ADMN 201 — Ch9: Motivating, Satisfying, and Leading Employees

This chapter covers two major management domains: employee motivation (what drives people to work well) and leadership (how managers direct and inspire others). It also explores how individual differences, attitudes, and the psychological relationship between employee and employer shape behaviour and performance.

mindmap
  root((Ch9: Motivating & Leading))
    Employee Behaviour
      Performance Behaviours
      Organizational Citizenship
      Counterproductive Behaviours
    Individual Differences
      Personality & Big Five
      Six Workplace Traits
      EQ
      Attitudes
        Cognition · Affect · Intention
        Cognitive Dissonance
        Job Satisfaction & Morale
        Organizational Commitment
    Matching People & Jobs
      Psychological Contract
        Contributions
        Inducements
      Person-Job Fit
    Motivation Theories
      Classical Theory
      Hawthorne Effect
      Maslow Hierarchy
      Herzberg Two-Factor
      McGregor Theory X/Y
      Expectancy Theory
      Equity Theory
      Goal-Setting Theory
    Job Satisfaction Strategies
      Reinforcement
      MBO / Goal Setting
      Participative Management
      Team Management
      Job Enrichment / Redesign
      Modified Work Schedules
    Leadership vs Management
      Kotter's Distinctions
      Power Types
    Leadership Approaches
      Trait
      Behavioural
      Situational / Contingency
    Recent Trends
      Transformational
      Transactional
      Charismatic
      Leaders as Coaches
      Ethical
      Virtual
      Strategic

LO 9.1 — Forms of Employee Behaviour

Employee behaviour is the pattern of actions by members of an organization that directly or indirectly influences the organization’s effectiveness.

The Three Pillars of Behaviour

Performance Behaviours: The specific set of tasks a person is hired to do. Can be simple (assembly-line work) or complex (scientific research).
Organizational Citizenship: Behaviours that benefit the organization beyond the formal job description (e.g., helping a newcomer learn the ropes, staying late to help a colleague meet a deadline).
Counterproductive Behaviours: Behaviours that hurt organizational performance.
- Absenteeism: Not showing up — private-sector workers average 9.9 days of absences per year; public-sector about 13 days.
- Turnover: Quitting. Caused by poor supervision, poor person-job fit, stress, and burnout.
- Theft & Sabotage: Direct financial cost.
- Workplace Bullying & Harassment: Costs Canadian organizations an estimated $29 billion/year in absenteeism. Only 35% of employers acted when informed of bullying.

LO 9.2 — Individual Differences among Employees

Individual differences are physical, psychological, and emotional attributes that vary from one person to another. Two main categories: personality and attitudes.

The Big Five Personality Traits (OCEAN)

Trait	High	Low
Openness	Curious, creative, open to new ideas	Conventional, prefers routine
Conscientiousness	Organized, dependable, goal-directed	Disorganized, spontaneous
Extraversion	Outgoing, talkative, energetic	Reserved, prefers solitude
Agreeableness	Cooperative, trusting, helpful	Competitive, skeptical
Neuroticism (low = Emotional Stability)	Anxious, moody, easily stressed	Calm, resilient

Mnemonic: OCEAN

Six Workplace Personality Traits

These go beyond the Big Five to describe how personality plays out in workplace behaviour:

Locus of Control — belief that one’s behaviour affects outcomes.
- Internal: “I control my destiny.” Responds well to performance incentives.
- External: “Luck/others control outcomes.” Harder to motivate with rewards.
Self-Efficacy — belief in one’s ability to perform a specific task (task-specific, unlike self-esteem which is global).
Authoritarianism — belief that power and status differences are appropriate in organizations (“the boss is the boss”).
Machiavellianism — tendency to gain power and control through manipulation; rational, non-emotional, low loyalty.
Self-Esteem — belief that one is a worthwhile and deserving individual (global). High self-esteem → seeks higher-status jobs, intrinsic satisfaction. Low self-esteem → may prefer lower-level jobs, focuses on extrinsic rewards.
Risk Propensity — willingness to take chances and make risky decisions.

Mnemonic: Leaders Should Avoid Manipulative Styles, Right?

Emotional Intelligence (EQ)

EQ = the extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills.

5 Components: Self-awareness · managing emotions · self-motivation · empathy · social skills
Unlike IQ, EQ is trainable.
34% of hiring managers say EQ is a top priority when making hiring decisions.

Attitudes at Work

Attitudes are a person’s beliefs and feelings about specific ideas, situations, or people. They have three components:

Component	What it is	Example
Cognition	Knowledge/belief about something	”My manager is honest”
Affect	Emotional feeling toward something	”I like working here”
Intention	How the attitude shapes behaviour	”I plan to stay long-term”

Cognitive dissonance occurs when two perceptions contradict each other, or when someone behaves in a way that conflicts with their attitudes. People are motivated to reduce this dissonance (e.g., by changing their behaviour or rationalizing it).

Two key work-related attitudes:

1. Job Satisfaction — the extent to which people have positive attitudes toward their jobs.

Related concept: morale = the overall attitude people have toward their workplace (broader than a single job).
Satisfied employees: absent less, good organizational citizens, stay longer.
Dissatisfied employees: absent more, stressed, actively job-hunting.
Important: high job satisfaction does NOT automatically lead to high productivity.

2. Organizational Commitment (also called job commitment) — an individual’s identification with the organization and its mission.

Highly committed employees: see themselves as true members of the firm, overlook minor dissatisfactions, want to stay.
Less committed employees: see themselves as outsiders, express dissatisfaction, don’t see themselves as long-term members.
One way to increase commitment: give employees a voice.

LO 9.3 — Matching People and Jobs

Given the variety of individual differences and behaviour patterns, it’s important to match people well to the jobs they perform. Two key mechanisms: the psychological contract and person-job fit.

Psychological Contract

A psychological contract is the set of expectations held by an employee about what they will contribute to the organization and what the organization will provide in return. Unlike a legal contract, it is unwritten and not explicitly negotiated.

graph LR
    A["Individual Contributions<br/>• effort<br/>• ability<br/>• loyalty<br/>• skills<br/>• time<br/>• competency"] -->|exchange| B["Organizational Inducements<br/>• pay<br/>• benefits<br/>• job security<br/>• status<br/>• promotion opportunities<br/>• career opportunities"]
    B -->|exchange| A

If either party perceives inequity in the contract, they may seek change:

Employee: asks for a raise, puts in less effort, looks for another job.
Organization: retrains, transfers, or terminates the employee.

The psychological contract is crucial because violations erode trust and drive turnover even when no formal agreement was broken.

Person-Job Fit

Person-job fit is the extent to which a person’s contributions and the organization’s inducements match one another.

A good fit → higher performance, more positive attitudes.
A poor fit → lower performance, higher turnover risk, dissatisfaction.

Job redesign (see LO 9.5) is one tool organizations use to improve person-job fit.

LO 9.4 — Models of Employee Motivation

Motivation = “the set of forces that causes people to behave in certain ways.”

Classical Theory (Frederick Taylor, 1911)

Workers are motivated almost solely by money. Scientific management: find the most efficient way to do a task; pay workers for output (piece-rate). Insight: money matters — but the theory ignores social and psychological needs.

Hawthorne Effect (Elton Mayo, 1930s)

Workers’ productivity increases when they feel they are getting special attention from management — regardless of physical conditions. Revealed that social factors and feeling valued matter.

Maslow’s Hierarchy of Needs

Five levels, bottom to top. Lower needs must be substantially satisfied before higher ones become motivating:

Physiological — food, shelter, warmth
Safety — job security, safe environment
Social — belonging, friendship at work
Esteem — recognition, status, respect
Self-Actualization — meaningful work, reaching potential

Herzberg’s Two-Factor Theory

Hygiene Factors	Motivating Factors
Pay, working conditions, job security, supervisor quality	Achievement, recognition, responsibility, advancement, growth
Prevent dissatisfaction — removing them causes unhappiness, but improving them doesn’t motivate	Actually drive motivation and job satisfaction

Key insight: fixing hygiene factors creates a neutral state. Only motivators create genuine drive. A nicer parking spot addresses comfort; giving someone real decision-making authority says their work is meaningful.

McGregor’s Theory X / Theory Y

	Theory X	Theory Y
Assumption about workers	Lazy, irresponsible, avoid work, must be coerced	Self-motivated, want responsibility, capable of creativity
Management style	Command and control	Empowerment and trust

Theory Y aligns with modern management philosophy. Note: this describes the manager’s assumption, not the workers themselves.

Expectancy Theory (Victor Vroom)

People are motivated when they believe all three links hold:

Effort → Performance (I can do this if I try)
Performance → Reward (Good performance will be recognized)
Reward → Personal Goals (I actually want this reward)

If any single link breaks, motivation collapses.

Equity Theory

People compare their input/output ratio (effort invested vs. reward received) to a comparison person (colleague, industry norm). If the ratio feels unfair, they adjust — work less, demand more, or leave. Crucially, equity is based on perception, not objective fact.

Goal-Setting Theory

Specific, challenging, time-framed goals drive better performance than vague goals. Key acronym: SMART goals. Underpins MBO (Management by Objectives).

graph TD
    A[Classical Theory<br/>Money motivates] --> B[Hawthorne<br/>Social attention matters]
    B --> C[Maslow<br/>Hierarchy of needs]
    C --> D[Herzberg<br/>Hygiene vs Motivators]
    D --> E[McGregor<br/>X vs Y assumptions]
    E --> F[Expectancy<br/>Effort→Performance→Reward]
    F --> G[Equity<br/>Comparison to others]
    G --> H[Goal-Setting<br/>SMART goals drive performance]

LO 9.5 — Job Satisfaction Strategies

Strategy	How It Works
Reinforcement	Systematic rewards/punishments to shape desired behaviour
MBO (Management by Objectives)	Collaborative goal-setting cascading from top to bottom; employees own their targets
Participative management & empowerment	Give employees a voice in decisions about their jobs; tap into workers’ knowledge and self-motivation
Team management	Form teams suited to the task — five distinct types; each has its own structure and purpose (see below)
Job enrichment / redesign	Add responsibility, autonomy, growth; achieved through combining tasks, forming natural workgroups, establishing client relationships
Flextime	Employees choose their start/end hours within required core windows
Compressed workweek	Fewer days, longer shifts (most common: 4 × 10h); 88% of Canadian businesses offer some form of flexible scheduling
Telecommuting	Work from home, all or partial; surged during COVID-19
Worksharing (job sharing)	Two people split one full-time role

Five Types of Teams

Team Type	Description	Example
Problem-Solving	Focus on solving a specific problem; may disband after	St. Marys Cement — members developed energy-saving initiatives saving $800K over 3 years
Self-Managed	Set their own goals, select members, evaluate performance — manage themselves with minimal supervision	Johnsonville Foods
Project	Work on a specific project (new product, new process, new business); usually time-limited	IBM’s first personal computer team
Transnational	Members from many different countries; common in global firms	Any multinational coordinating product launches across regions
Virtual	Geographically dispersed co-workers using telecommunications and information technology to accomplish a task	Remote software development teams

When Teams Work Best (and When They Don’t)

Teams work best when:

Successful completion requires input from several different people
Tasks are interdependent (output of one person feeds the next — like a surgical team or an assembly line)
Working together enables things that individuals simply cannot do alone

Teams can backfire when:

Some workers resent the loss of individual autonomy
Pay systems reward the group — faster workers feel penalized by slower teammates
Team members lack the skills or commitment to self-manage

Job redesign (under job enrichment) uses three techniques:

Combining tasks: enlarge jobs to increase variety and make work more meaningful.
Forming natural workgroups: bring together people working on the same project so they see the full picture.
Establishing client relationships: let employees interact directly with customers for greater control and feedback.

LO 9.6 — Leadership vs. Management

Leadership = “the process of motivating others to work to meet specific objectives.”

Leadership and management are not the same thing. A person can be a manager, a leader, or both.

Activity	Management	Leadership
Creating an agenda	Planning & budgeting; setting steps and timetables; allocating resources	Establishing direction; developing a vision of the future and strategies to achieve it
Developing people	Organizing & staffing; delegating responsibility; creating procedures and monitoring systems	Aligning people; communicating direction by words and deeds to build coalitions
Executing plans	Controlling & problem-solving; monitoring results vs. plan; identifying deviations	Motivating & inspiring; energizing people to overcome political, bureaucratic, and resource barriers
Outcomes	Produces predictability and order; consistently meets shareholder expectations	Produces change, often dramatic; creates new products, new approaches, competitive advantage

Key point: organizations need both. Leadership creates and directs change; management achieves coordination and systematic results. Both managers and leaders shape the ethical climate of an organization.

Types of Power

Leadership requires the ability to influence others. Five types of power:

Power Type	Source
Legitimate	Formal position in the hierarchy (“authority”)
Reward	Ability to give or withhold rewards (salary, praise, promotions)
Coercive	Ability to punish (reprimands, demotion, termination)
Expert	Knowledge, expertise, or information others need
Referent	Personal charisma, loyalty, and identification — most associated with true leadership

Note: possession of legitimate power does not make someone a leader.

LO 9.7 — Approaches to Leadership (20th Century)

The systematic study of leadership began about a century ago. Three general approaches emerged:

1. Trait Approach

Premise: Leaders are born with certain traits — intelligence, confidence, integrity, drive, honesty, charisma. Problem: Research couldn’t reliably predict leadership effectiveness from traits alone. Fell out of favour as the sole explanation. Modern research has revisited this, focusing on EQ, drive, and integrity as key traits.

2. Behavioural Approach

Premise: Forget traits — what do leaders actually do?

Two key behavioural dimensions:

Task-focused behaviour — structure, direct work, set goals
Employee-focused behaviour — support, develop relationships, show concern

Three leadership styles identified:

Autocratic: Leader decides alone; no input from subordinates.
Democratic: Leader consults subordinates, then decides. (Most situations — best balance.)
Free-rein (Laissez-faire): Leader delegates fully; little direction given.

3. Situational / Contingency Approach

Premise: No single best leadership style. Effective leadership adapts to the situation.

Three models:

Path-Goal Theory: Leaders choose a style (directive, supportive, participative, achievement-oriented) based on follower characteristics and task structure.
Decision Tree Approach: Leader evaluates problem attributes and selects the appropriate decision-making process.
Leader-Member Exchange (LMX): Leaders form closer relationships with a small “in-group” of trusted subordinates (who get special duties and privileges) vs. the “out-group” (who receive less time and attention).

LO 9.8 — Recent Trends in Leadership

Transformational vs. Transactional Leadership

	Transformational	Transactional
Focus	Change and vision	Stability and routine
Method	Inspires followers to work beyond self-interest toward a larger goal	Manages via exchange (do this → get that)
When most valuable	During periods of major change or innovation	During periods of stability and maintenance

Many leaders struggle to switch modes. Example: Michael Eisner transformed Walt Disney, then failed to shift to transactional management once the firm stabilized.

Charismatic Leadership

Charismatic leadership = influence based on the leader’s personal charisma. Three elements:

graph LR
    A[Charismatic Leader] --> B[Envisioning<br/>• Articulating a compelling vision<br/>• Setting high expectations<br/>• Modelling consistent behaviours]
    A --> C[Energizing<br/>• Demonstrating personal excitement<br/>• Expressing personal confidence<br/>• Seeking and using success]
    A --> D[Enabling<br/>• Expressing personal support<br/>• Empathizing with followers<br/>• Expressing confidence in people]

Risk: charismatic leaders can inspire blind faith, leading followers to commit unethical or even illegal acts simply because the leader asked. (Example: Donald Trump and January 6, 2021.)

Leaders as Coaches

Many organizations are moving away from command-and-control hierarchy. Leaders are now expected to act as coaches: select team members, provide direction, develop talent, and allow the group to function autonomously — rather than controlling and directing every action.

Ethical Leadership

Corporate scandals have increased pressure on leaders to maintain high ethical standards for their own conduct and hold others to the same standards. Organizations are looking more closely at the ethics backgrounds of leadership candidates, and governance models are demanding greater accountability.

Virtual Leadership

Virtual leadership = leadership in settings where leaders and followers interact electronically rather than face-to-face. Surged during COVID-19. Leaders must build trust, provide direction, and maintain team cohesion without the benefit of in-person interaction.

Strategic Leadership

Strategic leadership = a leader’s ability to understand the complexities of both the organization and its environment, and to lead change to enhance the organization’s competitiveness. Big-picture thinkers who align the organization with its environment.

Cross-Cultural and Gender Leadership

Research is re-examining assumptions about how men and women lead, and how cultural context shapes effective leadership as companies operate in increasingly diverse, globalized environments.

Key Distinctions for Exam

Pair	What to remember
Hygiene vs. Motivator	Hygiene prevents dissatisfaction; motivators create satisfaction — they are not the same
Theory X vs. Theory Y	Describes the manager’s assumption about workers, not the workers themselves
Self-Efficacy vs. Self-Esteem	Efficacy is task-specific; esteem is global
Job Satisfaction vs. Morale	Satisfaction = attitude toward job; morale = attitude toward workplace overall
Psychological Contract	Unwritten, unspoken — but violations destroy trust and drive turnover
Transformational vs. Transactional	Change vs. stability; great leaders need both but often struggle to switch
Equity Theory	Based on perceived ratio vs. a comparison person — not objective fact
MBO	Goal-Setting Theory applied organizationally
Leadership vs. Management	Leadership = vision/change/inspiration; Management = planning/order/execution
Referent Power	The only power type directly linked to leadership rather than position

MotivationTheories, LeadershipApproaches, JobSatisfactionStrategies, PsychologicalContract, EmployeeBehaviour, ADMN201-Ch6, ADMN201-Ch8

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Motivating, Satisfying, and Leading Employees