Motivation. The Nature of Human Relations. Companies Giving Employees Incentives to Improve Productivity. Ray Kaupp
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1 Motivation The Nature of Human Relations What motivates employees to perform on the job is the focus of human relations The study of the behavior of individuals and groups in organizational settings Motivation The inner drive that directs a person s behavior toward goals Morale An employee s attitude toward his or her job, employer, and colleagues Companies Giving Employees Incentives to Improve Productivity Source: Optimize Magazine Productivity 2004 study, in Marianne Kolbasuk McGee, Behind the Numbers: Employee Productivity Pays Off for Everyone, Information Week, February 9, 2004, p
2 Employee Attitudes Toward Incentives Historical Perspectives on Employee Motivation Classical Theory of Motivation Money is the sole motivator for workers The Hawthorne Studies Productivity increased regardless of the physical conditions in the workplace such as light and noise levels Maslow s Hierarchy of Needs Self- Actualization Needs Esteem Needs Social Needs Security Needs Physiological Needs Source: adapted from Abraham H. Maslow, A Theory of Human Motivation, Psychology Review 50 (1943):
3 Content Motivation Theory: Aldefer s ERG Theory Groups Maslow s into three categories: Existence Relatedness Growth Content Motivation Theory: McClelland s Manifest Needs Achievement (n-ach) Personal responsibility, goal-oriented, challenge, work hard Motivated by nonroutine, variety, clear goals Power (n-pow) Control situations and others, competition and winning, authority and status Motivated by control, whole task, not team Affiliation (n-aff) Relationships, want to be liked, to belong Motivated by teams, teaching, praise Herzberg s Two-Factor Theory Hygiene Factors Company policies Supervision Working conditions Salary Security Motivational Factors Achievement Recognition The work itself Responsibility Advancement 3
4 McGregor s Theory X and Theory Y Theory X Management view that assumes workers generally dislike work and must be forced to do their jobs Theory Y Management view that assumes workers like to work and under proper conditions, employees will seek responsibility to satisfy social, esteem, and self-actualization needs Deming s Demons (1990) We are all born with intrinsic motivation, selfesteem, dignity, an eagerness to learn. Our present system of management crushes that all out. Instead of working for the company, people compete with each other. The Japanese are more successful than the U.S. because they live by cooperation, not competition. American firms will have to learn to support each other, rather than continue with the everybody for himself approach. That s how business should be. Theory Z A management philosophy that stresses employee participation in all aspects of company decision making 4
5 Comparison of American, Japanese, and Theory Z Management Styles Variations on Theory Z Quality circles Participative management Employee involvement Self-directed work teams Did You Know? Theory Z lets employees feel organizational ownership, which may produce positive attitudinal and behavioral effects for employees. Process Motivation Theory: Victor Vroom s Expectancy Theory Motivation = Expectancy X Valence Expectancy: Perception of the likelihood of the outcome Valence: Value of the outcome/reward 5
6 Process Motivation Theory: Adam s Equity Theory Perceived fairness of inputs/outputs Inputs Effort, experience, seniority, intelligence Outputs Praise, promotions, recognition Context: relevant others Reinforcement Theory Skinner: Stimulus, Response, Consequences Focus on results over time Reinforcement Positive (best motivator) Avoidance/Negative (rules) Extinction (withholding positive) Punishment Schedule of Reinforcement Continuous (every time) Intermittent Interval (passage of time) Fixed (paycheck) Variable (bonus) Ratio (output) Fixed Variable Variable Ratio best for sustaining behavior 6
7 Job Design: System for Turning Inputs into Outputs Eliminate Expenses under $100 Combine Make one trip Change sequence Do things in a different order Job Design Strategies Job Rotation Exposes employees to a variety of tasks as they move from one job to another Job Enlargement Teaches employees new tasks in their present job Job Enrichment Gives employees more control and authority in their present job, along with additional tasks Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved Job Enrichment Theory Redesigning a job to increase its motivational potential Enriched job = vertically loaded Enlarged job = horizontally loaded 7
8 Flexible Scheduling Strategies Flextime Compressed work week Job sharing Telecommuting Did You Know? 59% of companies with more than 5000 workers allow job-sharing. Source: Jim Owen, In Pursuit of Job Sharing, from (accessed June 8, 2001). The Importance of Motivational Strategies Fosters employee loyalty Boosts productivity Affects all relationships within the organization Influences promotion, pay, job design, training, and reporting relationships Employee s Definitions of Success Being trusted to get a job done Having power to make decisions Getting raises Getting promotions 91% 81% 74% 66% Gaining seniority Having the power to make decisions that affect the company 58% 58% Source: Survey of 2,000 adults by Randstad North America, Atlanta as reported ;in Kemba J. Dunham, The Jungle/Focus on Recruitment, Pay and Getting Ahead, Wall Street Journal, May 23, 2001, p. B12. 8
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