It is not so much what you communicate but how you

communicate that counts.

The objective of effective communication is to get the right

information at the right time to the person who needs it.

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Tips For Right Communication

Simplify Your Message

Focus on the people

Believe and Live what you say

Seek a Response

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 Vision

The Future Belongs to Those Who See

Possibilities Before They Become Obvious

What You See is What It Can Be

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Some People Never See It –They are Wanderers

Some People See It but Never Pursue It On Their Own

– They are Followers

Some People See It and Pursue It - They are

Achievers

Some People See It, Pursue It and Help Others –

THEY ARE LEADERS
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 Positive Attitude

If You Believe You Can, You Can

A Leader is One Who Can Lay a Firm

Foundation With The Bricks Others Have
Thrown At Him

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 Leader is always
• Take responsibilities
• Take ownership
• Pay the price
• Solve problem
• Look for possibilities
• A doer
• A learner
• A server
• A giver
• A dreamer
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 Discussion Question
I. Suggest the source of power that would be
available to a leader of a government
organization. What sources of power may be
available? To be effective, should the leaders
keep power to themselves or delegate power to
other people?

II. What did you learn about leadership?

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Leadership and
Motivation

Dr. Aye Thu Htun

Professor
Dept. of Commerce
Yangon University of Economics
• Leadership is a social influence process.

• Leadership is the ability of an individual to influence,

motivate, and enable others to contribute towards
effectiveness and success of the organization.

• It involves a leader and followers.

• Leadership and motivation are the two elements that affect

individuals’ performance at work.

• Leaders can use to create motivating environments for their

followers.
 Motivation:

“Willingness to do something”

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Motivation is the process
of stimulating people

to actions to accomplish
the goals.
 Motivation is important to
an individual as:
1. Motivation helps achieve personal goals.
2. Motivated employee has job satisfaction.
3. Motivation helps in self development
of an individual.
4. Motivation creates a dynamic team and
members stand to gain working in
such a team.
 Motivation is important to
a business as:
1. More motivated the employees, the more empowered
the team is.
2. The more is the team work and individual employee
contribution more successful and profitable is the
business.
3. During periods of amendments, there will be
more adaptability and creativity.

4. Motivation leads to optimistic and challenging

attitude at work place.
The process of motivation consists of three stages:
A felt need or drive.
A stimulus in which needs have to be aroused.
When needs are satisfied, the satisfaction or
accomplishment of goals.
(1) Taylor’s Scientific Management

• Taylor had a simple view about what motivated

people at work: MONEY.

• Taylor maintained:

 main form of motivation - wages

 manager’s job – tell workers what to do and how.

 worker’s job – do what is told.

(2) Mayo’s Human Relations Approach

• Mayo believed that monetary incentives and good working

conditions are less important to the individual than the need
to belong to a group.

• Workers are best motivated by better communication, more

managerial involvement and working in teams.

• Good communication improves workers’ self esteem and

confidence, increases efficiency, productivity and healthy
working relationships.
(3) Maslow’s Hierarchy of Needs

• Maslow’s hierarchy of needs theory helps the

manager to visualize employee motivation.

• It helps in understanding the motivations and

needs employees have and the requirement to
satisfy basic needs in order to achieve higher-level
motivation.
 Self-Actualization
Needs
represent the need for
self-fulfillment
Esteem Needs
desire for a positive self-image and to
receive attention
Belongingness Needs
desire to be accepted by one’s peers
Safety Needs
safe and secure physical and emotional environment
Physiological Needs
most basic human physical needs

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(4) Herzberg’s Two Factor Theory
– Job satisfaction and job dissatisfaction are created by
different factors.

• Hygiene factors: extrinsic (environmental) factors

that create job dissatisfaction.

• Motivators: intrinsic (psychological) factors that

create job satisfaction
Area of Satisfaction

Achievement
Recognition Motivators Motivators
Responsibility
Work itself
influence level
Personal growth
of satisfaction.

Area of Dissatisfaction

Working conditions
Hygiene
Pay and security Hygiene factors
Factors
Company policies influence level
Supervisors of
Interpersonal dissatisfaction.
relationships

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(5) McGregor’s Theory X and Theory Y
McGregor’s Theory X

• Employees are inherently lazy and will avoid work.

• They dislike work

• Hence workers need to be closely supervised

• Only monetary incentives would make employees work

• Beliefs in this theory lead to mistrust, highly restrictive

supervision and punitive atmosphere.
McGregor’s Theory Y
• Employees may be ambitious, and self motivated

• They enjoy their physical and mental work duties.

• For them, work is as natural as play.

• They possess creative ability needed for problem

solving.

• Managers holding this theory create atmosphere of

trust for human resource development
Monetary Factors
• Bonus
• Incentives
• Time-rate pay
• Piece-rate pay
• Commission
• Performance related pay
• Shares
• Pension
Non-Monetary Factors
• Status or Job Titles
• Appreciation and Recognition
• Empowerment
• Working Conditions
• Job Security
• Job Enrichment
• Job Enlargement
• Empowerment

• Giving Meaning to Work

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 • Delegation of power or authority to subordinates.

Four Empowering Elements

1. Employees receive information about company performance

2. Employees have knowledge and skills to contribute to

company goals

3. Employees have the power to make substantive decisions

4. Employees are rewarded based on the company

performance
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  Know your people

 Use right kind of rewards

 Develop positive expectation

 Minimize frustration
 Sense of personal contribution/ownership

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• Leadership is the ability of an individual to influence,
motivate, and enable others to contribute towards
effectiveness and success of the organization.
• Motivation is a key component of leadership.
• “how public managers can motivate people… to work
energetically and intelligently towards achieving
organizational goals,”
• By understanding theories of motivation, leaders can
shape employee motivation to achieve organizational
goals.
• Leaders can aid the process of development of motivation
by displaying positive behaviours.
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