General Management In Business I

General Management In Business I

Ass. Prof. Dr. Özgür KÖKALANİstanbul Sabahattin Zaim University

Chapter Objectives

1. Define what leading function is2. Classify leadership theories3. Define what the motivation is4. Classify motivation theories

5-2

Leading It is defined as use of influence to direct and

motivate the employees to accomplish the organizational goals.

This function mainly focuses on people in the organization.

Leadership in Managing PeopleLeadership is linked with behavior. It is a

process that an individual influences other people to do their work toward the attainment of the overall organizational goals.

Leadership needs followers. The role of leader is to direct the followers toward the goals.

The style of leadership and the reaction of followers will be determined by the situations such as the task, positions, relations, external pressures and so on.

The Classification of Leadership Theories

Leadership theories are classified into three groups:Trait Theory of LeadershipBehavioral (Styles) Theories of LeadershipContingency Theories

Trait Theory of LeadershipThe success of leaders is undoubtedly due to

their personal qualities.

Personal traits such as intelligence, appearance, social maturity, human relation attitudes and so on have an impact on successful leadership in the organization.

Behavioral (Styles) Theories of Leadership

These theories see leadership as an aspect of behavior at work rather than as personal characteristics.

Some well-known behavioral theories of leadership are:Authoritarian – Democratic Leadership Style in

a Continuum.Two Dimensional Leadership Style.

Authoratarian – Democratic Leadership Styles in a Continuum

According to this theory, managers have a choice between being either authoratarian or democratic.

The main weakness of this theory is that it puts more importance and stresses on the leader’s behavior than the other key variables of leadership.

Two-Dimensional Leadership StyleTwo important and seperate dimensions in

leadership behavior are Consideration – considerate of employee

feelings, relationship orientations.Initiating structure – behavior concerned with

work processes, formal task formalities.

It is possible for manager to score high in both dimensions that contrast with the leadership styles in the continuum.

High Considerati

on Low Structure

High Considerati

on High Structure

Low Considerati

on Low Structure

Low Considerati

on High Structure

High

Consideration for People

Low

Low Initiating Structure High

Leaders with best

performance and greater

satisfaction are in

this sectiom

Contingency Theories of LeadershipThere is no one best leadership behavior that fits every other

business situation. Fred Fiedler categorizes the two dimension of leadership

behavior asRelationship – oriented behavior ; leaders have positive and

considerable relationship with subordinates.Task –oriented behavior; leaders are concerned much about task

accomplishment.

These two dimension of leadership behavior are studied under three situational variables,Leader – member relation Degree of task’s structure (complexity of tasks) Power and authority of the position

Motivating People in OrganizationsA motive is a need. Motives create an internal tension in humans

that directs spesific behavior resulting in actions to fulfill the needs.

If the behavior is succesful so the person gets rewards that satisfy the needs.

These rewards can be intrinsic (individual’s inner satisfaction received in accomplishment) or extrinsic ( reward given to an individual by another person for successful accomplishment.

Motivation is mainly classified into two types of theories:Content theories of motivationProcess theories of motivation.

Content Theories of MotivationThey attempt to determine what generally

motivates people at work. They are concerned with the study of needs

that motivate peopleThere are two important content theories in

motivation:Maslow’s Hierarchy of Needs’ TheoryHerzberg’s Two Factor Theory of Motivation

Maslow’s Hierarchy of Needs’ TheorySelf

Actualization Needs

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Physiological needs: people’s basic needs such as hunger, sleep…

Safety needs: people need secure physical and emotional enviroment protected from violence and threats

Social needs: people need to make friendship or to be a part of a group.

Esteem needs: People need for power, status and recognition by other people.

Self – actualization needs: They are the higher needs for self-fullfillment, developing one’s full potential, competence.

Herzberg’s Two- Factor Theory of Motivation.In this theory, There are two factor affecting

people’s motivation:Hygiene factors: are equal to Maslow’s lower

level needs such as physiological, safety and social needs. They are very important and should be present in workplace to prevent dissatisfaction, but they do not motivate people.

Motivators: equal to Maslow’s higher levels of needs ( esteem and self –actualization). According to Herzberg, to motivate people at work, managers should give the higher level needs, the motivators.

Process Theory of MotivationThey are concerned with how to direct

behavior at work.They explain how workers choose behavioral

actions to satisfy their needs.There are two important process theories in

motivation:Vroom’s Expectancy Theory of MotivationThe Equity Theory

Vroom’s Expectancy Theory of MotivationMotivation depends on people’s expectation

about their ability to perform tasks that will be followed by a desired outcome.

To be motivated individuals should believe that:Their efforts will lead to high performanceHigh performance will lead to outcomeThe outcome is desired by them ( The value of

outcome for the individual is called as valence)

The process can be formulated as follows:Motivation = Effort x Performance x Valence

Equity Theory of MotivationThis theory focuses on an individual’s perception of how

fairly he is treated relative to other people in similar jobs.An individual will evaluate equity by a ratio of input to

outcome.Inputs are effort, experience, education, ability , etc.

Outcomes are pay, recognition, promotion, status etc.An individual’s outcome to input ratio will be compared

with the other individual’s outcome and input ratios.If the ratios are out of balance then perceived inequity

will create tensions within the individuals. In such situation individuals will be motivated to bring equity into balance