1. Leadership and Motivation Theories Flashcards
A. What is Leadership?
Short Def.
Why Leadership?
The ability to influence a group toward the achievement of a vision or a set of goals.
increase their employees’ performance, CEO activities –> 14% of the variance in firm performance, leadership quality –> 70% of the variance in team engagement
B. Leader vs Manager
a. Definition Leader + Manager
b. Provocative View (table, 8 rows)
Leader: “doing right things” –> potential change through establishing direction, aligning people, and motivating and inspiring
Manager: “doing things right” –> plan, build, and direct organizational systems to accomplish missions and goals
B. Leader vs Manager
c. Responsibilities (table, 3 rows à 3 concretisations)
C. Can Leadership be learnt?
a. Traits vs Competencies
b. 70 - 20 - 10 Rule
a. Distinction of leading abilities:
- Traits (innate, stable) –> 30%
- Competencies (acquirable) –> 70%
depending on:
- socialization
- environment
- experience
- active development via training
b. See photo
Note: leadership interventions essential
D. Indirect vs Direct Leadership
a. Indirect Leadership
b. Direct Leadership
both complement each other!
a. Indirect/Structural/Distant Leadership
- Strategy (e.g. SBB, goals and tools)
- Structure (e.g. Swisscom, tasks, competencies, processes)
- Culture (e.g. Hilti, values, thought and behaviour pattern)
- Qualitative personnel structure (qualification, identification, motivation)
b. Direct/Interactive/Close Leadership
- engaging with others to foster collaboration, informed decision-making, motivation, development, and effective communication
E. Theories of Motivation
a. Def. Motivation
b. Content- vs. Process-Oriented Theories (Distinction)
a. process accounting for individual’s intensity, direction, persistence of effort toward attaining goal
b. See photo
E. Theories of Motivation
c. Content-Oriented Theories
1. Intrinsic vs Extrinsic Motivation
2. Types of Incentives
c.
1.
Intrinsic: evoked by task, do smt cuz interesting/enjoyable
e.g.: participation in decision-making, teamwork, purpose,
Extrinsic: evoked by external incentives, do smt cuz leads to/averts separable outcome
e.g.: pay raise, promotion, power, status, awards
______
2. See photo
E. Theories of Motivation
c. Content-Oriented Theories
3. Strengths & Weaknesses
Strengths:
- Indication as to WHAT motivates people
- Stresses importance of recognition, self-esteem, independence, responsibility
Weaknesses:
- Often static, not differentiated enough
- Context often not considered
- Rough categorisation of employees - only part of their behaviour can be
explained
E. Theories of Motivation
c. Content-Oriented Theories
4. Models (3)
- Hierarchy of Needs (Maslow)
- Theories X and Y (McGregor)
- Two Factor Theory (Herzberg)
E. Theories of Motivation
d. Process-Oriented Theories
1. Strengths & Weaknesses
S:
- Indication as to HOW motivation works
- Focus on course of action
W:
- too abstract
- relies on independence of influencing variables
- based on entirely rational
behaviour
E. Theories of Motivation
d. Process-Oriented Theories
2. Model (1)
Equity theory (Adams)
“Ppl compare job inputs & outcomes with those of relevant others and will try to eliminate inequities.”
Output A / Input A < Output B / Input B: inequality, under-rewarded
Output A / Input A = Output B / Input B: equity
Output A / Input A > Output B / Input B: inequity, over-rewarded
A = employee
B = relevant others
SOLUTION: outcomes of employees should be fair reg. their input + in comparison with output of others
F. Performance-Based Compensation
a. Empirical Findings
a. Empirical Findings
positive effect on productivity well-est.
cf. Safelite Glass Corp.: compensation system from hourly wages to piece-rate pay –> increase in productivity by 44% (incentive to work harder, selection effect)
F. Performance-Based Compensation
b. Problems (5 Effects)
Empirics:
Performance-based monetary or in-kind rewards –> neg. for intrinsic motivation (even worse if announced)
Performance-based verbal appreciations –> pos. for intr. motivation
___________________________
- Self-selection:
Different compensation models attract different people. Performance-based
pay more attractive for successful employees w/ high levels of performance needs + low risk aversion. But: Who comes for money, will leave for money! - Measurement & Evaluation: Unproblematic with simple work tasks. More complex jobs: reason for performance and success harder to determine.
- Crowding-out Effect:
External influence on intrinsically motivated empl. –> reduced intrinsic motivation –> reduced job satisfaction –> reduced performance (unless extrinsic reward can compensate) - Spill-over Effect:
Crowding-out Effect applies not only on one task in question but spills over to other areas. - Multitasking-Effect:
People focus only on tasks with higher monetary rewards.
–> Reduced pos. behav (e.g. helping behav) –> Increased manipulations and forgery (e.g. “creative record keeping”, reclassification of money for own benefit)
F. Performance-Based Compensation
c. Experiment Cancer Donations
Students collected cancer aid donations
in 3 different quasi-experimental conditions:
(1) Students didn‘t receive any of the collected donations
(2) Students received 1% of the collected donations
(3) Students received 10% of the collected donations
Result: see photo
–> Price effect vs. Crowding-Out Effect
G. Managerial Compensation
a. Problematics
b. Examples of Solutions
c. Performance-based compensation advisable if… (3)
(
a.
Dax-30 board members earn 48 more than ø employee
CEO-to worker pay ratio was 152 in CH in 2019 –> reasonability controversial!
Corps more keen to show investors they cut costs by cutting CEO salaries
(Yet: In most cases, salary makes up only small portion of tot. compensation
–> heavy weight towards stock awards and options)
b.
Ex. Raiffeisen: Abolition of individual bonuses, collective profit-sharing scheme in single-digit percentage range –> underscore its cooperative orientation
Ex. Kylian Mbappé: Donates his $500,000 World Cup winnings to charity
)
c.
Pos. effect on extrinsic motivation, neg. effect on intrinsic motivation –> advisable if…
- comp. able + willing to pay enough performance-based rewards to compensate the negative effect on intrinsic motivation
- there is little risk for multi-tasking-effects (rather low complexity jobs)
- environment enables highly engaged empl. not motivated exclusively by extrinsic rewards
H. Emotional Intelligence (Goleman)
a. Def.
b. Table of Emotional Intelligence (distinction, 4 cells) (Goleman)
c. Emotional Intelligence <–> Leadership
d. Development of EI
a. Ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in self and others
b. See photo
c. (Goleman)
- strong relat btw leaders’ emotional intelligence (EI) + transform. lship style
- high EI –> emotionally competent team norms –> higher team performance
- higher EI managers –> higher emotional organizational and career commitment –> higher job satisfaction
d. Development of EI
- takes time, cf. Goleman table to train resp. competencies,
- use diff. training methods (role-play, group discussion, simulation)
- org. culture improves learning (challenging exercises, social support, feedback, personal development)
- strategic use of feedback (underline positive behaviour, use criticism sparingly)
- Learning through positive role models
I. Need Theory McClelland
a. High Achievers characteristics
b. Need Theory (3 aspects)
a.
“High Achievers” (strong need for achievement):
- perform best, if there is a chance of success of 50%
- not gamble when there is a low chance of success, since not satisfied if win is pure matter of luck
- dissatisfied, if high chances of success, since skills not challenged
b.
See photo
