Motivation meaning is concerned with dealing with people to reach the best results.

Mc Gregor associate the management skills with the motivation the leaders implement in the
individual contributors.

Also, he classified people according to 2 types labelled as Th X and Th Y.

Th X applies to the employees that needs attention as they dislike work and should be permanently
controlled for the objectives.

Th Y applies to the employees that are motivated by themselves and in most of the cases they are a
leadership position as they can be trusted to perform effectively.

1. Vroom and Lower suggest that people are motivated by an internal calculator, this means
they work out how difficult a task is and how much the reward for successful achievement of
the task is worth. (performance bonus related)
2. Hygiene factors: those are not motivating people, but on their absence, they do demotivate.
For example, if the money is not above a certain minimal level can demotivate people to
perform a task.
Motivators: those ones can motivate people if they are present, but do not demotivate if
they are absent (job enrichment, recognition, social aspects of working life)
3. The people compares what is expected from them and the reward and with what they
believe is expected from other and reward.

On this slide you can see 3 things the research made on this topic found as helpful for managers to
develop their leadership abilities: Firstly, Williamson demonstrated that people were motivated by a
desire to achieve 2 sets of goals – those of the organization and personal goals, suggesting that
leadership should be concerned with the alignment of those 3 sets of goals.

Secondly, Ronen and Livingstone found that involvement in the making of decisions and the setting
of targets let to higher motivation of those involved.

This was supported by the findings of Rockness who found that people would tend to set higher
targets for themselves that might otherwise be set and that difficult targets were more highly
motivating for people.

Legitimate power – this derives from a person’s status and position in the organization, which
carries with it delegated authority
Reward power – it means that a person can give or withhold rewards from another. In the
hierarchical organization this ability to grant rewards for all people in the hierarchy who are above
yourself.

Coercive power – this power exists if the subordinates believe that the leader has the ability to
impose penalties which are undesirable. As example we have loss of friendship and support, loss of
performance bonus etc

Referent power – exists if people believe that the leader has characteristics which are desirable and
which command respect

Expert power – when a leader has superior knowledge or expertise which is relevant to the task in
hand.

Information power – similar with expert power but arises not because of particular skills rather
because of access to particular knowledge base.

Contingent power – exists when demands of a particular situation, as emergencies when someone
assume a leadership role because of the needs of the situation.

…………………..

Strategic planning is not concerned with the present but rather with the future and it is therefore
especially concerned with changes to the current pattern of demand, and with ensuring that the
firm’s capabilities change to meet the changes in market demand.

The strategic planning process has 3 steps to be followed to grant the accomplishment of the firm’s
objectives:

Once the future direction of the business has been determined by this planning there is a need to
change this plan into a more definite one which can be express in quantitative terms. This is the
function of the corporate plan, which provides a detailed plan for the organization and it’s
component, in order to enable the firm for future activities and communicate this planning
throughout the organization.

Thus, the planning stages of the organization are the follows: