Chapter Eleven Motivating and Satisfying Employees What Is

Chapter Eleven Motivating and Satisfying Employees

What Is Motivation? Think about a time you were truly motivated to work hard. • What was the goal at the end of the hard work? • Was there ever a time when you were asked to work hard and you did not? • What was the difference? Copyright © Houghton Mifflin Company. All rights reserved. 11 - 2

Companies that get it right • http: //money. cnn. com/magazines/fortun e/bestcompanies/2007/full_list/ Copyright © Houghton Mifflin Company. All rights reserved. 11 - 3

Motivaiton • The the personal “force” that causes us to behave in a particular way • Morale – An employee’s feelings about his or her job and 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 and loyalty – Low morale leads to shoddy work, absenteeism, and high turnover rates Copyright © Houghton Mifflin Company. All rights reserved. 11 - 4

This chapter covers: • Motivation Research • Motivation Techniques Copyright © Houghton Mifflin Company. All rights reserved. 11 - 5

The Motivation Research • Historical views on Motivation • late 1800’s Scientific Method – Fredrick Taylor’s piece-rate system • • • 1927 - 1932 Hawthorne 1960 - 1970 Maslow’s Hierarchy of Needs Late 1950’s Herzberg’s Motivation-Hygiene Theory Mc. Gregor’s Theory X and Theory Y Ouchi’s Theory Z Reinforcement Theory • Contemporary views on Motivation • Equity • Expectancy • Goal Setting Copyright © Houghton Mifflin Company. All rights reserved. 11 - 6

Historical Perspectives on Motivation • Scientific Management – The application of scientific principles to the management of work and workers – Frederick W. Taylor • Late 1800’s • Observed “soldiering” by workers who feared losing their jobs if there were no work • Job should be broken into separate tasks • Management determines the best way and the expected output • Management chooses and trains the best-suited person • Management cooperates with workers • Piece-rate or quota system (pay per unit of output) is based on the belief that people work only for money Copyright © Houghton Mifflin Company. All rights reserved. 11 - 7

Taylor’s Piece-Rate System • Workers who exceeded their quota were rewarded by being paid at a higher rate per piece for all the pieces they produced Copyright © Houghton Mifflin Company. All rights reserved. 11 - 8

Historical Perspectives on Motivation (cont’d) • The Hawthorne Studies – 1927 - 1932 – Objective: to determine the effects of the work environment on employee productivity – Experiments were conducted at a light factory that varied the amount of light on 2 groups of workers. – 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 © Houghton Mifflin Company. All rights reserved. 11 - 9

Historical Perspectives on Motivation (cont’d) • Maslow’s Hierarchy of Needs – 1960 - 1970 – A sequence of human needs (personal requirements) in the order of their importance • Physiological needs—survival (food, shelter, clothing, sleep) – My performance improves when I am offered a cash bonus • Safety needs—physical and emotional safety (benefits, safe working conditions) The best thing an employer can do for me is to provide stable employment and job security. Copyright © Houghton Mifflin Company. All rights reserved. 11 - 10

Maslow’s Hierarchy of Needs (con’t) • Social needs—love and affection and a sense of belonging (with coworkers, family, and friends) I like a supervisor who works hard to develop a friendly working atmosphere. • Esteem needs—respect, recognition, and a sense of our own accomplishment and worth It means a lot to me to be recognized for a job well done. • Self-actualization needs—to grow and develop and become all that we are capable of being The jobs I enjoy the most are those that allow me to be creative. Copyright © Houghton Mifflin Company. All rights reserved. 11 - 11

Maslow’s Hierarchy of Needs Copyright © Houghton Mifflin Company. All rights reserved. 11 - 12

Historical Perspectives on Motivation (cont’d) • Herzberg’s Motivation-Hygiene Theory – Satisfaction and dissatisfaction are separate and distinct dimensions – Motivation factors (Satisfiers) • Job factors that increase motivation but whose absence does not necessarily result in dissatisfaction – Hygiene factors (Dissatisfiers) • Job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in higher levels of motivation. Copyright © Houghton Mifflin Company. All rights reserved. 11 - 13

Herzberg’s Motivation-Hygiene Theory Copyright © Houghton Mifflin Company. All rights reserved. 11 - 14

Historical Perspectives on Motivation (cont’d) • Douglas Mc. Gregor – Sets of assumptions about managerial attitudes and beliefs about worker behavior • Theory X – Employees dislike work and try to avoid it – Managers must coerce, control, and threaten employees • Theory Y – Employees accept responsibility and work toward organizational goals if they will also achieve personal rewards – Work is an important part of the employee’s life – People work toward goals they are committed to Copyright © Houghton Mifflin Company. All rights reserved. 11 - 15

Copyright © Houghton Mifflin Company. All rights reserved. 11 - 16

Historical Perspectives on Motivation (cont’d) • Theory Z – A study done involving American and Japanese firms. – Japan: Type J firms – – Lifetime employment Collective decision making Collective responsibility Holistic concern for employees – American: Type A firms – – Short term employment Individual decision making Individual responsibility Segmented concern for employees – Conclusion: The best place for firms is in the middle – Emphasis is on participative decision making with a view of the organization as a family Copyright © Houghton Mifflin Company. All rights reserved. 11 - 17

The Features of Theory Z Copyright © Houghton Mifflin Company. All rights reserved. 11 - 18

Historical Perspectives on Motivation (cont’d) • 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 undesirable consequence of undesirable behavior – Extinction: no response undesirable behavior in order to discourage its occurrence Copyright © Houghton Mifflin Company. All rights reserved. 11 - 19

Contemporary Views on Motivation • 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 © Houghton Mifflin Company. All rights reserved. 11 - 20

Contemporary Views on Motivation (cont’d) • Expectancy theory (Victor Vroom) – Motivation depends on how much we want something and on how likely we think we are to get it – Implications are 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 © Houghton Mifflin Company. All rights reserved. 11 - 21

Expectancy Theory Copyright © Houghton Mifflin Company. All rights reserved. 11 - 22

Contemporary Views on Motivation (cont’d) • 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 goal achievement Copyright © Houghton Mifflin Company. All rights reserved. 11 - 23

Key Motivation Techniques • • • MBO Job enrichment Behavior Modification Flextime Part-time Job sharing Telecommuting Employee empowerment Self-Managed work teams Employee ownership Copyright © Houghton Mifflin Company. All rights reserved. 11 - 24

The ultimate question… • What motivates you to work your hardest? Copyright © Houghton Mifflin Company. All rights reserved. 11 - 25

Key Motivation Techniques • Management by Objectives (MBO) – Managers and employees collaborate in setting goals Copyright © Houghton Mifflin Company. All rights reserved. 11 - 26

Key Motivation Techniques (cont’d) • 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 © Houghton Mifflin Company. All rights reserved. 11 - 27

Key Motivation Techniques (cont’d) • 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 © Houghton Mifflin Company. All rights reserved. 11 - 28

Key Motivation Techniques (cont’d) • 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 © Houghton Mifflin Company. All rights reserved. 11 - 29

Key Motivation Techniques (cont’d) • Part-Time Work – A permanent employment situation in which individuals work less than a standard workweek – Disadvantage: often does not provide the benefits that come with a full-time position • Job Sharing – An arrangement whereby two people share one full-time 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 © Houghton Mifflin Company. All rights reserved. 11 - 30

Key Motivation Techniques (cont’d) • 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 © Houghton Mifflin Company. All rights reserved. 11 - 31

Key Motivation Techniques (cont’d) • 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 © Houghton Mifflin Company. All rights reserved. 11 - 32

Key Motivation Techniques (cont’d) • Self-Managed Work Teams – Groups of employees with the authority and skills to manage themselves – Requirements • Organizational commitment to the team approach • Clear team objectives • Ongoing training and education • A compensation system (e. g. , gain sharing) for the accomplishment of team goals – Benefits • Higher employee morale • Increased productivity • Innovation – Challenges • Lack of support from managers and supervisors • Insufficient training • Initial costs of training and implementation Copyright © Houghton Mifflin Company. All rights reserved. 11 - 33

Key Motivation Techniques (cont’d) • Employee Ownership – Employees own the company they work for by virtue of being stockholders – Benefits • Employee incentive • Increase employee involvement and commitment Copyright © Houghton Mifflin Company. All rights reserved. 11 - 34