SOURCE: MANAGEMENT - A GLOBAL

PERSPECTI VE
BY WEI HRI CH AND KOONTZ 1 1
TH
EDI TI ON
Directing/Leading
Leading/Directing
It is defined as the process of influencing people
so that they will contribute to organizational and
group goals.

Managing requires the creation and
maintenance of an environment in which
individuals work together in groups toward
the accomplishment of common objectives.

The managers job is not to manipulate people
but, rather, to recognize what motivates
people.
Human Factors in Managing
Through the function of leading, managers
help people see that they can satisfy their
own needs and utilize potential while
contributing to the aims of the enterprise.

Managers should thus have an
understanding of the roles assumed by
people and the individuality and
personalities of people.
Multiplicity of Roles
Individuals are much more than a productive
factor in managements plans.

They are members of social systems of many
organizations; they are consumers of goods and
services, schools, churches, trade associations, and
political parties.

In these different roles, they establish laws that
govern managers, ethics that guide behavior, and a
tradition of human dignity that is a major
characteristic of our society.
No Average Person
People act in different roles, but they are also
different themselves.

There is no average person.

It is equally important to acknowledge that
individuals are uniquethey have different
needs, different ambitions, different attitudes,
different desires for responsibility, different levels
of knowledge and skills, and different potentials.
The Importance of Personal Dignity
The concept of individual dignity
means that people must be treated
with respect, no matter what their
position is in the organization.

Consideration of the Whole Person
We cannot talk about the nature of people unless
we consider the whole person, not just
separate and distinct characteristics such as
knowledge, attitude, skills, or personality traits.
A person has them all to different degrees.
The human being is a total person affected by
external factors.
People cannot divest themselves of the impact of
these forces when they come to work.
Managers must recognize these facts and be
prepared to deal with them.
Motivation
A general term
applying to the entire
class of drives,
desires, needs,
wishes, and similar
forces.
Motivation Models/Theories
1. Douglas McGregors Theory X and Theory Y
Two sets of assumptions about the nature of
people.
Theory X is pessimistic, static, and rigid.
Control is primarily external, imposed on the
subordinate by the superior.
In contrast, Theory Y is optimistic, dynamic,
and flexible, with an emphasis on self-direction
and the integration of individual needs with
organizational demands.
Motivation Models/Theories
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 fill
formal directions are issued.
Most workers place a greater importance on security over
all other factors and display little ambition.
Motivation Models/Theories
In contrast 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.
Average human beings are willing to take responsibility and
exercise imagination, ingenuity and creativity in solving the
problems of the organization.
That the way the things are organized, the average human
beings brainpower is only partly used.

Motivation Models/Theories
2. Maslows
Hierarchy of
Needs Theory
When one set of
needs is satisfied,
this kind of need
ceases to be a
motivator.
Physiological Needs
Security or Safety Needs
Affiliation or Acceptance Needs
Esteem Needs
Need
For
Self-Actualization

Maslows hierarchy of
needs
Motivation Models/Theories
3. Clayton Alderfers ERG Theory
People are motivated by existence needs,
relatedness needs, and growth.
Existence - concerned mainly with providing basic
material existence.
Relatedness - individuals need to maintain
interpersonal relationship with other members in the
group.
Growth - the intrinsic desire to grow and develop
personally.
Motivation Models/Theories
4. Frederick Herzbergs Motivation-Hygiene
Theory
Satisfiers are motivators and are related to job content
while dissatisfiers, also called maintenance,
hygiene, or job-context factors, are not motivators.
He states that presence of certain factors in the
organization is natural and the presence of the same
does not lead to motivation. However, their nonpresence
leads to demotivation.
In similar manner there are certain factors, the absence
of which causes no dissatisfaction, but their presence
has motivational impact.

Motivation Models/Theories
Self-actualization
Esteem or status
Affiliation or
acceptance
Security or safety
Physiological needs
M
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M
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Challenging work
Achievement
Growth in the job
Responsibility
Advancement
Recognition
Status
Interpersonal relations
Quality of supervision
Company policy and administration
Job security
Salary
Maslows
Needs Hierarchy
Herzbergs
Two-factor theory
Comparison of Maslows
and Herzbergs theories of
motivation
Motivation Models/Theories
5. Vrooms Expectancy Theory
People will be motivated to do things to reach
a goal if they believe in the worth of the goal
and if they can see that what they do will help
them in achieving it.
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
Motivation Models/Theories
Vrooms Expectancy Theory
Motivation = Valence x Expectancy

Motivation Models/Theories
6. The Porter and Lawler Model
Suggests that levels of motivation are based more on
the value that individuals place on the reward.
The components that effect motivation then, are called
valence (what's important to you) and expectancy (can
you do it).
Porter and Lawler suggest that perceived inequality in
this model plays a pivotal role in job
satisfaction. Motivation or effort leads to
performance. This performance is followed by intrinsic
and extrinsic rewards. The perceived equity of those
rewards leads to satisfaction.


Motivation Models/Theories
Value of
rewards
Perceived
Equitable
rewards
Extrinsic
rewards
Intrinsic
rewards
Satisfaction
Performance
accomplishment
Perception of
task required
Effort
Ability to do a
specified task
Perceived effort
and reward
probability
Adapted from L. W. Porter and E. E. Lawler, Managerial Attitudes and Performance (Homewood, IL: Richard D. Irwin, Inc.,
1968), p. 165.
Porter and Lawlers
motivation model
Motivation Models/Theories
7. Equity Theory
Motivation is influenced by an individuals
subjective judgment about the fairness of the
reward he or she gets, relative to the inputs,
compared with the rewards of others.
Balance or
imbalance
of rewards
More than
Equitable
reward
Equitable
reward
Inequitable
reward
Dissatisfaction
Reduced
output
Departure from
organization
Harder work
Reward
discounted
Continuation
at same level
of output
Motivation Models/Theories
Equity Theory
Motivation Models/Theories
8. Goal Setting
Theory of Edwin
Locke
States that when the
goals to be achieved are
set at a higher standard,
employees are motivated
to perform better and
put in maximum effort.
S
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Control
and
Appraisal
Planning
Actions
I
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Objective setting for
motivation
Motivation Models/Theories
9. Skinners Reinforcement Theory
Individuals can be motivated by proper
design of their work environment and
by praise for their performance, while
punishment for poor performance
produces negative results.
Hence, the only way to motivate is to keep on
making positive changes in the external
environment of the organization.

Motivation Models/Theories
10. David McClellands Needs Theory
a theory on three types of motivating needs
which are
o Need for Power
o Need for Affiliation
o Need for Achievement
Motivation Models/Theories
People for high need for
power are inclined
towards influence and
control, like to be at the
center and are good
orators, demanding in
nature, forceful in
manners and ambitious
in life.
They can be motivated to
perform if they are given
key positions or power
positions.
Motivation Models/Theories
People who are social in
nature try to affiliate
themselves with individuals
and groups, are driven by
love and faith, and like to
build a friendly
environment around
themselves.
Social recognition and
affiliation with others
provides them motivation.
Motivation Models/Theories
People with the need of
achievement are driven by the
challenge of success and the
fear of failure.
They set for themselves
moderately difficult tasks, are
analytical in nature and take
calculated risks.
Such people are motivated to
perform when they see atleast
some chances of success.
Special Motivational Techniques
1. Intrinsic Motivation

Refers to motivation that is driven by an
interest or enjoyment in the task itself, and
exists within the individual rather than relying
on any external pressure
It may include a feeling of accomplishment
and self-actualization.
Special Motivational Techniques
2. Extrinsic Motivation

Comes from outside of the individual. Common
extrinsic motivations are rewards like money and
grades, coercion (the practice of forcing another
party to behave in an involuntary manner by use
of threats, or rewards intimidation, or some
other form of pressure or force), and threat of
punishment.
Include benefits, recognition, status symbols, and
money. Competition is in general extrinsic
because it encourages the performer to win and
beat others, not to enjoy the intrinsic rewards of
the activity.
Leadership
Leadership is the art or process of
influencing people so that they will strive
willingly and
enthusiastically
toward the
achievement of
group goals.
Leadership
Good leaders are made not born. If you have the
desire and willpower, you can become an effective
leader. Good leaders develop through a never
ending process of self-study, education, training,
and experience.
- Jago, 1982
Ingredients of Leadership
1. Power
2. A fundamental understanding of people
3. The ability to inspire followers to apply their full
capabilities
4. The leaders style
5. The development of a conducive organizational
climate
Approaches to Leadership
(1) Trait Approach
(2) Transformational and Transactional
Leadership
(3) Charismatic Leadership
(4) Fiedlers Contingency Approach
(5) Path-Goal Approach
(1) Trait Approaches to Leadership
Ralph M. Stogdill found that various researchers had
identified specific traits related to leadership
ability such as:
5 physical traits (such as energy, appearance, and
height)
4 intelligence and ability traits
16 personality traits (such as adaptability,
aggressiveness, enthusiasm, and self-confidence),
6 task-related characteristics (such as achievement
drive, persistence, and initiative)
9 social characteristics (such as cooperativeness,
interpersonal skills, and administrative ability)
(2) Transformational and Transactional
Leadership Approaches
The transformational leadership style occur
when one or more persons engage in such a way
that leaders and followers raise one another to
higher levels of motivation and morality. This is
almost like a synergy that might exist, whereby
everyone gets raised to a higher level of
performance.
(2) Transformational and Transactional
Leadership Approaches
Mahatma Gandhi (1869-
1948) is a great example of a
transformational leader
because he satisfied the needs
of his followers. Instead of
riding those needs to power,
he remained sensitive to a
higher purpose.

His vision of leadership went beyond himself. He believed
in satisfying the needs of all that followed him.
(2) Transformational and Transactional
Leadership Approaches
The transactional leadership theory,
developed by Weber and Bass, is based on the
hypothesis that followers are motivated through a
system of rewards and punishment.
The transactional leader's view of the leader -
follower relationship is one of quid pro quo - or
this for that. If the follower does something good,
then they will be rewarded. If the follower does
something wrong, then they will be punished.
(3) Charismatic Leadership Approach
Charismatic leadership is based on the leader's ability
to communicate and behave in ways that reach followers on
a basic, emotional way, to inspire and motivate.
According to Robert J. House, charismatic leaders may
have certain characteristics, such as:
being self-confident
having strong convictions
articulating a vision
being able to initiate change
communicating high expectations
having a need to influence followers and supporting them
demonstrating enthusiasm and excitement
being in touch with reality


(4) Fiedlers Contingency Approach to
Leadership
People become leaders not only because of their
personality attributes but also because of various
situational factors and the interactions between
leaders and group members.
Based on leadership style --- task-motivated and
relationship-motivated and situation --- leader-
member relations, task structure, and position
power.
(5 ) Path-goal Approach to Leadership
This was developed to describe the way that leaders
encourage and support their followers in achieving
the goals they have been set by making the path that
they should take clear and easy.
In particular, leaders:
Clarify the path so subordinates know which way to go.
Remove roadblocks that are stopping them going there.
Increasing the rewards along the route.
(5 ) Path-goal Approach to Leadership
Leadership Styles Based on Use of Authority
1. Autocratic Leader
He commands and expects compliance, is
dogmatic and positive, and leads by the ability
to withhold or give rewards and punishment.
2. Democratic or Participative Leader
He consults with subordinates and encourages
their participation.
3. Free-rein Leader
He uses power very little, if at all, giving
subordinates a high degree of independence.
Leadership Styles Based on Use of Authority
Autocratic
Leader
Follower Follower Follower
Democratic or
Participative
Leader
Follower Follower Follower
Free-rein
Leader
Follower Follower Follower
The flow of influence with three leadership
styles
The Managerial Grid
A well-known approach to defining leadership
styles is the managerial grid, developed decades
ago by Robert Blake and Jane Mouton.

The managerial grid has two dimensions: concern
for people and concern for production.

Blake and Mouton recognizes five style: 1.1 style,
9.9 style, 5.5 style, 1.9 style, and 9.1 style.
The Managerial Grid
The Managerial Grid
The five resulting leadership styles are as follows:
Impoverished Management (1, 1)
Managers with this approach are low on both dimensions
and exercise minimum effort to get the work done from
subordinates.
The leader has low concern for employee satisfaction and
work deadlines and as a result, disharmony and
disorganization prevail within the organization.
The leaders are termed ineffective wherein their action is
merely aimed at preserving job and seniority.
The Managerial Grid
Task management (9, 1)
Leaders are more concerned about production and have less
concern for people.
The style is based on theory X of McGregor. The employees
needs are not taken care of and they are simply a means to
an end.
The leader believes that efficiency can result only through
proper organization of work systems and through
elimination of people wherever possible. Such a style can
definitely increase the output of organization in short run
but due to the strict policies and procedures, high labor
turnover is inevitable.
The Managerial Grid
Middle-of-the-Road (5, 5)
Basically a compromising style wherein the leader tries to
maintain a balance between goals of company and the needs
of people.
The leader does not push the boundaries of achievement
resulting in average performance for organization.
Here neither employee nor production needs are fully met.
The Managerial Grid
Country Club (1, 9)
This is a collegial style characterized by low task and high
people orientation where the leader gives thoughtful
attention to the needs of people thus providing them with a
friendly and comfortable environment.
The leader feels that such a treatment with employees will
lead to self-motivation and will find people working hard on
their own.
However, a low focus on tasks can hamper production and
lead to questionable results.
The Managerial Grid
Team Management (9, 9)
Characterized by high people and task focus, the style is
based on the theory Y of McGregor and has been termed as
most effective style according to Blake and Mouton.
The leader feels that empowerment, commitment, trust,
and respect are the key elements in creating a team
atmosphere which will automatically result in high
employee satisfaction and production.
Communication
The transfer of information from a
sender to a receiver, with the
information being understood by the
receiver.
The Communication Process
Feedback
Encoding Thought
Transmission
of message
Decoding
Understandin
g
Reception
Receiver Sender
A Communication Process Model
Noise
The Purpose of Communication
1. To establish and disseminate the goals of an
enterprise.
2. To develop plans for their achievement.
3. To organize human and other resources in the
most effective and efficient way.
4. To select, develop, and appraise members of an
organization.
5. To lead, direct, motivate, and create a climate
in which people want to contribute.
6. To control performance.
The Communication Process
External environment:
Customers
Suppliers
Stockholders
Governments
Community
Others
Communications
Planning Organizing Staffing Leading Controlling
The Management Process
The Purpose and Function of Communication
Communication in an Organization
1. Downward Communication
It flow from people at higher levels to those at lower
levels in the organizational hierarchy.

2. Upward Communication
Travels from subordinates to superiors and continues
up the organizational hierarchy.

3. Crosswise Communication
It includes the horizontal flow of information (among
people on the same or similar organizational levels)
and the diagonal flow of information (among people
at different levels who have no direct reporting
relationships with one another).
Communication in an Organization



















Horizontal
Upward
Downward
Diagonal
Information Flow in an
Organization
Forms of Communication
1. Written Communication
Communication in written form
Includes pictograms or visuals, letters,
memorandums, reports, text messages,
electronic messages (e-mail).

Forms of Communication
2. Oral or verbal Communication
Primarily refers to spoken verbal
communication
Includes discussion, speeches, presentations,
interpersonal communication and many
other varieties.
The body language and voice tonality plays
a significant role and may have a greater
impact on the listener than the intended
content of the spoken words.
Forms of Communication
3. Nonverbal Communication
Describes the process of conveying meaning in
the form of non-word messages through e.g.
gestures, body language, or posture; facial
expression and eye contact, object
communication such as clothing, hairstyles,
architectures, symbols, and infographics, as well
as through an aggregate of the above.
Non-verbal communication is also called silent
language and plays a key role in human day to
day life.

Communication Methods
Primitive or conventional method
regular mail (snail mail), morse code

Use of information technology
wired and wireless telephone, fax machine, voice
mail, internet (for e-mail, chatting, etc),
teleconference , and videoconference

Tips for Improving Written
Communication
Use simple words and phrases.

Use short and familiar words.

Use personal pronouns (such as you) whenever appropriate.

Give illustrations and examples; use charts.

Use short sentences and paragraphs.

Use active verbs, such as The manager plans

Avoid unnecessary words.
Tips for Improving Oral Communication
Communicate with a large audience as you would do in a one-to-one
conversation.

Tell a story, an anecdote, and give examples.

Pausedo not rush. In a discussion, a pause shows that you are
listening.

Use visual aids such as diagrams, charts, overhead slides, and
computer graphic presentations.

Communicate confidence and create trust. This can be done by strong
and clear voice, good posture, and a smile.

Use a colorful, specific language and show through your body
language that you are confident and are in command of the situation.