CHAPTER 3 LEADERSHIP THEORIES Learning Outcomes; After studying this chapter, you should be able to: 1. Describe similarities and differences between the University of Michigan and Ohio State University leadership models. 2. Discuss similarities and differences between the University of Michigan and the leadership Grid 3. Discuss similarities and differences among the three process motivation theories. 4. Explain the four types of reinforcement. 5. State the major differences among content, process and reinforcement theories. 30
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CHAPTER 3
LEADERSHIP THEORIES
Learning Outcomes;
After studying this chapter, you should be able to:
1. Describe similarities and differences between the University of Michigan
and Ohio State University leadership models.
2. Discuss similarities and differences between the University of Michigan
and the leadership Grid
3. Discuss similarities and differences among the three process motivation
theories.
4. Explain the four types of reinforcement.
5. State the major differences among content, process and reinforcement
theories.
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3.0 INTRODUCTION
The leadership behavior
Late 1940’s, most of the leadership research had shifted from traits theory paradigm to
the behavioral theory paradigm, which focuses on what the leader says and does.
Unfortunately, no leadership behaviors were found to be consistently associated with
leadership effectiveness. Today research continues to seek better understanding of
behavior, it complexity, and its effects on employee performance.
3.1 LEADERSHIP BEHAVIOUR IS BASED ON TRAITS
Leaders’ behavior is much based on their traits and skills. It is also said that a good
predictor of employee retention is the relationship between manager and employee. The
good relationship between employee and leader is likely to be motivated. Therefore, the
relationship is based on the manager’s leadership personality traits and attitudes, which
directly affect his or her behavior with the employee.
The search for traits or characteristics that differentiate leader from nonleaders,
through done in a more sophisticated manner than our on-the-street survey, dominated
the early research efforts in the study of leadership. However, attempts to identify traits
consistently associated with leadership have been more successful. Six traits on which
leaders are seen to differ from nonleaders include drive, desire to lead, honesty and
integrity, self-confidence, intelligence, and job-relevant knowledge. These traits are
briefly described in Figure 3.1.
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Figure 3.1: Six Traits That Differentiate Leaders from Nonleaders
1 Drive. Leaders exhibit a high effort level. They have a relatively high desire for
achievement, they’re ambitious, they have a lot energy, they’re tirelessly persistent in
their activities, they show initiative.2 Desire to lead. Leaders have a strong desire to influence and lead others. They
demonstrate the willingness to take responsibility.3 Honesty and integrity. Leaders build trusting relationships between themselves and
followers by being truthful or nondeceitful and by showing high consistency between
word and deed.4 Self-confidence. Followers look to leaders for an absence of self-doubt. Leaders,
therefore, need to show self-confidence in order to convince followers of the rightness
of goals and decisions.5 Intelligence. Leaders need to be intelligent enough to gather, synthesize, and
interpret large amount of information and to create visions, solve problems, and make
correct decisions.6 Job-relevent knowledge. Effective leaders have a high degree of knowledge about
the company, industry, and technical matters. In-depth knowledge allows leaders to
make well-informed decisions and to understand the implications of those decisions.
Yet traits alone do not sufficiently explain leadership, which will result in the ignorance
situational factors. Possessing the appropriate traits will make an individual an effective
leader. Results indicated that what is right in one situation is not necessarily right for
another situation. So, even though some interest in traits has reemerged during the past
two decades, a major movement away from traits theories began as early as the 1940s.
3.2 LEADERSHIP STYLES
Leadership styles are the combination of traits, skills, and behaviours leaders use as
they interact with followers. Behaviour is the most important component beside traits and
skills, as it relatively consistent pattern with the characteristics of a leader.
This derived the autocratic and democratic leadership styles by Kurt Lewin in the 1930s,
University of Iowa.
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Autocratic Leadership Style – decisions, tells/instruct employees, and supervise
workers all by leader himself.
Democratic Leadership Style – leader encourages participation in decisions,
work together with employees upon tasks, give freedom to work without muc
supervision.
This lead to an era of behavioural rather than traits research, to be discussed below;
3.2.1 UNIVERSITY OF MICHIGAN AND OHIO STATE UNIVERSITY STUDIES
(Mid - 1940s to Mid – 1950s)
Leadership research was conducted at Ohio State and the University of Michigan at
about the same time during the mid-1940’s to mid 1950s. These studies were not based
on prior autocratic and democratic leadership styles, but rather sought to determine the
behaviour of effective leaders, term as leadership bahaviour.
UNIVERSITY of MiCHIGAN : Job-Centered and Employee-Centered Behavior
The studies was conducted to determine leadership effectiveness. The researchers
identified two styles of leadership behavior, which they called job centered and
employee centered. The U of Michigan model stated that a leader is either more job
centered or more employee-centered. See Figure 3.2 for the University of Michigan
Leadership Model: a one-dimensional continuum between two leadership styles.
Figure 3.2: The University of Michigan Leadership Model: Two Leadership Styles,
One Dimension
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Autocratic Democratic
Job-Centered Leadership Style. The job centered style has scales measuring two job-
oriented behaviors of goal emphasis and work facilitation. Job centered behavior refer to
the extent to which the leader take charge to get the job done. The leader closely directs
subordinates with clear roles and goals, while the manager tells them what to do and
how to do it as they work toward goal achievement.
Employee-Centered Leadership Style. The employee-centered style has scales
measuring two employee-oriented behaviors of supportive leadership and interaction
facilitation. Employee-centered behavior refers to the extent to which the leader focuses
on meeting the human needs of employees while developing relationships. The leader is
sensitive to subordinates and communicates to develop trust, support and respect while
looking out for their welfare.
OHIO STATE UNIVERSITY: Initiating Structure and Consideration Behaviour
The Personnel Research Board of Ohio State University was identifies four leaderships
styles based on two distinct dimensions which eventually called initiating structure and
consideration. The initiating structure behavior (leadership style), is essentially the
same as the job-centered leadership style; it focuses on getting the task done. The
consideration behavior (leadership style), is essentially the same as the employee-
centered leadership style; it focuses on meeting people’s need and developing
relationships.
MJob-Centered
Leadership StyleEmployee-Centered
Leadership Style
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Because a leader can be high or low on initiating structure and/or consideration, four
leadership styles are developed. The Ohio State University Leadership Model identifies
four leadership styles; low structure and high consideration, high structure and high
consideration, low structure and low consideration, and high structure and low
consideration..
Figure 3.3: The Ohio State University Leadership Model: Four leadership styles
and two dimensions.
Leader with high structure and low consideration behavior use one-way
communications, and decision are made by the managers, whereas leaders with high
consideration and low structure use two-way communications and tend to share decision
making.
3.2.2 THE LEADERSHIP GRID THEORY
The Leadership build on the Ohio State and Michigan studies; it is based on the same
two leadership dimensions, which called concern for production and concern for people.
The concern for both people and production is measure through a questionnaire on
scale from 1 to 9. Therefore. The grid has 81 possible combinations of concern for
production and people. However, the Leadership Grid identifies five leadership styles:
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Low structure &
Low structure &Low consideration
High consideration High consideration
High Structure
High Structure &Low consideration
&
High
Consideration
HighLow
Initiating Structure
O
1,1 improverished; 9,1 authority compliance; 1,9 country club; 5,5 middle of the road; 9,9
team leader. See Figure 3.4 for adaptation of Leadership Grid.
Figure 3.4: Leadership Grid by Blake, Mouton and McCanse
Following are descriptions of leadership styles in the Leadership Grid:
The improverished leader (1,1) has low concern for both production and people.
The leader does the minimum requirement to remain employed in the position.
The authority-compliance leader (9,1) has a high concern for production and a
low concern for people. The leader focuses on getting the job done as people are
treated like machines.
The country-club leader (1,9) has a high concern for people and a low concern
for production. The leader strives to maintain a friendly atmosphere without
regard for production.
The middle-of-the leader (5,5) has balanced, medium concern for both people
and production. The leader strives to maintain satisfactory performance and
morale.
The Leadership
GridCountry-ClubHigh concern for people, low concern with production
Team leaderHigh concern for people, High concern with production
5.5Middle of the roadModerate concern for peopleModerate concern with productionImpoverished
Low concern for people, Low concern with production
Authority-complianceLow concern for people, high concern with production
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The team leader (9,9) has a high concern for both people and production. This
leader strives for maximum performance and employee satisfaction and
generally the most appropriate for use in all situations.
3.3 LEADERSHIP AND MAJOR MOTIVATION THEORIES
In this section we will discuss motivation and how it affects leadership. Three
classification of motivation theories describe the need to balance professional and
personal need, which are content, process and reinforcement, and three content
motivation theories: hierarchy of needs, two-factor and acquired needs theory.
According to Fred Luthans & Alexander Stajkovic, the real challenge for leaders is to
manage human resources as effectively as possible in order to attain world-class
performance. Quotation from Beverly Kaye said that “People don’t leave companies,
they leave bad bosses.”
3.3.1 Motivation Process
Motivation process occur when people go from need to motive to behavior to
consequence to satisfaction or dissatisfaction.
Example: In a situation when you are hungry (need) and go to a restaurant (motive) for
food. You buy food (behavior) to fulfilled you hunger (consequence and satisfaction) you
hunger. However, if you failed to get the food, or the food that you desire, you would be
dissatisfied. Satisfaction is usually short-lived, food that satisfied you sooner or later will
fade and you will need another one. For this reason, motivation process has afeedback
loop.
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Need MotiveNeed
BehaviourNeed
ConsequenceceNeed
Satisfaction orDissatisfactionee
d
FeedbackhaviourN
3.5.1 Content Motivation Theories
Before we present the content motivation theories, let’s discuss content motivation
theories in general. Content motivation theories focus on explaining and predicting
behavior based on people needs. However, the prediction of behavior does not include
specific behavior that will be used to satisfy the need; predicting behavior refer to the
person being motivated to behavior to satisfy need. Motivation is also considered an
inner desire to satisfy an unsatisfied need. Have you ever wondered why people do the
things they do? The primary reason people do what they do is to meet their needs or
wants to be satisfied. People want job satisfaction, and they will one organization for
another to meet this need.
3.5.1.1 Hierarchy of Need Theory
Abraham Maslow’s Hierarchy of needs suggests that people are motivated by these
factors.
Physiological: food and water
Safety: physical and economic
Belongingness: friendship, love, social interaction
Esteem: achievement and recognition
Self-actualization: realizing your full potential
As each level of need is substantially satisfied, the next need becomes dominant as
shown in Figure 3.5, the individual needs moves up the hierarchy.
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Figure 3.5: Abraham Maslow Motivation Theory
People are motivated through five level of need; physiological, safety, belongingness,
esteem and self-actualization. The major recommendation to leaders is to meet
employees’ lower-level needs so that they will not dominate the employee’s motivational
process. You should get to know and understand people’s needs and meet them as a
means of increasing performance. Here are some ways in which managers attempt to
meet these five needs.
Physiological Needs: Organization meet these needs through adequate salary, breaks
and working conditions.
Safety Needs: Organization meet these needs through safe working conditions, salary
increases to meet inflation, job security and fringe benefits (medical insurance/sick
pay/pensions) that protect the physiological needs.
Social Needs: Organization meet these needs through the opportunity to interact with
others, to be accepted, to have friends. Activities includes parties, picnics, trips and sport
teams.
Esteem Needs: Organizations meet these needs through titles, the satisfaction of
completing the job itself, merit pay raises, recognition, challenging tasks, participation in
decision making and change for advancement.
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Self-Actualization Needs: Organizations meet these needs by the development of
employees’ skill, the chance to be creative, achievement and promotions, and the ability
to have complete control over their jobs.
3.5.1.2 Two-Factor Theory
Herzberg’s Two-Factor (Motivation-Hygiene) Theory combined lower-level needs into
one classification he called hygiene or maintenance; and higher-level needs into one
classification he called motivators. This theory examines the work-related factors that
are SATISFIERS to employees and those factors that are DISSATISFIERS. This theory
proposes that people are motivated by motivators (intrinsic) factors rather than
maintenance (extrinsic) factors.
Figure 3.6: Two-Factor Motivation Theory
Herzberg argues that both factors are equally important, but that good hygiene will only
lead to average performance, preventing dissatisfaction, but not, by itself, creating a
positive attitude or motivation to work. To motivate the employee management must
enrich the content of the actual work they ask them to do. For example, building into
tasks set a greater level of responsibility, and the opportunity to learn new skills. In
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advocating making work more interesting, and improving the quality of the work
experience for the individual, Herzberg coined the phrase 'Quality of Working Life'.
In 1966, Herzberg interviewed a number of people in different professions at different
levels to find out two things:
• Those factors that MOTIVATED them in the workplace
• These were identified as factors that gave employees an incentive to work
resulting in job satisfaction. They are also referred to as 'motivators'. These
motivators increased the job satisfaction of the employee and further increased
their efficiency.
• Those factors that PREVENTED JOB DISSATISFACTION
The table below lists the common hygiene factors and motivators identified within
organizations.
Herzberg's Two-factor Theory
Hygiene Factors Motivators
Salary,
Job Security,
Working Conditions,
Level and Quality of
Supervision,
Company Policy and
Administration,
Interpersonal Relations
Nature of Work,
Sense of Achievement,
Recognition,
Responsibility,
Personal Growth and
Advancement
These were identified as factors that prevented job dissatisfaction. These did not make
the employees happy (or have job satisfaction): it just removed the unhappiness out of
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working. They are also referred to as 'hygiene' factors. Such hygiene factors, if not
satisfied, had an effect of reduced employee efficiency.
Herzberg believed that all factors fell into one of these categories and therefore had
separate consequences. His research concluded that some factors fell into both
categories although they held a stronger position in one of them. See the diagram below
for examples of the factors that he determined for each category.
By looking at the diagram, it shows that a sense for achievement, recognition of their
effort, the nature of the work itself, and the desire for responsibility are all strong factors
for motivation. At the bottom of the diagram, the way the business is run, how they are
supervised, the work conditions and their pay, are all factors that can lead to job
dissatisfaction if not met to the standards of the employee.
The size (or width) of the bars that represent each factor compensate for the level at
which it is a concern. For example, from the diagram, the way the business is run is a
higher dissatisfaction cause (if it is run badly) then the concern of bad working
conditions. You may look at 'pay' and think that this bar should be a lot wider on the job
dissatisfaction side, but most people would not take the job in the first place if they
considered the pay as 'totally unacceptable'.
Take another example: the employee does not see the lack of personal responsibility as
major job dissatisfaction, but when people do seek responsibility, it is a huge
motivational factor for them: hence the long extension of the bar more on the motivation
side of the diagram.
You will further notice that those factors encouraging motivation (job satisfaction) have
little connection with money and are more associated with personal development and
achievement. Hygiene factors concern more the employees’ personal attitudes towards
the context of their job and involve money in most cases to provide a solution to the
issue.
You may also have noticed that two bars on the diagram (achievement and pay) are
shaped differently. This is to illustrate that, for Achievement, it is something that is only
acquired for a short term and is therefore an ongoing need that is searched for over and
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over again. In other words: one week you may achieve, say, a good personal sales
figure, and the following week your standard drops to a disappointing level in which you
seek to achieve this figure yet again. The Pay factor (salary) also has a similar concern:
you may increase an employee's salary that removes job dissatisfaction at first, but in
time (can be as low as days) the employee will increase their personal spending to what
they are earning and will eventually, again, become dissatisfied. In such a case, it may
be for your benefit that you offer an additional incentive to keep the employee further
satisfied to prevent this on-going cycle from occurring.
3.5.1.3 Acquired Need Theory
McClelland’s Learned Needs Theory suggests that people are motivated by the need for
affiliation, the need for achievement, or the need for power. They have a desire to do
something better or more efficient than before. This is called the need for achievement.
Need for Achievement
Need for Achievement
Personal responsibility
Feedback
Moderate risk
Study has reveled that people are desire to have impact to be influential. Individual with
high level of this desire enjoy being in-charge of something, striving influence for others
and prefer to be competitive and status oriented. This desire is known as desire for
Power.
Need For Power
Influence
Competitive
The third need identified by this theory is the desire for affiliation. Affiliation refers to the
need to have relationship with others. People desires for friendship, cooperation by
others and leading to develop networking as to satisfy the need for affiliation.
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Need for Affiliation
Acceptance and Friendship
Cooperative
(David McClelland, The Achieving Society, 1961)
Acquired needs theory says that all people have the need for achievement, power, and
affiliation, but to varying degrees. Here are some ideas for motivating employees based
on their dominant needs:
Motivating employees with a high need achievement. Give them nonroutine,
challenging tasks with clear, attainable objectives. Give them fast and frequent
feedback on their performance. Continually given them increased responsibility
for doing new things. Keep out of their way.
Motivating employees with a high need power. Let them plan and control their
jobs as much as possible. Try to include them in decision making, especially
when they are affected by the decision. They tend to perform best alone rather
than as team members. Try to assign them to a whole task than just part of a
task.
Motivating employees with high need affiliation. Be sure to let them work as part
of a team. They derive satisfaction from the people they work with rather than
the task itself. Give them lots of praise and recognition. Delegate responsibility
for orienting and training new employees to them. They make great buddies and
mentors.
Figure 3.7: A Comparison of Content Motivation Theories
Hierarchy of needs
(Maslow)
Two-factor theory
(Herzberg)
Acquired need theory
(McClelland)Self-Actualization Motivators Achievement and Power
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Esteem Motivators Achievement and PowerBelongingness Maintenance AffiliationSafety Maintenance Not ClassifiedPhysiological Maintenance Not ClassifiedNeeds must be met in a
hierarchical order
Maintenance factors will not
motivate employees.
Employees must be
motivated differently based
on their acquired needs.
The Need to Balance Professional and Personal Needs
The need to balance professional and personal needs is currently a hot topics, with the
ascent of matrixed organizations working around the clock due to a global marketplace –
and with reengineered, downsizing, rightsizing world that focuses on how to get more
done with fewer people. Successful leaders use socialized power and strive to meet the
needs of people and the organizations to create a win-win situations for all stakeholders.
Two major things organizations are doing to help employees meet their personal needs
are providing on site day care centers – or giving employees information to help them
find good day care – and offering flextime. Some leaders are also telling employees to
go home and “get a life” before is too late.
3.5.2 PROCESS MOTIVATION THEORIES
Process motivation theories focus on understanding how people choose behavior to
fulfill their needs. Process motivation theories go step further, attempting to understand
why people have difference needs, why their needs change, how and why people
choose to try to satisfy needs in different ways, the mental process people go through as
they understand situations, and how they evaluate their need satisfaction.
3.5.2.1 Equity Theory
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Equity theory is primarily J.Stacy Adams’ motivation theory, in which people said to be
motivated to seek social equity in the rewards they receive (output) for their performance
(output). Equity theory proposes that people are motivated when their perceived inputs
equal outputs.
Motivating with Equity Theory.
According to equity theory, when employees believe they are equitably rewarded they
are not actively motivated. However when employees believe they are underrewarded,
they are demotivated. Using equity theory in practice can be difficult because you don’t
always know who the employee’s reference group is, nor their view of input and
outcomes. However, this theory does offer some useful general recommendations:-
1. Managers should be aware that equity is based on perception, which may not be
correct. It is possible for the manager to create equity or unequity . Some
managers have favorite subordinates who get special treatments; other don’t. So
don’t play favorites.
2. Rewarded should be equitable. When employees perceive that they are not
treated fairly, morale and performance problems occur. Employees producing at
the same level should be given equal rewards. Those producing less should get
less.
3. High performance should be rewarded, but employees must understand the
inputs needed to attain certain outputs. When incentive pay is used, there should
be clear standards specifying the exact requirements to achieve the incentive. A
manager should be able to objectively tell others why one person got higher merit
raise than another did.
3.5.2.2 Expectancy Theory
Expectancy theory proposes that people are motivated when they believe they can
accomplish the task, they will get the reward and the rewards for doing so are worth the
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effort. The theory is based on the following assumptions: Both internal (needs) and
external (environment) factors affect behavior; behavior is the individual’s decision;
people have difference needs, desires, and goals; people make behavior decisions
based on their perception of the outcome.
Motivating with Expectancy Theory
One study found that expectancy theory can accurately predict a person’s work effort,
satisfaction level, and performance – but if the correct values are plugged into the
formula. A more recent meta-analysis (a study using the data of 77 other prior studies)
has inconsistent findings with some positive correlations. A more recent study found that
expectancy theory can be used to determine if leaders can be trained to use ethical
considerations in decision making.
Therefore, this theory work in certain contexts but not in others. Expectancy theory also
works best with employees who have an internal locus of control, because if they control
their destiny, their efforts will result in success. The following conditions should be
implemented to make the theory result in motivation:-
1. Clearly define objectives and the performance necessary to achieve them.
2. Tie performance to rewards. High performance should be rewarded. When one
employee works harder to produce more than other employees and is not
rewarded, he or she may slow down productivity.
3. Be sure rewards are of value to the employees. Managers should get to know
employees as individuals. Develop good human relations as a people developer.
4. Make sure your employees believe you will do what you say you will do. For
example, employees must believe you will give them a merit raise if they do word
hard. So that employees will believe you, follow through and show them you do
what you say you’ll do.
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5. Use the Pygmalion effect to increase expectations. Your high expectation can
result in follower self-fulfilling prophecy. As the level of expectation increases, so
will performance.
3.5.2.3 Goal Setting Theory
Goal-setting theory proposes that specific, difficult goals motivate people. Our behavior
has a purpose which is usually to fulfill the needs. Goals give us a sense of purpose as
to why we are working to accomplish a given task.
Writing Objectives. To help you to write effective that meet the criteria you will learn
next, use the model. The parts of the writing objectives model are (1) Infinitive + (2)
action verb + (3) singular, specific, and measurable result to be achieved + (4) target
date.
Criteria for Objectives. For an objective to be effective, it should include the four criteria
listed in step 3 and 4 of the writing objectives model:
Singular result. To avoid confusion, each objective should contain only one end
result.
Specific. The Objective should state the exact level of performance expected.
Measurable. If people are to achieve objectives, they must be able to observe
and measure their progress regularly to monitor progress and to determine if the
objective has been met.
Target date. A specific date should be set for accomplishing the objective. When
people have a deadline, the usually try harder to get the task done on time.
In addition to the four criteria from the model, there are three other criteria that do not
always fit within the model:
Difficult but achievable. A number of studies show that individuals perform better
when assigned difficult objectives rather than (1) easy objectives, (2) objectives
that are too difficult or (3) simply told “ do your best “.
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Participatively set. Term that participate in setting their objectives generally
outperform group s with assigned objectives.
Commitment. For objectives to be met, employees must accept them. If
employees are not committed to striving for the objective, even if you meet the
other criteria, they mat not meet the objective. Use participation helps get
employees to accept objectives.
3.5.2.3.1 Motivating with Goal Setting Theory
Assign specific, challenging goals. One of the simplest, most effective ways to motivate
workers is to give them specific, challenging goals. However, an amazing number of