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DMI-ST. JOHN THE BAPTIST UNIVERSITY
MANGOCHI, MALAWI
Module Code: 551/552MG42
Subject Name: ORGANISATIONAL BEHAVIOUR
School of Management & Commerce
Module Teacher: M. Divya
UNIT III
DETAILED NOTES
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Syllabus
Leadership concept – characteristics – leadership theories – leadership styles – managerial grid-
leadership continuum – leadership effectiveness. Motivation – concept and importance –
motivators – financial and non-financial – theories of motivation.
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LEADERSHIP
MEANING AND DEFINITION
Leadership is an integral part of management and plays a vital role in managerial operation.
Leadership is viewed as a characteristic of the individual. Leader is one who makes his
subordinates to do willingly what he wants. Leadership is the process of influencing the
behavior of others towards the accomplishment of goals in a given situation.
Leadership is the process of influencing the behaviour of others to work willingly and
enthusiastically for achieving the predetermined goals. In the previous chapter mention has
been made about the response of individuals that vary from resistance to commitment, to the
application of power and authority. The objective of leadership is to ensure that any tendency
to resistance should be unwilling and to commitment must be willing. So a leader must be
capable of influencing group activities with regard to goal formation and goal accomplishment.
Therefore leadership is a value-loaded term. People can be hypnotized to become achievement
oriented willingly by a good leader.
Koontz and O’Donnel have defined, “Leadership is the art of process of influencing people so
that they will strive willingly towards the achievement of group goals”.
George R.Terry has defined, “Leadership is the activity of influencing people to strive willingly
for group objectives”.
According to Peter Drucker - Leadership "is not making friends and influencing people i.e.,
salesmanship. Leadership is the lifting of man's vision to higher sights, the raising of man's
performance to higher standards, the building of man's personality beyond its normal
limitations".
According to Louis A Allen - "A leader is one who guides and directs other people. He gives the
efforts to his followers a direction and purpose by influencing their behaviour".
CHARACTERISTICS OF LEADERSHIP
 It is a inter-personal process in which a manager is into influencing and guiding
workers towards attainment of goals.
 It denotes a few qualities to be present in a person which includes intelligence,
maturity and personality.
 It is a group process. It involves two or more people interacting with each other.
 A leader is involved in shaping and molding the behavior of the group towards
accomplishment of organizational goals.
 Leadership is situation bound. There is no best style of leadership. It all depends
upon tackling with the situations
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IMPORTANCE OF LEADERSHIP
Leadership is an important function of management which helps to maximize efficiency and to
achieve organizational goals. The following points justify the importance of leadership in a
concern.
 Initiates action- Leader is a person who starts the work by communicating the policies
and plans to the subordinates from where the work actually starts.
 Motivation- A leader proves to be playing an incentive role in the concern’s working.
He motivates the employees with economic and non-economic rewards and thereby
gets the work from the subordinates.
 Providing guidance- A leader has to not only supervise but also play a guiding role for
the subordinates. Guidance here means instructing the subordinates the way they have
to perform their work effectively and efficiently.
 Creating confidence- Confidence is an important factor which can be achieved through
expressing the work efforts to the subordinates, explaining them clearly their role and
giving them guidelines to achieve the goals effectively. It is also important to hear the
employees with regards to their complaints and problems.
 Building morale- Morale denotes willing co-operation of the employees towards their
work and getting them into confidence and winning their trust. A leader can be a morale
booster by achieving full co-operation so that they perform with best of their abilities as
they work to achieve goals.
 Builds work environment- Management is getting things done from people. An
efficient work environment helps in sound and stable growth. Therefore, human
relations should be kept into mind by a leader. He should have personal contacts with
employees and should listen to their problems and solve them. He should treat
employees on humanitarian terms.
 Co-ordination- Co-ordination can be achieved through reconciling personal interests
with organizational goals. This synchronization can be achieved through proper and
effective co-ordination which should be primary motive of a leader.
LEADERSHIP STYLES OR TYPES
The term leadership styles can be defined as a leader’s behaviour toward group members. It
refers to the behavioural pattern followed by a leader at the time of supervising his
subordinates. The leadership styles can be categorized as follows;
Autocratic or Dictatorial leadership style: This style is also known as ‘leader-centred style’
or ‘authoritarian style’. Under this style, leader concentrate all authority in himself, instructs
subordinates as to what to do, when to do, how to do it, etc, He also exercise close supervision
and control over his subordinates. Subordinates are expected to do what they are told. The
autocratic leader accomplishes the results through the use of authority, fear of deprivation,
punishment and such other negative rewards. As it is negative in character, authoritarian
approach will succeed only in the short run.
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Advantages:
 It facilitates quick decision-making
 It provides strong motivation and satisfaction to the leader who decades terms
 Highest productivity
 Less competent subordinates are needed at lower levels
 It can yield positive outcome under conditions of stress.
Disadvantages:
 People dislike this style especially when the motivational style negative.
 It leads to frustration, low morale and conflict which affect organisational efficiency
 Due to lack of opportunity to exercise initiative and judgment, future leadership does
not develop. Followers remain uninformed, insecure and afraid of leader’s power.
 There is resistance to change as workers feel harrased and disturbed.
Participative or Democratic leadership: In this type of leadership, the subordinates are
consulted and their feedback is taken into decision making process. Decisions are taken after
group discussions. Therefore, the authority is decentralized. The participative leader attaches
high importance to both work and people. He provides freedom of thinking and expression.
Advantages:
 The subordinates are motivated by participation in decision making process. This will
also increase job satisfaction.
 Absence of leader does not affect output.
 Labour absenteeism and turn-over will be minimum.
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 The quality of decision is improved
 The leader multiplies his abilities through the contribution of his followers.
Disadvantages:
 Decisions cannot be taken quickly because under the democratic style of leadership, the
leader consults the subordinates before arriving at decisions.
 Employees may be exploited by adopting this type of leadership disguisedly
 People who refer minimum interaction with leaders and fellow subordinates may not
like this type of leadership.
Laissez – faire or free rein leadership: In this type, complete freedom is given to the
subordinates so that they plan, motivate, control and otherwise be responsible for their own
actions. Leader does not take part in decision making process. The authority is completely
decentralized.
Advantages:
o Positive effect on job satisfaction and morale of subordinates.
o It creates on environment of freedom, individuality as well as the team sprit
o Full utilization of the potential of subordinates
Disadvantages:
 Lack of discipline
 Lowest productivity
 No control and co-ordination. Hence tense situation will prevail.
 Some members may put their own interests above the group and team interests.
THEORIES OF LEADERSHIP
 House’s Path Goal Theory
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 Managerial Grid
 Trait theory of leadership
 Leadership-Member Exchange (LMX) theory
 Transformational Leadership theory
 Transactional Leadership theory
 Fiedler’s Contingency model
 Likert’s Management system
 Continuum of leadership behaviour
HOUSE’S PATH GOAL THEORY
Path-Goal Theory: How Leaders Motivate Followers
Robert House, a widely respected leadership researcher, realized that much of what leaders
try to do in organizations involves motivating their followers. House’s path-goal theory
describes how leaders can motivate their followers to achieve group and organizational goals
and the kinds of behaviors they can engage in to accomplish that Path-goal theory suggests
that effective leaders follow three guidelines to motivate their followers. The guidelines are
based on the expectancy theory of motivation.
Effective leaders who follow these guidelines have highly motivated subordinates who are
likely to meet their work goals and perform at high levels:
1. Determine what outcomes subordinates are trying to obtain in the workplace. For
example, what needs are they trying to satisfy, or what goals are they trying to meet?
After gaining this information, the leader must have control over those outcomes or
over the ability to give or withhold the outcomes to subordinates.30 The new manager
of a group of five attorneys in a large law firm determined that salary raises and the
opportunity to work on interesting cases with big corporate clients were the outcomes
her subordinates most desired. She already controlled the assignment of cases and
clients, but her own boss determined salary raises. After realizing the importance of
salary raises for the motivation of her subordinates, the manager discussed with her
boss the importance of being able to determine her own subordinates’ raises. The boss
gave her sole authority to determine their raises as long as she kept within the budget.
In this way, the manager made sure she had control over outcomes her subordinates
desired.
2. Reward subordinates for performing at high levels or achieving their work goals
by giving them desired outcomes. The manager in the law firm had two important
goals for her subordinates: completing all assignments within the budgeted hours and
winning cases. When subordinates met these goals, they were performing at a high
level. To motivate her subordinates to attain these goals, the manager made sure her
distribution of interesting monthly case assignments and semiannual raises reflected
the extent to which her subordinates met these two goals. The subordinate who always
stayed within the budgeted hours and won all of his or her cases in the last six months
received not only the biggest raise but also the choicest assignments.
3. Make sure the subordinates believe they can obtain their work goals and perform
at high levels. Leaders can do this by showing subordinates the paths to goal
attainment (hence the name path-goal theory), by removing any obstacles that might
come up along the way, and by expressing confidence in their subordinates’
capabilities. The manager in the law firm realized that one of her subordinates had low
expectations. He had little confidence in his ability to stay within budget and to win
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cases no matter how hard he worked. The manager was able to raise this subordinate’s
expectations by showing him how to allocate his billable hours among the various
cases he was working on and explaining to him the key ingredients to winning a case.
She also told him to ask her for help whenever he came across a problem he thought
might jeopardize his chances of winning a case. The subordinate followed her advice,
and together they worked out ways to get around problems that came up on the
subordinate’s various cases. By clarifying the paths to goal attainment and helping to
remove obstacles, the supervisor helped raise this subordinate’s expectations and
motivation, and he actually started to win more cases and complete them within the
budgeted hours.
House identified four types of behavior that leaders can engage in to motivate subordinates:
 Directive behavior (similar to initiating structure) lets subordinates know what tasks
need to be performed and how they should be performed.
 Supportive behavior (similar to consideration) lets subordinates know their leader
cares about their well-being and is looking out for them.
 Participative behavior enables subordinates to be involved in making decisions that
affect them.
 Achievement-oriented behavior pushes subordinates to do their best. Such behavior
includes setting difficult goals for followers, expecting high performance, and
expressing confidence in their capabilities.
Leadership Styles:
Directive: Here the leader provides guidelines, lets subordinates know what is expected of
them, sets performance standards for them, and controls behavior when performance
standards are not met. He makes judicious use of rewards and disciplinary action. The style is
the same as task-oriented one.
Supportive: The leader is friendly towards subordinates and displays personal concern for
their needs, welfare, and well-being. This style is the same as people-oriented leadership.
Participative: The leader believes in group decision-making and shares information with
subordinates. He consults his subordinates on important decisions related to work, task goals,
and paths to resolve goals.
Achievement-oriented: The leader sets challenging goals and encourages employees to reach
their peak performance. The leader believes that employees are responsible enough to
accomplish challenging goals. This is the same as goal-setting theory.
According to the theory, these leadership styles are not mutually exclusive and leaders are
capable of selecting more than one kind of a style suited for a particular situation.
Contingencies: The theory states that each of these styles will be effective in some situations
but not in others. It further states that the relationship between a leader’s style and
effectiveness is dependent on the following variables:
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Employee characteristics: These include factors such as employees’ needs, locus of control,
experience, perceived ability, satisfaction, willingness to leave the organization, and anxiety.
For example, if followers are high inability, a directive style of leadership may be unnecessary;
instead a supportive approach may be preferable.
Characteristics of work environment: These include factors such as task structure and team
dynamics that are outside the control of the employee. For example, for employees performing
simple and routine tasks, a supportive style is much effective than a directive one. Similarly,
the participative style works much better for non-routine tasks than routine ones.
When team cohesiveness is low, a supportive leadership style must be used whereas in a
situation where performance-oriented team norms exist, a directive style or possibly an
achievement-oriented style works better. Leaders should apply directive style to counteract
team norms that oppose the team’s formal objectives.
BLAKE AND MOUTON’S MANAGERIAL GRID
The treatment of task orientation and people orientation as two independent dimensions was a
major step in leadership studies. Many of the leadership studies conducted in the 1950s at the
University of Michigan and the Ohio State University focused on these two dimensions.
Building on the work of the researchers at these Universities, Robert Blake and Jane Mouton
(1960s) proposed a graphic portrayal of leadership styles through a managerial grid
(sometimes called leadership grid). The grid depicted two dimensions of leader behavior,
concern for people (accommodating people’s needs and giving them priority) on y-axis and
concern for production (keeping tight schedules) on x-axis, with each dimension ranging from
low (1) to high (9), thus creating 81 different positions in which the leader’s style may fall.
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The five resulting leadership styles are as follows:
 Impoverished Management (1, 1): Managers with this approach are low on both the
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.
 Task management (9, 1): Also called dictatorial or perish style. Here 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 labour turnover is inevitable.
 Middle-of-the-Road (5, 5): This is 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.
 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.
 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.
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 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.
TRAIT THEORY OF LEADERSHIP
The trait model of leadership is based on the characteristics of many leaders - both successful
and unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits
are then compared to those of potential leaders to assess their likelihood of success or failure.
Scholars taking the trait approach attempted to identify physiological (appearance, height, and
weight), demographic (age, education and socioeconomic background), personality, self-
confidence, and aggressiveness), intellective (intelligence, decisiveness, judgment, and
knowledge), task-related (achievement drive, initiative, and persistence), and social
characteristics (sociability and cooperativeness) with leader emergence and leader
effectiveness.
Successful leaders definitely have interests, abilities, and personality traits that are different
from those of the less effective leaders. Through many researchers conducted in the last three
decades of the 20th century, a set of core traits of successful leaders have been identified.
These traits are not responsible solely to identify whether a person will be a successful leader
or not, but they are essentially seen as preconditions that endow people with leadership
potential.
Among the core traits identified are:
 Achievement drive: High level of effort, high levels of ambition, energy and
initiative
 Leadership motivation: an intense desire to lead others to reach shared goals
 Honesty and integrity: trustworthy, reliable, and open
 Self-confidence: Belief in one’s self, ideas, and ability
 Cognitive ability: Capable of exercising good judgment, strong analytical
abilities, and conceptually skilled
 Knowledge of business: Knowledge of industry and other technical matters
 Emotional Maturity: well adjusted, does not suffer from severe psychological
disorders.
 Others: charisma, creativity and flexibility
Strengths/Advantages of Trait Theory
 It is naturally pleasing theory.
 It is valid as lot of research has validated the foundation and basis of the theory.
 It serves as a yardstick against which the leadership traits of an individual can be
assessed.
 It gives a detailed knowledge and understanding of the leader element in the
leadership process.
Limitations of The Trait Theory
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 There is bound to be some subjective judgment in determining who is regarded
as a ‘good’ or ‘successful’ leader
 The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These
descriptions are simply generalities.
 There is also a disagreement over which traits are the most important for an
effective leader
 The model attempts to relate physical traits such as, height and weight, to
effective leadership. Most of these factors relate to situational factors. For
example, a minimum weight and height might be necessary to perform the tasks
efficiently in a military leadership position. In business organizations, these are
not the requirements to be an effective leader.
LEADERSHIP-MEMBER EXCHANGE (LMX) THEORY
Informal observation of leadership behavior suggests that leader’s action is not the same
towards all subordinates. The importance of potential differences in this respect is brought
into sharp focus by Graen’s leader-member exchange model, also known as the vertical dyad
linkage theory. The theory views leadership as consisting of a number of dyadic relationships
linking the leader with a follower. The quality of the relationship is reflected by the degree of
mutual trust, loyalty, support, respect, and obligation.
According to the theory, leaders form different kinds of relationships with various groups of
subordinates. One group, referred to as the in-group, is favored by the leader. Members of in-
group receive considerably more attention from the leader and have more access to the
organizational resources. By contrast, other subordinates fall into the out-group. These
individuals are disfavored by the leader. As such, they receive fewer valued resources from
their leaders.
Leaders distinguish between the in-group and out-group members on the basis of the
perceived similarity with respect to personal characteristics, such as age, gender, or
personality. A follower may also be granted an in-group status if the leader believes that
person to be especially competent at performing his or her job. The relationship between
leaders and followers follows three stages:
Role taking: When a new member joins the organization, the leader assesses the talent and
abilities of the member and offers them opportunities to demonstrate their capabilities.
Role making: An informal and unstructured negotiation on work-related factors takes place
between the leader and the member. A member who is similar to the leader is more likely to
succeed. A betrayal by the member at this stage may result in him being relegated to the out-
group.
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The LMX 7 scale assesses the degree to which leaders and followers have mutual respect for
each other’s capabilities, feel a deepening sense of mutual trust, and have a sense of strong
obligation to one another. Taken together, these dimensions determine the extent to which
followers will be part of the leader’s in-group or out-group.
In-group followers tend to function as assistants or advisers and to have higher quality
personalized exchanges with the leader than do out-group followers. These exchanges typically
involve a leader’s emphasis on assignments to interesting tasks, delegation of important
responsibilities, information sharing, and participation in the leader’s decisions, as well as
special benefits, such as personal support and support and favorable work schedules.
TRANSFORMATIONAL LEADERSHIP THEORY
Creating high-performance workforce has become increasingly important and to do so
business leaders must be able to inspire organizational members to go beyond their
task requirements. As a result, new concepts of leadership have emerged -
transformational leadership being one of them.
Transformational leadership may be found at all levels of the organization: teams,
departments, divisions, and organization as a whole. Such leaders are visionary,
inspiring, daring, risk-takers, and thoughtful thinkers. They have a charismatic appeal.
But charisma alone is insufficient for changing the way an organization operates. For
bringing major changes, transformational leaders must exhibit the following four
factors:
Figure: Model of Transformational Leadership
 Inspirational Motivation: The foundation of transformational leadership is the
promotion of consistent vision, mission, and a set of values to the members.
Their vision is so compelling that they know what they want from every
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interaction. Transformational leaders guide followers by providing them with a
sense of meaning and challenge. They work enthusiastically and optimistically to
foster the spirit of teamwork and commitment.
 Intellectual Stimulation: Such leaders encourage their followers to be
innovative and creative. They encourage new ideas from their followers and
never criticize them publicly for the mistakes committed by them. The leaders
focus on the “what” in problems and do not focus on the blaming part of it. They
have no hesitation in discarding an old practice set by them if it is found
ineffective.
 Idealized Influence: They believe in the philosophy that a leader can influence
followers only when he practices what he preaches. The leaders act as role
models that followers seek to emulate. Such leaders always win the trust and
respect of their followers through their action. They typically place their
followers needs over their own, sacrifice their personal gains for them, ad
demonstrate high standards of ethical conduct. The use of power by such leaders
is aimed at influencing them to strive for the common goals of the organization.
 Individualized Consideration: Leaders act as mentors to their followers and
reward them for creativity and innovation. The followers are treated differently
according to their talents and knowledge. They are empowered to make
decisions and are always provided with the needed support to implement their
decisions.
TRANSACTIONAL LEADERSHIP THEORY
The transactional style of leadership was first described by Max Weber in 1947 and then by
Bernard Bass in 1981. This style is most often used by the managers. It focuses on the basic
management process of controlling, organizing, and short-term planning. The famous examples
of leaders who have used transactional technique include McCarthy and de Gaulle.
Transactional leadership involves motivating and directing followers primarily through
appealing to their own self-interest. The power of transactional leaders comes from their
formal authority and responsibility in the organization. The main goal of the follower is to obey
the instructions of the leader. The style can also be mentioned as a ‘telling style’.
The leader believes in motivating through a system of rewards and punishment. If a
subordinate does what is desired, a reward will follow, and if he does not go as per the wishes
of the leader, a punishment will follow. Here, the exchange between leader and follower takes
place to achieve routine performance goals.
These exchanges involve four dimensions:
Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations,
provide necessary resources, set mutually agreed upon goals, and provide various kinds of
rewards for successful performance. They set SMART (specific, measurable, attainable,
realistic, and timely) goals for their subordinates.
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Active Management by Exception: Transactional leaders actively monitor the work of their
subordinates, watch for deviations from rules and standards and taking corrective action to
prevent mistakes.
Passive Management by Exception: Transactional leaders intervene only when standards are
not met or when the performance is not as per the expectations. They may even use
punishment as a response to unacceptable performance.
Laissez-faire: The leader provides an environment where the subordinates get many
opportunities to make decisions. The leader himself abdicates responsibilities and avoids
making decisions and therefore the group often lacks direction.
FIEDLER’S CONTINGENCY MODEL
Fred E. Fiedler’s contingency theory of leadership effectiveness was based on studies of a wide
range of group effectiveness, and concentrated on the relationship between leadership and
organizational performance. This is one of the earliest situation-contingent leadership theories
given by Fiedler. According to him, if an organization attempts to achieve group effectiveness
through leadership, then there is a need to assess the leader according to an underlying trait,
assess the situation faced by the leader, and construct a proper match between the two.
Leader’s trait
In order to assess the attitudes of the leader, Fiedler developed the ‘least preferred co-worker’
(LPC) scale in which the leaders are asked about the person with whom they least like to work.
The scale is a questionnaire consisting of 16 items used to reflect a leader’s underlying
disposition toward others. The items in the LPC scale are pleasant / unpleasant, friendly /
unfriendly, rejecting / accepting, unenthusiastic / enthusiastic, tense / relaxed, cold / warm,
helpful / frustrating, cooperative / uncooperative, supportive / hostile, quarrelsome /
harmonious, efficient / inefficient, gloomy / cheerful, distant / close, boring / interesting, self-
assured / hesitant, open / guarded. Each item in the scale is given a single ranking of between
one and eight points, with eight points indicating the most favorable rating.
Friendly ________________________________________ Unfriendly
8 7 6 5 4 3 2 1
Fiedler states that leaders with high LPC scores are relationship-oriented and the ones with
low scores are task-oriented. The high LPC score leaders derived most satisfaction from
interpersonal relationships and therefore evaluate their least preferred co-workers in fairly
favorable terms. These leaders think about the task accomplishment only after the relationship
need is well satisfied. On the other hand, the low LPC score leaders derived satisfaction from
performance of the task and attainment of objectives and only after tasks have been
accomplished, these leaders work on establishing good social and interpersonal relationships.
Situational factor
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According to Fiedler, a leader’s behavior is dependent upon the favorability of the leadership
situation. Three factors work together to determine how favorable a situation is to a leader.
These are:
Leader-member relations - The degree to which the leaders is trusted and liked by the group
members, and the willingness of the group members to follow the leader’s guidance.
Task structure - The degree to which the group’s task has been described as structured or
unstructured, has been clearly defined and the extent to which it can be carried out by detailed
instruction.
Position power - The power of the leader by virtue of the organizational position and the
degree to which the leader can exercise authority on group members in order to comply with
and accept his direction and leadership.
With the help of these three variables, eight combinations of group-task situations were
constructed by Fiedler. These combinations were used to identify the style of the leader.
The leader’s effectiveness is determined by the interaction of the leader’s style of behavior and
the favorableness of the situational characteristics. The most favorable situation is when
leader-member relations are good, the task is highly structured, and the leader has a strong
position power.
Figure: Correlation between leader’s LPC scores and group effectiveness Leadership
Effectiveness
Fiedler also suggested that leaders may act differently in different situations. Relationship-
oriented leaders generally display task-oriented behaviors under highly favorable situations
and display relationship-oriented behaviors under unfavorable intermediate favorable
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situations. Similarly, task-oriented leaders frequently display task-oriented in unfavorable or
intermediate favorable situations but display relationship-oriented behaviors in favorable
situations.
LIKERT’S MANAGEMENT SYSTEM
Rensis Likert and his associates studied the patterns and styles of managers for three decades
at the University of Michigan, USA, and identified a four-fold model of management systems.
The model was developed on the basis of a questionnaire administered to managers in over
200 organizations and research into the performance characteristics of different types of
organizations. The four systems of management system or the four leadership styles identified
by Likert are:
System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the
upper echelons of the hierarchy. The superior has no trust and confidence in subordinates. The
decisions are imposed on subordinates and they do not feel free at all to discuss things about
the job with their superior. The teamwork or communication is very little and the motivation is
based on threats.
System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not
at the lower levels of the organizational hierarchy. The superior has condescending confidence
and trust in subordinates (master-servant relationship). Here again, the subordinates do not
feel free to discuss things about the job with their superior. The teamwork or communication is
very little and motivation is based on a system of rewards.
System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy.
The superior has substantial but not complete confidence in subordinates. Some amount of
discussion about job related things takes place between the superior and subordinates. There
is a fair amount of teamwork, and communication takes place vertically and horizontally. The
motivation is based on rewards and involvement in the job.
System 4 - Participative: Responsibility for achieving the organizational goals is widespread
throughout the organizational hierarchy. There is a high level of confidence that the superior
has in his subordinates. There is a high level of teamwork, communication, and participation
CONTINUUM OF LEADERSHIP BEHAVIOUR
The leadership continuum was originally written in 1958 by Tannenbaum and Schmidt
and was later updated in the year 1973. Their work suggests a continuum of possible
leadership behavior available to a manager and along which many leadership styles
may be placed. The continuum presents a range of action related to the degree of
authority used by the manager and to the area of freedom available to non-managers in
arriving at decisions. A broad range of leadership styles have been depicted on the
continuum between two extremes of autocratic and free rein (See figure 1). The left side
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shows a style where control is maintained by a manager and the right side shows the
release of control. However, neither extreme is absolute and authority and freedom are
never without their limitations.
The Tannenbaum and Schmidt continuum can be related to McGregor’s supposition
of Theory X and Theory Y. Boss-centered leadership is towards theory X and
subordinate-centered leadership is towards theory Y.
Figure 1: Continuum Leadership Behaviour.
A manager is characterized according to degree of control that is maintained by him.
According to this approach, four main styles of leadership have been identified:
 Tells: The manager identifies a problem, chooses a decision, and announces this
to subordinates. The subordinates are not a party to the decision making process
and the manager expects them to implement his decisions as soon as possible.
 Sells: The decision is chosen by the manager only but he understands that there
will be some amount of resistance from those faced with the decision and
therefore makes efforts to persuade them to accept it.
 Consults: Though the problem is identified by the manager, he does not take a
final decision. The problem is presented to the subordinates and the solutions
are suggested by the subordinates.
 Joins: The manager defines the limits within which the decision can be taken by
the subordinates and then makes the final decision along with the subordinates.
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According to Tannenbaum and Schmidt, if one has to make a choice of the leadership
style which is practicable and desirable, then his answer will depend upon the following
three factors:
 Forces in the Manager: The behavior of the leader is influenced by his
personality, background, knowledge, and experience. These forces include:
i. Value systems
ii. Confidence in subordinates
iii. Leadership inclinations
iv. Feelings of security in an uncertain situation
 Forces in the subordinate: The personality of the subordinates and their
expectations from the leader influences their behavior. The factors include:
i. Readiness to assume responsibility in decision-making
ii. Degree of tolerance for ambiguity
iii. Interest in the problem and feelings as to its importance
iv. Strength of the needs for independence
v. Knowledge and experience to deal with the problem
vi. Understanding and identification with the goals of the organization
If these factors are on a positive side, then more freedom can be allowed to the
subordinate by the leader.
 Forces in the situation: The environmental and general situations also affect the
leader’s behavior. These include factors like:
i. Type of organization
ii. Group effectiveness
iii. Nature of the problem
iv. Time pressure
When the authors updated their work in1973, they suggested a new continuum of
patterns of leadership behavior. In this, the total area of freedom shared between
managers and non-managers is redefined constantly by interactions between them and
the environmental forces. This pattern was, however, more complex in comparison to
the previous one
MOTIVATION
Motivation is a basic psychological process, Technically, the term ‘motivation’ can be
traced to the Latin word ‘movere’, which means “to move”. This meaning is evident in
the following comprehensive definition: “A motive is an inner state that energizes,
activates or moves (hence) motivation” and that directs or channels behaviour towards
goals”. The key to understanding motivation lies in the meaning of, and relationship
between, needs, drives, and goals.
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THE BASIC MOTIVATION PROCESS
NEEDS ------------------------ DRIVES -------------------------------- GOALS
 Needs: The best one-ward definition of a need is deficiency. For example, a need
exists when a cell in the body is deprived of food and water.
 Drives: Drives or motives are set up to alleviate needs. A drive can simply be
defined as a deficiency with direction. The examples of the needs for food and
water are translated into the hunger and thirst drives, and the need for friends
becomes a drive for affiliation.
 Goals: At the end of the motivation cycle is the goal. A goal in the motivation
cycle can be defined as anything which will alleviate a need and reduce a drive.
Food, Water and Friends are the goals in our examples.
TYPES OF MOTIVES
Primary Motives: Hunger, thirst, sleep, avoidance of pain, sex etc, are classified as
primary motives.
General Motives: The motives of competence, curiosity, manipulation activity, and
affection are called general motives.
Secondary Motives:Power, achievement, affiliation, security and status are important
secondary motives.
KINDS AND TYPES OF MOTIVATION
On the basis of approach motivation classified into two, they are
Positive motivation: Positive motivation implies creation of an environment in which people
can satisfy their needs and aspirations. Under it rewards and incentives are offered to inspire
employees. All necessary facilities are provided to workers. They are offered prizes and awards
for best performance. Positive motivation removes the psychological barrier and develops a
sense of affiliation.
Negative motivation: Negative motivation is based on force, and threats. The fear of
punishment or unfavorable consequences affects the behavioral changes. If the worker fails to
complete the work, they may be threatened with demotion, dismissed, lay off, pay cut etc,
involves creating a sense of fear or unhelpful environment. Which the workers have to suffer in
case their performance does not come up to the desired level. This gives maximum benefits in
the short run.
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On the basis of the types of incentives motivation classified into two, they are
Financial motivation: Financial motivation implies use of monetary benefits to inspire
employees. Financial incentives include wages and salaries, bonus, fringe benefits, retirement
benefits, etc. money plays an important role in motivation. Money helps to satisfy physiological
and security needs of workers. Money is also useful in satisfying social needs to some extent
because money is often recognize as a symbol of power, prestige and status. But money is not
only motivator. It fails very often to satisfy higher level needs like ego and self-actualization.
Employees do not always run after money. They also want status, recognition autonomy and
challenge. Once the physiological and security needs are fulfilled money ceases to be motivator.
Non-financial motivation: Non-financial motivation motivators are not associated with
monetary rewards. These include recognition of work done, greater involvement in decision-
making, responsibility, challenging job, etc. Praise, competition, knowledge of results,
suggestion system, and opportunity for growth are other important non-financial motivators.
Values and attitudes of an individual also determine his behaviour. For e.g. a status conscious
executive may be motivated by a carpeted floor, private parking site or personal secretary.
On the basis of the nature of reward motivation classified into two, they are
Extrinsic motivation: This motivation is induced by external factors, which are primarily
financial in nature. These incentives and rewards have been subjected of debate, whether they
really motivated the employees or simply move them to work or perform. These motivations
include higher pay, retirement benefits, rest periods, holidays, profit sharing schemes, health
and medical insurance, vacation etc.
Intrinsic motivation: Intrinsic motivation is available at the time of performance of work.
These motivations provide a satisfaction during the performance of the work itself. Some of the
intrinsic motivations are praise, recognition, responsibility, esteem, power, status,
participation etc.
MOTIVATION PROCESS
Motivation represents the forces acting on or within a person that cause the person to behave in
a specific, goal-directed manner. Because the motives of employees affect their productivity,
one of management’s jobs is to channel employee motivation effectively toward achieving
organizational goals. However, motivation isn’t the same as performance.
Even the most highly motivated employees may not be successful in their jobs, especially if
they don’t have the competencies needed to perform the jobs or they work under unfavorable
job conditions. Although job performance involves more than motivation, motivation is an
important factor in achieving high performance. Experts also do not agree about everything
that motivates employees—and the effects of working conditions on their careers—but they do
agree that an organization needs to:
 attract individuals to the organization and encourage them to remain with it,
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 allow individuals to perform the tasks for which they were hired, and
 stimulate individuals to go beyond routine performance and become creative and
innovative in their work.
For an organization to be effective, it must tackle the motivational challenges involved in
arousing individuals’ desires to be productive members of the organization.
Core Phases
A key motivational principle states that performance is a function of a person’s level of ability
and motivation. This principle is often expressed by the following formula:
Performance _ f (ability _ motivation).
According to this principle, no task can be performed successfully unless the person who is to
carry it out has the ability to do so. Ability is the person’s natural talent, as
well as learned competencies, for performing goal-related tasks. Regardless of a person’s
competence, however, ability alone isn’t enough to ensure performance at a high level. The
person must also want to achieve a high level of performance. The multiplicative formula
suggests that ability and motivation are important. If an employee is 100 percent motivated
and 75 percent able to perform a task, he will probably be better than average at performing
the task. However, if the same individual has only 10 percent ability, no amount of motivation
will enable him to perform satisfactorily.
Therefore, motivation represents an employee’s desire and commitment to perform
and is evidenced by his performance.
The motivational process begins with identifying a person’s needs, shown as phase 1 in below
given Figure. Needs are deficiencies that a person experiences at a particular time (phase 1).
These deficiencies may be psychological (e.g., the need for recognition), physiological (e.g., the
need for water, air, or food), or social (e.g., the need for friendship). Needs often act as
energizers for behavior. That is, needs create tensions within the individual, who finds them
uncomfortable and therefore is likely to make an effort (phase 2) to reduce or eliminate them.
Motivation is goal directed (phase 3). A goal is a specific result that an individual wants to
achieve. An employee’s goals often are driving forces, and accomplishing those goals can
significantly reduce needs. J. C. Hernandez, a relationship manager at Wells Fargo Bank, has a
strong drive for advancement. He expects that working long hours on highly visible projects
will lead to promotions, raises, greater influence, and job security. His work on major problems
facing Wells Fargo is designed to gain visibility and influence with senior leaders (phase 4).
Promotions and raises are two of the ways in which organizations attempt to maintain
desirable behaviors. They are signals (feedback) to employees that their needs for
advancement and recognition and their behaviors are appropriate or inappropriate (phase 5).
Once the employees have received either rewards or punishments, they reassess their needs
(phase 6).
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THEORIES OF MOTIVATION
Maslow’s Hierarchy of Needs: Abraham Maslow thought that a person’s motivational
needs can be arranged in a hierarchical manner. In essence, he believed that once a given level
of need is satisfied, it no longer serves to motivate. The next higher level of need has to be
activated in order to motivate the individual Maslow identified five levels in his need hierarchy.
Physiological needs: The needs of hunger, thirst, sleep and sex are physiological needs.
According to the theory, once these basic needs are satisfied, they no longer motivate.
Self - actualization
Esteem Needs
Love Needs
Safety Needs
Physiological Needs
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Safety needs: Maslow stressed emotional as well as physical safety. The whole organization
may become a safety – seeking mechanism. For example, membership in a trade union is a
safety need. Once these safety needs are satisfied, they no longer motivate.
Love needs: Maslow’s use of the word love has many misleading connotations, such as sex,
which is actually a physiological need. Perhaps a more appropriate word describing this level
would be belongingness or affiliation. Membership in formal and informal work groups is a
belongingness need.
Esteem needs: The esteem level represents the higher needs of humans. The needs for power,
achievement, and status can be considered to be part of this level.
Needs for self – actualization: This level represents the culmination of all the lower,
intermediate, and higher needs of humans. People, who have become self – actualized, are self-
fulfilled and have realized all their potential. Self – actualization is the person’s motivation to
transform perception of self into reality.
HERZBERG’S TWO – FACTOR THEORY
According to Herzberg, there are satisfiers and dis-satisfiers in a job for the individuals.
Herzberg labeled satisfiers motivators, and he called the dissatisfies hygiene factors. Taken
together, they became known as Herzberg’s two – factor theory of motivation.
Herzberg’s theory is closely related to Maslow’s need hierarchy. The hygiene factors are
preventive and environmental in nature, and they are roughly equivalent to Maslow’s lower –
level needs.
Hygiene Factors Motivators
Company policy and Administration
Technical supervision
Salary
Inter-personal relations
Working conditions
Achievement
Recognition
Work itself
Responsibility
Advancement
These hygiene factors prevent dissatisfaction, but they do not lead to satisfaction. By
themselves, the hygiene factors do not motivate. Only the motivators motivate humans on the
job. They are roughly equivalent to Maslow’s higher – level needs. According to the Herzberg
theory, an individual must have a job with a challenging content in order to be truly motivated.
ALDERFER’S ERG THEORY
The most recent extension of the Herzberg and, especially, the Maslow content theories of
work motivation come from the work of Clayton Alderfer. He formulated a need category
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model that was more in line with the existing empirical evidence. Similar to Maslow and
Herzberg, he does feel that there is value in categorizing needs and that here is basic
distinction between lower – order needs and higher order needs. Alderfer identified three
groups of core needs; Existence, Relatedness, and Growth (hence ERG theory). The existence
needs are concerned with survival (physiological Well-being). The relatedness needs stress
the importance of interpersonal, social relationships. The growth needs are concerned with
the individual’s intrinsic desire for personal development.
Following figure shows how these groups of needs are related to the Maslow and Herzberg
categories. Obviously, they are very close but the ERG needs do not have strict lines of
democrat ion.
Herzberg’s Maslow’s Alderfer’s
Two factors Hierarchy of Needs ERG Needs
Alderfer is suggesting more of a continuous of needs than hierarchical levels or two factors of
prepotency needs. Unlike Maslow and Herzberg, he does not contend that a lower level need
has to be fulfilled before a higher level need is motivating. For example, under ERG theory the
person’s background or cultural environment may dictate that the relatedness needs will take
precedence cover unfulfilled existence needs and that the more the growth needs are satisfied,
the more they will increase in intensity.
MCGREGOR’S ‘THEORY X’ AND ‘THEORY Y’
Douglas McGregor propounded two contrasting theories of human behavior which he called
theory X and theory Y.
Theory X: Theory X indicates the traditional approach to managerial motivation and
control. It represents old stereotyped and authoritarian management style of motivation. It
suggests that threats of punishment and strict control are the ways to manage people.
RELATEDNESS
SELF – ACTUALIZATION
ESTEEM
LOVE
MOTIVATORS
HYGIENE
FACTORS
GROWTH
EXISTENCE
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Theory Y: Theory Y indicates that if people are properly motivated, they could really be
creative. The main task of management is to unleash the potential in the employees. An
employee who is properly motivated can achieve his goals by directing his own efforts and,
thus, he can help in accomplishing the organizational goals. This theory emphasizes the
satisfaction of need of the workers. It does not rely heavily on the use of authority as an
instrument of command and control. It suggests that decentralization and delegation, job
enlargement, participation and consultative management style are the ways to motivate
people.
Theory X Theory Y
Based on the assumption that people are
basically lazy and so shirk work
Based on the assumption that people like work as
children like play
People do not take initiative. They like to be
directed.
People like to take initiative. They seek self –
direction.
People avoid responsibility whenever possible
People assume responsibility gladly if conditions are
favorable.
For getting things done, people must be
supervised strictly.
People do not require close and strict supervision for
properly performing their jobs.
Autocratic style of leadership is likely to be
more effective
Democratic or participative style of leadership is
likely to be more effective.
Applicable to illiterate, unskilled and lower –
level workers
Applicable to educated and skilled employees who
occupy high positions in the organizations.
Believes in mental sickness and so negative
motivation of employees
Believes in mental health and so positive and intrinsic
motivation of employees
ACHIEVEMENT MOTIVATION THEORY:
David McClelleand has proposed a theory of motivation that he believes is rooted in culture. He
states that we all have three particularly important needs:
 For achievement,
 Affiliation
 Power.
When a need is strong in a person, its effect will be to motivate the person to engage in
behaviours to satisfy the need. His research has focused mainly on ways that mangers can
develop subordinates desire to achieve.
Achievement motivation theory states that people are motivated according to the strength of
their desire either to perform in terms of a standard of excellence or to succeed in competitive
situations. McClelland indicates that almost all people feel they have an “Achievement Motive”.
Characteristics of high Achievers:
Self-motivated high achievers have three major characteristics:
i) They like to set their own goals.
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ii) High achievers tent to avoid selecting extremely difficult goals. They prefer
moderate goals.
iii) High achievers prefer tasks that provide immediate feedback.
EQUITY THEORY
The equity theory of work motivation was developed in the 1960s by J. Stacy Adams (equity
means “fairness”). Equity theory is based on the premise that an employee perceives the
relationship between the outcomes—what the employee gets from a job and organization—and
his or her inputs—what the employee contributes to the job and organization. Outcomes
include pay, fringe benefits, job satisfaction, status, opportunities for advancement, job
security, and anything else the employees wants from the organization. Inputs include special
skills, training, education, work experience, effort on the job, time, and anything else that
employees believe they contribute. According to equity theory, however, it is not the objective
level of outcomes and inputs that is important in determining work motivation. What is
important to motivation is the way an employee perceives his or her outcome/input ratio
compared to the outcome/input ratio of another person.
This other person, called a referent by Adams, is simply another employee or group of
employees perceived to be similar to oneself. The referent could also be oneself at a different
place or time (for example, in a previous job), or it could be one’s expectations (for example,
one’s beliefs about what the outputs and inputs of an entry-level accountant’s job should be).
Regardless of the referent an employee chooses, it is the employee’s perceptions of the
referent’s outcomes and inputs that are compared—not any objective measure of actual
outcomes or inputs.
Thus, equity theory focuses primarily on the relationship between inputs and outcomes and
addresses this question: Are the outcomes perceived as being at an appropriate level in
comparison to the inputs? The theory proposes that from past experience or the observation of
others, employees will have a sense of the input levels that should result in certain outcomes.
To motivate employees to contribute the inputs the organization needs, managers need to
administer outcomes based on those inputs. Moreover, managers need to ensure that different
employees’ outcome-input ratios are approximately equal so that employees who contribute
more inputs receive more outcomes and vice versa.
Equity
Equity exists when an individual’s outcome/input ratio equals the outcome/input ratio of the
referent (see below given Exhibit). Because the comparison of the ratios is what determines
the presence or absence of equity (not the comparison of absolute levels of outcomes and
inputs), equity can exist even if the referent receives more than the individual who is making
the comparison.
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Consider the case of two financial analysts who have been working at the same corporation for
two years. At the end of the two years, analyst A gets promoted, but analyst B does not. Can
both analysts consider this situation to be equitable? The answer is yes: Equity exists if analyst
A and analyst B perceive that that their respective outcome/input ratios are equal or
proportional and that analyst A generally worked more hours than analyst B. Perhaps, for
example, added input, or overtime, accounts for analyst A’s additional outcome (the
promotion).
When an employee perceives that the employee’s and the referent’s outcome/input ratios are
proportionally equal, the employee is motivated either to maintain the status quo or to
increase his or her inputs to receive more outcomes.
Inequity
Inequity, or lack of fairness, exists when outcome/input ratios are not proportionally equal.
Inequity creates tension and unpleasant feelings for an employee and motivates the individual
to try to restore equity by bringing the two ratios back into balance.
There are two basic types of inequity: overpayment inequity and underpayment inequity (see
above given Exhibit). Overpayment inequity exists when an individual perceives that his or
her outcome/ input ratio is greater than that of a referent. Underpayment inequity exists
when a person perceives that his or her outcome/input ratio is less than that of a referent.
Consider the case of Steve and Mike, who are janitors in a large office building. Steve is a
conscientious employee who always gets to work on time and keeps his areas of the building
spotless. Mike is often late, takes long lunch hours, and often “forgets” to clean some of his
areas. Steve and Mike receive the same level of pay, benefits, and other outcomes from their
employer. According to equity theory, if both employees have accurate perceptions and choose
each other as a referent, Mike should perceive overpayment inequity. This perception creates
tension within Mike (perhaps it makes him feel guilty), and so he’s motivated to restore equity.
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Steve, in contrast, perceives underpayment inequity. Because Steve is contributing more than
Mike yet receiving the same level of outcomes, he, too, experiences tension (perhaps anger)
and is motivated to restore equity.
Ways to Restore Equity
There are several ways by which equity can be restored in situations like the one involving
Steve and Mike.
 Employees can change their inputs or outcomes. When employees perceive
underpayment inequity, for example, they can restore equity by reducing their inputs.
In the case of the two janitors, Steve could restore equity by cutting back on his inputs—
by coming to work late, taking longer breaks, and working less conscientiously. An
underpaid employee could also try to change his or her outcomes by asking for a raise.
 Employees try to change their referents’ inputs or outcomes. Steve might complain to
his supervisor about Mike’s coming to work late and not doing a very good job in the
hope that the supervisor will alter Mike’s inputs (perhaps by getting him to show up on
time or do a better job) or his outcomes (cutting his pay or threatening his job security).
On the other hand, Mike might encourage Steve to relax and take it easy on the job.
 Employees change their perceptions of inputs and outcomes (either their own or the
referents’). Mike could restore equity by changing his perceptions about his inputs. He
could start to think that his area is larger or harder to clean than Steve’s or that he
works faster, so his and Steve’s ratios are really proportional after all. As this example
illustrates, employees who perceive overpayment inequity are especially likely to
change their perceptions (rather than their actual inputs or outcomes) to restore equity.
This is why overpaid employees often do not feel guilty for very long.
 Employees can change the referent. An employee may decide that the original referent
does not allow for an appropriate comparison and, thus, select another one. Steve might
recall hearing that Mike is a relative of one of the managers in the company and
conclude that he is not the most suitable basis for comparison. Conversely, Mike might
decide that Steve is clearly an extraordinary, almost superhuman janitor and select
someone else to compare himself to.
 Employees leave the job or organization or force the referent to leave. The most
common example of this approach is employee turnover and, not surprisingly, leaving
the organization is most prevalent in situations of underpayment inequity. Thus, Steve
might be motivated to look for a job elsewhere, or he might try to get Mike fired.
The Effects of Inequity and the Research Evidence
Both underpayment inequity and overpayment inequity are dysfunctional for organizations,
managers, and employees. In the case of overpayment, although employees are sometimes
motivated to increase their inputs to restore equity (an effort that is functional for the
organization), they are more likely to be motivated to change their perceptions of inputs or
outcomes (an effort that is dysfunctional because there is no actual increase in the level of
inputs contributed by the overpaid employees). In the case of underpayment, capable and
deserving employees may be motivated to reduce their inputs or even leave the organization,
both of which are dysfunctional for the organization. Moreover, sometimes when employees
feel very unfairly treated, they engage in unethical behaviors such as stealing from the
organization.
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All in all, motivation is highest when equity exists and outcomes are distributed to employees
on the basis of their inputs to the organization. Employees who contribute a high level of inputs
and receive, in turn, a high level of outcomes are motivated to continue to contribute inputs.
Employees who contribute a low level of inputs and receive a low level of outcomes know that
if they want to increase their outcomes, they must increase their inputs.
Like expectancy theory, equity theory is a popular theory of motivation and has
received extensive research attention. Also, as in the case of expectancy theory,
although there have been some no supportive results, by and large the research
supports the main ideas of the theory
References:
1.Stephen P. Robins, 2001 Organisational Behaviour, 9the Edition. Prentice Hall of India, New Delhi
2. Fred Luthans, 1998, “Organisational Behaviour”, McGraw Hill Book Co.
3. Stephen P. Robins, 1997 “Organisational Behaviour” Prentice Hall.
4. Keith Davis, 1991. “Human Behaviour at Work” McGraw Hill Book Co.
5. Hellriegel, Slocum and Woodman, 2001. “Organisational Behaviour” South Western Thomas –
Learning 9th Edition
6. Laurie Mullins 1996,1999, 2002. “Management and Organisational Behaviour” 6th Edition. F. T.
Prentice Hall.
7. Mintzberg H. 1979 “Structuring of Organisations” Prentice Hall Int.
8. Mitchell J. R. “People in Organisations “An introduction to Organisational Behaviour” McGraw Hill
series in management 1982 Second Edition.
9. McFalland E. Dalton. 1974.” Management Principles and Practices” 4th Edition MacMillan
Publishing Company Inc.
10. Quinn. R. e. Faerman SR et al 1996. “Becoming a master manager – a competing framework –
John Wiley.

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551 552MG42-unit III.docx

  • 1. 1 www.dmisjbu.edu.mw DMI-ST. JOHN THE BAPTIST UNIVERSITY MANGOCHI, MALAWI Module Code: 551/552MG42 Subject Name: ORGANISATIONAL BEHAVIOUR School of Management & Commerce Module Teacher: M. Divya UNIT III DETAILED NOTES
  • 2. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 2 www.dmisjbu.edu.mw Syllabus Leadership concept – characteristics – leadership theories – leadership styles – managerial grid- leadership continuum – leadership effectiveness. Motivation – concept and importance – motivators – financial and non-financial – theories of motivation.
  • 3. 3 www.dmisjbu.edu.mw LEADERSHIP MEANING AND DEFINITION Leadership is an integral part of management and plays a vital role in managerial operation. Leadership is viewed as a characteristic of the individual. Leader is one who makes his subordinates to do willingly what he wants. Leadership is the process of influencing the behavior of others towards the accomplishment of goals in a given situation. Leadership is the process of influencing the behaviour of others to work willingly and enthusiastically for achieving the predetermined goals. In the previous chapter mention has been made about the response of individuals that vary from resistance to commitment, to the application of power and authority. The objective of leadership is to ensure that any tendency to resistance should be unwilling and to commitment must be willing. So a leader must be capable of influencing group activities with regard to goal formation and goal accomplishment. Therefore leadership is a value-loaded term. People can be hypnotized to become achievement oriented willingly by a good leader. Koontz and O’Donnel have defined, “Leadership is the art of process of influencing people so that they will strive willingly towards the achievement of group goals”. George R.Terry has defined, “Leadership is the activity of influencing people to strive willingly for group objectives”. According to Peter Drucker - Leadership "is not making friends and influencing people i.e., salesmanship. Leadership is the lifting of man's vision to higher sights, the raising of man's performance to higher standards, the building of man's personality beyond its normal limitations". According to Louis A Allen - "A leader is one who guides and directs other people. He gives the efforts to his followers a direction and purpose by influencing their behaviour". CHARACTERISTICS OF LEADERSHIP  It is a inter-personal process in which a manager is into influencing and guiding workers towards attainment of goals.  It denotes a few qualities to be present in a person which includes intelligence, maturity and personality.  It is a group process. It involves two or more people interacting with each other.  A leader is involved in shaping and molding the behavior of the group towards accomplishment of organizational goals.  Leadership is situation bound. There is no best style of leadership. It all depends upon tackling with the situations
  • 4. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 4 www.dmisjbu.edu.mw IMPORTANCE OF LEADERSHIP Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. The following points justify the importance of leadership in a concern.  Initiates action- Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work actually starts.  Motivation- A leader proves to be playing an incentive role in the concern’s working. He motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates.  Providing guidance- A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently.  Creating confidence- Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve the goals effectively. It is also important to hear the employees with regards to their complaints and problems.  Building morale- Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning their trust. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals.  Builds work environment- Management is getting things done from people. An efficient work environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a leader. He should have personal contacts with employees and should listen to their problems and solve them. He should treat employees on humanitarian terms.  Co-ordination- Co-ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can be achieved through proper and effective co-ordination which should be primary motive of a leader. LEADERSHIP STYLES OR TYPES The term leadership styles can be defined as a leader’s behaviour toward group members. It refers to the behavioural pattern followed by a leader at the time of supervising his subordinates. The leadership styles can be categorized as follows; Autocratic or Dictatorial leadership style: This style is also known as ‘leader-centred style’ or ‘authoritarian style’. Under this style, leader concentrate all authority in himself, instructs subordinates as to what to do, when to do, how to do it, etc, He also exercise close supervision and control over his subordinates. Subordinates are expected to do what they are told. The autocratic leader accomplishes the results through the use of authority, fear of deprivation, punishment and such other negative rewards. As it is negative in character, authoritarian approach will succeed only in the short run.
  • 5. 5 www.dmisjbu.edu.mw Advantages:  It facilitates quick decision-making  It provides strong motivation and satisfaction to the leader who decades terms  Highest productivity  Less competent subordinates are needed at lower levels  It can yield positive outcome under conditions of stress. Disadvantages:  People dislike this style especially when the motivational style negative.  It leads to frustration, low morale and conflict which affect organisational efficiency  Due to lack of opportunity to exercise initiative and judgment, future leadership does not develop. Followers remain uninformed, insecure and afraid of leader’s power.  There is resistance to change as workers feel harrased and disturbed. Participative or Democratic leadership: In this type of leadership, the subordinates are consulted and their feedback is taken into decision making process. Decisions are taken after group discussions. Therefore, the authority is decentralized. The participative leader attaches high importance to both work and people. He provides freedom of thinking and expression. Advantages:  The subordinates are motivated by participation in decision making process. This will also increase job satisfaction.  Absence of leader does not affect output.  Labour absenteeism and turn-over will be minimum.
  • 6. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 6 www.dmisjbu.edu.mw  The quality of decision is improved  The leader multiplies his abilities through the contribution of his followers. Disadvantages:  Decisions cannot be taken quickly because under the democratic style of leadership, the leader consults the subordinates before arriving at decisions.  Employees may be exploited by adopting this type of leadership disguisedly  People who refer minimum interaction with leaders and fellow subordinates may not like this type of leadership. Laissez – faire or free rein leadership: In this type, complete freedom is given to the subordinates so that they plan, motivate, control and otherwise be responsible for their own actions. Leader does not take part in decision making process. The authority is completely decentralized. Advantages: o Positive effect on job satisfaction and morale of subordinates. o It creates on environment of freedom, individuality as well as the team sprit o Full utilization of the potential of subordinates Disadvantages:  Lack of discipline  Lowest productivity  No control and co-ordination. Hence tense situation will prevail.  Some members may put their own interests above the group and team interests. THEORIES OF LEADERSHIP  House’s Path Goal Theory
  • 7. 7 www.dmisjbu.edu.mw  Managerial Grid  Trait theory of leadership  Leadership-Member Exchange (LMX) theory  Transformational Leadership theory  Transactional Leadership theory  Fiedler’s Contingency model  Likert’s Management system  Continuum of leadership behaviour HOUSE’S PATH GOAL THEORY Path-Goal Theory: How Leaders Motivate Followers Robert House, a widely respected leadership researcher, realized that much of what leaders try to do in organizations involves motivating their followers. House’s path-goal theory describes how leaders can motivate their followers to achieve group and organizational goals and the kinds of behaviors they can engage in to accomplish that Path-goal theory suggests that effective leaders follow three guidelines to motivate their followers. The guidelines are based on the expectancy theory of motivation. Effective leaders who follow these guidelines have highly motivated subordinates who are likely to meet their work goals and perform at high levels: 1. Determine what outcomes subordinates are trying to obtain in the workplace. For example, what needs are they trying to satisfy, or what goals are they trying to meet? After gaining this information, the leader must have control over those outcomes or over the ability to give or withhold the outcomes to subordinates.30 The new manager of a group of five attorneys in a large law firm determined that salary raises and the opportunity to work on interesting cases with big corporate clients were the outcomes her subordinates most desired. She already controlled the assignment of cases and clients, but her own boss determined salary raises. After realizing the importance of salary raises for the motivation of her subordinates, the manager discussed with her boss the importance of being able to determine her own subordinates’ raises. The boss gave her sole authority to determine their raises as long as she kept within the budget. In this way, the manager made sure she had control over outcomes her subordinates desired. 2. Reward subordinates for performing at high levels or achieving their work goals by giving them desired outcomes. The manager in the law firm had two important goals for her subordinates: completing all assignments within the budgeted hours and winning cases. When subordinates met these goals, they were performing at a high level. To motivate her subordinates to attain these goals, the manager made sure her distribution of interesting monthly case assignments and semiannual raises reflected the extent to which her subordinates met these two goals. The subordinate who always stayed within the budgeted hours and won all of his or her cases in the last six months received not only the biggest raise but also the choicest assignments. 3. Make sure the subordinates believe they can obtain their work goals and perform at high levels. Leaders can do this by showing subordinates the paths to goal attainment (hence the name path-goal theory), by removing any obstacles that might come up along the way, and by expressing confidence in their subordinates’ capabilities. The manager in the law firm realized that one of her subordinates had low expectations. He had little confidence in his ability to stay within budget and to win
  • 8. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 8 www.dmisjbu.edu.mw cases no matter how hard he worked. The manager was able to raise this subordinate’s expectations by showing him how to allocate his billable hours among the various cases he was working on and explaining to him the key ingredients to winning a case. She also told him to ask her for help whenever he came across a problem he thought might jeopardize his chances of winning a case. The subordinate followed her advice, and together they worked out ways to get around problems that came up on the subordinate’s various cases. By clarifying the paths to goal attainment and helping to remove obstacles, the supervisor helped raise this subordinate’s expectations and motivation, and he actually started to win more cases and complete them within the budgeted hours. House identified four types of behavior that leaders can engage in to motivate subordinates:  Directive behavior (similar to initiating structure) lets subordinates know what tasks need to be performed and how they should be performed.  Supportive behavior (similar to consideration) lets subordinates know their leader cares about their well-being and is looking out for them.  Participative behavior enables subordinates to be involved in making decisions that affect them.  Achievement-oriented behavior pushes subordinates to do their best. Such behavior includes setting difficult goals for followers, expecting high performance, and expressing confidence in their capabilities. Leadership Styles: Directive: Here the leader provides guidelines, lets subordinates know what is expected of them, sets performance standards for them, and controls behavior when performance standards are not met. He makes judicious use of rewards and disciplinary action. The style is the same as task-oriented one. Supportive: The leader is friendly towards subordinates and displays personal concern for their needs, welfare, and well-being. This style is the same as people-oriented leadership. Participative: The leader believes in group decision-making and shares information with subordinates. He consults his subordinates on important decisions related to work, task goals, and paths to resolve goals. Achievement-oriented: The leader sets challenging goals and encourages employees to reach their peak performance. The leader believes that employees are responsible enough to accomplish challenging goals. This is the same as goal-setting theory. According to the theory, these leadership styles are not mutually exclusive and leaders are capable of selecting more than one kind of a style suited for a particular situation. Contingencies: The theory states that each of these styles will be effective in some situations but not in others. It further states that the relationship between a leader’s style and effectiveness is dependent on the following variables:
  • 9. 9 www.dmisjbu.edu.mw Employee characteristics: These include factors such as employees’ needs, locus of control, experience, perceived ability, satisfaction, willingness to leave the organization, and anxiety. For example, if followers are high inability, a directive style of leadership may be unnecessary; instead a supportive approach may be preferable. Characteristics of work environment: These include factors such as task structure and team dynamics that are outside the control of the employee. For example, for employees performing simple and routine tasks, a supportive style is much effective than a directive one. Similarly, the participative style works much better for non-routine tasks than routine ones. When team cohesiveness is low, a supportive leadership style must be used whereas in a situation where performance-oriented team norms exist, a directive style or possibly an achievement-oriented style works better. Leaders should apply directive style to counteract team norms that oppose the team’s formal objectives. BLAKE AND MOUTON’S MANAGERIAL GRID The treatment of task orientation and people orientation as two independent dimensions was a major step in leadership studies. Many of the leadership studies conducted in the 1950s at the University of Michigan and the Ohio State University focused on these two dimensions. Building on the work of the researchers at these Universities, Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal of leadership styles through a managerial grid (sometimes called leadership grid). The grid depicted two dimensions of leader behavior, concern for people (accommodating people’s needs and giving them priority) on y-axis and concern for production (keeping tight schedules) on x-axis, with each dimension ranging from low (1) to high (9), thus creating 81 different positions in which the leader’s style may fall.
  • 10. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 10 www.dmisjbu.edu.mw The five resulting leadership styles are as follows:  Impoverished Management (1, 1): Managers with this approach are low on both the 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.  Task management (9, 1): Also called dictatorial or perish style. Here 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 labour turnover is inevitable.  Middle-of-the-Road (5, 5): This is 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.  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.  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.
  • 11. 11 www.dmisjbu.edu.mw  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. TRAIT THEORY OF LEADERSHIP The trait model of leadership is based on the characteristics of many leaders - both successful and unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits are then compared to those of potential leaders to assess their likelihood of success or failure. Scholars taking the trait approach attempted to identify physiological (appearance, height, and weight), demographic (age, education and socioeconomic background), personality, self- confidence, and aggressiveness), intellective (intelligence, decisiveness, judgment, and knowledge), task-related (achievement drive, initiative, and persistence), and social characteristics (sociability and cooperativeness) with leader emergence and leader effectiveness. Successful leaders definitely have interests, abilities, and personality traits that are different from those of the less effective leaders. Through many researchers conducted in the last three decades of the 20th century, a set of core traits of successful leaders have been identified. These traits are not responsible solely to identify whether a person will be a successful leader or not, but they are essentially seen as preconditions that endow people with leadership potential. Among the core traits identified are:  Achievement drive: High level of effort, high levels of ambition, energy and initiative  Leadership motivation: an intense desire to lead others to reach shared goals  Honesty and integrity: trustworthy, reliable, and open  Self-confidence: Belief in one’s self, ideas, and ability  Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and conceptually skilled  Knowledge of business: Knowledge of industry and other technical matters  Emotional Maturity: well adjusted, does not suffer from severe psychological disorders.  Others: charisma, creativity and flexibility Strengths/Advantages of Trait Theory  It is naturally pleasing theory.  It is valid as lot of research has validated the foundation and basis of the theory.  It serves as a yardstick against which the leadership traits of an individual can be assessed.  It gives a detailed knowledge and understanding of the leader element in the leadership process. Limitations of The Trait Theory
  • 12. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 12 www.dmisjbu.edu.mw  There is bound to be some subjective judgment in determining who is regarded as a ‘good’ or ‘successful’ leader  The list of possible traits tends to be very long. More than 100 different traits of successful leaders in various leadership positions have been identified. These descriptions are simply generalities.  There is also a disagreement over which traits are the most important for an effective leader  The model attempts to relate physical traits such as, height and weight, to effective leadership. Most of these factors relate to situational factors. For example, a minimum weight and height might be necessary to perform the tasks efficiently in a military leadership position. In business organizations, these are not the requirements to be an effective leader. LEADERSHIP-MEMBER EXCHANGE (LMX) THEORY Informal observation of leadership behavior suggests that leader’s action is not the same towards all subordinates. The importance of potential differences in this respect is brought into sharp focus by Graen’s leader-member exchange model, also known as the vertical dyad linkage theory. The theory views leadership as consisting of a number of dyadic relationships linking the leader with a follower. The quality of the relationship is reflected by the degree of mutual trust, loyalty, support, respect, and obligation. According to the theory, leaders form different kinds of relationships with various groups of subordinates. One group, referred to as the in-group, is favored by the leader. Members of in- group receive considerably more attention from the leader and have more access to the organizational resources. By contrast, other subordinates fall into the out-group. These individuals are disfavored by the leader. As such, they receive fewer valued resources from their leaders. Leaders distinguish between the in-group and out-group members on the basis of the perceived similarity with respect to personal characteristics, such as age, gender, or personality. A follower may also be granted an in-group status if the leader believes that person to be especially competent at performing his or her job. The relationship between leaders and followers follows three stages: Role taking: When a new member joins the organization, the leader assesses the talent and abilities of the member and offers them opportunities to demonstrate their capabilities. Role making: An informal and unstructured negotiation on work-related factors takes place between the leader and the member. A member who is similar to the leader is more likely to succeed. A betrayal by the member at this stage may result in him being relegated to the out- group.
  • 13. 13 www.dmisjbu.edu.mw The LMX 7 scale assesses the degree to which leaders and followers have mutual respect for each other’s capabilities, feel a deepening sense of mutual trust, and have a sense of strong obligation to one another. Taken together, these dimensions determine the extent to which followers will be part of the leader’s in-group or out-group. In-group followers tend to function as assistants or advisers and to have higher quality personalized exchanges with the leader than do out-group followers. These exchanges typically involve a leader’s emphasis on assignments to interesting tasks, delegation of important responsibilities, information sharing, and participation in the leader’s decisions, as well as special benefits, such as personal support and support and favorable work schedules. TRANSFORMATIONAL LEADERSHIP THEORY Creating high-performance workforce has become increasingly important and to do so business leaders must be able to inspire organizational members to go beyond their task requirements. As a result, new concepts of leadership have emerged - transformational leadership being one of them. Transformational leadership may be found at all levels of the organization: teams, departments, divisions, and organization as a whole. Such leaders are visionary, inspiring, daring, risk-takers, and thoughtful thinkers. They have a charismatic appeal. But charisma alone is insufficient for changing the way an organization operates. For bringing major changes, transformational leaders must exhibit the following four factors: Figure: Model of Transformational Leadership  Inspirational Motivation: The foundation of transformational leadership is the promotion of consistent vision, mission, and a set of values to the members. Their vision is so compelling that they know what they want from every
  • 14. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 14 www.dmisjbu.edu.mw interaction. Transformational leaders guide followers by providing them with a sense of meaning and challenge. They work enthusiastically and optimistically to foster the spirit of teamwork and commitment.  Intellectual Stimulation: Such leaders encourage their followers to be innovative and creative. They encourage new ideas from their followers and never criticize them publicly for the mistakes committed by them. The leaders focus on the “what” in problems and do not focus on the blaming part of it. They have no hesitation in discarding an old practice set by them if it is found ineffective.  Idealized Influence: They believe in the philosophy that a leader can influence followers only when he practices what he preaches. The leaders act as role models that followers seek to emulate. Such leaders always win the trust and respect of their followers through their action. They typically place their followers needs over their own, sacrifice their personal gains for them, ad demonstrate high standards of ethical conduct. The use of power by such leaders is aimed at influencing them to strive for the common goals of the organization.  Individualized Consideration: Leaders act as mentors to their followers and reward them for creativity and innovation. The followers are treated differently according to their talents and knowledge. They are empowered to make decisions and are always provided with the needed support to implement their decisions. TRANSACTIONAL LEADERSHIP THEORY The transactional style of leadership was first described by Max Weber in 1947 and then by Bernard Bass in 1981. This style is most often used by the managers. It focuses on the basic management process of controlling, organizing, and short-term planning. The famous examples of leaders who have used transactional technique include McCarthy and de Gaulle. Transactional leadership involves motivating and directing followers primarily through appealing to their own self-interest. The power of transactional leaders comes from their formal authority and responsibility in the organization. The main goal of the follower is to obey the instructions of the leader. The style can also be mentioned as a ‘telling style’. The leader believes in motivating through a system of rewards and punishment. If a subordinate does what is desired, a reward will follow, and if he does not go as per the wishes of the leader, a punishment will follow. Here, the exchange between leader and follower takes place to achieve routine performance goals. These exchanges involve four dimensions: Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide necessary resources, set mutually agreed upon goals, and provide various kinds of rewards for successful performance. They set SMART (specific, measurable, attainable, realistic, and timely) goals for their subordinates.
  • 15. 15 www.dmisjbu.edu.mw Active Management by Exception: Transactional leaders actively monitor the work of their subordinates, watch for deviations from rules and standards and taking corrective action to prevent mistakes. Passive Management by Exception: Transactional leaders intervene only when standards are not met or when the performance is not as per the expectations. They may even use punishment as a response to unacceptable performance. Laissez-faire: The leader provides an environment where the subordinates get many opportunities to make decisions. The leader himself abdicates responsibilities and avoids making decisions and therefore the group often lacks direction. FIEDLER’S CONTINGENCY MODEL Fred E. Fiedler’s contingency theory of leadership effectiveness was based on studies of a wide range of group effectiveness, and concentrated on the relationship between leadership and organizational performance. This is one of the earliest situation-contingent leadership theories given by Fiedler. According to him, if an organization attempts to achieve group effectiveness through leadership, then there is a need to assess the leader according to an underlying trait, assess the situation faced by the leader, and construct a proper match between the two. Leader’s trait In order to assess the attitudes of the leader, Fiedler developed the ‘least preferred co-worker’ (LPC) scale in which the leaders are asked about the person with whom they least like to work. The scale is a questionnaire consisting of 16 items used to reflect a leader’s underlying disposition toward others. The items in the LPC scale are pleasant / unpleasant, friendly / unfriendly, rejecting / accepting, unenthusiastic / enthusiastic, tense / relaxed, cold / warm, helpful / frustrating, cooperative / uncooperative, supportive / hostile, quarrelsome / harmonious, efficient / inefficient, gloomy / cheerful, distant / close, boring / interesting, self- assured / hesitant, open / guarded. Each item in the scale is given a single ranking of between one and eight points, with eight points indicating the most favorable rating. Friendly ________________________________________ Unfriendly 8 7 6 5 4 3 2 1 Fiedler states that leaders with high LPC scores are relationship-oriented and the ones with low scores are task-oriented. The high LPC score leaders derived most satisfaction from interpersonal relationships and therefore evaluate their least preferred co-workers in fairly favorable terms. These leaders think about the task accomplishment only after the relationship need is well satisfied. On the other hand, the low LPC score leaders derived satisfaction from performance of the task and attainment of objectives and only after tasks have been accomplished, these leaders work on establishing good social and interpersonal relationships. Situational factor
  • 16. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 16 www.dmisjbu.edu.mw According to Fiedler, a leader’s behavior is dependent upon the favorability of the leadership situation. Three factors work together to determine how favorable a situation is to a leader. These are: Leader-member relations - The degree to which the leaders is trusted and liked by the group members, and the willingness of the group members to follow the leader’s guidance. Task structure - The degree to which the group’s task has been described as structured or unstructured, has been clearly defined and the extent to which it can be carried out by detailed instruction. Position power - The power of the leader by virtue of the organizational position and the degree to which the leader can exercise authority on group members in order to comply with and accept his direction and leadership. With the help of these three variables, eight combinations of group-task situations were constructed by Fiedler. These combinations were used to identify the style of the leader. The leader’s effectiveness is determined by the interaction of the leader’s style of behavior and the favorableness of the situational characteristics. The most favorable situation is when leader-member relations are good, the task is highly structured, and the leader has a strong position power. Figure: Correlation between leader’s LPC scores and group effectiveness Leadership Effectiveness Fiedler also suggested that leaders may act differently in different situations. Relationship- oriented leaders generally display task-oriented behaviors under highly favorable situations and display relationship-oriented behaviors under unfavorable intermediate favorable
  • 17. 17 www.dmisjbu.edu.mw situations. Similarly, task-oriented leaders frequently display task-oriented in unfavorable or intermediate favorable situations but display relationship-oriented behaviors in favorable situations. LIKERT’S MANAGEMENT SYSTEM Rensis Likert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified a four-fold model of management systems. The model was developed on the basis of a questionnaire administered to managers in over 200 organizations and research into the performance characteristics of different types of organizations. The four systems of management system or the four leadership styles identified by Likert are: System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper echelons of the hierarchy. The superior has no trust and confidence in subordinates. The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The teamwork or communication is very little and the motivation is based on threats. System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is very little and motivation is based on a system of rewards. System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not complete confidence in subordinates. Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job. System 4 - Participative: Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy. There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and participation CONTINUUM OF LEADERSHIP BEHAVIOUR The leadership continuum was originally written in 1958 by Tannenbaum and Schmidt and was later updated in the year 1973. Their work suggests a continuum of possible leadership behavior available to a manager and along which many leadership styles may be placed. The continuum presents a range of action related to the degree of authority used by the manager and to the area of freedom available to non-managers in arriving at decisions. A broad range of leadership styles have been depicted on the continuum between two extremes of autocratic and free rein (See figure 1). The left side
  • 18. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 18 www.dmisjbu.edu.mw shows a style where control is maintained by a manager and the right side shows the release of control. However, neither extreme is absolute and authority and freedom are never without their limitations. The Tannenbaum and Schmidt continuum can be related to McGregor’s supposition of Theory X and Theory Y. Boss-centered leadership is towards theory X and subordinate-centered leadership is towards theory Y. Figure 1: Continuum Leadership Behaviour. A manager is characterized according to degree of control that is maintained by him. According to this approach, four main styles of leadership have been identified:  Tells: The manager identifies a problem, chooses a decision, and announces this to subordinates. The subordinates are not a party to the decision making process and the manager expects them to implement his decisions as soon as possible.  Sells: The decision is chosen by the manager only but he understands that there will be some amount of resistance from those faced with the decision and therefore makes efforts to persuade them to accept it.  Consults: Though the problem is identified by the manager, he does not take a final decision. The problem is presented to the subordinates and the solutions are suggested by the subordinates.  Joins: The manager defines the limits within which the decision can be taken by the subordinates and then makes the final decision along with the subordinates.
  • 19. 19 www.dmisjbu.edu.mw According to Tannenbaum and Schmidt, if one has to make a choice of the leadership style which is practicable and desirable, then his answer will depend upon the following three factors:  Forces in the Manager: The behavior of the leader is influenced by his personality, background, knowledge, and experience. These forces include: i. Value systems ii. Confidence in subordinates iii. Leadership inclinations iv. Feelings of security in an uncertain situation  Forces in the subordinate: The personality of the subordinates and their expectations from the leader influences their behavior. The factors include: i. Readiness to assume responsibility in decision-making ii. Degree of tolerance for ambiguity iii. Interest in the problem and feelings as to its importance iv. Strength of the needs for independence v. Knowledge and experience to deal with the problem vi. Understanding and identification with the goals of the organization If these factors are on a positive side, then more freedom can be allowed to the subordinate by the leader.  Forces in the situation: The environmental and general situations also affect the leader’s behavior. These include factors like: i. Type of organization ii. Group effectiveness iii. Nature of the problem iv. Time pressure When the authors updated their work in1973, they suggested a new continuum of patterns of leadership behavior. In this, the total area of freedom shared between managers and non-managers is redefined constantly by interactions between them and the environmental forces. This pattern was, however, more complex in comparison to the previous one MOTIVATION Motivation is a basic psychological process, Technically, the term ‘motivation’ can be traced to the Latin word ‘movere’, which means “to move”. This meaning is evident in the following comprehensive definition: “A motive is an inner state that energizes, activates or moves (hence) motivation” and that directs or channels behaviour towards goals”. The key to understanding motivation lies in the meaning of, and relationship between, needs, drives, and goals.
  • 20. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 20 www.dmisjbu.edu.mw THE BASIC MOTIVATION PROCESS NEEDS ------------------------ DRIVES -------------------------------- GOALS  Needs: The best one-ward definition of a need is deficiency. For example, a need exists when a cell in the body is deprived of food and water.  Drives: Drives or motives are set up to alleviate needs. A drive can simply be defined as a deficiency with direction. The examples of the needs for food and water are translated into the hunger and thirst drives, and the need for friends becomes a drive for affiliation.  Goals: At the end of the motivation cycle is the goal. A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive. Food, Water and Friends are the goals in our examples. TYPES OF MOTIVES Primary Motives: Hunger, thirst, sleep, avoidance of pain, sex etc, are classified as primary motives. General Motives: The motives of competence, curiosity, manipulation activity, and affection are called general motives. Secondary Motives:Power, achievement, affiliation, security and status are important secondary motives. KINDS AND TYPES OF MOTIVATION On the basis of approach motivation classified into two, they are Positive motivation: Positive motivation implies creation of an environment in which people can satisfy their needs and aspirations. Under it rewards and incentives are offered to inspire employees. All necessary facilities are provided to workers. They are offered prizes and awards for best performance. Positive motivation removes the psychological barrier and develops a sense of affiliation. Negative motivation: Negative motivation is based on force, and threats. The fear of punishment or unfavorable consequences affects the behavioral changes. If the worker fails to complete the work, they may be threatened with demotion, dismissed, lay off, pay cut etc, involves creating a sense of fear or unhelpful environment. Which the workers have to suffer in case their performance does not come up to the desired level. This gives maximum benefits in the short run.
  • 21. 21 www.dmisjbu.edu.mw On the basis of the types of incentives motivation classified into two, they are Financial motivation: Financial motivation implies use of monetary benefits to inspire employees. Financial incentives include wages and salaries, bonus, fringe benefits, retirement benefits, etc. money plays an important role in motivation. Money helps to satisfy physiological and security needs of workers. Money is also useful in satisfying social needs to some extent because money is often recognize as a symbol of power, prestige and status. But money is not only motivator. It fails very often to satisfy higher level needs like ego and self-actualization. Employees do not always run after money. They also want status, recognition autonomy and challenge. Once the physiological and security needs are fulfilled money ceases to be motivator. Non-financial motivation: Non-financial motivation motivators are not associated with monetary rewards. These include recognition of work done, greater involvement in decision- making, responsibility, challenging job, etc. Praise, competition, knowledge of results, suggestion system, and opportunity for growth are other important non-financial motivators. Values and attitudes of an individual also determine his behaviour. For e.g. a status conscious executive may be motivated by a carpeted floor, private parking site or personal secretary. On the basis of the nature of reward motivation classified into two, they are Extrinsic motivation: This motivation is induced by external factors, which are primarily financial in nature. These incentives and rewards have been subjected of debate, whether they really motivated the employees or simply move them to work or perform. These motivations include higher pay, retirement benefits, rest periods, holidays, profit sharing schemes, health and medical insurance, vacation etc. Intrinsic motivation: Intrinsic motivation is available at the time of performance of work. These motivations provide a satisfaction during the performance of the work itself. Some of the intrinsic motivations are praise, recognition, responsibility, esteem, power, status, participation etc. MOTIVATION PROCESS Motivation represents the forces acting on or within a person that cause the person to behave in a specific, goal-directed manner. Because the motives of employees affect their productivity, one of management’s jobs is to channel employee motivation effectively toward achieving organizational goals. However, motivation isn’t the same as performance. Even the most highly motivated employees may not be successful in their jobs, especially if they don’t have the competencies needed to perform the jobs or they work under unfavorable job conditions. Although job performance involves more than motivation, motivation is an important factor in achieving high performance. Experts also do not agree about everything that motivates employees—and the effects of working conditions on their careers—but they do agree that an organization needs to:  attract individuals to the organization and encourage them to remain with it,
  • 22. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 22 www.dmisjbu.edu.mw  allow individuals to perform the tasks for which they were hired, and  stimulate individuals to go beyond routine performance and become creative and innovative in their work. For an organization to be effective, it must tackle the motivational challenges involved in arousing individuals’ desires to be productive members of the organization. Core Phases A key motivational principle states that performance is a function of a person’s level of ability and motivation. This principle is often expressed by the following formula: Performance _ f (ability _ motivation). According to this principle, no task can be performed successfully unless the person who is to carry it out has the ability to do so. Ability is the person’s natural talent, as well as learned competencies, for performing goal-related tasks. Regardless of a person’s competence, however, ability alone isn’t enough to ensure performance at a high level. The person must also want to achieve a high level of performance. The multiplicative formula suggests that ability and motivation are important. If an employee is 100 percent motivated and 75 percent able to perform a task, he will probably be better than average at performing the task. However, if the same individual has only 10 percent ability, no amount of motivation will enable him to perform satisfactorily. Therefore, motivation represents an employee’s desire and commitment to perform and is evidenced by his performance. The motivational process begins with identifying a person’s needs, shown as phase 1 in below given Figure. Needs are deficiencies that a person experiences at a particular time (phase 1). These deficiencies may be psychological (e.g., the need for recognition), physiological (e.g., the need for water, air, or food), or social (e.g., the need for friendship). Needs often act as energizers for behavior. That is, needs create tensions within the individual, who finds them uncomfortable and therefore is likely to make an effort (phase 2) to reduce or eliminate them. Motivation is goal directed (phase 3). A goal is a specific result that an individual wants to achieve. An employee’s goals often are driving forces, and accomplishing those goals can significantly reduce needs. J. C. Hernandez, a relationship manager at Wells Fargo Bank, has a strong drive for advancement. He expects that working long hours on highly visible projects will lead to promotions, raises, greater influence, and job security. His work on major problems facing Wells Fargo is designed to gain visibility and influence with senior leaders (phase 4). Promotions and raises are two of the ways in which organizations attempt to maintain desirable behaviors. They are signals (feedback) to employees that their needs for advancement and recognition and their behaviors are appropriate or inappropriate (phase 5). Once the employees have received either rewards or punishments, they reassess their needs (phase 6).
  • 23. 23 www.dmisjbu.edu.mw THEORIES OF MOTIVATION Maslow’s Hierarchy of Needs: Abraham Maslow thought that a person’s motivational needs can be arranged in a hierarchical manner. In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate. The next higher level of need has to be activated in order to motivate the individual Maslow identified five levels in his need hierarchy. Physiological needs: The needs of hunger, thirst, sleep and sex are physiological needs. According to the theory, once these basic needs are satisfied, they no longer motivate. Self - actualization Esteem Needs Love Needs Safety Needs Physiological Needs
  • 24. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 24 www.dmisjbu.edu.mw Safety needs: Maslow stressed emotional as well as physical safety. The whole organization may become a safety – seeking mechanism. For example, membership in a trade union is a safety need. Once these safety needs are satisfied, they no longer motivate. Love needs: Maslow’s use of the word love has many misleading connotations, such as sex, which is actually a physiological need. Perhaps a more appropriate word describing this level would be belongingness or affiliation. Membership in formal and informal work groups is a belongingness need. Esteem needs: The esteem level represents the higher needs of humans. The needs for power, achievement, and status can be considered to be part of this level. Needs for self – actualization: This level represents the culmination of all the lower, intermediate, and higher needs of humans. People, who have become self – actualized, are self- fulfilled and have realized all their potential. Self – actualization is the person’s motivation to transform perception of self into reality. HERZBERG’S TWO – FACTOR THEORY According to Herzberg, there are satisfiers and dis-satisfiers in a job for the individuals. Herzberg labeled satisfiers motivators, and he called the dissatisfies hygiene factors. Taken together, they became known as Herzberg’s two – factor theory of motivation. Herzberg’s theory is closely related to Maslow’s need hierarchy. The hygiene factors are preventive and environmental in nature, and they are roughly equivalent to Maslow’s lower – level needs. Hygiene Factors Motivators Company policy and Administration Technical supervision Salary Inter-personal relations Working conditions Achievement Recognition Work itself Responsibility Advancement These hygiene factors prevent dissatisfaction, but they do not lead to satisfaction. By themselves, the hygiene factors do not motivate. Only the motivators motivate humans on the job. They are roughly equivalent to Maslow’s higher – level needs. According to the Herzberg theory, an individual must have a job with a challenging content in order to be truly motivated. ALDERFER’S ERG THEORY The most recent extension of the Herzberg and, especially, the Maslow content theories of work motivation come from the work of Clayton Alderfer. He formulated a need category
  • 25. 25 www.dmisjbu.edu.mw model that was more in line with the existing empirical evidence. Similar to Maslow and Herzberg, he does feel that there is value in categorizing needs and that here is basic distinction between lower – order needs and higher order needs. Alderfer identified three groups of core needs; Existence, Relatedness, and Growth (hence ERG theory). The existence needs are concerned with survival (physiological Well-being). The relatedness needs stress the importance of interpersonal, social relationships. The growth needs are concerned with the individual’s intrinsic desire for personal development. Following figure shows how these groups of needs are related to the Maslow and Herzberg categories. Obviously, they are very close but the ERG needs do not have strict lines of democrat ion. Herzberg’s Maslow’s Alderfer’s Two factors Hierarchy of Needs ERG Needs Alderfer is suggesting more of a continuous of needs than hierarchical levels or two factors of prepotency needs. Unlike Maslow and Herzberg, he does not contend that a lower level need has to be fulfilled before a higher level need is motivating. For example, under ERG theory the person’s background or cultural environment may dictate that the relatedness needs will take precedence cover unfulfilled existence needs and that the more the growth needs are satisfied, the more they will increase in intensity. MCGREGOR’S ‘THEORY X’ AND ‘THEORY Y’ Douglas McGregor propounded two contrasting theories of human behavior which he called theory X and theory Y. Theory X: Theory X indicates the traditional approach to managerial motivation and control. It represents old stereotyped and authoritarian management style of motivation. It suggests that threats of punishment and strict control are the ways to manage people. RELATEDNESS SELF – ACTUALIZATION ESTEEM LOVE MOTIVATORS HYGIENE FACTORS GROWTH EXISTENCE
  • 26. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 26 www.dmisjbu.edu.mw Theory Y: Theory Y indicates that if people are properly motivated, they could really be creative. The main task of management is to unleash the potential in the employees. An employee who is properly motivated can achieve his goals by directing his own efforts and, thus, he can help in accomplishing the organizational goals. This theory emphasizes the satisfaction of need of the workers. It does not rely heavily on the use of authority as an instrument of command and control. It suggests that decentralization and delegation, job enlargement, participation and consultative management style are the ways to motivate people. Theory X Theory Y Based on the assumption that people are basically lazy and so shirk work Based on the assumption that people like work as children like play People do not take initiative. They like to be directed. People like to take initiative. They seek self – direction. People avoid responsibility whenever possible People assume responsibility gladly if conditions are favorable. For getting things done, people must be supervised strictly. People do not require close and strict supervision for properly performing their jobs. Autocratic style of leadership is likely to be more effective Democratic or participative style of leadership is likely to be more effective. Applicable to illiterate, unskilled and lower – level workers Applicable to educated and skilled employees who occupy high positions in the organizations. Believes in mental sickness and so negative motivation of employees Believes in mental health and so positive and intrinsic motivation of employees ACHIEVEMENT MOTIVATION THEORY: David McClelleand has proposed a theory of motivation that he believes is rooted in culture. He states that we all have three particularly important needs:  For achievement,  Affiliation  Power. When a need is strong in a person, its effect will be to motivate the person to engage in behaviours to satisfy the need. His research has focused mainly on ways that mangers can develop subordinates desire to achieve. Achievement motivation theory states that people are motivated according to the strength of their desire either to perform in terms of a standard of excellence or to succeed in competitive situations. McClelland indicates that almost all people feel they have an “Achievement Motive”. Characteristics of high Achievers: Self-motivated high achievers have three major characteristics: i) They like to set their own goals.
  • 27. 27 www.dmisjbu.edu.mw ii) High achievers tent to avoid selecting extremely difficult goals. They prefer moderate goals. iii) High achievers prefer tasks that provide immediate feedback. EQUITY THEORY The equity theory of work motivation was developed in the 1960s by J. Stacy Adams (equity means “fairness”). Equity theory is based on the premise that an employee perceives the relationship between the outcomes—what the employee gets from a job and organization—and his or her inputs—what the employee contributes to the job and organization. Outcomes include pay, fringe benefits, job satisfaction, status, opportunities for advancement, job security, and anything else the employees wants from the organization. Inputs include special skills, training, education, work experience, effort on the job, time, and anything else that employees believe they contribute. According to equity theory, however, it is not the objective level of outcomes and inputs that is important in determining work motivation. What is important to motivation is the way an employee perceives his or her outcome/input ratio compared to the outcome/input ratio of another person. This other person, called a referent by Adams, is simply another employee or group of employees perceived to be similar to oneself. The referent could also be oneself at a different place or time (for example, in a previous job), or it could be one’s expectations (for example, one’s beliefs about what the outputs and inputs of an entry-level accountant’s job should be). Regardless of the referent an employee chooses, it is the employee’s perceptions of the referent’s outcomes and inputs that are compared—not any objective measure of actual outcomes or inputs. Thus, equity theory focuses primarily on the relationship between inputs and outcomes and addresses this question: Are the outcomes perceived as being at an appropriate level in comparison to the inputs? The theory proposes that from past experience or the observation of others, employees will have a sense of the input levels that should result in certain outcomes. To motivate employees to contribute the inputs the organization needs, managers need to administer outcomes based on those inputs. Moreover, managers need to ensure that different employees’ outcome-input ratios are approximately equal so that employees who contribute more inputs receive more outcomes and vice versa. Equity Equity exists when an individual’s outcome/input ratio equals the outcome/input ratio of the referent (see below given Exhibit). Because the comparison of the ratios is what determines the presence or absence of equity (not the comparison of absolute levels of outcomes and inputs), equity can exist even if the referent receives more than the individual who is making the comparison.
  • 28. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 28 www.dmisjbu.edu.mw Consider the case of two financial analysts who have been working at the same corporation for two years. At the end of the two years, analyst A gets promoted, but analyst B does not. Can both analysts consider this situation to be equitable? The answer is yes: Equity exists if analyst A and analyst B perceive that that their respective outcome/input ratios are equal or proportional and that analyst A generally worked more hours than analyst B. Perhaps, for example, added input, or overtime, accounts for analyst A’s additional outcome (the promotion). When an employee perceives that the employee’s and the referent’s outcome/input ratios are proportionally equal, the employee is motivated either to maintain the status quo or to increase his or her inputs to receive more outcomes. Inequity Inequity, or lack of fairness, exists when outcome/input ratios are not proportionally equal. Inequity creates tension and unpleasant feelings for an employee and motivates the individual to try to restore equity by bringing the two ratios back into balance. There are two basic types of inequity: overpayment inequity and underpayment inequity (see above given Exhibit). Overpayment inequity exists when an individual perceives that his or her outcome/ input ratio is greater than that of a referent. Underpayment inequity exists when a person perceives that his or her outcome/input ratio is less than that of a referent. Consider the case of Steve and Mike, who are janitors in a large office building. Steve is a conscientious employee who always gets to work on time and keeps his areas of the building spotless. Mike is often late, takes long lunch hours, and often “forgets” to clean some of his areas. Steve and Mike receive the same level of pay, benefits, and other outcomes from their employer. According to equity theory, if both employees have accurate perceptions and choose each other as a referent, Mike should perceive overpayment inequity. This perception creates tension within Mike (perhaps it makes him feel guilty), and so he’s motivated to restore equity.
  • 29. 29 www.dmisjbu.edu.mw Steve, in contrast, perceives underpayment inequity. Because Steve is contributing more than Mike yet receiving the same level of outcomes, he, too, experiences tension (perhaps anger) and is motivated to restore equity. Ways to Restore Equity There are several ways by which equity can be restored in situations like the one involving Steve and Mike.  Employees can change their inputs or outcomes. When employees perceive underpayment inequity, for example, they can restore equity by reducing their inputs. In the case of the two janitors, Steve could restore equity by cutting back on his inputs— by coming to work late, taking longer breaks, and working less conscientiously. An underpaid employee could also try to change his or her outcomes by asking for a raise.  Employees try to change their referents’ inputs or outcomes. Steve might complain to his supervisor about Mike’s coming to work late and not doing a very good job in the hope that the supervisor will alter Mike’s inputs (perhaps by getting him to show up on time or do a better job) or his outcomes (cutting his pay or threatening his job security). On the other hand, Mike might encourage Steve to relax and take it easy on the job.  Employees change their perceptions of inputs and outcomes (either their own or the referents’). Mike could restore equity by changing his perceptions about his inputs. He could start to think that his area is larger or harder to clean than Steve’s or that he works faster, so his and Steve’s ratios are really proportional after all. As this example illustrates, employees who perceive overpayment inequity are especially likely to change their perceptions (rather than their actual inputs or outcomes) to restore equity. This is why overpaid employees often do not feel guilty for very long.  Employees can change the referent. An employee may decide that the original referent does not allow for an appropriate comparison and, thus, select another one. Steve might recall hearing that Mike is a relative of one of the managers in the company and conclude that he is not the most suitable basis for comparison. Conversely, Mike might decide that Steve is clearly an extraordinary, almost superhuman janitor and select someone else to compare himself to.  Employees leave the job or organization or force the referent to leave. The most common example of this approach is employee turnover and, not surprisingly, leaving the organization is most prevalent in situations of underpayment inequity. Thus, Steve might be motivated to look for a job elsewhere, or he might try to get Mike fired. The Effects of Inequity and the Research Evidence Both underpayment inequity and overpayment inequity are dysfunctional for organizations, managers, and employees. In the case of overpayment, although employees are sometimes motivated to increase their inputs to restore equity (an effort that is functional for the organization), they are more likely to be motivated to change their perceptions of inputs or outcomes (an effort that is dysfunctional because there is no actual increase in the level of inputs contributed by the overpaid employees). In the case of underpayment, capable and deserving employees may be motivated to reduce their inputs or even leave the organization, both of which are dysfunctional for the organization. Moreover, sometimes when employees feel very unfairly treated, they engage in unethical behaviors such as stealing from the organization.
  • 30. 551/552MG42 ORGANIZATIONAL BEHAVIOUR 30 www.dmisjbu.edu.mw All in all, motivation is highest when equity exists and outcomes are distributed to employees on the basis of their inputs to the organization. Employees who contribute a high level of inputs and receive, in turn, a high level of outcomes are motivated to continue to contribute inputs. Employees who contribute a low level of inputs and receive a low level of outcomes know that if they want to increase their outcomes, they must increase their inputs. Like expectancy theory, equity theory is a popular theory of motivation and has received extensive research attention. Also, as in the case of expectancy theory, although there have been some no supportive results, by and large the research supports the main ideas of the theory References: 1.Stephen P. Robins, 2001 Organisational Behaviour, 9the Edition. Prentice Hall of India, New Delhi 2. Fred Luthans, 1998, “Organisational Behaviour”, McGraw Hill Book Co. 3. Stephen P. Robins, 1997 “Organisational Behaviour” Prentice Hall. 4. Keith Davis, 1991. “Human Behaviour at Work” McGraw Hill Book Co. 5. Hellriegel, Slocum and Woodman, 2001. “Organisational Behaviour” South Western Thomas – Learning 9th Edition 6. Laurie Mullins 1996,1999, 2002. “Management and Organisational Behaviour” 6th Edition. F. T. Prentice Hall. 7. Mintzberg H. 1979 “Structuring of Organisations” Prentice Hall Int. 8. Mitchell J. R. “People in Organisations “An introduction to Organisational Behaviour” McGraw Hill series in management 1982 Second Edition. 9. McFalland E. Dalton. 1974.” Management Principles and Practices” 4th Edition MacMillan Publishing Company Inc. 10. Quinn. R. e. Faerman SR et al 1996. “Becoming a master manager – a competing framework – John Wiley.