CHAPTER SIX

LEADING/DIRECTING
 Leading is the process of integrating the people with the organization so as
to obtain their willing and enthusiastic cooperation for the achievement of
its goals.
 According to Stoner, Freeman and Gilbert, leadership is the process of
directing and influencing the task related activities of group members.
 Leading is the process by which managers seek to influence subordinates
to accomplish goals by communicating with them.
At the top of any organizations leading is most concerned with:
 Establishing values, cultures and climate
 Defining vision
 Identifying core competencies
 Scanning environments
 Sensing the need for change
 The importance of the directing function
 Directing initiates by giving directives and guidance to employees
 Directing integrates employees’ effort by coordinating actions of
the members and leading toward the objectives
 Directing attempts to get the maximum out of individuals by
providing ways to fully utilize the potentials and capabilities of
employees.
 Directing facilitates changes by incorporating environmental and
internal changes into the organization
 Directing provides stability by balancing the different parts of the
organization.
 Elements of Leading
 Leading has three major components/elements: leadership, motivation and communication.

A. Leadership
 Leadership is the art of influencing individual or group activities towards the
achievement of organizational objectives.
 Leaders are extremely important in a variety of organizations.

Leadership has the following features

 Leadership involves people
 Leadership involves unequal distribution of power between leaders and group
members.
 Leadership has the ability to use the different forms of power to influence
follower’s behaviors in a number of ways.
 Leadership constitutes values.
 Leadership Styles

 Leadership style implies the way in which the leader exercises leadership
 it is the way in which the functions of leadership are carried out
 It is the way how the leaders behave towards their subordinates in the
accomplishment of the work.
 1. Autocratic style/ “I” approach:
 A manager who uses autocratic style does not share decision making
authority with subordinates.
 The manager makes the decision and then announces it.
 Autocratic managers may ask for subordinates’ ideas and feedback
about the decision, but input does not usually change the decision
unless it indicates that something vital has been overlooked.
 The hallmark of this style is that the manager, who retains all the
authority, executes the entire process.
Consequently, the autocratic style is sometimes called
the “I” approach.
 2. Participative/ Democratic/“We”
approach
 Managers who use the participative style share decision making
authority with subordinates.
 The degree of sharing can range from the manager’s presenting
a tentative decision that is subject to change to letting the group
or subordinate participate in making the decision.
 Sometimes called the “we” approach, participative management
style involves others and lets them bring their unique viewpoints,
talents, and experiences to bear on an issue.
 This style is strongly emphasized today because of the trends
toward downsizing, employee empowerment and worker teams.
 3. Laissez faire style/Free rein style/
“They” approach
 often called “they” approach or the spectator style, the free rein
style empowers individuals or groups to function on their own,
without the involvement from the managers to whom they report.
 The style relies heavily on delegation of authority and works best
when the parties have expert power, when participants have know
how to use the tools and techniques needed for their tasks.
 Under this style, managers set limits and remain available for
consultation.
 Free rein leadership works particularly well with managers and
experienced professionals in engineering, design, research, and
sales. Such people generally resist other kind of supervision.
 4. Employee oriented vs. Task oriented
leadership style
i. Employee oriented leadership style: The leader focuses on the
people, considering their feelings and the quality of their mutual
relationship.
 The essence of this leader’s style is sensitivity to subordinates as
persons. They seek friendly, trusting and respectful relationships
with employees.
i. The task oriented leadership style: The leader focuses on the
task to be performed, the progress being made, and the means of
accomplishing the work. The leader closely supervises
employees to make sure the task is performed satisfactorily. The
emphasis is given on getting the job done, rather than
employee’s growth or personal satisfaction.
 Theories of Leadership

1. Trait Theory of Leadership:

 Traits are inborn and inherent personal qualities of individuals.
 This theory believes leaders possess certain specific inborn traits, which
are inherited rather than acquired.
 It has its root from “the great man theory” dating back to the ancient
Greeks and Romans time, holds that leaders are born not made.
 The trait theory studies focused on the personal traits of leaders and
attempted to identify a set of individual characteristics that distinguish
leaders from followers and also successful leaders from unsuccessful
ones. In general, trait theory hasn’t been fruitful approach to explain
leadership.
 Con’t…
2. The Behavioral Theory of Leadership: The behavioral
theory of leadership focuses on what leaders do rather than their
traits.
Studies showed that one set of traits/leadership styles might not be
equally appropriate in all situations.
This theory suggested that there were two distinct types of
leadership which are known as employee oriented/people oriented
and task/production oriented.
 Con’t…
3. The Situational/Contingency Theory of Leadership:
 According to this theory, leadership is strongly affected by a situation
from which a leader emerges and in which he/she works.
 It is a function of the leader, the followers and the situation.
 It attempts to discover that the one unique set of leadership traits were
largely unsuccessful.
 Modern management theories are more prone to the belief that
leadership is more complex; that is, it can not be represented by one
set of traits or by single set of behavior. Thus, effective leadership
behavior depends on the environment or the situation.
 B. Motivation
 Motivation is the act of stimulating someone or oneself to take a desired
course of action.
 It is the act or process of furnishing with an incentive or inducement
( encouragement ) to action.
 It is an internal drive that pushes people to do something.
 Theories of Motivation

 There are several theories of motivation.

 In general, these theories can be grouped into two as content
theories and process theories.
 Theories that belong content theories include: Abraham
Maslow’s hierarchy of needs theory, Herzberg’s two factor
theory, McClelland’s need for achievement theory and Alderfer’s
ERG theory.
 Theories that belong to process theories include: V. Vroom’s
expectancy theory, B.F. Skinner’s reinforcement theory, equity
theory and goal setting theory.
 Content Theories:
 These theories focus on the factors within the person that
energize, direct, sustain, and stop behavior. They attempt to
determine the specific needs that motivate people.
1. Maslow's Need Hierarchy Theory
 This is one of the most widely known theories of motivation.
 The critical part of this theory is that needs are arranged in
hierarchy. Since one need does not disappear when another
emerges, all needs tend to be partially satisfied in each area.
 According to Maslow, human needs can be categorized into five
as: physiological needs, safety needs, social needs, esteem needs
and self actualization needs.
A.Physiological Needs:
 The physiological needs are at the bottom of the hierarchy because
they tend to bear the highest strength until they are reasonably
satisfied.
 Unless these needs are satisfied to the degree necessary for the
efficient operation of the body, the majority of a person’s activities
will probably be at this level.
 The other levels will provide him with little motivation.
 These needs include the need for food, shelter, cloth, water, rest, air,
sex etc.
 They are survival needs without which human being’s survival will
be in danger.
 Con’t…
B. Safety Needs: until the physiological needs of the
human race are addressed to a reasonable degree, safety
needs will not be fully addressed.
 The degree of reasonableness is subjective. In this
hierarchy comes the need for safety- a need for being
free of physical danger also referred to as self-
preservation. These needs show the need to live in an
environment where there is no harm.
 Con’t….
C. Social Needs:
 After the first two needs are satisfied, social needs become important in the need
hierarchy.
 This category includes the need for friendship, affection, acceptance, and
interaction with others.
 Since man is a social being, he has a need to belong and to be accepted by
various groups.
 When social needs become dominant, a person will strive for meaningful
relations with others.
 If the opportunity for association with other people is reduced, individuals often
take vigorous action against the obstacles to social interaction.
 In the organization, individuals form informal group environments.
 Con’t….
D. Esteem Needs(Ego):
 Esteem needs are concerned with self-respect, self-confidence, a
feeling of personal worth, feelings of being unique and a need to be
recognized by one and all.
 Satisfaction of these needs produces feelings of self-confidence,
prestige, power and control.
 The satisfaction of esteem needs is not always obtained through
mature or adaptive behavior.
 It is sometimes generated by disruptive and irresponsible actions.
Some of the social problems have their roots in the frustration of
esteem needs
 Con’t…
E. self-actualization Needs:
 includes self fulfillment and realization of one’s potential.
 Self-actualization is the need to maximize one’s potential, whatever it may
be. This is related to the development of intrinsic capabilities which lead
individuals to seek situations which can utilize their potential. This includes
competence which implies control over environmental factors, both physical
and social, and achievement. An individual with high levels of achievement
needs will be restless unless he can find fulfillment in doing what he is
trained to do best. As Maslow puts it, "this need might be phrased as the
desire to become more and more what one is, to become everything that one
is capable of becoming."
 2. Herzberg’s Two Factor Theory

The findings of the two factor theory indicate that the work characteristics
associated with satisfaction are quite different from those pertaining to
dissatisfaction which prompted the notion that two factors influence work
motivation, namely hygiene factors and motivation factors.
Hygiene factors include salary, job security, status, company policies,
quality of technical supervision and quality of interpersonal relationships
among peers, supervisors and subordinates. These are the primary elements
involved in job dissatisfaction.
When present in sufficient amount, they have no effect; when absent, they lead
to job dissatisfaction.
 Con’t…
Motivation factors include achievement, recognition, responsibility,
advancement, the job itself and possibility of growth. These are the primary
elements involved in job satisfaction. When present, they can stimulate
personal and psychological growth.
 b) Process Theories of Motivation:
1. Vroom’s Expectancy Theory
 this theory is based on the belief that people will act to maximize their
rewards. Vroom defines motivation as a process governing choices among
alternative forms of voluntary activities. Motivation-the spur to act- is a
function of how badly we want something and how likely we think we are to
get it. Its intensity functions in direct proportion to perceived or expected
rewards.
Expectancy theory includes three variables:
 Effort-Performance link: will the effort achieve performance? How much effort will
performance require? How probable is success
 Performance-reward link: what is the possibility that a certain performance will
produce the desired reward or outcome?
 Attractiveness/valence: how attractive is the reward? This factor relates to the strength
or importance of the reward to the individual and deals with his or her unsatisfied
needs.
 2.Adam’s Equity Theory:
 This theory states that people’s behavior relates to their
perception of the fairness of treatment they receive.
 It also includes the fairness that an individual perceives in the
relationship between effort expended and reward.
 People calculate equity by calculating a simple ratio: the efforts
they are expected to invest on the job (their input) in relation to
what they expect to receive after investing that effort (their
outcome).
 Equity exists when the ratios are equivalent.
 Inequity exists when, in the employee’s mind, inputs exceed the
relative or perceived values of the outcomes.
 3. Skinner’s Reinforcement
 states that behaviors result in desirable consequences are likely to recur; and
those that result in undesirable consequences will be less likely to recur.
There are various types of reinforcement as mentioned below.
 Positive reinforcement: is a type of reinforcement that strengthens behavior
by providing a desirable consequence when a desirable behavior occurs.
Thus, it increases the likelihood that a desired behavior will be repeated.
Positive reinforcement can be praise, pay, or promotion.
 Avoidance: this reinforcement attempts to increase the probability that a
positive behavior will be repeated by showing the consequences behavior
the manager does not desire. The employee is allowed to avoid those
consequences by displaying the desired behavior. For example, a manager
has a policy of penalizing all employees who do not turn in reports in time.
 Extinction: managers can ignore the behavior of subordinates in order to
weaken the behavior. This approach is most effective when behavior is
temporary and not serious. The supervisor’s hope is that behavior will go
away or disappear soon if it is ignored.
 Punishment: managers might attempt to decrease the recurrence of a
behavior by applying negative consequences.
 Theory X and Theory Y

 Douglas McGregor, a professor of industrial management, said that an

individual’s management philosophy reflects one of two assumptions about
workers.
 He called the two sets theory X and theory Y. Theory X is a philosophy of
management with a negative perception of subordinates’ potential for work
and attitudes toward them.
 It assumes that subordinates dislike work, are poorly motivated, and require
close supervision. A manager with these beliefs tends to control the group,
use negative motivation, and refuse to delegate decision making.
Theory Y is philosophy of management with a positive perception of
subordinates’ potential for attitudes toward work. It assumes that
subordinates can be self directing, seek responsibility and find work as natural
as play or rest. The outcome of this belief is a manager who encourages people
to seek responsibility, involves people in decision making, and works with
people to achieve their goals.
Communication
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