Managing People and Leadership in Contemporary Organizations Introduction Effective management in modern organisations requires a deep understanding of how people behave, what motivates them, and how leadership influences performance. Chapters 6 and 7 of Exploring Management by Schermerhorn et al. (2023) focus on people management, motivation, leadership, power, and influence, emphasising that organisational success depends largely on human factors. This essay critically examines the key theories discussed in these chapters, including motivation and leadership theories, and explores how managers apply these concepts in real world organisational contexts. By integrating academic literature with practical examples, the essay highlights the relevance of these theories in supporting employee performance, engagement, and ethical leadership. Managing People and Workplace Behaviour Managing people effectively begins with understanding individual differences in the workplace, including personality, values, attitudes, and emotional intelligence. According to Robbins et al. (2022), these differences influence how employees communicate, perform tasks, and respond to leadership. For example, employees with high emotional intelligence are often better at managing conflict and collaborating with colleagues, which leads to stronger team outcomes. Organisations such as Google actively recognise individual differences by promoting diverse teams and psychological safety. Research shows that Google’s emphasis on open communication and employee wellbeing has contributed to high levels of engagement and innovation (Edmondson, 2018). This demonstrates how understanding human behaviour can improve organisational performance. ________________________________________ Motivation Theories and Employee Performance Motivation is a central topic in Chapter 6 and refers to the forces that energise, direct, and sustain behaviour (Schermerhorn et al., 2023). Several key motivation theories help explain why employees behave as they do. Content Theories of Motivation Maslow’s Hierarchy of Needs proposes that individuals are motivated by a progression of needs, from basic physiological needs to self actualisation (Maslow, 1943). In the workplace, this suggests that employees will struggle to focus on career growth if basic needs such as job security and fair pay are unmet. For example, during economic uncertainty, many organisations prioritise job security and flexible work arrangements to address safety needs. Herzberg’s Two Factor Theory distinguishes between hygiene factors (e.g. salary and working conditions) and motivators (e.g. achievement and recognition) (Herzberg, 1968). A real world example can be seen in healthcare organisations, where adequate pay prevents dissatisfaction, but professional development opportunities and recognition are what truly motivate staff to excel. McClelland’s Needs Theory focuses on the needs for achievement, affiliation, and power (McClelland, 1961). Managers who understand these needs can tailor roles accordingly; for instance, sales roles often attract individuals with a high need for achievement. Process Theories of Motivation Expectancy Theory suggests that employees are motivated when they believe their effort will lead to good performance and meaningful rewards (Vroom, 1964). For example, performance based bonuses in consulting firms motivate employees when criteria are clear and achievable. Equity Theory explains motivation through perceptions of fairness (Adams, 1965). If employees believe they are under rewarded compared to others, motivation declines. This theory is particularly relevant in organisations striving for pay equity and transparency. Teams and Employee Engagement Chapter 6 also highlights the importance of teamwork and employee engagement. High performing teams are characterised by trust, clear roles, and open communication (Robbins et al., 2022). For instance, project based teams in IT companies rely on collaboration and shared accountability to meet tight deadlines and innovate effectively. Employee engagement, defined as emotional and cognitive commitment to work, is linked to higher productivity and lower turnover (Kahn, 1990). Organisations such as Microsoft have improved engagement by shifting to flexible work models and encouraging autonomy. Leadership, Power, and Influence Chapter 7 builds on people management by examining leadership and influence. Leadership is defined as the ability to influence others toward achieving shared goals (Northouse, 2021). Leadership Theories Early approaches such as trait and behavioural theories focused on identifying personal characteristics and leadership styles associated with effectiveness. However, contingency and situational theories argue that no single leadership style is best and that effectiveness depends on the situation (Fiedler, 1967; Hersey & Blanchard, 1988). A prominent contemporary approach is transformational leadership, which emphasises vision, inspiration, and personal development (Bass, 1985). Leaders such as Satya Nadella at Microsoft demonstrate transformational leadership by promoting a growth mindset and inclusive culture, resulting in increased innovation and organisational performance. Power, Ethics, and Responsible Leadership Leadership also involves the use of power. French and Raven (1959) identified different bases of power, including legitimate, reward, coercive, expert, and referent power. Ethical leaders rely more on expert and referent power, which builds trust and long term commitment. Ethical leadership is increasingly important in today’s organisations due to rising expectations around corporate responsibility. Leaders who act with integrity and transparency foster trust and protect organisational reputation (Ciulla, 2014). For example, companies that prioritise ethical decision making tend to maintain stronger employee morale and public credibility. Conclusion Chapters 6 and 7 of Exploring Management emphasise that managing people and leading effectively are central to organisational success. Motivation theories help managers understand what drives employee behaviour, while leadership theories explain how influence can be applied ethically and effectively. 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