Published on March 3, 2014
Management Theory & Organizational Behavior IV Unit Introduction: Motivation can be defined as "the complex forces, needs, drives, tension states, or other mechanisms within us that will create and maintain voluntary activity directed toward the achievement of personal goals". Employee motivation can be defined as "psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort and a person's level of persistence". It is important to understand that employee motivation is a separate and distinct topic apart from motivation. Vast articles and studies exist on this topic indicating the level of importance employee motivation has in business success. A study conducted by the District Chief of the Tulsa, Oklahoma Fire Department concluded that morale does, in fact, have a direct impact on employee productivity. Employers who understand the theories of motivation have a greater ability to understand what motivates employees, to boost employee morale and thus obtain the advantage of greater organizational productivity. Various studies on motivational techniques have proven the effectiveness of job design, rewards, employee participation, and quality-of-work-life programs on employee motivation. Definition: Motivation is defined as the process that initiates, guides and maintains goal-oriented behaviors. Motivation is what causes us to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge. It involves the biological, emotional, social and cognitive forces that activate behavior. In everyday usage, the term motivation is frequently used to describe why a person does something. For example, you might say that a student is so motivated to get into a psychology program that she spends every night studying. Components of Motivation There are three major components to motivation: activation, persistence and intensity. Activation involves the decision to initiate a behavior, such as enrolling in a psychology class. Persistence is QIS College of Engineering and Technology, Ongole Page 1
Management Theory & Organizational Behavior the continued effort toward a goal even though obstacles may exist, such as taking more psychology courses in order to earn a degree although it requires a significant investment of time, energy and resources. Finally, intensity can be seen in the concentration and vigor that goes into pursuing a goal. For example, one student might coast by without much effort, while another student will study regularly, participate in discussions and take advantage of research opportunities outside of class. Extrinsic Vs. Intrinsic Motivation Different types of motivation are frequently described as being either extrinsic or intrinsic. Extrinsic motivations are those that arise from outside of the individual and often involve rewards such as trophies, money, social recognition or praise. Intrinsic motivations are those that arise from within the individual, such as doing a complicated cross-word puzzle purely for the personal gratification of solving a problem. Characteristics or Features of Motivation 1. Motivation is a Psychological Concept: Motivation has to come from within each individual. There are two desiring factors in motivation-(a) Fundamental needs, such as food, clothes and shelter and (6) Ego-satisfaction including self-esteem, recognition from others, opportunities for achievements, self-development and self actualization which act as powerful though unconscious, motivator of behavior. Inner motivation can be more decisive for behavior than any external influence. 2. Motivation affects the Whole Individual, not part of Him /Her: A person‘s basic needs determine to a great extent what he will try to do at any given time. All these needs are inter-related because each individual is an integrated organized whole. 3. Motivation is never an Unending Process: Man is a social animal. As a social animal he has innumerable wants which induce him to work. If one basic need is adequately satisfied for a given individual it loses power as a motivator and does into determine his current behavior but at the same time others needs continue to emerge. 4. Non-fulfillment of Basic Needs Makes a Man Sick: If anybody fails in trying to meet a need which he feels is essential for him, he becomes to some extent mentally ill and such frustrated man cannot be motivated any further until his essential need is satisfied. QIS College of Engineering and Technology, Ongole Page 2
Management Theory & Organizational Behavior 5. Goals are Motivators: Goals and motives are inseparable. Man works to achieve the goals. A soon as the goal is achieved he would be no longer interested in work. Therefore, it is very essential for the management to know his goal to push him to work. 6. The Self-concept as a Unifying Force: According to Geller-man unifying forces run through each individual‘s history. Unifying force means the drive to activate his/her image of him-herself. The outline of a person‘s self image is fairly well checked in early childhood and thereafter does not act ordinarily change. Thus, two things that individual is always trying to do are (a) to act like the person; he thinks he is, and (b) to get what he thinks, he can. 7. Motivation is a complex phenomenon: Motivation being an internal feeling cannot be observed directly. Since motives themselves are dynamic, it further adds to complexity. 8. Motivation is different from Satisfaction, Inspiration, and Manipulation: Motivation refers to the drive and efforts to satisfy a want or goal, whereas satisfaction refers to the contentment experienced when a want is satisfied. In contrast, inspiration is bringing about a change in the thinking pattern. On the other hand Manipulation is getting the things done from others in a predetermined manner. Importance of Motivation 1. Productive use of resources: Modem organisation work through physical, financial and human resources. The utilization of physical and financial resources depends on the willingness of people to work. Motivation enables people to convert physical and financial resources into useful products. It helps management to get the best out of human as well as non-human resources. 2. Increased efficiency and output: Motivation enables people to work enthusiastically. Performance is a product of not merely ability to do a task but the willingness to do the same with zeal and enthusiasm. Motivation bridges the gap between the overall efficiency and output. This, ultimately, helps in reducing the cost of operation. 3. Achievement of goals: Motivation causes goal directed behavior. It helps people to move in a desired direction and earn rewards. In organizations where managers try to understand the needs QIS College of Engineering and Technology, Ongole Page 3
Management Theory & Organizational Behavior of employees and institute appropriate incentive systems, accomplishment of goals in fairly easy. If people are not properly motivated, no useful purpose can be served be planning, organizing and staffing functions. 4. Development of friendly relationships: Motivation brings employees closer to organisation. The needs of employees are met through attractive rewards, promotional opportunities, etc. employees begin to take more interest in organizational work. 5. Stability in workforce: Attractive motivational schemes satisfy the needs of employees. As a result, their commitment to organizational work increases. Employees do their tasks loyally and enthusiastically, they are not tempted to leave the organisation. This means reduced employee turnover. Further, satisfaction on the job means reduced absenteeism. Maslow's Hierarchy of Needs: Maslow's Hierarchy of Needs is a theory in psychology that Abraham Maslow proposed in his 1943 paper A Theory of Human Motivation, which he subsequently extended. His theory contends that as humans meet 'basic needs', they seek to satisfy successively 'higher needs' that occupy a set hierarchy. Maslow studied exemplary people such as Albert Einstein, Jane Addams, Eleanor Roosevelt, and Frederick Douglass rather than mentally ill orneurotic people, writing that "the study of crippled, stunted, immature, and unhealthy specimens can yield only a cripple psychology and a cripple philosophy." QIS College of Engineering and Technology, Ongole Page 4
Management Theory & Organizational Behavior Maslow's hierarchy of needs is often depicted as a pyramid consisting of five levels: the four lower levels are grouped together as deficiency needs associated with physiological needs, while the top level is termed growth needs associated with psychological needs. While deficiency needs must be met, growth needs are continually shaping behavior. The basic concept is that the higher needs in this hierarchy only come into focus once all the needs that are lower down in the pyramid are mainly or entirely satisfied. Physiological needs Physiological needs are the physical requirements for human survival. If these requirements are not met, the human body cannot function properly and will ultimately fail. Physiological needs are thought to be the most important; they should be met first. Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements. While maintaining an adequate birth rate shapes the intensity of the human sexual instinct, sexual competition may also shape said instinct. Safety needs With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety – due to war, natural disaster, family violence, childhood abuse, etc. – people may (re-)experience post-traumatic stress disorder or trans generational trauma. In the absence of economic safety – due to economic crisis and lack of work opportunities – these safety needs manifest themselves in ways such as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, etc. This level is more likely to be found in children because they generally have a greater need to feel safe. Safety and Security needs include: Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts QIS College of Engineering and Technology, Ongole Page 5
Management Theory & Organizational Behavior Love and belonging After physiological and safety needs are fulfilled, the third level of human needs is interpersonal and involves feelings of belongingness. This need is especially strong in childhood and can override the need for safety as witnessed in children who cling to abusive parents. Deficiencies within this level of Maslow's hierarchy – due to hospitalism, neglect, shunning, ostracism, etc. – can impact the individual's ability to form and maintain emotionally significant relationships in general, such as: Friendship Intimacy Family According to Maslow, humans need to feel a sense of belonging and acceptance among their social groups, regardless if these groups are large or small. For example, some large social groups may include clubs, co-workers, religious groups, professional organizations, sports teams, and gangs. Some examples of small social connections include family members, intimate partners, mentors, colleagues, and confidants. Humans need to love and be loved – both sexually and non-sexually – by others. Many people become susceptible to loneliness, social anxiety, and clinical depression in the absence of this love or belonging element. This need for belonging may overcome the physiological and security needs, depending on the strength of the peer pressure. Esteem All humans have a need to feel respected; this includes the need to have self-esteem and selfrespect. Esteem presents the typical human desire to be accepted and valued by others. People often engage in a profession or hobby to gain recognition. These activities give the person a sense of contribution or value. Low self-esteem or an inferiority complex may result from imbalances during this level in the hierarchy. People with low self-esteem often need respect from others; they may feel the need to seek fame or glory. However, fame or glory will not help the person to build their self-esteem until they accept who they are internally. Psychological imbalances such as depression can hinder the person from obtaining a higher level of self-esteem or self-respect. QIS College of Engineering and Technology, Ongole Page 6
Management Theory & Organizational Behavior Self-actualization "What a man can be, he must be." This quotation forms the basis of the perceived need for selfactualization. This level of need refers to what a person's full potential is and the realization of that potential. Maslow describes this level as the desire to accomplish everything that one can, to become the most that one can be. Individuals may perceive or focus on this need very specifically. For example, one individual may have the strong desire to become an ideal parent. In another, the desire may be expressed athletically. For others, it may be expressed in paintings, pictures, or inventions. As previously mentioned, Maslow believed that to understand this level of need, the person must not only achieve the previous needs, but master them. Herzberg's Two Factor Theory: The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. It was developed by Frederick Herzberg, a psychologist, who theorized that job satisfaction and job dissatisfaction act independently of each other. Two-factor theory fundamentals: Attitudes and their connection with industrial mental health are related to Maslow's theory of motivation. His findings have had a considerable theoretical, as well as a practical, influence on attitudes toward administration. According to Herzberg, individuals are not content with the satisfaction of lower-order needs at work, for example, those associated with minimum salary levels or safe and pleasant working conditions. Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. So far, this appears to parallel Maslow's theory of a need hierarchy. However, Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction at work, while another and separate set of job characteristics leads to dissatisfaction at work. Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena. This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to decrease in un pleasurable dissatisfaction. QIS College of Engineering and Technology, Ongole Page 7
Management Theory & Organizational Behavior The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews with a large number of engineers and accountants in the Pittsburgh area. From analyzing these interviews, he found that job characteristics related to what an individual does — that is, to the nature of the work one performs — apparently have the capacity to gratify such needs as achievement, competency, status, personal worth, and self-realization, thus making him happy and satisfied. However, the absence of such gratifying job characteristics does not appear to lead to unhappiness and dissatisfaction. Instead, dissatisfaction results from unfavorable assessments of such job-related factors as company policies, supervision, technical problems, salary, interpersonal relations on the job, and working conditions. Thus, if management wishes to increase satisfaction on the job, it should be concerned with the nature of the work itself — the opportunities it presents for gaining status, assuming responsibility, and for achieving self-realization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on the job environment — policies, procedures, supervision, and working conditions. If management is equally concerned with both, (as is usually the case), then managers must give attention to both sets of job factors. The theory was based around interviews with 203 American accountants and engineers in Pittsburgh, chosen because of their professions' growing importance in the business world. The subjects were asked to relate times when they felt exceptionally good or bad about their present job or any previous job, and to provide reasons, and a description of the sequence of events giving rise to that positive or negative feeling. Here is the description of this interview analysis: Briefly, we asked our respondents to describe periods in their lives when they were exceedingly happy and unhappy with their jobs. Each respondent gave as many "sequences of events" as he could that met certain criteria—including a marked change in feeling, a beginning and an end, and contained some substantive description other than feelings and interpretations... The proposed hypothesis appears verified. The factors on the right that led to satisfaction (achievement, intrinsic interest in the work, responsibility, and advancement) are mostly unipolar; that is, they contribute very little to job dissatisfaction. Conversely, the dis-satisfiers (company policy and administrative practices, supervision, interpersonal relationships, working conditions, and salary) contribute very little to job satisfaction. QIS College of Engineering and Technology, Ongole Page 8
Management Theory & Organizational Behavior Two-factor theory distinguishes between: 1. Motivators (e.g. challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth, and Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions) that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary. Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed to motivate an employee to higher performance. Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related action because you have to then that is classed as "movement", but if you perform a work related action because you want to then that is classed as "motivation". Alderfer ERG Theory To bring Maslow‘s need hierarchy theory of motivation in synchronization with empirical research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. Here categorized Maslow‘s hierarchy of needs into three simpler and broader classes of needs: Existence needs- These include need for basic material necessities. In short, it includes an individual‘s physiological and physical safety needs. Relatedness needs- These include the aspiration individual‘s have for maintaining significant interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition. Maslow‘s social needs and external component of esteem needs fall under this class of need. Growth needs- These include need for self-development and personal growth and advancement. Maslow‘s self-actualization needs and intrinsic component of esteem needs fall under this category of need. QIS College of Engineering and Technology, Ongole Page 9
Management Theory & Organizational Behavior Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory ERG Theory states that at a given point of time, more than one need may be operational. ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is an increase in desire for satisfying a lower-level need. According to Maslow, an individual remains at a particular need level until that need is satisfied. While according to ERG theory, if a higher- level need aggravates, an individual may revert to increase the satisfaction of a lower- level need. This is called frustrationregression aspect of ERG theory. For instance- when growth need aggravates, then an individual might be motivated to accomplish the relatedness need and if there are issues in accomplishing relatedness needs, then he might be motivated by the existence needs. Thus, frustration/aggravation can result in regression to a lower-level need. While Maslow‘s need hierarchy theory is rigid as it assumes that the needs follow a specific and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed to the higher-level need; ERG Theory of motivation is very flexible as he perceived the needs as a range/variety rather than perceiving them as a hierarchy. According to Alderfer, an individual can work on growth needs even if his existence or relatedness needs QIS College of Engineering and Technology, Ongole Page 10
Management Theory & Organizational Behavior remain unsatisfied. Thus, he gives explanation to the issue of ―starving artist‖ who can struggle for growth even if he is hungry. Implications of the ERG Theory Managers must understand that an employee has various needs that must be satisfied at the same time. According to the ERG theory, if the manager concentrates solely on one need at a time, this will not effectively motivate the employee. Also, the frustration- regression aspect of ERG Theory has an added effect on workplace motivation. For instance- if an employee is not provided with growth and advancement opportunities in an organization, he might revert to the relatedness need such as socializing needs and to meet those socializing needs, if the environment or circumstances do not permit, he might revert to the need for money to fulfill those socializing needs. The sooner the manager realizes and discovers this, the more immediate steps they will take to fulfill those needs which are frustrated until such time that the employee can again pursue growth. Douglas McGregor Theory X a n d T h e o r y Y Douglas McGregor (1906 - 1964) is one of the forefathers of management theory and one of the top business thinkers of all time. He was a social psychologist who became the President of Antioch College. He later became a professor of management at Massachusetts Institute of Technology. His book The Human Side of Enterprise (1960) had a profound influence on the management field, largely due to his Theory X and Theory Y. McGregor developed a philosophical view of humankind with his Theory X and Theory Y in 1960. His work is based upon Maslow's Hierarchy of Needs, in that he grouped the hierarchy into lower-order needs (Theory X) and higher-order needs (Theory Y). He suggested that management could use either set of needs to motivate employees, but better results would be gained by the use of Theory Y, rather than Theory X. These two opposing perceptions theorized how people view human behavior at work and organizational life: QIS College of Engineering and Technology, Ongole Page 11
Management Theory & Organizational Behavior Theory X With Theory X assumptions, management's role is to coerce and control employees. People have an inherent dislike for work and will avoid it whenever possible. People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives. People prefer to be directed, do not want responsibility, and have little or no ambition. People seek security above all else. Theory Y With Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards common goals. Work is as natural as play and rest. People will exercise self-direction if they are committed to the objectives (they are NOT lazy). Commitment to objectives is a function of the rewards associated with their achievement. People learn to accept and seek responsibility. Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem. People have potential. Comparing Theory X and Theory Y 1. Motivation: Theory X assumes that people dislike work; they want to avoid it and do not want to take responsibility. Theory Y assumes that people are self-motivated, and thrive on responsibility. 2. Management Style and Control: In a Theory X organization, management is authoritarian, and centralized control is retained, whilst in Theory Y, the management style is participative: Management involves employees in decision making, but retains power to implement decisions. QIS College of Engineering and Technology, Ongole Page 12
Management Theory & Organizational Behavior 3. Work Organization: Theory X employees tends to have specialized and often repetitive work. In Theory Y, the work tends to be organized around wider areas of skill or knowledge; Employees are also encouraged to develop expertise and make suggestions and improvements. 4. Rewards and Appraisals: Theory X organizations work on a ‗carrot and stick‘ basis and performance appraisal is part of the overall mechanisms of control and remuneration. In Theory Y organizations, appraisal is also regular and important, but is usually a separate mechanism from organizational controls. Theory Y organizations also give employees frequent opportunities for promotion. 5. Application: Although Theory X management style is widely accepted as inferior to others, it has its place in large scale production operation and unskilled production-line work. Many of the principles of Theory Y are widely adopted by types of organization that value and encourage participation. Theory Y-style management is suited to knowledge work and professional services. Professional service organizations naturally evolve Theory Y-type practices by the nature of their work; even highly structure knowledge work, such as call center operations, can benefits from Theory Y principles to encourage knowledge sharing and continuous improvement. Leadership Introductiion: Leadership has been described as "a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task", although there are alternative definitions of leadership. For example, some understand a leader simply as somebody whom people follow, or as somebody who guides or directs others, while others define leadership as "organizing a group of people to achieve a common goal. Definition: The Collins English dictionary defines leadership as ―the leader(s) of a party or group.‖ Yet true leadership is much more than that. A leader can be the CEO of an organization, or a first year employee who leads his or her team to success behind the scenes. A leader might lead through official authority and power, yet just as often great leaders lead through inspiration, persuasion and personal connections. QIS College of Engineering and Technology, Ongole Page 13
Management Theory & Organizational Behavior ―Leadership is the art of leading others to deliberately create a result that wouldn‘t have happened otherwise.‖ Leadership Characteristics 2. Proactive vs. Reactive: The exceptional leader is always thinking three steps ahead. Working to master his/her own environment with the goal of avoiding problems before they arise. 3. Flexible/Adaptable: How do you handle yourself in unexpected or uncomfortable situations? An effective leader will adapt to new surroundings and situations, doing his/her best to adjust. 4. A Good Communicator: As a leader, one must listen...a lot! You must be willing to work to understand the needs and desires of others. A good leader asks many questions, considers all options, and leads in the right direction. 5. Respectful: Treating others with respect will ultimately earn respect. 6. Quiet Confidence: Be sure of yourself with humble intentions. 7. Enthusiastic: Excitement is contagious. When a leader is motivated and excited about the cause people will be more inclined to follow. 8. Open-Minded: Work to consider all options when making decisions. A strong leader will evaluate the input from all interested parties and work for the betterment of the whole. 9. Resourceful: Utilize the resources available to you. If you don't know the answer to something find out by asking questions. A leader must create access to information. 10. Rewarding: An exceptional leader will recognize the efforts of others and reinforce those actions. We all enjoy being recognized for our actions! 11. Well Educated: Knowledge is power. Work to be well educated on community policies, procedures, organizational norms, etc. Further, your knowledge of issues and information will only increase your success in leading others. 12. Open to Change: A leader will take into account all points of view and will be willing to change a policy, program, cultural tradition that is out-dated, or no longer beneficial to the group as a whole. QIS College of Engineering and Technology, Ongole Page 14
Management Theory & Organizational Behavior 13. Interested in Feedback: How do people feel about your leadership skill set? How can you improve? These are important questions that a leader needs to constantly ask the chapter. View feedback as a gift to improve. 14. Evaluative: Evaluation of events and programs is essential for an organization/group to improve and progress. An exceptional leader will constantly evaluate and change programs and policies that are not working. 15. Organized: Are you prepared for meetings, presentations, events and confident that people around you are prepared and organized as well? 16. Consistent: Confidence and respect cannot be attained without your leadership being consistent. People must have confidence that their opinions and thoughts will be heard and taken into consideration. Delegator: An exceptional leader realizes that he/she cannot accomplish everything on his own. A leader will know the talents and interests of people around him/her, thus delegating tasks accordingly. 18. Initiative: A leader should work to be the motivator, an initiator. He/she must be a key element in the planning and implementing of new ideas, programs, policies, events, etc. 17. Needs and importance of leader ship 1. Guiding people: The first and foremost job of leader is to guide and direct the group. he act as a friend, philosopher to his followers and takes the lead in all activities 2. Developing team work: A leader act as the captain of his team in order to win the confidence and cooperation of his followers .he convince people about the goals and policies of the group .A leader secures cooperation and coordination by setting good example through one conduct. 3. Maintaining Discipline: Discipline is the force that prompts individuals to observe rules and regulations and procedures which are necessary for the attainment of objectives. A leader depends more on consistency of behavior and impartial treatment to discipline 4. Building morale; in order to develop high morale among people the leader governs his own action he strives to build unflinching loyalty and devotion to the group good leadership is a strong motivating force an organization. 5. Representing the group: a leader is the true representative of his followers both to those working for the group as well as outside world. According to Rensis likert, leaders act as linking pins between the work group and forces outside it. 6. Leadership vs Management 7. Quite often leading managing considered as synonymous terms really speaking there act several different between leadership and management QIS College of Engineering and Technology, Ongole Page 15
Management Theory & Organizational Behavior 8. Relationship: management implies superior –subordinate relationship. this relationship arises within organizational context .on the other hand leadership can occur anywhere within .for example a mob can be have a leader but not a manager. Informal groups haves leaders but not managers they may be leader peers associate and even seniors 9. Source of influence: a manager is appointed and he obtains authority from his position. he makes a formal authority to influence the bheavior of his subordinate .a leader makes use of this power to influence the attitudes and behavior of his followers. 10. Sanction: A manager has command over the allocation and distribution of rewards (position sanction), example promotion and punishment (negative sanction) example demotion. while management is concerned more with the goals of the organizational leadership is concerned with the goals of the following 11. Basis of following: both manager and leader have followers but the people follow them in different reasons. people follow a manager because they required to follow by there job description supported by a system of rewards and penalties. A manager can continue in office so long as his performance is considered satisfactory whereas a leader can survive as long as followers accept him 12. Accountability: a manager is accountable for his own behavior as well as for the job behavior of his subordinates .a manager seeks to achieve organizational goals but a leader is more concerned with a group goals and members satisfaction. 13. Functions: a manager performed all the functions of planning ,organizing ,staffing, directing ,and controlling .all management needs leadership but leader ship may be exist without management. management formulates action for achieving the objectives Different between leadership and management Basic of Difference Leadership Management Leadership means "the ability of an individual to influence, motivate, and enable others to contribute toward the entities for the purpose of coordinating and harmonizing that group towards organizations of which they are members." accomplishing a goal. Are often called brilliant and mercurial, Tend to be rational, under control problem with great charisma. Yet, they are also often Personality Styles controlling a group of one or more people or effectiveness and success of the Definition Management comprises directing and solvers. They often focus on goals, QIS College of Engineering and Technology, Ongole Page 16
Management Theory & Organizational Behavior seen as loners and private people. They are structures, personnel, and availability of comfortable taking risks, sometimes resources. Managers‘ personalities lean seemingly wild and crazy risks. Almost all toward persistence, strong will, analysis, and leaders have high levels of imagination intelligence. Focus Leading people Managing work Outcomes Achievements Results Simply look at problems and devise new, Create strategies, policies, and methods to creative solutions. Using their charisma and create teams and ideas that combine to commitment, they excite, motivate, and operate smoothly. They empower people by focus others to solve problems and excel. soliciting their views, values, and principles. Approach to tasks They believe that this combination reduces inherent risk and generates success Approach to risk Risk-taking Risk-averse Role in decision-making Facilitative Involved Transformational, Consultative & Dictatorial, Authoritative, Transactional, Participative Autocratic, Consultative and Democratic Power through Charisma & Influence Formal authority & Position Organization Leaders have followers Manager have subordinates Appeal to Heart Head Styles QIS College of Engineering and Technology, Ongole Page 17
Management Theory & Organizational Behavior Leadership styles The behaviour pattern exhibited by a leader while influencing the followers is known as leadership style on the basis of how leaders use their power, leadership style can be classified into three broad categories-autocratic , democratic and free-rein 1.Autocratic (or)authoritarian leadership: An autocratic leader exercises complete control over the subordinates he centralizes power and himself and takes all decision without consulting the subordinates he uses rewards and hold threat of penalties to direct the subordinates he does not delegate authority. Advantages 1. Autocratic leadership style permits quick decision –making 2. It provides strong motivation and satisfaction to the leader who direct terms 3. Less competent subordinates are needed are at lower level 4. This style is may yield positive results when grate speed in required Disadvantages 1. 2. 3. 4. Autocratic style leads to frustration low morale and conflict among subordinates Subordinates tend to shirk responsibility and initiative. Full potential of subordinates get no opportunity for development Organizational of subordinates is threatened in the absence of the leader because get no opportunity for development 5. Autocratic leadership style may be appropriate when subordinate are uneducated unskilled and submissive .this style may also be desirable when the company end ores fear punishment as accepted decision disciplinary technique. 2. Democratic (or) participative leadership: A consultative leader or democratic leader takes decision in consultation and participation with the subordinates .he keeps the follow informed about matter affecting them .a democratic provides freedom of thinking and expression he listens to the suggestions grievances and opinions of the subordinates 3. Free –rein (or) laissez leadership: Free –rein leadership involves complete delegation of authority. He sees only as a contact to bring the information and resources needed by the subordinates Disadvantages 1) Subordinates do not get the guidance and support of the leader 2) It ignores the leader contribution just as autocratic style ignore the contribution of the subordinates QIS College of Engineering and Technology, Ongole Page 18
Management Theory & Organizational Behavior 3) Subordinates may move in different directions and may work at cross purposes which may degenerate into chaos 4) Free-rein style may move in different when the subordinates are well-trained highly knowledge self motivation and ready to assume responsibility 4. Bureaucratic Leadership: Bureaucratic leaders follow rules rigorously, and ensure that their people follow procedures precisely. This leadership style is appropriate for work involving serious safety risks (such as working with machinery, with toxic substances, or at dangerous heights), or with large sums of money. Bureaucratic leadership is also useful for managing employees who perform routine tasks. 5. Charismatic Leadership: A charismatic leadership style resembles transformational leadership: both types of leaders inspire and motivate their team members. The difference lies in their intent. Transformational leaders want to transform their teams and organizations, while leaders who rely on charisma often focus on themselves and their own ambitions, and they may not want to change anything. Charismatic leaders might believe that they can do no wrong, even when others warn them about the path that they're on. This feeling of invincibility can severely damage a team or an organization, as was shown in the 2008 financial crisis. 6. Servant Leadership: A "servant leader" is someone, regardless of level, who leads simply by meeting the needs of the team. The term sometimes describes a person without formal recognition as a leader. These people often lead by example. They have high integrity and lead with generosity . Their approach can create a positive corporate culture, and it can lead to high morale among team members. 7. Transactional Leadership: This leadership style starts with the idea that team members agree to obey their leader when they accept a job. The "transaction" usually involves the organization paying team members in return for their effort and compliance on a short-term task. The leader has a right to "punish" team members if their work doesn't meet an appropriate standard. 8.Consultative: Manager under this system set goals and issue order after discussing them with the subordinates .that takes major decisions .there is two way communication in this organization managers trust subordinates to carry out their tasks .greater emphasis is placed on rewards then on penalties to motivate the subordinates QIS College of Engineering and Technology, Ongole Page 19
Management Theory & Organizational Behavior Advantages 1) Consultative leadership improves the jobs satisfaction and moral of subordinates 2) It cultivates the decision making ability of subordinates 3) Leader multiplies his abilities through the contribution of his followers. 4) It developed positive attitude and red use resistance to change 5) The quality of decision is improved 6) Labour absenteeism and labor turnover are reduced Disadvantages Democratically style is time consuming and may be result in delays the decision making It may not yield positive result when subordinate prefer minimum interaction with the leader Over the period of time subordinate may developed the habit of expecting to be consulted on every issue they may feel frustrated when they are not consulted It may be used as a means of passing the buck to others and of abdicating responsibility It requires considerable communication and persuasive skill on the part of the leader Leadership in Cross Cultural Environment Introduction: Cross-cultural psychology attempts to understand how individuals of different cultures interact with each other. Along these lines, cross-cultural leadership has developed as a way to understand leaders who work in the newly globalized market. Today‘s international organizations require leaders who can adjust to different environments quickly and work with partners and employees of other cultures. It cannot be assumed that a manager who is successful in one country will be successful in another. Organizational leadership and culture: In the leadership literature, there is a lack of consensus over how to define and refer to crosscultural leadership. In the GLOBE study, researchers don‘t specifically define cross-cultural leadership; rather they outline it in two components; organizational leadership and culture. The authors describe organizational leadership as ―the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members‖. The authors note that there is no universal definition for culture, but GLOBE‘s definition includes ―shared motives, values, beliefs, identities, and interpretations or QIS College of Engineering and Technology, Ongole Page 20
Management Theory & Organizational Behavior meanings of significant events that result from common experiences of members of collectives and are transmitted across age generations‖ International executive: Another term for a cross-cultural leader, as used by Spreitzer, McCall Jr., and Mahoney, is international executive. They define an international executive as ―an executive who is in a job with some international scope, whether in an expatriate assignment or in a job dealing with international issues more generally‖ Implicit Leadership Theory: The Implicit Leadership Theory (ILT) asserts that people‘s underlying assumptions, stereotypes, beliefs and schemas influence the extent to which they view someone as a good leader. Since people across cultures tend to hold different implicit beliefs, schemas and stereotypes, it would seem only natural that their underlying beliefs in what makes a good leader differ across cultures Hofstede’s Cultural Dimensions: One of the most prominent and influential studies to date regarding leadership in a globalized world is the Hofstede dimensions of culture. The study reveals similarities as well as differences across cultures and emphasizes the need to be openminded to understand the differences in other cultures. Hofstede utilize five dimensions of culture to compare cultures to give leaders an understanding of how to adjust their leadership styles accordingly. These dimensions include Individualism/Collectivism, Feminine/Masculine, Power Distance, Uncertainty Avoidance, and Long Term/ Short Term orientation. Global Leadership: Osland, Bird, Mendenhall, and Osland, define global leadership as ―a process of influencing the thoughts, attitudes, and behaviors of a global community to work together synergistically toward a common vision and common goals‖. These authors conducted another study which found six core dimensions of competencies of a global leader: cross-cultural relationship skills, traits and values, cognitive orientation, global business expertise, global organizing expertise and visioning. Leadership Styles across Cultures: Leadership is a universal phenomenon. That is, wherever there are people, there are leaders. The question here is not whether leadership exists across cultures, but do various leadership styles (paternalistic leadership, transformational leadership, transactional leadership) translate across cultures? Paternalistic Leadership: Paternalistic leadership ―combines strong discipline and authority with fatherly benevolence and moral integrity couched in a ‗personalistic‘ atmosphere‖. Paternalistic leadership is composed of three main elements: authoritarianism, benevolence, and moral leadership (Farh & Cheng). At its roots, paternalistic leadership refers to a hierarchical relationship in which the leader takes personal interest in the workers‘ professional and personal lives in a manner resembling a parent, and expects loyalty and respect in return. Transformational & Transactional Leadership: In addition to paternalistic leadership, other wellknown leadership styles include transformational leadership and transactional leadership. Transformational leadership is loosely defined as a charismatic leadership style that rallies subordinates around a common goal with enthusiasm and support. Transactional leadership is QIS College of Engineering and Technology, Ongole Page 21
Management Theory & Organizational Behavior characterized by a give and take relationship using rewards as an incentive. These concepts were introduced by Bass and have been updated and studied throughout the years, claiming the transferability of these types of leadership styles across cultures. In fact, Bass and Avolio went as far as to give an optimal leadership profile for leaders around the world. Successful cross-cultural Leadership Actively build cross-cultural relationships themselves: They start themselves engaging with people from the other culture and build relationships. They use this as an example to their teams and they convince others to follow the example: ‗if I can, so can you‘. Get outside their comfort zones: They show an active will to learn from the other culture and to change their thinking and behavior. They show openness and vulnerability. They create an environment of learning from each other. Embrace diversity and explore its potential: They see cross-cultural differences as potential for enrichment and improvement, not as issues. They create an atmosphere in which differences and frictions are ok. They focus on possibilities to reconcile the differences, not on eliminating them. Act ourselves towards relatedness: They take time to discuss cross-cultural differences indepth with each other. They stimulate open dialogue. But they also set out clear actions. They understand it is vital to build mutual awareness and understanding through dialogue, but that the acting together in small steps towards common goals eventually creates the real trust. Persistence: They realize that mutual trust is not built overnight and that in the rush of our daily business people sometimes fall back into old thinking and behavior, which will revive old prejudices about each other. They create specific moments to monitor and evaluate together the progress, the positive things and the areas for improvement. They consider creating mutual trust to be a specific objective for themselves and their teams. Women and Corporate Leadership Introduction India is a country of great leaders, both men and women. The women leaders in India are diverse in terms of their personality, and their contribution to education, politics, women empowerment and social welfare is neither limited nor forgettable. The names of few such women leaders whose intelligence, efforts and deeds have made India proud are Pandita Ramabai (1858 -1922), Swarnakumari devi (1856-1932), Sarala Debi Chaudhurani (1872 – 1946), Kamaladevi Chattopadhyay (1903-1990), Aruna Asaf Ali (1906-1995). These are the forgotten women QIS College of Engineering and Technology, Ongole Page 22
Management Theory & Organizational Behavior leaders of India, but there are certain names which we have not forgotten yet and some of them are Queen Elizabeth, Indira Gandhi, Margaret Thatcher, Benazir Bhutto and recent Pratibha Tai Patil. Today women are not just restricted to household work and cooking for her family. Today, it‘s all about empowerment of women. A woman is the flag bearer of a society. It is she who gives birth to the future of the world. She is responsible for rearing her children and giving them an opportunity to grow up in a healthy and positive environment. Women are doing leadership role throughout their lives. When it comes to leadership does gender matters? Twenty-five years after women first started driving into the labor force and trying to be more like men in every way, from wearing power suits to picking up golf clubs. When women, who have traditionally been denied a voice in decision-making, come to power, they transform the development agenda toward the human component - focusing on health, nutrition, education, water, sanitation and better family income. They tackle long-ignored problems such as domestic violence, alcoholism and corruption. According to a survey done by Economic times, there are only16 women on the board of directors of the 30 sensex companies, or only 4.8% of the 335 people who hold directorship positions. In the Bombay Stock Exchange (BSE) 100 companies, which throws up 923 directors, only 50 (or 5.4%) are women, while companies in the BSE 500 index have only 192 women (or 5.3%) out of 3650 persons holding directorship positions. According to Poonam Barua, founder chairperson of the Forum for women in Leadership, India‘s 500 million strong female populations does not find representation in even 10% of the managerial posts across companies. Facts about the women employees at Leadership role Companies in the Asia Pacific Region are clueless about giving their women employees more leadership roles, a new Mercer survey on Women‘s Leadership Development shows, about 15% of the respondents were from Indian organizations. Clearly, it‘s not enough to have the wherewithal; companies must adopt a philosophy encouraging talented women to lead from front. QIS College of Engineering and Technology, Ongole Page 23
Management Theory & Organizational Behavior Companies don‘t have a strategy for developing women in leadership roles. Do not offer activities targeted to the needs of women leaders. Less concentration on planning to add programmes and activities for women‘s Retaining women in leadership role. No identification and work-life programmes to attract female talent. No encouragement to help women develop the full range of skills for senior leadership roles. Following Are the Key Strengths of Indian Women As Leaders Ability to network with colleagues Ability to perceive and understand situations Strong sense of dedication, loyalty and commitment to their organizations Ability to multitask Collaborative work style—solicit input from others, with respect for ideas Crisis management skills Willingness to share information (interactive leadership style) Sensitivity in relationships (e.g., compassionate, empathetic, understanding) Behaving in a gender-neutral manner Women and Corporate Leadership Roles Women's Contribution to the Economy: Although most women in India work and contribute to the economy in one form or another, much of their work is not documented or accounted for in official statistics. Women cultivate fields and harvest crops while working on farms, women weave and make handicrafts while working in household industries, women sell food and gather wood while working in the informal sector. Additionally, women are traditionally responsible for the daily household chores (e.g., cooking, fetching water, and looking after children). Since Indian culture hinders women's access to jobs in stores, factories and the public sector, the informal sector is particularly QIS College of Engineering and Technology, Ongole Page 24
Management Theory & Organizational Behavior important for women. There are estimates that over 90 percent of workingwomen are involved in the informal sector. Women have now not only found their place in work places but are alsoparty to governance. In recent years there have been explicit moves to increase women's corporate and political participation. Women have been given representation in the Panchayati Raj system as a sign of political empowerment. There are many elected women representatives at the village council level. At the central and state levels too women are progressively making a difference. Today we have women Chief Ministers in five large states of India. The Women's reservation policy bill is slated to further strengthen political participation. Status of women in leadership positions globally: While there is a considerable amount of information available on women in political leadership positions, much less is known about the representation of women as decision-makers in other public and private sector institutions. This online discussion sought to gain an overview of women in leadership positions in different domains and countries; understand the factors that hinder and facilitate the role of women in leadership at the national and regional levels; share good practices and strategies for promoting women in leadership; and discuss what is being done at the country level to measure women‘s impact in leadership positions. Representation of women in trade unions: Trade unions wield considerable power as they determine the terms of labour conditions with employers. With women increasingly participating in the formal labour force, incorporation of women‘s perspectives in trade unions is important to ensure that their interests are represented 17in labour markets. Participants‘ responses indicated that for the most part, women are invisible as leaders in trade unions. Abiodun Baiyewu from Nigeria noted that while progress has been made in women‘s representation in several areas of public life, ―in particular, their participation in trade unions still leaves much to be desired. Representation of women in academia: Participants‘ responses indicated that women were making inroads as faculty members and within the administration in academia, in countries in Africa, Asia and Latin America. Their numbers are lower, however, in the higher ranking decision-making roles such as chancellors, presidents, deans, and heads of departments at colleges and universities. For example, Kizitos QIS College of Engineering and Technology, Ongole Page 25
Management Theory & Organizational Behavior Okisai from Kenya stated, ―It is incredible that Kenya is one of the few countries in Africa with a female Vice Chancellor in one of its public universities.‖ Representation of women in the media: Several participants mentioned the importance of the media in counteracting gender stereotypes and creating more positive female role models. Even though the numbers of women in the industry are increasing, participants‘ comments from several countries indicated the difficulties women have in breaking into the top-tier positions in media outlets. Dr. Mercia from India noted, ―Media is seeing a lot of women leaders in India. Among the [most] highly paid CEOs of India are two women media CEOs. There are women directors and CEOs in the media sector in India. Some of the [most] powerful women of India are in the media sector.‖ Representation of women in the public sector: Dianne Lockwood from Australia noted that, as a result of government policy, women make up 35 per cent of senior executive positions in the public service and hold 34.3 per cent of all seats on government-controlled boards and bodies. Representation of women in the judiciary: Representation of women in the judiciary is critical for promoting greater equality, improving the status of women and ensuring a more gender-sensitive administration of justice. The forum did not receive specific data on the numbers of women in the judiciary but anecdotal responses indicated that the number of women judges may have increased over the years. In a positive example, Mallica Vajrathon from Thailand observed that the country is making ‗good use‘ of more than 30 per cent of women as judges to further gender-specific interests. She noted ―There is no doubt in my mind of the effectiveness of these female judges in bringing justice to children, women and men in the community.‖ The positive results may be due to the fact that there is a critical mass of women judges who can effect change within the legal system. Representation of women in the private sector: Across the world, very few women lead large companies or corporations, including multinational and transnational corporations and banks. In the United States, research shows that ―despite years of progress by women in the workforce (they now occupy more than 40 per cent of all managerial positions in the United QIS College of Engineering and Technology, Ongole Page 26
Management Theory & Organizational Behavior States), within the [group of chief executives] they remain as rare as hens‘ teeth. Consider the most highly paid executives of Fortune 500 companies—those with titles such as chairman, president, chief executive officer and chief operating officer. Of this group, only 6 per cent are women. Most notably, only two per cent of the CEOs are women, and only 15 per cent of the seats on the boards of directors are held by women. The situation is not much different in other industrialized countries. In the 50 largest publicly traded corporations in each nation of the European Union, women make up, on average, 11 per cent of the top executives and 4 per cent of the CEOs and heads of boards. Just seven companies or one per cent of Fortune magazine‘s Global 500 have female CEOs Cross-cutting constraints and barriers to women’s leadership Participants from various countries, including Cameroon, Guinea, India, Kenya, Nigeria, Pakistan, and Syria, identified a wide range of cross-cutting constraints and barriers to women‘s leadership. Much of the input underscored the fact that issues of women‘s leadership could not be addressed without tackling broader-based systemic social and economic constraints that continue to affect women, particularly in developing countries. Some of the challenges identified were inequalities in education, health and employment; discriminatory practices; the feminization of poverty; as well as the effects of armed conflict, and HIV/AIDS—all of which affect women disproportionately. The constraints participants identified at the level of: a) the country/society; b) the institution; and c) the individual, are presented below. GROUP DYNAMICS Introduction Group dynamics refers to the study of forces operating within a group. It is concerned with interactions and forces between group members in a social situation. In this way man in a social animal so need to interact with one or more groups. In this some groups will participate active way he must inter act with groups or groups. In this groups having their own characters. So individual should join any group for to satisfying his needs and wants. QIS College of Engineering and Technology, Ongole Page 27
Management Theory & Organizational Behavior Meaning: Group dynamic means it is basically two terms group and dynamic. Group is basically a collectivity of two or more persons. Dynamic it is a word from Greek. It means force. Definitions: Group dynamic is defined "The social forces by which people interact face to face in small groups". Before you call it is a group it should satisfy the following conditions. People must interact with one to another. They are psychologically aware of one to another. They should be perceive themselves groups. Two or more people needed to form or constitute a group. Group can produce bad and good things. It should have separate behavior in socity Characteristics of groups: A group is a collection of people. Two or more persons are formed . It improves interaction among the members through communication. Group facilitates members realize their goals. Group peoples are independent and interacting with in the group. Every group is having common goals. It is collective identity. Types of groups: The groups are mainly classified in to two main groups one is formal and second one is informal. Formal groups: Formal group is a combination of two are more people interpedently and interacting for a shared purpose . In this people are continued interaction among the group members. QIS College of Engineering and Technology, Ongole Page 28
Management Theory & Organizational Behavior Characteristics of formal group: Goals roles and responsibilities are clearly defined. It is having clear structure and activities also systematic. They are large in size. They are relatively permanent and provide continues interaction. They regulate behavior by a well defined set of rules and regulations. The focus in functions to be performed rather than internal reaction. Committees, plural executives, work groups etc...are example of a formal groups. Informal groups: Informal groups are formed by the individuals of the group rather than by management. An informal work group is group of two or more employees formed by mutual attraction. They are formed spontaneously for achieving short term goals and mostly to provide social satisfaction. Characteristics of in formal groups: These are formed voluntarily and spontaneously. They required social satisfaction. Goals are not well defined. Structure is not defined clearly and the nature of group is dynamic. Group norms values and beliefs regulated the behavior of group members. Leadership is informal. Communication is also constructed. Rewards are non financial. They are in terms of regulations praises and esteem. Controls the based on group goals. A part from formal and informal groups, a number of other groups are found in organizations. They are as under 1. Primary and secondary groups: A primary group is characterized by intimate face to face association and co operation. The members of such as a group is small and is basic on intimate relationship. QIS College of Engineering and Technology, Ongole Page 29
Management Theory & Organizational Behavior A secondary group is more formal , general and remote. The members of the secondary group may not have any interest in the problems and pleasures of others. 2. Membership and reference groups: It is group which person is really belongs to join in one of group. In this persons are always try to join that group members. A reference group is a collection of persons, which enables an individual to take it as a standard for self evolution and source of development of personal values and attitudes. 3. Command and task groups: A command group is composed of the subordinates who report directly to a common superior. This type of group is determined by organization chart. A task group is composed of the employees who work together to complete a particular task or project
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