1. 10-1

2. Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 Motivating the Work Force 2

3. 10-3

4. 10-4 Amadeus ConsultingAmadeus Consulting: Where Employees are the Company Lisa Calkins and John Basso have created a company for which people are motivated to work for the long term.

5. 10-5 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? Nature of Human Relations

6. 10-6 Determining what motivates employees to perform on the job is the focus of human relations. Nature of Human Relations Motivating the Workforce

7. 10-7 Motivation is an inner drive that directs a person’s behavior toward goals. A goal is the satisfaction of a need A need is the difference between a desired state and the actual state. What is motivation? Motivating the Workforce

8. 10-8 The basic model of motivation shows that when a need exists, an individual engages in goal-directed behavior designed to satisfy that need. Motivating the Workforce

9. 10-9 Morale – an employee’s attitude toward his or her job, employer, and colleagues. High Morale High levels of productivity High returns to stakeholders Employee loyalty Human Relations Motivating the Workforce

10. 10-10 High Morale High levels of productivity High returns to stakeholders Employee loyalty Low Morale Absenteeism Lack of commitment High turnover Motivating the Workforce

11. 10-11 Motivating the Workforce Morale Boosters: Respect Involvement Appreciation Compensation Promotion Pleasant work environment Positive organizational culture

12. 10-12 Motivating the Workforce Go gle’s Google’s focus on happy, committed employees -- Massage therapy Laundry service Gourmet meals & snacks

13. 10-13 Motivating the Workforce Intrinsic rewards – personal satisfaction derived from goal attainment Extrinsic rewards – benefits/recognition received from someone else. Perceptions of Rewards

14. 10-14 Motivating the Workforce Absenteeism costs a typical large company more than $3 million a year!

15. 10-15 Classical Theory of Motivation Money – sole motivator for workers. Taylor & Gilbreth – scientific focus on work tasks & productivity. Satisfactory pay & job security – motivate employees to work hard.

16. 10-16 Hawthorne Studies Elton Mayo – postulated that physical conditions in workplace stimulate productivity. Productivity increased regardless of light levels Hawthorne Effect – marks beginning of concern for human relations in the workplace

17. 10-17 Motivating Employees by Being Green InterfaceInterface is a company that is a leader in sustainable and environmentally sound practices. Mission Zero involves all employees to reduce environmental footprint to zero by 2020.

18. 10-18 Work-Life Balance Primary reason for accepting position

19. 10-19 Theories of Employee Motivation Colgate-Palmolive provides new parents three additional weeks of paid leave in addition to the leave mandated by the Family Leave Act.

20. 10-20 Maslow’s Hierarchy of Needs Self- Actualization Needs Esteem Needs Social Needs Security Needs Physiological Needs

21. 10-21 Maslow’s Hierarchy of Needs Physiological needs – basic needs for food, water, shelter Security needs– protection from physical & economic harm Social needs – need for love, companionship Esteem needs – self-respect and respect from others Self-actualization – maximizing one’s potential

22. 10-22 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

23. 10-23 Herzberg’s Two-Factor Theory

24. 10-24 McGregor’s Theory X and Theory Y Theory X – Assumption that workers generally dislike work and must be forced to do their jobs. Theory Y – Humanistic view of management. Assumption workers like to work and seek out responsibility to satisfy social, esteem, and self- actualization needs.

25. 10-25 William Ouchi Theory Z A management philosophy that stresses employee participation in all aspects of company decision making

26. 10-26 Comparison of American, Japanese & Theory Z Management Styles

27. 10-27 Variations on Theory Z Participative Management Employee Involvement Self-Directed Work Teams (SDWT)

28. 10-28 Equity Theory 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.

29. 10-29 Expectancy Theory Expectancy theory – assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it.

30. 10-30 Strategies for Motivating Employees Behavior Modification – changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself. “Behavior is a function of its consequences.”

31. 10-31 Strategies for Motivating Employees Job Design – strategies managers use to help improve employee motivation: Job rotation Job enlargement Job enrichment Flexible scheduling

32. 10-32 Job Design Strategies Job rotation – movement of employees from one job to another to relieve the boredom often associated with job specialization.

33. 10-33 Job Design Strategies Job enlargement – addition of more tasks to a job instead of treating each task as separate.

34. 10-34 Job Design Strategies Job enrichment – incorporating motivational factors (achievement, recognition, responsibility) into the job.

35. 10-35 Job Design Strategies Flexible scheduling strategies – Flextime Compressed workweek Job sharing

36. 10-36 Importance of Motivational Strategies Foster employee loyalty Boost productivity Influence on pay, promotion, job design Nature of relationships Nature of the job itself Characteristics of the organization