INTRODUCTION TO BUSINESS

CHAPTER 10

Motivating Employees

Final Exam

Time? Place? What to bring? Which chapters? How to study – ?

Chapter Outline

How can motivation increase the value of a firm?

Theories on motivation. How can a firm motivate disgruntled

employees? How can a firm enhance job satisfaction and

thereby enhance motivation?

The Value of Motivation

Motivation is as important as the proper skills. Work environment should motivate

employees.

Theories

Motivation of employees is influenced by job satisfaction–the degree to which employees are satisfied with their jobs

Hawthorne Studies Equity Maslow Reinforcement Herzberg (+ and -) X,Y,Z Expectancy

Group Activity

1. Name of Theory

2. Definition: 10 words or less

3. At least 2 colors used

4. PICTURE expressing main point of theory

Theories on Motivation

Job satisfaction: the degree to which employees are satisfied with their jobs.

Hawthorne Studies Maslow’s Hierarchy of Needs: needs are

ranked in five general categories. Once a given category of needs is achieved, people become motivated to reach the next category.

Theories on MotivationSummary of the Hawthorne Studies

Theories on MotivationMaslow’s Hierarchy of Needs

Theories on Motivation

Physiological needs: the basic requirements for survival.

Safety needs: job security and safe working conditions.

Social needs: the need to be part of a group. Esteem needs: respect, prestige, and

recognition. Self-actualization: the need to fully reach

one’s potential.

Theories on Motivation

Herzberg’s Job Satisfaction Study Hygiene factors: work-related factors that can

fulfill basic needs and prevent job dissatisfaction.

Motivational factors: work-related factors that can lead to job satisfaction and motivate employees.

McGregor’s Theory X and Theory Y Theory Z

Theories on Motivation

Theories on Motivation

Managers commonly attempt various methods of motivating their employees, such as offering small rewards and recognition to employees who have achieved high performance. Recognition can increase employee job satisfaction.

Summary of Herzberg’s Job Satisfaction Study

Theories on Motivation

Theories on MotivationSummary of McGregor’s Theories X and Y

Theories on Motivation

Expectancy Theory Holds that an employee’s efforts are

influenced by the expected outcome (reward) for those efforts.

Equity Theory Suggests that compensation should be

equitable or in proportion to each employee’s contribution.

Theories on MotivationExample of Equity Theory

Theories on Motivation

Reinforcement Theory: suggests that reinforcement can influence behavior. Positive reinforcement motivates employees

by providing rewards for high performance. Negative reinforcement motivates employees

by encouraging them to behave in a manner that avoids unfavorable consequences.

Theories on MotivationSummary of Reinforcement Theory

Theories on Motivation Motivational Guidelines Offered by Theories

Employees commonly compare their compensation and perceived contribution with others.

Even if employees are offered high compensation, they will not necessarily be very satisfied.

Employees may be motivated if they believe that it is possible to achieve a performance level that will result in a desirable reward.

Motivating Disgruntled Employees

A firm may not be able to motivate some employees, regardless of its efforts.

If the disgruntled employees are not motivated, they may seek employment elsewhere.

Firms should force disgruntled employees to do their jobs and should fire them if they are unwilling to perform.

Motivating Disgruntled EmployeesComparison of Motivation Theories

How Firms Can Enhance Job Satisfaction and Motivation

Job Enrichment Programs: programs designed to increase the job satisfaction of employees.

Adequate Compensation Program Merit system: a compensation system that

allocates raises according to performance (merit).

How Firms Can Enhance Job Satisfaction and Motivation

Across-the-board system: a compensation system that allocates similar raises to all employees.

Incentive plans: provide employees with various forms of compensation if they meet specific performance goals.

Examples of Compensation Programs

How Firms Can Enhance Job Satisfaction and Motivation

Developing a Proper Compensation Plan Align the compensation plan with business goals Align compensation with specific employee goals Establish achievable goals for employees Allow employee input on the compensation plan

How Firms Can Enhance Job Satisfaction and Motivation

Job Security Flexible Work Schedule

Flextime programs: programs that allow for a more flexible work schedule.

Compressed workweek: compresses the workload into fewer days per week.

Job sharing: two or more persons share a particular work schedule.

How Firms Can Enhance Job Satisfaction and Motivation Employee Involvement Programs

Job enlargement: a program to expand (enlarge) the jobs assigned to employees.

Job rotation: a program that allows a set of employees to periodically rotate their job assignments.

Empowerment and Participative Management Empowerment: allowing employees the

power to make more decisions

How Firms Can Enhance Job Satisfaction and Motivation

Participative management: employees are allowed to participate in various decisions made by their supervisors or others.

Management by objectives (MBO): allows employees to participate in setting their goals and determining the manner in which they complete their tasks.

Teamwork: a group of employees with varied job positions have the responsibility to achieve a specific goal.

How Firms Can Enhance Job Satisfaction and MotivationWhen employees work in teams, they may enjoy their work to a greater degree. In addition, teams may lead to more social interaction, which can also increase job satisfaction.

How Firms Can Enhance Job Satisfaction and Motivation

Open-book management: a form of employee involvement that educates employees on their contribution to the firm and enables them to periodically assess their own performance levels.

Comparison of Methods Used to Enhance Job Satisfaction

Firms That Achieve the Highest Job Satisfaction Level

Methods Used to Enhance Job Satisfaction

Why Study Business?

It’s everywhere Determine major It’s required To get an “A” To get a job Money Global issues SAVE THE WORLD

To have a challenge Because I like it Passion To own my own business Family thought I should General understanding of

principles

BA 101 Course Objectives

The creation and organization of a business;

Basic vocabulary and understanding of each functional area within a business (marketing, finance, accounting, production, distribution, and human resources);

The relationship among these functional areas;      

Team building and small group development; and

The global dimensions of business.

Goals for this Class

Know where you stand (earn A’s) Groups “get along” & RESPECT each

other Fairness (please ask when/if you don’t

understand grading) Ignite PASSION for Business All 5’s (standing ovation optional) Learn and have FUN

Course Evaluation Volunteer to collect and take to SBA 560? Use #2 pencil or blue/black ink Scale – bad is 1, good is 5 (furthest edge of paper) Please do add comments

After evals. I will return (in seven minutes) and give the last quiz ….

Hopefully we will have time for a Q&A for final project questions and elevator pitches

Thanks for a GREAT class!