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Chapter 6

  Management Skills:
Leadership & Motivation



         D. Dempsey
Key Areas
• What is Leadership
• 3 Styles of leadership
  • Autocratic
  • Democratic
  • Laissez Faire
• What is Motivation
• 2 theories of Motivation
  • Maslow
  • McGregor
                       D. Dempsey
D. Dempsey
D. Dempsey
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.
                       D. Dempsey
Provides Direction


                            Leads by Example

Leadership
                              Delegates


                          Personal Charisma
             D. Dempsey
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

                                     D. Dempsey
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
                        D. Dempsey
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
                     D. Dempsey
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
                        D. Dempsey
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

                     D. Dempsey
See Handout
             for Examples




D. Dempsey
Democratic Leader
• Shares power and control
• Delegates authority
• Seeks opinions and ideas before making
  decisions
• Persuades rather than orders
• Builds up trust with staff

                     D. Dempsey
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

                     D. Dempsey
D. Dempsey
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



                      D. Dempsey
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


                          D. Dempsey
D. Dempsey
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


                    D. Dempsey
What Motivates You?




        D. Dempsey
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

                           D. Dempsey
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


                      D. Dempsey
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




                                     D. Dempsey
D. Dempsey
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

              D. Dempsey
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


                            D. Dempsey
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
                              D. Dempsey
McGregor recommended the Theory Y
approach as it brings much better results

 In contrast he believed that Theory X
       acts as a poor motivator



                  D. Dempsey
D. Dempsey
D. Dempsey
D. Dempsey

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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 D. Dempsey
  • 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. D. Dempsey
  • 6. Provides Direction Leads by Example Leadership Delegates Personal Charisma D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 12. See Handout for Examples D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 20. What Motivates You? D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey
  • 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 D. Dempsey

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