(a) Explain how promotion can be used as a tool to enhance job performance. 10 (b) What is the relevance of Transactional…

(a) Promotion as a tool to enhance job performance

Promotion is the movement of an employee to a higher position with more responsibility, status and pay. It differs from transfer, which is a lateral move. Used well, it raises performance in these ways:

• Motivation: it offers recognition and growth, meeting esteem and self-actualisation needs (Maslow), and acts as a motivator in Herzberg's theory, so employees work harder to qualify.
• Reward for merit: when it is linked to performance, it signals that effort is valued, building fairness and trust.
• Clear career paths: employees see the ladder and prepare through learning, as in a bank's progression from clerk to officer to manager.
• Retention and morale: promotion from within reduces turnover and keeps experienced people, and also saves recruitment and orientation costs.
• Better use of talent: capable persons take greater responsibility, and vacated posts open for others.

Promotion works only when criteria (merit, seniority or both) are clear, fair and communicated. Poor promotions demotivate those passed over, and a promotion beyond competence leads to the Peter principle.

(b) Relevance of Transactional Analysis and its key transactions

Transactional Analysis (TA), developed by Eric Berne, is a theory of the personality and of interpersonal communication that analyses what happens between people when they interact. It is relevant today because it helps people understand their own behaviour and others', improves communication, reduces conflict, strengthens customer service, supports leadership and counselling, and helps managers respond rather than react. It underlies much training in interpersonal skills.

Berne said that each person has three ego states:

• Parent: attitudes learned from authority figures, which may be nurturing or controlling.
• Adult: rational, objective, data-based thinking.
• Child: feelings and impulses, which may be free, adapted or rebellious.

A transaction is a unit of communication, a stimulus and a response between ego states. The key types are:

• Complementary transactions: the response comes from the ego state addressed back to the ego state that spoke, such as Adult to Adult ("What is the report status?" "It will be ready by noon"). Communication continues smoothly.
• Crossed transactions: the response comes from an unexpected ego state, such as a Child reply ("Why do you always blame me?") to an Adult question. Communication breaks down and conflict arises.
• Ulterior transactions: two levels operate together, a social message and a hidden psychological message, as when a salesperson says "This model is for the more discerning buyer", appealing to the customer's pride.

Managers should aim for Adult-to-Adult transactions, recognise crossed ones and bring them back to complementary ones.

(c) Path-Goal theory of leadership and its leadership styles

The Path-Goal theory, developed by Robert House (1971) from Evans and from the expectancy theory of motivation, says that the leader's job is to help subordinates reach their goals. The leader clears the path (removes obstacles, gives direction, support and rewards) so that subordinates see that effort leads to performance and that performance leads to valued rewards. The leader's style should fit the situation.

The four leadership styles are:

• Directive: the leader gives clear instructions, schedules and standards. It suits unstructured tasks and inexperienced subordinates.
• Supportive: the leader is friendly and attends to the needs and well-being of subordinates. It suits stressful, boring or dissatisfying work.
• Participative: the leader consults subordinates and uses their suggestions in decisions. It suits capable, autonomy-seeking subordinates and ambiguous tasks.
• Achievement-oriented: the leader sets challenging goals, expects high performance and shows confidence. It suits capable subordinates with complex tasks.

Contingency factors decide the best style: subordinate characteristics (ability, locus of control, need for affiliation) and environmental characteristics (task structure, formal authority system, work group). The theory differs from Fiedler's model in that one leader can use different styles as needed. Its strength is its practical guidance; its limits are that it is complex and not fully tested.