University:
Massachusetts Institute of Technology
Course:
15.992 | S-Lab: Laboratory for Sustainable Business
Academic year:

2023
Views:

191

Pages:

49
Author:

Finnyvoxys5

Chapter 15 Motivation and Leadership What Would You Do? Leadership: Dealing with tragedy  Sandler O’Neill is an investment banking firm located in the World Trade Center on September 11  Top leaders are lost in tragedy  Can new leadership help the firm survive this catastrophic event? Learning Objectives: What is Motivation? After reading the next section, you should be able to: 1. explain the basics of motivation Basics of Motivation Basics of Motivation     Effort and performance Need satisfaction Extrinsic and intrinsic motivation Motivating with the basics Work Performance and Motivation Effort and Performance Job performance = Motivation x Ability x Situational constraints  Job performance   Motivation   effort put forth on the job Ability   how well someone performs a job knowledge, skills, and talent of job incumbent Situational constraints  factors beyond individual’s control impacting performance Need Satisfaction  Needs    physical or psychological requirements that must be met Unmet needs motivate people Four approaches     Maslow Alderfer McClelland Herzberg Need Satisfaction and Motivation Extrinsic and Intrinsic Rewards  Extrinsic rewards    tangible and visible to others contingent on performance Intrinsic rewards   natural rewards associated with performing a task for its own sake Rewards and Motivation Motivating with the Basics     Ask people what their needs are Satisfy lower-order needs first Expect people’s needs to change Satisfy higher-order needs by looking for ways to allow employees to experience intrinsic rewards Learning Objectives: How Perceptions and Expectations Affect Motivation After reading the next two sections, you should be able to: 2. use equity theory to explain how employees’ perceptions of fairness affect motivation 3. use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation Equity Theory    Components of equity theory How people react to perceived inequity Motivating with equity theory Components of Equity Theory  Inputs   Outcomes   rewards employees receive from the organization Referents   employee contributions to the organization others with whom people compare themselves Outcome/Input ratio  comparison of outcomes to inputs Outcome/Input Ratios Inequity  When people perceive that their O/I ratio is different from their referent’s. Underreward    referent’s O/I ratio is greater than yours experience anger or frustration Overreward   referent’s O/I is less than yours possibly experience guilt How People React to Perceived Inequity (Underreward)      Reduce inputs Increase outcomes Rationalize inputs or outcomes Change the referent Leave Equity and Motivation Motivating with Equity Theory    Look for and correct major inequities Reduce employees’ inputs Make sure decision-making processes are fair   distributive justice procedural justice Expectancy Theory Components of expectancy theory Motivating with expectancy theory Components of Expectancy Theory  Valence   Expectancy   the attractiveness or desirability of a reward perceived relationship between effort and performance Instrumentality  perceived relationship between performance and rewards Motivation = Valence x Instrumentality x Expectancy Expectancy and Motivation Motivating with Expectancy Theory    Systematically gather information to find out what employees want from their jobs Clearly link rewards to performance Empower employees to make decisions that enhance expectancy perceptions Learning Objectives: What is Leadership? After reading the next two sections, you should be able to: 4. explain what leadership is 5. describe who leaders are and what effective leaders do Leadership Leaders versus managers Substitutes for leadership: Do leaders always matter? Managers versus Leaders Substitutes for Leadership: Do Leaders Always Matter Leadership substitutes  subordinate, task, or organizational characteristics that make leaders redundant or unnecessary  professional orientation, intrinsically satisfying work, cohesive work groups Leadership neutralizers  subordinate, task, or organizational characteristics that interfere with a leader’s actions  subordinate’s ability, intrinsically satisfying work, organizational rewards beyond leader’s control Who Leaders Are and What Leaders Do   Leadership traits Leadership behaviours Leadership Traits        Drive Desire to lead Honesty/integrity Self-confidence Emotional stability Cognitive ability Knowledge of the business What Really Works Leadership Traits Do Make a Difference Intelligence Dominance Extroversion What Really Works Performance and Charisma Charisma and Perceived Leader Effectiveness Charisma and Leader Satisfaction Leadership Behaviours  Initiating structure   degree to which leader structures followers’ roles by setting goals, giving directions, setting deadlines, and assigning tasks Consideration  extent to which a leader is friendly, approachable, supportive, and shows concern for employees Learning Objectives: Situational Leadership After reading the next two sections, you should be able to: 6. explain Fiedler’s contingency theory 7. discuss Hersey & Blanchard’s situational theory Putting Leaders in the Right Situation: Fiedler’s Contingency Theory    Leadership style: Least preferred coworker Situational favourableness Matching leadership styles to situations Fiedler’s Contingency Theory Leadership Style: Least Preferred Co-worker  Leadership style is the way a leader generally behaves toward followers   leaders are generally incapable of changing their leadership styles Style is measured by the Least Preferred Co-worker scale (LPC)   relationship-oriented task-oriented Situational Favourableness   How a particular situation either permits or denies the leader’s ability to lead Three factors    leader-member relations task structure position power Situational Favourableness Matching Leadership Styles to Situations Adapting Leader Behaviour: Hersey & Blanchard’s Situational Theory Situational leadership  leaders need to adjust their leadership styles to match followers’ maturity Worker maturity   ability and willingness of worker to take responsibility for directing one’s own work four levels of maturity:     M1 M2 M3 M4 – – – – neither willing nor able willing but not able able but not willing able and willing Leadership Styles   Leader chooses style based on worker’s maturity for a specific task Four styles:     telling — high task/low relationship selling — high task and relationship participating — low task/high relationship delegating — low task and relationship Strategic Leadership After reading this next section, you should be able to: 8. explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership Visionary Leadership Charismatic leadership Transformationa l leadership Charismatic Leadership   Creates an exceptionally strong relationship between leader and followers Charismatic leaders:     articulate a clear vision based on strong values model those values communicate high expectations to followers display confidence in followers’ abilities Types of Charismatic Leaders  Ethical charismatics       provide development opportunities for followers open to positive and negative feedback recognize others’ contributions share information emphasize interests of the group Unethical charismatics     control and manipulate followers do what is best for themselves not the organization only want positive feedback only share information beneficial to themselves Transformational Leadership     Generates awareness and acceptance of group’s purpose and mission Gets employees to see beyond their own needs and self-interest Goes beyond charismatic leadership Different from transactional leadership Transformational Leadership Transformational leaders are visionary and they use:    Inspirational motivation Intellectual stimulation Individualized consideration What Really Happened? Leadership: Dealing with Tragedy  Deceased employees’ families    given pay check for the rest of the year insurance coverage for five years Jimmy Dunne became manager and provided strong leadership  developed skills in negotiation, calmness, patience, support, while maintaining strong business focus