1. 2.5 Motivation
Chapter 14

2. What motivates employees?
Intrinsic motivation Satisfaction derived from working on and completing a task.
Extrinsic motivation Satisfaction from external rewards associated with working on task such as pay or other benefits.

3. Motivational Theories
Content Theories- Based on the assumption that individuals are motivated by their desire to fulfill their inner needs.
F.W. Taylor and Scientific Management
Maslow’s Hierarchy of Human Needs
McGregor’s Theory X and Theory Y
Herzberg and the “two-factor” Theory

4. F.W. Taylor and Scientific Management
This was the first attempt to analyze worker motivation.
Early mass production factories used his method.
Aim: reduce inefficiency and improve productivity.

5. F.W. Taylor and Scientific Management
Taylor’s Scientific approach:
Select workers to perform the task
Observe them performing the task and take notes
Record the time it takes to do each part of the task
Identify the quickest method recorded
Train all workers on the quickest method and do not allow changes
Supervise workers to ensure the “best way” is always followed and time checks examined
Pay workers on the results – “economic man”

6. F.W. Taylor and Scientific Management
What is the “economic man”
The idea that man is driven or motivated by money alone!
Therefore – motivate by workers by pay Do you think this is true?

7. F.W. Taylor and Scientific Management
Taylor’s Approach
Relevance Today
Economic Man
Is pay the only way to motivate employees?
Select the right people for the job
Is staff selection for the job a current consideration?
Observe and record the performance of staff
“Time and motion study” Still utilized but done with cooperation of employees.
Establish the best method of doing a job – method study
Efficiency studies are still used to determine “best practices”
Piece-work payment systems
Is this a popular method?

8. Maslow’s Hierarchy of Human Needs
Needs start at the lowest level
Once a level is reached and satisfied, we will strive for the next level
Once a need is satisfied, it will no longer motivate a person to action
Self-actualization isn’t achieved by everyone, but everyone can reach their potential
Self-Actualization Reaching one’s full potential
Esteem Needs Respect from others; status recognition of achievement
Social Needs Trust; acceptance; friendship; belonging to a group;
Safety Needs Protection from threats; job security; health and safety at work
Physical Needs Food; shelter; water; rest

9. Maslow’s Hierarchy of Human Needs
Level of Need
Business Conditions
Self-Actualization
Challenging work that stretches an individual
Esteem Needs
Recognition for a job well done
Social Needs
Working in teams or groups
Safety Needs
Job security
Physical Needs
Income to meet daily essentials
Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physical Needs

10. Maslow’s Hierarchy of Human Needs
Limitations
Not everyone has the same needs
How do you identify which level your employee’s are on?
Money can satisfy other levels than physical needs (social or status)
Self-Actualization is not a permanent

11. McGregor’s Theory X and Theory Y
McGregor identified 2 different management views:
X = Workers are lazy, dislike work, are unprepared, and need to be controlled
Y = Workers enjoy what they do, they are creative, and take an active part in what they do

12. McGregor’s Theory X and Theory Y
Why is this important?
Workers behave in the way they are treated – living up to the expectation of management
If you think I am lazy, I will be.
If you think I am responsible, I will be.

13. Herzberg and the “two-factor” Theory
Factors that lead to positive feelings about a job
Factors that lead to negative feelings about a job
2 Factors: Positive Negative
Feelings Feelings

14. Herzberg and the “two-factor” Theory
Job Satisfaction results from
Job Dissatisfaction results from
Achievement
Company policy and administration
Recognition for achievement
Supervision
The work itself
Salary
Responsibility
Relations with others
Advancement
Working Conditions

15. Herzberg and the “two-factor” Theory
Results of Herzberg’s Theory
1. Pay and working conditions can be improved to help remove job dissatisfaction but it will not, on its own, provide motivation to an employee.
2. Motivators need to be in place for workers to willingly do their best. (Job Enrichment)
3. Higher pay is a temporary motivator.

16. HL- Mayo and the “Hawthorne Effect”
Elton Mayo conducted experiments at the Hawthorne factory at Western Electric in Chicago, Illinois
He assumed that working conditions could control worker productivity (better lighting, heating, rest periods, improved pay)
He did not get the results he thought!

17. HL- “Hawthorne Effect” Conclusions
Changes in working conditions and financial rewards had NO effect on productivity
What did IMPROVE productivity:
When managers took an interest in workers and their work, productivity improved.
Working in teams improved productivity.
When workers controlled breaks and some decisions, positive motivation resulted
This research has influenced business today with the development with personnel departments and structuring work to include team and group work and involving workers

18. HL- David McClelland – 3 Types of Motivational Need
Achievement Motivation (n-ach) a person with a strong motivational need for achievement will seek out motivational goals and feedback.
Result-driven attitude seen in successful business people and entrepreneurs.

19. HL- David McClelland – 3 Types of Motivational Need
Authority/power motivation (n-pow) a person with a strong need to dominate and desires to control others. Wants to be influential, effective, and make an impact.
Strong leadership instinct and when authority is gained over others it brings personal status and prestige.

20. HL- David McClelland – 3 Types of Motivational Need
Affiliation Motivation (n-affil) a person with a need for friendly relationships with others and is motivated with interaction with others.
Good team members, need to be liked and popular and to be held in high regard.

21. HL- David McClelland – 3 Types of Motivational Need
Results
All three needs are found in varying degrees in all workers and managers.
A managers motivation will effect how he believes others are motivated.
Achievement motivated people get the most done but can expect too much of workers and value achievement over other needs of workers.

22. HL- Process Theories: Thought process that influence behavior
Vroom and Expectancy Theory People choose to behave in ways that they believe will lead to outcomes they value
Positive link between effort and performance
Favorable performance will result in a desirable reward
The reward will satisfy an important need
The desire to satisfy the need is strong enough to make the work effort worthwhile

23. HL- Process Theories: Thought process that influence behavior
Vroom and Expectancy Theory 3 Beliefs
Valence: the depth of the want of employee for an extrinsic reward such as money or an intrinsic reward such as satisfaction
Expectancy: the degree to which people believe that putting effort into work will lead to a given level of performance
Instrumentality: the confidence of employees that they will actually get what they desire regardless what is promised by a manager
If just one of these items is missing, employees will not be motivated. Therefore, managers should try to ensure that employees believe that increased work effort will improve performance and that this performance will lead to valued rewards.

24. HL- Process Theories: Thought process that influence behavior
Adams and Equity Theory
Employees are demotivated if they believe their inputs are greater than their outputs.
Inputs: effort, loyalty, commitment, skill
Outputs: financial rewards, recognition, security, and sense of achievement
When this is in balance, employees will respond with positive attitudes and high levels of motivation.

25. Financial Payment Hourly Wage Rate (also called “time rate”)
Wage is determined by an hourly rate X the number of hours worked…usually paid weekly.
Security of payment
Speed of work completion is NOT rewarded.
Slow work could encourage overtime pay.

26. Financial Payment Piece Rate
Wage is determined by number of units produced X a fixed amount
Level of payment rate is critical in order to not overpay or under pay the worker.
Speed of work is encouraged – quality could suffer.
Slow work can be encouraged when a worker reaches a satisfactory wage level.

27. Financial Payment Salary Flat amount paid regardless of hours worked.
Common for management and supervisory staff.
Salary level is fixed so companies can budget.
Banding is common.
Job Grade
Salary Band
E: Regional Heads
$50,000 - $75,900
D: Department Heads
$30,000 - $49,000
C: Office Managers
$20,000 - $29,900
B: Secretaries
$10,000 - $19,900
A: Junior Clerical Staff
$5,000 - $9,900

28. Financial Payment Commission
Wage usually determined by percentage of sales.
Can be added to a base salary or can be 100% commission
Workers may be encouraged to use high-pressure sales tactics.
Slow work can be encouraged when a worker reaches a satisfactory wage level.
Does not encourage team work.

29. Financial Payment Performance-Related Pay (PRP)
Usually paid out in bonuses in addition to a basic salary.
Targets are set and management determines if targets are met.
Issues
Additional pay does not motivate workers in the long-term (according to Herzberg’s theory).
There is no change in the work performed – no motivators for work improvement.
The emphasis on individual performance does not encourage team work.
Bonuses are often inadequate to improve worker’s efforts.
Since management determines if targets are met, claims of favoritism are often made.

30. Financial Payment Profit-Related Pay
Paying workers a portion of the profit made by the company.
A worker may be motivated to work harder or be active in cost-saving measures.
The reward is not based on an individual effort.
Small profits earned may not be worth the “effort”

31. Financial Payment Employee Share-Ownership Schemes
Paying employees with shares of company stock.
Establishes workers as part owners of the company.
In reality – workers typically sell the stock quickly.

32. Financial Payment Fringe Benefits Non-cash rewards to workers
Company car
Life Insurance, Disability Insurance, Health Insurance
Pension
Employee discounts

33. Non-Financial Motivators
Job Enlargement Increasing the scope or amount of work
Job Enrichment Increasing the responsibility, decreasing supervision, offer challenging tasks
Team Work Working in groups
Delegation Giving work to others to perform