MOTIVATION

Members:

Alvarez, Joselito

Dacula, Jonero T.

Espinoza, PrinceBrigham T.

Malco, IC Geberlene G.

Mortel, Julio Ceasar B.

Orajay, Jimmy Jr. B.

Pascua, Efraime Dave A.

Robles, John Richmond P.

Tabor, Denzel Joshua N.

Group 5

EE 5-1
 Motivation

Productivity has always been a serious concern of management firms. If it

improves, it means greater chances for the company to grow and be more stable. One
reason why the Philippine economy cannot move steadily forward is our record of low
productivity for so many years.

Higher productivity, however, is not a result of chance. It happens because of

harder, more efficient, and more intelligent work made by the employees. To be willing
partners, however, the requirement is for them to be properly motivated. An example is
the management of a construction firm wanting its employees to finish projects on time,
with the quality required at the least cost. To achieve this, various methods of motivation
may be applied.

When the cost of the other factors of production is seriously affecting the viability
of the firm, the remaining factor (i.e. labor) may save the company from financial
difficulties. However, this will depend on whether or not labor will be motivated to
perform their assigned task.

What is Motivation?

Motivating refers to the act of “giving employees reasons or incentives … to work

to achieve organizational objectives.” Motivation, on the other hand, refers to the
“process of activating behavior, sustaining it, and directing it toward a particular goal.”
This definition is useful because it specifies three stages: activating, sustaining, and
directing actions towards the achievement of objectives.

Three Key Elements of Motivation

1. Direction – It is the goal that spurs the individual to action. A goal is actively
chosen among a set of alternatives, whether the individual realizes it or not. The
goal is determined by different influences, including extrinsic and intrinsic factors,
which may contradict each other.
2. Intensity – It is the strength of the response in the chosen direction. Typically,
there’s a close relationship between intensity and the expectation of a desired
outcome. Intensity, or motivational force, depends on the individual’s perception
of the likelihood that effort will yield a certain result.
3. Persistence – It is the duration with which a person expends energy and effort
towards the direction or goal. The sustenance of behavior is influenced by
extrinsic and intrinsic factors. The factors that initially energized or initiated
behavior may not necessarily be the same factors that sustain behavior and
provide for persistence.
Factors Contributing to Motivation

There are certain factors influencing a person’s desire to do his job well. They
are the following;

1. Willingness to do the job. People who like what they are doing are highly
motivated to produce the expected output.
2. Self-confidence in carrying out a task. When employees feel that they can have
the required skill and training to perform a task, the more motivated they become.
3. Needs satisfaction. People will do their jobs well if they feel that by doing so,
their needs will be satisfied.

Conceptual Framework for understanding motivation

The Process of Motivation – Motivational Process Theories

1. Maslow’s Need Hierarchy- This theory of motivation is presented by the

Abraham Maslow, who organized the major human needs into five categories
in a hierarchal manner. According to Maslow, people tend to satisfy these
organized needs in some specific order which means that the lower level need
is fulfilled first then the next upper level need is considered. These organized
needs are given below in an ascending order.

 Physiological (related to water , food & shelter)

 Safety & Security ( related to protection against deprivation & theft)
 Social (related to affection, belonging, friendship & love)
 Ego ( related to freedom, achievement, independence, recognition, status & self-
esteem)
 Self-Actualization (related to the realization of the full potential about one’s self)

2. Existence Relatedness Growth Theory (ERG)- This theory is presented by

Alderfer who point out three main needs of humans which are as follow.

Existence

Relatedness

Growth

Existence needs have resemblance with the physiological needs & some
components of the security needs of Maslow theory. The relatedness needs are the
ones which are satisfied through personal interactions with others like self-esteem from
others and prestige etc. Finally the growth needs are also same as the needs of self-
actualization & self-esteem presented in the theory of Maslow.

3. Murray’s Manifest Needs –

American psychologist Henry Murray (1893-1988) developed a theory of

personality that was organized in terms of motives, presses, and needs. Murray
described needs as a "potentiality or readiness to respond in a certain way
under certain given circumstances" (1938).

Theories of personality based on needs and motives suggest that our

personalities are a reflection of behaviors controlled by needs. While some
needs are temporary and changing, other needs are more deeply seated in our
nature. According to Murray, these psychogenic needs function mostly on the
unconscious level but play a major role in our personality.
 4. Frederick Herzberg’s two factor theory –

This theory, also called the Motivation-Hygiene Theory or the dual-factor

theory, was penned by Frederick Herzberg in 1959. This American
psychologist, who was very interested in people’s motivation and job
satisfaction, came up with the theory.

5. McClelland’s Acquired needs theory –

In his acquired-needs theory, David McClelland proposed that an individual's

specific needs are acquired over time and are shaped by one's life
experiences. Most of these needs can be classed as achievement, affiliation, or
power.

6. Equity Theory –

Equity theory is based in the idea that individuals are motivated by fairness,
and if they identify inequities in the input or output ratios of themselves and
their referent group, they will seek to adjust their input to reach their perceived
equity

Cross-cultural challenges.

 Although most current motivation theories were developed in U.S. and validated
with American workers, the ways how to motivate employees are different in
many countries and depends on their cultural characteristics.

 Managers should understand deeply cultural characteristics before they design

and launch any motivational program.

Motivating unique groups of workers.

 The employees have different needs, personalities, skills, abilities, interest,

aptitude, and vary widely in what they want from their jobs. Hence, motivating
unique groups of workers has never been an easy task.

1. Motivating a diverse workforce

To motivate employees with such diverse needs, managers should use flexible
work arrangement

Characteristics of professionals.

 Strong and long-term commitment to their field of expertise.

  Loyalty is to their profession, not to the employer.

 Have a need to regularly update their knowledge.

Motivating programs for professionals.

 Job challenge

 Organizational support of their works.

 Work itself

Motivating contingent workers.

 For that small set of individuals who prefer the freedom of their temporary status,
the lack of stability may not be an issue.
But for the temporary employees are not temporary by choice, these are
the answers how to motivate them.

Contemporary Theories of leadership

Leadership - The ability to influence a group toward the achievement of goals

leader attributions for and reaction to poor performance by subordinates, and
observer attributions for and reactions to poor performance by the leader.

Three general types of theories:

 Trait Theories
 Behavioural Theories
 Contingency Theories

1. Trait Theories
- Theories that consider personality, social, physical, or intellectual traits to
differentiate leaders from non-leaders

2. Behavioral Theories
- Theories proposing that specific behaviors differentiate leaders from non-
leaders

Behavioral Theory
Leadership behaviors can be taught.
vs.
Trait Theory
Leaders are born, not made.
 Behavioral Approach

 Ohio State Studies/University of Michigan

– Initiating Structure/Production Orientation
– Consideration/Employee Orientation
 Assumption: Leaders can be trained
 Goal: Develop leaders
 Problem: Effective behaviors do not generalize across situations.
Ohio State Studies

Initiating Structure
– The extent to which a leader is likely to define and structure his or her role
and those of subordinates in the search for goal attainment.

Consideration
– The extent to which a leader is likely to have job relationships
characterized by mutual trust, respect for subordinate’s ideas, and regard
for his/her feelings.

University of Michigan Studies

Employee-oriented Leader
– Emphasizing interpersonal relations; taking a personal interest in the
needs of employees and accepting individual differences among
members.

Production-oriented Leader
– One who emphasizes technical or task aspects of the job.

3. Contingency Theories

All Consider the Situation

– Fiedler Contingency Model
– Cognitive Resource Theory
– Hershey and Blanchard’s Theory Situational Leadership Model
– Path Goal Theory
THE PATH-GOAL MODEL
The Path-Goal model is a theory based on specifying a leader's style or behavior that
best fits the employee and work environment in order to achieve a goal (House,
Mitchell, 1974). The goal is to increase your employees' motivation, empowerment, and
satisfaction so they become productive members of the organization. The said Path-
Goal theory was inspired by the work of Martin G. Evans (1970), where can best be
thought of as a process by which leaders select specific behaviors that are best suited
to their employees’ needs and their working environment, so that leaders may best
guide their employees through their path in the obtainment of their daily work activities.
The Path-Goal model is a theory based on specifying a leader’s style or behavior that
best fits the employee and work environment in order to achieve a goal. The goal is to
increase an employee’s motivation, empowerment, and satisfaction so they become a
productive member of the organization. Employee satisfaction is contingent upon the
leader’s performance as both a facilitator and coach and rewards their employees for
effective performance. The original Path-Goal theory identifies achievement-oriented,
directive, participative, and supportive leader behaviors.
Path–Goal theory assumes that leaders are flexible and that they can change their
style, as situations require. The theory proposes two contingency variables, such as
environment and employee characteristics, that moderate the leader behavior-outcome
relationship. Environmental factors determine the type of leader behavior required if the
employee outcomes are to be maximized. Follower characteristics are the locus of
control, experience, and perceived ability. Personal characteristics of employees
determine how the environment and leader are interpreted. Effective leaders clarify the
path to help their employees achieve goals and make the journey easier by reducing
roadblocks and pitfalls.
In conclusion The Path-Goal theory is useful because it reminds leaders that their
central purpose as a leader is to help employees define and reach their goals in an
efficient manner.
FIEDLER CONTINGENCY MODEL
The Fiedler Contingency Model was created in the mid-1960s by Fred Fiedler, a
scientist who studied the personality and characteristics of leaders. Fiedler's
contingency theory contends that there is no one single leadership style that works for
all employees. He recognized that there are situational-contingent factors that affect a
leader's ability to lead. The effectiveness of workers depends on how good a match
exists between the leadership style of the leader and the demands of the situation.
Identifying leadership style is the first step in using the model. Fiedler believed that
leadership style is fixed, and it can be measured using a scale he developed called
Least-Preferred Co-Worker (LPC) Scale.
In order to understand the attitude of a leader, Fiedler developed a “Least Preferred Co-
worker Scale (LPC)”, wherein the leaders are asked to rate a person on a scale ranging
from lowest (1) to highest (8) on several parameters to identify the worker with whom
they least like to work. Certain parameters on the LPC scale are: pleasant/unpleasant,
friendly/unfriendly, tense/relaxed, supportive/hostile, cooperative/uncooperative,
quarrelsome/harmonious, etc. The leaders with high LPC scores are said to be
relationship-oriented whereas the ones with the low LPC scores are considered as task-
oriented.
Northouse states that styles and situations are the two elements contingency theory is
concerned with. There are two leadership styles of contingency theory. Task-motivated,
a style related to reaching goals, and relationship motivated, a style related to building
close relationships. Task-motivated people have low LPC’s. Likewise, those who are
relationship-motivated have high LPC. The second element, situation, has three factors.
The first of which is leader-member relations. This revolves around the group’s opinion
and feelings for their leader. The second type is task structure and has to do with how
well a task is planned. The last characteristic is position power, it is the amount of power
a leader has over their followers.
Fiedler’s theory stresses on a leader’s personality. A leader’s psychological disposition
is the key to his ability to guide and motivate his team. For a high LPC leader, each
member is given ample freedom to perform his part. In assignments where end-result is
not very well- defined, such as in a research laboratory, a ‘relationship building’ or high
LPC leader is more desirable. In such cases, research results of each team member are
equally important. Team members must feel comfortable to carry on with their
experiments and research. A ‘feel good’ factor is very important in such situations.

The Path Goal Theory of Leadership

The Path-Goal Theory of Leadership was developed to describe the way that
leaders encourage and support their followers in achieving the goals they have been
set by making the path that they should take clear and easy.

In particular, leaders:
 Clarify the path so subordinates know which way to go.
 Remove roadblocks that are stopping them going there.
 Increasing the rewards along the route.

The theory was developed by Robert House and has its roots in the Expectancy
Theory of motivation. The theory is based on the premise that an employee’s perception
of expectancies between his effort and performance is greatly affected by a leader’s
behavior. The leaders help group members in attaining rewards by clarifying the paths
to goals and removing obstacles to performance.
Basic Idea of the Path Goal Theory

Major Components of Path Goal Theory

A. The Four Path-Goal Types of Leader Behaviors

o Supportive leadership
 Considering the needs of the follower, showing concern for their welfare
and creating a friendly working environment. This includes increasing the
follower's self-esteem and making the job more interesting. This approach is
best when the work is stressful, boring or hazardous.

o Directive leadership

Telling followers what needs to be done and giving appropriate guidance

along the way. This includes giving them schedules of specific work to be done
at specific times. Rewards may also be increased as needed and role ambiguity
decreased (by telling them what they should be doing).
This may be used when the task is unstructured and complex and the
follower is inexperienced. This increases the follower's sense of security and
control and hence is appropriate to the situation.

o Participative leadership

Consulting with followers and taking their ideas into account when
making decisions and taking particular actions. This approach is best when the
followers are expert and their advice is both needed and they expect to be able
to give it.

o Achievement-oriented leadership

Setting challenging goals, both in work and in self-improvement (and

often together). High standards are demonstrated and expected. The leader
shows faith in the capabilities of the follower to succeed. This approach is best
when the task is complex.

B. Employee Characteristics

o Self-Perceived Level of Task Ability

The follower’s self-perception of task ability negatively correlates with

directive leadership. This intuitively makes sense, because as the follower
becomes empowered to attain a task, the need for a controlling leader is
diminished.

o Desires for Control

 This type of follower characteristic refers to the followers’ personality of
having either an internal or external locus of control.

Internal locus of control refers to the belief that one is “in charge of the
events that occur in their life,” whereas external locus of control refers to the
belief that external circumstances determine one’s life events.

Followers with an internal locus for control prefer participative leadership,

because they like to feel in charge of decision making, while followers with an
external locus of control prefer directive leadership because it aligns with their
perspective on how the world operates.

o Needs for Affiliation

Followers with a strong need for affiliation prefer leaders who are friendly
and supportive. Supportive leadership provides these followers with work
satisfaction.

o Preferences for Structure

Followers “who are dogmatic and authoritarian” and who work in

uncertain situations prefer leaders who provide direction, structure, and task
clarity. Directive leadership provides these followers with task clarity and helps
make goal-attainment less ambiguous.

C. Task and Environmental Characteristics

Overcoming obstacles is a special focus of path-goal theory. If an obstacle

becomes too strong, then the leader needs to step in and help the employee
select a path to work around it. Some of the more difficult task characteristics that
often arise are:

o Design of the task - The design of the task might call for the leader's support.
For example, if the task is ambiguous, then the leader might have to give it more
structure or an extremely difficult task might call for leader support.

 Unclear & Ambiguous

Leader needs to provide structure
 Highly Repetitive
Leader needs to provide support to maintain subordinate motivation
 o Formal authority system - Depending upon the task authority, the leader can
provide clear goals and/or give the employee some or all control.

o Work group - If the team is non-supportive, then the leader needs to be

cohesiveness and espouse esprit-de-corps that provides comradeship,
enthusiasm, and devotion to all team members.
The Attribution Theory of Leadership
The attribution theory of leadership suggests that a leader's judgment about his
employees is influenced by the leader's attribution of the causes of the employees'
performance. This model has to facets:

1. leader attributions for and reaction to poor performance by subordinates, and

2. observer attributions for and reactions to poor performance by the leader

Leader's Attributional Processes

The attributional approach starts with the position that the leader is essentially an
information processor. Based on information about subordinates and their behaviors,
the leader makes a determination an attribution of the cause of each subordinate's
behaviors and selects strategies to deal with any poor performers.

Attributions are based upon the leader's ability to process information based on three
dimensions on behavior:

Distinctiveness
Did the behavior occur in this task only?
Consensus
Is this level of performance usual for other employees?
Consistency
Is this level of performance usual for this employee?
The answers to these three questions identify for the leader either external (situational)
or internal (personal) causes for the employee's performance. This attribution is critical
to leader employee relations. The judgment of responsibility moderates the leader's
response to an attribution.

Employees (observer) Attributional Processes

Employees, too, attribute certain causes to their leader's behavior. Employees tend to
view their leader as having an effect on their performance. When a team is
unsuccessful, employee will try to distance themselves from their leader.

The leader attempts to make attributions about poor performance. These attributions
are moderated by the three information sources distinctiveness, consistency, and
consensus.
The second is that the leader's behavior or response is determined by the attributions
that he makes. This relationship between attribution and leader behavior is moderated
by the leader's perception of responsibility.

Charismatic Leadership
What sets charismatic leaders apart is that they are “essentially very skilled
communicators, individuals who are both verbally eloquent, but also able to
communicate to followers on a deep, emotional level,” said Ronald E. Riggio, Ph.D.,
professor of leadership and organizational psychology at Claremont McKenna College,
in his Psychology Today article “What is Charisma and Charismatic Leadership?”
Charismatic leaders are often identified in times of crisis and exhibit exceptional
devotion to and expertise in their fields. They are often people with a clear vision in
business or politics and the ability to engage with a large audience.
A charismatic leadership definition is incomplete if it does not focus on the leader
personally. More than other popular leadership styles, charismatic leadership depends
on the personality and actions of the leader — not the process or structure.
Differences between Charismatic Leadership and other Styles
“Charismatic leadership is a leadership style that is recognizable but may be perceived
with less tangibility than other leadership styles,” writes Mar Bell in “Charismatic
Leadership Case Study with Ronald Reagan as Exemplar.”
Charismatic leadership is similar to other styles. Both it and transformational leadership
rely on the ability of the leader to influence and inspire followers. Transformational and
charismatic leaders motivate the individual or those around them to be better and to
work for the greater good of an organization or society. Other similarities include:
 Leaders rally those around them in service of a common goal
 Initiative and boldness are encouraged
The differences between charismatic and transformational leadership styles lie primarily
in how the individual is viewed.
 The personal vision of a charismatic leader has a great deal of influence over his or
her audience
 Charismatic leaders speak about their moral compass or passion rather than an
existing method of doing business

Democratic and Charismatic leaders compared

When compared to democratic leadership, similarities to the charismatic style include:
 They both place considerable responsibility on the leader
 Leaders guide employees, team members or volunteers in a particular direction
 There is often a spirit of collaboration
The differences between charismatic leadership and democratic leadership include:
  In democratic leadership, workers must have high-level skills in addition to the
desire to work
 Democratic leaders are highly rational and deliberate in their style
 Charismatic leaders appeal to the emotions of the audience
 In the charismatic leadership style, working toward a greater good is emphasized
Comparing Autocratic and Charismatic leadership
Likewise, charismatic and autocratic leadership styles share some traits. Both leaders
often increase employee productivity. The key difference: The charismatic leader
typically inspires employees to perform. The autocratic leader uses their authority to
demand high performance. The short-term result is identical, although the long-term
consequences may differ.
Charismatic leaders structure their organizations as they see fit. This is another
example of a crossover between charismatic and autocratic leadership styles. The
intensity of both styles may

Examples of charismatic leadership

Charismatic leaders are from all walks of life. In addition to business, this leadership
style can be found in religious institutions and political and social movements.
Religious examples of charismatic leadership
Martin Luther King, Jr.
Born in 1929, Dr. King followed in the footsteps of his father as a Baptist minister. He
started his civil rights career as the leader of the bus boycott the night that Rosa Parks
was arrested in Montgomery, Alabama. Dr. King’s powerful speeches and belief in
peaceful protest put energy into the civil rights movement. In January 1957, he and
several others founded the Southern Christian Leadership Conference. In 1960, Dr.
King gained national notoriety for his arrest at a lunch counter sit-in, which came to the
attention of presidential candidate John F. Kennedy. He was soon released and went on
to have even greater influence in the fight for civil rights.
Martin Luther King, Jr.’s speeches ignited smaller movements for equal rights through
the American South and beyond. Dr. King is best known for the August 28, 1963, march
on Washington that drew more than 200,000 people. At that march, he delivered his
famous “I Have a Dream” speech. The following year, the Civil Rights Act of 1964 was
passed.
Mother Teresa
Born in Macedonia (now Yugoslavia) as Anjezë Gonxhe Bojaxhiu in 1910, Mother
Teresa was a Roman Catholic nun best known for her work with the poor. Mother
Teresa joined the Sisters of Loreto when she was 18 and moved to India in 1929. As a
novitiate, she was sent to Calcutta and taught at St. Mary’s School for Girls.
In 1946, Mother Teresa abandoned teaching to follow what she considered her calling,
founding the Missionaries of Charity to live and serve in the slums of Calcutta. Over the
course of the 1950s and ’60s, she established a leper colony, an orphanage, a nursing
home, a family clinic and a string of mobile clinics.
In 1971, she traveled to New York to open her first U.S.-based house of charity. In
1985, she spoke at the 40th anniversary of the United Nations General Assembly. By
the time of her death, the Missionaries of Charity numbered over 4,000 sisters with 610
foundations in 123 countries. Her inspiring, devout persona and devotion to a singular
idea make her a good example of a charismatic leader.

Charismatic leadership quotations

Mother Teresa: “Let us always meet each other with smile, for the smile is the
beginning of love.”
Martin Luther King: “Human progress is neither automatic nor inevitable…every step
toward the goal of justice requires sacrifice, suffering, and struggle; the tireless
exertions and passionate concern of dedicated individuals.”
Charismatic leadership style requirements
Common characteristics of leaders with charisma identified by Jay Alden Conger,
leadership expert at the University of Southern California, and Henry Kravis, professor
of leadership at Claremont McKenna College, include:
 Sensitivity to their environment and the needs of their employees or followers
 Articulate and visionary
 Inclined toward personal risk taking
 Adept at using unconventional behavior
Advantages and disadvantages of charismatic leadership
There are many advantages to this leadership style. Charismatic leaders are often a
catalyst for social change. They are, however, not a fit for organizations that depend on
rigid structures and processes to function.
Charismatic leadership pros
 Charismatic leaders inspire people to work together for a common cause
 Organizations are committed to a central mission
 Management prioritizes learning from mistakes in an effort to succeed in their
mission
 Charismatic-led companies tend to be cohesive because their workers have a clear
purpose
Charismatic leadership cons
 Leaders may develop tunnel vision or arrogance, undoing their previous good
deeds
 Organizations can become dependent on charismatic leaders and may suffer if he
or she retires, leaves the company, or dies suddenly
 Charismatic leaders sometimes become unresponsive to their subordinates or
constituents
 These leaders may not learn from their mistakes, compounding them
 Charismatic leaders may believe they are above the law, committing financial or
ethical violations
Benefits of Charismatic Leadership
The world needs charismatic leaders because they fight for quality of life and a better
world. Charismatic leaders have the courage of their convictions. They are willing to
stand up to people who have a differing view of society or the organization.
Charismatic leaders tend to be able to see the gaps between what an organization
delivers to its workers and what the workers need from the organization. They create
visions that their supporters can readily see, and in return the supporters are motivated
to contribute to a common goal.
VISIONARY LEADERSHIP

Visionary Leaders characteristically bring cohesiveness to inspire everyone to be on the

same page. To meet their objectives, they are often charismatic and determined. They
identify themselves as confident coaches who are meant to guide the organization
through transitions or difficult organizational eras.

Visionary Leaders are tasked with helping to move toward innovation and cultivating a
new direction for the company.

Seven Traits of a Visionary Leader

1. Favourable Toward Innovation – Visionary Leaders are focused on moving past

the status quo and ushering in new projects, acquisitions, or initiatives.
2. Resilience – Leaders who were brought in to guide companies through
tumultuous times need to have tenacity and determination. They could likely be
dealing with situations where they have to fight against old ideas, company
politics, and external pressures.
3. Strategic Thinker – Visions have to be planned for and thought about
strategically. Good visionary leaders will prepare for what they want the
organization to look like and create strategies for how they can move towards it.
4. Intelligent Risk Takers – Moving toward a new goal or addressing a vision is a
risk. There is no guarantee that strategies will work, but visionaries are
comfortable with the uncertainty and take as many measures possible to ensure
the plan is successful.
5. Skilled Communicators – Effective visionary leaders have the ability to cause
others to see where they are going and agree to move toward the new vision.
6. Expert Organizers – There is an emphasis on visionary leaders creating the team
around them, they will be a part of the process to put together departments,
functions, and operations that help them reach the new vision.
7. Intensely Focused and Enthusiastic – In the pursuit to improve performance and
spur change, visionary leaders are intensely focused. Their eyes are set toward
the goal, and they will do all in their power to create a pathway to accomplishing
 it. Visionary Leaders have the self-control and self-discipline to effect position
change and inspire those who report to them. One of the most important
characteristics a visionary leader can display is enthusiasm for the vision. Their
passion and zeal should reach others and inspire them to feel the same.

Strengths of Visionary Leaders

 Rallying the Troops

 Keep the Focus
 Promotion of Innovation and Creativity
 Inspires a Sense of Accomplishment

Weaknesses of Visionary Leaders (Mistakes to avoid)

o A One-Track Mind
o Focusing on the Now
o Carrying on in Their Absence
o Other Ideas May Take a Back Seat

Visionary Leadership Best Practices

 Develop a Vision Statement

 Always Seek Improvement
 Share the Vision
 Be Detailed

TRANSACTIONAL LEADERSHIP

Transactional Leadership focuses on results, conforms to the existing structure of an

organization and measures success according to that organization’s system of rewards
and penalties. It depends on self-motivated people who work well in a structured, direct
environment. By contrast, transformational leadership seeks to motivate and inspire
workers, choosing to influence rather than direct others.

Transactional Leaders are someone who value order and structure. They are likely to
command military operations, manage large corporations, or lead international projects
that require rules and regulations to complete objectives on time or move people and
supplies in an organized way. They are not good fit for places where creativity and
innovative ideas are valued. They have formal authority and positions of responsibility in
an organization. This type of leader is responsible for maintaining routine by managing
individual performance and facilitating group performance.

Transactional Leadership theory is based on the idea that managers give employees
something they want in exchange for getting something they want.
Burns’ model of Transactional Leadership (1978)

HONESTY

TRANSAC-
FAIRNESS
TIONAL RESPON-
SIBILITY
LEADER-
SHIP

HONORING
COMMIT-
MENTS

In the 1980s and 90s, researchers including Bernard M. Bass, Jane Howell and Bruce
Avolio defined the dimensions of transactional leadership:

o Contingent reward, the process of setting expectations and rewarding workers for
meeting them
o Passive management by exception, where a manager does not interfere with
workflow unless an issue arises
o Active management by exception, in which managers anticipate problems,
monitors progress and issue corrective measures.
Characteristics of Transactional Leaders:

 Focused on short-term goals

 Favor structured policies and procedures
 Thrive on following rules and doing things correctly
 Revel in efficiency
 Very left-brained
 Tend to be inflexible
 Opposed to change

Advantages of Transactional Leadership

 Rewards those who are motivated by self-interest to follow instructions

 Provides an unambiguous structure for large organizations, systems requiring
repetitive tasks and infinitely reproducible environments
 Achieves short-term goals quickly
 Rewards and penalties are clearly defined for workers

Disadvantages of Transactional Leadership

 Rewards the worker on a practical level only, such as money or perks

 Creativity is limited since the goals and objectives are already set
 Does not reward personal initiative

TRANSFORMATIONAL LEADERSHIP

Transformational Leadership Theory discusses ways to use primary aspects of

transformational leadership in the workplace to create an effective and efficient
environment for workplace success. For transformational leaders, the interests of the
group are more crucial than self-interests.

According to a study in a SAGE publication, transformational leadership is linked to a lot

of positive behaviors that can help businesses run more smoothly:

 They can help future followers grow into leaders by being agents of change
 It can strengthen interpersonal relationships between leaders and those they
manage
 Transformational Leaders are more likely to create a more efficient
communication avenues and an environment of trust and approval.
Principles of Transformational Leadership Theory

1. Inspirational Motivation

Leaders should inspire those that they manage with an emphasis on mission, values,
and vision to create meaning.

2. Intellectual Stimulation

Transformational leaders specialize in shaking up the status quo.

3. Idealized Influence

Leaders should treat every interaction with employees as a chance to inspire

transformational leadership.

4. Individualized Consideration

Leaders then work to recognize the individual talents and skills of each person they
work with.

Additional Qualities

5. Preparation
6. Facilitation
7. Mobilization

How can Leaders Implement Transformational Leadership Principles?

Transformational Leadership dos not just happen; it has to be something that is

cultivated and purposefully pursued. Therefore, there are steps leaders can take to
make this happen.

 Determine a Leadership and Management Style

 Understand the Mission and Vision of the Company
 Start with Encouraging Innovation and Creativity
 Formally Communicate a Switch Toward Transformational Practices
 Implement Change
 Chart Your Course
 Make Coaching and Mentorship a Priority
Best Practices for Transformational Leadership

 Be Comfortable with Experimentation

 Take Personal Responsibility
 Always Look for an Opportunity to Improve
 Keep Higher-Level Needs at the Forefront
 Ideas Should Be of Greater Concern Than Processes

Contemporary Issues in Leadership

Framing Issues

A way to use language to manage meaning

Charismatic Leadership

 Followers make attributions of heroic or extraordinary leadership abilities when

they observe certain behaviors (ex - Martin Luther King and JFK)
 Are charismatic leaders born or made? Can charisma be a liability?

Transactional vs. Transformational Leadership

 Transactional - leaders who guide or motivate their followers in the direction of

established goals by clarifying role and task requirements
 Transformational - leaders who inspire followers who transcend their own self-
interests and who are capable of having a profound and extraordinary effect on
followers.

Visionary Leadership

 The ability to create and articulate a realistic, credible, attractive vision of the
future for an organization or organizational unit that grows out of and improves
upon the present.
 Q: What skills to visionary leaders exhibit? A: The ability to explain the vision to
others, the ability to express the vision not just verbally but through the leader’s
behavior, and the ability to extend the vision to different leadership contexts.

Authentic Leadership: Ethics and Trust Are the Foundations of Leadership

What is “Authentic” leadership?

Leaders who know who they are, know what they believe in and value, and
act on those values and beliefs openly and candidly. Their followers would
consider them to be ethical people.
Trust

 A positive expectation that another will not act opportunistically

 Competence, consistency, loyalty and openness are dimensions of trust
 You cannot lead others who do not trust you! Reengineering, downsizing, and
the use of 'temps' have undermined employee trust in management

Three Types of Trust

 Deterrence Based Trust (based on fear)

 Knowledge Based Trust (based on predictability over time)
 Identification Based Trust (based on mutual understanding of wants and needs)

Contemporary Leadership Roles

Providing Team Leadership

 Many leaders are not equipped to handle the change to teams.

 New skills such as the patience to share information, trust others, give up
authority, and knowing when to intervene are paramount.
 Team leaders are liaisons with external constituencies, troubleshooters, conflict
managers, and coaches

Mentoring
A senior employee who sponsors and supports a less-experienced employee.

Self-Leadership
A set of processes through which individuals control their own behavior.

Online Leadership

Most research has been conducted with “face-to-face” and “verbal”

leadership situations.

What about online leadership? There is no “non-verbal” component (you

cannot “read” the other person via email).

Instead, the structure of words in digital communications can influence

reactions: full sentences, phrases, USING ALL CAPS, formality,
importance/urgency, style (emoticons, jargon, abbreviations, etc). Messages
can convey trust, status, task directives, or emotional warmth.

Writings skills are likely to become an extension of interpersonal skills in the

future.
References:

Medina, R.G. Engineering Management. Motivating, 130-152.

Evans, M. G. (2002). Path-goal Theory of Leadership. Leadership, 115-138.

House, R.J. (1971). A Path-Goal Theory of Leader Effectiveness. Administrative

Science Quarterly. 16, 321-328.

House, R. J., & Mitchell, T. R. (1975). Path-goal theory of leadership (No. TR-75-
67). University of Washington Department of Psychology.

Sagie, A., & Koslowsky, M. (1994). Organizational attitudes and behaviors as a function
of participation in strategic and tactical change decisions: an application of path–goal
theory. Journal of Organizational Behavior, 15(1), 37-47.

https://classroom.synonym.com/three-key-elements-motivation-12134445.html

https://www.slideshare.net/arslanrana712/contemporary-leadership-styles

https://managementhelp.org/management/theories.htm

http://www.strategy-implementation.24xls.com/en425

https://online.stu.edu/articles/education/what-is-charismatic-leadership.aspx