6. Management Skills: Leading and Motivating

Learning Outcomes from This Chapter:

• Define the different management skills
• Outline the benefits of delegation for a business
• Explain the different leadership styles a manager could have
• Illustrate where different leadership styles may be more appropriate
• Discuss the main motivational theories used to motivate employees
• Outline the implications of adopting either a Theory X or Theory Y _
• Illustrate how a manager can satisfy the different levels of Maslow’s Hierarchy of Needs

Management Skill: Leading

A good leader can:

• Influence
• Delegate
• Directing

Leading: The ability to influence staff to follow strategies that meet the company’s aims, using directing and delegating

Managers are in charge of their employees and need to get their teams to perform tasks for the business. They might use directing

Directing: Guiding employees by issuing instructions, so they know how to carry out tasks and what to do

They may also use delegation

Delegation

Delegation: When a person in authority gives someone in a lower position in the business a task or project to complete, but the superior is still accountable and responsible for the task

Advantages of delegation

• Frees up the manager’s time to prioritise important tasks
• Shows trust in their staff, which can improve morale
• Staff improve skills and learn to handle responsibility

Implications of not delegating

• Manager may become overloaded with work
• Decision-making may be slowed
• Employees may be less capable of stepping up to higher roles
• Morale and motivation of staff are lowered

Leadership Styles: Autocratic

• Wants to control all decision-making
• Does not delegate work to staff
• Does not consult staff when making decisions
• Uses fear, threats or money incentives to motivate staff

It can be useful in a crisis, when quick decisions are needed

How does it help manage change?

It may help to manage change in the short term, but morale may suffer over a longer time period

Leadership Styles: Democratic

• Seeks opinions and feedback from staff when making decisions
• Delegates work to subordinates
• Results in staff feeling more valued and trusted

It is useful for most businesses as it creates teams and an inclusive environment where staff feel valued

How does it help manage change?

When change is implemented after a consultative process, staff feel more involved and included; this creates buy-in

Leadership Styles: Laissez-faire

• Sets deadlines and allows staff to decide how to achieve them
• Trusts staff to work without much supervision
• Allows staff to work without much interference
• Encourages intrapreneurship
• Frees up their own time for management

It may be useful with very skilled staff and in R&D

How does it help manage change?

Ownership of change is given to staff. This can motivate them

Motivation

Workers must be motivated to find their work interesting

Management need to develop good morale in the workplace

Motivating

High morale will exist in a firm when

• Employees receive satisfaction from what they do
• Employees take pride in their work
• Employees cooperate with and respect colleagues and superiors
• Employees feel that they are part of the team and that they make the business a success

Non Financial Motivation

Some people are motivated to work by more than just money

The following are some of the non financial factors that motivate people

• Security of employment
• Status (how you are seen to the public e.g. Doctor)
• Aspiration (desire to be promoted)
• Praise

Job Enlargement

Employees are given extra duties to do in order to relieve the boredom of work. These duties do not carry any extra responsibility

Disadvantages:

• Too much work
• Take too long
• Taken advantage of
• Decrease morale

Job Enrichment

Employees are given extra responsibility in the business. These tasks get them to develop their full abilities and skills

Disadvantages:

• Too muck work
• Take too long
• Costs more money
• Decreases morale (for those not picked)
• Competition in workforce

Improved working conditions

The employer may be flexible about what time the employees start and finish work. This is called flexitime. Longer holidays are also a way to reward employees

Importance of Pay and Rewards

• Motivated employees work harder
• Attracts the best employees

Training and Development

There are two ways to train workers

• On the job training
• Off the job training

On the Job Training

This is teaching the employee the knowledge, skills and attitude needed to do the job well, while she is in the normal working situation. She learns by having a go and practicing the tasks involved with the job

Techniques used include Job Rotation - This is where the employee is trained gradually from one department to another in the business

Advantages:

• Problem solving
• Improving skills and knowledge
• Learn through doing

Disadvantages:

• Premises does not have proper equipment
• Inexperienced staff delivering training
• Risk of poor example

Off the Job Training

This is teaching the employee the knowledge, skills and attitude needed to do the job well, away for the normal working situation

Techniques used include evening classes, conferences, and so on

Advantages:

• Problem solving
• Improving skills and knowledge
• Networking - Meet new people in the same role

Disadvantages:

• Learn through theory
• Have to travel to another facility
• Inexperienced staff delivering training - Never worked in the role

Development

This is giving employees life-long skills and knowledge that will help them to grow as individuals

It is more than training. Development teaches an employee skills that they can use in any job

Communication Skills is an example of development

Importance of Training and Development

Gives the workers the skills needed to do a good job and better quality products as a result

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Makes workers more flexible and able to cope with changes

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Workers need less supervision

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Less conflict between workers and managers as workers are good at their jobs

Maslow’s Theory of Motivation

Maslow was a scientist who believed that people in organisations were motivated by a hierarchy of needs from low needs to high need

Low needs are essentials like food, shelter and safety must be met before high needs such as social acceptance or esteem can be satisfied

He believed that every person has the same needs

He referred to the following

1. Every person has needs which must be satisfied.  As a need is satisfied another need is the next motivating factor
2. The needs are arranged in progressive levels - from low to high
3. A person’s job can help to satisfy these needs

The different needs are called the hierarchy of needs and include the following

• Physiological needs (essential needs)
  • Food, drink, clothes, wage
• Security needs
  • Job security, employment contract, pension etc.
• Social needs
  • Friends, social club membership
• Esteem needs
  • Status - title, promotion
• Self actualisation needs
  • Being ambitious, being given more responsibility in work, becoming an entrepreneur

Problems with Maslow’s Theory

• Not everyone has needs in the same order
• (Some) Aren’t needs
• Solitary people aren’t considered
• Different psychology
• Disability
• Higher level of need not considered

Implications of Maslow’s Theory

Once financial needs are satisfied, additional rewards will be required in order to satisfy some higher needs

Employee’s attitudes and effort in work will be related to the success in management in satisfying their non financial needs

Morale will be low if the work is boring, regardless of the pay. A firm with low morale will have high absenteeism. Profits will also fall

McGregor’s Theory X and Theory Y

McGregor was an American social psychologist and management consultant. He analysed the way in which employees and employers looked at work

Employer: Is the boss, pays the wages, gives instructions, doesn’t like unions

Employee: does the job, takes the wages, accepts no responsibility

While managing different firms he noticed two different styles of management. These became known as Theory X and Theory Y

Theory X (From Slides)

• Most employees are lazy and need to be supervised
• Management must offer incentives to motivate ‘lazy’ employees
• Most employees require safety and security needs as a priority
• Most employees lack ambition and need to be motivated to ‘pull their weight’
• Most employees will resist changes and are easily influenced by others

• Theory X (From Teacher)

  Autocratic style of management

• Not a good worker
• Motivated by only money
• Supervision required at all times
• Resist change
• Require safety & security needs
• Lack ambition

Theory Y (From Slides)

• Employees enjoy working and are willing to work and accept responsibility
• Employees are able to motivate themselves, strict supervision is not required
• Satisfying their self actualisation needs by giving them more responsibility is a very good way of getting them fully committed to their job
• All employees should receive training
• Workers skills are not always maximised

• Theory Y (From Teacher)

  Democratic style of management

• Supervision greatly reduced or gone, self motivated
• Works hard. enjoys working
• Motivated outside of money
• Self actualisation through responsibility
• *Receive training
• *Skills not maximised