MGT12 REVIEWER (finals)
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 LEADING
MOTIVATION
- The force energizing or giving
direction to behaviour.
- An internal force – cannot be
directly measured but we can infer
motivation by watching their
behaviour
NEED THEORIES
- Argue that we behave as we do due
to the internal needs we attempt to
fulfil
 Hierarchy-of-needs Theory
- Abraham Maslow
- Argues that the needs of an
individual form a five-level
hierarchy: physiological, safety,
belongingness, self-esteem, self-
actualization
 Two-factor Theory
- Frederick Herzberg
- Interviewed accountants and
engineers and described situations
where they felt very good or
satisfied about their jobs (job
content) and some where they felt
very bad (job context).
- Job content = motivators
(achievement, responsibility, work
itself, recognition, growth and
development)
- Job context = hygiene factors (pay,
fringe benefits, company policies,
working conditions, supervisors)
- Argues that hygiene factors keep
workers from feeling dissatisfied,
while motivators help workers feel
satisfied and motivated.
 ERG Theory
- Clayton Alderfer
- Name comes from Maslow’s five
needs levels into three - Existence
needs, Relatedness needs, Growth
needs
- Incorporates a satisfaction-
progression principle, satisfaction of
one need allows concern with the
- Also frustration-regression principle
– if we become frustrated trying to
satisfy a higher-level need our
concern about that need may cease
- Overall message is the same as
Maslow’s for managers – determine
the needs subordinates try to satisfy
at work, ensure they receive
outcomes satisfying those needs
when they perform well, and so help
the organisation reach its goals
 Acquired-needs Theory
- David C. McClelland
- Argues that our needs are acquired
or learned through experience
- Studied three needs using Thematic
Apperception Test (TAT) –
achievement, affiliation, and power.
- Need for achievement (nAch) – the
desire to accomplish moderately
challenging tasks, take calculated
risks, and achieve excellence in
one’s work, avoid very difficult goals
due to high risk of failure
- Need for affiliation (nAff) – the
desire to have warm, friendly
relationships with others, these
individuals tend to work in
profession demanding interactions
with others such as health care,
teaching, sales, and counselling
- Need for power (nPow) – the desire
to influence others and control one’s
environment as a significant
organisational motivator
o Personal power – try to
dominate others, expect
followers to be loyal to them
not to the organisation
o Institutional power – work
with others to solve
problems, want things done
in an organised way, can
sacrifice some of their own
goals for the organisation
- McClelland suggests that those with
a high institutional-power need
make best managers
ASSESSING NEED THEORIES
Maslow Alderfer Herzberg
Physiological
Safety and existence
security hygiene
Belongingness relatedness
and love
Self-esteem
Self- growth motivators
actualisation
COGNITIVE THEORIES
- Also called process theories as they
focus on the thought processes of
motivation
- Attempt to isolate thinking patterns
used in deciding whether or not to
act in a certain way
 Expectancy Theory
- Proposed by Victor H. Vroom
- Argues that in deciding whether to
exert any effort, we consider three
elements – (E-P), (P-O), and valence
- Effort-performance expectancy (E-P)
o we assess the probability our
efforts will lead to, our
abilities, and resource
availability to the required
performance levels
- Performance-outcome expectancy
(P-O)
o we assess the probability
successful performance will
lead to particular outcomes
such as rewards (bonus,
promotions, or feeling of
accomplishment) and also
possible negative results
(loss of leisure time or family
disruption due to extra
hours)
o extrinsic rewards – rewards
provided by others, bonuses,
awards or promotions
o intrinsic rewards – rewards
related to our internal
experiences with successful
performance such as feelings
of achievement, challenge,
and growth
- Valence
o we assess the anticipated
value of various outcomes
McClelland o if available rewards interest
us, then valence is high
Need for
o negative outcomes such as
affiliation loss of leisure time or family
Need for
achievement; disruption may offset the
need for
power reward value in a situation
o available rewards will
motivate only when we
attach a high overall valence
to the situation
 Equity Theory
- J. Stacy Adams
- According to the theory, we prefer
situations of balance, or equity,
which exist, when we see our inputs:
outcomes ratio to be equal to that
for a comparison other (or others)
- Inputs = educational background,
skills, experience, hours worked, and
performance results
- Outcomes = issues of pay, bonuses,
praise, parking places, office space,
furniture, and work assignments
- Under-reward
o when our inputs:outcomes
ratio is seen to be less than
that of a comparison other
o these are harder to resolve
- Over-reward
o Inputs:outcomes ratio is seen
to be greater than of a
comparison other
o We adjust to over-rewards
conditions quickly
- Managers must maintain good
communication so they know their
subordinates’ equity perceptions
 Goal-setting Theory
- It works by focusing attention and
action, mobilising effort, increasing
persistence, and encouraging
development of strategy to achieve
goal.
- Feedback on results is also essential
- Must be specific and measurable,
challenging, attainable, relevant to
the organization’s work, and time
limited
 - Goal commitment, attachment to or
determination to reach a goal is
important to goal setting
ASSESSING COGNITIVE THEORIES
 Expectancy theories
o advises managers to help
employees develop positive
views of effort-performance
expectancy by means of
training and encouragement
o highlights the value of clear
links between performance
and outcomes, as well as the
need to offer employees
rewards with positive
valence
 Goal-setting theory
o Fits with expectancy theory
as it helps pinpoint
performance levels
associated with effort-
performance and
performance- outcomes
expectancies
 Equity theory
o Influence individual
assessment of the value of
maintaining equity in
motivation
REINFORCEMENT THEORY
 reverse of cognitive theories and is
not concerned with an individual’s
thought processes to explain
behaviour
- Operant Conditioning or
Behaviourism Theory
o B.F. Skinner
o Behaviour can be explained
by environmental
consequences, and there is
no need to look for cognitive
explanation
o Relies on the concept of law
of effect – states that
behaviours with pleasant or
positive consequences are
more likely to be repeated
than those with unpleasant
or negative consequences
- The way reinforcement works is that
a stimulus cues a response or
behaviour, followed by a
consequence
- Using reinforcement theory
techniques is behaviour
modification
- Types of Reinforcement
- Positive and negative
reinforcements aim to increase a
behaviour, while extinction and
punishment focus on decreasing it
- Positive Reinforcement
o Aimed at increasing desired
behaviours which includes
pleasant, rewarding
consequences such as praise,
a pay rise, or time off
o As individuals do not carry
out a new behaviour as
required, managers
encouraged new behaviours
by shaping – successive
rewarding of behaviours
closely approximating the
desired response until the
actual desired response is
made
- Negative Reinforcement
o Focuses on increasing
desired behaviour through
reinforcing negative or
unpleasant stimuli (nagging,
threats) so an individual will
engage in the desired
behaviour to stop the stimuli
o Produces an unpleasant work
environment and possible a
negative organisation culture
o Also foster immature
behaviour
- Extinction
o Involves stopping previously
available positive outcomes
from a behaviour to decrease
the behaviour
- Punishment
o Providing negative
consequences to decrease or
discourage a behaviour
 o Differs from negative
punishment as punishment
aims to decrease an
undesirable behaviour while
negative reinforcement aims
to increase the desirable
behaviour.
o Also, punishment is applied
after the undesirable
behaviour is shown while
negative reinforcement
occurs before they display a
desirable behaviour
SCHEDULES OF REINFORCEMENT
- Specify positive reinforcement’s
basis and timing
- Continuous reinforcement
o Behaviour desired is
rewarded when it occurs
o Becomes impractical
- Partial reinforcement
o Desired behaviour is
rewarded sometimes
o Fixed interval – reinforcers
are given on a fixed time
schedule, assuming the
desired behaviour has
occured
o Fixed ratio – reinforcers are
given after a fixed number of
cases of desired behaviour,
not on a fixed time schedule
o Variable interval – a
reinforcer is given on
variable, or random, time
schedule which averages out
to a specific frequency
o Variable ratio – a reinforcer
comes after varying or
random frequency of desired
behaviour so the
reinforcement pattern
averages out to a specified
ratio of events per
reinforcements
SOCIAL LEARNING THEORY
- Albert Bandura
- Argues that learning occurs by
continuous interaction between our
behaviours, personal factors, and
environmental forces
- Individuals influence their
environment, which affects how
they think and behave
- Major Components
o Symbolic processes – the
ways we use verbal and
imagined symbols to process
and store experiences (words
and images) guiding future
behaviours
o Vicarious learning – or
observational learning is our
ability to learn new
behaviours and/or assess
outcomes by observation
o Self-control – or self-
regulation is the ability to
exercise control over our
own behaviour by setting
standards and providing
consequences for our own
actions
HOW LEADERS INFLUENCE OTHERS
- “Nobody has as much power as you
think they do.” – Katharine Graham
Sources of Leader Power
 Power – the capacity to affect
other’s behaviour
- Legitimate Power – comes from a
position’s place in the managerial
hierarchy and the authority vested
in the position (when accepting a
job, the immediate boss will direct
you to a work)
- Reward Power – the ability to
control and provide valued rewards
to others (e.g. a manager giving
rewards such as pay rise, bonuses,
promotions, positive feedback,
better office, time off)
- Coercive Power – the ability to
punish others if they do not display
desirable behaviours (e.g. criticisms,
reprimands, suspensions, warning
letters, negative performance
appraisal, demotions, withheld pay
raise, termination)
- Expert Power – possession of
expertise valued by others which are
needed for the success of others
(e.g. managers having considerable
knowledge, technical skills, and
experiences that are critical to
subordinate’s success)
- Information Power – having access
to and control over distribution of
information about organisational
operations and future plans
(managers usually have more access
on information and have discretion
over how much is given to
members)
- Referent Power – being admired,
personally identified with, or liked
by others (when we like a person,
want to be like them, or feel
friendship toward them, we tend to
follow their directions and exhibit
loyalty toward them)
Effective Use of Leader Power
- Subordinates may react to a
direction with commitment,
compliance, or resistance
- Commitment = employees respond
with enthusiasm, working hard
toward organisational goals
- Compliance = employees give
minimal effort to give average, not
outstanding, performance
- Resistance = employees do comply
but do an absolute minimum, even
try to sabotage organisational goal
attainment
- Likely subordinate reaction to power
source
Resistance Compliance Commitment
Power Coercion Legitimate Referent
source Information Expert
Reward
- Empowerment
o Important aspect of power
use
o Subordinates assume some
leadership responsibility and
authority
o Managers who empower
subordinates develops
subordinates’ ability to make
good decisions, as well as
guiding, coaching, and
inspiring subordinates
o This aids leadership in
several ways:
o Increased managerial ability
to get things done with
support and help from
subordinates who have
special work knowledge
o Increased worker
involvement, motivation, and
commitment
o Increased opportunity for
managers to concentrate on
significant issues
SEARCHING FOR LEADERSHIP TRAITS
- Traits = distinctive internal qualities
or characteristics of an individual
such as physical, personality, skills
and abilities, and social factors
 - Behaviour
- Army psychologists used trait
approach to identify traits
distinguishing effective leaders from
nonleaders but it is still uncertain
whether a set of traits, if identified,
would predict leadership
- Recent leadership research looks at
leader behaviours
IDENTIFYING LEADER BEHAVIOURS
 Iowa and Michigan Studies
- Kurt Lewin
- Considered three leader behaviours
or styles:
- Autocratic
o Make unilateral decisions,
dictate work methods, limit
worker knowledge of goals
to the next step, and give
punitive feedback
- Democratic
o Involve the group in decision
making, let them decide on
work methods, make overall
goals known, and use
feedback for coaching
- Laissez-faire
o Personally give the group
complete freedom , provide
needed materials, participate
only to answer questions,
and avoid giving feedback
o They do very little and let the
workers do everything
- Results:
o Groups with lassez-faire
leaders underperformed
o Quantity of work was equal
in groups with autocratic and
democratic leaders
o Work quality and group
satisfaction was higher in
democratic groups
o More research produced a
managerial dilemma
o While a democratic
leadership produced more
satisfied subordinates, it was
not always accompanied by
better or equal performance
o Robert Tannenbaum and
Warren H. Schmidt – leader
behaviours continuum
 Shows leadership
behaviour gradations,
ranging from an
autocratic (boss-
centered) approach
on the left to a
democratic
(subordinate-
centered) approach
on the right.
 Managers must be
flexible in their leader
behaviour depending
on the situation
o Employee-centred approach
– leaders build effective work
groups dedicated to high
performance goals
o Job-centred approach or
Production-centred approach
– leaders divide work into
routine tasks and closely
supervise workers, ensuring
specified methods are
followed and productivity
standards met
 Ohio Studies
- Initiating Structure
o the degree to which a leader
defines their own role and
those of subordinates in
achieving unit goals
o includes planning, organising,
and directing and focuses
mainly on task issues
o similar to the job-centred
leader behaviour
- Consideration
o the degree to which a leader
builds mutual trust with
subordinates, respects their
ideas, and shows concern for
their feelings
o this type of leader is friendly
to subordinates, maintains
good two-way
communications, and
 encourage participation in
decision making
o similar to the employee-
centred leader behaviour
- Two-Dimensional Approach
o Led to the idea a leader
could emphasise task issues
and also produce high
subordinate satisfaction
levels by exhibiting
consideration behaviour at
the same time
o The idea of the great high-
high leader was later viewed
as a myth because the
studies were too simplistic

 The Leadership Grid

- Blake and McCanse
 Managing Diversity

DEVELOPING SITUATIONAL THEORIES

 Fiedler’s Contingency Model
 Normative Leadership Model
 Situational Leadership Theory
 Path-Goal Theory

PROMOTING INNOVATION:
TRANSFORMATIONAL LEADERSHIP

ARE LEADERS NECESSARY?

 Substitutes for leadership
 Leadership and the organisational
life cycle