1. Motivation, Leadership, and Teamwork8
Motivation, Leadership, and Teamwork
Better Business
3rd Edition
Solomon (Contributing Editor) · Poatsy · Martin
chapter
© 2014 Pearson Education, Inc.

2. Motivation: Lighting the Fire
Good managers motivate others to reach their best
Motivated workers feel great about work
Workers who feel good, produce more
There are multiple motivation theories
What is Motivation?
The individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes us to behave in a particular way
Morale
An employee’s feelings about his or her job, superiors, and the firm itself
Why is Morale Important?
High morale results from the satisfaction of needs or as a result of the job and leads to dedication, loyalty, and the desire to do the job well
Low morale leads to shoddy work, absenteeism, and high turnover rates
Learning Objective 1: How do motivation and work environment encourage “flow”?
Motivation is a complex mental state and plays a key role in determining the success of a business and the satisfaction of its employees. Some people need immediate gratification or success in order to stay motivated. Others are able to postpone short-term success in pursuit of long-term gains. Is getting a lot of praise or money for a job important to you? Or are you driven more by the values of the place where you work, your beliefs, or in doing a job well?
Psychologist Mihaly Csikszentmihalyi refers to the state of rapt attention as flow. A flow state happens when you are completely involved and focused on what you are doing. Often people produce their best work, make the best use of their skills, and feel the most pleasure when they are in such a flow state.
Organizational psychology is the study of how to create a workplace that fosters motivation and productivity among employees.
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3. Motivation in the Workplace
73 percent of U.S. employees are not engaged in or are actively disengaged from their work
SAS Institute in North Carolina fosters a creative environment by:
Keeping employees intellectually engaged
Removing distractions
Making managers responsible for sparking creativity
Eliminating arbitrary distinctions between administrative “suits” and more abstract “creatives”
Engaging customers as creative partners
The Q12 is a survey of employee engagement administered by the Gallup Organization. It classifies employees as “engaged,” “not engaged,” or “actively disengaged.” According to the survey’s 2007 results, 73 percent of U.S. employees are not engaged or are actively disengaged in their work. This statistic makes it clear that encouraging a sense of flow in the workplace is a significant challenge.
The text tells how SAS, a $1 billion business software company located in North Carolina, with an incredibly low employee turnover rate of just 3 to 5 percent, fosters a creative environment:
It keeps employees intellectually engaged.
It removes distractions so employees can do their best work.
It makes managers responsible for sparking creativity.
It has managers eliminate the arbitrary distinctions between administrative “suits” and more abstract “creatives.”
It engages customers as creative partners.
It provides perks such as day care, medical facilities, and a family cafeteria.
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4. Benefits of Keeping Employees Motivated
Workers are more productive
Workers are more creative
Retention levels are higher
Companies benefit financially
Both employers and employees benefit from a motivated workforce.
Employers find workers are more productive, more creative, and have much better retention levels when care is taken to provide a motivating environment and tasks.
Employees often spend the majority of their waking day at their jobs, and their quality of life and overall happiness are enhanced when they feel excited about the work they contribute.
According to Gallup’s calculations, the cost to the U.S. economy from disengaged employees is up to $300 billion a year in reduced productivity.
© 2014 Pearson Education, Inc.

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Reinforcement Theory
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 (ex. Raise, “Pat on the Back”)
Negative reinforcement: strengthens desired behavior by eliminating an undesirable task or situation (ex. Assigning clean-up duty to worker’s who don’t meet their tasks)
Punishment: an undesired consequence of undesirable behavior (ex. Reprimands, job termination, reduced pay)
Extinction: eliminate undesirable behavior by not responding to behavior (ex. Not sending an response to an employee who constantly s with you complaints)
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6. Theories of Motivation: Maslow’s Hierarchy of Needs
A sequence of human needs (personal requirements) in the order of their importance
Theory of motivation that states workers are only motivated until their most basic human needs (personal requirements) are met first
Physiological needs – Basic survival needs (food, water, shelter)
Safety needs – The need to feel safe and secure at work (job security, health insurance, safe working conditions)
Social needs – The need to feel love, accepted, and part of the group (working relationships, social networks)
Esteem needs – The need for respect, recognition, and a sense of our own accomplishment and worth (personal accomplishments, promotions, honors and awards)
Self-actualization needs – The need to grow and develop and become all that we are capable of being. This is the hardest need to identify (learning a new skill, starting a new career, or becoming “the best there is” at their craft
How to use this theory?
Businesses have to satisfy basic needs first (which they usually do) before they can satisfy workers’ higher order needs (this is the challenge).
Businesses must identify their workers’ needs that are not being met, and work to try and help fulfill that worker need so they’ll be motivated to work
© 2011 Pearson Education, Inc.

7. Theories of Motivation: Maslow’s Hierarchy of Needs
Learning Objective 2: What are the main theories of motivation, and how are they applied to the workforce?
Abraham Maslow was an early researcher in the area of human motivation and published the book The Hierarchy of Needs in 1954.
Maslow suggests that humans have a hierarchy of needs, and that primary needs are met first before higher-level needs are addressed.
The first needs to be met are inborn, basic needs—termed physiological needs—such as the need for water, food, sleep, and reproduction. Before we can think about anything else, we must meet our basic physiological needs.
Once our physiological needs have been met, people strive to satisfy safety needs. This includes establishing safe and stable places to live and work.
Once the lower two need categories have been met, we consider belonging needs—such as the need to be part of a group and feel accepted by others.
Esteem needs are satisfied by the mastery of a skill and by recognition from others.
At the top are self-actualization needs, including the desire to maximize your own potential through education, self-fulfillment, and spirituality.
Different people find themselves at different places in the hierarchy and so their motivations may be different.
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8. Theories of Motivation: McClelland’s “Three Needs” Theory
Need for achievement
Need for affiliation
Need for power
Psychologist David McClelland’s “three needs” theory suggests there are three main motivators:
The need for achievement—to accomplish something difficult on your own.
The need for affiliation—to form close personal relationships.
The need for power—to be able to control the behavior of others.
Which need we try to satisfy depends on many factors, including cultural background.
An individual may have multiple needs, but one tends to be dominant over the others.
In a workplace, this theory could account for differences in motivation among workers.
© 2014 Pearson Education, Inc.

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Theories of Motivation: Herzberg’s Motivator-Hygiene (aka Tow-Factor Theory)
Two factors that influence a person’s motivation:
Motivators
Recognition
Responsibility
Promotion
Job growth
Hygiene Factors
Safe working environment
Proper pay and benefits
Relationships with co-workers
In 1959, psychologist Frederick Herzberg proposed a theory for job satisfaction called the motivator-hygiene theory (or two-factor theory). According to the theory, two factors influence a person’s motivation.
Hygiene factors are factors such as a safe working environment, proper pay and benefits, and positive relationships with co-workers. People rarely notice hygiene factors if they are present. However, if hygiene factors are absent or inadequate, people tend to be dissatisfied. But their presence does not motivate employees.
The second set of factors in Herzberg’s theory are motivator factors. These factors include a sense of responsibility, recognition, promotion, and job growth. The presence of one or more motivators will make employees work harder, but employees will not quit in their absence.
Understanding this Theory:
Hygiene factors lead to job dissatisfaction. If Hygiene factors are not present, employees tend to get dissatisfied. If Hygiene factors are present, employees tend to ignore these factors and take them for granted.
Motivation factors lead to job satisfaction. If motivational factors are present, employees tend to get motivated and it can lead to long-term job satisfaction.
© 2014 Pearson Education, Inc.

10. Applying Motivational Theories
Theories of human motivation have given rise to a number of different approaches to motivate people in the workplace.
In the workplace, there are some external motivating factors that managers can control. These motivators, called extrinsic motivators, include such things as pay, promotion, and verbal praise.
Other factors, called intrinsic motivators, are outside a manager’s control because they are internal to each individual employee. These motivating influences are based on a person’s interest in their work and their sense of purpose or value from the work.
Different people have different balances between intrinsic and extrinsic motivators. Managers must be sensitive to what will work for each individual.
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Theory X and Theory Y
In 1960, the social psychologist Douglas McGregor proposed the Theory X and Theory Y models.
The Theory X model suggests a view of humans as inherently disliking work and wanting to avoid it. Theory X management suggests employees have to be coerced and controlled by management in order to be productive. This leads to an authoritarian, hard-line management style.
The Theory Y model suggests that people are naturally motivated and will direct themselves to work for the aims of the organization if they are satisfied with their jobs. Theory Y managers believe that, on average, people will accept and seek out responsibility. Such managers have a participative, gentler style of management that involves the participation of many.
Theory X and Y would not work equally well in any given situation. Theory X style is often seen in large-scale operations like mass manufacturing. In the knowledge industry, in which there is a mix of professionals working together to solve complex problems, Theory Y is more likely.
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12. © 2014 Pearson Education, Inc.
Theory X and Theory Y
In 1960, the social psychologist Douglas McGregor proposed the Theory X and Theory Y models.
The Theory X model suggests a view of humans as inherently disliking work and wanting to avoid it. Theory X management suggests employees have to be coerced and controlled by management in order to be productive. This leads to an authoritarian, hard-line management style.
The Theory Y model suggests that people are naturally motivated and will direct themselves to work for the aims of the organization if they are satisfied with their jobs. Theory Y managers believe that, on average, people will accept and seek out responsibility. Such managers have a participative, gentler style of management that involves the participation of many.
© 2014 Pearson Education, Inc.

13. Vroom’s Expectancy Theory
Motivation = V * E * I
Expectancy Theory
Motivation depends on how much we want something and on how likely we think we are to get it.
Implies 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
Ex. Offering company trips for sales goals, monetary bonuses for meeting goals
In 1964, Victor Vroom proposed a theory named expectancy theory, which has been developed by other researchers since. Expectancy theory suggests an individual’s motivation can be described by the relationship between three psychological forces.
Motivation = Expectancy * Instrumentality * Valence
Expectancy is the idea that a person’s effort has an appreciable effect on a situation’s result- whether it is a success or failure. Expectancy answers the question: Will effort on my part impact the result I get?
Instrumentality refers to the idea that the outcome of a situation is related to rewards or punishment. Instrumentality answers the question: Will the result provide any reward (either an extrinsic rewarded if that’s important or an intrinsic “good feeling”)?
Valence is the importance that the individual places on the expected outcome of a situation. Valence answers the question: Is the anticipated reward important to me?
High motivation: (My work actually affects the outcome)*(There’s a good chance I’ll get a reward)* (If it works out, it’ll be a big reward!).
Low motivation: (Nothing I do is going to impact the situation)*(Even if it does go well I’ll get a reward if this works out)*(The only reward from this is incredibly small)
The Vroom formula can be easily applied to individuals to better understand what motivates each person.
© 2014 Pearson Education, Inc.

14. Evolution of Motivational Theories in Business
Scientific management
Industrial psychology (1920s and 1930s)
Frank and Lillian Gilbreath
The Hawthorne Effect
Learning Objective 3: How have motivational theories and industrial psychology changed the work environment since the early 20th century?
Researchers like Frederick Taylor began to study how to manage people optimally. In 1911, Taylor published his findings in The Principles of Scientific Management.
He encouraged managers to use scientific study to determine the best methods to complete tasks and then to train employees in these methods to increase productivity.
By the 1920s and 1930s, a field of academic study called industrial psychology was created to further address these issues. The objective of industrial psychology is to understand scientifically how to manage employees and work optimally.
Other researchers, such as Frank and Lillian Gilbreath, used photography to study employee work patterns and then analyzed these patterns to increase productivity. For example, they used time-motion studies to analyze factory jobs and then train workers in the precise sequence of steps that would make them most productive.
Another famous study of the period was Harvard professor Elton Mayo’s work at the Hawthorne plant of the Western Electric Company in Illinois.
The study ran from 1927 to 1932 and examined physical influences on the workplace (such as lighting and humidity) as well as psychological aspects (such as group pressure and working hours).
The major finding was that regardless of the experimental changes made, the production of the workers improved.
Researchers concluded that the increase in productivity was based on the attention the workers were receiving. The Hawthorne effect is used to describe the increase in productivity caused by workers being given special attention.
After World War II, the direction of research in management theory shifted from management of an individual worker toward management of the entire organization, its structure, and policies.
© 2014 Pearson Education, Inc.

15. Motivational Theories for the Modern Workplace
New ideas are still being developed in organizational and industrial psychology
- Uncertainty management theory
Fairness becomes more important in uncertain circumstances
Perceived unfairness hurts job satisfaction and performance
- Sociocracy
The interests of everyone are served equally
The fields of organizational psychology and industrial psychology are still very active, and new theories of management practices continue to appear.
One recent theory is uncertainty management theory, which suggests that when people face increased uncertainty, fairness becomes more important to them. They have very strong reactions to actions and situations they judge to be unfair, which in turn influences their job satisfaction and performance.
Another theory for motivating and organizing a modern workplace is based on the idea of sociocracy. Sociocracy is a system of organization and management in which the interests of everyone are served equally. In a sociocracy, all members of the organization are involved in decision making, and the final decision must be acceptable to all.
This fosters innovation, creativity, and a sense of belongingness among employees.
© 2014 Pearson Education, Inc.

16. Leadership: The Fourth Function of Management
Leading is the process of influencing, motivating, and enabling others to contribute to the success and effectiveness of an organization by achieving its goals.
Four common types of leaders:
Democratic
Autocratic
Affiliative (Laissez-Faire)
Visionary
Learning Objective 4: What are the various identifiable leadership styles and traits, and how do they affect business leadership?
Famed management researcher and author Peter Drucker once noted that “management is doing things right; leadership is doing the right things.”
Both leaders and managers strive to motivate people, but they have different scopes. Typically, managers spend their time making sure that specific tasks are done well and are completed on time.
The leadership of the company, on the other hand, is focused on setting the long-term vision and strategies the company will need to survive and flourish. Truly great leaders define a vision, foster agreement across the company, and then implement the strategy.
Democratic: delegating authority and involving employees in the decision making
Autocratic: a leader who takes complete charge
Affiliative: more advisory in style, encouraging employees to contribute ideas rather than specifically directing their tasks
Visionary: leaders that are able to inspire others, believe in their own vision, and move people toward a shared dream
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Styles of Leadership
Naturally, many different leadership styles exist.
Four of the most common styles include:
Visionary
Coaching
Affiliative
Democratic
Which one leaders employ depends on a complex mix of their own personality, the corporate culture, the type of company, the employees they manage, and the given situation.
Often, a recognized leader knows how to shift between these styles as different situations present themselves.
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Traits of Leadership
Challenge the process: not always accepting conventional beliefs and practices as the only way to accomplish tasks
Inspire a shared vision: motivate people to care about the corporate goals or an important mission
Model the way: by serving as a living example of the ideals in which they are asking their employees to share
Exhibit emotional intelligence: Most successful leaders possess a high degree of emotional intelligence, which is the ability to understand both one’s own and other’ emotions.
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19. Teamwork: The Advantages
In good, working teams, there’s agreement on the objectives at hand and on the best approach to solve the problem.
Teammates depend on one another’s ideas and efforts to complete tasks successfully.
There is a sense of accountability, and members are committed to one another’s success.
Learning Objective 5: What are the best ways to create, manage, and participate in teams?
In good, working teams, there’s agreement on the objectives at hand and on the best approach to solve the problem.
Teammates depend on one other’s ideas and efforts to complete tasks successfully.
There is a sense of accountability, and members are committed to one another’s success.
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20. Teamwork: The Challenges
Teamwork does not always bring more creative output.
Groupthink: If a team is not carefully selected this behavior of “wanting to fit in” can lead to narrow-mindedness
Different generations in the workforce may have different styles and expectations.
Some people suggest that teamwork does not always bring more creative output. A 2006 study conducted by Barry Staw of Berkeley found that team members often want to “fit in” rather than “stand out,” and true creativity and original thinking is largely dependent on one’s willingness to stand out and take risks.
Selecting teams for optimum performance is another challenge. If a team is not carefully selected, a type of narrow-mindedness can emerge. This is the phenomenon referred to as groupthink. People who are from similar backgrounds and from similar sectors of the company tend to have a set of familiar ideas and work with the same set of unspoken assumptions. These may lead to rejecting different ideas without fair examination.
In the 21st century, another challenge to successful workplace teams is the fact that we now have a wide mix of generations in the workforce. In fact, it is possible for there to be three or even four generations assigned to a single team. People from separate generations have grown up with social and educational experiences that are so different that they take on distinct styles in the workplace.
In their book Millennial Rising, researchers William Strauss and Neil Howe discuss the three dominant generations in the workplace today:
Baby Boomers, those born between 1943 and 1960, are “the veterans”
Gen-Xers, those born between 1961 and 1981, are “independent thinkers” who value family life
Millennials, those born between 1982 and 2002, also value work–life balance but also have very high expectations for achievement in their careers.
Strauss predicts, “Young workers will demand that employers adjust to the needs of workers who wish to build careers and families at the same time and to lead lower-stress lives than their parents did. Older employees will admire their skills, confidence, and team spirit, but will question their creativity and toughness.”
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21. Best Practices for Teams
Group flow occurs when a group knows how to work together so that each individual member can achieve flow
Characteristics of such a setting
- Creative spatial arrangements
- Playground design
- Focus on the product’s target group
- Visualization & prototyping
Group flow occurs when a group knows how to work together so that each individual member can achieve flow. The characteristics of such a setting include:
Creative spatial arrangements: Pinning ideas on the walls and using large charts to combine ideas from the entire group tend to lead to open consideration of ideas.
Playground design: Creating a “safe space” to bring out ideas that normally one might just keep to himself or herself.
Constant focus on the target group for the product.
Heavy use of visualization and prototyping to construct early models. These are then refined to make models more efficient.
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22. How Managers Can Form the Best Teams
Some important considerations in forming a team
- Size
- Time
- Status
Some important aspects a manager should consider in forming a team are:
Size: A team that is too large may struggle with cohesiveness. At the same time, a large group can offer the benefit of diverse perspectives.
Time: Some teams may be formulated to work on a specific problem or project within a short time frame, while others may work together for longer time periods on everyday tasks.
Status: A team that is formally created by a company may be required to provide progress reports and updates, and they often have access to company resources. Less formal teams may need to take initiative in maintaining lines of communication.
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Belbin’s Team Roles
According to business writer and theorist R. M. Belbin, effective teams are made up of people with diverse skills, talents, and points of view. Team members’ respective skills and talents should complement one another in order for the team to perform at the optimum level. A balance of people who embody different “team roles” is key to the success of a team.
Considering both these roles and the personality traits of potential members can be helpful when designing teams.
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24. The Effect of Technology on the Design of Teams
Virtual teams
Needed because of increased globalization
Tools aid implementation
Conference calls
Video conferencing
Live broadcasting
Web casts
In a virtual team, members are located in different physical locations but work together to achieve a goal.
The need for virtual teams grows out of the increased globalization of business.
Familiar tools like conference calls and have evolved to include video conferencing and live broadcasting of key meetings and events over the Web. Web casts can now support interactive participation of the viewing audience.
The promise of much higher-speed Internet transfer is also being explored. The potential to connect students and workers from many parts of the world may lead to exciting new possibilities for synergy.
The best practices for creating strong virtual teams are emerging as virtual teams become a more accepted and useful teaming solution.
Most successful virtual teams include some face-to-face meeting time periodically.
Very few virtual teams are 100 percent virtual.
Although technology allows teams to communicate without ever meeting face-to-face, it is still important to have the group occasionally meet with each other in the same space to build social connections.
There can be communication delays from working across time zones or using as a primary mode of communication.
Establishing team rules, such as agreeing to respond to messages within a certain window of time or initiating global office hours, can minimize these problems.  
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25. Stephen Covey’s 7 Habits of Highly Effective People
Be proactive
Begin with the end in mind
Put first things first
Think win–win
Seek first to understand, then to be understood
Synergize
Sharpen the saw
Stephen Covey’s 7 habits of highly effective people are as follows:
Be proactive: Don’t wait for opportunities to come to you. Take responsibility for your life and understand that your life’s choices are just that—yours.
Begin with the end in mind: Envision what you want to achieve so you have a clear destination in mind.
Put first things first: Focus on your highest priorities (and say no sometimes if you need to).
Think win–win: How can a situation come out positive for all those involved? Work to achieve this.
Seek first to understand, then to be understood: Listen, then talk. And listen for the true and deeper meaning when you are listening.
Synergize: Use creative cooperation and the idea that “two heads are better than one.”
Sharpen the saw: Take time to update your skills and to recharge your batteries. Keep physical, social/emotional, mental, and spiritual aspects of your life in balance.
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