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* * Chapter Ten Motivating Employees Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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*

* Chapter Ten

Motivating

Employees

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

*

* INTRINSIC REWARDS

• Intrinsic Rewards -- Personal satisfaction felt for a

job well done.

• Kinds of Intrinsic Rewards:

The Value of

Motivation

- Pride in your

performance

- Sense of

achievement

10-2

*

* EXTRINSIC REWARDS

• Extrinsic Rewards -- Something given as a

recognition of good work.

• Kinds of Extrinsic Rewards:

- Pay Raises

- Promotions

- Awards

The Value of

Motivation

10-3

*

* FRINGE BENEFITS

Perks Offered to Employees at Top 50 Employers

Source: Business Week, www.businessweek.com

Recognizing a

Job Well Done

LG7

10-4

*

* TAYLOR’S SCIENTIFIC

MANAGEMENT

• Scientific Management -- Studying workers to

determine the most efficient ways of doing things and

then teaching those techniques.

• Three Key Elements to Increase Productivity

1. Time

2. Methods of Work

3. Rules of Work

LG1

Frederick Taylor:

The Father of

Scientific

Management

10-5

*

* TAYLOR’S FOUR KEY

PRINCIPLES

1. Study how a job is performed.

• Gather time & motion information.

• Check different methods.

2. Codify the best method into rules.

3. Choose workers whose skill matches the rules.

4. Establish a fair level of performance and pay.

LG1

Frederick Taylor:

The Father of

Scientific

Management

10-6

*

* 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 the Principle 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

10-7

*

* HAWTHORNE STUDIES:

PURPOSE AND RESULTS

• Researchers studied worker 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 -- People

act differently when they know

they are being studied.

10-8

*

* MASLOW’S

THEORY of MOTIVATION

• Hierarchy of Needs -- Theory of motivation

based on unmet human needs from 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

Maslow’s

Hierarchy of

Needs

10-9

*

* MASLOW’S

HIERARCHY of NEEDS LG3

Motivation and

Maslow’s

Hierarchy of

Needs

10-10

*

* HERZBERG’S

MOTIVATING FACTORS

• Herzberg’s research centered on two questions:

LG4

Herzberg’s

Motivating

Factors

- What factors controlled by

managers are most

effective in increasing

worker motivation?

- How do workers rank job-

related factors in order of

importance related to

motivation?

10-11

*

* JOB CONTENT

• Herzberg found job content

factors were most important

to workers – workers like to

feel they contribute to the

company.

• Motivators -- Job factors that

cause employees to be

productive and that give them

satisfaction.

LG4

Herzberg’s

Motivating

Factors

10-12

*

* JOB ENVIRONMENT

• Job environment factors maintained satisfaction

but did not motivate employees.

• Hygiene Factors -- Job factors that can cause

dissatisfaction if missing but that do not necessarily

motivate employees if increased.

LG4

Herzberg’s

Motivating

Factors

10-13

*

* HERZBERG’S MOTIVATORS and

HYGIENE FACTORS LG4

Herzberg’s

Motivating

Factors

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

10-14

*

* COMPARISON of the THEORIES

of MASLOW and HERZBERG LG4

Herzberg’s

Motivating

Factors

10-15

*

* 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

McGregor’s

Theory X and

Theory Y

10-16

*

* ASSUMPTIONS of

THEORY X MANAGERS

• Workers dislike work and seek to

avoid it.

• Workers must be forced or

threatened with punishment to get

them to perform.

• Workers prefer to be directed and

avoid responsibility

• Only effective motivators are fear

and money.

LG5

McGregor’s

Theory X and

Theory Y

10-17

*

* ASSUMPTIONS of

THEORY Y MANAGERS

• People like work, it’s a part of life.

• Workers seek goals they are committed toward.

• Commitment to goals depends on perceived

rewards.

• People can use creativity to solve problems.

• Intellectual capacity is only partially realized.

• People are motivated by a variety of rewards.

LG5

McGregor’s

Theory X and

Theory Y

10-18

*

* 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

Ouchi’s

Theory Z

• Type A focused on the

individual.

• Theory Z is the hybrid

approach of Types A and J.

10-19

*

* THEORY Z

LG5

Ouchi’s

Theory Z

10-20

*

* GOAL-SETTING THEORY

• Goal-Setting Theory -- Setting ambitious but

attainable goals can motivate

workers and improve

performance if the goals are

accepted, accompanied by

feedback, and facilitated.

LG6

Goal-Setting

Theory and

Management by

Objectives

10-21

*

* APPLYING GOAL-SETTING

THEORY

• Management by Objectives (MBO) -- Involves a

cycle of discussion, review and evaluation of

objectives among 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

10-22

*

* 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?

• What’s my reward?

• Is the reward worth the effort?

• Expectations can vary from person to person.

LG6

Meeting Employee

Expectations:

Expectancy

Theory

10-23

*

* EXPECTANCY THEORY

LG6

Meeting Employee

Expectations:

Expectancy

Theory

10-24

*

* NADLER & LAWLER’S

MODIFICATION

• Researchers Nadler and Lalwer modified

expectancy theory and suggested five steps for

managers:

1. Determine what rewards employees value.

2. Determine worker’s performance standard.

3. Make sure performance standards are attainable.

4. Tie rewards to performance.

5. Be sure employees feel rewards are adequate.

LG6

Meeting Employee

Expectations:

Expectancy

Theory

10-25

*

* USING

REINFORCEMENT THEORY

• Reinforcement Theory -- Positive and negative

reinforcers motivate a person to behave in certain

ways.

• Positive reinforcement includes praise, pay

increases and recognition.

• Negative reinforcement 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

10-26

*

* REINFORCEMENT THEORY

LG6

Reinforcing

Employee

Performance:

Reinforcement

Theory

10-27

*

* 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

10-28

*

* ENRICHING JOBS

• Job Enrichment -- A motivational strategy that

emphasizes motivating the worker through the job

itself.

LG7

Motivation

Through Job

Enrichment

• Based on Herzberg’s

motivators, such as

responsibility,

achievement and

recognition.

10-29

*

* KEY CHARACTERISTICS

of WORK

1. Skill Variety: job demands different skills

2. Task Identity: doing a task with a visible outcome

from beginning to end

3. Task Significance: degree to which a job has a

significant impact on the lives or work of others

4. Autonomy: degree of freedom, independence, and

discretion in scheduling work and determining

procedures

5. Feedback: amount of direct and clear information

given about job performance

LG7

Motivation

Through Job

Enrichment

10-30

*

* TYPES of JOB ENRICHMENT

• Job Enlargement -- A job enrichment strategy

that involves combining a series of tasks into one

challenging and interesting assignment.

• Job Rotation -- A job enrichment strategy that

involves moving employees from one job to

another.

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 what’s important

to them.

LG7

Motivating

Through Open

Communication

10-32

*

* BIG MOTIVATORS for

SMALL 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.

10-33

*

* RECOGNIZING GOOD WORK

• Raises are not the only ways to recognize an

employee’s 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

*

* MOTIVATING EMPLOYEES

ACROSS the GLOBE

• Cultural differences make worker motivation a

challenging task for global managers.

• High-Context cultures require relationships and

group trust before performance.

LG8

Motivating

Employees

Across the Globe

• Low-Context cultures

believe relationship

building distracts from

tasks.

10-35

*

* 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 Y or Millenials (1980 – 2000)

- Raised by indulgent parents, used to many

comforts like computers and cell phones

LG8

Motivating

Employees

Across

Generations

10-36

*

* GENERATION X in the

WORKPLACE

• Desire economic security but focus more on

career security more than job security.

• Good motivators as managers due to emphasis

on results rather than work hours.

• Tend to be flexible and good at collaboration and

consensus building.

• Very effective at giving employee feedback and

praise.

LG8

Motivating

Employees

Across

Generations

10-37

*

* MILLENIALS in the

WORKPLACE

• Tend to be impatient, skeptical, blunt and

expressive.

• Are tech-savvy and able to grasp new concepts.

• Able to multi-task and are efficient.

• Highlight a strong sense of commitment.

• Place a high value on work-life balance.

• Fun and stimulation are key job requirements.

LG8

Motivating

Employees

Across

Generations

10-38