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Wednesday, February 29, 2012

Leadership


Meaning:
                Leadership is the ability to build up confidence and deal among people and to create an urge in them to be led. To be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-confidence and personal integrity. Different situations may demand different types of leadership.

Definitions:
                Leadership means influencing the behaviour of the people at work towards realizing the specified goals. It is the ability to use non-coercive (no force) influence on the motivation, activities and goals (MAG) of others in order to achieve the objectives of the organisation.
                Koontz and 0' Donnel “Leadership is the ability of a manager to induce subordinates to work with confidence and zeal”.
                George R Terry “Leadership is the activity of influencing people to strive willingly for group objectives”.

Nature and Characteristics of Leadership:
                An analysis of the definitions cited above reveals the following important characteristics of leadership.
a)      Leadership is a personal quality.
b)      It exists only with followers. If there are no followers, there is no leadership?
c)       It is the willingness of people to follow that makes a person a leader.
d)      Leadership is a process of influence. A leader must be able to influence the behaviour, attitude and beliefs of his subordinates.
e)      It exists only for the realization of common goals.
f)       It involves readiness to accept complete responsibility in all situations.
g)      Leadership is the function of stimulating the followers to strive willingly to attain organizational objectives.
h)      Leadership styles do change under different circumstances.
i)        Leadership is neither bossism nor synonymous with management.


Leadership Styles or Types of Leaders

1.       Autocratic or Authoritarian Style leader: An autocratic also known as authoritarian style of leadership implies wielding absolute power. Under this style, the leader expects complete obedience from his subordinates and all decision-making power is centralized in the leader. No suggestions or initiative from subordinates is entertained. The leader forces the subordinates to obey him without questioning. An autocratic leader is, in fact, no leader. He is merely the formal head of the organization and is generally disliked by the subordinates who feel comfortable to depend completely on the leader.
2.       Laissez-faire or Free-rein Style Leader: Under this type of leadership, maximum freedom is allowed to subordinates. They are given free hand in deciding their own policies and methods and to make independent decisions. The leader provides help only when required by his subordinates otherwise he does not interfere in their work. The style of leadership creates self-confidence in the workers and provides them an opportunity to develop their talents. But it may not work under all situations with all the workers, may bring problems of indiscipline. Such leadership can be employed with success where workers are competent, sincere and self-disciplined.
3.       Democratic or Participative Style leader: The democratic or participative style of leadership implies compromise between the two extremes of autocratic and laissez-fair style of leadership. Under this style, the supervisor acts according to the mutual consent and the decisions reached after consulting the subordinates. Subordinates are encouraged to make suggestions and take initiative. It provides necessary motivation to the workers by ensuring their participation and acceptance of work methods. Mutual trust and confidence is also created resulting in job satisfaction and improved morale of workers. It reduces the number of complaints, employee's grievances, industrial unrest and strikes. But this style of leadership may sometimes cause delay in decisions and lead to indiscipline in workers.
4.       Paternalistic Style leader: This style of leadership is based upon sentiments and emotions of people. A paternalistic leader is like a father to these subordinates. He looks after the subordinates like a father looks after his family. He helps guides and protects all of his subordinates but under him no one grows. The subordinates become dependent upon the leader.


Qualities of a Good Leader
1.       Patience: Patience is the capacity to face difficult situations, hardships or inconvenience without making a single complaint. It is the ability to wait calmly for something to happen without complaining or giving up or getting angry. Patience requires Calmness, Self-Control, Willingness or Ability to tolerate delay. A good leader must show patience while waiting for expected results, facing difficult situations and taking important decisions. He must avoid taking hasty decisions and actions.
2.       Good Personality: A good personality is a combination of physical, mental and social qualities. Good personality helps a leader to influence his followers. Attractive physique and good manners add an advantage to the leader's personality.
3.       Self-confidence: A good leader must have self confidence. This quality is necessary for facing challenging situations and for solving problems easily and effectively.
4.       Human Skills: A good leader must have essential social and human skills. That is, he must understand people. This quality is necessary for dealing with different types of persons and social groups.
5.       Judgment skills: A good leader should be able to examine problems in right perspective. His judgment and decision making abilities should be superior to others. He should be able to form opinions and judge based on facts and not be prejudiced
6.       Communication skills: A good leader should be able to communicate the goals and procedures of the organisation clearly, precisely and effectively to the subordinates. Only then will it be possible for him to convince, persuade and stimulate subordinates to action.
7.       Listening skills: People tend to avoid a leader who does not listen. Hence a good leader in one who can listen to other peoples problems. He should be able to create a culture whereby people can be frank with him and give him information and also give him feedback about himself, which can help him to improve himself.
8.       Inspiring skills: A good leader should be able to inspire people to deal with the “why” question. He should not just command and control but be able to lead the people and get them involved to work together as a team.
9.       Administrative Skills: A good leader must have an administrative ability. This means, he must be able to get the work done through his followers. He must know how to plan, organize and control the work of his followers.
10.   Discipline: A good leader must be a disciplined person. This means he must have respect for the rule and regulations of the organisation. This is because his followers will follow his example.
11.   Initiative: A good leader must always take an initiative. This means he should do the right thing at the right time without being told by others. He must be able to construct and implement his own plan.
12.   Intelligence: A good leader must be smart and intelligent. That is, he should have a good educational background and sound technical knowledge. He should be more intelligent than his followers. If not, his followers will not respect him. This will have a bad effect on his performance.
13.   Innovative:  A good leader must have an art of innovation. That is, he must have a good imagination and visualization skills. He must develop new ideas and tactics to solve problems. He must combine the new ideas with the old ideas.

Motivation


Introduction
                The word motivation is derived from ‘motive', which means an active form of a desire, craving or need that must be satisfied. Motivation is the key to organizational effectiveness. The manager in general has to get the work done through others. These 'others' are human resources who need to be motivated to attain organizational objectives.

DEFINITION
According to George R. Terry, "Motivation is the desire within an individual that stimulates him or her to action."
According to Berelson and Steiner “A motive is an inner state that energizes activates, or moves and directs or channels behavior goals".
According to Lills "It is the stimulation of any emotion or desire operating upon one's will and promoting or driving it to action".
According to Encyclopedia of Management  "Motivation refers to the degree of readiness of an organism to pursue some designated goals and implies the determination of the nature and locus of force inducing a degree of readiness."

Nature of Motivation
                Motivation is a psychological phenomenon which generates within an individual. A person feels the lack of certain needs, to satisfy which he feels working more. The need satisfying ego motivates a person to do better than he normally does. From definitions given earlier the following inferences can be derived:
a)      Motivation is an inner psychological force, which activates and compels the person to behave in a particular manner.
b)      The motivation process is influenced by personality traits, learning abilities, perception and competence of an individual.
c)       A highly motivated employee works more efficiently and his level of production tends to be higher than others.
d)      Motivation originates from the-needs and wants of an individual. It is a tension of lacking something in his mind, which forces him to work more efficiently.
e)      Motivation is also a process of stimulating and channelizing the energy of an individual for achieving set goals.
f)       Motivation also plays a crucial role in determining the level of performance. Highly motivated employees get higher satisfaction, which may lead to higher efficiency.
g)      Motivating force an^ its degree, may differ from individual to individual depending on his personality, needs, competence and other factors.
h)      The process of Motivation helps the manager in analyzing and understanding human behavior and finding but how an individual can be inspired to produce desirable working behavior.
i)        Motivation may be positive as well as negative. Positive motivation includes incentives, rewards and other benefits while negative motivation implies some punishment, fear, use of force etc.
j)        The motivation procedure contributes to and boosts up the morale of the employees. A high degree of motivation may lead to high morale.

Importance of Motivation
a)      High Performance: - Motivated employee’s writ put maximum efforts for achieving organizational goals. The untapped reservoirs of physical and mental abilities are taped to the maximum. Better performance will also result in higher productivity. The cost of production can also be brought down if productivity is raised.
b)      Low employee Turnover and Absenteeism: -When the employees are not satisfied with their job then they will leave it whenever they get an alternative offer. The dissatisfaction among employees also increases absenteeism. The employment training of new employees costs dearly to the organization.
c)       Better Organizational Images: -Those enterprises which offer better monetary and non-monetary facilities to their employees have a better image among them. Such concerns are successful in attracting better qualified and experienced persons. Since there is a better man-power to development programme, the employees will like to join such organizations. Motivational efforts will simplify personnel functions also.
d)      Better Industrial Relations: -A good motivational system will create job satisfaction among employees. The employment will offer them better service conditions and various other incentives. There will be an atmosphere of confidence among employers and employees. There will be no reason for conflict and cordial relations among both sides will create a healthy atmosphere. So motivation among employees will lead to better industrial relations.
e)      Acceptability to Change: -The changing social an industrial situations will require changes and improvements in the working of enterprises. There will be a need to introduce new and better methods of work from time to time. Generally employees resist changes for fear of an adverse effect on their employment.

Maslow's Hierarchy of Needs
                Maslow Abraham proposed his theory in the 1940s. This theory, popularly known as the Hierarchy of Needs assumes that people are motivated to satisfy five levels of needs: physiological, security, belongingness, esteem and self-actualization needs. The figure 9.1 shows Maslow's hierarchy of needs

                Maslow suggested that the five levels of needs are arranged in accordance with their importance, starting from the bottom of the hierarchy. An individual is motivated first and foremost to satisfy physiological needs. When these needs are satisfied, he is motivated and 'moves up' the hierarchy to satisfy security needs. This 'moving up process continues until the individual reaches the self-actualization level.
a)      Physiological needs: Physiological needs represent the basic issues of survival such as food, sex, water and air. In organizational settings, most physiological needs are satisfied by adequate wages and by the work environment itself, which provides employees with rest rooms, adequate lighting, comfortable temperatures and ventilation.

b)      Security or safety needs: Security or safety needs refer to the requirements for a secure physical and emotional environment. Examples include the desire for adequate housing and clothing, the need to be free from worry about money and job security and the desire for safe working conditions. Security needs are satisfied for people in the work place by job continuity, a grievance resolving system and an adequate insurance and retirement benefit package.

c)       Social needs: Belonging or social needs are related to the, social aspect of human life. They include the need for love and affection and the need to be accepted by one's peers. For most people these needs are satisfied by a combination of family and community relationships and friendships on the job. Managers can help ensure the 'satisfaction of these important needs by allowing social interaction and by making employees feel like part of a team or work group.

d)      Esteem needs: Esteem needs actually comprise of two different sets of needs:
i.         The need for a positive self-image and self-respect.
ii.       The need for recognition and respect from others.
Organizations can help address esteem needs by providing a variety of external symbols of accomplishment such as job titles and spacious offices. At a more fundamental level, organizations can also help satisfy esteem needs by providing employees with challenging job assignments that can induce a sense of accomplishment.

e)      Self-actualization needs: At the top of the hierarchy are those needs, which Maslow defines the self-actualization needs. These needs involve realizing one's potential for continued: growth and individual development. Since these needs are highly individualized and personal, self-actualization needs are perhaps the most difficult for managers to address. Therefore, an employee should try to meet these needs on his own end.
However, an organization can help his employee by creating a climate for fulfillment of self-actualization needs. For instance, an organization can help in fulfillment of these needs by encouraging employee’s participation in decision-making process and by providing them with an opportunity to learn new things about their jobs and organization. This process of contributing to actual organizational performance helps employees experience personal growth and development associated with self-actualizing.

Critical Analysis of Maslow’s Theory
                A number of research studies have been undertaken to see the validity of hierarchy of needs. Lawler and Suttle collected data on 187 Managers in two different organizations for a period of six months to one year. No evidence was found to support Maslow's theory. They found there were two levels of needs-biological and other needs- and that other needs would emerge only when biological needs were reasonably satisfied. A survey conducted in India of 200 factory w9rker revealed that they give top priority to job security, earnings and personal benefits-all lower other needs.
                It is generally seen that needs do not follow Maslow's hierarchy. The hierarchy is determined by individuals differently. They proceed to follow their own pattern of needs satisfaction. Some people may try for self-actuating needs rather than lower needs. For some persons esteem needs are more important than social needs.
                There is no cause effect relation between and need and behavior. A particular need may cause behavior in different ways in different person. Similarly, one particular behavior may result due to different needs. It is said that higher needs motivate a person when lower needs are reasonably satisfied. The word 'reasonably satisfied' is a subjective matter. The level of satisfaction may be different for persons.

Herzberg theory of Motivation   
                Another popular need-based approach to motivation is the dual-structure approach developed by Frederick Herzberg. This is also known as Two-factor Theory. Herzberg developed this approach after interviewing 200 accountants and engineers in Pittsburg. He asked them to recall such occasions when they had been dissatisfied and less motivated. He found that entirely different sets of factors were associated with satisfaction and dissatisfaction. For instance, an individual who identified 'low pay' as causing dissatisfaction did not necessarily mention 'high pay' as a cause of satisfaction. Instead, several other factors, such as recognition or accomplishment, were cited as causing satisfaction.
                This finding suggests that satisfaction and dissatisfaction are at opposite ends of a single scale. Employees would, therefore, be satisfied, dissatisfied or somewhere in between. Herzberg argued that attitudes and motivation consists of a dual structure. One structure involves a set of factors that result in feelings ranging from satisfaction to no satisfaction. The other structure involves a set of factors that result in feelings ranging from dissatisfaction to no satisfaction.
                Herzberg identified two sets of factors responsible for causing either satisfaction or dissatisfaction. The factors influencing satisfaction are called motivation factors or motivators, which are related specifically to the job itself and the factors causing dissatisfaction, are called hygiene factors, which are related to the work environment in which the job is performed.

Motivators
a)      Achievement
b)      Recognition
c)       Advancement
d)      The work itself
e)      The possibility of personal growth
f)       Responsibility       

Hygiene or Maintenance Factors
a)      Company policies
b)      Technical supervision
c)       Interpersonal relations with supervisor
d)      Interpersonal relations with peers
e)      Interpersonal relations with subordinates
f)       Salary
g)      Job security
h)      Personal life
i)        Work conditions
j)        Status

                Based on these findings, Herzberg recommended that managers seeking to motivate employees should first make sure that hygiene factors are taken care of and that employees are not dissatisfied with pay, security and working conditions. Once a manager has eliminated employee dissatisfaction, Hertzberg recommends focusing on a different set of factors to increase motivation, by improving opportunities for advancement, recognition, advancement and growth. Specifically, he recommends job enrichment as a means of enhancing the availability of motivation factors.

Criticism
                Although widely accepted by managers, Hertzberg’s dual structure approach however suffers from certain drawbacks. Other researchers who measured satisfaction and dissatisfaction based on different aspects reached very different conclusions. They have also criticized Herzberg's theory for its inability to define the relationship between satisfaction and motivation and to pay enough attention to differences between individuals. Hence, at present Herzberg's theory is not held in high esteem by researchers in the field of motivation. The theory, however, had a major impact on managers and has played a key role in increasing their awareness of motivation and its importance in type work place.

Difference between Maslow’s Need Hierarchy theory and Herzberg’s motivation Hygiene Theory

1.       Meaning:
        Maslow's theory is based on the concept of human needs and their satisfaction.
                Hertzberg's theory is based on the use of motivators which include achievement, recognition and opportunity for growth.

2.       Basis of Theory:
Maslow's theory is based on the hierarchy of human needs. He identified five sets of human needs (on priority basis) and their satisfaction in motivating employees.
Hertzberg refers to hygiene factors and motivating factors in his theory. Hygiene factors are dissatisfies while motivating factors motivate subordinates. Hierarchical arrangement of needs is not given.

3. Nature of Theory:
                Maslow's theory is rather simple and descriptive. The theory is based long experience about human needs.
                Hertzberg's theory is more prescriptive. It suggests the motivating factors which can be used effectively. This theory is based on actual information collected by Hertzberg by interviewing 200 engineers and accountants.

4. Applicability of Theory:
                Maslow's theory is most popular and widely cited theory of motivation and has wide applicability. It is mostly applicable to poor and developing countries where money is still a big motivating factor.
                Herzberg's theory is an extension of Maslow's theory of motivation. Its applicability is narrow. It is applicable to rich and developed countries where money is less important motivating factor.

5. Descriptive or Prescriptive
                Maslow's theory or model is descriptive in nature.
                Herzberg's theory or model is prescriptive in nature.

6. Motivators
                According to Maslow's model, any need can act as motivator provided it is not satisfied or relatively less satisfied.
                In the dual factor model of Hertzberg, hygiene factors (lower level needs) do not act as motivators. Only the higher order needs (achievement, recognition, challenging work) act as motivators.

McGregor’s Theory X and Y
                Doughlas McGregor introduced these two theories i.e., Theory X and Theory Y, based on two distinct views of human beings. He proposed, at opposite extremes, two pairs of assumptions about human beings which he thought were implied by the actions of the mangers. Theory X deals with one extreme, based on one set of assumptions and Theory y deals with another extreme based on another set of assumptions. These theories are not based on any research, but according to McGregor, these are intuitive deduction.

Theory X: -This theory is based on the traditional approach to human behavior. The assumptions generally, held by the managers in their theory are: -
a)      The average human beings inherently dislike work and will try to avoid it, whenever possible
b)      A the employee are lazy, they must be controlled, coerced, threatened with punishment to achieve goals, to which they are indifferent
c)       Average employee will try to avoid responsibility and seek formal directions whenever possible, because they have relatively little ambition.

Most workers place security above all other factors associated with work. These assumptions about human nature are negative in their approach. Manager who advocate these views feel that extreme control is most appropriate for dealing with irresponsible and immature employees. This is an autocratic style of leadership based on the traditional theory of what workers are like and what management must do to motivate them. Workers have to be persuaded and pushed into performance.

Theory y: -This approach assumes that management by direction and control is questionable method for motivating such people whose physiological and social needs have been satisfied and whose social; esteem and self actualization needs are becoming more important. For such people, Theory Y seems to be applicable, which is the contrast of Theory X. This theory makes the following assumptions about people:

a)      The average human being does not inherently dislike work. He can view work as natural or enjoyable as rest or play
b)      Employees will exercise self direction and self control in the attainment of the objectives to which they are committed
c)       Given proper working conditions, average person can learn to accept and even to seek responsibility
d)      Commitment to objectives is a function of the rewards associated with their achievement
e)      All the people are capable of making innovative and creative decision and the decision making is not the sole province of the people in management position.

                This theory has assumed a new approach in management. It emphasizes on co- operation between management and employees. The individual and organizational goals do not conflict in this approach. This theory places greater emphasis a satisfaction of high level needs of the employees. McGregor himself holds that the assumptions of theory Y are more valid than Theory X. Thus, delegations of authority, job enlargement, management by objective and participative management techniques are great motivators for the employee.

Applicability of Theory X and Theory y
                Theory X and the Theory Y represent two extreme. No person can being to these two extreme situations. Each person possesses the traits of Theory X and Theory Y, though the degrees may be different under different situations.                 Though, no generalization can be made, still it appears that theory X is more applicable to unskilled and uneducated lower class workers who work for the satisfaction of their physiological needs only.
                Theory Y appears to be applicable to the educated, skilled and professional employee who understand their responsibilities and do not need any direction and control. However, there can be exceptions. A lower revel employee may be more responsible and mature than a will qualified high level employee. Still these theories are very important tools understanding the behavior of human beings and in designing the motivational schemes. The management should use a combination of both the theories to motivate different employees.