WEEK 11

CONTEMPORARY/MODERN THEORIES OF MOTIVATION

What is motivation?
Motivation is the word derived from the word 'motive' which means needs, desires, wants or
drives within the individuals. It is the process of stimulating people to actions to accomplish
the goals. In the work goal context the psychological factors stimulating the people's
behaviour can be - desire for money.

Let‘s understand in detail about Contemporary Theories of Motivation.

They are Goal setting theory which includes MBO, Equity theory and Expectancy theory

Goal Setting Theory of Motivation

In 1960‘s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states
that goal setting is essentially linked to task performance. It states that specific and
challenging goals along with appropriate feedback contribute to higher and better task
performance.
In simple words, goals indicate and give direction to an employee about what needs to be
done and how much efforts are required to be put in.

The important features of goal-setting theory are as follows:

 The willingness to work towards attainment of goal is main source of job motivation.
Clear, particular and difficult goals are greater motivating factors than easy, general
and vague goals. Even though it is difficult it needs to be accepted by all of them.
 Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
 Goals should be realistic and challenging. This gives an individual a feeling of pride
and triumph when he attains them, and sets him up for attainment of next goal. The

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 more challenging the goal, the greater is the reward generally and the more is the
passion for achieving it.
 Better and appropriate feedback of results directs the employee behaviour and
contributes to higher performance than absence of feedback. Feedback is a means of
gaining reputation, making clarifications and regulating goal difficulties. It helps
employees to work with more involvement and leads to greater job satisfaction.
 Employees’ participation in goal is not always desirable.
 Participation of setting goal, however, makes goal more acceptable and leads to more
involvement.

Management by Objectives (MBO): The concept of ‗Management by Objectives‘

(MBO) was coined by Peter Drucker in 1954. It is a process where the employees and
the superiors come together to identify some goals which are common to them, the
employees set their own goals to be achieved, the benchmark is taken as the criteria
for measuring their performances and their involvement is there in deciding the course
of action to be followed.

The basic nature of MBO is participative, setting their goals, selecting a course of actions to
achieve goals and then taking decision. The most important aspect of MBO is measuring the
actual performances of the employee with the standards set by them. It is also said to be a
process that integrates organizational objectives into individual objectives.

Entire programme of MBO is divided in four major steps i.e setting up of goal, action plannin
g, comparison and timely review.

Setting up of goal-In goal setting superior and subordinate together set certain goals, i.e the
expected outcome that each employee is supposed to achieve.

In action planning, the manner in which goals could be achieved is determined i.e. identifying
the activities which are necessary to perform; to achieve pre-determined goals or standards.
When the employees start with their activities, they come to know what is to be done, what
has been done, and what remains to be done and it also gives an idea about the resources to
be achieved.
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In the third step, the goals set by the individual employee are compared with the actual goals
achieved. It gives an idea to the evaluator as why there is a variation in desired outcome and
actual outcome. Such a comparison helps create need for training so as to enhance
employees‘ performance. Finally, in the timely review step, corrective actions are taken so
that actual performances do not deviates from standards established in beginning.

The main reason for conducting reviews is not to humiliate the performer but to assist him in
better performances in future. Few advantages of MBO are a) it is outcome –oriented. It co-
ordinates the planning and control functions and provides motivation) Employees are clear
about the task that they are expected to perform and also how they may be evaluated. MBO
do have certain limitations such as it is time consuming, employees and the superiors jointly
setting the goals may lead to conflict as employee would always like to set lower goal and the
superior would like to set it on the higher side, lack of confidence in employee by
management.

If an employee feels they‘re receiving fair payment for their efforts, they are more likely to
stay motivated and find satisfaction in their position. This concept is called the equity theory,
which you can use to help your team stay motivated. In this session, we will discuss the
equity theory of motivation and how you can apply it to your workplace.

What is the equity theory of motivation?

The equity theory of motivation is the idea that what an individual receives for their work has
a direct effect on their motivation. When applied to the workplace, it means an individual will
generally aim to create a balance between what they give to the organization compared to
what they get in return.

Understanding the role of equity theory in professional environments can be helpful when
you want to ensure that your team feels properly motivated and appreciated for their work.
When you offer fair compensation for your team‘s contributions, they may maintain higher
levels of motivation. This can have a positive effect on factors such as teamwork, job
commitment and communication.

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Components of the equity theory of motivation
The equity theory contains two primary components: inputs and outcomes. It is a team
member‘s perception of these two factors that can influence their motivation levels.
Equity theory is all about, employees weigh what they put into a job situation (input) against
what they get from it (outcome).
They compare their input-outcome ratio with the input-outcome ratio of relevant others.

Inputs
An input is a contribution one makes to receive a reward. Different inputs can include time
commitments, daily job responsibilities, loyalty to an organization and enthusiasm for one‘s
work.
An employee will often distinguish between inputs they consider controllable and not
controllable. Examples of controllable inputs include communication and attendance, while
uncontrollable inputs could be job training and seniority.
Outcomes
An outcome, or output, is the compensation that an individual receives as a direct result of the
input they provide.

Outcomes can include hard factors such as:

 Salary and pay raises

 Job security
 Benefits like healthcare or vacation time

There are also less tangible outcomes:

 Praise from co-workers

 Improved reputation
 Pride in one‘s work

The value of the outcome should ideally result from the importance placed on the input. For
example, a college graduate may believe that their degree should return better job
opportunities.

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 Factors that affect equity theory

The theory of equity includes factors known as referents and moderating variables. These
elements can influence an employee‘s perception of what is fair.

Referent groups

Referents are comparisons that an employee can make to form their evaluation about an
outcome they receive. The four primary comparisons are:

 Self-inside: Includes the experience an employee had when they were in a different
position in their current organization
 Self-outside: Encompasses the employee‘s experience in other positions outside of
the company
 Other-inside: Involves a comparison to another employee‘s inputs and outcomes in
the same company
 Other-outside: Consists of a comparison to employees in a similar position outside
of the current company

An employee may use one of these four referents to determine how fairly their employer
treats them. For example, one of your team members may have come from a company that
didn‘t recognize their work. If you consistently praise that individual when they exceed their
goals, they will likely make a self-outside comparison to conclude that they are
currently receiving fairer outcomes for their work.

Moderating variables

Moderating variables such as someone‘s education and experience level can also have a
direct effect on their perception of fairness. For example, those with higher education levels
may have connected with a larger number of people in their field, which could prompt them
to make other-outside comparisons. Employees who have more experience in their field or
company are more likely to make internal comparisons, while others with less experience will
more often rely on personal knowledge.

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 What is Expectancy Theory?
Expectancy Theory of Motivation was developed by Victor H. Vroom in 1964 and extended
by Porter and Lawler in 1968.
The theory is based on the assumption that our behavior is based on making a conscious
choice from a set of possible alternative behaviors. According to Expectancy Theory, the
behavior we choose will always be the one that maximizes our pleasure and minimizes our
pain.
As a manager, this means that one of your team members will only choose the right behavior
(to work hard) if they perceive the outcome of choosing this option is the most desirable for
them. In simple terms, that could mean that they might gain someone or that they might not
lose something.

Within the theory there are three variables at play:

1. Expectancy. Effort -> Performance (E -> P)
2. Instrumentality. Performance -> Outcome (P -> O)
3. Valence. Outcome -> Reward (V(R))

All three factors must be present to motivate employees effectively.

Let‘s examine each variable in turn from the point of view of an employee or team member.

1. Expectancy
Expectancy is the belief that if you work hard (effort) you will be able to hit the targets
(performance) that have been set for you by your manager.
You make this judgment based on a number of factors, including:
 Your past experience.
 Your confidence in your ability.
 How difficult you perceive the target is to achieve, and whether or not the target is
under your control.
An example of expectancy is thinking, ―If I work hard I can achieve the targets my boss has
set for me‖.

2. Instrumentality
Expectancy Theory

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In this variable, you‘re assessing how likely you are to receive a reward if you hit the targets
that have been set for you.
Again, you make this judgment based on a number of factors, including:
 Is the relationship clear between performance and reward (outcome).
 How much you trust the person who decides on the reward.
 How transparent is the decision-making process around who gets what reward?
An example of instrumentality is thinking, ―If I achieve all of the targets set for me then I
believe I will get promoted‖.

3. Valence
So far we have a goal to hit and we understand the reward we‘ll get if we hit it. The final
piece of the motivation puzzle is valence. Valence is simply the perceived value of the reward
to you.
This could be negative if you actively want to avoid the reward, zero if you are unmotivated
by the reward, or one if you‘re motivated by the reward.
When it comes to valency, an employee will have to weigh up the pros and cons, for
example, ―Do I want to be promoted? Will the extra work result in even less time with my
family? Is it really worth putting in a serious effort for a whole year to receive a promotion
and a 10% pay rise?‖

Expectancy Theory Formula

Combining the three variables above gives us the following formula.
Motivation Force (MF) = Expectancy x Instrumentality x Valence

MF simply means Motivation Force, which you can think of as being someone‘s motivation
to do something.
This formula is simply stating what we‘ve already covered. That is, to be motivated you must
think your targets are achievable, you must clearly understand any reward you might receive,
and you must actually value the reward.

HOW DO WORKPLACE MOTIVATION WORKS,

HOW TO DO SELF-MOTIVATION AT WORK,

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 TIPS FOR MOTIVATING TEAM, FEATURES OF A GOOD
MOTIVATION SYSTEM
Motivation

Motivation is the word derived from the word ‘motive‘ which means needs, desires, wants or
drives within the individuals. It is the process of stimulating people to actions to accomplish
the goals. In the work goal context the psychological factors stimulating the people‘s
behaviour can be -

 desire for money

 success
 recognition
 job-satisfaction
 team work, etc

One of the most important functions of management is to create willingness amongst the
employees to perform in the best of their abilities. Therefore the role of a leader is to arouse
interest in performance of employees in their jobs. The process of motivation consists of
three stages:-

1. A felt need or drive

2. A stimulus in which needs have to be aroused
3. When needs are satisfied, the satisfaction or accomplishment of goals.

Therefore, we can say that motivation is a psychological phenomenon which means needs
and wants of the individuals have to be tackled by framing an incentive plan.

Workplace Motivation - Carrot or Stick approach doesn’t work anymore

―I am in this job because I have no other option.‖ If this is what an employee of your
company feels, read on to know how this statement can be changed to something more
positive - ―I love what I do.‖

First things first - whose responsibility is it to ensure that an employee loves his job? While
an employee would say - the employer, the human resource experts have a different point of

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view which sounds fair. It‘s both the employer and the employee who should work together
to make work fun for each other.

It is interesting to know here, that employees do not rank ‘salary‘ as the top factor in
determining whether they like their jobs or not. What is important to them then - the
opportunity to do what is ‘important‘. Almost all the employees would like to feel part of the
big picture and would want to contribute to the organizational goals in some way or the other.
Doing the mundane, routine work will never excite them - what excites them is - work that
challenges them to use their talent. Right Management Consultants conducted a survey
sometime back and found that 83% of about 500 workers surveyed were motivated by
―challenges at work‖. Also, as per an executive editor of the Harvard Business Review, while
salary and promotions could do a great job of demotivating people if handled ineffectively,
they aren‘t so much effective in motivating people.

So then what needs to be done for effective motivation at workplace?

Link Rewards directly to Performance- An organization should adopt a fair reward

structure which provides incentive to the most deserving employee. Have an incentive
structure in place doesn‘t solve the problem... what makes it workable is the employees
trust in the system and believe that they will be rewarded if they perform well.

Compliment employees- Even though an employee‘s name has not appeared in the list of
people getting incentives, go ahead and compliment that employee for a job well done -
no matter how small. There is nothing more satisfying to an employee than a pat on his
back.

Be transparent- While there may be some strategic decisions which you might want to
share with the employees at a later stage, make sure employees do not give in to the
rumours. Stay in touch with the employees.

Work on your PDP- Every employee is responsible for his / her own career. He / she
should work towards his ‘Personal Development Plan‘ [PDP] as discussed and agreed by
his manager. Find out what are the training company offers and which is best suited to his
development needs. How this will motivate you - remember training always increase your

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 marketability and enhance your career.

Participate and Network- Remember you work for a company where a one-on-one
attention might not be possible. Do not wait for an invitation to participate in a discussion.
If you are a part of a forum, then you have full right to express your opinion and be a part
of the process. Expressing yourself is a good way of motivating yourself.

Self-Motivation at Work

Self-motivation is a power that drives us to keep moving ahead. It encourages continuous

learning and success, whatever be the scenario. Self-motivation is a primary means of
realizing our goals and progressing. It is basically related to our inventiveness in setting
dynamic goals for ourselves, and our faith that we possess the required skills and
competencies for achieving those challenging goals. We often feel the need for self-
motivation.

Following are the ways/techniques for self-motivation:

Communicate and talk to get motivated: Communicating with someone can boost up
your energy and make you go on track. Talk with optimistic and motivated individuals.
They can be your colleagues, friends, wife, or any one with whom you can share your
ideas.

Remain optimistic: When facing hurdles; we always make efforts to find how to
overcome them. Also, one should understand the good in bad.

Discover your interest area: If you lack interest in current task, you should not proceed
and continue with it. If an individual has no interest in the task, but if it is essential to
perform, he should correlate it with a bigger ultimate goal.

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 Self-acknowledgement: One should know when his motivation level is saturated and he
feels like on top of the world. There will be a blueprint that once an individual
acknowledge, he can proceed with his job and can grow.

Monitor and record your success: Maintain a success bar for the assignments you are
currently working on. When you observe any progress, you will obviously want to foster
it.

Uplift energy level: Energy is very essential for self-motivation. Do regular exercises.
Have proper sleep. Have tea/coffee during breaks to refresh you.

Assist, support and motivate others: Discuss and share your views and ideas with your
friends and peers and assist them in getting motivated. When we observe others
performing good, it will keep us motivated too. Invite feedback from others on your
achievements.

Encourage learning: Always encourage learning. Read and grasp the logic and jist of the
reading. Learning makes an individual more confident in commencing new assignments.

Break your bigger goals into smaller goals: Set a short time deadline for each smaller
goal so as to achieve bigger goal on time.

Team Motivation - Tips for Motivating Team

A group heading towards a common objective will perform best when it is motivated as a
team. Team motivation is determined by how well the team members‘ needs and
requirements are met by the team.

Some tips for effective team motivation are as follows:

The team‘s objective should well align and synchronize with the team members needs and
requirements.

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Give in written the team‘s mission and ensure that all understand it (as mission is a
foundation based on which the team performs).

For maintaining motivation, the team should be given challenges (which must be difficult
but achievable) consistently.

Giving a team responsibility accompanied by authority can also be a good motivator for
the team to perform.

The team should be provided with growth opportunities. The team‘s motivation level is
high when the team members feel that they are being promoted, their skills and
competencies are being enhanced, and they are learning new things consistently.

Effective and true leaders can develop environment for the team to motivate itself. They
provide spur for self- actualization behaviours of team members.

Devote quality/productive time to your team. Have an optimistic and good relation with
your team members. This will make you more acquainted with them and you can get
knowledge of how well they are performing their job. Welcome their views and ideas as
they may be fruitful and it will also boost their morale.

Motivation is all about empowerment. The skills and competencies of the team members
should be fully utilized. Empowering the team members makes them accountable for their
own actions.

Provide feedback to the team consistently. Become their mentor. Give the team
recognition for good and outstanding performance. Give the team a constructive and not
negative feedback.

Discover and offset the factors which discourage team spirit such as too many conflicts,
lethargy, team members‘ escape from responsibilities, lack of job satisfaction, etc.

Essentials/Features of a Good Motivation System

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Motivation is a state of mind. High motivation leads to high morale and greater production. A
motivated employee gives his best to the organization. He stays loyal and committed to the
organization. A sound motivation system in an organization should have the following
features:

 Superior performance should be reasonably rewarded and should be duely

acknowledged.
 If the performance is not consistently up to the mark, then the system must make
provisions for penalties.
 The employees must be dealt in a fair and just manner. The grievances and obstacles
faced by them must be dealt instantly and fairly.
 Carrot and stick approach should be implemented to motivate both efficient and
inefficient employees. The employees should treat negative consequences (such as
fear of punishment) as stick, an outside push and move away from it. They should
take positive consequences (such as reward) as carrot, an inner pull and move towards
it.
 Performance appraisal system should be very effective.
 Ensure flexibility in working arrangements.
 A sound motivation system must be correlated to organizational goals. Thus, the
individual/employee goals must be harmonized with the organizational goals.
 The motivational system must be modified to the situation and to the organization.
 A sound motivation system requires modifying the nature of individual‘s jobs. The
jobs should be redesigned or restructured according to the requirement of situation.
Any of the alternatives to job specialization - job rotation, job enlargement, job
enrichment, etc. could be used.
 The management approach should be participative. All the subordinates and
employees should be involved in decision- making process.
 The motivation system should involve monetary as well as non- monetary rewards.
The monetary rewards should be correlated to performance. Performance should be
based on the employees‘ action towards the goals, and not on the fame of employees.
 ―Motivate yourself to motivate your employees‖ should be the managerial approach.
 The managers must understand and identify the motivators for each employee.

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  Sound motivation system should encourage supportive supervision whereby the
supervisors share their views and experiences with their subordinates, listen to the
subordinates views, and assist the subordinates in performing the designated job.

LEADERSHIP

Who is a leader?

A leader is the one in the charge, the person who convinces other people to follow. A
great leader inspires confidence in other people and moves them to action.

1. A leader is someone who inspires passion and motivation in followers.

2. A leader is someone with a vision and the path to realizing it.
3. A leader is someone who ensures their team has support and tools to achieve their
goals.

A leader may be any of those things, but a good leader is all three.

An effective leader has a shared vision aligned with core values and understands what it
will take to reach their team goals. They inspire, manage, and support their teams to
work creatively and confidently toward that shared vision.

A leader empowers their team members to embrace their own unique leadership qualities
and act with independently accountable passion. And they inspire and motivate their
teams to maintain long-term progress and excitement towards achieving their goals.

A leader is the head guy or gal, the one running the show. The leader of the band calls the
shots and sets the tempo for the music. A conductor is the leader of an orchestra; all
musicians look to him or her to know when to begin and end playing their instruments. A
president is the leader of a country whose decisions make a difference to the whole
population. Martin Luther King, Jr. was a leader of the Civil Rights Movement. A leader
comes first in line — in a parade or a social system — and gets a lot of attention, but
ultimately, a leader needs followers.

What are the most common characteristics of a leader?

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Leaders are bold but never leave their teams behind. Balancing vision with support that
empowers team members to achieve shared goals, leaders embrace a number of
leadership qualities and can‘t be pinned down to a single style.

However, leaders across the board tend to exhibit seven major characteristics:

1. Purpose. Without a sense of purpose, it‘s hard to motivate team

members. Leaders empower people to see the intention behind specific goals,
enabling them to take equal part. Making the day-to-day process feel more
purposeful helps maintain team motivation and personal investment in larger
goals.

Leaders who incorporate a sense of personal purpose in the company‘s overall

mission inspire individual accountability in their teams. This motivates team
members to embrace their own leadership qualities towards big-picture
achievement.
2. Motivation. Leaders are great motivators and create value-aligned goals so team
members feel personally inspired to work toward the company‘s vision. Paired
with consistent outreach, leaders empower their team members to work
passionately beyond their responsibilities towards a common goal.

Motivation goes beyond inspiring words. Great leaders talk to their teams, and
listen to their ideas and questions. Being a leader isn‘t about givin g orders and
managing results—it‘s about listening, supporting, and inspiring the best from
others.
3. Vision. Leaders see the bigger picture and can unite their team members behind
their vision. By incorporating team strengths and core values, leaders inspire their
team with an end-goal that resonates with individual values and inspires action.

Without a cohesive vision aligned with core values, companies often find
themselves hitting goals that don‘t progress their company in a specific direction.
Staying afloat does not equal growth. Leaders are visionaries for growth and
expansion.

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4. Empathy. Leaders empathize with their team members. It‘s how they inspire
people to work beyond their responsibilities toward a shared purpose. By
listening and sharing their appreciation for their teams, leaders impart a sense of
value. When leaders prioritize empathy and appreciate their team members‘
efforts, they can empower team members to see the vision for themselves and act
toward its achievement. Putting themselves in the position of their team members
also helps leaders address critical concerns and provide solutions.
5. Creativity. Whereas managers might feel inclined to stick to the status quo,
leaders innovate in bold and creative splashes. Rather than being concerned with
the chain of command, leaders encourage their employees to ask, ―Why?‖ and
think in new ways to realize a bigger picture.

With a lofty vision guiding them, leaders embrace new ways of

conceptualizing and strategizing. Nothing is off the table when it comes to
providing imaginative and more effective pathways to long-term goal
achievement and success.

6. Team vision. Although the company's overall vision may begin with its leaders,
their vision will account for nothing if it doesn‘t speak to team members.
Exploring the values and individual goals that bring meaning to team
members helps leaders thread their long-term goals through individually
motivating and fulfilling achievement. When team members share their leader's
vision and values, they‘re inspired to work beyond their responsibilities toward
their goals.
7. Always trying to improve. Leaders never stop bettering themselves. With an eye
toward growth, leaders continuously seek opportunities to improve for themselves
and their teams. This leaning towards personal betterment means leaders actively
seek feedback and value ideas that favor effectiveness and improvement over
defending their egos.

When leaders create an environment where feedback isn‘t just helpful but highly
valued, they inspire team members to voice their thoughts and bring the best ideas
to the table. This can lead to higher innovation and long-term success.

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What is Leadership?

Some CEOs defined leadership as having business acumen, like setting a vision or achieving
goals for a company. Other people focused on human qualities like empathy, humility or
diversity. Every answer was different, but they were each correct. Every leader has their own
personal definition of leadership, which influences how they lead and the culture and
direction of their company. The definition of leadership can also change as the leaders
themselves change. With new leaders come new approaches to leadership, which impacts
overall culture and employees.

Leadership means its“A process whereby an individual influences a group of individuals to

achieve a common goal.”

What is difference between leader and manager?

―Leadership and managership are two synonymous terms‖ is an incorrect statement.

Leadership doesn‘t require any managerial position to act as a leader. On the other hand, a
manager can be a true manager only if he has got the traits of leader in him. By virtue of his
position, manager has to provide leadership to his group. A manager has to perform all five
functions to achieve goals, i.e., Planning, Organizing, Staffing, Directing, and Controlling.
Leadership is a part of these functions. Leadership as a general term is not related to
managership. A person can be a leader by virtue of qualities in him. For example: leader of a
club, class, welfare association, social organization, etc. Therefore, it is true to say that, ―All
managers are leaders, but all leaders are not managers.‖

A leader is one who influences the behavior and work of others in group efforts towards
achievement of specified goals in a given situation. On the other hand, manager can be a true
manager only if he has got traits of leader in him. Manager at all levels are expected to be the
leaders of work groups so that subordinates willingly carry instructions and accept their
guidance. A person can be a leader by virtue of all qualities in him.

To put it in simple terms,

The main difference between leaders and managers is that leaders have people follow them
while managers have people who work for them. A successful business owner needs to be
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both a strong leader and manager to get their team on board to follow them towards their
vision of success.
A leader is a person who directs, guides and influences the behavior of his followers towards
the attainment of specific goals. A manager is a representative of the organization responsible
for the management of the work of a group of employees and takes requisite actions
whenever required.

―Management is doing things right. Leadership is doing the right thing‖ as per Peter J.
Drucker

LEADERSHIP THEORIES II

What are the good Qualities of a Leader

A leader has got multidimensional traits in him which makes him appealing and effective in
behavior. The following are the requisites to be present in a good leader:

1. Physical appearance- A leader must have a pleasing appearance. Physique and

health are very important for a good leader.
2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is
forward looking. He has to visualize situations and thereby has to frame logical
programmes.
3. Intelligence- A leader should be intelligent enough to examine problems and difficult
situations. He should be analytical who weighs pros and cons and then summarizes
the situation. Therefore, a positive bent of mind and mature outlook is very important.
4. Communicative skills- A leader must be able to communicate the policies and
procedures clearly, precisely and effectively. This can be helpful in persuasion and
stimulation.
5. Objective- A leader has to be having a fair outlook which is free from bias and which
does not reflects his willingness towards a particular individual. He should develop
his own opinion and should base his judgement on facts and logic.
6. Knowledge of work- A leader should be very precisely knowing the nature of work
of his subordinates because it is then he can win the trust and confidence of his
subordinates.

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 7. Sense of responsibility- Responsibility and accountability towards an individual‘s
work is very important to bring a sense of influence. A leader must have a sense of
responsibility towards organizational goals because only then he can get maximum of
capabilities exploited in a real sense. For this, he has to motivate himself and arouse
and urge to give best of his abilities. Only then he can motivate the subordinates to the
best.
8. Self-confidence and will-power- Confidence in him is important to earn the
confidence of the subordinates. He should be trustworthy and should handle the
situations with full will power.
9. Humanist-This trait to be present in a leader is essential because he deals with human
beings and is in personal contact with them. He has to handle the personal problems
of his subordinates with great care and attention. Therefore, treating the human beings
on humanitarian grounds is essential for building a congenial environment.
10. Empathy- It is an old adage ―Stepping into the shoes of others‖. This is very
important because fair judgement and objectivity comes only then. A leader should
understand the problems and complaints of employees and should also have a
complete view of the needs and aspirations of the employees. This helps in improving
human relations and personal contacts with the employees.

From the above qualities present in a leader, one can understand the scope of leadership and
it‘s importance for scope of business. A leader cannot have all traits at one time. But a few of
them helps in achieving effective results.

LEADERSHIP THEORIES

Do good leaders make good managers? Or is it the other way around? It's a chicken-and-egg
question that has no clear-cut answer. This often leads people to wonder what the difference
between a leader and a manager really is. However, one thing is for sure — while leadership
and management are not the same, they both must go hand in hand.

If managers are to be effective in their role, it is essential for them to imbibe

certain leadership skills. And if leaders want to lead successfully, they must know how to
manage their followers — employees, peers, and stakeholders — so that they feel more
inspired, empowered, and engaged, leading to a successful organization.
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Ultimately, both roles need an understanding of human behavior to create a more engaged
workforce and more productive workplaces.

Let‘s look into some of the most famous leadership theories that will sharpen your leadership
skills and help you perform better as a manager, which including:

- Transformational Leadership Theory

Creating high-performance workforce has become increasingly important and to do so

business leaders must be able to inspire organizational members to go beyond their task
requirements. As a result, new concepts of leadership have emerged - transformational
leadership being one of them.

Transformational leadership may be found at all levels of the organization: teams,

departments, divisions, and organization as a whole. Such leaders are visionary, inspiring,
daring, risk-takers, and thoughtful thinkers. They have a charismatic appeal. But charisma
alone is insufficient for changing the way an organization operates. For bringing major
changes, transformational leaders must exhibit the following four factors:

Figure 1: Model of Transformational Leadership

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Intellectual Stimulation: Such leaders encourage their followers to be innovative and
creative. They encourage new ideas from their followers and never criticize them publicly
for the mistakes committed by them. The leaders focus on the ―what‖ in problems and do
not focus on the blaming part of it. They have no hesitation in discarding an old practice set
by them if it is found ineffective.

Idealized Influence: They believe in the philosophy that a leader can influence followers
only when he practices what he preaches. The leaders act as role models that followers seek
to emulate. Such leaders always win the trust and respect of their followers through their
action. They typically place their followers needs over their own, sacrifice their personal
gains for them, ad demonstrate high standards of ethical conduct. The use of power by such
leaders is aimed at influencing them to strive for the common goals of the organization.

Individualized Consideration: Leaders act as mentors to their followers and reward them
for creativity and innovation. The followers are treated differently according to their talents
and knowledge. They are empowered to make decisions and are always provided with the
needed support to implement their decisions.

The common examples of transformational leaders are Mahatma Gandhi and Obama.

- Transactional Theories
The transactional style of leadership was first described by Max Weber in 1947 and then by
Bernard Bass in 1981. This style is most often used by the managers. It focuses on the basic
management process of controlling, organizing, and short-term planning. The famous
examples of leaders who have used transactional technique include McCarthy and de Gaulle.
Transactional leadership involves motivating and directing followers primarily through
appealing to their own self-interest. The power of transactional leaders comes from their
formal authority and responsibility in the organization. The main goal of the follower is to
obey the instructions of the leader. The style can also be mentioned as a ‗telling style‘.

The leader believes in motivating through a system of rewards and punishment. If a

subordinate does what is desired, a reward will follow, and if he does not go as per the wishes

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of the leader, a punishment will follow. Here, the exchange between leader and follower
takes place to achieve routine performance goals.

These exchanges involve four dimensions:

Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations,
provide necessary resources, set mutually agreed upon goals, and provide various kinds of
rewards for successful performance. They set SMART (specific, measurable, attainable,
realistic, and timely) goals for their subordinates.

Active Management by Exception: Transactional leaders actively monitor the work of

their subordinates, watch for deviations from rules and standards and taking corrective
action to prevent mistakes.

Passive Management by Exception: Transactional leaders intervene only when

standards are not met or when the performance is not as per the expectations. They may
even use punishment as a response to unacceptable performance.

Laissez-faire: The leader provides an environment where the subordinates get many
opportunities to make decisions. The leader himself abdicates responsibilities and avoids
making decisions and therefore the group often lacks direction.

- Trait Theory of Leadership

The trait model of leadership is based on the characteristics of many leaders - both successful
and unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits
are then compared to those of potential leaders to assess their likelihood of success or failure.

Scholars taking the trait approach attempted to identify physiological (appearance, height,
and weight), demographic (age, education and socioeconomic background), personality, self-
confidence, and aggressiveness), intellective (intelligence, decisiveness, judgment, and
knowledge), task-related (achievement drive, initiative, and persistence), and social
characteristics (sociability and cooperativeness) with leader emergence and leader
effectiveness.

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Successful leaders definitely have interests, abilities, and personality traits that are
different from those of the less effective leaders. Through many researchers conducted in
the last three decades of the 20th century, a set of core traits of successful leaders have been
identified. These traits are not responsible solely to identify whether a person will be a
successful leader or not, but they are essentially seen as preconditions that endow people with
leadership potential.

Among the core traits identified are:

 Achievement drive: High level of effort, high levels of ambition, energy and initiative
 Leadership motivation: an intense desire to lead others to reach shared goals
 Honesty and integrity: trustworthy, reliable, and open
 Self-confidence: Belief in one‘s self, ideas, and ability
 Cognitive ability: Capable of exercising good judgment, strong analytical abilities,
and conceptually skilled
 Knowledge of business: Knowledge of industry and other technical matters
 Emotional Maturity: well adjusted, does not suffer from severe psychological
disorders.
 Others: charisma, creativity and flexibility

How can you become a better leader?

There‘s always room to become a better leader, and the specific steps you take may vary
by experience level, personal attributes, and goals. But no matter where you are on your
leadership journey, you can follow these three steps to become a better leader.

Step 1: Listen and learn

Leadership is about social skills, not power and control. The most effective leaders take
time to listen and learn about their team members and the unique qualities of leadership
they each have.

Create opportunities for your team members to capitalize on their strengths and
maximize their efficiency. Ask for feedback and inquire about employee ideas. The more

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team members feel personally valued, the more you‘ll embolden them to work with
passion toward goals they believe in and care about.

Step 2: Create shared goals for the team

Leaders know where they want to go and take time to learn about team members‘
personal goals and visions. This can help ensure everyone feels valued and encompassed
in the company‘s larger mission.

Explore your team members‘ core values and incorporate them into larger, t eam- and
company-wide goals. You‘ll help your team members find more meaning and fulfillment
in their work, motivating them to work beyond assigned tasks towards innovation.

Step 3: Always seek opportunities to improve

Leaders are growth-minded and take every opportunity to better themselves and their
teams.

Who is a leader you look up to? What is a leadership role you can see yourself in, and
who is currently in that role? Get to know those leaders better, and consider asking one
of them to mentor you.

You may also find opportunities for improvement from your colleagues and team
members. Provide opportunities for open conversation and feedback across all levels of
your organization.

When providing feedback to others, pair transparent communication with additional

resources for team members to sharpen their skills and maximize their strengths. This
will enable them to bring their best to every situation, and provide more cre ative
feedback.

LEADERSHIP STYLES

What is leadership?

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As Defined by the Oxford English Dictionary, leadership is ―the action of leading a group of
people or an organisation, or the ability to do this‖. Leadership styles refer to the descriptions
or classifications of the main behaviours that are displayed by managers and leaders.

What are the different leadership styles?

Unfortunately the literature on leadership is expansive, with various theories competing for
dominance, so there is not a definitive answer to this question. There is overlap between
some of the main leadership writers and theorists, with certain leadership styles common to
all.

These are known as the primary leadership styles.

Kurt Lewin, a social psychologist, formed the groundwork on the subject in the 1930s,
identifying what he called ―three styles of leadership behaviour‖:

 Authoritarian Leadership also known as Autocratic.

 Participative Leadership also known as Democratic.
 Delegative Leadership also known as Laissez-Faire.

Over the years these core styles have been developed and expanded upon by leading business
and management writers and theorists, for example Tannenbaum and Schmidt, Ken
Blanchard and Daniel Goleman.

Today‘s leadership and management training and education mainly refer to a framework of
seven primary leadership styles. These are on a continuum, ranging from autocratic, the most
rigid, structured style at one end, to laissez-faire, the most flexible, unstructured style at the
other end, with a range of styles in between.

Each leadership style has its place in a leader‘s toolkit and although you may naturally have a
personal prevailing leadership style, as an effective leader you may need to be able to use
several different leadership styles at any given time. The intelligent leader knows to flex from
one style to another as circumstances and situations demand.

The seven primary leadership styles are:

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  Autocratic.
 Authoritative.
 Pacesetting.
 Democratic.
 Coaching.
 Affiliative.
 Laissez-faire.

 Autocratic leadership

This is defined by a top-down approach when it comes to all decision-making, procedures

and policies within an organisation. An Autocratic Leader focuses less on collecting input
from team members and tends to make executive decisions that others are expected to follow.

The phrase most illustrative of an Autocratic Leadership style is ―Do as I say‖. This
command-and-control approach is used less and less in organisations today, however, it may
be appropriate in certain situations. You might use an Autocratic Leadership style when
crucial decisions need to be made as a matter of urgency and there‘s no time to wait.

One example of when the Autocratic Leadership style could be effective is if there was a fire
in the building where one person needs to direct everyone safely out without being
questioned.

The pros of Autocratic Leadership include:

 Can be efficient, especially when it comes to decision-making.

 One person taking charge can keep teams cohesive and consistent.
 Can reduce an individual‘s stress by the leader making decisions quickly.
 May make everyone‘s individual roles clearer since they are delegated specific duties
and are not encouraged to step outside of that role.

The cons of Autocratic Leadership include:

 Can stifle creativity, collaboration, innovation and diversity in thought.

 Highly stressful because the leader feels responsible for everything.

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  Often resented by individuals as the leader lacks flexibility and often does not want to
hear others‘ ideas, leaving them feeling that they don‘t have a voice.

 Authoritative leadership

Unlike Autocratic Leaders, Authoritative Leaders take the time to explain their thinking to
others, they don‘t just issue orders. Most of all, they allow people choice and autonomy on
how to achieve common goals.

Leaders using this leadership style are often confident people, who map the way and set
expectations, while engaging and energising followers along the way. This style may also be
called Visionary Leadership. The phrase most illustrative of an Authoritative Leadership style
is, ―Follow me‖. Authoritative Leaders help people see where the organisation is going and
what is going to happen when they get there.

One example of when the Authoritative Leadership style could be effective is in changing
and uncertain times, as these leaders give a clear vision of what needs to be done to succeed.

The pros of Authoritative Leadership include:

 Motivating for the team.

 Beneficial for building strong relationships and encouraging collaboration.
 Empowers team members with autonomy to do their jobs.
 Can lead to more creativity and innovation.

The cons of Authoritative Leadership include:

 Pressure on the leader, who needs to lead by example.

 Can cause feelings of instability by disrupting the status quo.
 May not be a good culture fit for a more ―traditional hierarchical‖ organisational
culture.

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