Leading and Motivating

o Leadership-- definition and styles

o Communication and its importance
o Motivation theories
Leadership-- definition and styles
Leadership is a process of leading and guiding the fellow subordinates to achieve a desired goal. It
is the capability of an individual to influence the behavior of others. Leaders must have the capability
to take fast and decisive action, can handle competitive situation, inspire others to perform their best.
Leadership is a human factor that encourages others and binds them together within an organization
to fulfil desired goal.

Leadership styles: Leadership styles is au behavioral approach that leaders use to influence,
motivate, guide, direct and control the followers. A leadership style determines how leaders make
different plans and policies to achieve target. There are variety of leadership style which identify
degree of authority delegated to the employees and degree of trust. Generally, there are five types of
leadership styles, which are described below.

▪ Autocratic Leadership (Authoritarian)-In this leadership style, leader takes all the decision on
behalf of team without taking any suggestion from team members. The leader has all power,
authority and responsibility. All the team members are bound
to follow the decision taken by the leader. No suggestions are accepted from team members. It
can be said employees under this type of leadership perform the work without any job satisfaction,
morality and sometime due to fear.
▪ However, autocratic leadership can be an effective approach in cases where the leader is
experienced and knowledgeable and employees are freshers or very less experienced.
▪ Democratic Leadership (Participative)- It is a collaborative leadership style where each team
member participates to contribute suggestions to the ongoing projects. However, the leader
makes the final decision. This leadership is popular and effective because it gives lower-level
employees a voice that makes them feel important in the organization.
▪ Democratic leadership also involves the delegation of authority to other people who determine
work assignments. It utilizes the skills and experiences of team members in carrying out tasks.
This leadership style encourages creativity and engagement of team members which results in
high job satisfaction, morality and high productivity.
▪ Laissez-Faire Leadership (Delegative) - Laissez-faire leadership is an approach to leadership
that provide team members with the necessary tools, information, and resources to carry out work
by themselves. They have the freedom to plan, organize, make decisions, handle problems, and
complete the assigned projects. It empowers employees for creativity, innovation, uplift
productivity and employees get self-motivated. It also led to job satisfaction.
Communication and its importance
The word “communication” has been derived from a Latin word “Communis” which means
“common” or “shared" in English. A communication is a two-way process of sharing information
between two or more people or groups. This continuous process requires at least one sender and
one receiver to exchange messages or information. These messages can include variety of ideas,
imaginations, emotions, or thoughts.
There is a very close link between communication and management. Managerial roles like
planning, hiring staff, overseeing work, leading teams, directing, etc. are depended on effective
communication because with proper communication handling these tasks to achieve the greatest
success is extremely difficult. An efficient manager must be able to receive accurate information
to set proper objectives and then send the accurate information for executing the plans. Every
department in an organization can remain informed, if the communication between the
departments and their managers are in order.
Communication is important in building good relationships within the structures of an
organization and also outside of it, globally. It acts as a foundational stone for brainstorming,
assigning tasks, supervising and forming bonds. While planning, organizing, leading, controlling,
etc. effective communication is essential for managers since they are constantly engaged in
communication throughout the day, whether it’s formal, informal, verbal, written or through video
or audio calls. The significance of communication has the following major aspects:
1. The foundation for decision making: Without proper communication skills, no decisions
can be taken for the organization or otherwise. Proper communication helps the decision
makers to gather accurate data and information from various sources so that they can form the
best possible opinions. A manager, without accurate communication skills, can lead his or her
team to success by achieving the desired goals.
2. Delegating responsibilities: Effective communication is of utmost importance for
successfully delegating tasks and responsibilities. By clearly mentioning the organization’s
expectations, managers can ensure that team members have a complete understanding of their
roles and duties in the overall project or goal. This clarity helps preventing any
misunderstandings thus reducing mistakes and enhancing the overall efficiency of the team.
3. Developing relationship: Proper communication is of utmost important for any professional
or personal relationship. It helps to grow the understanding between the people or groups
conversing. This helps in increasing the trust and the chance of cooperation among the
individuals or groups.
4. Sharing information: Information sharing is particularly important in decision making,
coordinating, problem solving, etc. Effective communication will ensure that important
information is properly communicated among all. With proper communication skills,
explaining to various individuals or departments, the organizational goals and the process to
achieve the goals becomes easy.
5. Managing teams and conflicts: Effective communication is essential for leading the teams,
cultivating cooperation and making sure that everyone is working together to achieve
company’s desired goals. A manager’s effective communication skills can help in resolving
any problem among his or her team efficiently along with providing constructive feedbacks
to the team members thereby motivating them to achieve the organizational goals.
6. Building motivation: A manager’s way of communication can make or break a team. Their
positive approach towards effective communication can help is increasing the morale and
motivation among the employees and negative approach can destroy an employee’s
motivation to work. Constructive feedbacks, feeling valued, etc. by the managers are essential
aspects of motivation among the employees which effects the employee’s quality of work.
7. Positive environment and work culture: Transparent communication adds to the
development of a positive work culture inside an organization. From sharing information
openly to discussing ideas and expectations at all levels of the management, an organization
can build an environment where employees feel that they themselves and there are valued and
validated. This develops trust among the employees as they feel that the organization and its
management is reliable which motivates the employees to work collectively so that their
organizational and personal goals are fulfilled together.

Motivation theories
Motivation is a process of willingness to exert high level of effort for fulfilling organizational
goals. It is an internal or external psychological factor of an individual that arouse enthusiasm
and persistent to complete the task. Stephen P. Robbins state that “Motivation is the
willingness to exert high level of effort towards organizational goal, conditioned by effort’s
ability to satisfy some individual need.” Basic elements of motivation include targets, motives
to accomplish and individual behavior. Targets means goal, towards which employees move.
By achieving this targets employee get rewards or punishment. Motives means initiation to do
the activities. It encourages people towards targets. Behaviour means series of activities that are
done to reach to the goal.

Maslow’s Theory of Hierarchical Needs: Abraham Maslow postulated Hierarchical need theory.
According to him a person will be self-motivated when all his demands are fulfilled. Basic need of
a person is psychological need social need and safety need. Along with this they also want to
contribute their skill and experience and grow themselves with the organization. Maslow
demonstrated this theory by making a pyramid to show how people get motivated step by step he
also explains that one cannot move to the next level of motivation until the lower level demands
are full filled.
• Physiological needs: Physiological needs are basic needs that includes food, shelter, clothes,
water etc. So basically, these are needs for survival.
• Safety needs: Physical, environmental and emotional safety and protection are included in
safety needs which enhance self- motivation. Protection from threats, health security, secure
employment, and property are also included.
• Social (belongingness and love) needs: The need includes love, care belonging, association,
affiliation, friendship, and so on.
• Self-esteem needs: The need for respect, confidence, status, power and recognition. It can
be of two types: internal esteem needs like self-respect, freedom, achievement, potentiality
and external esteem need like power, status, reward, affiliation, recognition.
• Self-actualization needs: self-actualization means gathering knowledge, creativity and
being aesthetic. It also brings individua's psychological growth and help to cope up
difficulties. It includes urge to become who you are based on your potentiality. It gives
opportunity for personal development, learning, creativity, challenging work. Self-
actualization is the highest-level need to which a person can aspire.
 Self -actualization
need

Self-esteemed need
Social need

Safety needs

Physiological need

Maslow's Hierarchy of needs also have some criticism which includes

• This theory has not mentioned about portion of need that must be fulfilled to move to the
next level.
• Different individual has different taste of demand. In one-person physiological demand
predominant then other.
• In this theory there is lot of lack of clarity and consistency.

Hertzberg’s two-factor Theory: This theory was coined by Fredrick Herzberg. In 1950, he
made an interview on 200 accountant and engineers employed by a firm near Pittsburg.
Hertzberg theory of motivation is based on two factors: one is hygiene factor and other is
motivational factor. These factors are like maintenance and satisfier. The purpose of the study
was to understand what people wants and which factor motivates them. Motivational factor
increases job satisfaction whereas dissatisfaction can be minimized by hygiene factor. This study
found that people get motivated by some factors but they never mention them. On the other hand,
the factors which demotivates them become more highlighted. A person identifies "low pay" as
factor of dissatisfaction but never mention "high pay" as a satisfying factor.
• Hygiene factor: -Hygiene factors are those factors which motivates an employee in an
organization. Presence of these factors may not satisfy employees but its absence makes
employees dissatisfied. These factors describe job environment. Hygiene factors are also
called maintenance factor or dissatisfier as these factors avoids dissatisfaction. Hygiene
factors include remuneration, company policies, interpersonal relation, physical working
condition, fringe benefit, job security. For example, we can say an employee is working in
an organization having good interpersonal communication with the superiors and colleagues.
This is a normal scenario. But if there was a communication gap between superiors and
subordinates then that would make an employee dissatisfied. So, presences of good
interpersonal communication don’t motivate employees but its absence demotivates them.
• Motivational factor: - Motivational factors are also called satisfier. According to this theory
these factors are positive in nature. It motivates employees for betterment of performance.
These factors are like psychological needs that perceive additional benefits. Absence of this
 factor does not demotivate employees but its presence motivates the employee. Motivational
factors include promotion, recognition, achievement, growth opportunity, responsibility. For
example, we can say an employee will be more focused about his work if he is recognized
by his department or by his managerial head. This in return motivates the employee to
perform with his or her full potential.

Criticism of Herzberg’s Two factor theory

This theory is an oversimplified method of true relation between dissatisfaction and motivation.
It is seen that one factor can cause satisfaction to one employee and that factor causes
dissatisfaction to other. The factors affecting satisfaction and dissatisfaction are interrelated.
Presence of motivational factor introduced an employee to his or her growth but at the same
time its absence makes the person disappointed.
Job Satisfaction

Motivational Factor Hygiene Factors

Salary

Job Satisfaction
Promotion
Working Condition
Achievement
Supervision
Recognition
Relation with others
Responsibilities
Job security
Advancement

McClelland’s Theory of Needs: McClelland along with his associates proposed McClelland’s
Need Theory. This theory depicts that irrespective of age, gender, sex, culture, every individual
has three motivating drivers which are dominant in behavior and depends on life experiences.
The three motivators are:
• Need for achievement(nAch)
• Need for affiliation(nAff)
• Need for power(nPow)
Need for achievement(nAch): Achievement means having powerful urge to set and achieve
goals. It is a process of demonstrating own competence. Individual with high achievement need
prefer tasks that incorporates personal responsibility and own efforts. People who are achievement
oriented gets motivated when they fulfill their target. It in return helps them to focus more on
their work in more effective manner. Some features of Need for achievement includes-
• They need immediate feedback to know whether they are improving or not.
• Their main motive is to set target and achieve that.
• They always look for promotion, increment in their job.
• Need for achievement is directly related to high performance.
Need for affiliation(nAff): Affiliation means need for love, belonging and social acceptance.
Persons being liked and accepted by other motivates them. They love social gathering,
cooperation and mutual understanding. Individuals who are appreciated through affiliation like to
have supportive environment, effective performer of the team. Some features of Need for
affiliation includes-
• They prefer friendly environment rather than competitive one.
• Cooperation, social acceptance motives them more.
• High degree of understanding is required in this type of need.
Need for power(nPow): Need for power makes a person more dominating and influential,
controlling. They also have leading characteristics. Individual with a high need for power aspire
for positions with status and authority It is seen that individual with need for power have positive
effect as they focus on productivity. Some features of Need for power includes-
• They are influential persons and love to control others.
• They prefer status-oriented situation and are competitive in nature.

Alderfer’s ERG Theory: C. P. Alderfer, an American psychologist, developed an alignment with

Maslow’s hierarchy of needs. According to him this theory suggests that there are three groups
of core needs: existence (E), relatedness (R), and growth (G).
• Existence needs: - Existence needs mean basic requirement for a normal lifestyle, which
includes food shelter clothing, secured employment, property, health benefit. All these are
included in physiological and safety need of Maslow and are merged together as existence
need by Alderfer.
• Relatedness needs: - Relatedness needs deals with interpersonal relationship and effective
understanding. These are based on social interaction. Individual having this related need are
relationship oriented. Related need is aligned with Maslow's Need for love and belongings.
It includes friendship family, gaining respect from others.
• Growth needs: - Growth needs describe innate desire for personal development. These
needs are aligned with Maslow’s esteem-related needs and self-actualization needs. This
growth need includes self-esteem, self-confidence, and achievement, morality, creativity,
problem-solving. Basically, it means one who wants to achieve the best out of his or her full
potentiality.
Vroom’s Theory of Expectancy

Vroom’s expectancy theory of motivation contributes the concept of motivation and determine
how much effort is needed to expand their job. This model says that individual’s motivation
toward a work is dependent on the nature of reward they will get as a result of their
performance. It is also believed that an individual’s motivation is affected by their
expectations about the future. According to Victor Vroom, an individual’s motivation is
affected by –

• Valence(V): Valence means inducement of an individual to get an expected outcome.

It means how much importance the individual places upon the expected outcome. It is
subjective and it varies from person to person. For example, if an individual is more
affectionate about getting recognized, then he will not valance for cash money.
• Expectancy(E) (Effort -Performance Probability): Expectancy is related to
performance and is referred Effort-Performance Probability. It is seen that increased
effort will tend to increased performance. As this expectancy is dependent on outcome,
so it can be determined by 0 and 1. It means that if probability of getting the expected
outcome is high, then the person will put maximum effort to achieve it. On the other
hand, if the probability of reaching to the outcome is 0 then individual will not put any
effort. This expectancy is affected by certain things like: availability of raw materials,
time, availability of skilled, experienced manpower, having appropriate planning,
controlling and directing process and required support to complete the work.
• Instrumentality(I): Instrumentality is related to probable performance and its outcome
which is dependent on various level of effort. In other word it can be said that it is an
expectation of people to get desired outcome if he or she put maximum effort to perform
at its best.
For example, an employee wants to get promotion. So superior performance is an important aspect
to achieve it. Now the employee will perform to its fullest for superior performance (first level
outcome). And this first level outcome will instrumental to get promoted (Second level
outcome). This is affected by: clear understanding of relationship between performance and
outcomes (rules of the reward ‘game’), transparent process to get outcome.

Motivation = V * E* I

From the above equation it is seen that motivation is multiplication of valance, expectation and
Instrumentality, so motivation will be highest when all the three factors are high and will turn
down if any of the factor reduces.
McGregor’s Theory X and Theory Y: Douglas McGregor’s Theory X and Theory Y were first
explained in his book, "The Human Side of Enterprise," and it refer to two styles of management
– authoritarian (Theory X) and participative (Theory Y).
Assumptions of Theory X:
• An average employee does not like to work of its own. They always try to escape
from their job whenever possible.
• As employees does not like to work, they are warned repeatedly to achieve their target.
• Employees does not like responsibility and resist changes.
• They are not ambitious persons and prefer to be directed by others(superior)
• They do not participate in innovation and creativity.
• Employees lack self-motivation.
• Employees prefer autocratic leadership and centralization of authority in the
organization.
• They only focus on lower-level need of motivation (physiological and safety need).

According to McGregor, this theory is very "hands-on" and involves micromanaging

people's work so that their work gets done properly.

Assumptions Theory Y:
• Employee exert physical and mental effort in an inherent manner in their jobs.
• As employees likes their work, they do not need any kind of threat, warning to
perform their work.
• Employees are ambitious, self-motivated, self-directed, and are dedicated to achieve
the organizational activities.
• Employees likes to take challenges and positively welcome
changes in organization’s activities.
• They love to participate in decision making process and are creative in nature.
• Employees prefer democratic leadership and decentralization of authority in the
organization.
 • They focus on lower and high-level need of motivation (social, esteemed and self-
actualization).

Theory X is widely used in unskilled production line work, whereas Theory Y is appreciated for
knowledge work.

Adam’s Equity Theory: J. Stacy Adams' Equity Theory (developed in 1963) is also known as
the Equity Theory of Motivation. It posits that employees get motivated when they find that they
get a fair output for their work. This theory is focused on principle of balance. Individual’s
motivational level is dependent on perception of equity, justices and fairness. While valuing fair
treatment, individual focuses on job input (his contribution) and outcome he gets (compensation,
remuneration) and is also compared with colleagues of equal category. O/I ratio is used to identify
equity level.
Inputs typically include: effort, loyalty, hard work, commitment, skill, ability, adaptability,
flexibility, acceptance of others, determination, enthusiasm, support of colleagues, personal
sacrifice.
Outputs typically include: Financial (tangible) rewards such as salary, benefits, perks. Non-
financial (Intangibles)rewards such as: recognition, reputation, responsibility, sense of
achievement, praise, sense of advancement/growth, job security.

Individual’s output Relational partner’s output

Individual’s input Relational partner’s input

If an employee feels that he is inequitably rewarded then he will reduce his production, feels
dissatisfied and may depart from organization. If feels equitably rewarded then he will continue
his output at same level. And if he gets more that equitable rewards then he will increase his
production, will become hard worker.

Reinforcement theory: Reinforcement theory was developed by B.F.Skinner who explained

that it is a psychological principle that shapes the behavior of an individual by its consequences.
This theory came from a old story of donkey and carrot which explained that a carrot is put in
front of the donkey to make him move and a stick is there to jab him from behind if he stops
moving. This is same for motivating employees. To get desirable behavior, organization may
put carrot (monetary reward, promotion, salary, increment, recognition, bonus, allowance, fringe
benefit) in front of the employee or can jab him with stick (penalties, fines, loss of job, demotion)
to refrain from undesirable behavior. Managers uses this theory to maintain desirable behaviour
in workplace by the following ways.

• Positive reinforcement- It is a type of boosting that strengthen desirable behaviour. It

is a positive aspect that build up positive behaviour. For example, providing incentives
encourages the employee to achieve challenging targets.
• Negative reinforcement- It involves taking away unwanted stimuli in order to
encourage desired behaviour. By removing negative reinforcement, an individual is
encouraged to continue his or her positive behaviour. For example, a manager cancelled
the meeting once he found that his team members are successfully completing the
project ahead of schedule. This cancellation of meeting act as a negative reinforcement
which encourages team members to continue their work efficiently.
• Punishment-It is an effective modification of behaviour that forces an individual to
follow desirable behaviour. In psychology, it refers to negative stimuli that follows an
undesirable behaviour. It can be positive or negative. If punishment leads to desirable
behaviour out of fear, then it is positive. But if it leads to undesirable behaviour then it
will be negative (suppressed behaviour makes a person anxious). Punishment is more
effective if it is applied immediately undesirable activities are noticed.
• Extinction-The goal of extinction is to reduce the occurrence of undesired behaviours.
Consequences can be withheld to reduce a specific learned behaviour from continuing.
By not offering positive reinforcement, desired behaviour can also be reduced or
extincted. For example, if the manager stops providing reward for achieving targets, the
employee will also reduce his desirable behaviour i.e. performing efficiently to fulfil the
target.