MGT 1 Chapter 6
MGT 1 Chapter 6
Pondo, MBA
Floriza S. Sialsa, MPA
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CHAPTER 6: LEADING
Learning Objective
The learners shall be able to discuss the nature of leading.
The learners shall be able to differentiate leading to managing.
Introduction
Leadership is granted at several levels in the hierarchy but at the same time
individual leadership is imperative. The leader is the figurative spokesman, the ultimate
coordinator, the chief participant in decisions as to goals, the principal change content
and the model to the organization.
LEADERSHIP DEFINED
Universal to all descriptions of leadership is the idea that leaders are individuals who,
by their actions, make possible the movement of a group of people to a common or shared
goal. Leadership on the other hand, is the ability to promote confidence and support
among people who are looked-for to realize organizational goals
Leadership Management
Definition Leadership means the ability Management comprises
of an individual to influence, directing and controlling a
motivate and enable others to group of one or more
contribute toward the people or entities for the
effectiveness and success of purpose of coordinating
the organizations of which and harmonizing that
they are members group towards
accomplishing a goal
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Leadership Management
Personality Styles Are often called brilliant and Tend to be rational, under
mercurial with great charisma. control problem solvers.
Yet, they are also often seen as They often focus on goals,
loners and private people. structures, personnel and
They are comfortable taking availability of resources.
risks, sometimes seemingly wild Managers’ personalities
and crazy risks. Almost all lean toward persistence,
leaders have high levels of strong will, analysis and
imagination intelligence
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THE LEADERSHIP USE OF POWER AND AUTHORITY
Leaders through their power and authority persuade people to do things. Power is
the ability to influence decisions and control resources. People with power typically have
the likelihood to use influence often. Charm and talent can assist attain power. Authority is
the formal right to get people do things or to control resources. It is just the organization
which can award authority.
2. Reward Power – it is the leader’s control over treasured rewards like salary increases
and recommendation for promotion. People obey with the leader’s wishes to obtain
theses rewards
3. Coercive Power – this is the ability of the leader to penalize others. Punishment could
be in the form of assignment to unwanted working hours, demotion and even firing.
4. Expert Power – this power stems on the special knowledge, skills and expertise the
leader possesses. People conform because they believe in and can learn from or
can gain from the expertise.
5. Referent Power – it is the ability to control based on faithfulness to leaders and the
group members’ aspiration to delight the person. People follow because of
admiration, personal fondness and a wish for approval or an ambition to be like the
leader
In addition to different kinds of power, leaders may make use of tactics that could
influence others to get things completed.
1. Leading by example – this means that the leader influences group members by
serving as encouraging model of pleasing behavior. A leader who leads by example
shows consistency between actions and words
2. Leading by values – this means that the leader influences group members by
expressing and demonstrating values that direct the behavior of others. Ideal values
for leaders to use could be mutual respect, trust, truthfulness, fairness, compassion
and doing good
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4. Rationality – this means application of reason and logic. Application of reason and
logic is best to leaders who are perceived by people to be knowledgeable and well-
educated
5. Ingratiation – this means using political skill so that people shall like the leader. A usual
way of doing this is to act in a friendly manner just before making a demand. Good
leaders treat people well to obtain cooperation when it is necessary.
8. Joking and Kidding – this is effective when a frank statement might be interpreted
as unsympathetic criticism
2. Power Motive
Power motivation is a strong longing to control others and resources and let
others do things on one’s behalf
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5. Good intellectual ability, knowledge and technical competence
Effective leaders are good problem-solvers and knowledgeable about the
business or technology for which they are accountable. They mix academic
intelligence with practical ability.
6. Sense of Humor
Humor eases pressure, neutralizes unfriendliness and helps build relationships
among employees in the workplace. The leader who cracks jokes
occasionally is likely to be perceived as approachable and friendly
7. Emotional Intelligence
Emotional intelligence includes self-confidence, empathy, passion for task
and visionary leadership. Effective leaders show good emotional intelligence
which is the ability to manage themselves and their relationships effectively.
8. Leadership Efficacy
It refers to a specific form of efficacy (or feeling effective) associated with the
level of confidence in the knowledge, skills and abilities associated with
leading others. It is the belief that a leader can complete a job when he takes
on his leadership role
Leaders must have certain behaviors and skills to be effective and not just
completely rely on traits alone. In reality leaders are neither born nor made but they are a
combination of genetic predisposition and learning.
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4. Provides emotional support to organizational members – an effective leader usually
gives encouragement and support. The emotional support improves morale and
productivity. A leader who has empathy with people and who is a warm person
shows emotional support in a natural way
5. Gives feedback and accepts feedback – the leader can influence the behavior of
organizational members with appropriate performance feedback. It informs
employees on how well they are doing, so wrong actions could be corrected.
Positive feedback promotes subordinates to continue the good works
6. Plays the role of servant leader – effective leaders believe that their chief mission is
to serve the needs of people under their leadership. The ability to help others is their
gauge in being effective. Qualities of a servant leader include patience, honesty,
good listening skills and appreciation of others. Servant leaders also have high level
of integrity
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ASSIGNMENT
L E T ‘ S E X A M I N E
Directions:
Let us find out if you have the potential to be a leader. Read the statements and
check the boxes that indicate how well these apply to you.
Add your scores and use the guide to interpret the result.
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15. I welcome criticism and do not
take them personally.
16. I take time to clarify the
expectations of other people.
17. I adopt an optimistic view
regarding challenges and see
setbacks as temporary.
18. I devote myself to learning new
skills and encourage others to do
the same.
Score Interpretation
18-42 points- You may need to work harder on your leadership skills. However,
developing yourself as leader also requires you to be a contributing member of a
team. Although leadership skills are valued in the world of business, learning how
to be an outstanding follower is also an important aspect of leadership. Work
harder to create balance of both.
42-64 points- You are doing a satisfactory job as a leader, but you have the
potential to perform much better. While you have the basic skills and
characteristics of an effective leader, you still need to develop other leadership
qualities. Take every opportunity to improve your skills. Examine the areas where
you are weak, and determine what you can do to develop these.
65-90 points- You are well on your way to becoming a good leader. However,
learning is a continuous process. One can never be too good in everything so
look at the areas where you have low marks, and figure out what you can do to
improve your performance in them.
Do not worry if your results seem to indicate that you are in the “wrong direction” in
terms of your leadership skills and potentials. This activity only gives a general overview of
your skills at present. How you go from here and what you will really become in the future
depend on your succeeding actions as you continue learning and gaining experience.
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Lesson 2: Motivation
Learning Objective
The learners shall be able to identify the different theories of motivation.
Introduction
MOTIVATION
Abraham Maslow is among the famous psychologist of the twentieth century. The
theory is founded on a simple principle that human beings have needs that are
hierarchically ranked. As these basic needs are satisfied, people start looking satisfy higher
order needs.
a. Physiological needs – the need for air, food, shelter and water
b. Safety needs – the need to be free from danger and pain
c. Social needs – the needs of bonding with other human beings, being loved,
and forming lasting attachments with them
d. Esteem needs – the desire to be respected by one’s peers, feel important and
be appreciated
e. Self-actualization needs – the need to become everything one is capable of
becoming
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Maslow’s theory found apparent uses in business settings. Understanding what
people need gives signs to understanding them. The hierarchy is an organized way of
thinking about the different needs employees may have at any given point and explains
different reasons they may have to comparable treatment.
In contrast, motivators are factors that are inherent to the job, such as achievement,
recognition, interesting work, increased responsibilities, and advancement and growth
opportunities.
Those who have high need for achievement have a strong need to be successful.
Adults are preoccupied with doing things better than they did in the past. These individuals
are constantly striving to improve their performance. They relentlessly focus on goals,
particularly stretch goals that are challenging in nature.
Individuals who have a high need for affiliation want to be liked and accepted by
others. When given a choice, they prefer to interact with others and be with friends. Their
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emphasis on harmonious interpersonal relationships may be an advantage in jobs and
occupations requiring frequent interpersonal interaction
Those with a high need for power desire to influence others and control their
environment. The need for power is observed as an important trait for effectiveness in
managerial and leadership positions.
PROCESS-BASED THEORIES
1. Equity Theory
Inputs are the contributions people feel they are making to the environment. The
person’s hard work, loyalty to the organization, amount of time with the organization and
level of education, training and skills are considered inputs. Outcomes are the perceived
rewards someone can receive from the situation.
a. Distributive justice is the degree to which the outcomes received from the
organization are perceived to be fair.
b. Procedural justice is the degree to which fair decision-making procedures are
used to arrive at a decision.
c. Interactional justice is the degree to which people are treated with respect,
kindness and dignity in interpersonal interactions.
2. Expectancy Theory
According to expectancy theory, individual motivation to put forth more or less effort
is determined by a rational calculation in which individuals assess their situation.
The first question is whether the person believes that high levels of effort will lead to
outcome of interest, such as performance or success. This perception is labeled as
expectancy. The second question is the degree to which the person believes that
performance is related to subsequent outcomes, such as rewards. This perception is labeled
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as instrumentality. Finally, individuals are also concerned about the value of the reward
awaiting them as a result of performance. The anticipated satisfaction that will result from
an outcome is labeled valence.
3. Reinforcement Theory
a. Positive reinforcement involves making sure that behavior is met with positive
consequences. Praising an employee for treating a customer respectfully is an
example of positive reinforcement.
b. Negative reinforcement involves removal of unpleasant outcomes once desired
behavior is demonstrated. Nagging an employee to complete a report is an
example of negative reinforcement.
c. Extinction is the removal of rewards following negative behavior. For example, if
a co-worker is forwarding unsolicited e-mail messages containing jokes,
commenting and laughing at these jokes may be encouraging the person to
keep forwarding these messages.
d. Punishment involves presenting negative consequences following unwanted
behaviors. Giving an employee a warning for consistently being late to work is an
example of punishment.
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ASSIGNMENT
S E L F - A S S E S S M E N T
Make a list of the things that you like doing and the things that motivate you in your
activities. Which among the theories of motivation is most applicable to you? Cite specific
examples showing how this theory applies to you.
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Lesson 3: Communication
Learning Objective
The learners shall be able to appreciate the role of communication in directing
people within the organization.
Introduction
IMPORTANCE OF COMMUNICATION
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A corporate executive must be in a position to communicate effectively with his
superiors, colleagues in other departments and subordinates. This will make him perform
well and enable him to give his hundred percent to the organisation.
3. Means of Coordination
Communication is an important tool for coordinating the efforts of various people
at work in the organisation.
4. Aids in Decision-Making
The information collected through communication aids in decision-making.
Communication facilitates access to the vital information required to take
decisions.
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COMMUNICATION PROCESS
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feedback is required from the recipient as misunderstandings are cleared then
and there.
1. Downward
2. Upward
3. Lateral
4. Diagonal
5. External
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Organizational publications, circulars, letter to employees, group meetings etc are
all examples of downward communication. In order to have effective and error-free
downward communication, managers must:
o Specify communication objective
o Ensure that the message is accurate, specific and unambiguous.
o Utilize the best communication technique to convey the message to the
receiver in right form
The subordinates also use upward communication to tell how well they have
understood the downward communication. It can also be used by the
employees to share their views and ideas and to participate in the decision-
making process.
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3. Lateral / Horizontal Communication
o It is time saving.
o It facilitates co-ordination of the task.
o It facilitates co-operation among team members.
o It provides emotional and social assistance to the organizational
members.
o It helps in solving various organizational problems.
o It is a means of information sharing
o It can also be used for resolving conflicts of a department with other
department or conflicts within a department.
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4. Diagonal Communication
5. External Communication
Communication that takes place between a manager and external groups such
as - suppliers, vendors, banks, financial institutes etc. is called external
communication.
For instance - To raise capital the Managing director would interact with the Bank
Manager.
There are 7 C’s of effective communication which are applicable to both written as
well as oral communication. These are as follows:
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Moreover, they are cost saving as no crucial information is missing and no
additional cost is incurred in conveying extra message if the communication
is complete.
It underlines and highlights the main message as it avoids using excessive and
needless words.
Empathize with the audience and exhibit interest in the audience. This will
stimulate a positive reaction from the audience.
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It makes understanding easier.
It makes use of words that are clear and that build the reputation.
6. Courtesy - Courtesy in message implies the message should show the sender’s
expression as well as should respect the receiver. The sender of the message should
be sincerely polite, judicious, reflective and enthusiastic. Courteous message has
following features:
It checks for the precision and accurateness of facts and figures used in the
message.
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COMMUNICATION BARRIERS
There are several barriers that affects the flow of communication in an organization.
These barriers interrupt the flow of communication from the sender to the receiver, thus
making communication ineffective. It is essential for managers to overcome these barriers.
3. Inattention – at times we just not listen, but only hear. For example a traveler may
pay attention to one “NO PARKING” sign, but if such sign is put all over the city, he
no longer listens to it. Thus, repetitive messages should be ignored for effective
communication. Similarly if a superior is engrossed in his paper work and his
subordinate explains him his problem, the superior may not get what he is saying and
it leads to disappointment of subordinate.
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7. Complexity in Organizational Structure – greater the hierarchy in an organization (i.e.
more the number of managerial levels), more is the chances of communication
getting destroyed. Only the people at the top level can see the overall picture while
the people at low level just have knowledge about their own area and a little
knowledge about other areas.
8. Poor retention – human memory cannot function beyond a limit. One can’t always
retain what is being told specially if he is not interested or not attentive. This leads to
communication breakdown.
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ASSIGNMENT
M A N A G E M E N T I N S I G H T
Direction: Read the article below and write a short reaction on the importance of correct
grammar at the place of work.
If you’re in your 40’s, or younger, chances are you’re part of two generations of
Australians who didn’t learn grammar in school, according to the executive director of the
Plain English Foundation, Neil James.
And if you didn’t pick up the rules of grammar by learning a foreign language, your
writing skills at work may need some sharpening. This grammar generation gap is boon for
James. “I find that it’s people who are middle management and below who need the most
help. People who are at the executive level or in the upper levels of middle management
tend to be bit older, so they were at school before we tossed grammar out of the school
system. In NSW, it was around the early 70’s when grammar was taken out of the secondary
school curriculum.
The result is that many people in the workforce are struggling basic grammar. “We’ve
focused a lot more on specific education, like studying to be an accountant or lawyer”
James says.” General skills like writing tend to be downplayed. So an engineer may focus
on technical knowledge but when they get their first job they have to write a report. But at
very few places along the way has anyone shown them how to write a report.
James believes the way you write can have a huge impact on whether you are
promoted. He says that if you are a business owner, poor writing can cause you to lose
business. “Writing well is good for your career”, he says.
1. Use short sentences and avoid unnecessary complex words. James says one easy
way to improve your writing is to use short sentences. “We recommend an
average 15-20 words per sentence. Of course it’s ok to write 10 words or 30 words
but aim for 15-20”, he says.
2. Write with your reader in mind. Putting yourself in the reader’s shoes is essential.
“People don’t put themselves into the shoes of the reader. They think that
because they are professionals they have to sound technical and impressive.”
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3. Check your work. It might sound like a basic concept but Tony Kleu, author of
Writing Good English for Business Professionals, says that many people send off
their work without ever thinking about the meaning of the words they have used.
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