Chapter 10 Motivating Employees Mc GrawHillIrwin Copyright 2013

Chapter 10 Motivating Employees Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter Ten LEARNING GOALS 1. Explain Taylor’s theory of scientific management. 2. Describe the Hawthorne studies and their significance to management. 3. Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation. 4. Distinguish between the motivators and hygiene factors identified by Herzberg. 5. Differentiate among Theory X, Theory Y, and Theory Z. 10 -2

Chapter Ten LEARNING GOALS 6. Explain the key principles of goal-setting, expectancy, reinforcement, and equity theories. 7. Show managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. 8. Show managers personalize motivation strategies to appeal to employees across the globe and across generations. 10 -3

The Value of Motivation INTRINSIC REWARDS • Intrinsic Rewards -- Personal satisfaction you feel when you perform well and complete goals. • Examples of Intrinsic Rewards: - Pride in your performance - Sense of achievement 10 -4

The Value of Motivation EXTRINSIC REWARDS • Extrinsic Rewards -- Something given as a recognition of good work. • Kinds of Extrinsic Rewards: - Pay Raises - Promotions - Awards 10 -5

The Value of Motivation FRINGE BENEFITS Perks Offered to Employees at Top 50 Employers Source: Bloomberg Business. Week, www. businessweek. com, accessed June 2011. 10 -6

Frederick Taylor: The Father of Scientific Management LG 1 TAYLOR’S SCIENTIFIC MANAGEMENT • Scientific Management -- Studying workers to find the most efficient ways of doing things and then teaching people those techniques. • Three Key Elements to Increase Productivity 1. Time 2. Methods of Work 3. Rules of Work 10 -7

Frederick Taylor: The Father of Scientific Management LG 1 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. 10 -8

Frederick Taylor: The Father of Scientific Management TIME-MOTION STUDIES LG 1 • Time-Motion Studies: Studies of which tasks must be performed to complete a job and the time needed to do each task. • Frank and Lillian Gilbreth: Engineers who used Taylor’s work in a study of bricklaying, developed… • Principle of Motion Economy: Every job can be broken down into a series of elementary motions 10 -9

Frederick Taylor: The Father of Scientific Management TAYLOR and UPS LG 1 • UPS drivers work under strict rules and work requirements. • How to get out of their trucks: - Right foot first • How fast to walk: - 3 ft per second • How to hold their keys: - Teeth up, third finger 10 -10

Elton Mayo and the Hawthorne Studies LG 2 HAWTHORNE STUDIES: PURPOSE AND RESULTS • Researchers studied worker efficiency under different levels of light. (Elton Mayo, Harvard) • 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. 10 -11

Motivation and Maslow’s Hierarchy of Needs LG 3 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. 10 -12

Motivation and Maslow’s Hierarchy of Needs LG 3 MASLOW’S HIERARCHY of NEEDS 10 -13

Herzberg’s Motivating Factors LG 4 HERZBERG’S MOTIVATING FACTORS • Herzberg’s research centered on two questions: - 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 -14

Herzberg’s Motivating Factors JOB CONTENT LG 4 • 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. 10 -15

Herzberg’s Motivating Factors JOB ENVIRONMENT LG 4 • Job environment factors maintained satisfaction, but did not motivate employees. • Hygiene Factors: Job factors that can cause dissatisfaction if missing BUT do not necessarily motivate employees if increased. 10 -16

Herzberg’s Motivating Factors LG 4 HERZBERG’S MOTIVATORS and HYGIENE 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 -17

Herzberg’s Motivating Factors LG 4 COMPARISON of the THEORIES of MASLOW and HERZBERG 10 -18

Mc. Gregor’s Theory X and Theory Y THEORY X and THEORY Y LG 5 • Douglas Mc. Gregor proposed managers had two different sets of assumptions concerning workers. • Their attitudes about motivating workers were tied to these assumptions. • Mc. Gregor called them Theory X and Theory Y. 10 -19

Mc. Gregor’s Theory X and Theory Y LG 5 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. • Primary motivators are fear and money. 10 -20

Mc. Gregor’s Theory X and Theory Y LG 5 ASSUMPTIONS of THEORY Y MANAGERS • People like work, it’s a part of life. • Workers seek goals to which they are committed. • 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. 10 -21

Ouchi’s Theory Z THEORY Z LG 5 • William Ouchi researched cultural differences between the U. S. (Type A) and Japan (Type J). • 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. 10 -22

Goal-Setting Theory and Management by Objectives GOAL-SETTING THEORY LG 6 • Goal-Setting Theory -Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions. 10 -23

Goal-Setting Theory and Management by Objectives LG 6 MANAGEMENT BY OBJECTIVESAPPLYING 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. (Peter Drucker) • Managers formulate goals in cooperation with everyone in the organization. • Managers must monitor results and reward achievement. http: //www. businessweek. com/stories/2005 -11 -27/the-man-who-invented-management 10 -24

Goal-Setting Theory and Management by Objectives ORGANIZATIONS USING MBO LG 6 • Toyota Motor Company • Emerson Electric Company • U. S. Department of Defense 10 -25

Meeting Employee Expectations: Expectancy Theory LG 6 EXPECTANCY THEORY in MOTIVATION • Expectancy Theory: The amount of effort employees exert on a specific task depends on their expectations of the outcome. (Victor Vroom) • Employees ask: - Can I accomplish the task? - What’s my reward? - Is the reward worth the effort? • Expectations can vary from person to person. 10 -26

Meeting Employee Expectations: Expectancy Theory LG 6 NADLER & LAWLER’S MODIFICATION • Researchers Nadler and Lawler modified Vroom’s expectancy theory and suggested five steps for managers to improve employee performance: 1. Determine what rewards employees value. 2. Determine workers’ performance standard. 3. Make sure performance standards are attainable. 4. Tie rewards to performance. 5. Be sure employees feel rewards are adequate. 10 -27

Reinforcing Employee Performance: Reinforcement Theory LG 6 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: A way to stop behavior by not responding to it. 10 -28

Treating Employees Fairly: Equity Theory EQUITY THEORY LG 6 • Equity Theory: Employees try to maintain equity between inputs and outputs compared to others in similar positions. (employee perception of fairness) • Workers often base perception of their outcomes on a specific person or group. • Perceived inequities can lead to reduced quality and productivity, absenteeism, even resignation. 10 -29

Motivation Through Job Enrichment ENRICHING JOBS LG 7 • 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. Baccarat Factory Worker 10 -30

Motivation Through Job Enrichment LG 7 5 KEY CHARACTERISTICS of WORK 1. Skill Variety 2. Task Identity 3. Task Significance 4. Autonomy 5. Feedback Baccarat Factory Worker 10 -31

Motivation Through Job Enrichment TYPES of JOB ENRICHMENT LG 7 • 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. 10 -32

Motivating Through Open Communication USING OPEN COMMUNICATION LG 7 • 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. 10 -33

KEEPING the LINES OPEN (Social Media in Business) • Businesses can no longer limit themselves to traditional intranets. • Businesses must communicate with employees, not to them. • Employees expect 24/7 access to what they need with what they have (Smartphone, i. Pad, or notebook). 10 -34

WHEN TOO MUCH is TOO MUCH 24/7 Access Isn’t Always a Good Thing • Schedule correspondence: - Don’t check email whenever it arrives, schedule times to check. • Pick one task: - Having too much open at once takes attention away from singular tasks. • Don’t answer the phone: - Don’t be afraid of voicemail. • Maintain human contact: - Don’t look at your computer or phone while someone is at your desk. Keep attention (and respect!) on them. Source: Entrepreneur, December 2010. 10 -35

Recognizing a Job Well Done RECOGNIZING GOOD WORK LG 7 • Raises are not the only ways to recognize an employee’s performance. Recognition includes: - 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 10 -36

Recognizing a Job Well Done WORK WELL with OTHERS LG 7 Keys for Productive Teamwork • Have a common understanding of your task. • Clarify roles and responsibilities. • Set rules. • Get to know each other. • Communicate openly and often. 10 -37

Motivating Employees Across the Globe LG 8 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. • Low-Context cultures believe relationship building distracts from tasks. 10 -38

IMPORTANCE of CULTURAL COMPENTENCY (Reaching Beyond Our Borders) • A better understanding of cultures helps managers increase customer satisfaction and loyalty. • It’s not just knowing other languages, it’s knowing what’s proper. • UPS operates in over 200 countries successfully by emphasizing diversity. 10 -39

Motivating Employees Across Generations LG 8 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 Millennials (1980 – 2000) - Raised by indulgent parents, used to many comforts like computers and cell phones 10 -40

Motivating Employees Across Generations LG 8 GENERATION X in the WORKPLACE • Desire economic security but focus more on career security 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. 10 -41

Motivating Employees Across Generations LG 8 MILLENNIALS 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. 10 -42

Motivating Employees Across Generations LG 8 MILLENNIALS and the RECESSION • The recession hurt younger workers more deeply than other workers. • In July 2010, the unemployment rate was 15. 3 percent for those aged 20 to 24, while the overall unemployment rate was 9. 5 percent. 10 -43

Motivating Employees Across Generations LG 8 COMMUNICATION ACROSS the GENERATIONS • Baby Boomers (1946 – 1964) - Prefer meetings and conference calls. • Generation X (1965 – 1980) - Prefer email and will choose meetings only if there are no other options. • Generation Y or Millennials (1980 – 2000) - Prefer to use technology to communicate, particularly through social media. 10 -44

Progress Assessment IN CONCLUSION • Why is it important to understand motivation? • What are several steps firms can take to increase internal communications and thus motivation? • What problems may emerge when firms try to implement participative management? • Why is it important to adjust motivational styles to individual employees? Are there any general principles of motivation that today’s managers should follow? 10 -45