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Good People Make Good Leaders

Sometimes the simplest management strategies are also the most effective.
May 27, 2010
URL: http://www.entrepreneur.com/article/206832

These days, we all need to make the most of our resources, and for most small-business owners, human capital is a primary asset. So how do you inspire people to perform at a higher level?

For most workers, job satisfaction means more than a paycheck, so monetary incentives aren't the answer. Compensation is a satisfier, not a motivator. Our earnings allow us to satisfy our most basic needs for food and shelter, as well as the various luxuries we covet, but human beings need more than that.

According to psychologists, humans have a deep-seated need to feel competent and valued. They need to believe they belong to something larger than themselves. By meeting such innate psychological needs, you can inspire employees to greater heights.

Appealing to these basic needs doesn't have to cost you much of anything--except maybe leaving a little ego at the door. Dictatorship isn't leadership, anyway. Often, being a better leader starts with being a better person. For example:

Sometimes the simple things are most effective. By showing respect, you earn respect. And when you make the effort to inspire your employees, you may be pleasantly surprised to find that they return the favor.