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

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

2 INTRINSIC REWARDS The Value of Motivation Intrinsic Rewards -- Personal satisfaction felt for a job well done. Kinds of Intrinsic Rewards: - Pride in your performance - Sense of achievement 10-2

3 EXTRINSIC REWARDS The Value of Motivation Extrinsic Rewards -- Something given as a recognition of good work. Kinds of Extrinsic Rewards: - Pay Raises - Promotions - Awards 10-3

4 FRINGE BENEFITS Perks Offered to Employees at Top 50 Employers Recognizing a Job Well Done LG7 Source: Business Week,

5 TAYLOR S SCIENTIFIC MANAGEMENT Frederick Taylor: The Father of Scientific Management LG1 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 10-5

6 TAYLOR S FOUR KEY PRINCIPLES Frederick Taylor: The Father of Scientific Management LG1 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. 10-6

7 TIME-MOTION STUDIES Frederick Taylor: The Father of Scientific Management LG1 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. 10-7

8 HAWTHORNE STUDIES: PURPOSE AND RESULTS Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. Researchers decided it was a human or psychological factor at play. Hawthorne Effect -- People act differently when they know they are being studied. Elton Mayo and the Hawthorne Studies LG2 10-8

9 MASLOW S THEORY of MOTIVATION Motivation and Maslow s Hierarchy of Needs LG3 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. 10-9

10 MASLOW S HIERARCHY of NEEDS Motivation and Maslow s Hierarchy of Needs LG

11 HERZBERG S MOTIVATING FACTORS Herzberg s Motivating Factors LG4 Herzberg s research centered on two questions: - What factors controlled by managers are most effective in increasing worker motivation? - How do workers rank jobrelated factors in order of importance related to motivation? 10-11

12 JOB CONTENT Herzberg s Motivating Factors LG4 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

13 JOB ENVIRONMENT Herzberg s Motivating Factors Job environment factors maintained satisfaction but did not motivate employees. LG4 Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased

14 HERZBERG S MOTIVATORS and HYGIENE FACTORS Herzberg s Motivating Factors LG4 Motivators Work itself Achievement Recognition Responsibility Growth and advancement Hygiene Factors Company policy and administration Supervision Working conditions Interpersonal relations Salary, status and job security 10-14

15 COMPARISON of the THEORIES of MASLOW and HERZBERG Herzberg s Motivating Factors LG

16 THEORY X and THEORY Y McGregor s Theory X and Theory Y LG5 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

17 ASSUMPTIONS of THEORY X MANAGERS McGregor s Theory X and Theory Y LG5 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

18 ASSUMPTIONS of THEORY Y MANAGERS McGregor s Theory X and Theory Y LG5 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

19 THEORY Z Ouchi s Theory Z William Ouchi researched cultural differences between the U.S. (Type A) and Japan (Type J). LG5 Type J committed to the organization and group. Type A focused on the individual. Theory Z is the hybrid approach of Types A and J

20 THEORY Z Ouchi s Theory Z LG

21 GOAL-SETTING THEORY Goal-Setting Theory and Management by Objectives LG6 Goal-Setting Theory -- Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated

22 APPLYING GOAL-SETTING THEORY Goal-Setting Theory and Management by Objectives LG6 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

23 EXPECTANCY THEORY in MOTIVATION Meeting Employee Expectations: Expectancy Theory LG6 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

24 EXPECTANCY THEORY Meeting Employee Expectations: Expectancy Theory LG

25 NADLER & LAWLER S MODIFICATION Meeting Employee Expectations: Expectancy Theory LG6 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

26 USING REINFORCEMENT THEORY Reinforcing Employee Performance: Reinforcement Theory LG6 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

27 REINFORCEMENT THEORY Reinforcing Employee Performance: Reinforcement Theory LG

28 EQUITY THEORY Treating Employees Fairly: Equity Theory LG6 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

29 ENRICHING JOBS Motivation Through Job Enrichment LG7 Job Enrichment -- A motivational strategy that emphasizes motivating the worker through the job itself. Based on Herzberg s motivators, such as responsibility, achievement and recognition

30 KEY CHARACTERISTICS of WORK 1. Skill Variety: job demands different skills Motivation Through Job Enrichment LG7 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 10-30

31 TYPES of JOB ENRICHMENT Motivation Through Job Enrichment LG7 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

32 USING OPEN COMMUNICATION Motivating Through Open Communication LG7 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

33 BIG MOTIVATORS for SMALL BUSINESS (Spotlight on Small Business) Things like weekly trips to the movies and afterwork 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

34 RECOGNIZING GOOD WORK Recognizing a Job Well Done 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 LG

35 MOTIVATING EMPLOYEES ACROSS the GLOBE Motivating Employees Across the Globe LG8 Cultural differences make worker motivation a challenging task for global managers. High-Context cultures require relationships and group trust before performance. Low-Context cultures believe relationship building distracts from tasks

36 MOTIVATING ACROSS the GENERATIONS Motivating Employees Across Generations LG8 Baby Boomers ( ) - Experienced great economic prosperity, job security, optimism about their future. Generation X ( ) - Raised in dual-career families, attended day care, feeling of insecurity about jobs Generation Y or Millenials ( ) - Raised by indulgent parents, used to many comforts like computers and cell phones 10-36

37 GENERATION X in the WORKPLACE Motivating Employees Across Generations LG8 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

38 MILLENIALS in the WORKPLACE Motivating Employees Across Generations LG8 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