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Chapter one concept of leadership

Introduction

Good leaders are made not born. Good leaders develop through a never ending process of self-
study, education, training, and experience.

Good leaders are continually working and studying to improve their leadership skills; they are
NOT resting on their laurels.

Definition of Leadership:

Leadership is a process whereby an individual influences a group of individuals to


achieve a common goal.
Leadership is a process by which a person influences others to accomplish a mission.
Leadership is a process of social influence, which maximizes the efforts of others,
towards the achievement of a goal.

Note that all the definitions have a couple of processes in common:

A person influences others through social influence, not power; to get something
accomplished (bosses use power to get things done).
Leadership requires others, who are not necessarily direct-reports, to get something
accomplished.
Leaders carry out this process by applying their leadership knowledge and skills. This is
called Process Leadership.
However, we know that we have traits that can influence our actions. This is called Trait
Leadership. In that it was once common to believe that leaders were born rather than
made.

Factors of Leadership

There are four primary factors of leadership (U.S. Army, 1983):

1. Leader 3. Communication
2. Followers 4. Situation
1. Leader

You must have an honest understanding of who you are, what you know, and what you can do.
Also, note that it is the followers, not the leader or someone else who determines if the leader is
successful.

To be successful you have to convince your followers, not yourself or your superiors, that you
are worthy of being followed.
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2. Followers

The fundamental starting point is having a good understanding of human nature, such as needs,
emotions, and motivation. You must come to know your employees' be, know, and do attributes.

3. Communication

You lead through two-way communication. What and how you communicate is either builds or
harms the relationship between you and your followers.

4. Situation

All situations are different. What you do in one situation will not always work in another. You
must use your judgment to decide the best course of action and the leadership style needed for
each situation.

Various forces will affect these four factors. Examples of forces are:

your relationship with your seniors


the skills of your followers
the informal leaders within your organization
how your organization is organized

Bass' Theory of Leadership

States that there are three basic ways to explain how people become leaders.

1. Some personality traits may lead people naturally into leadership roles. This is the
Trait Theory.
2. A crisis or important event may cause a person to rise to the occasion, which brings
out extraordinary leadership qualities in an ordinary person. This is the Great Events
Theory.
3. People can choose to become leaders. People can learn leadership skills. This is the
Transformational or Process Leadership Theory.

Leadership vs. managerial duties and styles

Following are several key distinctions between management and leadership:

Management

Is more formal and scientific than leadership.


It relies on universal skills such as planning, budgeting and controlling.
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Is an explicit set of tools and techniques, based reasoning and testing, that can be used in
a variety of situations.
Management is more likely to produce a degree of predictability and order.
Top level managers just manage (or maintain organizations.)
In contrast the key function of the manager is to implement the vision.

Leadership

Involves having a vision of what the organization can become and mobilizing people to
accomplish it.
Requires eliciting cooperation and teamwork from a large network of people and keeping
the people in that network motivated, using every manner of persuasion.
Produces change, often to a dramatic degree, such as spearheading the launch of a new
product or opening a new market for an old product.
Top level leaders are likely to transform their organizations.
A leader creates a vision (i.e., a loft goal) to direct the organization.

The following set contains the difference between manager and leader

Leader Manager

Does the right things, Does things right

Visionary, Rational

Passionate, Business like

Creative, Persistent

Inspiring Innovative, Tough Minded

Courageous, Analytical Structured

Imaginative, Deliberative

Experimental, Stabilizing

Shares Knowledge, Centralizes Knowledge

Trusting, Guarded

Warm and Radiant, Cool and Reserved

Expresses Humility, Rarely admits to being wrong

Initiator, Implementer
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Satisfaction of Leaders:

Factors such as the amount of money you are paid and the type of people in your group
influences your satisfaction.

There are seven sources of satisfaction that leaders often experience.

1. A feeling of power and prestige: Being a leader automatically grants you some power.
Prestige is forthcoming because many people think highly of people who are leaders.
2. A chance to help others grow and develop: Part of a leader's job is to help other people
become managers and leaders. A leader often feels as much of a "people helper" as does a
human resources manager or a counselor.
3. High income: If money is an important motivator or satisfier, being a leader has a built-
in satisfaction. Occupying a leadership position, however, is a starting point on the path
to high-paying leadership positions.
4. Respect and status: A leader frequently receives respect from group members. He or she
also enjoys a higher status than people who are not occupying a leadership role. Status
accompanies being appointed to a leadership position on or off the job.
5. Good opportunities for advancement: Obtaining a leadership position is a vital first
step for career advancement in many organizations.
6. A feeling of "being in on" things: A side benefit of being a leader is that you receive
more inside information.
7. An opportunity to control money and other resources: A leader is often in the position
of helping to prepare a department budget and authorize expenses.

Dissatisfaction and Frustrations of Leaders:

The frustrations experienced by a wide range of people in leadership roles revolve around the
problems described next.

1) Too much uncompensated overtime: People in leadership jobs are usually 'expected to
work longer hours than other employees. Such unpaid hours are called casual
overtime.
2) Too many "headaches.": Many people find that a leadership position is a source of
stress, and many managers experience burnout.
3) Not enough authority to carry out responsibility: People in managerial positions
complain repeatedly that they are held responsible for things over which they have little
control.
4) Loneliness: The higher you rise as a leader, the lonelier you will be in a certain sense.
Leadership limits the number of people in whom you can confide. Some people in
leadership positions feel lonely because they miss being "one of the gang."
5) Too many problems involving people: A major frustration facing a leader is the number
of human resources problems requiring action.
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6) Too much organizational politics: As a leader you have to engage in political byplay
from three directions: below, sideways, and upward. Political tactics such as forming
alliances and coalitions are a necessary part of a leader's role. Another troublesome aspect
of organizational politics is that there are people lurking to take you out of the game,
7) The pursuit of conflicting goals: A major challenge leaders face is to navigate among
conflicting goals.

Boss or Leader?

Although your position as a manager, supervisor, leader, etc. gives you the authority to
accomplish certain tasks and objectives in the organization (called Assigned Leadership), this
power does not make you a leader, it simply makes you a boss.

Leadership differs in that it makes the followers want to achieve high goals (called Emergent
Leadership), rather than simply ordering people around.

Thus, you get Assigned Leadership by your position and you display Emergent Leadership
by influencing people to do great things.

Total Leadership

People want to be guided by leaders they respect and who have a clear sense of direction.

To gain respect, they must be ethical.


A sense of direction is achieved by conveying a strong vision of the future.
Self-serving leaders are not as effective because their employees only obey them, not
follow them.
Good leadership is honorable character and selfless service to your organization.

Attributes of Leadership: BE, KNOW, and DO

Respected leaders concentrate on Be, Know, and Do.

Who they are [be] (such as beliefs and character)


What they [know](such as job, tasks, and human nature)
What they [do ](such as implementing, motivating, and providing direction)

BE a professional. Be loyal to the organization, perform selfless service, and take personal
responsibility.

BE a professional who possess good character traits. Honesty, competence, candor,


commitment, integrity, courage, straightforwardness, imagination.

KNOW the four factors of leadership follower, leader, communication, situation.

KNOW yourself. : Strengths and weakness of your character, knowledge, and skills.
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KNOW human nature. Human needs, emotions, and how people respond to stress.

KNOW your job. Be proficient and be able to train others in their tasks.

KNOW your organization. Where to go for help, its climate and culture, who the unofficial
leaders are.

DO provide direction. Goal setting, problem solving, decision making, planning.

DO implement. Communicating, coordinating, supervising, evaluating.

DO motivate. Develop morale and esprit de corps in the organization, train, coach, counsel.

Environments of leadership

Goals, Values, and Concepts

Leaders exert influence on the environment via three types of actions:

The goals and performance standards they establish.


The values they establish for the organization.
The business and people concepts they establish.

Values

Reflect the concern the organization has for its employees, customers, investors, vendors,
and surrounding community.
These values define the manner in how business will be conducted.

Concepts

Define what products or services the organization will offer and the methods and
processes for conducting business.

These goals, values, and concepts make up the organization's personality or how the organization
is observed by both outsiders and insiders. This personality defines the roles, relationships,
rewards, and rites that take place.

The Process of Great Leadership

The road to great leadership that is common to successful leaders includes

1. Challenge the process - First, find a process that you believe needs to be improved the
most.
2. Inspire a shared vision - Share your vision in words that can be understood by your
followers.
3. Enable others to act - Give them the tools and methods to solve the problem.
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4. Model the way - When the process gets tough, get your hands dirty. A boss tells others
what to do; a leader shows that it can be done.
5. Encourage the hearts - Share the glory with your followers' hearts, while keeping the
pains within your own.

Leading

Your thinking skills can be considered directional skills because they set the direction for your
organization. They provide vision, purpose, and goal definition. These are your eyes and ears to
the future, allowing you to recognize the need for change, when to make it, how to implement it,
and how to manage it. You find a vision by reaching for any available reason to change, grow,
and improve.

When setting goals, keep these points in mind:

They should be realistic and attainable.


They should improve the organization (moral, monetary, etc.).
Your people should be involved in the goal-setting process.
A program should be developed to achieve each goal.

There are four characteristics of goal setting:

1. Goal Difficulty - Increasing your employee's goal difficulty increases their challenge and
enhances the amount of effort expended to achieve them. The more difficult goals lead to
increased performance if they seem feasible. If they seem too high, employees will give
up when they fail to achieve them.
2. Goal Specificity - When given specific goals, employees tend to perform higher.
Employees need a set goal or model in order to display the correct behavior.
3. Feedback - Providing feedback enhances the effects of goal setting. Performance
feedback keeps their behavior directed on the right target and encourages them to work
harder to achieve the goal.
4. Participation in Goal Setting - Employees who participate in the process, generally set
higher goals than if the goals were set for them. It also affects their belief that the goals
are obtainable and increases their motivation to achieve them.

The Six Steps of Goal Setting

Step 1 - Define Your Vision

Mission statements guide the organization in its day-to-day operations


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Visions provide a sense of direction for the long term as they provide the means to the
future.
The mission of the organization is crucial in determining your vision.
Your vision needs to coincide with the big picture.
The term vision suggests a mental picture of what the future organization will look like.
The concept also implies a later time horizon.

Managers are people who do things right and leaders are people who do the right thing

Effective visions described as

inspiring
clear and challenging
make sense in the market place
are executable, they stand the test of time in a turbulent world

Once you have your vision, it needs to be framed in general, un-measurable terms and
communicated to your team. Your team then develops the ends (objectives), ways (concepts),
and means (resources) to achieve the vision.

Step 2 - Set Goals

Goals are also stated in un-measurable terms, but they are more focused.

Step 3 - Objectives

Definable objectives provide a way of measuring the evaluating movement toward vision
achievement.
This is the strategy of turning visions into reality.
It is the crossover mechanism between your forecast of the future and the envisioned,
desired future.
Objectives are stated in precise, measurable terms.

Step 4 - Tasks

Through tasks, objectives are accomplished.


Tasks are concrete, measurable events that must occur.

Step 5 - Timeline

Since time is precious and some tasks must be accomplished before another can begin,
establishing priorities helps your team to determine the order in which the tasks must be
accomplished and by what date.

Step 6 - Follow up
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The final step is to follow up, measure, and check to see if the team is doing what is required.
Also, note that validating does not mean micro-managing. Micro-management places no trust in
others, whereas following-up determines if the things that need to get done are in fact getting
done.

Inspiring Your Employees

Inspire means to breathe life into. And in order to perform that, we have to have some life
ourselves. Three main actions will aid you in accomplishing this:

1. be passionate:
2. Get your employees involved in the decision making process:
3. Know what your organization is about:

The Six Points of Leadership Power

Leadership power is much more than the use of force.


Leadership is influencing others to truly want to achieve a goal
power forces others to achieve a goal.
Power refers to a capacity that a person has to influence the behavior of another so that he
or she acts in accordance with his or her' wishes.
This power is a capacity or potential as it implies a potential that need not be actualized
to be effective.
That is, a power may exist, but does not have to be used to be effective.

A person has the potential for influencing six points of power over another

1. Coercive Power:-Power that is based on fear. A person with coercive power can make
things difficult for people.
2. Reward Power: - Compliance achieved based on the ability to distribute rewards that
others view as valuable. Able to give special benefits or rewards to people.
3. Legitimate Power: - The power a person receives as a result of his or her position in the
formal hierarchy of an organization.
4. Expert Power: - Influence based on special skills or knowledge. This person earns
respect by experience and knowledge. Expert power is the most strongly and consistently
related to effective employee performance.
5. Referent Power: - Influence based on possession by an individual or desirable resources
or personal traits. This is often thought of as charisma, charm, or admiration. You like the
person and enjoy doing things for him or her.
6. Informational Power: - Providing information to others that result in them thinking or
taking acting in a new way.
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Unit two

Leadership, human behavior and motivation

Motivation

Is a theoretical construct used to explain behavior.


It represents the reasons for people's actions, desires, and needs.

Motives

Are hypothetical constructs, used to explain why people do what they do.
A motive is what prompts a person to act in a certain way or at least develop an
inclination for specific behavior.

A Classification of Motivation Theories (Content vs. Process)

Motivation theories can be classified broadly into two different perspectives:


Content and Process theories.
1. Content Theories
Deal with what motivates people
It is concerned with individual needs and goals.
2. Process Theories
Deal with the process of motivation
Concerned with how motivation occurs.

1. Content Theories about Motivation

A. Abraham Maslows Hierarchy of Needs

Based his theory of human needs on creative people who used all their talents, potential, and
capabilities.

Maslow (1943) felt that human needs were arranged in a hierarchical order that could be divided
into two major groups:

a) Basic needs and


b) Meta needs (higher order needs):
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Basic Needs are

Physiological, such as food, water, and sleep; and


Psychological, such as affection, security, and self-esteem.

These basic needs are also called deficiency needs because if an individual does not meet
them, then that person will strive to make up the deficiency.

Meta needs or being needs (growth needs). These include justice, goodness, beauty, order, unity,
etc.

Basic needs normally take priority over these Meta needs. For example, a person who lacks food
or water will normally not attend to justice or beauty needs.

Self-actualization

Knows exactly who you are, where you are going, and what you want to accomplish.
A state of well-being

Esteem

feeling of moving up in world, recognition, few doubts about self

Belongingness and love

Belong to a group, close friends to confide with

Safeties

feel free from immediate danger

Physiological

food, water, shelter, sex

Knowing where a person is located on the pyramid will aid you in determining effective
motivators.

It should be noted that almost no one stays in one particular hierarchy for an extended period.
Those on top get pushed down for short time periods,

e.g., death of a loved-one or an idea that does not work;

While those on the bottom get pushed up,

e.g., earn the education they need or come across a small reward or prize.
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Criticisms and Strengths

Maslow's theory has often been criticized because we can find exceptions to it, such as the
military, police, firefighters, etc. who will risk their safety for the well-being of others or parents
who will sacrifice their basic needs for their children.

Fulfilling the various needs has relatively independent affects on a person's subjective well-
being. Thus, rather than being a pyramid with the basic human needs arranged in a hierarchical
order, it is more like a box with the basic human needs scattered within and depending on the
situation and/or environment, different needs rise to the top to compensate for the deficient
needs.

Expansion of the Pyramid

Maslow theorized that the ultimate goal of life is self-actualization, which is almost never fully
attained, but rather is something we try to always strive for.

He later theorized that this level does not stop; it goes on to self-transcendence, which carries us
to the spiritual level,

Maslow's self-transcendence level recognizes the human need for ethics, creativity, compassion
and spirituality. Without this spiritual or transegoic sense, we are simply become machines.

Self-transcendence

a transegoic level that emphasizes visionary intuition, altruism, and unity consciousness.

Self-actualization

Know exactly who you are, where you are going, and what you want to accomplish. A
state of well-being.

Aesthetic

To do things not simply for the outcome but because it's the reason you are here on earth
at peace, more curious about the inner workings of all things.

Cognitive

To be free of the good opinion of others, learning for learning alone, contribute
knowledge.
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Esteem

Feeling of moving up in world, recognition, few doubts about self.

Belongingness and love

Belong to a group, close friends to confide with.

Safety

Feel free from immediate danger.

Physiological

Food, water, shelter, sex.

Note:

Transegoic means a higher, psychic, or spiritual state of development.


The Trans is related to transcendence, while the ego is based on Freud's work.

Characteristics of Self-actualized People

People who have reached the state of self-actualization tend to display the following
characteristics:

Have better perceptions of reality and are comfortable with it


Accept themselves and their own natures
Lack artificiality
Focus on problems outside themselves and are concerned with basic issues and eternal
questions
Like privacy and tend to be detached
Rely on their own development and continued growth
Appreciate the basic pleasures of life (e.g. do not take blessings for granted)
Have a deep feeling of kinship with others
Are deeply democratic and are not really aware of differences
Have strong ethical and moral standards
Are original, inventive, less constricted and fresher than others

Going Beyond Maslow

It still remains quite popular due to its simplicity and being the start of the movement
away from behaviorist, reductionist, and mechanistic approaches to a more humanistic
one.
He understood and thought of his work as simply a method of pointing the way, rather
than being the final say.
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He hoped that others would take up the cause and complete what he had begun.

B.Herzberg's Hygiene and Motivational Factors

Hygiene factors must be present in the job before motivators can be used to stimulate a person.
That is, you cannot use motivators until all the hygiene factors are met. If the factor is not met,
then it becomes a Dissatisfied.

Perhaps the most powerful of motivational leaders is the person who practices whats called,
servant leadership.

The person who sees him/herself as a servant, and who does everything possible to help others to
perform at their best is practicing the highest form of servant leadership.

Hygiene or Dissatisfiers:

Working conditions Status


Policies and administrative practices Job security
Salary and Benefits Co-workers
Supervision Personal life
Motivators or Satisfiers:

Recognition Growth
Achievement Responsibility
Advancement Job challenge
Job enrichment is the process of redesigning work in order to build in motivators by increasing
both the variety of tasks that an employee performs and the control over those tasks. It is
associated with the design of jobs and is an extension of job enlargement

Note the term Job Enlargement means that a variety of tasks are performed to reduce boredom,
rather than overloading a person with too many tasks.

C. McGregor's Theory X and Theory Y

Theory X

People have an inherent dislike for work and will avoid it whenever possible.
People must be coerced, controlled, directed, or threatened with punishment in order to
get them to achieve the organizational objectives.
People prefer to be directed, do not want responsibility, and have little or no ambition.
People seek security above all else.
In an organization with Theory X assumptions, management's role is to coerce and
control employees.
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Theory Y

Work is as natural as play and rest.


People will exercise self-direction if they are committed to the objectives (they are NOT
lazy).
Commitment to objectives is a function of the rewards associated with their achievement.
People learn to accept and seek responsibility.
Creativity, ingenuity, and imagination are widely distributed among the population.
People are capable of using these abilities to solve an organizational problem.
People have potential.

Notice that Maslow, Herzberg, and McGregor's theories all tie together:

Herzberg's theory is a micro version of Maslow's theory in that it is focused on the work
environment.
McGregor's Theory X is based on workers caught in the lower levels (1 to 3) of Maslow's
theory due to bad management practices, while Theory Y is for workers who have gone
above level 3 with the help of management.
McGregor's Theory X is also based on workers caught in Herzberg's Hygiene
Dissatisfiers, while Theory Y is based on workers who are in the Motivators or Satisfiers
section.

D. Alderfer's Existence/Relatedness/Growth (ERG) Theory of Needs

postulates that there are three major groups of needs:

Existence

Concerned with providing the basic requirements for material existence, such as
physiological and safety needs.
This need is satisfied by money earned from a job so that one may buy food, shelter,
clothing, etc.

Relationships

Centers upon the desire to establish and maintain interpersonal relationships.


This need is normally satisfied to some degree by peers, coworkers, and leaders.

Growth

Partly met by learning opportunities, such as personal development, training, and new
experiences.
A person's job, career, or profession provides significant satisfaction of growth needs.
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Notice that Alderfer's ERG theory is built upon Maslow's theory, however it does differ. First, he
collapses it from five needs to three. And unlike Maslow, he does not see these needs as being a
hierarchy, but rather a continuum:

Alderfer's ERG theory states that More than one need may be influential at the same time. If
the gratification of a higher-level need is frustrated, the desire to satisfy a lower-level need will
increase.

E. McClellands Achievement Need Theory

Identified three basic needs that people develop and acquire from their life experiences.

These are:

1. Need for achievement:


A person who has a high need for achievement seeks success 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.
People who have a high achievement need like to take personal responsibility.
2. Needs for affiliation:
A person who has a high need for affiliation needs harmonious relationships with
people and needs to be accepted by other people.
(People-oriented rather than task-oriented)
3. .Needs for power:
A person who has a need for power wants to direct and command other people.
Most managers have a high need for power.

F. Incentive Theory

Incentive theory suggests that employee will increase her/his effort to obtain a 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.
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2. Process theory of motivation

A. Victor Vrooms Expectancy theory

Expectancy Theory explains the behavior process in which an individual selects a behavior
option over another, and why/how this decision is made in relation to their goal.

There's also an equation for this theory which goes as follows: M=E x I x V

Or Motivation = Expectancy x instrumentality x valence

M (Motivation)

is the amount an individual will be motivated by the condition or environment they


placed themselves in.

"E (Expectancy)

is the person's perception that effort will result in performance.


In other words, it's the person assessment of how well and what kind of effort will relate
in better performance.

I (Instrumentality)

is the person's perception that performance will be rewarded or punished.

V (Valence)

is the perceived amount of the reward or punishment that will result from the
performance."

c. Goal-setting theory:

is based on the notion that individuals sometimes have a derive to reach a clearly
defined end state .
Often this end state is a reward in itself drive to reach a clearly defined end state .
Often, this end state is a reward in itself.
A goal's efficiency is affected by three features; proximity, difficulty and specificity.

Good goal setting incorporates the SMART criteria, in which goals are: specific, measurable,
accurate, realistic, and timely.

An ideal goal should present a situation where the time between the initiation of behavior and
the end state is close. This explains why some children are more motivated to learn how-to ride a
bike than to master algebra. A goal should be moderate, not too hard or too easy to complete. In
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both cases, most people are not optimally motivated, as many want a challenge (which assumes
some kind of insecurity of success). At the same time people want to feel that there is a
substantial probability that they will succeed. Specificity concerns the description of the goal in
their class. The goal should be objectively defined and intelligible for the individual. A classic
example of a poorly specified goal is to get the highest possible grade. Most children have no
idea how much effort they need to reach that goal

Equity Theory

Equity theory focuses on determining whether the distribution of resources is fair to both
relational partners. It proposes that individuals who perceive themselves as either under-
rewarded or over-rewarded will experience distress, and that this distress leads to efforts
to restore equity within the relationship. It focuses on determining whether the
distribution of resources is fair to both relational partners. Equity is measured by
comparing the ratios of contributions and benefits of each person within the relationship.
Partners do not have to receive equal benefits (such as receiving the same amount of love,
care, and financial security) or make equal contributions (such as investing the same
amount of effort, time, and financial resources), as long as the ratio between these
benefits and contributions is similar. Much like other prevalent theories of motivation,
such as Maslows hierarchy of needs, equity theory acknowledges that subtle and
variable individual factors affect each persons assessment and perception of their
relationship with their relational partners (Guerrero et al., 2005). According to Adams
(1965), anger is induced by underpayment inequity and guilt is induced with
overpayment equity (Spector 2008). Payment whether hourly wage or salary, is the main
concern and therefore the cause of equity or inequity in most cases.

In any position, an employee wants to feel that their contributions and work performance
are being rewarded with their pay. If an employee feels underpaid then it will result in the
employee feeling hostile towards the organization and perhaps their co-workers, which
may result in the employee not performing well at work anymore. It is the subtle
variables that also play an important role in the feeling of equity. Just the idea of
recognition for the job performance and the mere act of thanking the employee will cause
a feeling of satisfaction and therefore help the employee feel worthwhile and have better
outcomes.
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Definition of equity
An individual will consider that he is treated fairly if he perceives the ratio of his inputs
to his outcomes to be equivalent to those around him. Thus, all else being equal, it
would be acceptable for a more senior colleague to receive higher compensation, since
the value of his experience (an input) is higher. The way people base their experience
with satisfaction for their job is to make comparisons with themselves to the people they
work with. If an employee notices that another person is getting more recognition and
rewards for their contributions, even when both have done the same amount and quality
of work, it would persuade the employee to be dissatisfied. This dissatisfaction would
result in the employee feeling underappreciated and perhaps worthless. This is in direct
contrast with the idea of equity theory, the idea is to have the rewards (outcomes) be
directly related with the quality and quantity of the employees contributions (inputs). If
both employees were perhaps rewarded the same, it would help the workforce realize that
the organization is fair, observant, and appreciative
This can be illustrated by the following equation

Inputs and outcomes


Inputs
Inputs are defined as each participants contributions to the relational exchange and are
viewed as entitling him/her to rewards or costs. The inputs that a participant contributes
to a relationship can be either assets entitling him/her to rewards or liabilities -
entitling him/her to costs. The entitlement to rewards or costs ascribed to each input vary
depending on the relational setting. In industrial settings, assets such as capital and
manual labor are seen as "relevant inputs" inputs that legitimately entitle the contributor
to rewards. In social settings, assets such as physical beauty and kindness are generally
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seen as assets entitling the possessor to social rewards. Individual traits such as
boorishness and cruelty are seen as liabilities entitling the possessor to costs (Walster,
Traupmann & Walster, 1978). Inputs typically include any of the following:

Time
education
experience
Effort
Loyalty
Hard Work
Commitment
Ability
Adaptability
Flexibility
Tolerance
Determination
Enthusiasm
Personal sacrifice
Trust in superiors
Support from co-workers and colleagues
Skill

Outcomes
Outcomes are defined as the positive and negative consequences that an individual
perceives a participant has incurred as a consequence of his/her relationship with another.
When the ratio of inputs to outcomes is close, then the employee should have much
satisfaction with their job. Outputs can be both tangible and intangible.[2] Typical
outcomes include any of the following:

Job security
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Salary
Employee benefit
Expenses
Recognition
Reputation
Responsibility
Sense of achievement
Praise
Thanks
Stimuli
Propositions
Equity theory consists of four propositions:

Individuals seek to maximize their outcomes (where outcomes are defined as rewards
minus costs).[3]
Groups can maximize collective rewards by developing accepted systems for equitably
apportioning rewards and costs among members. Systems of equity will evolve within
groups, and members will attempt to induce other members to accept and adhere to these
systems. The only way groups can induce members to equitably behave is by making it
more profitable to behave equitably than inequitably. Thus, groups will generally reward
members who treat others equitably and generally punish (increase the cost for) members
who treat others inequitably.
When individuals find themselves participating in inequitable relationships, they become
distressed. The more inequitable the relationship, the more distress individuals feel.
According to equity theory, both the person who gets "too much" and the person who
gets "too little" feel distressed. The person who gets too much may feel guilt or shame.
The person who gets too little may feel angry or humiliated.
Individuals who perceive that they are in an inequitable relationship attempt to eliminate
their distress by restoring equity. The greater the inequity, the more distress people feel
and the more they try to restore equity. (Walster, Traupmann and Walster, 1978)
22

Be the Best You: 7 Keys to a Positive Personality

Your mental diet largely determines your character and your personality and almost everything
that happens to you in life.

What is a mental diet? Keep reading and Ill explain

When you feed your mind with positive affirmations, information, books, conversations, audio
programs, and thoughts, you develop a more positive attitude and personality.

You become more influential and persuasive. You enjoy greater confidence and self-esteem.

Those who work with computers use the expression G.I.G.O. or Garbage in, Garbage out.
But the reverse is also true, Good in, Good out.

When you make a clear, unequivocal decision that you are going to take complete control over
your mind, eliminate the negative emotions and thoughts that may have held you back in the
past, and become a completely positive person, you can actually bring about your own personal
transformation.

Mental fitness is like physical fitness. You develop high levels of self-esteem and a positive
attitude with training and practice. Here are the seven keys to becoming a completely positive
person:

1) Positive Affirmations

Speak to yourself positively; control your inner dialog. Use positive affirmations phrased in the
positive, present, and personal tense:

I like myself!

I can do it!

I feel terrific!

I am responsible!

We believe that fully 95% of your emotions are determined by the way you talk to yourself as
you go throughout your day. The sad fact is that if you do not deliberately and consciously talk
to yourself in a positive and constructive way, you will, by default, think about things that will
make you unhappy or cause you worry and anxiety.

As we said before, your mind is like a garden. If you do not deliberately plant flowers and tend
carefully, weeds will grow without any encouragement at all.
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2) Positive Visualization

Perhaps the most powerful ability that you have is the ability to visualize and see your goals as
already accomplished. Create a clear, exciting picture of your goal and your ideal life, and replay
this picture in your mind over and over.

All improvement in your life begins with an improvement in your mental pictures. As you see
yourself on the inside, you will be on the outside.

3) Positive People

Your choice of the people with whom you live, work, and associate will have more of an impact
on your emotions and your success that any other factor. Decide today to associate with winners,
with positive people, with people who are happy and optimistic and who are going somewhere
with their lives.

Avoid negative people at all costs. Negative people are the primary source of most of lifes
unhappiness. Resolve that from today onward, you are not going to have stressful or negative
people in your life.

4) Positive Mental Food

Just as your body is healthy to the degree to which you eat healthy, nutritious foods, your mind is
healthy to the degree to which you feed it with mental protein rather than mental candy.
Read books, magazines, and articles that are educational, inspirational, or motivational.

Feed your mind with information and ideas that are uplifting and that make you feel happy and
more confident about yourself and your world.

Listen to positive, constructive CDs and audio programs in your car and on your MP3 player or
iPod. Feed your mind continually with positive messages that help you think and act better and
make you more capable and competent in your field. Watch positive and educational DVDs,
educational television programs, online courses, and other uplifting material that increases your
knowledge and makes you feel good about yourself and your life.

5) Positive Training and Development

Almost everyone in our society starts off with limited resources, sometimes with no money at all.
Virtually all fortunes begin with the sale of personal services of some kind. All the people who
are at the top today were once at the bottom, and sometimes they fell to the bottom several times.

The miracle of lifelong learning and personal improvement is what takes you from rags to riches,
from poverty to affluence, and from underachievement to success and financial independence.
24

As Jim Rohn said, Formal education will make you a living; self-education will make you a
fortune.

When you dedicate yourself to learning and growing and becoming better and more effective in
your thoughts and actions, you take complete control of your life and dramatically increase the
speed at which you move upward to greater heights.

6) Positive Health Habits

Take excellent care of your physical health and wellness. Resolve today that you are going to
live to be eighty, ninety, or one hundred years old and still be dancing in the evenings. Eat
healthy foods, natural and nutritious, and eat them sparingly and in proper balance. A nutritional
diet will have an immediate, positive effect on your thoughts and feelings

Resolve to get regular exercise, at least two hundred minutes of motion per week, walking,
running, swimming, bicycling, or working out on equipment in the gym. When you exercise on a
regular basis, you feel happier and healthier and experience lower levels of stress and fatigue
than a person who sits on the couch and watches television all evening.

Especially, get ample rest and relaxation. You need to recharge your batteries on a regular basis,
especially when you are going through periods of stress or difficulty.

Vince Lombardi once said, Fatigue makes cowards of us all.

Some of the factors that predispose us to negative emotions of all kinds are poor health habits,
sleep deprivation, lack of exercise, and nonstop work. Seek balance in your life.

7) Positive Expectations

Practicing the Law of Attraction is one of the most powerful techniques you can use to become a
positive person and to ensure positive outcomes and better results in your life. Your expectations
become your own self-fulfilling prophesies.

Whatever you expect, with confidence, seems to come into your life. Since you can control your
expectations, you should always expect the best.

Expect to be successful.

Expect to be popular when you meet new people. Expect to achieve great goals and create a
wonderful life for yourself. When you constantly expect good things to happen, you will seldom
be disappointed.

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