1. Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 10 Motivating Employees

2. MOTIVATION: LIGHTING THE FIRE 10-2 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  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 and techniques (including tapping into employee’s intrinsic and extrinsic rewards)

3. INTRINSIC REWARDS Intrinsic Rewards -- Personal satisfaction you feel when you perform well and complete goals. 10-3 Examples of Intrinsic Rewards:  Pride in your performance  Sense of achievement

4. EXTRINSIC REWARDS 10-4 Extrinsic Rewards -- Something given as a recognition of good work. Kinds of Extrinsic Rewards:  Pay Raises  Promotions  Awards

5. FRINGE BENEFITS Perks Offered to Employees at Top 50 Employers Source: Bloomberg BusinessWeek, www.businessweek.com, accessed November 2014.www.businessweek.com 10-5

6. TAYLOR’S SCIENTIFIC MANAGEMENT 10-6 LO 10-1 Scientific Management -- Studying workers to find the most efficient ways of doing things and then teaching people those techniques. Three Key Elements to Increase Productivity 1. Time 2. Methods of Work 3. Rules of Work

7. TAYLOR’S FOUR KEY PRINCIPLES 10-7 LO 10-1 1. Study how a job is performed. Gather time & motion information. Check different methods. 2. Codify the best method into rules. 3. Choose workers whose skill matches the rules. 4. Establish a fair level of performance and pay.

8. TIME-MOTION STUDIES 10-8 LO 10-1 Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the time needed to do each task. Led to the development of the Principle of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth.

9. ARE YOU STRESSED? Warnings of Employee Stress 10-9 LO 10-1 Negative attitudes about work Drops in productivity Chronic lateness Absenteeism Careless with details Unable to work with others Withdrawal from co-workers Easily upset or angered

10. TAYLOR and UPS UPS drivers work under strict rules and work requirements.UPS 10-10 LO 10-1 How to get out of their trucks:  Right foot first How fast to walk:  3 ft per second How to hold their keys:  Teeth up, third finger

11. HAWTHORNE STUDIES: PURPOSE AND RESULTS Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. 10-11 LO 10-2 Researchers decided it was a human or psychological factor at play. Hawthorne Effect -- People act differently when they know they are being studied.

12. USING REINFORCEMENT THEORY 10-12 LO 10-6 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 email response to an employee who constantly emails with you complaints)

13. MASLOW’S THEORY of MOTIVATION 10-13 LO 10-3 Hierarchy of Needs -- Theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self- actualization needs. 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? Needs that have already been met do not motivate. If a need is filled, another higher-level need emerges.

14. MASLOW’S HIERARCHY of NEEDS 10-14 LO 10-2

15. HERZBERG’S MOTIVATING FACTORS 10-15 LO 10-4 Hygiene Factors Safe working environment Proper pay and benefits Relationships with co-workers Motivators Recognition Responsibility Promotion Job growth Two factors that influence a person’s motivation: Understanding this Theory: 1)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. 2)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.

16. JOB CONTENT 10-16 LO 10-4 Herzberg found job content factors were most important to workers – workers like to feel they contribute to the company. Motivators -- Job factors that cause employees to be productive and that give them satisfaction.

17. JOB ENVIRONMENT Job environment factors maintained satisfaction, but did not motivate employees. 10-17 LO 10-4 Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.

18. HERZBERG’S MOTIVATORS and HYGIENE FACTORS 10-18 LO 10-4

19. COMPARISON of the THEORIES of MASLOW and HERZBERG 10-19 LO 10-4

20. THEORY X and THEORY Y 10-20 LO 10-5 Douglas McGregor proposed managers had two different sets of assumptions concerning workers. Their attitudes about motivating workers were tied to these assumptions. McGregor called them Theory X and Theory Y.

21. ASSUMPTIONS of THEORY X MANAGERS 10-21 LO 10-5 Workers dislike work and seek to avoid it. Workers must be forced or threatened with punishment to get them to perform. Workers prefer to be directed and avoid responsibility. Primary motivators are fear and punishment.

22. ASSUMPTIONS of THEORY Y MANAGERS 10-22 LO 10-5 People like work, it’s a part of life. Workers seek goals to which they are committed. Commitment to goals depends on perceived rewards. People can use creativity to solve problems. Intellectual capacity is only partially realized. People are motivated by a variety of rewards.

23. THEORY Z William Ouchi researched cultural differences between the U.S. (Type A) and Japan (Type J). Type J committed to the organization and group. 10-23 LO 10-5 Type A focused on the individual. Theory Z is the hybrid approach of Types A and J.

24. THEORY Z 10-24 LO 10-5

25. THEORY COMPARISIONS 10-25 LO 10-5

26. GOAL-SETTING THEORY 10-26 LO 10-6 Goal-Setting Theory -- Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

27. APPLYING GOAL-SETTING THEORY 10-27 LO 10-6 Management by Objectives (MBO) -- Involves a cycle of discussion, review and evaluation of objectives among top and middle-level managers, supervisors and employees. Managers formulate goals in cooperation with everyone in the organization. Need to monitor results and reward achievement.

28. WHAT is MBO? 10-28 LO 10-6 Set organizational objectives Link objectives to employee’s goals Monitor Reward performance Evaluate performance Source: Bloomberg Business Week, accessed November 2014.

29. EXPECTANCY THEORY in MOTIVATION 10-29 LO 10-6 Expectancy Theory -- The amount of effort employees exert on a specific task depends on their expectations of the outcome. Employees ask:  Can I accomplish the task?  What’s my reward?  Is the reward worth the effort? Expectations can vary from person to person.

30. EXPECTANCY THEORY 10-30 LO 10-6

31. NADLER & LAWLER’S MODIFICATION 10-31 LO 10-6 Researchers Nadler and Lawler modified expectancy theory and suggested five steps for managers: 1. Determine what rewards employees value. 2. Determine workers’ performance standard. 3. Make sure performance standards are attainable. 4. Tie rewards to performance. 5. Be sure employees feel rewards are adequate.

32. ENRICHING JOBS Job Enrichment -- A motivational strategy that emphasizes motivating the worker through the job itself. 10-32 LO 10-7 Based on Herzberg’s motivators, such as responsibility, achievement and recognition.

33. MOTIVATION on a BUDGET Tactics of Today’s HR Managers Source: Wall Street Journal, March 1, 2010. 10-33 LO 10-7

34. KEY CHARACTERISTICS of WORK 1. Skill Variety 2. Task Identity 3. Task Significance 4. Autonomy 5. Feedback 10-34 LO 10-7

35. TYPES of JOB ENRICHMENT 10-35 LO 10-7 Job Enlargement -- A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment. Job Rotation -- A job enrichment strategy that involves moving employees from one job to another.

36. ENRICHMENT by WAY of FLEXIBILITY Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.www.entrepreneur.com 10-36 LO 10-7 60% of employees think they can be productive and efficient outside of the office. 66% of employees would take a lower-paying job if it came with more flexibility. 59% of employees say their company doesn’t have a formal out-of-office work policy.

37. USING OPEN COMMUNICATION 10-37 LO 10-7 Create a culture that rewards listening. Train managers to listen. Use effective questioning techniques. Remove barriers to open communication. Ask employees what’s important to them.

38. WHEN is SOCIAL MEDIA TOO SOCIAL? 10-38 Sites like Facebook are banned in 20% of workplaces. Some argue this is a bad idea because: 1. It alienates younger employees. 2. It suggests businesses don’t trust employees. 3. It can make employees feel disengaged. 4. It takes away an element of relaxation.

39. WHEN TOO MUCH is TOO MUCH 24/7 Access Isn’t Always a Good Thing 10-39 Schedule correspondence:  Don’t check email whenever it arrives, schedule times to check. Pick one task:  Having too much open at once takes attention away from singular tasks. Don’t answer the phone:  Don’t be afraid of voicemail. Maintain human contact:  Don’t look at your computer or phone while someone is at your desk. Keep attention (and respect!) on them. Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.www.entrepreneur.com

40. RECOGNIZING GOOD WORK 10-40 LO 10-7 Raises are not the only ways to recognize an employee’s performance. Recognition can also include:  Paid time off  Flexible scheduling  Work from home opportunities  Paid child or elder care  Stock options or profit sharing  Company awards  Company events or teams

41. WORK WELL with OTHERS Keys for Productive Teamwork 10-41 LO 10-7 Have a common understanding of your task. Clarify roles and responsibilities. Set rules. Get to know each other. Communicate openly and often.

42. WHAT’S GOOD for YOU Most Positive Remedies for Employee Moral 10-42 LO 10-7

43. WHAT’S BAD for YOU Most Negative Actions for Employee Morale 10-43 LO 10-7