INTRODUCTION TO

MANAGEMENT AND
ORGANIZATIONS
 Managers and their Job
• A manager is a person who coordinates and
oversees the work of other people in order to
accomplish organizational goals.

• Managers are the individuals who achieve goals

through other people.

Managerial
ManagerialActivities:
Activities:
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesof
ofothers
othersto
toattain
attaingoals
goals
 Classification of Managers
• Top Managers: Upper level
•Make organization-wide decisions
•Establish the goals & plans that affect the entire
organization.

• Middle Managers: Managers inbetween

•Manage the work of first line managers.

• First-line Managers: Lowest level

•Manage the work of non-managerial employees and
are directly or indirectly involved in producing
products or rendering services.
 What is Management?
Management refers to coordination and oversight of the
work activities of others so that their activities are
completed efficiently and effectively.

• Management strives for both Efficiency (low expense

of resources) and Effectiveness (high goal
achievement).
 Management Functions

Planning
Planning Organizing
Organizing

Management
Management
Functions
Functions

Controlling
Controlling Leading
Leading
 Management Functions
• Planning. Define goals
•Establish strategies for achieving those goals
•Develop plans to integrate and coordinate activities.

• Organizing. What tasks are to be done

•How tasks are to be grouped
•Who reports to whom
•Where decisions are to be made.

• Leading. Includes motivating subordinates, directing others,

selecting the most effective communication channels, and
resolving conflicts.
 Managerial Functions

• Controlling. Involves monitoring activities to ensure

they are being accomplished as planned and
correcting any significant deviations.
 Managerial Roles
Roles are the specific categories of managerial
behaviors which are required to be displayed at work
place.

• Interpersonal role: Ceremonial and symbolic in

nature. (Figurehead, Leader, Liaison)

• Informational role: Collecting, receiving and

disseminating information. (Monitor, Disseminator,
Spokesperson)

• Decisional role: Revolves around making choices.

(Entrepreneur, Disturbance Handler, Resource
Allocator, Negotiator)
 Skills That Managers Need

Technical Conceptual Human

 Managerial Skills
• Technical Skills. The ability to apply specialized
knowledge, expertise & techniques needed to work
proficiently.

• Conceptual Skills. The ability to think, analyze and

conceptualize about abstract & complex situations.

• Human Skills. The ability to work well with others;

understand and inspire other people, both individually
and in groups.
Managerial Skills
 What is an Organization?
• A deliberate arrangement of people to accomplish
some specific purpose.

•Three common characteristics of an organization

are,
•People
•Deliberate structure
•Distinct purpose
 Why Manager’s Job is Changing
Manager’s job is changing due unavoidable environmental changes,
as discussed below:

• Changing Technology (Digitization)

• Shifting organizational boundaries
• Virtual workplaces
• More mobile workforce
• Flexible work arrangements
• Empowered employees
• Work life – Personal life balance
 Why to Study Management?
Universality of Management: The reality that manage-
ment is needed in all types and sizes of organizations,
at all organizational levels, in all organizational areas,
and in organization no matter where located.
All Sizes
Small Large

All areas
Manufacturing,
Management All Types
Marketing, HR,
is Needed in… Profit Not for profit
Accounting, IT
etc.

All levels
Bottom Top
MANAGEMENT HISTORY
 Four Major Approaches to
Management
1. Classical Approach

2. Quantitative Approach

3. Behavioral Approach

4. Contemporary Approach
 1. Classical Approach to
Management
• Scientific Management

• Frederick W. Taylor

• Frank and Lillian Gilbreth

• General Administration Theory

• Henry Fayol’s

• Max Weber’s
 Scientific Management (C/E)
(Frederick W. Taylor)

• The “father” of scientific management.

• Published Principles of Scientific Management (1911)
• The theory of scientific management - using scientific
methods to define the “one best way” for a job to be
done
• Use scientific studies to analyze, optimize and
standardize workflow
 Scientific Management
Taylor pointed out that lot of attention is give to conserve
material resources but no good attention to wastage of HR;
he emphasized on the necessity of focusing on training
rather than finding the “right man,”
“In the past the man has been first; in the future the
system must be first,” and the first goal of all good systems
should be developing first-class men.
 Scientific Management
How to apply scientific management in the
workplace
1. Analyze work processes
2. Define and delegate tasks
3. Use employees’ skills and offer incentives
4. Establish a professional hierarchy
 Scientific Management
Scientific management can be summarized in four main
principles:
• Using scientific methods to determine and standardize
the one best way of doing a job
• A clear division of tasks and responsibilities
• High pay for high-performing employees
• A hierarchy of authority and strict surveillance of
employees
 Scientific Management
• Frank and Lillian Gilbreth
• Focused on increasing worker productivity through the
reduction of wasted motion
• Developed the microchronometer to time worker motions
and optimize work performance

• How Do Today’s Managers Use Scientific

Management?
• Use time and motion studies to increase productivity
• Hire the best qualified employees
• Design incentive systems based on output
Frank and Lillian Gilbreth
 General Administrative Theory
• Henri Fayol
• Believed that the practice of management was distinct
from other organizational functions
• Developed principles of management that applied to all
organizational situations

• Max Weber
• Developed a theory of authority based on an ideal type of
organization (bureaucracy)

• Emphasized rationality, predictability, impersonality,

technical competence, and authoritarianism
 Fayol’s 14 Principles of Management
1. Division of work 7. Remuneration
2. Authority 8. Centralization
3. Discipline 9. Scalar chain
4. Unity of command 10. Order
5. Unity of direction 11. Equity
6. Subordination of 12. Stability of tenure
individual interests of personnel
to the general 13. Initiative
interest of Organiza-
tion 14. Esprit de corps
Weber’s Bureaucracy
 2. Quantitative Approach to
Management
• Quantitative Measures
• Also called operations research or management
science
• Evolved from mathematical and statistical methods
developed to solve WWII military logistics and quality
control problems
• Focuses on improving managerial decision making by
applying:

• Statistics, optimization models, information models, and

computer simulations
 Quantitative Approach to
Management
• Total Quality Management
 Intense focus on the customer satisfaction
 Concern for continuous improvement
 Process-focused
 Improvement in the quality of everything
 Accurate measurement
 Empowerment of employees
 3. Behavioral Approach to
Management
• Organizational Behavior (OB)
• Manage by observing employees’ behavior
• OB refers to the field of study that researches the
actions (behavior) of people at work.
 Behavioral Approach to
Management
• Hawthorne Studies
• A series of studies by Western Electric Company in 1924 -
1932.

• Effect of lighting levels on productivity – control Vs

experimental group – no reasons identified.

• Involvement of Harvard Prof. Elton Mayo and associates in

1927, onwards….
• A number of experiments conducted, aimed at improving
employee behavior, including redesigning of jobs, changes in work
timings, introduction of rest periods, piece work incentives,
individual Vs group based wage plans etc.
 Behavioral Approach to
Management
• Conclusion of Hawthorne Studies

• Social norms, group standards and attitudes more

strongly influence individual output and work behavior
than do merely monetary incentives.
 4. Contemporary Approach to
Management
• Systems Theory:
• System - A set of interrelated & interdependent parts
arranged in a manner that produces a unified whole.
• Basic Types of Systems
• Closed systems
• Are not influenced by and do not interact with their environment
(all system input and output is internal).

• Open systems
• Dynamically interact to their environments by taking in inputs and
transforming them into outputs that are distributed into their
environments.
Organization as an Open System
 Organization Open System
Technical
Inputs:
• Materials
Processing: Outputs:
• Labour (Transformation of (Finished customers
• Capital raw material into Products)
finished product)
Consumer
Regulations Lobbying
Advocacy
Receipt of
Government
Revenue
Financial Institutions
Repayment of loans
Labour Force
Wages

Suppliers
Payment to creditors
 Implications of Systems Approach
• Coordination of the organization’s parts is essential
for proper functioning of the entire organization.
• Decisions and actions taken in one area of the
organization will have an effect in other areas of the
organization.
• Organizations are not self-contained and, therefore,
must adapt to changes in their external
environment.
 Contingency Approach
• Contingency Approach Defined

• Also sometimes called the situational approach.

• There is no one universally applicable set of

management principles (rules) by which to manage
organizations.

• Organizations are individually different, face different

situations (contingency variables), and require different
ways of managing.
 Contingency Variables
• Organization size
• Routineness of task technology
• Environmental uncertainty
• Individual differences
ORGANIZATIONAL
CULTURE AND
ENVIRONMENT
 Organizational Culture

• Organizational Culture: It is described as the

shared values, principles, traditions, the way
of doing things that influence the way
organizational members act.

• Values: These are the preferred modes of

actions that employees adopt over the
converse actions,
 Omnipotent Vs Symbolic View of
Management
• Omnipotent View: Managers are directly responsible
-success or failure.
• Symbolic View: Due to external forces outside
manager’s control.
• What Reality Suggests: In reality managers are
neither all powerful nor helpless; they have to work
under various constraints.

Org Environment Managerial Org Culture

Discretion
 Organizational Culture
 Strong culture: Organizational culture in which
the key values are intensely held and widely
shared.
 Weak culture: Organizational culture in which key
values are limited to a group of employee, usually
among the members of top management.
 Dimensions of Strong and Weak Culture
Strong Culture Weak Culture
• Values widely shared • Values limited to few people –
usually top management
• Culture conveys consistent
messages about what is important. • Culture sends contradictory
messages about what is important.
• Most employees can tell stories
about company history/heroes. • Employees have little knowledge of
company history or heroes.
• Employees strongly identify with
culture • Employees have little identification
with culture.
• Strong connection exists between
shared values and behaviors . • There is little connection between
shared values and behaviors.
 Dimensions of Organizational Culture
Attention to
details

Innovation &
Risk Taking Outcome
orientation
Organizational
Stability Culture
People
orientation
Aggressive-
ness
Team
orientation
 Where Culture comes From?
• Important ingredients of organization’s culture:

Philosophy of Top Mgt

Selection Org
Organization’s Culture
Criteria
Founders Socialization
 How Employees Learn Culture
Employees learn organization’s culture in a number
of ways; the most common are appended below:

• Stories: Stories contain a narrative of significant

events or people, including organization founders’
acts, achievements, rule breaking events, and
reactions to past mistakes.

• Rituals: Corporate rituals are repetitive sequence of

activities that express and reinforce the important
values and goals of the organization. These rituals
may include collective celebration of some
achievement, high profile awards to high achievers in
a specially organized ceremony.
 Ethical Culture
• Ethical culture: A culture composed of values,
traditions, and practices which are perceived to be
ethical is called an ethical culture. Following are the
suggestions of creating an ethical culture:

 Be a visible role model

 Communicate ethical expectations
 Provide ethics training
 Visibly reward ethical acts and punish unethical ones.
 Provide protective mechanisms so that employees can
discuss ethical dilemmas and report unethical behavior
without fear.
 Innovative Culture
An innovative culture is the one and is the desire of
every organization; it has following characteristics:
• Challenge & involvement: Employees should be
involved in, motivated by and committed to long term
goals and success of the organization.

• Freedom: Employees should be allowed to

independently define their work, exercise discretion
and take initiative in day to day activities.

• Trust & openness: Employees should be supported

and respectful to each other.

• Idea time: Employees should have time to elaborate

on new ideas before taking action.
 Innovative Culture
• Playfulness/humor: The workplace should be
spontaneous, natural and full of fun.

• Conflict resolution: Employees should be

empowered to make decisions and resolve issues, in
the best interest of organization.

• Debates: Employees should be allowed to express

their opinions and put forth ideas for consideration
and review.

• Risk taking: Managers should tolerate uncertainty

and ambiguity and employees should be rewarded for
risk taking.
 Creating A Customer-Responsive Culture
A customer responsive culture has following
characteristics:
Characteristics Suggestions for Managers
Type of employees Hire people with personalities & attitudes consistent with
customer service – friendly, attentive, enthusiastic,
patient, good listener.
Type of job Design job so that employees have as much control as
environment possible to satisfy customers, without rigid rules and
procedures.
Empowerment Give employees discretion to make day to day decisions
on job related activities.
Role clarity Reduce uncertainty about what employees can and
cannot do by continual training on product knowledge,
listening, & other behavioral skills.
Consistent desire to Clarify organization’s commitment to doing whatever it
satisfy & delight takes, even if it is outside one’s normal job requirements.
customers.
 Spirituality and Organizational Culture
Workplace Spirituality: A feature of a culture where
organizational values promote a sense of purpose through
meaningful work that takes place in the context of
community.
• Such an organization recognizes that people have a mind
and a spirit who seek to find meaning & purpose in their
work and desire to connect with other human beings and be
part of the community. A spiritual organization has following
five characteristics:
 Strong sense of purpose
 Focus on individual development
 Trust and openness
 Employee empowerment
 Toleration of employee expression
 Influence of External Environment
External environment: It refers to the factors and forces outside an
organization that affect the organization’s performance. It has two
components – specific environment and general environment:

• Specific environment: External forces that have a direct impact on

manager’s decisions and actions and are directly relevant to the
achievement of an organization’s goal. Main forces that make up
specific culture are:
o Customers
o Suppliers
o Competitors
o Pressure groups
 Influence of External Environment
• General environment: General environment includes the
broad external conditions that may affect an
organization. During various managerial functions, these
factors should be kept in mind, which are:

 Economic conditions
 Political/Legal, conditions
 Socio-cultural conditions
 Demographic conditions
 Technological conditions
 Global conditions
 Stakeholders of an Organization
• Any constituencies in an organization’s environment
that are effected by the organizations decisions and
actions. Some of the most common stakeholders are:
 Employees
 Customers
 Social and political action groups
 Competitors
 Trade & industry associations
 Governments
 Media
FOUNDATION OF
PLANNING
 Why Do Managers Plan?
Managers spend lot of time in planning their job/
assignment/project due to following reasons:

• Planning provides direction

• Planning reduces uncertainty
• Planning minimizes waste and redundancy.
• It establishes goals & standards to facilitate
controlling.
 Planning and Performance
• Generally, there is a positive relationship between the
two – planning helps in achieving better performance.

• Managers who plan are expected to receive better

results than the ones who do not plan.

• Formal planning is associated with positive financial

gains – i.e. higher profits, higher return on assets etc.

• There is an effect of time frame on planning – timely

planning is always better than delayed planning.
 Goals and Plans
• Planning is often called the primary management function because it
establishes the basis for remaining functions – organizing, leading &
controlling.

• Planning involves two important aspects:

 Goals (Objectives): Theses are desired outcomes or targets that are

expected to be achieved.

 Plans: Plans are the documents that outline how goals are going to be
met. They usually include resource allocations, schedules, and other
necessary actions required to be taken to achieve the goals.
 Types of Goals
• Goals are the desired outcomes or targets which are
further divided into following types:

 Stated goals: official statements

 Real goals: organization actually pursues

 Description of Plans
There are following four popular ways to describe
organizational plans:
• Breadth – strategic (entire) Vs operational (dpt)
• Timeframe – short term Vs long term
• Specificity – directional(flexible) Vs specific(clearly
defined)
• Frequency of use – single use Vs standing

Types of Plans

Breadth Timeframe Specificity Frequency

of use
Strategic Long term Directional Single use
Operational Short term Specific Standing
 Goals Setting Process
Managers should follow a five steps goal setting
process:

1. Review the organization’s mission or purpose.

2. Evaluate available resources.

3. Determine goals individually or with input from

others.

4. Write down the goals and communicate them to

all who need to know.

5. Review results & whether goals are being met.

 Characteristics of Well-Written Goals
• Written in terms of outcome rather than actions.

• Challenging yet attainable.

• Measurable and quantifiable.

• Written down in clear term.

• Clear as to a time frame.

• Communicated to all concerned org members.

 MANAGERS AS
DECISION MAKERS
 Decision Making
• It is a process of making a choice between two or
more alternatives.
 To avail an opportunity
 To solve a problem

• Problem: It is a discrepancy between existing and

desired state.

• Rational Decision Making: A type of decision making

in which choices are logical and consistent. Such
decision making maximizes value for the majority.
 Decision Making Process
Problem identification: Sales reps need new computers

Criteria identification: Memory, Display quality, Battery life,

Warranty, Carrying weight.

Allocation of weights to criteria: Memory/storage: 10; Battery

life: 8; Carrying weight: 6;
Warranty: 4; Display quality: 3

Development of alternatives: Dell, HP, Apple, Toshiba etc.

Analysis of each type/alternative: With the help of weights.

Selection of best alternative: Which gets max points

Implementation of decision: Putting in action

Evaluation of Decision’s Effectiveness: How good are results

Decision Making in Managerial Functions
Planning: A manager may make following decisions:
• What are long term objectives?
• What strategies would be best?
• What are short term objectives?
• How difficult should individual’s goals be?

Organizing: A manager may make following decisions:

• How many employee should be directly reporting?
• How much centralization should be there in org?
• How should job/tasks be designed/arranged?
• When should a different structure be implemented?
Decision Making in Managerial Functions
Leading: A manager may make following decisions:
• How to handle employees with low motivation?
• What is the most effective leadership style?
• How will a specific change affect a worker’s
performance.
• When is the right time to stimulate conflict?
Controlling: A manager may make following decisions:
• What activities need to be controlled?
• How to control those activities?
• When is performance deviation significant?
• What type of MIS should be in place?
 How Decisions are Actually Made
(Rationality)
Rationality: A rational decision is the one which is
made after complete diagnosis and research.
Such decisions are made as a result of complete fact-
finding/research and following a sequential model.
 Decisions Making – Role of Intuition
Intuitive decision making: It refers to decision making on
the basis of experience, gut feelings and accumulated
judgment.

• Intuition depends on following:

 Experience-based decisions – based on past experience

 Affect-initiated decisions – based on feelings/emotions
 Cognitive-based decisions – based on skills/knowledge/ training
 Subconscious mental processing – based on data stored in
subconscious mind.
 Values or ethics based decisions – based on ethical values or
culture.
 Types of Decisions
• Programmed decisions: Repetitive decisions that
can be handled using a routine approach.

• Non-programmed decisions: Unique and non-

recurring decisions that require a custom-made
solution.
 Types of Problems
• Structured problem: straight forward, familiar,
easily defined and for which information is complete.

• Unstructured problem new/ unfamiliar, unusual,

and for which information is ambiguous or
incomplete.
 Decisions Making Conditions
Certainty

Risk

Uncertainty
 Decisions Making Biases and Errors
1. Overconfidence – have un-realistic view of themselves

2. Immediate gratification – want immediate

rewards/benefits

3. Anchoring effect – fixation on first information/impression

4. Selective perception – perceiving things on the basis of

self abilities/limitations/interests/errors.
 Decisions Making Biases and Errors
5. Confirmation – accepting things on face value information
that affirms manager’s preconceived views.

6. Framing – only looking at the information that suits their

interests, while excluding others.

7. Availability – deciding on the basis of recent events which is

fresh in their memory.

8. Representation – deciding on the basis of similar situation /

similar/matching events.
 ORGANIZATIONAL
STRUCTURE and DESIGN
 Organizational Structure
• An organizational structure consists of activities such as task
allocation, coordination and supervision, which are directed
towards the achievement of organizational goals.

•The structure of an organization will determine the modes in

which it operates and performs.

• Organizational structure allows the expressed allocation of

responsibilities for different functions and processes to different
entities such as the branch, department, workgroup and
individual.
 Organizational Structure

• Organizing: Arranging and structuring work &

resources to accomplish an organization’s goals.
• Organizational Structure: The formal arrangement
of jobs and allocation of resources within an
organization.
• Organizational chart: The visual representation of
an organization’s structure.
• Organizational design: Creating or changing an
organization’s structure over a period of time.

Conti….
 Purposes of Organizing
• It divides work into specific jobs & departments

• It assigns tasks & responsibilities

• Coordinates diverse organizational tasks

• Clusters jobs into units

• Establishes relationships among individuals, groups and departments.

• Establishes formal lines of authority

• Allocates and deploys organizational resources

Determinants of Organizational Structure
An organizational structure defines how job tasks
are formally divided, grouped, and coordinated.
There are six key elements:

• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
Key Elements of Organizational Structure
Division
Divisionofoflabor:
labor:
• • Makes efficient use of
Makes efficient use of
employee
employeeskills
skills
• • Increases employee skills
Increases employee skills
through
throughrepetition
repetition
• • Less between-job
Less between-job
downtime
downtimeincreases
increases
productivity
productivity
• • Specialized training is more
Specialized training is more
efficient
efficient
• • Allows use of specialized
Allows use of specialized
equipment
equipment
Key Elements of Organizational Structure

Grouping
GroupingActivities
ActivitiesBy:
By:
Function,
Function,Product,
Product,Geography,
Geography,
Process,
Process,Customer
Customer
Key Elements of Organizational Structure
Key Elements of Organizational Structure

Narrow
NarrowSpan
SpanDrawbacks:
Drawbacks:

• •Expense of additional layers of

Expense of additional layers of
management.
management.
Concept:
Concept:
• •Increased complexity of vertical
Increased complexity of vertical
Wider
Widerspans
spansofofmanagement
management communication.
communication.
increase
increaseorganizational
organizational
efficiency. • •Encouragement of overly tight
efficiency. Encouragement of overly tight
supervision
supervision&&discouragement
discouragementofof
employee
employeeautonomy.
autonomy.
Contrasting Spans of Control

Narrow Wide
Key Elements of Organizational Structure
• A highly formalized job gives the
job incumbent a minimum amount
of discretion over what is to be
done, when it is to be done, and
how he or she should do it.
Employees can be expected
always to handle the same input in
exactly the same way.

• The greater the standardization,

the less input the employee has
into how the job is done.
Key Elements of Organizational Structure

Decentralization:
The degree to which lower
level employees provide
input or actually make
decisions
Common Organization Designs

AASimple
SimpleStructure
Structure
Jack
JackGold’s
Gold’sMen’s
Men’sStore
Store

Wide span of control

Common Organization Designs
Mechanistic
MechanisticVs
Vs Organic
Organic Structure
Structure
 Contemporary Organizational Designs

Characteristics:
Characteristics:
• •Breaks
Breaksdown
downdepartmental
departmental
barriers.
barriers.
Cross functional teams: Work teams • •Decentralizes
Decentralizesdecision
decision
composed of individuals from various making
making to the teamlevel.
to the team level.
functions.
• •Requires
Requiresemployees
employeestotobe be
generalists
generalistsasaswell
wellas
as
specialists.
specialists.
Contemporary Organizational Designs

Key
KeyConcepts:
Concepts:
• •Provides maximum flexibility
Provides maximum flexibility
while
whileconcentrating
concentratingon
onwhat
whatthe
the
organization
organizationdoes
doesbest.
best.
• •Disadvantage is reduced
Disadvantage is reduced
control
controlover
overkey
keyparts
partsofofthe
the
business.
business.
A Virtual Organization
 Contemporary Organizational Designs

• Learning organization: An organization that has

developed the capacity to continually learn, adapt
and change.

• In such an organization, employees continually

acquire and share new knowledge across the entire
organization and apply it in making decisions or doing
their day to day work.
MANAGERS AS
LEADERS
 What is Leadership?
• Leadership is a process of influencing a group to achieve
goals.
• Leader is a person who can influence others and who has
managerial authority. A person may assume a leadership
role simply because of his/her position or he/ she can
emerge from within a group.
• Leadership is about coping with change. A Leader must
challenge the status quo, create vision of the future, align
people by communicating this vision and then inspire them
to overcome hurdles & achieve the target.
•Neither all leaders are managers, nor all managers are
leaders.
Leadership Theories
Trait Theories
Trait theories advocate that
leaders are born, not made.

The cumulative findings from a half of a century of

research show that some traits increase the likelihood of
success as a leader, but none guarantee success.
 Trait Theories
• Six traits on which leaders tend to differ from non-leaders
are:
• Ambition and energy
• Desire to lead
• Honesty and integrity
• Self-confidence
• Intelligence
• Job-relevant knowledge.
Behavioral Theories
Behavioral theories advocate
that leadership can be taught
& that leaders are not born.

• Behavioral theories identify behaviors that differentiate

effective leaders from ineffective leaders.
• Important behavioral theories are, University of Iowa
studies, Ohio State Studies, University of Michigan
Studies.
 University of Iowa Studies
These studies explored three leadership styles to find
which is the most effective:

• Autocratic style –dictate

• Democratic style – Involved employees

• Laisses-faire style –Lets the group to make decisions and

complete work
Ohio State Studies
Research at Ohio State University (in the late 1940s)
sought to identify independent dimensions of leader
behavior. Researchers down narrowed over a thousand
dimensions into two dimensions - initiating structure and
consideration.
1. Initiating structure:

It includes attempts to organize work, work relationships, and

goals.
The leader high in initiating structure could be described as
someone who “assigns group members to particular tasks,
“expects workers to maintain definite standards of performance,”
and “emphasizes the meeting of deadlines.”
Ohio State Studies (cont’d)
2. Consideration:
The leader shows concern for followers’ comfort, well-
being, status, and satisfaction.

A leader high in consideration could be described as one

who helps employees with personal problems, is friendly
and approachable, and treats all employees as equals.
University of Michigan Studies
Researchers at this university discovered two
dimensions of leadership behavior- employee-oriented
and production-oriented.

1. Employee-oriented leaders emphasize on interpersonal

relations. They took a personal interest in the needs of
their employees and accepted individual differences
among members. Employee-oriented leaders were
associated with higher group productivity and higher job
satisfaction.
2. Production-oriented leaders tend to emphasize on the
technical or task aspects of the job- group members are a
means to that end. They tend to be associated with low
group productivity and lower job satisfaction.
Contingency Theories
Contingency theories have proposed two moderating
variables, i.e. “degree of structure” and leader-
member relationship, which affect leadership
effectiveness.
• Situational leadership theory
• Path-Goal theory
Situational Leadership Theory
Situational Leadership Theory (SLT). A contingency
theory that focuses on followers’ readiness.
• Successful leadership is achieved by selecting the right
Behavior/style, which is contingent on the level of the
followers’ readiness. The term readiness refers to “the extent
to which people have the ability and willingness to
accomplish a specific task.”
•SLT views the leader-follower relationship as analogous to
that between a parent and child. Just as a parent needs to
relinquish control as a child becomes more mature and
responsible, so too should leaders.
 Situational Leadership Theory – Specific
Behaviors
Following specific behaviors:
• Telling (high task – low relationship)
• Selling (high task– high relationship).
• Participating (low task– high relationship).
• Delegating (low task– low relationship).
 Situational Leadership Theory – Followers
Readiness
The final component of this theory refers to four stages of
followers readiness:
• Stage-R1. neither competent nor confident
• Stage-R2. unable but willing.
• Stage-R3. able but unwilling
• Stage-R4. able and willing
 Path - Goal Theory (by Robert House)
• It is the leader’s job to assist
followers in attaining their goals
and to provide the necessary
direction and/or support to
ensure that their goals are
compatible with the overall
objectives of the firm.

It is one of the most respected approaches to leadership.

The Path-Goal Theory (cont’d)
Four leadership behaviors:

 The directive leader lets followers know what is

expected of them, etc.

 The supportive leader is friendly and shows concern

for the needs of followers.

 The participative leader consults with followers and

uses their suggestions before making a decision.

 The achievement-oriented leader sets challenging

goals and expects followers to perform at their highest
level.
 CONTEMPORARY
CONTEMPORARY
VIEWS
VIEWS ON
ON LEADERSHIP
LEADERSHIP
 Charismatic Leadership
According to this theory, followers make attributions of
heroic or extraordinary leadership abilities when they
observe certain behaviors. The five best documented
characteristics of such leaders are:
•   They have a vision.
• They are willing to take risks to achieve that vision.
• They are sensitive to both environmental constraints
and follower needs.
• They exhibit behaviors that are out of the ordinary—
that differentiate charismatic leaders from non-
charismatic ones.
 Charismatic Leadership (cont’d)
Charismatic leaders actually influence followers through
a four-step process:
1. Articulates an appealing vision
2. Then communicates high performance expectations and
expresses confidence that followers can attain.
3. Through words and actions, a new set of values –
example to imitate
4. Makes self-sacrifices -Demonstrate courage and
convictions about the vision.
MOTIVATION
Defining Motivation
Motivation refers to the Motivation is a force that
process by which a person’s energizes behavior, gives
efforts are energized, direction to behavior, and
directed and sustained underlies the tendency to
towards attaining a goal. persist.

Key Elements. The three key elements of our definition

are intensity, direction, and persistence:

• Intensity.
• Direction.
• Persistence.
Early Theories of Motivation

 In the 1950s three specific theories were

formulated and are the best known - hierarch of
needs theory, theories X and Y, and the two-factor
theory.

 These early theories are important to understand

because they represent a foundation from which
contemporary theories have grown.
 Maslow’s
Maslow’s Hierarchy
Hierarchy of
of Needs
Needs Theory
Theory
There is a hierarchy of five needs:
1. Physiological Needs. Includes hunger, thirst, shelter
and other bodily needs.
2. Safety Needs. Includes security and protection from
physical and emotional harm.
3. Social/ Belongingness Needs. Includes affection,
belongingness, acceptance, family and friendship.
4. Esteem. Includes internal esteem factors such as self-
respect, autonomy, and achievement; and external
esteem factors such as status, recognition, and
attention.
5. Self-actualization. The drive to become what one is
capable of becoming; includes growth, achieving
one’s potential, and self-fulfillment.
Maslow’s Hierarchy of Needs Theory

Higher Order

Lower Order
Theory X and Theory Y
 Theory X and Theory Y

Theory X. Theory X assumptions are basically negative:

• Employees inherently dislike work and, whenever
possible, will attempt to avoid it.
• Since employees dislike work, they must be
coerced, controlled, or threatened with punishment.
• Employees will avoid responsibilities and seek
formal direction whenever possible.
• Display little ambition.

Conti…
 Theory X and Theory Y (Cont’d)

Theory Y. Theory Y assumptions are basically

positive:
• Employees can view work as being as natural as rest
or play.
• People will exercise self-direction and self-control if
they are committed to the objectives.
• The average person can learn to accept, even seek,
responsibility.
• The ability to make innovative decisions is widely
dispersed throughout the population.
Two-Factor Theory
/ Also called Motivation-hygiene theory
Comparison of Satisfiers and Dissatisfiers
Hygiene Factors Motivators
“Factors characterizing events on “Factors characterizing events on
the job that lead to extreme job the job that lead to extreme job
dissatisfaction” satisfaction”

 Pay  Achievements
 Policies  Responsibility
 Working conditions  Work itself
 Supervisors  Recognition
 Company policies  Advancement
 Benefits  Growth
(Extrinsic Rewards) (Intrinsic Rewards)
Theory of Needs
Also called “Acquired-Needs Theory”, states that our needs
are acquired or learned on the basis of our life experiences. It
is centered on three needs, nAch, nAff, nPow.

nPow

nAch nAff

Sportsmen exhibit high level of all the three needs

Contemporary Theories of Motivation
ERG Theory (Clayton Alderfer)
ERG Theory: Reworked Maslow’s need hierarchy to align
it with the empirical research. There are three groups of
core needs - Existence, Relatedness, and Growth.

Concepts:
• More than one need can be operative at the same time;

•Variables like culture, education, family background can alter the

importance or the driving force that a group of needs holds for a
particular individual.
 Goal-Setting Theory (Edwin Locke)

• Goals tell an employee what needs to be

done and how much effort is needed.
• Specific hard goals produce a higher level
of output than do the generalized goals.
• The higher self-efficacy you have, the
more confident you will be in your ability to
achieve the goals.

Conti…
 Reinforcement Theory
• Reinforcement theory advocates that behavior is
function of its consequences.
• It argues that reinforcement conditions behavior.
• Reinforcement theory ignores the inner state of an
individual and concentrates what solely happens to a
person when he/ she takes some action.

• Behavior is environmentally caused.

Equity Theory
Employees compare their job inputs and outcomes with
those of others and then respond to eliminate any
inequities. There are four referent comparisons that an
employee can use:

1. Self-inside.
2. Self-outside.
3. Other-inside..
4. Other-outside..
Equity Theory (cont’d)

• If we perceive our ratio to be equal to that of the

relevant others with whom we compare ourselves, a
state of equity is said to exist. We perceive our situation
as fair.
• When we see the ratio as unequal, we experience
equity tension.
Equity Theory (cont’d)
Choices for dealing with inequity:
• Change inputs (increase/ decrease effort).
• Change outcomes (increase/ decrease outcomes).
• Distort/change perceptions of self.
• Distort/change perceptions of others.
• Choose a different referent person; if not
satisfied with above, then
• Leave the field (quit the job).
Expectancy Theory
• Expectancy theory argues that the strength of a
tendency to act in a certain way depends on the
strength of an expectation that the act will be followed
by a given outcome and on the attractiveness of that
outcome to the individual.

Three key relationships are:

1. Effort-performance relationship.
2. Performance-reward relationship.
3. Rewards-personal goals relationship.
THANKS