FOM-UNIT-IV-LEADING AND MOTIVATION

What is Leadership
Leadership is a process by which an executive can direct, guide and influence the
behavior and work of others towards accomplishment of specific goals in a given situation.
Leadership is the ability of a manager to induce the subordinates to work with confidence and
zeal.

Leadership is the potential to influence behaviour of others. It is also defined as the

capacity to influence a group towards the realization of a goal. Leaders are required to develop
future visions, and to motivate the organizational members to want to achieve the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together and motivates it
towards goals.”

Characteristics of Leadership
1. It is a inter-personal process in which a manager is into influencing and guiding workers
towards attainment of goals.
2. It denotes a few qualities to be present in a person which includes intelligence, maturity and
personality.
3. It is a group process. It involves two or more people interacting with each other.
4. A leader is involved in shaping and moulding the behaviour of the group towards
accomplishment of organizational goals.
5. Leadership is situation bound. There is no best style of leadership. It all depends upon tackling
with the situations.

Importance of Leadership
Leadership is an important function of management which helps to maximize efficiency
and to achieve organizational goals.

The following points justify the importance of leadership in a concern.

1. Initiates action-
Leader is a person who starts the work by communicating the policies and plans to the
subordinates from where the work actually starts.
2. Motivation-
A leader proves to be playing an incentive role in the concern’s working. He motivates
the employees with economic and non-economic rewards and thereby gets the work from the
subordinates.
3. Providing guidance-
 A leader has to not only supervise but also play a guiding role for the subordinates.
Guidance here means instructing the subordinates the way they have to perform their work
effectively and efficiently.

4. Creating confidence-
Confidence is an important factor which can be achieved through expressing the work
efforts to the subordinates, explaining them clearly their role and giving them guidelines to
achieve the goals effectively. It is also important to hear the employees with regards to their
complaints and problems.
5. Building morale-
Morale denotes willing co-operation of the employees towards their work and getting
them into confidence and winning their trust. A leader can be a morale booster by achieving
full co-operation so that they perform with best of their abilities as they work to achieve
goals.
6. Builds work environment-
Management is getting things done from people. An efficient work environment helps in
sound and stable growth. Therefore, human relations should be kept into mind by a leader. He
should have personal contacts with employees and should listen to their problems and solve
them. He should treat employees on humanitarian terms.
7. Co-ordination-
Co-ordination can be achieved through reconciling personal interests with organizational
goals. This synchronization can be achieved through proper and effective co-ordination which
should be primary motive of a leader.
Role of a Leader
Following are the main roles of a leader in an organization :

1. Required at all levels-

Leadership is a function which is important at all levels of management. In the top level,
it is important for getting co-operation in formulation of plans and policies. In the middle and
lower level, it is required for interpretation and execution of plans and programmes framed by
the top management. Leadership can be exercised through guidance and counseling of the
subordinates at the time of execution of plans.
2. Representative of the organization-
A leader, i.e., a manager is said to be the representative of the enterprise. He has to
represent the concern at seminars, conferences, general meetings, etc. His role is to
communicate the rationale of the enterprise to outside public. He is also representative of the
own department which he leads.
3. Integrates and reconciles the personal goals with organizational goals-
A leader through leadership traits helps in reconciling/ integrating the personal goals of
the employees with the organizational goals. He is trying to co-ordinate the efforts of people
towards a common purpose and thereby achieves objectives. This can be done only if he can
influence and get willing co-operation and urge to accomplish the objectives.
4. He solicits support-
A leader is a manager and besides that he is a person who entertains and invites support
and co-operation of subordinates. This he can do by his personality, intelligence, maturity and
experience which can provide him positive result. In this regard, a leader has to invite
suggestions and if possible implement them into plans and programmes of enterprise. This
way, he can solicit full support of employees which results in willingness to work and thereby
effectiveness in running of a concern.
5. As a friend, philosopher and guide-
A leader must possess the three dimensional traits in him. He can be a friend by sharing
the feelings, opinions and desires with the employees. He can be a philosopher by utilizing his
intelligence and experience and thereby guiding the employees as and when time requires. He
can be a guide by supervising and communicating the employees the plans and policies of top
management and secure their co-operation to achieve the goals of a concern. At times he can
also play the role of a counselor by counseling and a problem-solving approach. He can listen
to the problems of the employees and try to solve them.

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.
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 himself 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.

POWER:

Power basically emanates from position or authority which can influence people
both positively and negatively.

For simplicity and understanding purposes power is usually classified into following categories:

1. Coercive Power-
This kind of power involves the usage of threat to make people do what one desires. In
the organizational set up, it translates into threatening someone with transfer, firing,
demotions etc. it basically forces people to submit to one’s demand for the fear of losing
something.
2. Reward Power-
As the name suggests, this type of power uses rewards, perks, new projects or training
opportunities, better roles and monetary benefits to influence people. However an interesting
 aspect of this type of power is that, it is not powerful enough in itself, as decisions related to
rewards do not rest solely with the person promising them, because in organizations, a lot of
other people come into play like senior managers and board.
3. Legitimate Power-
This power emanates from an official position held by someone, be it in an organization,
beurocracy or government etc. The duration of this power is short lived as a person can use it
only till the time he/she holds that position, as well as, the scope of the power is small as it is
strictly defined by the position held.
4. Expert Power-
This is a personal kind of power which owes its genesis to the skills and expertise
possessed by an individual, which is of higher quality and not easily available. In such a
situation, the person can exercise the power of knowledge to influence people. Since, it is
very person specific and skills can be enhanced with time; it has more credibility and respect.
5. Referent Power-
This is a power wielded by celebrities and film stars as they have huge following
amongst masses who like them, identify with them and follow them. Hence, they exert lasting
influence on a large number of people for a large number of decisions; like from what car to
buy to which candidate to choose for a higher office in the country.

What is power in management?

Power is the ability to influence the behavior of others with or without resistance by
using a variety of tactics to push or prompt action. Power is the ability to get things done.
People with power are able to influence others behavior to achieve a goal or objective.
It is the potential ability of a person or group to influence another person or group. It is
the ability to get things done the way one wants them to be done. Both formal and informal
groups and individuals may have power; it does not need an official position or the backing of
an institution to have power.
AUTHORITY:

Authority is characterized as the institutionalized and legal power inherent in a job role,
or position that allows the holder of the job to perform his or her responsibilities effectively. It is
assigned officially and legally. Authority means a particular authorization obtained from a
person's higher officer and based on which a person is entitled to do the work in an organization.
It is important for administrative functions. Without authority, no person can carry out his duties
with full responsibility.

This includes the right to monitor a situation, commit funds, issue orders, and demand them to be
obeyed. It is followed by accountability for one's acts and failures to execute actions.
Additionally, true authority often means that the authority is recognized by the aim.
In short, the Authority can be defined as:
 A legitimate right to a decision that may be given or assigned,
 Entitlement to command,
  The right to see that the decision is implemented properly and honestly
Characteristics of Authority
 Basis of Getting Things Done: Authority grants the right to do something in an
organization and to control the actions of the other employees of the organization. It
immediately contributes to the completion of certain activities for the achievement of the
stated goals.
 Legitimacy: Authority means a legal right open to superiors (within the company itself).
This type of right exists because of the practice of authenticity, custom, or norms agreed
upon in an institution. Based on an organizational hierarchy, the right of a manager to
influence the behavior of his subordinates is granted to him.
 Decision Making: A prerequisite of authority is decision-making. The manager may
order his subordinates to behave or not to act. The manager makes this form of decision
concerning the operation of an office.
 Implementation: Implementation affects the manager's personality. The subordinates or
group of subordinates should obey the manager's orders as to the execution of decisions.
One manager's personality factor may vary from another manager.

Features of Authority:
 It is an individual's legitimate right.

 It enables staff to be determined by the placeholder.

 This means the right to seek compliance.
 It is practiced in a certain manner to control the actions of subordinates.
 It moves within the organization from top to bottom.
 It is the ultimate organizing power, and it unites the various individuals who work in the
company.
 It is used to accomplish organizational goals.
 Differentiating authority from power. Power is referred to as the ability to influence the
attitude and behavior of an individual whereas authority is particular authorization
obtained from the higher end.

Differentiate Power and Authority:

Power is the capacity of a person to influence others and alter their actions, beliefs, and
behaviors. However, it's important to note that there is a difference between power vs.
influence. Authority is the legitimate power that a person or group is granted to practice over
others within an organization.

LEADERSHIP STYLES
Autocratic leadership style:
In this style of leadership, a leader has complete command and hold over their
employees/team. The team cannot put forward their views even if they are best for the team’s or
organizational interests. They cannot criticize or question the leader’s way of getting things
done. The leader himself gets the things done. The advantage of this style is that it leads to
speedy decision-making and greater productivity under leader’s supervision. Drawbacks of this
leadership style are that it leads to greater employee absenteeism and turnover. This leadership
style works only when the leader is the best in performing or when the job is monotonous,
unskilled and routine in nature or where the project is short-term and risky.

The Laissez Faire Leadership Style:

Here, the leader totally trusts their employees/team to perform the job themselves. He just
concentrates on the intellectual/rational aspect of his work and does not focus on the
management aspect of his work. The team/employees are welcomed to share their views and
provide suggestions which are best for organizational interests. This leadership style works only
when the employees are skilled, loyal, experienced and intellectual.

Democrative/Participative leadership style:

The leaders invite and encourage the team members to play an important role in decision-
making process, though the ultimate decision-making power rests with the leader. The leader
guides the employees on what to perform and how to perform, while the employees
communicate to the leader their experience and the suggestions if any. The advantages of this
leadership style are that it leads to satisfied, motivated and more skilled employees. It leads to an
optimistic work environment and also encourages creativity. This leadership style has the only
drawback that it is time-consuming.

Bureaucratic leadership:
Here the leaders strictly adhere to the organizational rules and policies. Also, they make
sure that the employees/team also strictly follows the rules and procedures. Promotions take
place on the basis of employees’ ability to adhere to organizational rules. This leadership style
gradually develops over time. This leadership style is more suitable when safe work conditions
and quality are required. But this leadership style discourages creativity and does not make
employees self-contented.
What is a Leadership Style?

A leadership style is a way in which a leader accomplishes their team’s objective by

motivating employees to work towards the common goal and focusing on their well-being.
Understanding leadership style is imperative for a team to work together and also keep growing
while embracing changes.
Here are some reasons why leadership style matters:

 Increases team engagement

 Improves team communication and collaboration
 Strengthens the effectiveness of the team

Different Types of Leadership

1. Democratic Leadership

A democratic leader makes decisions based on their team’s opinion and feedback. In
simpler words, they get everyone involved in the decision-making process.

However, this type of leadership cannot be used in the long run because of drawbacks like
losing the leader’s authority, debates, and miscommunication between team members. Here are
some scenarios in which you can adopt a democratic leadership style:

 New project that requires constant brainstorming

 Solve complex business problems
 Tight-knit or small organizations like start-ups, etc.

Here are some features of this leadership style

 Transparent conversations
 Everyone’s opinion counts
 Values collaboration and teamwork
 Encourages discussions

2. Autocratic Leadership

This is precisely the opposite of democratic leadership. The opinions of team members
are not considered while making any business decision. Instead, leaders expect others to adhere
to their decisions, which is not sustainable in the long run.

3. Laissez-faire Leadership

Laissez-faire means “let them do”. This leadership style is the least intrusive and ensures
that the decision-making authority lies with the team members.
This leadership style empowers team members and holds them accountable for their work. This
motivates many team members to put their best foot forward, improving the organisation’s
efficiency and productivity.
4. Strategic Leadership

Strategic leadership is when leaders use their skills and capabilities to help team members
and organization achieve their long-term goals. Strategic leaders strive to get the best out of
people or situations.

Here are some unique traits of strategic leaders

 They are interested in the well-being of others

 They are open-minded
 They are self-aware
 They are good at interpersonal communication

5. Transformational Leadership

Transformational leaders inspire others to achieve the unexpected. They aim to transform
and improve team members’ and organisations’ functions and capabilities by motivating and
encouraging them.

6. Transactional Leadership

This type of leadership is task-oriented, which means team members who meet the
leader’s expectations will be rewarded, and others will be punished. It is a prevalent leadership
style based on the action-and-reward concept.

Where leaders and followers are in some type of exchange relationship in order to get
needs met.

7. Coach-Style Leadership

This leadership style focuses on identifying and nurturing a team member’s strengths and
weaknesses. A coaching leader develops strategies that emphasize team members’ success.
Though this is similar to strategic and democratic leadership styles, the focus here is more on the
individual.

8. Bureaucratic Leadership

This kind of leadership style sticks to the rules. For example, they might listen to their
team members’ opinions while deciding.

Here are some of the benefits of this type of leadership

  Lowers the risk of favouritism among team members
 Increases creativity for some employees

BEHAVIOURAL LEADERSHIP

Types of behavioural leadership

There are various styles of behavioural leadership that you can learn to incorporate in your
professional life to become an effective leader. These styles may be more or less efficient in
several work environments depending on individual and situational factors. Some common types
of behavioural leadership include:

People-oriented leaders

People-oriented leaders inculcate behaviours that allow them to meet the requirements of the
people they interact with, such as their clients, supervisors and employees. Effective
interpersonal communication and networking drive these leaders to build lasting relationships
with those around them and inspire their teams to perform. They regularly enhance their relations
with their team members and motivate them to excel in their roles. Some common behaviours
associated with these kinds of leaders include:

 promoting collaboration
 rewarding the success of others
 observing and analyses their teams' progress
 mentoring their team members to perform better

Task-oriented leaders

Task-oriented leaders usually focus on setting up goals and achieving organisational objectives
as their primary focus is on task execution rather than people management. These leaders often
display authoritative behaviour and usually excel in well-structured and organised environments.
Their focus is on the outcome of their projects rather than the day-to-day developmental tasks
and people's progress leading up to that result. Some common behaviours associated with task-
oriented leaders include:

 project initiation
 organising company processes
 clarifying instructions to relevant stakeholders
 gathering necessary data
Participative leaders

Participative leaders ensure the active participation of all their team members in the decision-
making processes. These leaders focus on functional communication, collaboration and feedback
to enhance the workflow and productivity of their projects. They identify the strengths and
weaknesses of every team member and assign them tasks accordingly to maximise team
efficiency. This leadership style ensures that the leaders see and hear every member and consider
their feedback effectively. Some common behavioural traits of participative leaders may include:

 facilitating and coordinating team meetings

 asking for constructive feedback
 implementing suggestions for improvement
 delegating tasks to other team members for improved efficiency

Status-quo leaders

Status-quo leaders focus both on increasing company productivity and employee satisfaction.
These leaders follow a balanced approach to execute all timely tasks while also providing
support and constant encouragement to their fellow team members. Status-quo leaders prefer
following established organisational practices and mechanisms that brought results in the past
rather than changing an existing process. Their experience drives their actions more than the
vision for a future. Some common behaviours of status-quo leaders include:

 distributing tasks evenly to all employees

 asking for regular progress reports
 enforcing company policies in a fair way
 responding to positive and negative feedback neutrally

Indifferent leaders

Indifferent leaders monitor their team's overall performance from a distance and may not actively
contribute to the organisation's workflow. These leaders usually prioritise personal success and
advancement over team interaction or communication. A lack of cooperation between the leader
and team members typically characterises this leadership style. Such leaders may struggle to
maintain the productivity and efficiency of the team. Some common traits of indifferent leaders
include:

 avoiding questions from team members

 procrastination urgent tasks
 assigning unwanted tasks to employees
 self-interest preservation
Dictatorial leaders

Dictatorial leaders usually emphasise achieving results than the well-being of their team
members. These leaders may also exert pressure on employees to perform well, even during
challenging or demanding situations. While dictatorial leaders can often ensure high-quality
results for a company, their discouraging behaviour may cause high turnover rates due to lower
employee satisfaction. Some common behaviours associated with dictatorial leaders include:

 setting strict deadlines for employees

 disregarding excuses
 avoiding feedback from the team
 focussing on achieving short-term goals over employees' well-being

Country club leaders

Country club leaders prioritise their employees' overall happiness and satisfaction levels. These
leaders believe that a team that is looked after and cared for often yields more successful results.
Employees working with country club leaders show higher levels of trust, confidence and loyalty
for their leaders as the work environment is favourable for their professional growth and needs.
Some country club leaders may also sacrifice overall productivity to boost their team members'
morale and motivate them to perform better. Some common traits of such leaders include:

 responding positively to team member feedback

 focusing on employees' well-being
 safeguarding the interests and rights of employees
 supporting team members' decisions

SITUATIONAL LEADERSHIP

What is Situational Leadership?

The Situational Leadership method from Kenneth Blanchard and Paul Hersey holds that
managers must use different leadership styles depending on the situation. The model allows you
to analyze the needs of the situation you're in, and then use the most appropriate leadership style.
Depending on employees' competences in their task areas and commitment to their tasks, your
leadership style should vary from one person to another. You may even lead the same person one
way sometimes, and another way at other times.

The Leader’s Behavioral Leadership

• S1 - Telling / Directing –

High task focus, low relationship focus - leaders define the roles and tasks of the
'follower', and supervise them closely. Decisions are made by the leader and announced, so
communication is largely one-way. For people who lack competence but are enthusiastic and
committed. They need direction and supervision to get them started.

• S2 - Selling / Coaching –

High task focus, high relationship focus - leaders still define roles and tasks, but seeks
ideas and suggestions from the follower. Decisions remain the leader's prerogative, but
communication is much more two-way. For people who have some competence but lack
commitment. They need direction and supervision because they are still relatively inexperienced.
They also need support and praise to build their self-esteem, and involvement in decision-making
to restore their commitment.

• S3 - Participating / Supporting –

Low task focus, high relationship focus - leaders pass day-to-day decisions, such as task
allocation and processes, to the follower. The leader facilitates and takes part in decisions, but
control is with the follower. For people who have competence, but lack confidence or
motivation. They do not need much direction because of their skills, but support is necessary to
bolster their confidence and motivation.

• S4 - Delegating –

Low task focus, low relationship focus - leaders are still involved in decisions and
problem-solving, but control is with the follower. The follower decides when and how the leader
will be involved. For people who have both competence and commitment. They are able and
willing to work on a project by themselves with little supervision or support.

Effective leaders are versatile in being able to move around the matrix according to the
situation, so there is no style that is always right. However, we tend to have a preferred style, and
in applying Situational Leadership you need to know which one that is for you. Likewise, the
competence and commitment of the follower can also be distinguished in 4 quadrants.

In the Situational Leadership model, the leadership style has been divided into 4 types:
  S1: Telling - Telling style is associated with leaders who minutely supervise their
followers, constantly instructing them about why, how and when of the tasks that need to
be performed.
 S2: Selling - Selling style is when a leader provide controlled direction and is a little more
open and allows two way communication between him/herself and the followers thus
ensuring that the followers buy in the process and work towards the desired goals.
 S3: Participating - This style is characterized when the leaders seeks opinion and
participation of the followers to establish how a task should be performed. The leader in
this case tries creating relationship with the followers.
 S4: Delegating - In this case, the leader plays a role in decisions that are taken but passes
on or delegates the responsibilities of carrying out tasks to his followers. The leader
however monitors and reviews the process.

LEADER AS MENTOR AND COACH:

Leaders are naturals in developing people around them, because they aim to serve
others. They do that by investing the time to get to know their people and understanding
their strengths and weaknesses. Leaders are good listeners. They spend more time listening
than talking. By listening, they have a deeper understanding of their people’s capabilities.

There are a couple of ways in which leaders can develop their people. The two most
common ways are mentoring and coaching. In order for a leader to use each of these
methods, they need to have experience and background. It is important that they are
competent. When does a leader use one over the other? A leader uses experience and
knowledge to help or guide a less experienced or knowledgeable individual. The mentor will
use his/her expertise to get the person up to speed and share their experience, while
coaching is used with qualified people who have experience. Done right, coaching can help
improve the effectiveness and performance of the coachee. The coach uses his/her ability to
ask the right questions that make the coachee think through the situation help them come up
with the answer. A coach asks pointed questions that hold the coachee accountable for their
actions. In coaching, the person being coached is challenged with questions that make them
dig deep and come up with the answer that can help them move forward.

While a leader coaches and mentors others, they themselves also have mentors and
coaches that help them continue to help them develop. A leader believes in continuous
improvement and dedicates time to develop them. Leaders always give back to others. It is
this commitment that makes them special. To raise others we must equip ourselves with the
skills that make us capable to help others. Remember that leadership is about giving.
COACHING
Coaching has a specific, time-bound, and specific goal. There is more emphasis on achieving
a tough goal through dedication, focus and constant efforts, with constant feedback, suggestions
and motivation delivered by the coach. Depending on the way in which they are implemented,
there are four kinds of coaching −
 Query-based Coaching − The coach doesn’t give out answers when he gets a wrong
answer but keeps asking questions to his pupil, and lets the pupil find the answer on his
own.
 Hands-on Coaching − The coach demonstrates what he feels is the best way to tackle a
situation, and then leaves it to the pupil to either try the said method, or find a new one
himself.
 Intervention Coaching − The coach keeps himself limited to observing and allowing the
pupil to try and find out a solution, and only intervening when he feels like the attempt is
going to lead to a sure failure with serious consequences.
 Guidance Coaching − The coach lets the pupil operate mostly on auto-pilot. This mode
of coaching is generally adopted by coaches who have dedicated, focused and
hardworking pupils. All they have to do is to maintain the levels of ambition high by
giving reminders and pep-talks when necessary.

MENTORING

Mentoring goes beyond the boundaries of professional advice or guidance, and may
touch upon any aspect of the mentee’s life. The mentor’s job is to oversee and chart out the
proper path for career path of the mentee. This includes the mentor giving coaching and training
to the mentee as and when required, and also referring him to seek professional help from other
experts.
In short, coaching and training are more directed towards career development, whereas
mentoring targets both career and personal development of the employees. Although all of these
methods of teaching educate people on how to create a vision and how to set goals, none of
them guarantee optimum results.
And that’s because all these three activities rely heavily on the dedication and self-belief
of the person who is enrolled into this. A lot of effort and motivation is needed to rise above
yourself and be someone you always aspired to be.

DIFFERENCES BETWEEN MENTORING AND COACHING MENTORING –

Mentoring is an indefinite, relationship based activity with several specific but wide
ranging goals. It does not have to be a formal process. The mentor is a facilitator who works with
either an individual or a group of people over an extended time period. The agenda is open and
continues to evolve over the longer term. Mentoring seeks to build wisdom – the ability to apply
skills, knowledge and experience to new situations and processes.
Coaching - The focus is on meeting very specific objectives within a set period of time.
Coaching is mainly concerned with performance and the development of certain skills. It usually
takes place on a one-to-one basis and has a very specific purpose. There is usually a planned
programme with a much shorter timeframe than in mentoring, so the learning goals are usually
determined in advance. Mentoring and coaching can be ‘stand alone’ activities, but they can also
be used to complement each other.

LEADERSHIP DURING ADVERSITY AND CRISIS:

During a crisis, leaders should be accessible. Because it's not always possible to walk
around your facility and talk to colleagues in person, let employees know how they can best
reach you with status updates and questions. “Particularly during a crisis, employees have a need
to hear from their leaders frequently.

When leading through a crisis, most leaders are forced to think and behave in ways that
feel unfamiliar. Whether it’s a technological, financial, natural, or health crisis — at work or in
the community — crises demand that leaders take an emergency response plan and adapt it as
new evidence and factors present themselves.

Especially as organizational leaders face the coronavirus pandemic and associated

disruptions in the global economy, Klann recommends the following 5 actions to prepare and
respond when leading through a crisis.

5 Ways to Adapt and Lead In a Crisis

1. Seek credible information.

As a leader, it’s your responsibility to determine the most reliable, up-to-date information
from trustworthy news sources.

“Avoid getting information only from social media, and be wary of any news
organizations that have a political, financial, or activist agenda,” says Klann. “Their information
may be biased and, to varying degrees, inaccurate.” Instead, when leading through a crisis,
consult experts for the latest advice.

2. Use appropriate communication channels.

Once essential information is gathered, it should be disseminated to the entire

organization by every means possible. Transparency is key when leading in a crisis.
“Information is the oil that greases an organization and keeps it running smoothly,” Klann says.
“This is especially true during a crisis.”

Information is powerful because it:

 Reduces emotional distress caused by the unknown,

 Diminishes fear,
 Provides tactical guidance, and
 Demonstrates to employees that their leaders are concerned, involved, knowledgeable,
and on top of the situation.

How to communicate? Face-to-face first, whether in person or through virtual channels. With
a plethora of tools for hosting and personalizing virtual meetings, quarantines don’t have to stand
in the way of your group coming together face-to-face.

“Key information should be handled with the 3 R’s: review, repeat, reinforce,” Klann adds.
“If information is shared only once, it cannot be assumed everyone has received it — or if they
did, that they understand it.”

Repeating and reinforcing information on a daily basis and via multiple delivery methods
helps it to sink in and be retained.

“Remember, when information regarding what is happening is scarce or non-existent, people

revert to gossip and rumors and also tend to ‘MSU’ it. That is: Make Stuff Up,” Klann says.
“Invariably, what they make up will be worse than reality, no matter how bad reality is.” Get
more of our tips for communicating in a crisis.

3. Explain what your organization is doing about the crisis.

During a crisis, time is compressed. The initial onset of a crisis presents immense
pressure to act — and act quickly. Sometimes you have to begin tackling a problem before you
have a solid grasp of what’s happening.

If you are in charge, take charge. Be proactive; take initiative. Do something even if it
might be wrong; paralysis or over-analyzing is riskier. As you make decisions and take action
when leading through a crisis, communicate those actions truthfully and honestly.

As your response changes, keep employees updated with the 3 R’s, and remember that
everyone observing, living, or leading through a crisis views it through a unique lens. For
example, a paramedic will understand only that a hospital is overloaded; a hospital administrator
will only know that the generator isn’t working. Keep in mind that no one person will have a
complete, accurate picture of what’s going on.
4. Be present, visible, and available.

During a crisis, leaders should be accessible. Because it’s not always possible to walk
around your facility and talk to colleagues in person, let employees know how they can best
reach you with status updates and questions.

“Particularly during a crisis, employees have a need to hear from their leaders frequently.
When leaders appear calm, concerned, knowledgeable, and in charge, workers feel encouraged
and are more likely to have confidence that things are under control and will be fine,” says
Klann.

Understand that organizational protocol needs to account for flexible leadership ranks
during an emergency. Whoever is in charge is whoever is there. An entire operation can’t be
hamstrung because bureaucracy didn’t account for a key player being unavailable when an
emergency struck.

5. Dedicate organizational resources for future crises.

As any crisis transitions from its urgent phase, the time pressure will ease, as will the
need for split-second decisions. At that point, the plan must evolve into a more complex system
that looks at recovery and getting things back to normal — whatever the new normal looks like.

If a similar emergency unfolds in the future, will you be prepared? “All leaders will admit
that crisis planning — for example, having a Crisis Action Plan and setting aside resources for a
crisis — is important,” says Klann. “But experience shows that key resources are seldom placed
in reserve for contingencies. And if they are, they’re usually inadequate.”

While improvisation can’t be planned, thinking and team-building exercises can be built
into a training program that prepares everyone for a similar, future crisis.

EMPLOYEE COMPLAINT HANDLING:

Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which

an employee experiences about his job and it’s nature, about the management policies and
procedures. It must be expressed by the employee and brought to the notice of the management
and the organization.

Grievances take the form of collective disputes when they are not resolved. Also they
will then lower the morale and efficiency of the employees. Unattended grievances result in
frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism, etc. In short,
grievance arises when employees’ expectations are not fulfilled from the organization as a result
of which a feeling of discontentment and dissatisfaction arises. This dissatisfaction must crop up
from employment issues and not from personal issues.
Grievance may result from the following factors-

a. Improper working conditions such as strict production standards, unsafe workplace, bad
relation with managers, etc.
b. Irrational management policies such as overtime, transfers, demotions, inappropriate salary
structure, etc.
c. Violation of organizational rules and practices.

Here’s a list of leading causes of Employee Grievances:

1. Undesirable working conditions in physical terms.
2. Changes without prior notice.
3. Poor employee relations.
4. Improper wage adjustments.
5. Dissatisfactory office policies in case of:
6. Promotion
7. Demotion
8. Transfer
9. Discharge
10. Leaves
11. Overtime
12. Violation of laws.
13. Inadequate safety, health, and welfare amenities.
14. Labour-management hostility.
15. Incidences of workplace favouritism and nepotism.
16. Lack of organizational discipline.

The manager should immediately identify all grievances and must take appropriate steps
to eliminate the causes of such grievances so that the employees remain loyal and committed to
their work. Effective grievance management is an essential part of personnel management.

The managers should adopt the following approach to manage grievance effectively-

1. Quick action-
As soon as the grievance arises, it should be identified and resolved. Training must be
given to the managers to effectively and timely manage a grievance. This will lower the
detrimental effects of grievance on the employees and their performance.
2. Acknowledging grievance-
The manager must acknowledge the grievance put forward by the employee as
manifestation of true and real feelings of the employees. Acknowledgement by the manager
implies that the manager is eager to look into the complaint impartially and without any
bias. This will create a conducive work environment with instances of grievance reduced.
3. Gathering facts-
The managers should gather appropriate and sufficient facts explaining the grievance’s
nature. A record of such facts must be maintained so that these can be used in later stage of
grievance redressal.
 4. Examining the causes of grievance-
The actual cause of grievance should be identified. Accordingly remedial actions should
be taken to prevent repetition of the grievance.
5. Decisioning –
After identifying the causes of grievance, alternative course of actions should be thought
of to manage the grievance. The effect of each course of action on the existing and future
management policies and procedure should be analyzed and accordingly decision should be
taken by the manager.
6. Execution and review-
The manager should execute the decision quickly, ignoring the fact, that it may or may
not hurt the employees concerned. After implementing the decision, a follow-up must be
there to ensure that the grievance has been resolved completely and adequately.
An effective grievance procedure ensures an amiable work environment because it
redresses the grievance to mutual satisfaction of both the employees and the managers. It also
helps the management to frame policies and procedures acceptable to the employees. It becomes
an effective medium for the employees to express t feelings, discontent and dissatisfaction
openly and formally.

You can consider the following points to know that the employees are not happy:

Changed Behaviour:

Human behaviour reflects a lot about how they are feeling. Every good HR manager
should have the considerable emotional intelligence to handle a grievance. A routine direct
observation can be a great problem solver. Periodic one on one conversation, group meetings,
collective bargaining, and employee counselling sessions are the best occasions when direct
observation can be the highest effective.

Suggestion Boxes:

For anonymous complaints, it can be placed in different accessible locations within the
office. The fear of adverse managerial actions can be avoided through this method.

Open-door Policy:

It is one of the best employee empowerment techniques in the workplace. Open door
policy refers to open communication and transparency that allows them to be in touch with the
senior management to get their grievances addressed.

(An open-door policy is literally leaving your office door "open" to your employees.

It is a type of work culture that is being adopted by the growing corporate world. It
establishes an environment of trust and mutual respect between the employer and employee.
 It is a communication policy that encourages transparency, trust, openness,
communication, feedback, and discussion among its managers and employees.)

Opinion Surveys:

We can use these surveys in understanding different employee opinions

regarding workplace satisfaction. It may be conducted periodically in the form of questionnaires
and self-report measures.

Effective Exit-Interviews:

If answered honestly, exit interviews can provide constructive reflections on the impact
that the company culture has on its employees. By knowing the reasons for leaving the job,
employers can make the best possible changes with improved management policies.

Here's a piece of advice from us. Make sure you have a well-thought-out list of exit interview
questions on hand. It will undoubtedly aid in gathering accurate feedback from your current
employees.

8 Effective Steps To Handle Employee Grievances Most Effectively:

1. Create the system:

The first thing is to set up the grievance redressal system for your companies to help your
employees lodge complaints and grievances so that you can resolve them. Something that you
must consider here is-

The grievance procedure must be added to the employee handbook’s content so that all
can easily access it.

Someone must take responsibility for grievance receipts. You must ensure the employees
that their complaints are placed in confidence. Generally, it should be someone from the Human
Resources Department.

The place of receiving the complaints must be within reach to all. That is, it should be
located centrally. If you use a grievance box, it should be in the area of common accessibility.

As it might involve personal matters, it is essential to focus on confidentiality while

dealing with employees’ grievances. Involving the least number of people prevents the issue
from being widespread.

The complaints put forwards must be followed up timely. That is, no issue should be on
hold for a long time. It should follow a schedule to expect a certain level of responsiveness
within a specified period.
2. Acknowledge the grievance:

It would help if you listened more than you talk while dealing with employee grievances.
When your employees come to you lamenting over an issue, lend them your ear.

That doesn’t mean that you should resolve it immediately but so that your employees
know that their complaint is acknowledged. Let your employees know that you have received
their report and are willing to do something about it.

3. Investigate:

Not all issues qualify for a hearing. Generally, it is essential to review whether the
grievance is valid or not. Inquire about the incidents or situations and gather any relevant
information. It may not always be necessary but if the matter involves other staff, they will need
to be informed and given a chance to explain themselves and put forward their own shreds of
evidence.

Once the investigation is over, you can arrange a formal meeting.

4. Hold the formal meeting:

The employee with the grievance and all the relevant parties should be called to be
present in the formal hearing. The employee can put forward any evidence that backs up the
complaint and explain how they would like the problem to be resolved. Later on, you can
circulate the minutes of the meeting notes.

5. Take your decision and act accordingly:

This is the decision making phase. Once you have collected all the required information
and closely examined the situation, you should decide.

You might decide to accept the grievance in whole or part or reject it altogether. It would
help if you let the employee know in writing about the actions that you will take. At the same
time, you can advise the employee on how they should deal with similar situations.

6. Appeal process:

Your employee might not accept your decision and has the right to an appeal. Here again,
your grievance policy should outline the terms and conditions of the appeal process.

It should start with an appeal letter written by the employees, informing them why they
want the decision to be reconsidered. To ensure impartiality, the appeal should be heard by
another manager or supervisor who was not a part of the first meeting.

An appeal hearing with new evidence should follow this. The decision of the same should
be informed to the employee in writing. If your employee is still not satisfied, it can either be
mediated or escalated to the employment tribunal.
7. Review the situation:

It’s always healthy to have an objective look back at your decisions. If the employee is
happy with the resolution, you were good at settling the issue. In fact, it can prove significant to
your company culture.
If the prevailing policy ensures justice, it can foster a sense of pride and accountability in the
employees’ work. That’s the benefit of implementing a fast and effective grievance procedure.

8. Uproot the main cause of grievance:

Your aim is to go for a long-lasting solution. That is, a formal complaint should be
addressed once and for all. This prevents your employees from coming back again and again
with the same issue.

The key solution here lies in identifying the root cause of the problem and making sure to
solve the problem completely, with the scope of adjustments, if necessary.

CUSTOMER COMPLAINT HANDLING SYSTEM:

Customers get angry for a variety of reasons—some justified, some not. Anyone who
deals with customers will likely encounter rude or angry individuals once and awhile. How you
respond can make the difference between a customer who feels satisfied with the resolution and
one who vows never to patronize your business again.

Talking to an angry customer is never easy but following these steps can help to put your
customers at ease and show them that you want to help so you can get to a resolution much
quicker. Handling angry customers is just part of the customer service industry but it isn’t the
end of the world. In fact, helping customers find solutions to their problems can be quite
rewarding and actually build loyalty when handled correctly.
(It is vitally important to handle a customer complaining about your service or products
empathetically.

In addition, a strong communication structure is required, in order to stay in control of the

conversation and to achieve a successful outcome. Crucially, a customer complaint well handled
can win you a lifelong customer, who remains loyal to your organisation.

Here are the 7 steps to follow when a customer complains:

1. Listen carefully to the person who is angry.

This requires active listening which means you need to stop what you’re doing to
concentrate. An angry customer needs to know that they are being heard and that you are fully
engaged in the conversation. Concentrate solely on what the customer is telling you. Make notes
of the key facts and their concerns, so that you have a record of the conversation to refer to in the
future.
2. Let your customer vent for a few minutes if necessary.
A really angry customer sometimes needs to vent their frustrations. Give them a chance
to do so as long they are not using obscenities or abusive language. Don’t interrupt. Remain calm
and in control. Above all, remember that you are representing your company and they are not
attacking you personally.
3. Show empathy for your customer’s concerns.
Let them know that you sincerely care about the problem even if you don’t agree with
their comments. If you or your company made a mistake, admit it. If it is a misunderstanding,
you can respond in a supportive, concerned tone of voice, “I can see how that would be
incredibly frustrating for you.” You are not necessarily agreeing with what the customer is
saying, but respecting how he or she perceives and feels about the situation.
4. Thank your customer for complaining.
Yep. Even when customers are being a bit nasty, you can begin to change the tone of the
conversation dramatically by sincerely thanking them for bringing the problem to your attention.
This shows the customer that you genuinely care about what they are sharing and you appreciate
the opportunity to resolve the problem.
5. Sincerely apologize even if you are not the cause of the problem.
It really doesn’t matter who caused the problem. Sometimes the customer is the one who
made the error. What you are apologizing for is the fact that they are upset about the situation.
An apology implies ownership. It lets the customer know that you are going to help them
through the process. When said sincerely, the words “I’m sorry” can eliminate as much as 95%
of a person’s anger. This will help your customer to calm down and be more open to problem
resolution.
6. Get the facts.
Now that the customer has calmed down and feels you have heard his or her side, begin
asking questions. Be careful not to speak scripted replies, but use this as an opportunity to start a
genuine conversation, building a trusting relationship with your customer. To help you
understand the situation, as open-ended questions to try to get as many details as possible.
7. Offer a solution.
This happens only after you have sufficient details. Know what you can and cannot do
within your company’s guidelines. Making a promise you cannot commit to will only set you
back. Remember, when offering a solution, be courteous and respectful. Let the customer know
you are willing to take ownership of the issue and tell them what you are going to do to solve the
problem. If an employee in another department is better equipped to fix it, help make the
transition smooth by explaining the problem so your customer doesn’t need to repeat their story.

MOTIVATION :

Motivation is the word derived from the word ’motive’ which means needs, desires,
wants or drives within the individuals.
 Motivation in management refers to the steps managers can take to inspire their teams to
achieve more and to support their workplace experience. When a company has managers who
motivate their teams, they may find an overall increase in productivity and achievement.

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.

Team motivation:”
Motivation plays an impeccably valuable role in any organization. It is a trait that should
be instilled in every employee of an organization, despite their designation or responsibilities.
Having stated that, it is imperative that senior management looks at ways of increasing team
motivation within an organization.
Team structures may vary depending on the function in an organization that is assigned to
a group of people to the mere fact of a group of people belonging to an organization.
Whatever the nature of the team formation is, it is important that such groups of people
falling into one or more teams act in harmony and in line with an organization's ultimate goals.

Two Main Approaches for Team Motivation

1. Negative Team Motivation

On the outset you may feel that some managers really enjoy belittling employees and
shouting at them all the time.
Such approach to motivation is guided by the fear factor principal and is a very primary
approach; one that we know from our childhood. Therefore, the effects of such negative
motivational techniques will surely be effective in short term as against the desired result of long
term.
Some managers also tend to set unrealistic goals before their teams in hopes of getting
team members to work harder and more effectively.
 However, as this delusion takes its stance, employees will become understanding of the
unrealistic nature of the goals and also will feel demotivated at the same time due to the lack of
achievement orientation.
2. Positive Team Motivation
Since the primary approach of negative motivation techniques have not brought about
effective results, more and more managers have now turned to positive motivational techniques.
Guiding a team's motivation based on positive reinforcement involves a few steps:
 You will need to understand individual strengths and weaknesses and how these strengths
and weaknesses affect the person and his/her team when operating within a team.
 Building self-esteem of both the team and individuals.
 Assigning value to each team member (e.g., seeking their opinion, sharing information
and allowing their contribution to play a role in team decisions).

Team Motivation
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:

1. The team’s objective should well align and synchronize with the team members needs
and requirements.
2. Give in written the team’s mission and ensure that all understand it (as mission is a
foundation based on which the team performs).
3. For maintaining motivation, the team should be given challenges (which must be difficult
but achievable) consistently.
4. Giving a team responsibility accompanied by authority can also be a good motivator for
the team to perform.
5. 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.
6. Effective and true leaders can develop environment for the team to motivate itself. They
provide spur for self- actualization behaviours of team members.
7. 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.
8. 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.
9. 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.
 10. 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.

MOTIVATION THEORIES

Maslow’s Hierarchy of Needs Theory

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in
1943. This theory is a classical depiction of human motivation. This theory is based on the
assumption that there is a hierarchy of five needs within each individual. The urgency of these
needs varies. These five needs are as follows-

1. Physiological needs- These are the basic

needs of air, water, food, clothing and
shelter. In other words, physiological needs
are the needs for basic amenities of life.
2. Safety needs- Safety needs include physical,
environmental and emotional safety and
protection. For instance- Job security,
financial security, protection from animals,
family security, health security, etc.
3. Social needs- Social needs include the need
for love, affection, care, belongingness, and
friendship. FIGUR
4. Esteem needs- Esteem needs are of two Maslow’s Need Hierarchy Model
types: internal esteem needs (self- respect,
confidence, competence, achievement and
freedom) and external esteem needs
(recognition, power, status, attention and
admiration).
5. Self-actualization need- This include the
urge to become what you are capable of
becoming/what you have the potential to
become. It includes the need for growth and
self-contentment. It also includes desire for
gaining more knowledge, social- service,
creativity and being aesthetic. The self-
actualization needs are never fully satiable.
As an individual grows psychologically,
opportunities keep cropping up to continue
growing.
According to Maslow, individuals are motivated
by unsatisfied needs. As each of these needs is
significantly satisfied, it drives and forces the
next need to emerge. Maslow grouped the five
needs into two categories - Higher-order
needs and Lower-order needs. The
physiological and the safety needs constituted the
lower-order needs. These lower-order needs are
mainly satisfied externally. The social, esteem,
and self-actualization needs constituted the
higher-order needs. These higher-order needs are
generally satisfied internally, i.e., within an
individual. Thus, we can conclude that during
boom period, the employees lower-order needs
are significantly met.

Implications of Maslow’s Hierarchy of Needs Theory for Managers

As far as the physiological needs are concerned, the managers should give employees appropriate salaries t
purchase the basic necessities of life. Breaks and eating opportunities should be given to employees.

As far as the safety needs are concerned, the managers should provide the employees job security, safe an
hygienic work environment, and retirement benefits so as to retain them.

As far as social needs are concerned, the management should encourage teamwork and organize social events

As far as esteem needs are concerned, the managers can appreciate and reward employees on accomplishin
and exceeding their targets. The management can give the deserved employee higher job rank/position in th
organization.

As far as self-actualization needs are concerned, the managers can give the employees challenging jobs i
which the employees’ skills and competencies are fully utilized. Moreover, growth opportunities can be give
to them so that they can reach the peak.

The managers must identify the need level at which the employee is existing and then those
needs can be utilized as push for motivation.

Limitations of Maslow’s Theory

o It is essential to note that not all employees are governed by same set of needs. Different
individuals may be driven by different needs at same point of time. It is always the most
powerful unsatisfied need that motivates an individual.
o The theory is not empirically supported.
o The theory is not applicable in case of starving artist as even if the artist’s basic needs are
not satisfied, he will still strive for recognition and achievement.
HERZBERG’S TWO-FACTOR
FACTOR THEORY OF MOTIVATION
In 1959, Frederick Herzberg, a behavioural scientist proposed a two two-factor
factor theory or the
motivator-hygiene
hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg,
the opposite of “Satisfaction” is “No satisfaction” and the oopposite
pposite of “Dissatisfaction” is “No
Dissatisfaction”.

Herzberg classified these job factors into two categories

categories-

1. Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to pospositive
itive satisfaction for long-term.
long But if
these factors are absent/if these factors are non
non-existant
existant at workplace, then they lead to
dissatisfaction.
In other words, hygiene factors are those factors which when adequate/reasonable in a job,
pacify the employees and do not make them dissatisfied. These factors are extrinsic to work.
Hygiene factors are also called as dissatisfiers or maintenance factors as they are required
to avoid dissatisfaction. These factors describe the job environment/scenario. The
Th hygiene
factors symbolized the physiological needs which the individuals wanted and expected to be
fulfilled. Hygiene factors include:
o Pay: The pay or salary structure should be appropriate and reasonable. It must be equal
and competitive to those in the same industry in the same domain.
o Company Policies and administrative policies: The company policies should not be
too rigid. They should be fair and clear. It should include flexible working hours, dress
code, breaks, vacation, etc.
o Fringe benefits: The employees should be offered health care plans (mediclaim),
benefits for the family members, employee help programmes, etc.
o Physical Working conditions: The working conditions should be safe, clean and
hygienic. The work equipments should be updated and wel well-maintained.
maintained.
o Status: The employees’ status within the organization should be familiar and retained.
 o Interpersonal relations: The relationship of the employees with his peers, superiors
and subordinates should be appropriate and acceptable. There should be no conflict or
humiliation element present.
o Job Security: The organization must provide job security to the employees.
2. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as
motivators. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance.
These factors are called satisfiers. These are factors involved in performing the job.
Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit. Motivational factors
include:
o Recognition: The employees should be praised and recognized for their
accomplishments by the managers.
o Sense of achievement: The employees must have a sense of achievement. This
depends on the job. There must be a fruit of some sort in the job.
o Growth and promotional opportunities: There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
o Responsibility: The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control but
retain accountability.
o Meaningfulness of the work: The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
Limitations of Two-Factor Theory
The two factor theory is not free from limitations:

1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may
spoil the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his job
acceptable despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of
employees when they are enquired the sources of satisfaction and dissatisfaction at work.
They will blame dissatisfaction on the external factors such as salary structure, company
policies and peer relationship. Also, the employees will give credit to themselves for the
satisfaction factor at work.
6. The theory ignores blue-collar workers.
Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must
make sure that the work is stimulating and rewarding so that the employees are motivated to
work and perform harder and better.

This theory emphasize upon job-enrichment so as to motivate the employees. The

job must utilize the employee’s skills and competencies to the maximum. Focusing on the
motivational factors can improve work-quality.

Theory X and Theory Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees):

1. one of which is negative, called as Theory X and

2. the other is positive, so called as Theory Y
According to McGregor, the perception of managers on the nature of individuals is based on
various assumptions.

Assumptions of Theory X
 An average employee intrinsically does not like work and tries to escape it whenever
possible.
 Since the employee does not want to work, he must be persuaded, compelled, or warned
with punishment so as to achieve organizational goals. A close supervision is required on
part of managers. The managers adopt a more dictatorial style.
 Many employees rank job security on top, and they have little or no aspiration/ ambition.
 Employees generally dislike responsibilities.
 Employees resist change.
 An average employee needs formal direction.
Assumptions of Theory Y
 Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
 Employees may not require only threat, external control and coercion to work, but they can
use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.
 If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
 An average employee can learn to admit and recognize the responsibility. In fact, he can
even learn to obtain responsibility.
 The employees have skills and capabilities. Their logical capabilities should be fully
utilized. In other words, the creativity, resourcefulness and innovative potentiality of the
employees can be utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees’ nature and behaviour
at work, while Theory Y presents an optimistic view of the employees’ nature and behaviour at
work. If correlate it with Maslow’s theory, we can say that Theory X is based on the assumption
that the employees emphasize on the physiological needs and the safety needs; while Theory X is
based on the assumption that the social needs, esteem needs and the self-actualization needs
dominate the employees.

Implications of Theory X and Theory Y

 Quite a few organizations use Theory X today. Theory X encourages use of tight control
and supervision. It implies that employees are reluctant to organizational changes. Thus, it
does not encourage innovation.
 Many organizations are using Theory Y techniques. Theory Y implies that the managers
should create and encourage a work environment which provides opportunities to
employees to take initiative and self-direction. Employees should be given opportunities to
contribute to organizational well-being.

Theory Y encourages decentralization of authority, teamwork and participative decision

making in an organization. Theory Y searches and discovers the ways in which an
employee can make significant contributions in an organization. It harmonizes and
matches employees’ needs and aspirations with organizational needs and aspirations.