copyright © 2006 pearson education canada inc. 9-1 chapter 9 motivating, satisfying, and leading...

9-1

Copyright © 2006 Pearson Education Canada Inc.

Chapter 9Chapter 9

Motivating, Satisfying, and Leading Employees

9-2Copyright © 2006 Pearson Education Canada Inc.

Learning ObjectivesDescribe the nature and importance of psychological contracts in the workplaceDiscuss the importance of job satisfaction and employee morale and summarize their roles in human relations in the workplaceIdentify and summarize the most important theories of employee motivationDescribe some of the strategies used by organizations to improve job satisfaction and employee motivationDiscuss different managerial styles of leadership and their impact on human relations in the workplace


Psychological Contract

The set of expectations held by an employee concerning what he or she will contribute to an organization and what the organization will provide the employee in return If either party perceives an inequity in the contract, that party may seek a change Employees may seek increased wages, or they

may reduce their efforts Employers may fire staff, offer more training,

or transfer staff


Job Satisfaction and Morale

Job satisfaction The sense of accomplishment

employees feel from performing their jobs well

When job satisfaction is high, so is employee morale

Employee morale The mental attitude that employees

have towards their workplace


Satisfaction Enhances Performance

Increased commitment to their work and the firmWork harder to contribute to the organizationHave fewer grievancesHave lower absenteeismAre less likely to leave the organization


Motivation in the Workplace

Motivation The set of forces that cause people to

behave in certain ways

Motivational theories Classical theory and scientific management Behaviour theory Contemporary theory


Classical Theory & Scientific Management

Classical theoryWorkers are motivated primarily by money If money motivates, then paying employees more would result in higher levels of production

Scientific managementAnalyzes jobs and finds more efficient ways to perform them Time-and-motion

studies


Hawthorne StudiesResearchers attempted to measure the impact of lighting on productivity Productivity increased whether or not the

lighting was high or low Something, other than money and lighting,

was impacting on performance Key factor: attention

Hawthorne effect The tendency of workers to increase

productivity when they receive special attention from management


Contemporary Motivation Theories

Based on the importance of good human relations in motivating employees Human-resources model Hierarchy of needs model Two-factor theory Expectancy theory Equity theory Goal-setting theory


The Human Resources Model: Theories X and Y

Two different management views of the firm’s human resourcesTheory X Employees must be forced to be

productive because they are naturally lazy, irresponsible, and unco-operative

Theory Y Employees want to be productive

because they are naturally energetic, responsible, and co-operative


Theory X Employees

LazyLack ambitionDislike responsibilitySelf-centredResist changeGullible and unintelligentMust be punished or rewarded to stimulate motivation


Theory Y Employees

EnergeticAmbitiousResponsibleSelflessWant to contribute to business successIntelligent


Maslow’s Hierarchy of Needs

Needs are hierarchical Lower level needs must be met first

Only unsatisfied needs motivate workers Needs levels Self-actualization Esteem Social Security Physiological


Physiological Needs

Basic survival requirements Food Shelter Water Sleep

Business addresses these needs by providing comfortable work environments and sufficient salaries to buy food and shelter


Security Needs

Need for stability and protection from unknownEmployers offer

Pension plans

Job security

Personal safety


Social Needs

Need for friendship and companionshipNeed to belong to a groupNeed to “fit in” and be acceptedMaking friends at work can help satisfy social needs


Esteem Needs

Need for status and recognition from others Need for self-respectRespected job titles and large offices are among the things that business can provide to address these needs


Self-actualization Need

Need for self-fulfillmentNeed for personal growth and developmentNeed to contribute to society and achieve meaningful goalsNeed to be true to yourself and satisfy yourselfChallenging job assignments can help satisfy these needs


Two-factor Theory

Two different factors affect job satisfaction and dissatisfactionHygiene factors Cause job dissatisfaction if they are

missing or inadequate

Motivation factors Cause job satisfaction if they are

present and satisfactory


Hygiene FactorsWorking conditions and clearly stated policies If present, the employee is not

dissatisfied If absent or deficient, the employee is

dissatisfied Working conditions Interpersonal relations Pay and security Company policies and administration


Motivation Factors

Recognition or added responsibility if absent, the employee is not

satisfied (but not dissatisfied either) achievement recognition the work itself responsibility advancement and growth


Expectancy Theory

People are motivated to work towards rewards that they want and that they believe they have a reasonable chance of obtaining Motivation is based on the belief that performance is linked to the reward he/she can perform at a level to achieve the

required results the reward is valuable


Expectancy Theory Model

Individual Effort

Individual Performance

Organizational Rewards

Personal Goals

Effort-Performanceissue

Performance-Rewardissue

Rewards-Personal Goalsissue


Equity TheoryEmployees use social comparisons to evaluate their treatment by the organizationIndividuals compare What they contribute relative to what they get

in return Their input/output ratio with what they feel

others are getting

The result is a feelings of equity or inequity The ratios must be fair, not the same, to have a

sense of equity


Dealing with Inequity

Employees will attempt to restore equity in an inequitable situation seeking raises reducing work effort reducing work week complaining to their superiors seeking different employees for comparison quitting the job


Goal-setting Theory

Employees perform better when they set specific, quantified, time-framed goals Goals are challenging and specific Energy and attention can be focused

on the task to be accomplished Employees participate in setting their

own goals, which increases their commitment and motivation to achieve the goals


Programs for Enhancing Job Satisfaction

Reinforcement & punishmentManagement by objectivesParticipative managementQuality circlesJob enrichmentJob redesignModified work schedulesWorkshare programs


Reinforcement

Positive behaviour is reinforced through rewards Cash bonuses for performance

Negative behaviour is punished Less pay, fewer hours, suspension, dismissal

This management approach is most effective when employees are trying to master new skills or behaviours


Management by Objectives

Employees will be motivated to obtain goals that they help to set Improves relations between superior

and subordinates by nature of the consultative process

Assessment of performance in meeting goals provides immediate feedback on success and individual contributions, which can lead to feelings of equity in the firm


Participative Management

Employees will be more satisfied on the job if they have a say in how they do their jobs and how the company is managed Can make employees more committed

to the organization and achieving goals Popular in Japanese firms and gaining

acceptance in Canada


Job Enrichment

Changing the nature of the job, the way various jobs work together, or through having employees rotate through jobs

Increases job satisfaction by changing the job Increased responsibility or growth Employees acquire new skills and feel valued


Job Redesign

Increases job satisfaction by improving the employee-job fit Combining tasks Forming natural workgroups Establishing client relationships

Useful when individuals have a high personal need for growth or achievement


Redesign MethodsCombining tasks Enlarges the job thus increasing responsibility Work seems more meaningful

Natural workgroups Creates teams among individuals who work on

projects Enhances their understanding of the function of the

organization, and the problem-solving abilities of the team

Establish client relationships Allows employees to interact with customers More variety and more control over their jobs


Modified Work Schedules

Allows individuals to fulfill work commitments more effectively around personal or community obligations Helps increase job satisfaction

FlextimeCompressed workweekTelecommutingWorkshare programs


FlextimeAdjusts the standard daily work schedule to fit employees’ needs Basic office hours (9:00 a.m. To 5:00 p.m.) They must all be available from 10:00

a.m. To 3:00 p.m. (The core time) Therefore, they may come in from 7:00

a.m. To 3:00 p.m., Or as late as 10:00 a.m. To 6:00 p.m

Some offices will also allow flexible hours between 11:00 a.m. And 1:00 p.m. For lunch


The Compressed Workweek

Employees may work their required weekly hourly requirement over fewer than five working daysEmployees work longer hours on the days they workPotential scheduling options 40 hours = 5 days x 8 hours 40 hours = 4 days x 10 hours 40 hours = 3 days x 13.33 hours (often

worked into a 36-hour week at 12 hours/day)


TelecommutingEmployees are permitted to work away from the officeHome-based office technology are employed Computers, voicemail, e-mail, fax modems,

cell phones, overnight delivery services

Barriers Fear of not being internally motivated &

missing deadlines Coordinating family and work responsibilities


WorksharingTwo people share a single, full-time position Also referred to as job sharing

Useful for those who wish to stay in the workforce part-time Parents of young children Individuals easing into retirement 8% of part-time Canadian workers are

worksharing

Most workshare employees are university-educated women in professional occupations


Managerial Styles and Leadership

Leadership The process of motivating others to

work to meet specific objectives

Managerial style Patterns of behaviour that a manager

exhibits in dealing with subordinatesAutocratic styleDemocratic styleFree-rein style


Autocratic Style

Managers issue orders and expect them to be obeyed without question or discussion Decision making occurs rapidly due to lack

of consultation Useful for situations where quick decision

making and conformity is required Military applications

This style suits employees who do not want to make decisions


Democratic Style

Managers ask for input from subordinates but retain final decision-making power Benefits those who wish to have input Can lead to frustration if the manager’s

decisions are not consistent with the input Annoys those who do not wish to have input


Free-rein Style

Managers simply advise subordinates Employees have the authority to

make the final decisions themselves May be useful in circumstances where

a loose structure exists A volunteer organization


Canadians Vs. Americans

Canadian managers tend to be More quiet or subdued More committed to their organizations More independent thinkers More culturally tolerant


Contingency Approach to Leadership

The most effective management style depends on the situation being managed Observes cultural differences that affect the

interpretation of situations and employee needs

Not all subordinates wish to have a role in decision making

Success is achieved by adjusting one’s management style to suit the situation involved


Motivation & Leadership in the 21st Century

Changing patterns of motivation Rewards desired by today’s employees

are different from those of yesterday’s Money may not be the prime motivator Individual goals vary more than ever before

Changing patterns of leadership Less of an emphasis on autocratic

styles as employees become more empowered

copyright © 2006 pearson education canada inc. 9-1 chapter 9 motivating, satisfying, and leading...

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