Motivation and Leadership styles

Motivation and Leadership styles

1. Motives = factors encouraging entrepreneurs to go into business and make particular decisions

   • Non-profit motives = motives not linked to profit
     • Profit = revenue - costs compensates for taking risks
     • Examples
       • self-fulfillment
       • family business
       • control
         • over hours
         • over activities
         • over location
       • creativity
       • hobby
   • Ethical motive = doing what is right
     • benefits environment or society

2. Motivation = meeting needs of employees to encourage hard work and commitment so they work more efficiently

3. Leadership

   • Autocratic = no consultation when making decisions + little reasoning given as to why
     • Good: quick + effective with low skilled employees
     • Bad: de-motivating + segregating
   • Democratic = guide, not dictate + wide encouragement of decision making participation
     • Good: delegation is motivating + better when specialist skills are required
     • Bad: errors made if not skilled enough
   • Paternalistic = consult at every level with reasoning but make own final decisions
     • Good: motivating + social needs met
     • Bad: slower

4. Theory X and Y

   • Assumptions by management professor, Douglas McGregor who worked at top US uni's in 1950's
   • Theory X = have little ambition, dislike work. Require incentives and punishment
   • Theory Y = enthusiastic , enjoy responsibility, delegation, challenges and goals. Are self-motivated