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DIRECTING FUNCTION

LEADERSHIP
Meaning and importance of leadership
 Leadership theories & Leadership styles:
 Motivation & communication
 Meaning & nature of motivation
 Motivation theories
 Meaning and process of communication

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DIRECTING FUNCTION

After discussing the chapter, you will be able to:


Mention the meaning & importance of leading
Define leaders & leadership
Describe leadership effectiveness
Discuss early leadership theories
Explain contingency theories of leadership
Explain the styles of leadership
Identify contemporary views on leadership
Describe leadership issues in the 21st century
Comprehend communication & motivation in
organization
DIRECTING FUNCTION
Meaning & importance of directing
 In this unit, the terms directing & leading can be used
interchangeable
Definition
 Leading is the management function aimed at setting
organization’s members move in the direction that will achieve
its objectives
 Leading is placing oneself before the group, facilitating
progress & inspiring followers to accomplish organizational
objectives
 Therefore, directing or leading
 is building a climate that provides leadership & arranges the
opportunity for motivation
Is not deriving or pushing from behind
DIRECTING FUNCTION
The importance of directing/leading
 Directing/leading is an important function of
management
 Accordingly, managers should be good leaders
This is b/c organizations will never be successful unless they
have effective leaders
 Effective leaders are those who create conducive
environment in the organization
 Some of the importance of the directing function:
 Initiate actions by giving directives & guidance to employees
 Integrates employees’ effort by coordinating their actions to
attain organizational objectives
 Attempts to get the maximum output from employees by fully
utilizing their potentials 4
DIRECTING FUNCTION
Importance of directing /leading
 In general, directing enables subordinates to contribute their
best to attain the goals of the organization
 In order to employees contribute towards organizational goal
attainment managers
 Should try to integrate both organizational & individual
objectives
 Must be good leaders (providing effective leadership)in guiding,
counseling & influencing subordinates
 Should win subordinates confidence & acceptance
 Note: whatever amount of capital invested & technology
an organization has, without effective leadership the
organization will not be successful
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DIRECTING FUNCTION

Why leadership is so important?


Leaders & leadership
 Leader is someone who can influence others &
who has managerial authority
 Leadership is what leaders do: the process of
influencing a group to achieve goals
 Leadership is the ability of an individual to
influence, motive & enable others to contribute
toward the effectiveness & success of the
organization (House et al., 1999)

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DIRECTING FUNCTION
Leaders & leadership
 Leadership is the process of influencing others to facilitate the
attainment of organizational relevant goals (Ivancevich,
1999,p.409)
 Leadership is both a process & a property (Heiftz & Lauries,
1997:124)
 As a process leadership is the use of non-coercive influence to:
 Shape the group’s or organization’s goals.
 Motivate behavior toward the achievement of those goals
 Help define group or organization culture
 As a property leadership is the set of characteristics attributed to
individuals who perceived to be leaders

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DIRECTING FUNCTION
Management vs. leadership
 Management is a broad subject that encompasses activities such as
planning, organizing, directing & controlling
 Leadership, in contrast focuses on the aspects of people for getting
a job done through inspiring, directing & gaining commitment
towards organizational activities & goals
 Thus, leadership is one aspect of management & complements it
 Normally, managers can be effective leaders if:
 They understand what motivates their subordinates & how
these motivations operate.
 They reflect this understanding in carrying out their managerial
actions
 Because people tend to follow those who, in their view, offer them
a means of satisfying their own personal goals
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DIRECTING FUNCTION
Leadership effectiveness
Excellent leaders are born as well as made
To be the best, however, learn the essential skills
of leadership through:
 Formal training courses
 On-the-job experience
 In general, leadership effectiveness can be
enhanced by:
 Focusing on quality
 Learning from others
 Gaining experiences
 Mastering key leadership roles 9
DIRECTING FUNCTION
leadership influence followers
 why do people accept the influence of a leader?
 One major reason is that leader have power
 Power is the capacity to affect the behavior of others (i.e.,
power is the ability to influence the beliefs or actions of other
persons )
 There are five major type of power:
 Legitimate power: the power a leader has a result of his/her
position
 Coercive power: the power a leader has to punish or control
 Reward power: the power to give positive benefits or rewards
 Expert power: the influence a leader can exert as a result of
his/her expertise, skills, or knowledge
 Referent power: the power a leader that arise b/c of a person’s
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desirable resources or admired personal trait
DIRECTING FUNCTION
 Theories of Leadership
 Trait theory
 Behavioral Theories
 Contingency theories
 Contemporary view on leadership
 Meaning and Theories of Motivation
 Content Theories
 Maslow's Hierarchy of Needs
 Herzberg's Two-Factor Theory
 Process Theories
 Reinforcement Theory
 Jeremy Bentham’s “The Carrot and the Stick Approach”
 Communication
 Communication Process
 Types of Communication
 Characteristics of Communication
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DIRECTING FUNCTION
Theories of Leadership
 Leadership does not take place in a vacuum
 There are three important variables with which every leader must
deal (Ivancevich, 1999.p.408)
 The people who are being led
 The task that the people are performed
 The environment in which the people & the task exist
 B/c these three variables are different in every situation, what is
expected & needed from a leader will be different in every
situation
 Consequently, there are multitude of leadership definitions based
on:
 leader characteristics- traits or attributes
 Leader behaviors- behavior exhibited
 Leadership situation – situational variable (task, people, environment)
 Outcome or end results – latest approaches to leadership 12
DIRECTING FUNCTION
The Evolution of leadership theory

Trait theory • 1920-50

Behavioral • 1960
theory

Situational
• 1970-80
theory

Contemporary 1990 0n
theory ward

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DIRECTING FUNCTION
The Evolution of leadership theory
Trait theory (1920s-30s)
 Focused on identifying personal characteristics/ traits that differentiated leaders
from non-leaders
 Assumed that leaders shared certain inborn personality traits
 View that some people are born leaders
 Focused on what an effective leader is, not on how to effectively lead
 Later research on the leadership process identified seven traits associated with successful
leadership
1. drive. Leaders exhibit a high effort level. They have a relatively high desire for
achievement: they are ambitious; the have lot of energy; they are tirelessly persistent in
their activities; and they show initiative
2. Desire to lead. Leaders have a strong desire to influence and lead others, they
demonstrate the willingness to take responsibility
3. Honesty and integrity. Leaders build trusting r/nship b/n themselves and followers by
being truthful or non-deceitful and by showing high consistency b/n word and deed
4. Self- confidence. Followers look to leaders for an absence of self-doubt. Leaders,
therefore, need to show self-confidence in order to convince followers of the rightness of
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their goals and decisions.
DIRECTING FUNCTION
The Evolution of leadership theory
Trait theory (1920s-30s)
5. Intelligence. Leaders need to be intelligent enough to gather, synthesize, and
interpret large amounts of information, and they need to be able to create visions,
solve problems, and make correct decisions
6. Job –relevant knowledge. Effective leaders have a high degree of knowledge
about the company, industry, and technical matters. In-depth knowledge allows
leaders to make well informed decisions and to understand the implications of
those decisions.
7. Extraversion. Leaders are energetic. Lively people. They are sociable, assertive,
and rarely silent or withdrawn
 Yet, trait theory does not make a judgment as to whether:
 The traits can be developed through training & education
 Two leaders are alike
 A leader possesses all of the traits
 Traits of leaders depend on the situation
 Therefore, it was unsuccessful 15
DIRECTING FUNCTION
Behavioral Theories
 the behavioral approach looked at what good leaders do.
 Are they concerned with getting a task done, for instance, or do they concentrate
on keeping their followers happy and maintaining high morale?
 there are different behavior theories of leadership:
 University of lowa studies
 Ohio State university
 University of Michigan
University of Lowa studies (kurt lewin)
 Identifies three leadership styles:
 Autocratic style: low participation, directing & centralized authority
 Democratic style: involvement, delegation, high participation & feedback
 Laissez-fair style: hands- off lenient management, group freedom to make
decisions
 Research findings: mixed result
 No specific style was consistently better for producing better performance
 However, employees were more satisfied under democratic leader than
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autocratic leader
DIRECTING FUNCTION
The Evolution of leadership theory
Behavioral Theories
Ohio state studies
 Identifies two dimensions of leader behavior
 initiating structure: refers to defining the leader’s role & the
roles of group members
 The emphasis is on achieving goals
 Consideration: that reflects friendship, mutual trust, respect, and
warmth in the relationship between leader and followers
 The emphasis is on employees welfare
 Research findings: mixed results
 High- high leaders generally achieved high group task
performance & satisfaction, but not always
 Evidence indicated that situational factors appeared to strongly
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influence leadership effectiveness
DIRECTING FUNCTION
The Evolution of leadership theory
Behavioral Theories
University of Michigan studies
 Identifies two dimensions of leader behavior
 employee oriented: emphasizing interpersonal
r/nships & taking care of employees needs
 Production oriented: emphasizing task
accomplishment & technical aspect of the job
 Research findings
 Leaders who are employee oriented are strongly
associated with high group productivity & higher job
satisfaction
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DIRECTING FUNCTION
The Evolution of leadership theory
Contingency theories
 The main proposition in contingency approaches is that
the effectiveness of a given leadership of a given
leadership style is contingent on the situation, implying
that certain leaders behaviors will be effective in some
situations but not in others
 The main contingency models:
 The Fiedler contingency model
 The Hersey & blenchard model
 The path goal model
 The Vroom &Yetton model
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DIRECTING FUNCTION
BOSS-CENTERED LEADERSHIP SUBORDINATE-CENTERED LEADERSHIP

Use of authority
by the manager
Area of freedom
for subordinates

Manager Manager Manager Manager Manager Manager Manager


makes “sells” presents presents presents defines permits
decision decision ideas and tentative problem, limits; subordinates
and invites decision gets asks group to function
announces questions subject to suggestions, to make within
it change makes decision limits
decision defined by
superior

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DIRECTING FUNCTION
Factors influencing leadership effectiveness
Leader’s
perceptu
Leaders al
background accuracy Behavior &
experience & expectation of
personality supplier

Followers Leaders
background Requireme
experience & performance
nt of the job
personality effectiveness

Organizatio
nal culture Task
& policy Behavior &
understanding
expectation
of peers &
MBA Program, Haile Y
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DIRECTING FUNCTION
The Evolution of leadership theory
Contemporary view on leadership
 Transformational
 Coaching
 Super leadership
 Servant leadership
 Entrepreneurial leadership
 Note: you have to refer appropriate source & comprehend
them

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DIRECTING FUNCTION
Motivation Theories
Meaning of Motivation
 Motivation is the inner state that causes an individual to behave
in a way that ensures the accomplishment of some goal
 Thus, motivated behaviors are voluntary choices controlled by
the individual employee.
 The supervisor (motivator) wants to influence the factors that
motivate employees to higher levels of productivity.
 Motivation is to inspire people to work, individually or in
groups in the ways such as to produce best results. It is the will
to act.
 It is the willingness to exert high levels of effort towards
organizational goals, conditioned by the efforts and ability to
satisfy some individual need.
 Motivation is getting somebody to do something because they
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want to do it.
DIRECTING FUNCTION
Motivation Theories
Meaning of Motivation
 Factors that affect work motivation include individual
differences, job characteristics, and organizational
practices.
 Individual differences are the personal needs, values,
and attitudes, interests and abilities that people bring to
their jobs.
 Job characteristics are the aspects of the position that
determine its limitations and challenges.
 Organizational practices are the rules, human resources
policies, managerial practices, and rewards systems of
an organization.
 Supervisors must consider how these factors interact to 24
affect employee job performance.
DIRECTING FUNCTION
Motivation Theories
Theories of Motivation
 Two primary approaches to motivation are content and process.
Content Theories
 The content approach emphasizes what motivates employees,
focuses on the assumption that individuals are motivated by the
desire to fulfill inner needs.
Maslow's Hierarchy of Needs
 It identifies five levels of needs, which are best seen as a hierarchy
with the most basic need emerging first and the most sophisticated
need last.
 People move up the hierarchy one level at a time. Gratified needs
lose their strength and the next level of needs is activated. As basic
or lower-level needs are satisfied, higher-level needs become
operative. 25
DIRECTING FUNCTION
Theories of Motivation
Content Theories
Maslow's Hierarchy of Needs
 A satisfied need is not a motivator. The most powerful employee need is
the one that has not been satisfied.
 Level I - Physiological needs are the most basic human needs. They
include food, water, shelter and comfort.
 The organization helps to satisfy employees' physiological needs by
a paycheck.
 Level II - Safety needs are the desires for security and stability, to feel
safe from harm including both bodily and economic disaster
 The organization helps to satisfy employees' safety needs by
benefits (adequate wages or salaries).
 Level III - Social needs are the desires for affiliation. They include
friendship and belonging. Reflect a person’s desire to be accepted by others.
 The organization helps to satisfy employees' social needs through
sports teams, parties, and celebrations.. 26
DIRECTING FUNCTION
Theories of Motivation
Content Theories
Maslow's Hierarchy of Needs
 Level IV - Esteem needs are the desires for self-respect and respect
or recognition from others.
 The organization helps to satisfy employees' esteem needs by
matching the skills and abilities of the employee to the job.
 Level V - Self-actualization needs are the desires for self-fulfillment
and the realization of the individual's full potential.
 the desire to maximize whatever potential an individual
possesses.
 The supervisor can help fulfill self-actualization needs by
assigning tasks that challenge employees' minds while drawing on
their aptitude and training

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DIRECTING FUNCTION
Theories of Motivation
Content Theories
Herzberg's Two-Factor Theory
 describes needs in terms of satisfaction and dissatisfaction.
 Satisfaction comes from motivators that are intrinsic or job content,
such as:
 achievement
 recognition
 advancement
 responsibility
 the work itself
 growth possibilities

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DIRECTING FUNCTION
Theories of Motivation
Content Theories
Herzberg's Two-Factor Theory
 Dissatisfaction occurs when the following hygiene factors,
extrinsic or job context, maintenance factors are not present on
the job and include:
 pay
 Vacations
 job security
 working conditions
 company policy
 Holiday
 supervision
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DIRECTING FUNCTION
Theories of Motivation
Content Theories
Herzberg's Two-Factor Theory

Dissatisfaction Job Normal


context/Hygie condition/no
ne factors motivation

Absence Presence

Normal condition/ No Motivation


Job content
dissatisfaction
factors

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DIRECTING FUNCTION
Theories of Motivation
Content Theories

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DIRECTING FUNCTION
Process Theories
 The process approach emphasizes how and why people choose certain
behaviors in order to meet their personal goals.
 Process theories focus on external influences or behaviors that people choose to
meet their needs.
Reinforcement Theory
 The reinforcement theory, based on E. L. Thorndike’s law of effect, simply looks
at the relationship between behavior and its consequences.
 Positive reinforcement rewards desirable behavior. Positive reinforcement,
such as a pay raise or promotion, is provided as a reward for positive behavior
with the intention of increasing the probability that the desired behavior will be
repeated.
 negative reinforcement or avoidance—the withdrawal of negative consequences,
which tends to increase the likelihood of repeating the desirable behavior in similar
settings. For example, a manager at regularly nags a worker about his poor performance
and then stops nagging when the worker does not fall behind one day..
 Punishment is an attempt to discourage a target behavior by the application of
negative outcomes whenever it is possible. Punishment (threats, salary
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reduction, suspension) is an attempt to decrease the likelihood of a behavior
recurring by applying negative consequences.
DIRECTING FUNCTION
Process Theories
Jeremy Bentham’s “The Carrot and the Stick Approach” :
 Bentham’s view was that all people are self-interested and are motivated
by the desire to avoid pain and find pleasure. Any worker will work only
if the reward is big enough, or the punishment sufficiently unpleasant.
 This view - the ‘carrot and stick’ approach - was built into the
philosophies of the old age and is still to be found, especially in the older,
more traditional sectors of industry.
 The various leading theories of motivation and motivators seldom make
reference to the carrot and the stick.
 It comes from the old story that to make a donkey move, one must put a
carrot in front of him or dab him with a stick from behind..
 The trouble with the money ‘carrot’ approach is that too often everyone
gets a carrot, regardless of performance through such practices as salary
increase and promotion
 The ‘stick’, in the form of fear–fear of loss of job, loss of income,
reduction of bonus, demotion, or some other penalty–has been and 33
continues to be a strong motivator. Yet it is admittedly not the best kind.
DIRECTING FUNCTION
Communication
Communication is the transfer of information from the sender to
receiver, with the information being understood by the receiver.
 Communication is the process by which information is transmitted
between individuals and organizations so that an understanding
response results.
 Communication is an exchange of facts, ideas, opinions or
emotions by two or more people.
 Communication is an intercourse by words, letters, symbols or
messages and is a way that one organization member shares
meaning and understanding with another
 Communication is the process of sharing information with other
individuals. formation, as used here, is any thought or idea that
managers want to share with others.
 In general, communication involves the process of one person
projecting a message to one or more other people, which results34is
DIRECTING FUNCTION
The Communication Process
The major variables in the communication process include:
 Encoding (The source/encoder)
 The signal
 Decoding (The decoder/destination)
 Feedback
Characteristics of Communication
The following are some of the characteristics of communication
 Communication is a process.
 Communication is symbolic-gestures, sounds, letters, numbers and
words represent an idea meant to communicate.
 Communication is contextual-the meaning may vary depending on
contexts
 Communication is purposive- it is done to share meaning, to impart
information or influence.
 Communication is two way Management Program, Haile Y 35
 Communication involves people.
DIRECTING FUNCTION

Communication
Types of Communication
Formal and Informal Communication
Formal Communication
Vertical communication
 Downward communication
Upward communication-
Horizontal communication.
Diagonal communication
Informal communication
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DIRECTING FUNCTION
Overcoming Barriers to Communication
 Overcoming differing perception-The message should be
explained so that it can be understood by those with different
views and experiences.
 Overcoming differences in language-The meanings of
unconventional or technical terms should be explained; single,
direct and natural language should be used.
 Overcoming noise-Noise is best dealt with by eliminating it. As
a whole it is good to avoid distracting environments. When
noise is unavoidable, increase the clarity and strength of the
message.
 Overcoming inconsistent verbal and nonverbal
communication-Gestures, clothes, posture, facial expression
and other powerful nonverbal communications should agree
with the message.
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DIRECTING FUNCTION

Overcoming distrust-Overcoming distrust is to a


large extent the process of creating trust.
Redundancy-Being redundant purposefully might be
necessary. Repeating or restating a message ensures its
perception or reinforces its impact.

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