1. * * Chapter Ten Motivating Employees Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. * * INTRINSIC REWARDS Intrinsic Rewards -- Personal satisfaction felt for a job well done. Kinds of Intrinsic Rewards: The Value of Motivation  Pride in your performance  Sense of achievement 10-2

3. * * EXTRINSIC REWARDS Extrinsic Rewards -- Something given as a recognition of good work. Kinds of Extrinsic Rewards:  Pay Raises  Promotions  Awards The Value of Motivation 10-3

4. * * TAYLOR’S SCIENTIFIC MANAGEMENT Scientific Management -- Studying workers to determine the most efficient ways of doing things and then teaching those techniques. Three Key Elements to Increase Productivity 1. Time 2. Methods of Work 3. Rules of Work LG1 Frederick Taylor: The Father of Scientific Management 10-4

5. * * HAWTHORNE STUDIES: PURPOSE AND RESULTS Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. LG2 Elton Mayo and the Hawthorne Studies Researchers decided it was a human or psychological factor at play. Hawthorne Effect -- People act differently when they know they are being studied. 10-5

6. * * 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. LG3 Motivation and Maslow’s Hierarchy of Needs 10-6

7. * * HERZBERG’S MOTIVATING FACTORS Herzberg’s research centered on two questions: LG4 Herzberg’s Motivating Factors  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? 10-7

8. * * THEORY X and THEORY Y Douglas McGregor proposed managers had two different sets of assumptions concerning workers. Their attitudes about motivating workers was tied to these assumptions. McGregor called them Theory X and Theory Y. LG5 McGregor’s Theory X and Theory Y 10-8

9. * * THEORY Z William Ouchi researched cultural differences between the U.S. (Type A) and Japan (Type J). Type J committed to the organization and group. LG5 Ouchi’s Theory Z Type A focused on the individual. Theory Z is the hybrid approach of Types A and J. 10-9

10. * * EXPECTANCY THEORY in MOTIVATION Expectancy Theory -- The amount of effort employees exert on a specific task depends on their expectations of the outcome. Employees ask: Can I accomplish the task? What’s my reward? Is the reward worth the effort? Expectations can vary from person to person. LG6 Meeting Employee Expectations: Expectancy Theory 10-10

11. * * NADLER & LAWLER’S MODIFICATION Researchers Nadler and Lalwer modified expectancy theory and suggested five steps for managers: 1. Determine what rewards employees value. 2. Determine worker’s performance standard. 3. Make sure performance standards are attainable. 4. Tie rewards to performance. 5. Be sure employees feel rewards are adequate. LG6 Meeting Employee Expectations: Expectancy Theory 10-11

12. * * 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 is a way of trying to stop behavior by not responding to it. LG6 Reinforcing Employee Performance: Reinforcement Theory 10-12

13. * * EQUITY THEORY Equity Theory -- Employees try to maintain equity between inputs and outputs compared to others in similar positions. Workers often base perception of their outcomes to a specific person or group. Perceived inequities can lead to reduced quality and productivity, absenteeism even resignation. LG6 Treating Employees Fairly: Equity Theory 10-13

14. * * TYPES of JOB ENRICHMENT 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. LG7 Motivation Through Job Enrichment 10-14

15. * * 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. LG8 Motivating Employees Across the Globe Low-Context cultures believe relationship building distracts from tasks. 10-15

16. * * 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 Millenials (1980 – 2000)  Raised by indulgent parents, used to many comforts like computers and cell phones LG8 Motivating Employees Across Generations 10-16