The inextricable link between leadership and motivation

These considerations do not appear applicable in financial and service industries, probably because such industries produce nothing physical - although senior officials do like to talk about products - and because the businesses can survive for a significant time on the cash flow from services that have been provided in the past.

An example would be the insurance industry. A work to rules strike would simply delay both claims and renewals, so what the business loses on the roundabout it gains on the swings and there is no real competition except on price. Customers only find out how good the "product" is after a disaster.

Prior to the mid to late seventies there was a theory that was practiced in many large Australian companies: Each full salary step in a business hierarchy should be about 30-40 per cent. It was also accepted that a successful business needed no more than five or six direct in line steps. I have heard it argued that the Catholic Church manages successfully with four supervisory steps. Although, the child abuse situation has brought that reputed success into doubt. Six steps at a salary increment of 35% would indicate a top multiple of six (1.35), 4 per cent, a multiple of about eight.

I recall the day in the seventies when a major Australian company abandoned that theory with the aim of providing incentives for upper levels of management. The company had been very successful up until that time. There is also an economic argument against wide income spreads. Excess income can only be wasted on foolish consumption or on helping to cause asset value inflation, to the disadvantage of those already disadvantaged, but that is a separate subject.

There was then another valuable theory for a business long-term success - no senior manager should be a one-man band. Decisions in a large company should be made by a group of various specialists, of near equal status, so that any one person has little to fear from any other. An executive committee responsible to the directors is such a committee.

Returning to the workplace leadership, being understanding and considerate involves many things besides the personal problems of individuals. It involves ensuring a clean safe plant with reasonable amenities and proper training. It means the superintendent must ensure that a man is paid the correct wage and any other entitlements without fuss and that if an employee wishes to raise a complaint with the Company, his supervisor will arrange for a meeting with the superintendent as early as practical. It means that signs such as "Staff Only • All Enquiries at Window,'" belong in the garbage can.

It means where possible, industrial decisions based on a wise evaluation of the intangibles by those closest to the situation, provided they are capable, with only guidance from rules. I recall asking a senior industrial officer what a company's policy was on a particular matterand receiving the reply: "What are you trying to achieve? If it is worthwhile we are here to help you achieve it."

Sure, what I am saying is from Herzberg - fix the hygiene factors. But it is also from, "The Managers " by R. Lewis and R. Stewart. "It is management's job to make workers feel that their humanity is recognized, to give their individual worth its due, to consult them about changes, to encourage them to express their opinions, to listen patiently while these -however inchoate - are expounded, to set up for them a ladder of promotion (but only to promote those good enough), to be immensely considerate and to be seen to be considerate; and thus to put into operation the one formula which psychologists say will get more out of working people than any material incentive scheme."

In summary, leadership is helping individuals fully develop their better internal drives, to improve their internal satisfaction, and move them towards making an improvedcontribution to a societal or team goal.