Importance Of Motivating Employees In Leadership

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Workers do not naturally enjoy work. They need close supervision and control. Therefore managers need to break down production into a series of small tasks. Workers should then be given appropriate training and tools so that they can work as efficiently as possible on one set task.

Employees are then paid according to the number of items they produce in a set period of time- piece-rate pay.

As a result workers are motivated to work hard and maximise their productivity.

Taylor's methods were widely adopted as businesses saw the benefits of increased productivity levels and it also helped in lowering the unit costs. The most notably advocate was Henry Ford who used them in designing the first ever production line, making Ford cars. This made the history by the era of mass production.

However workers soon disliked Taylor's approach as they were only given boring, repetitive tasks to carry out and were being treated as human machines. Firms could also afford to lay off workers as productivity levels increased. This led to an increase in protests and other forms of industrial action by dis-satisfied workers.

Maslow Maslow's hierarchy of needs

Abraham Maslow (1908 - 1970) along with Frederick Herzberg (1923-) suggested the Relations School in the 1950's, which based on the psychological needs of employees. Maslow suggested a theory that there are five levels of human needs to be fulfilled by the employees at work.

All of the needs are structured into a hierarchy and only once a lower level of need has been fulfilled, would a worker be motivated by the opportunity of reaching the next need up in the hierarchy satisfied. For example a person who is in a serious need of food will be motivated to achieve a basic wage in order to buy food before worrying about having a secure job contract or the respect of others.

Herzberg Two-factor theory

Frederick Herzberg (1923-) had close relation with Maslow and believed in a two-factor theory of motivation. He suggested that there were certain factors that a business could introduce that would directly motivate employees to work harder (Motivators). However there were also factors that would de-motivate an employee if not present but would not in themselves actually motivate employees to increase productivity (Hygienefactors)

Motivators are more concerned about the actual job itself. For example how interesting the work is and how much opportunity it gives for extra responsibility, recognition and promotion. Hygiene factors are factors that 'surround the job' rather than the job itself. For example a worker will only be motivated towards work if a business has provided a reasonable level of pay and safe working conditions but these factors will not make him work harder at his job once he is there. Importantly Herzberg considered pay as a hygiene factor which is in direct contrast to Taylor who viewed pay, and piece-rate in particular

Herzberg suggested that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods. Some of the methods employers could use to achieve this are:

Job enlargement - employees being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting.

Job enrichment - involves workers being given a variety of more complex, interesting and challenging tasks surrounding a complete unit of work. This helps in giving a greater sense of achievement.

Empowerment - means adding more power to employees to make their own decisions over areas of their working life.

Implementing theories in Real life:

Importance of motivation in relation to improvement in performance levels:

The first and most important significance of motivation is that it improves the level of efficiency of the employees. For getting the best of the work performance, the gap between the ability and willingness has to be filled. This directly results in increase in productivity, reducing cost of operations and improving overall efficiency. High motivation levels in the employees leads to organizational goals by best possible utilization of resources. It also leads to a stable work force by building friendly relations among the employees.

The following section explains the importance of motivation and necissicity of a leader in a small technical support team of Hewlett Packard. At Hewlett Packard, the employees are divided in to small well managed teams. The teams are based on efficienciency and expertise of the employees. The motivational theories are explained taking in to consideration a tem called "KV-Blue". KV-Blue team at HP consists of some of the best employees of the organization. Because of the high qualifications, efficiency and expertise of the team, it is the one of the highly paid team of the organization. The team also enjoys some of the good benifits like incentives, discount coupons and free transportation. Each and every member of the team is considered as a big asset of the organization because of their exceptional performance. So the big responsibility of keeping the team members motivated and keeping the employee turnover from zero to a minimum lies on the team manager.

Because of the work load, stress and attitudes of the different members of the team, It is difficult to implement one single motivational theory to keep the employees motivated. It is the necessity and responsibility of the team manager to have the knowledge of various motivational theories and implement them where ever needed. However "Acquired needs theory" is one of the best practices to use in the current scenario.

Acquired Needs Theory is also called as the Three-Need Theory or Learned Need Theory.

Acquired Needs Theory:

Need are categorized over time by our experiences over time. Most of these can be sorted into three general categories of needs:




Employees have different preferences:

Employees will tend have one of these needs that affects us more powerfully than others and thus affects our behaviours:

Achievers seek to excel and appreciate frequent recognition of how well they are performing. Employees will avoid low risk activities that have no chance of gain. They also will avoid high risks where there is a high chance of failure.

Affiliation seekers look for harmonious relationships with other employees. Thus Employees will tend to conform and shy away from standing out. This will result in seeking approval rather than recognition.

Power seekers want power either to control the things or to achieve higher goals. They seek neither recognition nor approval from others -- only agreement and compliance.

In a company like HP there are different types of people coming from different cultures and backgrounds. To successfully manage the group it is very important have a strategic plan. Because of the complexity of the human behaviour of various employees, It is very important to handle the group with a pre defined plan.

Apart from implementing the motivational theories, There a few steps which are actually taken from all the available motivational theories. The following steps will help a team leader or team manager in becoming a leader.

Understanding each employee and knowing what makes them motivated.

Motivating employees is a continuous process not a task. Situations and work environment change all the time and it is very important for a leader to keep an eye on the team members and make sure that they are stress free and motivated.

It is important to have close professional relation with each employee of the team. One-to-one meetings will greatly help in understanding the needs and issues of each member.

It is very important to focus on employees rather than employee personalities. Even though trusting the instings some times helps, a good leader should be able to appreciate what he actually sees rather than what he feels.

Establishing goals which are specific, measurable, acceptable, realistic, timely, extending of capabilities is very important. It is also very important to reward the employees once these goals are achieved.

Celebrate achievements is one of the most important way which keeps the team members motivated. Once the performance goals are achieved it is the responsibility of the leader to celebrate the achievement even though it is a individual team member's achievement not a team achievement. It is often simple to celebrate. Taking a break for five minutes and enjoying a cup of Mocha with the team can also be called as a celebration.

Effect of inclusion in working environment:

 Inclusion means involving every person in every aspect of activity that is provided in the organization no matter what the subject matter or content area. Inclusion is sometimes advantages and sometimes problematic which implemented in a organizational group. Employees with higher expertise might loose concentration and motivation if they are treated as similar to the new employees or workers with lower level of skills.


Stereotyping is a generalized belief about a particular group of people. Stereotyping infers that a person has a whole range of characteristics and abilities that employers assume all members of that group have. Stereotyping leads to social categorisation, which is one of the reasons for prejudice attitudes. It also leads to ingroups and outgroups.

Advantages and disadvantages of stereotyping:

Stereotyping can sometimes be advantages. For example it is beneficial to hire Chinese people in a Chinese restaurant because they speak Chinese and they are aware of the culture. But in most of the cases stereotyping is proved to be disadvantages. In the current example, in a group of 29 who will giving technical support and evaluating the new products of HP it is very necessary not to stereotype people. It is very essential to assess the individual abilities of a person instead of jumping into conclusitions just by stereotyping.

Stereotyping also damages the abilities of the team manager who is making it because by nature the stereotype thrives on lack of knowledge. Team manager no longer seeks out knowledge of individuals because he is satisfied with his own powerful ignorance.

Halo Effect:

The 'halo effect' is one of the finding in social psychology. It is the idea that global evaluations about a person leads to judgements about their specific traits like integiliance and skills. Hollywood stars are the classic example of halo effect. Because they are often attractive and likeable, they are aasumed they are also intelligent, friendly, display good judgement and so on. When evidence to the contrary is available the actual behaviour of the person is revealed.

Another example is of politicians who use the 'halo effect' to their advantage by trying to appear humble and friendly, while saying little of any substance. People tend to accept their policies are good, because the person appears good.

Advantages and disadvantages of Halo effect :

Halo effect is mostly disadvantages. In a company like Hewlett Packard people can not be assessed by the way their appearance or dress. It is very important to evaluate individual person of the team by using various performance measures like service level, quality of work, productivity and knowledge etc. Just because a person dresses like a geek, It is not necessary that the person has good knowledge. In a group it iis very important to assess individual person by his abilities rather than his appearance as they are not models and they deal with some of the highly technical aspects of the organization.


In the following section, How Hewlett Packard is satisifing or faild to satisify various stake holder groups are explained.

Stake Holders:

Stake holders are people, group of people, or organization that has direct or indirect interest in an organization because it can affect or be affected by the organizationHYPERLINK ""'HYPERLINK ""s actions and policies. Key stakeholders in a business organization are creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources. Although stake-holding is usually self-legitimizing (those who judge themselves to be stakeholders are de facto so), all stakeholders are not equal and different stakeholders are entitled to different considerations. For example, a firm's customers are entitled to fair trading practices but they are not entitled to the same consideration as the firm's employees. 


In the following section different stake holders of ASDA are explained:

ASDA is the second largest retailer in UK with 321 stores and 148,000 colleagues.

The stake holders of ASDA can be mainly classified in to two. Internal and external.

The external stake holders of ASDA are:



Local Community



The internal stake holders of ASDA are:




ASDA makes clear statements of its purpose and values to help stakeholders see the way the business is going. The mission statement sets out its long term aims to be Britain's best value retailer exceeding customer needs always. Its purpose is to make goods and services more affordable for everyone. Its values show what the company believes in providing respect for the individual, excellence and customer HYPERLINK ""service. New employees receive a detailed induction into all the elements.

ASDA takes all measures to satisfy the needs of its stake holders:

Customers are looking low priced and good quality products. They also want to see that ASDA is positively active in their community.

Employees are motivated by being able to help the local community.

Shareholders are looking for a good return on their investment. Share holders also believe in community involvement, as it makes good business sense.

Suppliers should be local businesses that ASDA can easily get in touch with.

Community is one of the important stake holders of the company. Local community is directly or indirectly affected by the actions of the organization. It is the social responsibly of the company to take interest in the welfare of the community.

Community programme

The community program at ASDA has been running for several years and has a different focus every year, focusing on people, health, education, community and social events. For example, under 'health' ASDA stores hosted blood donor vans. ASDA also raised money for Breast Cancer Care and Breast Cancer Campaign. The programme is designed to help employees contribute to their community.

Benefits to stakeholders

Different stakeholder groups gain benefit different ways. Improvement in their local and wider community is greatly benefited to the customers. Employees gain by helping to make these improvements. These also help them to feel more valued. Working with the community will help in providing staff motivation. According to the studies employees of ASDA are driven by:

taking action

gaining recognition for their efforts

being free to use their own initiative.

Impact of Technology on organization and organizational behaviour:

The following are the benifits of technology in organization like ASDA:

Technology helps in redefining Asda's processes and policies.

Technology plays an important part in streamlining logistics and inventory management.

Technology is establishing consistent product maintenance, stock management, store and distribution center efficiencies. It also helps in standardizing management information.

It is helping Asda to reinvent itself. It is enabling ASDA to improve in terms of sales, supply, distribution and store operations, while accelerating improvements in the organization designed to promote efficiencies and lower costs.

Conflicts Between Stakeholders:

Conflicts between stakeholders arise when interests of different stakeholders oppose each other. For example employees who are seeking higher wages might conflict with the management who are looking to cut the costs to boost the profits.

Managing Conflicts between Individuals:

In most of the conflicts between individuals there is a clear transition from an informal to a formal stage in the conflict.

Employees should have the knowledge of:

• who they can approach to if they have a problem at the workplace.

• They need to be sure that their issues are considered seriously .

Employers should take the time to talk to employees and gather any relevant information about those involved.

It is a good idea to get help from the available sources. Managing conflict between employees is often about understanding the perceptions one person has of the other.

Dr Tuckman:

In the 1960s Dr Tuckman, an educational psychologist, came up with a model to describe the way groups behave as they work together. He developed a 4-stage model of group development. The following are the stages of group development:

Forming: The group comes together and gets to initially know one other and form as a group.

Storming: A chaotic vying for leadership and trialling of group processes

Norming: Eventually agreement is reached on how the group operates (norming)

Performing: The group practices its craft and becomes effective in meeting its objectives.

Tuckman added a 5th stage 10 years later:

Adjourning: The process of "unforming" the group, that is, letting go of the group structure and moving on.

Tuckman's original work simply described the way he had observed groups evolve, whether they were conscious of it or not.  But for us the real value is in recognising where a group is in the process, and helping it to move to the Perform stage.  In the real world, groups are often forming and changing, and each time that happens, they can move to a different Tuckman Stage.  A group might be happily Norming or Performing, but a new member might force them back into Storming. Seasoned leaders will be ready for this, and will help the group get back to Performing as quickly as possible.

Many work groups live in the comfort of Norming, and are fearful of moving back into Storming, or forward into Performing. This will govern their behaviour towards each other, and especially their reaction to change.

To form a successful group, an organization needs good managers and leaders. "Leadership and management are two different and complementary systems of action. The two systems are necessary for success in an increasingly complex and volatile business environment."

Difference between Leader and Manager:







Is a copy

Is an Original





Accepts reality

Investigates Reality


Focuses on systems and structures

Focuses on people


Relies on control

Inspires trust


Has short range View

Has long range perspective


Asks how and when

Asks what and why


Eye always on bottom line

Has eye on the horizon





Accepts status quo

Challenges status quo


Is classic good soldier

Is own person


Does things right

Does right things

Task 3

The following section explaines the organizational culture of the roganization using the "Cultural Web Model".

The Cultural Web explains six interrelated elements that help to for a model what Johnson and Scholes call the "paradigm" model of the work environment. By observing the factors in each, the bigger picture of the organization can be observed. The six elements of the model are:

1. Stories : The past events and people discussed about inside and outside the company. Who and what the company chooses to immortalize reveals a great deal about what it values, and perceives as great behaviour.

2. Rituals and Routines: The day to day behaviour and actions of employees that signal acceptable behaviour. This identifies what is expected to happen in a specific situations, and what is identified as valued action by management.

3. Symbols: The visual representations of the organization including logos, how attractive the offices are, and the formal or informal dress codes.

4. Organizational Structure: This includes both the structure specified by the organization chart, and the unwritten lines of power and influence that indicate the most valued contributions.

5. Control Systems: The methods in which the organization is controlled. These include financial systems, quality systems, and rewards.

6. Power Structures - The pockets of real power in the company. This may involve one or two key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction.

These elements are represented graphically as six semi-overlapping circles (see Figure 1 below), which together