Chapter 6 lc business management skills leadership and motivation
1. Chapter 6
Management Skills:
Leadership & Motivation
D. Dempsey
2. Key Areas
• What is Leadership
• 3 Styles of leadership
• Autocratic
• Democratic
• Laissez Faire
• What is Motivation
• 2 theories of Motivation
• Maslow
• McGregor
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5. Leadership
• Is the ability to influence people to follow a
particular path or direction.
• A good leader gains the support, hard
work, loyalty, and respect of fellow workers.
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6. Provides Direction
Leads by Example
Leadership
Delegates
Personal Charisma
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7. NB.. Note
Q
Delegation
Means passing on duties/ responsibilities from superiors to
subordinates and also passing on a sufficient level of authority to
enable the duties to be performed properly.
Some Managers don’t delegate for the following reasons:
• A belief that no-one can do the work as well as themselves
• Fear that others will do the work better
• Fear that someone else will get promoted above them
• Fear that they will not receive all the credit
• Fear that others will think they cannot cope
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8. Benefits of Delegating work
• Greater involvement of workers
• Work is completed faster due to full utilisation of
skills and abilities
• Workers morale improves and they gain
experience in handling authority and decision
making
• Objectives are achieved quicker
• Increased productivity = increased profit
• Managers have more time for other matters
• Managers experience less stress
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9. Disadvantages of Delegation
• Danger of task not being done properly as a
result of incompetent subordinates
• Danger of resentment, jealousy among rest of
the staff
• Those who are delegated work may want
extra pay
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10. Leadership Styles
Autocratic Leader
• Likes to be very much in charge
• Delegates little authority to others
• No consultation on decisions
• Fear + threats used as motivators
• No trust in employees...resentment +
demoralisation
• Can be effective in short term where
leader is an expert in specialised area
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11. Autocratic Leader
Advantages
• Decisions made and implemented quickly
• Suits org’ where discipline is important
Disadvantages
• Valuable opinions and ideas are left out
• Manager is overloaded with work
• Frustrated and poorly motivated staff
• Morale declines, high staff turnover
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13. Democratic Leader
• Shares power and control
• Delegates authority
• Seeks opinions and ideas before making
decisions
• Persuades rather than orders
• Builds up trust with staff
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14. Democratic Leader
Advantages
• Good Quality Decisions
• Staff feel valued and motivated
• Initiative and intrapreneurship are encouraged
Disadvantages
• Decisions are delayed
• Trying to incorporate everyone could result in
poor decisions
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16. Laissez-Faire Leader
• Lets staff set their own goals
• Delegates almost all the authority to
subordinates. A lot of Trust.
• Referred to as “Free Rein” or “Spectator”
leadership
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17. Laissez-Faire
Advantages
• Highly motivated workers, high levels of
intrapreneurship
• Managers are free to deal with other matters
• Some people flourish with extra freedom
Disadvantages
• Subordinates inexperience may result in bad decisions
• Problems may become serious before noticed
• Lack of direction leads to confusion, wasted resources
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19. Motivation
Set of forces that cause people to behave in
certain ways.
Motivation refers to those factors which drive
us to undertake particular tasks, to work
hard, and achieve goals
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21. In Business the usual motivator is…
1. The Pay Packet at the end of the week
2. Good Working Conditions
3. Profit Sharing Schemes
4. Promotion
5. Recognition/Praise
6. Industrial Democracy/worker participation
7. Benefits in Kind/Perks
8. Job security
9. Trusting relationship between staff and management
10.Employee share option schemes
11.The Job Itself
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22. NB
Maslow’s Hierarchy of Needs
Arranged human needs in a hierarchy
Once a need is satisfied, it no longer is a
motivator and a person is motivated by the next
need on the pyramid
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23. Maslow’s Hierarchy of needs NB
How can a Manager
Needs satisfy those needs
Interesting, Challenging Work,
Achieving personal goals, Career Development
Realising ones potential
Job Title, Company Car,
Status, Respect and
Promotion, Authority, Praise,
Recognition
Awards
Teamwork, Friendly
Acceptance within a peer group
Atmosphere, Social Activities
Feeling Secure and Safe at work Job security, Pension, Allow
+ feeling secure about future Union Membership
(Recognition)
Food, shelter, Warmth Good Wages, Canteen
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25. McGregor’s Theory X & Theory Y NB
Douglas McGregor (1906-64) studied
what managers believe about their
workers and decided that managers
fall into 2 types:
Theory X and Theory Y
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26. Theory X
Theory X managers believe that:
• Most workers dislike work
• Most workers avoid responsibility and lack ambition.
• Most workers dislike change and resist it
Therefore Managers believe that they must:
• Supervise the workers very closely
• Offer Incentives and bonuses to get good work done
• Threaten workers with sanctions
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27. Theory Y
Theory Y Managers believe that:
• Most workers enjoy work if it its interesting and challenging
• Most workers are motivated if consulted about how work
should be done
• Most are committed and ambitious if encouraged.
Therefore these managers believe that they must:
• Make work interesting and challenging for workers
• Try to satisfy the higher needs of the workers.
• Discuss how work should be done, and set agreed objectives
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28. McGregor recommended the Theory Y
approach as it brings much better results
In contrast he believed that Theory X
acts as a poor motivator
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