Unit_3.pptx for the studentsssssssssssss

Organizational Behavior
Unit 3 Centre for Distance and Online Education
Types of Motivation
The two types of motivation are:
1.Intrinsic motivation
2.Extrinsic motivation

Intrinsic motivation
Intrinsic motivation can arise from self-generated factors that influence people’s behaviour. It is not created
by external incentives.
It can take the form of motivation by the work itself when individuals feel that their work is important,
interesting and challenging and provides them with a reasonable degree of autonomy (freedom to act),
opportunities to achieve and advance, and scope to use and develop their skills and abilities.
Extrinsic motivation
Extrinsic motivation occurs when things are done to or for people to motivate them. These include
rewards, such as incentives, increased pay, praise, or promotion; and punishments, such as disciplinary action,
withholding pay, or criticism. Extrinsic motivators can have an immediate and powerful effect, but will not necessarily
last long.

Characteristics of Motivation
Characteristics of motivation are briefly explained below:
1.Motivation is a psychological phenomenon
2.Motivation is a continuous process
3.Motivation is caused due to anticipated perceived value from an action
4.Motivation varies from person to person and time to time
5.An individual is motivated by positive or negative motivation
Motivation is a psychological phenomenon
It is the inner desire of an individual to achieve something more. More is the individual motivated better
performance and organization relations.
Motivation is a continuous process
Since need and desire are endless so the need is a continuous phenomenon if one need is satisfied the
other need emerges.

Motivation varies from person to person and time to time
Motivation is different for different persons and it also varied according to time and place because wants
are different for different people, according to time and places.
An individual is motivated by positive or negative motivation
Positive motivation is based on incentives or rewards. Incentives can be monetary and non-monetary.
Negative motivation is based on penalties, calling for explanation, threats, fear, etc. Fear of losing the job
or promotion

Importance of Motivation
Broadly, the importance of motivation is as follow:
1.High level of performance
2.Low employee turn over and absenteeism
3.Acceptance of organization change
4.Organizational image

High level of performance
Organizations must ensure that the employees have a high degree of motivation. A highly motivated
employee put extra effort into work and have a sense of belonging for the organization.
The efficiency of work will be improved, wastage will be minimum which will result in increased
productivity, and performance level will be high.
Low employee turn over and absenteeism
Low level of motivation is a root cause of low turnover and absenteeism. High level of absenteeism causes a low level of
production, poor quality, wastages and disruption in production schedules.
Increased turnover is disastrous for any organization as it puts a strain on the financial position of the organization due to
additional recruitment, selection, training and development.

Acceptance of organization change
Social change and technology evolution happens in the external environment have greater impact on the
motivation of the employee. Management must ensure that the changes are introduced in the
organization and its benefits explained to the employees so that there is no resistance to change and
organizational growth is achieved.
Re-engineering, empowerment, job enrichment, job rotation, the introduction of new technology and processes will go a
long way to boost employee morale and achieve a high degree of motivation.
Organizational image
Employees are the mirrors of any organization. Regular training & development programmes should be organized to keep
employees updated with the latest skills. It will have a positive impact on the employees and the image of the organization
will be improved.
The high organizational image will contribute towards the brand image of the product and services the organization is
marketing.

Theories of Motivation
Maslow’s Hierarchy of Needs
Human motivation can be defined as the fulfillment of various needs. These needs can encompass a range of human
desires, from basic, tangible needs of survival to complex, emotional needs surrounding an individual’s psychological
well-being.
Abraham Maslow was a social psychologist who was interested in a broad spectrum of human psychological needs
rather than on individual psychological problems. He is best known for his hierarchy-of-needs theory. Depicted in a
pyramid (shown in Figure 1), the theory organizes the different levels of human psychological and physical needs in
order of importance.
The needs in Maslow’s hierarchy include physiological needs (food and clothing), safety needs (job security), social
needs (friendship), self-esteem, and self-actualization. This hierarchy can be used by managers to better understand
employees’ needs and motivation and address them in ways that lead to high productivity and job satisfaction.

At the bottom of the pyramid are the physiological (or basic) human needs that are required for survival: food, shelter,
water, sleep, etc. If these requirements are not met, the body cannot continue to function. Faced with a lack of food, love,
and safety, most people would probably consider food to be their most urgent need.
Once physical needs are satisfied, security (sometimes referred to as individual safety) takes precedence. Security and
safety needs include personal security, financial security, and health and well-being. These first two levels are important to
the physical survival of the person. Once individuals have basic nutrition, shelter, and safety, they seek to fulfill higher-level
needs.
The third level of need is social, which includes love and belonging; when individuals have taken care of themselves
physically, they can address their need to share and connect with others. Deficiencies at this level, on account of neglect,
shunning, ostracism, etc., can impact an individual’s ability to form and maintain emotionally significant relationships.
Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group or a small network
of family and friends. Other sources of social connection may be professional organizations, clubs, religious groups, social
media sites, and so forth. Humans need to love and be loved (sexually and non-sexually) by others. Without these
attachments, people can be vulnerable to psychological difficulties such as loneliness, social anxiety, and depression. These
conditions, when severe, can impair a person’s ability to address basic physiological needs such as eating and sleeping.

The fourth level is esteem, which represents the normal human desire to be valued and validated by others, through, for
example, the recognition of success or status. This level also includes self-esteem, which refers to the regard and acceptance
one has for oneself. Imbalances at this level can result in low self-esteem or an inferiority complex. People suffering from
low self-esteem may find that external validation by others—through fame, glory, accolades, etc.—only partially or
temporarily fulfills their needs at this level.
At the top of the pyramid is self-actualization. At this stage, people feel that they have reached their full potential and are
doing everything they’re capable of. Self-actualization is rarely a permanent feeling or state. Rather, it refers to the ongoing
need for personal growth and discovery that people have throughout their lives. Self-actualization may occur after
reaching an important goal or overcoming a particular challenge, and it may be marked by a new sense of self-confidence
or contentment.

Alderfer’s ERG Theory
Clayton Paul Alderfer is an American psychologist who developed Maslow’s hierarchy of needs into a theory of his
own. Alderfer’s ERG theory suggests that there are three groups of core needs: existence (E), relatedness (R),
and growth (G)—hence the acronym ERG. These groups align with Maslow’s levels of physiological needs, social needs,
and self-actualization needs, respectively.
Existence needs concern our basic material requirements for living. These include what Maslow categorized as
physiological needs (such as air, food, water, and shelter) and safety-related needs (such as health, secure employment,
and property).
Relatedness needs have to do with the importance of maintaining interpersonal relationships. These needs are based in
social interactions with others and align with Maslow’s levels of love/belonging-related needs (such as friendship, family,
and sexual intimacy) and esteem-related needs (gaining the respect of others).
Finally, growth needs to describe our intrinsic desire for personal development. These needs align with the other portion
of Maslow’s esteem-related needs (self-esteem, self-confidence, and achievement) and self-actualization needs (such as
morality, creativity, problem-solving, and discovery).

Alderfer proposed that when a certain category of needs isn’t being met, people will redouble their efforts to fulfill needs in
a lower category. For example, if someone’s self-esteem is suffering, he or she will invest more effort in the relatedness
category of needs.
McClelland’s Acquired Needs Theory
Psychologist David McClelland’s acquired-needs theory splits the needs of employees into three categories rather than the
two we discussed in Herzberg’s theory. These three categories are achievement, affiliation, and power.
Employees who are strongly achievement-motivated are driven by the desire for mastery. They prefer working on tasks of
moderate difficulty in which outcomes are the result of their effort rather than luck. They value receiving feedback on their
work.
Employees who are strongly affiliation-motivated are driven by the desire to create and maintain social relationships. They
enjoy belonging to a group and want to feel loved and accepted. They may not make effective managers because they may
worry too much about how others will feel about them.

Employees who are strongly power-motivated are driven by the desire to influence, teach, or encourage
others. They enjoy work and place a high value on discipline. However, they may take a zero-sum
approach to group work—for one person to win, or succeed, another must lose, or fail. If channeled
appropriately, though, this approach can positively support group goals and help others in the group
feel competent.
The acquired-needs theory doesn’t claim that people can be neatly categorized into one of three types.
Rather, it asserts that all people are motivated by all of these needs in varying degrees and proportions.
An individual’s balance of these needs forms a kind of profile that can be useful in creating a tailored
motivational paradigm for her. It is important to note that needs do not necessarily correlate with
competencies; it is possible for an employee to be strongly affiliation-motivated, for example, but still be
successful in a situation in which her affiliation needs are not met.
McClelland proposes that those in top management positions generally have a high need for power and a low need for
affiliation. He also believes that although individuals with a need for achievement can make good managers, they are not
generally suited to being in top management positions.

McGregor’s Theory X and Theory Y
The idea that a manager’s attitude has an impact on employee motivation was originally proposed
by Douglas McGregor, a management professor at the Massachusetts Institute of Technology during the
1950s and 1960s. In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by
which managers perceive and address employee motivation. He referred to these opposing motivational
methods as Theory X and Theory Y management. Each assumes that the manager’s role is to organize
resources, including people, to best benefit the company. However, beyond this commonality,
the attitudes and assumptions they embody are quite different.
Theory X
According to McGregor, Theory X management assumes the following:
•Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible.
•Most people are not ambitious, have little desire for responsibility, and prefer to be directed.
•Most people have little aptitude for creativity in solving organizational problems.

•Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs.
•Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve
organizational objectives.
•Most people resist change.
•Most people are gullible and unintelligent.
Theory Y
The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, are never completely
satisfied. As such, it is these higher-level needs through which employees can best be motivated.
In strong contrast to Theory X, Theory Y management makes the following assumptions:
• Work can be as natural as play if the conditions are favorable.
• People will be self-directed and creative to meet their work and organizational objectives if they are committed to them.
• People will be committed to their quality and productivity objectives if rewards are in place that address higher needs
such as self-fulfillment.
• The capacity for creativity spreads throughout organizations.

• Most people can handle responsibility because creativity and ingenuity are common in the population.
• Under these conditions, people will seek responsibility.
If Theory Y holds true, an organization can apply the following principles of scientific management to improve
employee motivation:
Decentralization and delegation: If firms decentralize control and reduce the number of levels of management,
managers will have more subordinates and consequently need to delegate some responsibility and decision making to
them.
Job enlargement: Broadening the scope of an employee’s job adds variety and opportunities to satisfy ego needs.
Participative management: Consulting employees in the decision-making process taps their creative capacity and
provides them with some control over their work environment.
Performance appraisals: Having the employee set objectives and participate in the process of self-evaluation increases
engagement and dedication.
If properly implemented, such an environment can increase and continually fuel motivation as employees work to
satisfy their higher-level personal needs through their jobs.

Herzberg’s Two-Factor Theory
American psychologist Frederick Herzberg is regarded as one of the great original thinkers in
management and motivational theory. Herzberg set out to determine the effect of attitude on motivation,
by simply asking people to describe the times when they felt really good, and really bad, about their jobs.
What he found was that people who felt good about their jobs gave very different responses from the
people who felt bad.
The results from this inquiry form the basis of Herzberg’s Motivation-Hygiene Theory (sometimes known
as Herzberg’s “Two Factor Theory”). Published in his famous article, “One More Time: How do You
Motivate Employees,” the conclusions he drew were extraordinarily influential, and still form the bedrock
of good motivational practice nearly half a century later. He’s especially recognized for his two-factor
theory, which hypothesized that are two different sets of factors governing job satisfaction and job
dissatisfaction: “hygiene factors,” or extrinsic motivators and “motivation factors,” or intrinsic motivators.

Hygiene factors, or extrinsic motivators, tend to represent more tangible, basic needs—i.e., the kinds of
needs included in the existence category of needs in the ERG theory or in the lower levels of Maslow’s
hierarchy of needs. Extrinsic motivators include status, job security, salary, and fringe benefits. It’s
important for managers to realize that not providing the appropriate and expected extrinsic motivators
will sow dissatisfaction and decrease motivation among employees.
Motivation factors, or intrinsic motivators, tend to represent less tangible, more emotional needs—i.e., the kinds of
needs identified in the “relatedness” and “growth” categories of needs in the ERG theory and in the higher levels of
Maslow’s hierarchy of needs. Intrinsic motivators include challenging work, recognition, relationships, and growth
potential. Managers need to recognize that while these needs may fall outside the more traditional scope of what
a workplace ought to provide, they can be critical to strong individual and team performance.
The factor that differentiates two-factor theory from the others we’ve discussed is the role of employee expectations.
According to Herzberg, intrinsic motivators and extrinsic motivators have an inverse relationship. That is, intrinsic
motivators tend to increase motivation when they are present, while extrinsic motivators tend to reduce motivation when
they are absent. This is due to employees’ expectations.

Extrinsic motivators (e.g., salary, benefits) are expected, so they won’t increase motivation when they are in place, but they
will cause dissatisfaction when they are missing. Intrinsic motivators (e.g., challenging work, growth potential), on the other
hand, can be a source of additional motivation when they are available.
If management wants to increase employees’ job satisfaction, they should be concerned with the nature of the work itself—
the opportunities it presents employees for gaining status, assuming responsibility, and achieving self-realization. If, on the
other hand, management wishes to reduce dissatisfaction, then it must focus on the job environment—policies, procedures,
supervision, and working conditions. To ensure a satisfied and productive workforce, managers must pay attention to both
sets of job factors.
Equity Theory
Adam’s Equity Theory, also known as the Equity Theory of Motivation, was developed in 1963 by John Stacey Adams, a
workplace behavioral psychologist.

Equity Theory is based on the idea that individuals are motivated by fairness. In simple terms, equity theory states that if an
individual identifies an inequity between themselves and a peer, they will adjust the work they do to make the situation fair
in their eyes. As an example of equity theory, if an employee learns that a peer doing exactly the same job as them is
earning more money, then they may choose to do less work, thus creating fairness in their eyes.
Extrapolating from this, Adam’s Equity Theory tells us that the higher an individual’s perception of equity (fairness), then the
more motivated they will be. Conversely, an individual will be demotivated if they perceive unfairness.
Understanding Equity
To understand Adam’s Equity Theory in full, we need to first define inputs and outputs. Inputs are defined as those things
that an individual does in order to receive an output. They are the contribution the individual makes to the organization.
Common inputs include:
The number of hours worked (effort).
The commitment shown.
The enthusiasm shown.

The experience brought to the role.
Any personal sacrifices made.
The responsibilities and duties of the individual in the role.
The loyalty the individual has demonstrated to superiors or the organization.
The flexibility shown by the individual, for example, by accepting assignments at very short notice or with very tight
deadlines.
Outputs (sometimes referred to as outcomes) are the result an individual receives as a result of their inputs to the
organization. Some of these benefits will be tangible, such as salary, but others will be intangible, such as recognition.
Common outputs include:
Salary
Bonus
Pension
Annual holiday allowance
Company car

Stock options
Recognition
Promotion
Performance appraisals
Flexibility of work arrangements
Sense of achievement
Learning
Now that we understand inputs and outputs, we’re in a position to define equity. Equity is defined as an individual’s
outputs divided by that same person’s inputs.
Adam’s Equity Theory goes a step further and states that individuals don’t just understand equity in isolation, instead they
look around and compare themselves to others. If they perceive an inequity then they will adjust their inputs to restore
balance. This is illustrated in the following equity theory equation.

Individuals will always adjust their inputs so that the equation is always in balance. So, if an individual
believes their outputs are lower than their inputs relative to others around them they will become
demotivated. Likewise, an individual may need to increase their inputs if their outputs are greater than
those doing exactly the same job. Essentially, an individual within an organization will always try to keep
fairness (equity) in balance:
A referent group is simply a collection of people a person uses for the purposes of comparison. For Adam’s Equity Theory of
Motivation, there are four referent groups people compare themselves with:
Self-inside: the individual’s experience within their current organization.
Self-outside: the individual’s experience with other organizations.
Others-inside: others within the individual’s current organization.
Others-outside: others outside of the individual organization.

For example, if a programmer compares what they earn to other programmers within the same
organization then the referent group is the others-inside. If they compare themselves to programmers
they know socially then the referent group is others-outside. If they were to compare themselves to what
they earnt in their previous job then the referent group is self-outside.
Adam’s Equity Theory still holds even when people compare themselves to others doing very different
roles and earning very different compensation. Take our example of a programmer again. They may
compare themselves to the CEO of their company who earns 100 times more than the programmer. How
can this seem fair?
Well, the answer is that they will perceive the inputs to be vastly different. They will see that they have a
great work-life balance whereas the CEO is traveling a lot of the time. They may perceive that the CEO
has vastly more experience, alongside working much longer hours and having to deal with more stress.
In this way, fairness is established in the mind of the individual.

Vroom's expectancy theory
The theory assumes that behavior results from conscious choices among alternatives whose purpose it is
to maximize pleasure and minimize pain. Together with Edward Lawler and Lyman Porter, Victor Vroom
suggested that the relationship between people's behavior at work and their goals was not as simple as
was first imagined by other scientists. Vroom realized that an employee's performance is based on
individuals factors such as personality, skills, knowledge, experience and abilities.
The theory suggests that although individuals may have different sets of goals, they can be motivated if
they believe that:
•There is a positive correlation between efforts and performance,
•Favorable performance will result in a desirable reward,
•The rewardwill satisfy an important need,
•The desire to satisfy the need is strong enough to make the effort worthwhile.
The theory is based upon the following beliefs:

Valence
Valence refers to the emotional orientations people hold with respect to outcomes [rewards]. The depth of
the want of an employee for extrinsic [money, promotion, time-off, benefits] or intrinsic [satisfaction]
rewards). Management must discover what employees value.
Expectancy
Employees have different expectations and levels of confidence about what they are capable of doing. Management must
discover what resources, training, or supervision employees need.
Instrumentality
The perception of employees as to whether they will actually get what they desire even if it has been promised by a
manager. Management must ensure that promises of rewards are fulfilled and that employees are aware of that.
Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence interact psychologically to create
a motivational force such that the employee acts in ways that bring pleasure and avoid pain.

Leadership: Definition, Nature, Styles of Leadership
Leadership can simply be defined as the ability to influence others. Leadership is the work that is done by the leader.
It is a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a
common task.
In the course of his survey of leadership theories and research; Stogdill came across innumerable definitions of leadership.
For our purpose, we may define leadership as the process of directing and influencing people so that they will strive
willingly and enthusiastically towards the achievement of group objectives.
Keith Devis said that leadership is the process of encouraging and helping others to work enthusiastically toward
objectives.
According to Koontz and Donnell, the act of leadership is the process of influencing people so that they will strive willingly
and enthusiastically toward the achievement of the group goal.

Ideally, people should be encouraged to develop not only a willingness to work but also a willingness to work with confidence
and zeal. Confidence reflects the experience and technical expertise; zeal is earnestness, and intensity in the execution of
work.
A leader acts to help a group achieve objectives through the exploitation of its maximum capabilities.
A leader does not stand behind a group to push and prod; she/he places herself/himself before the group, facilitates progress
and inspires the group to accomplish organizational goals.
Leadership is the potential to influence the behavior of others.
It is also defined as the capacity to influence a group towards the realization of a goal. Leaders are required to develop a
future vision and to motivate the organizational members to achieve the visions.
Leadership is both a process and a property.
As a process -focusing on what leaders do; leadership is the use of no coercive influence to shape the group or organizational
goals, motive behavior towards the achievement of those goals and help define a group or organizational culture.
As property leadership is the set of characteristics attributed to individuals who are perceived to be leaders.

Nature of leadership
•Leadership derives from the power and is similar to, yet distinct from, management. In fact, “leadership”
and “management” are different. There can be leaders of completely unorganized groups, but there can
be managers only of organized groups. Thus it can be said that a manager is necessarily a leader but a
leader may not be a manager.
•Leadership is essential for managing. The ability to lead effectively is one of the keys to being an
effective manager because she/he has to combine resources and lead a group to achieve objectives.
•Leadership and motivation are closely interconnected. By understanding motivation, one can appreciate
better what people want and why they act as they do. A leader can encourage or dampen workers’
motivation by creating a favorable or unfavorable working environment in the organization.
•The essence of leadership is followership. In other words, it is the willingness of people to follow a
person that makes that person a leader. Moreover, people tend to follow those whom they see as
providing a means of achieving their desires, needs and wants.

•Leadership involves an unequal distribution of power between leaders and group members. Group
members are not powerless; they can shape group activities in some ways. Still, the leader will usually have
more power than the group members.
•Leaders can influence the followers’ behavior in some ways. Leaders can influence workers either to do ill
or well for the company. The leader must be able to empower and motivate the followers to the cause.
•The leader must co-exist with the subordinates or followers and must have a clear idea about their
demands and ambitions. This creates loyalty and trust in subordinates for their leader.
•Leadership is to be concerned about values. Followers learn ethics and values from their leaders. Leaders
are the real teachers of ethics, and they can reinforce ideas. Leaders need to make positive statements of
ethics if they are not hypocritical.
•Leading is a very demanding job both physically and psychologically. The leader must have the strength,
power, and ability to meet the bodily requirements; zeal, energy, and patience to meet the mental
requirements for leading.

What are Leadership Theories?
Leadership theories are schools of thought brought forward to explain how and why certain individuals
become leaders. The theories emphasize the traits and behaviors that individuals can adopt to boost their
own leadership abilities.
Early studies on the psychology of leadership pointed to the fact that leadership skills are inherent abilities that people are
born with. It was not until recently that formal leadership theories emerged, despite leadership becoming a concept of
interest at the beginning of time.
Leadership at a Glance
A leader is crucial to the success of every team. Take an orchestra, for instance, one that consists of all the best musicians in
the world but lacks a conductor. Even though every member of the orchestra can play perfectly by themselves, they will only
produce an incompatible melody in the absence of a conductor. The same concept applies to communities, companies, and
countries. Without a leader, nothing will ever run smoothly.
So, what makes leaders who they are? Why are some people elected as managers and presidents while the rest remain
followers? Leadership theories were developed to find answers to these questions.

Key Leadership Theories
1. Great Man Theory
According to the Great Man Theory (which should perhaps be called the Great Person Theory), leaders are
born with just the right traits and abilities for leading – charisma, intellect, confidence, communication
skills, and social skills.
The theory suggests that the ability to lead is inherent – that the best leaders are born, not made. It
defines leaders as valiant, mythic, and ordained to rise to leadership when the situation arises. The term
“Great Man” was adopted at the time because leadership was reserved for males, particularly in military
leadership.
2. Trait Theory
The Trait Theory is very similar to the Great Man Theory. It is founded on the characteristics of different
leaders – both the successful and unsuccessful ones. The theory is used to predict effective leadership.
Usually, the identified characteristics are compared to those of potential leaders to determine their
likelihood of leading effectively.
Scholars researching the trait theory try to identify leadership characteristics from different perspectives.
They focus on the physiological attributes such as appearance, weight, and height; demographics such as
age, education, and familial background; and intelligence, which encompasses decisiveness, judgment,
and knowledge.

3. Contingency Theory
The Contingency Theory emphasizes different variables in a specific setting that determine the style of
leadership best suited for the said situation. It is founded on the principle that no one leadership style is
applicable to all situations.
Renowned leadership researchers Hodgson and White believe that the best form of leadership is one that
finds the perfect balance between behaviors, needs, and context. Good leaders not only possess the right
qualities but they’re also able to evaluate the needs of their followers and the situation at hand. In
summary, the contingency theory suggests that great leadership is a combination of many key variables.
4. Situational Theory
The Situational Theory is similar to the Contingency Theory as it also proposes that no one leadership style
supersedes others. As its name suggests, the theory implies that leadership depends on the situation at
hand. Put simply, leaders should always correspond their leadership to the respective situation by
assessing certain variables such as the type of task, nature of followers, and more.
As proposed by US professor Paul Hersey and leadership guru Ken Blanchard, the situational theory blends
two key elements: the leadership style and the followers’ maturity levels. Hersey and Blanchard classified
maturity into four different degrees:

•M1 – Team members do not possess the motivation or tactical skills to complete necessary jobs.
•M2 – Team members are willing and ambitious to achieve something, but they lack the necessary ability.
•M3 – Team members possess the skills and capacity to accomplish tasks, but they’re not willing to take
accountability.
•M4 – Team members possess all the right talents and are motivated to complete projects.
According to situational theory, a leader exercises a particular form of leadership based on the maturity
level of his or her team.
5. Behavioral Theory
In Behavioral Theory, the focus is on the specific behaviors and actions of leaders rather than their traits or
characteristics. The theory suggests that effective leadership is the result of many learned skills.
Individuals need three primary skills to lead their followers – technical, human, and conceptual skills.
Technical skills refer to a leader’s knowledge of the process or technique; human skills means that one is
able to interact with other individuals; while conceptual skills enable the leader to come up with ideas for
running the organization or society smoothly.

Applying Leadership Theories at the Workplace
To a great extent, leadership theories have helped form and shape the kind of governance that exists
today. Many aspects of these theories can be applied to help one improve his or her leadership skills.
1. Maximize Your Strengths
As proposed by the Trait Theory, effective leadership depends on the traits that one possesses. Leaders
should strive to focus on their strengths rather than their weaknesses. The strengths vary from one leader
to another and may include:
•A strong will is crucial to staying resilient and seeing leaders through difficult times. No matter how
challenging the situation may be, a strong-willed leader is able to find inner strength and carry on until he
or she overcomes all challenges.
•A decisive nature is another strength that some leaders possess. Decisiveness means that when others
may be perplexed, a leader can calmly assess the situation and choose one action to unite everyone. But,
since they may not always make the right decisions, they must also be willing to learn from their mistakes.

2. Be Inclusive Leaders
Some of the more complex situational theories emphasize focusing on people. It means that they
acknowledge individual people to be their greatest assets and not just mere numbers in their workforce.
Being an inclusive leader requires that one constantly involves other people in their leadership, whether
it is by always welcoming the feedback of others or delegating more responsibility to others than other
forms of leadership.
Key Takeaways
There are numerous ways of defining leadership. Some leadership theories attempt to explain what
differentiates a leader, while some explain how great leaders come to be. The Great Man Theory believes
that the inherent traits that one is born with contribute to great leadership. Situational Theory
recommends leaders to adopt a leadership style depending on the situation at hand, while the Behavioral
Theory is all about the learning the skills necessary to become a good leader.
Leadership theories don’t only exist in history. They are concepts with actionable advice that can be
adopted by many, from executive managers to community leaders and government officials.

List of Effective Leadership Traits
A common misconception is that individuals are just naturally gifted with leadership skills. The truth is that
leadership traits, like other skills, can be acquired with time and practice. Below are seven traits of an
effective leader:
1. Effective Communicators
Leaders are excellent communicators, able to clearly and concisely explain problems and solutions.
Leaders know when to talk and when to listen. In addition, leaders are able to communicate on different
levels: one-on-one, via phone, email, etc.
2. Accountable and Responsible
Leaders hold themselves accountable and take responsibility for any mistakes. Leaders support and
encourage individuality while abiding by organizational structure, rules, and policies that need to be
followed.
3. Long-term Thinkers
Leaders are visionaries. This is evidenced by the leadership trait of being able to plan for the future
through concrete and quantifiable goals. They understand the need for continuous change and are open
to trying new approaches to solve problems or improve processes.

4. Self-motivated
Leaders are self-motivated and are able to keep going and attain goals despite setbacks. In addition, good
leaders try their best to exceed, not just meet, expectations.
5. Confident
Virtually all good leaders share the leadership trait of confidence. They are able to make tough decisions
and lead with authority. By being confident, leaders are able to reassure and inspire others, establish open
communications, and encourage teamwork.
6. People-oriented
Leaders are typically people-oriented and team players. They’re able to foster a team culture, involve
others in decision-making, and show concern for each team member. By being people-oriented, leaders
are able to energize and motivate others. By making each individual feel important and vital to the team’s
success, they secure the best efforts from each member of the team.
7. Emotionally Stable
Leaders exercise good control and regulation over their own behavior and are able to tolerate frustration
and stress. Leaders are able to cope with changes in an environment without having an intense emotional
reaction.

Basis Manager Leader
Origin A person becomes a manager by virtue of his position. A person becomes a leader on basis of his personal qualities.
Formal Rights Manager has got formal rights in an organization because of his status. Rights are not available to a leader.
Followers The subordinates are the followers of managers. The group of employees whom the leaders leads are his followers.
Functions A manager performs all five functions of management. Leader influences people to work willingly for group objectives.
Necessity A manager is very essential to a concern.
A leader is required to create cordial relation between person working in and for
organization.
Stability It is more stable. Leadership is temporary.
Mutual Relationship All managers are leaders. All leaders are not managers.
Accountability Manager is accountable for self and subordinates behaviour and performance. Leaders have no well defined accountability.
Concern A manager’s concern is organizational goals. A leader’s concern is group goals and member’s satisfaction.
Followers People follow manager by virtue of job description. People follow them on voluntary basis.
Role continuation
A manager can continue in office till he performs his duties satisfactorily in congruence with
organizational goals.
A leader can maintain his position only through day to day wishes of followers.
Sanctions Manager has command over allocation and distribution of sanctions.
A leader has command over different sanctions and related task records. These sanctions
are essentially of informal nature.

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