©2004 by Nelson, a division of Thomson Canada Limited 1 Chapter 15 Motivation and Leadership

©2004 by Nelson, a division of Thomson Canada Limited1

Chapter 15

Motivation and Leadership


What Would You Do?

Leadership: Dealing with tragedy Sandler O’Neill is an investment

banking firm located in the World Trade Center on September 11

Top leaders are lost in tragedy Can new leadership help the firm

survive this catastrophic event?


Learning Objectives:What is Motivation?

After reading the next section, you should be able to:

1. explain the basics of motivation


Basics of Motivation

Exhibit 15.1


Basics of Motivation

Effort and performance Need satisfaction Extrinsic and intrinsic motivation Motivating with the basics


Work Performance and Motivation

Exhibit 15.2


Effort and PerformanceJob performance = Motivation x Ability x Situational

constraints

Job performance how well someone performs a job

Motivation effort put forth on the job

Ability knowledge, skills, and talent of job incumbent

Situational constraints factors beyond individual’s control impacting

performance


Need Satisfaction Needs

physical or psychological requirements that must be met

Unmet needs motivate people Four approaches

Maslow Alderfer McClelland Herzberg


Need Satisfaction and Motivation

Exhibit 15.3


Extrinsic and Intrinsic Rewards

Extrinsic rewards tangible and visible to others contingent on performance

Intrinsic rewards natural rewards associated with performing a task for

its own sake


Rewards and Motivation

Exhibit 15.5


Motivating withthe Basics

Ask people what their needs are Satisfy lower-order needs first Expect people’s needs to change Satisfy higher-order needs by

looking for ways to allow employees to experience intrinsic rewards


Learning Objectives:How Perceptions and Expectations Affect Motivation

After reading the next two sections, you should be able to:

2. use equity theory to explain how employees’ perceptions of fairness affect motivation3. use expectancy theory to describe how

workers’ expectations about rewards, effort, and the link between rewards and

performance influence motivation


Equity Theory

Components of equity theory How people react to perceived

inequity Motivating with equity theory


Components ofEquity Theory Inputs

employee contributions to the organization Outcomes

rewards employees receive from the organization

Referents others with whom people compare themselves

Outcome/Input ratio comparison of outcomes to inputs


Outcome/Input Ratios

Exhibit 15.6


Inequity

When people perceive that their O/I ratio is different from their referent’s.

Underreward referent’s O/I ratio is greater than yours experience anger or frustration

Overreward referent’s O/I is less than yours possibly experience guilt


How People React to Perceived Inequity (Underreward)

Reduce inputs Increase outcomes Rationalize inputs or

outcomes Change the referent Leave


Equity and Motivation

Exhibit 15.7


Motivating with Equity Theory

Look for and correct major inequities

Reduce employees’ inputs Make sure decision-making

processes are fair distributive justice procedural justice


Expectancy Theory

Components of expectancy theory

Motivating with expectancy theory


Components of Expectancy Theory Valence

the attractiveness or desirability of a reward Expectancy

perceived relationship between effort and performance

Instrumentality perceived relationship between

performance and rewardsMotivation = Valence x Instrumentality x

Expectancy


Expectancy and Motivation

Exhibit 15.8


Motivating withExpectancy Theory

Systematically gather information to find out what employees want from their jobs

Clearly link rewards to performance Empower employees to make

decisions that enhance expectancy perceptions


Learning Objectives:What is Leadership?


4. explain what leadership is5. describe who leaders are and what effective leaders do


Leadership

Leaders versus managers

Substitutes for leadership: Do leaders always matter?


Managers versus Leaders

Exhibit 15.9


Substitutes for Leadership: Do Leaders Always Matter

Leadership substitutes subordinate, task, or organizational

characteristics that make leaders redundant or unnecessary

professional orientation, intrinsically satisfying work, cohesive work groups

Leadership neutralizers subordinate, task, or organizational

characteristics that interfere with a leader’s actions

subordinate’s ability, intrinsically satisfying work, organizational rewards beyond leader’s control


Who Leaders Are and What Leaders Do

Leadership traits Leadership behaviours


Leadership Traits

Drive Desire to lead Honesty/integrity Self-confidence Emotional stability Cognitive ability Knowledge of the business


What Really Works

Intelligence

Dominance

Extroversion

Leadership Traits Do Make a Difference


What Really WorksPerformance and Charisma

Charisma and Perceived Leader Effectiveness

Charisma and Leader Satisfaction


LeadershipBehaviours Initiating structure

degree to which leader structures followers’ roles by setting goals, giving directions, setting deadlines, and assigning tasks

Consideration extent to which a leader is friendly,

approachable, supportive, and shows concern for employees


Learning Objectives:Situational Leadership


6. explain Fiedler’s contingency theory7. discuss Hersey & Blanchard’s situational theory


Putting Leaders in the Right Situation: Fiedler’s Contingency Theory

Leadership style: Least preferred co-worker

Situational favourableness Matching leadership styles to

situations


Fiedler’s Contingency Theory

Exhibit 15.12


Leadership Style: Least Preferred Co-worker Leadership style is the way a leader

generally behaves toward followers leaders are generally incapable of changing

their leadership styles Style is measured by the Least

Preferred Co-worker scale (LPC) relationship-oriented task-oriented


Situational Favourableness

How a particular situation either permits or denies the leader’s ability to lead

Three factors leader-member relations task structure position power


Situational Favourableness

Exhibit 15.14


Matching Leadership Styles to Situations

Exhibit 15.15


Adapting Leader Behaviour: Hersey & Blanchard’s Situational Theory

Situational leadership leaders need to adjust their leadership

styles to match followers’ maturityWorker maturity

ability and willingness of worker to take responsibility for directing one’s own work

four levels of maturity: M1 – neither willing nor able M2 – willing but not able M3 – able but not willing M4 – able and willing


Leadership Styles

Leader chooses style based on worker’s maturity for a specific task

Four styles: telling — high task/low relationship selling — high task and relationship participating — low task/high relationship delegating — low task and relationship


Strategic Leadership

After reading this next section, you should be able to:

8. explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership


Visionary Leadership

Charismatic leadership

Transformational leadership


Charismatic Leadership Creates an exceptionally strong

relationship between leader and followers

Charismatic leaders: articulate a clear vision based on strong

values model those values communicate high expectations to followers display confidence in followers’ abilities


Types of Charismatic Leaders Ethical charismatics

provide development opportunities for followers open to positive and negative feedback recognize others’ contributions share information emphasize interests of the group

Unethical charismatics control and manipulate followers do what is best for themselves not the organization only want positive feedback only share information beneficial to themselves


TransformationalLeadership

Generates awareness and acceptance of group’s purpose and mission

Gets employees to see beyond their own needs and self-interest

Goes beyond charismatic leadership Different from transactional leadership


Transformational Leadership

Transformational leaders are visionary and they use:

Inspirational motivation Intellectual stimulation Individualized consideration


What Really Happened?

Leadership: Dealing with Tragedy Deceased employees’ families

given pay check for the rest of the year insurance coverage for five years

Jimmy Dunne became manager and provided strong leadership developed skills in negotiation, calmness,

patience, support, while maintaining strong business focus

Documents

©2004 by Nelson, a division of Thomson Canada Limited 1 Chapter 15 Motivation and Leadership