Chapter 9 Motivating Satisfying and Leading Employees Power

Key Topics • Psychological contracts in the workplace • Job satisfaction and employee morale

Psychological Contract: A Set of Employment Expectations • Contributions: Ø What does each employee

Satisfied Employees Are More Productive and More Committed • Low Turnover: Ø A low

Raising Morale Is a High Priority When Unemployment Is Low Copyright © 2005 Prentice

Highly Motivated Employees Are Critical to Business Success • Motivation Ø The set of

The Human Resources Model: Theory X and Theory Y (Mc. Gregor) • Theory X

Equity Theory • Employees evaluate their treatment relative to the treatment of others Ø

Strategies for Enhancing Job Satisfaction and Morale • Reinforcement/behavior modification • Management by objectives

Reinforcement/Behavior Modification Theory Punishment When negative consequences are attached directly to undesirable behavior. Positive

Management by Objectives (MBO): Collaborative Goal-setting Collaborative Goal Setting and Planning Communicating Organizational Goals

Participative Management and Empowerment • Increasing job satisfaction by encouraging participation • Team management

Job Enrichment and Job Redesign • Job Enrichment: Ø Adding one or more motivating

Modified Work Schedules • Work share programs • Flextime programs and alternative workplace strategies

Evaluating Modified Schedules and Alternative Workplaces • Advantages Ø More satisfied, committed employees Ø

Managerial Leadership The process of motivating others to work to meet specific objectives Copyright

Managerial Styles Autocratic Style Democratic Style Free-rein Style Contingency Approach The appropriate style in

Motivation and Leadership in the 21 st Century • Motivation Ø Security and pay

Chapter Review • Describe psychological contracts • Discuss the importance of job satisfaction and

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Key Topics • Psychological contracts in the workplace • Job satisfaction and employee morale • Theories of employee motivation • Job satisfaction and employee motivation • Managerial styles of leadership Copyright © 2005 Prentice Hall, Inc. All rights reserved. 2

Psychological Contract: A Set of Employment Expectations • Contributions: Ø What does each employee expect to contribute to the organization? • Inducements: Ø What will the organization provide to each employee in return? Copyright © 2005 Prentice Hall, Inc. All rights reserved. 3

Satisfied Employees Are More Productive and More Committed • Low Turnover: Ø A low percentage of employees leave each year Copyright © 2005 Prentice Hall, Inc. All rights reserved. TURNOVER Ø An overall positive employee attitude toward the workplace MORALE • High Morale: TURNOVER Ø Degree of enjoyment employees derive from doing their jobs MORALE • Job Satisfaction: 4

Highly Motivated Employees Are Critical to Business Success • Motivation Ø The set of forces that cause people to behave in certain ways • Classical • Behavior: The Hawthorne Studies • Contemporary Copyright © 2005 Prentice Hall, Inc. All rights reserved. 6

The Human Resources Model: Theory X and Theory Y (Mc. Gregor) • Theory X • Theory Y Ø People are lazy. Ø People are energetic. Ø People lack ambition and dislike responsibility. Ø People are ambitious and seek responsibility. Ø People are self-centered. Ø People can be selfless. Ø People resist change. Ø People want to contribute to business growth and change. Ø People are gullible and not very bright. Ø People are intelligent. Copyright © 2005 Prentice Hall, Inc. All rights reserved. Table 9– 1 7

Equity Theory • Employees evaluate their treatment relative to the treatment of others Ø Inputs: Employee contributions to their jobs Ø Outputs: What employees receive in return • The perceived ratio of contribution to return determines perceived equity. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 8

Strategies for Enhancing Job Satisfaction and Morale • Reinforcement/behavior modification • Management by objectives • Participative management and empowerment • Job enrichment and job redesign • Modified work schedules Copyright © 2005 Prentice Hall, Inc. All rights reserved. 9

Reinforcement/Behavior Modification Theory Punishment When negative consequences are attached directly to undesirable behavior. Positive Reinforcement When rewards are tied directly to performance. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10

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 Copyright © 2005 Prentice Hall, Inc. All rights reserved. Figure 9– 5 11

Participative Management and Empowerment • Increasing job satisfaction by encouraging participation • Team management represents a growing trend. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12

Job Enrichment and Job Redesign • Job Enrichment: Ø Adding one or more motivating factors to job activities • Job Redesign: Ø Designing a better fit between workers and their jobs v Combining tasks v Forming natural work groups v Establishing client relationships Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13

Evaluating Modified Schedules and Alternative Workplaces • Advantages Ø More satisfied, committed employees Ø Less congestion Copyright © 2005 Prentice Hall, Inc. All rights reserved. • Disadvantages Ø Challenging to coordinate and manage Ø Poor fit for some workers 15

Managerial Styles Autocratic Style Democratic Style Free-rein Style Contingency Approach The appropriate style in any situation is contingent on the unique elements of that situation Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17

Motivation and Leadership in the 21 st Century • Motivation Ø Security and pay are no longer enough • Leadership Ø “Coach” mentality Ø Diversity Ø Flexibility Copyright © 2005 Prentice Hall, Inc. All rights reserved. 18

Chapter Review • Describe psychological contracts • Discuss the importance of job satisfaction and employee morale • Summarize the most important theories of employee motivation • Describe strategies to improve job satisfaction and employee motivation • Discuss different managerial styles Copyright © 2005 Prentice Hall, Inc. All rights reserved. 19