PUB 111

PRINCIPLES OF
MANAGEMENT

DR. SIMKOKO
 TOPIC 4
MANAGEMENT IN
ORGANIZATIONS
•Leadership and leadership styles
•Theory of motivation
LEADERSHIP
LEADERS
HIP
 LEADERSHIP
• Definitions and relations
• Leadership Functions
• Theories of Leadership
• Leadership Styles, levels and
application in development
environment
DEFINITIONS AND RELATIONS
Leadership
• Process of influencing people to realize
specific goals by using methods of
motivation rather than power or authority
(Nourthouse, 2010; Vigoda-Gadot, 2006).
• Sum of all the knowledge and abilities to
gather a group of people around specific
goals and to motivate them to realize these
goals (Yeliz et al., 2018)
Leadership
• Signifies a relation between a leader
and his followers within a situational
and organizational context ( Bogdan et
al., 2010).
• Art of persuading a follower to want to
do the things, activities, that the leader
sets as goals (Bogdan et al., 2010)
A leader
• leader is an individual who possesses the
ability to encourage, motivate and/or influence
others.
 what’s the difference
between management
and leadership?
Leadership
The ability to
influence a group
toward the
achievement of goals.
Management
Use of authority
inherent in designated
formal rank to obtain
compliance from
organizational
members.
 managers
• Maintain the status quo
• Monitor situation
• Allocate resources
• Communicate targets
• Measure the results
• Feedback on the trends
 leaders
• Strategic thinkers
• Look forward and create visions
• Challenge
• Motivate
• Inspire
• Engage
LEADERSHIP FUNCTIONS
Leadership
• The role of leaders is in the process
of directing the individual’s behavior
towards a desired goal.
• Leaders vary depending on the
individual leadership style that stems
from personality characteristics.
Leadership
Creates an inspiring vision of the
future
Motivates and inspires people to
engage with that vision
Manages delivery (output) of the
vision
 Coaches and builds a team, so that
it is more effective at achieving the
vision (Sunil Taneja, 2018 NIESBUD)
.
THEORIES OF LEADERSHIP
 Trait Theories
Traits Theories of
Leadership Leadership
LeadershipTraits:
Traits:
• • Ambition and energy
Theories that consider Ambition and energy
• • The desire to lead
personality, social, The desire to lead
• • Honest and integrity
physical, or Honest and integrity
• • Self-confidence
intellectual traits to Self-confidence
• • Intelligence
differentiate leaders Intelligence
• • High self-monitoring
from nonleaders. High self-monitoring
• • Job-relevant knowledge
Job-relevant knowledge
 Behavioral Theories
Behavioral Theories of Leadership

Theories proposing that specific

behaviors differentiate leaders
from nonleaders.

• • Trait theory:
Trait theory:
Leaders
Leadersare
areborn,
born,not
notmade.
made.
• • Behavioral theory:
Behavioral theory:
Leadership
Leadershiptraits
traitscan
canbe
betaught.
taught.
 CONTINGENCY THEORIES
• Fiedler’s Contingency Model
• The theory that effective groups
depend on a proper match between a
leader’s style of interacting with
subordinates and the degree to
which the situation gives control and
influence to the leader.
 Fiedler’s Model: Defining the
Situation
Leader-Member Relations
•The degree of confidence, trust, and
respect subordinates have in their
leader.
Task Structure
•The degree to which the job
assignments are procedurised.
 Fiedler’s Model: Defining the
Situation
Leader-Member Relations…
•Position Power
Influence derived from one’s formal
structural position in the organization;
includes power to hire, fire, discipline,
promote, and give salary increases
“Leadership is not a person or a
position. It is a complex moral
relationship between people,
based on trust, obligation,
commitment, emotion, and a
shared vision of the good.”
Joanne
Ciulla, 1998
 Hersey and Blanchard’s
Situational Leadership Theory
Situational Leadership Theory (SLT)
•A contingency theory that focuses on
followers’ readiness.
Hersey and Blanchard’s Situational Leadership
Theory

Unable and Unable but Able and Able and

Unwilling Willing Unwilling Willing

Follower readiness:
ability and willingness

Leader:
Leader: decreasing
decreasing need
need
for
for support
support and
and supervision
supervision

Directive High Task and Relationship Supportive Monitoring

Orientations Participative
Hersey and Blanchard’s Situational
Leadership Theory
Follower Unwilling Willing
Readiness

Able Supportive
Monitoring
Participative

Leadership
Styles
High Task
Unable Directive and
Relationship
Orientations
 Path-Goal Theory
Path-Goal Theory
The theory that it is the
leader’s job to assist followers
in attaining their goals and to
provide them the necessary
direction and/or support to
ensure that their goals are
compatible with the overall
objectives of the group or
organization.
"As we look ahead .......,
leaders will be those who
empower others.”
Bill
Gates
LEADERSHIP STYLES
Leadership Styles
• Autocratic (authoritarian)
• Democratic (participative)
• Laissez-faire (abdicated)
• Transactional
• Transformational
Democratic (participative) style
• Multiple people take a more participative role in
decision-making process.
• Group members are encouraged to share ideas
and opinions, even though the leader retains the
final say over decisions.
• Members of the group feel more engaged in the
process.
• Creativity is encouraged and rewarded.
Tenets democratic system
• Distribution of responsibility: The role of a leader
is to distribute the responsibility and maximize the
involvement of others in an effort to achieve the
specified objectives.
• Empowerment of others: The role of a leaders is to
empower their members to make smart decisions.
• Aid decision-making: A leader takes the role of a
facilitator in decision making process through:
– Productive conversations, maintaining healthy
relationships across teams, and creating a space where a
democratic approach is truly embraced
The pros of democratic system
• Encourages collaboration
• Inclusive of a variety of opinions and
ways of thinking
• Leads to higher group engagement and
productivity
• Can result in more creative solutions
• The outcome is supported by the majority
The cons of democratic style
• The minority opinion is overridden
• The involvement of multiple people can lead
to more communication gaps and confusion
• Can take a longer time to come to a decision
• Group members may not have the necessary
knowledge or expertise to make quality
contributions to the decision-making process.
Autocratic (authoritarian) style
• A leader get work done through fear and tells
workers what to do and how to do it (Ajibade,
1990)
• A leader is the sole determinant of what is done.
Subordinates receive only instructions.
• The leader makes all the decisions and delegates
the tasks
Autocratic…..
• Uses his/her power to threaten sanctions like
dismissal so that undesirable behavior can be
prevented (Janse 2018).
• Ruler who assumes that employees have little
ambition, prefer to avoid responsibility and only
strive for individualist goals (see theory X)
Pros of autocratic
• Quick decision making: because it doesn’t
requires a number of discussion
• Better supervision: because there is clear chain
of command
• Increase productivity: people will do as
much as they can to fulfill the tasks given
• High degree of secrecy: it involves the use of
threatening that will enhance fearing.
Cons of autocratic
• Lack of Creativity: Because employees are not given the
chance to give their opinions on the tasks to be performed
• Demotivating: Lack of creative development and partly
due to fear of sanctions
• Lack of a sense of responsibility: employees feel are not
valued because their input is cut off or not even heard
• Passive aggressiveness: it is due to frustration and fear of
the system,
 Laissez-faire style
• Give no continuous feedback or supervision because the
employees are highly experience and need few
supervision
• “Participants work problems out and make their way
through an expedition with very little guidance.
• Group members are allowed to come up with decisions on
their own.
Laissez-faire….
• Suitable in an environment with
highly skilled individuals
• But it can result in failure to meet
the deadline because there is no
supervision
• Sometimes leaders don’t lead at all.
Transactional Leadership
• Mutual transaction, when the viewers do
their duties, they are faced with reward and
when they don’t, they are faced with
punishment (Morçin, 2013).
• Subordinates are motivated to exchange
rewards for performance
• Providing incentives to followers to do what
the leader wants
Transactional……….
• Based on “conditional reward based
exchange” relationship between the leader
and the juniors (Khairudin et al., 2009)
• Leaders show reactive behaviours rather
than proactive behaviors (Koh et al., 1995)
Transactional……….
• Criticisms:
– Best or effective applied in certain situations, but
not in complex situations, as it doesn’t encourage
solutions to problems
– Can be exercised when the leader has power to
reward and to punish (Shu, 2006).
Transformational Leadership
• Leaders motivates its team to attain efficient
and effectiveness
• A leader ensures juniors to perceive the results
of their job more important and valuable
• Great leaders could transform employees by
tapping into their needs to increase motivation
(Burns, 1978) .
Transformational…………
• Leaders search to increase their followers’
awareness by attracting them to higher ideals and
moral values such as freedom, justice, peace and
kindness rather than low feelings such as fear,
greed, jealousy or enmity and grudge (Bilgiç,
2017)
• Leaders focus on transforming others to support
each other and the organization as a whole.
• Leaders encourages followers to innovate and
form new ideals for organization growth
Transformational…………
• There are four categories of it;
• Idealized influence (charisma); a leader is a
role model to followers, makes correct decisions
for the organization and gains the trust and
respect of his/her followers (Yeliz, 2018)
• Intellectual Impulse; a leader encourages a
group for innovation and creativity to change
their beliefs or views (Hall et al., 2002).
Transformational…………
• Individual support: a leader acts according to
the skills, information and individual differences
of his followers and enables them to be promoted
to where they can to show their maximum
performance (Van Dierendonck 2011).
• Rapidly changing living conditions forced
change from hierarchical bureaucratic designs
towards more networked and flexible designs in
schools (Konaklı, 2016).
THEORIES OF MOTIVATION
 THEORIES OF MOTIVATION

Motivation
•Content
•Process
Motivation
• Something that energized individuals to take
action and which is concerned with the
choices the individual makes as part of his or
her goal-oriented behavior (Wregner and
Miller, 2003)
Motivation………….
• Person’s intensity, direction and persistence
of efforts to attain a specific objective (Fuller
et.al., 2008)
• Intensity/level: How hard a person tries
(amount of effort) to achieve a goal
• Direction: Where effort is channeled in
alternative choices
• Persistence: How long (length of time )
effort is maintained
Assumptions
• Individuals behave in certain way, works hard,
put more effort because of the motive they
have
• A motive is a reason for doing something
• Individuals exhibit inner motives or forces that
drive them towards behaving or doing
something in a certain way
Two types of theories
• Content Theories
– Focus on individual needs, that is,
physiological or psychological deficiencies
that one feels a need to reduce or eliminate.
• Process Theories
– Focus on the thoughts, i.e. the process that
take place within the minds of people and that
influence their behavior.
 Content Process
• Maslow’s Hierarchy of Equity theory.
Needs Theory Expectancy theory.
• ERG theory Goal-setting theory.
• Two-factor theory Reinforcement
Theory
• Theory X and Theory Y
• Needs of Achievers
Theory by Mcclelland
Content Theories
Maslow’s Hierarchy of Needs
Theory
Maslow’s Hierarchy of Needs Theory
• Developed by Abraham Maslow in
1943
• States that five categories of
human needs (i.e. physiological needs,
safety needs, love and belonging needs,
esteem needs, and self-
actualization needs) dictate an
individual's behavior.
Assumptions
• Individuals have needs that, when
unsatisfied, will result in motivation
(deficit principle)
• A need at one level does not become
activated until the next lower-level
need is satisfied (progression
principle)
Criticism
• Needs do not necessarily follow
definite hierarchical order
• Lack of direct cause and effect relationship
between need and behavior
• Hierarchy of needs perspective do not apply at all
times in all places.
• Level of motivation may be permanently lower
for some people
Criticism
• Need and satisfaction of needs is a
psychological feeling. Sometimes even an
employee may not be aware about his/her
own needs. How can the managers come
to know about these needs?
ERG theory
ERG theory
• Developed by Clayton P. Alderfer in 1969
• He condensed Maslow's five human needs
into three categories
• States that humans have three core types of
need:
ERG theory
Categories of ERG Theory of Motivation

S.N. Categories Meaning

It is concerned with
1. Existence (E) basic human survival
needs.

It includes human
desires to satisfy
2. Relatedness (R)
interpersonal and
social relationships.

It is concerned with
the desire to make
3. Growth (G)
growth and personal
development.
Criticism
• ERG theory does not offer clear
cut guidelines. It assumes that an
individual can satisfy any of the
three needs first. The question is
how will one determine which of
the three needs is more important to
that person?
Theory X and Theory Y
Theory X and Theory Y
• Theories of human work motivation and
management.
• Douglas McGregor, a social psychologist,
developed two contrasting theories in 1950s,
and developed further in the 1960s to
explain how managers' beliefs about what
motivates their people
Theory X Assumptions Theory Y Assumptions
• Employees dislike work Employees like to work
• Employees attempt to Employees are creative,
avoid work and seek responsibility
• Employees must be Employees can exercise
coerced, controlled, or self-direction and self-
threatened with control.
punishment if they are
to perform.
Criticism
• There are very few persons who exactly
correspond with Theory ‘X’ or Theory ‘Y’
assumptions. Most of the people may fall in
between these two extremes of human
behavior.
• These assumptions could not be called a
reality; till they are put to testing or
experimentation
Herzberg’s Motivation-Hygiene
Theory
Herzberg’s Motivation-Hygiene Theory
• Frederick Herzberg’s well known Two-Factor Theory
was developed in1959.
• Highlights some factors to measure how individuals
are motivated in the workplace
• Extrinsic factors are less to contribute to employees’
motivation need (prevent dissatisfaction, hygiene)
(Kian et al., 2013)
• Intrinsic factors are the actually factors that
contribute to employees’ level of job satisfactions
(satisfiers/motivators)
Herzberg’s Motivation-Hygiene Theory
Motivators Hygiene
• Sources of satisfaction Sources of dissatisfaction
• Intrinsic factors (content Extrinsic factors (context of
work)
of work) Company policy and
– Achievement administration
Unhappy relationship with
– Recognition employee’s supervisor
– Challenging, varied, or Poor interpersonal relations
interesting work with one’s peers
Poor working conditions
– Responsibility
– Advancement
Criticism
• Procedure Herzberg used is limited by its
methodology
• Reliability of Herzberg’s methodology is
questioned
• Herzberg did not really produce a theory of
motivation
• No overall measure of satisfaction was used.
• The theory is inconsistent with previous
research
McClelland’s Theory of Needs
McClelland’s Theory of Needs
• Developed in 1961
• People vary in the types of needs
they have. Their motivation and
how well they perform in a work
situation are related to whether they
have a need for achievement,
affiliation, or power
 Dominant
Characteristics of This Person
Motivator
•Has a strong need to set and accomplish challenging goals.
•Takes calculated risks to accomplish their goals.
Achievement •Likes to receive regular feedback on their progress and achievements.
•Often likes to work alone and focuses on stipulated standards.
•Wants to belong to the group.
•The desire for friendly and close interpersonal relationships
•Wants to be liked, and will often go along with whatever the rest of
Affiliation
the group wants to do.
•Favors collaboration over competition.
•Doesn't like high risk or uncertainty.
•Wants to control and influence others.
•Needs to make others behave in a way that they would not have
behaved otherwise
Power •Likes to win arguments.
•Enjoys competition and winning.
•Enjoys status and recognition.
Criticism
• Tells us that high need achievers
do not necessarily make good
managers, since high achievers
are more interested in how they
do personally.
Process Theories
Process Theories
Look at the actual process of motivation/How
people make choices to work hard or not.

Choices are based on:

• Individual preferences.
• Available rewards.
• Possible work outcomes.
Process Theories
Types of process theories
•Expectancy theory.
•Goal-setting theory.
•Equity theory (John Stacey Adams in1963)
•Reinforcement Theory (B.F. Skinner and his
associates)
Expectancy theory
Expectancy theory.
• Developed by Victor Vroom in 1964
• It suggests that behavior is motivated by
anticipated results or consequences.
• Individuals behavior depending on:
– whether their effort will lead to good
performance
– whether good performance will be followed
by a given outcome
– whether that outcome is attractive to them
Expectancy Relationships
• The theory focuses on three relationships:
– Effort-Performance Relationship
• The perceived probability that exerting a given amount
of effort will lead to performance (Expectacy)
– Performance-Reward Relationship
• The degree to which the individual believes that
performing at a particular level will lead to a desired
outcome (Instrumentality)
– Rewards-Personal Goals Relationship
• The degree to which organizational rewards satisfy an
individual’s personal goals or needs and are attractive to
the individual (Valence)
How does expectancy theory work?
My professor offers me $1 million if I memorize the textbook by tomorrow morning.

Expectancy Instrumentality Valence

Effort Performance
Performance Rewards
Rewards Personal
Link Link
Goals Link
No matter how much effort I My professor does not look
There are a lot of wonderful
put in, probably not possible like someone who has $1
things I could do with $1 million
to memorize the text in 24 million
hours V=1
I=0
E=0

Conclusion: Though I value the reward, I will not be motivated to do this task.
 Steps to increasing motivation, using
expectancy theory
• . Improving Improving Valence
Improving Expectancy
Instrumentality

Improve the ability of the Increase the individual’s Make sure that the
individual to perform belief that performance will reward is meaningful
lead to reward
• Observe and recognize to the individual
•Make sure employees
performance •Ask employees what
have skills for the task •Deliver rewards as promised
•Provide training •Indicate to employees how
rewards they value
•Assign reasonable tasks previous good performance led •Give rewards that are
and goals to greater rewards valued
GOAL-SETTING THEORY
GOAL-SETTING THEORY
• Developed by Edwin Locke in 1960s
• Goal setting is linked to task performance.
• Specific and difficult goals lead to higher
performance.
– Goals tell an employee what needs to be done
and how much effort will need to be
expended.
• Difficult goals, when accepted, result in higher
performance than do easy goals.
 How to use goal-setting theory in the
workplace
• Identify the purpose of the goal
• Meet with the employee
• Develop a plan using the SMART model
• Make sure the employee has what they
need to accomplish the goal
• Provide regular feedback
SMART model by Locke
• Specific: a goal should be as clear as possible.
– Incorrect: employees should improve their customer
satisfaction ratings
– Correct: employees should improve their customer
satisfaction ratings by 10% over the next month.
• Measurable: a goal should be measurable.
– Incorrect: increase sales
– Correct: increase sales by 12% over the next six
months.
SMART model….
• Aggressive:
–A goal should be fairly challenging
to keep employees engaged and for a
better reward upon accomplishment.
–The goal set must be slightly higher
than an employee's skill set to keep
the employee engaged
SMART model………….
• Realistic:
– A goal should be based in reality.
– Out of reach (impossible) goal do not offer
motivational value to employees. It results in loss of
interest and perseverance
• Time-bound:
– A goal should have a clear timeframe to be reached.
– For example, rather than saying…increase sales by
10%, Say increase sales by 10% over the next 90 days.
Equity Theory
 Equity theory
– Developed by J. Stacy Adams.
• Adams' Equity Theory is built-on the belief that
employees become de-motivated, both in
relation to their job and their employer, if they
feel as though their inputs are greater than the
outputs.

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Managerial implications of equity theory
– Underpaid people experience anger.
– Overpaid people experience guilt.
– Perceptions of rewards determine
motivational outcomes.
– Negative consequences of equity
comparisons should be minimized, if not
eliminated.

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 How to Apply the Adams' Equity Theory
• Equity theory aims to strike a balance between
an employee’s input and output in a workplace.
If the employee is able to find his or her right
balance it would lead to a more productive
relationship with the management.
• It is important to consider the Adams' Equity
Theory factors when striving to improve an
employee's job satisfaction, motivation level,
etc.
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 How to Apply the Adams' Equity Theory
In order to improve an employee's job satisfaction and
motivation level, consider the balance or imbalance
that currently exists between your employee's inputs
and outputs
Inputs include:
• Effort, Loyalty, Hard work, Commitment, Skill, Ability,
Adaptability, Flexibility, Acceptance of others,
Determination, Enthusiasm, Trust in superiors, Support
of colleagues, and Personal sacrifice.

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 How to Apply the Adams' Equity Theory
Outputs include:
• Financial rewards (such as salary, benefits,
perks),
• Intangibles (such as Recognition, Reputation,
Responsibility, Sense of achievement, Praise,
Sense of advancement/growth, and Job
security).

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Reinforcement Theory
Reinforcement Theory
Developed by B.F. Skinner.
Focuses on the impact of external
environmental consequences on
behavior.

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Reinforcement Theory

The Reinforcement Theory is one of the

oldest theories of motivation which
describe behavior and how we act.
This theory can called as “behaviorism”
or “operant conditioning”.

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 Reinforcement Theory

Reinforcement theory includes four approaches,

these approaches are:
• Positive reinforcement
• Negative reinforcement
• Extinction
• Punishment

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Positive reinforcement
• Positive reinforcement means that if someone
gives a positive response to something or do
some positive action he or she should be
rewarded positively. E.g when the teacher
praise the students for good work will have a
positive effect on other students witnessing this
behavior.

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Negative reinforcement

Negative reinforcement is the contrast of

positive reinforcement. For example when a
student comes late in class and the instructor
won't let him/her in the classroom, in this
case it is a negative reinforcement for other
students and can have positive effects on the
behavior of others.
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Negative reinforcement
Negative reinforcement is able to have
positive effects on the behavior of others, like
for creating a classroom that is safe for all the
learners.

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Extinction

Extinction means “absence of

reinforcements”.
In short it means, “ lowering the probability
of undesired behavior by removing the
reward for that kind of behavior”.

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Punishment
Punishment happens when an individual
brings some harm to the organization and he
or she did something wrong so in this case
the boss can punish the employee say by
reducing his/her salary/ wages.

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Punishment
According to Skinner (1972) A person resorts
to punishment in order to suppress unwanted
behavior.
In short, Punishment is designed to remove
awkward, dangerous, or otherwise unwanted
behavior with an assumption that a person
who has been punishes is less likely to behave
in the same way again.
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 Guidelines for using punishment
– Tell the person what is being done wrong.
– Tell the person what is being done right.
– Match the punishment to the behavior.
– Administer punishment in private.
– Follow laws of immediate and contingent
reinforcement.

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