Leadership and Motivation: Theories and Business Applications

This report delves into the fundamentals of leadership, examining the core concepts and practices essential for effective management within a business environment. It explores the role of leadership in motivating and inspiring employees to achieve organizational goals, enhance productivity, and gain a competitive edge. The report evaluates several prominent motivational and leadership theories, including Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, and Vroom's Expectancy Theory. It provides detailed explanations of each theory, along with practical examples of how companies like Google, Tesco, and ALDI implement these theories to foster employee engagement, satisfaction, and performance. The analysis covers the application of these theories in real-world scenarios, highlighting how they contribute to creating a positive and productive work environment. The report also discusses the importance of leadership in providing open communication, assigning tasks fairly, offering training, and recognizing employee achievements. This report is designed to help students understand and apply leadership and motivation principles in various business contexts. It is available on Desklib, a platform offering a wide range of AI-based study tools, including past papers and solved assignments to aid in academic success.

Fundamentals of Leadership

Table of Contents
INTRODUCTION...........................................................................................................................3
The Concept of Leadership .........................................................................................................3
Evaluating Various Motivational and Leadership theories along with their examples...............4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Leadership within a business environment is the capacity of an organisation'
administration to create and accomplish challenging and difficult end objectives goals, take
positive, quick and efficient actions when required, gain some competitive edge against their
competitors in the market and motivate and inspire other to perform at optimum levels in order to
increase the organisation's overall performance, productivity, efficiency and profitability in the
target market (Antonakis & Day (Eds.). (2017)). In this report we assess the leadership and
management of a business organisation can try to inspire and motivate its existing workforce in
order to improve their motivational and job satisfaction levels.
The Concept of Leadership
Leadership is the procedure of motivating and inspiring group of people or employee to
work towards achieving common goals. Leadership is important for people because it is not only
inspired employees to work hard but also supports to overcome their weaknesses. Leader sets
vision for staff and inspires them to reach their goals by giving high efforts on their performance.
Leader provides two way communication facilities to staff where they can direct communicate to
their leader about their task issues and work pressure. Open communication leads effective
communication between employees and leader and builds good relationship among them about
their performance. To inspire employees creates friendly working environment by leader that
maintain employees well-being for their job place (Western, (2019)). Leader assigns task to
individual without any discrimination that motivates employees to give loyal performance at
workplace. Apart from this team working also encourages by leader which helps company to
achieve complex task in minimum time. Leader inspires employees to motivate their team work
to work harder towards to reach common goal. Leader offer training classes to new joiners so
that they learn how to perform at workplace and how to communicate with current employee's.
Leader conducts training session per four months so that improves working performance of
employees.
To improve employee's engagement within workplace offers challenging task along with
time deadline which improves employees working efficiency and supports employee to work
hard. Leader supports manager as well to give feedback about employees performance on regular
basis. Thus, manager determine the best talent which can help company to meet their objectives

over the period. Leader gives appreciation to the employee who gives more efforts in their
performance to redeem their job position that automatically inspires employees to give loyal
performance at workplace. A good leader always supports employee to upgrade their skills and
overcome their weakness by offering training classes so that their performance become fruitful
for company. Leader adapts various type of leadership like democratic leadership style which
helps to understand employees objectives which they expect from company. This leadership also
helps leader to make employees satisfy from their job by meeting their basic needs. Situational
leadership style follows by leader to inspire employee as per the situation. This leadership style
posses four type style such as coaching, participating, monitoring and delegating. Participating
leadership style encourages employees to participate in activities which are conducted at job
place i.e. challenging task assigning, personal development classes etc. the main goal of the
leadership style to make employee multitasker so that they can handle multiple task as per the
situation. Coaching leadership style supports leader to become trainer so that they can offer
training class when they required (Bolman & Deal, (2017)). Thus, overall roles are performed by
leader to motivate employees to give high performance and inspires to meet organization
objectives.
Evaluating Various Motivational and Leadership theories along with their examples
Businesses can choose from amongst a plethora of motivational and leadership theories in
order to inspire and motivate their employees and workforce which also provides the business
with increased performance, productivity and efficiency. Maintaining a well motivated
workforce also provides businesses the benefit of possessing employees who are satisfied with
their jobs and helps the business retain a larger number of employees. Business leaderships and
management can inspire and motivate their employees by focusing on the following theories:
Maslow's Hierarchy of Needs: This theory is the earliest to be developed and is the most widely
known model amongst all content motivational theories that a leader can apply in order to inspire
and motivate their subordinates . This needs theory specifies the existence of five levels of basic
and complex needs for each individual employee within an organisation and that an individual
remains motivated to satisfy these needs in their descending order in Maslow's hierarchy. These
needs in order are as follows:

Physiological Needs: These employee requirements constitute their biological needs for basic
human survival and include an employee's availability to quality shelter, clothing,
companionship, sleep, food and drink. Satisfaction of these physiological needs is paramount to
the workforce performing at optimum levels.
Safety Needs: These are an employee's requirements related to their health and safety needs. If
the operating workplace is unsafe for the employees, it can have a massive impact on their
motivation and performance.
Social Needs: Social needs comprise of an employees need for meaningful interpersonal
professional relationship with their peers in the workplace (Fallatah & Syed, (2018)). These
relationships are hugely beneficial in maintaining employee's motivation and job satisfaction
levels.
Esteem Needs: Employee's also have needs related to their self esteem and their desire for
recognition and reputation in the workplace. Taking care of workforce esteem needs will result
in increase in the employee's motivation levels which effectively increases their performance and
efficiency.
Self-Actualisation Needs: These are the employee needs related to realising and fulfilling their
own personal potential with regards to their professional careers. Maslow maintains that all
employees want to possess internal motivation to improve in order to become the best that they
can be.
Example of Maslow's Hierarchical needs can be observed in the operations of Google
industries which go to great lengths to keep their employees and workforce motivated and
inspired. As the technology business requires immense focus and skills from their employees,
Google's administration found early that this puts pressure and stress on its employees to keep
performing productively which effectively decreases their performance and efficiency. To
counter this Google has implemented an amalgamation of motivational models to their
operations and identifies the needs of their employees according to Maslow's hierarchical needs
model (Soni & Soni, (2016, July)). Google's administration recognises the importance of
different employee needs and requirements and has implemented policies which effectively
address all of Maslow's hierarchical needs. Administration has ensured that all Google premises
offer safe and healthy professional working environment, it has also ensured that all Google
employees can be social and form professional relationships in the workplace. Google's

administration also recognises the importance of employee's esteem needs and regularly
recognises and rewards high performing employees in order to keep their employees inspired and
motivated to perform.
Herzberg's Two Factor Theory: This motivational content theory is also known as the
motivation hygiene theory and states that in every business environment there are present some
motivating factors that influence job satisfaction and motivation metrics of its workforce and
also some distinct separated hygiene factors which create dissatisfaction amongst the employees.
As per this theory there exist job satisfying factors implicated while doing the job and job
dissatisfying factors which arise out of their job context. Herzberg's motivational factors cause
employees of an organisation to work harder, putting in extra effort in order to increase their
performance (Alshmemri, Shahwan-Akl & Maude, (2017)). These factors are present in the job
itself. While an absence of Herzberg's hygiene factors in the operations of a business causes its
workforce to put in less effort into their jobs. These hygiene factors aren't evident in the job but
surround the professional environment. Poor hygiene factors within an organisation reduce
workforce job satisfaction levels and are as follows:
Organisational Policies: A business's administration needs to implement organisational rules
and policies which are deemed clear and fair to all of their employees and administration also
needs to ensure no biases occur in these policies.
Supervision: The administration also needs to ensure that employee supervision and appraisals
are conducted in a clear and fair manner, while providing the employee enough autonomy to
perform the given tasks efficiently.
Working Environment: The administration needs to ensure that they provide their employees
with a safe and healthy professional working environment, which adheres to all legally mandated
laws and regulations.
Motivating factors within a business environment increase employee's job satisfaction and
motivation metrics and are as follows:
Achievement: A business's leadership or management needs to ensure that employee's derive a
sense of achievement from their daily tasks.
Recognition: The management needs to recognise the effort put in by the employees and needs to
reward high performers in order to maintain a healthy working environment (Hur, (2018)).

Growth: The management also needs to ensure there are ample opportunities present for
development and growth of their employee's professional careers.
For example, Tesco has applied the Herzberg's two theory approach to their operations in
order to inspire and motivate their employees. Tesco's administration has taken great efforts to
provide their workforce with both hygiene and motivating factors in an attempt to inspire and
motivate them and to increase their performance and efficiency. The management provides its
employees with great professional development and growth opportunities while recognising their
efforts and performance in the workplace. Tesco's administration also ensures fair organisational
policies so as not to let any of its employees feel aggrieved and takes immense care in providing
them with a safe and secure working environment in an attempt to inspire and motivate them.
Vroom's Expectancy Theory: This is a process motivational theory that places major emphasis
on the idea that behaviour of employee's arises out of conscious choice they make with the
intention to minimise pain or to maximise pleasure derived. This motivational theory believes
that the relationship between an employee's objectives and their behaviour is complex process
and that an employee's professional performance depends greatly on factors such as abilities,
experience, knowledge, personalities and skills. Vroom's expectancy theory maintains that there
exists a direct and positive relationship between an employee's performance and efforts put in
(Chopra, (2019)). Employees putting in extra effort shall perform better and deserve to be
rewarded for their additional effort put in. This reward which is provided to employees
performing optimally satisfy a significant need and that the employee's desire to keep satisfying
this craving or need becomes
strong enough to make the additional efforts put in worthwhile to the employee. As per this
theory an employee's motivation to perform any task or duty primarily depends on three main
factors:
Expectancy: This refers to employee's possessing different expectations and levels of confidence
in their ability to capably perform a difficult task. A business's administration needs to identify
the resources, training or development their workforce requires.
Instrumentality: This refers to an employee's perception that he may not get the reward promised
to him by his superiors for performing optimally. The management needs to ensure all promises
of incentives and rewards are duly provided to the deserving employees.
Valence: This refers to the extent to which employees value the provided rewards.

An example of Vroom's expectancy theory is its implementation at ALDI's operations.
ALDI's leadership has implemented this model in order to inspire and motivate their workforce
by recognising that an employee's efforts put into his professional job has a direct influence on
their professional performance. In order to inspire and motivate their employees, ALDI's
leadership has created rewards and incentives that reward employees who perform up to the
optimal levels. ALDI's administration has taken great efforts to ensure all employees who
deserve this reward based upon their professional performance receive it and that no
organisational biases creep their way into this process (Lloyd & Mertens, (2018)). ALDI's
management also has taken great care to provide the employee's with rewards that they deem
valuable and worthwhile in order to promote a healthy working environment at their operations
which also results in higher performance, productivity and profitability for ALDI.
Locke's Goal Setting Theory: This is another process motivational theory that emphasises on the
idea that a business's administration setting specific and difficult end goals and objectives for
their employees and committing to the achievement of these goals and objectives record better
workforce motivation, performance and efficiency. This theory believes that goals set by
management describe a desired future and that achievement of these objectives derives
employee's behaviour. Achieving these challenging objectives and tasks further motivates and
inspires the workforce to perform to optimal levels. This theory maintains that a achievement of
a realistically challenging or difficult objective can better improve the motivational levels of the
employees than easy or unrealistically challenging goals and objectives. This theory requires the
business leadership to set difficult goals that are specific, realistic and measurable so that the
leadership can assess the progression of employee's in achieving the set desired objectives. The
management and employees should commit all their efforts and resources with the intention to
attain these objectives and leadership should ensure maximum commitment of their employees in
achieving the set tasks in a fast and efficient manner (Latham & Locke, (2018)). Business's
management should also take efforts to provide all necessary support materials and elements that
their employees might require during their operations in order to better arm them in achieving
the challenging objective. Finally the leadership needs to be able to record and measure the
progress and conduct essential surveys and feedbacks on how their approach can be improved.
Following these procedures, a business's leadership can inspire and motivate their employees
while increasing their productivity and profitability in the market.

For example, LIDL has implemented the Locke's Goal Setting theory in their operations
with the intention to inspire and motivate their workforce. LIDL's leadership has evaluated that
achievement of difficult goals does have a direct impact on their workforce motivational levels
and now tries to set specifically difficult but realistic goals and objectives for their employees to
achieve. LIDL's management makes sure that all their employees remain committed to achieving
the challenging goals and objectives and measures their individual progress in various intervals.
LIDL's leadership ensures that it provides the necessary support materials and elements to its
workforce to aid them in their achievement of objectives and goals (Latham, Mawritz & Locke,
(2018)). Finally LIDL's leadership measures and records their overall progress and conducts
thorough feedbacks and surveys amongst its employees in order to ensure their workforce
remains inspired and motivated.
CONCLUSION
In conclusion, the leadership of a business organisation provides its workforce with a
specific vision and direction in relation to the end goals and objectives that the business
organisation has to achieve and the exact method by which they are going to be able to achieve
such a task. Inspiring and motivating the workforce is immensely essential in maintaining a
healthy and productive workforce which keeps performing at optimum levels and results in the
organisation's increased productivity, performance, efficiency and profitability in the markets.
Possessing an inspired and motivated workforce also allows the business to retain large portions
of their employees over a long period of time.

REFERENCES
Books and Journals
Antonakis, J., & Day, D. V. (Eds.). (2017). The nature of leadership. Sage publications.
Western, S. (2019). Leadership: A critical text. SAGE Publications Limited.
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.
Fallatah, R. H. M., & Syed, J. (2018). A Critical Review of Maslow’s Hierarchy of Needs.
In Employee Motivation in Saudi Arabia (pp. 19-59). Palgrave Macmillan, Cham.
Soni, B., & Soni, R. (2016, July). Enhancing Maslow's Hierarchy of Needs for effective
leadership. In Competition Forum (Vol. 14, No. 2, p. 259). American Society for
Competitiveness.
Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg’s two-factor theory. Life
Science Journal. 14(5). 12-16.
Hur, Y. (2018). Testing Herzberg’s two-factor theory of motivation in the public sector: is it
applicable to public managers?. Public Organization Review. 18(3). 329-343.
Chopra, K. (2019). Vroom’s expectancy theory to motivate academic library users in India using
grounded theory approach. Global Knowledge, Memory and Communication.
Lloyd, R. A., & Mertens, D. (2018). Expecting more out of Expectancy Theory: History urges
inclusion of the social context. International Management Review. 14(1). 28-43.
Latham, G. P., & Locke, E. A. (2018). Goal setting theory: Controversies and resolutions.
Latham, G. P., Mawritz, M. B., & Locke, E. A. (2018). 8 Goal Setting and Control Theory. The
Oxford Handbook of Job Loss and Job Search. 129.