Managing and Leading People: Motivation Theories & Impact Analysis

This report provides an overview of management and leadership, discussing the roles of leaders and managers and the differences between them. It delves into motivational theories, including Herzberg's two-factor theory and Vroom's expectancy theory, and explores strategies for motivating employees, such as setting goals, providing positive feedback, and creating incentive programs. The report highlights the impact of employee motivation on organizational success, discussing tangible benefits and the importance of a positive working environment. The document concludes with recommendations for effective implementation of motivational approaches to enhance employee engagement and productivity.

MANAGING AND
LEADING PEOPLE IN
ORGANIZATION

Contents
INTRODUCTION................................................................................................................................3
CONTEXT...........................................................................................................................................3
Description of Management and leadership................................................................................3
Describe the role of leader and manager.....................................................................................4
Difference between the management and leadership..................................................................4
DISCUSSION.......................................................................................................................................6
Describe Motivational Theories..................................................................................................6
Strategies to motivate employees................................................................................................9
Impact on organisational for motivating employees.................................................................10
Examples...................................................................................................................................11
CONCLUSION..................................................................................................................................12
RECOMMENDATIONS....................................................................................................................12
REFERENCES...................................................................................................................................14

INTRODUCTION
Every organisation needs an effective management in their firms to achieve their long term
as well as short term goals. There are various levels of management with the aim of organising and
coordinating the efforts of employees. Management is basically the process of planning, organising,
staffing, directing, and controlling the functions of the company to accomplish the targeted goals
within the time limit (Kim, and Beehr, 2020). Whereas the leadership refers to the capability of an
individual to guide, direct and lead the group of people and influence them positively. A person who
have skills like confidence, communication, management can only be the leader. The terms
leadership and management is often used interchangeably but they are not the same concept.
Leadership is the creation of vision and inspiring and influencing others to put efforts towards that
vision. And the management is the required steps to complete the assigned work.
FOCUS
The following report is going covers the brief description of the management and leadership
and roles or duties of a leader and manager. This report also covers the difference between roles of a
leaders and manager. In addition to this, this report also describes the concept of motivational
theories and strategies in order to motivate the employees. Afterword’s, this report paid focus on the
different types of challenges faced by the leaders or manager in implementing the motivational
approaches and its impact on the company employees.
CONTEXT
Description of Management and leadership
Management is the direction to the company, whether it is a business, non-profit
organisations, household, or a government body. Management is pervasive, it is the art as well as
science of managing the resource of the business. Management is needed in every function of the
business. it is basically the process of planning, organisation, directing and controlling the business
activities (Gupta and Saxen, 2022). The presence of Management can change the way how an
organisation operates. There are basically three types of objectives of management. Firstly, the
organisational objectives, the main objective of any organisation is to survive in the market, earn
high rates of profits, and increase in rate of growth. Secondly, the social objectives, in this the main
of the organisation is to be beneficial for the society by using nature friendly methods of operating
etc. and lastly the personnel objectives, in this the management decides about the salary, incentives
etc. so the main objective of the employees is peer recognition and positive interactions which will
help them in their personal growth.

Whereas the leadership is the art of influencing, inspiring and helping other people to work
towards a common goal. Leadership is all about taking major decisions for the firm, setting up the
targets, providing knowledge as well as resources to the employees. A leader should be presentable,
charismatic and they should have good communication, decision making, problem solving skills in
themselves (Leroy and et. Al, 2018). For instance – ServiceNow, McKinsey & Company etc. are
some of the companies in UK who have best management and leadership.
Describe the role of leader and manager
Role of a leader: -
o The main role of a leader is to motivate the individuals or their subordinates within
the workplace so that they can carry out the task in productive manner
o A leader also acts as a mentor for their subordinates and guide them the right
directions to attain the success.
o Leaders of the organization is also act as a good communicator for employees. They
are responsible for communicating all the roles and responsibilities which may have
to be performed by the company employees in clear manner (Cortellazzo,Bruni and
Zampieri,2019).
 Role of a manager
o A manager is a person who plans, coordinate and direct all the activities to the
employees so that business goals can be achieved successfully. They are responsible
for making decision which are beneficial for the organization and employees. They
also solve the critical problem and obstacles in the organization so that activities can
run smoothly which leads in generating profits.
o The manager of a company is responsible for developing the effective plan for
attaining set objectives of the company and also responsible for setting the deadline
as well as standards.
o The company manager also allocate the resources to their employees and delegate
the responsibilities as per the skills possess by them.
Difference between the management and leadership
Leadership is basically the ability of an individual to guide and influence the behaviour of a
person towards the success of company, on the other hand the management is the process of
planning, organizing and controlling the behaviour of an individual to attain the pre determine goals
of company. The difference between leadership and management has been discussed below: -

Leadership Management
 Leadership is basically a narrow concept,
and this is being considered as a part of
management (Fuertes and et. Al, 2020).
 Leadership required lots of charisma as
well as imagination in order to lead or
direct the people.
 Leadership is people oriented in nature
and leaders follow the participative,
consultative and transformational
leadership style.
 Leadership is proactive in nature and the
company leader requires trust of their
employees.
 Within the leadership principles as well
as guidelines are basically formed.
 Management is being considered as
wider concept as this comprises of
planning, organising, controlling, and
managing the different business
functions.
 On the other hand, the manager of the
company paid focus on the system,
structure and resources.
 Management is task oriented in nature
and it could be authoritative,
transactional, autocratic, consultative
(Meyer and Guthmiller,2020).
 The main aim of the manager is to plan
direct and control the different
management functions.
 Managers of the company is responsible
for improving stability of business
organisation in the market.
 Management is reactive in nature and the
firm manager wants control over their
subordinates.
 Within the management, principle and
guidelines are implemented.

DISCUSSION
Describe Motivational Theories.
Motivational theory is basically the study of understanding the different drivers which
motivate the employees or individuals to work towards the success of company or towards a
particular goal or result (Venkataraman,2021). This is basically the process of stimulating or
influence the people behaviour to attain the success. Motivation is basically an internal drive which
influence the behaviour of individual and provide them direction. In order to get the work done in
proper manner, it is very important for the company management to understand the nature of their
employees and develop the strategies according to them. Theories of motivation are of two types
which are content theories of motivation and process of motivation.
 Content theories: - These theories of motivation are also known as the need theories of
motivation which mostly focus on the internal factor and guide the behaviour of individual.
Needs are basically the deficiencies and the satisfaction of these needs result in energising or
triggering the behaviour of individual. Some of the major content theories of motivation are:
 Maslow’s need Hierarchy theory
 Herzberg two factor theory model
Herzberg two factor theory model: -
Herzberg's two factor theory states the factors which affects the satisfaction as well as
motivational level of an individual. The main concept behind this theory is that the factors which
contributes towards the job satisfaction is known as the motivators and the factors which
contributed towards the dissatisfaction of job known as hygiene factor (Hansen,Hansen and
Madsen,2022). The two factor of this theory has been discussed below: -

 Motivation factor: -these are these are those factors which exists within the job. These
factors are related to the job role and occurred at the time of carry out the task. These
factors provide strong motivation to the individuals and develop positive feeling within
them which result in job satisfaction. Some of the motivational factors are: -
o Achievement
o Recognition
o Advancement
o Work
o Possibilities of growth
o Responsibility
 Hygiene factors: - these are basically those factors which are related to the conditions
within which the task or job is performed. Hence, these are environmental centred
factors and they occurred after the completion of work (Sudarmo,2020. These factors do
not motivate the employees but the presence of these factors result in preventing form
the job dissatisfaction. Some of the hygiene factors are: -
o Inter-personal relations with Subordinates, peers and superior.
o Salary
o Job Security
o Personal life
o Working Conditions
o Status

o Company Policy and Administration
 Process theories: - Process theories of motivation may be defined as those theories of
motivation that provide an assistance in understanding thought process of individual which
result in influencing their behaviour (Ahmad and et. Al, 2019). This theory of motivation
evaluates that how workers meet their needs and determined their choices through
behavioural actions. Some of the major process theories of motivation are: -
o Equity theory
o Expectancy theory
Expectancy theory: -
The Vroom expectancy theory of motivation state that motivation is depend on the strengths
of an individual and their strengths are closely associated with the preferences of specific put
outcome. This theory develops a relationship among the efforts, rewards and performance. As per
this theory, motivation is basically the sum of the product of valence, instrumentality and
expectancy. Motivation = Σ (Valence X Instrumentality X Expectancy). The three elements of
this theory are discussed below: -
 Valence: - this element is related to the efforts of an individual which lead to high
performance. The level of motivation is higher if an individual expects greater outcome.
 Instrumentality: - this is related to the faith of an individual in finding the desirable
outcome. This element is mostly affected by relationship between the performance and
outcome (Blomberg,2020.
 Expectancy: - this is related to the performance of an individual which lead to the outcome.
This element is influenced by the several factors like possession of right skill in order to
perform the job role, presence of appropriate resources, availability of important information
to complete the work.

Strategies to motivate employees.
Employee motivation is one of the major components for accomplishing the company
success. Ensuring that the employees are happy, motivated and having good working environment
around them is must. A high level of motivation in the employees results into the higher
productivity as well as profitability. There are many motivational strategies to motivate employees
and some of them are:
 Setting goals – setting up the smart goals for the employees is one of the best techniques.
Through these goals, the needed criteria are outlined for attaining the success. Creating
goals helps in clarifying the role of individuals (Angiola, Bianchi and Damato,2019).
 Positive feedbacks - while formal reviewing, the positive feedback is must to boost up the
employee’s morale, which motivates them to work hard and consistently. Praising every
employee individually makes them realise that they are very valuable for the company.
 Employee incentive program – creating incentive programs which directly rewards the
members of the team for their achievements. These incentive helps employees to do their
best, there are other incentives as well like bonuses, trophies and more (Pauliene,Diskiene
and Matuzeviciute,2019).
 Develop positive working environment: - this is being considered as the most crucial
strategy which helps in motivating the employees within the workplace. Positive working
environment not only energies the behaviour of employees but also develop a sense of
collaboration within them which result in the success of company.
 By giving them tangible benefits: - tangible benefits motivates more to employees in
comparison to the intangible benefits. For example, like Ideas2IT which IT firm in Chennai
India, gifted 100 Maruti Suzuki cars to 100 employees who contribute to the growth and
success of the firm for many years (Business line 2022). This gesture of the firm to give
thanks to their employees result in motivating them.
 Medical insurance: - this also motivate the employees within the workplace. If medical
insurance is provided by the firm to their employees, then this result in motivating them. For
example, like the management of the TESCO plc provide medical insurance to their
employees along with their family members.
List of factors/challenges in the way of the motivational approach
there are many motivational challenges such as: -
 Plenteous choices – there are too many alternatives, which can overwhelm employees to
inaction.

 The fear of failure – sometimes employees are afraid of doing something incorrectly which
cause a barrier for them in moving forward.
 The fear of success – the view of success can be compromised through the low self-esteem.
Employees might doubt that the success is possible and lack the motivation to achieve it.
 Exhaustion – a good sleep is very important for the functioning of the mind and the body.
When the employees are exhausted, it becomes tough to remain motivated.
 Patience – employees sometimes expect so much and want the instant outcomes, which is
not possible sometimes, which can result into demotivating the employees from continuing.
 Comparison: - This challenge also came in the way of motivating the employees within the
workplace. The fear of comparison with the colleagues, friends, neighbour and many more
result in promoting the unproductive thinking which demotivate the employees. In order to
overcome form this individual can focus on develop unique things within them which make
them different form others.
 Distractions: -this also being considered as the biggest challenge which came in the way of
motivating the employees. When the attention of an individual is pulled in various directions
then this result in losing their focus on the work which are doing by them.
 Lack of clarity: - when the higher authority of the company not clearly communicate with
the employees then this result in the demotivating them. If they don’t know what next step
has to be taken by them this decreases their moral (Berumen-Flucker and et. Al, 2019)
(Mansaray,2019). So, this factor also acts as a challenge in demotivating the employees.
Impact on organisational for motivating employees
Employee motivation plays a very important role within the organization, this not only drives
the quality of work but also but also boost up the performance of organization within the market. If
the management of the company motivate their employees on regular basis, then this result in
performing all the functions in proper manner without any interruption. The impact of motivating
the employees on the organisational performance has been discussed below: -
 Higher productivity level: - if the motivational techniques are properly and effectively
implemented Sby the company management then this result in encouraging the workforce
productivity which shows on the company revenue and profits. If the employees are
positively influenced by their manager, then this also improves the job satisfaction level and
retention rate.
 More innovation: Motivate the employees within the workplace through rewards and other
benefits result in developing the culture of innovation. If the employees are appreciating by
the higher authorities, then this improves their way of carry out the given task which

stimulates the company (Bryson and George,2020).
 Improves company image: -Firm who understand the importance of motivation within the
workplace deliver high level of experience to their employees which result in developing the
strong brand image in the market. The development of the brand image in the market is
basically the result of data driven strategies which are based on the feedbacks of employees.
Motivated employees assist in developed god brand image in the market and attract the top
talent the firm.
Examples
Following are some of the examples of organization and the motivational strategies used by
them: -S
 In order to motivate the employees within the workplace the management of the TESCO
company provides regular monthly pay to their employees and different types of other
Sfacilities. By doing this they satisfy their psychological needs. On the other hands the
respective firm also provides pension as well as sickness scheme to their employees along
with the option to join the union, this satisfies their security needs.
 To motivate the employees, the management of the Nike matches the employee’s donation
and offer volunteer pay. Along with this they also give time to their retail store employees
to serve to their community.
 The management of the TATA company uses the Job rotation policy within the workplace
which not only helps in developing new skills within them but also expose the employees to
new responsibilities on regular basis.
Further, it has been seen and analysed that the companies such as Sainsbury tend to have a
motivation strategy of regularly providing the performance based perks and incentives to their
employees which plays a vital role in motivating employees (Amin and et. al., 2021). It has been
seen that the strategy of the providing of the performance based incentives tend to meet the
financial and monetary needs of the employees that supports and leads to creation of higher
motivation to achieve better performance (Sugiarti, 2021). Along with this, it has been also seen that
the companies like Aston martin also tend to have a strategy of having participative leadership that
supports and leads out to higher involvement an equality at workplace that foster and boost the
motivation level of employees (Hassi, Balambo and Aboramadan, 2021). Beside this, companies

also tend to have the strategy of the providing training to the employees which enhance their
confidence level and also improved their skill and competency that supports higher motivation
through leading enhanced development of employees (Budzanowska-Drzewiecka and Tutko, 2021).
CONCLUSION
From this above discussion it has been concluded that Management is the process of
planning, organising, staffing, directing and controlling the functions of the company to accomplish
the targeted goals within the time limit. And the motivation is one of the major component to keep
the employees encouraged and motivated towards work. These three are the pillars of company. All
three components are linked which each other, absence of one can cause trouble in the working of
the company. The strategic management is defined as the bunch of various decisions and activities
which are undertaken by the manager. The report discussed 7 management theories which were
Scientific management theory, administrative management theory, Bureaucratic management
theory, Human relations theory, Systems management theory, Contingency management theory,
Theory X and Y. also, 6 leadership theories which were Behavioural theory, Contingency theory,
Great Man theory, Management theory, participative theory, Power theory. Then report discussed 2
types of approaches: Classical approach which shows that the workers only requires the physical
and economical needs. And the neo classical approach is an expanded version of the classical
approach. Further the repost included 6 strategic management theory which are: Contingency
Theory, human resource Based Theory, Survival Theory, Agency Theory, resource based theory and
Profit Maximization & Competition Based Theory.
RECOMMENDATIONS
 It has been recommended to the firm that setting clear goal strategy approach can be used by
the company management in order to motivate the employees with the work place. This not
only give meaning to their day to day role but also engage them more towards the firm. If
the goals are clearly communicating to the company employees, then this assist them in
attaining easily. This result in improving the organisational performance in the international
market.
 Meaning feedback strategy can also be used by the company management in motivating the
employees. For example, like “Great presentation, well done” can be considered as a nice
feedback which motivate the employees to work hard. Appraising the employees on regular
basis make them more loyal towards the firm and also they start thinking for the company
success. So this strategy can also speed up the organisational market.

REFERENCES
Books and journals
Ahmad, and et. Al, 2019. Strengthening strategic management approaches to address antimicrobial
resistance in global human health: a scoping review. BMJ global health, 4(5), p.e001730.
Amin, M. and et. al., 2021. Employee motivation to co-create value (EMCCV): Construction and
validation of scale. Journal of Retailing and Consumer Services, 58, p.102334.
Angiola, Bianchi, and Damato, 2019. How to improve performance of public universities? A
strategic management approach. Public Administration Quarterly, 43(3), pp.372-400.
Berumen-Flucker, and et. Al, 2019. Evaluation of safety management and leadership training using
mobile technologies among logging supervisors. Journal of agromedicine, 24(2), pp.197-204.
Blomberg, 2020. Organization Theory: Management and Leadership Analysis. Sage.
Bryson, and George, 2020. Strategic management in public administration. In Oxford Research
Encyclopedia of Politics.
Budzanowska-Drzewiecka, M. and Tutko, M., 2021. The impact of individual motivation on
employee voluntary pro-environmental behaviours: the motivation towards the environment
of Polish employees. Management of Environmental Quality: An International Journal.
Cortellazzo, Bruni, and Zampieri, 2019. The role of leadership in a digitalized world: A
review. Frontiers in psychology, 10, p.1938.
Fuertes, and et. Al, 2020. Conceptual framework for the strategic management: a literature review—
descriptive. Journal of Engineering, 2020.
Gupta, and Saxena, 2022. The Role of Psychology in Human Resource Management: A Study of the
Changing Needs in Managing Workforce in Organizations. IUP Journal of Soft Skills, 16(1).
Hansen, Hansen, and Madsen, 2022. Improving how we lead and manage in business marketing
during and after a market crisis: the importance of perceived status, certainty, autonomy,
relatedness and fairness. Journal of Business & Industrial Marketing, (ahead-of-print).
Hassi, A., Balambo, M.A. and Aboramadan, M., 2021. Impacts of spirituality, intrinsic religiosity
and Islamic work ethics on employee performance in Morocco: The mediating role of
intrinsic motivation. Journal of Islamic Accounting and Business Research, 12(3), pp.439-
456.
Ingsih, K., Wuryani, W. and Suhana, S., 2021. The Role Of Work Environment, Work Motivation,
And Leadership To Improve Employee Performance With Job Satisfaction As An Intervening
Variables. Academy of strategic management journal, 20(3), pp.1-11.
Kim and Beehr, 2020. Empowering leadership: leading people to be present through affective
organizational commitment?. The International Journal of Human Resource
Management, 31(16), pp.2017-2044.
Leroy, and et. Al, 2018. Managing people in organizations: Integrating the study of HRM and
leadership. Human Resource Management Review, 28(3), pp.249-257.
Mansaray, 2019. The role of leadership style in organisational change management: a literature
review. Journal of Human Resource Management, 7(1), pp.18-31.
Meyer, and Guthmiller, 2020. Managing Managers. In Management and Leadership Skills for
Medical Faculty and Healthcare Executives (pp. 111-120). Springer, Cham.
Pauliene, Diskiene, and Matuzeviciute, 2019. Complex approach on multicultural teams
management & leadership. Journal of Educational and Social Research, 9(2), p.8.
Sudarmo, 2020. Human resources management and leadership for public services in the 21st
century. International Journal of Business, Economics and Management, 3(1), pp.219-225.
Sugiarti, E., 2021. The Influence of Training, Work Environment and Career Development on Work
Motivation That Has an Impact on Employee Performance at PT. Suryamas Elsindo
Primatama In West Jakarta. International Journal of Artificial Intelligence Research, 6(1).
Venkataraman, 2021. SAFETY IS ABOUT MANAGING PEOPLE. Professional Safety, 66(10),
pp.41-43.
Online:

Business line 2022. [Online] Available through: <
https://www.thehindubusinessline.com/info-tech/it-firm-ideas2it-gifts-100-maruti-suzuki-
cars-to-employees/article65311562.ece>