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Understanding Leadership and Motivation in Business Management

This chapter explores the intricacies of leadership and motivation within organizations. It aims to define the leading function as the use of influence to guide employees toward achieving organizational goals. Different leadership theories, including Trait Theory, Behavioral Theories, and Contingency Theories, are classified and discussed. The chapter also delves into motivation, defining it as a need-driven force that creates actions toward fulfilling those needs. Both content and process theories of motivation, including Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory, are examined to understand what drives individuals at work.

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Understanding Leadership and Motivation in Business Management

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  1. General Management In Business I Ass. Prof. Dr. Özgür KÖKALAN İstanbul Sabahattin Zaim University

  2. Chapter Objectives • Definewhatleadingfunction is • Classifyleadershiptheories • Define whatthemotivation is • Classifymotivationtheories

  3. Leading • It is defined as use of influencetodirectandmotivatetheemployeestoaccomplishtheorganizationalgoals. • Thisfunctionmainlyfocuses on people in theorganization.

  4. Leadership in Managing People • Leadership is linkedwithbehavior. It is a processthat an individualinfluencesotherpeopleto do theirworktowardtheattainment of theoverallorganizationalgoals. • Leadershipneedsfollowers. The role of leader is todirectthefollowerstowardthegoals. • Thestyle of leadershipandthereaction of followerswill be determinedbythesituationssuch as thetask, positions, relations, externalpressuresandso on.

  5. TheClassification of LeadershipTheories • Leadershiptheoriesareclassifiedintothreegroups: • TraitTheory of Leadership • Behavioral (Styles) Theories of Leadership • ContingencyTheories

  6. TraitTheory of Leadership • Thesuccess of leaders is undoubtedlyduetotheirpersonalqualities. • Personaltraitssuch as intelligence, appearance, socialmaturity, humanrelationattitudesandso on have an impact on successfulleadership in theorganization.

  7. Behavioral (Styles) Theories of Leadership • Thesetheoriesseeleadership as an aspect of behavior at workratherthan as personalcharacteristics. • Somewell-knownbehavioraltheories of leadershipare: • Authoritarian – DemocraticLeadership Style in a Continuum. • TwoDimensionalLeadership Style.

  8. Authoratarian – DemocraticLeadershipStyles in a Continuum • Accordingtothistheory, managershave a choicebetweenbeingeitherauthoratarianordemocratic. • The main weakness of thistheory is that it putsmoreimportanceandstresses on theleader’sbehaviorthantheotherkeyvariables of leadership.

  9. Two-DimensionalLeadership Style • Twoimportantandseperatedimensions in leadershipbehaviorare • Consideration – considerate of employeefeelings, relationshiporientations. • Initiatingstructure – behaviorconcernedwithworkprocesses, formaltaskformalities. It is possibleformanagertoscorehigh in bothdimensionsthatcontrastwiththeleadershipstyles in thecontinuum.

  10. Leaderswithbestperformanceandgreatersatisfactionare in thissectiom High Consideration for People Low LowInitiatingStructure High

  11. ContingencyTheories of Leadership • There is noonebestleadershipbehaviorthatfitseveryotherbusinesssituation. • FredFiedlercategorizesthetwodimension of leadershipbehavior as • Relationship – orientedbehavior ; leadershavepositiveandconsiderablerelationshipwithsubordinates. • Task –orientedbehavior; leadersareconcernedmuchabouttaskaccomplishment. Thesetwodimension of leadershipbehaviorarestudiedunderthreesituationalvariables, • Leader – memberrelation • Degree of task’sstructure (complexity of tasks) • Powerandauthority of theposition

  12. Motivating People in Organizations • A motive is a need. • Motivescreate an internaltension in humansthatdirectsspesificbehaviorresulting in actionstofulfilltheneeds. • Ifthebehavior is succesfulsothepersongetsrewardsthatsatisfytheneeds. • Theserewards can be intrinsic(individual’sinnersatisfactionreceived in accomplishment) orextrinsic ( rewardgivento an individualbyanotherpersonforsuccessfulaccomplishment.

  13. Motivation is mainlyclassifiedintotwotypes of theories: • Content theories of motivation • Processtheories of motivation.

  14. Content Theories of Motivation • Theyattempttodeterminewhatgenerallymotivatespeople at work. • Theyareconcernedwiththestudy of needsthatmotivatepeople • Therearetwoimportantcontenttheories in motivation: • Maslow’sHierarchy of Needs’ Theory • Herzberg’sTwoFactorTheory of Motivation

  15. Maslow’sHierarchy of Needs’ Theory

  16. Physiologicalneeds: people’sbasicneedssuch as hunger, sleep… • Safetyneeds: peopleneedsecurephysicalandemotionalenviromentprotectedfromviolenceandthreats • Socialneeds: peopleneedtomakefriendshiporto be a part of a group. • Esteemneeds: People needforpower, statusandrecognitionbyotherpeople. • Self – actualizationneeds: Theyarethehigherneedsfor self-fullfillment, developingone’sfullpotential, competence.

  17. Herzberg’sTwo- FactorTheory of Motivation. • Inthistheory, Therearetwofactoraffectingpeople’smotivation: • Hygienefactors: areequaltoMaslow’slowerlevelneedssuch as physiological, safetyandsocialneeds. Theyareveryimportantandshould be present in workplacetopreventdissatisfaction, but they do not motivatepeople. • Motivators: equaltoMaslow’shigherlevels of needs ( esteemand self –actualization). AccordingtoHerzberg, tomotivatepeople at work, managersshouldgivethehigherlevelneeds, themotivators.

  18. ProcessTheory of Motivation • Theyareconcernedwith how todirectbehavior at work. • Theyexplain how workerschoosebehavioralactionstosatisfytheirneeds. • Therearetwoimportantprocesstheories in motivation: • Vroom’sExpectancyTheory of Motivation • TheEquityTheory

  19. Vroom’sExpectancyTheory of Motivation • Motivationdepends on people’sexpectationabouttheirabilitytoperformtasksthatwill be followedby a desiredoutcome.

  20. To be motivatedindividualsshouldbelievethat: • Theireffortswillleadtohighperformance • High performancewillleadtooutcome • Theoutcome is desiredbythem ( Thevalue of outcomefortheindividual is called as valence) Theprocess can be formulated as follows: Motivation = Effort x Performance x Valence

  21. EquityTheory of Motivation • Thistheoryfocuses on an individual’sperception of how fairly he is treatedrelativetootherpeople in similarjobs. • An individualwillevaluateequityby a ratio of inputtooutcome. • Inputsareeffort, experience, education, ability , etc. Outcomesare pay, recognition, promotion, statusetc. • An individual’soutcometoinputratiowill be comparedwiththeotherindividual’soutcomeandinputratios. • Iftheratiosareout of balancethenperceivedinequitywillcreatetensionswithintheindividuals. Insuchsituationindividualswill be motivatedtobringequityintobalance

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