1. 1 FS10321: Business Management Week #7: Chapter 9: Understanding Work Teams Chapter 10: Motivating & Rewarding

2. 2 The Popularity Of Teams Teams typically outperform individuals –When tasks require multiple: Skills Judgment Experience Better way to utilize individual talents Flexibility & responsiveness is essential –Changing environment

3. 3 Empowered teams Increase job satisfaction and morale Enhance employee involvement Promote workforce diversity

4. 4 Stages of Team Development

5. 5 The Stages Of Team Development Stage 1: Forming –Uncertainty about purpose, structure, and leadership Stage 2: Storming –Conflict among members Stage 3: Norming –Relationships develop –Cohesiveness begins Stage 4: Performing –Fully functional and accepted structure Stage 5: Adjourning –Team disbands

6. 6 High-performing Team Characteristics Unified commitment Good communication Mutual trust Effective leadership External support Internal support Negotiating skills Relevant skills Clear goals

7. 7 Challenges to Creating Team Players Resistance to teams Individualistic national culture High value/significant rewards for individual achievement.

8. 8 Shaping Team Behavior Proper selection –Both technical skills & interpersonal skills Employee training –Involve employees in learning team behaviors Reward appropriate team behaviors –Encourage cooperative efforts Rather than competitive ones

9. 9 Diversity & Teams Fresh & multiple perspectives help team: –Identify creative or unique solutions –Avoid weak alternatives Difficulty of working together may make it harder to: –Unify a diverse team –Reach agreements Value of diversity increases with cohesiveness –Though diversity’s advantages dissipate with time

10. 10 Chapter 10 Motivating and Rewarding

11. 11 Motivation And Individual Needs Motivation –Willingness to exert high effort to reach goals –Affected by satisfying some individual need Need –Internal state –Makes certain outcomes appear attractive

12. 12 Theories and Models Logically self-consistent framework Describes behavior of a given phenomenon Used to understand a situation Helps predict/create future behavior

13. 13 Maslow’s Hierarchy of Needs Theory Hierarchy of five human needs –as each is satisfied, the next becomes dominant Physiological: food, drink, shelter, sex Safety: physical safety Social: affiliation with others, affection, friendship Esteem: Internal (self-respect, autonomy, and achievement); external (status, recognition, and attention) Self-actualization: personal growth and fulfillment

14. 14 Maslow’s Hierarchy of Needs EXHIBIT 10.2 Source: Motivation and Personality, 2nd ed., by A. H. Maslow, 1970. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ.

15. 15 Hertzberg’s Hygiene Theory Employees have basic needs If basic needs aren’t met: Dissatisfaction! But! You can’t motivate with these factors Basic needs: –Supervision –Relationship with supervisor –Work conditions –Salary –Status –Security –Relationship with employees –Personal life

16. 16 Hertzberg’s Motivation Theory Motivate through “higher” pursuits: –Achievement –Recognition –Work itself –Responsibility –Advancement –Personal growth These can lead to job satisfaction

17. 17 Contrasting Views of Satisfaction- Dissatisfaction EXHIBIT 10.5

18. 18 Herzberg’s Motivation-Hygiene Theory

19. 19 McClelland’s Three-Needs Theory Major motives in work: –Need for achievement Drive to excel, to strive to succeed –Need for power To affect others’ behavior –Need for affiliation Desire for friendly and close relationships

20. 20 Adams’ Equity Theory Employees compare –What they get from a job situation (outcomes) –And what they put into it (inputs) Then: –Compare their input-outcome ratio to relevant others’

21. 21 Equity Theory Relationships If less outcome/input than others:Underrewarded If same outcome/input as others: Equity If more outcome/input than others:Overrewarded

22. 22 Equity Theory Employees who perceive an inequity may: –Distort their own or others’ inputs or outcomes –Try to induce others to change their inputs/outcomes –Try to change their own inputs or outcomes –Choose someone else to compare with –Quit their job

23. 23 Equity Theory Propositions If paid for time –Overrewarded produce more than equitably paid –Underrewarded produce less or poorer-quality output If paid for quantity of production –Overrewarded produce fewer but higher-quality units than equitably paid –Underrewarded produce more lower-quality units than equitably paid EXHIBIT 10.7

24. 24 Vroom’s Expectancy Theory Employees… Make an effort –Act a certain way Results in performance –Actions achieve something Depends on attractiveness of rewards –Achievement leads to an outcome, desired or not Motivation comes from expectation of desired reward

25. 25 Expectancy Relationships (Linkages) Effort–performance –Belief that exerting an effort will lead to performance Performance–reward –Belief that a performance level will lead to a desired outcome Attractiveness –The importance of the potential outcome/reward

26. 26 Expectancy Theory Example Student in a classroom Effort-performance –How much work – how high you score Performance-reward –How do scores relate to grades? Attractiveness –Do you care about good grades?

27. 27 Motivation and Compensation Pay-for-performance programs –Piece-rate plans –Profit sharing –Etc. Pay employees on basis of performance Not directly related to time spent on the job Becoming more and more popular!

28. 28 Compensation Alternatives Competency-based compensation –Pays & rewards on basis of Skills, knowledge, behaviors Broad-banding –Pre-set pay level –Based on degree to which competencies exist Which allow an employee to contribute Stock options –Allows purchase of company stock at a fixed price For a given time –Profits when co. performance increases stock value

29. 29 Work-Life Balance: Alternative Work Schedules Flextime –Employees select what their work hours will be Within some specified parameters. Job sharing –Two+ workers split a 40-hour/week job Telecommuting –Working at home on computer linked to office

30. 30 Team Papers/Presentations Target market Final marketing plan Product descriptions Artwork Promotional materials used Description of what happened