CHAPTER 6

Leading
Chapter 6: Leading
Lesson Outcomes:

At the end of the term, the students should be able to;

1. Understood the nature of Leading.

2. Discussed the difference between leaders and managers.
3. Identified and understand the theories of motivation and leadership
styles.
4. Understood the Role of Communication and management of change
and diversity.
5. Explained the Filipino and Foreign Cultures.

Introduction

Leading is stimulating high performance by members of the organization

(Bateman and Snell, 2013). This function is getting members of the organization
on board with your plan.

Normally, this means connecting with direct reports or teammates on a personal

level. Understanding what drives individuals within the team allows a manager
to design strategies around motivating, incentivizing, mobilizing, and arousing a
desire to contribute.

Imagine for a minute, that you analyzed the conditions of the organization, you
determined a game plan to pursue and even directed resources to step in that
direction. You have successfully implemented the planning and organizing
functions. In this scenario, however, you did not give consideration to how your
team or organization would be involved. Do they agree with your direction?
Did they have input in the process? Do they feel valued as a team member?
Do they understand their role in a successful outcome? All of these questions
are answered by the degree to which a manager is engaged in the leading
function.

Having personal conversations, designing a bonus structure, or giving a rousing

speech might all be considered leading the organization

Leading

I. Leaders vs. Managers

Leaders influence. Managers direct. While it may not be that black and
white, leaders generally do focus on what matters and why as managers
focus on how. Both use different forms of influence and direction at
different times, but leaders have a bias to influencing by inspiring and
enabling through advice and counsel while managers gave a bias to
command and control.

Personality Styles:

Leaders are perceived as brilliant, but sometimes lonely; achieve

control of themselves before they try to control others; can visualize a
purpose and generate value in work; are imaginative, passionate, non-
conforming risk-takers.

Managers emphasize rationality and control; are problem-solvers

9focusing on goals, resources, organization structures, or people); often
ask the question, “What problems have to be solved, and what are the
best ways to achieve results so that people will continue to contribute to
this organization?”; are persistent, tough-minded, hard-working, intelligent,
analytical, tolerant, and have goodwill toward others.

Attitudes toward goals:

Leaders tend to be active since they envision and promote their

ideas instead of reacting to current situations; shape ideas instead of
responding to them; have a personal orientation toward goals; provide a
vision that alters the way people think about what is desirable, possible,
and necessary.

Managers adopt impersonal, almost passive attitudes toward

goals; decide upon goals based on necessity instead of desire and are
therefore deeply tied to their organization’s culture; tend to be reactive
since they focus on current information.

Conceptions of work:

Leaders develop new approaches to long-standing problems and

open issues to new options. First, use their vision to excite people and only
then develop choices that give those images substance; then, focus
people on shared ideals and raise their expectations; and work from high-
risk positions because of a strong dislike of mundane work.

Managers view work as an enabling process; establish strategies

and make decisions by combining people and ideas; continually
coordinate and balance opposing views; are good at reaching
compromises and mediating conflicts between opposing values and
perspectives; act to limit choice; tolerate practical, mundane work
because of strong survival instinct, which makes them risk-averse.
 Relations with others:

Leaders maintain inner perceptiveness that they can use in their

relationships with others; relate to people in intuitive, empathetic way;
focus on what events and decisions mean to participants; attract strong
feelings of identity and difference or of love and hate; create systems
where human relations may be turbulent, intense, and at times even
disorganized.

Managers prefer working with others; report that solitary activity

makes them anxious; are collaborative; maintain a low level of emotional
involvement in relationships; attempt to reconcile differences, seek
compromises, and establish a balance of power; relate to people
according to the role they play in a sequence of events or in a decision-
making process; focus on how things get done; maintain controlled,
rational and equitable structures; may be viewed by others as inscrutable,
detached, and manipulative.

Self-Identity:

Leaders reportedly have not had an easy time of their lives; their
lives are marked by a continual struggle to find some sense of order; do
not take things for granted and are not satisfied with the status quo; report
that their “sense of self” is derived from a feeling of profound
separateness; may work in organizations, but they never belong to them;
report that their sense of self is independent of work roles, memberships, or
other social indicators of social identity; seek opportunities for change (i.e.
technological, political, or ideological); support change; find their
purpose to profoundly alter human economic, and political relationships;
display a life development process, which focuses on personal mastery
and impels them to struggle for psychological and social change.

Managers believe that their adjustments to life have been

straightforward and that their lives have been more or less peaceful since
birth; have a sense of self as a guide to conduct and attitude derived
from a feeling of being at home and in harmony with their environment;
see themselves as conservators and regulators of an existing order of
affairs with which they personally identify and from which they gain
rewards; report that their role harmonizes with their ideals of responsibility
and duty; perpetuate and strengthen existing institutions; display a life
development process that focuses on socialization, which prepares them
to guide institutions and to maintain the existing balance of social
relations.

II. Nature of Directing

It is a process in which the managers instruct, guide, communicate,
inspire, motivate, and oversee the performance of the workers to achieve
predetermined goals. It is said to be the heart of management process.
Planning, organizing, and staffing have no importance if the directing
function does not take place. It is a continuous process initiated at the top
level and flows to the bottom thorough organizational hierarchy. Its nature
can be briefly explained as follows:

 Pervasive Function – Directing is required at all levels of an

organization every manager provides guidance and information to
his subordinates. It is a function related from the top level of
management to lower level subordinate of the organization.
 Executive Function – Directing function is carried out by all
managers and executive at all levels throughout the working of an
organization. A subordinate always gets instructions from his/her
superior only.
 Human factor – Directing function is related with human beings
unlike other four (4) factors of production, i.e. money, machines,
materials, and methods. Since human factor is complex and
behavior is unpredictable, direction function becomes important.
 Continuous Activity – Directing is a continuous activity as it
continues throughout the life of an organization. A manager has to
give direction to his/her subordinates, but the process will not end
with giving directions as s/he has to guide and motivate them
continuously so that the desired goals can be achieved.
 Creative Activity – Directing function helps in converting plans into
performance. A manager needs to have a creative and innovative
thinking so that s/he can guide and motivate his/her subordinates
with new ideas and techniques and make their performance
better one.
 Delegate Function – Directing function deals with human behavior.
Human behavior is unpredictable by nature and conditioning the
people’s behavior towards the goals of an organization is what the
manager does in the function.
 Flow from Top to Bottom Level – Directing functions includes
providing instructions which flow from top to bottom. It starts with
top level management and end with subordinates at the lower
level.
 Facilitates Coordination – Directing brings harmony among
employees and balance between all the activities of an
organization. Managers have to provide directions to their
respective departments and subordinates accordingly follow the
directions and work towards the achievement of organizational
objectives.
 Dual Objective – Direction helps to achieve dual objectives of an
organization. On one hand, it aims at getting things done by the
subordinates. On the other hand, it provides an opportunity for the
managers to prove their leadership qualities.
  Psychological Factor – Directing function is directly related to an
individual working in an organization. It deals with their feelings,
emotions, etc. while giving direction to the subordinates, the
manager has to take care that these feelings and emotions should
not get hurt.

III. Theories of Motivation in Management

Motivation is the answer to the question “Why we do what we do?” The

motivation theories try to figure out what the “M” is in the equation: “M
motivates P” (Motivator motivates the Person). It is one (1) of the most
important duty of an entrepreneur – to motivate people. Motivation
theories can be classified broadly into two (2) different perspectives;
Content and Process. Content theories deal with “what” motivates
people and it is concerned with individual needs and goals. This includes
the following theories:

Abraham Maslow’s Hierarchy of Needs

According to this theory, an individual strives to seek a higher need
when lower needs are fulfilled. Once a lower-level needs is satisfied, it no
longer serves as a source of motivation. Needs are motivators only when
they are unsatisfied.

 In the first level, physiological needs exist, which include the most
basic needs for humans to survive such as air, water, and food.
 In the second level, safety needs exist, which include personal
security, health, well-being, and safety against accidents remain.
 In the third level, belonging needs exist, where people need to feel
a sense of belonging and acceptance. It is about relationships,
families, and friendship. Organizations fulfill this need for people.
 In the fourth level, self-esteem needs remain. This is where people
looks to be respected and to have self-respect. Achievement
needs, respect of others are at this level.
 In the top-level, self-actualization needs exist. This level of need
pertains to realizing the person’s full potential.

Alderfer’s ERG Theory

In 1969, Clayton P. Alderfer simplified Maslow’s theory by

categorizing hierarchy of needs into three (3) categories, namely:
 Physiological and Safety needs are merged in Existence Needs.
 Belonging needs is named as Relatedness Needs.
 Self-esteem and Self-actualization needs are merged in Growth
Needs.

Herzberg’s Two (2) Factor Theory

 Frederick Herzberg introduced his two (2) Factor Theory in 1959. He
suggested that there are two (2) kinds of factors that affect motivation,
and they do it in different ways:
 Hygiene factors – A series of hygiene factors create dissatisfaction if
individuals perceive them as inadequate or inequitable, yet
individuals will not be significantly motivated if these factors are
viewed as adequate or good. Hygiene factors are extrinsic and
include factors such as salary or remuneration, job security, and
working conditions.
 Motivators – They are intrinsic factors such as a sense of
achievement, recognition, responsibility, and personal growth.

The hygiene factors determine dissatisfaction, and motivators

determine satisfaction. Herzberg theory conforms to satisfaction
theories, which assert that “a satisfied employee tends to work in
the same organization but this satisfaction does not always result in
better performance”. In other words, satisfaction does not
correlate with productivity.

McClelland’s Achievement Need Theory

In this 1961 book entitled, “The Achieving Society”, David

McClelland identified three (3) basic needs that people develop and
acquire from their life experiences.

 Needs for Achievement – The person who has a high need for
achievement seeks achievement and tries to attain challenging
goals. There is a strong need for feedback as to achievement
and progress, and a need for a sense of accomplishment. The
person who has a high achievement need likes to take personal
responsibility.
 Needs for affiliation – The person who has a high need for
affiliation needs harmonious relationships with people and
needs to be accepted by the people. (People-oriented rather
than task-oriented).
 Needs for power – The person who has a need for power wants
to direct and command other people. Most managers have a
high need for power.

Although these categories of needs are not exclusive,

generally, individuals develop a dominant bias or emphasis towards
one (1) of the three (3) needs. Entrepreneurs usually have a high
degree of achievement needs,

Incentive Theory

Incentive theory suggests that employee will increase his/her

effort to obtain the desired reward. This is based on the general
 principle of reinforcement. The desired outcome is usually “money”.
This theory is coherent with the early economic theories where man is
supposed to be rational and forecasts are based on the principle of
“economic man”.

Process theories deal with the “process” of motivation and

are concerned with “how” motivation occurs. This includes the
following theories:

Expectancy Theory

This theory argues that humans act according to their conscious

expectations that a particular behavior will lead to specific desirable
goals.

Victor H. Vroom, developed the Expectancy Theory in 1964,

producing a systematic explanatory theory of workplace motivation.
It asserts that the motivation to behave in a particular way is
determined by an individual’s expectation that behavior will lead to a
particular outcome, multiplied by the preference or valence that
person has for that outcome. The three (3) components of
Expectancy Theory are:

 Expectancy (E P) – The belief of the person that his/her

effort (E) will result in attainment of desired performance (P)
goals.
 Instrumentally (P R) – The belief of the person that s/he
will receive a reward (R) if the performance (P) expectation
is met.
 Valence – The value of the reward according to the person.
For example, “Is the reward attractive to the person?”

The equation suggests that human behavior is directed by

subjective probability.

Goal Theory

Edwin Locke proposed Goal Theory in 1968, which proposes that

motivation and performance will be high if individuals set specific goals,
which are challenging, but accepted; and where feedback is given on
performance. The two (2) most important findings of this theory are:

 Setting specific goals (e.g. I want to earn a million before I

am 30) generates higher levels of performance than setting
general goals (e.g. I want to earn a lot of money).
 The goals that are hard to achieve are linearly and positively
connected to performance. The harder the goal, the more
a person will work to reach it.
 Adam’s Equity Theory
Developed by John Stacey Adams in 1963, Equity Theory suggest
that if the individual perceives that the rewards received are equitable –
i.e. fair or just in comparison with those received by others in similar
positions in or outside the organization then, the individual feels satisfied.
Adams asserted that employees seek to maintain equity between the
inputs that they bring to a job and the outcomes that they receive from it
against the perceived inputs and outcomes of others.

IV. Leadership Styles

Leadership style is the manner and approach of providing direction,

implementing plans, and motivating people. As seen by the employees, it
includes the total pattern of explicit and implicit actions performed by
their leader.

The first major study of leadership styles was performed in 1939 by Kurt
Lewin who led a group of researchers to identify different styles of
leadership. This early study has remained quite influential as it established
the three (3) major leadership styles.

 Authoritarian or Autocratic – the leader tells his or her employees

what to do and how to do it, without getting their advice.
 Participative or Democratic – the leader includes one or more
employees in the decision making process, but the leader normally
maintains the final decision-making authority.
 Delegative or Laissez-fair – the leader allows the employees to
make the decisions, however, the leader is still responsible for the
decisions that are made.

Although good leaders use all three (3) styles, with one (1) of them
normality dominant, bad leaders tend to stick with one (1) style, normally
autocratic.

Authoritarian or Autocratic Leadership

This style is used when leaders tell their employees what they want to be
done and how they want it accomplished, without getting the advice of
their followers. Some of the appropriate conditions to use this style is when
you have all the informatiopn to solve the problem, you are short on time,
and/or your employees are well motivated. Some people tend to think of
this style as a vehicle for yelling, using demeaning language, and leading
by threats. This is not the authoritarian style, rather it is an abusive,
unprofessional style called “bossing people around.” It has absolutely no
place in a leader’s repertoire.
The authoritarian style should normally only be used on rare occasion. If
you have the time and want to gain more commitment and motivation
form your employees, then you should use the participative style.

Participative or Democratic Leadership

This style involves the leader including one or more employees in the
decision-making process (determining what to do and how to do it).
However, the leader maintains the final decision-making authority. Using
this style is not a sign of weakness, rather it is a sign of strength that your
employees will respect.

This is normally used when you have part of the information, and your
employees have other parts. A leader is not expected to know everything
– this is why you employ knowledgeable and skilled people. Using this style
is of mutual benefit as it allows them to become part of the team and
allows you to make better decisions.

Delegative or Laissez-faire Leadership

In this style, the leader allows the employees to make the decisions.
However, the leader is still responsible for the decisions that are made. This
is used when employees are able to analyze the situation and determine
what needs to be done and how to do it. You cannot do everything. You
must set priorities and delegate certain tasks.

This is not a style to use so that you can blame others when things go
wrong, rather this is a style to be used when you fully trust and have
confidence in the people below you. Do not be afraid to use it; however,
use it wisely.

A good leader uses all three (3) styles, depending on what forces are
involved between the followers, the leader, and the situation. Some
examples include:

 Using an authoritarian style on a new employee who is just learning

the job. The leader is competent and a good coach. The
employee is motivated to learn a new skill. The situation is a new
environment for the employee.
 Using a participative style with a team of workers who know their
jobs. The leader knows the problem but does not have all the
information. The employees know their jobs and want to become
part of the team.
 Using a delegative style with a worker who knows more about the
job than you do. You cannot do and know everything and the
employee needs to take ownership of his/her job. In addition, this
allows you to be more productive.
  Using all three (3) styles: Telling your employees that a procedure is
not working correctly and a new one must be established
(authoritarian). Asking for their ideas and input on creating a new
procedure (participative). Delegating tasks in order to implement
the new procedure (delegative).

Forces that influence the style to be used include:

 Amount of time available

 Are relationship based on respect and trust or on disrespect?
 Who has the information – you, the employees, or both?
 How well your employees are trained and how well you know
the task?
 Internal conflicts
 Stress levels
 Type of task, such as structured, unstructured, complicated, or
simple
 Laws or established procedure, such as OSHA or training plans

V. The Role of Communication

Communication plays a key role in the success of any workplace program

or policy and serves as the foundation for all types of psychologically
healthy workplace practices. Communication about workplace practices
helps achieve the desired outcome for the employee and the
organization in a variety of ways:

 Bottom-up Communication (from employees to management)

provides information about employee needs, values, perception,
and opinions. This helps organizations select and tailor their
programs and policies to meet the specific needs of their
employees.
 Top-down Communication (from management to employees) can
increase utilization of specific workplace programs by making
employees aware of their availability, clearly explaining how to
access and use the services, and demonstrating that management
supports and values the programs.

Examples of communication strategies that can help make your

workplace programs successful include:

 Providing regular, ongoing opportunities for employees to provide

feedback to management. Communication vehicles may include
employee surveys, suggestion boxes, individual, or small group
meeting with managers, and an organizational culture that support
open, two-way communication.
 Making the goals and actions of the organization and senior
leadership clear to workers by communicating key activities, issues,
 and developments to employees and developing policies that
facilitate transparency and openness.
 Assessing the needs of employees and involving them in the
development and implementation of psychologically healthy
workplace practices.
 Using multiple channels (for example, print and electronic
communications, orientation and training, staff meeting and public
addresses) to communicate the importance of a psychologically
healthy workplace to employees.
 Leading by example, by encouraging key organizational leaders to
regularly participate in psychologically healthy workplace activities
in ways that are visible to employees.
 Communicating information about the outcomes and success of
specific psychologically healthy workplace practices to all
members of the organizations.

Effective Communication is significant for managers in the

organization so as to perform the basic functions of management – i.e.
Planning, Organizing, Leading, and Controlling.

Communication helps managers to perform their job and

responsibilities. Communication serves as a foundation for planning. All
the essential information must be communicated to managers who in
turn communicate the plans so as to implement them. Organizing also
requires effective communication with others about the job task.
Similarly, leaders as managers must communicate effectively with their
subordinates so as to achieve the team goals. Controlling is not
possible without written and oral communication.

Managers devote a great part of their time in communication. They

generally devote approximately six (6) hours per day in
communicating. They spend a great time on face-to-face or
telephonic communication with their superiors, subordinate,
colleagues, customers, or supplier. Managers also use Written
Communication in form of letters, reports or memos wherever oral
communication is not feasible. Thus, we can say that “effective
communication is a building block of successful organizations”. In
other words communication acts as organizational blood.

VI. Management of Change and Diversity in Organizations

Management change and organizational diversity are two (2) related
activities/functions of management because trying to bring about
change in organizations is dependent on the kind and the behavior of the
people within them. Bringing about organizational innovations or
changes, although positively valued by people in our society, in order to
respond to future competitors, may threaten the firm’s members and,
thus, cause resistance. Understanding and managing diversity in the
workplace may. Therefore, be necessary in order to help manage
change in organizations.

Types of Changes

An organization and its members must undergo constant

improvement along with its achievement of growth. Changes may be
implemented to bring about development in an organization.

Among the changes that typically occur or are implemented in an

organization are the following:

 Changes in people. People’s attitude, values, wants and needs,

expectations, perceptions, and behaviors change as time goes on,
but changing them for the better is not easy to do. In order to
address this need for change, organizational development
techniques are used. Organizational development is used to
describe organizational change methods related to people, their
nature, and the quality of their interpersonal relationships as they
work and collaborate with one another. Team building, sensitivity
training, intergroup development, process consultation, and survey
feedback are popular organizational development techniques.
Managers, however, must use techniques that are fitted to the
prevailing organizational culture in their respective companies.
 Changes in structure. Due to changing conditions/situations and
changing strategies used, organizational structures may also
change according to work specialization, departmentalization and
change of command, span of control, centralization, formalization,
and job design. Managers are advised to alter one (1) or more of
these structural components, depending on the needs of their
organization.
 Changes in Technology. Technology changes usually refer to
changes in work processes and methods used, introduction of new
equipment and work tools, automation, or computerization.
Competitive factors or innovation in industries require administrators
of companies to consider such technological changes.

Managing Resistance to Change

Change is considered by many organization members as a threat.

It is common for people to fear to change the status quo, even if doing so
might bring beneficial effects. The possible reasons for this fear of change
are uncertainty, concern about personal loss, pessimism, the belief that it
will have negative effects on the organization, and change in their
habitual practices, among others. The following are required to manage
resistance to change:
 Education – Employees have to be educated regarding the
reasons for and the relevance of change.
 Participation – By allowing organization members to participate in
decision-making related to bringing about change in their
company.
 Facilitation and support – By facilitating or providing new skills
training and counseling for employees to minimize their fear of
change.
 Manipulation of information – By withholding damaging
information about change to make it acceptable to organization
members.
 Selection of people – By selecting people who are open to
change to help disseminate the beneficial effects of change,
resistance to change is lessened.
 Coercion – It is the use of direct threats or force to make people
accept change; however, this method is perceived as a form of
bullying, so it is used only when extremely necessary.

Issues in Change Management

Understanding Situational Factors

Waiting for the appropriate time and situation is suggested when

bringing about change in organizations. For example, the induction of
new administrators/leaders is a good time to introduce changes in the
organization’s strategies, policies, and core values. Employees may
show less is resistance to change because they may perceive their
new leaders as more capable of responding to their needs and the
organization’s needs.

Another example is when a major crisis has just occurred. A big

financial crisis in the organization could trigger a clamor for change. In
this situation, there would be less resistance to the acceptance of new
investment, marketing, and human resource policies.

Making Changes in Organizational Culture

 Change in organizational culture cannot be done easily

because it is highly valued and ingrained among the firm’s
members. Thus, this must be done slowly to avoid violent
resistance.
 Set the tone through management behavior-to managers,
particularly, need to be positive role models
 Create new stories, symbols, and rituals to replace those
currently in use.
 Select and promote employees who adopt the new values.
 Redesign socialization processes to align with the new values.
 To encourage acceptance of new values, change the rewards
system.
 Replace unwritten norms with clearly specified expectations.
  Shake up current subcultures through job transfers, job rotation,
and/or termination.
 Work to get consensus through employee participation and
creating a climate with a high level of trust.

Managing Workplace Diversity

Workforce diversity in organizations is inevitable. It is a fact that

organization members may differ in age, gender, physical ability,
ethnicity/race, culture, values, attitudes, beliefs, and personality.
Since workgroup diversity is associated with positive and negative
outcomes, managers must try to reduce the potential negative
effects of divers through (1) encouraging employees to accept
the organization’s culture its dominant values; and (2)
encouraging employees to accept different in the workplace.

These, in turn, may be accomplished by training in order to

improve the inherent negative relationship regarding a
workgroup’s diversity between its deep level values and the
organization’s culture and dominant values. Training can also be
used to help employees understand demography differences.

Other ways to handle workplace diversity is by creating support

groups that can help employees ease the tension of working in
diverse groups and reducing unconscious stereotype related to
associating low or poor performance to women, the disabled or
some ethnic group members.

VII. Filipino and Foreign Cultures

Filipino-owned organizations exhibit a different organizational culture as
compared to their foreign counterparts. Filipino and foreign culture in
organizations exert a big influence on how managers do their functions and how
their subordinates respond to their rules/regulations and leadership styles.
Organizational culture is, therefore, a critical factor in numerous organizational
endeavors.

Shared Values and Beliefs/Practice of Filipinos

Different people from around the world have their own set of values or beliefs
that they share and consider significant as a group or a community. As Filipinos,
we are no different from other groups around the world. Our unique culture as a
people also influences our attitudes about work, as well as our habits. Here are
three (3) primary Filipino values:

 Social Acceptance – This value’s focus is the desire of Filipinos to be

accepted and treated well by others: his/her family, relatives, friends, and
the members of communities/organizations where he or she belongs in
accordance with his/her status, of what s/he is, and for what s/he has
accomplished.
  Economic Security – This value emphasizes that one must have financial
stability and that he or she must be able to stand on his/her own, without
incurring debt in order to meet basic material needs.
 Social Mobility – This value is concerned with his/her desire to move up
the social ladder, to another higher economic level, to a higher job
position, to a position of respect in his/her family or in the community
where s/he lives or in the organizations where s/he belongs, and others.

Among the examples of Filipino beliefs and practices are the following:

 The mañana habit pertains to the belief or practice that it is alright to

postpone work or finishing tasks to another day. Instead of finishing the
task at hand, one opts to rest or engage in the leisurely activity.
 Ningas kugon is a Filipino practice that refers to the initial show of
enthusiasm over a project during its beginning and the waning of this
interest over the project over time. Similarly, the energy level of the
worker lowers in the course of the project, hence, work slows down.
 Filipino time pertains to the common Filipino practice wherein arriving
15-30 minutes late to work or to both formal and informal meetings
with associates and friends is considered acceptable.

Activity 1:

References:

https://tinyurl.com/58k82evc Data Retrieved March 18, 2023)