MOTIVATION and LEADERSHIP on

ORGANIZATION
 Motivation in organization
 Motivation is a Psychological forces that determine the direction of a
person’s behavior in an organization, a person’s level of effort, and a
person’s level of persistence.
 Internal motivated behavior that is performed for its own sake
 External motivated Behavior that is performed to acquire material or
social rewards or to avoid punishment.
 prosocially motivated behavior Behavior that is performed to benefit
or help others.
 Input Anything a person
contributes to his or her
job or organization.

 Outcome Anything a
person gets from a job or
organization.
 Expectancy theory
 The theory that motivation will be high when workers believe that
high levels of effort lead to high performance and high
performance leads to the attainment of desired outcomes.
 Need Theories

 need theories of motivation that focus on what needs people are

trying to satisfy at work and what outcomes will satisfy those
needs.

1. Maslow’s Hierarchy of Needs

2. Herzberg’s Motivator-Hygiene Theory
3. McClelland’s Needs for Achievement, Affiliation, and Power
Maslow’s Hierarchy of Needs
Herzberg’s Motivator-Hygiene Theory
 McClelland’s Needs for Achievement,
Affiliation, and Power

 Need for achievement The extent to which an individual has a

strong desire to perform challenging tasks well and to meet
personal standards for excellence.
 Need for affiliation The extent to which an individual is concerned
about establishing and maintaining good interpersonal relations,
being liked, and having the people around him or her get along
with each other.
 Need for power The extent to which an individual desires to
control or influence others
 Equity Theory
 Equity theory A theory of motivation that focuses on people’s perceptions of
the fairness of their work out- comes relative to their work inputs.
 Equity The justice, impartiality, and fairness to which all organizational
members are entitled.
 Inequity Lack of fairness.
 Underpayment inequity The inequity that exists when a person perceives
that his or her own outcome–input ratio is less than the ratio of a referent.
 Overpayment inequity The inequity that exists when a person perceives that
his or her own outcome–input ratio is greater than the ratio of a referent.
 Equity and Justice in Organizations

 Distributive justice A person’s perception of the fairness of the distribution of

outcomes in an organization
 Procedural justice A per- son’s perception of the fair- ness of the procedures that are
used to determine how to distribute outcomes in an organization.
 Interpersonal justice A person’s perception of the fairness of the interpersonal
treatment he or she receives from whoever distributes out- comes to him or her.
 Informational justice A person’s perception of the extent to which his or her man-
ager provides explanations for decisions and the procedures used to arrive at them.
 Goal-Setting Theory

 Goal-setting theory that focuses on

identifying the types of goals that are
most effective in producing high
levels of motivation and performance
and explaining why goals have these
effects .
 Learning Theories

 Theories that focus on increasing employee motivation and

performance by linking the outcomes that employees receive to the
performance of desired behaviors and the attainment of goals.
1. Operant Conditioning Theory .
2. Social Learning Theory .
 Operant Conditioning Theory

 The theory that people learn to perform behaviors that lead to

desired consequences and learn not to perform behaviors that lead to
undesired consequences.
 Positive reinforcement Giving people outcomes they desire when they
perform organizationally functional behaviors.
 Negative reinforcement Eliminating or removing undesired outcomes
when people perform organizationally functional behaviors
 Social Learning Theory
 A theory that takes into account how learning and motivation are influenced
by people’s thoughts and beliefs and their observations of other people’s
behavior.
 Vicarious learning that occurs when the learner becomes motivated to
perform a behavior by watching another person performing it and being
reinforced for doing so; also called observational learning.
 Self-reinforcer Any desired or attractive outcome or reward that a person
gives
to himself or herself for good performance.
 Self-efficacy A person’s belief about his or her ability to perform a behavior
successfully.
 Pay and motivation
 Pay is used to motivate entry-level workers, first-line
and middle managers, and even top managers such as
CEOs.

 Merit pay plan A compensation plan that bases pay on

performance.
 Managers can base merit pay on individual, group, or
organizational performance.

 Employee stock option A financial instrument that

entitles the bearer to buy shares of an organization’s
stock at a certain price during a certain period or
under certain conditions.
 Leadership in organization

 leadership The process by which an individual exerts influence over

other people and inspires, motivates, and directs their activities to help
achieve group or organizational goals.
 leader An individual who is able to exert influence over other people to
help achieve group or organizational goals
 Leadership Styles

 Autocratic or Authoritarian Leadership

 Participative or Democratic Leadership
 Laissez-Faire or Free-Rein Leadership
 Transactional Leadership
 Transformational Leadership
 Autocratic or Authoritarian Leadership
 An autocratic leader takes all the decisions himself.
 Does not consult his subordinates.
 Demands unquestioned obedience.
 Characteristics: centralization of authority, close
supervision, one way communication and rigid controls.
 Three types of autocratic leadership:
1. Strict autocrat .
2. Benevolent autocrat .
3. Incompetent autocrat .
 Laissez-Faire or Free-Rein Leadership
 Allows the group to establish its own goals.
 Decision making authority given to
subordinates.
 Leader does not direct at all.
 Leader intervenes only during crises.
 Successful when subordinates are highly
competent.
 Participative or Democratic Leadership

 Permits subordinates to participate in decision

making.
 The final decision is the combined efforts of all.
 Main features: decentralization of authority,
group decision making and two way
communication.
 Allows sufficient freedom to talk to him.
 Considered to be more effective than other styles.
 Transactional Leadership

 Leaders who guide or motivate their followers in the direction of

established goals by clarifying role and task requirements.

 Characteristics of Transactional Leaders

 Contingent Reward ; Contracts exchange of rewards for effort,
promises rewards for good performance, recognizes accomplishments.
 Management by Exception ; Watches and searches for deviations from
rules and standards, takes corrective action.
 Transformational Leadership

 Leaders who provide individualized consideration and intellectual

stimulation, and who possess charisma.
 Characteristics of Transformational Leaders
 Idealized Influence: Provides vision and sense of mission, instills
pride, gains respect and trust.
 Inspiration: Communicates high expectations, uses symbols to focus
efforts, expresses important purposes in simple ways.
 Intellectual Stimulation: Promotes intelligence, rationality, and
careful problem solving.
 Individualized Consideration: Gives personal attention, treats each
employee individually, coaches, advises.
 Leadership theories

 Trait theory that consider personality, social, physical, or intellectual

traits to differentiate leaders from nonreaders.

 Behavioral theory proposing that specific behaviors differentiate

leaders from nonleaders.
 The Behavior Model

 After extensive study in the 1940s and 1950s, researchers at The

Ohio State University identified two basic kinds of leader behaviors
1. Consideration Behavior indicating that a manager trusts, respects,
and cares about subordinates.
2. Initiating structure Behavior that managers engage
in to ensure that work gets done, subordinates perform their jobs
acceptably, and the organization is efficient and effective.