10 Motivating Satisfying Employees and Teams Copyright 2017

10 Motivating Satisfying Employees and Teams Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

What Is Motivation? § § What is Motivation? • The individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes us to behave in a particular way Morale • An employee’s feelings about his or her job, superiors, and about the firm itself • High morale results from the satisfaction of needs or as a result of the job and leads to dedication, loyalty, and the desire to do the job well • Low morale leads to shoddy work, absenteeism, and high turnover rates Ø Good managers motivate others to reach their best Ø Motivated workers feel great about work Ø Workers who feel good, produce more Ø There are multiple motivation theories and techniques (including tapping into employee’s intrinsic and extrinsic rewards) Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 • 2

Scientific Management § Scientific management: the application of scientific principles to management of work and workers § Frederick W. Taylor • Observed that workers “soldiered” because they feared losing their jobs if there was no work • Led to development of scientific management • Ideas also lead to the piece-rate system • Determine the job output to expect • Choose and train the best person for each job • Cooperate with workers Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Taylor’s Piece-Rate System Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Hawthorne Studies § Objective: to determine the effects of the work environment on employee productivity § 1 st experiment: productivity increased for both the experimental and control groups after lighting was varied in the workplace § 2 nd experiment: workers under a piece-rate system produced at constant rates § Conclusions: human factors were responsible • Workers had a sense of involvement by participating in the experiment • Groups influenced output through workers’ desire for acceptance § Human relations movement: Employees who are happy and satisfied are motivated to perform better Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Reinforcement § Reinforcement Theory: Behavior that is rewarded is likely to be repeated, whereas behavior that is punished is less likely to recur • Reinforcement: an action that follows directly from a particular behavior • Types of reinforcement § Positive reinforcement: strengthens desired behavior by providing a reward § Negative reinforcement: strengthens desired behavior by eliminating an undesirable task or situation § Punishment: an undesired consequence of undesirable behavior § Extinction: no response to undesirable behavior in order to discourage its occurrence Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Behavior Modification § Behavior modification • A systematic program of reinforcement to encourage desirable behavior § Steps in behavior modification: • Identify the target behavior to be changed • Measure existing levels of the behavior • Reward employees who exhibit the desired behavior • Measure the target behavior to check for desired change § If no change, consider changing reward system § If change has occurred, maintain reinforcement Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Maslow’s Hierarchy of Needs • 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. • • • Physiological needs – Basic survival needs (food, water, shelter) Safety needs – The need to feel safe and secure at work (job security, health insurance, safe working conditions) Social needs – The need to feel love, accepted, and part of the group (working relationships, social networks) Esteem needs – The need for respect, recognition, and a sense of our own accomplishment and worth (personal accomplishments, promotions, honors and awards) Self-actualization needs – The need to grow and develop and become all that we are capable of being. This is the hardest need to identify (learning a new skill, starting a new career, or becoming “the best there is” at their craft How to use this theory? • Needs that have already been met do not motivate. • If a need is filled, another higher-level need emerges. Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Maslow’s Hierarchy of Needs Dissatisfaction Satisfaction Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Herzberg’s Motivation–Hygiene Theory § Satisfaction and dissatisfaction are separate and distinct dimensions § Motivation factors • Job factors that increase motivation but whose absence does not necessarily result in dissatisfaction § Hygiene factors • Job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in higher levels of motivation Understanding this Theory: 1) Hygiene factors lead to job dissatisfaction. If Hygiene factors are not present, employees tend to get dissatisfied. If Hygiene factors are present, employees tend to ignore these factors and take them for granted. 2) Motivation factors lead to job satisfaction. If motivational factors are present, employees tend to get motivated and it can lead to long-term job satisfaction. Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Herzberg’s Motivation–Hygiene Factors Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Comparison of Maslow’s and Herzberg’s Theories of Motivation Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Other Historical Perspectives on Motivation § Douglas Mc. Gregor • Sets of assumptions about managerial attitudes and beliefs regarding worker behavior § Theory X • Generally consistent with Taylor’s scientific management • Employees dislike work and will function only in a controlled work environment § Theory Y • Generally consistent with the human relations movement • Employees accept responsibility and work toward organizational goals if they will also achieve personal rewards Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Theory X and Theory Y Concepts advanced by Douglas Mc. Gregor Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Theory Z § Some middle ground between Ouchi’s Type A (American) and Type J (Japanese) practices is best for American business § Emphasis is on participative decision making with a view of the organization as a family Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Equity Theory § People are motivated to obtain and preserve equitable treatment for themselves § Equity: the distribution of rewards in direct proportion to the contribution of each employee to the organization § Workers compare their own input-to-outcome (reward) ratios to their perception of others’ § Workers who perceive an inequity may • Decrease their inputs • Try to increase outcome (ask for a raise) • Try to get the comparison other to increase inputs or receive decreased outcomes • Leave the work situation (quit) • Switch to a different comparison other Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Expectancy Theory § Motivation depends on how much we want something and on how likely we think we are to get it § Implies that managers must recognize that • Employees work for a variety of reasons • The reasons, or expected outcomes, may change over time • It is necessary to show employees how they can attain the outcomes they desire Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Vroom’s Theory Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 •

Goal-Setting Theory § Employees are motivated to achieve goals they and their managers establish together § Goals should be very specific, moderately difficult, and ones that the employee will be committed to achieve § Rewards should be tied directly to goals achievement Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Key Motivation Techniques § It takes more than a generous salary to motivate employees § Companies are trying to motivate employees by satisfying less tangible needs § Simple, low or no cost approaches such as: • • Celebrate birthdays and other important events Nominations for a formal award program Support flexible work schedules Publicly post thank you letters from customers Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Management by Objectives (MBO) § Motivation technique in which managers and employees collaborate in setting goals § Primary purpose is to clarify the roles employees are expected to play in reaching the organization’s goals § Increases employee motivation by empowering them with an active role in goal-setting and performance evaluation Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Management by Objectives: Advantages and Disadvantages Actively involves employees § Improves communication § Employees feel like an important part of the organization § Periodic review enhances control § Disadvantages Doesn’t work if the process doesn’t begin at the top of the organization § Can result in excessive paperwork § Some managers assign goals instead of collaborating on creating them § Goals should be quantifiable § Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Job Enrichment § Job enrichment • Provides employees with more variety and responsibility in their jobs § Job enlargement • The expansion of a worker’s assignments to include additional but similar tasks § Job redesign • A type of job enrichment in which work is restructured to cultivate the worker-job match Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Flextime § A system in which employees set their own work hours within employer-determined limits § Typically, there are two bands of time: • Core time—when all employees are expected to be at work • Flexible time—when employees may choose whether to be at work § Benefits • Employees’ sense of independence and autonomy is motivating • Employees with enough time to deal with nonwork issues are more productive and satisfied § Drawbacks • Supervisors’ jobs are complicated by having employees who come and go at different times • Employees without flextime may resent coworkers who have it Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Part-Time Work and Job Sharing § Part-time work • Permanent employment in which individuals work less than a standard work week • Disadvantage: often does not provide the benefits that come with a full-time position § Job sharing • An arrangement whereby two people share one fulltime position • Companies can save on expenses by reducing benefits and avoiding employee turnover • Employees gain flexibility but may lose benefits • Sharing can be difficult if work is not easily divisible or if two people cannot work well together Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Telecommuting § Working at home all the time or for a portion of the work week § Advantages • • • Increased employee productivity Lower real estate and travel costs Reduced absenteeism and turnover Increased work/life balance and improved morale Access to additional labor pools § Disadvantages • • Feelings of isolation Putting in longer hours Distractions at home Difficulty monitoring productivity Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Employee Empowerment § Making employees more involved in their jobs by increasing their participation in decision making § Management must be involved to set expectations, communicate standards, institute periodic evaluations, guarantee follow-up § Benefits • • Increased job satisfaction Improved job performance Higher self-esteem Increased organizational commitment § Obstacles • • Management resistance Workers’ distrust of management Insufficient training Poor communication between management and employees Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Employee Ownership § Employees own the company they work for by virtue of being stockholders § Directly reward employees for success § Benefits • Considerable employee incentive • Increased employee involvement and commitment § Obstacles • Problems between management and employees can still occur Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Teams and Teamwork § Two or more workers operating as a coordinated unit to accomplish a specific task or goal § Types of teams: • • • Problem-Solving Virtuoso Self-Managed Cross-Functional Virtual § Stages of team development: • • • Forming Storming Norming Performing Adjourning Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Advantages and Disadvantages of Self-Managed Teams Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Roles Within a Team § Roles within a team • • Task-specialist role Socio-emotional role Dual role Nonparticipant role § Team cohesiveness: For a team to be successful, members must learn how to resolve and manage conflict Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Team Conflict § Team conflict and how to resolve it • Middle ground resolution satisfies each party to some extent § Benefits and limitations of teams • Reduces turnover and costs, increases production, quality, customer service, job satisfaction • Reorganizing into teams can be stressful and time consuming with no guarantee it will develop effectively Copyright © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.