Chapter Five

DIRECTING FUNCTION
 LEADERSHIP
 Meaning and importance of directing
 The concept and nature of leadership
 Leaders & leadership
 Fundamental principle of leadership
 learning to lead effectively
Leadership effectiveness
 Leadership theories & Leadership styles:
Motivation & communication
 Meaning & nature of motivation
 Motivation theories
1
 DIRECTING FUNCTION
After discussing the chapter, you will be able to:
Mention the meaning & importance of directing
Define leaders & leadership
Explain why managers should be leaders
Describe leadership effectiveness
Discuss early leadership theories
Explain contingency theories of leadership
Explain the styles of leadership
Identify contemporary views on leadership
Describe leadership issues in the 21st century
Comprehend communication & motivation in
organization
2
 DIRECTING FUNCTION

Meaning & importance of directing

 In this unit, the terms directing & leading can be used
interchangeable
Definition
 Leading is the management function aimed at setting organization’s
members move in the direction that will achieve its objectives
 Leading is placing oneself before the group, facilitating progress &
inspiring followers to accomplish organizational objectives
 Therefore, directing or leading
 is building a climate that provides leadership & arranges the
opportunity for motivation
Is not deriving or pushing from behind

3
 DIRECTING FUNCTION
The importance of directing/leading
 Directing/leading is an important function of
management
 Accordingly, managers should be good leaders
 This is b/c organizations will never be successful unless
they have effective leaders
 Effective leaders are those who create conducive
environment in the organization
 Some of the importance of the directing function:
 Initiate actions by giving directives & guidance to employees
 Integrates employees’ effort by coordinating their actions to
attain organizational objectives
 Attempts to get the maximum output from employees by fully
utilizing their potentials 4
 DIRECTING FUNCTION
Importance of directing /leading
 In general, directing enables subordinates to contribute their
best to attain the goals of the organization
 In order to employees contribute towards organizational goal
attainment managers
 Should try to integrate both organizational & individual
objectives
 Must be good leaders (providing effective leadership)in guiding,
counseling & influencing subordinates
 Should win subordinates confidence & acceptance
 Note: whatever amount of capital invested & technology
an organization has, without effective leadership the
organization will not be successful
5
 DIRECTING FUNCTION
The Concept & nature of leadership
 Thousands of studies have been conducted to know about
the nature of leadership
 However, there is still a great deal we do not know
 Though leadership is broad enough researchers have
focused on two important issues:
 Why some organizational members become leaders
while others do not?
 Why some leaders are successful while others are not?
 Exercise:
 Why leadership is so important?
 Ideally, all managers should be leaders. discuss
6
 DIRECTING
Why leadership isFUNCTION
so important?
 When groups or organizations:
 Are successful their leadership receives too much credit
 Fail their leadership gets too much of the blame
 Nevertheless, leaders make a difference, & leadership is a critical
variable in shaping organizational effectiveness
 Leaders can make a difference in terms of relevant and results:
 Performance & goal attainment
 Individual growth & development
Do all managers should be leaders?
 Ideally, all managers should be leaders
 To answer the question, you have to identify the main functions of a
manager?
Leaders & leadership
 Leader is someone who can influence others & who has managerial
authority
 Leadership is what leaders do: the process of influencing a group to
7
achieve goals
 DIRECTING FUNCTION
Leaders & leadership
 Note; although groups may have informal leaders who emerge, those
are not the leaders we are focusing
 Leadership is the ability of an individual to influence, motive &
enable others to contribute toward the effectiveness & success of the
organization (House et al., 1999)
 Leadership is the process of influencing others to facilitate the
attainment of organizational relevant goals (Ivancevich, 1999,p.409)
 Leadership is both a process & a property (Heiftz & Lauries,
1997:124)
 As a process leadership is the use of non-coercive influence to:
 Shape the group’s or organization’s goals.
 Motivate behavior toward the achievement of those goals
 Help define group or organization culture
 As a property leadership is the set of characteristics attributed to individuals who
8
perceived to be leaders
 DIRECTING FUNCTION
Management vs. leadership
 Management is a broad subject that encompasses activities such as
planning, organizing, directing & controlling
 Leadership, in contrast focuses on the aspects of people for getting a job
done through inspiring, directing & gaining commitment towards
organizational activities & goals
 Thus, leadership is one aspect of management & complements it
Exercise: how managers can be effective leaders?
Fundamental principles of leadership
 Normally, managers can be effective leaders if:
 They understand what motivates their subordinates & how these
motivations operate.
 They reflect this understanding in carrying out their managerial actions
 Because people tend to follow those who, in their view, offer them a means of
satisfying their own personal goals

9
 DIRECTING FUNCTION
Leadership effectiveness
 Excellent leaders are born as well as made
 To be the best, however, learn the essential skills of leadership
through:
 Formal training courses
 On-the-job experience
 In general, leadership effectiveness can be enhanced by:
 Focusing on quality
 Learning from others
 Gaining experiences
 Mastering key leadership roles
Focusing on quality
 The aim of leadership is to help others to achieve their personal best
 This involves setting high but realistic performance goals for your
self & staff
 This is striving for total quality in all areas
10
 DIRECTING FUNCTION
Leadership effectiveness
Focusing on quality
Targets for improving standards of quality
 Leadership –the ability to influence others
 Strategy –the means to achieve objectives
 People –are those who create value
 Resources –are vital intangibles required for processing
 Processes – are referring to systematic way of doing things
Learning from others
 Improving skills through observation
 Using formal training – gives you fresh perspective
 Coaching others (communicating clearly, getting feedback, delegating, motivating,
developing people)
 Always be on the look-out for chances to learn valuable lessons
 Take a refresher course if you feel you need to brush-up on rusty skills
 Use coaching sessions to teach as well as learn
 Learn ----- coach -------- raise performance 11
 DIRECTING FUNCTION
Leadership effectiveness
Gaining experience
 Promotion to leadership positions used to depend on rising up the company
hierarchy
 Nowadays, vital works are increasing carried out by temporary teams working on
specific projects
 Provides ideal opportunities for learning leadership skills
 So experience can be gained trough:
 Joining project teams
 Learning flexibility from different project leaders
 Broadening knowledge in different functions (e.g. production, personnel,
operations. Etc.)
 Skills to be learned on a project team
 How to approch the project, how to communicate its objective
 Where to acquire resources, how to put resources to best use
 How to to liaise with other department, how to negotiate with clients, supplier
 How to monitor performance, how to troubleshoot problem, achieve goals
 Make projects as a way of learning more about other disciplines 12
 Make friends with people in d/t dept, and get to know how they operate
 DIRECTING FUNCTION
Leadership effectiveness
Mastering key leadership rotes
 Leadership is a multi-dimensional function, requiring knowledge &
understanding of many organizational needs
 As a leader, you must master the various roles that are required to
handle d/t people & circumstances with skill & efficiency
 A role is an expected or perceived set of activities or behaviors
stemming from one’s job
 Leadership roles are subset of the managerial roles identified by
Henry Mintzberg (1973)-you can state them
 What are the key roles?
 Being expert: have in- depth understanding of your field
 Being administrator: ensure smooth running of operations
 Focusing on people: make your staff & their training a priority
 Becoming a strategist: think long term & look to the future
 Promoting change: use change as a key to progress & advancement 13
 Varying leadership styles: use a range of skills & leadership styles
 DIRECTING FUNCTION
Leadership effectiveness
Mastering key leadership rotes
 Questions to ask yourself
 Do I communicate directly with team & also with other departments
 Am I sure that every member of the team understands his/her role fully?
 Am I setting sufficiently ambitious goals?
 Do I have procedures in place that allow me to check on team progress instantly?
 Am I constantly looking for new ways to improve efficiency & productivity?
leadership influence followers
 why do people accept the influence of a leader?
 One major reason is that leader have power
 Power is the capacity to affect the behavior of others (i.e., power is the ability to
influence the beliefs or actions of other persons )
 There are five major type of power:
 Legitimate power: the power a leader has a result of his/her position
 Coercive power: the power a leader has to punish or control
 Reward power: the power to give positive benefits or rewards
 Expert power: the influence a leader can exert as a result of his/her expertise, skills,
or knowledge
 Referent power: the power a leader that arise b/c of a person’s desirable resources 14 or
admired personal trait
 DIRECTING FUNCTION
Theories of Leadership
 Leadership does not take place in a vacuum
 There are three important variables with which every leader must
deal (Ivancevich, 1999.p.408)
 The people who are being led
 The task that the people are performed
 The environment in which the people & the task exist
 B/c these three variables are different in every situation, what is
expected & needed from a leader will be different in every
situation
 Consequently, there are multitude of leadership definitions based
on:
 leader characteristics- traits or attributes
 Leader behaviors- behavior exhibited
 Leadership situation – situational variable (task, people, environment)
 Outcome or end results – latest approaches to leadership 15
DIRECTING FUNCTION
The Evolution of leadership theory

Trait theory • 1920-50

Behavioral • 1960
theory

Situational
• 1970-80
theory

Contemporary 1990 0n
theory ward

16
 DIRECTING FUNCTION
The Evolution of leadership theory
Trait theory (1920s-30s)
 Focused on identifying personal characteristics/ traits that differentiated leaders
from non-leaders
 Assumed that leaders shared certain inborn personality traits
 View that some people are born leaders
 Focused on what an effective leader is, not on how to effectively lead
 Later research on the leadership process identified seven traits associated with
successful leadership
1. drive. Leaders exhibit a high effort level. They have a relatively high desire for
achievement: they are ambitious; the have lot of energy; they are tirelessly persistent in
their activities; and they show initiative
2. Desire to lead. Leaders have a strong desire to influence and lead others, they
demonstrate the willingness to take responsibility
3. Honesty and integrity. Leaders build trusting r/nship b/n themselves and followers by
being truthful or non-deceitful and by showing high consistency b/n word and deed
4. Self- confidence. Followers look to leaders for an absence of self-doubt. Leaders,
therefore, need to show self-confidence in order to convince followers of the rightness of
17
their goals and decisions.
 DIRECTING FUNCTION
The Evolution of leadership theory
Trait theory (1920s-30s)
5. Intelligence. Leaders need to be intelligent enough to gather, synthesize, and
interpret large amounts of information, and they need to be able to create visions,
solve problems, and make correct decisions
6. Job –relevant knowledge. Effective leaders have a high degree of knowledge
about the company, industry, and technical matters. In-depth knowledge allows
leaders to make well informed decisions and to understand the implications of
those decisions.
7. Extraversion. Leaders are energetic. Lively people. They are sociable, assertive,
and rarely silent or withdrawn
 Yet, trait theory does not make a judgment as to whether:
 The traits are inherent to individuals
 The traits can be developed through training & education
 Two leaders are alike
 A leader possesses all of the traits
 Traits of leaders depend on the situation
18
 Therefore, it was unsuccessful
 DIRECTING FUNCTION
The Evolution of leadership theory
Behavioral Theories
 there are four behavior theories of leadership:
 University of lowa studies
 Ohio State university
 University of Michigan
 The managerial Grid
University of Lowa studies (kurt lewin)
 Identifies three leadership styles:
 Autocratic style: low participation, directing & centralized authority
 Democratic style: involvement, delegation, high participation & feedback
 Laissez-fair style: hands- off lenient management, group freedom to make
decisions
 Research findings: mixed result
 No specific style was consistently better for producing better performance
 However, employees were more satisfied under democratic leader than
19
autocratic leader
 DIRECTING FUNCTION
The Evolution of leadership theory
Behavioral Theories
Ohio state studies
 Identifies two dimensions of leader behavior
 initiating structure: refers to defining the leader’s role & the
roles of group members
 The emphasis is on achieving goals
 Consideration: refers to the leader’s trust & respects for the group
members ideas & feelings
 The emphasis is on employees welfare
 Research findings: mixed results
 High- high leaders generally achieved high group task performance
& satisfaction, but not always
 Evidence indicated that situational factors appeared to strongly
20
influence leadership effectiveness
 DIRECTING FUNCTION
The Evolution of leadership theory
Behavioral Theories
University of Michigan studies
 Identifies two dimensions of leader behavior
 employee oriented: emphasizing interpersonal
r/nships & taking care of employees needs
 Production oriented: emphasizing task
accomplishment & technical aspect of the job
 Research findings
 Leaders who are employee oriented are strongly
associated with high group productivity & higher job
satisfaction
21
 DIRECTING FUNCTION
The Evolution of leadership theory
Behavioral Theories
Managerial grid
 Apprises leadership styles using two dimensions:
 Concern for people: measured leaders concern for subordinates on a scale
of 1-9(low to high)
 Concern for production: measured leaders concern for getting job done on
a scale of 1-9(low to high)
 Places managerial styles in five categories:
 Impoverished management(1,1): exerts of minimum efforts to get required
work done in appropriated to sustain organization
 Middle-of-the-road management (5,5): adequate organization performance is
possible through balancing the necessary to get out work with maintaining Morale
of people at a satisfactory level
 Country club management (1,9): thoughtful alteration to needs of people
for satisfying r/nships leads to comfortable. Friendly organization
22
atmosphere &work tempo
 DIRECTING FUNCTION
The Evolution of leadership theory
Behavioral Theories
Managerial grid.
 Task management (9,1): efficiency in operation results from arranging
conditions of work in such away that human elements interfere to minimum
levels
 Team management (9,9): work accomplishment is from commited people.
Interdependence through a concern of task in organization purpose leads to
r/ship of trust & respects 9 C               D

 Research findings: 8                  
7                  
 Leaders performed 6                  
best with 9-9 style 5         E        

(high concern for 4                  

3                  
production & high 2                  
concern for people) 1 A               B
  1 2 3 4 5 6 7 8 23 9
eople

Concern for Production

 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
 The main proposition in contingency approaches is that the effectiveness
of a given leadership of a given leadership style is contingent on the
situation, implying that certain leaders behaviors will be effective in
some situations but not in others
 The main contingency models:
 The Fiedler contingency model
 The Hersey & blenchard model
 The path goal model
 The Vroom &Yetton model
The Fiedler Model
 Proposes that effective group performance dependes upon the
proper match b/n the leader’s style of interacting with followers &
the degree to which the situations allows the leader to control 24&
infuence
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
The Fiedler Model
 Fielder looked at three situations that could define the condition of a managerial
task:
 Leader- member relations: how well do the manager &the employees get
along?
 The task structure: is the job highly structured fairly unstructured, or
somewhere in b/n?
 Position power: how much authority does the manager possess?
 Least preferred co-worker questionnaire developed by fiedler to assess the degree of
positive or negative feelings held by a person toward someone with whom shr/he
least prefers to work
 Determine leadership style by measuring responses to 18 pairs of contrasting
adjectives
 High score: a r/nship –oriented leadership style
 Low score: a task- oriented leadership style
 Situational factors in matching leader to the situation: 25
 Leader member r/nship
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
The Fiedler Model
 The three factors determine how favorable the situation is for the leader:
 Good leader-member r/ns, high task structure & strong position power
constitute the most favorable situations
 Poor r/ns, low task structure & weak position power represent the
least favorable situations
 A r/nship-oriented style is best (achieves high results) when the situation
is moderately favorable or moderately unfavorable:
 Leader is moderately liked
 Leader possesses some power
 The task is somewhat vague
 A task oriented style is best (produces the desired performance) when the
situation is highly favorable or highly unfavorable:
 Leader is highly liked or not liked
 Leader possesses strong power or weak power 26
 The task is highly structured or not structured
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
The Fiedler Model
 assumption
 A certain leadership style should be most effective in specific type of
situation
 Matching the leader the situation or changing the situation to make it
favorable to the leader is required
 However, fiedler proposes that better changing the situation to match
the leadership style of the leader
 B/c fiedler is not optimistic that leaders can be trained successfully to
change their preferred leadership style
 Theus, the first step is to determine the leadership style & then
classify the favorableness of the situation to the leadership style
 Every researcher may not agree with fiedler idea that leaders cannot be
trained to modify their leadership style 27
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
The Fiedler Model
Fiedler situational variables & their preferred L/ship styles
Situation I II III IV V VI VII VIII

Leader member Good Good Good Good Poor Poor Poor Poor
relation
Task structure
Position power Strong weak Strong Weak Strong Weak Strong Weak

L/ship style Task-oriented Relationship Task oriented

oriented
favorableness High Moderate Low
28
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
Hersey & Blanchard’s situational leadership theory
 Argues that successful leadership is achieved by selecting the right
leadership style which is contingent on the level of the followers’ readiness
 Acceptance: leadership effectiveness depends on whether accept or reject a
leader
 Readiness: the extent to which followers have the ability & willingness to
accomplish a specific task
 Leaders must relinquish control over & contact with followers as they
become more competent
 Situational leadership theory posits four stages follower readiness
 M1: followers are unable & unwilling (insecure) – leader directed
 M2: followers are unable but willing (confident) –leader directed
 M3: followers are able but unwilling (insecure) –follower directed
 M4: followers are able & willing (confident)- follower directed
 According to Hersey & blanchard by determining followers readiness levels
29 a
manager can choose among the four leadership styles
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
Hersey & Blanchard’s situational leadership theory
 Identified four specific leadership styles incorporating Fiedler’s two
leadership dimensions
 S1= telling (directing); high task- low r/nship leadership
 S2= selling (coaching); high task –high r/nship leadership
 S3= participating (supporting): low task – high r/nship leadership
 S4= delegation: low task- low r/nship leadership
 Task-oriented: refers to task behavior- providing directive behavior
 Relationship-oriented: refers to r/nship behaivior-providing supportive behavior
 Delegating: turnover responsibility for decision & implementation (e.g.,
scientists, experts, etc.)
 Participating: share ideas & facilitate in decision making (the employee
lacks skill)
 Telling: provide specific instructions & closely supervise performance (the
employee lacks skills)
 Selling: explain decisions & provide opportunity for clarification 30(the
employees has the skills)
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
Hersey & Blanchard’s situational leadership theory
h igh

Selling

Participating
Relationship Behavior

S3 S2 Telling

Delegating S1
Low

S4

Low high
Task Behavior
M4 M3 M2 M1
High low 31
Maturity of Followers
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
House’s path Goal Model
 States that the leader’s job is to:
 Assist his or her followers in attaining their goals
 Provide direction or support to ensure their goals are compatible with
organizational goals
 Leaders assume different leadership styles at different times depending on
the situation
 House’s leadership style are:
 Directive leader: tends to let subordinates know what is expected of
them
 supportive leader: treats subordinates as equal
 Participative leader: consults with subordinates & uses their suggestions
& ideas before reaching a direction
 Achievement oriented leader: sets challenging goals, expected
subordinates to perform at the highest level, & continually 32seeks
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
House’s path Goal Model
 The situational/ contingency variables are:
 Environmental pressures/ demands & personals characteristics of
subordinates
 Subordinate must cope with these in order to accomplish work goals &
derive satisfaction
 The higher the degree of perceived ability relative to the task demands, the
les likely the subordinate is to accept a directive leader style
 Individuals who have an internal locus of control (rewards are determined
by their efforts) are generally more satisfied with a participative style
 Individuals who have an external locus of control (rewards are beyond
their personal control) are generally more satisfied with a directive style
 The environmental variables can also motivate or constrain the
subordinates performance
 According to theory, leader behavior will be motivational to the extent33that
it helps subordinates cope with environmental uncertainties
 DIRECTING FUNCTION

The Evolution of leadership theory

Contingency theories
House’s path Goal Model
Environmental contingency factors
. Task stricture
Leader behavior . Formal authority system Outcome
. Directive . Work group . Performance
. Supportive . Sutisfaction
. Participative
. Achievement
oriented Subordinate contingency factor
. Locus of control
. Experience
. Perceived ability

Leaders behavior, environmental & subordinates contingency factors influence followers’

perception & motivations toward outcome 34
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
Vroom-Yetton Model- leader participation model
 Posits that leader behavior must be adjusted
 To reflect the task structure-whether it is routine, non-routine, or in b/n
 To determine the form & amount of follower participation in decision
making in a given situation based on a sequential set of rules
(contingencies)
 Leader participation model contingencies
 Decision significance
 Importance of commitment
 Leader expertise
 Likelihood of commitment
 Group support
 Group expertise
 Team competence
35
 DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
Vroom-Yetton Model- leader participation model
 Decider: leader makes the decision alone & announces it to group
 Consult individually: leader presents the problem to group members
individually, gets their suggestions, & then makes the decision
 Consult group: leader presents the problem to group members in a
meeting. Gets their suggestions, & then makes the decision
 Facilitator: leader presents the problem to the group in a meeting acting
as facilitator. Defines the problem & the boundaries within which a
decision must be made
 Delegate: leader permits the group to make the decision within
prescribed limits
 The r/nship b/n leadership style & participation contingencies
depending upon high or low of participation contingencies the
leadership styles vary 36
 DIRECTING FUNCTION
Factors influencing leadership effectiveness
Leader’s
perceptu
Leaders al
background accuracy Behavior &
experience & expectation of
personality supplier

Followers Leaders Requireme

background
experience & performance nt of the
personality effectiveness job

Organizatio Task
nal culture understandin
& policy Behavior & g
expectation
of peers &
association 37
 DIRECTING FUNCTION
The Evolution of leadership theory
Contemporary view on leadership
 Transactional
 Transformational
 Charismatic
 Visionary leadership
 Team leadership
Leadership issues in the 21st century: an emerging paradigm
 Developing credibility & trust
 Ethical leadership
 Empowering employees
 Note: you have to refer appropriate source & comprehend
them
38
 DIRECTING FUNCTION
Motivation Theories
 Meaning of Motivation
 Motivation is the set of processes that move a person toward a goal.
 Thus, motivated behaviors are voluntary choices controlled by the
individual employee.
 The supervisor (motivator) wants to influence the factors that
motivate employees to higher levels of productivity.
 Motivation is to inspire people to work, individually or in groups in
the ways such as to produce best results. It is the will to act.
 It is the willingness to exert high levels of effort towards
organizational goals, conditioned by the efforts and ability to satisfy
some individual need.
 Motivation is getting somebody to do something because they want to
do it.
39
 DIRECTING FUNCTION
Motivation Theories
 Meaning of Motivation
 It was once assumed that motivation had to be injected from outside,
but it is now understood that everyone is motivated by several
differing forces.
 Factors that affect work motivation include individual differences,
job characteristics, and organizational practices.
 Individual differences are the personal needs, values, and
attitudes, interests and abilities that people bring to their jobs.
 Job characteristics are the aspects of the position that determine
its limitations and challenges.
 Organizational practices are the rules, human resources policies,
managerial practices, and rewards systems of an organization.
 Supervisors must consider how these factors interact to affect
employee job performance.  
40
 DIRECTING FUNCTION
Motivation Theories
 Theories of Motivation
 Two primary approaches to motivation are content and process.
Content Theories
 The content approach emphasizes what motivates employees,
focuses on the assumption that individuals are motivated by the desire
to fulfill inner needs.
Maslow's Hierarchy of Needs
 It identifies five levels of needs, which are best seen as a hierarchy
with the most basic need emerging first and the most sophisticated
need last.
 People move up the hierarchy one level at a time. Gratified needs lose
their strength and the next level of needs is activated. As basic or
lower-level needs are satisfied, higher-level needs become operative.
41
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
Maslow's Hierarchy of Needs
 A satisfied need is not a motivator. The most powerful employee need is
the one that has not been satisfied.
 Level I - Physiological needs are the most basic human needs. They
include food, water, shelter and comfort.
 The organization helps to satisfy employees' physiological needs by
a paycheck.
 Level II - Safety needs are the desires for security and stability, to feel
safe from harm.
 The organization helps to satisfy employees' safety needs by
benefits.
 Level III - Social needs are the desires for affiliation. They include
friendship and belonging.
 The organization helps to satisfy employees' social needs through sports 42
teams, parties, and celebrations..
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
Maslow's Hierarchy of Needs
 Level IV - Esteem needs are the desires for self-respect and respect
or recognition from others.
 The organization helps to satisfy employees' esteem needs by
matching the skills and abilities of the employee to the job.
 Level V - Self-actualization needs are the desires for self-fulfillment
and the realization of the individual's full potential.
 The supervisor can help fulfill self-actualization needs by
assigning tasks that challenge employees' minds while drawing on
their aptitude and training

43
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
Alderfer's ERG
 identified three categories of needs.
 Existence needs are the desires for material and physical well being.
 These needs are satisfied with food, water, air, shelter, working conditions,
pay, and fringe benefits.
 Relatedness needs are the desires to establish and maintain interpersonal
relationships.
 These needs are satisfied with relationships with family, friends,
supervisors, subordinates, and co-workers.
 Growth needs are the desires to be creative, to make useful and productive
contributions and to have opportunities for personal development.
 The major conclusions of this theory are:
 In an individual, more than one need may be operative at the same time.
 If a higher need goes unsatisfied then the desire to satisfy a lower need
intensifies.
 It also contains the frustration-regression dimension. 44
 DIRECTING FUNCTION

Theories of Motivation
Content Theories
McClelland's Learned Needs
 Achievement: motivated people thrive on pursuing and attaining goals.
High-need achievers possess these characteristics:
1. High-need achievers have a strong desire to assume personal responsibility
for performing a task or finding a solution to a problem
2. High-need achievers tend to set moderately difficult goals and take
calculated risks.
3. High-need achievers have a strong desire for performance feedback.
 Power: motivated individuals see almost every situation as an opportunity
to seize control or dominate others. characteristics:
1. A desire to influence and direct somebody else.
2. A desire to exercise control over others.
3. A concern for maintaining leader-follower relations.
45
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
McClelland's Learned Needs
 Affiliation motivated people are usually friendly and like to socialize with
others. characteristics:
1. 1. They have a strong desire for approval and reassurance from others.
2. 2. They have a tendency to conform to the wishes and norms of others when
they are pressured by people whose friendships they value.
3. 3. They have a sincere interest in the feelings of others
Herzberg's Two-Factor Theory
 describes needs in terms of satisfaction and dissatisfaction.
 Satisfaction comes from motivators that are intrinsic or job content, such as:
 achievement
 recognition
 advancement
 responsibility
 the work itself
 growth possibilities 46
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
Herzberg's Two-Factor Theory
 Dissatisfaction occurs when the following hygiene factors,
extrinsic or job context, maintenance factors are not present on
the job and include:
 pay
 status
 job security
 working conditions
 company policy
 peer relations
 supervision
47
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
Herzberg's Two-Factor Theory

Dissatisfaction Job Normal

context/Hygie condition/no
ne factors motivation

Absence Presence

Normal condition/ No Motivation

Job content
dissatisfaction
factors

48
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Theories of Motivation
Content Theories

49
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Theories of Motivation
Content Theories
Theory X and Theory Y of Douglas McGregor :
 Under the assumptions of theory X :
 Employees inherently do not like work and whenever possible, will
attempt to avoid it.
 Because employees dislike work, they have to be forced, coerced or
threatened with punishment to achieve goals.
 Employees avoid responsibilities and do not work till formal directions
are issued.
 Most workers place a greater importance on security over all other factors
and display little ambition.
 under the assumptions of theory Y:
 Physical and mental effort at work is as natural as rest or play.
 People do exercise self-control and self-direction and if they are
committed to those goals. 50
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
Theory X and Theory Y of Douglas McGregor
Theory Z
 Theory Z companies have the following characteristics:
• Career paths wander around the firm across functions and hierarchies.
People in Theory Z firms possess great understanding of the total firm.
• Decisions include a component of “suitability” and “corporate fit.”
Organizational life is a life of interdependence. Each person relies on
others in the firm.
• Decisions result from a participative process.
• Extensive energy is expended to develop the interpersonal skills
necessary for effective group decision making.
• People deal with people in the organization rather than one position to
another. 51
 DIRECTING FUNCTION
Theories of Motivation
Content Theories
Theory X and Theory Y of Douglas McGregor
Theory Z
 People in Theory Z firms operate as clans. Individual performance is not as
important as group and team performance.
 Long-term employment and job security
 Collective responsibility
 Implicit, informal control with explicit, formalized measures
 Collective decision-making
 Slow evaluation and promotion
 Moderately specialized careers
 Concern for a total person, including their family
 Theory Z firms understand the innate desire of people for variation in life.
 Work assignments create variety by allowing people to work in different
departments and perform different tasks.
 Theory Z firms understand the paradox of gaining more by not working for
profit alone. Rather, they work to see employees share in the wealth. The 52
result is higher returns for longer periods of time.
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
 The process approach emphasizes how and why people choose certain
behaviors in order to meet their personal goals.
 Process theories focus on external influences or behaviors that people choose to
meet their needs.
Vroom's Expectancy Model
 The theory argues that the strength of a tendency to act in a specific way
depends on the strength of an expectation that the act will be followed by a
given outcome and on the attractiveness of that outcome to the individual.
 Expectancy theory says that an employee can be motivated to perform better
when there is a belief that the better performance will lead to good performance
appraisal and that this shall result into realization of personal goal in form of
some reward.
 Vroom’s Expectancy Theory states that behavior is a result of:
 (1) the importance of a reward,
 (2) the extent that the behavior will result in the reward, and 53
 (3) the likelihood that the reward will materialize.
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Vroom's Expectancy Model
 Vroom uses the terms valence, instrumentality and expectancy to
describe his theory. Many people refer to his theory as the VIE Theory.
Motivation = Valence x Expectancy.
 The theory focuses on three things:
 Efforts and performance relationship (expectancy).
 Performance and reward relationship (instrumentality).
 Rewards and personal goal relationship (valence).
 Expectancy is the belief that efforts are linked to performance.
 Expectancy is the probability that a particular action will lead to the
outcome.
 Expectancy is different from instrumentality in that it relates efforts to
the first-level outcomes whereas instrumentality relates first and second
level-outcomes to each other.. 54
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Vroom's Expectancy Model
 Instrumentality is a person’s perception about the extent to which
performance at a certain level will result in the attainment of outcomes.
 Instrumentality is, in short, the belief that performance is related to
first rewards.
 Valence is the importance placed upon the reward. It refers to how
desirable each of the out comes available from a job or organization is to
a person.
 Valence refers to the attractiveness of a reward - how important the
reward is to someone.
 It also refers to the level of satisfaction that an individual expects
from a reward rather than the actual value derived.
 It means the strength of an individual’s preference to a particular
outcome. 55
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Vroom's Expectancy Model

Instrument
Expectancy
alities
2nd level
Motivation outcome
First level outcomes
s
Outcome1 a

Outcome 1 Outcome1b

Outcome2a
Outcome 2
Outcome 2b

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 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Fishbein’s Theory of Reasoned Action
 Fishbein modified Vroom’s model to allow for the expectations of others
as one factor influencing individual motivation.
 The model allows for a quantification of this by summing the beliefs times
the value of each outcome. This first quantitative result represents the
individuals weighted difference toward the behavior.
 The model then includes an evaluation by the individual as to what various
referent people, or groups of people, feel toward the individual performing
the behavior.
 Role expectations, role conflicts and role ambiguity play a significant
part in this model. Each individual has a sense of his or her intent to
comply with what the referents desire.
 This may range from an absolute intent to comply with an absolute intent
to rebel and not perform the behavior regardless of the outcome (hence the
old adage of "cutting off your nose to spite your face"). 57
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Fishbein’s Theory of Reasoned Action
 The second quantitative value is derived by summing all of the
referent values times the motivation to comply. The summed value
yields a measure of the pressure to perform the behavior, or what
we call peer pressure.
 The third quantitative measure is a product of multiplying the first
two. The value derived is a relative weighted value of the
importance of the behavior to the individual and the impact of
referent pressure to comply.
 The concern with the model is that no two people will weight a
behavior the same or allocate a similar value to the beliefs of the
referent group. This results in each individual having to self-report
their quantitative scores. 58
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Porter-Lawler’s theory of motivation
 Porter and Lawler suggest that employee effort is jointly determined by
two key factors:
 the value placed on certain outcomes by the individual, and
 the degree to which the person believes that his effort will lead to
the attainment of these rewards.
 Porter and Lawler use satisfaction in their model. Satisfaction raises
several interesting thoughts regarding managers’ motivation of
employees.
 We define “satisfaction” as needs being met. Think about it, if needs are
met, what is the purpose of behavior?
 I recall many times that employees, reporting to me, were in states of
great happiness or satisfaction (rarely caused by me, unfortunately) and
they did not work during these states of euphoria. Rather, they shared
59
thoughts, expressions and engaged in bonding-type behavior.
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Porter-Lawler’s theory of motivation
 dissatisfaction causes behavior to achieve equilibrium, the issue is
what type of dissatisfaction do you want to create in your
employees and to what degree?
 Too much dissatisfaction causes employees to give up and quit.
 Transformational leaders establish dissatisfaction with the status
quo of the firm.
 Transformational leaders describe an institutional-state to which
employees should aspire.
 Thus, employee performance behavior focuses on reaching the
new organizational goal.

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Theories of Motivation
Process Theories
Porter-Lawler’s theory of motivation

61
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Equity Theory
 Equity is the perception of fairness involved in rewards given. A fair or
equitable situation is one in which people with similar inputs experience
similar outcomes.
 Employees will compare their rewards with the rewards received by others
for their efforts. If employees perceive that an inequity exists, they are
likely to withhold some of their contributions, either consciously or
unconsciously, to bring a situation into better balance.
 While equity theory was originally concerned with differences in pay, it
may be applied to other forms of tangible and intangible rewards in the
workplace.
 That is, if any input is not balanced with some fair output, the motivation
process will be difficult. Supervisors must manage the perception of
fairness in the mind of each employee.
 If subordinates think they are not being treated fairly, it is difficult to 62
motivate them.
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Equity Theory

63
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Theories of Motivation
Process Theories
Equity Theory

64
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Reinforcement Theory
 The reinforcement theory, based on E. L. Thorndike’s law of effect,
simply looks at the relationship between behavior and its consequences.
 Positive reinforcement rewards desirable behavior. Positive
reinforcement, such as a pay raise or promotion, is provided as a reward
for positive behavior with the intention of increasing the probability that
the desired behavior will be repeated.
 Negative reinforcement occurs when a person engages in behavior to
avoid unpleasant consequences or to escape from existing unpleasant
consequences.
 Punishment is an attempt to discourage a target behavior by the
application of negative outcomes whenever it is possible. Punishment
(threats, docking pay, suspension) is an attempt to decrease the
likelihood of a behavior recurring by applying negative consequences.
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 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Reinforcement Theory
 The reinforcement theory has the following implications for management:
 Learning what is acceptable to the organization influences
motivated behavior.
 Managers who are trying to motivate their employees should be
sure to tell individuals what they are doing wrong and be careful
not to reward all individuals at the same time.
 Managers must tell individuals what they can do to receive positive
reinforcement.
 Managers must be sure to administer the reinforcement as closely
as possible to the occurrence of the behavior.
 Managers must recognize that failure to reward can also modify
behavior. Employees who believe that they deserve a reward and do
not receive it will often become disenchanted with both their 66
manager and company.
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Theories of Motivation
Process Theories
Reinforcement Theory

67
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Hackman’s Job Design Theory
 Five core job dimensions create three critical psychological states that, in turn,
lead to a number of beneficial personal and work outcomes.
 The five job dimensions are:
  Skill variety: the degree to which a job requires a variety of different activities
that involve the use of a number of different skills and talents.
 Task identity: the degree to which the job requires completion of a whole and
identifiable piece of work -that is, doing a job from beginning to end with a
visible outcome.
 Task significance: the degree to which the job has a substantial impact on the
lives or work of other people, whether in the immediate organization or in the
external environment.
 Autonomy: the degree to which the job provides substantial freedom,
independence, and discretion to the individual in scheduling the work and in
determining the procedures to be used in carrying it out.
 Feedback: the knowledge of how well the results match the expectation. 68
Information necessary for correction should also occur in feedback .
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Hackman’s Job Design Theory
The psychological states as shown in the model are:
  Experienced meaningfulness: The person must experience the work as
generally important, valuable, and worthwhile.
 Experienced responsibility: The individual must feel personally responsible
and accountable for the results of the work he performs.
 Knowledge of results: The individual must have an understanding, on a fairly
regular basis, of how effectively he is performing the job.
When changing jobs, consider:
 Combining tasks to increase the breadth and totality of the job.
 Opening, or broadening, channels for feedback of work quality
and acceptability to others inside and outside of the firm.
 Establishing client relationships.
 Giving more control of the work to the employee.
69
 DIRECTING FUNCTION
Theories of Motivation
Process Theories
Hackman’s Job Design Theory

Skill variety
Task identity
Task significance Experienced meaningfulness of the work high internal work motivation

70
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Theories of Motivation
Process Theories
Jeremy Bentham’s “The Carrot and the Stick Approach” :
 Bentham’s view was that all people are self-interested and are motivated by the desire to
avoid pain and find pleasure. Any worker will work only if the reward is big enough, or the
punishment sufficiently unpleasant.
 This view - the ‘carrot and stick’ approach - was built into the philosophies of the age and
is still to be found, especially in the older, more traditional sectors of industry.
 The various leading theories of motivation and motivators seldom make reference to the
carrot and the stick. This metaphor relates, of course, to the use of rewards and penalties in
order to induce desired behavior.
 It comes from the old story that to make a donkey move, one must put a carrot in front of
him or dab him with a stick from behind..
 The trouble with the money ‘carrot’ approach is that too often everyone gets a carrot,
regardless of performance through such practices as salary increase and promotion by
seniority, automatic ‘merit’ increases, and executive bonuses not based on individual
manager performance
 The ‘stick’, in the form of fear–fear of loss of job, loss of income, reduction of bonus,
demotion, or some other penalty–has been and continues to be a strong motivator. Yet it is
admittedly not the best kind. 71
 DIRECTING FUNCTION
Communication
There is no agreeable single definition for communication but a number of scholars define
it in the following manner.
 Communication is the transfer of information from the sender to receiver, with the
information being understood by the receiver.
 Communication is the process by which information is transmitted between individuals
and organizations so that an understanding response results.
 Communication is an exchange of facts, ideas, opinions or emotions by two or more
people.
 Business communication is a process which involves the transmission and accurate
replication of ideas ensured by feedback for the purpose of eliciting actions which will
accomplish organizational goals.
 Communication is the exchange of messages in writing, speaking or images.
 Communication is sharing information of providing entertainment through works or
speech or other methods.
 Communication is the process whereby one person transmits a message through a
channel to another person, with some effect.
 Communication is an intercourse by words, letters, symbols or messages and is a way
that one organization member shares meaning and understanding with another
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Communication
The Communication Process
The major variables in the communication process include:
 Stimulus and motivation.
 Encoding
 Choosing media/channel
 Decoding
 Feedback
Characteristics of Communication
The following are some of the characteristics of communication
 Communication is a process.
 Communication is symbolic-gestures, sounds, letters, numbers and words represent
an idea meant to communicate.
 Communication is contextual-the meaning may vary depending on contexts
 Communication is purposive- it is done to share meaning, to impart information or
influence.
 Communication is two way
 Communication involves people. 73
 DIRECTING FUNCTION
Communication
Types of Communication
Formal and Informal Communication
 Formal Communication
 Vertical communication
 Downward communication
 Upward communication-
 Horizontal communication.
 Diagonal communication
 Informal communication
Barriers to Effective Communication
 Differing perceptions
 Language differences:
 Emotionality
 Inconsistent Verbal and Nonverbal Communication
 Distrust:
 Filtering:

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Communication
Overcoming Barriers to Communication
 Overcoming differing perception-The message should be explained so that it can be
understood by those with different views and experiences.
 Overcoming differences in language-The meanings of unconventional or technical
terms should be explained; single, direct and natural language should be used.
 Overcoming noise-Noise is best dealt with by eliminating it. As a whole it is good to
avoid distracting environments. When noise is unavoidable, increase the clarity and
strength of the message.
 Overcoming emotionality-Before a crisis, try to understand your subordinate‘s
emotional reactions and prepare yourself to deal with receivers. Also think about your
own moods and how they influence others. 137
 Overcoming inconsistent verbal and nonverbal communication-Gestures, clothes,
posture, facial expression and other powerful nonverbal communications should agree
with the message.
 Overcoming distrust-Overcoming distrust is to a large extent the process of creating
trust.
 Redundancy-Being redundant purposefully might be necessary. Repeating or restating a
message ensures its perception or reinforces its impact.
75