FERRELL HIRT FERRELL 3 e Mc GrawHillIrwin Copyright

FERRELL | HIRT | FERRELL 3 e Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

PART 4 • CHAPTER 9 Motivating the Workforce • CHAPTER 10 Managing Human Resources 9 -2

HUMAN RELATIONS Ø The study of the behavior of individuals and groups in organizational settings Motivation § An inner drive that directs a person’s behavior towards a goal or satisfaction of a need 9 -3

MOTIVATING THE WORKFORCE § § What motivates employees to perform? How can managers boost morale? How do you maximize worker performance? How can you encourage creativity and innovation? 9 -4

THE BASIC MODEL OF MOTIVATION When a need exists, an individual engages in goaldirected behavior designed to satisfy that need 9 -5

MORALE An employee’s attitude toward his or her job, employer and colleagues Morale is a prominent aspect of human relations 9 -6

MORALE High Morale § Higher productivity, returns to shareholders, worker productivity and loyalty § Lower absenteeism and employee turnover Low Morale § Contributes to absenteeism, high employee turnover and lack of commitment 9 -7

MORALE Morale Boosters ü Respect ü Involvement ü Appreciation ü Compensation ü Promotion ü Pleasant work environment ü Positive organizational culture 9 -8

REWARDS Intrinsic Rewards § The personal satisfaction and enjoyment you feel from attaining a goal § Feeling of accomplishment Extrinsic Rewards § Benefits and/or recognition you receive from someone else § Awards, benefits, pay increases Ø Intrinsic and extrinsic rewards both are important in motivating employees to contribute to business goals 9 -9

EMPLOYEE MOTIVATION • It can be difficult to motivate employees • Motivation is difficult to define and varies from person to person • Motivation conventions exist that are dedicated to suggesting ways to motivate workers 9 -10

WORK/LIFE BALANCE Most employees are motivated by more than pay. . . 9 -11

CLASSIC THEORY OF MOTIVATION Early 20 th century Frederick W. Taylor & Lillian Gilbreth § Scientific focus on work tasks & productivity Money § Thought to be the sole motivator for workers Ø Satisfactory pay & job security motivate employees to work hard 9 -12

HAWTHORNE STUDIES 1924 -1932 at the Hawthorne Works Plant § Elton Mayo • Postulated that physical conditions in workplace stimulate productivity § Findings show social and psychological factors influence productivity/morale Ø Marks beginning of concern for human relations in the workplace 9 -13

THEORIES OF EMPLOYEE MOTIVATION § § § § Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory Mc. Gregor’s Theory X and Theory Y Theory Z Variations on Theory Z Equity Theory Expectancy Theory 9 -14

MASLOW’S HIERARCHY OF NEEDS 9 -15

MASLOW’S HIERARCHY OF NEEDS § Physiological Needs § Basic needs for food, water, shelter § Security Needs § Protection from physical and economic harm § Social Needs § Need for love, companionship § Esteem Needs § Self-respect and respect from others § Self-actualization § Maximizing one’s full potential 9 -16

HERZBERG’S TWO-FACTOR THEORY Hygiene Factors § Focus on the work setting, not the content of the work • Wages, working conditions, company policies, job security Motivational Factors § Focus on content of the work itself • Achievement, recognition, involvement, responsibility, advancement 9 -17

MCGREGOR’S THEORY X AND THEORY Y Theory X Ø Considered the traditional management view § Assumes that workers üGenerally dislike work üMust be forced to do their jobs üAverage worker avoids responsibility and prefers direction 9 -18

MCGREGOR’S THEORY X AND THEORY Y Theory Y Ø Considered the humanistic management view § Assumes üExpending physical effort is natural (people like to work) üPeople will assume responsibility and self-control to achieve objectives (workers want to satisfy social, esteem and self-actualization needs) üPeople will commit to objectives once they realize there will be a personal reward üMost organizations do not adequately utilize imagination, ingenuity, creativity and intelligence of workers 9 -19

THEORY Z A management philosophy that stresses employee participation in all aspects of company decision making Ø Incorporates many Japanese ideas about management (trust and intimacy) adapted for use in the U. S. 9 -20

VARIATIONS ON THEORY Z § § Quality Circles (or Quality-Assurance Teams) Participative Management Employee Involvement Self-Directed Work Teams (SDWT) Ø All strive to give employees more control over their jobs Ø Make them responsible for outcomes 9 -21

EQUITY THEORY § The assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchange § Equal pay for equal work § Employees who do not feel equitably treated may slack off on the job or steal to level the field 9 -22

EXPECTANCY THEORY § Assumes that motivation depends not only on how much a person wants something, but also on how likely he or she is to get it § Someone who wants something and has a reasonable expectation to achieve it will be highly motivated 9 -23

MOTIVATING EMPLOYEES Behavior Modification Ø Changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself § Reward § Punishment 9 -24

STRATEGIES FOR MOTIVATING EMPLOYEES Job Enlargement Ø Addition of more tasks to a job instead of treating each task as separate § Seeks to counteract the boredom of division of labor § Many small firms use job enlargement § Requires training employees in new tasks 9 -25

STRATEGIES FOR MOTIVATING EMPLOYEES Job Rotation Ø Movement of employees from one job to another to relieve the boredom often associated with job specialization § The drawback is that it does not totally eliminate risk of boredom 9 -26

STRATEGIES FOR MOTIVATING EMPLOYEES Job Enrichment Ø Incorporating motivational factors (achievement, recognition, responsibility) into the job § Idea developed by Herzberg in the 1950 s § Gives employees feedback on their performance § Rewards for good performance 9 -27

VALUES AND MOTIVATION Many employees are motivated by working for a company that shares their values § Patagonia üLoyal, dedicated employees üLess than 4% employee turnover üCore values embrace reducing waste, recycling, environmentalism üPsychological success üGood health üGood work/life balance üEnjoying your job tasks üMoney is not main motivator 9 -28

STRATEGIES FOR MOTIVATING EMPLOYEES Flexible scheduling strategies § Flextime • Allows employees to choose their start and end times § Compressed Workweek • 40 hours in a 4 -day workweek § Job Sharing • Occurs when two people share the same job 9 -29

IMPORTANCE OF MOTIVATIONAL STRATEGIES ü Fosters employee loyalty ü Boosts productivity ü Influences on pay, promotion, job design ü Nature of relationships ü Nature of the job itself ü Characteristics of the organization 9 -30