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Ferrell Hirt Ferrell

A CHANGING WORLDEIGHTH EDITION

McGraw-Hill/IrwinCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

part

CHAPTER 10 Managing Human Resources

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CHAPTER 9 Motivating the Workforce

Creating the Human

Resource Advantage

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Human Relations

The study of the behavior of individuals and groups in

organizational settings

Motivation

An inner drive that directs a person’s behavior towards a goal

or satisfaction of a need

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Motivating the Workforce

What motivates employees to perform?

How can managers boost morale?

How do you maximize worker performance?

How can you encourage creativity and innovation?

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Morale

An employee’s attitude toward his or her

job, employer and colleagues

Morale is a prominent aspect of human relations

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Morale

High Morale

Higher productivity, returns to shareholders, worker productivity

and loyalty

Lower absenteeism and employee turnover

Low Morale

Contributes to absenteeism, high employee turnover and lack of commitment

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Morale

Morale Boosters

Respect

Involvement

Appreciation

Compensation

Promotion

Pleasant work environment

Positive organizational culture

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Rewards

Intrinsic Rewards

The personal satisfaction and enjoyment you feel from

attaining a goal

Feeling of accomplishment

Extrinsic Rewards

Benefits and/or recognition you receive from someone else

Awards, benefits, pay increases

Intrinsic and extrinsic rewards both are important in motivating

employees to contribute to business goals

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Employee Motivation

• It can be difficult to motivate employees

• Motivation is difficult to define and varies from person to person

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Classic Theory of Motivation

Early 20th century

Frederick W. Taylor & Lillian Gilbreth

Scientific focus on work tasks & productivity

Money

Thought to be the sole motivator for workers

Satisfactory pay & job security motivate employees to work hard

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Hawthorne Studies

1924-1932 at the Hawthorne Works Plant

Elton Mayo

• Postulated that physical conditions in workplace stimulate productivity

Findings show social and psychological factors influence

productivity/morale

Marks beginning of concern for human relations in the workplace

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Theories of Employee Motivation

Maslow’s Hierarchy of Needs

Herzberg’s Two-Factor Theory

McGregor’s Theory X and Theory Y

Theory Z

Variations on Theory Z

Equity Theory

Expectancy Theory

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Maslow’s Hierarchy of Needs

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Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 70–396. American Psychology Association.

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Maslow’s Hierarchy of Needs

Physiological Needs

Basic needs for food, water, shelter

Security Needs

Protection from physical and economic harm

Social Needs

Need for love, companionship

Esteem Needs

Self-respect and respect from others

Self-actualization

Maximizing one’s full potential

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Herzberg’s Two-Factor Theory

Hygiene Factors

Focus on the work setting, not the content of the work

• Wages, working conditions, company policies, job security

Motivational Factors

Focus on content of the work itself

• Achievement, recognition, involvement, responsibility, advancement

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McGregor’s Theory X and Theory Y

Theory X

Considered the traditional management view

Assumes that workers

Generally dislike work

Must be forced to do their jobs

Average worker avoids responsibility and prefers direction

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McGregor’s Theory X and Theory Y

Theory Y

Considered the humanistic management view

Assumes

Expending physical effort is natural (people like to work)

People will assume responsibility and self-control to achieve objectives

(workers want to satisfy social, esteem and self-actualization needs)

People will commit to objectives once they realize there will be a personal

reward

Most organizations do not adequately utilize imagination, ingenuity,

creativity and intelligence of workers

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Theory Z

A management philosophy that stresses employee

participation in all aspects of company decision making

Incorporates many Japanese ideas about management (trust and

intimacy) adapted for use in the U.S.

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Variations on Theory Z

Quality Circles (or Quality-Assurance Teams)

Participative Management

Employee Involvement

Self-Directed Work Teams (SDWT)

All strive to give employees more control over their jobs

Make them responsible for outcomes

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Equity Theory

The assumption that how much people are

willing to contribute to an organization depends

on their assessment of the fairness (equity) of the rewards

they will receive in exchange

Equal pay for equal work

Employees who do not feel equitably treated may slack off on

the job or steal to level the field

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Expectancy Theory

Assumes that motivation depends not only on

how much a person wants something but also on how

likely he or she is to get it

Someone who wants something and has a reasonable

expectation to achieve it will be highly motivated

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Motivating Employees

Behavior Modification

Changing behavior and encouraging appropriate actions by

relating the consequences of behavior to the behavior itself

Reward

Punishment

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Strategies for Motivating Employees

Job Rotation

Movement of employees from one job to another to

relieve the boredom often associated with job

specialization

The drawback is that it does not totally eliminate risk of

boredom

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Strategies for Motivating Employees

Job Enlargement

Addition of more tasks to a job instead of treating each

task as separate

Seeks to counteract the boredom of division of labor

Many small firms use job enlargement

Requires training employees in new tasks

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Strategies for Motivating Employees

Job Enrichment

Incorporating motivational factors

(achievement, recognition, responsibility) into the job

Idea developed by Herzberg in the 1950s

Gives employees feedback on their performance

Rewards for good performance

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Strategies for Motivating Employees

Flexible scheduling strategies

Flextime

• Allows employees to choose their start and end times

Compressed Workweek

• 40 hours in a 4-day workweek

Job Sharing

• Occurs when two people share the same job

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Importance of

Motivational Strategies

Fosters employee loyalty

Boosts productivity

Influences on pay, promotion, job design

Nature of relationships

Nature of the job itself

Characteristics of the organization

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