Chapter 8

Leading
Learning Objectives

Identify the focus and goals of individual behavior within organizations.

Explain the role that attitudes play in job performance.
Describe different personality theories
Define Motivation
Compare and contrast early theories of motivation.
Compare and contrast contemporary theories of motivation
Define leader and leadership.
Compare and contrast early theories of leadership.
Describe contemporary views of leadership.
Discuss contemporary issues affecting leadership.
 PLOC
Understanding and Managing Individual Behavior
 Leading
Management function that involves working with and through
people to accomplish goals.
 Behavior
The actions of people
 Organizational Behavior (OB)
The study of the actions of people at work
 Focus of Organizational Behavior(OB)
Organizational behavior focuses on three major areas.
 Individual Behavior (includes such topics as attitudes, personality, perception,
learning, and motivation)
 Group Behavior (which includes norms, roles, team building, leadership, and
conflict)
 Organizational aspects (including structure, culture, and human resource policies
and practices)
 Goal of Organizational Behavior
 The goals of OB are to explain, predict, and influence behavior
 Some important have been identified:
i. Employee productivity
ii. Absenteeism,
iii. Turnover
iv. Job satisfaction and
v. Workplace misbehavior.
 Employee productivity
A performance measure of both efficiency and effectiveness
 Absenteeism
The failure to show up for work
 Turnover
The voluntary and involuntary permanent withdrawal from an organization.
 Job satisfaction
An employee’s general attitude toward his or her job
 Workplace Misbehavior
Any intentional employee behavior that is potentially damaging to the
organization or to individuals within the organization
 Attitudes and Job Performance
 Attitudes are evaluative statements favorable or unfavorable concerning objects,
people, or events.
 For example: They reflect how an individual feels about something.
When a person says, “I like my job,” he or she is expressing an
attitude about work.
 An attitude is made up of three components.
i. Cognitive(Thinking ability, link to mind) component
ii. Affective component
iii. Behavioral component
 An attitude is made up of three components.
i. cognitive component
That part of an attitude that’s made up of the beliefs, opinions, knowledge, or
information held by a person.
ii. Affective component
That part of an attitude that’s the emotional or feeling part
iii. Behavioral component
That part of an attitude that refers to an intention to behave in a certain way toward
someone or something
What do u think Managers are interested in
every attitude an employee has?
 Naturally, managers aren’t interested in every attitude an employee
has. They’re especially interested in job-related attitudes.
 The three most widely known are
i. Job satisfaction
ii. Job involvement
iii. Organizational commitment
 Job satisfaction
job satisfaction refers to a person’s general attitude toward his or her job.
A person with a high level of job satisfaction has a positive attitude toward his or her job.
A person who is dissatisfied has a negative attitude.
 job involvement
The degree to which an employee identifies with his or her job, actively participates in it,
and considers his or her job performance to be important to self-worth
 Organizational commitment
The degree to which an employee identifies with a particular organization and its goals and
wishes to maintain membership in that organization.
 Perception
A process by which we give meaning to our environment by
organizing and interpreting sensory impressions.
 Research on perception consistently demonstrates that
individuals may look at the same thing yet perceive it
differently.
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 How’d you do in trying to read this? If you were able to make sense out
of this jumbled message, that’s the perceptual process at work.
What Do You See?
Factors That Influence Perception
 When a person looks at a target and attempts to interpret what he or she
sees, the individual’s personal characteristics will heavily influence the
interpretation.
 These personal characteristics include
 Attitudes
 Personality
 Motives
 Interests
 Experiences
 Expectations
 Information
 Personality
 An individual personality is a unique combination of emotional,
thought, and behavioral patterns that affect how a person reacts to
situations and interacts with others.
 When we describe people using terms such as quiet, loud,
aggressive, ambitious, extroverted, loyal, tense, or sociable, we’re
describing their personalities.
The two most well-known approaches are the
 Myers Briggs Type Indicator (MBTI)
 The Big Five Model
 MBTI
 One popular approach to classifying personality traits is the personality-
assessment instrument known as the MBTI.
 This 100-question assessment asks people how they usually act or feel in
different situations. On the basis of their answers, individuals are classified as
exhibiting a preference in four categories:
1. Extraversion or Introversion (E or I)
2. Sensing or Intuition (S or N)
3. Thinking or Feeling (T or F)
4. Judging or Perceiving (J or P)
  Extraversion (E) versus Introversion (I).
Individuals showing a preference for Individuals showing a preference for
extraversion are outgoing, social, and introversion are quiet and shy.
assertive. They focus on understanding and prefer a
They need a work environment that’s work environment that is quiet and
varied and action oriented, that lets them concentrated, that lets them be alone, and
be with others, and that gives them a that gives them a chance to explore in
variety of experiences. depth a limited set of experiences.

 Sensing (S) versus Intuition (N)

Sensing types are practical and prefer routine Intuition types rely on unconscious processes
and order. and look at the “big picture.”
They dislike new problems unless there are They’re individuals who like solving new
standard ways to solve them, show patience problems, dislike doing the same thing over
with routine details, and tend to be good at and over again, jump to conclusions, are
precise work. impatient with routine details, and dislike
taking time for precision.
  Thinking (T) versus Feeling (F)
Thinking types use reason and logic to Feeling types rely on their personal values
handle problems. and emotions.
They’re unemotional and uninterested in They’re aware of other people and their
people’s feelings, like analysis feelings, like harmony, need occasional
and putting things into logical order, are praise, dislike telling people unpleasant
able to fire them when necessary, may seem things, tend to be sympathetic.
hard-hearted.

 Judging (J) versus Perceiving (P)

Judging types want control and prefer their Perceiving types are flexible and
world to be ordered and structured. spontaneous. They’re interested, adaptable,
They’re good planners, decisive, purposeful, and tolerant.
and exacting. They focus on starting a task, postpone
They focus on completing a task, make decisions, and want to find out all about the
decisions quickly, and want only the task before starting it.
information necessary to get a task done.
Every person identified with one of the items in each of the four
pairs.
 The Big Five Model
 In recent years, research has shown that have five basic personality in the Big Five
Model are:
1. Extraversion: The degree to which someone is sociable, talkative, assertive, and
comfortable in relationships with others.
2. Agreeableness: The degree to which someone is good-natured, cooperative, and
trusting.
3. Conscientiousness: The degree to which someone is reliable, responsible,
dependable, persistent, and achievement oriented.
4. Emotional stability: The degree to which someone is calm, passionate, and secure
(positive) or tense, nervous, depressed, and insecure (negative).
5. Openness to experience: The degree to which someone has a wide range of
interests and is imaginative, fascinated with novelty, artistically sensitive, and
intellectual.
 Learning
 Any relatively permanent change in behavior that occurs as a result
of experience.
 Social learning theory
A theory of learning that says people can learn through observation and
direct experience.
Much of what we have learned comes from watching others (models)—
parents, teachers, peers, television and movie actors, managers, and so
forth.
 Motivating Employees
 Motivation
The process by which a person’s efforts are energized, directed, and
sustained toward attaining a goal.

 Early Theories of Motivation

 Contemporary Theories of Motivation
 Early Theories of Motivation

 Maslow’s hierarchy of needs,

 Theories X and Y
 Herzberg’s two-factor theory
 McClelland’s three-needs theory.
 Maslow’s Hierarchy of Needs Theory
 The best-known theory of motivation is probably Abraham Maslow’s
hierarchy of needs theory.
 Maslow was a psychologist who proposed that within every person is a
hierarchy of five needs.
 Maslow’s theory that human needs physiological, safety, social, esteem, and
self-actualization form a sort of hierarchy.
 Physiological needs
A person’s needs for food, drink, shelter and other physical needs.
 Safety needs
A person’s needs for security and protection from physical and emotional
harm.
 Social needs
A person’s needs for affection, belongingness, acceptance, and friendship.
 Esteem needs
A person’s needs for internal factors such as self-respect, autonomy, and
achievement, and external factors such as status, recognition, and attention.
 Self-actualization needs
A person’s need to become what he or she is capable of becoming.
 Maslow argued that each level in the needs hierarchy must be substantially
satisfied before the next need becomes dominant. An individual moves up the
needs hierarchy from one level to the next.
 In addition, Maslow separated the five needs into higher and lower levels.
 Physiological and safety needs were considered lower-order needs; social,
esteem, and self-actualization needs were considered higher-order needs.
 Lower-order needs are predominantly satisfied externally while higher-order
needs are satisfied internally.
 McGregor’s Theory X and Theory Y
Douglas McGregor is best known for proposing two assumptions
about human nature: Theory X and Theory Y.

Theory X Theory Y
Theory X is a negative view of Theory Y is a positive view of people.
people.
The assumption that employees are
The assumption that employees creative, enjoy work, seek
dislike work, are lazy, avoid responsibility, and can exercise self-
responsibility, and must be forced to direction
perform

• McGregor believed that Theory Y assumptions should guide management

practice and proposed that participation in decision making, responsible and
challenging jobs, and good group relations would maximize employee
motivation.
 Herzberg’s Two-Factor Theory (mid-1960s to
the early 1980s)

 Frederick Herzberg’s two-factor theory (also called motivation-

hygiene theory)
 The motivation theory that intrinsic factors are related to job
satisfaction and motivation, whereas extrinsic factors are associated
with job dissatisfaction.
 Hygiene factors
Factors that eliminate job dissatisfaction, but don’t motivate.
 Motivators
Factors that increase job satisfaction and motivation.
Herzberg’s Two-Factor Theory
 Three-Needs Theory
David McClelland proposed the three-needs theory. which says three acquired
needs are major motives in work.
 Three-needs theory
The motivation theory that says three acquired needs- achievement, power, and
affiliation are major motives in work.
 Need for achievement (nAch)
The drive to succeed and excel in relation to a set of standards
 Need for power (nPow)
The need to make others behave in a way that they would not have behaved
otherwise
 Need for affiliation (nAff)
The desire for friendly and close interpersonal relationships
Contemporary Theories of Motivation
These contemporary motivation approaches include

Goal-setting theory
Job design theory
Equity theory
Expectancy theory
 Equity Theory
 Equity theory, developed by J. Stacey Adams.
 The theory that an employee compares his or her job’s input–
outcomes ratio with that of relevant others and then corrects any
inequity.
 Referents
The persons, systems, or selves against which individuals compare
themselves to assess equity
 If an employee perceives her ratio to be equitable in comparison to those of
relevant others, there’s no problem.
 However, if the ratio is inequitable, she views herself as under rewarded or over
rewarded. When inequities occur, employees attempt to do something about it.
 The result might be lower or higher productivity, improved or reduced quality of
output and increased absenteeism. P-B-R
Goal-Setting Theory
 The proposition that specific goals increase performance and that
difficult goals, when accepted, result in higher performance than do
easy goals.
 Self-efficacy
An individual’s belief that he or she is capable of performing a task.
 The relationships among goals, motivation, and performance.
 Our overall conclusion is that the intention to work toward hard and
specific goals is a powerful motivating force. Under the proper
conditions, it can lead to higher performance.
 Designing Motivating Jobs
 Job design (creating + adding value)
The way tasks are combined to form complete jobs.
 Job Characteristics Model (JCM)
It identifies five core job dimensions, their interrelationships, and their impact on
employee productivity, motivation, and satisfaction. These five core job
dimensions are
i. Skill variety
ii. Task identity
iii. Task significance
iv. Autonomy
v. Feedback
 Job Design Theory
 Skill variety: The degree to which a job requires a variety of activities so that an employee
can use a number of different skills and talents.
 Task identity DOL
The degree to which a job requires completion of a whole and identifiable piece of work.
 Task significance/importance
The degree to which a job has a substantial impact on the lives or work of other people.
CSR Company Social Responsibility: provide welfare to society!
 Autonomy
The degree to which a job provides substantial freedom, independence, and decision to the
individual in scheduling the work and determining the procedures to be used in carrying it out.
 Feedback
The degree to which doing work activities required by a job results in an individual obtaining
direct and clear information about the effectiveness of his or her performance.
 Expectancy Theory
 The theory that an individual tends to act in a certain way based on
the expectation that the act will be followed by a given outcome and
on the attractiveness of that outcome to the individual.
 It includes three variables or relationships
A. Expectancy or Effort–performance linkage
B. Performance–reward linkage P-B-R
C. Attractiveness of reward
 Expectancy or Effort–Performance linkage is the probability perceived by the
individual that applying a given amount of effort will lead to a certain level of
performance.
 Performance–Reward linkage is the degree to which the individual believes
that performing at a particular level is instrumental in attaining the desired
outcome.
 Attractiveness of reward is the importance an individual places on the potential
outcome or reward that can be achieved on the job.
Who is Leader?
Who Are Leaders and What is Leadership?
 Leader
Someone who can influence others and who has managerial authority.
 Leadership
A process of influencing a group to achieve goals.
 Early Leadership Characteristic Theories
 The eight features associated with effective leadership are
1. Drive: Leaders exhibit a high effort level. They have a relatively high desire
for achievement, they have a lot of energy and they show initiative.
2. Desire to lead: Leaders have a strong desire to influence and lead others.
3. Honesty: Leaders build trusting relationships with followers and by showing
high consistency between word and deed.
4. Self-confidence: Leaders need to show self-confidence in order to convince
followers of the rightness of their goals and decisions.
5. Intelligence: Leaders need to be intelligent enough to gather, synthesize, and
interpret large amounts of information, and they need to be able to create visions,
solve problems, and make correct decisions.
 Contd.

6. Job-relevant 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.
7. Extraversion: Leaders are energetic and lively people. They are sociable and
assertive.
8. Proneness to guilt: Guilt proneness is positively related to leadership
effectiveness because it produces a strong sense.
 Leadership Behavior Theories
 Leadership theories that identify behaviors that differentiate
effective leaders from ineffective leaders.
i. Autocratic style
ii. Democratic style
iii. Laissez-faire style
 Contd.
 Autocratic style
A leader who dictates work methods, makes unilateral decisions, and
limits employee participation
 Democratic style
 A leader who involves employees in decision making, delegates
authority, and uses feedback as an opportunity for coaching
employees
 Laissez-faire style
A leader who lets the group make decisions and complete the work in
whatever way it sees fit.
Contingency Theories of Leadership
Path-Goal Theory
 A leadership theory that says the leader’s job is to assist followers in
attaining their goals and to provide direction or support needed to
ensure that their goals are well-matched with the goals of the group
or organization
 House identified four leadership behaviors:
i. Directive leader
ii. Supportive leader
iii. Participative leader
iv. Achievement oriented leader
 Contd.
 Directive leader: Lets subordinates know what’s expected of them,
schedules work to be done, and gives specific guidance on how to
accomplish tasks.
 Supportive leader: Shows concern for the needs of followers and is
friendly.
 Participative leader: Consults with group members and uses their
suggestions before making a decision. EE
 Achievement oriented leader: Sets challenging goals and expects
followers to perform at their highest level.
Contemporary Views of Leadership
❑ Charismatic-visionary leadership
❑ Team leadership
 Charismatic leader
 An passionate, self-confident leader whose personality and actions
influence people to behave in certain ways.
 Visionary leadership
 The ability to create and articulate a realistic and attractive vision of
the future that improves upon the present situation.
 Team Leadership
 These leader responsibilities included
 Coaching
 Facilitating
 Handling disciplinary problems/Conflict
 Reviewing team and individual performance (P-B-R)
 Training and communication
Leadership Issues in the Twenty-First
Century
.
Leadership Issues in the Twenty-First Century
 Leading effectively in today’s environment is likely to involve such
challenging circumstances for many leaders.
 Managing power
 Developing trust
 Empowering employees
 Leading across cultures and
 Becoming an effective leader.