Presentation on theme: "INTRODUCTION TO BUSINESS"— Presentation transcript:
1 INTRODUCTION TO BUSINESS CHAPTER 10Motivating Employees
2 Final Exam Time? Place? What to bring? Which chapters? How to study – ?
3 Chapter Outline How can motivation increase the value of a firm? Theories on motivation.How can a firm motivate disgruntled employees?How can a firm enhance job satisfaction and thereby enhance motivation?
4 The Value of Motivation Motivation is as important as the proper skills.Work environment should motivate employees.
5 TheoriesMotivation of employees is influenced by job satisfaction–the degree to which employees are satisfied with their jobsHawthorne Studies EquityMaslow ReinforcementHerzberg (+ and -)X,Y,ZExpectancy
6 Group Activity 1. Name of Theory 2. Definition: 10 words or less 3. At least 2 colors used4. PICTURE expressing main point of theory
7 Theories on Motivation Job satisfaction: the degree to which employees are satisfied with their jobs.Hawthorne StudiesMaslow’s Hierarchy of Needs: needs are ranked in five general categories. Once a given category of needs is achieved, people become motivated to reach the next category.
8 Theories on Motivation Summary of the Hawthorne Studies
9 Theories on Motivation Maslow’s Hierarchy of Needs
10 Theories on Motivation Physiological needs: the basic requirements for survival.Safety needs: job security and safe working conditions.Social needs: the need to be part of a group.Esteem needs: respect, prestige, and recognition.Self-actualization: the need to fully reach one’s potential.
11 Theories on Motivation Herzberg’s Job Satisfaction StudyHygiene factors: work-related factors that can fulfill basic needs and prevent job dissatisfaction.Motivational factors: work-related factors that can lead to job satisfaction and motivate employees.McGregor’s Theory X and Theory YTheory Z
13 Theories on Motivation Managers commonly attempt various methods of motivating their employees, such as offering small rewards and recognition to employees who have achieved high performance. Recognition can increase employee job satisfaction.
16 Theories on Motivation Summary of McGregor’s Theories X and Y
17 Theories on Motivation Expectancy TheoryHolds that an employee’s efforts are influenced by the expected outcome (reward) for those efforts.Equity TheorySuggests that compensation should be equitable or in proportion to each employee’s contribution.
18 Theories on Motivation Example of Equity Theory
19 Theories on Motivation Reinforcement Theory: suggests that reinforcement can influence behavior.Positive reinforcement motivates employees by providing rewards for high performance.Negative reinforcement motivates employees by encouraging them to behave in a manner that avoids unfavorable consequences.
20 Theories on Motivation Summary of Reinforcement Theory
21 Theories on Motivation Motivational Guidelines Offered by TheoriesEmployees commonly compare their compensation and perceived contribution with others.Even if employees are offered high compensation, they will not necessarily be very satisfied.Employees may be motivated if they believe that it is possible to achieve a performance level that will result in a desirable reward.
22 Motivating Disgruntled Employees A firm may not be able to motivate some employees, regardless of its efforts.If the disgruntled employees are not motivated, they may seek employment elsewhere.Firms should force disgruntled employees to do their jobs and should fire them if they are unwilling to perform.
23 Motivating Disgruntled Employees Comparison of Motivation Theories
24 How Firms Can Enhance Job Satisfaction and Motivation Job Enrichment Programs: programs designed to increase the job satisfaction of employees.Adequate Compensation ProgramMerit system: a compensation system that allocates raises according to performance (merit).
25 How Firms Can Enhance Job Satisfaction and Motivation Across-the-board system: a compensation system that allocates similar raises to all employees.Incentive plans: provide employees with various forms of compensation if they meet specific performance goals.Examples of Compensation Programs
26 How Firms Can Enhance Job Satisfaction and Motivation Developing a Proper Compensation PlanAlign the compensation plan with business goalsAlign compensation with specific employee goalsEstablish achievable goals for employeesAllow employee input on the compensation plan
27 How Firms Can Enhance Job Satisfaction and Motivation Job SecurityFlexible Work ScheduleFlextime programs: programs that allow for a more flexible work schedule.Compressed workweek: compresses the workload into fewer days per week.Job sharing: two or more persons share a particular work schedule.
28 How Firms Can Enhance Job Satisfaction and Motivation Employee Involvement ProgramsJob enlargement: a program to expand (enlarge) the jobs assigned to employees.Job rotation: a program that allows a set of employees to periodically rotate their job assignments.Empowerment and Participative ManagementEmpowerment: allowing employees the power to make more decisions
29 How Firms Can Enhance Job Satisfaction and Motivation Participative management: employees are allowed to participate in various decisions made by their supervisors or others.Management by objectives (MBO): allows employees to participate in setting their goals and determining the manner in which they complete their tasks.Teamwork: a group of employees with varied job positions have the responsibility to achieve a specific goal.
30 How Firms Can Enhance Job Satisfaction and Motivation When employees work in teams, they may enjoy their work to a greater degree. In addition, teams may lead to more social interaction, which can also increase job satisfaction.
31 How Firms Can Enhance Job Satisfaction and Motivation Open-book management: a form of employee involvement that educates employees on their contribution to the firm and enables them to periodically assess their own performance levels.Comparison of Methods Used to Enhance Job SatisfactionFirms That Achieve the Highest Job Satisfaction Level
33 Why Study Business? It’s everywhere Determine major It’s required To get an “A”To get a jobMoneyGlobal issuesSAVE THE WORLDTo have a challengeBecause I like itPassionTo own my own businessFamily thought I shouldGeneral understanding of principles
34 BA 101 Course Objectives The creation and organization of a business; Basic vocabulary and understanding of each functional area within a business (marketing, finance, accounting, production, distribution, and human resources);The relationship among these functional areas; Team building and small group development; andThe global dimensions of business.
35 Goals for this Class Know where you stand (earn A’s) Groups “get along” & RESPECT each otherFairness (please ask when/if you don’t understand grading)Ignite PASSION for BusinessAll 5’s (standing ovation optional)Learn and have FUN
36 Course Evaluation Volunteer to collect and take to SBA 560? Use #2 pencil or blue/black inkScale – bad is 1, good is 5 (furthest edge of paper)Please do add commentsAfter evals. I will return (in seven minutes) and give the last quiz ….Hopefully we will have time for a Q&A for final project questions and elevator pitchesThanks for a GREAT class!