bus110 chapter 10 - motivating employees

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* * Chapter Ten Motivating Employees McGraw-Hill/Irwin ©2010 The McGraw-Hill Companies, All Rights Reserved

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Motivating Employees


  • 1.* * Chapter Ten Motivating Employees McGraw-Hill/Irwin 2010 The McGraw-Hill Companies, All Rights Reserved


  • FoundedGooglein 1998 in a friends garage.
  • Their success is a result of constant innovation and motivating employees to pursue their own interests .


  • Walls are painted in bright colors, offices are open and the Googleplex provides food and recreation activities for all employees.

10- 3. Intrinsic vs. Extrinsic Rewards * * The Value of Motivation 10- Intrinsic = Inside Feeling of Job Well Done Pride Sense of Achievement Extrinsic = Outside Praise Recognition Promotions Gifts 4. INTRINSIC REWARDS * *

  • Intrinsic Rewards --Personal satisfactionfelt for a job well done.
  • Kinds of Intrinsic Rewards:

The Value of Motivation

    • Pride in your performance
    • Sense of achievement


  • Extrinsic Rewards --Something givenas a recognition of good work.
  • Kinds of Extrinsic Rewards:
    • Pay Raises
    • Promotions
    • Awards

The Value of Motivation 10- 6. FRINGE BENEFITSPerks Offered to Employees at Top 50 Employers * * Source: Business Week,www.businessweek.com Recognizing a Job Well Done LG7 10- 7. TAYLORS SCIENTIFICMANAGEMENT * *

  • Scientific Management --Studying workers to determine themost efficient ways of doing thingsand then teaching those techniques.
  • Three Key Elements to Increase Productivity
    • Time
    • Methods of Work
    • Rules of Work

LG1 Frederick Taylor: The Father of Scientific Management 10- 8. TAYLORS FOUR KEYPRINCIPLES * *

    • Study how a job is performed.
      • Gather time & motion information.
      • Check different methods.
    • Codify the best method into rules.
    • Choose workers whose skill matches the rules.
    • Establish a fair level of performance and pay.

LG1 Frederick Taylor: The Father of Scientific Management 10- 9. TIME-MOTION STUDIES * *

  • Time-Motion Studies --Studies of which tasks must be performed to complete a job and the time needed to do each task.
  • Led to the development of thePrinciple of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth.

LG1 Frederick Taylor: The Father of Scientific Management 10- 10. HAWTHORNE STUDIES:PURPOSE AND RESULTS * *

  • Researchers studiedworker efficiency under different levels of light.
  • Productivity increased regardless of light condition.

LG2 Elton Mayo and the Hawthorne Studies

  • Researchers decided it was a human or psychological factor at play.
  • Hawthorne Effect -- Peopleact differently when they know they are being studied.


  • Hierarchy of Needs -- Theory ofmotivation based on unmet human needsfrom basic physiological needs to safety, social and esteem needs to self-actualization needs.
  • Needs that have already been met do not motivate.
  • If a need is filled, another higher-level need emerges.

LG3 Motivation and Maslows Hierarchy of Needs 10- 12. MASLOWSHIERARCHY of NEEDS * * LG3 Motivation and Maslows Hierarchy of Needs 10- 13. HERZBERGSMOTIVATING FACTORS * *

  • Herzbergs research centered on two questions:

LG4 Herzbergs Motivating Factors

    • What factors controlled by managers aremost effective in increasing worker motivation ?
    • How do workers rank job-related factors in order of importance related to motivation?

10- 14. JOB CONTENT * *

  • Herzberg foundjob contentfactors were most important to workers workers like to feel they contribute to the company.
  • Motivators --Job factors thatcause employees to be productiveand that give them satisfaction .

LG4 Herzbergs Motivating Factors 10- 15. JOB ENVIRONMENT * *

  • Job environmentfactors maintained satisfaction butdid notmotivate employees.
  • Hygiene Factors --Job factors that cancause dissatisfaction if missingbut that do not necessarily motivate employees if increased .

LG4 Herzbergs Motivating Factors 10- 16. HERZBERGS MOTIVATORS and HYGIENE FACTORS * * LG4 Herzbergs Motivating Factors 10- Motivators Hygiene Factors Work itself Company policy and administration Achievement Supervision Recognition Working conditions Responsibility Interpersonal relations Growth and advancement Salary, status and job security 17. COMPARISON of the THEORIESof MASLOW and HERZBERG * * LG4 Herzbergs Motivating Factors 10- 18. THEORY X and THEORY Y * *

  • Douglas McGregor proposed managers had two different sets of assumptions concerning workers.
  • Their attitudes about motivating workers was tied to these assumptions.
  • McGregor called them Theory X and Theory Y.

LG5 McGregors Theory X and Theory Y 10- 19. ASSUMPTIONS ofTHEORY X MANAGERS * *

  • Workersdislike workand seek toavoid it .
  • Workers must beforced or threatenedwith punishment to get them to perform.
  • Workers prefer to bedirectedandavoid responsibility
  • Only effective motivators arefear and money.

LG5 McGregors Theory X and Theory Y 10- 20. ASSUMPTIONS ofTHEORY Y MANAGERS * *

  • Peoplelike work , its a part of life.
  • Workersseek goalsthey are committed toward.
  • Commitment to goals depends on perceived rewards.
  • People canuse creativityto solve problems.
  • Intellectual capacity is only partially realized.
  • People aremotivatedby a variety of rewards.

LG5 McGregors Theory X and Theory Y 10- 21. THEORY Z * *

  • William Ouchi researched cultural differences between the U.S. (Type A) and Japan (Type J).
  • Type J committed to the organization and group.

LG5 Ouchis Theory Z

  • Type A focused on the individual.
  • Theory Z is the hybrid approach of Types A and J.

10- 22. THEORY Z * * LG5 Ouchis Theory Z 10- 23. GOAL-SETTING THEORY * *

  • Goal-Setting Theory --Setting ambitious but attainable goalscanmotivate workersandimprove performanceif the goals are accepted, accompanied by feedback, and facilitated.

LG6 Goal-Setting Theory and Management by Objectives 10- 24. APPLYING GOAL-SETTINGTHEORY * *

  • Management by Objectives (MBO) --Involves acycle of discussion, review and evaluation of objectivesamong top and middle-level managers, supervisors and employees.
  • Managers formulate goals in cooperation with everyone.
  • Need to monitor results and reward achievement.

LG6 Goal-Setting Theory and Management by Objectives 10- 25. ORGANIZATIONS USING MBO * *

    • Toyota Motor Company
    • Emerson Electric Company
    • U.S. Department of Defense

LG6 Goal-Setting Theory and Management by Objectives 10- 26. USINGREINFORCEMENT THEORY * *

  • Reinforcement Theory --Positive and negative reinforcers motivate a person to behave in certain ways.
  • Positivereinforcement includes praise, pay increases and recognition.
  • Negativereinforcement includes reprimands, reduced pay, and layoff or firing.
  • Extinction is a way of trying to stop behavior by not responding to it.

LG6 Reinforcing Employee Performance: Reinforcement Theory 10- 27. REINFORCEMENT THEORY * * LG6 Reinforcing Employee Performance: Reinforcement Theory 10- 28. ENRICHING JOBS * *

  • Job Enrichment --A motivational strategy that emphasizesmotivating the worker through the job itself.

LG7 Motivation Through Job Enrichment

  • Based on Herzbergs motivators, such as responsibility, achievement and recognition.


  • Job Enlargement --A job enrichment strategy that involvescombining a series of tasks into one challenging and interesting assignment.
  • Job Rotation --A job enrichment strategy that involvesmoving employees from one job to another.

LG7 Motivation Through Job Enrichment 10- 30. KEY CHARACTERISTICSof WORK * *

  • Skill Variety
  • Task Identity
  • Task Significance
  • Autonomy
  • Feedback

LG7 Motivation Through Job Enrichment 10- 31. USING OPEN COMMUNICATION * *

  • Create a culture that rewards listening.
  • Train managers to listen.
  • Use effective questioning techniques.
  • Remove barriers to open communication.
  • Ask employees whats important to them.

LG7 Motivating Through Open Communication 10- 32. BIG MOTIVATORS forSMALL BUSINESS (Spotlight on Small Business) * *

  • Things like weekly trips to the movies and after-work parties help keep employees motivated.
  • Communication, mentoring and group bonding are key elements to success.
  • Open communication and increased responsibility for employees makes them feel a real part of the firm.


  • Raises are not the only ways to recognize an employees performance. Recognition can also include:
    • Paid time off
    • Flexible scheduling
    • Work from home opportunities
    • Paid child or elder care
    • Stock options or profit sharing
    • Company awards
    • Company events or teams

LG7 Recognizing a Job Well Done 10- 34. WORK WELL with OTHERS Keys for Productive Teamwork * *

  • Have a common understanding of your task.
  • Clarify roles and responsibilities.
  • Set rules.
  • Get to know each other.
  • Communicate openly and often.

Source: Wall Street Journal Research, September 2007. Recognizing a Job Well Done LG7 10- 35. WHATS GOOD for YOU Most Positive Remedies for Employee Morale * * Recognizing a Job Well Done LG7 10- 36. WHATS BAD for YOU Most Negative Actions for Employee Morale * * Recognizing a Job Well Done LG7 10- 37. MOTIVATING ACROSS the GENERATIONS * *

    • Baby Boomers(1946 1964)
      • Experienced great economic prosperity, job security, optimism about their future.
    • Generation X(1965 1980)
      • Raised in dual-career families, attended day care, feeling of insecurity about jobs
    • Generation YorMillenials(1980 2000)
      • Raised by indulgent parents, used to many comforts like computers and cell phones

LG8 Motivating Employees Across Generations 10- 38. GENERATION X in theWORKPLACE * *

  • Desire economic security but focus more oncareer securitymore than job security.
  • Good motivators as managers due toemphasis on resultsrather than work hours.
  • Tend to beflexibleand good atcollaboration and consensus building .
  • Very effective at givingemployee feedback and praise.

LG8 Motivating Employees Across Generations 10- 39. MILLENIALS in theWORKPLACE * *

  • Tend to beimpatient, skeptical, blunt and expressive.
  • Aretech-savvyand able to grasp new concepts.
  • Able tomulti-taskand areefficient .
  • Highlight a strong sense ofcommitment .
  • Place a high value onwork-life balance .
  • Fun and stimulationare key job requirements.

LG8 Motivating Employees Across Generations 10- 40. The BEST COMPANIES forWORKERS * * Source: Fortune Magazine,www.fortune.com Motivating Employees Across Generations LG8 10- Company Location NetApp Sunnyvale, California Edward Jones St. Louis, Missouri Boston Consulting Group Boston, Massachusetts Google Mountain View, California Wegmans Food Markets Rochester, New York Cisco Systems San Jose, California 41. Review Only 42. PROGRESS ASSESSMENT * *

  • What are several steps firms can take to increase internal communications and motivation?
  • What problems may emerge when firms try to implement participative management?
  • Why is it important to adjust motivational styles to individual employees? Are there any general principles of motivation that todays managers should follow?

Progress Assessment10- 43. PROGRESS ASSESSMENT * *

  • What are the similarities and differences between Taylors time-motion studies and Mayos Hawthorne studies?
  • How did Mayos findings influence scientific management?
  • Explain the distinction between what Herzberg called motivators and hygiene factors.

Progress Assessment10- 44. PROGRESS ASSESSMENT * *

  • Briefly explain the managerial attitudes behind Theories X, Y and Z.
  • Explain goal-setting theory.
  • Evaluate expectancy theory. When could expectancy theory apply to your efforts or lack of effort?
  • Explain the principles of equity theory.

Progress Assessment10- 45. UPSET at UPS (Legal Briefcase) * *

  • UPS drivers work under strict rules and work requirements.
  • Performance pressure has taken a toll on drivers who report increased stress, anxiety and back pain.
  • UPS is employing new technologies and planning to increase productivity without overtaxing drivers.

10- 46. ARE YOU STRESSED? Warnings of Employee Stress * *

  • Negative attitudes about work
  • Drops in productivity
  • Chronic lateness
  • Absenteeism
  • Careless with details
  • Unable to work with others
  • Withdrawal from co-workers
  • Easily upset or angered

Frederick Taylor: The Father of Scientific Management LG1 10- 47. EXPECTANCY THEORY in MOTIVATION * *

  • Expectancy Theory --The amount of effort employees exert on a specific task depends on their expectations of the outcome.
  • Employees ask:
    • Can I accomplish the task?
    • Whats my reward?
    • Is the reward worth the effort?
    • Expectations can vary from person to person.

LG6 Meeting Employee Expectations: Expectancy Theory 10- 48. EXPECTANCY THEORY * * LG6 Meeting Employee Expectations: Expectancy Theory 10- 49. NADLER & LAWLERSMODIFICATION * *

  • Researchers Nadler and Lalwer modified expectancy theory and suggested five steps for managers:
    • Determine what rewards employees value.
    • Determine workers performance standard.
    • Make sure performance standards are attainable.
    • Tie rewards to performance.
    • Be sure employees feel rewards are adequate.

LG6 Meeting Employee Expectations: Expectancy Theory 10- 50. EQUITY THEORY * *

  • Equity Theory --Employees try to maintain equity between inputs and outputs compared to others in similar positions.
  • Workers often base perception of their outcomes to a specific person or group.
  • Perceived inequities can lead to reduced quality and productivity, absenteeism even resignation.

LG6 Treating Employees Fairly: Equity Theory 10- 51. GREEN TEAM, GO! (Thinking Green) * *

  • Steve Sarowitz ofPaylocityformed a Green Team to make the business more eco-friendly.
  • The Green Team expanded company recycling, increased telecommuting and switched from paper cups to ceramic cups.
  • Employees were excited by the challenge because it went beyond their traditional jobs.


  • Cultural differences make worker motivation a challenging task for global managers.
  • High-Contextcultures require relationships and group trust before performance.

LG8 Motivating Employees Across the Globe

  • Low-Contextcultures believe relationship building distracts from tasks.