1
FS10321: Business Management
Week #7:
Chapter 9: Understanding Work Teams
Chapter 10: Motivating & Rewarding
2
The Popularity Of Teams
• Teams typically outperform individuals – When tasks require multiple:
• Skills
• Judgment
• Experience
• Better way to utilize individual talents
• Flexibility & responsiveness is essential – Changing environment
3
Empowered teams
• Increase job satisfaction and morale
• Enhance employee involvement
• Promote workforce diversity
4
Stages of Team Development
5
The Stages Of Team Development
• Stage 1: Forming– Uncertainty about
purpose, structure, and leadership
• Stage 2: Storming– Conflict among members
• Stage 3: Norming– Relationships develop
– Cohesiveness begins
• Stage 4: Performing– Fully functional and
accepted structure
• Stage 5: Adjourning– Team disbands
6
High-performing Team Characteristics
• Unified commitment• Good communication• Mutual trust• Effective leadership• External support
• Internal support• Negotiating skills• Relevant skills• Clear goals
7
Challenges to Creating Team Players
• Resistance to teams
• Individualistic national culture
• High value/significant rewards for individual achievement.
8
Shaping Team Behavior
• Proper selection– Both technical skills & interpersonal skills
• Employee training– Involve employees in learning team behaviors
• Reward appropriate team behaviors– Encourage cooperative efforts
• Rather than competitive ones
9
Diversity & Teams
• Fresh & multiple perspectives help team:– Identify creative or unique solutions – Avoid weak alternatives
• Difficulty of working together may make it harder to:– Unify a diverse team – Reach agreements
• Value of diversity increases with cohesiveness– Though diversity’s advantages dissipate with time
10
Chapter 10
Motivating and Rewarding
11
Motivation And Individual Needs
• Motivation– Willingness to exert high effort to reach goals– Affected by satisfying some individual need
• Need– Internal state – Makes certain outcomes appear attractive
12
Theories and Models
• Logically self-consistent framework
• Describes behavior of a given phenomenon
• Used to understand a situation
• Helps predict/create future behavior
13
Maslow’s Hierarchy of Needs Theory• Hierarchy of five human needs
– as each is satisfied, the next becomes dominant
• Physiological: food, drink, shelter, sex
• Safety: physical safety
• Social: affiliation with others, affection, friendship
• Esteem: Internal (self-respect, autonomy, and achievement); external (status, recognition, and attention)
• Self-actualization: personal growth and fulfillment
14
Maslow’s Hierarchy of Needs
EXHIBIT 10.2Source: Motivation and Personality, 2nd ed., by A. H. Maslow, 1970. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ.
15
Hertzberg’s Hygiene Theory
• Employees have basic needs• If basic needs aren’t met: Dissatisfaction!• But! You can’t motivate with these factors• Basic needs:
– Supervision
– Relationship with supervisor
– Work conditions
– Salary
– Status
– Security
– Relationship with employees
– Personal life
16
Hertzberg’s Motivation Theory
• Motivate through “higher” pursuits:– Achievement– Recognition– Work itself– Responsibility– Advancement– Personal growth
• These can lead to job satisfaction
17
Contrasting Views of Satisfaction-Dissatisfaction
EXHIBIT 10.5
18
Herzberg’s Motivation-Hygiene Theory
19
McClelland’s Three-Needs Theory
• Major motives in work:– Need for achievement
• Drive to excel, to strive to succeed
– Need for power• To affect others’ behavior
– Need for affiliation• Desire for friendly and close relationships
20
Adams’ Equity Theory
• Employees compare– What they get from a job situation (outcomes)– And what they put into it (inputs)
• Then:– Compare their input-outcome ratio to relevant others’
21
Equity Theory Relationships
• If less outcome/input than others:Underrewarded
• If same outcome/input as others: Equity• If more outcome/input than others: Overrewarded
22
Equity Theory
• Employees who perceive an inequity may:– Distort their own or others’ inputs or outcomes– Try to induce others to change their inputs/outcomes– Try to change their own inputs or outcomes– Choose someone else to compare with– Quit their job
23
Equity Theory Propositions
• If paid for time
– Overrewarded produce more than equitably paid
– Underrewarded produce less or poorer-quality output
• If paid for quantity of production
– Overrewarded produce fewer but higher-quality units than equitably paid
– Underrewarded produce more lower-quality units than equitably paid
EXHIBIT 10.7
24
Vroom’s Expectancy Theory• Employees…
• Make an effort– Act a certain way
• Results in performance– Actions achieve something
• Depends on attractiveness of rewards– Achievement leads to an outcome, desired or not
• Motivation comes from expectation of desired reward
25
Expectancy Relationships (Linkages)
• Effort–performance– Belief that exerting an effort will lead to
performance
• Performance–reward– Belief that a performance level will lead to a
desired outcome
• Attractiveness – The importance of the potential outcome/reward
26
Expectancy Theory Example
• Student in a classroom
• Effort-performance– How much work – how high you score
• Performance-reward– How do scores relate to grades?
• Attractiveness– Do you care about good grades?
27
Motivation and Compensation
• Pay-for-performance programs– Piece-rate plans– Profit sharing– Etc.
• Pay employees on basis of performance
• Not directly related to time spent on the job
• Becoming more and more popular!
28
Compensation Alternatives
• Competency-based compensation– Pays & rewards on basis of
• Skills, knowledge, behaviors
• Broad-banding– Pre-set pay level– Based on degree to which competencies exist
• Which allow an employee to contribute
• Stock options– Allows purchase of company stock at a fixed price
• For a given time
– Profits when co. performance increases stock value
29
Work-Life Balance: Alternative Work Schedules
• Flextime– Employees select what their work hours will be
• Within some specified parameters.
• Job sharing– Two+ workers split a 40-hour/week job
• Telecommuting– Working at home on computer linked to office
30
Team Papers/Presentations
• Target market
• Final marketing plan
• Product descriptions
• Artwork
• Promotional materials used
• Description of what happened
