Chapter 9 Motivating Satisfying and Leading employees BUSINESS

Chapter 9: Motivating, Satisfying , and Leading employees BUSINESS ESSENTIALS, 6 TH EDITION EBERT 1

LEARNING OBJECTIVES After reading this chapter, you should be able to: 1. Identify and discuss the basic forms of behavior that employees exhibit in organizations. 2. Describe the nature and importance of individual differences among employees. 3. Explain the meaning and importance of psychological contracts and the person-job fit in the workplace. 4. Identify and summarize the most important models of employee motivation. 5. Describe the strategies used by organizations to improve job satisfaction and employee motivation. 2

What’s in It for Me? • By understanding the basic elements of this chapter, you’ll be better able to: – Understand your own feelings toward your work from the perspective of an employee – Understand the feelings of others toward their work from the perspective of a boss or owner © 2009 Pearson Education, Inc. 3

Forms of Employee Behavior • Employee Behavior – The pattern of actions by the members of an organization that directly or indirectly influences the organization's effectiveness – For example roundtable, listening to employees in a monthly “bring your own lunch” hour in a small business can open a platform for a discussion of employee behavior. © 2009 Pearson Education, Inc. 4

What manager wants from employees Every manager wants to have employees who are satisfied and highly motivated because such employees exhibit positive behaviors, such as persisting even in the face of difficulties, being involved in continuous learning and improvement. . 5

Discussion Please make a list of five actions of employees or management that could impact an organization’s effectiveness/performance. Answers will vary but could include coming late to work, spreading rumors, sharing openly about issues that arise. 6

Forms of Employee Behavior (cont’d) • Performance Behaviors – The total set of work-related behaviors that the organization expects employees to display. E. g. , how university expect professors to teach. / job description • Organizational Citizenship – The behavior of individuals who make a positive overall contribution to the organization • Counterproductive Behaviors – Behaviors that detract from, rather than contribute to, organizational performance © 2009 Pearson Education, Inc. 7

Question What are some typical performance behaviors expected of you as a university student? 8

Counterproductive Behaviors • Absenteeism – Results in direct costs to a business • Turnover – Occurs when people quit their jobs • Other Behaviors – Theft – Sabotage/disrupt – Discriminatory harassment – Workplace aggression and violence © 2009 Pearson Education, Inc. 9

Discussion Why worker sometimes commit Workplace aggression and violence? 10

Individual Differences Among Employees • Individual Differences – Personal attributes that vary from one person to another—physical, psychological, and emotional. E. g. , of some attributes: Stability, confidence, thoughtfulness, imagination, disruptiveness, rebelliousness, ambition, laziness • Personality at Work – Personality—the relatively stable set of psychological attributes that distinguish one person from another © 2009 Pearson Education, Inc. 11

Individual Differences among Employees (cont’d) • The “Big Five” Personality Traits • Agreeableness: ability to get along with others. • Conscientiousness: organized, systematic, careful, thorough, responsible, and self-disciplined. • Emotionality : tend to be positive or negative in their outlook and behaviors toward others. • Extraversion=sociable and open to establishing new relationships • Openness: willing to listen to new ideas and to change their own ideas © 2009 Pearson Education, Inc. 12

Individual Differences among Employees (cont’d) • Emotional Intelligence or Emotional Quotient/ proportion. – It refers to the extent to which people: are selfaware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills. • Attitudes – Our beliefs and feelings about specific ideas, situations, or other people • Attitudes Are important because they are the mechanism through which we express our feelings © 2009 Pearson Education, Inc. 13

Teamwork In your teams, please choose one element of emotional intelligence and discuss how your own ability to apply that skill in dealing with students. 14

Some Attitudes at Work includes • Job Satisfaction (Morale) – The extent to which people have positive attitudes toward their jobs • What are the factors influence job satisfaction? © 2009 Pearson Education, Inc. 15

Some Attitudes at Work includes • Job Organizational Commitment A. An individual’s identification/recognition with the organization and its mission. Commitment to org. mission and objectives and culture. Less committed employees are more likely to see themselves as outsiders. © 2009 Pearson Education, Inc. 16

Some Attitudes at Work includes • How to Promote Satisfaction and Commitment 1. 2. 3. 4. 5. Treat employees fairly Provide rewards and job security Allow employee participation Design interesting jobs Maintain psychological contracts © 2009 Pearson Education, Inc. 17

Matching People and Jobs • Psychological Contract – The overall set of expectations held by employees and the organization regarding what employees will contribute to the organization and what the organization will provide in return. It is not written on paper. (job description and specifications help for that). © 2009 Pearson Education, Inc. 18

Matching People and Jobs • Psychological Contract 1. Contributions of employees - What does each employee expect to contribute to the organization? 2. Inducements/ benefits to employees – What will the organization provide to each employee in return? © 2009 Pearson Education, Inc. 19

FIGURE 8. 1 The Psychological Contract © 2009 Pearson Education, Inc. 20

Matching People and Jobs (cont’d) • Person-Job Fit – The extent to which a person’s contributions and the organization’s inducements match one another • Good person-job fit can result in higher performance and more positive attitudes • A poor person-job fit can have the opposite effects © 2009 Pearson Education, Inc. 21

Basic Motivation Concepts and Theories • Motivation – The set of forces that cause people to behave in certain ways • Approaches to Human Relations or Human Resources with motivation: 1. Classical theory and scientific management 2. Early behavioral theory 3. Contemporary motivational theories © 2009 Pearson Education, Inc. 22

Classical Theory • Scientific Management (Frederick Taylor) – Paying workers more motivates them to produce more – The theory focuses on Industrial engineering: Analyzing jobs to find better ways to perform them makes goods cheaper, creates higher profits, and allows the firm to better pay and motivate its workers © 2009 Pearson Education, Inc. 23

Early Behavioral Theory • Hawthorne Studies, in 1925 – Original purpose was to examine the relationship between changes in the physical environment and worker output (productivity). – Hawthorne effect: Worker productivity rose in response to any management actions that workers interpreted as special attention. © 2009 Pearson Education, Inc. 24

Early Behavioral Theory • Other Major Motivation Theories – Human Resources Model (Theories X and Y): – Maslow’s Hierarchy of Needs Model – Herzberg’s Two-Factor Theory © 2009 Pearson Education, Inc. 25

Theory X and Theory Y Developed by Douglas Mac. Gregor, This model states that managers have two very different views of employees and hence ways of managing them. 26

TABLE 8. 1 Theory X and Theory Y © 2009 Pearson Education, Inc. 27

Teamwork please choose either Theory X or Theory Y. Please describe the management style that would be used under each theory? 28

Maslow’s Hierarchy of Needs Authored by Abraham Maslow, this theory states that people cannot move up the pyramid of motivation until they have met the needs of the level below. 29

Maslow’s Hierarchy of Needs Let’s look at these levels: 1. The basic needs are psychological needs. like making sure they have food, clothing, and water, which are all very basic. 2. Security needs can only be addressed once one has something to protect, like a house and a family. 3. The social needs ﺍﻻﺟﺘﻤﺎﻋﻴﺔ mean forming relationships with others. 30

Maslow’s Hierarchy of Needs 4. Esteem/respect needs ﺍﻟﺘﻘﺪﻳﺮ deal with the status a person chooses to have or aspire toward. E. g. , driving the best car, or a higher job title 5. Finally, self- actualization ﺗﺤﻘﻴﻖ ﺍﻟﺬﺍﺕ needs refer to making a difference within a company, a community and finding peace with one’s life. E. g. , self-fulfillment on a personal level or a challenging job. 31

Maslow’s Hierarchy © 2009 Pearson Education, Inc. 32

The Two-Factor Theory to Frederick Herzberg He concluded that job satisfaction or dissatisfaction relies on two factors: 1. The first are Motivation Factors, which include: 1. Achievement. 2. Recognition. 3. The work itself. 4. Responsibility. 5. Advancement and growth. 33

The Two-Factor Theory to Frederick Herzberg He concluded that job satisfaction or dissatisfaction relies on two factors: 2. The second are hygiene factors. These include: 1. Supervisors. 2. Working conditions. 3. Interpersonal relations. 4. Pay and security. 5. Company policies and administration. 34

The Two-Factor Theory to Frederick Herzberg A. Overall, motivation factors are directly related to the work that employees actually perform, while hygiene factors refer to the environment in which they perform it 35

The Two-Factor Theory to Frederick Herzberg found that addressing hygiene factors will move employees attitudes from dissatisfaction to no dissatisfaction, but will not impact satisfaction. On the other hand, addressing motivation factors moves employees from a state of no satisfaction toward satisfaction. 36

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Contemporary Motivation Theory • Expectancy Theory – Suggests that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance —or expectancy—of obtaining – Helps explain why some people do not work as hard as they can when their salaries are based purely on seniority. © 2009 Pearson Education, Inc. 38

Contemporary Motivation Theory • Expectancy Theory © 2009 Pearson Education, Inc. 39

Contemporary Motivation Theory (cont’d) • Equity Theory , ﻻ ﺩﺍﻋﻲ – Employees evaluate their treatment relative to the treatment of others • Inputs: Employee contributions to their jobs • Outputs: What employees receive in return – The perceived ratio of contribution to return determines perceived equity © 2009 Pearson Education, Inc. 40

Strategies and Techniques for Enhancing Motivation • Reinforcement/Behavior Modification • Management by Objectives • Participative Management and Empowerment • Team Management • Job Enrichment and Job Redesign • Modified Work Schedules © 2009 Pearson Education, Inc. 41

Reinforcement/Behavior Modification Theory: management identify in advance what they expect from employees and they punish or reward accordingly Punishment When negative consequences are attached directly to undesirable behavior Positive Reinforcement When rewards are tied directly to performance © 2009 Pearson Education, Inc. 42

Reinforcement Managers generally prefer positive reinforcement because it contributes to good employer-employee relationships. It generally works best when people are learning new behaviors, new skills, or new jobs. 43

MBO Let’s examine the process of MBO: 1. First, collaborative goal-setting and planning is done. 2. Second, the organizational goals and plans are communicated to employees through a meeting. • In the meeting, management should work with employees to set verifiable goals and clear plans for implementation. • Counseling should be provided to employees. • Resources are identified at this point. 44

MBO Let’s examine the process of MBO: 3. Third, a periodic review is done with employees. 4. Finally, the employee is evaluated against the goals and alterations, which allows the employee to provide information for the next set of collaborative goal-setting and planning. 45

Management by Objectives (MBO): Collaborative Goal-setting Collaborative Goal Setting and Planning Communicating Organizational Goals and Plans Periodic Review Evaluation Meeting Setting Verifiable Goals and Clear Plans Counseling Identifying Resources © 2009 Pearson Education, Inc. 46

Teamwork Please choose a small business or store with which you are familiar. Then please prepare sample collaborative goal. One of you will take the role of management and the other will take the role of the employee. Conduct this as a role play. 47

Participative Management, Empowerment and Team Management • Increasing job satisfaction by encouraging participation, they are given voice how to do their jobs. © 2009 Pearson Education, Inc. 48

Participative Management, Empowerment and Team Management • Team management: represents an increasing trend in managing projects and people. – For example, in smaller, more flexible organizations make decisions more quickly and efficiently © 2009 Pearson Education, Inc. 49

Teamwork A. These teams take a variety of forms: • Problem solving teams • Project teams (also called venture teams) e. g. , new products. • Transnational teams, which are composed of members from many different countries A. Virtual teams, using a combination of telecommunications and information technologies. 50

Job Enrichment and Job Redesign • Job Enrichment – Adding one or more motivating factors to job activities (such as increasing responsibility or recognition, job rotation). © 2009 Pearson Education, Inc. 51

Job Enrichment and Job Redesign • Job Redesign: restructuring work – Designing a better fit between workers and their jobs. It is implemented through 3 ways: 1. Combining tasks: enlarging job. 2. Forming natural work groups: People who do different jobs on the same project are good candidates for natural workgroups. These groups help employees get an overview of their jobs and see their importance in the total structure. © 2009 Pearson Education, Inc. 52

Job Enrichment and Job Redesign • Job Redesign: restructuring work 3. Establishing client relationships: letting employees interact with customer. This approach increases the variety of a job. It also gives workers greater feelings of control over their jobs and more feedback about their performance. © 2009 Pearson Education, Inc. 53

Modified Work Schedules Four types: 1 - Work-Share Programs (Job Sharing): experimenting different working hours. Job sharing when e. g. , 2 part-time employees share a full-time job. –Pros: Employees appreciate attention to their needs, company can reduce turnover and save on benefits –Cons: Job-share employees generally receive fewer benefits and may be the first to be laid off © 2009 Pearson Education, Inc. 54

Modified Work Schedules 2 - Flex-time Programs/Alternative Workplace Strategies – Allow people to choose their work hours by adjusting a standard work schedule. E. g. , working 40 hours a week but choosing when. 3 - Telecommuting – Performing a job away from standard office settings. E. g. , working from home. © 2009 Pearson Education, Inc. 55

Modified Work Schedules 4 - Compressed Workweeks In the compressed workweek , employees work fewer days per week, but more hours on the days they do work. The results 40 hours per week. © 2009 Pearson Education, Inc. 56

Modified Work Schedules and Alternative Workplaces • Disadvantages • Advantages – More satisfied, committed employees – Reduced stress – Improved productivity – Less congestion/jamming – Challenging to coordinate and manage – Poor fit for some workers – Lack of network and coworker contact – Lack of management belief © 2009 Pearson Education, Inc. 57

Review Identify and discuss the basic forms of behavior that employees exhibit in organizations. 1 - Performance behaviors 2 - Counterproductive behaviors 58

Review Explain the meaning and importance of psychological contracts and the person-job fit in the workplace. 59