These notes are NOT comprehensive, just a bunch of things I feel are more important than the rest of the material. During prep, we still have to go through the material.

Managers vs Leaders

Leadership, is the art or process of influencing people so that they strive willingly and enthusiastically towards the achievement of group goals.

Managers	Leaders
Focus on things	Focus on people
Do things right	Do the right things
Plan	Inspire
Organize	Influence
Direct	Motivate
Control	Build
Follow the rules	Shape entities

Theories of Motivation

1. Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs is a theory of psychology explaining human motivation based on the pursuit of different levels of needs.

Physiological
Safety
Social
Esteem
Self-Actualization → The drive to become what one is capable of becoming. As each need is substantially satisfied, the next need becomes dominant.

Questions usually ask for a diagrammatic representation. Draw a pyramid with the base as physiological needs and self-actualization at the top.

Physiological Needs: Organizations meet employees’ physiological needs by providing adequate salary, work breaks and safe working conditions.
Safety Needs: Organization meet employees’ safety needs by providing safe working conditions, job security and fringe benefits (medical insurance, sick pay, pensions etc).
Social Needs: Organizations meet employees’ social needs by providing them with the opportunity to interact with others, to be accepted and to have friends. Many organizations schedule employee parties, picnics, trips and support office teams.
Esteem Needs: Organizations meet employees’ esteem needs with merit pay rises, recognition, challenging tasks, participation in decision making and opportunity for advancement.
Self-Actualization Needs: Organization meet their employees’ self-actualization needs by providing them with opportunities for skill development, the chance to be creative, promotions and the ability to have complete control over their jobs.

2. Herzberg’s Two Factor Theory

The two-factor motivation theory, otherwise known as Herzberg’s Motivation-Hygiene Theory or Dual-Factor Theory, argues that there are separate sets of mutually exclusive factors in the workplace that either cause job satisfaction or dissatisfaction.

Satisfiers (Motivators): Improving these factors helps to increase job satisfaction.
Dissatisfiers (Hygiene Factors): Improving these factors helps to decrease job dissatisfaction.

Satisfiers	Dissatisfiers
Performance and Achievement	Salary
Recognition	Working Conditions
Job Status	The Physical Workspace
Responsibility	Relationships with Colleagues
Opportunities for Advancement	Relationship with Supervisor
Personal Growth	Quality of Supervisor
The Work Itself	Policies and Rules

3. McGregor’s Theory X and Theory Y

Theory X and Theory Y are part of motivational theories. Both the theories, which are very different from each other, are used by managers to motivate their employees.

Theory X gives importance to supervision, whereas,
Theory Y stresses on rewards and recognition.

Assumptions of Theory X (Traditional Belief)

An average employee intrinsically does not like to work, and tries to escape it whenver possible.
Since the employee does not want to work, he must be persuaded, compelled or warned with punishment so as to achieve organizational goals. A close supervision is required on the part of managers. The managers adopt a more dictatorial style.
Employees generally dislike responsibilities.
Employees resist change.
An average employee needs formal direction.

Assumptions of Theory Y (Belief Based on Research)

Employees can perceive their job as relaxing and normal. They exercise their physical and mental efforts in an inherent manner in their jobs.
They may not require only threat, external control and coercion to work, but they can use self-direction and self-control if they are dedicated and sincere to achieve the organizational objectives.
If the job is rewarding and satisfying, it will then result in employees’ loyalty and commitment.
A naverage employee can learn to admit and recognize responsibility.
Employees have skills and capabilities. Their logical capabilities must be fully utilized.

Theory X	Theory Y
Its a motivational theory, which involves high supervision and control over the subordinates and a greater degree of centralization.	Its an advanced theory, wherein it is assumed that the workers are self-directed and self-motivated, for growth and development and take an active part in decision making.
Dislikes work	Work is Natural
Little to no ambition	Highly ambitious
Avoids responsibility	Accepts and seeks responsibility
Autocratic leadership style	Democratic leadership style
Constant direction is required	Little to no direction is required
Tight control	Lenient control
Centralized authority	Decentralized authority
No self-motivation	Self-motivated
Focuses on psychological and security needs	Focuses on social, esteem and self-actualization needs

Motivational Techniques

Positive Techniques

Praise and give credit where its due.
Take a sincere interest in employees as individual people.
Promote healthy competition.
Develop and utilize the appeal of pride in the workplace.
Delegate a substantial amount of both work and responsiblity to subordinates.
Fix fair wages and monetary individual or group incentives.
Formulate a suitable suggestion/feedback system.
Provide opportunities for growth and advancement.

Negative Techniques

Reprimanding employees.
Demotion.
Lay-offs.
Discharge.

The proper proportioning of positive and negative techniques is the mark of a skillful manager.

Special Motivational Techniques

Money: Economists and most managers place money high on the scale of motivators, but behavioral scientists place it low.
Positive reinforcement
Job enrichment.
Participation.

Leadership Styles

There are three theories on leadership behavior and styles

Leadership Based on the Use of Authority
Liker’s Four-Systems of Managing
The Managerial Grid

Styles based on the Use of Authority

1. Autocratic Leadership

The autocratic leader commands and expects compliance, is positive and leads by ability to withhold or give rewards and punishment. This style is used when leaders tell their employees what they want and how they want it acoomplished without getting the advice of their followers.

Some of the appropriate conditions to use it in is when you have all the information required to solve the problem and your employees are well-motivated.

The autocrat leadership style manages teh direction of all goals and work with little to no input from the team. They have all the power to make decisions and they use it. They don’t worry about input and do not leave room for subordinates to sub-manage.

This style should only be used in rare occasions (military, manufacturing, construction).

2. Democratic/Participative Leader

The democratic leader consults with subordinates on proposed actions and decisions and encourages participation from them. This style involves the leader including one or more employees in the decision making process. However, the leader maintains the final decision making authority.

This is normally used when you have part of the information and your employees have other parts.

3. Delegative/Free-Reign Leader

The free-reign leader uses his/her power very little, if at all, thus giving subordinates a high degree of independence in their operations. Such leaders depend largely on subordinates to set their own goals and the means of achieving them.

In this style, the leader allows the employees to make the decisions but still bears the responsibility for the decisions made.

Forces that influence which style is to be used

Time constraints
Are relationships based on respect and trust or on disrespect
Who has the information?
How well are your employees trained and how well you yourself know the task.
Internal conflicts
Stress levels
Type of task. Is it structured, unstructured, complicated, or simple?
Laws or established procedures such as training plans.

Likert’s 4 Systems of Managing

Likert conducted research to study the patterns and styles of managers over three decades and developed a four-fold model of the management system that helped in understanding the leadership behavior.

Exploitative Authoritative
Benevolent Authoritative
Consultative
Participative

1. Exploitative Authoritative

Managers are highly autocratic with no trust or confidence in subordinates.
They motivate people through fear and punishment and reward them only occasionally.
Engage in downward communication and limit decision making to the top.
Responsibility lies in the hands of the people in upper levels of the hierarchy.
Decisions are imposed on the subordinates who are not free at all to discuss things about their jobs with superiors.

2. Benevolent Authoritative

Managers have a patronizing confidence and trust in subordinates.
Motivate with rewards and some fear & punishment.
Permit some upward communication.
Allow some ideas and opinions from subordinates.
Allows for some delegation of decision making but with close control.
Responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy.
Subordinates do not feel free to discuss things about their jobs with their superiors.

3. Consultative

Managers have substantial but not complete confidence and trust in subordinates.
Usually try to make use of subordinates ideas and opinions.
Use rewards for motivation with occasional punishment and some participation.
Engage in both upward and downward communication.
Make broad poilcy and general decisions at the top while allowing specific decisions to be made at lower levels and act consultatively in otehr ways.
Responsibility is spread widely through organizational hierarchy.

4. Participative

Managers have complete trust and confidence in subordinates in all matters.
Seek ideas & opinions from subordinates and constructively use them.
Engage in downwards and upwards communication.
Encourage decision making throughout the organization.
Operate among themselves and with their subordinates as a group.

The Managerial Grid

The managerial grid model is a self-assessment tool by which individuals and organizations can help identify a manager’s or leader’s style.

The model is represented as a grid with _concern for production_as the x-axis and concern for people as the y-axis, each axis ranges from 1 (Low) to 9 (High). The resulting leadership styles are as follows:

Impoverished Management: In this style, managers show low concern for both people and production. They use this style to preserve jobs and job seniority, protecting themselves by avoiding getting into trouble. The main concern for the manager is to not be held responsible for any mistakes, which results in less innovative decisions.
Country Club Management: This style has a high concern for people and a low concern for production. Managers use this style to pay attention to the comfort and security of their employees in the hope that this will increase performance. While the atmosphere is friendly in this approach, it’s not necessarily very productive.
Middle of the Roads: In this approach, managers have a mediocre concern for both people and production. By giving some concern to both people and production, managers who use this style hope to achieve suitable performance but doing so gives away a bit of each concern so that neither production nor people needs are met.
Autocratic Task Management: Managers are concerned only with high production with little to no concern for people.
Team Management: Managers here display in their actions highest possible dedication to both people and production. They are real team managers who are able to mesh the production needs of the enterprise with the needs of the individuals.

Summary (So Far)

Decision Making - Committee, Teams & Groups

Group Development

Groups go through four stages:

Forming: When the members of the group get to know one another.
Storming: When the members of the group determine the objective of the meeting and conflicts arise.
Norming: When the group agrees on norms and some rules of behavior.
Performing: When the group gets down to the task.

Committee

A committee is a group of persons to whom, as a group, some matter is committed. Also referred to as a board, task force, autonomous work group etc.

Functions of a Committee

Planning
Organizing
Staffing
Leading
Controlling

Mnemonic: POSLC → Pirates Often Sing Lively Chants

Reasons for using Committees

Group deliberation and judgement.
Dominant logic.
Fear of too much authority with a single person.
Representation of interested groups.
Coordination of departments, plans and policies.
Transmission and sharing of information.
Consolidation of authority.
Motivation through participation.

Disadvantages of Committees

Costly.
The result may be a compromise that everyone agrees with rather than the actual best decision.
May lead to indecision.
They can also split responsibility.
Can lead to a situation in which few persons impose their will on the majority.

Groups

Two or more people acting interdependently in a unified manner toward achieving common goals.

Characteristics

Group members share one or more common goals.
Group members normally require interaction and communication among members.
Group members within a group assume roles (designing, producing, selling, or distributing a product).
Groups are usually a part of a larger group.
Groups develop norms, which refer to the expected behavior of group members.

Advantages of Groups

Powerful in changing behavior, attitudes, values and in disciplining members
Used for decision making, negotiating and bargaining.
Effective group interaction may also affect motivation.
Groups provide social satisfaction for their members, a feeling of belonging and support for the needs of individuals.
Promote communication.

Teams

A team is defined as a ‘small number of people with complementary skills who are committed to a common purpose, a set of performance goals and approach for which they hold themsleves mutually accountable’.

In teams, some make recommendations, some have decision-making power, and some run operations.

Team Building

Team members must be convinced that the team’s purpose is worthwhile, meaningful and urgent. Team members should be selected according to the skills needed to achieve the purpose. Teams should have, in its members, a right mixture of skills, both functional and technical.

The team needs to be guided by rules for group behavior such as regular attendance, confidentiality, factual discussions and unanimous contributions.

Types of Teams

Self-Managing Team: A group with members with various skills needed to carry out a fairly complete task.
Virtual Management: Running a team whose members are not in the same location, do not report to the same person managing it and may not even work for the same organization.

Communication

Communication is essential for the internal functioning of the organzization because it integrates all managerial functions. It also relates an enterprise to its external environment as it is through communication that managers become aware of the needs of the customers, the availability of suppliers, stockholder claims etc.

Internal environment consists of POSLC (Pirates Often Sing Lively Chants).

9 Types of Communication

There are 9 types of communication. These are:

Formal Communication: Officially created procedure for the flow of communication between the various positions of organizational setup. Includes memos, intranet, conferences, presentations, notice boards.
Informal Communication: One that is outside the formed recognized communication system such as worker conversations and gossip. Has 3 types:
- Single Strand: A form of informal comms where a person communicates with the next in a single sequence.
- Cluster: A person will receive information and choose to pass it on to their cluster network or keep the information to themselves.
- Probability Chain: Each individual randomly tells another individual the same piece of information.
Downward Communication: Flows from higher levels of authority to the lower levels. Exists in organizations with an authoritarian atmosphere. It’s time-consuming and susceptible to distortion/loss. Media used includes instructions, meetings, loudspeakers, memos, procedures etc.
Upward Communication: Travels from subordinates to superiors and continues up the organizational hierarchy. Often hindered by managers that filter information, especially unfavourable news. Primarily non-directive and is usually found in participative environments. Requires an environment where subordinates feel free to communicate with superiors.
Horizontal Communication: Communication between equals who are in different areas of responsibility. Slightly more fluid and dependent on cross-individual communication.
Diagonal Communication: Between people among different levels who have no direct reporting relationships. This is used to speed up the process of communication, to improve understanding and to coordinate efforts.
Written Communication: Has the advantage of providing records, references, legal defense. Carefully planned and directed to a mass audience. Promotes uniformity in policy and procedure. Disadvantages include bulk storage, ineffective writers, non-immediate feedback.
Oral Communication: Can occur in a face-to-face meeting of two people in a manager’s presentation to a large audience. Advantage includes speedy comms with immediate feedback.
Non-Verbal Communication: Facial expressions, body language.

Barriers to Effective Communication

Lack of planning.
Unclarified assumptions.
Semantic distortion.
Loss by transmission.
Poor retention.
Poor listening and beforehand evaluation.
Distrust, threat and fear.
Insufficient period for adjustment to change.
Information overload.
Selective perception.
Attitude influence.
Differences in status and power.
Large number of levels in an organization.

Towards Effective Communcation

Following are the guidelines towards effective communication:

Senders must clarify what they want to communicate.
Encoding and decoding must be done with symbols familiar to both parties.
Planning should not be done in a vaccuum.
Receiver’s needs must be considered.
Tone of voice, choice of language etc influence reactions of the receiver.
Communication is only complete when the receiver understands the message completely.
Function of communication is more than transmitting information.
Deals with emotions that are important in interpersonal relationships between superiors and subordinates.

Listening is the key to understanding.

🧠 Second Brain

Explorer

EOM - Chapter 3 - Leadership & Motivation