BMS 2nd Module-Leadership and motivation |Business management and start ups|1st sem B.Com

 

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Business Management and Start ups(BMS)

Module 2

Leadership and motivation

BMS-Module 1 Principles and functions of management new NEP syllabus

Leadership Concept

Leadership may be defined as a process of influencing group activities towards the achievement of certain goals. Thus, the leader is a person in a group who is capable of influencing the group to work willingly. He guides and directs other people and provides purpose and direction to their efforts. The leader is a part of the group that he leads, but he is distinct from the rest of the group. 

As defined by George R. Terry “Leadership is the activity of influencing people to strive willingly for group objectives”. Leadership naturally implies the existence of a leader and followers as well as their mutual interaction. It involves inter-personal relation, which sustains the followers accepting the leader’s guidance for accomplishment of specified goals. Managers have to guide and lead their subordinates towards the achievement of group goals. Therefore, a manager can be more effective if he is a good leader. He does not depend only on his positional power or formal authority to secure group performance but exercises leadership influence for the purpose. 

As a leader he influences the conduct and behaviour of the members of the work team in the interest of the organisation as well as the individual subordinates and the group as a whole. But leadership and management are not the same thing.  Leadership is the process which influences the people and inspires them to willingly accomplish the organisational objectives. Thus, a manager is more than a leader. On the other hand, a leader need not necessarily be a manager

 Thus, managerial leadership has the following characteristics:

 i) It is a continuous process whereby the manager influences, guides and directs the behaviours of subordinates. 

ii) The manager-leader is able to influence his subordinates behaviour at work due to the quality of his own behaviour as leader. 

iii) The purpose of managerial leadership is to get willing cooperation of the work group in the achievement of specified goals. 

iv) The success of a manager as leader depends on the acceptance of his leadership by the subordinates. 

v) Managerial leadership requires that while group goals are pursued, individual goals are also achieved.

PM-Unit 3-Product and Pricing strategy New

IMPORTANCE OF MANAGERIAL LEADERSHIP 

The importance of managerial leadership in an organisation arises from the basic nature of the managerial and leadership roles of managers. Combination of these roles invariably leads to not only effective task performance and fuller achievement of organisation goals but also human satisfaction all round. This is because management is based on the formal authority of managers. 

Whereas, being leaders of work groups enables managers to achieve results on the basis of inter-personal relations. The leader manager identifies himself with the work group. He acts as an intermediary between his subordinates and the top management. He takes personal interest in the development of his subordinates, helps them in overcoming individual problems through advice and counselling, creates appropriate work environment and builds up team spirit. As a result the leader manager is able to develop better team work. The subordinates willingly accept his advice, guidance and direction and are inspired as a group to accomplish the specific goals.

Principles of marketing Unit 2 Consumer behaviour and market segmentation

Principles of marketing unit-1  notes as per NEP syllabus 2021-22 click here

On habits-A.G. Gardiner

Theories of Leadership 

I) Likert’s Management System: 

Rensis Likert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified a four-fold model of management systems.  

The four systems of management system or the four leadership styles identified by Likert are: 

System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper echelons of the hierarchy. The superior has no trust and confidence in subordinates. The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The teamwork or communication is very little and the motivation is based on threats. 

System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is very little and motivation is based on a system of rewards. 

System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not complete confidence in subordinates. Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job. 

System 4 - Participative: Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy. There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and participation. The nature of these four management systems has been described by Likert through a profile of organizational characteristics. 

On the basis of this profile, Likert administered a questionnaire to several employees belonging to different organizations and from different managerial positions (both line and staff). His studies confirmed that the departments or units employing management practices within Systems 1 and 2 were the lease productive, and the departments or units employing management practices within Systems 3 and 4 were the most productive.

 II) Blake and Mouton’s Managerial Grid Theory:

Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal of leadership styles through a managerial grid (sometimes called leadership grid). The grid depicted two dimensions of leader behavior, concern for people (accommodating people’s needs and giving them priority) on y-axis and concern for production (keeping tight schedules) on x-axis, with each dimension ranging from low (1) to high (9), thus creating 81 different positions in which the leader’s style may fall. 

The five resulting leadership styles are as follows: 

1. Impoverished Management (1, 1): Managers with this approach are low on both the dimensions and exercise minimum effort to get the work done from subordinates. The leader has low concern for employee satisfaction and work deadlines and as a result disharmony and disorganization prevail within the organization. The leaders are termed ineffective wherein their action is merely aimed at preserving job and seniority. 

2. Task management (9, 1): Also called dictatorial or perish style. Here leaders are more concerned about production and have less concern for people. The style is based on theory X of McGregor. The employees’ needs are not taken care of and they are simply a means to an end. The leader believes that efficiency can result only through proper organization of work systems and through elimination of people wherever possible. Such a style can definitely increase the output of organization in short run but due to the strict policies and procedures, high labour turnover is inevitable. 

3. Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to maintain a balance between goals of company and the needs of people. The leader does not push the boundaries of achievement resulting in average performance for organization. Here neither employee nor production needs are fully met. 

4. Country Club (1, 9): This is a collegial style characterised by low task and high people orientation where the leader gives thoughtful attention to the needs of people thus providing them with a friendly and comfortable environment. The leader feels that such a treatment with employees will lead to self-motivation and will find people working hard on their own. However, a low focus on tasks can hamper production and lead to questionable results. 

5. Team Management (9, 9): Characterized by high people and task focus, the style is based on the theory Y of McGregor and has been termed as most effective style according to Blake and Mouton. The leader feels that empowerment, commitment, trust, and respect are the key elements in creating a team atmosphere which will automatically result in high employee satisfaction and production.

III) House’s Path Goal Theory: 

The theory was developed by Robert House and is based on the premise that an employee’s perception of expectancies between his effort and performance is greatly affected by a leader’s behaviour. The leaders help group members in attaining rewards by clarifying the paths to goals and removing obstacles to performance. They do so by providing the information, support, and other resources which are required by employees to complete the task. House’s theory advocates servant leadership. As per servant leadership theory, leadership is not viewed as a position of power. Rather, leaders act as coaches and facilitators to their subordinates. 

According to House’s path goal theory, a leader’s effectiveness depends on several employee and environmental contingent factors and certain leadership styles. 

The four leadership styles are: 

• Directive: Here the leader provides guidelines, make the subordinates know what is expected of them, sets performance standards for them, and controls behaviour when performance standards are not met. He makes judicious use of rewards and disciplinary action. 

• Supportive: The leader is friendly towards subordinates and displays personal concern for their needs, welfare, and well-being. This style is the same as people-oriented leadership. 

• Participative: The leader believes in group decision-making and shares information with subordinates. He consults his subordinates on important decisions related to work, task goals, and paths to resolve goals.

 • Achievement-oriented: The leader sets challenging goals and encourages employees to reach their peak performance. The leader believes that employees are responsible enough to accomplish challenging goals. 

The theory further states that the relationship between a leader’s style and effectiveness is dependent on the following variables: 

• Employee characteristics: These include factors such as employees’ needs, locus of control, experience, perceived ability, satisfaction, willingness to leave the organization, and anxiety. 

• Characteristics of work environment: These include factors such as task structure and team dynamics that are outside the control of the employee. For example, for employees performing simple and routine tasks, a supportive style is much effective than a directive one. Similarly, the participative style works much better for non-routine tasks than routine ones. When team cohesiveness is low, a supportive leadership style must be used whereas in a situation where performance-oriented team norms exist, a directive style or possibly an achievement-oriented style works better.

IV) Fred Fiedler’s Situational Leadership theory/Contingency Model: 

According to Fielder, if an organization attempts to achieve group effectiveness through leadership, then there is a need to assess the leader according to an underlying trait, assess the situation faced by the leader, and construct a proper match between the two. 

Leader’s trait

In order to assess the attitudes of the leader, Fiedler developed the ‘least preferred co-worker’ (LPC) scale in which the leaders are asked about the person with whom they least like to work. The scale is a questionnaire consisting of 16 items used to reflect a leader’s underlying disposition toward others. 

The items in the LPC scale are pleasant / unpleasant, friendly / unfriendly, rejecting / accepting, unenthusiastic / enthusiastic, tense / relaxed, cold / warm, helpful / frustrating, cooperative / uncooperative, supportive / hostile, quarrelsome / harmonious, efficient / inefficient, gloomy / cheerful, distant / close, boring / interesting, self-assured / hesitant, open / guarded. Each item in the scale is given a single ranking of between one and eight points, with eight points indicating the most favourable rating. 

Fiedler states that leaders with high LPC scores are relationship oriented and the ones with low scores are task-oriented. The high LPC score leaders derived most satisfaction from interpersonal relationships and therefore evaluate their least preferred co-workers in fairly favourable terms. These leaders think about the task accomplishment only after the relationship need is well satisfied. On the other hand, the low LPC score leaders derived satisfaction from performance of the task and attainment of objectives and only after tasks have been accomplished, these leaders work on establishing good social and interpersonal relationships. 

Situational factor 

According to Fiedler, a leader’s behaviour is dependent upon the favorability of the leadership situation. Three factors work together to determine how favourable a situation is to a leader. 

These are: 

• Leader-member relations - The degree to which the leaders is trusted and liked by the group members, and the willingness of the group members to follow the leader’s guidance 

• Task structure - The degree to which the group’s task has been described as structured or unstructured, has been clearly defined and the extent to which it can be carried out by detailed instructions 

• Position power - The power of the leader by virtue of the organizational position and the degree to which the leader can exercise authority on group members in order to comply with and accept his direction and leadership 

• With the help of these three variables, eight combinations of group-task situations were constructed by Fiedler. These combinations were used to identify the style of the leader

Leadership Effectiveness 

The leader’s effectiveness is determined by the interaction of the leader’s style of behaviour and the favorableness of the situational characteristics. The most favourable situation is when leader-member relations are good, the task is highly structured, and the leader has a strong position power. Research on the contingency model has shown that task-oriented leaders are more effective in highly favourable (1, 2, 3) and highly unfavourable situation (7, 8), whereas relationship-oriented leaders are more effective in situations of intermediate favorableness (4, 5, 6). 

Modern Leadership styles in the changing world 

Charismatic Leadership

Charismatic leaders seek to fulfil organizational goals by instilling devotion. They scan and read the environment in which they operate to pick up the moods and concerns of individuals and larger audiences, and then hone their actions and words to suit the situation. They bring about the trust of the people through visible self-sacrifice and take personal risks in the name of their beliefs

The major behavioural attributes of charismatic leaders include:

• Sensitivity to the environment and member needs
• Articulation of a clear-cut vision shaped to the situation
• Effective use of body language and verbal language
• Personal risk taking and unconventional behaviour
• High self-belief
• Displaying confidence in follower’s ability

Charismatic leaders have the potential to elevate and transform an entire company. The danger lies in using such powers to create a personality-based cult that misguides people.

Transformational Leadership

Transformational leadership is one of the most popular leadership styles in the changing world and focuses on effecting revolutionary change in organizations through a commitment to the organization’s vision.

Transformational leaders sell the company’s defined vision, usually a radical vision,  by many ways, such as:

• Articulating the vision and explaining how to attain the vision in an appealing manner
• Establishing high levels of personal integrity to gain trust and inspire the members
• Applying passion and energy at work, and injecting such energy and enthusiasm to followers
• Leading from the front to demonstrate attitudes and actions for followers to emulate
• Motivating and rallying followers by constantly listening, soothing, and enthusing
• Developing a shared vision and appealing to people’s inborn desire to attain higher levels related to love, learning, leaving a legacy, and the like.

Transformational leadership has much in common with charismatic leadership, with the major difference relating to the scope. While transformational leadership focuses on organizational change, charismatic leadership may not have such a focus.

Visionary Leadership

A visionary leader dreams about the future and translates such dreams into specific, achievable goals and is able to articulate them with great inspiration to instil the commitment of others. They also back up such words with action.

Visionary leaders anticipate change and act proactively to handle the situation. Instead of the traditional leadership method of dominating and directing people, they adopt a partnership approach to create a shared sense of vision with the followers. They focus on opportunities rather than problems, and emphasise win/win rather than adversarial win/lose approach.

The major characteristics of visionary leadership include:

• Demonstrating personal integrity and radiating a sense of energy, vitality, and adherence to core values. They exercise moral leadership when elevated with power rather than becoming corrupted by power.
• Maintaining good relations, adopting a deeply caring approach to people, and treating them with warmth and respect.
• Inspiring people to better themselves and giving them a new sense of hope and confidence to do so.
• Transforming old mental maps or paradigms, and creating “out of the box” unconventional and innovative strategies to actualize the new vision through broad and systemic thinking keeping the big picture in mind.
• Developing team spirit and team learning initiatives.

Visionary leadership bases itself on a balanced expression of the spiritual, mental, emotional, and physical dimensions, and requires the presence of all such dimensions for success.

Transactional Leadership

Transactional leadership bases itself on getting things done through a clear chain of command and works on the assumption that rewards and punishment will motivate people.

Transactional Leaders negotiate a contract with subordinates that creates clear structures, makes explicit the requirement, and installs a formal system for rewards and discipline. The subordinate gets a salary and other benefits and the company gets complete authority over the subordinate in return. The subordinate becomes fully responsible for the allocated work and receives rewards for success or discipline for failure.

Transactional leaders follow a management by exception approach, wherein they do not give much attention to routine issues or excepted performance and rather pay attention to present issues.

The major characteristics of transactional leaders include:

• Reliance on standard forms of inducement, reward, punishment, and sanction to control followers.
• Motivating followers through goal setting and a simple and straightforward approach of rewards for desired performance and discipline for failure.
• Reinforcing subordinates to complete their side of the bargain successfully.

Among all the modern management styles, transactional leadership come the closest to traditional leadership styles, but it remains one of the modern leadership styles in a changing world, bearing some similarities with transformational leadership. The difference between transactional and transformational leadership is that while transformational leaders adopt a ‘selling’ style, transactional leaders adopts a ‘telling’ style.

Servant Leadership

Servant Leadership is based on the idea that leaders are servants first and leaders second. They divert from the traditional leadership style of dominating subordinates and telling them what to do.They rather empower the subordinate and act proactively to inspire them to perform. Such inspiration leads to collective efforts, the results of which turn out to be more than the sum of individual efforts.

Servant leader characteristics include:

• Takes the time and effort to help subordinates understand their strengths and weaknesses, and identify potential and higher purposes they could never attain on their own.
• Sees things from others perspective, exhibits patience, and shows empathy.
• Attaches importance on teamwork and relationship building.
• Remains moored in social and ethical considerations.
• Includes the employees in the decision-making process and empowers them to act, making servant leadership a form of democratic leadership.

The ten major characteristics of servant leadership is listening, empathy, healing relationships, awareness, persuasion, conceptualisation, foresight, stewardship, commitment to human resource development, and commitment to building community.

A unique feature of modern leadership styles in the changing world is that a leader rarely displays any one leadership style exclusively. Modern leaders remain competent to change their leadership style to suit the market-driven situation and work demands.

Situational Leadership

Situational Leadership  is a common-sense, contingency-based leadership model that consists of four common leadership styles. 

A Situational Leader employs one of four leadership styles that provide him or her with the highest probability of success in every situation they encounter.  Based on the objective assessment of those parameters, and with the responsibility of successfully and effectively influencing the follower, the leader responds to the situation with one of four leadership styles. 

Those styles are operationally defined by Task/Directive Behaviour and Relationship/Supportive Behaviour:

• Task/Directive Behaviour – the extent to which the leader tells the follower what to do, how to do it, where it needs to be done and when it needs to be completed

• Relationship/Supportive Behaviour – the extent to which the leader engages in open dialog with the follower, actively listens and provides recognition/reinforcement for task-related progress

 

CONCEPT OF MOTIVATION 

Motivation may be defined as the complex of forces inspiring a person at work to intensify his willingness to use his maximum capabilities for the achievement of certain objectives. Motivation is something that motivates a person into action and induces him to continue in the course of action enthusiastically. It determines the behaviour of a person at work. According to Dalton E. McFarland “Motivation refers to the way in which urges, drives, desires, aspirations, striving, or needs, direct control or explain the behaviour of human being.” 

The term ‘motivation’ is derived from the word ‘motive’. Motive may be defined as needs, wants, drives or impulses within the individual. Motives are expressions of a person’s needs and hence they are personal and internal. Motives give direction to human behaviour because they are directed towards certain ‘goals’ which may be conscious or sub-conscious. Motives or needs of a person are the starting point in the motivation process.

Importance or/Role of Motivation 

The following factors contribute to the significance of the role of motivation :

 1) Managers and organisational researchers cannot avoid a concern with the behaviour requirements of an organisation. Every organisation needs people (in addition to physical and financial resources) in order to function. 

2) Motivation as a concept is pervasive and a highly complex activity that affects and is affected by a host of factors in the organisational milieu. 

3) Organisational effectiveness becomes to some degree a question of management’s ability to motivate its employees, to direct at least a reasonable effort toward the goals of the organisation. 

4) As technology increases in complexity, machines tend to become necessary, but insufficient vehicles of effective and efficient operations. In other words, it becomes necessary for an organisation to ensure that it has employees who are both capable of using and willing to use the advanced technology to achieve organisational goals. 

5) Many organisations are now beginning to pay increasing attention to develop their employees as future resources (for talent bank) upon which they can draw as they grow and develop.

Contemporary Motivation Theories

The early management scholars laid a foundation that enabled managers to better understand their workers and how best to motivate them. Since then, new theories have given us an even better understanding of worker motivation. Four of these theories are explained in this section: the expectancy theory, the equity theory, the goal-setting theory, and reinforcement theory.

Expectancy Theory

Expectancy theory, focuses on the link between motivation and behaviour. According to expectancy theory, the probability of an individual acting in a particular way depends on the strength of that individual’s belief that the act will have a particular outcome and on whether the individual values that outcome. The degree to which an employee is motivated depends on three important relationships, shown in.

1. The link between effort and performance, or the strength of the individual’s expectation that a certain amount of effort will lead to a certain level of performance
2. The link between performance and outcome, or the strength of the expectation that a certain level of performance will lead to a particular outcome
3. The link between outcomes and individual needs, or the degree to which the individual expects the anticipated outcome to satisfy personal needs. Some outcomes have more valence, or value, for individuals than others do.

Equity Theory

Equity theory is based on individuals’ perceptions about how fairly they are treated compared with their coworkers. Equity means justice or fairness, and in the workplace it refers to employees’ perceived fairness of the way they are treated and the rewards they earn. 

For example, imagine that after graduation you were offered a job that paid $55,000 a year and had great benefits. You’d probably be ecstatic, even more so if you discovered that the coworker in the next cubicle was making $45,000 for the same job. But what if that same colleague were making $59,000 for the same job? You’d probably think it unfair, particularly if the coworker had the same qualifications and started at the same time as you did. Your determination of the fairness of the situation would depend on how you felt you compared to the other person, or referent. 

Employees evaluate their own outcomes (e.g., salary, benefits) in relation to their inputs (e.g., number of hours worked, education, and training) and then compare the outcomes-to-inputs ratio to one of the following: 

(1) the employee’s own past experience in a different position in the current organization, 

(2) the employee’s own past experience in a different organization, 

(3) another employee’s experience inside the current organization, or (4) another employee’s experience outside the organization.

According to equity theory, if employees perceive that an inequity exists, they will make one of the following choices:

• Change their work habits (exert less effort on the job)
• Change their job benefits and income (ask for a raise, steal from the employer)
• Distort their perception of themselves (“I always thought I was smart, but now I realize I’m a lot smarter than my coworkers.”)
• Distort their perceptions of others (“Joe’s position is really much less flexible than mine.”)
• Look at the situation from a different perspective (“I don’t make as much as the other department heads, but I make a lot more than most graphic artists.”)
• Leave the situation (quit the job)

Managers can use equity theory to improve worker satisfaction. 

Goal-Setting Theory

Goal-setting theory is based on the premise that an individual’s intention to work toward a goal is a primary source of motivation. Once set, the goal clarifies for the employee what needs to be accomplished and how much effort will be required for completion. 

The theory has three main components: 

(1) specific goals lead to a higher level of performance than do more generalized goals (“do your best”); 

(2) more difficult goals lead to better performance than do easy goals (provided the individual accepts the goal); and

(3) feedback on progress toward the goal enhances performance. Feedback is particularly important because it helps the individual identify the gap between the the actual performance and the ideal performance.

Reinforcement Theory

Reinforcement theory says that behaviour is a function of its consequences. In other words, people do things because they know other things will follow. So, depending on what type of consequences follows, people will either practice a behaviour or refrain from it. 

There are three basic types of consequences: positive, negative, and none. In general, people think of positive consequences as rewards, but a reward is anything that increases the particular behaviour. By contrast, punishment is anything that decreases the behaviour.

Consequences can operate differently for different people and in different situations. What is considered a punishment by one person may, in fact, will be a reward for another. Nonetheless, managers can successfully use reinforcement theory to motivate workers to practice certain behaviours and avoid others. Often, managers use both rewards and punishment to achieve the desired results.

Unit 3-Product and Pricing strategy New

Principles of marketing Unit 2 Consumer behaviour and market segmentation

Principles of marketing unit-1  notes as per NEP syllabus 2021-22 click here

 1st sem English as per new NEP syllabus 2021-22

First semester English Chapter 1 The Last Leaf

First semester English Chapter 2 All creatures great and small

First semester English Chapter 3 The Heart of a Tree

First semester English Chapter 4 Daughter

First semester English Chapter 5 The Ploughman

First semester English Chapter 6 My Teacher

First semester  English Chapter 8 A conversation with a reader

Additional English 

Sweets for Angels

On habits-A.G. Gardiner

The Imp and the crust

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