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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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* 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
*
* 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
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* 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
*
* 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
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* 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
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* 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
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* 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
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* 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
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* 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
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* 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
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* 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
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* 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
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* 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
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* 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
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* 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
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* 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