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Presentation on theme: "BUSINESS Ferrell Hirt Ferrell A CHANGING WORLD FHF EIGHTH EDITION"— Presentation transcript:

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2 4 Creating the Human Resource Advantage part
Chapter nine is devoted to the topic of motivating the workforce. This is an important topic for organizations to consider, because insufficient motivation will result in low productivity, high employee turnover, and an all-around less successful business. We will consider the early students that laid the groundwork for modern theories of motivation and describe strategies that managers use to motivate employees. CHAPTER 9 Motivating the Workforce CHAPTER 10 Managing Human Resources FHF 9-2

3 Human Relations 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 Human relations involves motivating employees to achieve organizational goals efficiently and effectively. Managers must be careful not to motivate employees to do the wrong things or for the wrong reasons (e.g. taking excessive risks or cutting corners to achieve performance-based rewards). HR has become an increasingly important field as businesses try to understand how to boost morale, maximize productivity and creativity and motivate diverse employees to be more effective. FHF 9-3

4 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? Motivation can be complicated– sometimes motivational factors will encourage employees to take excessive risks or engage in ethical misconduct in order to be rewarded for performance. On the other end, not motivating employees enough, or motivating them in the wrong ways will lead to underperformance. FHF 9-4

5 Morale is a prominent aspect of human relations
[ ] An employee’s attitude toward his or her job, employer and colleagues Morale is a prominent aspect of human relations FHF 9-5

6 …continued on next page
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 A business always wants to seek out ways to improve employee morale. …continued on next page FHF 9-6

7 Morale Morale Boosters Respect Involvement Appreciation Compensation
Promotion Pleasant work environment Positive organizational culture A business always wants to seek out ways to improve employee morale. FHF 9-7

8 Rewards Intrinsic Rewards Extrinsic 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 Intrinsic and extrinsic rewards both are important in motivating employees to contribute to business goals Employees are motivated by different kinds of rewards, both extrinsic and intrinsic. FHF 9-8

9 Employee Motivation It can be difficult to motivate employees
Motivation is difficult to define and varies from person to person FHF 9-9

10 Classic Theory of Motivation
Early 20th century Frederick W. Taylor & Lillian Gilbreth Scientific focus on work tasks & productivity Money Thought to be the sole motivator for workers Satisfactory pay & job security motivate employees to work hard Taylor and Gilbreth suggested making work highly specialized and linking pay to output so that employees would make more money as they worked faster. This idea is still applied today, but we understand that motivation is more complicated than Taylor and Gilbreth thought. FHF 9-10

11 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 Marks beginning of concern for human relations in the workplace Mayo’s studies at the Hawthorne Works Plant revealed that human factors also influence productivity and employee behavior– marked the beginning of the field of human relations. FHF 9-11

12 Theories of Employee Motivation
Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory McGregor’s Theory X and Theory Y Theory Z Variations on Theory Z Equity Theory Expectancy Theory Experiments on human motivation spawned many theories of employee motivation, which will be discussed in the following slides. FHF 9-12

13 Maslow’s Hierarchy of Needs
Abraham Maslow postulated that humans have five basic needs (shown in the slide). This pyramid arranges needs in the order in which people seek to attain them, the most basic being on the bottom. Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 70–396. American Psychology Association. …continued on next page FHF 9-13

14 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 Maslow’s theory states that people progress through a series of needs. As they achieve one, they move on to others. People must achieve the lower-level needs before achieving higher-level ones. Many people never achieve the higher order of needs, and people may slip from one category to the other depending on circumstances and times in their lives. FHF 9-14

15 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 The Two-Factor Theory was developed in the 1950s by Frederick Herzberg. Herzberg’s Theory focuses on the job and the environment where work is done. Concluded that motivational factors can be divided into two groups. Maslow’s and Herzberg’s theories are very similar, even though they broke down motivational factors into different groups. FHF 9-15

16 McGregor’s Theory X and Theory Y
Considered the traditional management view Assumes that workers Generally dislike work Must be forced to do their jobs Average worker avoids responsibility and prefers direction Developed by Douglas McGregor. His theory contrasts two different views of management. …continued on next page FHF 9-16

17 McGregor’s Theory X and Theory Y
Considered the humanistic management view Assumes Expending physical effort is natural (people like to work) People will assume responsibility and self-control to achieve objectives (workers want to satisfy social, esteem and self-actualization needs) People will commit to objectives once they realize there will be a personal reward Most organizations do not adequately utilize imagination, ingenuity, creativity and intelligence of workers Managers subscribing to theory Y will be more democratic and will not use fear as a primary motivator. FHF 9-17

18 Theory Z A management philosophy that stresses employee participation in all aspects of company decision making Incorporates many Japanese ideas about management (trust and intimacy) adapted for use in the U.S. Theory Z was developed by William Ouichi. Managers subscribing to this theory will be participative, and employees will tend to feel like owners of the organization. However, economic downturns in the late 20th and early 21st centuries have led many to question Theory Z. Nevertheless, this theory spawned a number of other similar theories. FHF 9-18

19 Variations on Theory Z Quality Circles (or Quality-Assurance Teams)
Participative Management Employee Involvement Self-Directed Work Teams (SDWT) All strive to give employees more control over their jobs Make them responsible for outcomes FHF 9-19

20 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 While equity theory makes sense, it is more complicated in practice because people are not good at taking impartial stock of themselves or their work. A worker may not be accurately assessing his/her contributions to the organization. FHF 9-20

21 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 FHF 9-21

22 Motivating Employees Behavior Modification
Changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself Reward Punishment Developed by psychologist B.F. Skinner. The idea is that behavior that is rewarded will tend to be repeated– rewarding good behavior tends to be a more effective behavior modification strategy in the long term. Skinner believed that behavior that is punished will tend to be eliminated, although punishing employees is not as effective in the long-run as rewarding because it can lead to dissatisfaction. FHF 9-22

23 Strategies for Motivating Employees
Job Rotation 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 There are a number of strategies that organizations employ to eliminate employee boredom and to increase motivation. Job rotation is one of them. The rest will be discussed on upcoming slides. …continued on next page FHF 9-23

24 Strategies for Motivating Employees
Job Enlargement 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 …continued on next page FHF 9-24

25 Strategies for Motivating Employees
Job Enrichment Incorporating motivational factors (achievement, recognition, responsibility) into the job Idea developed by Herzberg in the 1950s Gives employees feedback on their performance Rewards for good performance …continued on next page FHF 9-25

26 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 Flexible scheduling can help improve employee’s work/life balance, encourage healthier behaviors and improve employee satisfaction. Allowing workers to work from home full or part-time is another strategy to improve motivation. …continued on next page FHF 9-26

27 Importance of Motivational Strategies
Fosters employee loyalty Boosts productivity Influences on pay, promotion, job design Nature of relationships Nature of the job itself Characteristics of the organization Motivating employees is an important function of managers because it can help an organization be more productive and produce higher-quality products. Organizations with low employee turnover also will have a more cohesive organizational culture and will save money on recruiting and training new employees. Managers can further nurture motivation by being honest, supportive, empathetic, accessible, fair and open. FHF 9-27


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